Document:

exv10w35

 

Exhibit 10.35

PURCHASE AND SALE AGREEMENT

by and among

FELCOR LODGING TRUST INCORPORATED AND CERTAIN OF ITS AFFILIATES,

as Sellers,

and

HOSPITALITY PROPERTIES TRUST,

as Purchaser

 

January 20, 2006

 

 

PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT is made as of January 20, 2006, by and among (i) FELCOR
LODGING TRUST INCORPORATED, a Maryland real estate investment trust (“FCH”), (ii) the
entities listed as “sellers” on the signature pages of this Agreement (each, individually, a
“Seller” and collectively, the “Sellers”), and (iii) HOSPITALITY PROPERTIES TRUST,
a Maryland real estate investment trust (the “Purchaser”).

WITNESSETH:

     WHEREAS, the Sellers are the owners or ground lessees of the seven (7) Properties (all
capitalized terms used and not otherwise defined herein having the meanings ascribed to such terms
in Section 1); and

     WHEREAS, the Purchaser desires to purchase the Properties, as more fully set forth below; and

     WHEREAS, the Sellers are willing to sell all of the Properties to the Purchaser, subject to
and upon the terms and conditions hereinafter set forth; and

     WHEREAS, FCH owns, directly or indirectly, all of the Sellers and the transactions
contemplated by this Agreement are of direct and material benefit to FCH;

     NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged,
the FCH Parties and the Purchaser hereby agree as follows:

SECTION 1. DEFINITIONS

     Capitalized terms used in this Agreement shall have the meanings set forth below or in the
Section of this Agreement referred to below:

     1.1 “Agreement” shall mean this Purchase and Sale Agreement, together with
Schedules A-H attached hereto, as it and they may be amended from time to time as herein
provided.

     1.2 “Allocable Purchase Price” shall mean, with respect to each Property, the amount
set forth in Schedule A opposite the name of such Property, it being understood and agreed
that

 

 

the aggregate amount of the Allocable Purchase Prices of the Properties shall be One Hundred
Sixty Million Two Hundred Thousand ($160,200,000), subject to adjustment pursuant to Section
2, in which event, the Allocable Purchase Price shall be adjusted proportionately.

     1.3 “Assets” shall mean, with respect to any Hotel, collectively, all of the Real
Property, the Ground Leases, the FAS, the FF&E, the Contracts, the Documents, the Improvements, the Intangible Property, the Inventories, the Expendables and the Tenant Leases owned by any
of the Sellers in connection with or relating to such Hotel.

     1.4 “Booking” means a booking, contract or other reservation for the future use
of guest rooms, banquet facilities, meeting rooms or other Hotel facilities and off-site catering
for which a Booking Deposit has been received on behalf of Seller, or for which a written proposal
has been made by or on behalf of Seller and accepted by the recipient of such proposal or for which
a written proposal has been received and accepted by or on behalf of Seller (regardless of whether
a Booking Deposit has been received) for any period after the Proration Time.

     1.5 “Booking Deposit” means all room reservation deposits, public function,
banquet, food and beverage deposits and other deposits or fees for Bookings.

     1.6 “Brand” shall mean, with respect to each Hotel, the brand under which such
Hotel is operated as indicated on Schedule A, together with the Brand Standards applicable
thereto, and all of the attributes and features customarily associated with such brand of hotels in
North America from time to time.

     1.7 “Brand Standards” shall mean, with respect to any Hotel, the standards of
operation, as amended from time to time, in effect at substantially all hotels which are operated
under the Brand name of such Hotel, which standards shall include, but not be limited to, standards
of operation from time to time required of owners of similar hotels or as may be specified in
manuals and other guidelines in effect with respect to such Brand.

     1.8 “Business Day” shall mean any day other than a Saturday, Sunday or any other day
on which banking institutions

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in The Commonwealth of Massachusetts or the State of New York are
authorized by law or executive action to close.

     1.9 “Capital Replacements” shall mean, collectively, the replacements and renewals to
the FF&E and the repairs, replacements, corrections, maintenance, alterations, improvements,
renovations, installations, replacements, renewals and additions to be performed by either the
Seller or the Purchaser in accordance with the terms of this Agreement.

     1.10 “Closing” shall have the meaning given such term in Section 2.2.

     1.11 “Closing Date” shall have the meaning given such term in Section 2.2.

     1.12 “Code” shall mean the Internal Revenue Code of 1986, as amended.

     1.13 “Contracts” shall mean, with respect to any Property, all hotel licensing
agreements and other service contracts, equipment leases, booking agreements and other arrangements
or agreements to which any of the Sellers is a party affecting the ownership, repair, maintenance,
management, leasing or operation of such Property, to the extent the Sellers’ interest therein is
assignable or transferable.

     1.14 “Deposit” shall have the meaning given such term in Section 2.3.

     1.15 “Documents” shall mean, with respect to any Property, all books, records and
files relating to the leasing, maintenance, management or operation of such Property.

     1.16 “Entity” shall mean any corporation, general or limited partnership, limited
liability company or partnership, stock company or association, joint venture, association,
company, trust, bank, trust company, land trust, business trust, cooperative, any government or
agency, authority or political subdivision thereof or any other entity.

     1.17 “Escrow Agent” shall mean Fidelity National Title Insurance Company or such
other person as shall be reasonably acceptable to the Purchaser and the Sellers.

     1.18 “Expendables” means blankets, linens, tableware, china, glassware, uniforms and
other goods of an expendable nature owned or leased by Sellers (or Hotel Operator as agent for
Seller) in connection with the ownership or operation of the

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Hotels; provided, however, the term
Expendables does not include FF&E or Inventory.

     1.19 “FAS” shall mean all items included within “Property and Equipment” under the
Uniform System of Accounts, including, but not limited to, Expendables, whether used in connection
with public space or guest rooms.

     1.20 “FCH” shall have the meaning given such term in the first paragraph of this
Agreement.

     1.21 “FCH Capital Replacements” shall have the meaning given such term in Section
2.3 of this Agreement.

     1.22 “FCH Parties” shall mean, collectively, FCH and the Sellers.

     1.23 “FF&E” shall mean, with respect to any Property, all appliances, machinery,
devices, fixtures, appurtenances, equipment, furniture, furnishings and articles of tangible
personal property of every kind and nature whatsoever located in or at, or used in connection with,
the ownership, operation or maintenance of such Property.

     1.24 “Ground Leases” shall mean, collectively, (i) a Lease, dated June 24, 1980, as
amended and assigned, with respect to the Miami Airport Crowne Plaza, Miami, Florida, and (ii) a
Lease, dated January 8, 1965, as amended and assigned, with respect to the Atlanta Airport Crowne
Plaza, Atlanta, Georgia.

     1.25 “Ground Lease Property” shall mean a Property subject to a Ground Lease, and the
applicable Seller’s entire right, title and interest therein.

     1.26 “Hotel” shall mean each hotel located at the properties identified on
Schedule A, the legal descriptions of which are set forth on Schedules C-1 through
C-7.

     1.27 “Hotel Operator” shall mean InterContinental Hotels Group, PLC or its
affiliates, Sellers’ hotel operator.

     1.28 “HPT Capital Replacements” shall have the meaning given such term is Section
2.3 of this Agreement.

     1.29 “IHG” shall mean InterContinental Hotels Group, PLC, a United Kingdom
corporation.

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     1.30 “IHG Management Agreement” shall mean a management agreement, dated as of the
Closing Date, between the Purchaser, or its affiliates, as owner, and IHG, or its affiliates, as
manager, with respect to, inter alia, the Properties.

     1.31 “IHG Parent Guaranty” shall mean a guaranty agreement executed by IHG, for the
benefit of the Purchaser, inter alia, pursuant to which the payment or performance of IHG’s
and its affiliates’ obligations under the IHG Management Agreement, or any portion thereof, are
guaranteed, together with all modifications, amendments and supplements thereto.

     1.32 “IHG Security Deposit Agreement” shall mean a security deposit agreement, dated
as of the Closing Date, between the Purchaser, or its affiliates, and IHG, or its affiliates.

     1.33 “Improvements” shall mean, with respect to any Property, all buildings,
fixtures, walls, fences, landscaping and other structures and improvements situated on, affixed or
appurtenant to the Real Property with respect to such Property.

     1.34 “Inspection Period” shall mean the period expiring on the Closing Date.

     1.35 “Intangible Property” shall mean, with respect to any Property, all transferable
or assignable Licenses and Permits, development rights and approvals, certificates, licenses,
warranties and guarantees, the Contracts, telephone exchange numbers identified with such Property
held by any of the Sellers and all other transferable intangible property, miscellaneous rights,
benefits and privileges of any kind or character with respect to such Property.

     1.36 “Inventories” shall mean, with respect to each Hotel, all consumable products
used in connection with the operation of each Hotel.

     1.37 “Legal Requirements” shall mean, with respect to any Property, all federal,
state, county, municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees, injunctions and requirements affecting such Property, the Hotel
located thereon, or the maintenance, construction, alteration, management or operation thereof,
whether now or hereafter enacted or in existence.

     1.38 “Licenses and Permits” means all certificates of occupancy and all zoning,
subdivision, building, safety and health approvals and all other licenses, permits and

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entitlements
issued by governmental authorities and owned by Seller in connection with and relating solely to
the operation, ownership or subdivision of the Hotels, including those identified on Schedule
D.

     1.39 “Permitted Encumbrances” shall mean, with respect to any Property, (a) liens for
taxes, assessments and governmental charges with respect to such Property not yet due and payable
or due and payable but not yet delinquent; and (b) such other nonmonetary encumbrances with respect
to such Property which are not objected to by the Purchaser in accordance with Section 3.2.

     1.40 “Person” shall mean an individual, partnership, joint venture, corporation,
limited liability company, real estate investment trust, any other form of business organization,
and any government or governmental authority.

     1.41 “Properties” shall mean, collectively, all of the Assets relating to the
properties identified on Schedule A, the legal descriptions of which are set forth in
Schedules C-1 through C-7.

     1.42 “Proration Time” shall mean, with respect to each Hotel, 11:59 p.m. local
time on the day immediately preceding the Closing Date, provided, however, with
respect to food and beverage services at bars, restaurants or lounges at each Hotel, the Proration
Time means 3:00 a.m. local time on the Closing Date.

     1.43 “Purchase Price” shall mean the sum of the Allocable Purchase Prices, but
in no event more than One Hundred Sixty Million Two Hundred Thousand ($160,200,000), subject to
adjustment pursuant to Section 2 and Section 9.

     1.44 “Purchaser” shall have the meaning given such term in the first paragraph of
this Agreement.

     1.45 “Real Property” shall mean, with respect to any Property, the real property
described in the applicable Schedule C-1 through C-7, together with all easements, rights of way, privileges, licenses and
appurtenances which the Sellers may own with respect thereto.

     1.46 “Rent Roll” shall mean Schedule E to this Agreement.

     1.47 “Sellers” shall have the meaning given such term in the first paragraph of this
Agreement.

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     1.48 “Subsidiary” shall mean with respect to any Person, any Entity (a) in which such
Person owns directly, or indirectly through one or more Subsidiaries, twenty percent (20%) or more
of the voting or beneficial interest or (b) which such Person otherwise has the right or power to
control (whether by contract, through ownership of securities or otherwise).

     1.49 “Surveys” shall have the meaning given such term in Section 3.2.

     1.50 “Tenant Deposits” shall mean all deposits identified on the Rent Roll and held
by Sellers under the Tenant Leases.

     1.51 “Tenant Leases” shall mean, with respect to any Property, all leases, rental
agreements or other agreements (other than agreements for letting of rooms or other facilities to
hotel guests), including all amendments or modifications thereto), which entitle any person to have
rights with respect to the use or occupancy of any portion of such Property.

     1.52 “Title Commitments” shall have the meaning given such term in Section
3.2.

     1.53 “Title Company” shall mean Fidelity National Title Insurance Company, or such
other title insurance company as shall have been selected by the Purchaser and approved by the
Sellers, which approval shall not be unreasonably withheld, delayed or conditioned.

     1.54 “True-up” shall have the meaning given such term in Section 9.

     1.55 “Uniform System of Accounts” shall mean A Uniform System of Accounts for Hotels,
Ninth Revised Edition, 1996, as published by the Hotel Association of New York City, as the same
may be further revised from time to time.

     1.56 "Unopened” means, with reference to Inventory and Expendables, all items
that remain in unopened crates or cases or which otherwise are stored in new or sealed condition
awaiting use in any storage location and not in guest rooms or immediately in service at public
bars or restaurants.

SECTION 2. PURCHASE AND SALE; CLOSING

     2.1 Purchase and Sale. In consideration of the mutual covenants herein contained, the
Purchaser hereby agrees to

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purchase from the Sellers, and the FCH Parties hereby agree to sell or
cause the Sellers to sell, all of the FCH Parties’ right, title and interest in and to the
Properties for the Purchase Price, subject to and in accordance with the terms and conditions of
this Agreement.

     2.2 Closing. The purchase and sale of the Properties shall be consummated at a
closing (the “Closing”) to be held at the offices of Sullivan & Worcester LLP, One Post
Office Square, Boston, Massachusetts, or at such other location as the Sellers and the Purchaser
may agree, at 10:00 a.m., local time, on a date (the “Closing Date”) which is the later to
occur of (a) the expiration of the Inspection Period, and (b) the date as of which all conditions
precedent to the Closing herein set forth (other than those to be satisfied at the Closing) have
either been satisfied or waived by the party in whose favor such conditions run. In the event that
the Closing shall not have occurred on or before January 20, 2006, either party may terminate this
Agreement, provided such party is not in default hereunder, in which event the Deposit shall be
paid to the Purchaser unless the Purchaser is in default hereunder.

     2.3 Purchase Price. The Purchase Price shall be paid as follows:

     (i) Upon execution of this Agreement, the Purchaser shall deposit with the
Escrow Agent the sum of Five Million Dollars ($5,000,000) (such amount, together
with all interest earned thereon, the “Deposit”); and

     (ii) The sum of the Purchase Price less the Deposit, subject to adjustment as
provided in this Section 2.3 and in Article 9, shall be paid by the
Purchaser to or at the direction of the Sellers at the Closing.

     (b) The Purchase Price shall be payable in immediately available federal funds by wire
transfer to an account or accounts to be designated by the Sellers.

     (c) The Sellers and the Purchaser had contemplated that the Seller would complete certain
Capital Replacements prior to the Closing, as more particularly described in Schedule B.
The Sellers and the Purchaser acknowledge and agree that (i) the Sellers have not, and shall not be
obligated to, complete such additional Capital Replacements, and (ii) the Purchase Price shall be
reduced by the aggregate amount of One Million Four Hundred Eight Thousand One Hundred Twenty
Dollars ($1,408,120).

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     (d) The Sellers and the Purchaser contemplate that certain Capital Replacements as further
described in Schedule B are to be completed by the Sellers on or after the Closing Date
(the “FCH Capital Replacements”). The Seller shall perform, or cause to be performed, the
FCH Capital Replacements described in Schedule B hereto, in accordance with the plans and
specifications, and permits, licenses, contracts and approvals relating thereto, and otherwise in
accordance the terms of this Section 2.3. All such FCH Capital Replacements shall be
performed in a good and workmanlike manner, consistent with industry standards for like hotels in
like locales and in accordance with all applicable Legal Requirements and the Brand Standards. The
Sellers and the Purchaser acknowledge and agree that (i) the Sellers shall complete such FCH
Capital Replacements on or before June 30, 2006, (ii) the amount of Nine Hundred Twenty Seven
Thousand Three Hundred Eight Dollars ($927,308) shall be deposited into escrow with the Escrow
Agent to be disbursed to the Sellers on a periodic basis as such FCH Capital Replacements are
completed, as evidenced by the certificate of IHG, and (iii) in the event that the FCH Capital
Replacements shall not have been so completed by June 30, 2006, amounts remaining on deposit with
the Escrow Agent shall be disbursed to Purchaser. The Sellers and Purchaser contemplate that
certain Capital Replacements as further described in Schedule B in the amount of Three
Hundred Eighty Four Thousand Nine Hundred Eighty Six Dollars ($384,986) are to be completed by the
Purchaser on or after the Closing Date (the “HPT Capital Replacements”), and the Purchaser
shall receive a credit against the Purchase Price in such amount at Closing.

     (e) The Sellers and the Purchaser acknowledge and agree that the Properties contain certain
physical conditions that are not satisfactory to the Purchaser, and due to such physical
conditions, the Purchaser shall receive a credit against the Purchase Price in the amount of Two
Million Fifty One Thousand Two Hundred Three Dollars ($2,051,203) at Closing.

     2.4 Duties of Escrow Agent.

     (a) The Escrow Agent shall hold the Deposit in an interest-bearing federally insured account
and shall pay the Deposit to the party entitled thereto in accordance with the terms of this
Agreement.

     (b) The acceptance by the Escrow Agent of its duties as such under this Agreement is subject
to the following terms and conditions, which all parties to this Agreement hereby agree

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shall
govern and control with respect to the rights, duties, liabilities and immunities of the Escrow
Agent:

          (i) The Escrow Agent acts hereunder as a depositary only, and is not responsible or liable in
any manner whatever for the sufficiency of any amounts deposited with it.

          (ii) The Escrow Agent shall not be liable for acting upon any notice, request, waiver,
consent, receipt or other instrument or document which the Escrow Agent in good faith believes to be genuine and what it
purports to be.

          (iii) The Escrow Agent shall not be liable for any error in judgment, or for any act done or
step taken or omitted by it in good faith, or for any mistake of fact or law, or for anything which
it may do or refrain from doing in connection herewith, except its own bad faith, gross negligence
or willful misconduct.

