Exhibit 10.57


 


Denton, TX (HWS)


 


PURCHASE CONTRACT


 


between


 


CHGM DENTON HOTEL PARTNERS, LLC,

a Delaware
limited liability company (“SELLER”)


 


AND


 


APPLE TEN HOSPITALITY OWNERSHIP, INC.,

a
Virginia corporation (“BUYER”)


 


Dated: May 15, 2013



    	 



    	



    

TABLE OF CONTENTS


 





	 	 	 	Page
No.
	ARTICLE I	 	DEFINED TERMS	1
	1.1	 	Definitions	1
	ARTICLE II	 	PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; EARNEST MONEY DEPOSIT	7
	2.1	 	Purchase and Sale	7
	2.2	 	Purchase Price	7
	2.3	 	Allocation	7
	2.4	 	Payment	7
	2.5	 	Earnest Money Deposit	7
	ARTICLE III	 	reVIEW PERIOD	8
	3.1	 	Review Period	8
	3.2	 	Due Diligence Examination	9
	3.3	 	Restoration	9
	3.4	 	Seller Exhibits	10
	ARTICLE IV	 	SURVEY AND TITLE APPROVAL	10
	4.1	 	Survey	10
	4.2	 	Title	10
	4.3	 	Survey or Title Objections	10
	ARTICLE V	 	TERMINATION OF MANAGEMENT AGREEMENT	11
	ARTICLE VI	 	BROKERS	11
	ARTICLE VII	 	REPRESENTATIONS, WARRANTIES AND COVENANTS	12
	7.1	 	Seller’s Representations, Warranties and Covenants	12
	7.2	 	Buyer’s Representations, Warranties and Covenants	17
	7.3	 	Survival	17
	ARTICLE VIII	 	ADDITIONAL COVENANTS	17
	8.1	 	Subsequent Developments	17
	8.2	 	Operations	17
	8.3	 	Third Party Consents	19
	8.4	 	Employees	19
	8.5	 	Estoppel Certificates	19












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	8.6	 	Access to Financial Information	19
	8.7	 	Bulk Sales	20
	8.8	 	Indemnification	20
	8.9	 	Escrow Funds	22
	8.10	 	Liquor Licenses	23
	ARTICLE IX	 	CONDITIONS FOR CLOSING	23
	9.1	 	Buyer’s Conditions for Closing	23
	9.2	 	Seller’s Conditions for Closing	24
	ARTICLE X	 	CLOSING AND CONVEYANCE	25
	10.1	 	Closing	25
	10.2	 	Deliveries of Seller	25
	10.3	 	Buyer’s Deliveries	26
	ARTICLE XI	 	COSTS	27
	11.1	 	Seller’s Costs	27
	11.2	 	Buyer’s Costs	27
	ARTICLE XII	 	ADJUSTMENTS	27
	12.1	 	Adjustments	27
	12.2	 	Reconciliation and Final Payment	29
	12.3	 	Employees	29
	ARTICLE XIII	 	CASUALTY AND CONDEMNATION	30
	13.1	 	Risk of Loss; Notice	30
	13.2	 	Buyer’s Termination Right	30
	13.3	 	Procedure for Closing	30
	ARTICLE XIV	 	DEFAULT REMEDIES	30
	14.1	 	Buyer Default	30
	14.2	 	Seller Default	31
	14.3	 	Attorney’s Fees	31
	ARTICLE XV	 	NOTICES	31
	ARTICLE XVI	 	MISCELLANEOUS	32
	16.1	 	Performance	32
	16.2	 	Binding Effect; Assignment	32
	16.3	 	Entire Agreement	32
	16.4	 	Governing Law	32









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	16.5	 	Captions	32
	16.6	 	Confidentiality	32
	16.7	 	Closing Documents	33
	16.8	 	Counterparts	33
	16.9	 	Severability	33
	16.10	 	Interpretation	33
	16.11	 	(Intentionally Omitted)	
	16.12	 	Further Acts	33
	16.13	 	Joint and Several Obligations	33
	ARTICLE XVII	 	OTHER CONTRACTS	34


 

	SCHEDULES:	 
	 	 
	Schedule 3.1	Due Diligence List
	Schedule 16.14	ROFR Hotels
	Schedule 17	Other Contracts
	 	 
	EXHIBITS:	 
	 	 
	Exhibit A	Legal Description
	Exhibit B	List of FF&E
	Exhibit C	List of Hotel Contracts
	Exhibit D	Consents and Approvals
	Exhibit E	Environmental Reports
	Exhibit F	Claims or Litigation Pending
	Exhibit G	Escrow Agreement
	Exhibit H	Form of Management Agreement









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PURCHASE CONTRACT


 


This PURCHASE CONTRACT (this “Contract”)
is made and entered into as of May 15, 2013, by and between CHGM DENTON HOTEL PARTNERS, LLC a Delaware limited liability company
(“Seller”) with a principal office at c/o Chartwell Hospitality, LLC, 2000 Meridian Blvd., Suite 200,
Franklin, TN 37067, Attn: Robert G. Schaedle, III, and APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with its
principal office at 814 East Main Street, Richmond, Virginia 23219, or its affiliates or assigns (“Buyer”).


 


RECITALS


 


A. Seller is the fee simple owner of that certain hotel
property commonly known as the Homewood Suites by Hilton Denton, located at 2907 Shoreline Drive, Denton, Texas, 76210, containing,
among other things, 107 guest suites (the “Hotel”) identified on Exhibit A attached hereto
and incorporated by reference.


 


B. Buyer is desirous of purchasing the
Hotel from Seller, and Seller is desirous of selling the Hotel to Buyer, for the purchase price and upon terms and conditions hereinafter
set forth.


 


AGREEMENT:


 


NOW, THEREFORE, in consideration of the
foregoing Recitals, the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:


 


ARTICLE
I

Defined terms


 


1.1 Definitions. The following
capitalized terms when used in this Contract shall have the meanings set forth below unless the context otherwise requires:


 


“Additional Deposit”
shall mean $200,000.


 


“Affiliate” shall mean,
with respect to Seller or Buyer, any other person or entity directly or indirectly controlling (including but not limited to all
directors and officers), controlled by or under direct or indirect common control with Seller or Buyer, as applicable. For purposes
of the foregoing, a person or entity shall be deemed to control another person or entity if it possesses, directly or indirectly,
the power to direct or cause direction of the management and policies of such other person or entity, whether through the ownership
of voting securities, by contract or otherwise.


 


“Appurtenances” shall
mean all rights, titles, and interests of Seller appurtenant to the Land and Improvements, including, but not limited to, (i) all
easements, rights of way, rights of ingress and egress, tenements, hereditaments, privileges, and appurtenances in any way belonging
to the Land or Improvements, (ii) any land lying in the bed of any alley, highway, street, road or avenue, open or proposed, in
front of or abutting or adjoining the Land, (iii) any



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strips or gores of real estate adjacent to
the Land, and (iv) the use of all alleys, easements and rights-of-way, if any, abutting, adjacent, contiguous to or adjoining the
Land.


 


“Brand” shall mean Homewood
Suites, the hotel brand or franchise under which the Hotel operates.


 


“Business Day” shall
mean any day other than a Saturday, Sunday or legal holiday in the Commonwealth of Virginia or the state in which the Property
is located.


 


“Chartwell” shall mean
Chartwell Hospitality, LLC, a Delaware limited liability company.


 


“Closing” shall mean
the closing of the purchase and sale of the Property pursuant to this Contract.


 


“Closing Date” shall
have the meaning set forth in Section 10.1.


 


“Contracts, Plans and Specs”
shall mean all construction and other contracts, plans, drawings, specifications, surveys, soil reports, engineering reports, inspection
reports, and other technical descriptions and reports.


 


“Deed” shall have the
meaning set forth in Section 10.2(a).


 


“Deposits” shall mean,
to the extent assignable, all prepaid rents and deposits, refundable security deposits and rental deposits, and all other deposits
for advance reservations, banquets or future services, made in connection with the use or occupancy of the Improvements; provided,
however, that to the extent Seller has not received or does not hold all of the prepaid rents and/or deposits attributable to the
Leases related to the Property, Buyer shall be entitled to a credit against the cash portion of the Purchase Price allocable to
the Property in an amount equal to the amount of the prepaid rents and/or deposits attributable to the Leases transferred at the
Closing of such Property, and provided further, that “Deposits” shall exclude (i) reserves for real property taxes
and insurance, in each case, to the extent pro rated on the settlement statement such that Buyer receives a credit for (a) taxes
and premiums in respect of any period prior to Closing and (b) the amount of deductibles and other self-insurance and all other
potential liabilities and claims in respect of any period prior to Closing, (ii) utility deposits, and (iii) reserves for replacement
of FF&E and for maintenance or capital repairs and/or improvements maintained with Seller’s existing lender.


 


“Due Diligence Examination”
shall have the meaning set forth in Section 3.2.


 


“Earnest Money Deposit”
shall have the meaning set forth in Section 2.5(a).


 


“Environmental Requirements”
shall have the meaning set forth in Section 7.1(f)


 


“Escrow Agent” shall
have the meaning set forth in Section 2.5(a).


 


“Escrow Agreement” shall
have the meaning set forth in Section 2.5(b).


 


“Exception Documents”
shall have the meaning set forth in Section 4.2.



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“Existing Franchise Agreement”
shall mean that certain franchise license agreement between the Seller and the Franchisor, granting to Seller a franchise to operate
the Hotel under the Brand.


 


“Existing Management Agreement”
shall mean that certain management agreement between the Seller and the Existing Manager for the operation and management of the
Hotel.


 


“Existing Manager” shall
mean Chartwell.


 


“FF&E” shall mean
all tangible personal property and fixtures of any kind (other than personal property (i) owned by guests of the Hotel or (ii)
leased by Seller pursuant to an FF&E Lease) attached to, or located upon and used in connection with the ownership, maintenance,
use or operation of the Land or Improvements as of the date hereof (or acquired by Seller and so employed prior to Closing), including,
but not limited to, all furniture, fixtures, equipment, signs and related personal property; all heating, lighting, plumbing, drainage,
electrical, air conditioning, and other mechanical fixtures and equipment and systems; all elevators, and related motors and electrical
equipment and systems; all hot water heaters, furnaces, heating controls, motors and equipment, all shelving and partitions, all
ventilating equipment, and all disposal equipment; all spa, health club and fitness equipment; all equipment used in connection
with the use and/or maintenance of the guestrooms, restaurants, lounges, business centers, meeting rooms, swimming pools, indoor
and/or outdoor sports facilities and other common areas and recreational areas; all carpet, drapes, beds, furniture, televisions
and other furnishings; all stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen equipment and utensils, tables,
chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils.
A current list of FF&E is attached hereto as Exhibit B.


 


“FF&E Leases” shall
mean all leases of any FF&E and other contracts permitting the use of any FF&E at the Improvements that are assumed by
Buyer.


 


“Financial Statements”
shall have the meaning set forth in Section 3.1(b).


 


“Franchisor” shall mean
Hampton Inns Franchise LLC.


 


“Hotel Contracts” shall
have the meaning set forth in Section 10.2(d).


 


“Improvements” shall
mean all buildings, structures, fixtures, parking areas and other improvements to the Land, and all related facilities.


 


“Indemnification Agreement”
shall have the meaning set forth in Article XVII.


 


“Indemnified Party” shall
have the meaning set forth in Section 8.8(c)(i).


 


“Indemnifying Party”
shall have the meaning set forth in Section 8.8(c)(i).


 


“Initial Deposit” shall
have the meaning set forth in Section 2.5(a).


 


“Land” shall mean, collectively,
a fee simple absolute interest in the real property more fully described in Exhibit A, which is attached hereto and incorporated
herein by reference,



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together with all rights (including without
limitation all air rights, mineral rights and development rights), alleys, streets, strips, gores, waters, privileges, appurtenances,
advantages and easements belonging thereto or in any way appertaining thereto.


 


“Leases” shall mean all
leases, franchises, licenses, occupancy agreements, “trade-out” agreements, advance bookings, convention reservations,
or other agreements demising space in, providing for the use or occupancy of, or otherwise similarly affecting or relating to the
use or occupancy of, the Improvements or Land, together with all amendments, modifications, renewals and extensions thereof, and
all guaranties by third parties of the obligations of the tenants, licensees, franchisees, concessionaires or other entities thereunder.


 


“Legal Action” shall
have the meaning set forth in Section 8.8(c)(ii).


 


“Licenses” shall mean
all permits, licenses, franchises, utility reservations, certificates of occupancy, and other documents issued by any federal,
state, or municipal authority or by any private party related to the development, construction, use, occupancy, operation or maintenance
of the Hotel, including, without limitation, all licenses, approvals and rights (including any and all existing waivers of any
brand standard) necessary or appropriate for the operation of the Hotel under the Brand.


 


“Liquor License” shall
have the meaning set forth in Section 8.10.


 


“Manager” shall mean
the entity Buyer chooses to manage the Hotel from and after Closing. Buyer has agreed to engage Chartwell to manage the Hotel pursuant
to the New Management Agreement.


 


“New Franchise Agreement”
shall mean the franchise license agreement to be entered into between Buyer and the Franchisor, granting to Buyer a franchise to
operate the Hotel under the Brand on and after the Closing Date.


 


“New Management Agreement”
means the management agreement to be entered into between Buyer and the Manager for the operation and management of the Hotel on
and after the Closing Date. The form of the New Management Agreement is attached hereto as Exhibit H.


 


“Other Property” shall
have the meaning set forth in Section 16.14.


 


“Pending Claims” shall
have the meaning set forth in Section 7.1(e).


 


“Permitted Exceptions”
shall have the meaning set forth in Section 4.3.


 


“Personal Property” shall
mean, collectively, all of the Property other than the Real Property.


 


“PIP” shall mean a product
improvement plan for any Hotel, as required by the Existing Manager or the Franchisor, if any.


 


“Post-Closing Agreement”
shall have the meaning set forth in Section 8.9.



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“Property” shall mean,
collectively, (i) all of the following with respect to the Hotel: the Land, Improvements, Appurtenances, FF&E, Supplies, Leases,
Deposits, Records, Service Contracts, Warranties, Licenses, FF&E Leases, Contracts, Plans and Specs, Tradenames, Utility Reservations,
as well as all other real, personal or intangible property of Seller related to any of the foregoing and (ii) any and all of the
following that relate to or affect in any way the design, construction, ownership, use, occupancy, leasing, maintenance, service
or operation of the Real Property, FF&E, Supplies, Leases, Deposits or Records: Service Contracts, Warranties, Licenses, Tradenames,
Contracts, Plans and Specs and FF&E Lease.


 


“Purchase Price” shall
have the meaning set forth in Section 2.2.


 


“Real Property” shall
mean, collectively, all Land, Improvements and Appurtenances with respect to the Hotel.


