Document:

exv4w24

 

Exhibit 4(b)(iv)

CONFORMED COPY

Dated

10 March 2005

Six Continents PLC

and

IHC London (Holdings) Limited

and

LGR Acquisition

and

LGR Holdings Limited

SHARE PURCHASE AGREEMENT

relating to Six Continents Hotels & Holidays Limited, Holiday Inn Limited, NAS Cobalt No. 2 Limited

and London Forum Hotel Limited

 

 

 

Linklaters

One Silk Street

London EC2Y 8HQ

Telephone (44-20) 7456 2000

Facsimile (44-20) 7456 2222

Ref Kate Cheetham

 

 

Share Purchase Agreement

This Agreement is made on 10 March 2005

between:

	(1)	 	SIX CONTINENTS PLC, a company incorporated in England and Wales whose registered
office is at 67 Alma Road, Windsor, Berkshire, SL4 3HD (“SCPLC”);
	 
	(2)	 	IHC LONDON (HOLDINGS) LIMITED, a company incorporated in England and Wales whose registered
office is at 67 Alma Road, Windsor, Berkshire, SL4 3HD (“IHC Holdings”);
	 
	(3)	 	LGR ACQUISITION, a company incorporated in England and Wales whose registered office is at 88
Wood Street, London EC2V 7AJ (the “Purchaser”); and
	 
	(4)	 	LGR HOLDINGS LIMITED, a company incorporated in England and Wales whose registered office is
at 88 Wood Street, London EC2V 7AJ (“Holdco”).

Whereas:

	(A)	 	The Sellers have agreed to sell the Assets (as defined below) and to assume the obligations
imposed on the Sellers under this Agreement; and
	 
	(B)	 	the Purchaser has agreed to purchase the Assets and to assume the obligations imposed on the
Purchaser under this Agreement.

It is agreed as follows:

	1	 	Interpretation
	 
	 	 	In this Agreement, unless the context otherwise requires, the provisions in this Clause
1 apply:
	 
	1.1	 	Definitions
	 
	 	 	“Accounts Date” means 31 December 2003;
	 
	 	 	“Additional Deferred Consideration Amount” means the amount (if any) payable pursuant to
Clause 3.2.4;
	 
	 	 	“Affiliate” means, with respect to the Purchaser, another person who, directly or
indirectly, owns or will own any shares in the Purchaser;
	 
	 	 	“Agreed Terms” means, in relation to a document, such document in the terms agreed between
the Sellers and the Purchaser and signed for identification by the Sellers’ Lawyers and the
Purchaser’s Lawyers with such alterations as may be agreed in writing between the
Sellers and the Purchaser from time to time and, for ease of reference, a list of documents
in the agreed terms is set out at Schedule 4;
	 
	 	 	“Annual Accounts” has the meaning given to it in the Portfolio Management Agreement;
	 
	 	 	“Assets” means the Shares, rights and other assets agreed to be sold pursuant to Clause 2.1;
	 
	 	 	“Audited Accounts” means, in relation to any Group Company, the audited accounts of that
Group Company for the period ended on the Accounts Date;

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	 	 	“Brand Standards” means the brand standards applicable as at the date of this Agreement to
the Hotels, as solely set out in documents 08 001 to 08 003, Group Information in the
property information pack Data Room and documents 25 001 to 25 007, Portfolio Information in
the second round Data Room;
	 
	 	 	“Business Day” means a day which is not a Saturday, Sunday or a public holiday in England;
	 
	 	 	“Certificated Properties” means those properties details of which are set out in Part 1 of
Schedule 3 in respect of which Certificates of Title have been prepared and “Certificated
Property” means any one of them;
	 
	 	 	“Certificates of Title” means the certificates of title in relation to the Certificated
Properties prepared by the Sellers’ Lawyers or Wright Johnston & Mackenzie (as the case may
be) dated as at the date of this Agreement and addressed to the Purchaser and the
Purchaser’s Lenders;
	 
	 	 	“Companies” means the companies details of which are set out in paragraph 1 of Schedule 2
and “Company” means any one of them;
	 
	 	 	“Companies Acts” means the Companies Act 1985 and the Companies Act 1989, in each case as
amended from time to time;
	 
	 	 	“Completion” means the completion of the sale of the Assets pursuant to Clauses 6.1, 6.2,
6.3 and 6.4 of this Agreement;
	 
	 	 	“Completion Amount” means the Initial Share Consideration plus the Estimated Net Current
Assets;
	 
	 	 	“Completion Date” means the date on which Completion takes place;
	 
	 	 	“Consolidated Financial Summary” means the pro-forma consolidated financial summary of the
management accounts of the Hotels for the 12 months commencing 1 January 2004 and ended 31
December 2004 in the Agreed Terms;
	 
	 	 	“Construction Document” means any building contract, contract of engagement, warranty
agreement, decennial insurance policy and other similar agreement the benefit of which is
now vested in a Group Company or any member of the Sellers’ Group in relation to the design,
construction, development, refurbishment and fitting out of any of the Hotels and where the
liability of the other party to the relevant Group Company or member of the Sellers’ Group
has not expired at Completion;
	 
	 	 	“Consultancy Agreement” means an agreement (other than a contract of employment) with a
Group Company, pursuant to which an individual provides personal services for a term of more
than three months;
	 
	 	 	“Consultant” means an individual who undertakes to perform personally any services to a
Group Company pursuant to a Consultancy Agreement on an annual fee (on the basis of a full
time consultancy) in excess of £50,000;
	 
	 	 	“Contracts” means the Sellers’ Group Contracts, the Split Contracts and the Retained
Contracts;
	 
	 	 	“Contracts Consideration” means the sum of £1, being the consideration payable by the
Purchaser to SCPLC under this Agreement in respect of the transfer of the rights arising
under the Sellers’ Group Contracts referred to in Clause 2.1;

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	 	 	“Control” means the ability, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise (including being the general partner, officer or
director of the person in question) to (i) direct or cause the direction of the management
and policies of a person, or (ii) vote more than 50 per cent. of the voting interests of
such person. A person or persons shall be deemed to direct or cause the directions of the
management and policies of a person (and accordingly satisfy clause (i) of the foregoing
test for “Control”) if the consent or approval of such person(s) shall be required with
respect to major decisions concerning the entity;
	 
	 	 	“Corporation Tax” has the meaning given to that term in Section 6 of ICTA;
	 
	 	 	“Data Room” means the on-line data room comprising the property information pack, the data
room and the second round data room containing documents and information relating to the
Group Companies and the Properties made available by the Sellers, the contents of which are
listed in Schedule 1 to the Disclosure Letter;
	 
	 	 	“Deeds of Non-Disturbance” means the deeds of non-disturbance as defined in the Individual
Hotel Management Agreements in the Agreed Terms;
	 
	 	 	“Deferred Consideration” means the aggregate of the Additional Deferred Consideration
Amount, the First Deferred Consideration Amount, the Second Deferred Consideration Amount
and the Third Deferred Consideration Amount (in each case, if any);
	 
	 	 	“Disclosure Letter” means the letter dated on the same date as this Agreement from the
Sellers to the Purchaser disclosing:

	 	(i)	 	information constituting exceptions to the Sellers’ Warranties; and
	 
	 	(ii)	 	details of other matters referred to in this Agreement;

	 	 	“Dormant Subsidiaries” means the subsidiaries set out in paragraph 2 of Schedule 2 and
identified as such;
	 
	 	 	“Draft 2004 Accounts” has the meaning given to it in Part 1 of Schedule 6;
	 
	 	 	“Employing Company” means the entity responsible for employing the Relevant Employees after
Completion for the purpose of providing services to the Purchaser or the Purchaser’s Group;
	 
	 	 	“Encumbrance” means any claim, charge, mortgage, lien, option, equity, power of sale,
hypothecation, retention of title, right of pre-emption, right of first refusal or other
third party right or security interest of any kind with the exception of liens arising by
operation of law in the ordinary course of business of any Group Company;
	 
	 	 	“Environment”, “Environmental Authority”, “Environmental Law” and “Environmental Permit”
have the meanings given to them in paragraph 10.1 of Schedule 7;
	 
	 	 	“Estimated Net Current Assets” means the sum of £(14,320,000) (the negative sum of fourteen
million three hundred and twenty thousand pounds) being a realistic estimate of the Net
Current Assets;
	 
	 	 	“Excluded Rights” means all subsisting rights of any Group Company as at Completion arising
under the Split Contracts to the extent the rights and obligations under such contracts
relate to any property or other asset which is or was owned by any member of the Sellers’
Group and which is not being transferred to the Purchaser pursuant to this Agreement and
under the Retained Contracts respectively;

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	 	 	“Event” means any act, omission, event or transaction (including without limitation the
execution of and completion of all provisions of this Agreement and becoming being or
ceasing to be a member of a group of companies (howsoever defined) for the purposes of any
Tax);
	 
	 	 	“Financial Reporting Year” means the period from (and including) 1 January to 31 December;
	 
	 	 	“First Deferred Consideration Amount” means the amount (if any) payable pursuant to Clause
3.2.1;
	 
	 	 	“Franchise Agreements” mean the franchise agreements entered into individually for each of
the 63 Hotels which are listed in Schedule 1 of the Portfolio Management Agreement in the
Agreed Terms;
	 
	 	 	“GAAP” means generally accepted accounting standards, the legal principles set out in
Schedules 4 and 4A to the Companies Act 1985, rulings and abstracts of the Urgent Issues
Task Force of the ASB and guidelines, conventions, rules and procedures of accounting
practice in the United Kingdom which are regarded as permissible by the ASB;
	 
	 	 	“Group” means the Group Companies, taken as a whole;
	 
	 	 	“Group Accounting Policies” means the accounting policies used in preparing the audited
accounts of the Group Companies:
	 
	 	 	“Group Companies” means the Companies and the Subsidiaries and “Group Company” means any one
of them;
	 
	 	 	“Group Relief” means any amount eligible for relief under Sections 402-413 of the ICTA, any
tax refund which is capable of being surrendered under Section 102 of the FA 1989, any
relievable tax which is capable of being surrendered pursuant to regulations made under
Section 806H ICTA or utilisation of any losses pursuant to an election under Section 171A or
179A of the TCGA or for the purposes of Clause 5 of the Tax Deed of Covenant under Article
43 and related articles of the Consolidated Version of the Treaty Establishing the European
Community (OJC 325/33 24.12.2002) as amended from time to time;
	 
	 	 	“Guaranteed Leases” means the leases details of which are set out in Part 1 and Part 2 of
Schedule 12;
	 
	 	 	“Hazardous Substances” has the meaning given to it in paragraph 10.1 of Schedule 7;
	 
	 	 	“Hotels” means the hotel businesses as operated at the Properties as at the date hereof and
“Hotel” means any one of them;
	 
	 	 	“ICTA” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“IHG Shares” means any shares in the capital of InterContinental Hotels Group PLC;
	 
	 	 	“Indemnified Leases” means the leases referred to in Part 1 of Schedule 12;
	 
	 	 	“Individual Hotel Management Agreements” means the respective individual hotel management
agreements between InterContinental Hotels Group (Management Services) Limited and the
Purchaser for each of the 63 Hotels which are listed in Schedule 1 of the Portfolio
Management Agreement in the Agreed Terms and the 10 hotels which are listed in Schedule 1 of
the Named Assets Summary of Terms;
	 
	 	 	“Initial Share Consideration” means £300,100,659;

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	 	 	“Intellectual Property” means trade marks, service marks, trade names, domain names, logos,
get-up, patents, inventions, registered and unregistered design rights, copyrights,
semi-conductor topography rights, database rights and all other similar rights in any part
of the world (including Know-how) including, where such rights are obtained or enhanced by
registration, any registration of such rights and applications and rights to apply for such
registrations;
	 
	 	 	“Inter-Group Debt” means all indebtedness due at Completion from the Group Companies to the
Sellers’ Group and all indebtedness due at Completion from the Sellers’ Group to the Group
Companies (excluding in each case any amounts taken into account in calculating Inter-Group
Payables and amounts taken into account in calculating any Inter-Group Receivables), being
the amounts specified in Schedule 11;
	 
	 	 	“Inter-Group Debt Balance” means the aggregate amount of the Inter-Group Debt specified in
Schedule 11 being £659,899,341;
	 
	 	 	“Inter-Group Payables” has the meaning given to it in Part 1 of Schedule 6;
	 
	 	 	“Inter-Group Receivables” has the meaning given to it in Part 1 of Schedule 6;
	 
	 	 	“Know-how” means confidential and proprietary industrial and commercial information and
techniques in any form including (without limitation) drawings, formulae, test results,
reports, project reports and testing procedures, instruction and training manuals, tables of
operating conditions, market forecasts, lists and particulars of customers and suppliers;
	 
	 	 	“Lease” means in relation to each Uncertificated Property which is leasehold, the lease(s)
or underlease(s) or licence(s) under which the relevant Group Company holds such
Uncertificated Property and includes the other documents supplemental thereto;
	 
	 	 	“Letting Document” means any lease, underlease, tenancy, licence or other agreement or
arrangement (in each case as amended) giving rise to third party rights of occupation to
which an Uncertificated Property is subject;
	 
	 	 	“Licences” means any Justices Licence, Public Entertainment Licences (including for the
avoidance of doubt music, dancers, special entertainment and cinematograph licences), Gaming
Licence, marriage permit, extended hours or special hours certificate, Section 68 Supper
Hours Certificate or other similar licence in relation to the activities carried on at the
Hotels but excluding for the avoidance of doubt Environmental Permits;
	 
	 	 	“Listed Hotels” means the Hotels listed in Schedule 13;
	 
	 	 	“Long-Term Liabilities” has the meaning given to it in Part 1 of Schedule 6;
	 
	 	 	“Losses” means all losses, liabilities, costs (including, without limitation, legal costs
and reasonable experts’ and consultants’ fees), charges, reasonable expenses, actions,
proceedings, claims and demands;
	 
	 	 	“Material Letting Document” means a Letting Document under which at the date of this
Agreement the basic rent or other principal fee payable is equivalent to £50,000 per annum
or more;
	 
	 	 	“Management Accounts” means the unaudited balance sheets and profit and loss accounts of
each of the Hotels respectively for the 12 months ended 31 December 2004 and the one month
ended 31 January 2005 respectively;

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	 	 	“Management Agreements” mean the Portfolio Management Agreement and the Individual Hotel
Management Agreements in the Agreed Terms;
	 
	 	 	“Master Technology Agreements” mean the master technology agreements as defined in the
Individual Hotel Management Agreements in the Agreed Terms;
	 
	 	 	“Named Assets Summary of Terms” means the summary of terms in the Agreed Terms relating to
the Individual Hotel Management Agreements to be entered into in respect of the hotels
listed on Schedule 1 thereof;
	 
	 	 	“Net Current Asset Adjustment” means the amount by which the Net Current Assets together
with the Long-Term Liabilities and Provisions (as such terms are defined in and as
determined in accordance with Clause 8 and Schedule 6) (if any) exceed the Estimated Net
Current Assets and are payable pursuant to Clause 8.2.1(i) (such amount being expressed as a
positive figure) or the amount by which the Net Current Assets together with the Long-Term
Liabilities and Provisions (as such terms are defined in and as such term is determined in
accordance with Clause 8 and Schedule 6) (if any) are less than the Estimated Net Current
Assets and are payable pursuant to Clause 8.2.1(ii) (such amount being expressed as a
negative figure);
	 
	 	 	“Net Current Assets” means the cash sum representing the value of Stock, Debtors and Cash
minus Trade Creditors as at 11.00 am on the Completion Date as such terms are defined in and
as determined in accordance with Clause 8 and Schedule 6;
	 
	 	 	“Net Current Asset Statement” means the statements to be prepared by the Sellers in
accordance with Clause 8.1 and Schedule 6;
	 
	 	 	“Pensions Regulator” means the Pensions Regulator established by the Pensions Act 2004;
	 
	 	 	“Planning Acts” means the Town and Country Planning Act 1990, the Planning (Listed Buildings
and Conservation Areas) Act 1990, the Planning (Hazardous Substances) Act 1990, the Planning
(Consequential Provisions) Act 1990, the Planning and Compensation Act 1991, the Local
Government Planning and Land Act 1980, the Local Government (Miscellaneous Provisions) Act
1982, the Housing and Planning Act 1986 and the Highways Act 1980 and the Planning and
Compulsory Purchase Act 2004;
	 
	 	 	“Portfolio Management Agreement” means the portfolio management agreement in the Agreed
Terms;
	 
	 	 	“Posthouse Agreement” means the Share and Business Sale and Purchase Agreement (including,
for the avoidance of doubt and without limitation, Schedule 11 thereof) dated 4 April 2001
between Hospitality Holdings Limited, Forte (UK) Limited, Compass Group Plc, NAS Cobalt No.1
Limited and NAS Cobalt No.2 Limited (as amended pursuant to an agreement dated 29 June 2001
between such parties) and the IP Sale and Purchase Agreement dated 4 April 2001 between
Hospitality Holdings Limited, Forte (UK) Limited, Compass Group Plc and Bass Hotels &
Resorts Inc.;
	 
	 	 	“Pre-Sale Reorganisation” means the pre-sale reorganisation of the Sellers’ Group as
referred to in the pre-sale reorganisation paper in the Agreed Terms;
	 
	 	 	“Pre-Sale Reorganisation Documents” means the documents in the Data Room pursuant to which
the Pre-Sale Reorganisation was implemented;

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	 	 	“Properties” means the Certificated Properties and the Uncertificated Properties, details of
which are set out in Parts 1 and 2 respectively of Schedule 3 and “Property” means any one
of them;
	 
	 	 	“Provisions” has the meaning given to it in Schedule 6;
	 
	 	 	“Purchaser’s Group” means the Purchaser, its subsidiaries, any holding company of the
Purchaser and any subsidiaries of any holding company or subsidiary of the Purchaser from
time to time;
	 
	 	 	“Purchaser’s Lawyers” means Paul Hastings, Janofsky & Walker (Europe) LLP of 88 Wood Street,
London EC2V 7AJ;
	 
	 	 	“Purchaser’s Lenders” means the lenders as defined in the Senior Facilities Agreement
entered into on or around the date hereof between inter alia, the Lenders, Citigroup Global
Markets Limited as Mandated Lead Arranger, Citibank International plc, as Instructing Agent
and Citicorp Trustee Company Limited as Security Trustee; and the lender as defined in the
Mezzanine Facility Agreement entered into on or around the date hereof between the Company
and Eurolieum Sarl;
	 
	 	 	“Purchaser Retained Contracts” means those contracts listed in Part 2 of Schedule 10;
	 
	 	 	“Purchaser’s Scheme” means the retirement benefits scheme, personal pension scheme or
schemes nominated by the Purchaser in accordance with Clause 7.1.1;
	 
	 	 	“Relevant Employees” means those employees of the Group Companies who are immediately prior
to the date of this Agreement and/or Completion employed in the Group, (which for the
purposes of this Agreement shall be deemed to include those employees whose employment
relationship with InterContinental Hotels Group Services Limited will transfer to
InterContinental Hotels Limited on Completion by virtue of TUPE and subject to the terms of
a services agreement entered into on or about the date of this Agreement between
InterContinental Hotels Group Services Limited and the Companies) which for the avoidance of
doubt shall exclude any agency staff and independent contractors;
	 
	 	 	“Relevant Extent” means (i) in respect of any right or obligation of any member of the
Sellers’ Group pursuant to Clause 14.3 relating to a Split Contract or a Sellers’ Group
Contract, solely to the extent the rights and obligations under such contract relate to any
property or other asset which is or was owned by any member of the Sellers’ Group and which
is not being transferred to the Purchaser pursuant to this Agreement and (ii) in respect of
any right or obligation of any member of the Purchaser’s Group pursuant to Clause 14.3
relating to a Split Contract or a Sellers’ Group Contract, solely to the extent the rights
and obligations under such contract relate to any of the Properties or other assets being
transferred to the Purchaser pursuant to this Agreement or, in relation to the Posthouse
Agreement, to the Strand Palace Hotel and Annexe;
	 
	 	 	“Remedial Action” has the meaning given to it in Clause 9.6;
	 
	 	 	“Retained Contracts” means the agreements to which a Group Company is a party which do not
relate to any of the Hotels (including the Vendor Guarantee between InterContinental Hotels
Group (UK) Limited and Revlake Limited (now London MayFair Hotel Limited) dated 21 August
2003), to the extent that at Completion the same remain to be completed or performed or
remain in force, but excluding the Purchaser Retained Contracts or any agreement other than
a Construction Document relating to the ownership, use or occupation of any of the
Properties;

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	 	 	“Retained Employees” means the IHG Personnel as defined in the Portfolio Management
Agreement;
	 
	 	 	“SCPLC Guarantee” means the guarantee dated 12 October 2004 given by SCPLC in respect of
various obligations of InterContinental Hotels Limited;
	 
	 	 	“Second Deferred Consideration Amount” means the amount (if any) payable pursuant to Clause
3.2.2;
	 
	 	 	“Sellers” means SCPLC and IHC Holdings and “Seller” means either of them;
	 
	 	 	“Sellers’ Group” means the Sellers and their subsidiaries from time to time but excluding
the Group Companies;
	 
	 	 	“Sellers’ Group Contracts” means the agreements to which a member of the Sellers’ Group is a
party which relate partly but not exclusively to one or more of the Hotels or the Group
Companies to the extent that at Completion the same remain to be completed or performed or
remain in force, including without limitation those listed in Part 3 of Schedule 10 but
excluding any agreement other than a Construction Document relating to the ownership, use or
occupation of any of the Properties;
	 
	 	 	“Sellers’ Lawyers” means Linklaters of One Silk Street, London EC2Y 8HQ;
	 
	 	 	“Sellers’ Pension Scheme” means the InterContinental Hotels UK Pension Plan which is
currently governed by a trust deed and rules dated 31 January 2003;
	 
	 	 	“Sellers’ Warranties” means the warranties given by the Sellers pursuant to Clause 9 and
Schedule 7 and “Sellers’ Warranty” means any one of them;
	 
	 	 	“Senior Employee” means any employee employed or engaged in relation to the Group on an
annual base salary (on the basis of full-time employment) in excess of £100,000;
	 
	 	 	“Shares” means all the issued ordinary share capital of the Companies;
	 
	 	 	“Significant Employees” means those Relevant Employees of the Group Companies earning an
annual base salary in excess of £30,000;
	 
	 	 	“Split Contracts” means the agreements to which a Group Company is a party which relate
partly but not exclusively to one or more of the Hotels to the extent that at Completion the
same remain to be completed or performed or remain in force, including but not limited to
those listed in Part 1 of Schedule 10 but excluding any agreement other than a Construction
Document relating to the ownership, use or occupation of any of the Properties;
	 
	 	 	“Subsidiaries” means the subsidiaries listed in paragraph 2 of Schedule 2 and “Subsidiary”
means any one of them;
	 
	 	 	“Target TPOP” has the meaning given to it in Clause 3.2.1, 3.2.2, 3.2.3 or 3.2.4, as the
case may be;
	 
	 	 	“Taxation” or “Tax” means any form of taxation, national insurance or social security
contribution, withholding, duty, impost or tariff in each case in the nature of taxation,
whenever and wherever imposed, collected or assessed by, or payable to, a Tax Authority and,
without prejudice to the generality of the foregoing, includes income tax, corporation tax,
capital gains tax, value added tax, Customs & Excise duties, stamp duty land tax, stamp duty
reserve tax and stamp duty whether chargeable directly or primarily against or attributable
directly or primarily to the Group Companies or any other person, and including

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	 	 	all interest and penalties thereon but excluding the uniform business rate, water rates,
property rates, council taxes and all other similar rates and charges and other local
authority rates or charges and also excluding deferred tax.;
	 
	 	 	“Tax Authority” or “Taxation Authority” means the Commissioners of Inland Revenue, the
Commissioners of Customs and Excise, or any authority or body, whether of the United Kingdom
or elsewhere and whether national or otherwise having the power or authority or other
function in relation to Tax;
	 
	 	 	“Tax Deed of Covenant” means the deed of covenant against Taxation in the Agreed Terms;
	 
	 	 	“Tax Statute” means any primary or secondary statute, instrument, enactment, order, law,
by-law or regulation making any provision for or in relation to Tax;
	 
	 	 	“Tax Warranties” means those of the Sellers’ Warranties which relate to Tax being contained
in paragraph 13 of Schedule 7 to this Agreement and paragraph 8.6 of Schedule 7 to this
Agreement (but only so far as it relates to Tax) and the warranties given by the Sellers
under the Tax Deed of Covenant and “Tax Warranty” means any one of them;
	 
	 	 	“Third Deferred Consideration Amount” means the amount (if any) payable pursuant to Clause
3.2.3;
	 
	 	 	“Third Party Consents” means all consents, licences, approvals, permits, authorisations or
waivers required from third parties for the assignment or transfer to the Purchaser or
member of the Sellers’ Group, as the case may be, of any rights under any of the Contracts
and “Third Party Consent” means any one of them;
	 
	 	 	“TPOP” has the meaning given to it in the Portfolio Management Agreement;
	 
	 	 	“Transfer Agreements” means those agreements dated 28 February 2005 between, on the one
hand, InterContinental Hotels Limited and InterContinental Hotels Group (Management
Services) Limited and, on the other, InterContinental Hotels Group (UK) Limited and
InterContinental Hotels Group (Management Services) Limited in the Data Room (documents 07
003 and 09 002 in the Capital Reduction and Restructuring Documentation section of the
second round Data Room);
	 
	 	 	“TUPE” means the Transfer of Undertakings (Protection of Employment) Regulations 1981 (as
amended);
	 
	 	 	“Uncertificated Properties” means those properties details of which are set out in Part 2 of
Schedule 3 and “Uncertificated Property” means any one of them; and
	 
	 	 	“VAT” means United Kingdom Value Added Tax.
	 
	1.2	 	Modification etc. of Statutes

	 	 	References to a statute or statutory provision include:

	 	1.2.1	 	that statute or provision as from time to time modified, re-enacted or
consolidated whether before or after the date of this Agreement;
	 
	 	1.2.2	 	any subordinate legislation made from time to time under that statute or
statutory provision,

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	 	 	except to the extent that any statute, statutory provision or subordinate legislation made
or enacted after the date of this Agreement would create or increase a liability of the
Sellers under this Agreement or the Tax Deed of Covenant.
	 
	1.3	 	Singular, plural, gender
	 
	 	 	References to one gender include all genders and references to the singular include the
plural and vice versa.
	 
	1.4	 	References to persons and companies
	 
	 	 	References to:

	 	1.4.1	 	a person include any company, partnership or unincorporated association
(whether or not having separate legal personality); and
	 
	 	1.4.2	 	a company shall include any company, corporation or any body corporate,
wherever incorporated.

	1.5	 	References to subsidiaries and holding companies
	 
	 	 	The words “holding company” and “subsidiary” shall have the same meaning in this
Agreement as their respective definitions in the Companies Act 1985.
	 
	1.6	 	Audited Accounts
	 
	 	 	Any reference to the “Audited Accounts” shall include the directors’ and auditors’
reports, relevant balance sheets and profit and loss accounts and related notes together
with all documents which are or would be required by law to be annexed to the accounts of
the company concerned to be laid before that company in general meeting in respect of the
accounting reference period in question.
	 
	1.7	 	Schedules etc.
	 
	 	 	References to this Agreement shall include any Recitals and Schedules to it and
references to Clauses and Schedules are to Clauses of, and Schedules to, this Agreement.
References to paragraphs and Parts are to paragraphs and Parts of the Schedules.
	 
	1.8	 	Headings
	 
	 	 	Headings shall be ignored in interpreting this Agreement.

	 
	1.9	 	Information
	 
	 	 	References to books, records or other information mean books, records or other
information in any form including paper, electronically stored data, magnetic media, film
and microfilm.
	 
	2	 	Agreement to Sell the Assets
	 
	2.1	 	On and subject to the terms of this Agreement the Sellers (each as to the Shares
set out against its name in Schedule 1) agree to sell, and the Purchaser agrees to purchase,
the Shares and SCPLC agrees to transfer or procure the transfer to the Purchaser of the rights
of the Sellers’ Group arising under the Sellers’ Group Contracts solely to the extent such
rights relate to any of the Properties or other assets being transferred to the Purchaser

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	 	 	pursuant to this Agreement or, in relation to the Posthouse Agreement, to the Strand Palace
Hotel and Annexe, on the terms set out in Clause 14.3.
	 
	2.2	 	Subject to Clause 2.3, the Shares shall be sold by the Sellers with full title
guarantee free from Encumbrances and together with all rights and advantages attaching to them
as at Completion (including, without limitation, the right to receive all dividends or
distributions declared, made or paid on or after Completion save to the extent that such
dividends are declared and made as permitted under paragraph (xiii) of Clause 5.1.3).
	 
	2.3	 	There shall be excluded from the sale of the Assets under this Agreement the
Excluded Rights, which shall be retained by the Sellers.
	 
	2.4	 	The Sellers shall procure that on or prior to Completion any and all rights of
pre-emption over the Shares are waived irrevocably by the persons entitled thereto.
	 
	2.5	 	The Purchaser is not obliged to complete the purchase of any of the Shares unless
the purchase of all of the Shares is completed simultaneously.
	 
	3	 	Consideration
	 
	3.1	 	Amount

	 	3.1.1	 	The consideration for the purchase of the Shares under this Agreement which
shall be divisible among the Sellers pro-rata to the allocation as set out in column 3
of Schedule 1 shall be an amount in cash equal to the sum of:

	 	(i)	 	the Completion Amount;
	 
	 	(ii)	 	the Net Current Asset Adjustment; and
	 
	 	(iii)	 	the Deferred Consideration, which sums (if any) shall be paid
by the Purchaser to the Sellers within 10 Business Days of determination of the
TPOP in the Annual Accounts for the relevant Financial Reporting Year pursuant
to the terms of the Portfolio Management Agreement.

	 	3.1.2	 	The initial consideration for the purchase of the Shares shall be allocated
as set out in Schedule 1 (and the Net Current Asset Adjustment and the Deferred
Consideration attributable to the particular Shares shall be allocated pro-rata to the
allocation as set out in column 3 of Schedule 1) and paid by the Purchaser to the
Sellers in accordance with Clauses 6.3 and 8.2.
	 
	 	3.1.3	 	The Contracts Consideration shall be paid by the Purchaser to SCPLC in
accordance with Clause 6.3.

	3.2	 	Deferred Consideration

	 	3.2.1	 	If the TPOP in respect of the Financial Reporting Year ending 31 December
2005 is equal to or exceeds £79 million (or such amount as adjusted pursuant to Clause
3.2.5) (the “Target TPOP”), the sum of £3 million (the “First Deferred Consideration
Amount”) shall be payable by the Purchaser to the Sellers in accordance with Clause
3.1.1(iii).
	 
	 	3.2.2	 	If the TPOP in respect of the Financial Reporting Year ending 31 December
2006 is equal to or exceeds £86 million (or such amount as adjusted pursuant to Clause

11

 

	 	 	 	3.2.5) (the “Target TPOP”), the sum of £4.5 million (the “Second Deferred
Consideration Amount”) shall be payable by the Purchaser to the Sellers in
accordance with Clause 3.1.1(iii).
	 
	 	3.2.3	 	If the TPOP in respect of the Financial Reporting Year ending 31 December
2007 is equal to or exceeds £93 million (or such amount as adjusted pursuant to Clause
3.2.5) (the “Target TPOP”), the sum of £7.5 million (the “Third Deferred Consideration
Amount”) shall be payable by the Purchaser to the Sellers in accordance with Clause
3.1.1(iii).
	 
	 	3.2.4	 	If the TPOP in respect of the Financial Reporting Year ending 31 December
2007 is equal to or exceeds £102 million (or such amount as adjusted pursuant to Clause
3.2.5) (the “Target TPOP”), the sum of £25 million (the “Additional Deferred
Consideration Amount”) shall be payable in addition to the Third Deferred Consideration
Amount by the Purchaser to the Sellers in accordance with Clause 3.1.1(iii).
	 
	 	3.2.5	 	If any Hotel listed in Schedule 1 of the Portfolio Management Agreement is
no longer part of the Portfolio (as defined in the Portfolio Management Agreement), the
Target TPOP for the relevant Financial Reporting Year(s) shall be reduced by the amount
set out against its name in Schedule 15 multiplied by that percentage represented by
the number of days from the date on which such Hotel ceases to be part of the Portfolio
to the last day of the relevant Financial Reporting Year (as numerator) over 365 (as
denominator).
	 
	 	3.2.6	 	The Purchaser agrees that it will not, and it shall procure that none of
the Group Companies will, take any action intended to frustrate the payment of, or
which is primarily intended to reduce the amount of, the Deferred Consideration.
	 
	 	3.2.7	 	Subject to the provisions of the Management Agreements, the Sellers shall
not and shall procure that no member of the Sellers’ Group or their employees shall
take any action with respect to the Hotels which is intended to increase the Deferred
Consideration payable to the Sellers through a means which is other than a bona fide
improvement of the ongoing business profitability of the Hotels including any change to
accounting or budget practice with respect to the Hotels.

	3.3	 	Reduction of Consideration

	 	3.3.1	 	If any payment is made by any Seller to the Purchaser in respect of any
claim for any breach of this Agreement or pursuant to an indemnity under this Agreement
(or any agreement entered into under this Agreement), the payment shall be made by way
of adjustment of the consideration paid by the Purchaser for the particular Shares to
which the payment and/or claim relates under this Agreement and the consideration shall
be deemed to have been reduced by the amount of such payment.
	 
	 	3.3.2	 	If:

	 	(i)	 	the payment and/or claim relates to the shares in more than one
Group Company, it shall be allocated in a manner which reflects the impact of
the matter to which the payment and/or claim relates, failing which it shall be
allocated rateably to the shares in the Group Companies concerned by reference
to the proportions in which the consideration is allocated in accordance with
Clause 3.1.2; or

12

 

	 	(ii)	 	the payment and/or claim relates to no particular shares in any
Group Company, it shall be allocated rateably to all the Shares by reference to
the proportions in which the consideration is allocated in accordance with
Clause 3.1.2,

	 	 	 	and in each case the consideration shall be deemed to have been reduced by the
amount of such payment.
	 
	 	3.3.3	 	For the purposes of this Clause 3.3, “this Agreement” includes the Tax Deed
of Covenant.

	4	 	Conditions
	 
	4.1	 	Condition Precedent
	 
	 	 	The agreement to sell and purchase the Shares contained in Clause 2 is conditional upon
satisfaction of the following condition, or its satisfaction subject only to Completion:
	 
	 	 	to the extent that the sale of the Assets which are the subject of this Agreement and the
related transactions referred to herein either constitutes (or is deemed to constitute under
Article 4(5)) a concentration falling within the scope of Council Regulation (EC) 139/2004
(as amended) (the “Regulation”) or is to be examined by the European Commission as a result
of a decision under Article 22(3) of the Regulation:

	 	(i)	 	the European Commission taking a decision (or being deemed to
have taken a decision) under Article 6(1)(b) of the Regulation declaring the
Transaction compatible with the common market without imposing any conditions
or obligations that are not on terms reasonably satisfactory to the Purchaser;
or
	 
	 	(ii)	 	the European Commission taking a decision (or being deemed to
have taken a decision) to refer the whole or part of the Transaction to the
competent authorities of the United Kingdom under Article 4(4) or 9(3) of the
Regulation and the European Commission taking a decision in accordance with
Clause 4.1.2(i) above with respect to any part of the Transaction retained by
it.

	4.2	 	Responsibility for Satisfaction

	 	4.2.1	 	The Purchaser shall use all reasonable endeavours to ensure the
satisfaction of the condition set out in Clause 4.1 as soon as possible after the date
of this Agreement.
	 
	 	4.2.2	 	The Purchaser shall make any anti-trust filing required pursuant to Clause
4.1 as soon as reasonably practicable but in any event shall submit a draft filing to
the European Commission no later than the seventh Business Day following the date of
this Agreement. The Purchaser shall make, subject to Clause 4.2.3, a final filing with
the European Commission in respect of the Regulation as soon as practicable thereafter,
but in any event no later than eight Business Days following the date on which a draft
filing to the European Commission is made, or such other date as soon as practicable
thereafter in the event the final filing is delayed as a result of the actions or
inaction of the European Commission in respect of the filing.

13

 

	 	4.2.3	 	The Sellers shall co-operate with the Purchaser in respect of any filing
required pursuant to Clause 4.1 and shall make available, subject to commercial
confidentiality and to the confidentiality requirements of the Government of Singapore,
all information that the Purchaser deems reasonably necessary for that purpose or all
information which is requested by the appropriate regulatory bodies.
	 
	 	4.2.4	 	The Purchaser shall consult with the Sellers and the Sellers’ Lawyers in
respect of any filing required pursuant to Clause 4.1 and subject to the
confidentiality requirements of the Government of Singapore shall provide the Sellers
and the Sellers’ Lawyers with a reasonable opportunity to review such filing prior to
its submission to the appropriate regulatory bodies.

	4.3	 	Non-Satisfaction/Waiver

	 	4.3.1	 	The Purchaser shall give notice to the Sellers of the satisfaction of the
condition set out in Clause 4.1 within two Business Days of becoming aware of the same.
	 
	 	4.3.2	 	If the condition set out in Clause 4.1 is not satisfied on or before the
date which is 15 weeks from the date of this Agreement save as expressly provided, this
Agreement (other than Clauses 1, 13 and 14.5 to 14.19) shall lapse and neither the
Sellers nor the Purchaser shall have any claim against the other under it, save for any
claim arising from breach of any obligation contained in Clause 4.2.

	5	 	Pre-Completion
	 
	5.1	 	The Sellers’ Obligations in Relation to the Conduct of Business
	 
	 	 	Except as may be required to give effect to and comply with this Agreement or any law
or regulation or to implement or complete the Pre-Sale Reorganisation or in so far as the
Purchaser has given its written consent (such consent not to be unreasonably withheld or
delayed), the Sellers undertake to procure that between the date of this Agreement and
Completion each Group Company:

	 	5.1.1	 	shall carry on its business in all material respects as a going concern in
the ordinary course as carried on prior to the date of this Agreement;
	 
	 	5.1.2	 	shall maintain in force all existing insurance policies in all material
respects on the same terms and similar level of cover prevailing at the date of this
Agreement for the benefit of the Group Companies;
	 
	 	5.1.3	 	without prejudice to the generality of Clause 5.1.1, shall not:

	 	(i)	 	enter into any agreement or incur any commitment involving any
capital expenditure in excess of £150,000 per item and £1,000,000 in aggregate,
in each case exclusive of VAT, except to the extent that such expenditure would
be consistent with the relevant Group Company or Hotel’s capital budget as
specifically referred to in document 04009 in the property information pack
Data Room;
	 
	 	(ii)	 	enter into or amend any agreement or incur any commitment not
in the ordinary course of business which is either not capable of being
terminated without compensation at any time or with 12 months’ notice or less
or which involves or may involve total annual expenditure in excess of
£500,000, exclusive of VAT;

14

 

	 	(iii)	 	acquire or dispose of, or agree to acquire or dispose of, any
material asset (including any real property), or enter into or amend any
agreement or incur any commitment to do so, in each case involving
consideration, expenditure or liabilities in excess of £500,000, exclusive of
VAT, other than in the ordinary course of business and on an arm’s length basis
provided always that in relation to any Property the provisions of sub-clause
5.1.3(viii) below shall apply instead of this sub-clause 5.1.3(iii);
	 
	 	(iv)	 	acquire or agree to acquire any share, shares or other interest
in any company, partnership or other venture;
	 
	 	(v)	 	incur any additional borrowings or incur any other indebtedness
which are not Inter-Group Receivables or Inter-Group Payables otherwise than in
the ordinary course of business and on an arm’s length basis;
	 
	 	(vi)	 	create, allot or issue, or grant any option to subscribe for,
any share capital;
	 
	 	(vii)	 	amend, to any material adverse extent, any of the terms on
which goods, facilities or services are supplied, such supplies being material
in the context of any Group Company, except where required to do so in order to
comply with any applicable legal or regulatory requirement;
	 
	 	(viii)	 	in relation to any Property:

	 	(a)	 	except in the case of an emergency or in order
to undertake Remedial Action or works required under Part III of the
Disability Discrimination Act 1995, carry out any material structural
alteration or addition to, or materially effect any change of use of,
such Property other than (1) the ongoing kitchen refurbishment works at
Holiday Inn Maidstone (2) the ongoing kitchen refurbishment works at
Holiday Inn Farnborough and (3) the ongoing works to demolish staff
blocks to form car parking at Holiday Inn Farnborough;
	 
	 	(b)	 	terminate or serve any notice to terminate,
surrender or accept any surrender of or waive the terms of any lease,
tenancy or licence pursuant to which any of the Properties are held or
in relation to any Material Letting Document;
	 
	 	(c)	 	unless under a statutory or other legal
obligation so to do, agree any new rent or fee payable or any rent
review under any lease, tenancy or licence pursuant to which any of the
Properties are held or in relation to any Material Letting Document;
	 
	 	(d)	 	enter into or vary any agreement, option,
transfer, lease, tenancy, licence or other commitment pursuant to which
any of the Properties are held or in relation to any Material Letting
Document;
	 
	 	(e)	 	sell, convey, transfer, assign or charge any
Property or any part or grant any rights or easements over any Property
or any part (except as may be granted to a tenant in a permitted
letting) or enter into any material covenants affecting any Property or
any part or agree to do any of the foregoing;
	 
	 	(f)	 	unless under a statutory or other legal
obligation so to do, grant any lease or underlease of any Property or
any part provided always that

15

 

	 	 	 	a Group Company shall be permitted to lease or underlease any part of
a Property which is not a material part as part of its business in the
ordinary course where such lease or underlease is (i) granted for a
term not exceeding three years and (ii) outside the security of tenure
provisions of the Landlord and Tenant Act 1954;
	 
	 	(g)	 	carry out any new activity on any Property
which activity has not been carried out prior to the date of this
Agreement as part of the relevant Group Company’s business in the
ordinary course, where such activity would result in a material breach
of a title restriction affecting that Property;

	 	(ix)	 	save as required by law:

	 	(a)	 	make any material amendment to the terms and
conditions of employment (including, without limitation, remuneration,
pension entitlements and other benefits) of any Senior Employee (other
than minor increases in the ordinary course of business which the
Sellers shall notify to the Purchaser as soon as reasonably possible);
	 
	 	(b)	 	provide or agree to provide any gratuitous
payment or benefit to any such person or any of his dependants;
	 
	 	(c)	 	dismiss any Senior Employee (other than in
accordance with normal disciplinary procedures); or
	 
	 	(d)	 	engage or appoint any additional Senior
Employee;

	 	(x)	 	settle an insurance claim in excess of £500,000 materially
below the amount claimed;
	 
	 	(xi)	 	enter into any guarantee, indemnity or other agreement to
secure any obligation of a third party (excluding obligations of any Group
Company) or create any Encumbrance over any of its assets (including any
Property) or undertaking in any such case other than in the ordinary course of
business and on an arm’s length basis;
	 
	 	(xii)	 	make any material change to its accounting practices or
policies (except to the extent required to comply with any changes in GAAP) or
amend its memorandum or articles of association; or
	 
	 	(xiii)	 	declare, make or pay any dividend or other distribution to shareholders
except that each of the Companies shall be entitled to make or pay dividends of
up to £1,000,000 in aggregate provided that such dividends have been declared
and paid before the date on which the conditions set out in Clause 4.1 are
fulfilled,

	 	 	 	provided that nothing in this Agreement shall prevent the payment of any dividend by
a Group Company, which is permitted under Clause 5.1.3(xiii), between the date of
this Agreement and the date on which the conditions set out in Clause 4.1 are
fulfilled.
	 
	 	5.1.4	 	shall maintain in force and renew where required all Licences necessary for
the continued operation of any Hotel or material to the business of any Hotel;

16

 

	5.2	 	The Sellers’ Obligations in Relation to the Financing of the Business
	 
	 	 	Each of the Sellers undertake that save in relation to the payment of dividends
permitted under Clause 5.1.3(xiii), between the date of this Agreement and Completion, they
will:

	 	5.2.1	 	not lend any money or offer any form of financing to any Group Company
which is not an Inter-Group Receivable nor alter the amount or material terms of the
Inter-Group Debt;
	 
	 	5.2.2	 	procure that no Group Company borrows any money from nor incurs any other
financing liabilities or obligations to the Sellers’ Group (other than trading debt or
liabilities arising in the ordinary course or Inter-Group Payables); and
	 
	 	5.2.3	 	procure that no member of the Sellers’ Group borrows any money from nor
incurs any other financing liabilities or obligations to the Group (other than trading
debt or liabilities arising in the ordinary course),

	 	 	unless the Purchaser has agreed to this in writing, such consent not to be unreasonably
withheld or delayed.
	 
	5.3	 	Sellers’ Undertakings

	 	5.3.1	 	At the request of the Purchaser, the Sellers have made applications for
landlords’ consents to charge certain Properties. From the date of this Agreement up to
Completion, the Sellers shall (at the Purchaser’s cost) make such additional
applications to landlords regarding waivers or amendments to forfeiture provisions or
such similar matters as the Purchaser may reasonably request and shall use all
reasonable endeavours to obtain such landlords’ consents as soon as reasonably
practicable and shall promptly keep the Purchaser informed of progress.
	 
	 	5.3.2	 	The Sellers shall continue to use all reasonable endeavours to complete the
transfer of the legal estate in respect of the Strand Palace Hotel London from
InterContinental Hotels Limited to Waseley Roadside Restaurants Limited and shall keep
the Purchaser fully advised at all times of progress in this respect.
	 
	 	5.3.3	 	The Sellers undertake that they will prior to Completion apply, or procure
an application, to Companies House to remove from the register any entries in relation
to the charge in favour of the Law Debenture Trust in respect of Crowne Plaza Heathrow
which has been satisfied.
	 
	 	5.3.4	 	 

	 	(i)	 	Promptly following the date of this Agreement, the Purchaser shall at its
own cost appoint a suitably qualified expert (the “Purchaser’s Expert”) to
review as soon as reasonably practicable the works identified in document 07 in
the Group Information section of the property information pack Data Room
entitled “IHG’s UK DDA policy, summary of works and status”, document 51 002
“DDA progress summary” in the Portfolio Information section of the second round
Data Room, document 51 003 “DDA Audits — stage 3 status summary” in the
Portfolio Information section of the second round Data Room (together, the
“Sellers’ Proposed DDA Works”) and item 03 011 for each Hotel in the second
round Data Room ( being the Stage 2 DDA Audits).

17

 

	 	(ii)	 	If in the Purchaser’s Expert’s reasonable and proper opinion
the completion of the Sellers’ Proposed DDA Works in relation to the Listed
Hotels only would not make the Listed Hotels compliant with the requirements of
Part III of the Disability Discrimination Act 1995 (as determined in accordance
with the Sellers’ own internal policies as set out in document 07 in the Group
Information section of the property information pack in the Data Room), then
the Purchaser shall procure that the Purchaser’s Expert promptly supplies to
the Sellers (at the Sellers’ cost) full details (including specifications and
initial costings) of those further works required to procure such compliance
(the “Further Works”). If the Sellers disagree with any element of the Further
Works, they may refer the matter to an independent expert in accordance with
Clause 5.3.4(v) below.
	 
	 	(iii)	 	The Sellers shall, subject to obtaining all necessary consents
(which the Sellers shall use all reasonable endeavours to obtain and the
Purchaser shall co-operate with the Sellers and assist in obtaining such
consents if reasonably required), carry out the Sellers’ Proposed DDA Works and
(subject to any pending referral to the independent expert) the Further Works
as soon as reasonably practicable using competent contractors approved by the
Purchaser (acting reasonably).
	 
	 	(iv)	 	The Sellers shall indemnify the Purchaser against any Losses
incurred by the Purchaser or any member of the Purchaser’s Group arising from
any failure by the Sellers to carry out the Sellers’ Proposed Works and
(subject to any pending referral to the independent expert) the Further Works.
	 
	 	(v)	 	Any dispute or difference between the parties in connection
with matters arising under this Clause 5.3.4, may be referred by either party
to an independent person acting as an expert who has been professionally
qualified for not less than 10 years and who is an accredited consultant from
the Centre for Accessible Environment, such independent person to be appointed
by the parties jointly or, in default of agreement, on the application of
either party by the President (or next senior available officer) for the time
being of the Royal Institution of Chartered Surveyors or such other
professional body as may be suitable given the nature of the dispute. The
parties agree to be bound by the decision of such expert and that the costs of
such expert shall be borne as the expert may direct (or in the absence of
direction, equally). Accordingly, if any relevant matter is referred to the
expert by the Sellers under this clause, the reference to Further Works shall
be to such works as determined by such expert.

	 	5.3.5	 	 

	 	(i)	 	The Purchaser shall carry out such works as are required either to put the
building known as Shoppenhangers Manor located at HI Maidenhead
(“Shoppenhanger’s Manor”) into good condition and repair including ensuring
compliance with all requirements of health and safety law and obtaining all
necessary planning and building regulation consent in respect of such work or
to close such building permanently as soon as reasonably practicable after
Completion.

18

 

	 	(ii)	 	Subject to sub clause 5.3.5(iv) below, the Sellers shall
indemnify the Purchaser in respect of any costs incurred by it or any member of
the Purchaser’s Group in carrying out the works referred to in paragraph (i)
above.
	 
	 	(iii)	 	Until such time as the Purchaser has complied with its
obligation under paragraph (i) above the Sellers shall, subject to sub clause
5.3.5(iv) below, indemnify the Purchaser (for itself and as agent for any other
member of the Purchaser’s Group) against any Losses to the extent they arise
out of any claim against the Purchaser (or any member of the Purchaser’s Group)
in respect of the personal injury or death of any person at Shoppenhanger’s
Manor.
	 
	 	(iv)	 	The aggregate amount of the Sellers under the indemnities
referred to in sub clause 5.3.5(ii) above shall not exceed £2,000,000 and the
Sellers not be liable in respect of any Losses under the indemnities referred
to in this sub clause 5.3.5 to the extent such losses are covered by a policy
of insurance.

	 	5.3.6	 	The Sellers shall indemnify and hold harmless the Purchaser (for itself and
as agent for any other member of the Purchaser’s Group) for any Losses to the extent
they arise out of the letter of claim dated 28 February 2005 against Intercontinental
Hotels Group Limited from the liquidators of Sylvan Refurbishment Limited in relation
to the claim by Sylvan Refurbishment Limited against Kensington Forum Hotel Limited.
	 
	 	5.3.7	 	The Sellers undertake to procure that at Completion all of the shares in
Holiday Inn (Reading) Limited are transferred with full title guarantee to the
Purchaser and will indemnify the Purchaser in respect of any failure so to do.
	 
	 	5.3.8	 	The Sellers shall indemnify the Purchaser (for itself and as agent for any
member of the Purchaser’s Group) against any Losses to the extent they arise under
Clause 5.8(c) of the Posthouse Agreement as a result of any claim under the Business IP
Agreement which is in breach of Clause 5.8(b) of the Posthouse Agreement.