          (iv) The Escrow Agent may consult with, and obtain advice from, legal counsel in the event of
any dispute or question as to the construction of any of the provisions hereof or its duties
hereunder, and it shall incur no liability and shall be fully protected in acting in good faith in
accordance with the opinion and advice of such counsel.

          (v) In the performance of its duties hereunder, the Escrow Agent shall be entitled to rely
upon any document, instrument or signature believed by it to be genuine and signed by either of the
other parties hereto or their successors.

          (vi) The Escrow Agent may assume that any person purporting to give any notice of instructions
in accordance with the provisions hereof has been duly authorized to do so.

          (vii) The Sellers and the Purchaser each hereby release the Escrow Agent from any act done or
omitted to be done by the Escrow Agent in good faith in the performance of its duties hereunder.

     (c) The Sellers and the Purchaser may remove the Escrow Agent at any time upon not less than
five (5) days notice to the Escrow Agent; in such case, the Sellers, by notice to the Purchaser,
shall appoint a successor Escrow Agent, reasonably satisfactory to the Purchaser, which shall
accept such appointment and agree in writing to be bound by the terms of this Agreement. In the
event no successor Escrow Agent is appointed and acting hereunder within five (5) days after
resignation by the Escrow Agent or there is a dispute among the

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parties with respect to payment of
the Deposit, the Escrow Agent may deliver the Deposit into a court of competent jurisdiction. Upon
delivery of the Deposit to a successor agent or court of competent jurisdiction, the Escrow Agent
shall be released and discharged from all further obligations hereunder.

     (d) The Escrow Agent agrees to serve without compensation for its services; provided,
however, that the Purchaser and the Sellers hereby agree to reimburse, or to advance to,
the Escrow Agent all reasonable expenses of the Escrow Agent incurred in the performance of its
duties hereunder.

SECTION 3. DILIGENCE, ETC.

     3.1 Diligence Inspections. From and after the date of this Agreement, the Sellers
shall permit the Purchaser and its representatives to inspect the Properties and the Improvements (including, without limitation,
guest rooms, meeting rooms, food and beverage outlets and related back of the house areas, all
roofs, electric, mechanical and structural elements, and HVAC systems therein), to perform due
diligence, soil analysis and environmental investigations, to examine the books of account and
records of the FCH Parties with respect to the Properties, including, without limitation, all
Contracts and other agreements affecting the Properties, and make copies thereof, at such
reasonable times as the Purchaser or its representatives may request. To the extent that, in
connection with such investigations, the Purchaser damages or disturbs the Properties, or any
portion thereof, the Purchaser shall, to the extent practicable, return the same to substantially
the same condition which existed immediately prior to such damage or disturbance. The Purchaser
shall indemnify, defend and hold harmless the Sellers from and against any and all expense, loss or
damage which the Sellers may incur as a result of any act or omission of the Purchaser or its
representatives, agents or contractors in the conduct of its inspections, other than any expense,
loss or damage to the extent arising from any negligent act or omission of the Sellers during any
such inspection. Such restoration obligations and indemnification agreement shall survive the
termination of this Agreement.

     3.2 Title and Survey Matters.

     (a) Promptly upon execution of this Agreement, the Purchaser shall order from the Title
Company and direct the Title Company promptly to deliver to the Purchaser a preliminary title
commitment, having an effective date after the date of this Agreement, for an ALTA extended owner’s
policy of title

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insurance with respect to each of the Properties, together with complete and
legible copies of all instruments and documents referred to as exceptions to title (collectively,
the “Title Commitment”).

     (b) Promptly upon execution of this Agreement, the Purchaser shall arrange for the preparation
of an ALTA survey with respect to each of the Properties (the “Survey”), by a licensed
surveyor in the jurisdiction in which each such Property is located, which (i) contains an accurate
legal description of such Property, (ii) shows the exact location, dimension and description
(including applicable recording information) of all utilities, easements, encroachments and other
physical matters affecting such Property, the number of striped parking spaces located thereon and
all applicable building set-back lines, (iii) states whether such Property is located within a
100-year flood plain and (iv) includes a certification in the form attached hereto as Schedule
F.

     (c) Within ten (10) Business Days after receipt of both the Title Commitment and the Survey
with respect to a Property, the Purchaser shall give the Sellers notice of any title exceptions or
survey matters (other than Permitted Exceptions) as to which the Purchaser objects. If, for any
reason, the Sellers are unable or unwilling to take such actions as may be required to cause such exceptions to be
removed from such Title Commitment or to remedy such matters, the Sellers shall give the Purchaser
notice thereof; it being understood and agreed that the failure of the Sellers to give such notice
within five (5) Business Days after the Purchaser’s notice of objection shall be deemed an election
by the Sellers not to cause such removal and remedy. If the Sellers shall be unable or unwilling
(or shall be deemed unable or unwilling) to remove any title defects or remedy any survey matters
to which the Purchaser has objected, the Purchaser may elect (i) to terminate this Agreement and
receive a refund of the Deposit, or (ii) to consummate the transactions contemplated hereby,
notwithstanding such defect, without any abatement or reduction in the Purchase Price on account
thereof. The Purchaser shall make any such election by notice to the Sellers given on or prior to
the fifth (5th) Business Day (but in any event prior to the Closing Date) after the
Sellers’ notice of its inability or unwillingness to cure any such title defect or remedy any such
survey matter. Failure of the Purchaser to give such notice shall be deemed an election by the
Purchaser to waive such obligations and consummate the transactions contemplated hereby in
accordance with clause (ii) above.

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     3.3 Other Diligence Materials. Throughout the Inspection Period and through and until
the Closing, the Sellers shall provide the Purchaser and its representatives with copies of all
leases, title reports, as-built plans, surveys, environmental assessment reports, building
evaluations, financial data, audited property statements for the past three (3) years and other
investigations and materials pertaining to the Properties as are in the possession or control of
the FCH Parties.

     3.4 Termination of Agreement. If the results of the inspections performed by or on
behalf of the Purchaser pursuant to Section 3.1 or Section 3.3 shall be
unsatisfactory to the Purchaser in any respect or if Purchaser otherwise determines not to proceed
to Closing, the Purchaser shall have the right to terminate this Agreement at any time prior to the
expiration of the Inspection Period by the giving of written notice thereof to the Sellers, in
which event, the Deposit shall be refunded to the Purchaser. In the event that the Purchaser shall
fail so to terminate this Agreement, the Purchaser shall have no further right to terminate this
Agreement pursuant to this Section 3.4.

SECTION 4. CONDITIONS TO PURCHASER’S OBLIGATION TO CLOSE

     The obligation of the Purchaser to acquire each of the Properties on the Closing Date shall be
subject to the satisfaction of the following conditions precedent on and as of such Closing Date:

     4.1 Closing Documents. The FCH Parties shall have delivered to the Purchaser:

     (a) A good and sufficient limited or special warranty deed with covenants against grantor’s
acts, or its local equivalent, in proper statutory form for recording, duly executed and
acknowledged by the applicable Seller(s), conveying good and marketable title to each of the
Properties, free from all liens and encumbrances other than the Permitted Encumbrances;

     (b) An assignment of each of the Ground Leases, in proper statutory form for recording, duly
executed and acknowledged by the applicable Seller(s), conveying good and marketable leasehold
title to each of the Ground Lease Properties, free from all liens and encumbrances other than the
Permitted Encumbrances;

     (c) One or more bill(s) of sale and assignment agreement(s), in form and substance reasonably
satisfactory to the Sellers and the Purchaser, duly executed and acknowledged by the applicable
Seller(s), with respect to all of the Sellers’

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right, title and interest in, to and under the FAS,
the FF&E, the Contracts, the Documents, the Intangible Property, the Inventories and the Tenant
Leases with respect to each of the Properties and the Sellers’ rights under all builder’s
warranties with respect to each of the Properties;

     (d) To the extent the same are in the FCH Parties’ possession or control, original, fully
executed copies of all material documents and agreements, leases, including, without limitation,
the Ground Leases, plans and specifications and contracts, licenses and permits pertaining to the
Properties;

     (e) An affidavit as of the Closing Date, in respect of Section 1445 of the Internal Revenue
Code of 1986, as amended, sufficient to provide one exemption under subdivision (b) thereof for
each of the FCH Parties;

     (f) A Sellers’ closing certificate in the form attached hereto as Schedule G;

     (g) Copies of any and all certificates, and related correspondence and materials, provided by,
for or to, any of the FCH Parties, IHG or any of their respective affiliates, in connection within
the FCH Parties’ determination of the actual knowledge of the general manager of each Hotel and the
actual knowledge of Jack Eslick and Mike DeNicola pursuant to Section 6 hereof;

     (h) With respect to each Ground Lease Property, a consent and estoppel certificate, in form
and substance satisfactory to the Purchaser, dated within thirty (30) days prior to the Closing
Date, duly executed by the ground lessor under the Ground Lease with respect to such Ground Lease
Property in the form reasonably acceptable to Purchaser;

     (i) Estoppel certificates, dated within thirty (30) days prior to the Closing Date, with
respect to the Tenant Leases, in form and substance satisfactory to the Purchaser, duly executed by each of the tenants of each of the Properties to the extent received by the applicable
Seller.

     (j) Certified copies of all charter documents, applicable corporate resolutions and
certificates of incumbency with respect to the applicable FCH Parties; and

     (k) Such other conveyance documents, certificates, deeds, affidavits and other instruments as
the Purchaser or the Title Company may reasonably require to effectuate the transactions
contemplated by this Agreement, including, without limitation,

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parties in possession and mechanics’
lien affidavits and gap indemnities.

     4.2 Management of Hotels. The Purchaser, IHG and its affiliates (i) shall have
entered into the IHG Management Agreement and the IHG Security Deposit Agreement, and received the
IHG Parent Guaranty, in each case on terms satisfactory to the Purchaser, in its sole discretion,
engaging IHG and its affiliates to manage the Hotels, (ii) such agreements shall be in full force
and effect, and (iii) all conditions precedent to the effectiveness of such agreements shall have
been satisfied.

     4.3 Condition of Properties.

     (a) No default or event which with the giving of notice and/or lapse of time could constitute
a material default shall have occurred and be continuing under any material agreement benefiting or
affecting any of the Properties in any respect;

     (b) Except for the action described in Schedule H hereto with respect to the Houston
I-10 Hotel, no action shall be pending or threatened for the condemnation or taking by power of
eminent domain of all or any material portion of any of the Properties;

     (c) All material licenses, permits and other authorizations necessary for the current use,
occupancy and operation of each of the Properties shall be in full force and effect; and

     (d) All representations and warranties of each the FCH Parties herein shall be true, correct
and complete in all material respects on and as of the Closing Date and each of the FCH Parties
shall have performed all covenants and obligations required to be performed by the FCH Parties on
or before the Closing Date.

     4.4 Title Policies and Surveys. (a) The Title Company shall be prepared, subject only
to payment of the applicable premium and endorsement fees and delivery of all conveyance documents
in recordable form, to issue title insurance policies to the Purchaser with respect to each of the
Properties, in form and substance satisfactory to the Purchaser in accordance with Section
3.2., together with such affirmative coverages as the Purchaser may reasonably require.

     (b) The Purchaser shall have received an as-built survey with respect to each of the
Properties, such survey to be consistent with the requirements of Section 3.2.

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SECTION 5. CONDITIONS TO FCH PARTIES’ OBLIGATION TO CLOSE

     The obligation of the FCH Parties to convey the Properties on the Closing Date to the
Purchaser is subject to the satisfaction of the following conditions precedent on and as of the
Closing Date:

     5.1 Purchase Price. The Purchaser shall have delivered to the FCH Parties the
Purchase Price as provided in Section 2.3.

     5.2 Closing Documents. The Purchaser shall have delivered to the Sellers:

     (a) Duly executed and acknowledged counterparts of the documents described in Section
4.1, where applicable; and

     (b) Certified copies of all charter documents, applicable resolutions and certificates of
incumbency with respect to the Purchaser.

SECTION 6. REPRESENTATIONS AND WARRANTIES OF FCH PARTIES

     To induce the Purchaser to enter into this Agreement, each FCH Party, with respect to all
Properties, and each Seller, with respect to its Property, represent and warrant to the Purchaser
as follows:

     6.1 Status and Authority of the FCH Parties. Each of the FCH Parties is a corporation
or limited liability company duly organized, validly existing and in good standing under the laws
of its state of incorporation or formation, and has all requisite power and authority under the
laws of such state and its respective charter documents to enter into and perform its obligations
under this Agreement and to consummate the transactions contemplated hereby. It has duly qualified
to transact business in each jurisdiction in which the nature of the business conducted by it
requires such qualification, except where failure to do so could not reasonably be expected to have
a material adverse effect.

     6.2 Action of the FCH Parties. Each of the FCH Parties has taken all necessary action
to authorize the execution, delivery and performance of this Agreement, and upon the execution and
delivery of any document to be delivered by it on or prior to the Closing Date, such document shall
constitute its valid and binding obligation and agreement, enforceable against such FCH Party in
accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,

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reorganization, moratorium or similar laws of general application affecting the rights and remedies
of creditors.

     6.3 No Violations of Agreements. Neither the execution, delivery or performance of
this Agreement, nor compliance with the terms and provisions hereof, 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, charge or encumbrance upon any of the Properties pursuant to the terms
of any indenture, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or
instrument by which it is bound.

     6.4 Litigation. None of the FCH Parties has received any written notice of and, to
its 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 this Agreement or any
action taken or to be taken pursuant hereto, (b) will result in any material adverse change in the
business, operation, affairs or condition of any of the Properties, (c) will result in or subject
any of the Properties to a material liability, or (d) except for the action described in
Schedule H hereto with respect to the Houston I-10 Hotel, involves condemnation or eminent
domain proceedings against any material part of any of the Properties.

     6.5 Tenant Leases, Etc. Other than the Tenant Leases listed in the Rent Roll, the
Sellers have not entered into any contract or agreement with respect to the occupancy of the
Properties, or any portion thereof, which will be binding on the Purchaser after the Closing. The
copies of the Tenant Leases heretofore delivered by the Sellers to the Purchaser are true, correct
and complete copies thereof; the Tenant Leases have not been amended except as evidenced by
amendments similarly delivered and constitute the entire agreement between the Sellers and the
tenants thereunder. Except as otherwise set forth in the Rent Roll: (i) to knowledge of the FCH
Parties’, each of the Tenant Leases is in full force and effect on the terms set forth therein,
there are no defaults or circumstances which with the giving of notice, the passage of time or both
would constitute a default thereunder and each tenant 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) no tenant has asserted in writing or, to the
knowledge of the FCH Parties’, has any defense to, offsets or claims against, rent payable by it or
the performance of its other obligations under its Tenant Lease; (iii) the Sellers have no
outstanding

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obligations to provide any tenant with an allowance to perform, or to perform at its
own expense, any tenant improvements; (iv) no tenant is in arrears in the payment of any sums or in
the performance of any material obligation required of it under its Tenant Lease beyond any
applicable grace period, and no Tenant has prepaid any rent or other charges (except as disclosed
in the Rent Roll); (v) no tenant 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; (vi) no tenant has
requested in writing a modification of its Tenant Lease, or a release of its obligations under its
Tenant Lease in any material respect or has given written notice terminating its Tenant Lease, or
has been released of its obligations thereunder in any material respect prior to the normal
expiration of the term thereof; (vii) except as set forth in the Tenant 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 Tenant Lease or any transaction related thereto; (viii)
all security deposits paid by tenants, are as set forth in the Rent Roll; (ix) all brokerage
commissions due with respect to each of the Tenant Leases has been paid, except as otherwise set
forth on the Rent Roll; and (x) the other information set forth in the Rent Roll is true, correct
and complete in all material respects.

     6.6 Ground Leases. The copies of the Ground Leases heretofore delivered by the
Sellers to the Purchaser are true, correct and complete copies thereof; the Ground Leases have not
been amended except as evidenced by amendments similarly delivered and constitute the entire
agreement between the ground lessors and the Sellers thereunder. Each of the Ground Leases is in
full force and effect on the terms set forth therein, there are no defaults or circumstances which
with the giving of notice, the passage of time or both would constitute a default thereunder.

     6.7 Agreements, Etc. Other than the Tenant Leases and the Ground Leases, there are no
contracts or agreements affecting any of the Properties which will be binding on the Purchaser or
any of the Properties subsequent to the Closing Date other than

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contracts and agreements which the
Purchaser has agreed in writing to assume prior to the expiration of the Inspection Period or which
IHG is party to and which are required for the effective management of the hotels or which are
terminable upon thirty (30) days notice without payment of premium or penalty.

     6.8 Compliance With Law. To the FCH Parties’ knowledge, none of the FCH Parties has
received written notice that (i) any of the Properties or the current use and operation thereof
violate any material federal, state, municipal and 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 and fire safety applicable thereto; and (ii) there is not currently
in effect any material license, permit or other authorization necessary for the current use,
occupancy and operation of any of the Properties. Except for the action described in Schedule
H hereto with respect to the Houston I-10 Hotel, none of the FCH Parties has received written notice of any threatened request,
application, proceeding, plan, study or effort which would (i) materially adversely affect the
present use or zoning of any of the Properties, (ii) jeopardize the status of any material license,
permit or other authorization necessary for the current use, occupancy or operation of any of the
Properties, or (iii) modify or realign any adjacent street or highway in a material and adverse
way.

     6.9 Taxes. To the FCH Parties’ knowledge, (i) other than the amounts disclosed by tax
bills and the Title Commitments, no taxes or special assessments of any kind (special, bond or
otherwise) are or have been levied with respect to any of the Properties, or any portion thereof,
which are outstanding or unpaid, other than amounts not yet due and payable or, if due and payable,
not yet delinquent, and (ii) all tax returns for privilege, gross receipts, excise, sales and use,
personal property and franchise taxes have been prepared and duly filed, and all taxes, if any,
shown on such returns or otherwise determined to be due, together with any interest or penalties
thereon, have been paid by the FCH Parties.

