EXHIBIT 10.99
APPLE SUITES LP, INC.
A VIRGINIA CORPORATION
ARTICLES OF AMENDMENT AND RESTATEMENT
TO THE
ARTICLES OF INCORPORATION
These Articles of Amendment and Restatement are being filed with the State
Corporation Commission of Virginia in accordance with Section 13.1-710 and -711
of the Code of Virginia.
1. The name of the corporation is Apple Suites LP, Inc.
2. The text of each amendment adopted is set forth in Exhibit A, which is
attached hereto and made a part hereof by this reference. The amendments modify
the Articles designated as Articles II and VI, and insert new Articles
designated as Articles III and VII.
3. Each amendment was adopted as of September 6, 2000.
4. The Board of Directors of the Corporation, by written consent dated as of
September 6, 2000, found each amendment to be in the best interests of
Corporation, approved and adopted each amendment, and directed that each
amendment be submitted to the sole shareholder of the Corporation for its
approval.
5. Each amendment was adopted by the sole shareholder of the Corporation by
written consent dated as of September 6, 2000.
6. The foregoing sets forth the information required by Section 13.-711 of the
Code of Virginia, and constitutes the certificate required thereby.
DATE: September 6, 2000
Apple Suites LP, Inc.
a Virginia corporation
By: /s/ Glade M. Knight
---------------------------
Glade M. Knight, President
<PAGE>
EXHIBIT A
APPLE SUITES LP, INC.
AMENDED AND RESTATED
ARTICLES OF INCORPORATION
ARTICLE I
NAME
1. NAME. The name of the Corporation is Apple Suites LP, Inc.
ARTICLE II
PURPOSE
2. PURPOSE. Notwithstanding any provision hereof to the contrary, the
following shall govern: The nature of the Corporation's business, and of the
purposes to be conducted and promoted by the Corporation, are limited solely to
the following activities:
(a) To serve as a limited partner of, and to have a limited partnership
interest in, Apple Suites REIT Limited Partnership, a Virginia limited
partnership (the "Partnership"), in accordance with the provisions hereof and
the Limited Partnership Agreement of the Partnership, whose business is limited
to the ownership, operation and management of those certain parcels of real
property listed on Schedule A hereto, together with all improvements located
thereon (collectively, the "Properties"), and whose indebtedness consists only
of a first lien mortgage on the Properties arising from refinancing by First
Union National Bank (the "Mortgage"), any other indebtedness permitted under the
Mortgage, and normal trade accounts payable in the ordinary course of the
Partnership's business; and
(b) To exercise all powers that are enumerated in the Virginia Stock
Corporation Act and are necessary or convenient to the conduct, promotion or
attainment of the business or purposes of the Corporation as set forth herein.
1
<PAGE>
ARTICLE III
PROHIBITIONS
3. CERTAIN PROHIBITED ACTIVITIES. Notwithstanding any provision hereof to
the contrary, the following shall govern:
(a) For so long as any obligation secured by the Mortgage remains
outstanding and not paid in full, the Corporation's indebtedness shall consist
only of indebtedness it is permitted to have under the Mortgage and normal trade
accounts payable in the ordinary course of business, and the Corporation shall
not cause or permit the Partnership to have any indebtedness other than the
following: (i) the Mortgage, (ii) any other indebtedness the Partnership is
permitted to have under the Mortgage, and (iii) normal trade accounts payable in
the ordinary course of the Partnership's business.
(b) The Corporation shall not consolidate or merge with or into any other
entity, or convey or transfer its properties and assets substantially as an
entirety to any entity, unless:
(i) the entity (if other than the Corporation) that is formed upon or
that survives such consolidation or merger, or that acquired by conveyance or
transfer the properties and assets of the Corporation substantially as an
entirety, shall: (A) be organized and existing under the laws of the United
States of America or any State or the District of Columbia, (B) include in its
organizational documents the same limitations set forth in this Article III and
in Article VII (Separateness Covenants), and (C) expressly assume the due and
punctual performance of the Corporation's obligations; and
(ii) immediately after giving effect to such transaction, no default or
event of default under any agreement to which the Corporation is a party shall
have been committed and be continuing.
(b) The Corporation shall not cause or permit the Partnership to
consolidate or merge with or into any other entity, or convey or transfer its
properties and assets substantially as an entirety to any entity, unless:
2
<PAGE>
(i) the entity (if other than the Partnership) that is formed upon or
that survives such consolidation or merger, or that acquired by conveyance or
transfer the properties and assets of the Partnership substantially as an
entirety, shall: (A) be organized and existing under the laws of the United
States of America or any State or the District of Columbia, (B) include in its
organizational documents the same limitations set forth in this Article III and
in Article VII (Separateness Covenants), and (C) expressly assume the due and
punctual performance of the Partnership's obligations; and
(ii) immediately after giving effect to such transaction, no default or
event of default under any agreement to which the Partnership is a party shall
have been committed and be continuing.
