CONTRIBUTION AGREEMENT

Contribution Agreement

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Title: CONTRIBUTION AGREEMENT
Governing Law: Delaware Date: 3/2/2005
Law Firm: Perkins Coie;Alston Bird

Contribution Agreement between CIMS Limited Partnership

Exhibit 10.2

CONTRIBUTION AGREEMENT

by and between

CIMS LIMITED PARTNERSHIP

an Illinois limited partnership

as Partnership,

ILLINOIS HOTELS CORP.

a Delaware corporation,

INTERCONTINENTAL HOTELS GROUP OPERATING CORP.

a Delaware corporation,

IHG Management (Maryland) LLC,

a Maryland limited liability company

and

SHC MICHIGAN AVENUE HOLDINGS, LLC

a Delaware limited liability company

as Strategic

February 28, 2005

Property: InterContinental Hotel – Chicago

TABLE OF CONTENTS


1.	Deadlines and Definitions		1

	1.1	Deadlines	1

	1.2	Definitions	1

2.	Venture Structure		2

	2.1	Contribution and Issuance	2

	2.2	Formation of Venture Entities	2

3.	Contribution Amount		2

	3.1	Deposit	2

	3.2	Remainder of Contribution Amount	2

	3.3	Allocation	2

	3.4	Treatment of Transactions	3

4.	Due Diligence and Inspection Rights		3

	4.1	Review of Property and Property Documents	3

	4.2	Guidelines for Inspection Rights	3

	4.3	Due Diligence; Objections	4

		A. Objections	4

		B. Cure of Objections	5

	4.4	Tenant Estoppels	5

	4.5	Required Permits; Software Licenses	5

		A. Required Permits	5

		B. Software Licenses	6

	4.6	As-Is, Where-Is, With All Faults	6

	4.7	Termination Right	7

	4.8	Effect of Termination	8

5.	Partnership’s Covenants		8

	5.1	No Alteration of Title	8

	5.2	New Leases and Modifications to Existing Leases	8

	5.3	Contracts	8

	5.4	Status of Property	9

	5.5	Tax Appeals	9



	5.6	Personal Property		9

	5.7	Conduct of Business Prior to Closing		9

	5.8	Access and Information		10

	5.9	Exceptions		10

	5.10	Existing Management Contracts		10

6.	Closing			10

	6.1	Closing Mechanics		10

	6.2	IHG Affiliates and Partnership’s Deliveries		11

		A.	Evidence of Authority	11

		B.	Reaffirmation	11

		C.	Partnership Agreement	11

		D.	Hotel Lease Agreement	11

		E.	Tax Returns	11

		F.	Guaranty	11

		H.	Other Instruments	11

	6.3	Deliveries by Management LLC		11

		A.	Management Agreement	11

		B.	Net Contribution Amount	12

		C.	Strategic TRS Lessee Limited Partnership Agreement	12

		D.	Evidence of Authority	12

		E.	Other Instruments	12

	6.4	Deliveries by Strategic		12

		A.	Net Contribution Amount	12

		B.	Closing Document Counterparts	12

		C.	Guaranty	12

		E.	Evidence of Authority	12

		F.	Reaffirmation	12

		G.	Strategic TRS Lessee Limited Partnership Agreement	12

		H.	Other Instruments	12

	6.5	Partnership’s Closing Costs		13

	6.6	Strategic’s Closing Costs		13



	6.7	Shared Costs			13

		A.	Cost Shared Equally		13

		B.	Costs Shared Proportionally		13

	6.8	Adjustments; Proration Items			14

		A.	Real Estate Taxes and Assessments		14

		B.	Hotel Revenues		14

			(i)	Accounts Receivable	14

			(ii)	Booking Deposits	15

			(iii)	Vending Machines	15

			(iv)	Petty Cash	15

		C.	Rental Payments		15

		D.	Security Deposits		15

		E.	Utility Expenses		15

		F.	Hotel Consumables		15

		G.	Other Liabilities		16

		H.	Closing Financing		16

		I.	Insurance		16

	6.9	Proration Statement and Schedules			16

	6.10	Reproration After Closing			17

	6.11	Other Costs			17

		A.	Change of Ownership Costs		17

		B.	Capital Expenditures Funding		17

		C.	Consumables Funding		18

7.	Representations and Warranties				18

	7.1	Partnership’s Representations and Warranties.			18

		A.	Organization, Power and Authority		18

		B.	Partners		18

		C.	Subsidiaries and Investments		19

		D.	No Agreement to Sell Real or Personal Property		19

		E.	Leases		19

			(i)	Tenants	19

			(ii)	Lease Defaults	19

		F.	Contracts		19

		G.	Permits		20

		H.	Hotel Names		20

iii



		I.	Tax Matters	20

		J.	Personal Property	21

		K.	Balance Sheets	21

		L.	Litigation Proceedings	21

		M.	Compliance	21

		N.	Insurance Compliance	22

		O.	Condemnation	22

		P.	Assessments	22

		Q.	Reserved	22

		R.	Labor and Employment Matters	22

		S.	Deliveries	22

		T.	Third Party Consents	22

		U.	Commissions	22

		V.	Environmental Matters	23

		W.	The Americans with Disabilities Act	23

		X.	Constituent Documents	23

		Y.	Foreign Person	23

		Z.	Debt Instruments	23

		AA.	Undisclosed Liabilities	23

	7.2	Partnership’s Warranties Deemed Modified		23

	7.3	Claims of Breach Prior to Closing		24

	7.4	Survival and Limits on Strategic’s Claims		25

	7.5	Strategic’s Representations and Warranties		25

		A.	Organization, Power and Authority	25

		B.	No Bankruptcy	25

		C.	Sophisticated Investor.	26

		D.	Investment Intention; No Resales	26

		E.	Partnership Interest Unregistered; Accredited Investor	26

		F.	Covenant Regarding Financing Arrangements	27

8.	Casualty and Condemnation			27

	8.1	Major Event		27

	8.2	Closing Despite Casualty/Condemnation		28



9.	Other Conditions to Closing			28

	9.1	Conditions to Strategic’s Obligations		28

		A.	Representations	28

		B.	Partnership Compliance	28

		C.	Closing of Inter-Continental Florida Limited Partnership.	28

		D.	Other Matters	29

	9.2	Conditions to Partnership’s Obligations		29

		A.	Representations	29

		B.	Strategic Compliance.	29

		C.	Closing of Inter-Continental Florida Limited Partnership.	29

		D.	Qualified Financing	29

	9.3	Waiver of Conditions		29

	9.4	Miami Contribution Agreement		29

10.	Transaction Issues: Brokers, Confidentiality and Indemnity			29

	10.1