     6.10 Not A Foreign Person. None of the FCH Parties is a “foreign person” within the
meaning of Section 1445 of the United States Internal Revenue Code of 1986, as amended, and the
treasury regulations promulgated thereunder.

     6.11 Hazardous Substances. Except as described in any environmental report delivered
to the Purchaser prior to the

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expiration of the Inspection Period to the FCH Parties’ knowledge,
none of the FCH Parties has received written notice that any of the FCH Parties nor any tenant or
other occupant or user of any of the Properties, or any portion thereof, has stored or disposed of
(or engaged in the business of storing or disposing of) or has released or caused the release of
any hazardous waste, contaminants, oil, radioactive or other material on any of the Properties, or
any portion thereof, the removal of which is required or the maintenance of which is prohibited or
penalized by any applicable Federal, state or local statutes, laws, ordinances, rules or
regulations, and, to each FCH Party’s knowledge, none of the FCH Parties has received written
notice that any of the Properties is contaminated with any such hazardous waste, contaminants, oil,
radioactive or other materials, except any such materials maintained in accordance with applicable
law.

     6.12 Insurance. None of the FCH Parties has received any written notice from any
insurance carrier of defects or inadequacies in any of the Properties which, if uncorrected, would
result in a termination of insurance coverage or a material increase in the premiums charged
therefor.

     6.13 Ownership of Sellers. FCH is the sole record and beneficial owner, directly or
indirectly, of all of the issued and outstanding equity interests in the Sellers and the transactions contemplated by this Agreement are of direct material benefit to FCH.

     6.14 Utilities, Etc. To the FCH Parties’ knowledge, except as may be set forth in any
of the due diligence materials submitted by the FCH Parties’ to Purchaser or identified by
Purchaser as a result of its due diligence inspections and other investigations pursuant to
Section 3.1 hereof, (i) all utilities and services necessary for the use and operation of
each of the Properties (including, without limitation, road access, gas, 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 each of the Properties, and (ii) no
fact, condition or proceeding exists which would result in the termination or material impairment
of the furnishing of such utilities to any of the Properties.

     6.15 Condition of Properties. To the FCH Parties’ knowledge, except as may be set
forth in any of the due diligence materials submitted by the FCH Parties’ to Purchaser or
identified by Purchaser as a result of its due diligence

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inspections and other investigations
pursuant to Section 3.1 hereof, none of the FCH Parties has received any written notice of
any material defects in the Properties.

     6.16 Employment Contracts; Labor Matters. None of the Sellers now has or has ever had
any employees.

     6.17 Intellectual Property. To the FCH Parties’ knowledge, no Seller is infringing or
alleged to be infringing upon the rights of any third party with respect to any of the trademarks
and service marks (whether or not registered) and trademark and service mark registrations and
applications, patent and patent applications, copyright and copyright applications, trade dress,
trade and product names (collectively, the “Intellectual Property”) owned or licensed by
any of the Sellers, and no Seller is infringing or alleged to be infringing upon the rights of any
third party with respect to any of Intellectual Property, and no Seller knows of any basis for the
assertion against any Seller of a claim for such infringement.

     The representations and warranties made in this Agreement by the FCH Parties are made as of
the date hereof and shall be deemed remade by the FCH Parties as of the Closing Date with the same
force and effect as if made on, and as of, such date. All representations and warranties made in
this Agreement by the FCH Parties shall survive the Closing for a period of one (1) year
thereafter, and upon expiration shall be of no further force and effect, except to the extent that
with respect to any particular alleged breach, the Purchaser gives the FCH Parties written notice
prior to the expiration of said one (1) year period of such alleged breach.

     Notwithstanding anything to the contrary contained in this Section 6, none of the FCH
Parties shall have any liability to the Purchaser for the breach of any representation or warranty
made in this Agreement unless the loss resulting from the FCH Parties’ breach of its
representations and warranties exceeds, in the aggregate, One Million Dollars ($1,000,000), in
which event the FCH Parties shall be liable for each dollar of damages resulting from the breach or
breaches of its representations and warranties, but in no event shall the FCH Parties’ total
liability for any such breach or breaches exceed, in the aggregate, Twenty Million Dollars
($20,000,000).

     “FCH Parties’ knowledge” shall mean only the actual knowledge of the general manager
of each Hotel, Jack Eslick or Mike DeNicola, in each case, after the FCH Parties’ having made

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specific inquiries of each such general manager, Jack Eslick and Mike DeNicola.

     Except as otherwise expressly provided in this Agreement or any documents to be delivered to
the Purchaser at the Closing, the FCH Parties disclaim the making of any representations or
warranties, express or implied, regarding the Properties or matters affecting the Properties,
whether made by the FCH Parties, on the FCH Parties’ behalf or otherwise, including, without
limitation, the physical condition of the Properties, 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 orders, structural and other engineering characteristics,
traffic patterns, market data, economic conditions or projections, and any other information
pertaining to the Properties or the market and physical environments in which they are located.
The Purchaser acknowledges (i) that the Purchaser 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, economic and legal condition of each Property and (ii) that the
Purchaser 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 delivered to the Purchaser
at any Closing, made by the FCH Parties or anyone acting on the FCH Parties’ behalf. The Purchaser
further acknowledges that it has not received from or on behalf of the FCH Parties 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, the Purchaser shall purchase the Properties in their “as is” condition on the
Closing Date.

SECTION 7. REPRESENTATIONS AND WARRANTIES OF PURCHASER

     To induce the FCH Parties to enter in this Agreement, the Purchaser represents and warrants to
the FCH Parties as follows:

     7.1 Status and Authority of the Purchaser. The Purchaser is a Maryland real estate
investment trust duly organized, validly existing and in trust good standing under the laws of the
State of Maryland, and has all requisite power and authority under the laws of such state and under
its charter documents to enter into and perform its obligations under this Agreement and

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to consummate the transactions contemplated hereby. The Purchaser has duly qualified and is in good
standing as a trust or unincorporated business association in each jurisdiction in which the nature
of the business conducted by it requires such qualification, except where the failure to do so
could not reasonably be expected to have a material adverse effect.

     7.2 Action of the Purchaser. The Purchaser has taken all necessary action to
authorize the execution, delivery and performance of this Agreement, and upon the execution and
delivery of any document to be delivered by the Purchaser on or prior to the Closing Date such
document shall constitute the valid and binding obligation and agreement of the Purchaser,
enforceable against the Purchaser 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.

     7.3 No Violations of Agreements. Neither the execution, delivery or performance of
this Agreement by the Purchaser, nor compliance with the terms and provisions hereof, 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, charge or encumbrance upon any property or assets of
the Purchaser pursuant to the terms of any indenture, mortgage, deed of trust, note, evidence of
indebtedness or any other agreement or instrument by which the Purchaser is bound.

     7.4 Litigation. No investigation, action or proceeding is pending and, to the
Purchaser’s knowledge, no action or proceeding is threatened and no investigation looking toward
such an action or proceeding has begun, which questions the validity of this Agreement or any
action taken or to be taken pursuant hereto.

     The representations and warranties made in this Agreement by the Purchaser shall be continuing
and shall be deemed remade by the Purchaser as of the Closing Date with the same force and effect
as if made on, and as of, such date. The Purchaser’s liability with respect to all representations
and warranties made in this Agreement by the Purchaser shall survive the Closing for a period of
one (1) year thereafter, and upon expiration shall be of no further force or effect, except to the
extent that with respect to any particular alleged breach, the FCH Parties give the Purchaser written notice prior to the expiration of said one (1) year period of such
alleged breach.

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SECTION 8. COVENANTS OF THE FCH PARTIES

     Each of the FCH Parties hereby covenants with the Purchaser between the date of this Agreement
and the Closing Date as follows:

     8.1 Compliance with Laws, Etc. To comply or to cause compliance in all material
respects with (i) all applicable laws, regulations and other requirements from time to time of
every governmental body having jurisdiction of the Properties or the use or occupancy of the
Improvements located on the Real Property and (ii) all terms, covenants and conditions of all
instruments of record and other agreements affecting the Properties.

     8.2 Approval of Agreements. Except as otherwise authorized by this Agreement or in
the ordinary course of business, not to enter into, modify, amend or terminate any other agreement
with respect to any Property which would encumber or be binding upon such Property from and after
the Closing Date without in each instance obtaining the prior written consent of the Purchaser.

     8.3 Ground Lease Estoppels. The FCH Parties shall request, and use reasonable efforts
to obtain, from the ground lessors under the Ground Leases, the consent and estoppel certificates
described in Section 4.1(g).

     8.4 Tenant Estoppels. The FCH Parties shall request, and use reasonable efforts to
obtain, from the tenants under the Tenant Leases the estoppel certificates described in Section
4.1(h). In the event the Sellers are unable to obtain any such estoppel certificate, the FCH
Parties shall provide the Purchaser at Closing with an estoppel certificate in substitution
therefor in the form described in Section 4.1(h) executed by the FCH Parties, which
estoppel certificate shall expressly indemnify and hold the Purchaser harmless from and against any
and all loss, cost, damage and expense that the Purchaser may incur or otherwise suffer as a result
of the FCH Parties’ failure to obtain and deliver to the Purchaser such estoppel certificate, or
the failure of any statement, representation or warranty contained therein to be true, complete and
correct, including, without limitation, reasonable attorneys’ fees and expenses.

     8.5 Change in Brands. The FCH Parties shall not change, and they shall cause their
affiliates not to change, the Brand now in effect with respect to any Hotel.

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     8.6 Notice of Material Changes or Untrue Representations. Upon learning of any
material change in any condition with respect to any of the Properties or of any event or
circumstance which makes any representation or warranty of any of the FCH Parties to the Purchaser
under this Agreement untrue or misleading in any material respect, Sellers agree to promptly to notify the Purchaser thereof (the Purchaser agreeing, on learning of any such fact or
condition, promptly to notify the FCH Parties thereof).

     8.7 Financial Information. To provide to the Purchaser, promptly upon request, at the
FCH Parties’ sole cost and expense, such audited and unaudited financial and other information and
certifications of the FCH Parties with respect to the FCH Parties and the Properties as the
Purchaser may from time to time reasonably request in order to comply with any applicable
securities laws and/or any rules, regulations or requirements of the Securities and Exchange
Commission and, if required or requested, to permit the Purchaser to incorporate by reference any
information included in filings made by FCH with the Securities and Exchange Commission.

     8.8 Licensing Approval. To the FCH Parties’ knowledge, all liquor licenses currently
in effect at the Hotels are in the name of IHG. Each Seller shall use best efforts to assist the
Purchaser and/or IHG in obtaining appropriate licenses from the applicable licensing authorities
which authorize the Purchaser to operate the Properties and the Hotels in the same manner and with
the same number of keys as they are currently being operated. If a license to sell alcoholic
beverages at the Hotel is in any Seller’s name and cannot be transferred to IHG by the Closing Date
and IHG cannot obtain a new or temporary license by the Closing Date, then to the extent permitted
by law Seller shall cooperate reasonably with IHG in maintaining the license on behalf of IHG and
keeping open all bars, lounges and liquor facilities of the Hotels between the Closing Date and the
time when such license is obtained by IHG by entering into a agreement for the continued operation
of and under Seller’s liquor license mutually acceptable to Seller and IHG in their reasonable
discretion. The Sellers’ obligations under this Section 8.9 shall survive the Closing.

SECTION 9. APPORTIONMENTS

     9.1 General. Except as otherwise expressly provided in this Agreement, all income and
expenses of the Property with respect to the period prior to the Proration Time shall be for the
account of Seller and all income and expenses of the

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Properties with respect to the period from and
after the Proration Time shall be for the account of Purchaser.

     9.2 Taxes.

     (a) Real and personal property taxes, assessments and special district levies
(“Taxes”) shall be prorated for the tax fiscal year in which the Closing Date occurs on the
basis of the then most current tax bills available with respect to the Properties; Sellers shall be
charged with said proration for the period through the day prior to the Closing Date and Purchaser
shall be charged with said proration for the period from and after the Closing Date. If the
prorations are not based on the actual tax bills for the tax fiscal year in which the Closing Date occurs, Sellers and
Purchaser shall re-prorate such taxes, assessments and levies based upon the actual tax bills
within thirty (30) days after such tax bills are received. Such proration shall satisfy the
obligation of Sellers to Purchaser with respect to all such taxes, assessments and levies on the
Property for the tax fiscal year in which the Closing Date occurs. The Sellers shall be entitled
to receive any refunds of any Taxes for any periods prior to Closing, regardless of when received.

     (b) Sellers shall pay (l) all sales, revenue and excise taxes (and any surtax, interest and
penalties thereon) (collectively, “Sales Tax”) payable with respect to Sellers’ operation
of the Hotels for periods prior to the Closing Date, and (2) any Sales Tax due in connection with
the sale to Purchaser of those items of personal property for which Sales Tax is payable.

     (c) Sellers shall pay all room occupancy and use taxes due and payable with respect to the
Hotels for the period prior to the Closing Date, and Purchaser shall pay all room occupancy and use
taxes (“Room Taxes”) due and payable with respect to the Hotels for the period on and after
the Closing. Sellers and Purchaser each shall pay fifty percent (50%) of all Room Taxes due and
payable with respect to the Hotels for the night commencing prior to and ending on the day on which
the Proration Time occurs.

     9.3 Rents. Rents payable with respect to the Ground Lease Property and due under
Tenant Leases shall be prorated as of the Closing on a cash basis and the net amount paid by the
Seller to the Purchaser or by the Purchaser to the Seller, as the case may be (collectively,
“Rents”).

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     9.4 Hotel Apportionments.

     (a) The Purchaser shall pay to the Sellers, at the Closing, an amount equal to (a) the book
value of all Unopened Inventory and Expendables, (b)aggregate petty cash and cash in cash
registers, house banks and vending machines, (c) prepaid operating expenses of the Properties
and the Hotels, (d) amounts reflected on the guest ledger, (e) postage in meters and prepaid
internet access cards and (f) 50% of room occupancy revenues for the night on which the Proration
Time occurs, reduced by an amount equal to any Booking Deposits, (collectively, the “Hotel
Operating Items”) in each case, as of the Proration Time and based upon a fair and reasonable
estimated accounting prepared by the Sellers and IHG and delivered to the Purchaser on the Closing
Date.

     (b) All payments for Hotel services (“Hotel Services”), whether in cash or accounts
receivable, arising from Hotel services provided beginning on the day preceding the Closing Date
(i.e., the night that straddles the Closing) shall be credited to Sellers. All receipts for guest room rentals and Hotel services thereafter shall belong to
Purchaser.

     (c) All receipts and expenses from restaurant and bar operations (“Restaurant
Receipts”) at the Hotels to the closing hours of facility operations which commenced on the day
preceding the Closing Date shall belong to, and be paid by, Sellers. All thereafter accruing
receipts and expenses from restaurant and bar operations at the Hotels shall be for Purchaser’s
account.

     (d) Seller shall credit Purchaser at Closing for all accrued vacation and sick time
(“PTO”), and Purchaser shall assume all liability therefor.

     (d) Seller shall retain all accounts receivable owed to Sellers (or to Hotel Operator as agent
of Sellers) as of the Proration Time and arising out of the ownership or operation of the Hotels.

     9.5 True-Up. Within sixty (60) days after the Closing, Purchaser shall prepare and
deliver to Sellers an accounting of the Sales Tax, Room Taxes, Rents, Hotel Operating Items, Hotel
Services, Restaurant Receipts, and PTO which are prorated between, paid or otherwise credited to
the Purchaser and/or Seller Rents as set forth in this Section 9 (collectively, the
“Apportioned Items”). If the Sellers disagree with the Purchaser’s accounting of the
Apportioned Items, the Sellers

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shall notify the Purchaser within fifteen (15) days after receipt of
the Purchaser’s accounting and the Purchaser and the Sellers shall attempt to agree, in good faith,
on a final accounting of the Apportioned Items within thirty (30) days, provided if such agreement
is not reached within thirty (30) days, upon application by either the Purchaser or the Sellers, a
certified public accountant reasonably acceptable to the Purchaser and the Sellers hereto shall
make a determination of the amount of any of the Apportioned Items which have not been agreed to.
The charges for such accountant shall be borne one-half by the Purchaser and one-half by the
Sellers. After agreement of the parties or determination by the accountant, if the aggregate
amount of the Apportioned Items is greater than the Sellers’ estimate, Purchaser shall promptly pay
Sellers the excess and if less than the Sellers’ estimate, the Sellers shall promptly pay the
Purchaser the difference.

     9.6 Closing Costs. The FCH Parties shall pay one-third of the title insurance
premiums for the owner’s policies, and the title and survey costs and expenses associated with the
transaction contemplated hereby. The FCH Parties shall pay all costs and expenses of the recording
and sales and transfer fees and taxes. In addition, the FCH Parties shall pay the cost associated
with the transfer of the roof warranties.