	6	 	Completion
	 
	6.1	 	Date and Place
	 
	 	 	Subject to Clause 4, Completion shall take place at the offices of the Sellers’
Solicitors no later than the tenth Business Day following fulfilment of the condition set
out in Clause 4.1, or at such other location, time or date as may be agreed between the
Sellers and the Purchaser.
	 
	6.2	 	Completion Obligations
	 
	 	 	On Completion, the Sellers and the Purchaser shall comply with their respective
obligations specified in Schedule 5.
	 
	6.3	 	Payment on Completion
	 
	 	 	On Completion, the Purchaser shall pay the Completion Amount to the Sellers and the
Contracts Consideration to SCPLC.

19

 

	6.4	 	Repayment of Inter-Group Debt Balance
	 
	 	 	On Completion the Purchaser shall procure repayment by the relevant Group Companies of
the Inter-Group Debt Balance.
	 
	6.5	 	Breach of Completion Obligations
	 
	 	 	If the Sellers fail to comply with any material obligation in paragraph 1.1.1, 1.1.2,
1.1.3, 1.1.4, 1.1.12 or 1.1.15 of Schedule 5, or the Purchaser fails to comply with the
obligations in Clauses 6.3, 6.4 or paragraphs 2.1 to 2.3 of Schedule 5, the Purchaser, in
the case of non-compliance by the Sellers, or the Sellers, in the case of non-compliance by
the Purchaser, shall be entitled (in addition to and without prejudice to all other rights
or remedies available, including the right to claim damages) by written notice to the other
served on the Completion Date:

	 	6.5.1	 	to terminate this Agreement (other than Clauses 1, 13 and 14.5 to 14.19)
without liability on its part; or
	 
	 	6.5.2	 	to effect Completion so far as practicable having regard to the defaults
which have occurred; or
	 
	 	6.5.3	 	to fix a new date for Completion (not being more than 20 Business Days
after the agreed date for Completion) in which case the provisions of Schedule 5 shall
apply to Completion as so deferred but provided such deferral may only occur once.

	7	 	Pensions and Employee Incentives
	 
	7.1	 	The Purchaser undertakes that:

	 	7.1.1	 	it or the Employing Company will set up or nominate a pension scheme by a
date (the “Joining Date”) which is within four months of the Completion Date which will
be an exempt approved scheme or capable of approval as an exempt approved scheme for
the purposes of either Chapter I or Chapter IV of Part XIV of ICTA;
	 
	 	7.1.2	 	within seven days after the Completion Date all Relevant Employees who are
in the service of the Purchaser or the Employing Company and who have not reached their
retirement date under the Sellers’ Pension Scheme shall be invited in writing to become
members of the Purchaser’s Scheme with effect on and from the Joining Date, but (if the
Joining Date is later than the Completion Date) on terms that are at least as
favourable to them as if the Joining Date had been the Completion Date;
	 
	 	7.1.3	 	the Purchaser’s Scheme shall at the Joining Date provide benefits for
Relevant Employees who join the Purchaser’s Scheme in accordance with Clause 7.1.2. The
Relevant Employees will contribute between 3 per cent and 5 per cent of basic salary
(or more if they so choose). If the Relevant Employee was a member of the defined
contribution section of the Seller’s Pension Scheme, the Purchaser or other member of
the Purchaser’s Group will contribute an amount equal to the amount being contributed
by the Relevant Employee to the Purchaser’s Scheme (up to a maximum of 5 per cent of
basic salary) plus administration costs. However, if employer contributions to the
defined contribution section of the Sellers’ Pension Scheme in respect of any Relevant
Employee were double the amount contributed by such Relevant Employee to that section
of the Sellers’ Pension Scheme, the Purchaser or Employing Company will contribute
double the amount being

20

 

	 	 	 	contributed by such Relevant Employee to the Purchaser’s Scheme (subject to a
maximum of 10 per cent. of basic salary) plus administrative costs. If the Relevant
Employee was a member of the defined benefit section of the Seller’s Pension Scheme,
the Purchaser or the Employing Company will contribute double the amount being
contributed by the Relevant Employee to the Purchaser’s Scheme (subject to a maximum
of the lesser of 10 per cent. of basic salary and Inland Revenue limits on
contributions) plus administrative costs. The Purchaser may also nominate an
alternative scheme which provides the Relevant Employees with comparable or more
favourable benefits;
	 
	 	7.1.4	 	it or the Employing Company shall with effect on and from the Completion
Date use all reasonable endeavours to arrange for life cover at the same rate that
applied immediately prior to the Completion Date and incapacity cover (on the same
basis as that defined in Rules 7(4), 7(5) and 7(6) of the DC Section of the Seller’s
Pension Scheme) in respect of all Relevant Employees who join the Purchaser’s Scheme in
accordance with Clause 7.1.2.

	 	 	If no later than 13 weeks after the Joining Date a Relevant Employee who has become a member
of the Purchaser’s Scheme with effect from that date requests a transfer to that scheme of
the cash equivalent of his benefits under the defined benefits section of the Sellers’
Pension Scheme, the Sellers shall use their best endeavours to procure that the sum
transferred is no less than 125 per cent. of his unreduced statutory cash equivalent under
the Pension Schemes Act 1993 (calculated in accordance with the method and assumptions
applicable under the Sellers’ Pension Scheme in March 2005, as applied to market conditions
at the start of the month of the member’s request). The Purchaser undertakes that that sum
will be used entirely to provide further benefits for and in respect of that member and
shall not be used to pay for administrative expenses.
	 
	 	 	Both the Seller and the Purchaser undertake that they have not given and will not give any
undertaking or assurance that does not reflect the terms of this Clause 7.1.
	 
	7.2	 	The following will apply only if regulations are made under the Pensions Act 2004
which change the basis on which debts are payable by an employer to a multi-employer pension
scheme and which have effect on or before Completion. The Sellers will use their best
endeavours to ensure that an actuarial valuation of the Sellers’ Pension Scheme is carried out
as at Completion as soon as is reasonably practicable for the purposes of establishing whether
any debt is owed by any of the Group Companies to the Sellers’ Pension Scheme under Section 75
or 75A of the Pensions Act 1995 as amended. The Sellers will initiate discussions with the
Pensions Regulator and/or the trustees of the Sellers’ Pension Scheme (depending on the terms
of the regulations) as soon as is reasonably practicable with a view to establishing the
amount due under Section 75 or Section 75A, the parties which are to pay the amount due and
the timing of the payments. The Sellers will use all reasonable endeavours to ensure that
agreement is reached on those matters with the Pensions Regulator and/or the trustees (as the
case may be) within 12 months of the signature of the actuarial valuation to:

	 	7.2.1	 	limit the Purchaser’s, the Employing Company’s and the Purchaser’s Group’s
exposure to such liability; and
	 
	 	7.2.2	 	ensure that the Purchaser, the Employing Company and the Purchaser’s Group
need not rely on the indemnity in Clause 7.3 for more than five years following
Completion.

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	 	 	However, for a maximum period of five years from the date of Completion, the Sellers will
not be required to agree to any proposal which would increase the amount which would
otherwise have had to be paid or which would accelerate payment of that amount. For the
avoidance of doubt, on the expiry of five years from the date of Completion, the Seller
undertakes to comply with any order or direction from the Pensions Regulator relating to
payment of any debt owed by any of the Group Companies to the Seller’s Pension Scheme under
Section 75 or 75A of the Pensions Act 1995 as amended.
	 
	7.3	 	The Sellers shall indemnify and keep indemnified the Purchaser, any other member of
the Purchaser’s Group and the Employing Company against all and any liabilities, costs and
expenses which the Purchaser, such other Group member or the Employing Company may incur or be
responsible for in relation to any pension scheme or arrangement in which any of the Group
Companies has participated prior to Completion (including, without limitation, the Sellers’
Pension Scheme) under or in connection with or as a result of Section 75 or 75A of the
Pensions Act 1995 (as amended under the Pensions Act 2004 or any regulations promulgated
thereunder). If the Pensions Regulator and the trustees of the Sellers’ Pension Scheme
releases the Purchaser or any other member of the Purchaser’s Group or the Employing Company
from such a liability, the indemnity will cease to apply in respect of the party so released
for so long as the party remains released.
	 
	7.4	 	The Sellers shall indemnify and keep indemnified the Purchaser, any other member of
the Purchaser’s Group and the Employing Company in respect of any liability incurred directly
or indirectly as a result of a claim by any Relevant Employee who has transferred to the
employment of a Group Company between August 1993 and the date of this Agreement as a result
of the operation of the Transfer of Undertakings (Protection of Employment) Regulations 1981
(as amended) that he is entitled to the payment of an early retirement benefit (on redundancy
or otherwise).
	 
	7.5	 	Without prejudice to any liability under the Tax Deed of Covenant, the parties
agree that the collection of income tax under PAYE and primary National Insurance
contributions and the payment of these amounts to the Inland Revenue relating to any share
option or other share incentive over IHG Shares which was granted before Completion to any
Relevant Employee shall be dealt with as described in Clause 7.6.
	 
	7.6	 	SCPLC is responsible for the collection of any income tax under PAYE and primary
National Insurance contributions which may be due in respect of the acquisition of IHG Shares
by a Relevant Employee.
	 
	7.7	 	The Sellers shall indemnify and keep indemnified the Purchaser, any other member of
the Purchaser’s Group and the Employing Company against all and any liabilities, costs and
expenses which the Purchaser, such other Group member or the Employing Company may incur or be
responsible for in respect of the Retained Employees as a result of being treated as the de
facto employer of the Retained Employees in relation to any pension scheme or arrangement
operated by any member of the Sellers’ Group in which any of the Group Companies has
participated or is treated by the Pension Regulator as having participated after Completion
(including, without limitation, the Sellers’ Pension Scheme).

22

 

	8	 	Post-Completion Adjustments
	 
	8.1	 	Net Current Asset Statement
	 
	 	 	The Sellers shall procure that they shall draw up the Net Current Asset Statement (the
“Net Current Asset Statement”) in accordance with Parts 1 — 4 of Schedule 6 setting out the
Net Current Assets together with the Long-Term Liabilities (if any) and Provisions (if any).
	 
	8.2	 	Adjustment to Consideration

	 	8.2.1	 	Net Current Assets, Long-Term Liabilities and Provisions

	 	(i)	 	If the Net Current Assets (after deducting Long-Term
Liabilities (if any) and Provisions (if any)) exceed the Estimated Net Current
Assets by more than £100,000, the Purchaser shall pay to the Sellers an
additional amount equal to the excess of the Net Current Assets over the
Estimated Net Current Assets as an increase in the consideration.
	 
	 	(ii)	 	If the Net Current Assets (after deducting Long-Term
Liabilities (if any) and Provisions (if any)) are less than the Estimated Net
Current Assets, and the amount of such deficit is greater than £100,000, the
Sellers shall repay to the Purchaser an amount equal to such deficit as a
reduction in the consideration.
	 
	 	(iii)	 	Any payments pursuant to this Clause 8.2.1 shall be made on or
before ten Business Days after the date on which the process described in Part
2 of Schedule 6 for the preparation of the Net Current Asset Statement is
complete.

	 	8.2.2	 	Interest
	 
	 	 	 	Any payment to be made in accordance with this Clause 8.2 shall include interest
thereon calculated from the Completion Date to the date of payment at a rate per
annum of 2 per cent above the base rate from time to time of Barclays Bank PLC. Such
interest shall accrue from day to day.
	 
	 	8.2.3	 	Payment and Allocation
	 
	 	 	 	Where any payment is required to be made pursuant to this Clause 8.2:

	 	(i)	 	the Completion Amount shall be deemed to have been reduced or
increased accordingly; and
	 
	 	(ii)	 	the allocation of the consideration shall be adjusted pro-rata
to the pre-adjustment allocation set out in Schedule 1.

	9	 	Warranties and Indemnities
	 
	9.1	 	Sellers’ Warranties

	 	9.1.1	 	Subject to Clause 9.2, the Sellers warrant to the Purchaser that the
statements set out in Schedule 7 are true and accurate as of the date of this
Agreement.
	 
	 	9.1.2	 	The only Sellers’ Warranties given:

23

 

	 	(i)	 	in respect of the Certificated Properties are those contained
in paragraphs 4.1, 4.2 and 4.4 of Schedule 7 and each of the other Sellers’
Warranties shall be deemed not to be given in respect of the Certificated
Properties;
	 
	 	(ii)	 	in respect of the Uncertificated Properties are those contained
in paragraphs 4.1, 4.3 and 4.4 of Schedule 7 and each of the other Sellers’
Warranties shall be deemed not to be given in respect of the Uncertificated
Properties;
	 
	 	(iii)	 	in respect of Environment are those contained in paragraph 10
of Schedule 7 and each of the other Sellers’ Warranties shall be deemed not to
be given in respect of the Environment;
	 
	 	(iv)	 	in respect of Tax are those contained in paragraph 13 of
Schedule 7 and paragraph 8.6 of Schedule 7 (but only insofar as it relates to
Tax) the warranties given by the Sellers under the Tax Deed of Covenant and
each of the other Sellers’ Warranties shall be deemed not to be given in
respect of Tax; and
	 
	 	(v)	 	in respect of the Disability Discrimination Act 1995 is that
contained in paragraph 4.4.5 of Schedule 7 and each of the other Sellers’
Warranties shall be deemed not to be given in respect thereof.

	 	9.1.3	 	The Sellers acknowledge that the Purchaser has entered into this Agreement
in reliance upon the Sellers’ Warranties.
	 
	 	9.1.4	 	Any Sellers’ Warranty qualified by the expression “to the best of the
Sellers’ knowledge, information and belief” or any similar expression shall, unless
otherwise stated, be deemed to refer to the actual knowledge of those persons set out
in column (1) of Schedule 9 whose position is stated opposite his name, such persons
having made all reasonable and careful enquiries, in each case in relation to those
Sellers’ Warranties set out against each such person’s name in column (3) of Schedule
9.

	9.2	 	Sellers’ Disclosures

	 	9.2.1	 	The Sellers’ Warranties are subject to:

	 	(i)	 	the specific matters which are fairly and specifically disclosed in or pursuant
to this Agreement or the Disclosure Letter or expressly provided for under the terms of
this Agreement;
	 
	 	(ii)	 	other than as provided in Clause 9.2.2 only, any information which is fairly
and specifically disclosed in any document placed in the Data Room prior to midnight on
28 February 2005 and listed in Schedule 1, Part 1 to the Disclosure Letter or any
document that was placed in the Data Room after midnight on 28 February 2005 provided
it is listed in Schedule 1, Part 4 to the Disclosure Letter; and
	 
	 	(iii)	 	the limitations of liability set out in Clauses 10 and 11.5.5.

	 	9.2.2	 	 

	 	(i)	 	paragraphs 2, 3.2, 10 and 15 of the Sellers’ Warranties are not subject to any
information contained in any document in the Data Room save as provided in this Clause
9.2.2;

24

 

	 	(ii)	 	the Sellers’ Warranties in paragraphs 2 and 3.2 are subject to any information
which is fairly and specifically disclosed in any document in sections 1-4 of Part 3 of
Schedule 1 to the Disclosure Letter;
	 
	 	(iii)	 	the Sellers’ Warranties in paragraph 10 are subject to any information which
is fairly and specifically disclosed in any document in section 5, Part 3 of Schedule 1
to the Disclosure Letter;
	 
	 	(iv)	 	the Sellers’ Warranties in paragraph 15 are subject to any information which is
fairly and specifically disclosed in any document in section 6, Part 3 of Schedule 1 to
the Disclosure Letter; and
	 
	 	(v)	 	the Sellers’ Warranties shall only be subject to any information disclosed in
the documents listed in Schedule 1, Part 2 (being documents placed in the Data Room
after midnight on 28 February 2005) to the extent that a specific disclosure is made in
the Disclosure Letter or the document falls within the sections of the Data Room
referred to in Clauses 9.2.2(ii)-(v).

	 	9.2.3	 	None of the Sellers’ Warranties in paragraphs 9, 10 and 15 shall be treated
as applying to Shoppenhanger’s Manor.

	9.3	 	Notification

	 	9.3.1	 	Without prejudice to Clause 9.4, if after the signing of this Agreement and
before Completion:

	 	(i)	 	the Sellers shall become aware that any of the Sellers’
Warranties has been breached, is untrue, inaccurate or misleading in any
material respect; or
	 
	 	(ii)	 	any event shall occur or matter shall arise of which the
Sellers become aware which results or is likely to result in any of the
Sellers’ Warranties being untrue, inaccurate or misleading in any material
respect at Completion,

	 	 	 	the Sellers shall immediately notify the Purchaser in writing as soon as practicable
and in any event prior to Completion setting out such details as are available and,
if reasonably requested by the Purchaser, will use their reasonable endeavours to
prevent or remedy the notified occurrence.
	 
	 	9.3.2	 	For the avoidance of doubt, but without limitation, any amendment, having a
material effect to a Certificate of Title between the date of this Agreement and the
Completion Date shall not prevent the Purchaser from claiming against the Sellers under
this Agreement for a breach which it would otherwise be entitled to claim for.

	9.4	 	Updating of the Sellers’ Warranties to Completion
	 
	 	 	Subject to Clause 9.2, the Sellers further warrant to the Purchaser that the Sellers’
Warranties will be true and accurate at Completion in all material respects as if
they had been repeated at Completion.
	 
	9.5	 	Sellers’ Indemnities
	 
	 	 	The Sellers shall indemnify and hold harmless the Purchaser (for itself and as agent
for any other member of the Purchaser’s Group) against all Losses to the extent such losses
arise or result from:

25

 

	 	9.5.1	 	a failure to implement the Pre-Sale Reorganisation in accordance with the
provisions of the Pre-Sale Reorganisation Documents or as a result of or in connection
with any failure to execute or deliver the Pre-Sale Reorganisation Documents or to the
extent such Losses (i) constitute a direct cost or expense (other than in respect of
any Taxation) of implementing the Pre-Sale Reorganisation or (ii) relate to any third
party claim (other than in respect of any Taxation) arising or resulting from the
implementation of the Pre-Sale Reorganisation which would not have arisen but for such
implementation; or
	 
	 	9.5.2	 	any warranty, indemnity or covenant which was given by any Group Company in
connection with the disposal, pursuant to an agreement entered into prior to the date
of this Agreement, of any company business, or property unless and to the extent the
Purchaser or any other member of the Purchaser’s Group recovers or is entitled to
recover on the basis set out in sub clause 10.10.2 any such Losses under the Posthouse
Agreement in respect of such warranty, indemnity or covenant, or
	 
	 	9.5.3	 	the ownership by InterContinental Hotels Limited of the legal estate in
respect of the Strand Palace Hotel, London and the transfer of the same to any third
party unless and to the extent the Purchaser or any other member of the Purchaser’s
Group recovers or is entitled to recover on the basis set out in Clause 10.10.2 any
such Losses under the Posthouse Agreement in respect of the same,

	 	 	provided that the Purchaser shall not be entitled to make any claim pursuant to this Clause
9.5 in respect of any such Losses to the extent it has or would have a claim or right of
action against, or a right to indemnification from, the Sellers under the Tax Deed of
Covenant in respect of such Losses.
	 
	9.6	 	Contamination Indemnity

	 	9.6.1	 	Definitions
	 
	 	 	 	For the purposes of this Clause 9.6 of the Agreement the following expressions shall
have the following meanings:
	 
	 	 	 	“Completed”, “Conduct Party” and “Other Party” shall each bear the meanings set out
in sub clause 9.6.5:
	 
	 	 	 	“Contamination” means any Hazardous Substances present in soil, or in groundwater or
surface water at, in, on or under any of the Specified Hotels or Specified
Additional Hotels or migrating therefrom in each case at Completion, whose presence
therein or migration therefrom (i) (a) has been specifically identified in the
ENVIRON Investigation in the case of the Specified Hotels or (b) in the case of any
Specified Additional Hotel derives from a specific risk factor (including, without
limitation, nearby underground storage tanks or the presence of a nearby landfill)
reasonably identified in relation to the relevant Specified Additional Hotel by
Environ (UK) Limited in their Phase 1 environmental report which factor caused or
substantially contributed to Environ (UK) Limited’s risk ranking of such Specified
Additional Hotel as a “medium or medium-high” risk and (ii) at Completion would have
caused an Environmental Authority to require the Sellers to undertake clean up works
or other remedial measures to discharge a liability under or breach of Environmental
Law and/or to put the relevant Specified

26

 

	 	 	 	Hotel or Specified Additional Hotel into compliance with Environmental Law if such
Environmental Authority had had knowledge thereof at such time;
	 
	 	 	 	“Emergency” means an immediate and serious risk of significant harm to human health
or safety or to the structural safety of a Specified Hotel or Specified Additional
Hotel resulting from Contamination;
	 
	 	 	 	“ENVIRON Investigation” means the intrusive Phase II investigations into soil and
groundwater at the Specified Hotels undertaken on behalf of the Purchaser by Environ
(UK) Limited in March 2005 the cost of which shall be borne by the Purchaser and
shall fall out with any indemnity set out in this clause;
	 
	 	 	 	“Environmental Expert” means the expert appointed pursuant to clause 9.6.6;
	 
	 	 	 	“Environmental Losses” means:

	 	(a)	 	any reasonable expenditure incurred by the Purchaser or any
member of the Purchaser’s Group in the implementation of any Remedial Action
Recommendation (including for the avoidance of doubt but without limitation any
reasonable costs, fees (including legal and consultant fees) or charges) and
any indirect or consequential losses suffered by any member of the Purchaser’s
Group as a result of the closure of the whole or a substantial part of the
relevant Specified Hotel to the extent such closure was necessary for such
implementation PROVIDED ALWAYS THAT this head of Environmental Losses shall not
be recoverable in respect of any Specified Additional Hotels;
	 
	 	(b)	 	any reasonable expenditure incurred by the Purchaser or any
member of the Purchaser’s Group in undertaking any Remedial Action agreed or
determined to be necessary in an Emergency and undertaken pursuant to sub
clause 9.6.4 (including for the avoidance of doubt but without limitation any
reasonable costs, fees (including legal and consultant fees) or charges) and
any indirect or consequential losses suffered by any member of the Purchaser’s
Group as a result of the closure of the whole or a substantial part of the
relevant Specified Hotel or Specified Additional Hotel to the extent such
closure was necessary for undertaking the applicable Remedial Action; and
	 
	 	(c)	 	any Losses suffered or incurred by the Purchaser or any member
of the Purchaser’s Group arising from any liability under or breach of
Environmental Law (or any settlement or court order in respect of such
liability or breach) in respect of which an Environmental Trigger Event under
limb (c) of that definition has occurred relating to any Contamination to the
extent in relation to any Specified Hotels only that a Remedial Action
Recommendation relating to such Contamination had not been Completed at the
date of such Environmental Trigger Event including in each case any indirect or
consequential losses to the extent suffered by any member of the Purchaser’s
Group in respect of the closure of the whole or a substantial part of the
relevant Specified Hotel or Specified Additional Hotel as a result of such
Contamination to the extent such closure was necessary;

	 	 	 	“Environmental Trigger Event” means:

27

 

	 	(a)	 	in relation to any Specified Hotels only, the agreement or
determination of Remedial Action Recommendations;
	 
	 	(b)	 	an Emergency; or
	 
	 	(c)	 	service on or the receipt by any member of the Purchaser’s
Group from any third party or any Environmental Authority of written
notification of the commencement of (or an intention or threat to commence) any
civil or criminal proceedings or suit or any formal regulatory enforcement
proceedings in each case under Environmental Law against the Purchaser or any
member of the Purchaser’s Group in respect of Contamination;

	 	 	 	“Remedial Action” means such measures as are necessary and cost-effective to remove,
remedy, restore, clean-up, mitigate, abate, contain, dispose, control, treat or
ameliorate any Contamination (and any related cost-effective and necessary measures
to assess, sample, analyse or further investigate such Contamination) that (a) would
have been required of the Sellers or any member of the Seller’s Group by any
Environmental Authority to discharge a liability under or breach of Environmental
Law in respect of such Contamination and/or to put the relevant Specified Hotel or
Specified Additional Hotel into compliance with Environmental Law if such
Environmental Authority had knowledge of such Contamination immediately before
Completion or (b) are necessary to contain, limit or abate an Emergency;
	 
	 	 	 	“Remedial Action Recommendations” means (i) any written recommendations to remediate
any Contamination made in respect of a Specified Hotel by ENVIRON as part of the
ENVIRON Investigation which have been agreed to constitute Remedial Action by the
Sellers and (ii) where the Sellers have not agreed with the recommendations made by
ENVIRON as part of the Environ Investigation, any measures which are determined to
constitute Remedial Action in relation to the subject matter of the ENVIRON
recommendation in respect of such Specified Hotel by the Environmental Expert;
	 
	 	 	 	“Specified Additional Hotels” means HI Hemel Hempstead, HI Oxford, HI Maidstone, HI
Brentwood, CP Leeds, HI Hull Marina, HI Leicester and HI South Mimms; and
	 
	 	 	 	“Specified Hotels” means CP Heathrow, HI Basingstoke, HI Glasgow City, HI Haydock,
HI London — Brent Cross, HI Hampstead, HI Stoke-on-Trent, HI Gatwick Airport, and HI
Chester.
	 
	 	9.6.2	 	Environmental Indemnity

	 	(i)	 	Subject to the other provisions of this Agreement, the Sellers
shall indemnify and keep indemnified the Purchaser (for itself and as agent for
each member of the Purchaser’s Group) from and against any Environmental Losses
PROVIDED THAT the Sellers shall not be liable in respect of any claim under
this indemnity unless an Environmental Trigger Event has occurred with respect
to the subject matter of that claim, and in such an event the Sellers shall
only be obliged to make any payment under this indemnity when and to the extent
the Purchaser or the relevant member of the Purchaser’s Group has actually paid
out an amount equal to such Environmental Losses.

28

 

	 	(ii)	 	Subject to sub clause 9.6.2(i), the Sellers shall pay the
Purchaser in cleared funds any amount payable pursuant to this indemnity on or
before the date falling 10 Business Days after the amount of Environmental
Losses has been finally agreed or determined in accordance with this indemnity.

	 	9.6.3	 	Contribution payable by the Purchaser
	 
	 	 	 	The Purchasers shall duly and punctually pay, satisfy, and discharge and shall
indemnify the Sellers in respect of the first £50,000 of the aggregate of (i) any
expenditure on Remedial Action Recommendations in relation to the Specified Hotels
agreed or determined in accordance with this indemnity, whether such Remedial Action
Recommendation is implemented by any member of the Purchaser Group or by any of the
Sellers and (ii) any Environmental Losses. Where the amount of such expenditure and
Environmental Losses exceeds in the aggregate £50,000 (including interest), but is
no more than £100,000, such amount shall be borne in its entirety by the Purchaser
who shall duly and punctually pay, satisfy, and discharge and shall indemnify the
Sellers in respect thereof. If the amount of such expenditure and Environmental
Losses exceeds in the aggregate £100,000 the Sellers shall be liable for any amount
in excess of the first £50,000 thereof.
	 
	 	9.6.4	 	Limitations on the Environmental Indemnity

	 	(i)	 	Time Limits
	 
	 	 	 	The Sellers shall not be liable under this indemnity in respect of any claim
under sub clause 9.6.2:

	 	(I)	 	where it relates to a Specified
Hotel unless a Remedial Action Recommendation relating directly
to the subject matter of the claim is agreed or determined in
accordance with this indemnity in respect of the Specified Hotel;
	 
	 	(II)	 	where it relates to a Specified
Hotel for any new claim relating directly to the subject matter
of a Remedial Action Recommendation unless the Environmental
Trigger Event relating to such claim occurs before the relevant
Remedial Action Recommendation was Completed;
	 
	 	(III)	 	where it relates to a Specified
Hotel for the failure to Complete any Remedial Action
Recommendation as a direct result of the acts or omissions of the
Purchaser or any member of the Purchaser’s Group or for any new
claim relating directly to the subject matter of such a Remedial
Action Recommendation to the extent such new claim occurred
before the relevant Remedial Action Recommendation was Completed
and the failure to Complete such Remedial Action Recommendation
was directly attributable to the acts or omissions of the
Purchaser or any member of the Purchaser’s Group; or
	 
	 	(IV)	 	in respect of claims relating to
Specified Hotels or Specified Additional Hotels in relation to
which the applicable

29

 

	 	 	 	Environmental Trigger Event falls under limits (b) or limits
(c) of this definition, unless written notice of such claim is
given by the Purchaser to the Sellers setting out reasonable
details (including an estimate of the amount of the claim and
the Environmental Trigger Event relied upon) prior to the
fifth anniversary of Completion.

	 	(ii)	 	Other limits
	 
	 	 	 	The Sellers shall not be liable in relation to any claim under sub clause
9.6.2 to the extent that the claim or the Environmental Losses result from
or would not have occurred but for, or have been increased as a result of:

	 	(a)	 	any construction, development or demolition
works at any Specified Hotel or Specified Additional Hotel (or part
thereof) after Completion;
	 
	 	(b)	 	the disclosure of information (or the
authorisation of such disclosure) by the Purchaser or any member of the
Purchaser’s Group to any Environmental Authority or any third parties
without the prior written consent of the Sellers (such consent not to
be unreasonably withheld or delayed) except where such disclosure is
required under Environmental Law or is required under any other law or
under court order or under any finance agreement entered into for the
purpose of financing this transaction;
	 
	 	(c)	 	the undertaking, authorising, initiation or
procuring of any intrusive investigations at or in respect of any of
the Specified Hotels or Specified Additional Hotels by the Purchaser or
any member of the Purchaser’s Group without the prior written consent
of the Sellers (such consent not to be unreasonably withheld or
delayed), except in the case of Specified Hotels where such
investigations are the ENVIRON Investigations or are part of the
Remedial Action Recommendations or in the case of Specified Hotels or
Specified Additional Hotels where such investigations are required by
Environmental Law or court order;
	 
	 	(d)	 	if the Purchaser or any member of the
Purchaser’s Group is the Conduct Party,

	 	(i)	 	the failure of the Purchaser or such
member of the Purchaser’s Group to implement the Remedial Action
Recommendations as soon as reasonably practicable and in
accordance with sub clause 9.6.5;
	 
	 	(ii)	 	the Purchaser or any member of the
Purchaser’s Group undertaking or procuring works which exceed
Remedial Action standards or criteria applicable in the
jurisdiction at Completion;

	 	(e)	 	if the Sellers are the Conduct Party, the
failure of the Purchaser or the applicable member of the Purchaser’s
Group to comply with their obligations under sub clause 9.6.5.

	 	9.6.5	 	Remedial Action

30

 

	 	(i)	 	In the case of Remedial Action in an Emergency the cost of
which is or may become the subject of a claim under sub clause 9.6.2, if it is
not reasonably practicable, having regard to the immediacy and severity of the
danger to human health and safety or to structural safety of a Specified Hotel
or Specified Additional Hotels, to comply with the procedure set out in the
rest of this sub clause 9.6.5, the Purchaser may undertake such Remedial Action
as is immediately required to limit, contain or abate the Emergency provided
that the Purchaser shall provide written notice to the Sellers of the Emergency
and the Remedial Action so undertaken as soon as reasonably practicable
thereafter and in any event within 5 Business Days and that any further
Remedial Action relating to such Emergency shall be subject to the procedure
set out in the rest of this sub clause.
	 
	 	(ii)	 	The Purchaser shall as soon as practicable (and in any event
within 10 Business Days of receipt of such notification or of reaching such
recommendation) notify the Sellers of any recommendations made by ENVIRON as
part of the ENVIRON Investigation or any measures the Purchaser recommends to
be undertaken in an Emergency or where an Environmental Trigger Event under
limb (c) of that definition has occurred in each case providing reasonable
information thereon. To the extent the Sellers agree the recommendations should
be implemented they shall notify the Purchaser in writing as soon as reasonably
practicable and in any event within 15 Business Days of receipt of the
Purchaser’s notice of their agreement and the parties shall act in good faith
to agree a detailed scope of works for such Remedial Action within 10 Business
Days of the Sellers’ notice.
	 
	 	(iii)	 	To the extent that the Sellers dispute any recommendations
made by ENVIRON as part of the ENVIRON Investigation or any measures the
Purchaser recommends to be undertaken in an Emergency or where an Environmental
Trigger Event under limb (c) of that definition has occurred., the Sellers
shall notify the Purchaser in writing within 15 Business Days of the
Purchaser’s notice of such disagreement and either party shall be entitled to
refer the matter to the Environmental Expert for expert determination pursuant
to sub clause 9.6.6.
	 
	 	(iv)	 	Where a Remedial Action Recommendation has been agreed or
determined in relation to a Specified Hotel, or for Specified Hotels and
Specified Additional Hotels, where Remedial Action relating to an Emergency
which falls outside sub clause 9.6.5(i) above, or where an Environmental
Trigger Event under limb (c) of that definition has occurred has been agreed or
determined, the Sellers shall have conduct of any Remedial Action arising
therefrom unless (i) they notify the Purchaser in writing within 7 Business
Days of such agreement or determination that they elect not to have such
conduct or (ii) the Purchaser is unable to procure the necessary consent for
them to do so pursuant to the terms of any lease under which such Specified
Hotel or Specified Additional Hotels may be held. The Purchaser shall give and
shall procure that any member of the Purchaser’s Group, subject always to the
terms of any lease under which such Specified Hotel or Specified Additional
Hotels may be held, gives the Sellers and their advisers all such access to any
Specified Hotel

31

 

	 	 	 	or Specified Additional Hotels and all such co-operation, information and
assistance as is reasonably necessary to permit the Sellers to discharge
their obligations as Conduct Party.
	 
	 	(v)	 	If the Sellers elect not to or cannot have (as a result of
failure to procure the necessary consent under the terms of any applicable
lease) conduct of such Remedial Action, the Purchaser shall have conduct
thereof. The party or parties with conduct of such Remedial Action is hereafter
referred to as the “Conduct Party”, and the party or parties without conduct
shall be referred to as the “Other Party”.
	 
	 	(vi)	 	The Conduct Party shall carry out such Remedial Action in such
a manner as to cause as little interference, disturbance or inconvenience as is
reasonably practicable to the business carried on at the relevant Specified
Hotel or Specified Additional Hotels and shall work with the Other Party or any
member of the Other Party’s group to minimise any such interference,
disturbance or inconvenience and where possible to coordinate such Remedial
Action with any planned maintenance programme at the relevant Specified Hotel
or Specified Additional Hotels.
	 
	 	(vii)	 	The Conduct Party shall use its reasonable efforts to procure
that the Other Party may attend and participate in any material discussions
concerning the Remedial Action. The Conduct Party shall use its reasonable
efforts to procure that the Other Party receives and has reasonable opportunity
to comment upon any change to the scope of works or the terms of reference for
the Remedial Action and the appointment of and contractual terms under which
any environmental consultant or contractor is to be engaged to undertake such
Remedial Action and that any such consultant or contractor is engaged on terms
such that it owes a duty of care to the Other Party.
	 
	 	(viii)	 	Subject to the rest of this sub clause 9.6.5 the Conduct Party shall use its
reasonable endeavours to procure that any Remedial Action agreed or determined
to be required is implemented:

	 	(a)	 	at its cost save as otherwise provided under
clause 9.6.3;
	 
	 	(b)	 	as soon as reasonably practicable but having
regard to (vi) above;
	 
	 	(c)	 	by appropriately qualified and experienced
environmental consultants (or other contractors) as approved by the
Other Party (such approval not to be unreasonably withheld or delayed);
	 
	 	(d)	 	in compliance with Environmental Law or any
court order or settlement as the case may be; and
	 
	 	(e)	 	in accordance with the scope of works and using
all reasonable endeavours to ensure that it is undertaken competently
and diligently in accordance with good environmental practice.

	 	(ix)	 	The Conduct Party shall keep the Other Party regularly informed
as to progress of the Remedial Action or of any matter which could materially
affect the scope, design or execution of any Remedial Action and shall provide
the Other Party with copies of any draft reports and investigations relevant or
relating to such Remedial Action.

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	 	(x)	 	The Conduct Party shall obtain the Other Party’s prior written
approval (not to be unreasonably withheld or delayed) to any draft reports
becoming final and to any material correspondence with any third party
(including with the principal environmental consultant or contractor engaged
upon the Remedial Action) or any Environmental Authority in relation to the
Remedial Action and shall not make any admission of liability or any settlement
or compromise in relation to any such Remedial Action with any third party or
any Environmental Authority without the Other Party’s prior written consent
(not to be unreasonably withheld or delayed).
	 
	 	(xi)	 	Upon completion of any Remedial Action undertaken pursuant to a
Remedial Action Recommendation, the Conduct Party shall procure that its
principal environmental consultant (or other contractor) shall supply to the
Other Party within 15 Business Days of completion of the Remedial Action a
written certificate stating that such Remedial Action has been completed
materially in accordance with the scope of works and that in its professional
opinion no further Remedial Action would have been required of the Sellers or
any member of the Seller’s Group by any Environmental Authority acting
reasonably in respect of the subject matter of the applicable Remedial Action
Recommendation in order to discharge a liability under or breach of
Environmental Law and/or to put the relevant Specified Hotel into compliance
with Environmental Law if such Environmental Authority had had knowledge
thereof immediately before Completion (“Completed”). In the event that the
applicable consultant or contractor is unwilling to give such certificate,
either party shall be entitled to refer the matter to the Environmental Expert
for expert determination as to whether the Remedial Action has been Completed.

	 	9.6.6	 	Expert Determination
	 
	 	 	 	In the event that the parties disagree as to:

	 	(i)	 	whether any Remedial Action is required in respect of the
Contamination; or
	 
	 	(ii)	 	whether any measures proposed by ENVIRON in respect of any
Specified Hotel as part of the ENVIRON Investigation constitute Remedial Action
and what measures should be undertaken as a Remedial Action Recommendation; or
	 
	 	(iii)	 	what constitutes necessary and cost effective Remedial Action
to contain, limit, or abate an Emergency; or
	 
	 	(iv)	 	what constitutes necessary and cost-effective Remedial Action
where an Environmental Trigger Event under limb (c) of that definition has
occurred; or
	 
	 	(v)	 	whether the Remedial Action undertaken in respect of any
Specified Hotel pursuant to a Remedial Action Recommendation has been
Completed,

	 	 	 	either the Sellers or the Purchaser may notify the other of its intention to refer
the issue in dispute to expert determination. The expert shall be such experienced
environmental consultant from a reputable firm of environmental consultants in the
United Kingdom as may be agreed upon by the parties. Failing agreement on the
appointment of an expert within 10 Business Days, either party may refer the

33

 

	 	 	 	matter to the President of the Law Society who shall appoint an expert environmental
consultant to determine the dispute. The decision of the expert shall be binding on
the parties and he shall act as an expert not an arbitrator and his fees and
expenses shall be borne as he shall direct.

	9.7	 	Purchaser’s and Holdco’s Warranties

	 	9.7.1	 	The Purchaser and Holdco each warrants to the Sellers that the statements
set out in Schedule 8 are true and accurate.
	 
	 	9.7.2	 	The Purchaser and Holdco each further warrants to the Sellers that the
warranties set out in Schedule 8 will be fulfilled down to, and will be true and
accurate in all respects at Completion, as if they had been repeated at Completion.

	10	 	Limitation of Sellers’ Liability
	 
	10.1	 	Time Limitation for Claims
	 
	 	 	The Sellers shall not be liable for breach of any Sellers’ Warranty or under the Tax
Deed of Covenant in respect of any claim unless a notice of the claim is given by the
Purchaser to the Sellers:

	 	10.1.1	 	in the case of any claim under the Tax Warranties or under the Tax Deed of
Covenant within six years and 6 months following Completion in accordance with the
provisions of Clause 3.5 of the Tax Deed of Covenant; and
	 
	 	10.1.2	 	in the case of any other claim save for a claim under paragraph 10 of
Schedule 7 (environment warranties), within 15 months following Completion, or
	 
	 	10.1.3	 	in the case of any claim under paragraph 10 of Schedule 7 (environment
warranties), within 18 months following Completion

	 	 	except that there shall be no time limitation for giving notice of any claim under
paragraphs 1.1 and 14 of Schedule 7.
	 
	 	 	Any claim notified by the Purchaser to the Sellers pursuant to this Clause shall specify the
matters set out in Clause 11.2.
	 
	10.2	 	Minimum Claims

	 	10.2.1	 	The Sellers shall not be liable for breach of any Sellers’ Warranty in
respect of any individual claim (or a series of claims arising from substantially
identical facts or circumstances) where the liability agreed or determined
(disregarding the provisions of this Clause 10.2) in respect of any such claim or
series of claims does not exceed £500,000.
	 
	 	10.2.2	 	Where the liability agreed or determined in respect of any such claim or
series of claims exceeds £500,000, the Sellers shall be liable for the amount of the
claim or series of claims as agreed or determined and not merely for the excess.

	10.3	 	Aggregate Minimum Claims

	 	10.3.1	 	The Sellers shall not be liable for any Sellers’ Warranty in respect of
any claim unless the aggregate amount of all claims for which the Sellers would
otherwise be liable for breach of any Sellers’ Warranty and under the Tax Deed of
Covenant (disregarding the provisions of this Clause 10.3) exceeds £10,000,000.

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	 	10.3.2	 	Where the liability agreed or determined in respect of all claims referred
to in Clause 10.3.1 exceeds £10,000,000, the Sellers shall be liable for the aggregate
amount of all claims as agreed or determined and not merely for the amount of the
excess.

	10.4	 	Maximum Liability
	 
	 	 	The aggregate liability of the Sellers in respect of all breaches of the Sellers’
Warranties shall not exceed an amount equal to (i) in the case of any claim under paragraphs
1.1 and 14 of Schedule 7, £960,000,000; and (ii) in the case of any other claim,
£250,000,000 and under the Tax Deed of Covenant shall not exceed an amount equal to
£500,000,000.
	 
	10.5	 	Provisions
	 
	 	 	The Sellers shall not be liable under this Agreement in respect of any claim if proper
allowance, provision or reserve is made in the Net Current Asset Statement or the Audited
Accounts for the matter giving rise to the claim.
	 
	10.6	 	Matters Arising Subsequent to this Agreement
	 
	 	 	The Sellers shall not be liable under this Agreement in respect of any matter, act,
omission or circumstance (or any combination thereof), including the aggravation of a matter
or circumstance and any losses arising therefrom, to the extent that the same would not have
occurred but for:

	 	10.6.1	 	Agreed matters
	 
	 	 	 	any matter or thing done or omitted to be done pursuant to and in compliance with an
express provision of this Agreement or the Tax Deed of Covenant or otherwise at the
specific request in writing or with the approval in writing of the Purchaser;
	 
	 	10.6.2	 	Acts of the Purchaser
	 
	 	 	 	any act, omission or transaction of the Purchaser or any member of the Purchaser’s
Group or any of the Group Companies, or their respective directors, officers,
employees or agents or successors in title:

	 	(i)	 	outside the ordinary course of business as now carried on or
any negligent act, omission or transaction; or any negligent default of any
such person or persons after Completion; or
	 
	 	(ii)	 	otherwise than pursuant to a legally binding commitment to
which any member of the Group is subject on or before Completion;

	 	10.6.3	 	Changes in legislation

	 	(i)	 	the passing of, or any change in, after the date of this
Agreement, any law, rule, regulation or administrative practice of any
government, governmental department, agency or regulatory body (including,
without prejudice to the generality of the foregoing, any increase in the rates
of Taxation or any imposition of Taxation or any withdrawal of relief from
Taxation not actually (or prospectively) in effect at the date of this
Agreement) other than any changes to Section 75 or Section 75A of the Pensions
Act 1995 (or, for the purposes of Clause 7.8, any changes to Sections 38 or 43
of the Pensions Act 2004) made under the Pensions Act 2004 or any regulations
promulgated thereunder; or

35

 

	 	(ii)	 	any change after the date of this Agreement of any generally
accepted interpretation or application of any legislation;

	 	10.6.4	 	Accounting and Taxation Policies
	 
	 	 	 	any change in accounting or Taxation policy, bases or practice of the Purchaser or
any of the Group Companies introduced or having effect after Completion excluding
for the avoidance of doubt the bringing of accounting periods to an end at
Completion.

	10.7	 	Insurance
	 
	 	 	The Sellers shall not be liable under this Agreement in respect of any claim to the
extent that the Losses in respect of which such claim is made are actually recovered
pursuant to a policy of insurance (net of any reasonable third party costs and expenses
incurred by the Purchaser’s Group in respect of such recovery) or would have been covered if
such policy of insurance had been maintained beyond Completion.
	 
	10.8	 	Net Financial Benefit
	 
	 	 	The Sellers shall not be liable under this Agreement in respect of any Losses or
Environmental Losses suffered by the Purchaser or any Group Company to the extent of any
corresponding Taxation savings by or net quantifiable Taxation benefit to the Purchaser or
any Group Company arising from such Losses or the facts giving rise to such Losses (for
example, without limitation, where the amount (if any) by which any Taxation for which the
Purchaser or any Group Company would otherwise have been accountable or liable to be
assessed is actually reduced or extinguished as a result of the matter giving rise to such
liability). For the purposes of this Clause 10.8, “corresponding Taxation savings” and “net
quantifiable Taxation benefit” shall not include any increase in the acquisition cost that
would be taken into account on a future disposal of an asset as a result of any payment to
which this Clause 10.8 applies.
	 
	10.9	 	Mitigation of Losses
	 
	 	 	The Purchaser shall procure that all reasonable steps are taken and all reasonable
assistance is given to avoid or mitigate any Losses or Environmental Losses which in the
absence of mitigation might give rise to a liability in respect of any claim under this
Agreement.
	 
	10.10	 	Purchaser’s Right to Recover

	 	10.10.1	 	Recovery for actual liabilities
	 
	 	 	 	The Sellers shall not be liable under this Agreement in respect of any contingent
liability unless and until such contingent liability becomes an actual liability and
is due and payable.
	 
	 	10.10.2	 	Prior to recovery from the Sellers etc.
	 
	 	 	 	If, before any Seller pays an amount in discharge of any claim under this Agreement,
the Purchaser or any Group Company recovers or is entitled to recover (whether by
payment, discount, credit, relief, insurance or otherwise) from a third party a sum
which indemnifies or compensates the Purchaser or Group Company (in whole or in
part) in respect of the loss or liability which is the subject matter of the claim,
the Purchaser shall procure that, before steps are taken to enforce a

36

 

	 	 	 	claim against the relevant Seller following notification under Clause 11 of this
Agreement, all reasonable steps are taken to enforce such recovery and any actual
recovery (less any reasonable costs incurred in obtaining such recovery) shall
reduce or satisfy, as the case may be, such claim to the extent of such recovery.
	 
	 	10.10.3	 	Following recovery from the Sellers etc.
	 
	 	 	 	If any Seller has paid an amount in discharge of any claim under this Agreement and
the Purchaser or any Group Company is entitled to recover (whether by payment,
discount, credit, relief, insurance or otherwise) from a third party a sum which
indemnifies or compensates the Purchaser or Group Company (in whole or in part) in
respect of the loss or liability which is the subject matter of the claim, the
Purchaser shall procure that all steps are taken as the relevant Seller may
reasonably require to enforce such recovery and shall, or shall procure that the
relevant Group Company shall, pay to the relevant Seller as soon as practicable
after receipt an amount equal to (i) any sum recovered from the third party less any
costs and expenses incurred in obtaining such recovery less any Taxation
attributable to the recovery after taking account of any tax relief available in
respect of any matter giving rise to the claim or if less (ii) the amount previously
paid by the relevant Seller to the Purchaser less any Taxation attributable to it.

	10.11	 	Double Claims
	 
	 	 	The Purchaser shall not be entitled to recover from the Sellers under this Agreement
more than once in respect of the same Losses or Environmental Losses suffered.
	 
	10.12	 	Fraud
	 
	 	 	None of the limitations contained in this Clause 10 shall apply to any claim which
arises or is increased, or to the extent to which it arises or is increased, as the
consequence of, or which is delayed as a result of, fraud or wilful concealment by any
Seller, any member of the Sellers’ Group or any of their respective directors, officers or
employees.
	 
	10.13	 	Interpretation
	 
	 	 	In Clauses 10.8, 10.9 and 10.11, “this Agreement” includes the Tax Deed of Covenant.
	 
	11	 	Claims
	 
	11.1	 	Notification of Potential Claims
	 
	 	 	If the Purchaser or any Group Company becomes aware of any fact, matter or circumstance
that is reasonably likely to give rise to a claim against the Sellers under this Agreement
or against SCPLC under the SCPLC Guarantee in connection with the Guaranteed Leases, the
Purchaser shall as soon as reasonably practicable and in any event within 20 Business Days
give notice in writing to the Sellers setting out such information and supplying copies of
any relevant correspondence as is available to the Purchaser or Group Company as is
reasonably necessary to enable the Sellers to assess the merits of the claim, to act to
preserve evidence and to make such provision as the Sellers may consider necessary. Failure
to give notice within such period shall not affect the rights of the Purchaser except to the
extent that any Seller is prejudiced by the failure.

37

 

	11.2	 	Notification of Claims under this Agreement
	 
	 	 	Notices of claims against the Sellers under this Agreement shall be given by the
Purchaser to the Sellers within the time limits specified in Clause 10.1 or Clause 9.6.4(i)
in respect of claims under Clause 9.6, specifying in reasonable detail the legal and factual
basis of the claim and the evidence on which the Purchaser relies and, if practicable, an
estimate of the amount of Losses which are, or are to be, the subject of the claim
(including any Losses which are contingent on the occurrence of any future event).
	 
	11.3	 	Commencement of Proceedings
	 
	 	 	Any claim notified pursuant to Clause 11.2 shall (if it has not been previously
satisfied, settled or withdrawn) be deemed to be irrevocably withdrawn six months after the
notice is given pursuant to Clause 11.2 or, in the case of any contingent liability, six
months after such contingent liability becomes an actual liability and is due and payable
unless legal proceedings in respect of it (i) have been commenced by being both issued and
served and (ii) are being and continue to be pursued with reasonable diligence.
	 
	11.4	 	Investigation by the Sellers
	 
	 	 	In connection with any matter or circumstance that may give rise to a claim against the
Sellers under this Agreement or against SCPLC under the SCPLC Guarantee in connection with
the Guaranteed Leases:

	 	11.4.1	 	the Purchaser shall allow, and shall procure that the relevant Group
Company allows, the Sellers and their financial, accounting, environmental or legal
advisers reasonable access on reasonable notice to investigate the matter or
circumstance alleged to give rise to a claim and whether and to what extent any amount
is payable in respect of such claim; and
	 
	 	11.4.2	 	the Purchaser shall disclose to the Sellers all material of which the
Purchaser is aware which relates to the claim and shall, and shall procure that any
other relevant members of the Purchaser’s Group shall, give, subject to their being
paid all reasonable costs and expenses, all such information and assistance, including
access to premises and personnel, and the right to examine and copy or photograph any
assets, accounts, documents and records, as the Sellers or their financial, accounting
or legal advisers may reasonably request. The Sellers agree to keep all such
information confidential and to use it only for the purpose of investigating and
defending the claim in question.