 


“Records” shall mean
all books, records, promotional material, tenant data, guest history information (other than any such information owned exclusively
by the Existing Manager), marketing and leasing material and forms (including but not limited to any such records, data, information,
material and forms in the form of computerized files located at the Hotel), market studies prepared in connection with Seller’s
current annual plan for the Hotel and other materials, information, data, legal or other documents or records (including, without
limitation, all documentation relating to any litigation or other proceedings, all zoning and/or land use notices, relating to
or affecting the Property, all business plans and projections and all studies, plans, budgets and contracts related solely to the
development, construction and/or operation of the Hotel) owned by Seller and/or in Seller’s possession or control, or to
which Seller has access or may obtain from the Existing Manager, that are used in or relating to the Property and/or the operation
of the Hotel, including the Land, the Improvements or the FF&E, and proforma budgets and projections and construction budgets
and contracts related to the development and construction of the Hotel and, if available, a list of the general contractors, architects
and engineers providing goods and/or services in connection with the construction of the Hotel, all construction warranties and
guaranties in effect at Closing and copies of the final plans and specifications for the Hotel.


 


“Release” shall have
the meaning set forth in Section 7.1(f).


 


“Review Period” shall
have the meaning set forth in Section 3.1.


 


“SEC” shall have the
meaning set forth in Section 8.6.


 


“Seller Liens” shall
have the meaning set forth in Section 4.3.


 


“Seller Parties” shall
have the meaning set forth in Section 7.1(e).


 


“Service Contracts” shall
mean contracts or agreements, such as maintenance, supply, service or utility contracts.


 


“Supplies” shall
mean all merchandise, supplies, inventory and other items used for the operation and maintenance of guest rooms, restaurants, lounges,
swimming pools, health clubs, spas, business centers, meeting rooms and other common areas and recreational areas located



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within or relating to the Improvements, including,
without limitation, all food and beverage (alcoholic and non-alcoholic) inventory (opened or unopened), office supplies and stationery,
advertising and promotional materials, china, glasses, silver/flatware, towels, linen and bedding (all of which shall be 2-par
level for all suites or rooms in the Hotel), guest cleaning, paper and other supplies, upholstery material, carpets, rugs, furniture,
engineers’ supplies, paint and painters’ supplies, employee uniforms, and all cleaning and maintenance supplies, including
those used in connection with the swimming pools, indoor and/or outdoor sports facilities, health clubs, spas, fitness centers,
restaurants, business centers, meeting rooms and other common areas and recreational areas.


 


“Survey” shall have the
meaning set forth in Section 4.1.


 


“Third Party Consents”
shall have the meaning set forth in Section 8.3.


 


“Title Commitment” shall
have the meaning set forth in Section 4.2.


 


“Title Company” shall
have the meaning set forth in Section 4.2.


 


“Title Policy” shall
have the meaning set forth in Section 4.2.


 


“Title Review Period”
shall have the meaning set forth in Section 4.3.


 


“Tradenames” shall mean
all telephone exchanges and numbers, and trade names, trade styles, trade marks, and other identifying material, and all variations
thereof (other than “Chartwell” or “Chartwell Hospitality”), together with all related goodwill (it being
understood and agreed that the name of the hotel chain to which the Hotel is affiliated by franchise, license or management agreement
is a protected name or registered service mark of such hotel chain and cannot be transferred to Buyer by this Contract, provided
that all such franchise, license, management and other agreements granting a right to use the name of such hotel chain or any other
trademark or trade name and all waivers of any brand standard shall be assigned to Buyer.


 


“Utility Reservations”
shall mean, to the extent assignable, Seller’s interest in the right to receive immediately on and after Closing and continuously
consume thereafter water service, sanitary and storm sewer service, electrical service, gas service and telephone service on and
for the Land and Improvements in capacities that are adequate continuously to use and operate the Improvements for the purposes
for which they were intended, including, but not limited to (i) any right to the present and future use of wastewater, drainage,
water and other utility facilities to the extent such use benefits the Real Property, (ii) any reservations of or commitments covering
any such use in the future, and (iii) any wastewater capacity reservations relating to the Real Property. Buyer shall be responsible
for any requests or documents to transfer the Utility Reservations, at Buyer’s sole cost and expense. Any existing deposits
for Utility Reservations made by Seller shall be paid to seller in cash or in the form of a credit at closing.


 


“Warranties” shall mean
all warranties, guaranties, indemnities and claims for the benefit of Seller with respect to the Hotel, the Property or any portion
thereof, including, without limitation, all warranties and guaranties of the development, construction, completion, installation,
equipping and furnishing of the Hotel, and all indemnities, bonds and claims of Seller related thereto.



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ARTICLE
II

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT


 


2.1 Purchase and Sale. Seller
agrees to sell and convey to Buyer or its Affiliates and/or assigns, and Buyer or its assigns agrees to purchase from Seller, the
Property, in consideration of the Purchase Price and upon the terms and conditions hereof. All of the Property shall be conveyed,
assigned, and transferred to Buyer at Closing, free and clear of all mortgages, liens, encumbrances, licenses, franchises (other
than any hotel franchises assumed by Buyer), concession agreements, security interests, prior assignments or conveyances, conditions,
restrictions, rights-of-way, easements, encroachments, claims and other matters affecting title or possession, except for the Permitted
Exceptions.


 


2.2 Purchase Price. Buyer agrees
to pay, and Seller agrees to accept, as consideration for the conveyance of the Property, subject to the adjustments provided for
in this Contract, the amount of Eleven Million Three Hundred Thousand and No/100 Dollars ($11,300,000.00) (the “Purchase
Price”).


 


2.3 Allocation. Buyer and Seller
shall attempt to agree, prior to the expiration of the Review Period, on an allocation of the Purchase Price among Real Property,
tangible Personal Property and intangible property related to the Property. In the event Buyer and Seller do not agree, each party
shall be free to allocate the Purchase Price to such items as they deem appropriate, subject to and in accordance with applicable
laws.


 


2.4 Payment. The portion of the
Purchase Price, less the Earnest Money Deposit and interest earned thereon, if any, which Buyer elects to have applied against
the Purchase Price (as provided below), less the Escrow Funds, shall be paid to Seller in cash, certified funds or wire transfer,
at the Closing of the sale of the Property. At the Closing, the Earnest Money Deposit, together with interest earned thereon, if
any, shall, at Buyer’s election, be returned to Buyer or shall be paid over to Seller by Escrow Agent to be applied to the
portion of the Purchase Price on behalf of Buyer, and the Escrow Funds shall be deposited into an escrow account pursuant to the
Post-Closing Agreement as contemplated by Section 8.9.


 


2.5 Earnest Money Deposit.


 


(a) Within three (3) Business Days after
the full execution and delivery of this Contract, Buyer shall deposit the sum of Two Hundred Thousand and No/100 Dollars ($200,000.00)
in cash, certified bank check or by wire transfer of immediately available funds (the “Initial Deposit”)
with the Title Company, as escrow agent (“Escrow Agent”), which sum shall be held by Escrow Agent as
earnest money. If, pursuant to the provisions of Section 3.1 of this Contract, Buyer elects to terminate this Contract at any time
prior to the expiration of the Review Period, then the Escrow Agent shall return the Earnest Money Deposit to Buyer promptly upon
written notice to that effect from Buyer. If Buyer does not elect to terminate this Contract on or before the expiration of the
Review Period, Buyer shall, within three (3) Business Days after the expiration of the Review Period deposit the Additional Deposit
with the Escrow Agent. If Buyer fails to deposit the Additional Deposit, as provided for herein, then this Contract shall terminate
and the Initial Deposit shall be paid to Seller; provided, however, this Contract



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shall not terminate and Buyer shall not forfeit
the Initial Deposit unless Seller or Escrow Agent notifies Buyer that the Additional Deposit is due and Buyer then fails to deliver
the Additional Deposit to Escrow Agent within one (1) business day thereafter. The Initial Deposit and the Additional Deposit,
and all interest accrued thereon, shall hereinafter be referred to as the “Earnest Money Deposit.”


 


(b) The Earnest Money Deposit shall be
held by Escrow Agent subject to the terms and conditions of an Escrow Agreement dated as of the date of this Contract entered into
by Seller, Buyer and Escrow Agent (the “Escrow Agreement”). The Earnest Money Deposit shall be held in
an interest-bearing account in a federally insured bank or savings institution reasonably acceptable to Seller and Buyer, with
all interest to accrue to the benefit of the party entitled to receive it and to be reportable by such party for income tax purposes.


 


ARTICLE
III

review period


 


3.1 Review Period. Buyer shall
have a period through 6:00 p.m. Eastern Time on the date that is forty-five (45) days after the date of this Contract, unless otherwise
agreed to by Buyer and Seller in writing (the “Review Period”), to evaluate the legal, title, survey,
construction, physical condition, structural, mechanical, environmental, economic, permit status, franchise status, financial and
other documents and information related to the Property. Within three (3) Business Days following the date of this Contract,
Seller, at Seller’s sole cost and expense, will deliver to Buyer (or make available at the Hotel) for Buyer’s review,
to the extent not previously delivered to Buyer, true, correct and complete copies of the following (to the extent such materials
or information is applicable and is in Seller’s or Chartwell’s possession or control), together with all amendments,
modifications, renewals or extensions thereof:


 


(a) All Warranties and Licenses relating
to the Hotel or any part thereof;


 


(b) Income and expense statements and
budgets for the Hotel, for the current year to date and each of the three (3) prior fiscal years (the “Financial Statements”),
and Seller shall provide to Buyer copies of all income and expense statements generated by Seller that relate to the operations
of the Hotel and that contain information not included in the financial statements, if any, provided to Buyer by the Existing Manager,
provided that Seller also agrees, at no expense to Seller, to provide to Buyer’s auditors and representatives all financial
and other information necessary or appropriate for preparation of audited financial statements for Buyer and/or its Affiliates
as provided in Section 8.6, below;


 


(c) All real estate and personal property
tax statements with respect to the Hotel and notices of appraised value for the Real Property for the current year (if available)
and each of the three (3) calendar years prior to the current year;


 


(d) Engineering, mechanical, architectural
and construction plans, drawings, specifications and contracts, payment and performance bonds, title policies, reports and commitments,
zoning information and marketing and economic data relating to the Hotel and the construction, development, installation and equipping
thereof, as well as copies of all environmental reports and information, topographical, boundary or “as built” surveys,



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engineering reports, subsurface studies and
other Contracts, Plans and Specs relating to or affecting the Hotel. If the Hotel is purchased by Buyer, all such documents and
information relating to the Hotel shall thereupon be and become the property of Buyer without payment of any additional consideration
therefor;


 


(e) All FF&E Leases, Services Contracts,
Leases and, if applicable, a schedule of such Leases of space in the Hotel, and all agreements for real estate commissions, brokerage
fees, finder’s fees or other compensation payable by Seller in connection therewith; and


 


(f) All notices of noncompliance or violation
of law received within the last ninety (90) days from governmental authorities in connection with the Hotel and all other notices
received from governmental authorities received at any time that relate to any noncompliance or violation of law that has not been
corrected.


 


(g) Any other information described on
Schedule 3.1 attached hereto.


 


Seller shall, upon request of Buyer, make
available to Buyer and Buyer’s representatives and agents, for inspection and copying (at Buyer’s expense) during normal
business hours, Records located at Seller’s corporate offices, and Seller agrees to provide Buyer copies of all other reasonably
requested information that is relevant to the management, operation, use, occupancy or leasing of or title to the applicable Hotel
and the plans specifications for development of the Hotel, to the extent in Seller’s possession or control. At any time during
the Review Period, Buyer may, in its sole and absolute discretion, elect not to proceed with the purchase of the Property for any
reason whatsoever by giving written notice thereof to Seller, in which event: (i) the Earnest Money Deposit shall be promptly returned
by Escrow Agent to Buyer together with all accrued interest, if any, (ii) this Contract shall be terminated automatically, (iii)
all materials supplied by Seller to Buyer shall be returned promptly to Seller, and (iv) both parties will be relieved of all other
rights, obligations and liabilities hereunder, except for the parties’ obligations pursuant to Sections 3.3 and 16.6 below.


 


3.2 Due Diligence Examination.
At any time during the Review Period, and thereafter through Closing of the Property, Buyer and/or its representatives and agents
shall have the right to enter upon the Property at all reasonable times for the purposes of reviewing all Records and other data,
documents and/or information relating to the Property and conducting such surveys, appraisals, engineering tests, soil tests (including,
without limitation, Phase I and Phase II environmental site assessments), inspections of construction and other inspections and
other studies as Buyer deems reasonable and necessary or appropriate to evaluate the Property, subject to providing reasonable
advance notice to Seller unless otherwise agreed to by Buyer and Seller (the “Due Diligence Examination”).
Seller shall have the right to have its representative present during Buyer’s physical inspections of its Property, provided
that failure of Seller to do so shall not prevent Buyer from exercising its due diligence, review and inspection rights hereunder.
Buyer agrees to exercise reasonable care when visiting the Property, in a manner which shall not materially adversely affect the
operation of the Property.


 


3.3 Restoration. Buyer covenants
and agrees not to damage or destroy any portion of the Property in conducting its examinations and studies of the Property during
the Due Diligence



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Examination and, if closing does not occur,
shall repair any portion of the Property damaged by the conduct of Buyer, its agents or employees, to substantially the condition
such portion(s) of the Property were in immediately prior to such examinations or studies. If Buyer chooses to terminate this Contract,
then at Seller’s discretion, Buyer shall provide Seller with copies of all third-party due diligence materials and reports
obtained by Buyer. If Seller requests such materials from Buyer, Seller shall pay Buyer the actual cost of such materials charged
by the applicable vendor for the original materials.


 


3.4 Seller Exhibits. Buyer shall
have until the end of the Review Period to review and approve the information on Exhibits B, C, D, E and F. In the event Buyer
does not approve any such Exhibit or the information contained therein, Buyer shall be entitled to terminate this Contract prior
to the end of the Review Period by notice to Seller and the Earnest Money Deposit shall be returned to Buyer with all interest
thereon and both parties shall be relieved of all rights, obligations and liabilities hereunder except for the parties’ obligations
pursuant to Sections 3.3 and 16.6.


 


ARTICLE
IV

SURVEY AND TITLE APPROVAL


 


4.1 Survey. Seller has delivered
to Buyer true, correct and complete copies of the most recent surveys of the Real Property. In the event that an update of the
survey or a new survey (such updated or new surveys being referred to as the “Survey”) are desired by
Buyer, then Buyer shall be responsible for all costs related thereto.


