Document:

EX-10.45

 Exhibit 10.45 

EXCHANGE AGREEMENT 
 among 

MHI Hotels, L.L.C. 

“Seller” 
 and 

Sotherly Hotels L.P. 

“Purchaser” 
 Date:
November 13, 2013 

 EXCHANGE AGREEMENT 

THIS EXCHANGE AGREEMENT (this “Agreement”), dated as of November 13, 2013 (the “Effective Date”), by
and between MHI Hotels, L.L.C., a Virginia limited liability company (“Seller”), and Sotherly Hotels, L.P., a Delaware limited partnership (“Purchaser”). 

ARTICLE 1 
 DEFINITIONS
AND CONSTRUCTION 
 1.1 Definitions. For purposes of this Agreement, the following terms shall have the meanings indicated: 

1.1.1 “Accounts Receivable” means all amounts which Owner is entitled to receive from the Business
which have accrued as of the Cut-off Time, including, without limitation, charges for use or occupancy of any guest, conference, meeting, or banquet rooms or other facilities at the Hotel, rents or other amounts received from any restaurant, bar, or
banquet services, or any other goods or services provided by or on behalf of Owner at the Hotel. 
 1.1.2
“Actual Knowledge” means (i) with respect to Seller, the actual knowledge of Kim E. Sims, without any duty of inquiry or investigation, and expressly excluding the knowledge of any other shareholder, partner, member, trustee,
beneficiary, director, officer, manager, employee, attorney, agent, or representative of Seller or any of its Affiliates; and (ii) with respect to Purchaser: (A) the actual knowledge of Andrew M. Sims, expressly excluding the knowledge of
any other shareholder, partner, member, trustee, beneficiary, director, officer, manager, employee, attorney, agent, or representative of Purchaser or any of its Affiliates; (B) any matter disclosed in any exhibits or schedules to this
Agreement; (C) any matter disclosed in the Disclosure Documents; and (D) any matter disclosed in writing by any third party inspection or report regarding the Property prepared by or on behalf of Purchaser. For the purposes of this
definition, the term “actual knowledge” means, with respect to any natural person, the conscious awareness of such person at the time in question, and expressly excludes any constructive or implied knowledge of such person. 

1.1.3 “Adverse Proceeding” has the meaning set forth in Section 7.1.3. 

1.1.4 “Affiliate” means, with respect to the Person in question, any other Person that, directly or
indirectly: (i) owns or controls fifty percent (50%) or more of the outstanding voting and/or equity interests of such Person; or (ii) controls, is controlled by, or is under common control with the Person in question. For the
purposes of this definition, the term “control” and its derivations means having the power, directly or indirectly, to direct the management, policies, or general conduct of business of the Person in question, whether by ownership of
voting securities, contract, or otherwise. Neither Seller nor Manager nor any affiliate of Manager shall be deemed an Affiliate of Purchaser and Purchaser shall not be deemed an Affiliate of Seller, Manager or any Affiliate of Manager. 

1.1.5 “Agreement” has the meaning set forth in the introductory paragraph hereof. 

  
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 1.1.6 “Applicable Law” means (i) all statutes, laws,
common law, administrative decisions, rules, regulations, ordinances, codes, or other legal requirements of any Governmental Authority, stock exchange, board of fire underwriters, or similar quasi-governmental authority, and (ii) any judgment,
injunction, order, or other similar requirement of any court or other adjudicatory authority, in effect at the time in question and in each case to the extent that the Person or property in question is subject to same. 

1.1.7 “Bookings” means all bookings and reservations for guest, conference, and banquet rooms or other
facilities at the Hotel as of the Closing Date for dates on or after the Closing Date, together with all deposits held by Owner or Manager with respect thereto. 

1.1.8 “Boston Resources” means Boston Resources Limited, a British Virgin Islands company. 

1.1.9 “Business” means the lodging business and all activities related thereto conducted at the Hotel
and otherwise in connection with the Property, including: (i) the rental of any guest, conference, meeting, or banquet rooms or other facilities at the Hotel; (ii) the operation of any restaurant, bar, or banquet services, together with
all other goods and services provided at the Hotel and the Real Property, (iii) the rental of any commercial or retail space at the Real Property, (iv) the maintenance and repair of the Real Property and tangible Personal Property,
(v) the employment of the Employees and all matters related thereto, and (vi) the payment of Taxes and Real Property taxes relating to the foregoing. 

1.1.10 “Business Day” means any day other than a Saturday, Sunday, or federal or other legal holiday in
the State of Texas. 
 1.1.11 “Closing” has the meaning set forth in Section 8.1. 

1.1.12 “Closing Date” means the date upon which the Closing occurs. 

1.1.13 “Closing Escrow” has the meaning set forth in Section 8.1. 

1.1.14 “Closing Escrow Agreement” has the meaning set forth in Section 8.1. 

1.1.15 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any
regulations, rulings and guidance issued by the Internal Revenue Service. 
 1.1.16 “Confidential
Information” has the meaning set forth in Section 6.3. 
 1.1.17 “Contracts” means,
collectively, the Equipment Leases, the Operating Agreements, the Tenant Leases, the Management Agreement, the Franchise Agreement, and each other contract or agreement to which Owner is a party. 

1.1.18 “Cut-off Time” means 11:59 P.M. Houston, Texas time on the day preceding the Closing Date. 

  
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 1.1.19 “Disclosure Documents” means any title commitments
obtained by Purchaser, any existing surveys delivered to Purchaser, and any other documents or items delivered to Purchaser in connection with its acquisition of the Target Interest. 

1.1.20 “Dollars” or “$” means lawful currency of the United States of America.
All sums paid or payable by either party to the other pursuant to this Agreement shall be paid in Dollars. 
 1.1.21
“Effective Date” has the meaning set forth in the introductory paragraph hereof. 
 1.1.22
“Employees” means all Persons employed, in a full-time or part-time capacity at the Hotel at the time in question, by: (i) Owner, (ii) Seller or Boston Resources (iii) Houston Hotel Associates, (iv) Houston Hotel
Manager or (v) Manager, as the case may be. As used herein, the term “Employees” includes, without limitation, employees on workers’ compensation, military leave, special military leave, maternity leave, leave under the Family
and Medical Leave Act of 1993, union leave, sick leave, short-term or long-term disability, or layoff with recall rights, and employees on other approved leaves of absence with a legal or contractual right to reinstatement or any individual that was
previously employed by Owner, Seller, Boston Resources, Houston Hotel Associates, Houston Hotel Manager or Manager, as the case may be, protesting the fact that they are not currently employed. 

1.1.23 “Equipment Leases” means all leases and purchase money security agreements for any equipment,
machinery, vehicles, furniture or other personal property located at the Hotel, or otherwise used in connection with the Business, which are held by, for or on behalf of Owner. 

1.1.24 “Escrow Agent” means First American Title Company or a similar national title insurance company
reasonably acceptable to Seller and Purchaser. 
 1.1.25 “F&B” means all food and beverages (both
alcoholic and non-alcoholic), which are located at the Hotel (or held off site in storage) for use at the Hotel as of the Closing, including all food and beverages located in the guest rooms. 

1.1.26 “FF&E” means, subject to the Tenant Leases, all fixtures (other than those which constitute
Improvements), furniture, furnishings, equipment, machinery, tools, vehicles, appliances, art work, and other items of tangible personal property which are located at the Hotel and used in the Business or ordered for use at the Hotel as of the
Closing, other than the Supplies, the IT Systems, the F&B, the Retail Merchandise, the books and records for the Business, and the plans and specifications of the Improvements. 

1.1.27 “Franchise Agreement” means that certain Crowne Plaza Conversion License Agreement dated
April 22, 1999 between Owner (as successor-in-interest to Houston Hotel Associates) and Franchisor, as amended. 

1.1.28 “Franchisor” means Holiday Hospitality Franchising, Inc., a Delaware corporation. 

  
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 1.1.29 “General Partnership Interest” means the
ninety-nine percent (99%) general partnership interest in Houston Hotel Associates, which is held by Boston Resources as of the Closing Date. 

1.1.30 “Governmental Authority” means the applicable country, state, county, city and any political
subdivision, agency, authority, department, court, commission, board, bureau or instrumentality of any of the foregoing having jurisdiction over the Property, Seller, and/or any of the Owner Parties, as the case may be. 

1.1.31 “GP Purchaser” means Sotherly-Houston GP LLC, a Delaware limited liability company. 

1.1.32 “Guest Ledgers” means all charges accrued to the open accounts of any guests or customers at the
Hotel including, without limitation, the “city ledger” as of the Cut-off Time for the use or occupancy of any guest, conference, or banquet rooms or other facilities at the Hotel, any restaurant, bar or banquet services, or any other goods
or services provided by or on behalf of Owner at the Hotel. 
 1.1.33 “Hotel” means the Crowne Plaza
Houston Downtown, operated on the Real Property. 
 1.1.34 “Houston Hotel Associates” means Houston
Hotel Associates Limited Partnership, L.L.P., a Virginia limited liability partnership. 
 1.1.35 “Houston
Hotel Manager” means Houston Hotel Manager, LLC, a Delaware limited liability company. 
 1.1.36
“Improvements” means all of the buildings, improvements, structures and fixtures, including without limitation, the foundations and footings thereof, located on or affixed to the Land which constitute real property under Applicable
Law. 
 1.1.37 “Indemnification Tax Exception(s)” means an Indemnification Loss to the extent
relating the indemnification in Section 9.1(iii), or the breach of any covenant or obligation under Sections 6.1 or 6.2. 

1.1.38 “Indemnification Claim” has the meaning set forth in Section 9.4.1. 

1.1.39 “Indemnification Loss” means, with respect to any Indemnitee, any actual (and not contingent)
liability, damage, loss, cost or expense, including reasonable attorneys’ fees, expenses and court costs, and Taxes incurred by such Indemnitee as a result of the act, omission, or occurrence in question. 

1.1.40 “Indemnitee” has the meaning set forth in Section 9.4.1. 

1.1.41 “Indemnitor” has the meaning set forth in Section 9.4.1. 

1.1.42 “Intangibles” means any and all intangible personal property owned by Owner or any Affiliate of
Owner and used in the operation of the Hotel or any of the Property, including, without limitation, any drawings, plans and specifications covering the Hotel, any non-Franchisor trade names, service marks and logos used in the operation

  
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of the Hotel, and any non-Franchisor intellectual property used in the operation of the Hotel, customer lists and software, any telephone numbers used in the operation of the Hotel and (to the
extent same are in existence), any guaranties and warranties from the manufacturers of any equipment, appliances or other items used in the operation of the Hotel and from any contractors, suppliers, architects, engineers, and materialmen with
respect to any plans, designs, work or installations done for or at the Hotel, and any and all claims, choses in action, judgments, remedies, damages and causes of action, and all of Owner’s right, title and interest in and to the books and
records of the Hotel to the extent Owner is entitled thereto pursuant to the Management Agreement. In no event shall Intangibles include any intangible personal property owned by Manager or Franchisor, or any of the tenants or licensees under the
Tenant Leases or any of their respective Affiliates. 
 1.1.43 “IT Systems” means all computer
hardware, telecommunications, and information technology systems located at the Hotel and all computer software used at the Hotel, to the extent same are assignable and transferable, but subject to the terms of any license agreement and/or
Manager’s, Manager’s Affiliates’, Franchisor’s, and Franchisor’s Affiliates’ rights in and to same. 

1.1.44 “Land” means the land underlying the Real Property, together with all appurtenant easements,
rights, and interests thereto. 
 1.1.45 “Lists” shall meant the Specially Designated Nationals and
Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (September 25, 2001) and/or on any other list of terrorists or terrorist organizations
maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable orders. 
 1.1.46
“Management Agreement” means that certain Management Agreement dated as of June 1, 1999 between Owner and Manager, as amended. 