	11.5	 	Conduct of Third Party Claims
	 
	 	 	If the matter or circumstance that may give rise to a claim against the Sellers under
this Agreement or against SCPLC under the SCPLC Guarantee in connection with the Guaranteed
Leases is a result of or in connection with a claim by or liability to a third party then,
subject to Clause 11.5.5 and without prejudice to the rights of the insurers of the
Purchaser’s Group:

	 	11.5.1	 	subject to the Sellers indemnifying the Purchaser or other member of the
Purchaser’s Group concerned against all Losses, the Purchaser shall, or the Purchaser
shall procure that any other members of the Purchaser’s Group shall, take such action
as the Sellers may reasonably request to avoid, dispute, deny, defend, resist, appeal,
compromise or contest such claim or liability;

38

 

	 	11.5.2	 	the Sellers shall be entitled at their own expense and in their absolute
discretion, by notice in writing to the Purchaser, to take such action as they shall
deem necessary to avoid, dispute, deny, defend, resist, appeal, compromise or contest
such claim or liability (including, without limitation, making counterclaims or other
claims against third parties) in the name of and on behalf of the Purchaser or other
member of the Purchaser’s Group concerned and to have the conduct of any related
proceedings, negotiations or appeals and in so doing shall, so far as practicable,
consult with the Purchaser before taking such action;
	 
	 	11.5.3	 	the Purchaser or other member of the Purchaser’s Group concerned may not
admit, compromise, dispose of or settle such claim or liability without the written
consent of SCPLC on behalf of the Sellers; and
	 
	 	11.5.4	 	if the Sellers make any request pursuant to Clause 11.5.1 or the Purchaser
wishes to take any action to settle a claim or liability in accordance with the
provisions of Clause 11.5.5, the Purchaser shall, and the Purchaser shall procure that
any other members of the Purchaser’s Group shall, take all reasonable steps to procure
that the Sellers are provided on reasonable notice with all material correspondence and
documentation relating to the claim as the Sellers may reasonably request. The Sellers
agree to keep all such correspondence and information confidential and to use it only
for the purpose of dealing with the relevant claim.
	 
	 	11.5.5	 	If the matter or circumstance that may give rise to a claim against the
Sellers under this Agreement is a result of or in connection with a claim by or
liability to a third party the subject matter of which is fundamental to the business
of the Group and which claim or liability would affect the goodwill of the Hotels in a
material adverse way then, without prejudice to the rights of the insurers of the
Purchaser’s Group, the Purchaser shall be entitled, at its own expense and subject to
it complying with the provisions of this paragraph 11.5.5, to settle such claim or
liability with the Sellers’ prior written consent (which consent shall not be
unreasonably withheld or delayed) provided that:

	 	(i)	 	the Purchaser shall notify the Sellers of any intention to
settle such claim or liability and in so doing give the Sellers a reasonable
time (being no less than 10 Business Days) to respond to such notification, and
shall consult with the Sellers, in each case before taking any action, to
settle such claim or liability;
	 
	 	(ii)	 	if the Sellers unreasonably withhold such consent the Purchaser
shall be entitled, in its absolute discretion, to settle such claim or
liability without prejudice to its ability to claim against the Sellers under
this Agreement for any Losses it has suffered in respect of such claim or
liability; and
	 
	 	(iii)	 	if the Sellers reasonably withhold such consent and such claim
or liability is settled by or on behalf of the Purchaser, the Sellers shall not
be liable under this Agreement in respect of such claim or liability.

	11.6	 	Clauses 10.5, 10.6, 10.7, 10.10, 10.12 and 11 of this Agreement shall not apply to
Tax Warranties.

39

 

	11.7	 	This Clause 11 shall not govern the conduct of Remedial Action undertaken pursuant
to Clause 9.6.
	 
	12	 	SCPLC Guarantee
	 
	12.1	 	Holdco shall indemnify SCPLC against any Losses arising out of SCPLC’s obligations
under the SCPLC Guarantee in respect of the Indemnified Leases.
	 
	12.2	 	The indemnity in Clause 12.1 above shall expire on the earlier of (i) the expiry
of SCPLC’s obligations under the SCPLC Guarantee and (ii) the date on which all liabilities
under the Indemnified Leases are reduced to nil.
	 
	12.3	 	Subject to Clause 12.4, the indemnity in Clause 12.1 above shall be reduced to the
extent any of the Indemnified Leases cease to be vested in any member of the Purchaser’s Group
but, for the avoidance of doubt, should any Indemnified Lease re-vest in any member of the
Purchaser’s Group then the indemnity in Clause 12.1 shall be increased accordingly.
	 
	12.4	 	Holdco shall pay SCPLC a guarantee fee of £650,000 per annum for a period of five
years from the Completion Date, which fee shall be paid quarterly in advance. The first
quarterly instalment of such fee shall be paid on the Completion Date.
	 
	12.5	 	From Completion Holdco shall procure that InterContinental Hotels Limited pays all
rents reserved by and performs and observes all tenant’s covenants, conditions, agreements,
declarations and other provisions contained or referred to in or arising under any Guaranteed
Leases whether currently owned or previously owned by InterContinental Hotels Limited and, in
the event of any default by InterContinental Hotels Limited, Holdco shall procure that such
rents are paid and all other such covenants, conditions, agreements, declarations and other
such provisions and obligations are performed and observed.
	 
	12.6	 	 

	 	12.6.1	 	SCPLC hereby waives for so long as InterContinental Hotels Limited remains
a member of the Purchaser’s Group (but subject to sub clause 12.6.2) any rights of
subrogation, contribution or other rights (whether arising in law or equity) it may
have against InterContinental Hotels Limited in relation to any claim made or other
proceeding brought (before or after the date of this Agreement) against SCPLC under the
SCPLC Guarantee. This waiver is given for the benefit of the Purchaser and
InterContinental Hotels Limited.
	 
	 	12.6.2	 	The waiver set out in sub clause 12.6.1 will not terminate on any sale of
InterContinental Hotels Limited by or on behalf of the Purchaser’s Lenders or their
successors if such sale results from the enforcement by any such lender or successor of
any security over InterContinental Hotels Limited.

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	13	 	Confidentiality
	 
	13.1	 	Announcements
	 
	 	 	Pending Completion, no announcement or circular in connection with the existence or the
subject matter of this Agreement shall be made or issued by or on behalf of the Sellers or
the Purchaser without the prior written approval of the Sellers and the Purchaser. This
shall not affect any announcement or circular required by law or any regulatory body or the
rules of any recognised stock exchange on which the shares of any party or any member of the
Sellers’ Group or the Purchaser’s Group respectively are listed, but the party with an
obligation to make an announcement or issue a circular shall consult with the other party
insofar as is reasonably practicable before complying with such an obligation.
	 
	13.2	 	Confidentiality

	 	13.2.1	 	Subject to Clause 13.1 and Clause 13.2.2:

	 	(i)	 	each of the Sellers and the Purchaser shall treat as strictly
confidential and not disclose or use any information received or obtained as a
result of entering into this Agreement (or any agreement entered into pursuant
to this Agreement) which relates to:

	 	(a)	 	the provisions of this Agreement and any
agreement entered into pursuant to this Agreement; or
	 
	 	(b)	 	the negotiations relating to this Agreement
(and any such other agreements);

	 	(ii)	 	the Sellers shall treat as strictly confidential and not
disclose or use any information relating to the Group Companies following
Completion and any other information relating to the business, existence or
contents of the financial or other affairs (including future plans and targets
and the SCPLC Guarantee) of the Purchaser’s Group;
	 
	 	(iii)	 	the Purchaser shall treat as strictly confidential and not
disclose or use any information relating to the business, financial or other
affairs (including future plans and targets) of the Sellers’ Group or, prior to
Completion, the Group Companies.

	 	13.2.2	 	Clause 13.2 shall not prohibit disclosure or use of any information if and
to the extent:

	 	(i)	 	the disclosure or use is required by law, any regulatory body
or any recognised stock exchange on which the shares of any Seller or the
Purchaser are listed or any member of the Sellers’ Group or the Purchaser’s
Group respectively;
	 
	 	(ii)	 	the disclosure or use is required to vest the full benefit of
this Agreement in the Sellers or any of them or the Purchaser;
	 
	 	(iii)	 	the disclosure or use is required for the purpose of any
judicial proceedings arising out of this Agreement or any other agreement
entered into under or pursuant to this Agreement or the disclosure is made to a
Tax Authority in connection with the Tax affairs of the disclosing party;

41

 

	 	(iv)	 	the disclosure is made to professional advisers of the Sellers
or the Purchaser on terms that such professional advisers undertake to comply
with the provisions of Clause 13.2 in respect of such information as if they
were a party to this Agreement;
	 
	 	(v)	 	the disclosure is made by the Purchaser to its lenders,
shareholders or Affiliates who, in its reasonable opinion, need to know such
Confidential Information for purposes relating to the subject matter of this
Agreement provided such information disclosed is not of the sort referred to in
Clause 13.2.1(iii) and provided that such disclosure is made on terms that the
recipient undertakes to comply with the provisions of Clause 13.2.1 in respect
of such information as though they were a party to this Agreement;
	 
	 	(vi)	 	the information is or becomes publicly available (other than by
breach of the Confidentiality Agreement or of this Agreement);
	 
	 	(vii)	 	the other parties have given prior written approval for the
disclosure or use; or
	 
	 	(viii)	 	the information is independently developed after Completion,

	 	 	 	provided that, prior to disclosure or use of any information pursuant to Clause
13.2.2(i), (ii) or (iii) except in the case of disclosure to a Tax Authority, the
party concerned shall promptly notify the other parties of such requirement with a
view to providing those other parties with the opportunity to contest such
disclosure or use or otherwise to agree the timing and content of such disclosure or
use.

	14	 	Other Provisions
	 
	14.1	 	Further Assurances

	 	14.1.1	 	Each of the Sellers and the Purchaser shall, and shall use reasonable
endeavours to procure that any necessary third party shall, from time to time execute
such documents and perform such acts and things as any Seller or the Purchaser may
reasonably require to transfer the Shares to the Purchaser and to give each of them the
full benefit of this Agreement.
	 
	 	14.1.2	 	Pending registration of the Purchaser as owner of the Shares, the Sellers
shall exercise all voting and other rights in relation to such Shares in accordance
with the Purchaser’s instructions.
	 
	 	14.1.3	 	If any property, right or asset which does not form part of the business
of the Group has been transferred to the Purchaser, the Purchaser shall transfer such
property, right or asset as soon as practicable back to a member of the Sellers’ Group
nominated by the Sellers.
	 
	 	14.1.4	 	The Purchaser shall, and shall procure that the relevant Group Companies
shall, retain for a reasonable period, such reasonable period to include (for the
avoidance of doubt and without limitation) such period as is required under any
applicable Tax Statute, from Completion the books, records and documents of the Group
Companies to the extent they relate to the period prior to Completion and shall, and
shall procure that the relevant Group Companies shall, allow the Sellers reasonable
access to such books, records and documents, including the right to take copies, at the
Sellers’ expense.

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	 	14.1.5	 	The Purchaser shall assist and co-operate with the Sellers in procuring
prior to Completion that each of the Group Companies whose name contains or includes
the names Holiday Inn, InterContinental, IHG, Posthouse, Six Continents or Spirit shall
change its name so that it does not contain any such name or any name which is likely
to be confused with the same.
	 
	 	14.1.6	 	The Purchaser shall not, and shall procure that no member of the
Purchaser’s Group shall, after Completion, use in any way whatsoever any trading names
or registered or unregistered trade marks owned by or licensed to the Sellers’ Group
(including, without limitation, the names Holiday Inn, InterContinental, IHG,
Posthouse, Six Continents and Spirit) other than as permitted under the Management
Agreements.

	14.2	 	Release of Guarantees

	 	14.2.1	 	Save in relation to the guarantee referred to in Clause 12 to which the
provisions of that Clause shall apply, the Purchaser shall use reasonable endeavours to
procure by Completion or, to the extent not done by Completion, within 30 days
thereafter or, to the extent not done within such period, as soon as reasonably
practicable thereafter, the release of any member of the Sellers’ Group from any
securities, guarantees or indemnities given by or binding upon any member of the
Sellers’ Group in respect of any liability of the Group Companies. Pending such
release, the Purchaser shall indemnify the members of the Sellers’ Group against all
amounts paid by any of them pursuant to any such securities, guarantees and indemnities
in respect of such liability of the Group Companies.
	 
	 	14.2.2	 	The Sellers shall use reasonable endeavours to procure by Completion or,
to the extent not done by Completion, within 30 days thereafter, or, to the extent not
done within such period, as soon as reasonably practicable thereafter, the release of
each Group Company from any securities, guaranties or indemnities given by or binding
upon the Group Company in respect of any liability of any member of the Sellers’ Group.
Pending such release, the Sellers shall indemnify the Group Companies against all
amounts paid by any of them pursuant to any such securities, guarantees and indemnities
in respect of such liability of the Sellers.

	14.3	 	Contracts

	 	14.3.1	 	In relation to any Contract which is not listed in Schedule 10 or a
Retained Contract and is not assignable without a Third Party Consent, this Agreement
shall not be construed as an assignment or an attempted assignment and the Sellers and
the Purchaser shall each use reasonable endeavours both before and after Completion to
obtain all necessary Third Party Consents as soon as possible and shall keep each other
informed of progress in obtaining such Third Party Consents. The Sellers or the
Purchaser, as the case may be, shall deliver to the other, on Completion or, if later,
as soon as possible after receipt, any Third Party Consent and an assignment or
novation duly executed by the appropriate parties.
	 
	 	14.3.2	 	In connection with the obtaining of any Third Party Consent referred to in
Clause 14.3.1, the Purchaser or the relevant Seller, as the case may be, shall supply
to the other such information and references regarding the financial position of the
Purchaser or relevant Seller, as the case may be, as may be reasonably requested by the
other party or any relevant third party and shall enter into such undertakings

43

 

	 	 	 	or procure such guarantees in favour of any relevant third party as may be
reasonably requested in respect of any liabilities or obligations to which the
Purchaser or the relevant Seller, as the case may be, will become subject or which
the Purchaser or the relevant Seller, as the case may be, will incur on assignment.
	 
	 	14.3.3	 	In relation to the Retained Contracts, the parties agree that:

	 	(i)	 	notwithstanding the provisions of Clauses 14.3.1 and 14.3.2,
the Purchaser shall, or shall procure that the relevant member of the
Purchaser’s Group shall, at the Sellers’ request, use all reasonable endeavours
with the co-operation of the Sellers to procure the novation of the Retained
Contracts to such member of the Sellers’ Group as the Sellers identify in their
request, as soon as reasonably practicable following Completion and the
Purchaser shall provide or procure the provision of any information or
guarantees reasonably requested by the person, firm or company concerned and
the Purchaser shall, or shall procure that the relevant member of the
Purchaser’s Group shall, as soon as possible after receipt, deliver such
novation to the Sellers;
	 
	 	(ii)	 	until the benefit and burden of the relevant Retained Contract
is transferred in accordance with the provisions of Clause 14.3.3(i), the
Purchaser shall, or shall procure that the relevant member of the Purchaser’s
Group shall, to the extent it is lawfully able to do so, hold it on trust for
the Sellers or any other member of the Sellers’ Group absolutely and receive
any payment made, goods delivered or other benefit received to any member of
the Purchaser’s Group pursuant to such contract as trustee and as soon as
reasonably practicable following receipt of the same shall forward and transfer
to the relevant member of the Sellers’ Group such payment, goods or other
benefit or, where it is not lawfully able to do so, make such other
arrangements with the Sellers to provide to the relevant member of the Sellers’
Group the benefits of the Retained Contracts, including the enforcement at the
cost and for the account of the Sellers of all rights of the relevant Group
Company against any other party thereto;
	 
	 	(iii)	 	until the benefit and burden of the relevant Retained Contract
is transferred in accordance with the provisions of Clause 14.3.3(i), the
Purchaser shall, or shall procure that the relevant member of the Purchaser’s
Group shall, carry out, perform and discharge the Group Companies’ obligations
under the Retained Contracts other than any obligations of the Sellers pursuant
to sub-Clause 14.3.3(iv) and (so far as it lawfully may) do all such things as
the Sellers may reasonably require to enable due performance of the Retained
Contracts and shall indemnify and keep indemnified the Sellers against any
Losses incurred by any member of the Sellers’ Group arising from the failure by
any member of the Purchaser’s Group to carry out, perform or discharge such
obligations or do such things as the Sellers may reasonably require to enable
due performance of the Retained Contracts and against any Losses which any
member of the Sellers’ Group may suffer by reason of their taking any
reasonable action to avoid, resist or defend any Loss referred to in this
paragraph; and
	 
	 	(iv)	 	the Sellers undertake to perform, or to procure the performance
(unless prohibited by law from doing so), of all Retained Contracts in
accordance

44

 

	 	 	 	with their terms and conditions as sub-contractor of the relevant member of
the Purchaser’s Group provided that such sub-contracting is permitted under
the terms of the relevant Retained Contract and, where sub-contracting is
not permissible, the Sellers undertake to perform, or procure the
performance (unless prohibited by law from doing so), of the relevant
Retained Contract as agent of the Purchaser or the other member of the
Purchaser’s Group as appropriate in accordance with its terms and conditions
and in each case to indemnify the Purchaser against any Losses incurred by
any member of the Purchaser’s Group in respect of any failure on the part of
a member of the Sellers’ Group to perform the obligations contained in this
sub-Clause 14.3.3(iv).

	 	14.3.4	 	In relation to the Purchaser Retained Contracts, the Purchaser shall
procure that the relevant member of the Purchaser’s Group complies with the terms of
the relevant Transfer Agreement applicable to such Purchaser Retained Contracts.
	 
	 	14.3.5	 	In relation to the Split Contracts, the parties agree that:

	 	(i)	 	the Purchaser shall, or shall procure that the relevant member
of the Purchaser’s Group shall, to the extent it is lawfully able to do so, (i)
hold any payments, goods or other benefits received under the Split Contracts
to the Relevant Extent on trust for the Sellers or any other member of the
Sellers’ Group and as soon as reasonably practicable following receipt of the
same shall forward and transfer to the Sellers such payments, goods and other
benefits or, where it is not lawfully able to do so, make such other
arrangements with the Sellers to provide to the relevant member of the Sellers’
Group the benefits of the Split Contracts to the Relevant Extent, including the
enforcement at the cost and for the account of the Sellers of all rights of the
relevant Group Company against any other party thereto; and (ii) carry out or
perform its obligations under the Split Contracts and (so far as it lawfully
may) do all such things as the Sellers may reasonably require to enable due
performance by the Sellers’ Group of the Split Contracts to the Relevant Extent
and shall indemnify and keep indemnified the Sellers against any Losses
incurred by any member of the Sellers’ Group arising from the failure by any
member of the Purchaser’s Group to carry out, perform or discharge such
obligations or do such things as the Sellers may reasonably require to enable
due performance of the Split Contracts to the Relevant Extent and against any
Losses which any member of the Sellers’ Group may suffer by reason of their
taking any reasonable action to avoid, resist or defend any liability referred
to in this paragraph;
	 
	 	(ii)	 	the Sellers undertake to perform, or to procure the performance
(unless prohibited by law from doing so), to the Relevant Extent, of all Split
Contracts in accordance with their terms and conditions as sub-contractor of
the relevant member of the Purchaser’s Group provided that such sub-contracting
is permitted under the terms of the relevant Split Contract and, where
sub-contracting is not permissible, the Sellers undertake to perform, or
procure the performance (unless prohibited by law from doing so), to the
Relevant Extent, of the relevant Split Contract as agent of the Purchaser or
the other member of the Purchaser’s Group as appropriate in accordance

45

 

	 	 	 	with its terms and conditions and in each case to indemnify the Purchaser
against any Losses incurred by any member of the Purchaser’s Group in
respect of any failure on the part of a member of the Sellers’ Group to
perform the obligations contained in this sub-Clause 14.3.5(ii); and
	 
	 	(iii)	 	if the Sellers so request, the Purchaser shall take such
action, or procure that such action is taken, as is reasonably necessary to
agree an arrangement with the counterparty or counterparties to the relevant
Split Contract whereby the Split Contract is terminated and replaced by two or
more contracts (including one with the Purchaser and one with any member of the
Sellers’ Group) and provided that, so far as the terms of any contract to be
entered into by the Purchaser or other member of the Purchaser’s Group or the
Sellers or any other member of the Sellers’ Group is concerned, such terms
shall be no worse than the equivalent terms contained in the relevant Split
Contract, reflecting the relevant requirements of the Sellers and the
Purchaser.

	 	14.3.6	 	In relation to the Sellers’ Group Contracts, the parties agree that:

	 	(i)	 	the Sellers shall, or shall procure that relevant member of the
Sellers’ Group shall, to the extent they are lawfully able to do so, (i) hold
any payments, goods or other benefits received under the Sellers’ Group
Contracts to the Relevant Extent on trust for the relevant member of the
Purchaser’s Group and as soon as reasonably practicable following receipt of
the same shall forward and transfer to the Purchaser such payments, goods and
other benefits or, where it is not lawfully able to do so, make such other
arrangements with the Purchaser to provide to the relevant member of the
Purchaser’s Group the benefits of the Sellers’ Group Contracts to the Relevant
Extent, including the enforcement at the cost and for the account of the
Purchaser of all rights of the relevant member of the Sellers’ Group against
any other party thereto; and (ii) carry out or perform its obligations (unless
prohibited by law from doing so), of all Sellers’ Group Contracts and (so far
as it lawfully may) do all such things as the Purchaser may reasonably require
to enable due performance by the Purchaser’s Group of the Sellers’ Group
Contracts to the Relevant Extent and shall indemnify and keep indemnified the
Purchaser against any Losses incurred by any member of the Purchaser’s Group
arising from the failure by any member of the Sellers’ Group to carry out,
perform or discharge such obligations or do such things as the Purchaser may
reasonably require to enable due performance of the Sellers’ Group Contracts to
the Relevant Extent and against any Losses which any member of the Purchaser’s
Group may suffer by reason of their taking any reasonable action to avoid,
resist or defend any Loss referred to in this paragraph;
	 
	 	(ii)	 	the Purchaser undertakes to perform, or to procure the
performance (unless prohibited by law from doing so), to the Relevant Extent,
of all the Sellers’ Group Contracts in accordance with their terms and
conditions as sub-contractor of the relevant member of the Sellers’ Group
provided that such sub-contracting is permitted under the terms of the relevant
Sellers’ Group Contract, and where sub-contracting is not permissible, the
Purchaser undertakes to perform, or procure the performance (unless

46

 

	 	 	 	prohibited by law from doing so), to the Relevant Extent, of the relevant
Sellers’ Group Contract as agent of any Seller or other member of the
Sellers’ Group as appropriate in accordance with its terms and conditions
and in each case to indemnify the Sellers against any Losses incurred by any
member of the Sellers’ Group in respect of any failure on the part of a
member of the Purchaser’s Group to perform the obligations contained in this
sub-Clause 14.3.6(ii); and
	 
	 	(iii)	 	if the Purchaser so requests, the Sellers shall take such
action, or procure that such action is taken as is reasonably necessary to
agree an arrangement with the counterparty or counterparties to the relevant
Sellers’ Group Contract whereby the Sellers’ Group Contract is terminated and
replaced by two or more contracts (including one with the Purchaser and one
with any member of the Sellers’ Group) and provided that, so far as the terms
of any contract to be entered into by the Purchaser or any member of the
Purchaser’s Group or the Sellers or any member of the Sellers’ Group is
concerned, such terms shall be no worse than the equivalent terms contained in
the relevant Sellers’ Group Contract, reflecting the relevant requirements of
the Sellers and the Purchaser.

	 	14.3.7	 	Insurance
	 
	 	 	 	The Purchaser agrees that, following Completion, the Sellers’ Group shall not be
required to maintain any of the insurance policies maintained prior to Completion by
or on behalf of the Sellers’ Group in relation to any Group Company. If any Seller
decides to maintain any of such policies, the Purchaser shall not be entitled to
benefit from such policies and the Purchaser will put in place such insurances as it
shall require in relation thereto.

	14.4	 	Sellers’ Liability

	 	14.4.1	 	The liability of each of the Sellers under or in relation to a breach of
this Agreement shall be joint and several.
	 
	 	14.4.2	 	Any liability to the Purchaser under this Agreement may in whole or in
part be released, compounded or compromised or time or indulgence given by the
Purchaser in its absolute discretion as regards any of the Sellers under such liability
without in any way prejudicing or affecting its rights against any other or others of
the Sellers under the same or a like liability whether joint and several or otherwise.

	14.5	 	Whole Agreement

	 	14.5.1	 	This Agreement contains the whole agreement between the Sellers and the
Purchaser relating to the subject matter of this Agreement at the date of this
Agreement to the exclusion of any terms implied by law which may be excluded by
contract and supersedes any previous written or oral agreement between the Sellers and
the Purchaser in relation to the matters dealt with in this Agreement.
	 
	 	14.5.2	 	The Purchaser acknowledges that it has not been induced to enter this
Agreement by any representation, warranty or undertaking not expressly incorporated
into it and (without prejudice to the generality of the foregoing) that neither the
Sellers nor any other member of the Sellers’ Group makes any representation or warranty
as

47

 

	 	 	 	to the accuracy of the forecasts, estimates, projections, statements of intent or
statements of opinion provided to the Purchaser or its representatives or advisers
on or prior to the date of this Agreement (whether in presentations or otherwise) or
in or pursuant to the Disclosure Letter.
	 
	 	14.5.3	 	So far as is permitted by law and except in the case of fraud, each of the
Sellers and the Purchaser agrees and acknowledges that its only right and remedy in
relation to any warranty or undertaking made or given in connection with this Agreement
shall be for breach of the terms of this Agreement to the exclusion of all other rights
and remedies (including those in tort or arising under statute).
	 
	 	14.5.4	 	In Clauses 14.5.1 to 14.5.3, “this Agreement” includes the Disclosure
Letter, the Confidentiality Agreement and all documents entered into pursuant to this
Agreement.

	14.6	 	Reasonableness
	 
	 	 	Each of the Sellers and the Purchaser confirms it has received independent legal advice
relating to all the matters provided for in this Agreement, including the terms of Clause
14.5 (Whole Agreement) and agrees that the provisions of this Agreement (including the
Disclosure Letter, the Confidentiality Agreement and all documents entered into pursuant to
this Agreement) are fair and reasonable.
	 
	14.7	 	Assignment

	 	14.7.1	 	Except as otherwise expressly provided in this Agreement, neither the
Sellers nor the Purchaser may, without the prior written consent of the other, assign,
grant any security interest over, hold on trust or otherwise transfer the benefit of
the whole or any part of this Agreement nor shall the Purchaser be entitled to make any
claim against any Seller in respect of any Losses which it does not suffer in its own
capacity as beneficial owner of the Shares.
	 
	 	14.7.2	 	Except as otherwise expressly provided in this Agreement, the Sellers or
the Purchaser may, without the consent of the other, assign to a connected company the
benefit (but not the burden) of the whole or any part of this Agreement provided that:

	 	(i)	 	such assignment shall not be absolute but shall be expressed to
have effect only for so long as the assignee remains a connected company of the
party concerned;
	 
	 	(ii)	 	the assignee shall not be entitled to receive under this Clause
any greater amount than that to which the Purchaser or Sellers, as appropriate,
would have been entitled;
	 
	 	(iii)	 	an additional payment will not be required to be made to the
assignee as a result of such an assignment.

	 	 	 	For the purposes of this Clause, a “connected company” is a company which is a
subsidiary of the party concerned or which is a holding company of such party or a
subsidiary of such holding company.
	 
	 	14.7.3	 	The Purchaser may charge and/or assign the benefit of this Agreement to
any bank or financial institution or other person by way of security or otherwise for
the purposes of or in connection with the financing or refinancing (whether in whole or

48

 

	 	 	 	in part) by the Purchaser of the acquisition of the Assets provided that the Sellers
shall incur no greater liability than if any such assignment had not taken place.
Without limitation to the foregoing, any such bank, financial institution or person
(or any administrative receiver appointed by any of the foregoing or any other
person appointed to enforce any such security) may charge or assign such rights on,
for the purpose of or in connection with, any enforcement of the security under such
finance arrangements.

	14.8	 	Third Party Rights

	 	14.8.1	 	A person who is not a party to this Agreement has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce any term of, or enjoy any
benefit under, this Agreement except to the extent set out in sub clause 14.8.2.
	 
	 	14.8.2	 	Any person may enforce and rely upon Clause 12.6 to the same extent as if
it were a party.
	 
	 	14.8.3	 	This Agreement may be terminated and any term may be amended or waived
without the consent of any persons referred to in sub clause 14.8.2.

	14.9	 	Variation
	 
	 	 	No variation of this Agreement shall be effective unless in writing and signed by or on
behalf of each of the Sellers and the Purchaser.
	 
	14.10	 	Time of the Essence
	 
	 	 	Time shall be of the essence of this Agreement both as regards any dates and periods
mentioned and as regards any dates and periods which may be substituted for them in
accordance with this Agreement or by agreement in writing between the Sellers and the
Purchaser.
	 
	14.11	 	Method of Payment
	 
	 	 	Wherever in this Agreement provision is made for the payment by one party to the other,
such payment shall be effected by crediting for same day value the account specified by the
payee to the payer reasonably in advance and in sufficient detail to enable payment by
telegraphic or other electronic means to be effected on or before the due date for payment.
	 
	14.12	 	Costs

	 	14.12.1	 	The Sellers shall bear all costs incurred by them in connection with the
preparation, negotiation and entry into of this Agreement and the sale of the Assets
and any Losses as referred to in sub clause 9.5.1 of this Agreement.
	 
	 	14.12.2	 	The Purchaser shall bear all such costs incurred by it in connection with
the preparation, negotiation and entry into of this Agreement and the purchase of the
Assets.

	14.13	 	Stamp Duty, Fees and Taxes
	 
	 	 	The Purchaser shall bear the cost of all stamp duty and all registration and transfer
taxes and duties as a result of the transactions contemplated by this Agreement. The
Purchaser shall be responsible for arranging the payment of such stamp duty and all other
such fees, taxes and duties, including fulfilling any administrative or reporting obligation
imposed by

49

 

	 	 	the jurisdiction in question in connection with the payment of such taxes and duties. The
Purchaser shall indemnify the Sellers and the other members of the Sellers’ Group against
any Losses suffered by the Sellers or any other member of the Sellers’ Group as a result of
the Purchaser failing to comply with its obligations under this Clause 14.13.
	 
	14.14	 	Interest
	 
	 	 	Save as expressly provided herein, if the Sellers or the Purchaser defaults in the
payment when due of any sum payable under this Agreement, its liability shall be increased
to include interest on such sum from the date when such payment is due until the date of
actual payment (after as well as before judgment) at a rate per annum of 4 per cent above
the base rate from time to time of Barclays Bank PLC. Such interest shall accrue from day to
day.
	 
	14.15	 	Grossing-up of Indemnity Payments, VAT

	 	14.15.1	 	Where any payment is made under this Agreement pursuant to an indemnity,
compensation or reimbursement provision, credit shall be given for any tax relief
available for the recipient or Group Company in respect of the matter giving rise to
the payment and, if that sum is subject to a charge to Taxation in the hands of the
recipient (other than Taxation attributable to a payment being properly treated as an
adjustment to the consideration paid by the Purchaser for the Group), the sum payable
shall be increased to such sum as will ensure that after payment of such Taxation the
recipient shall be left with a sum equal to the sum that it would have received in the
absence of such a charge to Taxation.
	 
	 	14.15.2	 	Where any sum constituting an indemnity, compensation or reimbursement to
any party to this Agreement (the “Party”) is paid to a person other than the Party but
is treated as taxable in the hands of the Party, the payer shall promptly pay to the
Party such sum as shall reimburse the Party for all Taxation suffered by it in respect
of the payment (after giving credit for any tax relief available to the Party in
respect of the matter giving rise to the payment).
	 
	 	14.15.3	 	Where under the terms of this Agreement one party is liable to indemnify
or reimburse another party in respect of any costs, charges or expenses, the payment
shall on presentation by the relevant party to the other party of a VAT invoice include
an amount equal to any VAT thereon not otherwise recoverable by the other party,
subject to that party using all reasonable endeavours to recover such amount of VAT as
may be practicable.
	 
	 	14.15.4	 	If any payment under this Agreement constitutes the consideration for a
taxable supply for VAT purposes, then in addition to that payment the payer shall pay
against delivery of a VAT invoice any VAT due.
	 
	 	14.15.5	 	For the avoidance of doubt, for the purposes of this Clause 14.15, a tax
relief shall not include any increase in the acquisition cost that would be taken into
account on a future disposal of an asset as a result of any payment to which this
clause applies.

	14.16	 	Notices

	 	14.16.1	 	Any notice or other communication in connection with this Agreement
(each, a “Notice”) shall be:

50

 

	 	(i)	 	in writing;
	 
	 	(ii)	 	delivered by hand, fax, pre-paid first class post or courier.

	 	14.16.2	 	A Notice to any Seller shall be sent to the following address, or such
other person or address as InterContinental Hotels Group PLC on behalf of the Sellers
may notify to the Purchaser from time to time:
	 
	 	 	 	InterContinental Hotels Group PLC

67 Alma Road, Windsor, Berkshire, SL4 3HD
	 
	 	 	 	Fax: 08701 974 256
	 
	 	 	 	Attention: The Company Secretary
	 
	 	 	 	with a copy to:
	 
	 	 	 	SVP Legal and General Counsel

67 Alma Road, Windsor, Berkshire, SL4 3HD
	 
	 	 	 	Fax: 08701 971 463
	 
	 	14.16.3	 	A Notice to the Purchaser shall be sent to the following address, or such
other person or address as the Purchaser may notify to the Sellers from time to time:
	 
	 	 	 	LGR Acquisition

88 Wood Street, London EC2V 7AJ
	 
	 	 	 	LGR Holdings Limited

88 Wood Street, London EC2V 7AJ
	 
	 	14.16.4	 	A Notice shall be effective upon receipt and shall be deemed to have been received:

	 	(i)	 	60 hours after posting, if delivered by pre-paid first class
post;
	 
	 	(ii)	 	at the time of delivery, if delivered by hand or courier;
	 
	 	(iii)	 	at the time of transmission in legible form, if delivered by fax.

	14.17	 	Invalidity

	 	14.17.1	 	If any provision in this Agreement shall be held to be illegal, invalid
or unenforceable, in whole or in part, the provision shall apply with whatever deletion
or modification is necessary so that the provision is legal, valid and enforceable and
gives effect to the commercial intention of the parties.
	 
	 	14.17.2	 	To the extent it is not possible to delete or modify the provision, in
whole or in part, under Clause 14.17.1, then such provision or part of it shall, to the
extent that it is illegal, invalid or unenforceable, be deemed not to form part of this
Agreement and the legality, validity and enforceability of the remainder of this
Agreement shall, subject to any deletion or modification made under Clause 14.17.1, not
be affected.

	14.18	 	Counterparts
	 
	 	 	This Agreement may be entered into in any number of counterparts, all of which taken
together shall constitute one and the same instrument. The Sellers and the Purchaser may
enter into this Agreement by signing any such counterpart.

51

 

	14.19	 	Governing Law and Submission to Jurisdiction

	 	14.19.1	 	This Agreement shall be governed by and construed in accordance with English law.
	 
	 	14.19.2	 	Each of the Sellers and the Purchaser irrevocably agrees that the courts
of England are to have exclusive jurisdiction to settle any dispute which may arise out
of or in connection with this Agreement and that accordingly any proceedings arising
out of or in connection with this Agreement shall be brought in such courts. Each of
the Sellers and the Purchaser irrevocably submits to the jurisdiction of such courts
and waives any objection to proceedings in any such court on the ground of venue or on
the ground that proceedings have been brought in an inconvenient forum.

In witness whereof this Agreement has been duly executed.

52

 

	 	 	 
	SIGNED by

	 	M. J. FOXON
	on behalf of Six Continents PLC
	 	 
	 
	 	 
	SIGNED by

	 	M. J. FOXON
	on behalf of IHC London (Holdings) Limited
	 	 
	 
	 	 
	SIGNED by

	 	MARK NEWMAN
	on behalf of LGR Acquisition

	 	CHRIS MORRISH
	

	 	RYAN PRINCE
	 
	 	 
	SIGNED by

	 	MARK NEWMAN
	on behalf of LGR Holdings Limited

	 	CHRIS MORRISH
	

	 	RYAN PRINCE

53

 

Schedule 1

Details of Shares to be sold

	 	 	 	 	 
	 	 	 	 	(3)
	 	 	(2)	 	Consideration
	(1)	 	Number of Shares/Name of	 	Allocation
	Name of Seller	 	Company	 	£
	Six Continents PLC

	 	150,000,001 ordinary
shares of £1 each in
the capital of NAS
Cobalt No.2 Limited
	 	£112,043,659
	 

	 	121,644,721 ordinary
shares of 10 pence
each and 121,644,721
5 per cent.
non-cumulative
preference shares of
10 pence each
respectively in the
capital of Six
Continents Hotels &
Holidays Limited
	 	£27,769,000
	 

	 	120,000,001 ordinary
shares of £1 each
and 20,000
preference shares of
£1 each respectively
in the capital of
Holiday Inn Limited
	 	£105,044,000
	IHC London (Holdings) Ltd

	 	300 ordinary shares
of £1 each in the
capital of London
Forum Hotel Limited
	 	£40,924,000

54

 

Schedule 2

The Companies and the Subsidiaries

Part 1 — Particulars of the Companies

	 	 	 	 	 
	Name of Company:

	 	Holiday Inn Limited

	 
	 	 	 	 
	Registered number:

	 	04160818
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	15/02/2001, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£140,000,001 divided into:

	 
	 	 	 	 
	

	 	120,000,001 ordinary shares of £1
each

	 
	 	 	 	 
	

	 	20,000 preference shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£140,050,000 divided into:

	 
	 	 	 	 
	

	 	120,050,000 ordinary shares of £1
each

	 
	 	 	 	 
	

	 	20,000 preference shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Six Continents PLC:

	 
	 	 	 	 
	

	 	120,000,001 ordinary shares of £1
each

	 
	 	 	 	 
	

	 	20,000 preference shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

55

 

	 	 	 	 	 
	Name of Company:

	 	London Forum Hotel Limited

	 
	 	 	 	 
	Registered number:

	 	00483582
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	21/06/1950, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£300 divided into:

	 
	 	 	 	 
	

	 	300 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£40,300 divided into:

	 
	 	 	 	 
	

	 	40,300 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	IHC London (Holdings) Limited:

	 
	 	 	 	 
	

	 	300 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

56

 

	 	 	 	 	 
	Name of Company:

	 	NAS Cobalt No.2 Limited

	 
	 	 	 	 
	Registered number:

	 	04160938
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	15/02/2001, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£150,000,001 divided into:

	 
	 	 	 	 
	

	 	150,000,001 ordinary shares of £1
each

	 
	 	 	 	 
	Authorised share capital:

	 	£150,050,000: divided into

	 
	 	 	 	 
	

	 	150,050,000 ordinary shares of £1
each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Six Continents PLC:

	 
	 	 	 	 
	

	 	150,000,001 ordinary shares of £1
each

	 
	 	 	 	 
	Directors:

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

57

 

	 	 	 	 	 
	Name of Company:

	 	Six Continents Hotels & Holidays
Limited

	 
	 	 	 	 
	Registered number:

	 	00368815
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	20/08/1941, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£24,328,944.20 divided into:

	 
	 	 	 	 
	

	 	121,644,721 5 per cent.
non-cumulative preference shares
of 10p each

	 
	 	 	 	 
	

	 	121,644,721 ordinary shares of
10p each

	 
	 	 	 	 
	Authorised share capital:

	 	£25,000,000 divided into:

	 
	 	 	 	 
	

	 	125,000,000 5 per cent.
non-cumulative preference shares
of 10p each

	 
	 	 	 	 
	

	 	125,000,000 ordinary shares of
10p each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Six Continents PLC:

	 
	 	 	 	 
	

	 	121,644,721 5 per cent.
non-cumulative preference shares
of 10p each

	 
	 	 	 	 
	

	 	121,644,721 ordinary shares of
10p each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

58

 

Part 2 — Particulars of the Subsidiaries

	 	 	 	 	 
	Name of Company:

	 	CP Heathrow Limited

	 
	 	 	 	 
	Registered number:

	 	05167865
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	01/07/2004, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£20,000,000 divided into:

	 
	 	 	 	 
	

	 	20,000,000 ordinary shares of £1
each

	 
	 	 	 	 
	Authorised share capital:

	 	£35,000,100 divided into:

	 
	 	 	 	 
	

	 	35,000,100 ordinary shares of £1
each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Kensington PH Limited:

	 
	 	 	 	 
	

	 	20,000,000 ordinary shares of £1
each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

59

 

	 	 	 	 	 
	Name of Company:

	 	Centre Hotels (Cranston) Limited (dormant)

	 
	 	 	 	 
	Registered number:

	 	SC004676
	 
	 	 	 	 
	Registered office:

	 	Holiday Inn

	

	 	107 Queensferry Road

	

	 	Edinburgh EH4 3HL

	 
	 	 	 	 
	Date and place of incorporation:

	 	19/11/1900, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£5,793,030.40 divided into:

	 
	 	 	 	 
	

	 	85,440 7 per cent. cumulative preference
shares of £1 each

	 
	 	 	 	 
	

	 	57,075,904 ordinary shares of 10p each

	 
	 	 	 	 
	Authorised share capital:

	 	£6,085,440 divided into:

	 
	 	 	 	 
	

	 	85,440 7 per cent. cumulative preference
shares of £1 each

	 
	 	 	 	 
	

	 	60,000,000 ordinary shares of 10p each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	85,440 7 per cent. cumulative preference
shares of £1 each

	 
	 	 	 	 
	

	 	57,075,904 ordinary shares of 10p each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

60

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Basildon) Limited

	 
	 	 	 	 
	Registered number:

	 	04721005
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn Finance Properties Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

61

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Birmingham City) Limited

	 
	 	 	 	 
	Registered number:

	 	04720951
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

62

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Birmingham M6 J7)
Limited

	 
	 	 	 	 
	Registered number:

	 	04712826
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

63

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Brentwood) Limited

	 
	 	 	 	 
	Registered number:

	 	04712792
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

64

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Carlisle) Limited

	 
	 	 	 	 
	Registered number:

	 	04720983
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn Finance Properties Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

65

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Chester) Limited

	 
	 	 	 	 
	Registered number:

	 	04712836
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

66

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Colchester) Limited

	 
	 	 	 	 
	Registered number:

	 	04712808
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

67

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Coventry) Limited

	 
	 	 	 	 
	Registered number:

	 	04721088
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn Finance Properties Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

68

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Edinburgh) Limited

	 
	 	 	 	 
	Registered number:

	 	04721007
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

69

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Edinburgh North) Limited

	 
	 	 	 	 
	Registered number:

	 	04712766
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

70

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Farnborough) Limited

	 
	 	 	 	 
	Registered number:

	 	04712785
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

71

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn Finance Properties Limited

	 
	 	 	 	 
	Registered number:

	 	03363702
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	01/05/1997, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£9,350,001 divided into:

	 
	 	 	 	 
	

	 	9,350,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£9,500,000 divided into:

	 
	 	 	 	 
	

	 	9,500,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	NAS Cobalt No.2 Limited:

	 
	 	 	 	 
	

	 	9,350,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

72

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Guildford) Limited

	 
	 	 	 	 
	Registered number:

	 	04721041
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 shares of £1 each.

	 
	 	 	 	 
	-Registered shareholders and shares held:

	 	Holiday Inn Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Alan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

73

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Hemel Hempstead) Limited

	 
	 	 	 	 
	Registered number:

	 	04721014
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

74

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (High Wycombe) Limited

	 
	 	 	 	 
	Registered number:

	 	04721091
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn Finance Properties Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

75

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Ipswich) Limited

	 
	 	 	 	 
	Registered number:

	 	04712870
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

76

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Lancaster) Limited

	 
	 	 	 	 
	Registered number:

	 	04720994
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

77

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Leicester) Limited

	 
	 	 	 	 
	Registered number:

	 	04721079
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Leased Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

78

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (London Gatwick) Limited

	 
	 	 	 	 
	Registered number:

	 	04721762
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	03/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

79

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (London Heathrow Ariel)
Limited

	 
	 	 	 	 
	Registered number:

	 	04712802
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

80

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (London Heathrow M4 J4)
Limited

	 
	 	 	 	 
	Registered number:

	 	04721060
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

81

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (London Regents Park)
Limited

	 
	 	 	 	 
	Registered number:

	 	04720936
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn Finance Properties Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

82

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Maidenhead) Limited

	 
	 	 	 	 
	Registered number:

	 	04712759
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

83

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Milton Keynes) Limited

	 
	 	 	 	 
	Registered number:

	 	04720922
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

84

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Norwich) Limited

	 
	 	 	 	 
	Registered number:

	 	04721090
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	1 ordinary share of £1

	 
	 	 	 	 
	

	 	Leased Hotels Limited:

	 
	 	 	 	 
	

	 	100,000 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

85

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Reading) Limited

	 
	 	 	 	 
	Registered number:

	 	04721028
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,000 ordinary shares of £1 each

	 
	 	 	 	 
	

	 	InterContinental Hotels Group Limited:

	 
	 	 	 	 
	

	 	1 ordinary share of £1

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

86

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Southampton) Limited

	 
	 	 	 	 
	Registered number:

	 	04720965
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

87

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Holiday Inn (Southampton Eastleigh)
Limited

	 
	 	 	 	 
	Registered number:

	 	04721087
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:
	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn Finance Properties Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

	 
	 	 	 	 

88

 

	 	 	 	 	 
	Name of Company:

	 	Holiday Inn UK Limited (dormant)

	 
	 	 	 	 
	Registered number:

	 	04225199
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	30/05/2001, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£1 divided into:

	 
	 	 	 	 
	

	 	1 ordinary share of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£1,000 divided into:

	 
	 	 	 	 
	

	 	1,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	NAS Cobalt No.2 Limited:

	 
	 	 	 	 
	

	 	1 ordinary share of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

89

 

	 	 	 	 	 
	Name of Company:

	 	Holiday Inns Garden Court Limited (dormant)

	 
	 	 	 	 
	Registered number:

	 	02189067
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	05/11/1987, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inns (England) Limited:

	 
	 	 	 	 
	

	 	1 ordinary share of £1 each

	 
	 	 	 	 
	

	 	Six Continents Hotels & Holidays Limited:
	 
	 
	 	 	 	 
	

	 	99 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:
	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

90

 

	 	 	 	 	 
	Name of Company:

	 	HI (London Heathrow M4 J4) No.2
Limited

	 
	 	 	 	 
	Registered number:

	 	05174337
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	08/07/2004, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,000 divided into:

	 
	 	 	 	 
	

	 	100,000 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£100,100 divided into:

	 
	 	 	 	 
	

	 	100,100 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Holiday Inn (London Heathrow M4
J4) Limited:

	 
	 	 	 	 
	

	 	100,000 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

91

 

	 	 	 	 	 
	Name of Subsidiary:

	 	IHG (Brent Cross) Limited

	 
	 	 	 	 
	Registered number:

	 	04712776
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	26/03/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

92

 

	 	 	 	 	 
	Name of Subsidiary:

	 	IHG (Leeds) Limited

	 
	 	 	 	 
	Registered number:
	 	04721094
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,001 divided into:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

93

 

	 	 	 	 	 
	Name of Subsidiary:

	 	IHG (Strathclyde) Limited

	 
	 	 	 	 
	Registered number:

	 	04721093
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£50,000,000 divided into:

	 
	 	 	 	 
	

	 	50,000,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group (UK)
Limited:

	 
	 	 	 	 
	

	 	100,001 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

94

 

	 	 	 	 	 
	Name of Company:

	 	InterContinental Group Limited (dormant)

	 
	 	 	 	 
	Registered number:

	 	00872077
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	22/02/1966, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Centre Hotels (Cranston) Limited:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

95

 

	 	 	 	 	 
	Name of Company:

	 	InterContinental Holdings Limited (dormant)

	 
	 	 	 	 
	Registered number:

	 	01295183
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	21/01/1977, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	50 ‘A’ ordinary shares of £1 each

	 
	 	 	 	 
	

	 	50 ‘B’ shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	50 ‘A’ ordinary shares of £1 each

	 
	 	 	 	 
	

	 	50 ‘B’ shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Kenneth Frederick Butcher:

	 
	 	 	 	 
	

	 	1 ‘A’ ordinary share of £1

	 
	 	 	 	 
	

	 	InterContinental Hotels Group (UK) Limited:

	 
	 	 	 	 
	

	 	49 ‘A’ ordinary shares of £1 each

	 
	 	 	 	 
	

	 	InterContinental Hotels Group (UK) Limited:

	 
	 	 	 	 
	

	 	50 ‘B’ shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

96

 

	 	 	 	 	 
	Name of Subsidiary:

	 	InterContinental Hotels Limited

	 
	 	 	 	 
	Registered number:

	 	03203484
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/05/1996, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100,395,050 divided into:

	 
	 	 	 	 
	

	 	401,580,200 ordinary shares of
25p each

	 
	 	 	 	 
	Authorised share capital:

	 	£113,000,000 divided into:

	 
	 	 	 	 
	

	 	452,000,000 ordinary shares of
25p each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	NAS Cobalt No.2 Limited:

	 
	 	 	 	 
	

	 	401,580,200 ordinary shares of
25p each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

97

 

	 	 	 	 	 
	Name of Subsidiary:

	 	InterContinental Hotels Group (UK)
Limited

	 
	 	 	 	 
	Registered number:

	 	00719804
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	29/03/1962, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary £1 shares

	 
	 	 	 	 
	Authorised share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Six Continents Hotels & Holidays Limited:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

	 
	 	 	 	 

98

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Kensington PH Limited

	 
	 	 	 	 
	Registered number:

	 	04407187
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	02/04/2002, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£1 divided into:

	 
	 	 	 	 
	

	 	1 ordinary share of £1

	 
	 	 	 	 
	Authorised share capital:

	 	£100 divided into:

	 
	 	 	 	 
	

	 	100 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Limited:

	 
	 	 	 	 
	

	 	1 ordinary share of £1

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

99

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Leased Hotels Limited

	 
	 	 	 	 
	Registered number:

	 	00955200
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	30/05/1969, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£20,000,000 divided into:

	 
	 	 	 	 
	

	 	10,000 ‘A’ ordinary shares of £1 each

	 
	 	 	 	 
	

	 	10,000 ‘B’ ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£20,000,000 divided into:

	 
	 	 	 	 
	

	 	10,000 ‘A’ ordinary shares of £1 each

	 
	 	 	 	 
	

	 	10,000 ‘B’ ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	NAS Cobalt No.2 Limited:

	 
	 	 	 	 
	

	 	10,000 ‘A’ ordinary shares of £1 each

	 
	 	 	 	 
	

	 	10,000 ‘B’ ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

100

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Pendigo Hotels Limited

	 
	 	 	 	 
	Registered number:

	 	03929826
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	21/02/2000, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£6,750,002 divided into:

	 
	 	 	 	 
	

	 	6,750,002 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	£7,500,000 divided into:

	 
	 	 	 	 
	

	 	7,500,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	Six Continents Hotels & Holidays Limited:

	 
	 	 	 	 
	

	 	6,750,002 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

101

 

	 	 	 	 	 
	Name of Company:

	 	SCH (UK) Limited (dormant)

	 
	 	 	 	 
	Registered number:

	 	04635669
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	13/01/2003, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£1 divided into:

	 
	 	 	 	 
	

	 	1 ordinary share of £1

	 
	 	 	 	 
	Authorised share capital:

	 	£1,000 divided into:

	 
	 	 	 	 
	

	 	1,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	InterContinental Hotels Group
(UK) Limited:

	 
	 	 	 	 
	

	 	1 ordinary share of £1 each

	 
	 	 	 	 
	Directors:

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

102

 

	 	 	 	 	 
	Name of Subsidiary:

	 	Spirit Health and Fitness Limited

	 
	 	 	 	 
	Registered number:

	 	01510665
	 
	 	 	 	 
	Registered office:

	 	67 Alma Road

	

	 	Windsor

	

	 	Berkshire SL4 3HD

	 
	 	 	 	 
	Date and place of incorporation:

	 	04/08/1980, United Kingdom

	 
	 	 	 	 
	Issued share capital:

	 	£75,000 divided into:

	 
	 	 	 	 
	

	 	75,000 ordinary shares of £1 each

	 
	 	 	 	 
	Authorised share capital:

	 	250,000 ordinary shares of £1 each

	 
	 	 	 	 
	Registered shareholders and shares held:

	 	NAS Cobalt No.2:

	 
	 	 	 	 
	

	 	75,000 ordinary shares of £1 each

	 
	 	 	 	 
	Directors:

	 	Allan Scott McEwan

	 
	 	 	 	 
	

	 	Catherine Springett

	 
	 	 	 	 
	

	 	Nigel Peter Stocks

	 
	 	 	 	 
	

	 	Richard Thomas Winter

	 
	 	 	 	 
	Secretary:

	 	Catherine Engmann

	 
	 	 	 	 
	Accounting reference date:

	 	31/12
	 
	 	 	 	 
	Auditors:

	 	Ernst & Young LLP

103

 

Schedule 3

The Properties

(Clause 1.1)

Part 1

Certificated Properties

Property: Crowne Plaza Birmingham NEC

Reference Number: 2

All that leasehold property known as Crowne Plaza Birmingham NEC at National Exhibition Centre,
Birmingham, West Midlands registered at the Land Registry with Title Absolute under Title Number
WM722535 which is presently vested in Pendigo Hotels Limited (Company No. 3929826).