 


4.2 Title. Seller has delivered
to Buyer its existing title insurance policy, including copies of all documents referred to therein, for its Real Property. Buyer’s
obligations under this Contract are conditioned upon Buyer being able to obtain for the Property (i) a Commitment for Title Insurance
(the “Title Commitment”) issued by Chicago Title Company, Attn: Debby Moore, 5501 LBJ Freeway, Ste. 200,
Dallas, Texas 75240 (the “Title Company”), for the most recent standard form of owner’s policy
of title insurance in the state in which the Real Property is located, covering the Real Property, setting forth the current status
of the title to the Real Property, showing all liens, claims, encumbrances, easements, rights of way, encroachments, reservations,
restrictions and any other matters affecting the Real Property and pursuant to which the Title Company agrees to issue to Buyer
at Closing an Owner’s Policy of Title Insurance on the most recent form of ALTA (where available) owner’s policy available
in the state in which the Land is located, with extended coverage and, to the extent applicable and available in such state, comprehensive,
access, single tax parcel, survey, contiguity, and such other endorsements as may be required by Buyer (collectively, the “Title
Policy”); and (ii) true, complete, legible and, where applicable, recorded copies of all documents and instruments
(the “Exception Documents”) referred to or identified in the Title Commitment, including, but not limited
to, all deeds, lien instruments, leases, plats, surveys, reservations, restrictions, and easements affecting the Real Property.


 


4.3 Survey or Title Objections.
If Buyer discovers any title or survey matter which is objectionable to Buyer, Buyer may provide Seller with written notice of
its objection to same on or before the expiration of the Review Period (the “Title Review Period”). If
Buyer fails to so object in writing to any such matter set forth in the Survey or Title Commitment, it shall be



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conclusively assumed that Buyer has approved
same. If Buyer disapproves any condition of title, survey or other matters by written objection to Seller on or before the expiration
of the Title Review Period, Seller shall elect either to attempt to cure or not cure any such item by written notice sent to Buyer
within five (5) business days after its receipt of notice from Buyer, and if Seller commits in writing to attempt to cure any such
item, then Seller shall be given until the Closing Date to cure any such defect. If Seller fails to provide such notice within
five (5) business days after receipt of notice from Buyer, Seller shall be deemed to have elected not to attempt to cure any such
item. In the event Seller shall fail to cure a defect which Seller has committed in writing to cure prior to Closing, or if a new
title defect arises after the date of Buyer’s Title Commitment or Survey, as applicable, but prior to Closing, then Buyer
may elect, in Buyer’s sole and absolute discretion: (i) to waive such objection and proceed to Closing, or (ii) to terminate
this Contract and receive a return of the Earnest Money Deposit, and any interest thereon. The items shown on the Title Commitment
which are not objected to by Buyer as set forth above (other than exceptions and title defects arising after the title review period
and other than those standard exceptions which are ordinarily and customarily omitted in the state in which the applicable Hotel
is located, so long as Seller provides the appropriate owner’s affidavit, gap indemnity or other documentation reasonably
required by the Title Company for such omission) are hereinafter referred to as the “Permitted Exceptions.”
In no event shall Permitted Exceptions include liens, or documents evidencing liens, securing any indebtedness (including vehicle
or FF&E leases or financing arrangements) any mechanics’ or materialmen’s liens or any claims or potential claims
therefor covering the Property or any portion thereof (“Seller Liens”), each of which shall be paid in
full by Seller and released at Closing. If a vehicle or FF&E lease or other financing cannot be released at Closing, Seller
shall credit Buyer at Closing with the amount necessary to fully pay off such lease or financing over its term.


 


ARTICLE
V

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT


 


At or prior to the Closing, Seller shall
terminate the Existing Management Agreement and the Existing Franchise Agreement, and Seller shall be solely responsible for all
claims and liabilities arising thereunder on, prior to or following the Closing Date, except Buyer shall be responsible for paying
all reasonable and actual costs of the Franchisor related to the assignment or termination, as applicable, of the Existing Franchise
Agreement. As conditions to Closing, Buyer shall enter into (i) the New Franchise Agreement, and (ii) the New Management Agreement
with Chartwell, each to be effective as of the Closing Date, and each containing terms and conditions acceptable to Buyer. Seller
shall be responsible for paying all costs related to the termination of the Existing Management Agreement. Seller shall use best
efforts to promptly provide all information required by the Franchisor in connection with the New Franchise Agreement, and Buyer
shall diligently pursue obtaining the same. Seller will cooperate with Buyer in obtaining the New Franchise Agreement, at no cost
to Seller.


 


ARTICLE
VI

BROKERS


 


Seller and Buyer each represents and warrants
to the other that it has not engaged any broker, finder or other party in connection with the transaction contemplated by this
Contract, except for Jones Lang LaSalle (Mark Fair) (the “Broker”), which Broker shall be entitled to a



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commission from Seller upon the sale of the
Property under a separate agreement with Seller. Buyer and Seller each agree to save and hold the other harmless from any and all
losses, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees) involving claims made by
any other agent, broker, or other person by or through the acts of Buyer or Seller, respectively, in connection with this transaction.


 


ARTICLE
VII

REPRESENTATIONS, WARRANTIES AND COVENANTS


 


7.1 Seller’s Representations,
Warranties and Covenants. Seller hereby represents, warrants and covenants to Buyer as follows:


 


(a) Authority; No Conflicts. Seller
is a limited liability company, duly formed, validly existing and in good standing in the State of Delaware, and is authorized
to transact business in the State in which the Property is located. Seller has obtained all necessary consents to enter into and
perform this Contract and is fully authorized to enter into and perform this Contract and to complete the transactions contemplated
by this Contract. No consent or approval of any person, entity or governmental authority is required for the execution, delivery
or performance by Seller of this Contract, except as set forth in Exhibit D, and this Contract is hereby binding and enforceable
against Seller. Neither the execution nor the performance of, or compliance with, this Contract by Seller has resulted, or will
result, in any violation of, or default under, or acceleration of, any obligation under any existing corporate charter, certificate
of incorporation, bylaw, articles of organization, limited liability company agreement or regulations, partnership agreement or
other organizational documents of Seller, and under any, mortgage indenture, lien agreement, promissory note, contract, or permit,
or any judgment, decree, order, restrictive covenant, statute, rule or regulation, applicable to Seller or to the Hotel.


 


(b) FIRPTA. Seller is not a foreign
corporation, foreign partnership, foreign trust or foreign estate (as those items are defined in the Internal Revenue Code and
Income Tax Regulations).


 


(c) Bankruptcy. Neither Seller,
nor to Seller’s knowledge, any of its partners or members, is insolvent or the subject of any bankruptcy proceeding, receivership
proceeding or other insolvency, dissolution, reorganization or similar proceeding.


 


(d) Property Agreements. A complete
list of all FF&E Leases, Service Contracts and Leases (other than those entered into by the Existing Manager on its own behalf)
used in or otherwise relating to the operation and business of the Hotel is attached hereto as Exhibit C-1, and, to Seller’s
knowledge, a complete list of all other FF&E Leases, Service Contracts and Leases used in or otherwise relating to the operation
and business of the Hotel is attached hereto as Exhibit C-2. The assets constituting the Property to be conveyed to Buyer
hereunder constitute all of the material property and assets of Seller used in connection with the operation and business of the
Hotel. There are no leases, license agreements, leasing agent’s agreements, equipment leases, building service agreements,
maintenance contracts, suppliers contracts, warranty contracts, operating agreements, or other agreements (i) to which Seller is
a party or an assignee, or (ii) to Seller’s knowledge, binding upon the Hotel, relating to the ownership, occupancy, operation,
management or maintenance of the Real Property, FF&E,



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Supplies or Tradenames, except for those Service Contracts,
Leases, Warranties and FF&E Leases disclosed on Exhibit C or to be delivered to Buyer pursuant to Section 3.1. The Service
Contracts, Leases, Warranties and FF&E Leases disclosed on Exhibit C or to be delivered to Buyer pursuant to Section
3.1 are in full force and effect, and, to Seller’s knowledge, no default has occurred and is continuing thereunder and no
circumstances exist which, with the giving of notice, the lapse of time or both, would constitute such a default. No party has
any right or option to acquire the Hotel or any portion thereof, other than Buyer.


 


(e) Pending Claims. There are no:
(i) claims, demands, litigation, proceedings or governmental investigations pending or, to Seller’s knowledge, threatened
against Seller, the Existing Manager or any Affiliate of any of them (collectively, “Seller Parties”)
or related to the business or assets of the Hotel, except as set forth on Exhibit F attached hereto and incorporated herein
by reference, (ii) pending special assessments or extraordinary taxes except as set forth in the Title Commitment or (iii) pending
or, to Seller’s knowledge, threatened condemnation or eminent domain proceedings which would affect the Property or any part
thereof. There are no: pending arbitration proceedings or unsatisfied arbitration awards, or judicial proceedings or orders respecting
awards, which might become a lien on the Property or any portion thereof, pending unfair labor practice charges or complaints (as
evidenced by notice from any applicable governing body or agency having jurisdiction, e.g., a state EEOC) proceedings, unsatisfied
unfair labor practice orders or judicial proceedings or orders with respect thereto, pending charges or complaints with or by city,
state or federal civil or human rights agencies, unremedied orders by such agencies or judicial proceedings or orders with respect
to obligations under city, state or federal civil or human rights or antidiscrimination laws or executive orders affecting the
Hotel, or other pending, actual or, to Seller’s knowledge, threatened litigation claims, charges, complaints, petitions or
unsatisfied orders by or before any administrative agency or court which affect the Hotel or might become a lien on the Hotel (collectively,
the “Pending Claims”).


 


(f) Environmental. With respect
to environmental matters, to Seller’s actual knowledge, without investigation, (i) there has been no Release or threat of
Release of Hazardous Materials in, on, under, to, from or in the area of the Real Property during the period of Seller’s
ownership of the Real Estate, except as disclosed in the reports and documents set forth on Exhibit E attached hereto and
incorporated herein by reference, (ii) no portion of the Property is being used for the treatment, storage, disposal or other handling
of Hazardous Materials or machinery containing Hazardous Materials other than standard amounts of cleaning supplies and chlorine
for the swimming pool, all of which are stored on the Property in strict accordance with applicable Environmental Requirements
and do not exceed limits permitted under applicable laws, including without limitation Environmental Requirements, (iii) no underground
storage tanks are currently located on or in the Real Property or any portion thereof, (iv) no environmental investigation, administrative
order, notification, consent order, litigation, claim, judgment or settlement with respect to the Property or any portion thereof
is pending or threatened in writing, (v) there is not currently and, to Seller’s actual knowledge, never has been any mold,
fungal or other microbial growth in or on the Real Property, or existing conditions within buildings, structures or mechanical
equipment serving such buildings or structures, that could reasonably be expected to result in material liability or material costs
or expenses to remediate the mold, fungal or microbial growth, or to remedy such conditions that could



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reasonably be expected to result in such growth, and (vi) except
as disclosed on Exhibit E, there are no reports or other documentation regarding the environmental condition of the Real
Property in the possession of Seller or Seller’s Affiliates, consultants, contractors or agents. As used in this Contract:
“Hazardous Materials” means (1) ”hazardous wastes” as defined by the Resource Conservation
and Recovery Act of 1976, as amended from time to time (“RCRA”), (2) “hazardous substances” as defined
by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.), as
amended by the Superfund Amendment and Reauthorization Act of 1986 and as otherwise amended from time to time (“CERCLA”);
(3) “toxic substances” as defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”),
(4) “hazardous materials” as defined by the Hazardous Materials Transportation Act, as amended from time to time (“HMTA”),
(5) asbestos, oil or other petroleum products, radioactive materials, urea formaldehyde foam insulation, radon gas and transformers
or other equipment that contains dielectric fluid containing polychlorinated biphenyls and (6) any substance whose presence is
detrimental or hazardous to health or the environment, including, without limitation, microbial or fungal matter or mold, or is
otherwise regulated by federal, state and local environmental laws (including, without limitation, RCRA, CERCLA, TSCA, HMTA), rules,
regulations and orders, regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials
or environmental, health or safety compliance (collectively, “Environmental Requirements”). As used in
this Contract: “Release” means spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping or disposing.


 


(g) Title and Liens. Except for
Seller Liens to be released at Closing, Seller has good and marketable fee simple absolute title to the Real Property, subject
only to the Permitted Exceptions. Except for the FF&E subject to the FF&E Leases and any applicable Permitted Exceptions,
Seller has good and marketable title to the Personal Property, free and clear of all liens, claims, encumbrances or other rights
whatsoever (other than the Seller Liens which must be released at Closing), and there are no other liens, claims, encumbrances
or other rights pending or of which any Seller Party has received notice or which are otherwise known to any Seller Party related
to any other Personal Property.


 


(h) Utilities. All appropriate utilities,
including sanitary and storm sewers, water, gas, telephone, cable and electricity, are, to Seller’s knowledge, currently
available to service the Hotel and all installation, connection or “tap-on”, usage and similar fees have been paid
current.


 


(i) Licenses, Permits and Approvals.
Seller has not received any written notice that the Property fails to materially comply with all applicable licenses, permits and
approvals and federal, state or local statutes, laws, ordinances, rules, regulations, requirements and codes including, without
limitation, those regarding zoning, land use, building, fire, health, safety, environmental, subdivision, water quality, sanitation
controls and the Americans with Disabilities Act, and similar rules and regulations relating and/or applicable to the ownership,
use and operation of the Property as it is now operated. Seller has received all licenses, permits and approvals required or needed
for the lawful conduct, occupancy and operation of the business of the Hotel, and each license and permit is in full force and
effect, and will be in full force and effect as of the Closing. No licenses, permits or approvals necessary for the lawful



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conduct, occupancy or operation of the business of the Hotel,
to Seller’s knowledge, requires any approval of a governmental authority for transfer of the Property except as set forth
in Exhibit D.


 


(j) Financial Statements. Seller
has delivered copies of all prior and current (i) Financial Statements for the Hotel, (ii) operating statements prepared by the
Existing Manager for the Hotel, and (iii) monthly financial statements prepared by the Existing Manager for the Hotel for the last
three (3) years. Each of such statements is, to Seller’s knowledge, complete and accurate in all material respects and, except
in the case of budgets prepared in advance of the applicable operating period to which such budgets relate, fairly presents the
results of operations of the Hotel for the respective periods represented thereby. Seller has relied upon the Financial Statements
in connection with its ownership and operation of the Hotel, and there are no independent audits or financial statements prepared
by third parties relating to the operation of the Hotel other than the Financial Statements prepared by or on behalf of the Existing
Manager, all of which have been provided to Buyer.


 


(k) Employees. All employees employed
at the Hotel are the employees of the Existing Manager. There are, to Seller’s knowledge, no (i) unions organized at the
Hotel, (ii) union organizing attempts, strikes, organized work stoppages or slow downs, or any other labor disputes pending or
threatened with respect to any of the employees at the Hotel, or (iii) collective bargaining or other labor agreements to which
Seller or the Existing Manager or the Hotel is bound with respect to any employees employed at the Hotel.