1.1.47 “Manager” means MHI Hotels Services, LLC, a Virginia limited liability company (as
successor-in-interest to MHI Hotels, LLC), its successors and assigns. 
 1.1.48 “MHI Franchise Tax
Amount” shall mean Six Thousand Seven Hundred Forty Eight and 00/100 United States Dollars ($6,748.00). 

1.1.49 “MHI Hotels Transfer” has the meaning set forth in Section 3.1 hereof. 

1.1.50 “OFAC” means Office of Foreign Assets Control, Department of the Treasury. 

1.1.51 “Operating Agreements” means all repair, utility, maintenance, service and supply contracts,
booking and reservation agreements, credit card service agreements, consulting agreements, and all other similar agreements for goods or services, which are held by, for or on behalf of Owner in connection with the Business except for Tenant Leases,
Equipment Leases, the Management Agreement, the Franchise Agreement, Permits, and any so-called “master” agreements entered into directly by Franchisor or Manager on behalf of the Hotel and other Franchisor or Manager hotels, as
applicable. 

  
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 1.1.52 “Order” means Executive Order No. 13224, 66
Fed. Reg. 49079 (September 25, 2001). 
 1.1.53 “Organizational Documents” means, with respect to any
Person who is not a natural Person, the certificate or articles of incorporation, memorandum of association, articles of association, trust agreement, by-laws, partnership agreement, limited partnership agreement, certificate of partnership or
limited partnership, limited liability company articles of organization, limited liability company operating agreement and any other organizational document, and all shareholder agreements, voting trusts and similar arrangements with respect to its
stock, partnership interests, membership interests or other equity interests. 
 1.1.54 “Owner” means
Houston Hotel Owner, LLC, a Delaware limited liability company. 
 1.1.55 “Owner Parties” means
Owner, Houston Hotel Associates and Houston Hotel Manager. 
 1.1.56 “Partnership Agreement” means that
certain Amended and Restated Agreement of Limited Partnership of Houston Hotel Associates Limited Partnership, L.L.P. dated as of April 16, 1999, as amended. 

1.1.57 “Permits” means all governmental licenses, permits, approvals and certificates which are
required or used in connection with the operation of the Property and/or the Business. 
 1.1.58
“Person” means an individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, or government or any agency or subdivision thereof, or any other
legal entity or organization. 
 1.1.59 “Personal Property” means all FF&E, F&B, Supplies,
Retail Merchandise, Contracts, Permits, Accounts Receivable, Bookings, Equipment Leases, Guest Ledgers, Intangibles, and IT Systems, together with all other articles of personal property of every kind and nature whatsoever owned by Owner or its
Affiliates and located in or at, or used in connection with the ownership, operation or maintenance of, all or any part of the Hotel, the Business or the Real Property, but specifically excluding, without limitation, any personal property owned by
the tenants or licensees under the Tenant Leases, or otherwise specifically excluded hereunder. 
 1.1.60
“Pre-Closing Taxes” means all Taxes of the Owner Parties for taxable periods ending on or before the Closing Date and the portion up to and including the Closing Date for any taxable period that includes (but does not end on) the
Closing Date. In the case of any taxable period that includes (but does not end on) the Closing Date, the amount of Pre-Closing Taxes with respect to such period shall (i) in the case of Taxes that are imposed on a periodic basis, be deemed to
be the amount of such Taxes for the entire period multiplied by a fraction the numerator of which is the number of calendar days in the portion of the period ending on (and including) the Closing Date and the denominator of which is the number of
calendar days in the taxable period and (ii) in the case of Taxes that are not described in clause (i) above (such as income taxes and payroll and similar taxes), be deemed to be equal to the amount that would have been payable if the
taxable year or period of the Owner Parties ended on the Closing Date. 

  
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 1.1.61 “Property” means, collectively, the Real Property
and the Personal Property. 
 1.1.62 “Purchaser” has the meaning set forth in the introductory
paragraph hereof. 
 1.1.63 “Purchaser Closing Condition” has the meaning set forth in
Section 7.1. 
 1.1.64 “Purchaser Closing Deliveries” has the meaning set forth in
Section 8.3. 
 1.1.65 “Purchaser Indemnitees” means Purchaser and its Affiliates, and each of
their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, permitted assigns, legal representatives, heirs, devisees and Affiliates of each of the foregoing, provided that
Purchaser Indemnitees shall not include Seller or Manager. 
 1.1.66 “Real Property” means the real
property commonly known as 1700 Smith St., Houston, TX 77002, together with all appurtenant easements, rights and interests thereto. 

1.1.67 “Retail Merchandise” means all merchandise owned by Owner or any of its Affiliates and held for
sale to guests and customers, or ordered for sale at the Hotel as of the Closing, including, without limitation, inventory held for sale in any gift shop, spa, or newsstand operated by Owner or Manager at the Hotel, but expressly excluding the
F&B, Supplies and any merchandise owned by the tenants and licensees under the Tenant Leases. 
 1.1.68
“Securities Act” means the Securities Act of 1933, as amended. 
 1.1.69 “Seller”
has the meaning given such term in the preamble. 
 1.1.70 “Seller Closing Conditions” has the meaning set
forth in Section 7.2. 
 1.1.71 “Seller Closing Deliveries” has the meaning set forth in
Section 8.2. 
 1.1.72 “Seller Indemnitee(s)” means Seller and the Owner Parties and their
respective Affiliates, and each of their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, permitted assigns, legal representatives, heirs, devisees, and Affiliates of each of
the foregoing, provided that in the event that the Closing contemplated hereunder takes place, Seller Indemnitees, from and after the Closing Date, shall not include the Owner Parties. 

1.1.73 “Supplies” means all merchandise, goods, materials and supplies used or intended for use at the
Hotel, or held for sale in connection with the Business, 

  
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including, without limitation, (a) stocks of operating supplies (including, without limitation, glasses, china, silver, linens, and uniforms), (b) engineering, maintenance and cleaning
supplies, (c) guest supplies (including stationery, matches and ashtrays, soap and other toiletries, menus, and directories and other printed materials), and (d) housekeeping supplies. 

1.1.74 “Survival Period” means with respect to (i) Indemnification Tax Exceptions, forever,
and (ii) all other purposes hereunder, twelve (12) months following the Closing Date. 
 1.1.75
“Target Interest” means the one percent (1%) limited partnership interest in Houston Hotel Associates, which is held by Seller as of the Closing Date. 

1.1.76 “Taxes” means all federal, state or local taxes in any country, including income,
unincorporated business, gross receipts, windfall profits, value added, use, duty, sales, license, excise, transfer, mortgage recording, real property, personal property, commercial rent or occupancy taxes, hotel occupancy taxes, utility taxes,
franchise, employment, payroll, withholding or similar taxes, whether or not contested, and including any estimated taxes of the foregoing, amounts payable under unclaimed property laws, and together with any interest, additions or penalties with
respect thereto and any interest in respect of such additions or penalties. 
 1.1.77 “Tenant
Leases” means Owner’s interest in all leases, subleases, licenses, concessions, and similar agreements granting to any Person the right to use or occupy any portion of the Real Property, other than the Management Agreement and the
Bookings, together with all security deposits held by Owner, Manager, or any of their respective Affiliates. 
 1.1.78
“Title Insurer” means First American Title Company or any other nationally recognized reputable title insurance company authorized to do business in Texas designated by Seller. 

1.1.79 “Title Policies” means the title policies to be issued by the Title Insurer on the
Closing Date to Purchaser and/or Purchaser’s new mortgage lender. 
 1.1.80 “Unit Transfer
Agreement” has the meaning set forth in Section 3.1. 
 1.2 Construction. The following rules shall apply to the
construction and interpretation of this Agreement. 
 1.2.1 Singular words shall connote the plural as well as the
singular, and plural words shall connote the singular as well as the plural, and the masculine shall include the feminine and the neuter, as the context may require. 

1.2.2 All references in this Agreement to particular articles, sections, subsections, or clauses (whether in upper or
lower case) are references to articles, sections, subsections, or clauses of this Agreement, unless otherwise expressly stated or clearly apparent from the context of such reference. All references in this Agreement to particular exhibits or
schedules (whether in upper or lower case) are references to the exhibits and schedules attached to this Agreement, unless otherwise expressly stated or clearly apparent from the context of such reference. 

  
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 1.2.3 The headings in this Agreement are solely for convenience of
reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction or effect. 

1.2.4 Any reference to any agreement (including this Agreement), document, instrument, tax or tariff means such
agreement, document, instrument, tax or tariff as amended or modified in effect from time to time in accordance with the terms thereof, and if applicable the terms hereof. 

1.2.5 The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder”
and any similar terms shall refer to this Agreement, and not solely to the provision in which such term is used. 

1.2.6 The terms “include,” “including” and similar terms shall be construed as if followed by the
phrase “without limitation.” 
 1.2.7 The term “sole discretion” with respect to any determination
to be made a party under this Agreement means the sole and absolute discretion of such party, without regard to any standard of reasonableness or other standard by which the determination of such party might be challenged. 

1.2.8 Seller, Purchaser and their respective counsel have reviewed and revised (or requested revisions of) this
Agreement and have participated in the preparation of this Agreement, and therefore any rules of construction requiring that ambiguities are to be resolved against the party which drafted the Agreement or any exhibits hereto shall not be applicable
in the construction and interpretation of this Agreement or any Exhibits or Schedules hereto. 
 ARTICLE 2 

TRANSFER OF GENERAL PARTNERSHIP INTEREST AND TARGET INTEREST, ETC. 

2.1 General Partnership Interest. Boston Resources has agreed to sell, and transfer to GP Purchaser all right, title and interest of
Boston Resources in and to the General Partnership Interest. The sale and closing of the General Partnership Interest is to occur at the same time as the sale of the Target Interest, if either sale fails to close then neither sale will be required
to close. 
 2.2 Target Interest. Upon and subject to the terms and conditions of this Agreement, Seller shall sell, and agrees to
transfer and assign to Purchaser, and Purchaser shall purchase and agrees to accept from Seller all right, title and interest of Seller in and to the Target Interest. 

2.3 Waiver of ROFR Rights. Seller hereby waives any rights of first offer, rights of first refusal, rights of transfer, purchase
options or similar rights or options with respect to any interest in Houston Hotel Associates or any other Owner Party, or the Hotel, which may be contained in the Partnership Agreement (including Section 12.11 of the Partnership Agreement) or
elsewhere. 
 2.4 MHI Franchise Tax Amount. Seller shall pay the MHI Franchise Tax Amount to the State of Texas within ten
(10) days of Closing. 

  
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 2.5 Loans from Seller. Any outstanding loans to Seller or its Affiliates which
relate to the Hotel or were made to the Owner Parties shall be deemed paid in full upon Closing and effectiveness of the MHI Hotels Transfer. 

ARTICLE 3 
 TRANSFER OF
UNITS IN SOTHERLY HOTELS L.P. 
 3.1 Transfer of Units in Sotherly. At Closing, in consideration for its receipt of the Target
Interest from Seller, Purchaser shall transfer to Seller 32,929 units of limited partnership interests in Sotherly Hotels LP (the “MHI Hotels Transfer”), such units being equivalent to One Hundred Fifty Three Thousand Six Hundred
and Thirty Six and 36/100 U.S. Dollars (U.S.$153,636.36), determined using the average of the closing bid price for the common stock of Sotherly Hotels Inc. for the twenty trading days immediately prior to that day which is five (5) Business
Days prior to the Closing Date. Transfer of the units shall be made pursuant to a Unit Transfer Agreement in substantially the form attached hereto as Exhibit A (the “Unit Transfer Agreement”).  