Property: Crowne Plaza London — Heathrow

Reference Number: 4

All that freehold property known as Crowne Plaza London — Heathrow at land and buildings on the
west side of Stockley Road and the north side of Cherry Lane, West Drayton registered at the Land
Registry with Title Absolute under Title Number NGL160680 which is presently vested in Kensington
PH Limited (Company No. 4407187)

Property: Holiday Inn Brentwood

Reference Number: 14

All that freehold property known as Holiday Inn Brentwood at Brook Street, Brentwood registered at
the Land Registry with Title Absolute under Title Number EX323558 which is presently vested in
Holiday Inn (Brentwood) Limited (Company No. 4712792).

Intra-Group leases:

All that leasehold property known as Holiday Inn Hotel, Brook Street, Brentwood as more
particularly described in the Lease dated 2 April 2003 made between Holiday Inn (Brentwood) Limited
(1) and Six Continents Hotels Limited (2) which is presently vested in InterContinental Hotels
Limited (Company No. 3203484).

Property: Holiday Inn Cambridge

Reference Number: 16

All that freehold property known as Holiday Inn Cambridge at Bridge Road, Impington registered at
the Land Registry with Title Absolute under Title Number CB197152 which is presently vested in
Holiday Inn Limited (Company No.4160818).

Property: Holiday Inn Edinburgh

Reference Number: 26

All and Whole that leasehold property known as Holiday Inn Edinburgh at Corstorphine Road extending
to 8.368 square yards of ground situated to the north of Corstorphine Road, Edinburgh and shown
delineated on the plan annexed to the Lease between the Royal Zoological Society of Scotland and
Trust Houses Forte Hotels Limited dated 6 and 19 July and registered in the Books of Council &
Session on 3 August 1972. Please note that the title to this property is in the process of being
registered in the Land Register for Scotland under Title Number MID59025 but the Land Certificate
for this property has not yet been received.

104

 

Intra-Group leases:

All and Whole that leasehold property known as Holiday Inn Edinburgh at Corstorphine Road, sub
leased by the Sub-Lease between Holiday Inn (Edinburgh) Limited and Intercontinental Hotels Limited
dated 27 November 2003 and registered in the Books of Council and Session on 16 March 2004. The Sub
Lease was for an initial period of one year from 7 April 2003 and is currently continuing on tacit
relocation.

Property: Holiday Inn Guildford

Reference Number: 34

All that leasehold property known as Holiday Inn Guildford, Egerton Road, Guildford, Surrey
registered at the Land Registry with Title Absolute under Title Number SY546878 which is presently
vested in Holiday Inn (Guildford) Limited (Company No. 4721041).

Intra-Group leases:

All that leasehold property known as Holiday Inn Guildford, Egerton Road, Guildford, Surrey as more
particularly described in a Lease dated 28 November 2003 made between Holiday Inn (Guildford)
Limited (1) and Holiday Inn Limited (2) which is property vested in Holiday Inn Limited (Company
No. 4160818).

Property: Holiday Inn London — Heathrow M4 J4

Reference Number: 37

All that freehold property known as Holiday Inn Heathrow Airport at Heathrow Airport, London
registered at the Land Registry with Title Absolute under Title Number NGL118697 which is presently
vested in HI (London Heathrow M4 J4) No. 2 Limited (Company No. 5174337).

Intra-Group leases:

All that leasehold property known as Holiday Inn Heathrow Airport at Heathrow Airport, London
registered at the Land Registry with Title Absolute under Title Number NGL119140 which is presently
vested in HI (London Heathrow M4 J4) No. 2 Limited (Company No. 5174337).

Property: Holiday Inn Bloomsbury

Reference Number: 47

All that leasehold property known as Holiday Inn Bloomsbury at parts of the basement, the surface
of the ground floor, the lift shaft to the basement car park, the first to the fifth floors, the
roof, the plant rooms at sixth floor level and the roofs of the plant rooms of the building known
as the Bloomsbury Centre Hotel, Coram Street, London registered at the Land Registry with Title
Absolute under Title Number NGL145048 which is presently vested in InterContinental Hotels Limited
(Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Bloomsbury at parts of the basement, the surface
of the ground floor, the lift shaft to the basement car park, the first to the fifth floors, the
roof, the plant rooms at sixth floor level and the roofs of the plant rooms of the building known
as the Bloomsbury Centre Hotel, Coram Street, London registered at the Land Registry with Title
Absolute under Title Number NGL672413 which is presently vested in Holiday Inn Finance Properties
Limited (Company No. 3363702)

All that leasehold property known as Holiday Inn Bloomsbury at parts of the basement, the surface
of the ground floor, the lift shaft to the basement car park, the first to the fifth floors, the
roof, the

105

 

plant rooms at sixth floor level and the roofs of the plant rooms of the building known as the
Bloomsbury Centre Hotel, Coram Street, London registered at the Land Registry with Title Absolute
under Title Number NGL672460 which is presently vested in InterContinental Hotels Limited. (Company
No. 3203484).

Property: Holiday Inn London — Kensington Forum

Reference Number: 50

All that freehold property known as Holiday Inn — Kensington Forum at 1 to 23 (odd numbers) Ashburn
Place, 97 to 109 (odd numbers) Cromwell Road and gardens on the east side of Ashburn Gardens
registered at the Land Registry with Title Absolute under Title Number LN226776 which is presently
vested in London Forum Hotel Limited (Company No. 483582).

Property: Holiday Inn London — Regent’s Park

Reference Number: 52

All that leasehold property known as Holiday Inn Regent’s Park at Bolsover Street, London
registered at the Land Registry with Title Absolute under Title Number NGL254774 which is presently
vested in InterContinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Regent’s Park at Bolsover Street, London
registered at the Land Registry with Title Absolute under Title Number NGL674253 which is presently
vested in Holiday Inn (London Regents Park) Limited (Company No. 4720936).

All that leasehold property known as Holiday Inn Regent’s Park at Bolsover Street, London
registered at the Land Registry with Title Absolute under Title Number NGL674326 which is presently
vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Maidenhead

Reference Number: 54

All that freehold property known as Holiday Inn at Maidenhead at Shoppenhangers Road, Maidenhead
SL6 2RA registered at the Land Registry with Title Absolute under Title Number BK49552 which is
presently vested in Holiday Inn (Maidenhead) Limited (Company No. 4712759).

Intra-Group leases:

All that leasehold property known as Holiday Inn Maidenhead at Shoppenhangers Road, Maidenhead SL6
2RA as more particularly described in the Lease dated 7 April 2003 between (1) Holiday Inn
(Maidenhead) Limited and (2) Six Continents Hotels (UK) Limited which is presently vested in
InterContinental Hotels Group (UK) Limited (Company No. 719804).

Property: Holiday Inn Milton Keynes

Reference Number: 56

All that freehold property known as Holiday Inn Milton Keynes at Saxon Gate, Milton Keynes
registered at the Land Registry with Title Absolute under Title Number BM183247 which is presently
vested in Holiday Inn (Milton Keynes) Limited (Company Number 4720922).

All that leasehold property known as the Terrace forming part of Holiday Inn Milton Keynes at Saxon
Gate, Milton Keynes registered at the Land Registry with Title Absolute under Title Number BM156838
which is presently vested in InterContinental Hotels Limited (Company No. 03203484).

106

 

All those leasehold rights over Summer Court forming part of Holiday Inn Milton Keynes at Saxon
Gate, Milton Keynes as more particularly described in a Lease of Rights dated 16 November 1989
between (1) Shell Pensions Trust Limited and (2) Trusthouse Forte (UK) Limited which is referred to
in the Property Register of Title Number BM156838 and is presently vested in InterContinental
Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Milton Keynes at Saxon Gate, Milton Keynes
registered at the Land Registry with Title Absolute under Title Number BM259862 which is presently
vested in Holiday Inn (Milton Keynes) Limited (Company Number 4720922).

All that leasehold property known as Holiday Inn Milton Keynes at Saxon Gate, Milton Keynes as more
particularly described in a Lease dated 7 April 2003 between (1) Holiday Inn (Milton Keynes)
Limited and (2) Six Continents Hotels Limited which is presently vested in InterContinental Hotels
Limited (Company Number 3203484).

107

 

Part 2

Uncertificated Properties

Property: Crowne Plaza Leeds

Reference Number: 3

All that leasehold property known as Crowne Plaza Leeds being land known as land on the south side
of Wellington Street, Leeds registered at the Land Registry with Title Absolute under Title Number
WYK410379 which is presently vested in IHG (Leeds) Limited (Company Number 4721094).

Intra-Group leases:

All that leasehold property known as Crowne Plaza Leeds being land known as land on the south side
of Wellington Street, Leeds as more particularly described in a Lease dated 7 April 2003 made
between IHG (Leeds) Limited (1) and Six Continents Hotels (UK) Limited (2) which is presently
vested in Intercontinental Hotels Group (UK) Limited (Company no. 00719804).

Property: Crowne Plaza, Manchester Airport

Reference Number: 5

All that leasehold property known as Crowne Plaza Manchester Airport at Ringway Road, Manchester
Airport, M90 3NS registered at the Land Registry with Title Absolute under Title Number LA74751
which is presently vested in InterContinental Hotels Limited (Company No. 03203484).

Property: Holiday Inn Ashford

Reference Number: 6

All that freehold property known as Holiday Inn Ashford at Canterbury Road, Ashford registered at
the Land Registry with Title Absolute under Title Number K278847 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Aylesbury

Reference Number: 7

All that freehold property known as Holiday Inn Aylesbury at Aston Clinton Road, Aylesbury
registered at the Land Registry with Title Absolute under Title Number BM254556 which is presently
vested in Holiday Inn Limited (Company No. 4160818).

Property: Holiday Inn Basildon

Reference Number: 8

All that leasehold property known as Holiday Inn Basildon at Pipps Hill Road South Basildon
registered at the Land Registry with Good Leasehold Title under Title Number EX303185 which is
presently vested in Intercontinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Basildon at Pipps Hill Road South Basildon
registered at the Land Registry with Good Leasehold Title under Title Number EX437595 which is
presently vested in Holiday Inn (Basildon) Limited (Company No. 4721005).

108

 

All that leasehold property known as Holiday Inn Basildon at Pipps Hill Road South Basildon
registered at the Land Registry with Good Leasehold Title under Title Number EX437596 which is
presently vested in Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Basingstoke

Reference Number: 9

All that freehold property known as Holiday Inn Basingstoke at Basingstoke, Hampshire registered at
the Land Registry with Title Absolute under Title Number HP409818 which is presently vested in
Holiday Inn Finance Properties Limited (Company No. 3363702)

Intra-Group leases:

All that leasehold property known as Holiday Inn Basingstoke at Basingstoke, Hampshire registered
at the Land Registry with Title Absolute under Title Number HP409820 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Bexley

Reference Number: 10

All that freehold property known as Holiday Inn Bexley at Southwold Road, Bexley DA5 1ND registered
at the Land Registry with Title Absolute under Title Number SGL103988 which is presently vested in
Holiday Inn Finance Properties Limited (Company No. 3363702).

Intra-Group leases:

All that leasehold property known as Holiday Inn Bexley at Southwold Road, Bexley DA5 1ND
registered at the Land Registry with Title Absolute under Title Number SGL539696 which is presently
vested in Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn (Birmingham City)

Reference Number: 11

All that freehold property known as Holiday Inn (Birmingham City) at the site of the former Church
of St Jude, St Judes Passage registered at the Land Registry with Title Absolute under Title Number
WK181110 which is presently vested in Holiday Inn (Birmingham City) Limited (Company No.4720951).

All that freehold property known as Holiday Inn (Birmingham City) at north side of St Judes Passage
registered at the Land Registry with Title Absolute under Title Number WM76126 which is presently
vested in Holiday Inn (Birmingham City) Limited (Company No.4720951).

All that leasehold property known as part of Albany Hotel, Queensway registered at the Land
Registry with Title Absolute under Title Number WK208751 which is presently vested in Holiday Inn
(Birmingham City) Limited (Company No. 4720951).

All that leasehold property known as Holiday Inn (Birmingham City) in St Judes Passage registered
at the Land Registry with Title Absolute under Title Number WM110046 which is presently vested in
Holiday Inn (Birmingham City) Limited (Company No. 4720951).

All that leasehold property known as Holiday Inn (Birmingham City) at land on the south side of St
Judes Passage registered at the Land Registry with Title Absolute under Title Number WK172709 which
is presently vested in Holiday Inn (Birmingham City) Limited (Company No. 4720951).

109

 

Intra-Group leases:

All that leasehold property known as Holiday Inn Hotel, Smallbrook as more particularly described
in the Lease dated 7 April 2003 made between Holiday Inn (Birmingham City) Limited (1) and Six
Continents Hotels Limited (2) which is presently vested in InterContinental Hotels Limited (Company
No. 3203484)

Property: Holiday Inn Birmingham M6 J7

Reference Number: 12

All that freehold property known as Holiday Inn Birmingham M6 J7 at Chapel Lane, Great Barr
registered at the Land Registry with Title Absolute under Title Number WM371964 which is presently
vested in Holiday Inn (Birmingham M6 J7) Limited (Company No. 4712826).

Intra-Group leases:

All that leasehold property known as Holiday Inn Birmingham M6 J7 at Chapel Lane, Great Barr as
more particularly described in the Lease dated 2 April 2003 made between Holiday Inn (Birmingham M6
J7) Limited (1) and Six Continents Hotels Limited (2) which is presently vested in InterContinental
Hotels Limited (Company No. 3203484).

Property: Holiday Inn Bolton

Reference Number: 13

All that leasehold property known as Holiday Inn Bolton at Beaumont Road, Bolton BL3 4TA registered
at the Land Registry with Title Absolute under Title Number GM876460 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Bolton at Beaumont Road, Bolton BL3 4TA registered
at the Land Registry with Title Absolute under Title Number GM543662 which is presently vested in
Holiday Inn Finance Properties Limited (Company No. 3363702).

All that leasehold property known as Holiday Inn Bolton at Beaumont Road, Bolton BL3 4TA registered
at the Land Registry with Title Absolute under Title Number GM874034 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Bristol

Reference Number: 15

All that freehold property known as Holiday Inn Bristol — Filton at Conifers, Filton Road, Hambrook
BS16 1QG registered at the Land Registry with Title Absolute under Title Number AV194979 which is
presently vested in Holiday Inn Finance Properties Limited (Company No. 3363702).

All that freehold property known as Holiday Inn Bristol — Filton at Conifers, Filton Road, Hambrook
BS16 1QG registered at the Land Registry with Title Absolute under Title Number GR229008 which is
presently vested in Intercontinental Hotels Limited (Company No. 3203484).

All that freehold property known as Holiday Inn Bristol — Filton at Conifers, Filton Road, Hambrook
BS16 1QG registered at the Land Registry with Title Absolute under Title Number AV233027 which is
presently vested in Intercontinental Hotels Limited (Company No. 3203484).

All that freehold property known as Holiday Inn Bristol — Filton at Conifers, Filton Road, Hambrook
BS16 1QG registered at the Land Registry with Title Absolute under Title Number AV194981 which is
presently vested in Intercontinental Hotels Limited (Company No. 3203484).

110

 

Intra-Group leases:

All that leasehold property known as Holiday Inn Bristol — Filton at Conifers, Filton Road,
Hambrook BS16 1QG registered at the Land Registry with Title Absolute under Title Number GR204922
which is presently vested in Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Cardiff City

Reference Number: 17

All that leasehold property known as Holiday Inn Cardiff City at Cowbridge Road East registered at
the Land Registry with Title Absolute under Title Number WA299317 the legal title to which is
presently vested in InterContinental Hotels Limited (Company No. 03203484) but the beneficial
interest is presently vested in Holiday Inn Limited (Company No. 4160818).

All that leasehold property known as Car Park at Holiday Inn Cardiff City at Castle Street
registered at the Land Registry with Title Absolute under Title Number WA971992 the legal title to
which is presently vested in InterContinental Hotels Limited (Company No. 03203484) but the
beneficial interest is presently vested in Holiday Inn Limited (Company No. 4160818).

Intra-Group leases:

All that leasehold property known as Holiday Inn Cardiff City at Cowbridge Road East registered at
the Land Registry with Title Absolute under Title Number WA553976 the legal title to which is
presently vested in Holiday Inn Finance Properties Limited (Company No. 03363702) but the
beneficial interest is presently vested in Holiday Inn Limited (Company No. 4160818).

All that leasehold property known as Holiday Inn Cardiff City at Cowbridge Road East registered at
the Land Registry with Title Absolute under Title Number WA555721 the legal title to which is
presently vested in InterContinental Hotels Limited (Company No. 03203484) but the beneficial
interest is presently vested in Holiday Inn Limited (Company No. 4160818).

Property: Holiday Inn Cardiff North

Reference Number: 18

All that leasehold property known as Holiday Inn Cardiff North at Church Road, Pentwyn, Cardiff
CF10 1XD registered at the Land Registry with Good Leasehold Title under Title Number CYM2714 which
is presently vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Carlisle

Reference Number: 19

All that leasehold property known as Holiday Inn Carlisle at Kingston Road registered at the Land
Registry with Title Absolute under Title Number CU69108 which is presently vested in
InterContinental Hotels Limited (Company No. 03203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Carlisle at Kingston Road registered at the Land
Registry with Title Absolute under Title Number CU69175 which is presently vested in Holiday Inn
(Carlisle) Limited (Company No. 04720983).

All that leasehold property known as Holiday Inn Carlisle at Kingston Road registered at the Land
Registry with Title Absolute under Title Number CU69169 which is presently vested in
InterContinental Hotels Limited (Company No. 03203484).

111

 

Property: Holiday Inn Chester South

Reference Number: 20

All that freehold property known as Holiday Inn Chester South at Wrexham Road, Ecclestone CH4 9DQ
registered at the Land Registry with Title Absolute under Title Number CH390982 which is presently
vested in Holiday Inn (Chester) Limited (Company No.4712836).

All that freehold property known as Holiday Inn Chester South at Wrexham Road, Ecclestone CH4 9DQ
registered at the Land Registry with Title Absolute under Title Number CH296907 which is presently
vested in Holiday Inn (Chester) Limited (Company No.4712836).

All that freehold property known as Holiday Inn Chester South at Wrexham Road, Ecclestone CH4 9DQ
registered at the Land Registry with Title Absolute under Title Number CH110818 which is presently
vested in Holiday Inn (Chester) Limited (Company No.4712836).

Intra-Group leases:

All that leasehold property known as Holiday Inn Chester South at Wrexham Road, Ecclestone CH4 9DQ
as more particularly described in a Lease comprising the Root of Title dated 2 April 2003 made
between Holiday Inn (Chester) Limited and Six Continents Hotels Limited and shown edged red on the
plan attached thereto which is presently vested in InterContinental Hotels Limited (Company
No.03203484).

Property: Holiday Inn Colchester

Reference Number: 21

All that freehold property known as Holiday Inn Colchester registered at the Land Registry with
Title Absolute under Title Number EX399231 which is presently vested in Holiday Inn (Colchester)
Limited (Company No. 4712808).

Intra-Group leases:

All that leasehold property known as Holiday Inn Colchester as more particularly described in a
Lease comprising the Root of Title dated 2 April 2003 made between Holiday Inn (Colchester) Limited
and Six Continents Hotels Limited and shown edged red on the plan attached thereto which is
presently vested in InterContinental Hotels Limited (Company No. 03203484).

Property: Holiday Inn Coventry

Reference Number: 22

All that freehold property known as Holiday Inn Coventry at Hinkley Road, Walsgrave, registered at
the Land Registry with Title Absolute under Title Number WK331188 which is presently vested in
Holiday Inn (Coventry) Limited (Company No. 4721088).

All that freehold property known as Holiday Inn Coventry at Hinkley Road, Walsgrave, registered at
the Land Registry with Title Absolute under Title Number WK331187 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Coventry at Hinkley Road, Walsgrave, registered at
the Land Registry with Title Absolute under Title Number WK333651 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

112

 

Property: Holiday Inn Derby/Nottingham

Reference Number: 23

All that freehold property known as Holiday Inn Derby/Nottingham at Bostock Lane, Sandiacre
registered at the Land Registry with Title Absolute under Title Number DY205335 which is presently
vested in InterContinental Hotels Limited (Company No.3203484).

Property: Holiday Inn Eastleigh

Reference Number: 25

All that leasehold property known as Holiday Inn Eastleigh at Leigh Road, Eastleigh registered at
the land Registry with Title Absolute under Title Number HP289984 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Eastleigh at Leigh Road, Eastleigh registered at
the Land Registry with Title Absolute under Title Number HP450910 which is presently vested in
Holiday Inn (Southampton Eastleigh) Limited (Company No. 4721087).

All that leasehold property known as Holiday Inn Eastleigh at Leigh Road, Eastleigh registered at
the Land Registry with Title Absolute under Title Number HP450911 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn, Edinburgh North

Reference Number: 27

All and Whole that feuhold property known as Holiday Inn, Queensferry Road, Edinburgh being the
subjects shown coloured red and blue on the plan annexed and signed as relative to Disposition by
Bass Limited in favour of Bass Limited dated 21 October and recorded GRS Midlothian 23 November
1976. Please note that these subjects are in the process of being registered in the Land Register
for Scotland under Title Number MID42893 but a Land Certificate from the Registers of Scotland is
still awaited.

The Property also enjoys a right of access over the area shown on the plan annexed to Deed of
Servitude containing Disposition by British Railways Board in favour of Cedro Investments Limited
dated 5 and registered 27 February 1971.

Intra-Group leases:

All and whole that leasehold property known as Holiday Inn, Queensferry Road, Edinburgh sub leased
by the Sub-Lease between Holiday Inn (Edinburgh North) Limited and Six Continents Hotels (UK)
Limited (now known as Intercontinental Hotels Group (UK) Limited) dated 1 April and registered in
the Books of Council and Session on 30 July 2003. The Sub Lease was for an initial period of one
year and is currently continuing on tacit relocation.

Property: Holiday Inn Fareham

Reference Number: 28

All that leasehold property known as Holiday Inn — Fareham at St Margaret’s Roundabout, Southampton
Road, Titchfield registered at the Land Registry with Title Absolute under Title Number HP438631
the legal title to which is presently vested in InterContinental Hotels Ltd (Company No. 3203484)
but the beneficial interest is presently vested in Holiday Inn Limited (Company No. 4160818).

113

 

Property: Holiday Inn, Farnborough

Reference Number: 29

All that freehold property known as Holiday Inn Hotel at Lynchford Road, Farnborough registered at
the Land Registry with Title Absolute under Title Number HP347356 which is presently vested in
Holiday Inn (Farnborough) Limited (Company No. 4712785).

All that freehold property known as 4, 6 and 8 Farnborough Road, Farnborough registered at the Land
Registry with Title Absolute under Title Number HP524145 which is presently vested in Holiday Inn
(Farnborough) Limited (Company No. 4712785).

Intra-Group leases:

All that leasehold property known as Holiday Inn Hotel, Lynchford Road, Farnborough as more
particularly described in a Lease dated 2 April 2003 made between Holiday Inn (Farnborough) Limited
(1) and Six Continents Hotels Limited (2) and which is presently vested in InterContinental Hotels
Limited (formerly known as Six Continents Hotels Limited) (Company No. 3203484).

Property: Holiday Inn Gatwick, Povey Cross Road

Reference Number: 30

All that leasehold property known as Holiday Inn Gatwick at Povey Cross Road, Gatwick, Surrey
registered at the Land Registry with Title Absolute under Title Number SY574001 the legal title to
which is presently vested in InterContinental Hotels Limited (Company No. 3203484) but the
beneficial interest is presently vested in Holiday Inn (London Gatwick) Limited (Company No.
4721762).

Intra-Group leases:

All that leasehold property known as Holiday Inn Gatwick at Povey Cross Road, Gatwick, Surrey as
more particularly described in a Lease to be made between Holiday Inn (London Gatwick) Limited (1)
and Six Continents Hotels Limited (now known as InterContinental Hotels Limited (Company No.
3203484) (2)) pursuant to an agreement for sale and leaseback dated 7 April 2003 between the same
parties.

Property: Holiday Inn Glasgow Airport

Reference Number: 31

All and Whole that leasehold property formerly known as Forte Crest Hotel and now known as Holiday
Inn Glasgow Airport registered in the Land Register for Scotland under Title Number REN71989
without exclusion of indemnity and shown outlined in red on the Title Plan annexed thereto.

Property: Holiday Inn Glasgow City

Reference Number: 32

All and Whole that leasehold property known sometime as the Forte Posthouse Hotel and now as
Holiday Inn at Bothwell Street registered in the Land Register for Scotland under Title Number
GLA123299 without exclusion of indemnity and shown outlined in red on the Title Plan annexed
thereto.

114

 

Property: Holiday Inn Gloucester

Reference Number: 33

All that leasehold property known as Holiday Inn Gloucester at Gilpin Avenue registered at the Land
Registry with Title Absolute under Title Number GR60043 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Gloucester at Gilpin Avenue registered at the Land
Registry with Title Absolute under Title Number GR131235 which is presently vested in Holiday Inn
Finance Properties Limited (Company No. 3363702).

All that leasehold property known as Holiday Inn Gloucester at Gilpin Avenue registered at the Land
Registry with Title Absolute under Title Number GR142744 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn, Haydock and land adjoining the same

Reference Number: 35

All that freehold property known as Holiday Inn Hotel, Lodge Land, Haydock registered at the Land
Registry with Title Absolute under Title Number MS368448 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

All that freehold property known as land and buildings on the east side of Lodge Lane, Haydock
registered at the Land Registry with Title Absolute under Title Number MS254554 which is presently
vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn London, Heathrow Ariel

Reference Number: 36

All that freehold property known as Holiday Inn Hotel at Bath Road, Harlington registered at the
Land Registry with Title Absolute under Title Number AGL55447 which is presently vested in Holiday
Inn (London Heathrow Ariel) Limited (Company No. 4712802).

Intra-Group leases:

All that leasehold property known as Holiday Inn Hotel at Bath Road, Harlington, London Heathrow as
more particularly described in a Lease of the Property dated 2 April 2003 made between (1) Holiday
Inn (London Heathrow Ariel) Limited and (2) Six Continents Hotels Limited which is presently vested
in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Hemel Hempstead

Reference Number: 38

All that leasehold property known as Holiday Inn Hemel Hempstead at Breakspear Way, Hemel Hempstead
registered at the Land Registry with Good Leasehold Title under Title Number HD362101 which is
presently vested in Holiday Inn (Hemel Hempstead) Limited (Company No. 4721014).

All that unregistered leasehold property known as staff accommodation at First Floor Maisonette, 89
Waterhouse Street, Hemel Hempstead as more particularly described in a Renewal Lease dated 25 March
2002 made between (1) David A Deans and (2) Posthouse Hotels Limited and shown edged green on the
plan attached thereto which is presently vested in InterContinental Hotels Limited (Company No.
3203484).

115

 

Intra-Group leases:

All that leasehold property known as Holiday Inn Hotel at Breakspear Way, Hemel Hempstead as more
particularly described in a Lease of the Property dated 28 November 2003 made between (1) Holiday
Inn (Hemel Hempstead) Limited and (2) InterContinental Hotels Limited (2) which is presently vested
in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn High Wycombe

Reference Number: 39

All that leasehold property known as Holiday Inn High Wycombe at Crest Road, Handy Cross, High
Wycombe registered at the Land Registry with Title Absolute under Title Number BM152754 which is
presently vested in InterContinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn High Wycombe at Crest Road, Handy Cross, High
Wycombe registered at the Land Registry with Title Absolute under Title Number BM161991 which is
presently vested in Holiday Inn (High Wycombe) Limited (Company No. 4721091).

All that leasehold property known as Holiday Inn High Wycombe at Crest Road, Handy Cross, High
Wycombe registered at the Land Registry with Title Absolute under Title Number BM161992 which is
presently vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Hull Marina

Reference Number: 40

All that leasehold property known as Holiday Inn Hull Marina at Castle Street, Kingston Upon Hull
registered at the Land Registry with Title Absolute under Title Number HS148908 the legal title to
which is presently vested in InterContinental Hotels Limited (Company No. 3203484) but the
beneficial interest is presently vested in Holiday Inn Limited (Company No. 4160818.

Property: Holiday Inn Ipswich

Reference Number: 41

All that freehold property known as Holiday Inn Ipswich at London Road, Sproughton, Ipswich
registered at the Land Registry with Title Absolute under Title Number SK164428 which is presently
vested in Holiday Inn (Ipswich) Limited (Company No. 4712870).

Intra-Group leases:

All that leasehold property known as Holiday Inn Ipswich at London Road, Sproughton, Ipswich as
more particularly described in a Lease of the Property dated 2 April 2003 made between (1) Holiday
Inn (Ipswich) Limited and (2) Six Continents Hotels Limited which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Lancaster

Reference Number: 42

All that freehold property known as Holiday Inn Lancaster at Caton Road, Lancaster registered at
the Land Registry with Title Absolute under Title Number LA731319 which is presently vested in
Holiday Inn (Lancaster) Ltd (Company No. 4720994).

116

 

Intra-Group leases:

All that leasehold property known as Holiday Inn Lancaster at Caton Road, Lancaster as more
particularly described in a Lease comprising the Root of Title dated 7 April 2003 made between
Holiday Inn (Lancaster) Limited (1) and Six Continents Hotels Limited (2) which is presently vested
in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Leeds-Brighouse

Reference Number: 43

All that freehold property known as Holiday Inn Leeds-Brighouse at land on the northeast side of
Wakefield Road, Brighouse registered at the Land Registry with Title Absolute under Title Number
WYK391163 which is presently vested in Holiday Inn Finance Properties Limited (Company No.
3363702).

Intra-Group leases:

All that leasehold property known as Holiday Inn Leeds-Brighouse at land on the north east side of
Wakefield Road, Brighouse registered at the Land Registry with Title Absolute under Title Number
WYK463345 which is presently vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Bradford

Reference Number: 44

All that freehold property known as Holiday Inn Bradford at North East of Leeds Road, Bramhope
registered at the Land Registry with Title Absolute under Title Number WYK361015 which is presently
vested in Intercontinental Hotels Limited (Company No. 3203484).

All that leasehold property known as Holiday Inn Bradford at Bramhope registered at the Land
Registry with Good Leasehold Title under Title Number WYK361014 which is presently vested in
Intercontinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Leicester

Reference Number: 45

All that leasehold property known as Holiday Inn Leicester at Saint Nicholas Circle, Leicester
registered at the Land Registry with Title Absolute under Title Number LT57900 which is presently
vested in Intercontinental Hotels Group (UK) Limited (Company No. 719804).

Property: Holiday Inn Leicester West

Reference Number: 46

All that freehold property known as Holiday Inn Leicester West at the junction of Narborough Road
and Braunstone Lane East registered at the Land Registry with Title Absolute under Title Number
LT123747 which is presently vested in Intercontinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Leicester West at Narborough Road Leicester
registered at the Land Registry with Title Absolute under Title Number LT61752 which is presently
vested in Holiday Inn (Leicester) Limited (Company No. 4721079).

All that leasehold property known as Holiday Inn Leicester West at Narborough Road, Leicester
registered at the Land Registry with Title Absolute under Title Number LT61753 which is presently
vested in Intercontinental Hotels Limited (Company No. 3203484).

117

 

Property: Holiday Inn, Brent Cross

Reference Number: 48

All that freehold property known as Holiday Inn, Brent Cross being land on the south side of
Tilling Road and the north side of Tempelhof Avenue, Brent Cross registered at the Land Registry
with Title Absolute under Title Number NGL695276 which is presently vested in IHG (Brent Cross)
Limited (Company No. 4712776).

Intra-Group leases:

All that leasehold property known as Holiday Inn, Brent Cross being land on the south side of
Tilling Road and the north side of Tempelhof Avenue, Brent Cross as more particularly described in
a Lease comprising the Root of Title dated 2 April 2003 made between (1) IHG (Brent Cross) Limited
and (2) Six Continents Hotels (UK) Limited which is presently vested in InterContinental Hotels
Group (UK) Limited (Company No. 719804).

Property: Holiday Inn, Hampstead

Reference Number: 49

All that leasehold property known as Holiday Inn, Hampstead at 215, Haverstock Hill, Hampstead
registered at the Land Registry with Good Leasehold Title under Title Number NGL156625 which is
presently vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Mayfair

Reference Number: 51

All that unregistered leasehold property known as Holiday Inn Mayfair at 3 Berkeley Street, London
W1 as more particularly described in a Lease comprising the Root of Title dated 20 April 2000 made
between CGU Life Assurance Limited (1) and Bass Hotels & Resorts (UK) Limited (2) which is
presently vested in InterContinental Hotels Group (UK) Limited (Company No. 719804).

Property: Holiday Inn Sutton

Reference Number: 53

All that leasehold property known as Holiday Inn Sutton at Cheam Road, Sutton registered at the
Land Registry with Title Absolute under Title Number SGL530893 which is presently vested in
InterContinental Hotels Group (UK) Limited (Company No. 00719804).

Property: Holiday Inn Maidstone

Reference Number: 55

All that freehold property known as Holiday Inn Maidstone at London Road, Wrotham Heath, Sevenoaks,
TN15 7RS registered at the Land Registry with Title Absolute under Title Number K99811 which is
presently vested in Holiday Inn Limited (Company No. 04160818).

Property: Holiday Inn Newcastle City

Reference Number: 57

All that leasehold property known as Holiday Inn Newcastle City at New Bridge Street, Newcastle
upon Tyne registered at the Land Registry with Title Absolute under Title Number TY67493 which is
presently vested in Intercontinental Hotels Limited (Company No. 03203484).

118

 

Intra-Group leases:

All that leasehold property known as Holiday Inn Newcastle City at New Bridge Street, Newcastle
upon Tyne registered at the Land Registry with Title Absolute under Title Number TY246852 which is
presently vested in Holiday Inn Finance Properties Limited (Company No. 03363702).

All that leasehold property known as Holiday Inn Newcastle City at New Bridge Street, Newcastle
upon Tyne registered at the Land Registry with Title Absolute under Title Number TY257160 which is
presently vested in Intercontinental Hotels Limited (Company No. 03203484).

Property: Holiday Inn Norwich

Reference Number: 58

All that freehold property known as Holiday Inn Norwich at Hall Road, Norwich registered at the
Land Registry with Title Absolute under Title Number NK291172 which is presently vested in Holiday
Inn (Norwich) Limited (Company No. 4721090).

Intra-Group leases:

All that leasehold property known as Holiday Inn Norwich at Hall Road, Norwich registered at the
Land Registry with Title Absolute under Title Number NK28120 which is presently vested in
InterContinental Hotels Limited (Company No. 03203484).

Property: Holiday Inn Oxford

Reference Number: 59

All that leasehold property known as Holiday Inn Oxford at Oxford (Peartree) Service Area, Oxford
registered at the Land Registry with Title Absolute under Title Number ON240389 which is presently
vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Peterborough

Reference Number: 60

All that freehold property known as Holiday Inn Peterborough at London Road, Norman Cross
registered at the Land Registry with Title Absolute under Title Numbers CB121803, CB180813 and
CB163436 which is presently vested in Holiday Inn Limited (Company No. 4160818).

Intra-Group leases:

All that leasehold property known as Holiday Inn Peterborough at London Road, Norman Cross
registered at the Land Registry with Title Absolute under Title Number CB121804 which is presently
vested in Holiday Inn Limited (Company No. 4160818).

Property: Holiday Inn Portsmouth

Reference Number: 61

All that leasehold property known as Holiday Inn Portsmouth at Pembroke Road, Pembroke Park,
Southsea registered at the Land Registry with Title Absolute under Title Number HP259590 which is
presently vested in InterContinental Hotels Limited (Company No. 03203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Portsmouth at Pembroke Road, Pembroke Park,
Southsea registered at the Land Registry with Title Absolute under Title Number HP411115 which is
presently vested in Holiday Inn Finance Properties Limited (Company No. 03363702).

119

 

All that leasehold property known as Holiday Inn Portsmouth at Pembroke Road, Pembroke Park,
Southsea registered at the Land Registry with Title Absolute under Title Number HP411114 which is
presently vested in InterContinental Hotels Limited (Company No. 03203484).

Property: Holiday Inn Reading South

Reference Number: 62

All that freehold property known as Holiday Inn Reading South at Basingstoke Road, Reading
registered at the Land Registry with Title Absolute under Title Number BK91391 which is presently
vested in Holiday Inn (Reading) Limited (Company No. 4721028).

Intra-Group leases:

All that leasehold property known as Holiday Inn Reading South at Basingstoke Road, Reading
registered at the Land Registry with Title Absolute under Title Number BK110370 which is presently
vested in Holiday Inn (Reading) Limited (Company No. 4721028).

All that leasehold property known as Holiday Inn Reading South at Basingstoke Road, Reading as more
particularly described in a Lease dated 7 April 2003 made between Holiday Inn (Reading) Limited and
Six Continents Hotels Limited which is presently vested in InterContinental Hotels Limited (Company
No. 3203484).

Property: Holiday Inn Rochester

Reference Number: 63

All that freehold property known as Holiday Inn Rochester at the west side of Maidstone Road,
Chatham registered at the Land Registry with Title Absolute under Title Number K826944 which is
presently vested in Holiday Inn Limited (Company No. 4160818).

Intra-Group leases:

All that leasehold property known as Holiday Inn Rochester at the west side of Maidstone Road,
Chatham registered at the Land Registry with Title Absolute under Title Number K689735 which is
presently vested in Holiday Inn Limited (Company No. 4160818).

Property: Holiday Inn Rugby/Northampton

Reference Number: 64

All that freehold property known as Holiday Inn Rugby at Crick, Rugby, Northamptonshire registered
at the Land Registry with Title Absolute under Title Number NN184536 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Runcorn

Reference Number: 65

All that freehold property known as Holiday Inn Runcorn at Wood Lane, Runcorn registered at the
Land Registry with Title Absolute under Title Number CH409361 which is presently vested in Holiday
Inn Limited (Company No. 04160818).

Intra-Group leases:

All that leasehold property known as Holiday Inn Runcorn at Wood Lane, Runcorn registered at the
Land Registry with Title Absolute under Title Number CH261099 which is presently vested in Holiday
Inn Limited (Company No. 04160818).

120

 

All that leasehold property known as Holiday Inn Runcorn at Wood Lane, Runcorn registered at the
Land Registry with Title Absolute under Title Number CH334502 which is presently vested in Holiday
Inn Limited (Company No. 04160818).

All that leasehold property known as Holiday Inn Runcorn at Wood Lane, Runcorn registered at the
Land Registry with Title Absolute under Title Number CH334646 which is presently vested in Holiday
Inn Limited (Company No. 04160818).

Property: Holiday Inn South Mimms

Reference Number: 66

All that freehold property known as Holiday Inn South Mimms at Wash Lane, South Mimms registered at
the Land Registry with Title Absolute under Title Number HD84061 which is presently vested in
Holiday Inn Limited (Company No. 04160818).

All that freehold property known as Holiday Inn South Mimms at Wash Lane, South Mimms registered at
the Land Registry with Title Absolute under Title Number HD314012 which is presently vested in
Holiday Inn Limited (Company No. 04160818).

Intra-Group leases:

All that leasehold property known as Holiday Inn South Mimms at Wash Lane, South Mimms registered
at the Land Registry with Title Absolute under Title Number HD274592 which is presently vested in
Holiday Inn Limited (Company No. 04160818).

Property: Holiday Inn Southampton

Reference Number: 67

All that leasehold property known as Holiday Inn Southampton at Herbert Walker Avenue, Southampton
registered at the Land Registry with Good Leasehold Title under Title Number HP187263 which is
presently vested in Holiday Inn (Southampton) Limited (Company No. 4720965).

Intra-Group leases:

All that leasehold property known as Holiday Inn Southampton at Herbert Walker Avenue, Southampton
as more particularly described in a Lease dated 7 April 2003 made between Holiday Inn (Southampton)
Limited and Six Continents Hotels Limited which is presently vested in InterContinental Hotels
Limited (Company No. 3203484).

Property: Holiday Inn Stoke on Trent

Reference Number: 68

All that freehold property known as Holiday Inn Stoke on Trent at Clayton Road, Clayton,
Newcastle-Under-Lyme registered at the Land Registry with Title Absolute under Title Number
SF225403 which is presently vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Swindon

Reference Number: 69

All that leasehold property known as Holiday Inn Swindon at Marlborough Road, Swindon as more
particularly described in a Lease comprising the Root of Title dated 2 June 1972 made between The
Mayor Aldermen and Burgesses of the Borough of Swindon (1) and Leased Hotels Limited (2) and shown
edged pink on the plan attached thereto which is presently vested in Leased Hotels Limited (Company
No. 955200).

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Intra-Group leases:

All that leasehold property known as Holiday Inn Swindon at Marlborough Road, Swindon registered at
the Land Registry with Title Absolute under Title Number WT157259 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Taunton

Reference Number: 70

All that freehold property known as Holiday Inn Taunton at the North Side of Ilminster Road,
Taunton registered at the Land Registry with Title Absolute under Title Number ST61081 which is
presently vested in Holiday Inn Finance Properties Limited (Company No. 03363702).

All that freehold property known as Holiday Inn Taunton at the North Side of Ilminster Road,
Taunton registered at the Land Registry with Title Absolute under Title Number ST57639 which is
presently vested in InterContinental Hotels Limited (Company No. 03203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Taunton at the North Side of Ilminster Road,
Taunton registered at the Land Registry with Title Absolute under Title Number ST68466 which is
presently vested in InterContinental Hotels Limited (Company No. 03203484).

Property: Holiday Inn Wakefield

Reference Number: 71

All that freehold property known as Holiday Inn Wakefield at Wakefield Road, Wakefield, West
Yorkshire registered at the Land Registry with Title Absolute under Title Number WYK93190 which is
presently vested in InterContinental Hotels Limited (Company No. 3203484).

Property: Holiday Inn Warrington

Reference Number: 72

All that freehold property known as Holiday Inn Warrington at Woolston, Warrington, Cheshire
registered at the Land Registry with Title Absolute under Title Number CH325746 which is presently
vested in InterContinental Hotels Group (UK) Limited (Company No. 719804).

Property: Holiday Inn Washington

Reference Number: 73

All that freehold property known as Holiday Inn Washington at Emerson, Washington, Sunderland
registered at the Land Registry with Title Absolute under Title Number TY271158 which is presently
vested in InterContinental Hotels Limited (Company No. 3203484).

Intra-Group leases:

All that leasehold property known as Holiday Inn Washington at Emerson, Washington, Sunderland as
more particularly described in a Lease comprising the Root of Title dated 3 March 1972 made between
Washington Development Corporation (1) and Leased Hotels Limited (2) and shown edged red on the
plan attached thereto which is presently vested in Leased Hotels Limited (Company No. 955200).

All that leasehold property known as Holiday Inn, Washington at Emerson, Washington, Sunderland
registered at the Land Registry with Title Absolute under Title Number TY218632 which is presently
vested in InterContinental Hotels Limited (Company No. 3203484).

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Property: Holiday Inn York

Reference Number: 74

All that leasehold property known as Holiday Inn York at Tadcaster Road, York registered at the
Land Registry with Title Absolute under Title Number NYK182519 which is presently vested in
InterContinental Hotels Limited (Company No. 3203484).

Property: Express by Holiday Inn Strathclyde

Reference Number: 75

All and Whole that leasehold property known as Express by Holiday Inn Strathclyde on the south west
side of Bellshill Road, Motherwell at Strathclyde Country Park, Hamilton Road, Motherwell ML1 3ED
registered in the Land Register for Scotland under Title Number LAN111552 without exclusion of
indemnity and shown outlined in red on the Title Plan annexed thereto.

Intra-Group leases:

All and Whole that leasehold property known as Express by Holiday Inn Strathclyde sub leases by the
Sub Lease by IHG (Strathclyde) Limited in favour of Intercontinental Hotels Group (UK) Limited
dated 27 November 2003 and registered 19 August 2004. The Sub Lease was for an initial period of
one year and is currently continuing on tacit relocation.

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Schedule 4

Documents in the Agreed Terms

Certificates of Title

Consolidated Financial Summary

Pro forma Deeds of Non-Disturbance for Portfolio Management Agreement, Individual Hotel Management
Agreement and Franchise Agreement

Pro forma Franchise Agreement

Pro forma Individual Hotel Management Agreement

Initial Annual Plan

Initial Capital Plan

Master Technology Agreement

Pro forma Named Assets Summary of Terms

Portfolio Management Agreement

Pre-Sale Reorganisation paper

Pro forma Purchasing Agreement

Tax Deed of Covenant

Written resignations of the directors and secretary of Group Companies

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Schedule 5

Completion Obligations

(Clause 6.2)

	1	 	Sellers’ Obligations
	 
	1.1	 	General Obligations
	 
	 	 	On Completion, the Sellers shall deliver or make available to the Purchaser the
following:

	 	1.1.1	 	evidence that each of the Sellers or the relevant member of the Sellers’
Group (as applicable) is authorised to execute the documents listed in paragraph 1.1.2
to 1.1.8 below;
	 
	 	1.1.2	 	the Portfolio Management Agreement duly executed by InterContinental Hotels
Group (Management Services) Limited;
	 
	 	1.1.3	 	Individual Hotel Management Agreements in respect of each of the 13 Hotels
listed in Schedule 1 of the Portfolio Management Agreement duly executed by
InterContinental Hotels Group (Management Services) Limited;
	 
	 	1.1.4	 	Franchise Agreements in respect of each of the 63 Hotels listed in Schedule
1 of the Portfolio Management Agreement duly executed by Six Continents Hotels, Inc.;
	 
	 	1.1.5	 	Individual Hotel Management Agreements in respect of each of the 10 Hotels
listed in Schedule 1 of the Named Assets Summary of Terms in a form reflecting such
Named Assets Summary of Terms duly executed by InterContinental Hotels Group
(Management Services) Limited;
	 
	 	1.1.6	 	duly executed Deeds of Non-Disturbance in respect of each of (i) the
Portfolio Management Agreement; (ii) the Individual Hotel Management Agreements in
respect of each of the 63 Hotels listed in Schedule 1 of the Portfolio Management
Agreements; (iii) the Individual Hotel Management Agreements in respect of each of the
10 Hotels listed in Schedule 1 of the Named Assets Summary of Terms and (iv) the
Franchise Agreements in respect of each of the 63 Hotels listed in Schedule 1 of the
Portfolio Management Agreement;
	 
	 	1.1.7	 	the Purchasing Agreement and Master Technology Agreement duly executed in
respect of each of the Hotels;
	 
	 	1.1.8	 	the Tax Deed of Covenant duly executed by the Sellers;
	 
	 	1.1.9	 	transfers of the Shares duly executed by the registered holders in favour
of the Purchaser or as it may direct accompanied by the relative share certificates (or
an express indemnity in a form satisfactory to the Purchaser in the case of any
certificate found to be missing);
	 
	 	1.1.10	 	the written resignations of each of the directors and secretary of each
Group Company from his office as a director or secretary in the Agreed Terms
to take effect on the date of Completion;
	 
	 	1.1.11	 	such waivers or consents as the Purchaser may require signed by members
of the Companies to enable the Purchaser to be registered as holder[s] of the Shares;
	 
	 	1.1.12	 	the certificates of incorporation, any certificates of incorporation on
change of name, corporate seals (if any), cheque books, statutory and other books of
each

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	 	 	 	Group Company (duly written up-to-date), the share certificates in respect of each
of the Subsidiaries and transfers of all shares in the Subsidiaries held by nominees
in favour of the Purchaser or as it may direct;

	 	1.1.13	 	(if the Purchaser so requires) irrevocable powers of attorney (in such
form as the Purchaser may reasonably require) executed by each of the holders of the
Shares in favour of the Purchaser to enable the Purchaser (pending registration of the
relevant transfers) to exercise all voting and other rights attaching to the Shares and
to appoint proxies for this purpose;
	 
	 	1.1.14	 	a certified copy of any power of attorney, under which any document to be
delivered to the Purchaser under this paragraph 1 has been executed;
	 
	 	1.1.15	 	any releases which the parties have obtained under Clause 14.2;
	 
	 	1.1.16	 	certificates of title in relation to the Certificated Properties updated,
reissued and dated as at the Completion Date to reflect matters which have occurred or
have been disclosed since the Certificates of Title but, for the avoidance of doubt, no
conveyancing searches shall be updated;
	 
	 	1.1.17	 	bank statements of all bank accounts of all Group Companies as at the date
of Completion; and
	 
	 	1.1.18	 	the original or copy title deeds and other documents relating to the
Properties as listed in the Data Room other than as set out in Schedule 4 to the
Disclosure Letter.