(c) For so long as any obligation secured by the Mortgage remains
outstanding and not paid in full, the Corporation shall not voluntarily commence
a case with respect to itself, as debtor, under the Federal Bankruptcy Code or
any similar federal or state statute, and shall not cause or permit the
Partnership to voluntarily commence a case with respect to the Partnership, as
debtor, under the Federal Bankruptcy Code or any similar federal or state
statute, without the unanimous consent of the Board of Directors. For so long as
any obligation secured by the Mortgage remains outstanding and not paid in full,
no material amendment to these Articles of Incorporation or to the Corporation's
Bylaws may be made without the prior approval of the mortgagee holding the
Mortgage, and the Corporation shall not cause or permit any material amendment
to be made to the Partnership's Certificate of Limited Partnership or Limited
Partnership Agreement without the prior approval of the mortgagee holding the
Mortgage.
3
<PAGE>
ARTICLE IV
AUTHORIZED SHARES
4.1. Number and Designation. The number of shares the Corporation is
authorized to issue is set forth below, together with the designation thereof
and the par value per share:
<TABLE>
<CAPTION>
Number of Shares Class Designation Par Value Per Share
---------------- ----------------- -------------------
<S> <C> <C>
5,000 Common no par value
</TABLE>
4.2 Preemptive Rights. No holder of outstanding shares shall have any
preemptive right with respect to: (a) any shares of any class of the
Corporation, whether now or hereafter authorized; (b) any warrants, rights or
options to purchase any such shares; or (c) any obligations convertible into any
such shares or into warrants, rights or options to purchase any such shares.
4.3 Voting and Distributions. The holders of the Common Shares shall have
unlimited voting rights and shall be entitled to receive the net assets of the
Corporation upon the liquidation of the Corporation, its dissolution or the
winding up of its affairs.
ARTICLE V
INITIAL REGISTERED OFFICE AND AGENT
5.1 Initial Registered Office. The initial registered office of the
Corporation is located in the City of Richmond, Virginia, at the following
address:
McGuireWoods LLP
One James Center
901 East Cary Street
Richmond, Virginia 23219
5.2 Initial Registered Agent. The initial registered agent of the
Corporation is Martin B. Richards, Esquire, whose business office is identical
with the initial registered office and who is a resident of Virginia and a
member of the Virginia State Bar.
4
<PAGE>
ARTICLE VI
LIMIT ON LIABILITY AND INDEMNIFICATION
6.1 Limit on Liability. To the maximum extent that the Virginia Stock
Corporation Act, as it exists on the date hereof or may hereafter be amended,
permits elimination of, or limitations upon, the liability of a director or
officer of a corporation, the directors and officers of the Corporation shall
have, as applicable, no liability or limited liability to the Corporation or its
shareholders.
6.2 Indemnification, Advancement of Expenses and Related Matters.
(a) The Corporation, in accordance with the mandatory indemnification
provisions of the Virginia Stock Corporation Act, shall indemnify a director who
entirely prevails in the defense of any proceeding to which he was a party
because he is or was a director of the Corporation against reasonable expenses
incurred by him in connection with the proceeding. An officer of the Corporation
shall be entitled to such mandatory indemnification to the same extent as a
director.
(b) In addition to any mandatory indemnification, the Corporation shall
provide the maximum indemnification permitted by law to any director, officer,
employee or agent of the Corporation in connection with any proceeding
(including any proceeding by or in the right of the Corporation) that is brought
against such person and that is based on the actions taken or not taken by such
person on behalf of the Corporation, or on the status of such person as a
director, officer, employee or agent of the Corporation, except to the extent
that such person has engaged in (i) willful misconduct, or (ii) a knowing
violation of the criminal law.
(c) The provisions of this Article shall not be deemed to prevent, deny or
limit (i) the indemnification or insurance permitted under applicable law to the
directors, officers, employees or agents of the Corporation, or (ii) the
authority of the Corporation under applicable law to advance, reimburse or pay
expenses for the benefit of any director, officer, employee or agent.
5
<PAGE>
(d) The determination of whether the Corporation is required or permitted,
in a particular case, to indemnify a director, officer, employee or agent (or to
provide such person with related advances, reimbursements or other payments of
expenses) shall be conducted in accordance with Section 13.1-701 of the Virginia
Stock Corporation Act, or any successor provision.
6.3 Mandatory Subordination. Notwithstanding any provision hereof to the
contrary, the following shall govern: Any indemnification shall be fully
subordinated to any obligations of the Corporation respecting the Properties and
shall not constitute a claim against the Corporation in the event that cash flow
is insufficient to pay such obligations.
6.4 Amendments. No amendment, modification or repeal of this Article shall
diminish the rights provided hereunder to any person arising from conduct or
events occurring before the adoption of such amendment, modification or repeal.