3.2 Intentionally Omitted. 

ARTICLE 4 
 CONDITION OF
PROPERTY 
 4.1 SALE “AS IS”. PURCHASER ACKNOWLEDGES AND AGREES THAT EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
THE TRANSFER OF THE PROPERTY AND THE RELATED TRANSFER OF THE BUSINESS PURSUANT TO THE TRANSFER OF THE TARGET INTEREST SHALL BE ON AN “AS IS”, “WHERE IS”, “WITH ALL FAULTS” BASIS. PURCHASER ACKNOWLEDGES THAT THE
CONSIDERATION GIVEN PURSUANT HERETO REFLECTS THE “AS IS” NATURE OF THE PROPERTY AND ANY FAULTS, LIABILITIES, DEFECTS OR OTHER ADVERSE MATTERS THAT MAY BE ASSOCIATED WITH THE PROPERTY. PURCHASER HAS FULLY REVIEWED THE DISCLAIMERS AND
WAIVERS SET FORTH IN THIS AGREEMENT WITH ITS COUNSEL AND UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. PURCHASER ACKNOWLEDGES AND AGREES THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS ARTICLE 4 ARE AN INTEGRAL PART OF THIS AGREEMENT
AND THAT SELLER, WOULD NOT HAVE AGREED TO SELL THE PROPERTY (PURSUANT TO THE TRANSFER OF THE TARGET INTEREST) TO PURCHASER WITHOUT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH IN THIS ARTICLE 4. 

  
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 4.2 RELIANCE ON DUE DILIGENCE. PURCHASER ACKNOWLEDGES AND AGREES THAT: 

4.2.1 UPON COMPLETION OF DUE DILIGENCE, PURCHASER WILL HAVE HAD THE OPPORTUNITY TO CONDUCT ALL DUE DILIGENCE INSPECTIONS
OF THE PROPERTY AND THE BUSINESS AS OF THE CLOSING DATE, INCLUDING REVIEWING ALL DISCLOSURE DOCUMENTS AND OBTAINING ALL INFORMATION WHICH IT DEEMS NECESSARY TO MAKE AN INFORMED DECISION AS TO WHETHER IT SHOULD PROCEED WITH THE PURCHASE OF THE TARGET
INTEREST; 
 4.2.2 PURCHASER WILL BE RELYING ONLY ON ITS DUE DILIGENCE INSPECTIONS OF THE PROPERTY AND THE BUSINESS,
ITS REVIEW OF CERTAIN DISCLOSURE DOCUMENTS, AND THE REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY ANY SELLER IN THIS AGREEMENT IN PURCHASING THE TARGET INTEREST; AND 

4.2.3 PURCHASER WILL NOT BE RELYING ON ANY STATEMENT MADE OR INFORMATION PROVIDED TO PURCHASER BY SELLER (EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY ANY SELLER IN THIS AGREEMENT), ANY OF THE SELLER INDEMNITEES, OR ANY PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING. 

4.3 SURVIVAL. THE TERMS AND CONDITIONS OF THIS ARTICLE 4 SHALL EXPRESSLY SURVIVE THE CLOSING, AND SHALL NOT MERGE WITH THE PROVISIONS
OF ANY CLOSING DOCUMENTS. 
 ARTICLE 5 

REPRESENTATIONS AND WARRANTIES 

5.1 Representations and Warranties of Seller. To induce Purchaser to enter into this Agreement and to consummate the transactions
described in this Agreement, Seller hereby makes the express representations and warranties in this Section 5.1 as of the Effective Date: 

5.1.1 Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the
Commonwealth of Virginia. Seller has all requisite power and authority to conduct its business as currently conducted and to own or lease and to operate its properties, and is duly qualified or admitted to do business and in good standing as a
foreign entity in all jurisdictions in which the ownership, use or leasing of its assets or properties or the conduct or nature of its business makes such qualification or admission necessary. 

5.1.2 Seller has full power and authority to execute, deliver and perform its obligations under this Agreement and to
consummate the transactions required of it contemplated hereby. The execution, delivery and performance of this Agreement by Seller and the consummation by it of the transactions contemplated hereby have been duly and validly authorized in
accordance with its Organizational Documents. No action or proceeding on the part of Seller is necessary to authorize this Agreement or the consummation of the transactions contemplated hereby. 

5.1.3 This Agreement and the Unit Transfer Agreement have been duly and validly executed and delivered by Seller, and
constitute valid, legal and binding obligations, enforceable against Seller, in accordance with their terms, subject to Applicable Law. 

5.1.4 Seller is the record and beneficial owner of one hundred percent (100%) of the Target Interest, free and
clear of all liens, security interests, claims and encumbrances. 

  
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 5.2 Representations and Warranties of Purchaser. To induce Seller to enter into
this Agreement and to consummate the transaction described in this Agreement, Purchaser hereby makes the express representations and warranties in this Section 5.2 as of the Effective Date: 

5.2.1 Purchaser is a limited partnership duly organized, validly existing and in good standing under the laws of
Delaware. Purchaser has all requisite power and authority to conduct its business as currently conducted and to own or lease and to operate its properties. 

5.2.2 Purchaser has the power and authority to execute, deliver and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance by Purchaser of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized in accordance with the
Organizational Documents of Purchaser and no other action or proceeding on the part of Purchaser is necessary to authorize this Agreement or the consummation of the transactions contemplated hereby. This Agreement and the Unit Transfer Agreement
have been duly and validly executed and delivered by Purchaser and constitute legal, valid and binding obligations of Purchaser, enforceable in accordance with their terms. 

5.2.3 The execution, delivery and performance of this Agreement by Purchaser does not, and the consummation of the
transactions contemplated hereby will not (with or without the giving of notice or lapse of time or both): (i) violate or require any consent or approval under, any provision of the Organizational Documents of Purchaser; (ii) violate or
result in a default of, or require any consent or approval under any material agreement, policy, instrument, contract, commitment, license, franchise, permit or trust to which Purchaser or any of its subsidiaries is a party or is otherwise subject;
or (iii) violate or result in a default of in any material respect, or require any consent or approval under, any judgment, settlement, consent, injunction, decree, order or ruling of any court or governmental authority to which Purchaser or
any of its subsidiaries is a party or otherwise subject. 
 5.2.4 No consent, license, approval, order or
authorization of, or registration, filing or declaration with, any governmental authority is required to be obtained or made, and no consent of any third party is required to be obtained, by Purchaser or any of its Affiliates, in connection with its
execution, delivery and performance of this Agreement and the transactions contemplated hereby. 
 5.2.5 Purchaser is
acquiring the Target Interest for its own account for investment and not with a view to any distribution thereof within the meaning of the Securities Act. Purchaser acknowledges that the offer and sale of Target Interest pursuant hereto are intended
to be exempt from the Securities Act pursuant to Section 4(2) thereof, and that the Target Interest may not be resold or otherwise transferred except pursuant to an effective registration statement or an exemption from registration thereunder
and pursuant to registration or qualification (or exemption therefrom) under Applicable Law. 

  
 12 

 5.2.6 There is no action, proceeding, investigation or claim pending or,
to the Actual Knowledge of Purchaser, threatened against or affecting Purchaser or any of its subsidiaries or their respective assets before any court or governmental or regulatory authority or body that would prohibit or otherwise reasonably be
expected to adversely affect Purchaser’s ability to consummate the transactions contemplated hereby. 
 5.2.7
None of the Purchaser’s representations and warranties contained in this Agreement or in any other agreement delivered or to be delivered by or on behalf of Purchaser in accordance with the terms of this Agreement, any Schedule or Exhibit to
this Agreement, or any certificates delivered or to be delivered by Purchaser in accordance with the terms hereof contains or will contain any untrue statement of a material fact, or omits or will omit any statement of a material fact the disclosure
of which is necessary in order for the statements contained herein or therein not to be misleading in any material respect. 

5.2.8 Neither Purchaser nor any beneficial owner of Purchaser: (i) is listed on the Specially Designated Nationals
and Blocked Persons List maintained by OFAC pursuant to the Order and/or the Lists; (ii) is not a Person who has been determined by competent authority to be subject to the prohibitions contained in the Order; or (iii) is not owned or
controlled by, or acts for or on behalf of, any Person on the Lists or any other Person who has been determined by competent authority to be subject to the prohibitions contained in the Order. 

ARTICLE 6 
 COVENANTS
AND ADDITIONAL AGREEMENTS OF THE PARTIES 
 6.1 Seller, with respect to its interest in the Owner Parties, shall obtain
Purchaser’s prior written consent, prior to making or changing any Tax election, changing an annual accounting period, adopting or changing any accounting method, filing any amended Tax return, entering into any closing agreement, settling any
Tax claim or assessment, consenting to any extension or waiver of the limitation period applicable to any Tax claim or assessment, or taking any other similar action relating to the filing of any Tax return or report or the payment of any Tax, if
such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax liability of any of the Owner Parties for any period ending after the Closing Date or decreasing any
Tax attribute of any of the Owner Parties existing on the Closing Date. All obligations in this Section 6.1 shall survive the Closing for the Survival Period. 

6.2 Filing of Tax Returns. Seller shall be responsible for preparing and filing all Tax returns and reports required to be filed
by Seller on or before the Closing Date, and Purchaser shall be responsible for preparing and filing (or causing to be prepared and filed) all Tax returns and reports relating to the Owner Parties following the Closing Date. Purchaser and Seller
shall reasonably cooperate with each other in the preparation and filing of the Tax returns and reports described above, including the furnishing of relevant information and executing such returns and reports. In addition, if requested by Seller,
Purchaser shall reasonably cooperate with Seller in preparing and filing (including the execution of) amended Tax returns and reports for periods ending on and before the Closing Date, provided that Seller shall be responsible for 1% of the
reasonable out-of-pocket costs and expenses incurred by Purchaser in preparing and filing such amended Tax returns to the extent that amended Tax returns and reports for periods ending on and before the Closing Date are required by Applicable Law,
and Seller shall be responsible for 1% of all Taxes, interest and penalties resulting from such amended Tax returns. 