	1.2	 	Board Resolutions of the Group Companies
	 
	 	 	On Completion, the Sellers shall procure the passing of Board Resolutions of each Group
Company inter alia:

	 	1.2.1  	 	(if so required by the Purchaser) revoking all existing authorities to
bankers in respect of the operation of its bank accounts and giving authority in favour
of such persons as the Purchaser may nominate to operate such accounts;
	 
	 	1.2.2	 	approving the registration of the share transfers referred to in paragraph
1.1.5 of this Schedule subject only to their being duly stamped;
	 
	 	1.2.3	 	accepting the resignations referred to in paragraph 1.1.6 of this Schedule
and appointing such persons (within the maximum number permitted by the Articles of
Association) as the Purchaser may nominate as directors and secretary;
	 
	 	1.2.4	 	changing their accounting reference date to the Completion Date; and
	 
	 	1.2.5	 	changing its registered office in accordance with instructions given by the
Purchaser,

	 	 	and shall hand to the Purchaser duly certified copies of such Resolutions.
	 
	2	 	The Purchaser’s Obligations
	 
	 	 	On Completion, the Purchaser shall deliver or make available to the Sellers:
	 
	2.1	 	evidence of the due fulfilment of the condition set out in Clause 4;

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	2.2	 	evidence that the Purchaser is authorised to execute this Agreement and the other
documents listed in this paragraph 2;
	 
	2.3	 	the Portfolio Management Agreement duly executed by the Purchaser;
	 
	2.4	 	Individual Hotel Management Agreements in respect of each of the 63 Hotels listed
in Schedule 1 of the Portfolio Management Agreements duly executed by the Purchaser;
	 
	2.5	 	Individual Hotel Management Agreements in respect of each of the 10 Hotels listed
in Schedule 1 of the Named Assets Summary of Terms in a form reflecting such Named Assets
Summary of Terms duly executed by the Purchaser;
	 
	2.6	 	the Purchasing Agreement and the Master Technology Agreement duly executed in
respect of each of the Hotels;
	 
	2.7	 	The Purchaser undertakes to make all necessary filings with the Registrar of
Companies in relation to each of the matters referred to in paragraph 1 above, within seven
days of the Completion Date.

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Schedule 6

Net Current Asset Statement

(Clause 8.1)

Part 1

Definitions

For the purposes of this Schedule 6:

“Accruals” means the monetary value of all goods and services received by any Group Company before
the Completion Date which have not been paid for by that Company as at 11.00am on the Completion
Date including interest owed by the Group Companies in respect of the Inter-Group Debt Balance, any
wages, salaries, PAYE, VAT, accrued income Tax and rates, holiday pay and employer’s and employee’s
NIC accruals for the calendar month in which the Completion Date falls and any amounts in respect
of bonuses for 2004 and prior years and for the period up to Completion in respect of Relevant
Employees, which will be apportioned on a pro-rata basis;

“Accrued Income” means the monetary value of all goods and services provided by any Group Company
before the Completion Date for which revenue has not been received by that Company as at 11.00am on
the Completion Date including interest due to the Group Companies in respect of any amounts
included in calculating the Inter-Group Debt Balance;

“Appointment Notice” means a notice given by SCPLC or the Purchaser, as the case may be, to the
other pursuant to paragraph 4.2 of Part 2 of this Schedule 6, requiring that the draft Net Current
Asset Statement be referred to the Reporting Accountants;

“Cash” means the aggregate amount of cash at the Hotels and the balances in the Group Companies’
cash books;

“Current Guest Accounts” means uninvoiced accounts of guests staying at any Property as at
Completion who are booked to remain at that Property after Completion and uninvoiced or invoiced
but unpaid accounts of corporate clients in respect of guests who have stayed at any Property prior
to Completion;

“Current Guest Deposits” means advance deposits and receipts of guests who will be staying at or
using the services provided at any Property following the Completion Date and any sums credited to
corporate client accounts in respect of guests who will be staying at or using the services
provided at any Property following the Completion Date;

“Debtors” means all the book and other debts arising out of or attributable to the operations of
any Group Company as at 11.00am on the Completion Date including Accrued Income, Employee Loans,
Prepayments, rights to repayments of Tax and rates, payments for the surrender of Group Relief and
to receive payment for services rendered before Completion but not invoiced before such date which
shall include that portion of Current Guest Accounts relating to the period prior to Completion
but, for the avoidance of doubt, not including deferred tax, any amount included in calculating the
Inter-Group Debt Balance or any Inter-Group Receivables or any such book or other debts owed by a
Group Company to another Group Company;

“Deferred Income” means all payments received by the Group Companies before the Completion Date
relating to a service to be provided by that Company on or after the Completion Date including any
Current Guest Deposits and Health Club Membership Fees;

“Draft 2004 Accounts” means the draft 2004 accounts of each of the Group Companies respectively in
the Agreed Terms;

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“Employee Loans” means any loan made to an employee, consultant or officer of any Group Company or
any other person who provides services to any Group Company by any member of the Sellers’ Group,
full details of which are contained in the Disclosure Letter;

“Group Relief Schedule” means the schedule of group reliefs and amounts payable for the financial
years 2004 and 2005 respectively prepared by the Sellers and delivered with the Net Current Asset
Statement;

“Health Club Membership Fees” means all membership fees paid to the Group Companies by members of
the health club located at any Property and run by any such company which relate to the period of
membership following the Completion Date;

“Inter-Group Payables” means all indebtedness due at Completion from the Group Companies to the
Sellers’ Group (excluding any amount included in calculating Inter-Group Debt) and including any
trading debt or liabilities arising in the ordinary course owed by the Group Companies to a member
of the Sellers’ Group as at close of business on the Completion Date;

“Inter-Group Receivables” means all indebtedness due at Completion from the Sellers’ Group to the
Group Companies (excluding any amount included in calculating Inter-Group Debt) and including any
trading debt or liabilities arising in the ordinary course owed by a member of the Sellers’ Group
to the Group Companies as at the close of business on the Completion Date;

“Long-Term Liabilities” means any long-term liabilities of the Group Companies at Completion
(as determined in accordance with this Schedule 6) but excludes any deferred tax, contingent
liabilities or provisions;

“Prepayments” means all prepayments made by the Group Companies before the Completion Date which
relate to a supply to any such company of goods and/or services to be provided on or after the
Completion Date;

“Provisions” means any provision of a Group Company which is required to be made at Completion in
accordance with the policies set out in paragraph 1 of Part 3 of this Schedule and which, for the
avoidance of doubt, has not been taken account of in Net Current Assets;

“Purchaser’s Disagreement Notice” means a notice given by the Purchaser to the Sellers in the
manner set out in Clause 14.16 pursuant to paragraph 4.1 stating that the draft Net Current Asset
Statement does not comply with the provisions of this Schedule 6;

“Reporting Accountants” means KPMG or, if that firm is unable or unwilling to act in any matter
referred to them under this Agreement, a firm of Chartered Accountants to be agreed by the Sellers
and the Purchaser within five Business Days of a notice by one to the other requiring such
agreement or failing such agreement to be nominated on the application of either of them by or on
behalf of the President for the time being of the Institute of Chartered Accountants in England and
Wales;

“Sellers’ Disagreement Notice” means a notice given by SCPLC to the Purchaser in the manner set out
in Clause 14.16 pursuant to paragraph 4.2 stating its reasons for disagreement with the Purchaser’s
Disagreement Notice;

“Stock” means all stock of unconsumed foodstuffs, soft drinks, beers, wines, spirits and other
alcohol and tobacco products, bottles, cases, pallets, unused consumable items and consumable
stores, health and beauty treatment products, light equipment and accessories still listed on the
inventory, fuel, cleaning materials, stationery and maintenance supplies whether opened or unopened
and all other items which have prior to the date hereof, in the ordinary course, been regarded as
stock which are unused, owned beneficially by any Group Company and held at any

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Property at Completion excluding any items of stock which are unsaleable, unusable, spoilt or out
of date;

“Stock Statement” means the statement of the aggregate value of the Stock at each of the Hotels as
shown in the Management Accounts of each of the Hotels as at 31 January 2004, to be prepared by
SCPLC in accordance with Clause 8.1 and this Schedule;

“Trade Creditors” means all indebtedness of the Group Companies as at 11.00am on the Completion
Date including, without limitation, creditors (including members of the Sellers’ Group),
overdrafts, monies held on account, bills of exchange, Tax, obligations to make payments for the
surrender of Group Relief, Accruals, and Deferred Income but excluding, for the avoidance of doubt,
deferred tax, any amounts included in calculating the Inter-Group Debt Balance, Inter-Group
Payables and any indebtedness owed to a Group Company to another Group Company.

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Part 2

Determination and Confirmation of Net Current Assets, Long-Term Liabilities and Provisions

	1	 	Stock Statement
	 
	 	 	SCPLC shall on the Completion Date produce the Stock Statement as at 11.00am on the
Completion Date as agreed with the Purchaser.
	 
	2	 	Submission of the Net Current Asset Statement
	 
	2.1	 	Net Current Asset Statement
	 
	 	 	SCPLC shall use its reasonable endeavours to procure that, as soon as practicable
following the date on which the audited accounts for each of the Group Companies for the
financial period ending on the Completion Date have been produced but in any event no later
than 90 Business Days after the Completion Date, it prepares and delivers to the Purchaser
the draft Net Current Asset Statement for each Company and in aggregate, as at the
Completion Date:

	 	2.1.1	 	including the value of the Stock as set out in the Stock Statement
determined in accordance with this Schedule 6;
	 
	 	2.1.2	 	in accordance with the principles and methodology set out in Part 3 of this
Schedule 6;
	 
	 	2.1.3	 	in the format of the pro forma Net Current Asset Statement set out in Part
4 of this Schedule 6;
	 
	 	2.1.4	 	including the Group Relief Schedule; and
	 
	 	2.1.5	 	including any Long-Term Liabilities and Provisions.

	3	 	Access to Information
	 
	 	 	In order to allow SCPLC to prepare, and the Purchaser to review, the Net Current Asset
Statement:
	 
	3.1	 	the Purchaser shall:

	 	3.1.1	 	keep up-to-date and make available to SCPLC and its representatives its
books and records relating to the Group Companies (with the right to take copies at
SCPLC’s expense) during normal office hours and co-operate with it with regard to the
calculation and review of the draft Net Current Asset Statement;
	 
	 	3.1.2	 	insofar as it is reasonable to do so, make available the services of the
employees of the relevant Group Companies to assist SCPLC and its representatives to
undertake the matters contemplated by this paragraph 3; and
	 
	 	3.1.3	 	provide or ensure the provision of all other information and assistance
which may reasonably be requested by SCPLC.

	3.2	 	SCPLC shall procure that after the preparation of the draft Net Current Asset
Statement, it shall give the Purchaser and its representatives access to the working papers
and files (with the right to take copies at the Purchaser’s expense) and personnel which or
who are relevant to the review of the draft Net Current Asset Statement by the Purchaser or
its

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	 	 	representatives subject to the
Purchaser providing or procuring the
provision of any hold harmless
undertaking that SCPLC’s accountants
may require.

	4	 	Preparation
	 
	4.1	 	Within 60 Business Days of receipt by the Purchaser of the draft Net Current Asset
Statement, the Purchaser may serve a Purchaser’s Disagreement Notice and attach a schedule of
those items in respect of which it disagrees with the draft Net Current Asset Statement
together with reasons for the disagreement in reasonable detail. In the absence of such
notice, the draft Net Current Asset Statement for each Company and in aggregate shall become
the Net Current Asset Statement and shall be final and binding on the parties for all
purposes.
	 
	4.2	 	If the Purchaser gives a Purchaser’s Disagreement Notice, SCPLC may serve a
Sellers’ Disagreement Notice stating its reasons for disagreement (in reasonable detail) with
the Purchaser’s Disagreement Notice within 10 Business Days of receipt by SCPLC of the
Purchaser’s Disagreement Notice. If SCPLC does not serve such a valid Sellers’ Disagreement
Notice, the draft Net Current Asset Statement for each Company and in aggregate as amended to
reflect the matters specified in the Purchaser’s Disagreement Notice shall be the Net Current
Asset Statement and shall be final and binding on the parties for all purposes. Within a
further 10 Business Days, SCPLC and the Purchaser shall attempt in good faith to reach
agreement in respect thereof and if they are unable to do so then either SCPLC or the
Purchaser may, by notice to the other, give an Appointment Notice. The Purchaser shall procure
that after the service of a Purchaser’s Disagreement Notice, it shall give SCPLC and its
accountants access to the Purchaser’s accountants’ working papers and files (with the right to
take copies at SCPLC’s expense) and personnel which or who are relevant to the review of the
Purchaser’s Disagreement Notice by SCPLC or its accountants subject to the Sellers providing
or procuring the provision of any hold harmless undertaking that the Purchaser’s accountants
may require. If an Appointment Notice is served, the Reporting Accountants shall be engaged
jointly on the terms set out in this Part 2; provided that neither SCPLC nor the Purchaser
shall unreasonably refuse its agreement to terms proposed by the Reporting Accountants or the
other party.
	 
	4.3	 	Except to the extent that the parties agree otherwise, the Reporting Accountants
shall determine their own procedure but:

	 	4.3.1	 	apart from procedural matters and as otherwise set out in this Agreement
shall determine only:

	 	(i)	 	whether any of the arguments for an alteration to the draft Net
Current Asset Statement put forward in the Sellers’ Disagreement Notice or the
Purchaser’s Disagreement Notice is correct in whole or in part; and
	 
	 	(ii)	 	if so, what alterations should be made to the draft Net Current
Asset Statement in order to correct the relevant inaccuracy in it;

	 	4.3.2	 	shall apply the accounting policies, principles, practices, terms and
conditions, methods and bases referred to in this Schedule 6;
	 
	 	4.3.3	 	shall make their determination pursuant to paragraph 4.3.1 above as soon as
is reasonably practicable;
	 
	 	4.3.4	 	the procedure of the Reporting Accountants shall:

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	 	(i)	 	give the parties a reasonable opportunity to make written and
oral representations to them;
	 
	 	(ii)	 	require that the parties supply each other with a copy of any
written representations at the same time as they are made to the Reporting
Accountants;
	 
	 	(iii)	 	permit each party to be present while oral submissions are
being made by any other party;

	 	4.3.5	 	for the avoidance of doubt, the Reporting Accountants shall only address
and resolve differences of the parties and shall not otherwise be entitled to determine
the scope of their own jurisdiction; and
	 
	 	4.3.6	 	there is no presumption that the treatment of any matter in dispute should
or should not be changed from that in the draft Net Current Asset Statement and no
objection should be made to any matter raised by the Purchaser’s Disagreement Notice on
the grounds that the matter in respect of which such notice is raised is below any
materiality level which might otherwise apply.

	4.4	 	The determination of the Reporting Accountants pursuant to paragraph 4.3.1 shall
(i) be made in writing and sent to the parties at such time as they shall determine and (ii)
unless otherwise agreed by the parties, include reasons for each relevant determination.
	 
	4.5	 	The Reporting Accountants shall act as experts and not as arbitrators and their
determination of any matter falling within their jurisdiction shall be final and binding on
the parties save in the event of manifest error (when the relevant part of their determination
shall be void and the matter shall be remitted to the Reporting Accountants for correction).
In particular, without limitation, their determination shall be deemed to be incorporated into
the draft Net Current Asset Statement for each Company and in aggregate, which, as adjusted,
shall then be final and binding on the Sellers and the Purchaser save as aforesaid.
	 
	4.6	 	The parties shall co-operate with the Reporting Accountants and comply with their
reasonable requests made in connection with the carrying out of their duties under this
Agreement. In particular, without limitation, (i) the Purchaser shall keep up to date and,
subject to reasonable notice, make available to SCPLC, SCPLC’s representatives and the
Reporting Accountants its books and records relating to the relevant Group Companies during
normal office hours during the period from the appointment of the Reporting Accountants down
to the making of the relevant determination and (ii) during such period SCPLC shall and shall
procure that its representatives shall subject to the Purchaser providing or procuring the
provision of any hold harmless undertaking that SCPLC’s accountants may reasonably require and
subject to reasonable notice make available to the Purchaser, the Purchaser’s representatives
and the Reporting Accountants the working papers and files relating to the preparation of the
draft Net Current Asset Statement.
	 
	4.7	 	Subject to paragraph 4.9, nothing in this paragraph 4 shall entitle a party or the
Reporting Accountants access to any information or document which is protected by legal
professional privilege, or which has been prepared by the other party or its accountants and
other professional advisers with a view to assessing the merits of any claim or argument.

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	4.8	 	A party shall not be entitled by reason of paragraph 4.9 to refuse to supply such
part or parts of documents as contain only the facts on which the relevant claim or argument
is based.
	 
	4.9	 	Each party shall, and shall procure that its accountants and other advisers shall,
instruct the Reporting Accountants to keep all information and documents provided to them
pursuant to this paragraph 4 confidential and shall not use the same for any purpose, except
for disclosure or use in connection with the preparation of the Net Current Asset Statement,
the proceedings of the Reporting Accountants or another matter arising out of this Agreement
or in defending any claim or argument or alleged claim or argument relating to this Agreement
or its subject matter.

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Part 3

Accounting policies to be adopted in the Net Current Asset Statement

	1	 	Preparation of Valuation
	 
	 	 	The Net Current Asset Statement and any element of it shall be prepared in accordance
with the policies that are referred to, and in the order of priority shown, in this
paragraph 1:
	 
	1.1	 	in accordance with the provisions of this Part 3 of Schedule 6;
	 
	1.2	 	save to the extent inconsistent with or contradictory to paragraph 1.1, on a basis
consistent with the Audited Accounts, using the same accounting principles, policies and
practices, and in accordance with the law and applicable standards, principles and practices
generally accepted in the United Kingdom as if they were statutory accounts required to be
prepared under the Companies Acts;
	 
	1.3	 	notwithstanding paragraph 1.2 above the Net Current Asset Statement will reflect
the change in group policy made in 2004 so as to recharge to group subsidiaries the
attributable proportion of all pensions contributions made to the InterContinental Hotels UK
Pension Plan on their behalf, and any unpaid liability arising from such recharge will be
reflected in the Net Current Asset Statement. No prepayment will be recognised in respect of
such pensions recharges;
	 
	1.4	 	save to the extent inconsistent with or contradictory to paragraphs 1.1 to 1.3, in
accordance with GAAP as at the Completion Date; and
	 
	1.5	 	shall exclude the Inter-Group Debt Balance.
	 
	2	 	Specific Accounting Policies
	 
	2.1	 	The Net Current Asset Statement for each Company and in aggregate shall be drawn up
on a going concern basis as at close of business on the Completion Date and the relevant
assets and liabilities shall, subject to this Part 3, be as set out in the audited accounts of
each of the Group Companies for the period ended on the Completion Date. No account shall be
taken of events taking place or information becoming available after the date the Sellers
deliver the draft Net Current Asset Statement to the Purchaser pursuant to paragraph 2.1 of
Part 2 above.
	 
	2.2	 	The Net Current Asset Statement will exclude any effects of the change of control
or ownership of the Group contemplated by this Agreement. Where judgement is required in
determining the value of assets and liabilities, the Net Current Asset Statement should
reflect the normal practices adopted in the Audited Accounts and subject thereto will reflect
the decisions of the management of the Group up to and including the Completion Date and not
those of the management of the Group or the Purchaser after that date.
	 
	3	 	Cash, Stock and Debtors, Deferred Income and Prepayments
	 
	3.1	 	Doubtful debts
	 
	 	 	Doubtful debt provisions will be included applying consistent principles to those used
in the Audited Accounts.

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	3.2	 	Debtors
	 
	 	 	All Debtors of the Group Companies as at the Completion Date shall be included.
	 
	3.3	 	Stock not included
	 
	 	 	Any items of Stock which are unsaleable, unusable, spoilt or out of date shall be excluded
from the Stock.
	 
	3.4	 	Deferred Income and Prepayments
	 
	 	 	Deferred Income and Prepayments will be apportioned on a time basis in relation to the
period to which the Deferred Income or the Prepayment relates, as at 11.00am on the
Completion Date.
	 
	3.5	 	Cash
	 
	 	 	Cash shall be determined by reference to the cash book balance used by the Group Companies
as opposed to the Group Companies’ bank statement balance and shall include any Cash held at
the relevant Property.
	 
	4	 	Current Liabilities
	 
	4.1	 	Tax
	 
	 	 	To recognise either an asset or a liability for Taxation (as appropriate), provision
shall be made to reflect any asset or liability for Taxation (as appropriate) arising on
activities in the accounting period ending on the Completion Date but allowing for the
effect of such Group Relief surrender as the Sellers shall specify in the Group Relief
Schedule.
	 
	4.2	 	Inter-company trading amounts so far as they are solely between Group Companies
shall be nil at the Completion Date.
	 
	4.3	 	All Trade Creditors of the Group Companies as at the Completion Date shall be included.
	 
	4.4	 	Deferred tax shall not be treated as a current liability.
	 
	5	 	Aggregation
	 
	 	 	Each entry shall be the aggregate of the separate amounts in respect of any heading for each
of the Group Companies.
	 
	6	 	Group Relief Schedule
	 
	 	 	The Group Relief Schedule shall show the amounts to be taken into account in the preparation
of the Net Current Asset Statement for the accounting periods ending after 31 December 2003
(the “Current Periods”) in respect of:

	 	6.1.1	 	surrenders of Group Relief by Group Companies to other Group Companies and
to the Sellers’ Group;
	 
	 	6.1.2	 	surrenders of a Group Relief by companies in the Sellers’ Group to Group
Companies; and
	 
	 	6.1.3	 	liability to make payments and right to receipts in respect of such
surrenders to be taken into account in the calculation of Debtors and Trade Creditors;

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	 	6.1.4	 	and the Net Current Asset Statement shall be prepared on the basis that the
specified surrenders are made. The Group Relief Schedule shall in addition be deemed to
incorporate all surrenders of group relief already made at Completion in respect of
accounting periods ended on or before 31 December 2003 (the “Past Periods”) but the Net
Current Asset Statement will be prepared on the basis that there are no outstanding
liabilities or debtors in respect of group relief for Past Periods to be included in
the Group Relief Schedule. For the purposes of this paragraph 6 and Clause 8 of the Tax
Deed of Covenant, “Sellers’ Group” shall be defined as in Clause 1.2 of the Tax Deed.

	7	 	Long-Term Liabilities
	 
	 	 	Long-Term Liabilities shall, for the avoidance of doubt, exclude any deferred tax and
provisions.

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Part 4

Pro forma Net Current Asset Statement

Pro forma Net Current Asset Statement in respect of the Net Current Assets Amount

	 	 	 	 	 	 	 	 	 
	Asset/Liability	 	Amount (£)	 	 	Amount (£)	 
	Current Assets
	 	 	 	 	 	 	 	 
	Debtors
	 	 	l	 	 	 	 	 
	Inter-Group Receivables
	 	 	 	 	 	 	l	 
	Stock
	 	 	l	 	 	 	 	 
	Cash
	 	 	l	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Less
	 	 	 	 	 	 	 	 
	Current Liabilities
	 	 	 	 	 	 	 	 
	Trade Creditors
	 	 	(l	)	 	 	 	 
	Inter-Group Payables
	 	 	 	 	 	 	(l	)
	 
	 	 	 	 	 	 
	Net Current Assets/(Liabilities) Amount
	 	 	 	 	 	 	l	 
	 
	 	 	 	 	 	 
	Less
	 	 	 	 	 	 	 	 
	Long-Term Liabilities (if any)
	 	 	 	 	 	 	(l	)
	Provisions (if any)
	 	 	 	 	 	 	(l	)
	 
	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 

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Schedule 7

Warranties given by the Sellers

(Clause 9)

	1	 	Corporate Information
	 
	1.1	 	The Shares and the Group Companies

	 	1.1.1	 	Each Seller is entitled to sell and transfer to the Purchaser the full
legal and beneficial ownership of the Shares set opposite its name in column 2 to
Schedule 1 free from all Encumbrances on the terms of this Agreement without the
consent of any other party.
	 
	 	1.1.2	 	The Shares comprise the whole of the issued and allotted share capital of
the Companies, have been properly and validly issued and allotted and are each fully
paid.
	 
	 	1.1.3	 	A Group Company is the sole legal and beneficial owner of all the issued
and allotted shares in the Subsidiaries listed in Part 2 to Schedule 2 free from all
Encumbrances other than 1 ordinary share in Holiday Inn (Reading) Limited in respect of
which the registered holder is InterContinental Hotels Group Limited.
	 
	 	1.1.4	 	The shares in the Subsidiaries comprise the whole of the issued and
allotted share capital of the Subsidiaries, have been properly and validly issued and
allotted and each are fully paid.
	 
	 	1.1.5	 	No person has the right (whether exercisable now or in the future and
whether contingent or not) to call for the allotment, conversion, issue, registration,
sale or transfer, amortisation or repayment of any share capital or any other security
giving rise to a right over, or an interest in, the capital of any Group Company under
any option, agreement or other arrangement (including conversion rights and rights of
pre-emption).
	 
	 	1.1.6	 	The Shares and the shares in the Subsidiaries have not been and are not
listed on any stock exchange or regulated market.
	 
	 	1.1.7	 	No Group Company has any interest in, or has agreed to acquire, any share
capital or other security referred to in paragraph 1.1.5 of this Schedule 7 of any
other company (wherever incorporated) other than (a) the Subsidiaries set out in
Schedule 2 or (b) an interest of less than 0.1 per cent in companies listed on any
stock exchange or in regulated investment funds which, in either case, the Group
Company holds for cash management purposes.
	 
	 	1.1.8	 	No Group Company has, outside its country of incorporation, any branch or
permanent establishment.
	 
	 	1.1.9	 	In the last three years, no Group Company has given any financial
assistance in connection with the acquisition of shares which assistance is prohibited
under sections 151 to 158 (inclusive) of the Companies Act 1985.
	 
	 	1.1.10	 	In the last three years, all dividends or distributions declared, made or
paid by any Group Company have been declared, made or paid in accordance with its
memorandum and articles of association and the applicable provisions of the Companies
Acts.

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	 	1.1.11	 	The particulars contained in Schedule 2 are true and accurate.

	1.2	 	Insolvency etc.

	 	1.2.1	 	No Group Company is insolvent whether as defined by Section 123 of the
Insolvency Act 1986 or otherwise unable to pay its debts as they fall due.
	 
	 	1.2.2	 	No administrator, receiver (including an administrative receiver) or
liquidator has been appointed in respect of the whole or any part of the assets or
undertaking of the Group, and no petition has been presented in relation to such assets
and undertaking.
	 
	 	1.2.3	 	There are no proceedings other than those referred to in paragraph 1.2.2 of
this Schedule 7 in relation to any compromise or arrangement with creditors or any
winding up, bankruptcy or other insolvency proceedings concerning any Group Company
and, so far as the Sellers are aware, no events have occurred which, under applicable
laws, would justify such proceedings.
	 
	 	1.2.4	 	No member of the Sellers’ Group nor any Group Company has received any
notice of an intention to appoint an administrator by a qualifying floating charge held
(as defined in paragraph 14 of Schedule B1 to the Insolvency Act 1986).
	 
	 	1.2.5	 	So far as the Sellers are aware, no steps have been taken to enforce any
security over any assets of any Group Company and no event has occurred to give the
right to enforce such security.

	1.3	 	Constitutional Documents, Corporate Registers, Minute Books and Powers of Attorney

	 	1.3.1	 	The constitutional documents of the Group Companies in the Data Room are
true and accurate copies of the constitutional documents of the Group Companies and
complete in all material respects and, so far as the Sellers are aware, there have not
been and are not any breaches by any Group Company of its constitutional documents
which would have a material adverse effect on the business of the Group.
	 
	 	1.3.2	 	The registers and minute books required to be maintained by each Group
Company under the laws of England and Wales (and including Centre Hotels (Cranston)
Limited):

	 	(i)	 	are up-to-date;
	 
	 	(ii)	 	are maintained in accordance with applicable law; and
	 
	 	(iii)	 	contain records of all matters required to be dealt with in
such books and records,

	 	 	 	in each case in all material respects.
	 
	 	1.3.3	 	All registers and statutory books referred to in paragraph 1.3.2 are in the
possession (or under the control) of the relevant Group Company and no notice that any
of them is incorrect and should be rectified has been received.
	 
	 	1.3.4	 	All filings, publications, registrations and other formalities required by
applicable law to be delivered or made by the Group Companies to company registries in

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	 	 	 	England and Wales (or Scotland in respect of Centre Hotels (Cranston) Limited) have
been duly delivered or made on a timely basis.

	 	1.3.5	 	Other than as listed in Schedule 2 of the Disclosure Letter, there are no
powers of attorney nor other authority to bind or commit any Group Company to any
obligation not in the ordinary course of the relevant Group Company’s business in force
given by any of the Group Companies to any person who is not a director or employee of
a Group Company.

	2	 	Audited Accounts
	 
	2.1	 	Latest Audited Accounts
	 
	 	 	The audited accounts of the Group Companies for the financial period ended on the
Accounts Date:

	 	2.1.1	 	have been prepared in accordance with applicable law and with the
accounting principles, standards and practices generally accepted at the Accounts Date;
	 
	 	2.1.2	 	subject to paragraph 2.1.1, have been prepared on a basis consistent, in
all material respects, with that adopted in preparing the audited accounts of such
Group Companies for the previous two financial years; and
	 
	 	2.1.3	 	make proper provision or reserve for all bad and doubtful debts,

	 	 	so as to give a true and fair view of the state of affairs of the Group Companies at the
Accounts Date and of the profits or losses for the period concerned.
	 
	2.2	 	Management Accounts and Consolidated Financial Summary

	 	2.2.1	 	The Management Accounts and the Consolidated Financial Summary have been
prepared with due care materially in accordance with the Group Accounting Policies
applied on a consistent basis;
	 
	 	2.2.2	 	the profits and losses of the Hotels for the relevant period as shown in
the Consolidated Financial Summary before the pro-forma adjustments set out in such
Summary are materially accurate; and
	 
	 	2.2.3	 	excluding the Properties and any Property-related adjustments, the Draft
2004 Accounts of the Group Companies setting out the assets and liabilities of the
Group as at 31 December are materially accurate, it being acknowledged that such
balances are in draft form and subject to final audit;
	 
	 	2.2.4	 	the aggregate reserves of the Group Companies as at 31 December 2004, as
adjusted for the impact of the Pre-Sale Reorganisation but excluding any adjustment for
impairment charges in respect of fixed assets, are not less than £300 million,

	 	 	it being acknowledged (i) that the Management Accounts have been prepared for internal
purposes only and have not been audited; (ii) that the Management Accounts are interim
accounts where cut-off and closing procedures are usually not performed to the same standard
as for year-end accounts and where income and expenses may not be fully reflected in the
Management Accounts relating to the period in which they were incurred and (iii) that the
Consolidated Financial Summary is extracted from the management

141

 

	 	 	accounts of the Hotels for the relevant period (which have been prepared on the same basis
as the Management Accounts) and has not been audited.
	 
	2.3	 	Since the Accounts Date
	 
	 	 	Since the Accounts Date and up to the date hereof:

	 	2.3.1	 	the business of the Group has been carried on as a going concern in the
ordinary course, without any material interruption or material alteration in its
nature, scope or manner and specifically, on a Hotel by Hotel basis, there has been no
material diminution in expenditure with respect to sales and marketing, repair and
maintenance, IT and payroll that has had a material adverse effect on the overall
profitability of the business of the relevant Hotel;
	 
	 	2.3.2	 	no material capital commitments have been entered into by any Group Company
other than is contemplated by such Group Company’s capital budget. For these purposes a
material capital commitment is one involving capital expenditure of over £1,000,000 for
Hotels with more than 120 rooms or £500,000 for any other Hotels, in each case
exclusive of VAT;
	 
	 	2.3.3	 	no Group Company has declared, made or paid or agreed to declare, make or
pay any dividend or other distribution of profits or assets to the Sellers;
	 
	 	2.3.4	 	no Group Company has issued or agreed to issue any share or loan capital or
any other security giving rise to a right over its capital;
	 
	 	2.3.5	 	no Group Company has redeemed or purchased or agreed to redeem or purchase
any of its share capital; and
	 
	 	2.3.6	 	save as disclosed in the Data Room in section 04 and sub-sections 02-10 in
the Capital Reduction and Restructuring Documentation section for any Group Company in
the second round data room and section 02 for any Group Company in the data room, no
shareholder resolutions of any Group Company have been passed other than resolutions
relating to ordinary business at any Annual General Meeting.

	3	 	Financial Obligations
	 
	3.1	 	Details of all outstanding guarantees, indemnities, mortgages, charges, pledges,
liens, assignments, suretyship or other security agreement or arrangement given other than in
the ordinary course of business:

	 	3.1.1	 	by any Group Company; or
	 
	 	3.1.2	 	for the benefit of any Group Company,

	 	 	in excess of £500,000 are disclosed in the Data Room.
	 
	3.2	 	No Group Company has any outstanding or available financial facilities (which for
the avoidance of doubt shall exclude any operating leases in the ordinary course) owed to or
made available by any person which is not a Group Company or a member of the Sellers’ Group.

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	4	 	Properties
	 
	4.1	 	General

	 	4.1.1	 	The Properties comprise all the land and buildings owned, leased, in the
possession of or occupied by a member of the Group.
	 
	 	4.1.2	 	The Group Company named in Schedule 3 as owner of a Property is the sole
legal and beneficial owner of and beneficially entitled to the whole of the proceeds of
sale of that Property.
	 
	 	4.1.3	 	The information contained in Parts 1 and 2 of Schedule 3 as to the tenure
of the Properties and the details set out therein are true and accurate.
	 
	 	4.1.4	 	No member of the Group has any actual or contingent liability in respect of
any estate or interest in property whether arising as original tenant, assignee,
guarantor or otherwise howsoever other than in respect of the Properties or any
properties forming part of the Pre-Sale Reorganisation.
	 
	 	4.1.5	 	No works have been carried out since 4 April 2001 which might result in a
material revision of the current rateable value of any of the Properties.

	4.2	 	Certificated Properties

	 	4.2.1	 	The Sellers have provided to the Sellers’ Lawyers and Wright Johnston &
Mackenzie all documents relating to the Certificated Properties of which they have
knowledge together with such other information in their possession as is material for
the purposes of giving the Certificates of Title.
	 
	 	4.2.2	 	To the best of the knowledge, information and belief of the Sellers, the
information contained in the Certificates of Title is complete and accurate in all
respects.

	4.3	 	Uncertificated Properties

	 	4.3.1	 	The written replies supplied by the Sellers’ Lawyers and Wright Johnston &
Mackenzie to the pre-contract standard enquiries in respect of the Uncertificated
Properties are in all material respects true, accurate and not misleading and where
those replies are qualified by reference to the awareness, knowledge, information or
belief of the Sellers, are correct to the standard referred to in Clause 9.1.4. Where
those replies are qualified by reference to significance or materiality, then the level
of significance or materiality is £500,000 per item. Such replies would still be the
same if those enquiries were repeated at the date of this Agreement.
	 
	 	 	 	Possession and occupation
	 
	 	4.3.2	 	A member of the Group is in actual occupation and possession of the whole
of each of the Uncertificated Properties, none of which is vacant, and (except by
virtue of the Letting Documents) no other person is in or actually or conditionally
entitled to possession, occupation, use or control of any of the Uncertificated
Properties.
	 
	 	 	 	Title
	 
	 	4.3.3	 	There is no financial charge, standard security, mortgage or other security
interest (save for rent charges, if any) in or over or affecting any of the
Uncertificated Properties.

143

 

	 	4.3.4	 	No Uncertificated Properties are affected by a subsisting contract for
sale.
	 
	 	4.3.5	 	Save as disclosed in the Property section (section 3 of the second round
Data Room, section 4 of the Data Room and section 4 of the property information pack)
of the Data Room only, no Uncertificated Properties are affected by a subsisting
pre-emption right or option to enter into a contract for sale, the provisions of which
remain to be performed.
	 
	 	4.3.6	 	A member of the Group has in its possession or unconditionally held to its
order all the original documents of title and other documents and papers relating to
the Uncertificated Properties.
	 
	 	4.3.7	 	There are no insurance policies relating to any question of title affecting
any of the Uncertificated Properties.
	 
	 	 	 	Insolvency
	 
	 	4.3.8	 	No member of the Group is aware of any circumstances which could render any
transaction relating to such member of the Group’s title to any Uncertificated Property
liable to be set aside under the provisions of insolvency legislation.
	 
	 	 	 	Notice of breach of encumbrances
	 
	 	4.3.9	 	No member of the Group has received written notice of any breach of any
covenants, obligations, title conditions, restrictions, stipulations, easements,
servitudes or other matters set out or referred to in the deeds and documents relating
to the Uncertificated Properties which notice remains outstanding.
	 
	 	4.3.10	 	None of the Uncertificated Properties are subject to any liability for the
payment of any outgoings relating to property ownership of a recurring nature except
uniform business rates, water rates, sewerage charges, insurance premiums and other
similar charges (all of which are paid up to date and no such payments are in dispute)
and in the case of leaseholds, rent, insurance rent and service charge.
	 
	 	 	 	Adverse rights
	 
	 	4.3.11	 	So far as the Sellers are aware, no one is in adverse possession of any
Uncertificated Properties.
	 
	 	4.3.12	 	So far as the Sellers are aware, no third party has given written notice
to any member of the Group alleging that it has acquired any rights adversely affecting
any of the Uncertificated Properties which notice remains subsisting.
	 
	 	 	 	Notices
	 
	 	4.3.13	 	No notices materially affecting any property matter in respect of the
Uncertificated Properties have been given by any member of the Group and no such
notices have been received by any member of the Group the subject matter of which would
have a material adverse effect on the continued use of the Uncertificated Property as a
hotel together with leisure facilities and other ancillary uses if so used at the date
of this Agreement.
	 
	 	 	 	Planning
	 
	 	4.3.14	 	So far as the Sellers are aware, during the period of:

144

 

	 	(i)	 	four years immediately prior to the date of this Agreement no
development at the Uncertificated Properties has been undertaken in breach of
the Planning Acts; and
	 
	 	(ii)	 	ten years immediately prior to the date of this Agreement no
material change of use at the Uncertificated Properties has been undertaken in
breach of the Planning Acts.

	 	4.3.15	 	No application for planning permission in relation to any of the
Uncertificated Properties is awaiting determination and no planning decision or deemed
refusal is the subject of any appeal nor has been granted within six months prior to
the date of this Agreement.
	 
	 	4.3.16	 	No written notice has been received which remains outstanding in relation
to any compulsory purchase notice, order, proposal, scheme or resolution affecting any
of the Uncertificated Properties or any access to any of them.
	 
	 	4.3.17	 	So far as the Sellers are aware, there are no outstanding obligations on
any Group Company pursuant to any agreement affecting an Uncertificated Property made
pursuant to Section 106 of the Town and Country Planning Act 1990 (or Section 75 of the
Town and Country Planning (Scotland) Act 1997), Section 38 of the Highways Act 1980 (or
Section 48 of the Roads (Scotland) Act 1984) or Section 33 of the Local Government
(Miscellaneous Provisions) Act 1982.
	 
	 	 	 	Leasehold Properties
	 
	 	4.3.18	 	In relation to such of the Uncertificated Properties as are leasehold:

	 	(i)	 	no collateral assurances, undertakings or concessions have been
made in writing, so as to be legally enforceable, by any party to the Leases;
	 
	 	(ii)	 	so far as the Sellers are aware, no undocumented collateral
assurances, undertakings or concessions have been made by any party to the
Leases;
	 
	 	(iii)	 	the last instalments of rent, additional rent, service charge
(if any) and of all other payments due under such Leases respectively have been
paid and were accepted by the landlord or its agents without qualification and
no such payments are in dispute;
	 
	 	(iv)	 	all steps in rent reviews have been duly taken and no rent
reviews are or should be currently under negotiation or the subject of a
reference to an expert or arbitrator (or arbiter in Scotland) or the Courts;
	 
	 	(v)	 	no written notice alleging any breach of the covenants (or
obligation) contained in the Lease, whether on the part of the landlord or the
tenant, remains outstanding; and
	 
	 	(vi)	 	no notice of forfeiture under Section 146 of the Law of
Property Act 1925 or (in Scotland) formal lease irritancy warning notice, has
been served on any Group Company.
	 
	 	 	 	Material Letting Documents

	 	4.3.19	 	In relation to any Material Letting Documents:

	 	(i)	 	 

145

 

	 	(a)	 	no collateral assurances, undertakings or
concessions have been made in writing, so as to be legally enforceable,
by any party to the Material Letting Documents and no surety or tenant
or licensee has been expressly released from any obligation;
	 
	 	(b)	 	so far as the Sellers are aware, no
undocumented collateral assurances, undertakings or concessions have
been made by any party to the Material Letting Documents;

	 	(ii)	 	all rent, additional rent, service charges or other payments
under the Material Letting Documents have been paid to date and no rent has
been commuted, waived or paid in advance of the due date for payment and no
such payment is in dispute;
	 
	 	(iii)	 	all steps in rent reviews have been duly taken and no rent
reviews are or should be currently under negotiation or the subject of a
reference to an expert or arbitrator (or arbiter in Scotland) or the Courts;
	 
	 	(iv)	 	no written notice alleging any breach of any covenant (or
obligation) or condition contained in the Material Letting Documents, whether
on the part of the landlord or the tenant, remains outstanding;
	 
	 	(v)	 	so far as the Sellers are aware, there has been no sub-letting,
parting with possession or sharing of occupation by any tenant who occupies any
part of the Uncertificated Properties under the Letting Documents; and
	 
	 	(vi)	 	no notices under Sections 25 or 26 of the Landlord and Tenant
Act 1954 have been served or received in relation to any Material Letting
Documents at any Uncertificated Property.

	 	 	 	Disputes
	 
	 	4.3.20	 	There are no current material disputes, actions, claims or demands between
a Group Company and any adjoining or neighbouring owner:

	 	(i)	 	with respect to any boundary walls and fences or with respect
to any easement, right or means of access to any of the Uncertificated
Properties or their current use and occupation; or
	 
	 	(ii)	 	in relation to any property neighbouring an Uncertificated
Property or the current use or occupation of such neighbouring property;

	 	 	 	and so far as the Sellers are aware none are anticipated.
	 
	 	 	 	Title documents
	 
	 	4.3.21	 	The Sellers have provided in the Data Room true and complete copies of all
deeds and documents relevant to the title of any member of the Group to any of the
Uncertificated Properties.

	4.4	 	Construction

	 	4.4.1	 	As at the date of this Agreement, in respect of the Properties there are no
building, construction, refurbishment, repair, engineering or other works in progress
nor are there any individual contracts in respect of which the Group or a member of the
Sellers’ Group continue to have obligations in each case with an individual contract
value in excess of £1,000,000.

146

 

	 	4.4.2	 	The Sellers have provided in the Data Room true and complete copies of all
building contracts and appointments affecting the Properties which have an individual
contract value in excess of £1,000,000 and which have been entered into since 4 April
2001 (save in respect or in the case of the two Certificated Properties known as Crowne
Plaza London Heathrow and Holiday Inn London Kensington Forum only, the last six years
immediately prior to the date of this Agreement).
	 
	 	4.4.3	 	In this paragraph 4.4.3, the expression “Construction Documentation” shall
mean building contracts relating to the Properties (i) in respect of which a
certificate of practical completion has been issued since 4 April 2001 (save in respect
of the two Certificated Properties known as Crowne Plaza London Heathrow and Holiday
Inn London Kensington Forum, where the last six years immediately prior to the date of
this Agreement shall apply) and/or (ii) relating to works in progress and “Relevant
Claim” shall mean a written claim the value of which is in excess of £500,000.
	 
	 	 	 	In respect of the Construction Documentation there are no outstanding:

	 	(i)	 	Relevant Claims for financial compensation, extension of time
or variation; or
	 
	 	(ii)	 	Relevant Claims against any member of the Sellers’ Group or the
Group by any counterparty to the Construction Documentation alleging failure by
the relevant member of the Sellers’ Group or Group to perform its obligations
under the relevant Construction Documentation; or
	 
	 	(iii)	 	Relevant Claims against any counterparty to the Construction
Documentation for failure by such counterparty to perform any obligation of
that counterparty under the Construction Documentation.

	 	4.4.4	 	As at the date of this Agreement there are no construction works being
undertaken by or on behalf of any Group Company at a Property, where the contract value
of such works exceeds 10 per cent. of the net book value of the relevant Property as at
the Accounts Date.
	 
	 	4.4.5	 	The planned programme for works pursuant to the Disability Discrimination
Act 1995 as set out in document 07 in the Group Information section of the property
information pack “IHG’s UK DDA policy, summary of works and status”, document 51 002
“DDA progress summary” in the Portfolio Information section of the second round data
room, document 51 003 “DDA Audits — stage 3 status summary” in the Portfolio
Information section of the second round Data Room and item 03 011 for each Hotel “Stage
2 DDA Audits” in the second round Data Room in the Data Room has been adhered to.

	5	 	Ownership of Assets
	 
	 	 	All assets included in the Audited Accounts or acquired by any of the Group Companies
since the Accounts Date, other than the Properties, and any assets disposed of or realised
in the ordinary course of business, and excepting rights and retention of title arrangements
arising by operation of law in the ordinary course of business:

	 	5.1.1	 	are owned by the Group Companies;

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	 	5.1.2	 	are, where capable of possession, in the possession or under the control of
the relevant Group Company; and
	 
	 	5.1.3	 	none of such assets is the subject of an Encumbrance or the subject of any
factoring arrangement, conditional sale or credit agreement.

	6	 	Information Technology, Data Protection and Intellectual Property
	 
	6.1	 	For the purposes of this paragraph 6:
	 
	 	 	“Data Protection Legislation” means the Data Protection Act 1998 and any subordinate
legislation or orders made under that Act;
	 
	 	 	“Group IT” means all Information Technology which is owned by any Group Company or which has
in the last two years been used in connection with the business of any Group Company other
than Retained IT;
	 
	 	 	“Information Technology” means computer systems, communication systems, software and
hardware;
	 
	 	 	“Material Intellectual Property” means all rights and interests held by any of the Group
Companies in Intellectual Property (whether as owner, licensee or otherwise) which at or
immediately before Completion is used in relation to the Group and which is material to the
business of the Group; and
	 
	 	 	“Retained IT” means Information Technology owned by, or licensed to, the Sellers’ Group.

	 
	 	 	Information Technology
	 
	6.2	 	Each of the Group IT is owned by or licensed to the relevant Group Company.
	 
	6.3	 	All arrangements relating to, and licences of, Group IT which is material to the
business of the Group are summarised in the Data Room and:

	 	6.3.1	 	are in full force and effect, no notice having been given by either side to
terminate them;
	 
	 	6.3.2	 	no circumstances exist or have existed which would entitle a party to
terminate them, vary them and/or make a claim for money or a money equivalent in
respect of them; and
	 
	 	6.3.3	 	so far as the Sellers are aware the obligations of the parties thereto have
been fully complied with,

	 	 	and no disputes, claims or proceedings have arisen or are foreseeable in respect of those
arrangements and licences.
	 
	6.4	 	There are, and in the past two years there have been, no performance reductions or
breakdowns of, or logical or physical intrusions to, any Information Technology or loss of
data which have had (or are having) a material adverse effect on the business of the Group and
the Sellers are not aware of any fact or matter (including, but not limited to, a change of
control of any of the Group Companies) which may give rise to such a material adverse effect.
	 
	6.5	 	The Group Companies have in place procedures which are in accordance with current
good industry practice:

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	 	6.5.1	 	to prevent unauthorised access to and the introduction of viruses and other
contaminants into the Group IT;
	 
	 	6.5.2	 	to take and store back-up copies of the software and data in the Group IT;
and
	 
	 	6.5.3	 	to ensure that the business of the Group Companies can continue without
material disruption in the event of breakdown or performance reduction of the Group IT
or loss of data, whether due to natural disaster, power failure or otherwise.

	 	 	Data Protection
	 
	6.6	 	In the last two years each Group Company has complied in all material respects
with all applicable requirements of any Data Protection Legislation.
	 
	6.7	 	In the last two years no notice alleging non-compliance with the Data Protection
Legislation (including any enforcement notice, deregistration notice or transfer prohibition
notice) has been received by any of the Group Companies from any relevant regulator.
	 
	6.8	 	In the last two years no undertaking has been made in relation to Data Protection
Legislation by any Group Company to any relevant regulator.
	 
	6.9	 	In the last two years so far as the Sellers are aware, no correspondence, dispute,
enquiry or information notice has been made or audit undertaken or proposed by any relevant
regulator under Data Protection Legislation in relation to any Group Company.
	 
	 	 	Intellectual Property
	 
	6.10	 	So far as the Sellers are aware, all the Material Intellectual Property (whether
registered or not) and all pending applications therefor are (or where appropriate in the case
of pending applications, will upon registration be) legally owned by, licensed to or used
under the authority of the owner by the Group Companies.
	 
	7	 	Contracts
	 
	7.1	 	Contracts
	 
	 	 	Other than as disclosed in the Data Room, no Group Company is a party to or subject to
any contract, transaction, arrangement, understanding or obligation (other than in relation
to any property, property lease or contract of employment) which is material to the business
of the Group and which:

	 	7.1.1	 	is not in the ordinary course of business;
	 
	 	7.1.2	 	is not on an arm’s length basis;
	 
	 	7.1.3	 	is of a long-term nature, that is unlikely to have been fully performed, in
accordance with its terms, more than 12 months after the date on which it was entered
into or undertaken;
	 
	 	7.1.4	 	restricts its freedom to carry on its business in any part of the world in
such manner as it thinks fit so as to have a material adverse effect on the Group; or
	 
	 	7.1.5	 	involves the supply of goods and/or services on terms under which
retrospective or future discounts, price reductions or other financial incentives are
given, the aggregate sales value of which (exclusive of VAT) will be more than 5 per
cent of turnover of the business of the Group (exclusive of VAT) for the preceding
financial year.

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	7.2	 	Compliance with Contracts
	 
	 	 	So far as the Sellers are aware:

	 	7.2.1	 	the terms of all contracts referred to in paragraph 7.1 above have been
complied with in all material respects by the relevant Group Companies; and
	 
	 	7.2.2	 	as at the date hereof, no notice of termination or of intention to
terminate has been received in respect of any contract referred to in paragraph 7.1
above and, so far as the Sellers are aware, there are no grounds for termination,
rescission, avoidance or repudiation of any such contract; and
	 
	 	7.2.3	 	details of all acquisitions or disposals of businesses or undertakings or shares
(being in each case a transaction with a value of £1,500,000 or more) by any
Group Company in the last three years, together with details of any material actual or
contingent liabilities that the Sellers are aware of in connection with any such
disposal or acquisition, are contained in the Disposal Agreements section and the
Capital Reduction and Restructuring Documentation section of the second round Data
Room.