     9.7 Survival. The obligations of the parties under this Section 9 shall
survive the Closing.

SECTION 10. DAMAGE TO OR CONDEMNATION OF PROPERTIES

     10.1 Casualty. If, prior to the Closing, all or any material portion of the
Properties is destroyed or damaged by fire or other casualty, the Sellers shall promptly notify the
Purchaser of such fact. In such event, the Purchaser shall have the right to terminate this
Agreement by giving notice to the Sellers not later than ten (10) days after the giving of Sellers’
notice (and, if necessary, the Closing Date shall be extended until one day after the expiration of
such ten-day period). If the Purchaser elects to terminate this Agreement as aforesaid, the
Deposit shall be paid to the Purchaser, whereupon, this Agreement shall terminate and be of no
further force and effect and neither party shall have any liability to the other hereunder. If the
Purchaser shall not elect to terminate this Agreement as aforesaid, there shall be no abatement of
the Purchase Price and the Sellers shall assign to the Purchaser at the Closing the rights of the
Sellers to the proceeds, if any, under the Sellers’ insurance policies covering the Properties, or
part thereof, with respect to such damage or

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destruction and there shall be credited against the
Purchase Price the amount of any deductible, proceeds previously received by the Sellers and any
deficiency of proceeds.

     10.2 Condemnation. If, prior to the Closing, all or any material portion of the
Properties including, access or parking thereto, is taken by eminent domain (or is the subject of a
pending taking which has not yet been consummated), the Sellers shall notify the Purchaser of such
fact promptly after obtaining knowledge thereof and the Purchaser shall have the right to terminate
this Agreement by giving notice to the Seller not later than ten (10) days after the giving of the
Sellers’ notice (and, if necessary, the Closing Date shall be extended until one day after the
expiration of such ten-day period). If the Purchaser elects to terminate this Agreement as
aforesaid, the Deposit shall be paid to the Purchaser, whereupon, this Agreement shall terminate
and be of no further force and effect and neither party shall have any liability to the other
hereunder. If the Purchaser shall not elect to terminate this Agreement as aforesaid, the sale of
the Properties shall be consummated as herein provided without any adjustment to the Purchase Price
(except to the extent of any condemnation award received by any of the Sellers prior to the
Closing) and the Sellers shall assign to the Purchaser at the Closing all of the Sellers’ right,
title and interest in and to all awards, if any, for the taking, and the Purchaser shall be
entitled to receive and keep all awards for the taking of the Properties or portion thereof.

     10.3 Material Portion. As used herein, damage or destruction, or a taking, of a
“material portion” of the Properties, shall mean (i) any damage or destruction to any one (1) Hotel
which can be repaired or restored to the prior existing condition only at a cost in excess of ten
percent (10%) of its Allocable Purchase Price and, in the case of more than one (1) Hotel, twenty
percent (20%) of the Purchase Price, or (ii) any taking that impairs the value of any one (1) Hotel in excess of ten percent (10%) of its
Allocable Purchase Price and, in the case of more than one (1) Hotel, twenty percent (20%) of the
Purchase Price.

     10.4 Survival. The parties’ obligations, if any, under this Section 10 shall
survive the Closing.

SECTION 11. DEFAULT

     11.1 Default by the FCH Parties. If any of the FCH Parties shall have made any
representation or warranty herein which

- 29 -

 

shall be untrue or misleading in any material respect, or
if any of the FCH Parties shall fail to perform any of the material covenants and agreements
contained herein to be performed by the FCH Parties, the Purchaser may pursue any and all remedies
available to it at law or in equity, including, but not limited to, a suit for specific performance
or other equitable relief. In no event shall the FCH Parties be liable for, nor shall the
Purchaser seek, any consequential, indirect or punitive damages.

     Notwithstanding the foregoing, in the event that, at any time after the Closing Date, any of
the FCH Parties shall fail to perform any of the material covenants and agreements contained herein
to be performed by the FCH Parties that are intended to survive the Closing hereunder, the FCH
Parties shall have the right and opportunity to cure such default, provided the FCH Parties
shall perform such cure within thirty (30) days after notice thereof from Purchaser to the FCH
Parties (unless such default is susceptible of cure but such cure cannot be accomplished with due
diligence within such thirty (30) day period and if, in addition, the FCH Parties commence to cure
such default within thirty (30) days after notice thereof from Purchaser and thereafter prosecutes
the curing of such default with all due diligence, such period of time (not to exceed an additional
seventy-five (75) days in the aggregate) shall be extended to such period of time as may be
necessary to cure such default with all due diligence.

     11.2 Default by the Purchaser. If the Purchaser shall have made any representation or
warranty herein which shall be untrue or misleading in any material respect, or if the Purchaser
shall fail to perform any of the covenants and agreements contained herein to be performed by it,
the FCH Parties may, as their sole and exclusive remedy at law and in equity, terminate this
Agreement and retain the Deposit, as liquidated damages and not as a penalty.

SECTION 12. MISCELLANEOUS

     (a) Agreement to Indemnify. (i) The FCH Parties shall indemnify and hold harmless the
Purchaser from and against any and all obligations, claims, losses, damages, liabilities, and
expenses (including, without limitation, reasonable attorneys’ and accountants’ fees and
disbursements) arising out of (x) events, contractual obligations, acts or omissions of the FCH Parties that occurred in
connection with the ownership or operation of any Property prior to the Closing or (y) any damage
to property of others or injury to or death of any person or any claims for any debts or
obligations occurring on or about or in

- 30 -

 

connection with any Property or any portion thereof at any
time or times prior to the Closing, and (ii) the Purchaser shall indemnify and hold harmless the
FCH Parties from and against any and all obligations, claims, losses, damages, liabilities and
expenses (including, without limitation, reasonable attorneys’ and accountants’ fees and
disbursements) arising out of (x) events, contractual obligations, acts or omissions of Purchaser
that occur in connection with the ownership or operation of any Property on or after the Closing,
or (y) any damage to property of others or injury to or death of any person or any claims for any
debts or obligations occurring on or about any Property or any portion thereof at any time or times
after the Closing.

     (ii) Whenever either party shall learn through the filing of a claim or the commencement of a
proceeding or otherwise of the existence of any liability for which the other party is or may be
responsible under this Agreement, the party learning of such liability shall notify the other party
promptly and furnish such copies of documents (and make originals thereof available) and such other
information as such party may have that may be used or useful in the defense of such claims and
shall afford said other party full opportunity to defend the same in the name of such party and
shall generally cooperate with said other party in the defense of any such claim.

     (iii) The provisions of this Section 12.1 shall survive the Closing and the
termination of this Agreement.

     12.2 Brokerage Commissions. Each of the parties hereto represents to the other
parties that it dealt with no broker, finder or like agent in connection with this Agreement or the
transactions contemplated hereby. The FCH Parties shall be solely responsible for and shall
indemnify and hold harmless the Purchaser and its respective legal representatives, heirs,
successors and assigns from and against any loss, liability or expense, including, reasonable
attorneys’ fees, arising out of any claim or claims for commissions or other compensation for
bringing about this Agreement or the transactions contemplated hereby made by any broker, finder or
like agent other than such loss, liability or expense arising from the Purchaser’s breach of its
representation made in this Section 12.2. The provisions of this Section 12.2
shall survive the Closing and any termination of this Agreement.

     12.3 Publicity. 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

- 31 -

 

otherwise furnish information regarding
this Agreement or the transactions contemplated to any third party without the consent of the other parties, which consent shall not be unreasonably withheld, delayed or conditioned, except as
required by law. No such pronouncements or press releases shall identify the Purchaser without the
consent of the Purchaser, which may be withheld in Purchaser’s sole discretion. No party, or its
employees shall trade in the securities of any parent or affiliate of the Sellers or of the
Purchaser until a public announcement of the transactions contemplated by this Agreement has been
made. No party shall record this Agreement or any notice thereof.

     12.4 Notices. (a) Any and all notices, demands, consents, approvals, offers,
elections and other communications required or permitted under this Agreement shall be deemed
adequately given if in writing and the same shall be delivered either in hand, by telecopier with
written acknowledgment of receipt, or by mail or Federal Express or similar expedited commercial
carrier, addressed to the recipient of the notice, postpaid and registered or certified with return
receipt requested (if by mail), or with all freight charges prepaid (if by Federal Express or
similar carrier).

     (a) All notices required or permitted to be sent hereunder shall be deemed to have been given
for all purposes of this Agreement upon the date of acknowledged receipt, in the case of a notice
by telecopier, and, in all other cases, upon the date of receipt or refusal, except that whenever
under this Agreement a notice is either received on a day which is not a Business Day or is
required to be delivered on or before a specific day which is not a Business Day, the day of
receipt or required delivery shall automatically be extended to the next Business Day.

     (b) All such notices shall be addressed,

     If to any of the FCH Parties, to:

	 	 	 
	 

	 	FelCor Lodging Trust Incorporated
	 

	 	545 E. John Carpenter Freeway
	 

	 	Suite 1300
	 

	 	Irving, TX 75062
	 

	 	Attn: Mr. Joel M. Eastman
	 

	 	[Telecopier No. 972-444-4949]

- 32 -

 

     with a copy to:

	 	 	 
	 

	 	FelCor Lodging Trust Incorporated
	 

	 	545 E. John Carpenter Freeway
	 

	 	Suite 1300
	 

	 	Irving, TX 75062
	 

	 	Attn: General Counsel
	 

	 	[Telecopier No. 972-444-4949]

     If to the Purchaser, to:

	 	 	 
	 

	 	Hospitality Properties Trust
	 

	 	400 Centre Street
	 

	 	Newton, Massachusetts 02458
	 

	 	Attn: Mr. John G. Murray
	 

	 	[Telecopier No. (617) 969-5730]

     with a copy to:

	 	 	 
	 

	 	Sullivan & Worcester LLP
	 

	 	One Post Office Square
	 

	 	Boston, Massachusetts 02109
	 

	 	Attn: Nancy S. Grodberg, Esq.
	 

	 	[Telecopier No. (617) 338-2880]

     (d) By notice given as herein provided, the parties hereto and their respective successors and
assigns shall have the right from time to time and at any time during the term of this Agreement to
change their respective addresses effective upon receipt by the other parties of such notice and
each shall have the right to specify as its address any other address within the United States of
America.

     12.5 Waivers, Etc. Any waiver of any term or condition of this Agreement, or of the
breach of any covenant, representation or warranty contained herein, in any one instance, shall not
operate as or be deemed to be or construed as a further or continuing waiver of any other breach of
such term, condition, covenant, representation or warranty or any other term, condition, covenant,
representation or warranty, nor shall any failure at any time or times to enforce or require
performance of any provision hereof operate as a waiver of or affect in any manner such party’s
right at a later time to enforce or require performance of such provision or any other provision
hereof. This Agreement may not be amended, nor shall any waiver, change, modification, consent or
discharge be effected, except by an instrument in writing executed by or on behalf of the party
against whom enforcement of any amendment, waiver, change, modification, consent or discharge is
sought.

- 33 -

 

     12.6 Assignment; Successors and Assigns. This Agreement and all rights and
obligations hereunder shall not be assignable by any party without the written consent of the other
parties, except that (x) Purchaser may assign this Agreement to any entity wholly owned, directly
or indirectly, by the Purchaser (provided, however, that, in the event this
Agreement shall be assigned to any entity wholly owned, directly or indirectly, by the Purchaser,
Hospitality Properties Trust shall remain liable for the obligations of the “Purchaser” hereunder).
In addition, Purchaser shall have the right to require that the Properties or any part thereof be
conveyed directly to its designee. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective legal representatives, successors and permitted
assigns. This Agreement is not intended and shall not be construed to create any rights in or to be enforceable in any part by any
other persons.

     12.7 Severability. If any provision of this Agreement shall be held or deemed to be,
or shall in fact be, invalid, inoperative or unenforceable as applied to any particular case in any
jurisdiction or jurisdictions, or in all jurisdictions or in all cases, because of the conflict of
any provision with any constitution or statute or rule of public policy or for any other reason,
such circumstance shall not have the effect of rendering the provision or provisions in question
invalid, inoperative or unenforceable in any other jurisdiction or in any other case or
circumstance or of rendering any other provision or provisions herein contained invalid,
inoperative or unenforceable to the extent that such other provisions are not themselves actually
in conflict with such constitution, statute or rule of public policy, but this Agreement shall be
reformed and construed in any such jurisdiction or case as if such invalid, inoperative or
unenforceable provision had never been contained herein and such provision reformed so that it
would be valid, operative and enforceable to the maximum extent permitted in such jurisdiction or
in such case.

     12.8 Counterparts, Etc. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument. This Agreement constitutes the entire agreement of the parties hereto with
respect to the subject matter hereof and shall supersede and take the place of any other
instruments purporting to be an agreement of the parties hereto relating to the subject matter
hereof.

- 34 -

 

     12.9 Governing Law. This Agreement shall be interpreted, construed, applied and
enforced in accordance with the laws of the State of New York applicable to contracts between
residents of New York which are to be performed entirely within New York, regardless of (i) where
this Agreement is executed or delivered; or (ii) where any payment or other performance required by
this Agreement is made or required to be made; or (iii) where any breach of any provision of this
Agreement occurs, or any cause of action otherwise accrues; or (iv) where any action or other
proceeding is instituted or pending; or (v) the nationality, citizenship, domicile, principal place
of business, or jurisdiction of organization or domestication of any party; or (vi) whether the
laws of the forum jurisdiction otherwise would apply the laws of a jurisdiction other than the
State of New York; or (vii) any combination of the foregoing.

     12.10 Waiver of Jury Trial. Except to the extent prohibited by law which cannot be
waived, each party hereto waives trial by jury in connection with any action or proceeding of any
nature whatsoever arising under, out of or in connection with this Agreement.

     12.11 Performance on Business Days. In the event the date on which performance or
payment of any obligation of a party required hereunder is other than a Business Day, the time for
payment or performance shall automatically be extended to the first Business Day following such
date.

     12.12 Attorneys’ Fees. If any lawsuit or arbitration or other legal proceeding arises
in connection with the interpretation or enforcement of this Agreement, the prevailing party
therein shall be entitled to receive from the other party the prevailing party’s costs and
expenses, including reasonable attorneys’ fees incurred in connection therewith, in preparation
therefor and on appeal therefrom, which amounts shall be included in any judgment therein.

     12.13 Section and Other Headings. The headings contained in this Agreement are for
reference purposes only and shall not in any way affect the meaning or interpretation of this
Agreement.

     12.14 Time of Essence. Time shall be of the essence with respect to the performance
of each and every covenant and obligation, and the giving of all notices, under this Agreement.

     12.15 Nonliability of Trustees. THE DECLARATION OF TRUST ESTABLISHING THE PURCHASER,
A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS THERETO (THE “DECLARATION”), IS DULY FILED
WITH

- 35 -

 

THE DEPARTMENT OF ASSESSMENTS AND TAXATION OF THE STATE OF MARYLAND, PROVIDES THAT THE NAME
“HOSPITALITY 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 THE PURCHASER SHALL BE HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY
OBLIGATION OF, OR CLAIM AGAINST, THE PURCHASER. ALL PERSONS DEALING WITH THE PURCHASER, IN ANY
WAY, SHALL LOOK ONLY TO THE ASSETS OF THE PURCHASER FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE
OF ANY OBLIGATION.

[SIGNATURES ON FOLLOWING PAGES]

- 36 -

 

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

	 	 	 	 	 	 
	 	 	FCH PARTIES:
	 
	 	 	 	 
	 	 	FELCOR LODGING TRUST INCORPORATED,
	 	 	a Maryland real estate investment trust
	 
	 	 	 	 
	 

	 	By:	 	/s/ Joel M. Eastman
	 

	 	 	 	 
	 

	 	 	 	Joel M. Eastman
	 

	 	 	 	Vice President

	 	 	 	 	 	 
	 	 	FELCOR TRS GUARANTOR L.P., a Delaware limited partnership
	 
	 	 	 	 
	 

	 	By:
	 	FelCor TRS Guarantor GP, L.L.C., a
	 

	 	 	 	Delaware limited liability company,
	 

	 	 	 	its General Partner

	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Joel M. Eastman
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joel M. Eastman
	 

	 	 	 	 	 	Vice President
	 
	 	 	 	 	 	 
	 	 	FELCOR LODGING COMPANY, L.L.C.,
	 	 	a Delaware limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joel M. Eastman
	 	 	 	 	 
	 	 	 	 	Joel M. Eastman
	 	 	 	 	Vice President

	 	 	 	 	 	 
	 	 	FELCOR/JPM ATLANTA CP HOTEL, L.L.C.,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	/s/ Joel M. Eastman
	 

	 	 	 	 
	 

	 	 	 	Joel M. Eastman
	 

	 	 	 	Vice President

[Signatures Continue on Next Page]

- i -

 

	 	 	 	 	 	 
	 	 	BHR LODGING TENANT COMPANY, a Delaware company
	 
	 	 	 	 
	 

	 	By:	 	/s/ Joel M. Eastman 
	 

	 	 	 	 
	 

	 	 	 	Joel M. Eastman
	 

	 	 	 	Vice President
	 
	 	 	 	 
	 	 	BHR OPERATIONS, L.L.C., a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	/s/ Joel M. Eastman 
	 

	 	 	 	 
	 

	 	 	 	Joel M. Eastman
	 

	 	 	 	Vice President

	 	 	 	 	 	 	 	 
	 	 	FELCOR TRS HOLDINGS, L.P., a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	FelCor TRS I, L.L.C.,
	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Joel M. Eastman 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joel M. Eastman
	 

	 	 	 	 	 	Vice President
	 
	 	 	 	 	 	 
	 	 	BHR TEXAS LEASING, L.P., a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	BHR Texas Leasing GP, L.L.C.,
	 	 	 	 	a Delaware limited liability company,
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Joel M. Eastman 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Joel M. Eastman
	 

	 	 	 	 	 	Vice President

[Signatures Continue on Next Page]

- ii -

 

	 	 	 	 	 	 
	 	 	PURCHASER:
	 
	 	 	 	 
	 	 	HOSPITALITY PROPERTIES TRUST,
	 	 	a Maryland real estate investment trust
	 
	 	 	 	 
	 

	 	By:	 	/s/ John G. Murray 
	 

	 	 	 	 
	 

	 	 	 	John G. Murray
	 

	 	 	 	President

[Signature Page for FelCor Purchase and Sale Agreement]

- iii -<PAGE>

                                    SALE AND
                              SUBLICENSE AGREEMENT
                                  BY AND AMONG
                                  MYOGEN, INC.,
                              WULFING HOLDING GMBH,
                               WULFING PHARMA GMBH
                                       AND
                                   MYOGEN GMBH

                         EFFECTIVE AS OF JANUARY 1, 2006

<PAGE>

                          SALE AND SUBLICENSE AGREEMENT

     This SALE AND SUBLICENSE AGREEMENT (the "AGREEMENT") executed as of this
27th day of January, 2006 ("EXECUTION DATE") and effective as of the 1st day of
January, 2006 (the "EFFECTIVE DATE"), by and among MYOGEN, INC., a corporation
organized and governed under the laws of Delaware, United States of America
("MYOGEN"), WULFING HOLDING GMBH, a corporation organized and governed under the
laws of the Federal Republic of Germany ("SUBLICENSEE"), WULFING PHARMA GMBH, a
corporation organized and governed under the laws of the Federal Republic of
Germany ("PHARMA") and MYOGEN GMBH, a corporation organized and governed under
the laws of the Federal Republic of Germany and, following the Stock Sale (as
defined below), a wholly-owned subsidiary of Sublicensee ("SUBSIDIARY" and
together with Pharma, the "GUARANTORS"). Myogen, Sublicensee and Guarantors are
sometimes referred to herein individually as a "PARTY" and together as the
"PARTIES."