  
 13 

 6.3 Confidentiality. Seller and Purchaser shall keep confidential and not disclose to any
Person any information disclosed by any documents, materials, data or other information with respect to the Seller, Boston Resources, Purchaser, General Partnership Interest, Target Interest, Owner Parties, the Property or the Business which was not
known by such party prior to such disclosure or is not generally known or does not become generally known to the public (other than as a result of a disclosure arising from a breach or default of the confidentiality provisions of this Agreement
(collectively, the “Confidential Information”). Notwithstanding the foregoing, Seller and Purchaser shall be permitted to (i) disclose any Confidential Information to the extent required under Applicable Law, or
(ii) disclose any Confidential Information to any Person on a “need to know” basis, such as their respective shareholders, principals, partners, members, trustees, beneficiaries, directors, officers, employees, attorneys, consultants,
advisors, agents, representatives, engineers, surveyors, lenders, investors, managers, franchisors and such other Persons whose assistance is required to consummate the transactions described in this Agreement; provided, however, that Purchaser
(A) in the case of clause (i) shall advise Seller promptly upon receiving any demand for disclosure of any Confidential Information pursuant to Applicable Law, and Seller shall have the right to obtain a protective order or agree to an
arrangement with the Person demanding such Confidential Information to prevent or limit the extent of such disclosure prior to Purchaser’s disclosure of such Confidential Information (unless Purchaser reasonably determines such information is
required to be disclosed by Purchaser prior to obtaining such protective order or agreement), and (B) in the case of clause (ii) shall advise such Person of the confidential nature of such Confidential Information, and use commercially
reasonable efforts to cause such Person to maintain the confidentiality of such Confidential Information. Notwithstanding any of the foregoing to the contrary, Seller acknowledges that Purchaser is indirectly owned by a registered entity under U.S.
securities laws and will be required to file this Agreement as an exhibit to a report such entity is obligated to file and no prior notice or opportunity to obtain a protective order will be available to Seller pursuant to this Section 6.3 with
respect to such disclosure. 
 6.4 Public Announcements. No party shall have the right to make public announcements regarding the
transactions described in this Agreement or the parties to this Agreement without the consent of the other party(ies), which consent may be given or withheld in such party’s sole discretion. Notwithstanding the foregoing, the parties and their
Affiliates will not require the other party’s prior approval (provided that the parties shall reasonably cooperate with each other in providing such approval, if such approval is not in violation of Applicable Law or any national securities
exchange) (i) to make disclosures required pursuant to any listing agreement with any national securities exchange required by the parties or their Affiliates, (ii) to make any disclosure or filing required by Applicable Law, or
(iii) to make any disclosure required to perform its obligations under this Agreement. 
 6.5 Books and Records. The
transaction contemplated hereby includes the books and records of Owner pertaining to the Hotel, the Business and the Employees to which Owner is entitled pursuant to the Management Agreement. Purchaser agrees to preserve all of the foregoing books
and records, files and correspondence, for at least seven (7) years after the Closing Date, and not to destroy or dispose of the same, for at least seven (7) years after the Closing Date. Purchaser agrees to provide access to Seller, its
Affiliates, and its agents after Closing to review and examine such books, records, files, and correspondence upon reasonable notice for a period of seven (7) years with respect to Tax audits, investigations and/or litigation, and otherwise
such books, records and related items shall be made available to Seller upon its reasonable request, all subject to Applicable Law and the terms of the Management Agreement regarding such books and records. Seller agrees to preserve at Seller’s
business office all records pertaining to the Hotel and the Business which were not transferred to Purchaser hereunder and to make such records reasonably available to Purchaser upon reasonable notice for at least seven (7) years after the
Closing Date. 

  
 14 

 6.6 Taxes. Except as provided in Section 6.2, the parties agree that neither
Seller nor any of its Affiliates shall be liable for any Taxes attributable to any position taken on any amended Tax return filed (which Purchaser shall provide Seller with necessary documentation evidencing same to review) without Seller’s
written approval after the Closing Date made by Purchaser or any of the Owner Parties, unless such action or position is required under Applicable Law. The parties further agree that without Seller’s written approval, no election or filing
relating to Taxes (including, without limitation, an election under Code Section 338 or a check-the-box election under Code Section 7701) shall be made by any of the Owner Parties which relates to a period ending on or before the Closing
Date which may increase any Taxes owed by any of the Owner Parties or Seller, for a period which ends on or before the Closing Date. 

ARTICLE 7 
 CLOSING
CONDITIONS AND DELIVERIES 
 7.1 Purchaser Closing Conditions. The obligation of Purchaser to consummate the Closing is subject
to satisfaction at or prior to Closing of the following conditions precedent (collectively, the “Purchaser Closing Conditions”): 

7.1.1 This Agreement shall be in full force and effect. 

7.1.2 Seller shall have performed and complied with all of their respective covenants hereunder in all material
respects. 
 7.1.3 No judgment, order, decree, statute, law, ordinance, rule or regulation, entered, enacted,
promulgated, enforced or issued by any court or other Governmental Authority of competent jurisdiction or arbitration or other legal restraint or prohibition shall be in effect, and there shall not be pending or threatened in writing any suit,
action or proceeding by any Governmental Authority, preventing or seeking to prevent the transactions described in this Agreement (an “Adverse Proceeding”), unless (in any of the foregoing cases) the same shall have been dismissed,
released or otherwise cured prior to Closing. 
 7.1.4 No Applicable Law shall have been enacted that would make
illegal or invalid or otherwise prevent the consummation of the transactions contemplated by this Agreement. 
 7.1.5
All of the Seller Closing Deliveries shall have been delivered to Purchaser or deposited with Escrow Agent in the Closing Escrow to be delivered to Purchaser at Closing. 

7.1.6 The representations or warranties of any Seller in this Agreement shall be true and correct as of the date made
and as of the Closing Date (or as of such other date to which such representation or warranty expressly is made) in all material respects. 

7.1.7 The Title Insurer shall be irrevocably committed to issue the Title Policies to Purchaser and/or Purchaser’s
new mortgage lender, subject to Purchaser’s payment of the premium related thereto and customary documentation otherwise required to be executed by Purchaser by the Title Insurer. 

7.1.8 The Manager shall have executed and delivered to Purchaser that certain Manager Estoppel Certificate, dated as of
the date hereof. 

  
 15 

 The Purchaser Closing Conditions are for the benefit of Purchaser, and Purchaser shall have the
right to waive any of the Purchaser Closing Conditions at or prior to Closing; provided, however, that any such waiver shall be made in a writing executed by Purchaser. Notwithstanding the foregoing, in the event a Purchaser Closing Condition is not
satisfied at or prior to Closing and Purchaser nevertheless closes the transactions described in this Agreement, then Purchaser shall be deemed to have waived such Purchaser Closing Condition. 

7.2 Seller Closing Conditions. The obligation of Seller to consummate the Closing is subject to satisfaction of the following
conditions (collectively, the “Seller Closing Conditions”): 
 7.2.1 This Agreement shall be in full
force and effect. 
 7.2.2 All of the Purchaser Closing Deliveries shall have been delivered to Seller or deposited
with Escrow Agent in the Closing Escrow to be delivered to Seller at Closing. 
 7.2.3 The representations and
warranties of Purchaser in this Agreement shall be true and correct in all material respects as of the date made and as of the Closing Date (or as of such other date to which such representation or warranty expressly is made). 

7.2.4 The covenants and obligations of Purchaser in this Agreement shall have been performed in all material respects.

 7.2.5 No Adverse Proceeding shall be in effect, pending or threatened in writing, unless (in any of the foregoing
cases) the same shall have been dismissed, released or otherwise cured prior to Closing. 
 7.2.6 No Applicable Law
shall have been enacted that would make illegal or invalid or otherwise prevent the consummation of the transactions described in this Agreement. 

The Seller Closing Conditions are for the benefit of Seller, and Seller shall have the right to waive any of the Seller Closing Conditions at
or prior to Closing, provided, however, that any such waiver shall be made in a writing executed by Seller. Notwithstanding the foregoing, in the event a Seller Closing Condition is not satisfied at or prior to Closing and Seller nevertheless closes
the transactions described in this Agreement, then Seller shall be deemed to have waived such Seller Closing Condition. 
 7.3
Frustration of Closing Conditions. Seller and Purchaser may not rely on the failure of the Seller Closing Conditions or the Purchaser Closing Conditions, as the case may be, if such failure was caused by such party’s failure to act in good
faith or failure to use its commercially reasonable efforts to cause the Closing to occur. 
 ARTICLE 8 

CLOSING 
 8.1
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place by means of a so called “New York style” escrow (the “Closing Escrow”).

  
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On the Closing Date, Seller and/or Purchaser shall provide written instructions to the Escrow Agent (via electronic mail or otherwise) (the “Closing Escrow Agreement”) pursuant
to which (i) a fully executed copy of this Agreement shall be deposited with Escrow Agent, (ii) all of the documents required to be delivered by Seller and Purchaser at Closing pursuant to this Agreement shall be deposited with Escrow
Agent, and (iii) at Closing, the MHI Hotels Transfer shall occur, and the documents deposited into the Closing Escrow shall be delivered to Seller and Purchaser (as the case may be) pursuant to the Closing Escrow Agreement and otherwise in
accordance with the terms of this Agreement. 
 8.2 Seller’s Closing Deliveries. On or before the Closing Date, Seller shall
deliver or cause to be delivered to Purchaser or deposited with Escrow Agent in the Closing Escrow to be delivered to Purchaser at Closing, all of the (i) documents set forth in this Section 8.2, each of which shall have been, to the
extent applicable, duly executed by Seller (or its Affiliate, as applicable) and acknowledged (if required), and (ii) other items set forth in this Section 8.2 (the “Seller Closing Deliveries”), as follows: 

8.2.1 an original counterpart of this Agreement; 

8.2.2 such documentation to be executed by Seller or its Affiliate(s) that is required by the Title Insurer to issue the
Title Policies to Purchaser and/or Purchaser’s new mortgage lender in accordance with this Agreement; 
 8.2.3
appropriate resolutions of Seller authorizing entering into this Agreement and the Closing; 
 8.2.4 certificates of
good standing from each appropriate jurisdiction dated as of a recent date and prior to the Closing Date, in the name of Seller; 

8.2.5 originals (or certified copies) of all Organizational Documents of Seller, including without limitation, the
certificate of organization, and operating agreement; 
 8.2.6 a FIRPTA affidavit in the form set forth in the U.S.
Treasury Regulations Section 1.1445-2(b), to the extent applicable; 
 8.2.7 a counterpart of the final closing
statement; 
 8.2.8 a counterpart of the Closing Escrow Agreement, if applicable; 

8.2.9 a counterpart of the Unit Transfer Agreement; 

8.2.10 a title insurance affidavit in customary form and substance reasonably acceptable to the Title Insurer and Seller
to allow the Title Insurer to issue the Title Policies; 
 8.2.11 reasonable evidence of termination of any agreements
between any of the Owner Parties and Affiliates of Seller (including all related party loans), other than the Management Agreement; 

8.2.12 Form 1099-S, to the extent applicable; 

8.2.13 such other documents and instruments as may be reasonably requested by Purchaser or Title Insurer in order to
consummate the Closing; and 
 8.2.14 counterparts of all transfer documentation necessary to transfer the Target
Interest to Purchaser. 

  
 17 

 8.3 Purchaser’s Closing Deliveries. On or before the Closing Date, Purchaser shall
deliver or cause to be delivered to Seller or deposited with Escrow Agent in the Closing Escrow to be delivered to Seller all of the (i) documents set forth in this Section 8.3, each of which shall have been, to the extent applicable, duly
executed by Purchaser or its Affiliates (as applicable) and acknowledged (if required), and (ii) other items set forth in this Section 8.3 (the “Purchaser Closing Deliveries”), as follows: 

8.3.1 an original executed counterpart of this Agreement; 

8.3.2 a counterpart of the final closing statement; 

8.3.3 a counterpart of the Closing Escrow Agreement, if applicable; 

8.3.4 a counterpart of the Unit Transfer Agreement; 

8.3.5 appropriate resolutions of Purchaser authorizing entering into this Agreement and the Closing; 

8.3.6 certificates of good standing from each appropriate jurisdiction dated as of a recent date and prior to the
Closing Date, in the name of Purchaser; 
 8.3.7 counterparts of all transfer documentation necessary to transfer the
Target Interest to Purchaser; and 
 8.3.8 such other documents and instruments as may be reasonably requested by
Seller or the Title Insurer in order to consummate the transactions described in this Agreement. 
 ARTICLE 9 

INDEMNIFICATION 
 9.1
Indemnification by Seller. Subject to the limitations expressly set forth in this Agreement either limiting or granting indemnification, Seller shall indemnify, defend, and hold harmless the Purchaser Indemnitees, following the Closing, from and
against any Indemnification Loss incurred by any Purchaser Indemnitee to the extent resulting from (i) a breach or inaccuracy of any express representations or warranties of Seller in this Agreement, subject to the applicable Survival Period,
(ii) a breach by Seller of any of its covenants or obligations under this Agreement, subject to the applicable Survival Period, and (iii) without duplication of any indemnification collected pursuant to clauses (i) and
(ii) above, 1% of any Pre-Closing Taxes. Notwithstanding anything contained herein to the contrary, but subject to Section 9.3.1, the indemnification obligations set forth in this Section 9.1 shall survive the Closing for the Survival
Period. 
 9.2 Indemnification by Purchaser. Subject to the limitations expressly set forth in this Agreement, Purchaser shall
indemnify, defend, and hold harmless the Seller Indemnitees from and against any Indemnification Loss incurred by any Seller Indemnitee following the Closing, to the extent resulting from (i) a breach or inaccuracy of any representations or
warranties of Purchaser in this Agreement, subject to the Survival Period, and (ii) a breach by Purchaser of any of its covenants or obligations under this Agreement, subject to the applicable Survival Period. Notwithstanding anything contained
herein to the contrary, but subject to Section 9.3.1, the indemnification obligations set forth in this Section 9.2 shall survive the Closing for the Survival Period. 

