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Title: |
Acquisition and Exchange Agreement |
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Entities: |
Hospitality Properties Trust; Host Marriott Corp.; Host Marriott, LP; Marriott International Inc.; Hogan & Hartson |
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Date: |
2000 |
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Size: |
Preview shows 21KB of 164KB total |
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Price: |
$73 |
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ID: |
#268571 |
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ACQUISITION AND EXCHANGE AGREEMENT
AMONG
HMT LESSEE LLC,
CCMH ATLANTA MARQUIS CORPORATION,
CCMH SANTA CLARA CORPORATION,
CCMH PROPERTIES II CORPORATION,
CCMH DESERT SPRINGS CORPORATION,
SDM HOTEL CORPORATION,
CCHP I CORPORATION,
CCHP II CORPORATION,
CCHP III CORPORATION,
CCHP IV CORPORATION,
CCH MEADOWVALE CORPORATION,
CCMH TORONTO EC CORPORATION,
CCMH CALGARY CORPORATION,
CRESTLINE CAPITAL CORPORATION,
AND
HOST MARRIOTT, L.P.
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
{S} {C}
1. DEFINITIONS........................................................................................................ 2
2. EXCHANGE TRANSACTION; CLOSING; ADJUSTMENTS......................................................................... 10
2.1. Acquisition of Interests in Crestline Lessee Parents and Canadian Leases.................................... 10
2.2. Consideration Payable by HMC TRS............................................................................ 11
2.3. Post-Closing Adjustments.................................................................................... 11
2.4. The Closing................................................................................................. 12
2.5. Deliveries at the Closing................................................................................... 12
3. REPRESENTATIONS AND WARRANTIES OF THE CRESTLINE PARTIES............................................................ 16
3.1. Organization of Crestline Parties, Crestline Lessee Parents and Crestline Lessees........................... 16
3.2. Authorization of Transaction; Enforceability................................................................ 16
3.3. Qualification and Corporate Power of Crestline Lessees...................................................... 17
3.4. Noncontravention............................................................................................ 17
3.5. Equity Interests............................................................................................ 17
3.6. Liabilities................................................................................................. 18
3.7. Legal Compliance............................................................................................ 18
3.8. Permits..................................................................................................... 19
3.9. Absence of Defaults; Liens.................................................................................. 19
3.10. Insurance................................................................................................... 20
3.11. Litigation.................................................................................................. 20
3.12. Intellectual Property....................................................................................... 20
3.13. Tax Matters................................................................................................. 20
3.14. Casualty; Condemnation...................................................................................... 22
3.15. Mechanics and Materialmen................................................................................... 22
3.16. Brokers' Fees............................................................................................... 23
3.17. Personal Property........................................................................................... 23
4. REPRESENTATIONS AND WARRANTIES OF HMC TRS.......................................................................... 23
4.1. Organization of HMC TRS Parties............................................................................. 23
4.2. Authorization of Transaction; Enforceability................................................................ 23
4.3. Noncontravention............................................................................................ 24
4.4. Litigation.................................................................................................. 24
4.5. Brokers' Fees............................................................................................... 24
5. PRE-CLOSING COVENANTS.............................................................................................. 24
5.1. General...................................................................................................... 24
{/TABLE}
-i-
{PAGE}
{TABLE}
{S} {C}
5.2. Distribution of Excess Cash................................................................................ 25
5.3. Exchange Under Section 1031................................................................................ 26
5.4. Notices and Consents....................................................................................... 27
5.5. Conduct of Business by Crestline Parties Prior to Closing.................................................. 27
5.6. Casualty; Condemnation..................................................................................... 29
5.7. Notice of Developments; Effect of Disclosure of Breaches of Representations and Warranties on Closing
Conditions and Indemnification............................................................................. 29
5.8. Full Access................................................................................................ 30
5.9. Maintenance of Business Relationships...................................................................... 31
5.10. Contribution of Crestline Lessees to Crestline Lessee Parents.............................................. 31
5.11. Marriott International Release............................................................................. 31
6. POST-CLOSING COVENANTS............................................................................................ 31
6.1. General.................................................................................................... 31
6.2. Delivery of Personal Property.............................................................................. 32
6.3. Rent Payments; Operating Profit Payments................................................................... 32
6.4. Guaranty of Rent, Tenant Operating Profit and Adjustments.................................................. 33
6.5. Allocation................................................................................................. 34
6.6. Post-Closing Accounting and Other Matters.................................................................. 34