 


(l) Operations. The Hotel has at
all times been operated by Existing Manager in accordance, in all material respects, with all applicable laws, rules, regulations,
ordinances and codes.


 


(m) Existing Management and Franchise
Agreements. Seller has furnished to Buyer true and complete copies of the Existing Management Agreement and the Existing Franchise
Agreement, which constitutes the entire agreement of the parties thereto with respect to the subject matter thereof and which have
not been amended or supplemented in any respect, except as provided by Seller to Buyer. There are no other management agreements,
franchise agreements, license agreements or similar agreements for the operation or management of the Hotel or relating to the
Brand, to which Seller is a party or which are binding upon the Property, except for the Existing Management Agreement and the
Existing Franchise Agreement. The Improvements comply with, and the Hotel is being operated in accordance with, in all material
respects, all requirements of such Existing Management Agreement and the Existing Franchise Agreement and all other requirements
of the Existing Manager and the Franchisor, including all “brand standard” requirements of the Existing Manager and
the Franchisor. The Existing Management Agreement and the Existing Franchise Agreement are in full force and effect, and shall
remain in full force and effect until the termination of the Existing Management Agreement and the Existing Franchise Agreement
at Closing, as provided in Article V hereof. No default has occurred and is continuing under the Existing Management Agreement
or the Existing Franchise Agreement, and, to Seller’s knowledge, no circumstances exist which, with the giving of notice,
the lapse of time or both, would constitute such a default.


 


(n) Intentionally Omitted.



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BUYER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED IN AND LIMITED BY THE SPECIFIC REPRESENTATIONS SET FORTH IN THIS SECTION
7.1, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS,
AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, EITHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE,
OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION,
THE WATER, DRAINAGE, SOIL AND GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR
ANY AND ALL ACTIVITIES AND USES WHICH BUYER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH
ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE HABITABILITY, MERCHANTABILITY,
MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION
OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY,
(H) COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION, LAND USE OR OTHER LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS,
INCLUDING THE EXISTENCE IN OR ON THE PROPERTY OF HAZARDOUS MATERIALS, (I) ANY DILIGENCE INFORMATION DELIVERED TO BUYER, OR (J)
ANY OTHER MATTER WITH RESPECT TO THE PROPERTY. ADDITIONALLY, NO PERSON ACTING ON BEHALF OF SELLER IS AUTHORIZED TO MAKE, AND BY
EXECUTION HEREOF BUYER ACKNOWLEDGES THAT NO PERSON HAS MADE, ANY REPRESENTATION, AGREEMENT, STATEMENT, WARRANTY, GUARANTY OR PROMISE
REGARDING THE PROPERTY OR THE TRANSACTION CONTEMPLATED HEREIN, AND NO SUCH REPRESENTATION, WARRANTY, AGREEMENT, GUARANTY, STATEMENT
OR PROMISE IF ANY, MADE BY ANY PERSON ACTING ON BEHALF OF SELLER SHALL BE VALID OR BINDING UPON SELLER UNLESS EXPRESSLY SET FORTH
HEREIN OR IN THE DOCUMENTS TO BE DELIVERED BY SELLER AT CLOSING. BUYER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN
THE OPPORTUNITY TO INSPECT THE PROPERTY, BUYER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY, THE REPRESENTATIONS,
WARRANTIES, AND COVENANTS OF SELLER SPECIFICALLY SET FORTH HEREIN AND THE DOCUMENTS DELIVERED AT THE CLOSING, AND NOT ON ANY INFORMATION
PROVIDED OR TO BE PROVIDED BY SELLER, INCLUDING ANY DILIGENCE INFORMATION DELIVERED TO BUYER, AND AGREES TO ACCEPT THE PROPERTY
AT THE CLOSING AND HEREBY WAIVES AND RELEASES ALL OBJECTIONS, SUITS, CAUSES OF ACTION, DAMAGES, LIABILITIES, LOSSES, DEMANDS,
PROCEEDINGS, EXPENSES AND CLAIMS AGAINST SELLER (INCLUDING, BUT NOT LIMITED TO, ANY RIGHT OR CLAIM OF CONTRIBUTION) ARISING FROM
OR RELATED TO THE PROPERTY OR TO ANY HAZARDOUS MATERIALS ON THE PROPERTY, EXCEPT AS EXPRESSLY PROVIDED IN AND LIMITED BY THE REPRESENTATIONS
SET FORTH IN THIS SECTION 7.1 AND THE



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DOCUMENTS DELIVERED BY SELLER AT CLOSING. BUYER FURTHER ACKNOWLEDGES
AND AGREES THAT, TO THE MAXIMUM EXTENT PERMITTED BY LAW, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN “AS-IS”
CONDITION AND BASIS WITH ALL FAULTS. IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE FOR THE PROPERTY HAS BEEN ADJUSTED BY
PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROPERTY IS SOLD BY SELLER AND PURCHASED BY BUYER SUBJECT TO THE FOREGOING.


 


7.2 Buyer’s Representations,
Warranties and Covenants. Buyer represents, warrants and covenants:


 


(a) Authority. Buyer is a corporation
duly formed, validly existing and in good standing in the Commonwealth of Virginia. Buyer has received or will have received by
the applicable Closing Date all necessary authorization of the Board of Directors of Buyer to complete the transactions contemplated
by this Contract. No other consent or approval of any person, entity or governmental authority is required for the execution, delivery
or performance by Buyer of this Contract, and this Contract is hereby binding and enforceable against Buyer.


 


(b) Bankruptcy. Buyer is not insolvent
nor the subject of any bankruptcy proceeding, receivership proceeding or other insolvency, dissolution, reorganization or similar
proceeding.


 


7.3 Survival. All of the representations
and warranties are true, correct and complete in all material respects as of the date hereof and the statements set forth therein
(without qualification or limitation as to a party’s knowledge thereof except as expressly provided for in this Article VII)
shall be true, correct and complete in all material respects as of the Closing Date. All of the representations and warranties
made herein shall survive Closing for a period of nine (9) months and shall not be deemed to merge into or be waived by the Deed
or any other closing documents.


 


ARTICLE
VIII

ADDITIONAL COVENANTS


 


8.1 Subsequent Developments. After
the date of this Contract and until the Closing Date, Seller shall use best efforts to keep Buyer fully informed of all subsequent
developments of which Seller has knowledge (“Subsequent Developments”) which would cause any of Seller’s
representations or warranties contained in this Contract to be no longer accurate in any material respect.


 


8.2 Operations. From and after
the date hereof through the Closing on the Property, Seller shall comply, in all material respects, with the Existing Management
Agreement and the Existing Franchise Agreement and keep the same in full force and effect and shall perform and comply with all
of the following subject to and in accordance with the terms of such agreements:


 


(a) Continue to maintain the Property generally
in accordance with prudent business practices and pursuant to and in compliance with the Existing Management Agreement and the
Existing Franchise Agreement, including, without limitation, (i) using reasonable efforts



    	17



    	



    

to keep available the services of all present
employees at the Hotel and to preserve its relations with guests, suppliers and other parties doing business with Seller with respect
to the Hotel, (ii) accepting booking contracts for the use of the Hotel’s facilities retaining such bookings in accordance
with the terms of the Existing Management Agreement and the Existing Franchise Agreement, (iii) maintaining the current level of
advertising and other promotional activities for the Hotel’s facilities, (iv) maintaining the present level of insurance
with respect to the Hotel in full force and effect until the Closing Date for the Hotel and (v) remaining in compliance in all
material respects with all current Licenses;


 


(b) Keep, observe, and perform in all material
respects all its obligations under and pursuant to the Leases, the Service Contracts, the FF&E Leases, the Existing Management
Agreement, the Existing Franchise Agreement, the Contracts, Plans and Specs, the Warranties and all other applicable contractual
arrangements relating to the Hotel;


 


(c) Not cause or permit the removal of
FF&E from the Hotel except for the purpose of discarding worn and valueless items that have been replaced with FF&E of
equal or better quality, in accordance with Seller’s existing business practices; timely make all repairs, maintenance, and
replacements to keep all FF&E and all other Personal Property and all Real Property in good operating condition (subject to
ordinary wear and tear); keep and maintain the Hotel in a good state of repair and condition, reasonable and ordinary wear and
tear excepted; and not commit waste of any portion of the Hotel;


 


(d) Maintain the levels and quality of
the Personal Property generally at the levels and quality existing on the date hereof (subject to ordinary wear and tear) and keep
merchandise, supplies and inventory adequately stocked, consistent with Seller’s existing business practice, as if the sale
of the Hotel hereunder were not to occur, including, without limitation, maintaining linens and bath towels at least at a 2-par
level for all suites or rooms of the Hotel;


 


(e) Advise Buyer promptly, after Seller
has knowledge, of any litigation, arbitration, or administrative hearing before any court or governmental agency concerning or
affecting the Hotel which is instituted or threatened after the date of this Contract or if any representation or warranty contained
in this Contract shall become false;


 


(f) Not take, or purposefully omit to take,
any action that would have the effect of violating any of the representations, warranties, covenants or agreements of Seller contained
in this Contract;


 


(g) Pay or cause to be paid all taxes,
assessments and other impositions levied or assessed on the Hotel or any part thereof prior to the delinquency date, and comply,
in all material respects, with all federal, state, and municipal laws, ordinances, regulations and orders applicable to the Hotel;


 


(h) Not sell or assign, or enter into any
agreement to sell or assign, or create or permit to exist any lien or encumbrance (other than a Permitted Exception) on, the Property
or any portion thereof; and



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(i) Not allow any material permit, receipt,
license, franchise or right currently in existence with respect to the operation, use, occupancy or maintenance of the Hotel to
expire, be canceled or otherwise terminated.


 


Neither Seller nor Existing Manager shall,
without first obtaining the written approval of Buyer, which approval shall not be unreasonably withheld, enter into any new FF&E
Leases, Service Contracts, Leases or other contracts or agreements related to the Hotel, or extend any existing such agreements,
unless such agreements (x) can be terminated, without payment or penalty, upon thirty (30) days’ prior notice or (y) will
expire prior to the Closing Date.


 


8.3 Third Party Consents. Prior
to the Closing Date, Seller shall, at its expense, (i) obtain any and all third party consents and approvals (x) required in order
to transfer the Hotel to Buyer, or (y) which, if not obtained, would materially adversely affect the operation of the Hotel, including,
without limitation, all consents and approvals referred to on Exhibit D and (ii) use best efforts to obtain all other third
party consents and approvals (all of such consents and approvals in (i) and (ii) above being referred to collectively as, the “Third
Party Consents”), provided, Seller shall not be responsible for obtaining any consents of the Franchisor, any third-party
vendor under any Hotel Contract which Buyer wishes to assume, any consent of any existing lender if buyer is assuming any existing
debt, or any consents related to transfer of utility services or Liquor Licenses, all of which shall be Buyer’s responsibility.


 


8.4 Employees. Upon reasonable
prior notice to Seller by Buyer, Buyer and its employees, representatives and agents shall have the right to communicate
with Seller’s staff, and, subject to the approval of the Existing Manager, the Hotel staff and the Existing Manager’s
staff, including without limitation the general manager, the director of sales, the engineering staff and other key management
employees of the Hotel, at any time before Closing. Buyer shall not interfere with the operations of the Hotel while engaging in
such communication in a manner that materially adversely affects the operation of any Property or the Existing Management Agreements.


 


8.5 Estoppel Certificates. Seller
shall obtain from (i) each tenant under any Lease affecting the Hotel (but not from current or prospective occupants of hotel rooms
and suites within the Hotel), (ii) each lessor under any FF&E Lease for the Hotel identified by Buyer as a material FF&E
Lease, and (iii) each declarant, property owners’ association or similar entity have authority over the development of which
the Property is a part, if any, the estoppel certificates substantially in the forms provided by Buyer to Seller, and deliver to
Buyer on or before Closing. The information contained in such estoppel certificates shall be subject to Buyer’s reasonable
approval and shall contain no materially adverse information (e.g., no defaults by the Property as to use, construction or otherwise
and no past due fees, dues, charges or assessments).


 


8.6 Access to Financial Information.
Buyer’s representatives shall have access to, and Seller and its Affiliates shall cooperate with Buyer and furnish upon request,
all financial and other information relating to the Hotel’s operations to the extent necessary (and available to Seller in
Seller’s standard financial reports) to enable Buyer’s representatives to prepare audited financial statements in conformity
with Regulation S-X of the Securities and Exchange Commission (the “SEC”) and other applicable rules
and regulations of the SEC and to enable



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them to prepare a registration statement,
report or disclosure statement for filing with the SEC on behalf of Buyer or its Affiliates, whether before or after Closing and
regardless of whether such information is included in the Records to be transferred to Buyer hereunder. Seller shall also provide
to Buyer’s representative a signed representation letter in form and substance reasonably acceptable to Seller sufficient
to enable an independent public accountant to render an opinion on the financial statements related to the Hotel. Buyer will reimburse
Seller for costs reasonably incurred by Seller to comply with the requirements of the preceding sentence to the extent that Seller
is required to incur costs not in the ordinary course of business for third parties to provide such representation letters. The
provisions of this Section shall survive Closing or termination of this Contract.


 


8.7 Bulk Sales. At Seller’s
risk and expense, Seller shall take all steps necessary to comply with the requirements of a transferor under all bulk transfer
laws, if any, that are applicable to the transactions contemplated by this Contract.


 


8.8 Indemnification. If the transactions
contemplated by this Contract are consummated as provided herein:


 


(a) Indemnification of Buyer. Without
in any way limiting or diminishing the warranties, representations or agreements herein contained or the rights or remedies available
to Buyer for a breach hereof, Seller hereby agrees to indemnify, defend and hold harmless Buyer and its respective designees, successors
and assigns from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable attorneys’
fees) actually incurred by Buyer, of every kind, nature and description in existence before, on or after Closing, whether known
or unknown, absolute or continent, joint or several, arising out of or relating to:


 


(i) any claim made or asserted
against Buyer or any of the Property by a creditor of Seller, including any claims based on or alleging a violation of any bulk
sales act or other similar laws;


 


(ii) the material breach of
any representation, warranty, covenant or agreement of Seller contained in this Contract, except to the extent that Buyer had actual
knowledge of such breach prior to Closing;


 


(iii) any liability or obligation
of Seller not expressly assumed by Buyer pursuant to this Contract; and


 


(iv) the conduct and operation
by or on behalf of Seller of its Hotel or the ownership, use or operation of its Property prior to Closing.