  
 18 

 9.3 Limitations on Indemnification Obligations. 

9.3.1 Notwithstanding anything to the contrary contained in this Agreement, an Indemnitee which is seeking defense or
indemnification for any Indemnification Loss shall be entitled to indemnification for the breach or inaccuracy of a representation or warranty only if the Indemnitee has given written notice to the Indemnitor prior to the expiration of the Survival
Period. 
 9.3.2 Notwithstanding anything to the contrary in this Agreement, the amount of any Indemnification Loss
for which indemnification is provided to an Indemnitee under this Article 9 shall be net of any Tax benefits realized or insurance proceeds received by such Indemnitee in connection with the Indemnification Claim, or any other third party
reimbursement. The Indemnitee shall use commercially reasonable efforts to realize any Tax benefit, collect any insurance proceeds or obtain any third party reimbursement with respect to such Indemnification Claim, and if such Tax benefits,
insurance proceeds or reimbursement are realized or obtained by the Indemnitee after the Indemnitor has paid any amount in respect of an Indemnification Loss to the Indemnitee, the Indemnitee shall reimburse the amount realized or collected by the
Indemnitee up to the amount received from the Indemnitor for such Indemnification Loss, less the reasonable costs of collection, including reasonable attorneys’ fees. 

9.4 Indemnification Procedure. 

9.4.1 If any of the Seller Indemnitees or Purchaser Indemnitees (as the case may be) (each, an
“Indemnitee”) is entitled to defense or indemnification under any express provision in this Agreement (each, an “Indemnification Claim”), and the party required to provide defense, or indemnification to such
Indemnitee (the “Indemnitor”) does not expressly accept such Indemnification Claim within thirty (30) days following notice of such Indemnification Claim, the dispute shall be resolved by litigation or other means of
alternative dispute resolution as the parties may agree in writing. 
 9.4.2 Notwithstanding anything to the contrary
contained in this Agreement, the Indemnitee shall have no right to indemnification against the Indemnitor for any Indemnification Claim which disputed by Indemnitor until such time as such dispute is resolved by a court order or order by an
applicable authority with competent jurisdiction, or other means as the parties otherwise may agree in writing. 
 9.5 Exclusive Remedy
for Indemnification Loss. Except for claims based on fraud or intentional misconduct, the indemnification provisions in this Article 9 shall be the sole and exclusive remedy of any Indemnitee with respect to any claim for Indemnification Loss
arising from or in connection with this Agreement. Except as expressly provided in this Agreement, neither Seller nor any of its Affiliates will have any liability with respect to the Business, the Hotel or the Owner Parties following closing. The
amount of any Indemnification Loss for which indemnification is provided to any Purchaser Indemnitee under this Article 9 shall be satisfied solely by recourse to the number of units of limited partnership interests in Sotherly Hotels LP equivalent
to the amount of the Indemnification Loss, based upon the average of the closing bid price for the common stock of Sotherly Hotels Inc. for the twenty trading days immediately prior to that day which is five (5) Business Days prior to the date
such Indemnification Claim is resolved as provided in Section 9.4.2 

  
 19 

 9.6 No Contribution. After the Closing, Seller shall have no right of contribution or
indemnity from any of the Owner Parties, whether arising as a matter of law or by contract, with respect to any claim for indemnification by any Purchaser Indemnitee hereunder. 

9.7 Survival. Except as expressly set forth in this Agreement, all representations, warranties, covenants, liabilities, and obligations
under this Agreement shall be deemed (i) if the Closing occurs, to not merge into the transfer documents and instead to survive the Closing for the applicable Survival Period, or (ii) if this Agreement is terminated, not to survive such
termination. This Article 9 and all other rights and obligations of defense and indemnification as expressly set forth in this Agreement shall survive the Closing for the applicable Survival Period and such indemnification obligations shall in no
way merge with the delivery of any document required to be delivered in connection with the Closing. 
 ARTICLE 10 

TRANSACTION COSTS 

10.1 Seller’s Transaction Costs. Seller shall be responsible for the cost of its legal counsel, advisors and the other
professionals employed by it in connection with this Agreement. 
 10.2 Purchaser’s Transaction Costs. Purchaser shall be
responsible for all costs and expenses associated with (a) Purchaser’s legal counsel, advisors, engineers, consultants and the other professionals employed by it in connection with the purchase of the Target Interest, (b) the
commitment costs and policy premiums in respect of any title insurance obtained by Purchaser, (c) the cost of transferring the applicable Permits, and (d) all closing escrow fees and costs. 

10.3 Survival. The provisions of this Article 10 shall survive the Closing for the Survival Period. 

ARTICLE 11 

INTENTIONALLY OMITTED. 

ARTICLE 12 
 DEFAULT;
REMEDIES; SURVIVAL 
 12.1 Notwithstanding any provision of this Agreement to the contrary, in the event of any default, breach
or misrepresentation by Seller, Purchaser’s rights and remedies available under this Agreement shall be limited to such rights and remedies as may be specifically provided under this Agreement. Except as expressly provided in this Agreement,
Purchaser hereby waives any other right or remedy, at law or in equity, which Purchaser may have or be entitled to as a result of any default or misrepresentation by Seller. Notwithstanding any provision of this Agreement to the contrary, in the
event of any default, breach or misrepresentation by Purchaser, Seller’s rights and remedies available under this Agreement shall be limited to such rights and remedies as may be specifically provided under this Agreement. Except as expressly
provided in this Agreement, Seller hereby waives any other right or remedy, at law or in equity, which Seller may have or be entitled to as a result of any default or misrepresentation by Purchaser. 

12.2 DAMAGES. UNDER NO CIRCUMSTANCES SHALL THE PARTIES OR THEIR RESPECTIVE AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS, OR ANY
OF THEM, BE LIABLE TO THE OTHER PARTIES, WHETHER IN TORT, CONTRACT OR 

  
 20 

 
OTHERWISE FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, PUNITIVE, OR EXEMPLARY DAMAGES. THE PARTIES’ LIABILITY HEREUNDER SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES, AND ALL OTHER DAMAGES AT LAW
OR IN EQUITY ARE WAIVED. THE LIMITATIONS ON DAMAGES SPECIFIED IN THIS SECTION 12.2 ARE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR
PASSIVE. THE PROVISIONS OF THIS SECTION 12.2 SHALL SURVIVE THE CLOSING OR EARLIER TERMINATION OF THIS AGREEMENT. 
 ARTICLE 13 

ASSIGNMENT 
 No
Assignment. Neither this Agreement nor any of the rights of a party hereunder (nor the benefits of such rights) may be assigned, transferred or encumbered by Purchaser or Seller (as applicable) without the other’s prior written consent and
any purported assignment, transfer or encumbrance without such prior written consent shall be void. 
 ARTICLE 14 

MISCELLANEOUS 
 14.1
Governing Law, Jurisdiction and Venue. 
 14.1.1 This Agreement shall be governed by, and construed in accordance
with, the substantive laws of the Commonwealth of Virginia, without regard to conflict of law principles. 
 14.1.2
Seller and Purchaser hereby (a) irrevocably consent and submit to the jurisdiction of any Federal, state, county or municipal court sitting in the Commonwealth of Virginia with respect to any action or proceeding brought therein by any party
concerning any matters arising out of or in any way relating to this Agreement; (b) irrevocably waive personal service of any summons and complaint and consents to the service upon it of process in any such action or proceeding by the mailing
of such process to the affected party at the address set forth herein; (c) irrevocably waive all objections as to venue and any and all rights they may have to seek a change of venue with respect to any such action or proceeding;
(d) agrees that the laws of the Commonwealth of Virginia shall govern in any such action or proceeding and waives any defense to any action or proceeding granted by the laws of any other country or jurisdiction unless such defense is also
allowed by the laws of the Commonwealth of Virginia; and (e) agree that any judgment rendered against it in any such action or proceeding shall be conclusive and may be enforced in any jurisdiction by suit on the judgment or in any other manner
provided by law. 
 14.2 Further Assurances. In addition to the obligations required to be performed hereunder by Seller and
Purchaser at or prior to the Closing, each party, from and after the Closing, shall execute, acknowledge and/or deliver such other instruments, as may reasonably be requested in order to effectuate the purposes of this Agreement; provided, however,
neither party shall be required to execute, acknowledge or deliver any instrument which would or might impose upon such party any additional liability or obligation (beyond that imposed upon it under the documents delivered by such party at the
Closing and the other provisions of this Agreement which survive the Closing). 

  
 21 

 14.3 Successors. All of the provisions of this Agreement and of any of the documents and
instruments executed in connection herewith shall apply to and be binding upon, and inure to the benefit of Seller and Purchaser, their successors and permitted assigns. 

14.4 No Third Party Beneficiary. This Agreement and each of the provisions hereof are solely for the benefit of Purchaser and Seller,
their successors and permitted assigns. No provisions of this Agreement, or of any of the documents and instruments executed in connection herewith, shall be construed as creating in any Person other than Purchaser and Seller, their successors and
permitted assigns any rights of any nature whatsoever. 
 14.5 Notices. All notices, demands, requests and other communications
required hereunder shall be in writing and shall be deemed to have been given: (a) upon delivery, if personally delivered; (b) one (1) Business Day after deposit with a nationally recognized overnight delivery service marked for
delivery on the next Business Day, or (c) upon delivery if sent by facsimile with electronic confirmation and additionally sent by one of the methods described in clauses (a), or (b) hereinabove, in each case addressed to the party for
whom it is intended at its address hereinafter set forth: 
 If to Seller: 

MHI Hotels, L.L.C. 
 6411 Ivy Lane

 Suite 510 
 Greenbelt,
Maryland 20770 
 Attn: Kim E. Sims 

Facsimile: (301) 474-0807 

Email:                      

If to Purchaser: 
 Sotherly Hotels
L.P. 
 410 West Francis Street 

Williamsburg, Virginia 23185 

Attn: David R. Folsom 
 Facsimile:
                     
 Email:
                     
 with a copy to:

 Baker & McKenzie LLP 

815 Connecticut Avenue, NW 

Washington, DC 20006 
 Attn:
Thomas J. Egan, Jr. 
 Facsimile: (202) 416-6955 

Email: thomas.egan@bakermckenzie.com 
 or
at such other address in the United States of America as may be designated by either of the parties in a written notice given in accordance with the provisions of this Section. The attorney for any party may send notices on that party’s behalf.