	7.3	 	Joint Ventures etc.
	 
	 	 	No Group Company is, or has agreed to become, a member of any joint venture,
consortium, partnership or other unincorporated association (other than a recognised trade
association in relation to which the Group Company has no liability or obligation except for
the payment of annual subscription or membership fees).
	 
	7.4	 	Agreements with Connected Parties

	 	7.4.1	 	There are no existing contracts or arrangements material to the business of
the Group between, on the one hand, any Group Company and, on the other hand, any
Seller or any other member of the Sellers’ Group other than on normal commercial terms
in the ordinary course of business.
	 
	 	7.4.2	 	No Group Company is party to any contract nor is there any outstanding
indebtedness (actual or contingent) material to the business of the Group with any
current or former employee or current or former director or officer of any such Group
Company or any person connected (within the meaning of section 839 of the Income and
Corporation Taxes Act 1988) with any of such persons, or in which any such person as
aforesaid is interested (whether directly or indirectly), other than on normal
commercial terms in the ordinary course of business.

	8	 	Employees and Employee Benefits
	 
	8.1	 	Employees and Terms of Employment

	 	8.1.1	 	The Disclosure Letter contains accurate details, in relation to each Hotel
at the date of this Agreement, of:

	 	(i)	 	the name of each person who is a director of a Group Company;
	 
	 	(ii)	 	the total number, salary and other benefits, of Relevant
Employees;
	 
	 	(iii)	 	the salary and other benefits, period of continuous
employment, location and age of each Significant and Senior Employee;

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	 	(iv)	 	specimen terms and conditions of each category of Relevant
Employee;
	 
	 	(v)	 	the length of notice which must be given by the relevant Group
Company to terminate the contract of employment of each Significant Employee;
	 
	 	(vi)	 	all employment handbooks relating to any of the Relevant
Employees;
	 
	 	(vii)	 	so far as the Sellers are aware, all written employment
policies relating to any of the Relevant Employees; and
	 
	 	(viii)	 	the total number of, and aggregate fees incurred for, agency staff engaged
for a period of one continuous year or more by any Group Company.

	 	8.1.2	 	As at the date of this Agreement, no Group Company has given or received
notice to terminate the contract of employment of any Significant Employee which is yet
to expire nor, so far as the Sellers are aware, has any such notice been threatened and
no dispute is outstanding between any Group Company and any of the Group Companies’
current or former Relevant Employees relating to their employment (provided that such
dispute has been escalated to at least the stage of a disciplinary matter or a written
grievance which relates to a breach of any material statutory obligation or a breach of
contract) or the termination of their employment by the Group Companies.
	 
	 	8.1.3	 	Each Relevant Employee is employed by a Group Company.
	 
	 	8.1.4	 	So far as the Sellers are aware, no Group Company has made an offer which
is outstanding to, or is bound by an agreement to, make any changes to any contractual
terms or conditions of employment (as referred to in paragraphs 8.1.1(iv) and (vi) of
this Schedule 7) of any of the Relevant Employees.
	 
	 	8.1.5	 	At the date of this Agreement, no Relevant Employee is on sick leave which
has lasted for eight weeks or more.
	 
	 	8.1.6	 	At the date of this Agreement, no Significant Employee is absent on
ordinary or additional maternity leave.
	 
	 	8.1.7	 	No offers of employment which are outstanding have been made by any Group
Company to, or accepted by, any individual who is, or would be (if the offer was
accepted) a Significant Employee, save in the ordinary course of business to replace
staff.
	 
	 	8.1.8	 	So far as the Sellers are aware, no questionnaire has been served on any of
the Group Companies by a Relevant Employee under the Disability Discrimination Act
1995, the Sex Discrimination Act 1975, the Race Relations Act 1976, the Equal Pay Act
1970, the Equality of Employment (Religion or Belief) Regulations 2003, or the Equality
of Employment (Sexual Orientation) Regulations 2003 which at the date of this Agreement
remains unanswered in full or in part.
	 
	 	8.1.9	 	So far as the Sellers are aware, at the date of this Agreement every
Relevant Employee of the Group Companies who requires a work permit to work in the
United Kingdom has a current work permit to work in the United Kingdom.
	 
	 	8.1.10	 	No Group Company is a party to, bound by or proposing to introduce in
respect of any of its directors or Relevant Employees any redundancy payment scheme in
addition to statutory redundancy pay, nor is there any formal policy in place for
redundancy selection.

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	 	8.1.11	 	So far as the Sellers are aware, no Group Company has incurred any
liability which remains undischarged at the date of this Agreement in connection with
the termination of employment of any Significant Employee (including redundancy
payments) or for failure to comply with any order for the reinstatement or
re-engagement of any Relevant Employee. At the date of this Agreement there is no
outstanding order for the re-instatement or re-engagement of any of the Relevant
Employees or a former employee of a Group Company.
	 
	 	8.1.12	 	So far as the Sellers are aware, at the date of this Agreement no Group
Company is involved in any material industrial or trade dispute or negotiation with any
trade union or other group or organisation representing Relevant Employees and there is
no outstanding liability on the part of the Group Companies or any of them in respect
of any such dispute and so far as the Sellers are aware, at the date of this Agreement
there is nothing likely to give rise to such a dispute or claim.

	8.2	 	Termination of Employment

	 	8.2.1	 	Between 1 July 2004 and the date of this Agreement, no Senior Employee has
given or received notice terminating his or her employment.
	 
	 	8.2.2	 	Between 1 July 2004 and the date of this Agreement, there have been no
proposals to terminate the employment of any Senior Employee.

	8.3	 	Works Councils and Employee Representative Bodies
	 
	 	 	The Disclosure Letter lists all employee representative bodies which by law or any
collective bargaining agreement have the right to be informed and consulted on matters which
affect the Relevant Employees.
	 
	8.4	 	Consultancy Arrangements
	 
	 	 	No Group Company is a party to any Consultancy Agreement and there are no proposals for any
Group Company to enter into any Consultancy Agreement.
	 
	8.5	 	Collective Bargaining Agreements etc.
	 
	 	 	There are no national collective bargaining agreements or industry-wide collective
agreements, union recognition agreements, collective agreements, European Works Council or
other agreements between the Group Companies and trade unions or representative bodies
except those listed in the Disclosure Letter.
	 
	8.6	 	Bonus or other Profit-related Schemes

	 	8.6.1	 	There are attached to the Disclosure Letter the rules or other
documentation relating to all share incentive, share option, profit sharing, bonus or
other incentive arrangements for or affecting any Relevant Employees and there are no
proposals to introduce any further arrangements.
	 
	 	8.6.2	 	Employee Share Incentives

	 	(i)	 	The Sellers have provided the Purchaser with details of the
Relevant Employees who hold share options under the share incentive and share
option arrangements referred to in paragraph 8.6.1 of this Schedule 7.
	 
	 	(ii)	 	No Group Company is or may become liable for any National
Insurance contributions arising out of the grant, exercise or release of
options under

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	 	 	 	the share incentive and share option arrangements referred to in paragraph
8.6.1 of this Schedule 7 which are not fully provided for in the Accounts.
	 
	 	(iii)	 	The InterContinental Hotels Group Sharesave Plan is approved
by the Inland Revenue under the Income Tax (Earnings and Pensions) Act 2003 and
has been operated at all times in accordance with that legislation.
	 
	 	(iv)	 	No Group Company is liable to pay any amount to an employee
trust in relation to any Relevant Employee.

	8.7	 	Pensions

	 	8.7.1	 	For the purpose of these warranties:
	 
	 	 	 	“Pension Scheme” means the InterContinental Hotels UK Pension Plan
	 
	 	8.7.2	 	The Pension Scheme is the only arrangement to which the Group Companies
have or could have any liability for the purpose of providing benefits on retirement or
death.
	 
	 	8.7.3	 	The Sellers have supplied to the Purchaser documents containing full,
accurate and up to date details of the Pension Scheme to the extent that these relate
to any obligations and liabilities under it in respect of the Group Companies and the
Relevant Employees. These documents include, but are not limited to, the following:

	 	(i)	 	the trust deeds, rules and other documents which currently
govern the Pension Scheme;
	 
	 	(ii)	 	all current announcements and explanatory booklets relating to
the Pension Scheme;
	 
	 	(iii)	 	the latest actuarial valuation and report for the Pension
Scheme, and any subsequent draft valuation and report, and any subsequent and
relevant actuarial advice;
	 
	 	(iv)	 	the latest trustee report and accounts; and
	 
	 	(v)	 	proposed changes to any information contained in any of the
documents listed in paragraph 8.7.3(i) above.

	 	8.7.4	 	The Pension Scheme is approved as an exempt approved scheme (within the
meaning of Chapter I or Chapter IV of Part XIV of the Income and Corporation Taxes Act
1988), and the Sellers are not aware of any reason why this approval could be
withdrawn.
	 
	 	8.7.5	 	No claim, dispute, complaint or investigation has arisen which relates to
the provision of retirement or death benefits in respect of the Relevant Employees and
former employees of the Group Companies, and the Sellers are not aware of any such
claim, dispute, complaint or investigation that is pending or threatened.
	 
	 	8.7.6	 	In relation to the Relevant Employees and former employees of the Group
Companies, all amounts due in the normal course of events to the Pension Scheme have
been paid.
	 
	 	8.7.7	 	All benefits under the defined contribution section of the Pension Scheme
(other than those which are fully insured) are calculated on a money purchase basis
only

153

 

	 	 	 	and there is no obligation on any Group Company or under the Pension Scheme (other
than in the case of those benefits which are fully insured) to provide any specified
level of benefits in respect of the Relevant Employees.
	 
	 	8.7.8	 	So far as the Sellers are aware, the Group Companies comply and have at all
times complied in all material respects with all legal and regulatory requirements
(including equal treatment) and the schedule or contributions and the payment schedule
relevant to the Pension Scheme and the Group Companies’ participation in the Pension
Scheme. So far as the Sellers are aware, the Group Companies comply and have at all
times complied in all material respects with any duty to facilitate access to a
stakeholder pension scheme (under section 3 of the Welfare Reform and Pensions Act
1999) and with any equal treatment or other anti-discrimination requirements relevant
to the provision of retirement or death benefits.

	9	 	Legal Compliance
	 
	9.1	 	Licences and Consents
	 
	 	 	All licences, consents, authorisations, orders, warrants, confirmations, permissions,
certificates, approvals, registrations and authorities necessary for and material to the
carrying on of the business of the Group as now carried on have been obtained, are in force
and, so far as the Sellers are aware, are being complied with in all material respects as at
the date hereof. None of the Sellers is aware of any reason why any of them should be
suspended, cancelled, modified or revoked or not renewed on the same terms (including as a
result of the change of control of the Group Companies).
	 
	9.2	 	Compliance with Laws

	 	9.2.1	 	So far as the Sellers are aware, there is no investigation, disciplinary
proceeding or enquiry by, or order, decree, decision or judgment of, any court,
tribunal, arbitrator, governmental agency or regulatory body outstanding against any
Group Company or any person for whose acts or defaults it may be vicariously liable
which will have a material adverse effect upon the business of any relevant Hotel or
Group Company.
	 
	 	9.2.2	 	No Group Company has received any written notice during the past 12 months
from any court, tribunal, arbitrator, governmental agency or regulatory body with
respect to a violation and/or failure to comply with any such applicable law or
regulation, or requiring it to take or omit any action which in any case would have a
material adverse effect on the business of a Hotel or Group Company.
	 
	 	9.2.3	 	So far as the Sellers are aware, the Group Companies are conducting, and
since 4 April 2001 have conducted, their business materially in accordance with all
applicable laws and regulations.

	10	 	Environment
	 
	10.1	 	For the purposes of this paragraph 10:
	 
	 	 	“Environment” means all or any of the following media (alone or in combination): air
(including the air within buildings and the air within other natural or man-made structures
whether above or below ground); water (including water under or within land or in drains or

154

 

	 	 	sewers, inland waters and coastal waters); soil and land (including surface land, subsurface
strata sea bed and river bed, and natural and man made structures) and any ecological
systems and living organisms supported by these media, including man and his property;
	 
	 	 	“Environmental Authority” means any governmental body or agency or local authority or
competent body having jurisdiction to determine any matter arising under Environmental Law;
	 
	 	 	“Environmental Law” means all statutes, civil or criminal law, common law, bye-laws,
regulations and subordinate legislation, final and binding court and other tribunal
decisions and any statutory guidance, notes, judgments, decisions, notices, orders,
circulars and codes of practice issued thereunder (including, without limitation, the laws
and directives of the European Union) in each case to the extent the same have force of law
in the UK and are applicable to any Group Company at Completion concerning (i) the pollution
or protection of or prevention of pollution to the Environment; (ii) occupational or public
health and safety, including conditions of the workplace; (iii) emissions, discharges or
releases into the Environment of Hazardous Substances or (iv) the release, use, treatment,
storage, management, disposal, transportation, generation or handling of Hazardous
Substances;
	 
	 	 	“Environmental Permit” means any licence, approval, authorisation, permission, notification,
waiver, order or exemption which is issued, granted or required under Environmental Law
which is material to the operation of the business of the Group or the occupation or use of
any of the Properties on or before Completion;
	 
	 	 	“Hazardous Substances” means any natural or artificial substance of any nature (whether in
the form of a solid, liquid, gas or vapour alone or in combination with any other substance)
which is causing or is capable of causing harm or damage to the Environment or to public
health or capable of causing a nuisance, including but not limited to controlled, special,
hazardous, toxic or dangerous wastes or pollutants; and
	 
	 	 	“Relevant Period” means the period from 4 April 2001 ending on the date hereof.
	 
	10.2	 	So far as the Sellers are aware, each Group Company is conducting, and during the
Relevant Period has conducted, the business of the Group in material compliance with
Environmental Law.
	 
	10.3	 	All Environmental Permits required under Environmental Law:

	 	10.3.1	 	have been obtained;
	 
	 	10.3.2	 	are in force;
	 
	 	10.3.3	 	so far as the Sellers are aware, have in all material respects been
complied with during the Relevant Period; and
	 
	 	10.3.4	 	no Group Company has received written notice from any Environmental
Authority that any Environmental Permit will be suspended, cancelled, revoked or not
renewed on substantially the same terms in the 12 months following Completion and, so
far as the Sellers are aware, no circumstances exist which will lead to such
suspension, cancellation, revocation or inability to renew the same on substantially
the same terms in the 12 months following Completion.

	10.4	 	No Group Company has received any written notice during the Relevant Period of any
civil, criminal or regulatory claim, investigation or other proceeding or suit asserting it is
in

155

 

	 	 	breach of or liable under Environmental Law or Environmental Permits by any Environmental
Authority or any third party (including any employee) and, so far as the Sellers are aware
(i) no such claim is pending or threatened and (ii) no circumstances exist which will lead
to such a claim in respect of any material liability under or breach of Environmental Laws
or Environmental Permits.
	 
	10.5	 	The Sellers have disclosed copies of the asbestos registers and management action
plans relating to any Property which have been produced for them within the Relevant Period
and document 36.004, Portfolio Information in the Data Room provides an accurate update of
remediation works undertaken as at the date hereof in relation to asbestos at categories A1-B2
of the Hotels.
	 
	10.6	 	Copies of all final version environmental surveys, audits, assessments, technical
audits, geotechnical findings, soil and groundwater testing and health and safety assessments
relating to any of the Properties produced within the two years prior to the date hereof and
in the Sellers’ possession, together with copies of any final version Phase 2 investigations
or other intrusive environmental investigations which were commissioned by the Sellers for the
purpose of entering into the Posthouse Agreement, have been disclosed in the Data Room.
	 
	11	 	Litigation
	 
	11.1	 	Current Proceedings

	 	11.1.1	 	No Group Company (nor any person for whose acts or defaults a Group
Company is vicariously liable) is involved whether as claimant or defendant or other
party in any claim, legal action, proceeding, suit, litigation, prosecution,
investigation, enquiry, mediation, arbitration or other judicial proceedings or
hearings before any statutory or governmental body, department, board or agency (other
than as claimant in the collection of debts arising in the ordinary course of its
business none of which exceeds £500,000) which is material to the business of any Hotel
or Group Company.
	 
	 	11.1.2	 	No director of any Group Company is involved whether as claimant or
defendant or other in any such claim, legal action or other matter as referred to in
paragraph 11.1.1 of this Schedule 7 to the extent the same relates to the business of
any Hotel or Group Company.

	11.2	 	Pending or Threatened Proceedings
	 
	 	 	So far as the Sellers are aware, no such claim, legal action, proceeding, suit,
litigation, prosecution, investigation, enquiry or arbitration of material importance is
pending or threatened by or against any Group Company.
	 
	11.3	 	No Court Orders etc
	 
	 	 	The Group Companies are not bound by any existing judgments or rulings, and in the last
three years have not given any continuing undertakings arising from legal proceedings to any
court, governmental agency, regulator or third party, which in any case has had a material
adverse effect on the Group.

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	12	 	Insurance
	 
	12.1	 	Particulars of Insurances
	 
	 	 	Accurate summary particulars of the insurances of the Group Companies material to the
business of the Group are contained in the Disclosure Letter to which summaries of the
policies are attached.
	 
	12.2	 	Details on Policies
	 
	 	 	In respect of the insurances referred to in paragraph 12.1:

	 	12.2.1	 	all premiums have been duly paid to date;
	 
	 	12.2.2	 	such insurances are in full force and effect and have not been voided by
the relevant insurers;
	 
	 	12.2.3	 	no Seller has received any notification that such insurances are not valid
or enforceable; and
	 
	 	12.2.4	 	all statutory requirements to purchase insurance have been complied with
by the Group Companies including any statutory requirements to keep evidence of such
insurance.

	13	 	Tax
	 
	 	 	Warranties 13.1.1 to 13.1.3, 13.2, 13.8 and 13.4.1 are given only so far as the Sellers
are aware in relation to any accounting periods ended on or before 29 March 2001 of Group
Companies that were acquired under the Posthouse Agreement.
	 
	13.1	 	Tax Returns and Compliance

	 	13.1.1	 	Each Group Company has at all times submitted all relevant Corporation Tax
returns to the relevant Tax Authorities by the requisite dates.
	 
	 	13.1.2	 	Each Group Company has discharged every Corporation Tax liability which
has fallen due.
	 
	 	13.1.3	 	Each Group Company has properly made all deductions, withholdings and
retentions required to be made in respect of any actual or deemed payment made or
benefit provided on or before Completion and has to the extent required by law
accounted for all such deductions, withholdings and retentions.
	 
	 	13.1.4	 	In the last three years, no Group Company has been subject to any
investigation or non-routine audit or visit by any Tax Authority.

	13.2	 	General Provisions for Tax
	 
	 	 	To the extent required by generally accepted accounting principles, provision or
reserve was made in the Audited Accounts in respect of all material Tax for which each Group
Company at the Accounts Date was or may have been liable or accountable.
	 
	13.3	 	Stamp Duty and SDLT
	 
	 	 	Each document in the possession or under the control of a Group Company, or to the
production of which a Group Company is entitled, and on which a Group Company relies

157

 

	 	 	or may rely on as purchaser or lessee and which in the United Kingdom or elsewhere requires
any stamp or mark to denote that:

	 	13.3.1	 	any duty, tax or fee required to be paid by law has been paid; or
	 
	 	13.3.2	 	a duty tax or fee referred to in this paragraph 13.3 is not required to be
paid, or that the document in question or the Event evidenced by it qualifies from a
relief or exemption from such duty tax or fee; or
	 
	 	13.3.3	 	the document has been produced to the appropriate authority, has been
properly stamped or marked as appropriate

	 	 	and no such document which is outside the United Kingdom would attract stamp duty if it were
to be brought into the United Kingdom.

	 	13.3.4	 	The Sellers warrant to the Purchaser that:

	 	(i)	 	no Group Company has made a claim for relief from stamp duty or
SDLT under a Relieving Provision which may be withdrawn pursuant to the
application of a Clawback Provision including, without limitation, the
application of any Clawback Provision as a result of the execution of this
Agreement;
	 
	 	(ii)	 	no Group Company is liable for stamp duty or SDLT of another
company pursuant to a Secondary Recovery Provision.

	 	13.3.5	 	In this paragraph:

	 	(i)	 	“Relieving Provision” means FA 1930 Section 42; FA 1995 Section
151; FA 1986 Section 76; FA 2003 Schedule 7 paragraph 1; FA 2003 Schedule 7
paragraph 7; and FA 2003 Schedule 7 paragraph 8;
	 
	 	(ii)	 	“Clawback Provision” means FA 2002 Section 111; FA 2002 Section
113; FA 2002 Schedule 35 paragraph 3; Schedule 35 paragraph 4; FA 2003 Schedule
7 paragraph 3; FA 2003 Schedule 7 paragraph 4(7); FA 2003 Schedule 7 paragraph
9; and FA 2003 Schedule 7 paragraph 11;
	 
	 	(iii)	 	“Secondary Recovery Provision” means FA 2002 Schedule 34
paragraph 8; FA 2002 Schedule 35 paragraph 9; FA 2003 Schedule 7 paragraph 5;
and FA 2003 Schedule 7 paragraph 12.

	 	13.3.6	 	With respect to the transfer of the properties set out at Schedule 10 to
the Disclosure Letter, each respective transferor and transferee entered into the
contracts to sell each property (being the contracts referred to in the penultimate
column of the table contained in Schedule 10 to the Disclosure Letter) on or before 9
April 2003 and no contract was subsequently varied.

	13.4	 	Value Added Tax

	 	13.4.1	 	Each Group Company has complied in all respects with all Tax Statutes
relevant to VAT and guidance published by all relevant Tax Authorities in any form
whatsoever and has made and obtained full, complete, correct and up-to-date records and
invoices and other documents appropriate or requisite for the purposes of such Tax
Statutes and guidance.
	 
	 	13.4.2	 	There will be set out in the Disclosure Letter at Completion, with express
reference to this paragraph, full particulars of each item which a Group Company uses
in the

158

 

	 	 	 	course or furtherance of its business and for the purposes of that business,
otherwise than solely for the purpose of selling the item, being items to which Part
XV of the Value Added Tax Regulations 1995 applies and in respect of which the
period of adjustment will not have expired by Completion. Such particulars are
sufficient to enable the Group Companies (or any group of which it will form part
for the purposes of Sections 43 to 43C of the Value Added Tax Act 1994 following
Completion) to comply with their obligations under the said Part XV.
	 
	 	13.4.3	 	There are set out in the Disclosure Letter full particulars of:

	 	(i)	 	any land in which a Group Company has an interest and in
relation to which an election has been made to waive exemption from VAT
pursuant to the provisions of Schedule 10 Value Added Tax Act 1994; and
	 
	 	(ii)	 	any buildings or civil engineering works owned by a Group
Company and completed for the purposes of Group 1, Schedule 9 Value Added Tax
Act 1994 within the last three years.

	 	13.4.4	 	Each Group Company obtains credit for all input tax paid or suffered by it
in relation to its hotel business.

	13.5	 	Residence for Tax purposes
	 
	 	 	Each Group Company was incorporated in the UK and for the purposes of UK Tax is and has
always been resident in the UK and will remain so at the Completion Date and no Group
Company has ever been regarded as being resident or having a permanent establishment, branch
or agency or place of business outside the UK or as being within the charge to Tax of any
jurisdiction other than the UK.
	 
	13.6	 	Transfer pricing
	 
	 	 	No Group Company is a party to any transaction or arrangement with a member of the Sellers’
Group under which after Completion it may be required to pay for or provide any asset or
services or facilities of any kind an amount which is other than that which would prevail
between arm’s length parties.
	 
	13.7	 	Tax avoidance
	 
	 	 	No Group Company has engaged in or been a party to any transaction or transactions which
will result in a liability to Tax for an accounting period starting after Completion and
which is part of a scheme or arrangement in respect of which the main (or one of the main)
purposes was or might be held to have been the avoidance, deferral or reduction of Tax.
	 
	13.8	 	Clearances

	 	13.8.1	 	All consents or clearances which have been obtained in respect of any
transaction to which any Group Company has been a party have been secured on the basis
of full and accurate disclosure to the relevant Tax Authority.
	 
	 	13.8.2	 	To the extent that they relate to Group Companies, true and complete
copies of all applications for clearance made and all consents or clearances obtained
since the Accounts Date (together with all relevant particulars) have been disclosed in
the Disclosure Letter.

159

 

	14	 	Authority and Capacity

	 	14.1.1	 	Each of the Sellers and each Group Company is validly existing and is a
company duly incorporated under the law of its jurisdiction of incorporation.
	 
	 	14.1.2	 	Each of the Sellers has the legal right and all requisite power and
authority to enter into and perform this Agreement and any other documents to be
executed by it pursuant to or in connection with this Agreement.
	 
	 	14.1.3	 	The documents referred to in paragraph 14.1.2 will, when executed,
constitute valid and binding obligations on each of the Sellers, in accordance with
their respective terms. Each of the Sellers has taken or will have taken by Completion
all corporate action required by it to authorise it to enter into and to perform this
Agreement and any other documents to be executed by it pursuant to or in connection
with this Agreement.
	 
	 	14.1.4	 	Compliance with the terms of this Agreement and the documents referred to
in it shall not breach or constitute a default under any order, judgment, decree or
other restriction applicable to any of the Sellers.

	15	 	Brand Standards
	 
	 	 	Other than as disclosed in document 04 009 for each Property in the property
information pack Data Room, as at the date of this Agreement the Hotels (as defined in the
Portfolio Management Agreement) comply in all material respects with the Brand Standards.

160

 

Schedule 8

Warranties given by the Purchaser

(Clause 9.7)

	1	 	Authority and Capacity
	 
	1.1	 	Incorporation
	 
	 	 	Each of the Purchaser and Holdco is validly existing and a company duly incorporated
under the laws of England and Wales.
	 
	1.2	 	Authority to Enter into Agreement

	 	1.2.1	 	Each of the Purchaser and Holdco has the legal right and full power and
authority to enter into and perform this Agreement and any other documents to be
executed by each of them pursuant to or in connection with this Agreement (including,
in the case of the Purchaser, the documents referred to in paragraph 2 of Schedule 5).
	 
	 	1.2.2	 	The documents referred to in paragraph 1.2.1 will, when executed,
constitute valid and binding obligations on the Purchaser and Holdco respectively in
accordance with their respective terms.

	1.3	 	Authorisation

	 	1.3.1	 	Each of the Purchaser and Holdco has taken or will have taken by Completion
all corporate action required by it to authorise it to enter into and perform this
Agreement and any other documents to be executed by it pursuant to or in connection
with this Agreement.
	 
	 	1.3.2	 	Compliance with the terms of this Agreement and the documents referred to
in it shall not breach or constitute a default under any order, judgment, decree or
other restriction applicable to the Purchaser.

	2	 	Shareholders
	 
	2.1	 	The issued and allotted share capital of the Purchaser is held by the following
shareholders in the proportions stated and has been properly and validly issued and allotted
and is fully paid.

	 	 	 	 	 
	Shareholders	 	Shares held in Purchaser	 	Percentage shareholdings
	Holdco

	 	2 ordinary shares of £1 each
	 	100

	2.2	 	The issued and allotted share capital of Holdco is held by the following
shareholders in proportions stated and has been properly and validly issued and allotted and
is fully paid.

	 	 	 	 	 
	Shareholders	 	Shares held in Holdco	 	Percentage shareholdings
	LBREP II LGR

Holdings LLC
	 	4,600 ‘A’ ordinary

shares of £0.01
	 	46
	Sterling Hotels Pte

Limited
	 	4,600 ‘A’ ordinary

shares of £0.01
	 	46

161

 

	 	 	 	 	 
	Shareholders	 	Shares held in Holdco	 	Percentage shareholdings
	Realstar Holdings

(UK) Limited
	 	800 ‘B’ ordinary

shares of £0.01
	 	8

162

 

Schedule 9

Sellers’ Knowledge

	 	 	 	 	 
	(1)	 	(2)	 	(3)
	Person	 	Area of Business/Position	 	Sellers' Warranties
	Jenny Atkinson

	 	Vice President — Human
Resources & Development
	 	8.1 to 8.6 Employment
	Alan Bell

	 	Property Director
	 	4.1 to 4.3 Properties
	Annie Brown

	 	Vice President —
Commercial Development, UK

& Ireland
	 	7.2 Compliance with Contracts

11.2 Pending or Threatened Proceedings
	Larry Callaghan

	 	Senior Vice President —
Information Technology

EMEA
	 	6.3.3, 6.4 Information Technology
	David Coles

	 	Vice President — Pensions
	 	8.7 Pensions
	Catherine Engmann

	 	Company Secretariat
	 	1.3.1 Constitutional Documents
	Marten Foxon

	 	Senior Vice President — Transactions
EMEA
	 	All warranties other than any Tax
Warranties that are given “so far as
the Sellers are aware” or otherwise
qualified by the Sellers’ awareness
or belief
	Colin Garwood

	 	Vice President — Tax
	 	13.1.1 to 13.1.3, 13.2 and 13.4.1
	Mike Goodson

	 	Senior Vice President —
Capital & Asset Management EMEA
	 	All warranties other than any Tax
Warranties that are given “so far as
the Sellers are aware” or otherwise
qualified by the Sellers’ awareness
or belief
	David Osborn

	 	Health & Safety Manager —
Risk Management EMEA
	 	10.2, 10.3, 10.4 Environment
	Carl Ridgley

	 	Property Manager
	 	4.1 to 4.3 Properties
	Rob Shepherd

	 	Vice President — Operations
	 	4.4 Construction

9.1 Licences and Consents

9.2 Compliance with Laws

10.2, 10.3, 10.4 Environment
	Catherine Springett

	 	Head of Company Secretariat
	 	1.2.3, 1.2.5 Insolvency etc.

1.3.1 Constitutional Documents
	Nigel Stocks

	 	Senior Vice President and
General Counsel EMEA
	 	All warranties that are given “so far
as the Sellers are aware”, or
otherwise qualified by the Sellers’
awareness or belief

163

 

Schedule 10

Part 1

Split Contracts

Sale and Purchase Agreement (which includes the tax covenant at Schedule 11) and subsequent
Amendment Agreement relating to the acquisition of the Posthouse Hotels between Hospitality
Holdings Limited, Forte (UK) Limited, Compass Group PLC, NAS Cobalt No. 1 Limited and NAS Cobalt
No. 2 Limited dated 4 April 2001.

Discount Energy Purchase Contract between Combined Power (North) Limited, Combined Power (Central)
Limited, Combined Power (South) Limited, Combined Power (North West) Limited, Combined Power
Limited and Posthouse Hotels Limited dated 9 March 2001.

Master Agreement for the Supply, Installation and Maintenance of the Ascari Guest Information
System between Granada Business Technology Limited and Posthouse Hotels Limited dated 20 March
2002.

Settlement Agreement between SOS Industries Limited, InterContinental Hotels Group (UK) Limited and
InterContinental Hotels Limited dated 10 October 2003.

164

 

Part 2

Purchaser Retained Contracts

International Management Agreement for Crowne Plaza London — Blackfriars between Foray 1068
Ltd and Holiday Inns (UK) dated 29 June 1998.

Management Agreement for Holiday Inn Aberdeen (and subsequent amendment to the Management
Agreement) between Protel (Aberdeen) Limited and Forte (UK) Limited dated 6 August 1996.

Management Agreement for Crowne Plaza Cambridge, Amendment to the Management Agreement and Second
Amendment to Management Agreement between Shamrock Public Houses, Holiday Inn Limited and Holiday
Inns (UK), Inc. dated 14 February 1995.

Management Agreement for Holiday Inn Ealing between Cornwall Gardens PTE Ltd. and Holiday Inns (UK)
Limited dated 10 May 1996.

Management Agreement for Belfast Posthouse Hotel Ormeau Avenue between Peter Gerard Curistan and
Posthouse Hotels Limited dated 23 February 1999.

Agreement for the Provision of Management Services — Spirit managed health club between Glandor
Properties Limited and Spirit Health and Fitness Limited dated 30 January 2001.

Operating and Management Agreement between Bass Hotels & Resorts (UK) Limited and Waterloo Real
Estate Incorporated in respect of Knightsbridge Inter-Continental Hotel, London dated 21 May 1999.

Management Agreement for The Posthouse World Trade Centre Hotel between Posthouse Hotels Limited
and Fedamore Limited dated 7 July 2000.

Disposal Agreement in relation to Plots G & H West Portway Industrial Estate, Andover between
InterContinental Hotels Group (UK) Limited and Central & Country Developments Limited dated 4
November 2004.

165

 

Part 3

Sellers’ Group Contracts

Global Services Agreement (and related Participation Agreement) between Six Continents Hotels,
Inc. and MCI Worldcom Communications, Inc. dated 30 October 2003.

Amendment No. 8 to the MCI Skyline VSAT Service Agreement between MCI Global Resources, Inc.,
Overseas Telecommunications Inc. and Six Continents Hotels, Inc.

Strategic Alliance Agreement and Extension to the Strategic Alliance Agreement between Holiday Inns
of Belgium N.V., Bartech E.M.E.A., S.A.R.L. and Progress Bartech Financing (UK) Limited dated 16
June 1998.

Software Licence Agreement between Newmarket International Limited and Six Continents PLC dated 4
June 2004.

Gas Supply Agreement between Total Gas and Power Ltd and InterContinental Hotels Group dated 1
November 2003.

Agreement for the Supply of Electricity between London Energy plc and InterContinental Hotels Group
plc dated 7 July 2004.

166

 

Schedule 11

Inter-Group Debt

167

 

Schedule 12

Guaranteed Leases

Part 1

Indemnified Leases

Leasehold property

	 	 	 	 	 
	 	 	Duration of Lease	 	 
	Property	 	(Expiry Date)	 	Landlord's Details
	Basildon

Cranes Farm Road

Basildon

Essex

SS14 3DG

	 	19/09/2069
	 	Vexland Limited

10 Upper Berkeley Street

London

W1H 7PE
	 
	 	 	 	 
	Cardiff City

Castle Street

Cardiff

South Glamorgan

CF10 1XD

	 	30/03/2072
	 	The Property Director

Cardiff City Council

County Hall

Atlantic Wharf

Cardiff

CF1 5UW
	 
	 	 	 	 
	Cardiff City — Car Park

Castle Street

Cardiff

South Glamorgan

CF10 1XD

	 	25/01/2022
	 	Cardiff Rugby Football Club Ltd.,

Cardiff Arms Park,

Westgate Street,

Cardiff

CF10 1JA
	 
	 	 	 	 
	Eastleigh

Leigh Road

Eastleigh

Hampshire

SO50 9PG

	 	30/04/2107
	 	Property Services

Eastleigh Borough Council

Civic Offices

Leigh Road

Eastleigh

Hampshire

SO50 9YN
	 
	 	 	 	 
	Gatwick Airport

Povey Cross Road

Horley

Surrey

RH6 0BA

	 	01/11/2085
	 	S & R Management Limited

Russell House

140 High Street

Edgware

Middlesex

HA8 7LW
	 
	 	 	 	 
	Glasgow Airport

Abbotsinch

Paisley

Renfrewshire

PA3 2TR

	 	10/11/2069
	 	BAA Lynton Plc

Albany House

Petty France

London

SW1H 9EE
	 
	 	 	 	 

168

 

	 	 	 	 	 
	 	 	Duration of Lease	 	 
	Property	 	(Expiry Date)	 	Landlord's Details
	Glasgow City

Bothwell Street

Glasgow

G2 7EN

	 	31/08/2070
	 	Development & Regeneration Services

Glasgow City Council

229 George Street

Glasgow

G1 1QU
	 
	 	 	 	 
	Gloucester

Crest Way

Barnwood

Gloucester

GL4 3RX

	 	28/11/2104
	 	Trustees of Barnwood House Trust

c/o Bruton Knowles

65 London Road

Gloucester

GL1 3HF
	 
	 	 	 	 
	Hemel Hempstead

Breakspear Way

Hemel Hempstead

Hertfordshire

HP2 4UA

	 	29/09/2062
	 	English Partnerships

Central Business Exchange

Central Milton Keynes

MK9 2EA
	 
	 	 	 	 
	High Wycombe

Handycross

High Wycombe

Buckinghamshire

HP11 1TL

	 	29/03/2081
	 	Wycombe Borough Council

Queen Victoria Road

High Wycombe

Buckinghamshire

HP11 1BB
	 
	 	 	 	 
	London — Bloomsbury

1 Kings Cross Road

London

WC1X 9HX

	 	18/08/2068
	 	Bloomsbury Property Investment Ltd

Riverside House

11 – 12 Riverside Road

Norwich

Norfolk

NR1 1SQ
	 
	 	 	 	 
	London — Hampstead

215 Haverstock Hill

London

NW3 4RB

	 	29/09/2067
	 	Lakewalk Limited

101 Uphill Road

Mill Hill

London

NW7 4QD
	 
	 	 	 	 
	London — Regents Park

Carburton Street

London

W1W 5EE

	 	03/04/2066
	 	Courtaulds CIF Nominees Ltd (c/o CB Richard Ellis) & S I Pensions

Trustees Ltd (c/o Colliers CRE)

169

 

	 	 	 	 	 
	 	 	Duration of Lease	 	 
	Property	 	(Expiry Date)	 	Landlord's Details
	Manchester Airport CP

Ringway Road

Wythenshawe

Manchester

M90 3NS

	 	26/08/2062
	 	Corporate Property

Manchester Airport

Manchester

M91 8PP
	 
	 	 	 	 
	Newcastle City

New Bridge Street

Newcastle Upon Tyne

NE1 8BS

	 	09/11/2076
	 	Property Services

Newcastle upon Tyne City Council

Civic Centre

Newcastle upon Tyne

NE1 8PP
	 
	 	 	 	 
	Nottingham City

St James’s Street

Nottingham

Nottinghamshire

NG1 6BN

	 	28/09/2068
	 	Topwell No. 9 Ltd & Topwell No. 10 Ltd

c/o Workman & Partners

Hanover House

30 – 32 Charlotte Street

Manchester

M1 4ED
	 
	 	 	 	 
	Plymouth

Cliff Road

The Hoe

Plymouth

Devon

PL1 3DL

	 	05/05/2069
	 	Phillips Pension Fund

The Phillips Centre

420 – 430 London Road

Croydon

CR9 3QR
	 
	 	 	 	 
	Portsmouth

Pembroke Road

Portsmouth

Hampshire

PO1 2TA

	 	22/03/2096
	 	Friends First UK Commercial Property

Limited

Park Lodge

Pixham End

Dorking

Surrey

RH4 1QP
	 
	 	 	 	 
	Swansea

Kingsway Circle

Swansea

West Glamorgan

SA1 5LS

	 	23/06/2058
	 	R G D Thomas

145 / 146 St Helen’s Road

Swansea

SA1 4DE
	 
	 	 	 	 
	Swansea

Retail Unit 398 Kingsway

Swansea

West Glamorgan

SA1 5BZ

	 	23/06/2058
	 	As above.

170

 

	 	 	 	 	 
	 	 	Duration of Lease	 	 
	Property	 	(Expiry Date)	 	Landlord's Details
	Swansea —

Retail Unit 399 Kingsway

1&3 Belle Vue Way

Swansea

West Glamorgan

SA1 5BZ

	 	23/06/2058
	 	As above.
	 
	 	 	 	 
	Swindon

Marlborough Road

Swindon

Wiltshire

SN3 6AQ

	 	02/06/2071
	 	The Council of the Borough of

Thamesdown

Civic Offices

Swindon

Wiltshire

SN1 2JH
	 
	 	 	 	 
	Strand Palace

366-375 Strand

London

	 	01/07/2038
	 	Daejan Investments Limited

52 / 54 High Holborn

London
	 
	 	 	 	 

171

 

Part 2

Other Guaranteed Leases

	 	 	 	 	 
	 	 	Duration of Lease	 	 
	Property	 	(Expiry Date)	 	Landlord's Details
	Carlisle

Parkhouse Road

Carlisle

Cumbria

CA3 0HR

	 	28/09/2092
	 	VR Hotel (Carlisle) Limited

c/o Prime Estates Property

Management

Leconfield House

Curzon Street

London

W1J 5JA
	 
	 	 	 	 
	Bolton

Beaumont Road

Bolton

Manchester North

BL3 4TA

	 	20/09/2092
	 	VR Hotel (Bolton) Limited

c/o Prime Estates Property

Management

Leconfield House

Curzon Street

London

W1J 5JA
	 
	 	 	 	 
	Cardiff- North

Pentwyn Road

Cardiff

South Glamorgan

CF23 7XA

	 	25/07/2071
	 	Restlane Ltd

c/o Prime Estates Property

Management

Leconfield House

Curzon Street

London

W1J 5JA
	 
	 	 	 	 
	Leeds/Bradford

Leeds Road

Bramhope

Leeds

West Yorkshire

LS16 9JJ

	 	28/10/2070
	 	Ellinson Estates Limited

Holtwhite House

92 Chase Side

Enfield

EN2 0QN
	 
	 	 	 	 
	York

Tadcaster Road

York

North Yorkshire

YO24 1QF

	 	23/11/2070
	 	Burford UK Properties Limited

c/o Jones Lang LaSalle

Property Management

22 Hanover Square

London

W1A 2BN

172

 

Schedule 13

Listed Hotels

Holiday Inn Ashford Central

Holiday Inn Bolton M61 J 5

Holiday Inn Bristol Filton

Holiday Inn Cardiff North

Holiday Inn Carlisle M6 J44

Holiday Inn Chester South

Holiday Inn Edinburgh

Holiday Inn Edinburgh North

Holiday Inn Glasgow Airport

Holiday Inn Haydock M6 J23

Holiday Inn London Hampstead

Holiday Inn Rugby/Northampton M1 J18

Holiday Inn Runcorn

Holiday Inn Stoke on Trent M6 J15

Holiday Inn Warrington

Holiday Inn York

Crowne Plaza Leeds

Crowne Plaza Manchester Airport

Express by Holiday Inn Strathclyde

173

 

Schedule 14

[Schedule not used]

174

 

Schedule 15

TPOP

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Full Year	 	TPOP	 	 	Allocated	 	 	Minimum	 	 	 	 	 	 	 	 	 	 	 	 	 
	2005	 	 	 	 	 	Base Cost	 	 	Return	 	 	2005	 	 	2006	 	 	2007	 	 	2007	 
	GBP £'000's	 	£'000	 	 	£'000	 	 	%	 	 	Target	 	 	Target	 	 	Target	 	 	Aspirational	 
	HI Kensington Forum LC
	 	 	9.6	 	 	 	136.2	 	 	 	7.0	%	 	 	9.6	 	 	 	10.4	 	 	 	11.2	 	 	 	12.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 1
— FORUM
	 	 	9.6	 	 	 	136.2	 	 	 	7.0	%	 	 	9.6	 	 	 	10.4	 	 	 	11.2	 	 	 	12.3	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CP London — Heathrow LC
	 	 	5.8	 	 	 	73.3	 	 	 	8.0	%	 	 	5.8	 	 	 	6.4	 	 	 	6.9	 	 	 	7.5	 
	HI Gatwick Airport LC
	 	 	1.6	 	 	 	17.6	 	 	 	8.9	%	 	 	1.6	 	 	 	1.7	 	 	 	1.9	 	 	 	2.0	 
	HI Heathrow Ariel LC
	 	 	1.1	 	 	 	13.4	 	 	 	8.4	%	 	 	1.1	 	 	 	1.2	 	 	 	1.3	 	 	 	1.4	 
	HI Heathrow M4 Jct 4 LC
	 	 	4.0	 	 	 	56.4	 	 	 	7.0	%	 	 	4.0	 	 	 	4.3	 	 	 	4.6	 	 	 	5.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 2 — LONDON AIRPORTS
	 	 	12.5	 	 	 	160.6	 	 	 	7.8	%	 	 	12.5	 	 	 	13.6	 	 	 	14.7	 	 	 	16.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI London — Brent Cross LC
	 	 	1.3	 	 	 	15.5	 	 	 	8.3	%	 	 	1.3	 	 	 	1.4	 	 	 	1.5	 	 	 	1.7	 
	HI London — Mayfair LC
	 	 	0.9	 	 	 	10.1	 	 	 	9.1	%	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 	 	 	1.2	 
	HI London Bloomsbury LC
	 	 	2.8	 	 	 	37.6	 	 	 	7.4	%	 	 	2.8	 	 	 	3.0	 	 	 	3.3	 	 	 	3.6	 
	HI London Regents Park LC
	 	 	2.1	 	 	 	28.2	 	 	 	7.4	%	 	 	2.1	 	 	 	2.3	 	 	 	2.4	 	 	 	2.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 3 — LONDON CITY
	 	 	7.1	 	 	 	91.4	 	 	 	7.7	%	 	 	7.1	 	 	 	7.7	 	 	 	8.3	 	 	 	9.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	CP Manchester Airport LC
	 	 	2.0	 	 	 	24.7	 	 	 	8.1	%	 	 	2.0	 	 	 	2.2	 	 	 	2.4	 	 	 	2.6	 
	CP Birmingham NEC LC
	 	 	2.4	 	 	 	21.6	 	 	 	11.1	%	 	 	2.4	 	 	 	2.6	 	 	 	2.8	 	 	 	3.1	 
	HI Birmingham M6 Jct 7 LC
	 	 	1.0	 	 	 	9.9	 	 	 	9.8	%	 	 	1.0	 	 	 	1.0	 	 	 	1.1	 	 	 	1.2	 
	HI Leicester LC
	 	 	1.5	 	 	 	16.2	 	 	 	9.2	%	 	 	1.5	 	 	 	1.6	 	 	 	1.7	 	 	 	1.9	 
	HI Milton Keynes LC
	 	 	1.5	 	 	 	17.4	 	 	 	8.7	%	 	 	1.5	 	 	 	1.6	 	 	 	1.8	 	 	 	1.9	 
	HI Coventry M6 Jct 2 LC
	 	 	1.0	 	 	 	10.6	 	 	 	9.5	%	 	 	1.0	 	 	 	1.1	 	 	 	1.2	 	 	 	1.3	 
	CP Leeds LC
	 	 	1.2	 	 	 	15.0	 	 	 	8.3	%	 	 	1.2	 	 	 	1.4	 	 	 	1.5	 	 	 	1.6	 
	HI Stoke on Trent M6 Jct 15 LC
	 	 	0.6	 	 	 	6.3	 	 	 	9.7	%	 	 	0.6	 	 	 	0.7	 	 	 	0.7	 	 	 	0.8	 
	HI Peterborough A1 (M) Jct 16 LC
	 	 	0.3	 	 	 	3.5	 	 	 	8.3	%	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.4	 
	HI Derby Nottingham LC
	 	 	0.6	 	 	 	6.1	 	 	 	9.1	%	 	 	0.6	 	 	 	0.6	 	 	 	0.7	 	 	 	0.7	 
	HI Rugby Northampton LC
	 	 	0.5	 	 	 	5.6	 	 	 	8.8	%	 	 	0.5	 	 	 	0.5	 	 	 	0.6	 	 	 	0.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 4 — MIDLANDS
	 	 	12.6	 	 	 	136.9	 	 	 	9.2	%	 	 	12.6	 	 	 	13.7	 	 	 	14.8	 	 	 	16.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Edinburgh LC
	 	 	1.4	 	 	 	19.7	 	 	 	7.2	%	 	 	1.4	 	 	 	1.6	 	 	 	1.7	 	 	 	1.8	 
	HI Glasgow Airport LC
	 	 	0.9	 	 	 	12.0	 	 	 	7.2	%	 	 	0.9	 	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 
	HI Lancaster LC
	 	 	0.4	 	 	 	7.0	 	 	 	6.4	%	 	 	0.4	 	 	 	0.5	 	 	 	0.5	 	 	 	0.6	 
	HI Runcorn LC
	 	 	0.7	 	 	 	8.5	 	 	 	8.5	%	 	 	0.7	 	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 
	HI Chester South LC
	 	 	0.6	 	 	 	6.6	 	 	 	9.4	%	 	 	0.6	 	 	 	0.7	 	 	 	0.7	 	 	 	0.8	 
	HI York LC
	 	 	0.3	 	 	 	2.3	 	 	 	10.7	%	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 
	HI Haydock M6 Jct 23 LC
	 	 	0.4	 	 	 	6.8	 	 	 	6.5	%	 	 	0.4	 	 	 	0.5	 	 	 	0.5	 	 	 	0.6	 
	HI Washington LC
	 	 	0.4	 	 	 	4.5	 	 	 	9.3	%	 	 	0.4	 	 	 	0.4	 	 	 	0.5	 	 	 	0.5	 
	EX Strathclyde LC
	 	 	0.4	 	 	 	4.0	 	 	 	10.2	%	 	 	0.4	 	 	 	0.4	 	 	 	0.5	 	 	 	0.5	 
	HI Wakefield M1 Jct 40 LC
	 	 	0.3	 	 	 	4.5	 	 	 	7.3	%	 	 	0.3	 	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 
	HI Edinburgh North LC
	 	 	0.5	 	 	 	6.6	 	 	 	7.3	%	 	 	0.5	 	 	 	0.5	 	 	 	0.6	 	 	 	0.6	 
	HI Hull Marina LC
	 	 	0.7	 	 	 	8.5	 	 	 	8.1	%	 	 	0.7	 	 	 	0.7	 	 	 	0.8	 	 	 	0.9	 
	HI Warrington LC
	 	 	0.4	 	 	 	4.5	 	 	 	8.3	%	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 	 	 	0.5	 
	HI Leeds Brighouse LC
	 	 	0.9	 	 	 	9.9	 	 	 	8.8	%	 	 	0.9	 	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 5 — NORTH
	 	 	8.3	 	 	 	105.2	 	 	 	7.9	%	 	 	8.3	 	 	 	9.0	 	 	 	9.8	 	 	 	10.7	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Cambridge LC
	 	 	1.4	 	 	 	16.4	 	 	 	8.8	%	 	 	1.4	 	 	 	1.6	 	 	 	1.7	 	 	 	1.9	 
	HI Brentwood M25 Jct 28 LC
	 	 	1.2	 	 	 	16.7	 	 	 	7.0	%	 	 	1.2	 	 	 	1.3	 	 	 	1.4	 	 	 	1.5	 
	HI Basildon LC
	 	 	1.1	 	 	 	10.3	 	 	 	10.5	%	 	 	1.1	 	 	 	1.2	 	 	 	1.3	 	 	 	1.4	 
	HI Hemel Hempstead M1 Jct 8 LC
	 	 	1.4	 	 	 	15.3	 	 	 	9.1	%	 	 	1.4	 	 	 	1.5	 	 	 	1.6	 	 	 	1.8	 
	HI Aylesbury LC
	 	 	0.8	 	 	 	11.3	 	 	 	7.5	%	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 
	HI Norwich LC
	 	 	0.7	 	 	 	7.5	 	 	 	8.8	%	 	 	0.7	 	 	 	0.7	 	 	 	0.8	 	 	 	0.9	 
	HI High Wycombe M40 Jct 4 LC
	 	 	0.8	 	 	 	8.9	 	 	 	8.4	%	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 
	HI Colchester LC
	 	 	0.5	 	 	 	5.6	 	 	 	9.0	%	 	 	0.5	 	 	 	0.5	 	 	 	0.6	 	 	 	0.7	 
	HI Ipswich LC
	 	 	0.8	 	 	 	8.5	 	 	 	9.8	%	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 6 — SE (N OF M4)
	 	 	8.7	 	 	 	100.5	 	 	 	8.6	%	 	 	8.7	 	 	 	9.4	 	 	 	10.2	 	 	 	11.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Reading South LC
	 	 	1.4	 	 	 	16.0	 	 	 	8.5	%	 	 	1.4	 	 	 	1.5	 	 	 	1.6	 	 	 	1.8	 
	HI Maidenhead LC
	 	 	1.8	 	 	 	21.6	 	 	 	8.4	%	 	 	1.8	 	 	 	2.0	 	 	 	2.1	 	 	 	2.3	 
	HI Guildford LC
	 	 	2.4	 	 	 	27.2	 	 	 	8.6	%	 	 	2.4	 	 	 	2.6	 	 	 	2.8	 	 	 	3.0	 
	HI Rochester LC
	 	 	0.7	 	 	 	8.2	 	 	 	8.6	%	 	 	0.7	 	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 
	HI Farnborough LC
	 	 	0.8	 	 	 	11.0	 	 	 	6.9	%	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 
	HI London — Sutton LC
	 	 	1.4	 	 	 	15.3	 	 	 	9.0	%	 	 	1.4	 	 	 	1.5	 	 	 	1.6	 	 	 	1.8	 
	HI Bexley LC
	 	 	0.8	 	 	 	8.9	 	 	 	8.6	%	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 
	HI Maidstone LC
	 	 	0.7	 	 	 	8.0	 	 	 	8.4	%	 	 	0.7	 	 	 	0.7	 	 	 	0.8	 	 	 	0.9	 
	HI Ashford Central LC
	 	 	0.4	 	 	 	3.8	 	 	 	9.5	%	 	 	0.4	 	 	 	0.4	 	 	 	0.4	 	 	 	0.5	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 7 — SE (S OF M4)
	 	 	10.2	 	 	 	120.0	 	 	 	8.5	%	 	 	10.2	 	 	 	11.1	 	 	 	12.0	 	 	 	13.1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Bristol Filton LC
	 	 	1.8	 	 	 	19.3	 	 	 	9.1	%	 	 	1.8	 	 	 	1.9	 	 	 	2.1	 	 	 	2.3	 
	HI Portsmouth LC
	 	 	0.8	 	 	 	8.2	 	 	 	9.7	%	 	 	0.8	 	 	 	0.9	 	 	 	0.9	 	 	 	1.0	 
	HI Cardiff City Centre LC
	 	 	1.0	 	 	 	10.3	 	 	 	9.6	%	 	 	1.0	 	 	 	1.1	 	 	 	1.2	 	 	 	1.3	 
	HI Oxford LC
	 	 	1.4	 	 	 	14.3	 	 	 	10.0	%	 	 	1.4	 	 	 	1.6	 	 	 	1.7	 	 	 	1.9	 
	HI Southampton LC
	 	 	1.0	 	 	 	10.6	 	 	 	9.4	%	 	 	1.0	 	 	 	1.1	 	 	 	1.2	 	 	 	1.3	 
	HI Eastleigh LC
	 	 	1.0	 	 	 	12.0	 	 	 	8.8	%	 	 	1.0	 	 	 	1.1	 	 	 	1.2	 	 	 	1.4	 
	HI Gloucester LC
	 	 	0.8	 	 	 	8.7	 	 	 	9.0	%	 	 	0.8	 	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 
	HI Fareham LC
	 	 	0.8	 	 	 	8.9	 	 	 	9.3	%	 	 	0.8	 	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 
	HI Swindon LC
	 	 	0.3	 	 	 	3.5	 	 	 	8.2	%	 	 	0.3	 	 	 	0.3	 	 	 	0.3	 	 	 	0.4	 
	HI Taunton M5 Jct 25 LC
	 	 	0.9	 	 	 	9.2	 	 	 	9.4	%	 	 	0.9	 	 	 	0.9	 	 	 	1.0	 	 	 	1.1	 
	HI Basingstoke LC
	 	 	0.5	 	 	 	5.9	 	 	 	7.7	%	 	 	0.5	 	 	 	0.5	 	 	 	0.5	 	 	 	0.6	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cluster 8 — SW & WALES
	 	 	10.2	 	 	 	110.9	 	 	 	9.2	%	 	 	10.2	 	 	 	11.1	 	 	 	12.0	 	 	 	13.2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	63 Hotels
	 	 	79.1	 	 	 	961.8	 	 	 	8.2	%	 	 	79.1	 	 	 	86.0	 	 	 	93.0	 	 	 	102.0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Newcastle City LC
	 	 	1.0	 	 	 	9.2	 	 	 	10.8	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Glasgow City West LC
	 	 	0.5	 	 	 	9.4	 	 	 	5.5	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Birmingham City LC
	 	 	1.3	 	 	 	12.7	 	 	 	9.9	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI London Hampstead LC
	 	 	0.1	 	 	 	1.4	 	 	 	6.2	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Bolton M61 Jct 5 LC
	 	 	(0.3	)	 	 	—	 	 	#DIV/0!	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Cardiff North LC
	 	 	(0.1	)	 	 	—	 	 	#DIV/0!	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Carlisle M6 Jct 44 LC
	 	 	0.2	 	 	 	2.8	 	 	 	6.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Leicester West LC
	 	 	0.7	 	 	 	6.3	 	 	 	10.9	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI Leeds / Bradford Airport LC
	 	 	(0.1	)	 	 	—	 	 	#DIV/0!	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	HI South Mimms LC
	 	 	0.5	 	 	 	5.6	 	 	 	8.6	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10 Hotels
	 	 	3.7	 	 	 	47.4	 	 	 	7.7	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	73 Hotels
	 	 	82.7	 	 	 	1,009.2	 	 	 	8.2	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