     WHEREAS, Myogen is a biotechnology company that has expertise and
experience in the research and development of compounds for use in treating
cardiovascular disease;

     WHEREAS, Myogen has obtained from Sanofi-Aventis ("SANOFI-AVENTIS"), under
the terms of the License Agreement (as defined below), (a) an exclusive
worldwide license under Sanofi-Aventis' patents and know-how to develop and
commercialize Enoximone (as defined below) and (b) all of Sanofi-Aventis' rights
under certain existing trademarks relating to Enoximone in several countries
around the world;

     WHEREAS, Sublicensee wishes to acquire Myogen's rights to commercialize and
sell the Product and in connection therewith Myogen and Sublicensee have entered
into that certain Stock Purchase Agreement effective as of January 1, 2006 (the
"PURCHASE AGREEMENT") which contemplates the purchase by Sublicensee of all of
the outstanding capital stock of Myogen GmbH, Myogen's wholly-owned subsidiary
(the "STOCK SALE"); and

     WHEREAS, the consummation of the Stock Sale is conditioned upon the
execution and delivery of this Agreement and the grant of the sublicense to
Sublicensee as contemplated herein;

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and agreements contained herein, the Parties agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

     For purposes of this Agreement, the terms defined in this Article 1 has the
meanings specified below:

     1.1 "ADR" has the meaning set forth in Article 11.3.

     1.2 "AFFILIATE" means any corporation, firm, partnership or other entity,
whether de jure or de facto, which directly or indirectly owns, is owned or is
under common ownership with a Party to this Agreement to the extent of more than
fifty percent (50%) of the equity (or such lesser percentage which is the
maximum allowed to be owned by a foreign corporation in a

                                       1.

<PAGE>

particular jurisdiction) having the power to direct the affairs of the entity
and any person, firm, partnership, corporation or other entity actually
controlled by, controlling or under common control with a Party to this
Agreement. This term does not include those individuals or entities who have
made an equity investment in a Party but who have no significant operational
management with respect to the Party.

     1.3 "AUTHORITY" means the United States Food and Drug Administration or any
other equivalent regulatory authority in the Territory, including, without
limitation, the European Medicines Agency (EMEA).

     1.4 "BULK ENOXIMONE" mean approximately three hundred (300) kilograms of
bulk Enoximone drug substance in Myogen's existing inventory.

     1.5 "COMMERCIALIZATION" or "COMMERCIALIZE" means activities directed to
obtaining pricing and reimbursement approvals, marketing, promoting,
distributing, using, importing, exporting or selling the Product.
Commercialization will not include any activities related to Manufacturing.

     1.6 "COMPETITIVE PRODUCT INFRINGEMENT" has the meaning set forth in Article
6.5.1.

     1.7 "CONTROL" means possession of the ability to grant a license or
sublicense as provided for herein without violating the terms of any agreement
or other arrangement with or proprietary rights of any Third Party.

     1.8 "DRUG APPROVAL APPLICATION" means an application for Regulatory
Approval required before commercial sale or use of a Product as a drug in a
country in the Territory.

     1.9 "ENOXIMONE" means 1,3-dihydro-4-methyl-5-[4-(methythio)-benzoyl]-2H-
imidazol-2-one, and all pharmaceutically-acceptable forms (e.g., salts) and all
formulations thereof.

     1.10 "ENOXIMONE STARTER MATERIAL" means approximately five hundred (500)
kilograms of each Enoximone starter material (MIA, MTBA) in Myogen's existing
inventory.

     1.11 "EUROPE" means, for the purposes of this Agreement, Austria, Belgium,
Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal, Spain, Sweden, and the United Kingdom.

     1.12 "EUROPEAN RIGHTS" has the meaning set forth in Article 9.2.

     1.13 "FIELD" means the prevention, treatment and/or diagnosis of
cardiovascular diseases and disorders.

     1.14 "FINISHED PRODUCT" means that Product in finished saleable form in
Myogen's existing inventory.

     1.15 "INFORMATION" means techniques and data including inventions,
practices, methods, assays, knowledge, know-how, skill, experience, marketing,
pricing, distribution, cost,

                                       2.

<PAGE>

sales and manufacturing information and test data including pharmacological,
pharmacokinetic, toxicological and clinical data, analytical and quality control
data, stability and integrity data, formulation data, quality control data, and
safety and efficacy data.

     1.16 "LIABILITIES" has the meaning set forth in Article 4.7.

     1.17 "LICENSE AGREEMENT" means that certain License Agreement, effective as
of October 1, 1998, by and between Hoechst Marion Roussel, Inc. ("HMR") and
Myogen as amended by that certain First Amendment to the License Agreement,
effective as of November 23, 1999, by and between HMR and Myogen, that certain
Second Amendment to the License Agreement, effective as of June 2, 2003, by and
between Aventis Pharmaceuticals, Inc. (formerly HMR) ("AVENTIS") and Myogen and
that certain Third Amendment to the License Agreement, dated January 27, 2005,
by and between Aventis (now Sanofi-Aventis) and Myogen as the same may be
further amended from time to time and under which Myogen obtained from
Sanofi-Aventis the exclusive worldwide right to develop and commercialize
Enoximone in the Field.

     1.18 "LOSSES" has the meaning set forth in Article 10.1.1.

     1.19 "MANUFACTURING" or "MANUFACTURE" means all the activities relating to
production of Product, including without limitation, purchasing raw materials,
quality control and assurance, filling, finishing, labeling, packaging,
qualified person release, holding, shipping, transport and storage and the tests
and analyses conducted in connection therewith. Manufacturing excludes
activities relating to Commercialization.

     1.20 "MATERIAL BREACH" has the meaning set forth in Article 9.3.4.

     1.21 "MYOGEN DATA" means all Information related to the Product Myogen or
any of its Affiliates has in its possession arising out of all pre-clinical and
clinical research and development conducted by or on behalf of Myogen or its
Affiliates or disclosed Myogen to or its Affiliates by licensors and other
collaborators to the extent not subject to a restrictive confidentiality
arrangement with a Third Party.

     1.22 "MYOGEN INDEMNIFIED PARTIES" has the meaning set forth in Article
10.2.1.

     1.23 "MYOGEN KNOW-HOW" means Information related to the Product which (i)
Myogen discloses, or is required to disclose, to Sublicensee under this
Agreement and (ii) is within the Control of Myogen and its Affiliates, including
any HMR Know-How (as defined in the License Agreement) which Myogen or its
Affiliates Control pursuant to the License Agreement.

     1.24 "NET SALES" means Sublicensee's and/or its Affiliates' and/or all of
its permitted Third Party Sublicensees' gross sales of Products less the sum of
the following, to the extent each is actually incurred and included in the
invoice price and does not exceed the reasonable and customary amount for such
item in the market in which such sales occurred:

               (A) discounts, rebates and similar amounts;

                                       3.

<PAGE>

               (B) sales, tariff duties and/or use taxes directly imposed and
with reference to particular sales;

               (C) outbound transportation including packaging, handling and
insurance prepaid or allowed; and

               (D) amounts allowed or credited on returns.

          No deductions shall be made for commissions paid to individuals
whether they be with independent sales agencies or regularly employed by
Sublicensee and on its payroll, or for cost of collections. Products shall be
considered "sold" when billed out or invoiced. In the event that the sale is
made to an Affiliate, the Net Sale will not be less than an equivalent sale to a
non-Affiliate.

     1.25 "PAYMENTS" shall mean those payments from Sublicensee to Myogen set
forth in Article 4.1.

     1.26 "PRODUCT" means that intravenous formulation of Enoximone for use in
the Field marketed under the Trademarks.

     1.27 "REASONABLE DILIGENCE" shall mean commercially reasonable efforts, as
applicable, to conduct activities relating to the Product in the various
countries in the Territory, consistent with accepted business practices and
legal requirements, and comparable to efforts in the pharmaceutical industry
applicable to the particular activity relating to human pharmaceutical products
at an equivalent stage of development and similar market potential, profit
potential and strategic value in view of conditions then prevailing.

     1.28 "REGULATORY APPROVAL" means any approval (including pricing and
reimbursement approvals), product and/or establishment license, registration or
authorization of any Authority or other federal, state or local regulatory
agency, department, bureau or other governmental entity necessary for the
Manufacture and Commercialization of the Product in the Territory.

     1.29 "REGULATORY EXPENSES" shall mean any and all expenses, costs and
expenses incurred in obtaining and maintaining Regulatory Approval for the
Product, which expenses are attributable to the Product for use in the Field in
the Territory.

     1.30 "REGULATORY FILINGS" shall have the meaning set forth in Article
3.2.2.

     1.31 "S-A TERMINATION NOTICE" has the meaning set forth in Article 9.2.

     1.32 "SUBLICENSEE DATA" means all Information arising out of all activities
conducted by or on behalf of Sublicensee or its sublicensees, or disclosed to
Sublicensee by its licensors and other collaborators necessary to obtain
Regulatory Approval for marketing of Products in the Territory.

     1.33 "SUBLICENSEE INDEMNIFIED PARTIES" has the meaning set forth in Article
10.1.1.

                                       4.

<PAGE>

     1.34 "SUBLICENSEE KNOW-HOW" means Information related to the Product which
(i) Sublicensee discloses, or is required to disclose, to Myogen under this
Agreement and (ii) is within the Control of Sublicensee, including, without
limitation, all Information developed by or on behalf of Sublicensee relating to
the Product.

     1.35 "SUBLICENSEE PATENT" means any and all Patents for inventions made by
Sublicensee personnel on behalf of Sublicensee or its Affiliates which covers
the evaluation, manufacture, use, importation, offer for sale and/or sale of
Enoximone for development by Sublicensee within the Field or Product, which
Patent is owned or Controlled by Sublicensee or its Affiliates.

     1.36 "TERM" has the meaning set forth in Article 9.1.

     1.37 "TERMINATION EFFECTIVE DATE" has the meaning set forth in Article 9.2.

     1.38 "TERRITORY" means the world other than the United States and Canada,
subject to Article 9.2.

     1.39 "THIRD PARTY" means any entity other than Myogen or Sublicensee or
their respective Affiliates.

     1.40 "THIRD PARTY SUBLICENSEE" has the meaning set forth in Article 2.3.

     1.41 "TRADEMARKS" means the trademarks used in connection with the Product
in the Territory as set forth in SCHEDULE 1.41.

     1.42 "TRADEMARK COSTS" means the fees and expenses paid to outside counsel
and other Third Parties, direct costs of in-house counsel and filing and
maintenance expenses, incurred in connection with the establishment and
maintenance of rights under the Trademarks applicable to Product in the
Territory, including costs of filing and registration fees, and actions to
enforce or maintain a trademark and other proceedings.

     1.43 "TRADEMARK INFRINGEMENT CLAIMS" has the meaning set forth in Article
6.6.1.

     1.44 "TRANSITION SERVICES" means Myogen data retrieval at Myogen
facilities, consultation services, transition services and Commercialization
assistance related to the Products.

                                    ARTICLE 2

                       LICENSE GRANTS & REGULATORY MATTERS

     2.1 KNOW-HOW LICENSE TO SUBLICENSEE FOR COMMERCIALIZATION. Upon the terms
and subject to the conditions of this Agreement and the License Agreement,
including, without limitation, the payment obligations herein, Myogen grants to
Sublicensee an exclusive (even as to Myogen and its Affiliates) license under
the Myogen Know-How to conduct Manufacturing, pre-marketing activities,
Commercialization (including the right to make, have made (subject to Article
2.3), use, import (subject to Article 2.3), sell, offer for sale and have sold)
and related

                                       5.

<PAGE>

activities in the Territory with respect to the Product in accordance with the
terms of this Agreement.

     2.2 KNOW-HOW LICENSE TO CONDUCT REGULATORY APPROVALS. Upon the terms and
subject to the conditions of this Agreement and the License Agreement,
including, without limitation, the payment obligations herein, Myogen grants to
Sublicensee an exclusive license (even as to Myogen and its Affiliates) under
the Myogen Know-How to conduct the Regulatory Approvals in the Territory in
accordance with the terms of this Agreement with respect to the Product for use
in the Field.

     2.3 THIRD PARTY SUBLICENSEES. The licenses set forth in Article 2.1 and
Article 2.2 shall include the right to sublicense to Third Party Sublicensees,
but only upon prior written notice to Myogen and prior written consent of
Myogen; provided that that no consent shall be required for Third Party
Sublicensees that are granted only rights to distribute the Product for
Sublicensee in the Territory. Sublicensee may not exercise its "have made" or
"importation" rights under Article 2.1 without first obtaining Myogen's prior
written consent. "THIRD PARTY SUBLICENSEE" means a Third Party that enters into
a sublicense agreement with Sublicensee providing a sublicense to such Third
Party under Sublicensee's license provided by this Agreement.

     2.4 LICENSE AGREEMENT. Sublicensee hereby acknowledges that Myogen acts as
licensee under the License Agreement and Third Parties may own the rights to
some or all of the Myogen Know-How and Sublicensee acknowledges that the
sublicense granted hereunder to Sublicensee under the Myogen Know-How is
governed by the terms of the License Agreement. Sublicensee also acknowledges
that Myogen's performance under this Agreement cannot violate any of the terms
of the License Agreement which has been provided to Sublicensee. Sublicensee
agrees to abide by the terms and conditions of the License Agreement, and
perform those obligations of Myogen as if Sublicensee were Myogen where and to
the extent applicable.

     2.5 REGULATORY MATTERS AND COMMERCIALIZATION. Sublicensee shall, consistent
with Myogen's obligations under the License Agreement, use Reasonable Diligence
to (a) maintain all Regulatory Approvals and to Manufacture and Commercialize
the Product in the countries in the Territory where Product is distributed as of
the Effective Date and (b) obtain and maintain Regulatory Approvals, and to
Manufacture and Commercialize the Product in the remaining countries in the
Territory where the Product will be distributed by Sublicensee during the Term.

     2.6 TRADEMARKS. Subject to the terms and conditions of this Agreement,
Myogen hereby transfers whatever rights it may have under the Trademarks as of
the Effective Date. Sublicensee will, at its own expense, prepare and provide
the documents necessary to transfer the Trademark rights. Myogen will use its
commercially reasonable efforts to assist Sublicensee in the transfer
contemplated hereunder and shall execute such documentation as Sublicensee may
reasonably request in order to effectuate such transfer. As of the Effective
Date, Sublicensee will be responsible for all Trademark Costs.

     2.7 TERMINATION OF IMPLIED MYOGEN GMBH SUBLICENSE. Upon the Effective Date,
that certain Sales and Supply Agreement, dated as of February 1, 2000, by and
between Myogen and Subsidiary shall be terminated and of no further force and
effect.

                                       6.

<PAGE>

     2.8 RIGHT OF FIRST NEGOTIATION.

               (A) In the event that Myogen, at any time during the Term,
decides to pursue granting a sublicense to any Third Party to conduct
Manufacturing or Commercialization and related activities outside of the
Territory with respect to the Product (the "NEW TERRITORY"), Myogen will notify
Sublicensee in writing and thereby grant Sublicensee an exclusive option to
negotiate with Myogen for an exclusive license under the Myogen Know-How in the
New Territory in the Field (the "RIGHT OF NEGOTIATION").

               (B) Sublicensee must exercise the Right of Negotiation by
providing written notice to Myogen (the "RIGHT OF NEGOTIATION NOTICE") within
sixty (60) days after receiving written notice from Myogen as provided in
Article 2.8(a) of the Right of Negotiation.

               (C) If Sublicensee does not submit a Right of Negotiation Notice
to Myogen as provided in Article 2.8(b) prior to the expiration of the sixty
(60) day period referenced in Article 2.8(b), the Right of Negotiation will
immediately terminate at 12:01 a.m. Eastern Standard Time on the calendar day
that is immediately after the last calendar day of such sixty (60) day period
and Myogen will have no further obligation to Sublicensee with respect to the
Right of Negotiation for Product in the New Territory.