  
 22 

 14.6 Entire Agreement. This Agreement, together with the documents and instruments
executed and delivered in connection herewith, sets forth the entire agreement between Purchaser and Seller relating to the transactions contemplated hereby and all other prior or contemporaneous agreements, understandings, representations or
statements, oral or written, relating directly to Seller, the Owner Parties, the Property and Purchaser are superseded hereby. 
 14.7
Severability. If any provision in this Agreement is found by a court of competent jurisdiction to be in violation of any Applicable Law, and if such court should declare such provision of this Agreement to be unlawful, void, illegal or
unenforceable in any respect, the remainder of this Agreement shall be construed as if such unlawful, void, illegal or unenforceable provision were not contained herein, and the rights, obligations and interests of the parties hereto under the
remainder of this Agreement shall continue in full force and effect undisturbed and unmodified in any way; provided that the deletion of any provision so held to be unlawful, void, illegal, or unenforceable will not materially and adversely effect
the expected benefit of any party to this Agreement. 
 14.8 Modification. This Agreement and the terms hereof may not be
changed, waived, modified, supplemented, canceled, discharged or terminated orally, but only by an instrument or instruments in writing executed and delivered by Purchaser and Seller. 

14.9 Waiver of Trial by Jury. EACH PARTY HEREBY WAIVES, IRREVOCABLY AND UNCONDITIONALLY, TRIAL BY JURY IN ANY ACTION BROUGHT ON, UNDER
OR BY VIRTUE OF OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY OF THE DOCUMENTS EXECUTED IN CONNECTION HEREWITH, THE TARGET INTEREST, THE OWNER PARTIES, THE PROPERTY, OR ANY CLAIMS, DEFENSES, RIGHTS OF SET-OFF OR OTHER ACTIONS OF SELLER OR
PURCHASER PERTAINING HERETO OR TO ANY OF THE FOREGOING. 
 14.10 No Recording. Neither this Agreement nor any memorandum hereof shall
be recorded. Each party hereby agrees to indemnify and hold harmless the others for all liabilities, losses, damages, liens, suits, claims, costs and expenses (including reasonable attorneys’ fees) incurred by the other by reason of a breach of
the foregoing covenant. 
 14.11 Counterparts; Facsimile Signature; Headings. This Agreement may be executed in several counterparts,
each of which shall be deemed an original, but such counterparts shall together constitute but one and the same Agreement. In the event that any signature to this Agreement is delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof. The Article and Section headings in this Agreement are
inserted for convenience of reference only and shall not constitute a part hereof. 
 14.12 No Waiver. Neither the failure of either
party to exercise any power given such party hereunder or to insist upon strict compliance by the other party with its obligations hereunder, nor any custom or practice of the parties at variance with the terms hereof shall constitute a waiver of
either party’s right to demand exact compliance with the terms hereof. 
 14.13 Time of Essence. Time shall be of the essence
with respect to this Agreement and the covenants and obligations of the parties hereunder. 

  
 23 

 14.14 Attorneys’ Fees. In the event that either party hereto shall commence
litigation against the other in connection with this Agreement and/or the enforcement thereof, the losing party in such action shall reimburse the attorneys’ fees and disbursements of the prevailing party in such action. 

14.15 Brokers. Seller represents and warrants to Purchaser, that Seller has not dealt with in any manner, or engaged any broker or
finder, in connection with any of the transactions contemplated by this Agreement. Purchaser represents and warrants to Seller, that Purchaser has not dealt with in any manner, or engaged any broker or finder, in connection with any of the
transactions contemplated by this Agreement. In the event of any such claims for additional brokers’ or finders’ fees or commissions in connection with the negotiation, execution or consummation of this Agreement, then Purchaser shall
indemnify, save harmless and defend Seller from and against such claims if they shall be based upon any statement or representation or agreement by Purchaser, and Seller shall indemnify, save harmless and defend Purchaser if such claims shall be
based upon any statement, representation or agreement made by Seller. This Section 14.15 shall survive the termination of this Agreement for any reason. 

[Execution Page(s) Follow] 

  
 24 

 IN WITNESS WHEREOF, this Agreement has been entered into as of the Effective Date. 

 

							
	PURCHASER:
	
	SOTHERLY HOTELS LP, a Delaware limited partnership
	
	 By: Sotherly Hotels Inc., a Maryland corporation

	 Its: General Partner

				
		 		 	By:	 	 /s/ Andrew M. Sims

		 		 	Name:	 	 Andrew M. Sims

		 		 	Its:	 	 Chairman & CEO

  
 25 

 IN WITNESS WHEREOF, this Agreement has been entered into as of the Effective Date. 

 

			
	SELLER:
	
	MHI HOTELS, L.L.C., a Virginia limited liability company
		
	By:	 	 /s/ Christopher L. Sims

	Name:	 	 Christopher L. Sims

	Its:	 	 V.P.

 Exhibit A 

Form of Unit Transfer Agreement 

  
 2EX-10.1

 Exhibit 10.1 

ARATANA THERAPEUTICS, INC. 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of
November 8, 2013 by and between ARATANA THERAPEUTICS, INC. (the “Company”) and Craig Tooman (the “Executive”). The Company and the Executive are
hereinafter collectively referred to as the “Parties”, and individually referred to as a “Party”. 

RECITALS 

A. The Executive currently serves as a member of the Company’s board of directors (the “Board” or
“Aratana Board”). 
 B. The Company previously granted the Executive, in his capacity as a member of
the Board, (i) an option to purchase 15,042 shares of the Company’s common stock (the “First Director Option”) , subject to the terms and conditions of the Company’s 2010 Equity Incentive Plan (the
“2010 Plan”) and a stock option agreement dated as of August 2, 2012 (the “First Director Option Agreement”) and (ii) an option to purchase 6,016 shares of the Company’s common stock
(together with the First Director Option, the “Director Options”), subject to the terms and conditions of the 2010 Plan and a stock option agreement dated as of April 17, 2013 (together with the First Director Option
Agreement, the “Director Option Agreements”). 
 C. The Company desires to employ the
Executive to serve as its Chief Financial Officer, subject to the terms and conditions set forth in this Agreement, commencing on November 8, 2013 (the “Effective Date”). 

D. The Executive desires to accept such employment by the Company, subject to the terms and conditions set forth in this Agreement, effective
as of the Effective Date. 
 AGREEMENT 

In consideration of the foregoing Recitals and the mutual promises and covenants herein contained, and for other good and valuable
consideration, the Parties, intending to be legally bound, agree as follows: 
 1. EMPLOYMENT. 

1.1 Offer and Acceptance of Employment. The Company hereby agrees to employ the Executive, and the Executive hereby accepts such
employment with the Company, in each case effective as of the Effective Date and otherwise subject to the terms and conditions set forth in this Agreement. 

1.2 Title. The Executive’s position shall be designated as Chief Financial Officer, subject to the terms and conditions set forth
in this Agreement. 
 1.3 Term. The term of this Agreement shall begin on the Effective Date and shall continue until terminated
pursuant to Section 4 herein (the “Term”); provided, however, 

 
that the Parties expressly acknowledge and agree that the Executive’s employment with the Company is at will and may, subject to the provisions of Section 4, be terminated by the
Company or by the Executive at any time for any reason or for no reason. 
 1.4 Duties. During the Term, the Executive shall
(a) perform such services as are normally associated with the position of Chief Financial Officer and (b) report to the Company’s President and Chief Executive Officer. 

1.5 Policies and Practices. The employment relationship between the Parties shall be governed by this Agreement and by the policies and
practices established by the Company and the Board. In the event that the terms of this Agreement differ from or are in conflict with the Company’s policies or practices as in effect from time to time, this Agreement shall control. 

1.6 Location. Unless the Parties otherwise agree in writing, during the Term the Executive shall perform the services the Executive is
required to perform pursuant to this Agreement at a business office established by the Company in the Boston, Massachusetts metropolitan area; provided, however, that the Company may from time to time require the Executive to travel
temporarily to other locations in connection with the Company’s business. If the Executive elects to relocate to the Boston, Massachusetts area, the Company shall reimburse the Executive up to $100,000 for reasonable, documented moving expenses
incurred during 2014 in connection with the relocation. In the event that the Executive does not relocate to the Boston, Massachusetts area during 2014, the Company will consider in good faith whether to, but shall not be obligated to, extend the
reimbursement rights described in this Section 1.6 to moving expenses incurred during other calendar years. 
 2.
LOYAL AND CONSCIENTIOUS PERFORMANCE; NONCOMPETITION. 

2.1 Loyalty. During the Executive’s employment by the Company, the Executive shall devote the Executive’s full business
energies, interest, abilities and productive time to the proper and efficient performance of the Executive’s duties under this Agreement; provided, however, that, subject to Section 2.2 and Section 2.3 and the terms of the
Non-Disclosure and Assignment Agreement (as defined below) and provided that such activities do not materially interfere with the performance of the Executive’s duties under this Agreement, the Executive may participate in the activities listed
on Exhibit A attached hereto as well as charitable, community or civic activities, and any other activities that may be disclosed by the Executive in writing in advance to, and approved by, the Board after the date hereof. For the avoidance
of doubt, notwithstanding other activities in which the Executive may engage during the Term under the immediately preceding sentence, the Executive’s employment with the Company is intended to be full-time. 

2.2 Covenant Not to Compete. The Executive acknowledges and agrees that the business of the Company is global in scope. The Executive
further acknowledges and agrees that during the course of his employment with the Company he will learn confidential information relating to the Company and its business and business strategies and will develop business relationships on behalf of
the Company at the Company’s expense. The Executive acknowledges and agrees that if he were to divert this information and the relationships to a 

  
 2 

 
competitor, the Company would suffer irreparable harm to its business and goodwill in an amount that cannot be readily quantified. Accordingly, the Executive agrees that
during the Term and the Noncompetition Period (as defined below), the Executive shall not engage in competition with the Company and/or any of its Affiliates (as defined below), either directly or indirectly, in any manner or capacity, as adviser,
principal, agent, Affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant or member of any association or otherwise, in any phase of the business of developing, licensing, manufacturing, distributing or
marketing of products or services that are in the same Field of Use (as defined below) or which are otherwise in competition with the actual or reasonably anticipated products or services of the Company at the time of his separation from the
Company, except with the prior written consent of the Board. For purposes of this Agreement: (i) ”Noncompetition Period” means the period of six (6) months following the
termination of the Executive’s employment for any reason; and (ii) “Field of Use” means companion animal therapeutic products marketed, developed or manufactured by the Company, including any potential products with
respect to which the Company is actively engaged in in-licensing discussions as of the commencement of the Noncompetition Period, or such products known to the Executive to be under development by the Company. The Executive acknowledges and agrees
that because of the global scope of the Company’s business, this restriction shall cover the United States of America and Europe. For purposes of this Agreement, “Affiliate” means, with respect to any specific entity,
any other entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such specified entity. Ownership by the Executive in professionally managed funds over which the Executive
does not have control or discretion in investment decisions or as a passive investment of less than two percent (2%) of the outstanding shares of capital stock of any corporation identified on Exhibit C
attached hereto or with one or more classes of its capital stock listed on a national securities exchange or publicly traded on a national securities exchange or in the over-the-counter market shall not constitute a breach of this
Section 2.2. 
 2.3 Covenant Not To Solicit. The Executive agrees that during the Term and for one (1) year
following the termination of his employment for any reason, he shall not, directly or indirectly, solicit or recruit any employees of the Company to terminate their work for the Company or to perform services in competition with the Company. 

2.4 Acknowledgement Regarding Indemnification. For the avoidance of doubt, The Company and the Executive expressly acknowledge and
agree that the Executive shall, at all times during the Term of this Agreement, be deemed to be and qualify as an “executive officer” for purposes of Article XI of the Company’s bylaws as in effect as of the Effective Date and shall
be entitled to all of the rights and remedies relating to the indemnification of executive officers of the Company pursuant thereto. 

