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EXHIBIT 10.34.1
FIRST AMENDMENT TO
ASSET PURCHASE AGREEMENT
THIS FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT (the "First Amendment")
is made and entered into as of the 19th day of December 1997 by and between
Sunstone Hotels, LLC, a Delaware limited liability company ("Seller"), and
Sunstone Hotel Properties, Inc., a Colorado corporation ("Buyer").
RECITALS
A. The Seller and Buyer have previously entered into that certain Asset
Purchase Agreement dated as of October 14, 1997 (the "Asset Purchase Agreement")
with respect to the acquisition (the "Xxxxxx Acquisition") by Sunstone Hotel
Investors, Inc. ("Sunstone, Inc.") of all of the capital stock of Xxxxxx Realty
Corporation, a Minnesota corporation ("Xxxxxx"), from Xxxxxxxxx Real Estate Fund
I, L.P. and Xxxxxxxxx Real Estate Co-Investment Partnership I, L.P.
(collectively, "Xxxxxxxxx").
B. As part of the Xxxxxx Acquisition, Seller, through the merger of
certain of Xxxxxx'x subsidiaries with and into Seller, now owns certain of the
assets and has assumed related liabilities of Xxxxxx and its subsidiaries,
including, in addition to the capital stock of Lakeview of Rochester, Inc., a
Minnesota corporation, (i) all of the capital stock of (a) Xxxxxx of Montana,
Inc., a Montana corporation which owns a 32.9% share of Copper Xxxx XX, a
Montana limited liability corporation, (b) Olmsted Development, Inc., a West
Virginia corporation which owns timeshare units in Lakeview Resort Club, and (c)
Ten Acre S Corp., a West Virginia corporation, and (ii) 25% of the capital stock
of Plaza One, Inc., an Illinois corporation (collectively the "Other Stock" and
together with the Lakeview Stock, the "Capital Stock"). The management contract
for Lakeview Resort Club was transferred from Seller to Buyer in the Asset
Purchase Agreement.
C. The Seller and Buyer now desire to amend the terms of the Asset
Purchase Agreement as more particularly set forth herein.
NOW, THEREFORE, in consideration of premises and the mutual covenants,
promises and undertakings representations, warranties and agreements of the
parties contained herein, and for other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:
1. The definition of "Purchased Assets" as set forth in Section 1.1 of
the Purchase Agreement shall be amended by replacing the provision Section
1.1(b) in its entirety with the following:
a. Capital Stock. the Capital Stock identified on Schedule 1.1(a)
including the Lakeview Stock and the Other Stock.
2. Section 6.1(a) of the Asset Purchase Agreement shall be amended by
adding the following at the end thereof:
Seller shall indemnify Buyer to the extent buyer incurs liability
as a result of the failure of Seller to offer the capital stock
of Plaza One, Inc. owned by Seller to the owner of the remaining
capital stock of same
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pursuant to the right of first refusal in Article VI, Section 3
of the Bylaws of Plaza One, Inc.
3. Sale of Property. Buyer acknowledges that Seller intends to dispose
of the Lakeview Resort in Morgantown, West Virginia ("Lakeview Resort") and that
Olmsted Development, Inc. and Ten Acre S Corp. shares are assets that would be
appropriate to bundle with the other assets associated with the Lakeview Resort.
Buyer hereby agrees upon demand from Seller to convey at the value set forth on
Schedule 1.1(a) the Olmsted Development, Inc. and Ten Acre S Corp. shares to any
buyer designated by Seller who has agreed to acquire the Lakeview Resort.
4. Full Force and Effect. Except as amended hereby, the Asset Purchase
Agreement and all of its terms and conditions shall remain in full force and
effect.
(signature page follows)
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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to be duly executed as of the day and year first above written.
Seller: SUNSTONE HOTELS, LLC,
a Delaware limited liability company
By: SUNSTONE HOTEL INVESTORS, L.P.,
a Delaware limited partnership, its
sole member and manager
By: SUNSTONE HOTEL INVESTORS, INC.,
GENERAL PARTNER
By: /XXXXXX X. ALTER/
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Xxxxxx Xxxxx, President
Buyer: SUNSTONE HOTEL PROPERTIES, INC.,
a Colorado corporation
By: /XXXXX XXXXX/
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Xxxxx Xxxxx, President
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Schedule 1.1(a)
MANAGEMENT AND CONCESSION CONTRACTS AND CAPITAL STOCK
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Asset Being Fair Market
Transferred Value of Asset
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THIRD PARTY HOTEL MANAGEMENT CONTRACT:
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Euro-Suites $0.00
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Red Fox Inn $87,000
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Plaza One $4,000
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HIBBING MANAGEMENT CONTRACT, NOTE &
OWNER INTERESTS:
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Management Contract $0.00
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25% LP Interest N/A
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CONCESSION CONTRACTS
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Rochester Civic Center $324,000
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Xxxxx Egyptian Center $180,000
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ASSOCIATORY MANAGEMENT CONTRACTS:
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Lakeview Resort Club $0.00
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Victorian Village $7,000
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Carriage House $15,000
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Center Plaza Associates $228,000
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OTHER ASSETS:
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100% of stock of Lakeview of $480,000
Rochester, Inc. (owns 80% of Cheat plus pro rata share of cash in
Progressive Venter) (Sewer Plant) Joint Venture less cost of sale
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100% of stock of Xxxxxx of Montana, $0.00
Inc.
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100% of stock of Olmsted $0.00
Development, Inc.
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100% of stock of Ten Acre S Corp. 40.00
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25% of stock of Plaza One, Inc. $0.00
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Total: $1,325,000
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