               (D) If Sublicensee exercises the Right of Negotiation by
providing a Right of Negotiation Notice as provided in Article 2.8(b), Myogen
and Sublicensee will negotiate in good faith, and use their diligent efforts, to
complete a license agreement during the Right of Negotiation Period pursuant to
which Sublicensee would obtain an exclusive license with respect to the Product
under the Myogen Know-How in the New Territory (the "NEW TERRITORY LICENSE
AGREEMENT"). The "RIGHT OF NEGOTIATION PERIOD" will be the period that commences
on the date on which Sublicensee provides Myogen with a Right of Negotiation
Notice as provided in Article 2.8(b) (for the purposes of this Article 2.8(d)
only, the "commencement date") and expires at 12:01 a.m. Eastern Standard Time
on the day immediately following the sixtieth (60th) day after the commencement
date. Such Right of Negotiation Period may be extended upon the mutual written
agreement of Myogen and Sublicensee prior to the expiration thereof as provided
in Article 2.8(e) or earlier terminated by the termination of this Agreement.

               (E) In the event Myogen and Sublicensee have not executed the New
Territory License Agreement during the Right of Negotiation Period, after
starting to negotiate the terms and conditions thereof in good faith: (i) Myogen
and Sublicensee may, upon their mutual written agreement prior to the expiration
of the Right of Negotiation Period, extend the Right of Negotiation Period for
successive additional periods of twenty (20) days; or (ii) if not extended by
Myogen and Sublicensee as provided in (i), the Right of Negotiation Period will
expire as provided in Article 2.8(d) and Myogen will have no further obligation
to Sublicensee with respect to the Right of Negotiation or Product in the New
Territory.

                                       7.

<PAGE>

                                    ARTICLE 3

                         REPORTS AND REGULATORY MATTERS

     3.1 OBLIGATIONS OF THE PARTIES.

          3.1.1. REPORTS. Sublicensee shall submit semi-annual written summary
reports which describe the progress of Commercialization and Regulatory Approval
efforts undertaken by it with regard to the Products under this Agreement
including, without limitation, the progress towards the Commercialization and
Regulatory Approval obligations set forth in this Agreement.

          3.1.2. MANUFACTURE AND COMMERCIALIZATION; EXPENSES. During the term of
this Agreement, Sublicensee shall bear its own costs and expenses incurred with
any Manufacturing and Commercialization conducted pursuant to this Agreement.

          3.1.3. TRANSITION SERVICES. Myogen will use commercially reasonable
efforts to provide Sublicensee with Transition Services as reasonably requested
by Sublicensee. During the period beginning on the Effective Date and ending six
(6) months thereafter ("TRANSITION PERIOD"), Myogen will provide Transition
Services at no charge to Sublicensee. After expiration of the Transition Period,
Sublicensee will pay Myogen for Transition Services performed by Myogen at two
hundred dollars ($200) per hour. Myogen shall submit written statements on a
quarterly basis to Sublicensee setting forth such expenses incurred by Myogen
for such quarter and Sublicensee shall reimburse Myogen for such expenses within
thirty (30) days thereafter.

     3.2 REGULATORY MATTERS.

          3.2.1. COMPLIANCE WITH REGULATIONS. Sublicensee and/or Subsidiary, as
applicable, and Myogen to the extent it is providing services, will conduct
its/their efforts hereunder in compliance with all applicable regulatory
requirements of the applicable Authority, including without limitation, the
guidelines of the International Conference on Harmonization of Technical
Requirements for Registration of Pharmaceuticals for Human Use.

          3.2.2. REGULATORY FILINGS. Sublicensee or Subsidiary shall, at its own
expense, prepare and submit all filings with the regulatory authorities with
respect to the Product in each country in the Territory as applicable (the
"REGULATORY FILINGS"), and Sublicensee or Subsidiary shall be responsible for
causing such applications to progress through the approval process in a timely
manner. Regulatory Expenses incurred in obtaining Regulatory Approval for the
Product shall be at the sole cost of Sublicensee or Subsidiary. Sublicensee or
Subsidiary shall, promptly after each such Regulatory Filing, deliver to Myogen
a report with a brief summary of such Regulatory Filing, which shall be held by
Myogen subject to the provisions of Article 5.

          3.2.3. MAINTENANCE OF RECORDS. Sublicensee and/or Subsidiary, as
applicable, shall maintain records with respect to activities conducted in
connection with their activities relating to the Product in sufficient detail
and in the manner appropriate for Regulatory Approval purposes and in a manner
which will reflect all clinical and pre-clinical studies conducted, results
achieved and data obtained by Sublicensee or Subsidiary in the course of such
activities.

                                       8.

<PAGE>

          3.2.4. ADVERSE EVENT REPORTING. Sublicensee and/or Subsidiary, as
applicable, shall be responsible for reporting of adverse experience information
to meet the current requirements for Adverse Drug Reaction reporting to the
applicable Authorities within the Territory. In addition, Sublicensee and/or
Subsidiary, as applicable, shall provide supplemental information at periodic
intervals and/or report adverse events at more frequent intervals if requested
by an applicable Authority. Sublicensee or Subsidiary, as applicable, shall
provide Myogen copies of any reports to the applicable Authorities under this
Article 3.2.4 within forty-eight (48) hours of the submission of such reports to
such applicable Authorities.

To the extent the obligations of this Article 3.2 are undertaken by Subsidiary,
Sublicensee will ensure that Subsidiary complies with such obligations.

     3.3 EXISTING INVENTORY. Subject to the terms and conditions set forth in
this Agreement, within forty-five (45) days after the Execution Date, Myogen
shall ship the Bulk Enoximone, the Enoximone Starter Material and the Finished
Product to Sublicensee "Free Carrier," Myogen site (FCA per INCOTERMS, 2000
version).

                                    ARTICLE 4

                             PAYMENTS AND ROYALTIES

     4.1 PAYMENTS. As consideration for the assets transferred to and the rights
granted to Sublicensee by Myogen under this Agreement, Sublicensee shall make
the following Payments to Myogen as promptly as practicable after the Execution
Date and in any event no later than February 10, 2006:

               (A) One Hundred Fifty Thousand U.S. Dollars ($150,000) for the
Bulk Enoximone;

               (B) Forty Thousand U.S. Dollars ($40,000) for the Enoximone
Starter Material;

               (C) One Hundred Seventy-Seven Thousand Three Hundred Ninety-Six
U.S. Dollars ($177,396) for the Finished Product;

               (D) Four Million Six Hundred Thousand U.S. Dollars ($4,600,000)
for the CTM Trademark (as identified on Schedule1.41); and

               (E) Ten Thousand U.S. Dollars ($10,000) for the Trademarks other
than the CTM Trademark.

     4.2 ROYALTIES. Sublicensee will, for use of the rights granted under
Articles 2.1 and 2.2, pay to Myogen on a quarterly basis within forty-five (45)
days after the end of each calendar quarter, periodic payments equal to Eight
Percent (8%) of Net Sales in the Territory that occurred in the immediately
preceding calendar quarter (the "NET SALES ROYALTY PERCENTAGE").

     4.3 DURATION OF ROYALTY OBLIGATIONS. If this Agreement is not terminated in
accordance with the other provisions hereof, Sublicensee's obligation to pay
earned royalties

                                       9.

<PAGE>

hereunder in a particular country other than the Terminated Countries (as
defined in the License Agreement) shall continue for so long as Myogen is
obligated to pay royalties to Sanofi-Aventis for Net Sales of the Product under
the License Agreement. If this Agreement is not terminated in accordance with
the other provisions hereof, Sublicensee's obligation to pay earned royalties
hereunder in the Terminated Countries (as defined in the License Agreement)
shall continue until October 1, 2011.

     4.4 LOSS OF REGISTRATION. Provided that Sublicensee is otherwise in
compliance with the terms and conditions of this Agreement, including, without
limitation, Sublicensee's obligations under Article 3 to update the applicable
regulatory dossier, in the event of a lost or suspended registration of the
Product due to regulatory actions by an applicable Authority in a country set
forth on EXHIBIT A prior to the third anniversary of the Effective Date,
Sublicensee shall be entitled to the following credits:

               (A) For each country set forth on EXHIBIT A in which Sublicensee
is required to cease selling the Product during the period commencing on the
Effective Date through the first anniversary of the Effective Date, Sublicensee
shall be entitled to an amount equal to the product of (i) the dollar amount for
such country set forth under the heading "Year 1" on EXHIBIT A multiplied by
(ii) a fraction, the numerator of which is the number of days during such period
in which Sublicensee was actually prohibited from selling the Product and the
denominator of which is 365;

               (B) For each country set forth on EXHIBIT A in which Sublicensee
is required to cease selling the Product during the period commencing on the
first anniversary of the Effective Date through the second anniversary of the
Effective Date, Sublicensee shall be entitled to an amount equal to the product
of (i) the dollar amount for such country set forth under the heading "Year 2"
on EXHIBIT A multiplied by (ii) a fraction, the numerator of which is the number
of days during such period in which Sublicensee was actually prohibited from
selling the Product and the denominator of which is 365; and

               (C) For each country set forth on EXHIBIT A in which Sublicensee
is required to cease selling the Product during the period commencing on the
second anniversary of the Effective Date through the third anniversary of the
Effective Date, Sublicensee shall be entitled to an amount equal to the product
of (i) the dollar amount for such country set forth under the heading "Year 3"
on EXHIBIT A multiplied by (ii) a fraction, the numerator of which is the number
of days during such period in which Sublicensee was actually prohibited from
selling the Product and the denominator of which is 365.

Each of the payments contemplated under this Article 4.4 shall, at the sole
option of Myogen, be either (i) offset against future payment obligations of
Sublicensee under Article 4.2 in which case Myogen shall provide Sublicensee
written notice of such determination within forty-five (45) days after the end
of the applicable time period under Article 4.4(a), (b) or (c) above or (ii)
paid by Myogen within forty-five (45) days after the end of the applicable time
period under Article 4.4(a), (b) or (c) above.

     4.5 ROYALTY PAYMENTS AND REPORTS. Sublicensee shall make royalty payments
under this Agreement to Myogen or its designee along with the report summarizing
the Net Sales

                                       10.

<PAGE>

of any Products by Sublicensee, its Affiliates or Third Party Sublicensees, if
any, during the relevant quarter within forty-five (45) days following the end
of each calendar quarter. Such reports will contain Net Sales of all Products
for each country in the Territory. All payments to Myogen shall be in U.S.
currency. For the purpose of calculating payments, the currency exchange rate
for converting any currency to U.S. dollars shall be the exchange rate in the
key currency cross rates table in the final edition of The Wall Street Journal
(U.S. Eastern Edition) or in the case the currency exchange rate is not
published in The Wall Street Journal, the mid-point of the closing bid and ask
price of "Reuter's 2000 Information Service" historical databases, on the last
business day of each calendar quarter to which such payment relates. A "business
day" is a day on which banks are open for business in the country of the
currency to be translated. Unless Myogen instructs Sublicensee otherwise,
payments pursuant to this Article 4 shall be made by bank wire transfer as
follows:

          Myogen, Inc.
          Silicon Valley Bank, NA
          Account Number: 3300364754
          ABA Routing Number: 121140399

     4.6 TAXES. Myogen shall pay any and all taxes levied on account of
royalties it receives under this Agreement. If laws or regulations require that
taxes be withheld, then Sublicensee will (a) deduct those taxes from the
remittance royalty, (b) timely pay the taxes to the proper taxing authority and
(c) send proof of payment to Myogen within thirty (30) days following such
payment.

     4.7 GUARANTY. Each of the Guarantors hereby jointly, severally and
unconditionally, as primary obligor and not merely as surety, guarantees the
full and prompt performance of the Payments by Sublicensee to Myogen hereunder
(all such obligations being herein collectively call the "LIABILITIES"). Each of
the Guarantors hereby expressly waives (a) notice of the existence or creation
or non-payment of all or any of the Liabilities; (b) any obligation of Myogen to
proceed directly against or exhaust any collateral held by Myogen from
Sublicensee, any other guarantor, or any other person; and (c) any claim or
right which Guarantors may now have or hereafter acquire against Sublicensee or
any other person or entity that arises from the existence, payment, performance
or enforcement of the obligations of Guarantors hereunder, including (without
limitation) any right of subrogation, reimbursement, restitution, exoneration,
contribution or indemnification.

     4.8 BLOCKED CURRENCY. In each country where the local currency is blocked
or cannot be removed from such country, Sublicensee will pay the royalty owed on
Net Sales in that country in U.S. currency to Myogen at the exchange rate in
Article 4.5.

     4.9 PAYMENTS TO OR REPORTS BY AFFILIATES. Any payment required under any
provision of this Agreement to be made to either Party or any report required to
be made by either Party shall be made to or by an Affiliate of that Party if
designated by that Party as the appropriate recipient or reporting entity.

                                       11.

<PAGE>

     4.10 NO MULTIPLE ROYALTIES. No multiple royalties shall be payable because
any Product, its manufacture, use, lease or sale are or shall be covered by the
Myogen Know-How licensed under this Agreement.

                                    ARTICLE 5

                                 CONFIDENTIALITY

     5.1 CONFIDENTIALITY; EXCEPTIONS. Except to the extent expressly authorized
by this Agreement or otherwise agreed in writing, the Parties agree that, for
the term of this Agreement and for seven (7) years thereafter, the receiving
Party shall keep confidential and shall not publish or otherwise disclose or use
for any purpose other than as provided for in this Agreement any Information
related to the Products and other information and materials furnished to it by
the other Party pursuant to this Agreement, or any provisions of this Agreement
or the License Agreement that are the subject of an effective order of the
Securities and Exchange Commission granting confidential treatment pursuant to
the Securities Exchange Act of 1934, as amended (collectively, "CONFIDENTIAL
INFORMATION"), except to the extent that it can be established by the receiving
Party that such Confidential Information:

               (A) was already known to the receiving Party at the time of
disclosure by the other Party;

               (B) was generally available to the public or otherwise part of
the public domain at the time of its disclosure to the receiving Party;

               (C) became generally available to the public or otherwise part of
the public domain after its disclosure and other than through any act or
omission of the receiving Party in breach of this Agreement;

               (D) was disclosed to the receiving Party by a Third Party who had
no obligation to the disclosing Party not to disclose such information to
others; or

               (E) was independently developed by the receiving Party without
breach of the provisions of this Agreement (and can be verified by the
disclosing Party as such).

     5.2 AUTHORIZED DISCLOSURE. Each Party may disclose Confidential Information
hereunder to the extent such disclosure is reasonably necessary in (a) filing or
prosecuting patent applications, (b) prosecuting or defending litigation, (c)
complying with applicable laws or regulations or (d) conducting pre-clinical or
clinical trials, provided that if a Party is required by law or regulation to
make any such disclosure of the other Party's Confidential Information it will,
except where impracticable for necessary disclosures (e.g., in the event of
medical emergency), give reasonable advance notice to the other Party of such
disclosure requirement and, except to the extent inappropriate in the case of
patent applications, will use its reasonable efforts to secure confidential
treatment of such Confidential Information required to be disclosed. In addition
each Party shall be entitled to disclose, under a binder of confidentiality
containing provisions as protective as those of this Article 5, Confidential
Information to any Third Party for the purpose of carrying out the purposes of
this Agreement. Nothing in this Article 5 shall restrict any Party from using
for any purpose consistent with the terms of this Agreement any

                                       12.

<PAGE>

Information developed by it during the term of this Agreement. When a Party
makes disclosure of Confidential Information to any of its employees, it shall
obtain an acknowledgment and agreement from each such employee that such
employee agrees to be bound by the provisions of Article 5.1 hereof or the
equivalent.

     5.3 SURVIVAL. This Article 5 shall survive the termination or expiration of
this Agreement for a period of seven (7) years.

     5.4 MANUFACTURING AGREEMENT. All Information exchanged between the Parties
under the Contract Manufacturing Agreement, dated January 31, 2001, by and
between Pharma and Myogen and/or its Affiliates shall be deemed Confidential
Information and shall be subject to the terms of this Article 5, and shall be
included within the definitions of Myogen Know-How and Sublicensee Know-How.

                                   ARTICLE 6

                 OWNERSHIP OF INTELLECTUAL PROPERTY; ENFORCEMENT

     6.1 OWNERSHIP.

          6.1.1. As between Myogen and Sublicensee, Myogen shall solely own, and
it alone has the right to apply for patents within and outside of the United
States for any inventions made solely by Myogen's or its licensors' personnel or
consultants in the course of performing work under this Agreement.

          6.1.2. As between Myogen and Sublicensee, Sublicensee shall solely
own, and Sublicensee alone has the right to apply for patents within and outside
of the United States for any inventions made solely by Sublicensee's personnel
or consultants in the course of performing work under this Agreement.

     6.2 DISCLOSURE OF PATENTABLE INVENTIONS. Each Party shall provide to the
other any invention disclosure submitted in the normal course of performing its
obligations hereunder which discloses an invention related to Enoximone or the
Products in the Field. Such invention disclosures shall be provided to the other
Party promptly after submission and in no event later than ten (10) days after
the end of the calendar quarter in which the disclosure was submitted; provided,
however, that no disclosure is required that would constitute publication prior
to the time a patent issues, and in any case all submissions will be considered
Confidential Information of the Party submitting the invention disclosure.
Sublicensee shall disclose to Myogen any and all Sublicensee Patents,
Sublicensee Know-How and Sublicensee Data.

     6.3 LICENSE TO MYOGEN.

          6.3.1. LICENSE FOR COMMERCIALIZATION. Upon the terms and subject to
the conditions of this Agreement and subject to payment by Myogen to Sublicensee
of such royalty payments as are mutually agreed upon by Myogen and Sublicensee,
Sublicensee grants to Myogen an exclusive license (even as to Sublicensee and
its Affiliates) under the Sublicensee Patents, Sublicensee Know-How and the
Sublicensee Data to conduct Manufacturing, pre-marketing activities,
Commercialization, to make, have made, use, import, sell, offer for sale and

                                       13.