3. COMPENSATION OF THE EXECUTIVE. 

3.1 Base Salary. The Company shall pay the Executive a base salary at the rate of Three Hundred Fifty Thousand U.S. Dollars
($350,000.00) per year (the “Base Salary”), less payroll deductions and all required withholdings, payable in regular periodic payments in accordance with the Company’s normal payroll practices. The Base Salary shall be
prorated for any partial year of employment on the basis of a 365-day fiscal year. The Base Salary shall be 

  
 3 

 
subject to review and adjustment from time to time by and at the sole discretion of the Board or any committee thereof. 

3.2 Annual Bonus. The Executive shall have a targeted annual cash performance bonus (the “Bonus”) payment of
thirty-five percent (35%) of the Base Salary with respect to each calendar year, subject to the Executive’s continued employment with the Company as of the end of such calendar year and contingent upon (a) successful achievement of
corporate objectives established from year to year by the Board, which objectives may be modified by the Board, and/or (b) other adjustments that the Board deems appropriate. Any Bonus pursuant to this Section 3.2 shall be paid as promptly
as practicable following the end of the applicable calendar year, but not later than March 15th of the following calendar year. 

3.3 Equity Compensation. 

3.3.1 Stock Option. 

(i) On the Effective Date or as soon as reasonably practicable thereafter, subject to the approval of the Board, the
Company shall grant the Executive a stock option (the “Stock Option”) pursuant to the Company’s 2013 Incentive Award Plan or such other equity incentive plan or similar plan in effect at the time the Stock Option is
granted (the “Plan”) to purchase 90,450 shares (adjusted for any stock splits, reverse stock splits or other changes affecting the shares that may occur prior to the date of grant) of the Company’s common stock
(“Common Stock”), at a per share exercise price equal to the fair market value of a share of Common Stock on the date of grant. 

(ii) The Stock Option shall be granted subject to the terms and conditions of the Plan and
a written stock option agreement to be entered into by the Company and the Executive in the form of the Company’s standard stock option agreement for similarly situated employees (the “Option Agreement”). The Option
Agreement shall provide, among other things, that (A) the Stock Option shall be an “incentive stock option” to the extent possible under applicable law and (B) the shares of Common Stock underlying the Stock Option (the
“Option Shares”) shall vest: (x) as to 1/4th of the Option Shares, upon the first (1st) anniversary of the Effective Date; and (y) as to the remaining Option Shares, in equal monthly installments over the next
thirty-six (36) months such that all shares shall be vested as of the fourth (4th) anniversary of the Effective Date, subject to the Executive’s continued employment with the Company on each such vesting date; provided,
however, that the Stock Option shall be subject to accelerated vesting as provided in Section 4.5.1 and Section 4.5.3(iv). 

3.3.2 Restricted Stock Award. 

(i) On the Effective Date or as soon as reasonably practicable thereafter, subject to the
approval of the Board, the Company shall grant the Executive an award of restricted stock (the “Restricted Stock Award”) pursuant to the Plan for 44,550 shares of Common Stock (adjusted for any stock splits, 

  
 4 

 
reverse stock splits or other changes affecting the shares of Common Stock that may occur prior to the date of grant). 

(ii) The Restricted Stock Award shall be granted subject to the terms and conditions of
the Plan and a written award agreement to be entered into by the Company and the Executive in the form of the Company’s standard restricted stock agreement for similarly situated employees (the “Restricted Stock Award
Agreement”). The Restricted Stock Award Agreement shall provide, among other things, that all shares of Common Stock underlying the Restricted Stock Award shall vest as to 1/4th of the underlying shares on the date that is six
(6) months following the Effective Date and as to an additional 1/4th of the underlying shares on each of the first (1st), second (2nd) and third (3rd) anniversaries of the Effective Date such that all shares shall be vested as of the
third (3rd) anniversary of the Effective Date, subject to the Executive’s continued employment with the Company on each such vesting date; provided, however, that the Restricted Stock Award shall be subject to accelerated
vesting as provided in Section 4.5.1 and Section 4.5.3(iv).  
 3.3.3 Director Options. The Executive’s
employment with the Company shall constitute Continuous Service (as defined in the 2010 Plan) and the Director Options shall continue to vest in accordance with their terms and the Director Option Agreements, except as otherwise expressly set forth
in Section 4.5.3(iii). 
 3.4 Expense Reimbursements. The Company will reimburse the Executive for all reasonable business
expenses the Executive incurs in conducting his duties hereunder, pursuant to the Company’s usual expense reimbursement policies, provided that the Executive supplies the appropriate substantiation for such expenses. Any amounts payable under
this Section 3.4 shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of the Executive’s taxable year following the taxable year in which the Executive incurred
the expenses. The amounts provided under this Section 3.4 during any taxable year of the Executive’s will not affect such amounts provided in any other taxable year of the Executive’s, and the Executive’s right to reimbursement
for such amounts shall not be subject to liquidation or exchange for any other benefit. 
 3.5 Employment Taxes. All of the
Executive’s compensation shall be subject to all applicable federal, state and local taxes and withholdings, as well as any others that the Company determines it is legally required to withhold. 

3.6 Benefits. The Executive shall, in accordance with Company policy and the terms of the applicable plan documents, be eligible to
participate in benefits under any benefit plan or arrangement, including any 401(k) plan with Company matching, disability insurance plan and life insurance plan, that may be in effect from time to time and made available to the Company’s
senior management employees, including with respect to additional coverage for spouses, domestic partners and eligible dependents. Notwithstanding the foregoing, the Executive shall not be entitled to participate in any Company severance plan or
program except as set forth in Section 4.5. 

  
 5 

 3.7 Vacation. The Executive shall be entitled to three (3) weeks’ paid vacation time
per year, subject to a maximum accrual of three (3) weeks, and paid personal time off, in each case, in accordance with the Company’s policies. 

4. TERMINATION. 

4.1 Termination by the Company. The Executive’s employment with the Company is at will and may be terminated by the Company at any
time and for any reason, or for no reason, including, but not limited to, under the following conditions: 
 4.1.1 Termination by the
Company for Cause. The Company may terminate the Executive’s employment under this Agreement for Cause by delivery of written notice to the Executive specifying the Cause or Causes relied upon for such termination. Any notice of termination
given pursuant to this Section 4.1.1 shall effect termination as of the date of the notice, or as of such other date as specified in the notice. 

4.1.2 Termination by the Company Without Cause. The Company may terminate the Executive’s employment under this Agreement without
Cause at any time and for any reason, or for no reason, by delivery of written notice to the Executive. Any notice of termination given pursuant to this Section 4.1.2 shall effect the termination of the Executive’s employment hereunder as
of the date of such notice, or as of such other date as is specified in such notice. 
 4.2 Termination by the Executive. The
Executive’s employment with the Company is at will and may be terminated by the Executive at any time and for any reason, or for no reason, including, but not limited to, under the following conditions: 

4.2.1 Termination by the Executive for Good Reason. The Executive may terminate his employment under this Agreement for Good
Reason in accordance with the procedures specified in Section 4.6.2 below. 
 4.2.2 Termination by the Executive Without Good
Reason. The Executive may terminate his employment under this Agreement for other than Good Reason at any time. 
 4.3 Termination
for Death or Complete Disability. The Executive’s employment with the Company shall automatically terminate effective upon the date of the Executive’s death or Complete Disability (as defined below). 

4.4 Termination by Mutual Agreement of the Parties. The Executive’s employment with the Company may be terminated at any time upon
a written mutual agreement of the Parties. Any such termination of employment shall have the consequences specified in such agreement. 

4.5 Compensation Upon Termination. 

4.5.1 Death or Complete Disability. If the Executive’s employment shall be terminated by death or Complete Disability as provided
in Section 4.3, the Company 

  
 6 

 
shall pay to the Executive, or to the Executive’s heirs, as applicable, the Base Salary and accrued and unused 

vacation benefits earned through the date of termination at the rate in effect at the time of termination, plus all other amounts to which the Executive is
entitled under any compensation plan or practice of the Company at the time of termination, less standard deductions and withholdings. In addition, the vesting and/or exercisability of each of the Executive’s outstanding stock awards (including
any stock options, restricted stock or other awards granted to the Executive by the Company) shall be automatically accelerated on the date of termination as to the number of stock awards that would have vested over the twelve (12) month period
following the date of termination had the Executive remained continuously employed by the Company during such period. The Company shall thereafter have no further obligations to the Executive and/or to the Executive’s heirs under this
Agreement, except as otherwise provided by law. 
 4.5.2 With Cause or Without Good Reason. If the Executive’s employment is
terminated by the Company for Cause, or if the Executive terminates his employment hereunder without Good Reason, the Company shall pay to the Executive the Base Salary and accrued and unused vacation benefits earned through the date of termination
at the rate in effect at the time of termination, plus all other amounts to which the Executive is entitled under any compensation plan or practice of the Company at the time of termination, less standard deductions and withholdings. The Company
shall thereafter have no further obligations to the Executive under this Agreement, except as otherwise provided by law. 
 4.5.3
Without Cause or for Good Reason. If the Company terminates the Executive’s employment without Cause or the Executive terminates his employment hereunder for Good Reason, the Company shall pay to the Executive the Base Salary and
accrued and unused vacation benefits earned through the date of termination at the rate in effect at the time of termination, plus all other amounts to which the Executive is entitled under any compensation plan or practice of the Company at the
time of termination, less standard deductions and withholdings. In addition, subject to the Executive’s: (i) furnishing to the Company an executed waiver and release of claims in substantially the form attached hereto as Exhibit B
(which form may be amended to comply with legal requirements arising after the Effective Date) (the “Release”) no later than forty-five (45) days following the Executive’s termination; and (ii) allowing the
Release to become effective in accordance with its terms, the Executive shall be entitled to the following: 

(i) payment in an amount equal to fifty percent (50%) of the Executive’s annual
Base Salary in effect at the time of termination (or 100% of the Executive’s Base Salary in effect at the time of termination, in the event the termination occurs within twelve (12) months following the date of the consummation of a Change
in Control (as defined below) (such period, the “Double-Trigger Period”)) (with the amount of the Base Salary determined prior to any reduction in the Base Salary that would give rise to the Executive’s right to
voluntarily resign for Good Reason pursuant to Section 4.6.2), less standard deductions and withholdings, paid in equal installments over a period of six (6) months (or twelve (12) months, in the event the termination occurs during
the Double-Trigger Period) following the date of termination pursuant to the Company’s standard payroll practices (the “Cash Severance”), provided that any

  
 7 

 
Cash Severance which would otherwise be payable prior to the 45th day following the date of Executive’s termination of employment shall be cumulated and paid in a lump-sum on the
first ordinary payroll date that occurs on or after the 45th day following the date of Executive’s termination of employment; 

(ii) should the Executive timely elect to continue Company-sponsored group health
insurance benefits in accordance with the provisions of COBRA or a similar applicable state law (“State Continuation”), as applicable, following the date of termination, to the extent that doing so will not result in adverse
tax consequences or violate applicable law, the Company shall pay the full premium for such group health insurance continuation benefits for the Executive and any eligible dependents for a period of six (6) months (or twelve (12) months,
in the event the termination occurs during the Double-Trigger Period) after the effective date of the Release; provided, however, that any such payments will cease if the Executive voluntarily enrolls in a health insurance plan offered
by another employer or entity during the period in which the Company is paying such premiums. The Executive agrees to promptly notify the Company in writing of any such enrollment. For purposes of this Section 4.5.3(ii), references to COBRA or
State Continuation premiums shall not include any amounts payable by the Executive under an Internal Revenue Code Section 125 health care reimbursement plan;  

(iii) the vesting and exercisability of the Director Options, to the extent then outstanding, shall be automatically
accelerated in full on the effective date of the Release; and 
 (iv) in the event that the termination
occurs during the Double-Trigger Period, the vesting and exercisability of each of the Executive’s outstanding stock awards (including any stock options, restricted stock or other equity awards granted to the Executive by the Company) shall be
automatically accelerated in full on the effective date of the Release, which shall mean at target for any portion of an award that vests based on the achievement of performance goals. 