6.7. Liquor Licenses............................................................................................ 35
6.8. Crestline Corporate Guarantees............................................................................. 36
7. CONDITIONS TO OBLIGATION TO CLOSE................................................................................. 36
7.1. Conditions to Obligation of the Parties.................................................................... 36
7.2. Conditions to Obligation of HMC TRS........................................................................ 36
7.3. Conditions to Obligation of the Crestline Transferors...................................................... 37
7.4. Closing Deliveries of the Crestline Transferors............................................................ 38
7.5. Closing Deliveries of the Crestline Parties relating to the Canadian Hotel Leases.......................... 39
7.6. Closing Deliveries of HMC TRS.............................................................................. 40
8. REMEDIES FOR BREACHES OF THIS AGREEMENT........................................................................... 40
8.1. Survival of Representations and Warranties................................................................. 40
8.2. Indemnification Provisions for Benefit of the HMC TRS Parties.............................................. 41
8.3. Indemnification Provisions for Benefit of the Crestline Parties............................................ 43
8.4. Notice; Matters Involving Third Parties.................................................................... 43
8.5. Determination of Losses.................................................................................... 44
9. TAX MATTERS....................................................................................................... 44
9.1. Tax Periods Ending on or Before the Effective Date.......................................................... 44
{/TABLE}
-ii-
{PAGE}
{TABLE}
{S} {C}
9.2. Tax Periods Beginning Before and Ending After the Effective Date........................................... 45
9.3. Refunds and Tax Benefits................................................................................... 45
9.4. Cooperation on Tax Matters................................................................................. 46
9.5. Certain Taxes.............................................................................................. 46
9.6. Proration of Taxes for Period Including Effective Date..................................................... 46
9.7. Method, Timing and Character of Payments Required by This Article 9........................................ 47
9.8. Section 338(h)(10) Election With Respect to Purchase of the Stock of CCC CMBS Corporation.................. 47
10. TERMINATION....................................................................................................... 47
10.1. Termination of Agreement................................................................................... 47
10.2. Specific Performance....................................................................................... 48
10.3. Effect of Termination...................................................................................... 49
11. MISCELLANEOUS..................................................................................................... 49
11.1. Press Releases and Public Announcements.................................................................... 49
11.2. No Third-Party Beneficiaries............................................................................... 49
11.3. Entire Agreement........................................................................................... 49
11.4. Succession and Assignment.................................................................................. 49
11.5. Counterparts............................................................................................... 50
11.6. Headings................................................................................................... 50
11.7. Notices.................................................................................................... 50
11.8. Governing Law.............................................................................................. 51
11.9. Amendments and Waivers..................................................................................... 51
11.10. Severability............................................................................................... 52
11.11. Expenses................................................................................................... 52
11.12. Construction............................................................................................... 52
11.13. Crestline Guarantee........................................................................................ 52
11.14. Host LP Guarantee.......................................................................................... 53
11.15. Reorganization of Transaction.............................................................................. 53
{/TABLE}
Schedule A - Crestline U.S. Transferors, Crestline Canadian Transferors,
Crestline Lessees, Hotels, Host Lessors and Hotel Leases
Schedule B - Agreements to be Covered by Host/Crestline Omnibus Termination
Agreement
Schedule C - Allocation
Schedule D - Crestline Corporate Guarantees
Schedule E - HMC TRS Consents and Approvals
Schedule F - Amendments to Consents and Assignments of Management Agreements and
Consents and Assignments of License Agreements
Schedule G - Crestline Consents and Approvals
-iii-
{PAGE}
Exhibit A - Form of Assignment of Canadian Hotel Leases and Canadian Hotel Lease
Related Documents
Exhibit B - Form of Assignment of Management Agreements and Additional Items
-iv-
{PAGE}
ACQUISITION AND EXCHANGE AGREEMENT
THIS ACQUISITION AND EXCHANGE AGREEMENT (this "Agreement") is entered
into as of November 13, 2000 among HMT Lessee LLC, a Delaware limited liability
company ("HMC TRS"), CCMH Atlanta Marquis Corporation, a Delaware corporation
("CCMH Atlanta"), CCMH Santa Clara Corporation, a Delaware corporation ("CCMH
Santa Clara"), CCMH Properties II Corporation, a Delaware corporation ("CCMH
Properties II"), CCMH Desert Springs Corporation, a Delaware corporation ("CCMH
Desert"), SDM Hotel Corporation, a Delaware corporation ("SDM Hotel"), CCHP I
Corporation, a Delaware corporation ("CCHP I"), CCHP II Corporation, a Delaware
corporation ("CCHP II"), CCHP III Corporation, a Delaware corporation ("CCHP
III"), CCHP IV Corporation, a Delaware corporation ("CCHP IV" and collectively
with CCMH Atlanta, CCMH Santa Clara, CCMH Properties II, CCMH Desert, SDM Hotel,
CCHP I, CCHP II and CCHP III, the "Crestline U.S. Transferors"), CCH Meadowvale
Corporation, a Canadian corporation ("CCH Meadowvale"), CCMH Toronto EC
Corporation, a Canadian corporation ("CCMH EC"), CCMH Calgary Corporation, a
Canadian corporation ("CCMH Calgary" and collectively with CCH Meadowvale and
CCMH EC, the "Crestline Canadian Transferors," and the Crestline U.S.