<PAGE>

have sold and related activities outside the Territory with respect to the
Product in accordance with the terms of this Agreement. Such license shall
include the right to grant sublicenses; provided that such sublicenses are made
subject to the terms of this Agreement and Myogen remains responsible for any
breach by a sublicensee of the sublicense.

          6.3.2. LICENSE TO CONDUCT DEVELOPMENT. Upon the terms and subject to
the conditions of this Agreement and subject to payment by Myogen to Sublicensee
of such royalty payments as are mutually agreed upon by Myogen and Sublicensee,
Sublicensee grants to Myogen an exclusive license (even as to Sublicensee and
its Affiliates) under the Sublicensee Patents, Sublicensee Know-How and the
Sublicensee Data to conduct development and Regulatory Approvals outside the
Territory in accordance with the terms of this Agreement with respect to the
Product for use in the Field. Such license shall include the right to grant
sublicenses; provided that such sublicenses are made subject to the terms of
this Agreement and Myogen remains responsible for any breach by a sublicensee of
the sublicense.

     6.4 THIRD PARTY PATENT RIGHTS.

          6.4.1. Myogen represents and warrants that to its knowledge that there
are no Third Party rights which may be infringed by the manufacture or sale of
any Product, the use of any Myogen Know-How or any other activity contemplated
by this Agreement.

          6.4.2. Neither Party makes any representation or warranty to the
other, other than that made in this Article 6.4, with respect to the validity,
enforceability, perfection or dominance of any patent or other proprietary right
or with respect to the absence of rights of Third Parties which may be infringed
by the manufacture or sale of any Product, the use of any Know-How or any other
activity contemplated by this Agreement. Each Party agrees to bring to the
attention of the other Party any patent or patent application it discovers, or
has discovered, and which relates to the subject matter of this Agreement.

     6.5 ENFORCEMENT RIGHTS.

          6.5.1. GENERAL.

               (A) In the event a Third Party, through the actual or proposed
manufacture, export, use, sale or offer for sale of a product in the Territory
competitive with the Product infringes and is reasonably likely to infringe
("COMPETITIVE PRODUCT INFRINGEMENT") any Myogen Know-How, as between Myogen and
Sublicensee, Sublicensee has the sole and exclusive right to institute,
prosecute and control any action or proceeding with respect to such
infringement, and the right to any and all relief, recovery and the like. Myogen
has the right to participate and be represented in such action by counsel of its
own selection at its own expense. Myogen agrees to be joined as a party
plaintiff, if necessary in any such action, and to give Sublicensee reasonable
assistance and any needed authority to control, file and to prosecute such
action, at Sublicensee's expense.

               (B) If either Party learns or determines in good faith that there
is or is a likelihood of Competitive Product Infringement of any Myogen Know-How
by a Third Party in the Territory, the Party first having knowledge shall
promptly notify the other Party in writing thereof, which notice shall set forth
the facts of such actual or potential infringement in

                                       14.

<PAGE>

reasonable detail. If Sublicensee, fails to institute and prosecute an action or
proceeding to abate any actual infringement within a period of thirty (30) days
after receiving written notice of actual infringement or otherwise having
knowledge of the actual infringement, then Myogen has the right, but not the
obligation, to bring and prosecute any action and Sublicensee agrees to be
joined as a party plaintiff in such action and to give Myogen all authority to
control, file and prosecute the action as may be necessary; provided, however,
that Sublicensee shall have the right to participate and to be represented in
any such action by counsel of its choice.

               (C) The Parties' costs of intellectual property enforcement
(including internal costs and expenses specifically attributable to said patent
enforcement) and related recoveries with respect to actions brought under this
Article 6.5.1 shall be the responsibility and to the benefit of Sublicensee,
except as otherwise noted herein. Any amounts recovered in such action referred
to in this Article 6.5.1 shall be recovered by Sublicensee.

               (D) No settlement or consent judgment or other voluntary final
disposition of suit under this Article 6.5.1 may be entered into without the
consent of Myogen, which consent shall not be withheld unreasonably or delayed.

          6.5.2. SETTLEMENT OF THIRD PARTY CLAIMS FOR PRODUCTS; ROYALTY
REDUCTION. If a Third Party asserts that a patent or other right owned by it in
the Territory is infringed by the manufacture, use or sale of the Product and if
following the conclusion of proceedings brought as a result of such
infringement, Sublicensee is required to pay the Third Party any payment of any
kind for the right to sell the Product in a particular country, the royalty rate
then payable to Myogen attributable to such country shall be reduced by one-half
(but shall in no event be less than the minimum royalty percentage that Myogen
is required to pay Sanofi-Aventis under the License Agreement). The royalty rate
shall return to its previous level once Sublicensee has fully satisfied the
payment due to the Third Party. In the event Sublicensee is required to pay to
the Third Party a royalty due to an alleged infringement, then the royalty rate
payable to Myogen attributable only to sales in such country in which the
royalty is required to be paid shall be reduced by one-half of the royalty rate
payable to the Third Party (but shall in no event be less than the minimum
royalty percentage that Myogen is required to pay Sanofi-Aventis under the
License Agreement). Such royalty rate shall return to its prior level once the
royalty obligations to the Third Party have been satisfied. No settlement or
consent judgment or other voluntary final disposition of a suit under this
Article 6.5.2 may be entered into without the mutual consent of Myogen and
Sublicensee which shall not be unreasonably withheld or delayed.

     6.6 INFRINGEMENT OF TRADEMARKS.

          6.6.1. Each Party shall notify the other Party promptly upon learning
of any actual or alleged infringement of any Trademark or of any unfair trade
practices, trade dress imitation, passing off of counterfeit goods, or like
offenses, or any such claims (hereinafter "TRADEMARK INFRINGEMENT CLAIMS")
brought by a Third Party against a Party in connection with the Product in the
Territory. Upon learning of such Trademark Infringement Claim, Sublicensee shall
take all reasonable and appropriate steps to resolve the Trademark Infringement
Claim, with the reasonable cooperation and assistance of Myogen. All of the
reasonable direct costs of in-house counsel, the fees and expenses paid to
outside counsel and other reasonable direct costs incurred in bringing,
maintaining and prosecuting any action described in this Article 6.6.1 shall

                                       15.

<PAGE>

be included in Trademark Costs and shall be borne by Sublicensee, and any
remaining recovery shall be split fifty percent (50%) to Sublicensee and fifty
percent (50%) to Myogen.

          6.6.2. Each Party shall notify the other Party promptly upon learning
of any actual or alleged Trademark Infringement Claims brought by a Third Party
against a Party in connection with a Product in the Territory. Upon learning of
such Trademark Infringement Claim, Sublicensee will take all reasonable and
appropriate steps to resolve such Trademark Infringement Claim, with the
reasonable cooperation and assistance of Myogen. All of the reasonable direct
costs of in-house counsel, the fees and expenses paid to outside counsel other
reasonable direct costs incurred in bringing, maintaining and prosecuting any
action described in this Article 6.6.2 shall be borne solely by Sublicensee.

     6.7 NO EFFECT OF BANKRUPTCY ON LICENSES. All licenses and grants to a party
under or pursuant to this Agreement by the other party are, and shall otherwise
be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code (11
U.S.C. Section 101 et seq.) (the "BANKRUPTCY CODE"), present conveyances of
"intellectual property" as defined therein. The parties agree that the licensee,
as the owner of such rights, shall retain and may fully exercise all of its
rights and elections under the Bankruptcy Code. The parties further agree that,
in the event that either party ceases to do business in the ordinary course or
if any proceeding is instituted by or against a party seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief or composition of it or its debts
under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking an entry of an order for relief or the appointment of a
receiver, trustee or other similar official for it or any substantial part of
its property or it shall take any action to authorize any of the foregoing
actions, the licensee shall have the right to assume, retain and enforce its
rights under this Agreement.

                                    ARTICLE 7

                   REPRESENTATIONS AND WARRANTIES; EXCLUSIVITY

     7.1 REPRESENTATIONS AND WARRANTIES. Each Party hereby represents and
warrants to the other Party that this Agreement is a legal and valid obligation
binding on such Party and enforceable in accordance with its terms, subject to
laws regarding bankruptcy or insolvency generally, provided that the Parties
acknowledge and agree that this Agreement constitutes a license of "intellectual
property" as provided in the Bankruptcy Code. The execution delivery and
performance of the Agreement by such Party does not conflict with any agreement,
instrument or understanding, oral or written, to which it is a Party or by which
it is bound, nor violate any law or regulation of any court, governmental body
or administrative or other agency having jurisdiction over it. Such Party
represents and warrants that it has not, and covenants that during the term of
the Agreement it will not, grant to any Third Party any rights which would
conflict or interfere with or curtail or impair the rights granted to the other
Party hereunder.

     7.2 EXCLUSIVITY; NON-COMPETITION WITHIN THE FIELD. During the term of this
Agreement: Myogen and its Affiliates shall not, directly or indirectly, conduct,
have conducted or fund any research, development, regulatory, or
commercialization activity of any intravenous formulation of Enoximone in the
Territory and in the Field other than pursuant to the terms and

                                       16.

<PAGE>

conditions of this Agreement. Sublicensee acknowledges that its activities and
operations pursuant to this Agreement shall be the principle mechanism by which
Sublicensee will Commercialize the Products.

                                    ARTICLE 8

                              INFORMATION & REPORTS

     8.1 RECORDS OF REVENUES AND EXPENSES. Sublicensee will maintain complete
and accurate accounts and records of revenues, costs, expenses and payments
earned or made in connection with this Agreement and such records shall be
available for examination at Myogen's expense during Sublicensee's reasonable
business hours for a period of two (2) years from creation of the individual
records. In addition, not more often than once each year, Myogen may designate a
firm of certified public accountants acceptable to Sublicensee to verify the
correctness of calculations and classifications of such revenues, costs,
expenses or payments earned or made in connection with this Agreement. Amounts
that are determined to be due as a result of any variances in revenues, costs,
expenses or payments earned or made in connection with this Agreement discovered
during such audit shall be paid by Sublicensee within thirty (30) days after the
conclusion of the audit (subject to Article 11 hereof). If the audit results in
a variance of more than five percent (5%) in favor of Myogen, the reasonable
audit expenses of Myogen shall be paid by Sublicensee. Any records or accounting
information received from Myogen shall be included within the definition of
Confidential Information for purposes of Article 5.

                                    ARTICLE 9

                              TERM AND TERMINATION

     9.1 TERM. This Agreement shall commence as of the Effective Date and shall
continue unless terminated as provided herein in its entirety ("TERM") or with
respect to certain countries in the Territory as set forth herein.

     9.2 TERMINATION OF LICENSE AGREEMENT BY SANOFI-AVENTIS. Subject to Article
9.2 of the License Agreement, Sanofi-Aventis has the right to terminate the
License Agreement in its entirety only during the period prior to the first
Regulatory Approval of an Enoximone product (other than the Product) in the
United States if Myogen shall either (a) discontinue its development obligations
as set forth in Article 3.6.1(a) of the License Agreement or, (b) fails to meet
the milestone set forth in Article 3.6.1(b) of the License Agreement.
Termination of the License Agreement by Sanofi-Aventis must be made pursuant to
a written notice (the "S-A TERMINATION NOTICE") delivered by Sanofi-Aventis to
Myogen within ninety (90) days after the expiration of the time period with
respect to which such notice is being delivered. Such termination shall be
effective as of thirty (30) days following delivery of the S-A Termination
Notice to Myogen (the "TERMINATION EFFECTIVE DATE"). If Sanofi-Aventis
terminates the License Agreement as set forth above, pursuant to the License
Agreement, Myogen may retain all rights granted under Article II of License
Agreement to make, manufacture and commercialize the Product in the Europe only
(the "EUROPEAN RIGHTS"). In the event Sanofi-Aventis does terminate the License
Agreement under Article 9.2 of the License Agreement during the Term of this

                                       17.

<PAGE>

Agreement, Myogen will retain the European Rights in accordance with Article 9.2
of the License Agreement and the Territory will then be restricted to Europe as
defined in Article 1, unless Sanofi-Aventis agrees in writing to expand the
Territory to include countries outside of Europe as defined in Article 1.
Notwithstanding the forgoing, the parties acknowledge that Myogen and
Sanofi-Aventis are currently negotiating a fourth amendment to the License
Agreement which would amend Article 9.2 of the License Agreement (the "FOURTH
AMENDMENT"). This Section 9.2 will be void upon execution of the Fourth
Amendment.

     9.3 TERMINATION FOR MATERIAL BREACH.

          9.3.1. Subject to the provisions of this Article 9.3, if either Party
has committed a Material Breach (as defined below) and such Material Breach
shall remain uncured and shall be continuing for a period of sixty (60) days
following receipt of written notice thereof from the non-breaching Party, then,
in addition to any and all other rights and remedies that may be available, the
non-breaching Party has the right to terminate this Agreement effective upon the
expiration of such sixty (60) day period. Any such written notice of alleged
Material Breach from the non-breaching Party shall include a reasonably detailed
description of all relevant facts and circumstances demonstrating, supporting
and/or relating to each such alleged Material Breach by the breaching Party.

          9.3.2. If (i) Sublicensee terminates this Agreement pursuant to the
provisions of this Article 9.3 other than for Material Breach by Myogen of
Myogen's obligations under Article 7.2 or (ii) Myogen terminates this Agreement
pursuant to the provisions of this Article 9.3 and provides Sublicensee notice
of its intention to apply certain of the provisions below, then the following
provisions (or in the case of termination by Myogen under clause (ii) above,
those provisions set forth below which Myogen wishes to enforce as set forth in
Myogen's notice to Sublicensee) will apply:

               (A) all licenses and rights in the Myogen Know-How granted to
Sublicensee hereunder shall terminate;

               (B) all Confidential Information supplied by each Party to the
other Party shall be promptly destroyed by each Party and each Party shall
certify such destruction to the other, except that each Party may retain one
copy of such information solely for legal archive purposes;

               (C) Sublicensee and Subsidiary shall cooperate in the transfer to
Myogen of all NDAs, Drug Approval Applications and Regulatory Approvals related
to the Product, and shall take such other actions and execute such other
instruments, assignments and documents as may be necessary to effect the
transfer of rights hereunder to Myogen; and

               (D) effective upon the effective date of termination of the
Agreement by Myogen under Article 9.3, Sublicensee hereby grants to Myogen a
non-exclusive, world-wide, royalty-free license, with the right to grant and
authorize the grant of sublicenses, under the Sublicensee Patents, Sublicensee
Know-How and the Sublicensee Data to (i) conduct Manufacturing, pre-marketing
activities, Commercialization, to make, have made, use, import, sell, offer for
sale and have sold and related activities inside and outside the Territory with

                                       18.

<PAGE>

respect to the Product and (ii) conduct Regulatory Approval activities inside
and outside the Territory with respect to the Product for use in the Field.

          9.3.3. If Sublicensee terminates this Agreement pursuant to the
provisions of this Article 9.3 due to a Material Breach by Myogen of Myogen's
obligations under Article 7.2 and provides Myogen notice of its intention to
apply certain of the provisions below, then the following provisions (to the
extent they are set forth in Sublicensee's notice to Myogen of such Material
Breach) will apply:

               (A) Myogen shall reimburse all Payments effected through the date
of such termination;

               (B) Sublicensee's royalty obligations under Article 4.2 shall
cease immediately upon such termination;

               (C) effective upon the effective date of such termination, Myogen
hereby grants to Sublicensee a non-exclusive, royalty-free license, with the
right to grant and authorize sublicenses, under the Myogen Know-How to (i)
conduct Manufacturing, pre-marketing activities, Commercialization, to make,
have made, use, import, sell, offer for sale and have sold and related
activities in the Territory with respect to the Product and (ii) conduct
Regulatory Approval activities in the Territory with respect to the Product for
use in the Field; and

               (D) all Confidential Information supplied by each Party to the
other Party shall be promptly destroyed by each Party and each Party shall
certify such destruction to the other, except that each Party may retain one
copy of such information solely for legal archive purposes.

          9.3.4. For purposes of this Article 9.3, "MATERIAL BREACH" means the
breach or failure to perform, in a material respect, a material obligation under
this Agreement. Without limiting the foregoing and by way of example only, the
term "Material Breach" shall be deemed to include the failure of Sublicensee in
a material respect to meet Sublicensee's payment or non-compete obligations or a
failure of Myogen in a material respect to meet Myogen's non-compete
obligations.

          9.3.5. Termination of this Agreement pursuant to this Article 9.3
shall not relieve the breaching Party of any liability, including any obligation
of Sublicensee to make payments hereunder, which accrued hereunder prior to the
effective date of such termination, nor preclude the non-breaching Party from
pursuing all rights and remedies it may have hereunder or at law or in equity
with respect to any breach of this Agreement nor prejudice the non-breaching
Party's right to obtain performance of any obligation. For purposes of this
Article 9.3, any unpaid Payments shall be due and payable upon termination of
this Agreement by Myogen pursuant to this Article 9.3.

          9.3.6. The provisions of this Article 9.3 shall survive termination of
this Agreement for a period of seven (7) years.

                                       19.

<PAGE>

     9.4 LICENSE OF TRADEMARKS UPON TERMINATION. Should this Agreement terminate
for any reason pursuant to Article 9.3 other than for Material Breach by Myogen
of Myogen's obligations under Article 7.2, promptly after the written request of
Myogen, Sublicensee shall grant or have granted to Myogen an exclusive,
perpetual, irrevocable, transferable, royalty-free license (with the right to
grant sublicenses) to use the Trademarks in connection with the Products in the
Territory.