 


(b) Indemnification of Seller. Without
in any way limiting or diminishing the warranties, representations or agreements herein contained or the rights or remedies available
to Seller for a breach hereof, Buyer hereby agrees, with respect to this Contract, to indemnify, defend and hold harmless Seller
from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable attorneys’ fees) actually
incurred by Seller, of every kind, nature and description in existence before, on or after Closing, whether known or unknown, absolute
or contingent, joint or several, arising out of or relating to:



    	20



    	



    

(i) the breach of any representation,
warranty, covenant or agreement of Buyer contained in this Contract, except to the extent that Seller had actual knowledge of such
breach prior to Closing;


 


(ii) the conduct and operation
by Buyer of its business at the Hotel after the Closing; and


 


(iii) any liability or obligation
of Buyer expressly assumed by Buyer at or prior to Closing.


 


(c) Indemnification Procedure for Claims
of Third Parties. Indemnification, with respect to claims resulting from the assertion of liability by those not parties to
this Contract (including governmental claims for penalties, fines and assessments), shall be subject to the following terms and
conditions:


 


(i) The party seeking indemnification
(the “Indemnified Party”) shall give prompt written notice to the party or parties from which it is seeking
indemnification (the “Indemnifying Party”) of any assertion of liability by a third party which might
give rise to a claim for indemnification based on the foregoing provisions of this Section 8.8, which notice shall state the nature
and basis of the assertion and the amount thereof, to the extent known; provided, however, that no delay on the part of the Indemnified
Party in giving notice shall relieve the Indemnifying Party of any obligation to indemnify unless (and then solely to the extent
that) the Indemnifying Party is prejudiced by such delay.


 


(ii) If in any action, suit
or proceeding (a “Legal Action”) the relief sought is solely the payment of money damages, and if the
Indemnifying Party specifically agrees in writing to indemnify such Indemnified Party with respect thereto and demonstrates to
the reasonable satisfaction of such Indemnified Party its financial ability to do so, the Indemnifying Party shall have the right,
commencing thirty (30) days after such notice, at its option, to elect to settle, compromise or defend, pursuant to this paragraph,
by its own counsel and at its own expense, any such Legal Action involving such Indemnified Party’s asserted liability. If
the Indemnifying Party does not undertake to settle, compromise or defend any such Legal Action, such settlement, compromise or
defense shall be conducted in the sole discretion of such Indemnified Party, but such Indemnified Party shall provide the Indemnifying
Party with such information concerning such settlement, compromise or defense as the Indemnifying Party may reasonably request
from time to time. If the Indemnifying Party undertakes to settle, compromise or defend any such asserted liability, it shall notify
such Indemnified Party in writing of its intention to do so within thirty (30) days of notice from such Indemnified Party provided
above.


 


(iii) Notwithstanding the provisions
of the previous subsection of this Contract, until the Indemnifying Party shall have assumed the defense of the Legal Action, the
defense shall be handled by the Indemnified Party. Furthermore, (x) if the Indemnified Party shall have reasonably concluded that
there are likely to be defenses available to it that are different from or in addition to those available to the Indemnifying



    	21



    	



    

Party; (y) if the Legal Action involves
other than money damages and seeks injunctive or other equitable relief; or (z) if a judgment against Buyer, as the Indemnified
Party, in the Legal Action will, in the good faith opinion of Buyer, establish a custom or precedent which will be adverse to the
best interest of the continuing business of the Hotel, the Indemnifying Party, shall not be entitled to assume the defense of the
Legal Action and the defense shall be handled by the Indemnified Party, provided that, in the case of clause (z), the Indemnifying
Party shall have the right to approve legal counsel selected by the Indemnified Party, such approval not to be unreasonably withheld,
delayed or conditioned. If the defense of the Legal Action is handled by the Indemnified Party under the provisions of this subsection,
the Indemnifying Party shall pay all legal and other expenses reasonably incurred by the Indemnified Party in conducting such defense.


 


(iv) In any Legal Action initiated
by a third party and defended by the Indemnifying Party (w) the Indemnified Party shall have the right to be represented by advisory
counsel and accountants, at its own expense, (x) the Indemnifying Party shall keep the Indemnified Party fully informed as to the
status of such Legal Action at all stages thereof, whether or not the Indemnified Party is represented by its own counsel, (y)
the Indemnifying Party shall make available to the Indemnified Party and its attorneys, accounts and other representatives, all
books and records of Seller relating to such Legal Action and (z) the parties shall render to each other such assistance as may
be reasonably required in order to ensure the proper and adequate defense of such Legal Action.


 


(v) In any Legal Action initiated
by a third party and defended by the Indemnifying Party, the Indemnifying Party shall not make settlement of any claim without
the written consent of the Indemnified Party, which consent shall not be unreasonably withheld. Without limiting the generality
of the foregoing, it shall not be deemed unreasonable to withhold consent to a settlement involving injunctive or other equitable
relief against Buyer or its respective assets, employees, Affiliates or business, or relief which Buyer reasonably believes could
establish a custom or precedent which will be adverse to the best interests of its continuing business.


 


8.9 Escrow Funds. To provide for
the timely payment of any post-closing claims by Buyer against Seller hereunder, at Closing, Seller shall deposit an amount equal
to One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) (the “Escrow Funds”) which shall be withheld
from the Purchase Price payable to Seller and shall be deposited for a period of nine (9) months in an escrow account with the
Title Company pursuant to an escrow agreement reasonably satisfactory in form and substance to Buyer and Seller (the “Post-Closing
Agreement”), which escrow and Post-Closing Agreement shall be established and entered into at Closing and shall be
a condition to Buyer’s obligations under this Contract. If no claims have been asserted by Buyer against Seller, or all such
claims have been satisfied, within six (6) months following Closing, Escrow Agent shall release to Seller the positive difference
between Seventy-Five Thousand and No Dollars ($75,000.00) and the amount of claims paid to such date. If no claims have been asserted
by Buyer against Seller, or all such claims have been satisfied on the date that is (9) months following Closing, the Escrow Funds
deposited by Seller shall be released to Seller.



    	22



    	



    

8.10 Liquor Licenses. As a condition
to Buyer’s obligations under this Contract, (i) Buyer, or an Affiliate of Buyer, shall have obtained all liquor licenses
and alcoholic beverage licenses necessary or desirable to operate any restaurants, bars and lounges presently located within the
Hotel (collectively, the “Liquor Licenses”) and, in the case of an Affiliate of Buyer, the Hotel has
the right to use such Liquor License, (ii) if permitted (or not prohibited) under the laws of the jurisdiction in which the Hotel
is located, the Manager shall cooperate with Buyer and shall execute and file any and all necessary forms, applications and other
documents (and Seller shall cooperate, at no cost to Seller, with Buyer in filing such forms, applications and other documents)
(including interim or transition agreements) with the appropriate liquor and alcoholic beverage authorities prior to Closing so
that the necessary Liquor Licenses remain or are in full force and effect upon completion of Closing.


 


ARTICLE
IX

CONDITIONS FOR CLOSING


 


9.1 Buyer’s Conditions for Closing.
Unless otherwise waived in writing, and without prejudice to Buyer’s right to cancel this Contract during the Review Period,
the duties and obligations of Buyer to proceed to Closing under the terms and provisions of this Contract are and shall be expressly
subject to strict compliance with, and satisfaction or waiver of, each of the conditions and contingencies set forth in this Section
9.1, each of which shall be deemed material to this Contract. In the event of the failure of any of the conditions set forth in
this Section 9.1 or of any other condition to Buyer’s obligations provided for in this Contract, which condition is not waived
in writing by Buyer, Buyer shall have the right at its option to declare this Contract terminated, in which case the Earnest Money
Deposit and any interest thereon shall be immediately returned to Buyer and each of the parties shall be relieved from further
liability to the other, except as otherwise expressly provided herein, with respect to this Contract.


 


(a) All of Seller’s representations
and warranties contained in or made pursuant to this Contract shall be true and correct in all material respects as if made again
on the Closing Date; provided, however, in the event Buyer has actual knowledge of any inaccuracy of Seller’s representations
or warranties in any material respect prior to the end of the Review Period and Buyer does not object to such inaccuracy prior
to the end of the Review Period, then Buyer shall be deemed to have waived its right to declare this Contract terminated as a result
of such inaccuracy.


 


(b) Buyer shall have received all of the
instruments and conveyances listed in Section 10.2.


 


(c) Seller shall have performed, observed
and complied in all material respects with all of the covenants, agreements, closing requirements and conditions required by this
Contract to be performed, observed and complied with by Seller, as and when required hereunder.


 


(d) All Liquor Licenses shall be in full
force and effect and shall remain in full force and effect following Closing and shall have been or shall be transferred to, or
new Liquor Licenses issued to, Buyer or an Affiliate thereof, and Buyer shall have received satisfactory evidence thereof.



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(e) Third Party Consents in form and substance
satisfactory to Buyer shall have been obtained and furnished to Buyer.


 


(f) The Escrow Funds shall have been deposited
in the escrow account pursuant to the Post-Closing Agreement and the parties thereto shall have entered into the Post-Closing Agreement.


 


(g) The Existing Management Agreement and
the Existing Franchise Agreement shall have been terminated.


 


(h) Buyer and the Manager shall have executed
and delivered the New Management Agreement and Buyer and the Franchisor shall have executed and delivered the New Franchise Agreement,
upon terms and conditions acceptable to Buyer in its sole and absolute discretion.


 


9.2 Seller’s Conditions for
Closing. Unless otherwise waived in writing, and without prejudice to Seller’s right to cancel this Contract during the
Review Period, the duties and obligations of Seller to proceed to Closing under the terms and provisions of this Contract are and
shall be expressly subject to strict compliance with, and satisfaction or waiver of, each of the conditions and contingencies set
forth in this Section 9.2, each of which shall be deemed material to this Contract. In the event of the failure of any of the conditions
set forth in this Section 9.2, which condition is not waived in writing by Seller, Seller shall have the right at its option to
declare this Contract terminated and null and void, in which case the remaining Earnest Money Deposit and any interest thereon
shall be immediately returned to Buyer and each of the parties shall be relieved from further liability to the other, except as
otherwise expressly provided herein.


 


(a) All of Buyer’s representations
and warranties contained in or made pursuant to this Contract shall be true and correct in all material respects as if made again
on the Closing Date.


 


(b) Seller shall have received all of the
money, instruments and conveyances listed in Section 10.3.


 


(c) Buyer shall have performed, observed
and complied in all material respects with all of the covenants, agreements, closing requirements and conditions required by this
Contract to be performed, observed and complied with by Buyer, as and when required hereunder.


 


(d) Seller and Seller’s principals
(as applicable) shall have been released from all prospective (but not retrospective) liability under the Existing Franchise Agreement,
any Utility Reservations [and the Liquor Licenses].


 


(e) Buyer shall have entered into the New
Management Agreement with the Manager, at the terms set forth in Exhibit H.


 


[Need to address assumption of
existing debt if applicable]



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ARTICLE
X

CLOSING AND CONVEYANCE


 


10.1 Closing. Unless otherwise
agreed by Buyer and Seller, the Closing on the Property shall occur on a date selected by Buyer that is the later of (a) fifteen
(15) business days after expiration of the Review Period or (b) the date Buyer receives the New Franchise Agreement executed by
the Franchisor, provided, in either case, that all conditions to Closing by Buyer hereunder have been satisfied, but not later
than ninety (90) days from the date hereof in any event. The date on which the Closing is to occur as provided in this Section
10.1, or such other date as may be agreed upon by Buyer and Seller, is referred to in this Contract as the “Closing
Date” for the Property. The Closing shall be held via escrow at the offices of the Title Company, or as otherwise
determined by Buyer and Seller.


 


10.2 Deliveries of Seller. At
Closing, Seller shall deliver to Buyer the following, and, as appropriate, all instruments shall be properly executed and conveyance
instruments to be acknowledged in recordable form (the terms, provisions and conditions of all instruments not attached hereto
as Exhibits shall be mutually agreed upon by Buyer and Seller prior to such Closing):


 


(a) Deed. A Special Warranty Deed
conveying to Buyer fee simple title to the Real Property, subject only to the Permitted Exceptions (the “Deed”).


 


(b) Bills of Sale. Bills of sale
to Buyer and/or its designated Lessee, conveying title to the tangible Personal Property (other than the alcoholic beverage inventories,
which, at Buyer’s election, shall be transferred by Seller to the holder of the Liquor Licenses required for operation of
the Hotel).


 


(c) Existing Management and Franchise
Agreements. The termination of the Existing Management Agreement and the Existing Franchise Agreement.


 


(d) General Assignments. Assignments
of all of Seller’s right, title and interest in and to all FF&E Leases, Service Contracts and Leases identified on Exhibit
C hereto (the “Hotel Contracts”). The assignment shall also be a general assignment and shall provide
for the assignment of all of Seller’s right, title and interest in all Records, Warranties, Licenses, Tradenames, Contracts,
Plans and Specs and all other intangible Personal Property applicable to the Hotel. The assignments shall contain cross-indemnities
by Buyer and Seller for their respective periods of ownership.


 


(e) FIRPTA; 1099. A FIRPTA Affidavit
or Transferor’s Certificate of Non-Foreign Status as required by Section 1445 of the Internal Revenue Code and an IRS Form
1099.


 


(f) Title Company Documents. All
affidavits, gap indemnity agreements and other documents reasonably required by the Title Company. At Buyer’s sole expense,
Buyer shall have obtained an irrevocable commitment directly from the Title Company (or in the event the Title Company is not willing
to issue said irrevocable commitment, then from such other national title company as may be selected by either Buyer or Seller)
for issuance of an Owner’s Policy of Title Insurance to Buyer insuring good and marketable fee simple absolute title to the



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Real Property constituting part of the Property,
subject only to the Permitted Exceptions in the amount of the Purchase Price.


 


(g) Possession; Estoppel Certificates.
Possession of the Property, subject only to rights of guests in possession and tenants pursuant to written leases included in the
Leases, and estoppel certificates from tenants under Leases and the lessors under FF&E Leases in form and substance acceptable
to Buyer.


 


(h) Vehicle Titles. The necessary
certificates of titles duly endorsed for transfer together with any required affidavits and other documentation necessary for the
transfer of title or assignment of leases from Seller to Buyer of any motor vehicles used in connection with the Hotel’s
operations.


 


(i) Authority Documents. Certified
copy of resolutions of the Board of Directors of Seller authorizing the sale of the Property contemplated by this Contract, and/or
other evidence reasonably satisfactory to Buyer and the Title Company that the person or persons executing the closing documents
on behalf of Seller have full right, power and authority to do so, along with a certificate of good standing of Seller from the
State in which the Property is located.


 


(j) Miscellaneous. Such other instruments
as are contemplated by this Contract to be executed or delivered by Seller, reasonably required by Buyer or the Title Company,
or customarily executed in the jurisdiction in which the Hotel is located, to effectuate the conveyance of property similar to
the Hotel, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles, and interests of Seller
related to the Hotel and Seller will no longer have any rights, titles, or interests in and to the Hotel.


