COURTYARD BY MARRIOTT II LIMITED PARTNERSHIP
AGREEMENT OF SALE
The undersigned Limited Partner, and/or Assignee Holder or Unit Holder (the
"Seller") does hereby sell, assign, transfer, convey and deliver (the "Sale") to
Palm Investors, LLC, a Delaware limited liability company ("Palm" or the
"Purchaser"), all of the Seller's right, title and interest in units of limited
partnership interests including any rights attributable to claims, damages,
recoveries, including recoveries from class action, derivative action or any
other types of lawsuits, and causes of action accruing to the ownership of such
units of limited partnership interests ("Units") in Courtyard by Marriott II
Limited Partnership (the "Partnership") being sold pursuant to this Agreement of
Sale ("Agreement") and the Offer to Purchase dated April 13, 1999, (which
together with this Agreement constitute the "Offer") for a purchase price of
$75,000 per Unit, less the amount of any distributions declared or paid from any
source by the Partnership with respect to the Units after April 13, 1999,
without regard to the record date or whether such distributions are classified
as a return on, or a return of, capital and prior to the Expiration Date,
excluding the $1,500 distribution to be made by the Partnership in April/May,
1999. Cash payment will be made after the Expiration Date and within five
business days following written confirmation that Palm has been admitted as a
Substitute Limited Partner, as that term is defined in the Agreement of Limited
Partnership, as to the Units to be purchased from the Seller.
The Seller hereby represents and warrants to the Purchaser that the Seller owns
such Units and has full power and authority to validly sell, assign, transfer,
convey, and deliver to the Purchaser such Units, and that when any such Units
are accepted for payment by the Purchaser, the Purchaser will acquire good,
marketable and unencumbered title thereto, free and clear of all options, liens,
restrictions, charges, encumbrances, conditional sales agreements, or other
obligations relating to the sale or transfer thereof, and such Units will not be
subject to any adverse claim. The Seller further represents and warrants that
the Seller is a "United States person" as defined in Section 7701(a)(30) of the
Internal Revenue Code of 1986, as amended, or if the Seller is not a United
States person, the Seller does not own beneficially or of record more than 5
percent of the outstanding Units.
Such Sale shall include, without limitation, all rights in, and claims to, any
Partnership profits and losses, cash distributions, voting rights and other
benefits of any nature whatsoever, distributable or allocable to such Units
under the Partnership Agreement. Upon the execution of this Agreement by the
Seller, Purchaser shall have the right to receive all benefits and cash
distributions and otherwise exercise all rights of beneficial ownership of such
Units.
Seller, by executing this Agreement, hereby irrevocably constitutes and appoints
Purchaser as its true and lawful agent and attorney-in-fact with respect to the
Units with full power of substitution. This power of attorney is an irrevocable
power, coupled with an interest of the Seller to Purchaser, to (i) execute,
swear to, acknowledge, and file any document relating to the transfer of the
ownership of the Units on the books of the Partnership that are maintained with
respect to the Units and on the Partnership's books maintained by the General
Partner of the Partnership, or amend the books and records of the Partnership as
necessary or appropriate for the withdrawal of the Seller as a Unitholder and/or
Limited Partner of the Partnership, (ii) vote or act in such manner as any such
attorney-in-fact shall, in its sole discretion, deem proper with respect to the
Units, (iii) deliver the Units and transfer ownership of the Units on the books
of the Partnership that are maintained with respect to the Units and on the
Partnership's books, maintained by the Partnership's General Partner, (iv)
endorse on the Seller's behalf any and all payments received by Purchaser from
the Partnership for any period on or after April 13, 1999, which are made
payable to the Seller, in favor of Purchaser, excluding the $1,500 distribution
to be made by the Partnership in April/May, 1999, (v) execute on the Seller's
behalf, any applications for transfer and any distribution allocation agreements
required by the National Association of Securities Dealers, Inc.'s Notice to
Members 96-14 to give effect to the transaction contemplated by this Agreement,
and (vi) receive all benefits and distributions and amend the books and records
of the Partnership, including Seller's address and record, to direct
distributions to Purchaser as of the effective date of this Agreement and
otherwise exercise all rights of beneficial owner of the Units. Purchaser shall
not be required to post bond of any nature in connection with this power of
attorney.
SELLER DOES HEREBY DIRECT AND INSTRUCT THE PARTNERSHIP AND THE GENERAL PARTNER
IMMEDIATELY UPON THEIR RECEIPT OF THIS AGREEMENT OF SALE (i) TO AMEND THE BOOKS
AND RECORDS OF THE PARTNERSHIP TO CHANGE THE SELLER'S ADDRESS OF RECORD TO PALM
INVESTORS, LLC, C/O XXXXX CAPITAL, 0000 XXXXX XXXXXX XXXXX, XXXXX 000, XXX
XXXXX, XXXXXXXXXX 00000, AND (ii) TO FORWARD ALL DISTRIBUTIONS AND ALL OTHER
INFORMATION TO BE RECEIVED BY SELLER TO PALM INVESTORS, LLC TO THE ADDRESS SET
FORTH IN (i) ABOVE.