ARTICLE VII
SEPARATENESS COVENANTS
7.1 Separateness Covenants. Notwithstanding any provision hereof to the
contrary, the following shall govern: For so long as any obligation secured by
the Mortgage remains outstanding and not paid in full, in order to preserve and
ensure the Corporation's separate and distinct corporate identity, in addition
to the other provisions set forth in these Articles of Incorporation, the
Corporation shall conduct its affairs in accordance with the following
provisions:
(a) It shall establish and maintain an office through which its business
shall be conducted separate and apart from those of its parent and any affiliate
and shall allocate fairly and reasonably any overhead for shared office space.
(b) It shall maintain separate corporate records and books of account from
those of its parent and any affiliate.
6
<PAGE>
(c) Its Board of Directors shall hold appropriate meetings (or act by
unanimous consent) to authorize all appropriate corporate actions, and in
authorizing such actions, shall observe all corporate formalities. The Board of
Directors shall include at least one individual who is an Independent Director.
(d) It shall not commingle assets with those of its parent and any
affiliate.
(e) It shall conduct its own business in its own name.
(f) It shall maintain financial statements separate from its parent and any
affiliate.
(g) It shall pay any liabilities out of its own funds, including salaries
of any employees, not funds of its parent or any affiliate.
(h) It shall maintain an arm's length relationship with its parent and any
affiliate.
(i) It shall not guarantee or become obligated for the debts of any other
entity, including its parent or any affiliate or hold out its credit as being
available to satisfy the obligations of others.
(j) It shall use stationery, invoices and checks separate from its parent
and any affiliate.
(k) It shall not pledge its assets for the benefit of any other entity,
including its parent and any affiliate.
(l) It shall hold itself out as an entity separate from its parent and any
affiliate.
7
<PAGE>
(m) It shall not make any loans or advances to any third party (including
any affiliate).
(n) It shall comply with its obligations under the agreements and
instruments evidencing the Mortgage.
7.2 Definitions. For purpose of this Article VII, the following terms shall
have the indicated meanings:
(a) "Independent Director" means a duly appointed member of the Board of
Directors of the Corporation who has not been at any time during the five (5)
years preceding his or her initial appointment, and shall not be at any time
while serving as Independent Director, any of the following:
(i) a shareholder, director (other than in his or her capacity as an
Independent Director), officer or employee of the Corporation or its
shareholders, or any affiliate of any of the foregoing;
(ii) a shareholder, director, officer, employee, partner, or member of
any customer of, or supplier or service provider (including professionals) to,
or other person who derives more than ten percent (10%) of its purchases,
revenues, compensation, or other financial remuneration from its activities
with, the Corporation, its shareholders or any affiliate of any of the
foregoing, or any person or entity who otherwise is financially dependent upon
an officer, director, or employee of the Corporation or its shareholders, or any
family member (by blood or marriage) of any such officer, director, or employee,
or a business entity owned or controlled by any of the foregoing;
(iii) a person or other entity controlling or under common control with
any shareholder, director, officer, employee, customer or supplier of the
Corporation; or
(iv) a member of the immediate family of any individual described in
clause (1), (2) or (3) above.
8
<PAGE>
(b) "affiliate" means, with respect to a specified person or entity:
(i) any person or entity directly or indirectly owning, controlling or
holding with power to vote ten percent (10%) or more of the outstanding voting
securities or interests of the specified entity;
(ii) any person or entity ten percent (10%) or more of whose
outstanding voting securities are directly or indirectly owned, controlled or
held with power to vote by the specified person or entity;
(iii) any person or entity directly or indirectly controlling,
controlled by or under common control with the specified person or entity;
(iv) any officer, director or partner of the specified person or
entity;
(v) if the specified person or entity is an officer, director or
partner, any company for which the specified person or entity acts in any such
capacity; and
(vi) any close relative or spouse of the specified person.
(c) "control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a person or
entity, whether through ownership of voting securities, by contract or
otherwise.
(d) "parent" means, with respect to a corporation, any other corporation
owning or controlling, directly or indirectly, fifty percent (50%) or more of
the voting shares of such corporation.
9
<PAGE>
(e) "person" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust
(including any beneficiary thereof), unincorporated organization, or government
or any agency or political subdivision thereof.
7.3 Actions with Respect to Partnership. For so long as any obligation
secured by the Mortgage remains outstanding and not paid in full, the
Corporation shall cooperate with the Partnership's general partner in causing
the Partnership's Limited Partnership Agreement to include separateness
covenants with respect to the Partnership that are the same in all material
respects as the separateness covenants contained herein with respect to the
Corporation.
10
<PAGE>
SCHEDULE A
(LIST OF PROPERTIES)
The Properties consist of those real properties, together with all improvements
thereon, that are located at the following addresses (and that are more fully
described in agreements and instruments evidencing the Mortgage):
Dallas-Addison Homewood Suites
4451 Beltline Road
Addison, TX 75244
Dallas-Irving/Las Colinas Homewood Suites
4300 Wingren Drive
Irving, TX 75039
North Dallas-Plano Homewood Suites
4705 Old Sheppard Place
Plano, TX 75093
11