 


(k) Plans, Keys, Records, Etc. To
the extent not previously delivered to and in the possession of Buyer, all Contracts, Plans and Specs, all keys for the Hotel (which
keys shall be properly tagged for identification), all Records, including, without limitation, all Warranties, Licenses, Leases,
FF&E Leases and Service Contracts for the Hotel.


 


(l) Closing Statements. Seller’s
Closing Statement, and a certificate confirming the truth of Seller’s representations and warranties hereunder as of the
Closing Date.


 


(m) New Management Agreement. Seller
shall cause the Manager to execute and deliver the New Management Agreement.


 


10.3 Buyer’s Deliveries.
At Closing of the Hotel, Buyer shall deliver the following:


 


(a) Purchase Price. The balance
of the Purchase Price, adjusted for the adjustments provided for in Section 12.1, below, and less any sums to be deducted therefrom
as provided in Section 2.4.


 


(b) Authority Documents. Certified
copy of resolutions of the Board of Directors of Buyer authorizing the purchase of the Hotel contemplated by this Contract, and/or
other evidence satisfactory to Seller and the Title Company that the person or persons executing the closing documents on behalf
of Buyer have full right, power and authority to do so.



    	26



    	



    

(c) Miscellaneous. Such other instruments
as are contemplated by this Contract to be executed or delivered by Buyer, reasonably required by Seller or the Title Company,
or customarily executed in the jurisdiction in which the Hotel is located, to effectuate the conveyance of property similar to
the Hotel, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles, and interests of Seller
related to the Hotel and Seller will no longer have any rights, titles, or interests in and to the Hotel.


 


(d) Closing Statements. Buyer’s
Closing Statement, and a certificate confirming the truth of Buyer’s representations and warranties hereunder as of the Closing
Date.


 


(e) New Management Agreement. Buyer
shall cause the Manager to execute and deliver the New Management Agreement.


 


ARTICLE
XI

COSTS


 


All Closing costs shall be paid as set forth
below:


 


11.1 Seller’s Costs. In
connection with the sale of the Property contemplated under this Contract, Seller shall be responsible for all transfer and recordation
taxes, including, without limitation, all transfer, mansion, excise, sales, use or bulk transfer taxes or like taxes on or in connection
with the transfer of the Real Property and the Personal Property constituting part of the Property pursuant to the Bill of Sale,
and all accrued taxes of Seller prior to Closing and income, sales and use taxes and other such taxes of Seller attributable to
the sale of the Property to Buyer. Seller shall be responsible for all costs related to the termination of the Existing Management
Agreement as provided in Article V. Seller shall also be responsible for any costs and expenses of its attorneys, accountants,
appraisers and other professionals, consultants and representatives. Seller shall also be responsible for payment of all prepayment
penalties and other amounts payable in connection with the pay-off of any liens and/or indebtedness encumbering all or any portion
of the Property.


 


11.2 Buyer’s Costs. In connection
with the purchase of the Property contemplated under this Contract, Buyer shall be responsible for the costs and expenses of its
attorneys, accountants and other professionals, consultants and representatives. Buyer shall also be responsible for the costs
and expenses in connection with the preparation of any environmental report, any update to the survey and the costs and expenses
of preparation of the title insurance commitment and the issuance of the title insurance policy contemplated by Article IV and
the per page recording charges and clerk’s fee for the Deed (if applicable). Buyer shall also be responsible for the fees
for the performance of the property improvement plan (PIP) review and report by the Franchisor, as well as any costs incurred in
completing the work and improvements required by the PIP.


 


ARTICLE
XII

ADJUSTMENTS


 


12.1 Adjustments. Unless otherwise
provided herein, at Closing, adjustments between the parties shall be made as of 11:59 p.m. on the eve of the Closing Date (the
“Cutoff Time”),



    	27



    	



    

with the income and expenses accrued prior
to the Cutoff Time being allocated to Seller and the income and expenses accruing on and after the Cutoff Time being allocated
to Buyer, all as set forth below. All of such adjustments and allocations shall be made in cash at Closing and shall be collected
through and/or adjusted in accordance with the terms of the Existing Management Agreement. Except as otherwise expressly provided
herein, all apportionments and adjustments shall be made on an accrual basis in accordance with generally accepted accounting principles.
Buyer and Seller shall request that the Manager determine the apportionments, allocations, prorations and adjustments as
of the Cutoff Time.


 


(a) Taxes. All real estate taxes,
personal property taxes, or any other taxes and special assessments (special or otherwise) of any nature upon the Property levied,
assessed or pending for the calendar year in which the Closing occurs (including the period prior to Closing, regardless of when
due and payable) shall be prorated as of the Cutoff Time and, if no tax bills or assessment statements for such calendar year are
available, such amounts shall be estimated on the basis of the best available information for such taxes and assessments that will
be due and payable on the Hotel for the calendar year in which Closing occurs. Until final tax bills that cover the entire year
during which Closing occurred (such that tax liability can reasonably be determined), Seller’s obligation to pay its share
of taxes shall continue.


 


(b) Utilities. All suppliers of
utilities shall be instructed to read meters or otherwise determine the charges owing as of the Closing Date for services prior
thereto, which charges shall be allocated to Seller. Charges accruing after Closing shall be allocated to Buyer. If elected by
Seller, Seller shall be given credit, and Buyer shall be charged, for any utility deposits transferred to and received by Buyer
at Closing.


 


(c) Income/Charges. All rents, income
and charges receivable or payable under any Leases and Hotel Contracts applicable to the Property, and any deposits, prepayments
and receipts thereunder, shall be prorated between Buyer and Seller as of the Cutoff Time.


 


(d) Accounts. All working capital
accounts and escrow accounts (including all Franchisor escrows, but excluding amounts held in tax and insurance escrow accounts,
all FF&E and capital improvement and repair reserves and utility deposits, shall become the property of Buyer, without additional
charge to Buyer and without Buyer being required to fund the same.


 


(e) Guest Ledger. Subject to (f)
below, all accounts receivable of registered guests at the Hotel who have not checked out and were occupying rooms as of the Cutoff
Time, shall be prorated as provided herein.


 


(f) Room Rentals. All receipts from
guest room rentals and other suite revenues for the night in which the Cutoff Time occurs shall be split 50/50 between Buyer and
Seller.


 


(g) Advance Deposits. All prepaid
rentals, room rental deposits, and all other deposits for advance registration, banquets or future services to be provided on and
after the Closing Date shall be credited to Buyer.



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(h) Accounts Receivable. To the
extent not apportioned at Closing and subject to (e) and (f) above, all accounts receivable and credit card claims as of the Cutoff
Time shall remain the property of Seller, and Seller and Buyer agree that the monies received from debtors owing such accounts
receivable balances after Closing, unless otherwise provided in the New Management Agreement, shall be applied as expressly provided
in such remittance, or if not specified then to the Seller’s outstanding invoices to such account debtors in chronological
order beginning with the oldest invoices, and thereafter, to Buyer’s account.


 


(i) Accounts Payable. To the extent
not apportioned at Closing, any indebtedness, accounts payable, liabilities or obligations of any kind or nature related to Seller
or the Property for the periods prior to and including the Closing Date shall be retained by Seller and promptly allocated to Seller
and evidence thereof shall be provided to Buyer, and Buyer shall not be or become liable therefor, except as expressly assumed
by Buyer pursuant to this Contract, and invoices received in the ordinary course of business prior to Closing shall be allocated
to Seller at Closing.


 


(j) Restaurants, Bars, Machines, Other
Income. All monies received in connection with bar, restaurant, banquet and similar and other services at the Hotel (other
than amounts due from any guest and included in room rentals) prior to the close of business for each such operation for the night
in which the Cutoff Time occurs shall belong to Seller, and all other receipts and revenues (not previously described in this Section
12.1) from the operation of any department of the Hotel shall be prorated between Seller and Buyer at Closing.


 


12.2 Reconciliation and Final Payment.
Seller and Buyer shall reasonably cooperate after Closing to make a final determination of the allocations and prorations required
under this Contract within one hundred eighty (180) days after the Closing Date; provided, however, failure to make a final determination
within such period shall not relieve the parties of the obligation to make a final determination nor shall it relieve any party
of the obligation to pay the other any true-up amounts owed. Upon the final reconciliation of the allocations and prorations under
this Section, the party which owes the other party any sums hereunder shall pay such party such sums within ten (10) business days
after the reconciliation of such sums. The obligations to calculate such prorations, make such reconciliations and pay any such
sums shall survive the Closing.


 


12.3 Employees. None of the employees
of the Hotel shall become employees of Buyer, as of the Closing Date; instead, such employees shall become, or remain as the case
may be, employees of the Manager. Seller shall not give notice under any applicable federal or state plant closing or similar act,
including, if applicable, the Worker Adjustment and Retraining Notification Provisions of 29 U.S.C., Section 2102, the parties
having agreed that a mass layoff, as that term is defined in 29 U.S.C., 2101(a)(3), will not have occurred. Any liability for payment
of all wages, salaries and benefits, including, without limitation, accrued vacation pay, sick leave, bonuses, pension benefits,
COBRA rights, and other benefits accrued or earned by and due to employees at the Hotel through the Cutoff Time, together with
F.I.C.A., unemployment and other taxes and benefits due with respect to such employees for such period, shall be charged to Seller,
in accordance with the Existing Management Agreement, for the purposes of the adjustments to be made as of the Cutoff Time. All
liability for wages, salaries and benefits of the employees accruing in respect of and attributable to the period from and after
Closing shall be charged to Buyer, in accordance with the New Management Agreement. To the



    	29



    	



    

extent applicable, all such allocations and
charges shall be adjusted in accordance with the provisions of the Existing Management Agreement.


 


ARTICLE
XIII

CASUALTY AND CONDEMNATION


 


13.1 Risk of Loss; Notice. Prior
to Closing and the delivery of possession of the Property to Buyer in accordance with this Contract, all risk of loss to the Property
(whether by casualty, condemnation or otherwise) shall be borne by Seller. In the event that (a) any loss or damage to the Hotel
shall occur prior to the Closing Date as a result of fire or other casualty, or (b) Seller receives notice that a governmental
authority has initiated or threatened to initiate a condemnation proceeding affecting the Hotel, Seller shall give Buyer immediate
written notice of such loss, damage or condemnation proceeding (which notice shall include a certification of (i) the amounts of
insurance coverages in effect with respect to the loss or damage and (ii) if known, the amount of the award to be received in such
condemnation).


 


13.2 Buyer’s Termination Right.
If, prior to Closing and the delivery of possession of the Property to Buyer in accordance with this Contract, (a) any condemnation
proceeding shall be pending against a substantial portion of the Hotel or (b) there is any substantial casualty loss or damage
to the Hotel, Buyer shall have the option to terminate this Contract, provided Buyer delivers written notice to Seller of its election
within twenty (20) days after the date Seller has delivered Buyer written notice of any such loss, damage or condemnation as provided
above, and in such event, the Earnest Money Deposit, and any interest thereon, shall be delivered to Buyer and thereafter, except
as expressly set forth herein, no party shall have any further obligation or liability to the other under this Contract. In the
context of condemnation, “substantial” shall mean condemnation of such portion of a Hotel (or access thereto) as could,
in Buyer’s reasonable judgment, render use of the remainder impractical or unfeasible for the uses herein contemplated, and,
in the context of casualty loss or damage, “substantial” shall mean a loss or damage in excess of One Hundred Thousand
and No/100 Dollars ($100,000.00) in value.


 


13.3 Procedure for Closing. If
Buyer shall not timely elect to terminate this Contract under Section 13.2 above, or if the loss, damage or condemnation is not
substantial, Seller agrees to pay to Buyer at the Closing all insurance proceeds or condemnation awards which Seller has received
as a result of the same, plus an amount equal to the insurance deductible, and assign to Buyer all insurance proceeds and condemnation
awards payable as a result of the same, in which event the Closing shall occur without Seller replacing or repairing such damage.
In the case of damage or casualty, at Buyer’s election, Seller shall repair and restore the Property to its condition immediately
prior to such damage or casualty and shall assign to Buyer all excess insurance proceeds.


 


ARTICLE
XIV

DEFAULT REMEDIES


 


14.1 Buyer Default. If Buyer defaults
under this Contract after the Review Period, and such default continues for thirty (30) days following written notice from Seller,
then at Seller’s election by written notice to Buyer, this Contract shall be terminated and of no effect, in which event
the Earnest Money Deposit, including any interest thereon, shall be paid to and retained by



    	30



    	



    

the Seller as Seller’s sole and exclusive
remedy hereunder, and as liquidated damages for Buyer’s default or failure to close, and both Buyer and Seller shall thereupon
be released from all obligations hereunder.


 


14.2 Seller Default. If Seller
defaults under this Contract, and such default continues for thirty (30) days following written notice from Buyer, Buyer may elect,
as Buyer’s sole and exclusive remedy, either (i) to terminate this Contract by written notice to Seller delivered to that
Seller at any time prior to the completion of such cure, in which event the Earnest Money Deposit, including any interest thereon,
shall be returned to the Buyer, Seller shall reimburse Buyer for Buyer’s actual and verifiable third party due diligence
costs and expenses based on paid invoices (not to exceed $50,000), and thereafter, both the Buyer and Seller shall thereupon
be released from all obligations with respect to this Contract, except as otherwise expressly provided herein; or (ii) to treat
this Contract as being in full force and effect by written notice to Seller delivered to Seller at any time prior to the completion
of such cure, in which event the Buyer shall have the right to an action against the defaulting Seller for specific performance.


 


14.3 Attorney’s Fees. Anything
to the contrary herein notwithstanding, if it shall be necessary for either the Buyer or Seller to employ an attorney to enforce
its rights pursuant to this Contract because of the default of the other party, and the non-defaulting party is successful in enforcing
such rights, then the defaulting party shall reimburse the non-defaulting party for the non-defaulting party’s reasonable
attorneys’ fees, costs and expenses.


 


ARTICLE
XV

NOTICES


 


All notices required herein shall be deemed
to have been validly given, as applicable: (i) if given by fax, when the fax is transmitted to the party’s fax number specified
below and confirmation of complete receipt is received by the transmitting party during normal business hours or on the next Business
Day if not confirmed during normal business hours, (ii) if hand delivered to a party against receipted copy, when the copy of the
notice is receipted or rejected, (iii) if given by certified mail, return receipt requested, postage prepaid, two (2) Business
Days after it is posted with the U.S. Postal Service at the address of the party specified below, (iv) on the next delivery day
after such notices are sent by recognized and reputable commercial overnight delivery service marked for next day delivery, return
receipt requested or similarly acknowledged, or (v) if given by electronic mail, when the electronic mail is sent to the address
below:


 


	 	If to Buyer:	 	
        Apple Ten Hospitality Ownership, Inc.