175

 

Table of Contents

	 	 	 	 	 	 	 
	Contents	 	Page	 
	1	 	Interpretation
	 	 	1	 
	2	 	Agreement to Sell the Assets
	 	 	10	 
	3	 	Consideration
	 	 	11	 
	4	 	Conditions
	 	 	13	 
	5	 	Pre-Completion
	 	 	14	 
	6	 	Completion
	 	 	19	 
	7	 	Pensions and Employee Incentives
	 	 	20	 
	8	 	Post-Completion Adjustments
	 	 	23	 
	9	 	Warranties and Indemnities
	 	 	23	 
	10	 	Limitation of Sellers’ Liability
	 	 	34	 
	11	 	Claims
	 	 	37	 
	12	 	SCPLC Guarantee
	 	 	40	 
	13	 	Confidentiality
	 	 	41	 
	14	 	Other Provisions
	 	 	42	 
	Schedule 1 Details of Shares to be sold	 	 	54	 
	Schedule 2 The Companies and the Subsidiaries	 	 	55	 
	Schedule 3 The Properties (Clause 1.1)	 	 	104	 
	Schedule 4 Documents in the Agreed Terms	 	 	124	 
	Schedule 5 Completion Obligations (Clause 6.2)	 	 	125	 
	Schedule 6 Net Current Asset Statement (Clause 8.1)	 	 	128	 
	Schedule 7 Warranties given by the Sellers (Clause 9)	 	 	139	 
	Schedule 8 Warranties given by the Purchaser (Clause 9.7)	 	 	161	 
	Schedule 9 Sellers’ Knowledge	 	 	163	 

i

 

	 	 	 	 	 	 	 
	Contents	 	Page	 
	Schedule 10	 	 	164	 
	Part 1 Split Contracts	 	 	164	 
	Part 2 Purchaser Retained Contracts	 	 	165	 
	Part 3 Sellers’ Group Contracts	 	 	166	 
	Schedule 11 Inter-Group Debt	 	 	167	 
	Schedule 12 Guaranteed Leases	 	 	168	 
	Schedule 13 Listed Hotels	 	 	173	 
	Schedule 14	 	 	174	 
	Schedule 15 TPOP	 	 	175	 

iiexv4w25

 

Exhibit 4(b)(v)

AMENDED AND RESTATED STOCK PURCHASE AGREEMENT

by and between

SIX CONTINENTS INTERNATIONAL HOLDINGS B.V.

as Seller,

and

HPT IHG-2 PROPERTIES TRUST

as Buyer

February 9, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	1.	 	 	Deadlines and Definitions.
	 	 	2	 
	 	 	 	 	1.1 Deadlines
	 	 	2	 
	 	 	 	 	1.2 Definitions
	 	 	2	 
	 	2.	 	 	Transfer of Shares
	 	 	2	 
	 	3.	 	 	Purchase Price
	 	 	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 Examination
	 	 	3	 
	 	 	 	 	4.4 As-Is, Where-Is, With All Faults Sale
	 	 	4	 
	 	 	 	 	4.5 Termination Right
	 	 	5	 
	 	5.	 	 	Covenants.
	 	 	5	 
	 	 	 	 	5.1 Seller’s Covenants: Effective Date to Closing Date
	 	 	5	 
	 	 	 	 	5.2 Seller’s Covenants After the Closing Date
	 	 	10	 
	 	 	 	 	5.3 Approvals and Notifications
	 	 	10	 
	 	 	 	 	5.4 SEC Matters
	 	 	10	 
	 	 	 	 	5.5 Access to Records
	 	 	10	 
	 	 	 	 	5.6 Required Work; Generators
	 	 	11	 
	 	6.	 	 	Closing
	 	 	11	 
	 	 	 	 	6.1 Closing Mechanics
	 	 	11	 
	 	 	 	 	6.2 Seller’s Deliveries
	 	 	12	 
	 	 	 	 	6.3 Buyer’s Deliveries
	 	 	14	 
	 	7.	 	 	Closing Costs.
	 	 	15	 
	 	 	 	 	7.1 Seller’s Closing Costs
	 	 	15	 
	 	 	 	 	7.2 Buyer’s Closing Costs
	 	 	15	 
	 	8.	 	 	Representations and Warranties.
	 	 	15	 
	 	 	 	 	8.1 Seller’s Representations and Warranties
	 	 	15	 
	 	 	 	 	8.2 [Reserved.]
	 	 	22	 
	 	 	 	 	8.3 Claims of Breach Prior To Closing
	 	 	22	 
	 	 	 	 	8.4 Survival and Limits On Buyer’s Claims
	 	 	23	 
	 	 	 	 	8.5 Buyer’s Representations and Warranties
	 	 	23	 
	 	9.	 	 	Casualty and Condemnation
	 	 	25	 
	 	 	 	 	9.1 Major Event
	 	 	25	 
	 	 	 	 	9.2 Closing Despite Casualty/Condemnation
	 	 	25	 
	 	10.	 	 	Other Conditions to Closing
	 	 	26	 
	 	 	 	 	10.1 Conditions to Buyer’s Obligations
	 	 	26	 
	 	 	 	 	10.2 Conditions to Seller’s Obligations
	 	 	27	 
	 	 	 	 	10.3 Waiver of Conditions
	 	 	27	 
	 	11.	 	 	Transaction Issues: Brokers, Confidentiality and Indemnity.
	 	 	27	 
	 	 	 	 	11.1 Brokers
	 	 	28	 
	 	 	 	 	11.2 Publicity
	 	 	28	 
	 	 	 	 	11.3 Indemnity
	 	 	28	 
	 	12.	 	 	Default At or Prior to Closing.
	 	 	28	 
	 	 	 	 	12.1 Buyer Default
	 	 	29	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	12.2 Seller Default
	 	 	29	 
	 	13.	 	 	Notices
	 	 	30	 
	 	14.	 	 	General Provisions.
	 	 	31	 
	 	 	 	 	14.1 Execution Necessary
	 	 	31	 
	 	 	 	 	14.2 Counterparts
	 	 	31	 
	 	 	 	 	14.3 Successors and Assigns
	 	 	31	 
	 	 	 	 	14.4 Governing Law
	 	 	32	 
	 	 	 	 	14.5 Entire Agreement
	 	 	32	 
	 	 	 	 	14.6 Time is of the Essence
	 	 	32	 
	 	 	 	 	14.7 Interpretation
	 	 	32	 
	 	 	 	 	14.8 Further Assurances
	 	 	32	 
	 	 	 	 	14.9 Exclusive Application
	 	 	32	 
	 	 	 	 	14.10 Partial Invalidity
	 	 	33	 
	 	 	 	 	14.11 No Implied Waiver
	 	 	33	 
	 	 	 	 	14.12 Rights Cumulative
	 	 	33	 
	 	 	 	 	14.13 Attorney’s Fees
	 	 	33	 
	 	 	 	 	14.14 Waiver of Jury Trial
	 	 	33	 
	 	 	 	 	14.15 Facsimile Signatures
	 	 	33	 
	 	 	 	 	14.16 No Recordation
	 	 	34	 
	 	 	 	 	14.17 Exhibits and Schedules
	 	 	34	 
	 	 	 	 	14.18 Jurisdiction
	 	 	34	 
	 	 	 	 	14.19 Currency
	 	 	34	 
	 	15.	 	 	Additional Termination Rights
	 	 	34	 
	 	16.	 	 	Limitation of Liability
	 	 	34	 
	 	17.	 	 	Conflicting Terms
	 	 	35	 
	 	18.	 	 	Nonliability of Trustees
	 	 	35	 

- ii -

 

 

SCHEDULE OF EXHIBITS AND SCHEDULES

	 	 	 	 	 	 	 
	EXHIBIT	 	TITLE	 	REFERENCE PARAGRAPH
	A.
	 	Legal Description of Land

	 	Recitals

	B.
	 	Hotel Lease Agreement

	 	Recitals

	C.
	 	Indemnification Agreement

	 	Recitals

	D.
	 	List of Assets and Liabilities to Be
Transferred Out of the Company Prior to Closing
Date

	 	5.1(K), 6.2(M) and
8.1(BB)

	E.
	 	Puerto Rico Comfort Letter

	 	 	5.1	(L)
	E-1
	 	New Tax Concession
	 	 	 	 
	F.
	 	Tenant Estoppel Certificate

	 	 	5.1	(N)
	G.
	 	Ground Lease Estoppel

	 	 	5.1	(N)
	H.
	 	Affidavit of Title

	 	 	6.2	(D)
	I.
	 	Authority Certificate

	 	 	6.2	(F)
	J.
	 	Reaffirmation of Representations

	 	 	6.2	(G)
	K.
	 	Leases

	 	 	8.1	(E)
	L.
	 	List of Contracts

	 	 	8.1	(E)
	M.
	 	Press Release

	 	 	11.2	 
	N.
	 	Letter Regarding Guarantee

	 	 	6.2	(Q)
	O.
	 	Lessee Guarantee

	 	 	6.2	(T)
	P.
	 	Required Work

	 	 	5.6	 

	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	TITLE	 	REFERENCE PARAGRAPH
	 	A	 	 	Definitions

	 	 	1.2	 
	 	 	 	 	Seller’s Reps and Warranties
	 	 	 	 
	 	6.1	 	 	Closing Procedure

	 	 	6.1	 
	 	8.1	(D)	 	Pending or Threatened Litigation

	 	 	8.1	(D)
	 	8.1	(F)	 	Conditions Materially Affecting the Property

	 	 	8.1	(F)
	 	8.1	(G)	 	Conditions Affecting Utilities and Services

	 	 	8.1	(G)
	 	8.1	(H)	 	Violation of Laws Relating to Zoning, Construction,
Health and Fire Safety, etc.

	 	 	8.1	(H)
	 	8.1	(I)	 	Unpaid (Delinquent) Taxes or Special Assessments

	 	 	8.1	(I)
	 	8.1	(K)	 	Hazardous Materials

	 	 	8.1	(K)
	 	8.1	(M)	 	Material Defects in Property

	 	 	8.1	(M)
	 	8.1	(N)	 	Unpaid Taxes, Etc.

	 	 	8.1	(N)
	 	8.1	(O)	 	Unobtained Licenses and Permits

	 	 	8.1	(O)
	 	8.1	(R)	 	Violation of Laws

	 	 	8.1	(R)
	 	8.1	(T)	 	Material Defaults with Respect to Permitted Title
Exceptions

	 	 	8.1	(T)
	 	8.1	(W)	 	Information with Respect to Leases and Ground Leases

	 	 	8.1	(W)
	 	8.1	(AA)	 	List of Material Governmental Licenses, Permits,
Concessions and Franchises

	 	 	8.1	(AA)

 

 

	 	 	 	 	 	 	 	 	 
	SCHEDULE	 	TITLE	 	REFERENCE PARAGRAPH
	8.1(BB)(iii)
	 	Pending or Threatened Litigation Continuing After Closing

	 	8.1(BB)(iii)

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AMENDED AND RESTATED STOCK PURCHASE AGREEMENT

          THIS AMENDED AND RESTATED STOCK PURCHASE AGREEMENT (this “Agreement”) is made and
entered into as of February 9, 2005, by and between SIX CONTINENTS INTERNATIONAL HOLDINGS B.V., a
Netherlands closed limited liability company (“Seller”), and HPT IHG-2 PROPERTIES TRUST, a
Maryland real estate investment trust (“Buyer”).

R E C I T A L S:

          WHEREAS, Seller owns all of the issued and outstanding shares of common stock, with a par
value of One Hundred Dollars ($100) per share (the “Company Shares”), of Crowne Plaza
(Puerto Rico) Inc., a corporation organized under the laws of the Commonwealth of Puerto Rico (the
“Company”);

          WHEREAS, the Company is the owner of the InterContinental San Juan Resort and Casino in San
Juan, Puerto Rico (the “Hotel”), including (i) fee simple title (“pleno dominio”) to the
land described on Exhibit A (the “Owned Real Property”), (ii) a valid and
assignable leasehold estate in and to the leased land also described on Exhibit A (the
“Leased Real Property”) and (iii) the Property (as hereinafter defined);

          WHEREAS, Seller and Buyer are parties to that certain Stock Purchase Agreement dated as of
December 17, 2004, as amended as of December 22, 2004, January 14, 2005, January 26, 2005, February
2, 2005 and February 8, 2005 (the “Original Agreement”), pursuant and subject to the terms
and conditions of which Buyer has agreed to purchase the Company Shares from Seller;

          WHEREAS, Seller and Buyer desire to amend and restate the Original Agreement as herein
provided;

          WHEREAS, this Agreement contemplates a transaction in which Buyer will purchase from Seller,
and Seller will sell to Buyer, all of the Company Shares for an aggregate purchase price of One
Hundred Nineteen Million and No/100 Dollars ($119,000,000.00), plus an amount equal to the amount
of Working Capital of the Company at Closing and Buyer will thereby acquire all the outstanding
capital stock of the Company, all upon the terms and conditions set forth herein;

          WHEREAS, simultaneously with the execution of this Agreement by Buyer and Seller, Buyer and
certain related parties of Seller and the Company (each, a “Seller Related Party,”
collectively, the “Seller Related Parties”) are entering into an Amended and Restated
Purchase and Sale Agreement (as amended from time to time, the “Purchase and Sale
Agreement”) pursuant to which Buyer will purchase certain other hotels and properties owned by
the Seller Related Parties;

          WHEREAS, a Seller Related Party (such party being the “Lessee”), on one hand, and the
Company or a related party of Buyer (such party being the “Lessor”), on the other hand,
shall enter into a Lease Agreement in the form attached hereto as Exhibit B (the “Hotel
Lease Agreement”) pursuant to which the Lessor will lease the Hotel to the Lessee; and

 

 

          WHEREAS, on the Closing Date, Buyer, Seller and Holiday Hospitality Franchising, Inc., a
Delaware corporation (“HHF”), will enter into an Indemnification Agreement substantially in
the form attached hereto as Exhibit C (the “Indemnification Agreement”), pursuant
to which Seller and HHF will indemnify Buyer and its affiliates with respect to certain potential
losses and damages.

          NOW, THEREFORE, for and in consideration of the promises, covenants, representations and
warranties hereinafter set forth, the sum of Ten Dollars ($10.00) 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 to amend and restate the Original Agreement in its entirety
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 be the same date as the initial “Closing Deadline” set forth
in, and as such date may be extended in accordance with the terms of, the Purchase and Sale
Agreement.
	 
	 	 	 	          “Due Diligence Deadline” shall mean February 9, 2005.

               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. Transfer of Shares. Subject to the terms and conditions of this Agreement on the
Closing Date, Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, all of the
Company Shares for the consideration specified below in Paragraph 3.

          3. Purchase Price. Subject to the terms and conditions of this Agreement, on the
Closing Date, Buyer shall pay to Seller (1) an aggregate amount of One Hundred Nineteen Million and
No/100 Dollars ($119,000,000.00), in cash by wire transfer, for the Company Shares (the
“Purchase Price”), and (2) an aggregate amount, in cash by wire transfer, equal to Thirty
Two Million Seven Hundred Thousand and No/00 Dollars ($32,700,000.00)] on account of the Working
Capital of the Company (such amount, together with the Purchase Price, the “Adjusted Purchase
Price”).

          4. Buyer’s Due Diligence 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, and shall cause the Company to 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 Diligence with respect to the Property. Subject to Paragraphs 7.1 and 7.2, Buyer
covenants and agrees that it will inspect the Hotel at its sole cost and expense and will not allow
any liens to attach against the Hotel as a result of its Due

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Diligence. If Buyer or Seller Terminates this Agreement, then upon written request from
Seller, Buyer shall endeavor to deliver promptly to Seller (at no cost to Buyer) copies of all
Buyer’s Diligence Reports in its possession (except for such materials which Buyer deems
confidential or proprietary), but with no liability for the accuracy thereof and no representation
that Seller or any other party may rely thereon. Seller represents that neither it nor the Company
has altered or intentionally withheld any part of the Property Documents delivered to Buyer.

               4.2 Guidelines for Inspection Rights. Buyer’s rights to conduct Due Diligence shall
be subject to the following further requirements: (a) Due Diligence must not unreasonably interfere
with the operation or management of the Hotel or unreasonably 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 and/or the Company 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 consent shall not be
unreasonably withheld or delayed; (d) Seller or its designated representative shall have the right
to pre-approve (which approval shall not be unreasonably withheld or delayed), 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; (f) Due Diligence activities may not
unreasonably affect the appearance of the Hotel in any way; and (g) Buyer 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 approval shall not
be unreasonably withheld or delayed. Prior to such time as Buyer or any of Buyer’s Representatives
enter the Property, 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 the Company as an additional
insured and provide such additional coverages with appropriate limits as Seller and/or the Company
shall reasonably require, and (ii) provide the Company 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 (i) a so-called “Phase
I” environmental report with respect to the Property or (ii) a zoning report 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.

               4.3 Title and Survey Examination. Seller, on or prior to the Effective Date,
delivered, or caused the Company to deliver, to Buyer a copy of Seller’s or the Company’s, as
applicable, most recent Survey of the Property and a Title Commitment.

               A. Title and Survey Objections. Buyer shall have until the Due Diligence Deadline to
notify Seller in writing of any Title Objections. 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 and disclosed in the Title Commitment or Survey. Seller shall
notify Buyer within three (3) Business Days of its receipt of such notice if Seller has

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elected to Remove, or to cause the Company 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 in writing to
Buyer that Seller will Remove, or cause the Company to Remove, the Title Objections prior to
Closing (other than Required Removal Items), Buyer shall have until the Closing Date to elect in
writing, either to (a) Terminate this Agreement, 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 to Terminate this Agreement. Any
such Title Objection so 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.

               C. Buyer’s Right To Terminate. If Seller fails to Remove or cause to be removed any
Title Objection (other than Required Removal Items) prior to Closing that it has agreed to remove
(or cause to be removed) pursuant to subsection (A) above, then Buyer’s sole remedy shall be to
Terminate this Agreement by written notice to Seller on or prior to the Closing Date, and the
parties shall have no further rights or obligations hereunder except for those which expressly
survive any such termination.

               D. Pre-Closing “Gap” Defects. Whether or not Buyer shall have furnished to Seller any
notice of Title Objections before the Due Diligence Deadline, Buyer may at or prior to Closing
notify Seller in writing of any defects in the Title Commitment or the Survey appearing in the
Title Commitment or the Survey for the first time at any time after the Effective Date. With
respect to any Title Objections set forth in such notice, Buyer shall have the same rights as those
which apply to any notice of defects in title resulting from a notice of title defects by Buyer on
or before the Due Diligence Deadline and Seller shall have the same rights and obligations to cure
(or cause to be cured) the same at or prior to Closing. If necessary, the date for Closing shall
be extended by written notice from Seller to Buyer (by not more than fifteen (15) days) to allow
Seller to cure such pre-closing “gap” defects.

               4.4 As-Is, Where-Is, With All Faults Sale. (a) EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
IN THIS AGREEMENT OR ANY DOCUMENTS TO BE EXECUTED AND DELIVERED BY SELLER AT THE CLOSING, SELLER
DISCLAIMS THE MAKING OF ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE
PROPERTY OR MATTERS AFFECTING THE PROPERTY, WHETHER MADE BY SELLER, ON ITS BEHALF OR OTHERWISE
INCLUDING, WITHOUT LIMITATION, THE PHYSICAL CONDITION OF THE PROPERTY, TITLE TO OR THE BOUNDARIES
OF THE REAL PROPERTY, PEST CONTROL MATTERS, SOIL CONDITIONS, THE PRESENCE, EXISTENCE OR ABSENCE OF
HAZARDOUS WASTES, TOXIC SUBSTANCES OR OTHER ENVIRONMENTAL MATTERS, COMPLIANCE WITH BUILDING,
HEALTH, SAFETY, LAND USE AND ZONING LAWS, REGULATIONS AND

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ORDERS, STRUCTURAL AND OTHER ENGINEERING CHARACTERISTICS, TRAFFIC PATTERNS, MARKET DATA,
ECONOMIC CONDITIONS OR PROJECTIONS, THE FITNESS OF THE PROPERTY FOR USE AS A HOTEL, THE FINANCIAL
PERFORMANCE OR POTENTIAL OF THE PROPERTY AND ANY OTHER INFORMATION PERTAINING TO THE PROPERTY OR
THE MARKET AND PHYSICAL ENVIRONMENTS IN WHICH THEY ARE LOCATED. BUYER ACKNOWLEDGES (I) THAT BUYER
HAS ENTERED INTO THIS AGREEMENT WITH THE INTENTION OF MAKING AND RELYING UPON ITS OWN INVESTIGATION
OR THAT OF THIRD PARTIES WITH RESPECT TO THE PHYSICAL, ENVIRONMENTAL, FINANCIAL, ECONOMIC AND LEGAL
CONDITION OF THE PROPERTY; AND (II) THAT BUYER IS NOT RELYING UPON ANY STATEMENTS, REPRESENTATIONS
OR WARRANTIES OF ANY KIND, OTHER THAN THOSE SPECIFICALLY SET FORTH IN THIS AGREEMENT OR IN ANY
DOCUMENT TO BE EXECUTED AND DELIVERED TO BUYER AT THE CLOSING, MADE BY SELLER. BUYER FURTHER
ACKNOWLEDGES THAT IT HAS NOT RECEIVED FROM OR ON BEHALF OF SELLER ANY ACCOUNTING, TAX, LEGAL,
ARCHITECTURAL, ENGINEERING, PROPERTY MANAGEMENT OR OTHER ADVICE WITH RESPECT TO THIS TRANSACTION
AND IS RELYING SOLELY UPON THE ADVICE OF THIRD PARTY ACCOUNTING, TAX, LEGAL, ARCHITECTURAL,
ENGINEERING, PROPERTY MANAGEMENT AND OTHER ADVISORS. SUBJECT TO THE PROVISIONS OF THIS AGREEMENT,
BUYER SHALL PURCHASE THE PROPERTY IN THEIR “AS IS” CONDITION ON THE CLOSING DATE.

               (b) BUYER ACKNOWLEDGES THAT, TO THE EXTENT REQUIRED TO BE OPERATIVE, THE DISCLAIMERS OF
WARRANTIES CONTAINED IN THIS PARAGRAPH 4.4 ARE “CONSPICUOUS” DISCLAIMERS FOR PURPOSES OF ANY
APPLICABLE LAW, RULE, REGULATION OR ORDER.

               4.5 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 on or prior to the Due
Diligence Deadline. If Buyer does not timely exercise such right to Terminate this Agreement, 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 4.5. 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 4.5 after the Due Diligence Deadline.

       5. Covenants.

               5.1 Seller’s Covenants: Effective Date to Closing Date. Seller agrees that after the
Effective Date:

               A. Capital Stock. Seller shall not, and shall cause the Company not to, redeem,
repurchase, sell, pledge or otherwise dispose of any shares of the capital stock of the

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Company, or issue any new shares of capital stock of the Company, or grant any options,
warrant or other rights to purchase shares of capital stock of the Company, without the prior
written consent of Buyer.

               B. Corporate Documents. Seller shall not, and shall cause the Company not to, cause
any amendment, supplement, waiver or modification to or of any of the Governing Documents of the
Company, without the prior written consent of Buyer.

               C. No Alteration of Title. Seller shall not, and shall cause the Company not to,
transfer or alter or encumber in any way the Company’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 five (5) 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 that is proposed by Seller.

               D. New Leases and Modifications to Existing Leases. If the Company desires to (i)
enter into any new Lease or Ground Lease, (ii) cancel, modify, amend, extend or renew any existing
Lease or any Ground Lease, (iii) consent to any assignment or sublease in connection with any Lease
or any Ground Lease, (iv) accept any prepayment of rent thereunder (more than thirty (30) days in
advance), or (v) take any other material action with respect to any Lease or any Ground Lease,
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
permit the Company 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
five (5) Business Days after Buyer’s receipt of such request and all documents related thereto,
such consent shall be deemed to have been granted). Seller shall promptly provide Buyer with true,
correct and complete copies of any Lease, modification, or amendment of a Lease entered into by the
Company. Notwithstanding any provision of this Agreement to the contrary, without any requirement
for notice or consent from Buyer, the Company may, but shall not be obligated to, take any action
with respect to any Lease that the Lessee may, without the consent of the Lessor, take under the
Hotel Lease Agreement as if it had been in effect as of the Effective Date.

               E. Contracts. If the Company desires to (i) enter into any new Contracts, (ii)
cancel, modify, amend, extend or renew any existing Contracts, (iii) waive any default under or
accept any surrender of any Contracts, or (iv) take any other material action with respect to any
Contract, 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 Company, Seller shall not permit the Company 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 five (5) 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

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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 the Company. Notwithstanding any provision of this
Paragraph 5.1(E) to the contrary, without any requirement for notice or consent from Buyer, the
Company may, but shall not be obligated to, take any action with respect to any Contracts that the
Lessee could, without the consent of Lessor, take under the Hotel Lease Agreement as if it had been
in effect as of the Effective Date.

               F. Mortgage Discharges. On or before the Closing Date, Seller shall record, or cause
to be recorded, at its sole expense, those certain Mortgage Discharges and Cancellations in the
appropriate land records in order to remove certain mortgage or other liens as encumbrances against
the Real Property; as follows: (a) $9,480,000 mortgage recorded at page 121 of volume 750 of
Carolina; (b) 2. $38,000,000 mortgage (reduced to $20,172,961.00) recorded at page 122 of volume
750 of Carolina; (c) a fixture filing recorded at overleaf of page 124 of volume 750 of Carolina;
(d) the $45,000,000 mortgage in favor of Column Financial, Inc.; (e) the Financing Statement in
favor of Column Financial, Inc.; (f) the $38,000,000 mortgage in favor of the Puerto Rico
Industrial, Medical, Higher Education and Environmental Pollution Control Facilities Financing
Authority; (g) the $9,480,000 mortgage in favor of bearer of mortgage note; and (h) the $1,000,000
in favor of Column Financial, Inc. encumbering the leasehold.

               G. Personal Property. Seller shall not, and Seller shall take all actions required to
ensure the Company does not, remove any of the Personal Property Leases, Contracts, or Other
Interests, and the Excluded 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 Hotel.

               H. Other Consents and Approvals. Seller and Buyer shall cooperate and use
commercially reasonable efforts (and Seller shall cause the Company to cooperate and use
commercially reasonable efforts) to promptly obtain all approvals and consents to the Transaction,
such approvals to be in form and substance satisfactory to Seller and Buyer and their respective
counsel, including any approval from any agency or department of the government of Puerto Rico
(including, without limitation, the Puerto Rico Tourism Company and the Commissioner of Financial
Institutions) and any consents or approvals from third parties to any of the Contracts, Leases or
other agreements, provided that exercise of commercially reasonable efforts shall not require the
payment of any fee or other economic consideration for any such approval or consent from any party
other than to a governmental agency.

               I. Intellectual Property. Buyer acknowledges that subject to the Hotel Lease
Agreement, Seller Related 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 the Company pursuant to a separate license
agreement with Lessee or in accordance with the terms of the Hotel Lease Agreement.

               J. Liquor License. Buyer acknowledges and agrees that the Lessee will be responsible
for applying for and obtaining any liquor licenses for the Property from the applicable local
and/or state authorities and otherwise be liable for and conduct in accordance

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with applicable law all liquor operations at the Property on and after the Closing Date in
accordance with the terms and provisions of the Hotel Lease Agreement.

               K. Allowable Transactions. Promptly after the Effective Date, but in any event on or
prior to the Closing Date, Seller shall cause the Company to transfer to Lessee (1) all of its
assets listed on Exhibit D for net book value, and (2) all of its Liabilities of every
nature whatsoever, whether actual or contingent. Further, all employees of the Company shall be
transferred to Lessee, so that as of the Closing Date, the Company shall have no employees.
Finally, Seller shall cause the Company to settle any intercompany accounts between the Company, on
one hand, and Seller or a Seller Related Party, on the other hand. Copies of all documentation
required to accomplish the matters contemplated by this Paragraph shall be provided to Buyer and
its counsel prior to their execution and at Closing. The parties shall cooperate in addressing any
reasonable comments on such documentation provided by Buyer or its counsel.

               L. Puerto Rico Comfort Letter/Tax Concession. Attached as Exhibit E is a copy
of the “comfort” letter dated December 2, 2004 issued by the Puerto Rico Tourism Company. The new
tax concession referenced in such comfort letter was issued on December 15, 2004 and is attached
hereto as Exhibit E-1. Seller shall use commercially reasonable efforts to (and shall cause
the Company to use commercially reasonable efforts to) obtain the approval of the Puerto Rico
Tourism Company for the transfer of the Company Shares from Seller to Buyer as expeditiously as
possible and to have the amended tax concession described therein issued as promptly as possible
after the Effective Date for the benefit of Buyer. The parties shall cooperate in all respects to
obtain the amended concession as expeditiously as reasonably possible following the Effective Date.
In connection with the issuance of the amended concession, each party shall take (and Seller shall
cause the Company to take) all actions reasonably necessary to ensure that “clean” debt
certificates with respect to the Company and Seller (i.e., reflecting no debt) are issued by all
appropriate and required agencies or departments of the government of Puerto Rico (or by any
municipal or local agencies or departments). Seller shall allow Buyer’s representatives to
participate in any written application, hearing, telephone call or meeting involving the Puerto
Rico Tourism Company that in any way relates to the matters contemplated by this paragraph, and
shall provide Buyer and its counsel reasonable notice of any such application, hearing, telephone
call or meeting. Seller shall provide in advance copies of any and all documentation submitted to
the Puerto Rico Tourism Company and shall provide a copy of any and all documentation received from
the Puerto Rico Tourism Company.

               M. Casino License/Commissioner Approval. Promptly after the Effective Date, Seller
shall cause the Company and Lessee to take all required actions reasonably required to ensure that
Lessee obtains a license to operate the casino at the Hotel as expeditiously as reasonably possible
following the Effective Date and in any event on or prior to the Closing Date. Seller shall cause
the Company and Lessee to disclose to the Commissioner of Financial Institutions the fact that the
Company Shares will be transferred from Seller to Buyer. The parties shall cooperate in all
respects to obtain such approvals and license as provided above. Seller shall keep Buyer and its
counsel informed of any and all communications with the Commissioner of Financial Institutions or
other governmental agencies relating to such matters.

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               N. Tenant Estoppels; Ground Lease Estoppels. Seller shall use reasonable efforts to
obtain from each tenant under the Leases an estoppel certificate duly executed by and delivered by
such tenant in the form of Exhibit F (each a “Tenant Estoppel Certificate”) with
respect to each of the Leases and as otherwise required pursuant to the terms of such Leases.
Seller shall obtain an estoppel certificate in the form of Exhibit G (each a “Ground
Lease Estoppel Certificate”) duly executed and delivered by such ground lessor under each
Ground Lease and as otherwise required pursuant to the terms of such Ground Leases.

               O. Change in Brands. Seller shall not permit the Company to change, and it shall
cause its affiliates not to change, the brand now in effect with respect to the Hotel.

               P. Permits. Seller shall use reasonable efforts to obtain all of the permits set
forth in Paragraph 10.1(K).

               Q. Seller’s Actions. Seller shall use reasonable efforts prior to the Closing Date to
satisfy all of the closing conditions set forth in Paragraphs 10.1(K) through (J) and cooperate
with Buyer (as applicable) to complete any documentation required to effectuate the matters
contained therein.

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               5.2 Seller’s Covenants After the Closing Date. All payments received by Buyer or the
Company after the Closing with respect to the revenue generated by the Hotel prior to the Closing
shall belong to Seller and Buyer or the Company, as applicable, shall promptly deliver to Seller
all such payments. Subject to the terms of the Hotel Lease Agreement, all trade payables or other
Liabilities that relate to Hotel prior to the Closing, whether invoices are received by Buyer or
Seller, shall be paid by Seller or Lessee (for the account of the Company if applicable) on or
prior to the date such payment is due. Any bills or other notices received by Buyer that relate to
Hotel operations prior to the Closing shall be promptly delivered to Seller. The provisions of
this paragraph shall survive the Closing.

               5.3 Approvals and Notifications. Each of Buyer and Seller, as applicable, will, as
promptly as practicable after the execution of this Agreement (i) make, or cause to be made, all
such filings and submissions to any governmental authority as may be required or desirable (in
Buyer or Seller’s respective discretion) to consummate the purchase and sale of the Company Shares
in accordance with the terms of this Agreement, and (ii) use its commercially reasonable efforts to
take, or cause to be taken, all other actions which are necessary or advisable (in Buyer or
Seller’s respective discretion) in order for Buyer or Seller to fulfill its obligations under this
Agreement. Each of Buyer and Seller will coordinate and cooperate (and Seller will cause the
Company to coordinate and cooperate) with the other in exchanging such information and supplying
such assistance as may be reasonably requested in connection with the foregoing including, without
limitation, providing copies of notices and information supplied to or filed with any governmental
authority (except for notices and information which Buyer or Seller, as the case may be, acting
reasonably, considers highly confidential and sensitive which may be filed on a confidential basis,
but which may be shared with Buyer’s or Seller’s, as the case may be, outside legal counsel or as
otherwise provided in Paragraph 11.2), and all notices and correspondence received from any
governmental authority.

               5.4 SEC Matters. Seller shall cooperate and shall cause the Company to cooperate with
Buyer or any of its affiliates in connection with the preparation of any documents to be filed
under the Securities Act of 1933, as amended (the “Securities Act”) or the Securities
Exchange Act of 1934, as amended (the “Securities Exchange Act”) and shall use commercially
reasonable efforts to provide such persons with financial statements and other financial
information that Buyer requests relating to periods prior to the Closing Date and to obtain
consents from Seller’s and the Company’s independent accountants in connection therewith. The
provisions of this paragraph shall survive the Closing.

               5.5 Access to Records. After the Closing Date and during normal business hours, Buyer
shall afford to Seller, its lenders, counsel, accountants, and other representatives, reasonable
access to the books, contracts, and records, insofar as the same relate to the Company and the
Property and do not otherwise constitute Confidential Materials and shall furnish such persons with
all information or copies thereof (including financial, tax and operating data) concerning the
Company and the Property as they reasonably may request. Requests for such information shall be
coordinated with Seller’s designated representatives, and Buyer shall use its commercially
reasonable efforts to assist the Seller, its lenders, counsel, accountants, and other
representatives in their examination.

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               5.6 Required Work; Generators.

               (A) Seller shall within twenty four (24) months of the Closing Date:

	 	(i)	 	(a) address the property conditions described
as an “immediate need” in the property condition reports prepared by
ATC Associates, Inc. for the Hotel and attached hereto as Exhibit
P, and (b) mitigate the effects of moisture related issues within
the “mold sensitive” areas identified in the reports by ATC Associates,
Inc for the Hotel; and
	 
	 	(ii)	 	have Seller’s engineers conduct a written
evaluation of the emergency power generators located at the Hotel in
order to ascertain such generator’s ability to function property during
an emergency and the operating noise levels; such review shall present
the engineer’s conclusions as to whether the current condition of the
generators satisfactorily meets the needs of the Hotel, and, if
necessary, suggest a plan to remedy any deficiencies revealed ins such
evaluation. Seller and Buyer agree to cooperate to establish a scope
of work plan and schedule for completion of any deficiency identified
in such review; and
	 
	 	(iii)	 	Seller agrees to complete all projects
actually in process and identified in the property condition reports
prepared by ATC Associates, Inc. for the Hotel.

          6. Closing. Subject to the satisfaction (or waiver) of the conditions precedent set
forth in Paragraphs 10.1 and 10.2, the time and place of Closing shall be held at 9:00 a.m. Eastern
standard time at or through the offices of Buyer’s attorneys on the Closing Date specified by Buyer
to Seller on not less than five (5) Business Days prior written notice or such other time and
location mutually agreed to by the parties.

               6.1 Closing Mechanics. The Closing shall be conducted through escrow with the Closing
Agent using an escrow procedure mutually acceptable to both Seller and Buyer, or, if either Buyer
or Seller determines in good faith that such an escrow Closing is not practical, through a
so-called “New York style” closing (in which authorized representatives of Seller and Buyer attend
the Closing). Seller and Buyer agree to execute and deliver into escrow on the day prior to the
Closing Date (or, if applicable, execute at a “pre-closing” at 10:00 a.m. Eastern standard time on
the last Business Day prior to the Closing Date but not deliver until the “New York style” closing)
all Closing Documents with funding and release to occur on the Closing Date. Upon Closing, Buyer
shall deliver to Seller the Adjusted Purchase Price and the other items required of Buyer as
elsewhere set forth herein, and Seller shall deliver to Buyer the Company Shares and the other
items required of Seller as elsewhere set forth herein. Notwithstanding anything contained in this
Agreement to the contrary, including Paragraph 10, Buyer and Seller agree that the Closing
hereunder and the consummation of the initial transaction under the Purchase and Sale Agreement
shall occur in accordance with the procedure

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set forth in a separate letter agreement duly executed and delivered by each such party in
connection with the Closing.

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

               A. Stock Certificates. Certificate(s) representing the Company Shares, duly endorsed
in blank or accompanied by stock powers or other instruments of transfer duly executed in blank,
bearing or accompanied by all requisite stock transfer stamps, and free and clear of any and all
Liens.

               B. Good Standing Certificate. A certificate of the applicable public official to the
effect that the Company is a validly existing corporation in good standing in the Commonwealth of
Puerto Rico as of a date not more than five (5) days prior to the Closing Date.

               C. Governing Documents. True and correct copies of (i) Governing Documents (other
than the bylaws) of the Company certified by the applicable public official of the Commonwealth of
Puerto Rico, and (ii) bylaws of the Company certified by the Secretary or Assistant Secretary of
the Company.

               D. Affidavit of Title/Gap Indemnity. An Affidavit of Title for the Hotel duly
executed and delivered by Seller with respect to liens and title matters in substantially the form
of Exhibit H or as may otherwise be customary in Puerto Rico or in such form as may be
required by the Title Company.

               E. Closing Statement. A Closing Statement Agreement duly executed and delivered by
Seller in a form sufficient to account for the Transaction.

               F. 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, consisting of
a certificate of an Assistant Secretary of Seller duly executed and delivered by such Assistant
Secretary with respect to the authority to act on behalf of Seller of the individual executing on
behalf of Seller all documents contemplated by this Agreement, in the form of Exhibit I.

               G. Reaffirmation. A reaffirmation of the representations, warranties and covenants
set forth in Paragraph 8.1 hereof in the form of Exhibit J duly executed and delivered by
Seller.

               H. Hotel Lease Agreement. A counterpart of the Hotel Lease Agreement duly executed
and delivered by the Lessee; provided, however, that Buyer and Seller agree that the Hotel Lease
Agreement shall be revised as to form (not substance) as may be necessary to allow it to be
executed as a public instrument and recorded in the Registry of Property of Puerto Rico. Buyer
agrees that Seller or Lessee may file the Hotel Lease Agreement in the said Registry of Property.
Buyer and Seller shall each furnish such evidence of authority to the persons executing the Hotel
Lease Agreement as may be required to accomplish its recording in the Registry of Property of
Puerto Rico. All costs, taxes and expenses associated with the cancellation of any revenue stamps
and recording stamps and vouchers charged or assessed in

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connection with the protocolizacion of the Hotel Lease Agreement in Puerto Rico or the
recording and cancellation of the Hotel Lease Agreement in the Puerto Rico Registry of Property are
herein referred to collectively as “Lease Recording Charges.”

               I. Indemnification Agreement. An executed counterpart of the Indemnification
Agreement duly executed and delivered by Seller and HHF.

               J. 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.

               K. Delivery of Keys and Property Documents. The Property Documents and all keys to
the Property or any portion thereof.

               L. Opinions. One or more written opinions from counsel to Seller in customary form
and substance reasonably satisfactory to Buyer, regarding the authorization, execution, delivery
and enforceability of the (i) Hotel Lease Agreement, (ii) the Indemnification Agreement and (iii)
such other opinions as may be mutually agreed to by the parties.

               M. Transfer of Assets and Assumption of Liabilities. Evidence satisfactory to Buyer
that the assets and Liabilities listed on Exhibit D have been transferred or assigned to
Lessee and that Lessee has assumed and agreed to pay the Company’s Liabilities pursuant to
Paragraph 5.1(K).

               N. Tax Concession. Any documentation filed with the Puerto Rico Tourism Company since
the Effective Date and, if issued, the amended tax concession from the Puerto Rico Tourism Company
and, if issued, the consent to the transfer of the Company Shares to Buyer.

               O. Casino License. Evidence satisfactory to Buyer that the casino license has been
issued to Lessee.

               P. Special Partnership Election. True and correct copies of the election filed by the
Company to elect to be treated as a “special partnership” (the “Special Partnership
Election”) under Subchapter K of Chapter 2 of Subtitle A of the Puerto Rico Internal Revenue
Code of 1994, as amended (the “PR Code”), and the reply received from the Puerto Rico
Treasury Department concerning such election.

               Q. Letter regarding Guaranty. A letter agreement dated as of the Closing Date from
IHG for the benefit of the Beneficial Parties (as defined therein) in the form of Exhibit N
duly executed and delivered by IHG.

               R. Ground Lease Consent and Estoppel. A Ground Lease Estoppel Certificate duly
executed by the respective lessor with respect to each of the Ground Leases and any consents that
may be required as a result of the Transaction under the terms of the Ground Leases in each case in
form and substance reasonably acceptable to Buyer.

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               S. Tenant Estoppel Certificates. Tenant Estoppel Certificates from each of the
tenants under the Leases to the extent received by Seller or the Company.

               T. Lessee Guaranty. The Guaranty Agreement, in substantially the form of Exhibit
O, duly executed and delivered by Lessee.

               U. Post-Closing Agreement. A Post-Closing Agreement dated the Closing Date in the
form reasonably agreed to by the parties hereto, duly executed by Seller.

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

               A. Adjusted Purchase Price. The Adjusted Purchase Price due at Closing under this
Agreement by wire transfer to such bank account outside of Puerto Rico as Seller shall designate.

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

               C. Hotel Lease Agreement. An executed counterpart of the Hotel Lease Agreement.

               D. Indemnification Agreement. An executed counterpart of the Indemnification
Agreement.

               E. Opinions. One or more written opinions from counsel to Buyer in customary form and
substance reasonably satisfactory to Seller, regarding (i) the authorization, execution, delivery
and enforceability of the Hotel Lease Agreement and (ii) such other opinions as may be mutually
agreed to by the parties.

-14-

 

          7. Closing Costs.

               7.1 Seller’s Closing Costs. Seller shall pay the following: (a) the fees and expenses
of Seller’s and the Company’s attorneys, (b) the costs (including recording costs) of any cure of
title defects required of Seller hereunder, (c) the commission due any broker retained by Seller,
(d) half of all escrow agent fees (if any are charged in connection with this Transaction), (e)
half of costs and expenses and premiums in connection with the preparation of the title reports and
the issuance of the Title Policy (including a non-imputation and all other endorsements reasonably
requested by Buyer), (f) half of all recording charges due on recordation of any Closing Documents,
(g) half of the costs and expenses of the Surveyor to prepare the Survey, (h) half of the cost and
expense of any local counsel mutually retained by Buyer and Seller in Puerto Rico, (i) half of the
costs and expenses of all environmental and engineering reports regarding any Property furnished to
Buyer and any follow-up studies required or suggested thereby or otherwise heretofore requested by
Buyer, (j) half of the costs of any zoning reports or related zoning due diligence studies
requested by Buyer in connection with its Due Diligence hereunder and (k) half of the Lease
Recording Charges.

               7.2 Buyer’s Closing Costs. Buyer shall pay the following: (a) except as otherwise
provided herein, the costs of Buyer’s Due Diligence, (b) half of the costs and expenses of all
environmental and engineering reports regarding any property furnished to Buyer and any recommended
and/or follow-up studies required or suggested thereby or otherwise heretofore requested by Buyer,
(c) the fees and expenses of Buyer’s attorneys, (d) the commission due any Broker retained by
Buyer, (e) all lenders’ fees related to any financing to be obtained by Buyer; (f) half of all
recording charges due on recordation of any Closing Documents, (g) half of all escrow agent fees
(if any are charged in connection with this Transaction), (h) half of the costs and expenses from
the Title Company to prepare the title reports, (i) half of the costs, expenses and premiums for
the Title Commitment and Title Policy (including a non-imputation and all other endorsements
reasonably requested by Buyer), (j) half of the costs of the costs of the Surveyor to prepare the
Survey, (k) half of the cost and expense of any local counsel mutually retained by Buyer and Seller
in Puerto Rico, (l) half of the costs of any zoning reports or related zoning due diligence studies
requested by Buyer in connection with its Due Diligence hereunder and (n) half of the Lease
Recording Charges.

          8. Representations and Warranties.

               8.1 Seller’s Representations and Warranties. To induce Buyer to enter into this
Agreement, Seller covenants, represents and warrants to Buyer as follows:

               A. Each of Seller and the Company is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its formation, and has all requisite power and authority
under the laws of such jurisdiction and its respective charter documents to enter into and perform
its obligations under the Closing Documents and to consummate the transactions contemplated
thereby. Each of Seller and the Company is duly qualified to transact business in each
jurisdiction in which the nature of the business conducted by it requires such qualification,
except where such failure to qualify would not have a material adverse effect on Seller or the
transactions contemplated hereby.