Seller and Purchaser do hereby release and discharge the General Partner and its
affiliates and each of their respective officers, directors,
COURTYARD BY MARRIOTT II LIMITED PARTNERSHIP
shareholders, employees, and agents from all actions, causes of actions, claims
or demands Seller or Purchaser have, or may have, against any such person that
result from such party's reliance on this Agreement or any of the terms and
conditions contained herein. Seller and Purchaser do hereby indemnify and hold
harmless the Partnership and the General Partner and its affiliates and each of
their respective officers, directors, shareholders, employees, and agents from
and against all claims, demands, damages, losses, obligations, and
responsibilities arising, directly or indirectly, out of a breach of any one or
more of their respective representations and warranties set forth herein.
All authority herein conferred or agreed to be conferred shall survive the death
or incapacity of the Seller and any obligations of the Seller shall be binding
upon the heirs, personal representatives, successors and assigns of the
undersigned. Upon request, the Seller will execute and deliver any additional
documents deemed by the Purchaser or the Partnership to be necessary or
desirable to complete the assignment, transfer and purchase of such Units. Palm
reserves the right to amend or extend the offer at any time without further
notice to the Limited Partners.
The Seller hereby certifies, under penalties of perjury, that (i) the tax
identification number shown on this form is the Seller's correct Taxpayer
Identification Number; and (ii) Seller is not subject to backup withholding
either because Seller has not been notified by the Internal Revenue Service (the
"IRS") that Seller is subject to backup withholding as a result of failure to
report all interest or dividends, or the IRS has notified Seller that Seller is
no longer subject to backup withholding.
The Seller hereby also certifies, under penalties of perjury, that the Seller,
if an individual, is not a nonresident alien for purposes of U.S. income
taxation, and if not an individual, is not a foreign corporation, foreign
partnership, foreign trust, or foreign estate (as those terms are defined in the
Internal Revenue Code and Income Tax Regulations). The Seller understands that
this certification may be disclosed to the IRS by the Purchaser and that any
false statements contained herein could be punished by fine, imprisonment, or
both.
This Agreement shall be governed by and construed in accordance with the laws of
the State of California. Seller waives any claim that California or the Southern
District of California is an inconvenient forum, and waives any right to trial
by jury.
The undersigned Seller (including any joint owner(s)) owns and wishes to assign
the number of Units set forth below. By its own or its Authorized Signatory's
signature below, the Seller hereby assigns its entire right, title and interest
to the Units to the Purchaser.
By executing this Agreement the Seller hereby acknowledges to the General
Partner that the Seller desires to withdraw as a Limited Partner as to the Units
referenced herein and hereby directs the General Partner to take all such
actions as are necessary to accomplish such withdrawal, and appoints the General
Partner the agent and attorney-in-fact of the Limited Partner, to execute, swear
to, acknowledge and file any document or amend the books and records of the
Partnership as necessary or appropriate for the withdrawal of the Limited
Partner.
IN WITNESS WHEREOF the Limited Partner has executed, or caused its Authorized
Signatory to execute, this Agreement.
Print Name of Limited Partner (as it appears on the
investment)_____________________________________________________________________
Print Name and Capacity of Authorized Signatory (if other than
above)__________________________________________________________________________
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Seller's Signature Joint Seller's Signature
MEDALLION GUARANTEE MEDALLION GUARANTEE
(Medallion Guarantee for EACH (Medallion Guarantee for EACH
Seller's signature) Seller's signature)
__________________________________ Investor I.D. Number
__________________________________ Home Telephone Number
__________________________________ Office Telephone Number
__________________________________ Mailing Address
__________________________________ City, State, Zip Code
__________________________________ State of Residence
__________________________________ Social Security/Tax ID No.
YOU MUST MAIL EXECUTED ORIGINAL TO THE DEPOSITORY:
__________________________________ Date Xxxxx Capital, LLC
0000 Xxxxx Xxxxxx Xxxxx, Xxxxx 000
$75,000 Sales Price per Xxxx Xxx Xxxxx, Xxxxxxxxxx 00000
-----------------
_______ Number of Units to be sold
OR
/ / Check here if you wish to sell ALL your
units
PLEASE CALL US AT (000) 000-0000 IF YOU HAVE ANY QUESTIONS REGARDING THE
SALE OF YOUR UNITS.
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INSTRUCTIONS TO COMPLETE AGREEMENT OF SALE
ALL SIGNATURES MUST BE MEDALLION GUARANTEED
Beneficial Owner of Record Should: Death
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1. COMPLETE and SIGN Agreement. If any owner is deceased, please enclose a certified copy of
2. Have your signature Medallion Guaranteed by your Bank or Broker. Death Certificate. If Ownership is other than Joint Tenants
3. Indicate Number of Units Owned and/or To Be Sold. With Right of Survivorship, please provide Letter of
4. Return Agreement in Envelope Provided. Testamentary or Administration current within 60 days
showing your beneficial ownership or executor capacity (in
Joint Ownership addition to copy of Death Certificate).
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Please have ALL owners of record sign Agreement, and
SEPARATELY Medallion Guarantee each signature. Corporation
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Corporate resolution required showing authorized signatory.
XXX/XXXXX
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1. Beneficial owner must sign Agreement. Trust, Profit Sharing or Pension Plan
2. Provide Custodian information. (i.e. Name, Company Name, Address, -------------------------------------
Phone No. and Account No.) Please provide title, signature, and other applicable pages
3. Palm will obtain the Medallion Guarantee of Custodian Signature. of Trust Agreement showing authorized signatory.
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