814 E. Main Street


Richmond, Virginia 23219


Attention: Sam Reynolds


Fax No.: (804) 344-8129


Email: sreynolds@applereit.com



	 	 	 	 
	 	with a copy to:	 	
        Apple REIT Ten, Inc.


814 E. Main Street


Richmond, Virginia 23219







    	31



    	



    

	 	 	 	
        Attention: Legal Dept.


Fax No.: (804) 727-6349


Email: dbuckley@applereit.com



	 	 	 	 
	 	If to Seller:	 	
        CHGM Denton Hotel Partners, LLC


c/o Chartwell Hospitality, LLC


2000 Meridian Blvd., Suite 200


Franklin, TN 37067


Attn: Robert G. Schaedle, III


Email: rschaedle@chartwellhospitality.com



	 	 	 	 
	 	
        with a copy to:

         
	 	
        Kim A. Brown, Esq.


Sherrard & Roe, PLC


150 Third Avenue South, Suite 1100


Nashville TN 37201


Email: KBrown@sherrardroe.com





 


Addresses may be changed by the parties
hereto by written notice in accordance with this Section.


 


ARTICLE
XVI

MISCELLANEOUS


 


16.1 Performance. Time is of the
essence in the performance and satisfaction of each and every obligation and condition of this Contract.


 


16.2 Binding Effect; Assignment.
This Contract shall be binding upon and shall inure to the benefit of each of the parties hereto, their respective successors and
assigns.


 


16.3 Entire Agreement. This Contract
and the Exhibits constitute the sole and entire agreement between Buyer and Seller with respect to the subject matter hereof. No
modification of this Contract shall be binding unless signed by both Buyer and Seller.


 


16.4 Governing Law. The validity,
construction, interpretation and performance of this Contract shall in all ways be governed and determined in accordance with the
laws of the State of Iowa (without regard to conflicts of law principles).


 


16.5 Captions. The captions used
in this Contract have been inserted only for purposes of convenience and the same shall not be construed or interpreted so as to
limit or define the intent or the scope of any part of this Contract.


 


16.6 Confidentiality. Except as
either party may reasonably determine is required by law (including without limitation laws and regulations applicable to Buyer
or its Affiliates who may be public companies): (i) prior to Closing, Buyer and Seller shall not disclose the existence of this
Contract or their respective intentions to purchase and sell the Property or generate or



    	32



    	



    

participate in any publicity or press release
regarding this transaction, except to Buyer’s and Seller’s legal counsel and lender, Buyer’s consultants and
agents, the Manager, the Existing Manager, the Franchisor and the Title Company and except as necessitated by Buyer’s Due
Diligence Examination and/or shadow management, unless both Buyer and Seller agree in writing and as necessary to effectuate the
transactions contemplated hereby and (ii) following Closing, the parties shall coordinate any public disclosure or release of information
related to the transactions contemplated by this Contract, and no such disclosure or release shall be made without the prior written
consent of Buyer, and no press release shall be made without the prior written approval of Buyer and Seller.


 


16.7 Closing Documents. To the
extent any Closing documents are not attached hereto at the time of execution of this Contract, Buyer and Seller shall negotiate
in good faith with respect to the form and content of such Closing documents prior to Closing.


 


16.8 Counterparts. This Contract
may be executed in counterparts by the parties hereto, and by facsimile signature, and each shall be considered an original and
all of which shall constitute one and the same agreement.


 


16.9 Severability. If any provision
of this Contract shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid or unenforceable, such
judgment shall not affect, impair or invalidate the remainder of this Contract but shall be confined in its operation to the provision
or provisions hereof directly involved in the controversy in which such judgment shall have been rendered, and this Contract shall
be construed as if such provision had never existed, unless such construction would operate as an undue hardship on Seller or Buyer
or would constitute a substantial deviation from the general intent of the parties as reflected in this Contract.


 


16.10 Interpretation. For purposes
of construing the provisions of this Contract, the singular shall be deemed to include the plural and vice versa
and the use of any gender shall include the use of any other gender, as the context may require.


 


16.11 Further Acts. In addition
to the acts, deeds, instruments and agreements recited herein and contemplated to be performed, executed and delivered by Buyer
and Seller, Buyer and Seller shall perform, execute and deliver or cause to be performed, executed and delivered at the Closing
or after the Closing, any and all further acts, deeds, instruments and agreements and provide such further assurances as the other
party or the Title Company may reasonably require to consummate the transaction contemplated hereunder.


 


16.12 Joint and Several Obligations.
If Seller consists of more than one person or entity, each such person or entity shall be jointly and severally liable with respect
to the obligations of Seller under this Contract.


 


16.13 Notice of Proposed Listing.
In the event that the sale of the Property contemplated by this Contract is consummated, if at any time during the five (5) year
period commencing on the date of execution of this Contract by Buyer and Seller, Seller or any of its Affiliates propose to list
for sale any hotel property or properties owned, acquired, constructed or developed by Seller or their Affiliates and located within
a ten (10)-mile radius of the Hotel (any



    	33



    	



    

such other hotel property being referred to
as an “Other Property”), Seller shall promptly deliver to Buyer written notice thereof and Buyer shall
have the right to see and participate in the offering and/or otherwise make an offer to purchase any such Other Property.


 


16.14 Right of First Refusal.
In exchange for Buyer’s agreement to enter into this Agreement, Chartwell on behalf of itself and its Affiliates hereby grants
Buyer and any Affiliate of Buyer a right of first refusal to purchase the hotels listed on Schedule 16.14 attached hereto (whether
or not currently under development by Chartwell) (each a “ROFR Hotel” and collectively, the “ROFR
Hotels”), at the same price, and upon the same terms, as any offer received by Chartwell that Chartwell is willing
to accept (the “Right of First Refusal”). Specifically, Chartwell shall notify Buyer in writing of any
offer received by Chartwell or its Affiliate that Chartwell desires to accept, and such notification shall include a copy of the
purchase agreement (the “Offer”). Thereafter, Buyer or its Affiliate shall have a period of fifteen (15) Business Days
to accept the Offer. If Buyer either rejects the Offer or fails to affirmatively accept the Offer within such fifteen (15) Business
Day period, then the Right of First Refusal shall automatically and forever terminate with regard to the specific ROFR Hotel. If
Buyer or its Affiliate timely accepts the Offer, then Buyer or its Affiliate will purchase the ROFR Hotel on the same terms and
conditions as set forth in the Offer, and Buyer’s (or it Affiliate’s) failure to do so shall cause the Right of First
Refusal to automatically terminate. In addition to the termination events set forth above, the Right of First Refusal shall automatically
terminate at such time as Chartwell no longer is engaged as the Manager of the Hotel. Under no circumstances shall the Right of
First Refusal apply to (i) a lease of retail or “shop” space within any ROFR Hotel, (ii) a condemnation of all or a
portion of any ROFR Hotel, (iii) the granting of easements and rights-of-way, (iv) any mortgage of any ROFR Hotel, (v) any foreclosure
sale, deed-in-lieu of foreclosure or similar disposition by any mortgagee of a ROFR Hotel, or (vi) a transfer of a ROFR Hotel to
an Affiliate of the Buyer. In addition, Chartwell’s right to manage the ROFR Hotel(s) is subject to the agreement by Chartwell
to manage the ROFR Hotel(s) in a manner consistent with Chartwell’s standard management practices and consistent with its
management of the Hotel. The rights granted in this Section 16.14 shall survive Closing and shall not be merged into or with the
Deed. Furthermore, as a condition to Buyer’s obligation to close on the Property hereunder, Seller shall deliver to Buyer
an executed Right of First Refusal Agreement in recordable form in the land records of the jurisdiction in which the ROFR Hotel
is located.


 


ARTICLE
XVII


 


OTHER
contractS


 


Concurrently with the execution of this
Contract, Buyer is entering into four additional purchase contracts (the “Other Contracts”) with Affiliates
of Seller (the “Other Sellers”) for the purchase of the hotels described on Schedule 17 attached hereto.
Buyer and Seller acknowledge and agree that the closings under this Contract and the Other Contracts must occur simultaneously,
that a default by either party under this Contract that remains uncured in accordance with the terms of this Contract shall entitle
the non-defaulting party to terminate the Other Contracts on notice to the other, and that a default by either party under the
Other Contracts shall entitle the non-defaulting party to terminate this Contract on notice to the other. In addition, in the event
of any occurrence or exercise of any right which results in the



    	34



    	



    

termination of the Other Contract prior to Closing, either party
shall have the right to terminate this Contract upon notice to the other, in which event, unless such termination resulted from
Buyer’s default, the Deposit shall be paid to Buyer. Notwithstanding the foregoing, in the event of termination of this Contract
and the Other Contracts as a result of Buyer’s default under one, but not all, of such contracts, the selling party shall
only be entitled to retain the Deposit for the Contract under which Buyer shall have defaulted. Notwithstanding the foregoing,
in the event of a default by Seller, under one, but not all, of such Contracts, Buyer shall be entitled to either (i) terminate
this Contract and the Other Contracts, or (ii) pursue specific performance of this Contract and the Other Contracts. Seller and
Buyer acknowledge and understand that three of the Other Contracts are currently encumbered by mortgage debt (the “Encumbered
Properties”) which the buyer under those Other Contracts intends to assume. Further, notwithstanding anything contained
in this Article 17 to the contrary, closing on the purchase and sale of any of the Encumbered Properties is not anticipated nor
required to occur simultaneously with the Closing hereunder or with the Closing under any of the Other Contracts.


 


[Signatures Begin on Following Page]



    	35



    	



    

IN WITNESS WHEREOF, this Contract has been
executed, to be effective as of the date first above written, by the Buyer and Seller.


 


	 	SELLER:
	 	 
	 	CHGM DENTON HOTEL PARTNERS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: /s/ Robert G. Schaedle
	 	Name: Robert G. Schaedle
	 	Title: Managing Member
	 	 
	 	BUYER:
	 	 
	 	APPLE TEN HOSPITALITY OWNERSHIP, INC.,

a Virginia corporation
	 	 
	 	By: /s/ David Buckley
	 	Name: David Buckley
	 	Title: Vice President




    	36



    	



    

EXHIBIT A


 


LEGAL DESCRIPTION OF LAND


 


Lot 2, in Block C, of Unicorn Lake, an addition to the City
of Denton, Denton County, Texas, according to the Map or Plat thereof recorded in Cabinet Y, Slide 182, Plat Records, Denton County,
Texas.



    	 



    	



    

EXHIBIT B


 


LIST OF FF&E


 


See CD-ROM delivered from Seller to Buyer.



    	 



    	



    

EXHIBIT C


 


LIST OF HOTEL CONTRACTS


 


EXHIBIT C-1 - Seller’s Hotel Contracts


 


	
Brand:
Homewood Suites Denton

Location: Texas

# Rooms: 107
	 	Service Contract	Term	Annual Amount 	Cancellation	Company	Assignment
	ASCAP
Music License Agreement	 	1 yr:


Beg; 

5/16/12
	$600 Annual	5/16/13 Exp.	HWS Denton	No auto renew
	CBS Aaon Unit	 	Beg;


9/13/12	$680
Annual	9/13/13 Exp.	HWS Denton	No auto renew
	ThyssenKrupp Elevator	 	Beg; 

8/3/10


3 yrs.	$1,458
per qtrly.	30-day written notice
Exp. 8/13/13	HWS Denton	No auto renew
Month-Month after Exp.
	Northstar Bank
Signage	 	9/1/09


2 yrs.	$500
per mo.	30-day written notice
Exp. 9/1/13	HWS Denton	Auto renew
	Avendra
Purchasing Program	 	Beg;


3/10/08	Based on purchase	Cancellation by email	HWS Denton	 
	M-3
Accounting Software
Time Saver
Payroll	 	Login

 Fee $17


per user	$550
per mo.	Cancellation by email	HWS Denton	 
	Devine
Applicant Tracking System	 	Beg;


3/10/10	$447
per mo.	30-day written notice
	HWS Denton	 
	SalesPro
Sales Software	 	Beg;


12/2/09	$1,800
Annual	60-day written notice
	HWS Denton	 
	Signature Worldwide
Reservation shopping Service	 	Beg:

 1/1/12


Month-

Month	$306
per mo.	30-day written
notice	HWS Denton	 
	World Cinema
TV Programming	 	7 yrs.
	$2,017
Month	Exp. 7/2/16
Auto Term	HWS Denton	 
	Valley Crest
Landscaping	 	 	$2,026
per mo.	30-day written
notice	HWS Denton	 
	OCE
Canon Copier Maintenance	 	.15 per copy	Monthly	30-day written
notice	HWS Denton	 




    	2



    	



    

EXHIBIT C-2 - Other Hotel Contracts


 


None.



    	3



    	



    

EXHIBIT D


 


CONSENTS AND APPROVALS


 


	 	A.	Consents Under Hotel Contracts
	 	 	 	 
	 	 	 	None.
	 	 	 	 
	 	B.	Consents Under Other Contracts
	 	 	 	 
	 	 	 	None.
	 	 	 	 
	 	C.	Governmental Approvals and Consents
	 	 	 	 
	 	 	 	None.




    	 



    	



    

EXHIBIT E


 


ENVIRONMENTAL REPORTS


 


Phase I Environmental Assessment, Project
Number 95077122A dated August 9, 2007, prepared for Gary C. Mills Hotels, LLC by Terracon.



    	 



    	



    

EXHIBIT F


 


CLAIMS OR LITIGATION PENDING



    	-i-



    	



    

EXHIBIT G


 


ESCROW AGREEMENT


 


THIS ESCROW AGREEMENT (this “Agreement”)
made the 15th day of May, 2013 by and among CHGM DENTON HOTEL PARTNERS, LLC, a Delaware limited liability company (“Seller”),
APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, or its assigns (“Buyer”), and CHICAGO
TITLE COMPANY (“Escrow Agent”).


 


R E C I T A L S


 


WHEREAS, pursuant to the provisions of Section
2.5 of that certain Purchase Contract dated May 15, 2013 (the “Contract”) between Seller and Buyer (the “Parties”),
the Parties have requested Escrow Agent to hold in escrow in accordance with the provisions, upon the terms, and subject to the
conditions, of this Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and


 


WHEREAS, the Deposit shall be delivered
to Escrow Agent in accordance with the terms of the Contract and this Agreement.


 


NOW, THEREFORE, in consideration of the
mutual covenants and agreements herein contained, the Parties hereto agree as follows:


 


1. Seller
and Buyer hereby appoint Escrow Agent to serve as escrow agent hereunder, and the Escrow Agent agrees to act as escrow agent hereunder
in accordance with the provisions, upon the terms and subject to the conditions of this Agreement. The Escrow Agent hereby acknowledges
receipt of the Deposit. Escrow Agent shall invest the Deposit as directed by Buyer.