                                   ARTICLE 10

                                 INDEMNIFICATION

     10.1 INDEMNIFICATION BY MYOGEN.

          10.1.1. SUBLICENSEE INDEMNIFIED PARTIES. Myogen hereby agrees to
indemnify, save, defend and hold Sublicensee and its Affiliates, officers,
directors, agents and employees (the "SUBLICENSEE INDEMNIFIED PARTIES") harmless
from and against any and all suits, claims, actions, demands, liabilities,
expenses and/or losses, including reasonable legal expense and attorneys' fees
(collectively, "LOSSES"), incurred by or against any Sublicensee Indemnified
Parties, which arise out of any breach of this Agreement by Myogen, or any
negligence or willful misconduct by Myogen, except to the extent such Losses are
attributable to the breach of this Agreement by Sublicensee or any Sublicensee
Indemnified Parties or any negligence or willful misconduct by Sublicensee or
any Sublicensee Indemnified Parties.

          10.1.2. NOTICE OF CLAIM. In the event that a Sublicensee Indemnified
Party seeks indemnification under Article 10.1.1, it shall inform Myogen of such
claim as soon as reasonably practicable after it receives notice of the claim
and shall permit Myogen to assume direction and control of the defense of the
claim (including the right to settle the claim solely for monetary
consideration), and shall cooperate as reasonably requested (at the expense of
Myogen) in the defense of the claim.

     10.2 INDEMNIFICATION BY SUBLICENSEE.

          10.2.1. MYOGEN INDEMNIFIED PARTIES. Sublicensee hereby agrees to
indemnify, save, defend and hold Myogen and its Affiliates, officers, directors,
agents and employees (the "MYOGEN INDEMNIFIED PARTIES") harmless from and
against any and all Losses incurred by or against such Myogen Indemnified
Parties which arise out of (a) any breach of this Agreement by Sublicensee, or
any negligence or willful misconduct by Sublicensee, except to the extent such
Losses are attributable to the breach of this Agreement by Myogen or any Myogen
Indemnified Parties or any negligence or willful misconduct by Myogen or any
Myogen Indemnified Parties, or (b) the design, manufacture, use, handling,
storage, sale or other disposition of Products by Sublicensee, its Affiliates,
agents or sublicensees, except to the extent such Losses also result from the
negligence or willful misconduct of any Myogen Indemnified Parties.

          10.2.2. NOTICE OF CLAIM. In the event that any Myogen Indemnified
Party seeks indemnification under Article 10.2.1, it shall inform Sublicensee of
a claim as soon as reasonably practicable after it receives notice of the claim
and shall permit Sublicensee to assume direction and control of the defense of
the claim (including the right to settle the claim solely for monetary

                                       20.

<PAGE>

consideration), and shall cooperate as reasonably requested (at the expense of
Sublicensee) in the defense of the claim.

     10.3 INSURANCE.

               (A) Throughout the Term and thereafter for a period of ten (10)
years (if such insurance is on a claims-made basis), each Party shall carry and
maintain in full force and effect insurance with an insurance company or
companies having a Best's rating of A or higher against clinical trials
liability (with respect to Sublicensee, solely to the extent Sublicensee is
conducting clinical trials), commercial general liability, and/or product
liability with respect to such Product. Such policies may be worldwide blanket
policies.

               (B) Such insurance shall be unimpaired by claims, and shall
include indemnity against liability on the part of either Party and any of its
Affiliates, as well as Myogen, as their interests may appear, due to injury,
disability or death of any person or persons, or injury to property, arising
from the manufacture, sale or use of such Product or components thereof in
amounts of not less than Ten Million USD ($10,000,000.00) combined single limit,
bodily injury and property damage. Within thirty (30) days after the Execution
Date, each Party shall furnish the other Party with certificates of insurance
evidencing the aforesaid coverage, which certificates shall describe the
principal terms of such policy or policies and provide that thirty (30) days
prior written notice of cancellation or material changes in said insurance
policies will be given to the other Party.

               (C) The indemnification obligations herein shall apply on a first
dollar basis, without limitation or reduction to any deductible or self-insured
retention which the Parties may have under their insurance coverage.

               (D) The provisions of this Article 10 shall survive the
expiration or termination of this Agreement for a period of ten (10) years
following the effective date of such expiration or termination.

                                   ARTICLE 11

                               DISPUTE RESOLUTION

     11.1 GENERAL. The Parties recognize that disputes as to certain matters may
from time to time arise during the term of this Agreement which relate to either
Party's rights and/or obligations hereunder. It is the objective of the Parties
to establish procedures to facilitate the resolution of disputes rising under
this Agreement in an expedient manner by mutual cooperation and without resort
to litigation. To accomplish this objective, the Parties agree to follow the
procedures set forth in this Article 11 if and when a dispute arises under this
Agreement.

     11.2 NEGOTIATION. Either Party may, by written notice to the other, have
such dispute referred to their respective executive officers designated below or
their successors, for attempted resolution by good faith negotiations within
fourteen (14) days after such notice is received. Said designated officers are
as follows:

          FOR SUBLICENSEE: Managing Director

                                       21.

<PAGE>

          FOR MYOGEN: Chief Executive Officer

          In the event the designated executive officers are not able to resolve
such dispute, either Party may at anytime alter the fourteen (14) day period
seek to resolve the dispute through the means provided in Article 11.3.

     11.3 ARBITRATION. Any dispute, controversy or claim arising out of or
relating to this Agreement or the validity, construction, enforceability or
performance hereof or thereof, including without limitation disputes relating to
alleged breach or to termination of this Agreement, shall be finally and
exclusively resolved by arbitration by binding Alternative Dispute Resolution
("ADR") pursuant to the Commercial Arbitration Rules and the administration of
the American Arbitration Association for Large, Complex Cases then in effect.
Arbitral proceedings shall be conducted in Denver, Colorado before three (3)
arbitrators. The arbitral panel may award any remedy allowed by law, including
money damages, prejudgment interest and attorneys' fees, and may grant final,
complete, interim, or interlocutory relief, including injunctive relief.
Notwithstanding the foregoing, punitive, exemplary or multiple damages may not
be awarded.

          11.3.1. LEGAL FEES. Except as set forth in Article11.3 above, each
Party shall bear its own legal fees and other expenses incurred in connection
with the transactions contemplated hereby.

          11.3.2. CONFIDENTIALITY. The ADR proceeding shall be confidential and
the arbitral panel shall issue appropriate protective orders to safeguard each
Party's Confidential Information. Except as required by law, no Party shall make
(or instruct the arbitrator to make) any public announcement with respect to the
proceedings or decision of the arbitrator without prior written consent of each
other Party. The existence of any arbitrated dispute, and the award, shall be
kept in confidence by the Parties and the arbitral panel, except as required in
connection with the enforcement of such award or as otherwise required by
applicable law.

     11.4 SURVIVABILITY. Any duty to arbitrate under this Agreement shall remain
in effect and enforceable alter termination of this Agreement for any reason for
the statute of limitations applicable to any disputes arising out of this
Agreement.

     11.5 JURISDICTION. For the purpose of this Article 11, each Party agrees to
abide by the award rendered in any arbitration, and the Parties agree to accept
the jurisdiction of any court having jurisdiction over it for the purposes of
enforcing awards entered pursuant to this Article and for enforcing the
agreements reflected in this Article.

                                   ARTICLE 12

                                  MISCELLANEOUS

     12.1 ASSIGNMENT; BINDING EFFECT.

          12.1.1. ASSIGNMENT TO AFFILIATES. Either Party may assign any of its
rights or obligations under this Agreement in any country in the Territory to
any Affiliates; provided,

                                       22.

<PAGE>

however, that such assignment shall not relieve the assigning Party of its
responsibilities for performance of its obligations under this Agreement.

          12.1.2. ASSIGNMENT TO NON-AFFILIATES. Myogen may assign any of its
rights or obligations under this Agreement to a non-Affiliate only in connection
with a merger or similar reorganization or the sale of all or substantially all
of its assets to which this Agreement relates, or otherwise with the prior
written consent of Sublicensee. Neither Sublicensee nor any Affiliate of
Sublicensee may assign any of its rights or obligations under this Agreement to
a non-Affiliate (including transfer of the Trademarks to any Third Party)
without Myogen's prior written consent. Subject to the preceding sentence, this
Agreement shall survive any merger or reorganization of either Party with or
into, or such sale of assets to, a Third Party; provided, that in the event of
such merger, reorganization or sale, no intellectual property rights of the
acquiring corporation shall be included in the patents licensed. The foregoing
notwithstanding, Sublicensee may transfer the Trademarks to Third Parties and
lease such Trademarks back from such Third Parties in connection with financing
transactions; provided that such transfer is subject to those licensing
obligations of Sublicensee set forth in Article 9.4.

          12.1.3. BINDING EFFECT. This Agreement shall be binding upon and inure
to the benefit of the Parties and their respective successors and permitted
assigns of the Parties. Any assignment not in accordance with this Agreement
shall be void and of no effect.

     12.2 CONSENTS NOT UNREASONABLY WITHHELD. Whenever provision is made in this
Agreement for either Party to secure the consent or approval of the other, such
consent or approval shall not unreasonably be withheld or delayed. Whenever
provision is made in this Agreement for one Party to object or to disapprove a
matter, such objection or disapproval shall not be unreasonably exercised.

     12.3 FORCE MAJEURE. Except for the payments of amounts due, neither Party
shall lose any rights hereunder or be liable to the other Party for damages or
losses on account of failure of performance by the defaulting Party if the
failure is occasioned by government action, war, fire, explosion, flood, strike,
lockout, embargo, act of God, or any other similar cause beyond the control of
the defaulting Party; provided that the Party claiming force majeure has exerted
all reasonable efforts to avoid or remedy such force majeure; provided, however,
that in no event shall a Party be required to settle any labor dispute or
disturbance. The foregoing shall not affect either Party's rights hereunder to
terminate this Agreement in its entirety or with respect to the Product or
certain countries in the Territory pursuant to the terms hereof.

     12.4 FURTHER ACTIONS. Each Party agrees to execute, acknowledge and deliver
such further instruments and do all such other acts, as may be necessary or
appropriate in order to carry out the purposes and intent of this Agreement.

     12.5 TRADEMARK RIGHTS. Except as otherwise provided herein or otherwise
agreed to in writing by the Parties, no right, express or implied is granted by
this Agreement to use in any manner the name "Myogen," "Wulfing" or any other
trade name or trademark of the other Party or its Affiliates in connection with
the performance of the Agreement. Notwithstanding the foregoing, subject to the
terms and conditions of this Agreement, for a period of six (6) months beginning
on the Effective Date, Myogen grants to Sublicensee a non-exclusive,
non-transferable

                                       23.

<PAGE>

license (without the right to grant sublicenses) to use the trademark and trade
name "Myogen" (including the Myogen logo) ("MYOGEN MARKS") solely in connection
with marketing and selling in the Territory, Products existing in inventory that
are labeled with the Myogen Marks as of the Effective Date. Sublicensee agrees
to state in appropriate places on all materials using the Myogen Marks that the
Myogen Marks are trademarks of Myogen and to include the symbol (TM) or (R) as
appropriate. Myogen grants no rights in the Myogen Marks other than those
expressly granted in this Article 12.5. Sublicensee acknowledges Myogen's
exclusive ownership of the Myogen Marks. Sublicensee agrees not to take any
action inconsistent with such ownership and to cooperate, at Myogen's request
and expense, in any action (including the conduct of legal proceedings) which
Myogen deems necessary or desirable to establish or preserve Myogen's exclusive
rights in and to the Myogen Marks. Sublicensee will not adopt, use, or attempt
to register any trademarks or trade names that are confusingly similar to the
Myogen Marks or in such a way as to create combination marks with the Myogen
Marks. At Myogen's request, Sublicensee will modify or discontinue any use of
the Myogen Marks if Myogen determines that such use does not comply with
Myogen's then-current trademark usage policies and guidelines.

     12.6 NOTICES. All notices hereunder shall be in writing and shall be deemed
given if delivered personally or by facsimile transmission (receipt verified),
mailed by registered or certified mail (return receipt requested), postage
prepaid, or sent by a nationally recognized express courier service, to the
Parties at the following address (or at such other address for a Party as shall
be specified by like notice; provided, that notices of a change of address shall
be effective only upon receipt thereof).

     IF TO MYOGEN, ADDRESSED TO:

          MYOGEN, INC.
          7575 W. 103rd Avenue, Suite 102
          Westminster, Colorado 80021-5426
          Attention: President (with a copy to the General Counsel)
          Telephone: 303-410-6666
          Telecopy: 303-410-6667

     IF TO SUBLICENSEE, ADDRESSED TO:

          Wulfing Holding GmbH
          Bethelner Landstr. 18
          31028 Gronau, Leine
          Germany
          Attention: Managing Director
          Telephone: 49 (0) 5182 585 130
          Telecopy: 49 (0) 5182 585 222

     IF TO GUARANTORS, ADDRESSED TO:

          MYOGEN GMBH
          Rochusstrasse 175-177

                                       24.

<PAGE>

          53123 Bonn
          Germany
          Attention: Ernst Schneider
          Telephone: 49 (0) 228 74879 11
          Telecopy: 49 (0) 228 74879 20

          WULFING PHARMA GMBH
          Bethelner Landstr. 18
          31028 Gronau, Leine
          Germany
          Attention: Managing Director
          Telephone: 49 (0) 5182 585 130
          Telecopy: 49 (0) 5182 585 222

     12.7 WAIVER. Except as specifically provided for herein, the waiver from
time to time by either Party of any of their rights or their failure to exercise
any remedy shall not operate or be construed as a continuing waiver of same or
of any other of such Party's rights or remedies provided in this Agreement. All
such waivers shall be in writing.

     12.8 SEVERABILITY. If any term, covenant or condition of this Agreement or
the application thereof to any party or circumstance shall, to any extent, be
held to be invalid or unenforceable, (a) the remainder of this Agreement, or the
application of such term, covenant or condition to the Parties or circumstances
other than those as to which it is held invalid or unenforceable shall not be
affected thereby and each term, covenant or condition of this Agreement shall be
valid and be enforced to the fullest extent permitted by law; and (b) the
Parties hereto covenant and agree to renegotiate any such term, covenant or
application thereof in good faith in order to provide a reasonably acceptable
alternative to the term, covenant or condition of this Agreement or the
application thereof that is invalid or unenforceable, it being the intent of the
Parties that the basic purposes of this Agreement are to be effectuated.

     12.9 AMBIGUITIES. Ambiguities, if any, in this Agreement shall not be
construed against either Party, irrespective of which Party may be deemed to
have authored the ambiguous provision.

     12.10 GOVERNING LAW. This Agreement shall be governed by and interpreted
under the laws of the State of Delaware, United States of America without regard
to principles of conflicts of law.

     12.11 HEADINGS. The Article and paragraph headings contained herein are for
the purposes of convenience only and are not intended to define or limit the
contents of said Articles or paragraphs and do not form a part of this
Agreement.

     12.12 COUNTERPARTS. This Agreement may be executed in two counterparts,
each of which shall be deemed an original, but together shall constitute one and
the same instrument.

     12.13 ENTIRE AGREEMENT. This Agreement, including all exhibits and
schedules attached hereto, and all documents delivered concurrently herewith,
set forth all the covenants,

                                       25.

<PAGE>

promises, agreements, warranties, representations, conditions and understandings
between the Parties hereto with regard to the subject matter herein and
supersede and terminate all prior agreements, warranties, representations,
conditions or understandings, either oral or written, between the Parties
regarding the subject matter hereof other than as specifically set forth herein
and therein. No subsequent alteration, amendment, change or addition to this
Agreement shall be binding upon the Parties hereto unless reduced to writing and
signed by the respective authorized officers of the Parties.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       26.

<PAGE>

     IN WITNESS WHEREOF, the Parties have executed this SALE AND SUBLICENSE
AGREEMENT in duplicate originals by theft duly authorized officers as of the
date and year first above written.

                                        MYOGEN, INC.

                                        By:    /s/ John R. Julian
                                            ------------------------------------
                                        Name:      John R. Julian
                                              ----------------------------------
                                        Title:     SVP Commercial Development
                                               ---------------------------------

                                        WULFING HOLDING GMBH

                                        By:   /s/ Lutz H. Holz
                                            ------------------------------------
                                        Name:     Lutz H. Holz
                                              ----------------------------------
                                        Title:    Managing Director
                                               ---------------------------------

                                        WULFING PHARMA GMBH

                                        By:   /s/ Lutz H. Holz
                                            ------------------------------------
                                        Name:     Lutz H. Holz
                                              ----------------------------------
                                        Title:    Managing Director
                                               ---------------------------------

                                        MYOGEN GMBH

                                        By:   /s/ Andrew Dickinson
                                            ------------------------------------
                                        Name:     Andrew Dickinson
                                              ----------------------------------
                                        Title:    Managing Director
                                               ---------------------------------

                          SALE AND SUBLICENSE AGREEMENT
                                 SIGNATURE PAGE

<PAGE>

                                    EXHIBIT A

<TABLE>
<CAPTION>
      COUNTRY          YEAR 1    YEAR 2    YEAR 3
      -------         -------   -------   -------
<S>                   <C>       <C>       <C>
United Kingdom        139,709    69,854    69,854
Republic of Ireland     1,762       881       881
France                 52,958    26,479    26,479
Germany               195,251    97,625    97,625
Belgium                 7,913     3,957     3,957
The Netherlands       252,100   126,050   126,050
Italy                  98,207    49,104    49,104
Other Markets           2,100     1,050     1,050
                      -------   -------   -------
                      750,000   375,000   375,000
                      =======   =======   =======
</TABLE>

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