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               B. Seller has taken (or will take, prior to the Closing Date) all necessary action to
authorize the execution, delivery and performance of this Agreement and the other Closing Documents
to which it is a party, and upon the execution and delivery of any document to be delivered by
Seller on or prior to the Closing Date, such document shall constitute the valid and binding
obligation and agreement of Seller enforceable against Seller in accordance with its terms, except
as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws of general application affecting the rights and remedies of creditors and general principles
of equity.

               C. The execution, delivery or performance of the Closing Documents by Seller, and the
compliance with the terms and provisions thereof, will not result in any breach of the terms,
conditions or provisions of, or conflict with or constitute a default under, any Contract or
Seller’s Governing Documents or result in the creation of any lien, charge or encumbrance upon any
Property pursuant to the terms of any indenture, mortgage, deed of trust, note, evidence of
indebtedness or any other agreement or instrument by which Seller is bound.

               D. Except as may be set forth on Schedule 8.1(D), to Seller’s Knowledge, no action or
proceeding is pending or threatened, and no investigation looking toward such an action or
proceeding has begun, which (i) questions the validity of this Agreement or any of the other
Closing Documents or any action taken or to be taken pursuant thereto, (ii) will result in any
material adverse change in the business, operation, affairs or condition of the Company or the
Property, (iii) may result in or subject the Company to a material liability, (iv) involves
condemnation or eminent domain proceedings against any material part of the Property or (v) is
likely to materially and adversely affect the ability of Seller to perform its obligations
hereunder.

               E. Other than (i) the Permitted Title Exceptions, (ii) the Leases set forth on Exhibit
K, (iii) the Contracts set forth on Exhibit L, (iv) the Ground Leases, and (v)
agreements and easements with governmental bodies and utility companies which are reasonably
necessary for the development and operation of the Property as contemplated by this Agreement and
the Closing Documents, there are no material agreements, leases, licenses or occupancy agreements
affecting the Property which will be binding on the Company subsequent to the Closing Date.

               F. Except as may be set forth in Schedule 8.1(F) or in the written inspection reports
delivered to Buyer in connection herewith, to Seller’s Knowledge, there is no fact or condition
which materially and adversely affects the physical condition of the Property which has not been
set forth in this Agreement, or in the other documents, certificates or statements furnished to or
obtained by Buyer in connection with the transactions contemplated hereby.

               G. All utilities and services necessary for the use and operation of the Property (including,
without limitation, road access, water, electricity and telephone) are available thereto, and are
of sufficient capacity to meet adequately all needs and requirements necessary for the current use
and operation of the Property. To Seller’s Knowledge, except as may be set forth in Schedule
8.1(G), no fact, condition or proceeding exists which would result in the termination or
impairment of the furnishing of such utilities to the Property.

               H. Except as may be set forth in Schedule 8.1(H), or in the written inspection reports
(including environmental reports) delivered to Buyer in connection herewith, to Seller’s

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Knowledge (i) the Property and the use and operation thereof do not violate any material
federal, state, Commonwealth of Puerto Rico, municipal or other governmental statutes, ordinances,
by-laws, rules, regulations or any other legal requirements, including, without limitation, those
relating to construction, occupancy, zoning, adequacy of parking, environmental protection,
occupational health and safety or fire safety applicable thereto; and (ii) there are in effect all
material licenses, permits and other authorizations necessary for the current use, occupancy and
operation thereof. To Seller’s Knowledge, except as may be set forth in Schedule 8.1(H),
there is no threatened request, application, proceeding, plan, study or effort which would
materially adversely affect the present use or zoning of the Property or which would modify or
realign any adjacent street or highway.

               I. Except as may be set forth in Schedule 8.1(I), other than the amounts disclosed by
current tax bills, true and correct copies of which have been delivered to Buyer, no taxes or
special assessments of any kind (special, bond or otherwise) are or have been levied with respect
to the Property, or any portion thereof, which are outstanding or unpaid, other than amounts not
yet due and payable.

               J. [Reserved.]

               K. Except as may be set forth in Schedule 8.1(K), or in the written inspection reports
(including environmental reports) delivered to Buyer in connection herewith, to Seller’s Knowledge,
none of Seller, the Company or any other occupant or user of any of the Property, or any portion
thereof, have stored or disposed of (or engaged in the business of storing or disposing of) or have
released or caused the release of any hazardous waste, contaminants, oil, radioactive or other
material on the Property, or any portion thereof, the removal of which is required or the
maintenance of which is prohibited or penalized by any applicable federal, state, Commonwealth of
Puerto Rico or local statutes, laws, ordinances, rules or regulations. To Seller’s Knowledge,
except as may be set forth in Schedule 8.1(K), or in the written inspection reports
(including environmental reports) delivered to Buyer in connection herewith, the Property is free
from any such hazardous waste, contaminants, oil, radioactive and other materials, except any such
materials maintained in accordance with applicable law.

               L. To Seller’s Knowledge, except as contained in the written inspection reports (including
environmental reports) delivered to Buyer in connection herewith, there are no defects or
inadequacies in the Property which, if uncorrected, would result in a termination of insurance
coverage or an increase in the premiums charged therefor.

               M. Except as may be set forth in Schedule 8.1(M), or in the written inspection reports
delivered to Buyer in connection herewith, to Seller’s Knowledge, the Property is in good working
order and repair, mechanically and structurally sound, free from material defects in materials and
workmanship and not subject to any unrepaired casualty.

               N. Except as may be set forth in Schedule 8.1(N):

                    (i) All income and other material Tax Returns that are required to be filed on or before the
Closing Date with respect to the Company have been or will be duly and timely filed, and all
material Taxes (whether or not shown on such Tax Returns) that are required

-17-

 

to be paid with respect to the Company have been or will be duly and timely paid. All such
Tax Returns are correct and complete in all material respects. There are no Liens on any of the
Company’s assets or properties resulting from any failure (or alleged failure) to pay any Tax,
other than Permitted Title Exceptions.

                    (ii) The Company has complied in all material respects with all applicable laws, rules and
regulations relating to the payment and withholding of Taxes and has, within the time and the
manner prescribed by Law, withheld and paid over to the proper taxing authorities all material
amounts required to be so withheld and paid over under applicable laws.

                    (iii) No U.S. federal, state, Commonwealth of Puerto Rico, local or foreign audits,
examinations, investigations or other administrative proceedings or court proceedings have been
commenced or are presently pending or threatened with regard to any Taxes or Tax Returns with
respect to the Company. There is no unresolved dispute or claim concerning any Tax liability of
the Company either claimed or raised by any Tax authority in writing.

                    (iv) There are no outstanding requests, agreements, consents or waivers to extend the
statutory period of limitations applicable to the assessment of any Taxes or deficiencies against
the Company. No power of attorney has been granted by or with respect to the Company with respect
to any matter relating to Taxes.

                    (v) The Company is not a party to, is not bound by and has no obligation under any Tax sharing
agreement, Tax indemnification agreement or similar contract or arrangement, and the Company has no
potential liability or obligation to any person as a result of, or pursuant to, any such agreement,
contract or arrangement.

                    (vi) The Company has not received written notice of any claim made by an authority in a
jurisdiction where the Company does not file Tax Returns, that the Company is or may be subject to
taxation by that jurisdiction.

                    (vii) The Real Property constitutes one or more separate parcels for purposes of ad valorem
real property Taxes, and is not subject to a lien for non-payment of real property Taxes relating
to any other property.

                    (viii) Commencing with the Company’s 2001 taxable year, the Company has had in effect a
Special Partnership Election which has not been revoked or altered and remains in full force and
effect. No property of the Company is subject to the “built-in-gain” provisions of Section 1397 of
the PR Code nor to the recapture provisions of Sections 1117 and/or 1118 of the PR Code.

                    (ix) Seller is a direct, wholly-owned subsidiary of Six Continents Overseas Holdings Limited,
a United Kingdom limited company, which is a direct, wholly-owned subsidiary of Six Continents PLC,
a United Kingdom corporation, which is a direct, wholly-owned subsidiary of InterContinental Hotels
Group, PLC, a publicly traded United Kingdom corporation.

-18-

 

               O. Except as may be set forth in Schedule 8.1(O), or in the written inspection reports
delivered to Buyer in connection herewith, there are in effect all material licenses (including
liquor licenses, if required), permits and other authorizations necessary for the current use,
occupancy and operation of the Property.

               P. The Company has good title to the Personal Property free and clear of all Liens other than
Permitted Title Exceptions.

               Q. The Personal Property located at or otherwise used in connection with the Property (i)
complies in all material respects with the Inter Continental brand standards and (ii) is otherwise
at adequate, appropriate levels and at levels that are at least equal to those found at other
InterContinental hotels.

               R.
Except as may be set forth in Schedule 8.1(R), or in the written inspection reports
(including without limitation environmental reports and reports from ATC Associates, Inc.)
delivered to Buyer in connection herewith, to Seller’s Knowledge there exists no violation of any
law, regulation, order or requirement issued by any governmental authority against or affecting the
Property and neither Seller nor the Company has received any notice or order from any governmental
authority requiring any repairs, maintenance or improvements to are Property which have not been
fully performed.

               S. [Reserved.]

               T. Except as may be set forth on Schedule 8.1(T), to Seller’s Knowledge, there exists
no material default on the part of Seller or the Company with respect to any Permitted Title
Exception, other than those defaults which can be cured or discharged by the payment of money and
for which an allowance for the payment thereof has been made at Closing.

               U. Each of the financial statements of HHF heretofore delivered to Buyer have been properly
prepared in accordance with the Accounting Principles (as defined in the Management Agreement (as
defined in the Purchase and Sale Agreement)), is true, correct and complete in all material
respects and fairly present the consolidated financial condition of HHF at and as of the dates
thereof and the results of its operations for the periods covered thereby. Each of the financial
statements for the Hotel heretofore delivered to Buyer has been properly prepared in accordance
with the Accounting Principles, is true, correct and complete in all material respects and fairly
present the financial condition of the Hotel covered thereby at and as of the dates thereof and the
results of their operations for the periods covered thereby.

               V. Neither Seller nor the Company is a debtor in any voluntary or involuntary proceeding in
bankruptcy.

               W. Other than the Leases listed in Schedule 8.1(W), the Ground Leases and the
Permitted Title Exceptions, there are no contracts or agreements with respect to the use or
occupancy of the Property. The copies of the Leases and the Ground Leases heretofore delivered by
Seller to Buyer are a true, correct and complete copies thereof; neither the Leases nor the Ground
Leases have been amended except as evidenced by amendments similarly delivered and

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constitute the entire agreement between the Company and the tenants (or the ground lessor, as
applicable) thereunder. Except as otherwise set forth in Schedule 8.1(W): (i) to Seller’s
Knowledge, each of the Leases is in full force and effect on the terms set forth therein and to
Seller’s Knowledge each tenant, thereunder is legally required to pay all sums and perform all
material obligations set forth therein without concessions, abatements, offsets, defenses or other
basis for relief or adjustment; (ii) to Seller’s Knowledge, each of the Ground Leases is in full
force and effect on the terms set forth therein and the ground lessors thereunder are legally
required to perform all material obligations set forth therein without concessions, defenses or
other basis for relief or adjustment; (iii) no such tenant (or ground lessor with respect to the
performance of any obligations under the Ground Lease, as applicable) has asserted in writing or,
to Seller’s Knowledge, has any defense to, offsets or claims against, rent payable by it or the
performance of its other obligations under its Lease (or Ground Lease, as applicable); (iv) the
Company has no outstanding obligation to provide any such tenant with an allowance to construct, or
to construct at Seller’s expense, any tenant improvements; (v) no such tenant is in arrears in the
payment of any sums or in the performance of any material obligation required of it under its Lease
beyond any applicable grace period, and no such tenant has prepaid any rent or other charges; (vi)
to Seller’s Knowledge, no such tenant or ground lessor, as applicable, has filed a petition in
bankruptcy or for the approval of a plan of reorganization or management under the Federal
Bankruptcy Code or under any other similar state law, or made an admission in writing as to the
relief therein provided, or otherwise become the subject of any proceeding under any federal or
state bankruptcy or insolvency law, or has admitted in writing its inability to pay its debts as
they become due or made an assignment for the benefit of creditors, or has petitioned for the
appointment of or has had appointed a receiver, trustee or custodian for any of its property; (vii)
no such tenant or ground lessor, as applicable, has requested in writing a modification of its
Lease or Ground Lease, respectively, or a release of its obligations under its Lease or Ground
Lease, respectively, in any material respect or has given written notice terminating its Lease or
Ground Lease, or has been released of its obligations thereunder in any material respect prior to
the normal expiration of the term thereof; (viii) except as set forth in the Leases, no guarantor
has been released or discharged, voluntarily or involuntarily, or by operation of law, from any
obligation under or in connection with any Lease or any transaction related thereto; (ix) all
security deposits paid by tenants, are as set forth in Schedule 8.1(W); (x) all lease
commissions due with respect to each of the Leases has been paid, except as otherwise set forth on
Schedule 8.1(W); and (xi) the other information set forth in Schedule 8.1(W) is
true, correct and complete in all material respects. No default or breach exists under any Lease
or Ground Lease on the part of the Company.

               X. The authorized capital stock of the Company consists of five hundred thousand (500,000)
shares of common stock, One Hundred and No/Dollars ($100) par value per share, all of which are
owned by Seller free and clear of all Liens. Each of the Company Shares has been validly issued
and is fully paid and non-assessable with no personal liability attaching to the ownership thereof.
No person other than Seller owns beneficially or otherwise an ownership interest in the Company or
any right, option or warrant to acquire any form of ownership interest in the Company, and the
Company has no commitment to issue any such ownership interest or rights, options or warrants. No
securities of the Company are subject to any contractual restrictions, including any preemptive
right, right of first refusal or similar agreement. All securities of the Company were issued in
compliance with all applicable Federal, Commonwealth of Puerto Rico and local securities laws.

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               Y. (i) Each of the financial statements of the Company for the past five fiscal years (copies
of which have been provided to Buyer) fairly presents in all material respects the financial
position of the Company as of its date or the periods therein set forth, as the case may be, in
each case in accordance with generally accepted accounting principles (“GAAP”) consistently
applied during the periods involved and, with respect to any unaudited interim financial
statements, except for the omission of footnote disclosure and, to the extent consistent with
generally accepted accounting principles, normally recurring year-end audit adjustments.

                    (ii) Subject to normal year-end adjustments, if any, the books of account and other similar
records of the Company are true and complete in all material respects and have been maintained in
accordance with sound business practice. The Company has made and kept books, records and accounts
which, in reasonable detail, accurately and fairly reflect its transactions. The Company maintains
a system of accounting controls sufficient to provide reasonable assurances that, in all material
respects: (a) transactions are executed in accordance with management’s general or specific
authorization; (b) transactions are recorded as necessary (i) to permit preparation of financial
statements in conformity with GAAP and (ii) to maintain accountability for assets; (c) access to
assets is permitted only in accordance with management’s general or specific authorization; and (d)
the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.

               Z. Except for the matters described in Paragraphs 5.1(L) and 5.1(M), the execution,
delivery and performance by Seller of this Agreement require no action by or in respect of, or
filing with, any governmental body, agency, official or authority.

               AA. The Company is not in violation of, or has never violated, any applicable provisions of
any laws, statutes, ordinances or regulations, except for violations that have not had and would
not reasonably be expected to have, individually or in the aggregate, a material adverse effect.
Schedule 8.1 (AA) correctly describes each governmental license, permit, concession or
franchise (a “Permit”) material to the business of the Company, together with the name of
the governmental agency or entity issuing such Permit.

               BB. As of immediately after the Closing, the Company will not:

	 	(i)	 	own the assets or retain the liabilities listed
on Exhibit D;
	 
	 	(ii)	 	have any indebtedness or Liabilities of any
nature whatsoever (whether actual or contingent), other than such
liabilities incurred in the ordinary course of business which are to be
paid by Seller or Lessee after the Closing (which shall be paid in
accordance with Paragraph 5.2);
	 
	 	(iii)	 	except as disclosed on Schedule
8.1(BB)(iii), have any litigation, pending or to the Seller’s
Knowledge, threatened; or
	 
	 	(iv)	 	have any employees, consultants or advisors, or
any obligations of any nature (whether monetary or otherwise) to any
former employees, consultants or advisors.

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               CC. Neither the Company, nor any of its predecessors, has ever conducted any business other
than owning and operating the Hotel or owned any assets except such assets as were necessary or
incidental to owning and operating the Hotel.

               DD. None of this Agreement and the schedules, exhibits and other documents delivered in
connection herewith and therewith, when read together as a whole, and with the documents or
information delivered to Buyer in connection with the transactions contemplated by this Agreement
contains any untrue statement of a material fact or omits to state a material fact necessary in
order to make the statements contained therein not misleading.

               EE. The Designated Representatives are the persons (either individually or as a whole) to whom
any condition which would render any of the statements in Paragraph 8.1 untrue, inaccurate or
incorrect in any material respect (without regard to any knowledge qualifier contained in such
statement) should be communicated to, directly or indirectly, by any general manager of the Hotel
that first knows such condition.

               8.2 [Reserved.]

               8.3 Claims of Breach Prior To Closing. If, at or prior to the Closing, to Seller
Knowledge’s, any Seller’s Warranty becomes untrue, inaccurate or incorrect in any material respect
(without regard to any materiality or knowledge qualifier contained therein), Seller shall give
Buyer written notice thereof within ten (10) 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 to
Buyer’s Knowledge any Seller’s Warranty is or becomes 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 (or cause to be cured) such misrepresentation or breach and shall be
entitled to a reasonable adjournment of the Closing upon written notice to Buyer (not to exceed
fifteen (15) days) to attempt such cure. Seller shall notify Buyer within three (3) Business Days
of its receipt of such notice if Seller has elected to cure such untrue, inaccurate or incorrect
Seller’s Warranty. If Seller fails to respond within such time frame, Seller shall be deemed to
have declined to cure such untrue, inaccurate or incorrect Seller’s Warranty.

          If any Seller’s Warranty is untrue, inaccurate or incorrect in any material respect as of the
date made, and Seller is unable or unwilling to so cure (or cause to be cured) 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
or before the Closing Date, in which event Buyer shall be entitled to recover from Seller within
five (5) days of demand, all of Buyer’s out-of-pocket costs (including legal fees) incurred with
respect to the transactions contemplated by this Agreement.

          If Buyer Knows prior to the Closing Date that any Seller’s Warranty becomes untrue, inaccurate
or incorrect in any material respect through no fault of Seller, and Seller is unable or unwilling
to so cure (or cause to be cured) such misrepresentation or breach, then Buyer, as its sole remedy
shall elect either (a) to waive such misrepresentation or breach and consummate the

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Transaction without any reduction of or credit against the Purchase Price, or (b) to Terminate
this Agreement by written notice given to Seller on or before the Closing Date.

          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 required to
consummate the Transaction without any reduction of or credit against the Purchase Price. If on
the Closing Date, to Buyer’s Knowledge any of Seller’s Warranties are untrue, inaccurate or
incorrect in any material respect and Buyer chooses to consummate the Transaction, Buyer waives any
right to seek damages against Seller if such breach would otherwise have allowed Buyer to terminate
this Agreement pursuant to its terms.

          The untruth, inaccuracy or incorrectness of all 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 equal or exceed one hundred thousand dollars
($100,000.00).

               8.4 Survival and Limits On Buyer’s Claims. Seller’s Warranties (other than 8.1(X),
8.1(BB) and 8.1(CC) which shall survive indefinitely; and 8.1(A), 8.1(B), 8.1(C), 8.1(D), 8.1(K),
8.1(N), 8.1(U), 8.1(V), 8.1(Y), 8.1(Z) and 8.1(DD) which shall survive for the duration of the
applicable statute of limitations) shall survive the Closing and not be merged therein for a period
of one (1) year. Covenants set forth in this Agreement shall survive until fully performed.
Notwithstanding the foregoing, with respect to claims first asserted after the thirtieth
(30th) anniversary of the Effective Date for breaches of Seller’s Warranties under
8.1(X), 8.1(BB) and 8.1(CC) and any corresponding claims under the Indemnification Agreement, Buyer
shall look solely to any collateral hereafter pledged securing Seller’s obligations hereunder for
satisfaction of such claim; provided, however, nothing contained herein is intended
to, nor shall it, limit or reduce the rights of Buyer’s affiliate under the Management Agreement
(as defined in the Purchase and Sale Agreement) or of the Company under the Hotel Lease Agreement
or limit or reduce the obligations of any guarantor of either such agreement.

               8.5 Buyer’s Representations and Warranties. Buyer, as of the Effective Date,
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. Status and Authority of Buyer. Buyer is duly organized and validly existing under
the laws of the jurisdiction of its formation, and has all requisite power and authority under the
laws of such jurisdiction and under its charter documents to enter into and perform its obligations
under the Closing Documents to which it is a party and to consummate the transactions contemplated
thereby. Buyer is duly qualified and in good standing in each jurisdiction in which the nature of
the business conducted by it requires such qualification, except where such failure to qualify
would not have a material adverse effect on Buyer or the transactions contemplated hereby.

               B. Action of Buyer. Buyer has taken (or will take, prior to the Closing Date) all
necessary action to authorize the execution, delivery and performance of each of the Closing

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Documents to which it is a party, and upon the execution and delivery of any document to be
delivered by Buyer on or prior to the Closing Date such document shall constitute valid and binding
obligation and agreement of Buyer enforceable against Buyer in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
of general application affecting the rights and remedies of creditors and general principles of
equity.

               C. No Violations of Agreements. Neither the execution, delivery or performance of the
Closing Documents by Buyer, nor compliance with the terms and provisions thereof, will result in
any breach of the terms, conditions or provisions of, or conflict with or constitute a default
under, or result in the creation of any lien, or charge upon any property or assets of Buyer
pursuant to the terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness or
any other agreement or instrument by which Buyer is bound.

               D. Litigation. To Buyer’s Knowledge, no action or proceeding is pending or
threatened, and no investigation looking toward such an action or proceeding has begun, which (a)
questions the validity of the Closing Documents or any action taken or to be taken pursuant hereto
or (b) is likely to materially and adversely affect the ability of Buyer to perform its obligations
hereunder.

               E. Bankruptcy. Buyer is not a debtor in any voluntary or involuntary proceeding in
bankruptcy.

               F. Reporting. John Murray is the person to whom any condition which would render any
of the statements in this Paragraph 8.5 untrue, inaccurate or incorrect in any material respect
(without regard to any knowledge qualifier contained in such statement) should be communicated to,
directly or indirectly, by any senior employee of HPT that first knows such condition.

               G. Sophisticated Buyer. Buyer is an experienced investor that specializes in the
investment in and ownership of hotel properties in geographically diverse markets. Buyer is a
sophisticated real estate owner and investor with particular experience in the acquisition and
ownership of hotels similar to the Hotel. Buyer further represents and warrants that it is
purchasing the Company Shares solely for investment, with no present intention to resell or
distribute within the meaning of the Securities Act. Buyer hereby acknowledges that the Company
Shares have not been registered pursuant to the Securities Act and may not be transferred in the
absence of such registration or an exemption available under the Securities Act.

-24-

 

          9. Casualty and Condemnation. Seller shall maintain, or cause the Company to
maintain, the property insurance coverage currently in effect for the Property, or comparable
coverage, through the Closing Date. If after the Effective Date and on or prior to the Closing
Date, any portion of the Property 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 (and in no event more than two (2) Business Days after the occurrence of such
casualty or Condemnation Proceeding) 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 or Condemnation Proceeding results in
the Hotel becoming Unsuitable for Its Permitted Use, as reasonably determined by Buyer or Seller,
(such damage or Condemnation Proceeding shall be referred to as a “Major Event”), then both
Buyer and Seller shall have the right to Terminate this Agreement by written notice to the other
party given no later than ten (10) Business Days after the giving of Seller’s notice of such event,
and the Closing Date shall be extended, if necessary, to provide sufficient time for Buyer or
Seller to make such election. In the case of a Major Event, and so long as neither party has
elected to Terminate this Agreement, in addition to the foregoing termination right, Seller or
Buyer shall have the option to extend the Closing Date for up to ninety (90) days for the Hotel (to
allow Seller to repair/restore the Hotel in a manner satisfactory to Buyer). To the extent that
Buyer or Seller elects to postpone Closing pursuant to the provisions of this Paragraph, Buyer
shall have the ability to conduct a limited Due Diligence review (such review shall be limited to
the conditions directly related to any restoration and repair of the Hotel) with respect to the
Hotel up to and including the date that is ten (10) calendar days prior to the extended closing
date for the Hotel and Buyer shall have the right to Terminate this Agreement solely as to the
Hotel for reasons directly related to any restoration and repair thereof.

               9.2 Closing Despite Casualty/Condemnation. If a casualty or Condemnation Proceeding
occurs and neither Buyer nor Seller Terminates this Agreement, 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, or cause to be assigned, 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) Buyer and
Seller shall, or shall cause the Lessor and Lessee of the Hotel, to waive any of their respective
ability to terminate the Hotel Lease Agreement as to the Hotel as a result of the Hotel being
“Unsuitable for Its Permitted Use” pursuant to the terms of the Hotel Lease Agreement; and (d)
Seller shall provide a credit at Closing equal to (i) the Company’s deductible under the Company’s
insurance policy, plus all proceeds or awards previously paid to the Company 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 or the Company in connection with receiving such proceeds or award, (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

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Closing Date, and (C) the reasonable and actual costs incurred by Seller or the Company in
stabilizing and/or repairing the Property following such casualty or condemnation.

          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.

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

               B. Title Policy. At Closing, Company shall have received from the Title Company the
Title Policy (or a specimen or proforma policy thereof or “marked” Title Commitment) together with
an irrevocable written obligation of the Title Company to issue a Title Policy in the form of such
specimen or proforma policy.

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

               D. Closing Deliveries. Buyer shall have received the closing deliveries listed in
Paragraph 6.2 hereof.

               E. Purchase and Sale Agreement. Buyer and Seller Related Parties shall have entered
into and consummated (or shall be in the process of consummating simultaneously with this
Transaction) the initial closing of the transaction affecting all hotels under the Purchase and
Sale Agreement.

               F. Tax Concession/Approval. All actions required to obtain the amendments to the tax
concession and the Puerto Rico Tourism Company approval contemplated by Paragraph 5.1(L) shall have
been taken, in each case in a manner reasonably satisfactory to Buyer.

               G. Casino License. Lessee shall have obtained the license to operate the Hotel’s
casino and shall have taken the actions contemplated by Paragraph 5.1(M).

               H. Pre-Closing Transfer. Seller shall have caused the Company to transfer certain
assets and employees and otherwise effectuated the matters set forth in Paragraph 5.1(K) in each
case in a manner reasonably satisfactory to Buyer.

               I. Working Capital. The Company shall have Working Capital in the aggregate amount of
at least Thirty Two Million Seven Hundred Thousand and No/00 Dollars ($32,700,000.00), plus the sum
of (1) any proceeds received by Seller or the Company on

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account of any claims under property insurance coverage relating to the Property, or
comparable coverage, which has not been applied to repair/restore the Property, (2) any proceeds
received by Seller or the Company on account of any Condemnation Proceeding relating to the
Property which has not been applied to repair/the Property, and (3) an amount equal to the
“deductible” which is absorbed by the Company prior to claiming an insured loss under property
insurance coverage relating to the Property, or comparable coverage for which proceeds have been
paid under (1) above, which has not been applied to repair/restore the Property .

               J. Governmental Approvals. Any other approvals from federal, state, Commonwealth of
Puerto Rico or local government authorities required as a result of the Transactions contemplated
hereby, including if applicable any approvals required by the Hart-Scott-Rodino Antitrust
Improvement Act of 1976 (“HSR”), shall have been obtained.

               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 8.5, shall be true and
correct in all material respects on and as of the Closing Date, except as modified in a manner
permitted by this Agreement, as if made on and as of such date except to the extent that they
expressly relate to an earlier date.

               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. Purchase and Sale Agreement. Buyer and the Seller Related Parties shall have
entered into and consummated (or shall be in the process of consummating simultaneously with this
Transaction) the initial closing of the transaction affecting all hotels under the Purchase and
Sale Agreement.

               D. Closing Deliveries. Seller shall have received the closing deliveries listed in
Paragraph 6.3 hereof.

               E. Casino License. Lessee shall have obtained the license to operate the Hotel’s
casino and shall have taken the actions contemplated by Paragraph 5.1(m).

               F. Governmental Approvals. Any other approvals from federal, state, Commonwealth of
Puerto Rico or local government authorities required as a result of the Transactions contemplated
hereby, including if applicable any approvals required by the HSR, shall have been obtained.

               10.3 Waiver of Conditions. No waiver of a closing condition by either party shall
limit its rights to seek indemnification or any other legal remedy available to such party.

          11. Transaction Issues: Brokers, Confidentiality and Indemnity.

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               11.1 Brokers. Seller and Buyer expressly acknowledge that Seller’s Broker has acted
as the exclusive broker with respect to the Transaction and with respect to this Agreement. Seller
shall pay any brokerage commission due to Seller’s Broker in accordance with the separate agreement
between Seller and Seller’s Broker. Seller agrees to hold Buyer harmless and indemnify Buyer from
and against any and all Liabilities (including reasonable attorneys’ fees, expenses and
disbursements) suffered or incurred by Buyer as a result of any claims by Seller’s Broker or any
other party claiming to have represented Seller as broker in connection with the Transaction.
Buyer agrees to hold Seller harmless and indemnify Seller from and against any and all Liabilities
(including reasonable attorneys’ fees, expenses and disbursements) suffered or incurred by Seller
as a result of any claims by any other party claiming to have represented Buyer as broker in
connection with the Transaction.

               11.2 Publicity. Except for the Press Releases or Public Announcements the forms of
which are attached hereto as Exhibit M, or if no such forms are attached, such other forms
as are reasonable under the circumstances or as may be required by law or as may be reasonably
necessary, on a confidential basis, to inform any rating agencies, potential sources of financing,
financial analysts, to perform its obligations and duties contained in this Agreement or to receive
legal, accounting and/or tax advice, the parties agree that no party shall, with respect to this
Agreement and the transactions contemplated hereby, contact or conduct negotiations with public
officials, make any public pronouncements, issue press releases or otherwise furnish information
regarding this Agreement or the transactions contemplated hereby to any third party without the
consent of the other party, which consent shall not be unreasonably withheld; provided, however,
that, if such information is required to be disclosed by law, the party so disclosing the
information shall use reasonable efforts to give notice to the other parties as soon as such party
learns that it must make such disclosure.

          Buyer acknowledges that certain Ground Leases that affect the Hotel require landlord consent
to any assignment of those rights and/or release of the Company or Seller from continued liability
under such lease. Buyer hereby consents to Seller’s disclosure to any such landlords of Buyer’s
identity and financial information. Buyer agrees to cooperate (at no material cost and expense)
with Seller and any such landlord and to provide such Buyer financial information as may be
reasonably requested by such landlord in order to consent to the proposed assignment.

               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 (a) the
breach of the terms of Paragraph 11.2 or (b) 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 (b) shall not apply to the mere
discovery of a pre-existing environmental 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.

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               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, provided Seller
is not in 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, provided the deposit
contemplated by Paragraph 18 of the Purchase and Sale Agreement, as amended from time to time, has
not been posted by Buyer, to receive liquidated damages equal to five percent (5%) of the Purchase
Price on or prior to the Closing Date as full liquidated damages 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 liquidated damages are 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. 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 is Seller’s sole and exclusive remedy in the event of a default under this
Agreement 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, (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. To the extent that Seller’s
Related Party is entitled to the deposit in accordance with the Purchase and Sale Agreement, Seller
shall not be able to receive any damages hereunder for Buyer’s breach of the terms hereof.

               12.2 Seller Default. If Seller defaults in the observance or performance of its
covenants and obligations hereunder, 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, 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 one hundred eighty (180) days after the occurrence
of Seller’s alleged default, unless Buyer is legally precluded from bringing such suit pursuant to
bankruptcy law requirements within such one hundred and eighty day period or (ii) to Terminate this
Agreement by the delivery to Seller of notice of such termination and Buyer shall be entitled to
all of its out-of pocket costs (including legal fees) incurred in connection with the transactions
contemplated by this Agreement payable within five (5) days of demand; provided however that Buyer
shall not be able to recover any of its out-of-pocket costs (including legal fees) to the extent
Seller fails or is unable to deliver any Ground Lease Estoppel Certificate pursuant to Paragraph
5.1(N), so long as such failure or inability is not due to the fault of Seller. Prior to the
Closing, 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 a 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

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within 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, (b) certified mail, return receipt
requested, (c) a nationally recognized overnight delivery service (such as Federal Express, UPS
Next Day Air or Airborne Express), or (d) telecopying to the telecopy number listed below (provided
that a copy of such notice is also sent within one Business Day 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 in accordance with the provisions hereof. 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):

	 	 	 
	If to Seller:

	 	InterContinental Hotels Group

Three Ravinia Drive

Suite 100

Atlanta, Georgia 30346-2121

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 30346-2121

Attention: Legal Dept. - Paul Huang

Telephone No.: (770) 604-2644

Telecopy No.: (770) 604-5075
	 
	 	 
	With a copy to:

	 	Alston & Bird LLP

1201 West Peachtree Street

Atlanta, GA 30309-3424

Attention: Timothy J. Pakenham

Telephone No.: (404) 881-7755

Telecopy No.: (404) 881-7777

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	If to Buyer:

	 	Hospitality Properties Trust

400 Centre Street

Newton, MA 02458

Attention: John Murray

Telephone No.: (617) 964-8389

Telecopy No.: (617) 969-5730
	 
	 	 
	With a copy to:

	 	Sullivan & Worcester LLP

One Post Office Square

Boston, MA 02109

Attention: Warren M. Heilbronner

Telephone No.: (617) 338-2946

Telecopy No.: (617) 338-2880

          14. General Provisions.

               14.1 Execution Necessary. This Agreement shall not be binding upon Seller or Buyer,
respectively, until fully executed and delivered by a proper official of Seller, or Buyer,
respectively, and no action taken by either of their representatives shall be deemed an acceptance
of this Agreement until this Agreement has been so executed by them and delivered to each other.

               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 in whole or in part to any
other party other than its affiliates 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. Notwithstanding the foregoing, Buyer shall have the right to cause Seller
to transfer the Company Shares or portions thereof to an affiliate of Buyer which is wholly owned
by Buyer or wholly owned by the owners of Buyer, or to an affiliate which is owned, in part, by
Buyer and which is controlled by Buyer as to property, operating and management issues, and which
affiliate shall be designated in writing by Buyer, together with delivery to Seller of evidence
reasonably satisfactory to Seller of the valid legal existence of Buyer’s assignee, its
qualification (if necessary) to do business in the jurisdiction in which the Property is located
and of the authority of Buyer’s affiliate to execute and deliver any and all documents required of
Buyer under the terms of this Agreement, which items shall be received by Seller not less than
three (3) Business Days prior to the Closing Date. Notwithstanding the foregoing, the exercise of
such right by Buyer shall not relieve Buyer of any of its obligations and liabilities hereunder
including obligations and liabilities which survive the Closing or the termination of this
Agreement, nor shall any such assignment alter, impair or relieve such affiliate from the waivers,
acknowledgements and agreements of Buyer set forth herein, all of

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which are binding upon the affiliate(s) of Buyer. In the event of any permitted designation
by Buyer, any affiliate shall assume any and all obligations and liabilities of Buyer under this
Agreement but, notwithstanding such assumption, Buyer shall continue to be liable hereunder.

               14.4 Governing Law. This Agreement shall be governed by the laws of the State of New
York.

               14.5 Entire Agreement. This Agreement and all the exhibits and schedules 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 any
letter of intent or similar proposals or correspondence between Buyer and Seller 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. Even though the defined term for a party
hereunder may be used in the singular in this Agreement such term shall also include any other
person or entity jointly and severally included within such definition. 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 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 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.

               14.9 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
(and their permitted successors or assigns) hereto any right, remedy or claim under or by

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reason of this Agreement. Except as set forth herein, all terms and conditions of this
Agreement shall be for the sole and exclusive benefit of the parties hereto and may not be
assigned.

               14.10 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 affects any material aspect of this Transaction, the party
for whose benefit such excused provision was inserted may request that the other party enter into a
modification or separate agreement which sets forth in valid fashion the substance of such
offending provision in a manner which counsel to both parties determine is valid.

               14.11 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.

               14.12 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.

               14.13 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 attorneys’ fees,
expended or incurred in connection therewith.

               14.14 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.

               14.15 Facsimile Signatures. Signatures to this Agreement transmitted by telecopy or
other electronic means 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 or
electronic signature and shall accept the telecopied or electronic signature of the other party to
this Agreement.

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               14.16 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, (a) if the same is
permitted pursuant to applicable Laws, Buyer shall be entitled to record a notice of lis pendens
against the Owned Real Property 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, and
(b) Buyer shall be entitled to file a copy of all or a portion of this Agreement (or make specific
reference hereto) with the Securities and Exchange Commission in connection with any of its filings
required by Law or regulation pertaining thereto.

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

               14.18 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 New York, State of New York and the United States District Court for the
Southern District of New York, 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 Paragraph shall survive the Closing (and not be merged therein) or any earlier
termination of this Agreement.

               14.19 Currency. Each reference herein to any dollar amount is a reference to such
amount of United States dollars.

          15. Additional Termination Rights. (a) If the Transaction has not occurred on or
prior to December 31, 2005, other than by reason of a default by a party hereto, and unless
mutually extended by the parties hereto, this Agreement shall automatically Terminate and this
Agreement shall be of no force and effect between the parties except for those obligations which
survive such termination. (b) If any condition to the Closing is not satisfied or waived by March
31, 2005 either party, so long as such party is not in default hereunder, may Terminate this
Agreement by written notice to the other party (subject to any rights of such non-defaulting party
hereunder) and this Agreement shall be of no force and effect between the parties except for those
provisions which expressly survive such termination. (c) On or before the Closing Date, if the
Purchase and Sale Agreement is terminated then this Agreement shall also Terminate, provided
however that if such termination results from (i) a default by a “Seller” thereunder, then Buyer
shall have all of its rights hereunder against Seller as if Seller was in default hereunder; or
(ii) a default by the “Buyer” thereunder, then Seller shall have all of its rights hereunder
against Buyer as if Buyer was in default hereunder.

          16. Limitation of Liability. No advisor, trustee, director, officer, employee,
beneficiary, shareholder, member, partner, participant, representative or agent of Buyer or Seller

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shall have any personal liability, directly or indirectly, under or in connection with this
Agreement or any agreement made or entered into pursuant to the provisions of this Agreement, or
any amendment or amendments to any of the foregoing made at any time or times heretofore or
hereafter. In no event shall any of Buyer or Seller be entitled to punitive, consequential or
special damages under this Agreement, and each of Buyer and Seller hereby waives any right to
claim, pursue or collect same. The provisions of this Paragraph shall survive any termination of
this Agreement and the Closing hereunder.

          17. Conflicting Terms. Seller acknowledges that certain provisions in this Agreement
and the Indemnification Agreement may be inconsistent or may conflict with one another. In the
event of an inconsistency or conflict between the terms of this Agreement and the terms of the
Indemnification Agreement, the terms of the Indemnification Agreement shall control.

          18. Nonliability of Trustees. THE DECLARATION OF TRUST ESTABLISHING BUYER, COPIES OF
WHICH, TOGETHER WITH ALL AMENDMENTS THERETO (THE “DECLARATION”), IS DULY FILED WITH THE
DEPARTMENT OF ASSESSMENTS AND TAXATION OF THE STATE OF MARYLAND, PROVIDES THAT, AND SELLER HEREBY
AGREES THAT, THE NAME “HPT IHG-2 PROPERTIES TRUST” REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE, OFFICER,
SHAREHOLDER, EMPLOYEE OR AGENT OF BUYER SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR
SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM AGAINST, BUYER. ALL PERSONS DEALING WITH BUYER, IN ANY
WAY, SHALL LOOK ONLY TO THE ASSETS OF BUYER, FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY
OBLIGATION.

[Signatures on the Following Page]

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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:

SIX CONTINENTS 

INTERNATIONAL HOLDINGS B.V.,

a Netherlands closed limited liability company

 	 
	 	By:  	 	 
	 	 	Robert Chitty, its attorney-in-fact 	 
	 	 	pursuant to a power of attorney
dated July 12, 2004 	 
	 
	 
	 	BUYER:

HPT IHG-2 PROPERTIES TRUST,

a Maryland real estate investment trust

 	 
	 	By:  	 	 
	 	 	Name:  	John G. Murray 	 
	 	 	Title:  	President 	 
	 

 
[Signature Page to Amended
and Restated Stock Purchase Agreement]

 

 

SCHEDULE A

attached to and made a part of that certain:

Amended and Restated Stock Purchase Agreement

by and between

SIX CONTINENTS INTERNATIONAL HOLDINGS B.V.

as Seller

and

HPT IHG-2 PROPERTIES TRUST

as Buyer

Dated as of February 9, 2005

          “Adjusted Purchase Price” is defined in Paragraph 3 of this Agreement.

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

          “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which
banking institutions in The Commonwealth of Massachusetts or the State of Georgia are authorized by
law or executive action to close.

          “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 or Buyer’s Representatives in connection with Buyer’s Due
Diligence.

          “Buyer’s Knowledge” or “Buyer Knows” shall mean the actual (and not the imputed or
constructive) knowledge of John Murray of Buyer.

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

          “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.

          “Company” is defined in the Recitals to this Agreement.

          “Company Shares” is defined in the Recitals to this Agreement.

          “Condemnation Proceeding” shall mean any proceeding in condemnation, expropriation, 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 excerpts of 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 Company Shares 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, the Company, 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,
any direct or indirect owner of any beneficial interest in Seller, the Company or the Company’s
property manager which such party deems proprietary or confidential.

          “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 any license to
the Company of computer hardware, software or systems. A summary list of the Contracts (including
identity of contract parties and type of service) is shown on Exhibit L and made a part
hereof.

          “Designated Representatives” shall mean Robert Chitty, Robert Gunkel and Thomas
Brettschneider, each of IHG.

          “Due Diligence” shall mean the investigation by Buyer and Buyer’s Representatives of the
feasibility and desirability of acquiring the Property as a result of Buyer’s purchase of the
Company Shares, including all audits, surveys, examinations, inspections, investigations, tests,
studies, analyses, appraisals, evaluations, investigations and verifications with respect to the
Property, the Property 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,

-2-

 

engineers, architects and/or entomologists as Buyer requires, tests and assessments
with respect to environmental matters, soil tests, asbestos analysis, mold 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 December 17, 2004, the date of the Original Agreement.

          “Excluded Property” shall mean the assets to be transferred by the Company pursuant to clause
(1) of Paragraph 5.1(K).

          “GAAP” is defined in Paragraph 8.1(Y) of this Agreement.

          “Governing Documents” shall mean the certificate or articles of incorporation, bylaws,
declaration of trust, formation or governing agreement or other charter documents or organizational
or governing documents or instruments.

          “Ground Lease” shall mean the ground leases granting the Company’s interest in the Leased Real
Property.

          “Ground
Lease Estoppel Certificate” is defined in Paragraph 5.1(N) of this Agreement.

          “HHF” is defined in the Recitals to this Agreement.

          “Hotel” is defined in the Recitals to this Agreement.

          “Hotel Lease Agreement” is defined in the Recitals to this Agreement.

          “IHG” shall mean InterContinental Hotels Group PLC, a corporation organized under the laws of
the United Kingdom.

          “Indemnification Agreement” is defined in the Recitals to this Agreement.

          “Land” shall mean those certain tracts or parcels of land (whether owned or leased), more
particularly described on Exhibit A.

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

          “Lease Recording Charges” is defined in Paragraph 6.2(H).

          “Leased Real Property” is defined in the Recitals to this Agreement.

          “Leases” shall mean all leases, subleases, rental agreements and other occupancy agreements
for the use or occupancy of any portion of the Real Property, or improvements

-3-

 

located thereon, if
any, together with all amendments to, modifications of, renewals and extensions thereof, but
excluding the Hotel Lease Agreement.

          “Lessee” is defined in the Recitals to this Agreement.

          “Lessor” is defined in the Recitals to this Agreement.

          “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. In no event shall “Liabilities” include the right of the Buyer,
Seller or the Company to collect punitive, consequential, or special damages under this Agreement,
and each of Buyer, Seller and the Company, by and through the Seller, waive any right to collect
the same.

          “Lien” shall mean any mortgage, charge, 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, construction lien, judgment or similar encumbrance against the Property
or the Company Shares of a monetary nature.

          “Major Event” is defined in Paragraph 9.1 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 or liquor licenses), permits and other written authorizations necessary for the use,
operation or ownership of the Real Property, and (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.

          “Owned Real Property” is defined in the Recitals to this Agreement.

          “Permit” is defined in Paragraph 8.1(AA) of this Agreement.

          “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 4.5 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 Liens for real estate Taxes
and assessments not yet due and payable as of the Closing Date; (c) local, state, federal or
foreign (if applicable) zoning and building Laws; (d) the Record Exceptions disclosed by the Title
Commitment and not Removed or required to be Removed as provided in Paragraph 4 hereof; (e) the
state of facts disclosed by a current Survey of the Land obtained by Buyer and not
Removed or required to be Removed as provided in Paragraph 4 hereof; 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.

-4-

 

          “Personal Property” shall mean (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 Property
and any improvement on the Land; (c) the food and beverage inventory of the Hotel; and (d) all
tangible personal property, including, but not limited to, all “Inventories”, as such term is
defined in the Uniform System of Accounts, and all other tools, vehicles, supplies, artwork,
furniture, furnishings, machinery, equipment, specialized hotel equipment and other tangible
personal property, in each case, owned or leased by Seller (in its own name or by and through the
Company) in connection with the ownership, operation or maintenance of the Hotel, including without
limitation all china, glassware, silverware, linens, towels, curtains, uniforms, works of art,
engineering, maintenance, and housekeeping supplies, draperies, materials and carpeting, used or
intended for use, but not for sale, in connection with the operation of the Hotel, all equipment
used in the operation of the kitchen, dining rooms, lounges, bars, laundry, dry cleaners, lobby,
reservation desk and all supplies, merchandise, food and beverages held for sale in connection with
the operation of the Hotel, which are on hand on the Effective Date; but specifically excluding (i)
any Confidential Materials and (ii) any computer hardware, software, or system that is licensed to
Seller.

          “PR Code” is defined in Paragraph 6.2P of this Agreement.

          “Proceedings” is defined in Paragraph 14.18 of this Agreement.

          “Property” shall mean the Real Property, the Leases, the Contracts, the Personal Property and
the Other Interests, but specifically excluding any right or interest to any liquor license rights
and intellectual property.

          “Property Documents” shall mean all books, records and files of Seller and the Company and of
the management agent for the Property related to the Property (other than Confidential Materials;
provided, however that Seller shall make available extracts of non-confidential information
contained in such books, records or files).

          “Purchase and Sale Agreement” is defined in the Recitals to this Agreement.

          “Purchase Price” is defined in Paragraph 3 of this Agreement.

          “Real Property” shall mean the Land, including, without limitation, (a) the Hotel and any
other buildings located on the Land and all other improvements, (b) all easements and
rights-of-way, appurtenant to the Land and other easements, rights-of-way, grants of right,
licenses, privileges or other agreements for the benefit of, belonging to or appurtenant to the
Land whether or not situated 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.

-5-

 

          “Record Exceptions” shall mean all instruments recorded in the real estate records of the
locality in which the Land is located which affect the status of title to the Real Property or
which affect the recordation of any Ground Lease with a first priority rank on the Leased Real
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.

          “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 general real
estate Taxes or assessments not yet due and payable) which can be Removed by payment of liquidated
amounts, (ii) liens or encumbrances (including, but not limited to, monetary liens) created by
Seller or the Company after the Effective Date and not consented to or deemed consented to by
Buyer; or (iii) items which Seller has agreed to Remove pursuant to Paragraph 4.3 of this
Agreement.

          “Securities Act” is defined in Paragraph 5.4 of this Agreement.

          “Securities Exchange Act” is defined in Paragraph 5.4 of this Agreement.

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

          “Seller Parties” shall mean and include, collectively, (a) Seller; (b) the Company (c) counsel
to Seller and/or the Company; (d) any Broker retained by Seller or the Company; (e) the Company’s
property manager; (f) any direct or indirect owner of any beneficial interest in Seller; (g) any
officer, director, employee, or agent of Seller or the Company, or their counsel; and (h) any other
entity or individual affiliated or related in any way to any of the foregoing.

          “Seller Related Parties” is defined in the Recitals to this Agreement.

          “Seller Related Party” is defined in the Recitals to this Agreement.

          “Seller’s Broker” shall mean The Plasencia Group, Inc.

          “Seller’s Knowledge” shall mean the actual (and not the imputed or constructive) knowledge of
the Designated Representatives.

          “Seller’s Warranties” shall mean Seller’s representations and warranties set forth in this
Agreement as the same may be modified or waived by Buyer pursuant to this Agreement.

          “Special Partnership Election” is defined in Paragraph 6.2P of this Agreement.

          “Survey” shall mean a survey of the Land obtained by Buyer pursuant to Paragraph 4.

-6-

 

          “Tax” shall mean any and all federal, state, Commonwealth of Puerto Rico, local or non-U.S.
taxes, fees, levies, duties, tariffs, imposts, and other similar charges on or with respect to net
income, alternative or add-on minimum, gross income, gross receipts, sales, use, ad valorem,
franchise, capital, paid-up capital, profits, greenmail, license, withholding, payroll, employment,
excise, severance, stamp, occupation, premium, property, environmental, Section 59A of the
Internal Revenue Code of 1986, as amended, or windfall profit tax, custom, duty, value added,
volume of business or other tax, governmental fee or other like assessment or charge of any kind
whatsoever, together with any interest or any penalty, addition to tax or additional amount imposed
by any governmental entity responsible for the imposition of any such tax.

          “Tax Return” shall mean any return, claim, election, information return, declaration, report,
statement and other document required to be filed in respect of Taxes.

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

          “Tenant Estoppel Certificate” is defined in Paragraph 5.1(N).

          “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 in this Agreement expressly survives termination hereof.

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

          “Title Company” shall mean Chicago Title Insurance Company.

          “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
non-imputation and such other endorsements reasonably required by Buyer.

          “Transaction” shall mean the purchase of the Company Shares by Buyer and the other
transactions 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.

          “Unsuitable
for Its Permitted Use” shall mean a state or condition of the Hotel such that (a)
following any damage or destruction to the Hotel, the Hotel cannot be operated in the

-7-

 

good faith
judgment of Buyer or Seller on a commercially practicable basis and it cannot reasonably be
expected to be restored to substantially the same condition as existed immediately before such
damage or destruction within twelve (12) months following such damage or destruction or such
shorter period of time as to which business interruption insurance is available to cover rent and
other costs related to the Hotel following such damage or destruction, or (b) as the result of a
partial taking by condemnation, the Hotel cannot be operated, in the good faith judgment of Buyer
or Seller on a commercially practicable basis in light of then existing circumstances.

          “Working Capital” shall mean cash on deposit in same day funds with a U.S. bank of national
reputation reasonably acceptable to Buyer, free and clear of all Liens.

-8-

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