 


2. Subject
to the rights and obligations to transfer, deliver or otherwise dispose of the Deposit, Escrow Agent shall keep the Deposit in
Escrow Agent’s possession pursuant to this Agreement.


 


3.           A. Buyer
shall be entitled to an immediate return of the Deposit at any time prior to the expiration of the Review Period (as defined in
Section 3.1 of the Contract) by providing written notice to Escrow Agent stating that Buyer has elected to terminate the Contract
pursuant to Section 3.1.


 


B.
If at any time after the expiration of the Review Period, Buyer claims entitlement to all or any portion of the Deposit,
Buyer shall give written notice to Escrow Agent stating that Seller has defaulted in the performance of its obligations under
the Contract beyond the applicable grace period, if any, or that Buyer is otherwise entitled to the return of the Deposit or applicable
portion thereof and shall direct Escrow Agent to return the Deposit or applicable portion thereof to Buyer (the “Buyer’s
Notice”). Escrow Agent shall promptly deliver a copy of Buyer’s Notice to Seller. Seller shall have three
(3) business days after receipt



    	-ii-



    	



    

of the copy of Buyer’s Notice to deliver
written notice to Escrow Agent and Buyer objecting to the release of the Deposit or applicable portion thereof to Buyer (“Seller’s
Objection Notice”). If Escrow Agent does not receive a timely Seller’s Objection Notice, Escrow Agent shall
release the Deposit or applicable portion thereof to Buyer. If Escrow Agent does receive a timely Seller’s Objection Notice,
Escrow Agent shall release the Deposit or applicable portion thereof only upon receipt of, and in accordance with, written instructions
signed by Seller and Buyer, or the final order of a court of competent jurisdiction.


 


C. If,
at any time after the expiration of the Review Period, Seller claims entitlement to the Deposit or applicable portion thereof,
Seller shall give written notice to Escrow Agent stating that Buyer has defaulted in the performance of its obligations under the
Contract, and shall direct Escrow Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s
Notice”). Escrow Agent shall promptly deliver a copy of Seller’s Notice to Buyer. Buyer shall have three (3)
business days after receipt of the copy of Seller’s Notice to deliver written notice to Escrow Agent and Seller objecting
to the release of the Deposit or applicable portion thereof to Seller (“Buyer’s Objection Notice”).
If Escrow Agent does not receive a timely Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable
portion thereof to Seller. If Escrow Agent does receive a timely Seller’s Objection Notice, Escrow Agent shall release the
Deposit or applicable portion thereof only upon receipt of, and in accordance with, written instructions signed by Buyer and Seller,
or the final order of a court of competent jurisdiction.


 


4. In
the performance of its duties hereunder, Escrow Agent shall be entitled to rely upon any document, instrument or signature purporting
to be genuine and purporting to be signed by and of the Parties or their successors unless Escrow Agent has actual knowledge to
the contrary. Escrow Agent may assume that any person purporting to give any notice or instructions in accordance with the provisions
hereof has been duly authorized to do so.


 


5.           A. Escrow
Agent shall not be liable for any error of judgment, or any action taken or omitted to be taken hereunder, except in the case of
Escrow Agent’s willful, bad faith misconduct or negligence, nor shall Escrow Agent be liable for the conduct or misconduct
of any employee, agent or attorney thereof. Escrow Agent shall be entitled to consult with counsel of its choosing and shall not
be liable for any action suffered or omitted in accordance with the advice of such counsel.


 


B. In
addition to the indemnities provided below, Escrow Agent shall not be liable for, and each of the Parties jointly and severally
hereby indemnify and agree to save harmless and reimburse Escrow Agent from and against all loss, cost, liability, damage and expense,
including outside counsel fees in connection with its acceptance of, or the performance of its duties and obligations under, this
Agreement, including the costs and expenses of defending against any claim arising hereunder unless the same are caused by the
willful, bad faith misconduct or negligence of Escrow Agent.


 


C. Escrow
Agent shall not be bound or in any way affected by any notice of any modification or cancellation of this Agreement, or of any
fact or circumstance affecting or alleged to affect rights or liabilities hereunder other than as is herein set forth, or affecting
or alleged to affect the rights and liabilities of any other person, unless notice of the



    	-iii-



    	



    

same is delivered to Escrow Agent in writing,
signed by the proper parties to Escrow Agent’s satisfaction and, in the case of modification, unless such modification shall
be approved by Escrow Agent in writing.


 


6.           A. Escrow
Agent and any successor escrow agent, as the case may be, may resign his or its duties and be discharged from all obligations hereunder
at any time upon giving five (5) days’ prior written notice to each of the Parties hereto. The Parties hereto will thereupon
jointly designate a successor escrow agent hereunder within said five (5) day period to whom the Deposit shall be delivered. In
default of such a joint designation of a successor escrow agent, Escrow Agent shall retain the Deposit as custodian thereof until
otherwise directed by the Parties hereto, jointly, or until the Deposit is released in accordance with clause (B) below, in each
case, without liability or responsibility.


 


B. Anything
in this Agreement to the contrary notwithstanding, (i) Escrow Agent, on notice to the Parties hereto, may take such other steps
as the Escrow Agent may elect in order to terminate its duties as Escrow Agent hereunder, including, but not limited to, the deposit
of the Deposit with a court of competent jurisdiction in the Commonwealth of Virginia and the commencement of an action of interpleaders,
and (ii) in the event of litigation between any of the Parties with respect to the Deposit, Escrow Agent may deposit the Deposit
with the court in which said litigation is pending and, in any such event, Escrow Agent shall be relieved and discharged from any
liability or responsibility to the Parties hereto. Escrow Agent shall not be under any obligation to take any legal action in connection
with this Agreement or its enforcement or to appear in, prosecute or defend any action or legal proceeding which, in the opinion
of Escrow Agent, would or might involve Escrow Agent in any cost, expense, loss, damage or liability, unless and as often as requested,
Escrow Agent shall be furnished with security and indemnity satisfactory to Escrow Agent against all such costs, expenses (including
attorney’s fees), losses, damages and liabilities.


 


7. All
notices required herein shall be deemed to have been validly given, as applicable: (i) if given by telecopy, when the telecopy
is transmitted to the party’s telecopy number specified below and confirmation of complete receipt is received by the transmitting
party during normal business hours or on the next business day if not confirmed during normal business hours, (ii) if hand delivered
to a party against receipted copy, when the copy of the notice is receipted or rejected, (iii) if given by certified mail, return
receipt requested, postage prepaid, two (2) business days after it is posted with the U.S. Postal Service at the address of the
party specified below or (iv) on the next delivery day after such notices are sent by recognized and reputable commercial overnight
delivery service marked for next day delivery, return receipt requested or similarly acknowledged:



    	-iv-



    	



    




	 	(i)	If addressed to Seller, to:
	 	 	 
	 	 	CHGM Denton Hotel Partners, LLC
	 	 	c/o Chartwell Hospitality, LLC
	 	 	2000 Meridian Blvd., Suite 200
	 	 	Franklin, TN 37067
	 	 	Attn: Robert G. Schaedle, III
	 	 	Email: rschaedle@chartwellhospitality.com
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Kim A. Brown, Esq.
	 	 	Sherrard & Roe, PLC
	 	 	150 Third Avenue South, Suite 1100
	 	 	Nashville TN 37201
	 	 	Email: KBrown@sherrardroe.com
	 	 	 
	 	(ii)	If addressed to Buyer, to:
	 	 	 
	 	 	Apple Ten Hospitality Ownership, Inc.
	 	 	814 E. Main Street
	 	 	Richmond, Virginia 23219
	 	 	Attn: Sam Reynolds
	 	 	Fax No.: (804) 344-8129
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Apple REIT Ten, Inc.
	 	 	814 E. Main Street
	 	 	Richmond, Virginia 23219
	 	 	Attn: Legal Dept.
	 	 	Fax No.: (804) 727-6349
	 	 	 
	 	(iii)	If addressed to Escrow Agent, to:
	 	 	 
	 	 	Chicago Title Company
	 	 	5501 LBJ Freeway, Suite 200
	 	 	Dallas, Texas 75240
	 	 	Attn: Debby Moore
	 	 	Fax No.: (214) 570-0210




 


or such other address or addresses as may be expressly designated
by any party by notice given in accordance with the foregoing provisions and actually received by the party to whom addressed.



    	-v-



    	



    

8. This
Agreement may be executed in any number of counterparts each of which shall be deemed an original and all of which, together, shall
constitute one and the same Agreement.


 


9. The
covenants, conditions and agreements contained in this Agreement shall bind and inure to the benefit of each of the Parties hereto
and their respective successors and assigns.



    	-vi-



    	



    

IN WITNESS WHEREOF the Parties have executed
this Agreement as of the day and year first above written.


 


	 	SELLER:	 
	 	 	 	 
	 	CHGM DENTON HOTEL PARNTERS, LLC
	 	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 
	 	 	 	 
	 	BUYER:	 
	 	 	 	 
	 	APPLE TEN HOSPITALITY OWNERSHIP, INC.
	 	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 
	 	 	 	 
	 	ESCROW AGENT:	 
	 	 	 	 
	 	CHICAGO TITLE COMPANY	 
	 	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title:  	 




    	-vii-



    	



    

EXHIBIT H


 


NEW MANAGEMENT AGREEMENT


 


To be negotiated during Review Period.



    	-viii-



    	



    

SCHEDULE 3.1


 


DUE DILIGENCE LIST


 


Due Diligence


Documents Required


[electronic versions preferred]


 


Property Name:


Date Opened:


 


	 	 	 	Date

 Sent	 	Comments
	1	Y-T-D Detailed Operating Statements	 	 	 	 
	2	Prior 5 Years Detailed P&L’s by month	 	 	 	 
	3	2011 Detailed Budget (Operating)	 	 	 	 
	4	2011 Budget (Capital Expenditures)	 	 	 	 
	5	STAR Report (previous 5 years)	 	 	 	 
	6	2011 Marketing Plan	 	 	 	 
	7	Monthly Occupancy & Average Daily/Week/Package Rates (previous 3 years)	 	 	 	 
	8	Schedule of Advance Deposits of Advance Reservations and Bookings (Top 20 Accounts)	 	 	 	 
	9	Real Estate Tax Bills (last 2 years)	 	 	 	 
	10	Personal Property Tax Bills (last 2 years)	 	 	 	 
	11	Notices of Current Tax Assessments or Increases	 	 	 	 
	12	Schedule of Insurance Coverage and Claims	 	 	 	 
	13	Personal Property List (e.g., FF&E, office equipment)	 	 	 	 
	14	Inventory of Supplies (e.g., chinaware, glassware, paper goods, office supplies, unopened food and beverage inventory)	 	 	 	 
	15	Copies of Service Contracts and Equipment Leases	 	 	 	 
	16	Copies of Space Leases (e.g., gift shop, health club/spa)	 	 	 	 




    	-ix-



    	



    

	 	 	 	Date

 Sent	 	Comments
	17	Vehicle Title/Leases 	 	 	 	 
	18	Copies and Schedules of all Warranties and Guaranties	 	 	 	 
	19	Existing Management Agreement	 	 	 	 
	20	Existing Franchise/License Agreement	 	 	 	 
	21	Loan Documents (Promissory Note, Mortgage, etc.)	 	 	 	 
	22	Most current Franchise Property Improvement Plan or QA Assessment	 	 	 	 
	23	Copies of all Licenses, Permits, and Approvals, including Liquor License 	 	 	 	 
	24	Certificate of Occupancy	 	 	 	 
	25	Most Recent Property Payroll	 	 	 	 
	26	Copy of Employment Contracts, if any	 	 	 	 
	27	Construction docs and Plans & Specs (electronically if available)	 	 	 	 
	28	Appraisal	 	 	 	 
	29	Structural Engineering Audit	 	 	 	 
	30	Environmental Site Assessment (Phase I)	 	 	 	 
	31	Property Condition Report	 	 	 	 
	32	Schedule of Utility Providers and Utility Deposits	 	 	 	 
	33	Copies of Utility Bills (previous 3 months)	 	 	 	 
	34	Zoning, compliance, and violation docs	 	 	 	 
	35	Title Insurance Commitment, Title Search or Title Certificate	 	 	 	 
	36	Copies of Title Exceptions	 	 	 	 
	37	ALTA Survey	 	 	 	 
	38	Service Contract Summary Completed	 	 	 	 
	39	Property Data Sheet Completed	 	 	 	 
	40	Other	 	 	 	 




    	-x-



    	



    

Due Diligence
 Service Contract Summary


 


	
        Brand:


Location:


# Rooms:



	 	Service Contract	Term	Annual

 Amount 	Cancellation	Company	Assignment
	EXAMPLE
    

     Kone Elevator Service	Quarterly Inspection & Service	5yrs; beg 2/12/04	$4,942 	90-day notice prior to expiration	Hotel Properties, LLC	w/ written consent
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	LEASE 

CONTRACTS	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name	Equipment	Term	Annual

 Amount	Cancellation	Company	Assignment
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 




    	-xi-



    	



    

Due Diligence


Property Data Survey


[To Be Completed Electronically]


 






    	-xii-



    	



    





    	-xiii-



    	



    

SCHEDULE 16.14


 


ROFR HOTELS


 


	 	•	Hilton Garden Inn – Nashville/Convention Center

419 3rd Avenue South, Nashville TN 37201
	 	 	 
	 	•	Hilton Garden Inn – Brentwood TN

Synergy Office Park, Brentwood TN 37027
	 	 	 
	 	•	Courtyard by Marriott – Westbury, NY

Merrick Avenue, Westbury NY 11590




    	 



    	



    

SCHEDULE 17


 


OTHER CONTRACTS


 


		1.	Purchase Contract dated May 15, 2013 between Buyer and CHMK Cool Springs Hotel Partners, LLC, a Delaware limited liability
company and CHMK Franklin Hotel Partners, LLC, for the purchase of the Residence Inn Franklin Cool Springs, located at 2009 Meridian
Boulevard, Franklin, Tennessee 37067 and the Courtyard Franklin Cool Springs, located at 2001 Meridian Boulevard, Franklin, Tennessee
37067.



 


		2.	Purchase Contract dated May 15, 2013 between Buyer and CHSP Hotel Investors, LLC, a Delaware limited liability company, for
the purchase of the Hampton Inn & Suites Colorado Springs/I-25 South, located at 2910 Geyser Dr., Colorado Springs, Colorado,
80906.



 


		3.	Purchase Contract dated May 15, 2013 between Buyer and CHMK Oklahoma Hotel Partners, LLC, a Delaware limited liability company,
for the purchase of the Homewood Suites Oklahoma City West, located at 6920 West Reno Avenue, Oklahoma City, OK 73127.
	 	 	 
	 	4.