Transferors collectively with the Crestline Canadian Transferors, the "Crestline
Transferors"), and, for purposes of Section 3.1, Section 3.2, Section 3.4,
Section 6.4, Section 9.1 and Section 11.13 only, Crestline Capital Corporation,
a Maryland corporation ("Crestline," and collectively with the Crestline
Transferors, the "Crestline Parties"), and, for purposes of Section 4.1, Section
4.2, Section 4.3, Section 6.4 and Section 11.14 only, Host Marriott, L.P., a
Delaware limited partnership ("Host LP," and together with HMC TRS, the "HMC TRS
Parties"). The HMC TRS Parties and the Crestline Parties are referred to
collectively herein as the "Parties."
WHEREAS, each Crestline U.S. Transferor owns 100% of the equity
interests in the single member limited liability company or companies indicated
to be owned by such Crestline U.S. Transferor as set forth on Schedule A
----------
attached hereto (the "Crestline Lessees");
WHEREAS, the Crestline Lessees and the Crestline Canadian Transferors
are tenants under leases (the "Hotel Leases") of hotels set forth on Schedule A
----------
(the "Hotels") owned by Host LP or subsidiaries of Host LP (the "Host Lessors")
indicated on Schedule A;
----------
WHEREAS, prior to the Closing (as defined herein) and upon the receipt
of third party consents, if applicable, each Crestline U.S. Transferor will
contribute the equity interests of the Crestline Lessees owned by such Crestline
U.S. Transferor to a newly formed single member limited liability company
subsidiary of such Crestline U.S. Transferor (each a "Crestline Lessee Parent");
{PAGE}
WHEREAS, certain of the Crestline Lessees and Crestline Canadian
Transferors are lessees under the Excess FF&E Leases (as defined in the
applicable Hotel Leases) (the "FF&E Leases") pursuant to which the Crestline
Lessees and Crestline Canadian Transferors lease certain furniture, fixtures and
equipment used at the Hotels;
WHEREAS, the Crestline U.S. Transferors desire to transfer, and HMC
TRS desires to acquire, 100% of the equity interests in the Crestline Lessee
Parents;
WHEREAS, the Crestline Canadian Transferors desire to transfer, and
HMC TRS desires to acquire, the Canadian Hotel Lease Assets (as defined herein);
WHEREAS, in exchange for 100% of the equity interests in the Crestline
Lessee Parents and for the Canadian Hotel Leases, the Crestline Transferors
desire to receive, and HMC TRS desires to transfer, the Total Cash Amount (as
defined herein), with the QI Cash Amount (as defined herein) to be transferred
to the QI and to be applied by the QI to acquire and transfer to the Crestline
Transferors real estate assets to be designated by the Crestline Transferors, as
provided for in Section 5.3;
WHEREAS, the parties intend that these transactions be treated for
U.S. federal income tax purposes as the acquisition by HMC TRS and the
disposition by the Crestline Transferors of the leasehold interests in the Hotel
Leases, the interests in the FF&E Leases and the other assets of the Crestline
Lessees and Crestline Canadian Transferors (except as expressly provided for
herein), in exchange for the Total Cash Amount; and
WHEREAS, the Crestline Parties desire to cause the transactions
described above to be consummated, in part, as one or more tax-free exchanges as
to the Crestline Transferors under Section 1031 of the Code.
NOW, THEREFORE, in consideration of the foregoing recitals, which are
hereby incorporated by reference as if fully set forth in this Agreement below,
and of the mutual covenants and agreements hereinafter set forth, the Parties
hereby agree as follows:
1. DEFINITIONS
For all purposes of this Agreement, certain capitalized terms shall
have the meanings set forth below, except as otherwise expressly provided.
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