4.6 Definitions. For purposes of this Agreement, the following terms shall have the following meanings: 

4.6.1 Complete Disability. “Complete Disability” shall mean the inability of the Executive to perform the
Executive’s duties under this Agreement, even with reasonable accommodation, because the Executive has become permanently disabled within the meaning of any policy of long-term disability income insurance covering employees of the Company then
in force. In the event the Company has no policy of disability income insurance covering employees of the Company in force when the Executive becomes disabled, the term “Complete Disability” shall mean the inability of the Executive to
perform the Executive’s duties under this Agreement, even with reasonable accommodation, by reason of any incapacity, physical or mental, which the Board, based upon medical advice or an opinion provided by a licensed physician mutually
acceptable to the Board and the Executive, determines to have 

  
 8 

 
incapacitated the Executive from satisfactorily performing all of the Executive’s usual services for the 

Company, even with reasonable accommodation, for a period of at least one hundred twenty (120) days during any twelve (12) month period (whether or
not consecutive). Based upon such medical advice or opinion, the determination of the Board shall be final and binding and the date such determination is made shall be the date of such Complete Disability for purposes of this Agreement. 

4.6.2 Good Reason. “Good Reason” for the Executive to terminate his employment hereunder shall mean the
occurrence of any of the following events without the Executive’s consent: 
 (i) a material diminution in the
Executive’s authority, duties or responsibilities relative to his authority, duties or responsibilities in effect immediately prior to such reduction; 

(ii) a material change in the geographic location at which the Executive must perform his duties to a point that is
located more than fifty (50) miles from the outer limits of the Boston, Massachusetts metropolitan area; 

(iii) a material diminution by the Company of the Executive’s base compensation as initially set forth herein or
as the same may be increased from time to time; or 
 (iv) any other action or
inaction that constitutes a material breach by the Company or any successor or Affiliate of its obligations to the Executive under this Agreement; provided, however, that such termination by the Executive shall only be deemed for Good Reason
pursuant to the foregoing definition if: (x) the Executive gives the Company written notice of the intent to terminate for Good Reason within thirty (30) days following the first occurrence of the condition(s) that the Executive believes
constitutes Good Reason, which notice shall describe such condition(s); (y) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and
(z) the Executive terminates his employment within thirty (30) days following the end of the Cure Period. 

4.6.3 Cause. “Cause” for the Company to terminate the Executive’s employment hereunder shall mean the
occurrence of any of the following events, as determined by the Board or a committee designated by the Board, in its sole discretion: 

(i) the Executive’s conviction of any felony or any crime involving moral turpitude or dishonesty; or against the
Company; 
 (ii) the Executive’s participation in a fraud involving the Company or any of its
affiliates; 
 (iii) the Executive’s willful and material breach of the Executive’s duties hereunder
that is not cured within thirty (30) days after the Executive’s receipt of written notice from the Board of such breach; 

  
 9 

 (iv) the Executive’s intentional and material damage to the
Company’s property;  
 (v) the Executive’s material breach of the Non-Disclosure and Assignment
Agreement (as defined below); or 
 (vi) the Board’s determination that (a) the Executive’s
activities set forth on Exhibit A are materially interfering with the Executive’s performance of duties under this Agreement or (b) that the Executive has continued to serve as the Chief Executive Officer of Avanzar Medical, Inc. after the
first anniversary of the Effective Date;  
 provided, however, that prior to the determination that Cause under this Section 4.6.3 has
occurred, the Company shall: (w) provide to the Executive in writing, in reasonable detail, the reasons for the determination that such Cause exists; (x) other than with respect to clause (iii) above which specifies the applicable
period of time for the Executive to remedy his breach, afford the Executive a reasonable opportunity to remedy any such breach; (y) provide the Executive an opportunity to be heard prior to the final decision to terminate the Executive’s
employment hereunder for such Cause; and (z) make any decision that such Cause exists in good faith. 
 4.6.4 Change in
Control. “Change in Control” shall mean the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: (i) there is consummated a merger,
consolidation or similar transaction involving (directly or indirectly) the Company if, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own,
directly or indirectly, either (a) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or
(b) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction; (ii) the stockholders of the Company approve or the Board approves
a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur; or (iii) there is consummated a sale of all or substantially all of the consolidated assets of the
Company and its subsidiaries, other than a sale of all or substantially all of the consolidated assets of the Company and its subsidiaries to an entity more than fifty percent (50%) of the combined voting power of the voting securities of which
entity is owned by stockholders of the Company in substantially the same proportion as their ownership of the Company immediately prior to such sale; provided, however, that the term “Change in Control” shall not include a sale of
assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. 
 4.7 Survival of
Certain Sections. Sections 2.2, 2.3, 2.4, 4, 5, 6, 7, 8, 9, 12, 13, 16 and 18 of this Agreement will survive the termination of this Agreement. 

4.8 Parachute Payment. If any payment or benefit the Executive would receive pursuant to this Agreement (each, a
“Payment”) would: (i) constitute a “Parachute Payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as 

  
 10 

 
amended (the “Code”); and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the
“Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount” shall be equal to the largest portion of the Payment (including all of it) which, after taking into account
all applicable federal, state and local income and employment taxes (all computed at the highest applicable marginal rate), and the Excise Tax, if applicable, results in the Executive’s receipt, on an after-tax basis, of the greatest amount of
the Payment, whether or not all or some portion of the Payment is subject to the Excise Tax. If a reduction in payments or benefits constituting Parachute Payments is necessary so that the Payment equals the Reduced Amount, reduction shall occur in
the following order unless the Executive elects in writing a different order (provided, however, that such election shall be subject to Company approval if made on or after the effective date of the event that triggers the Payment): reduction
of cash payments; cancellation of accelerated vesting of stock awards; reduction of employee benefits. In the event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the
reverse order of the date of grant of the Executive’s stock awards unless the Executive elects in writing a different order for cancellation. Notwithstanding anything to the contrary set forth herein, the Executive may not elect the order in
which the reduction in the Executive’s payments or benefits will occur if such election would cause any such amounts to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code such that the
Executive would incur the additional twenty percent (20%) tax under Section 409A of the Code (the “409A Tax”). In addition, if a different order of reduction is required to avoid the 409A Tax, that order shall
apply. 
 The accounting firm then engaged by the Company for general audit purposes shall perform the foregoing calculations.
The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. 
 The
accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Executive and the Company within fifteen (15) calendar days after the date on which the
Executive’s right to a Payment is triggered (if requested at that time by the Executive or the Company) or such other time as requested by the Executive or the Company. If the accounting firm determines that no Excise Tax is payable with
respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Executive and the Company with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to such
Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Executive and the Company. 

4.9 Application of Internal Revenue Code Section 409A. Notwithstanding anything to the contrary set forth herein, any Cash
Severance amounts that constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code shall not commence in connection with the Executive’s termination of employment unless and until the Executive
has also incurred a “separation from service” within the meaning of Section 409A of the Code, unless the Company reasonably determines that such amounts may be provided to the Executive without causing the Executive to incur the 409A
Tax. To the extent any Cash Severance amounts: (i) are paid following the date of termination of the Executive’s employment through March 15 of the calendar year following such termination, such severance benefits are

  
 11 

 
intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the “short-term deferral” rule set forth in
Section 1.409A-1(b)(4) of the Treasury Regulations; (ii) are paid following said March 15, such Cash Severance benefits are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury
Regulations made upon an involuntary separation from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision; and (iii) are in excess of the amounts
specified in clauses (i) and (ii) of this paragraph, shall (unless otherwise exempt under Treasury Regulations) be considered separate payments subject to the distribution requirements of Section 409A(a)(2)(A) of the Code, including,
without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payments or benefits be delayed until six (6) months and one (1) day after the Executive’s separation from service if the Executive is a
“specified employee” within the meaning of the aforesaid section of the Code at the time of such separation from service. In the event that a six (6) month and one (1) day delay of any such separation payments or benefits is
required, on the first regularly scheduled pay date following the conclusion of the delay period the Executive shall receive a lump sum payment or benefit in an amount equal to the separation payments and benefits that were so delayed, and any
remaining separation payments or benefits shall be paid on the same basis and at the same time as otherwise specified pursuant to this Agreement (subject to applicable tax withholdings and deductions). 

5. CONFIDENTIAL AND PROPRIETARY INFORMATION. As a condition of employment, the Executive agrees to execute and abide by the
Company’s standard form of Non-Disclosure and Proprietary Rights Assignment Agreement (the “Non-Disclosure and Assignment Agreement”). 

6. ASSIGNMENT AND BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the Executive and the
Executive’s heirs, executors, personal representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of the Executive’s duties under this Agreement, neither this Agreement nor any rights or
obligations under this Agreement shall be assignable by the Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives. Any such successor of the Company will be
deemed substituted for the Company under the terms of this Agreement for all purposes and the Company will require any successor to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. For this purpose, “successor” means any person, firm, corporation or other business entity which at
any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. 

7. NOTICES. All notices or demands of any kind required or permitted to be given by the Company or the Executive under this Agreement
shall be given in writing and shall be personally delivered (and receipted for) or faxed during normal business hours or mailed by certified mail, return receipt requested, postage prepaid, addressed as follows: 

  
 12 

 If to the Company: 

Aratana Therapeutics, Inc. 
 1901
Olathe Boulevard 
 Kansas City, KS 66103 

Attention: Chief Executive Officer 

If to the Executive, to the address set forth on the signature page hereto. 

Any such written notice shall be deemed given on the earlier of the date on which such notice is personally delivered or three (3) days after its deposit
in the United States mail as specified above. Either Party may change its address for notices by giving notice to the other Party in the manner specified in this section. 

8. CHOICE OF LAW. This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware. The
Executive and the Company consent to non-exclusive personal jurisdiction in any state and, if otherwise permitted by law, federal court situated in the State of Delaware for the resolution of all claims arising under this Agreement that are subject
to resolution in court rather than through arbitration. 
 9. INTEGRATION. This Agreement, including Exhibit A, Exhibit B, and
Exhibit C, together with the Non-Disclosure and Assignment Agreement, contains the complete, final and exclusive agreement of the Parties relating to the terms and conditions of the Executive’s employment and the termination of the
Executive’s employment, and supersedes all prior oral and written employment agreements or arrangements between the Parties. 
 10.
AMENDMENT. This Agreement cannot be amended or modified except by a written agreement signed by the Executive and the Company. 
 11.
WAIVER. No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent of the Party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or
breach shall not be deemed to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach. 

12. SEVERABILITY. The finding by a court of competent jurisdiction of the unenforceability, invalidity or illegality of any provision
of this Agreement shall not render any other provision of this Agreement unenforceable, invalid or illegal. Such court shall have the authority to modify or replace the invalid or unenforceable term or provision with a valid and enforceable term or
provision, which most accurately represents the Parties’ intention with respect to the invalid or unenforceable term, or provision. 

13. INTERPRETATION; CONSTRUCTION. The headings set forth in this Agreement are for convenience of reference only and shall not be used
in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but the Executive has been encouraged to consult with, and has consulted with, the Executive’s own independent counsel and tax advisors
with respect to the terms of this Agreement. The Parties acknowledge that each Party and its counsel has reviewed and revised, or had an opportunity to review and revise, this Agreement, and any rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 

  
 13 

 14. REPRESENTATIONS AND WARRANTIES. The Executive represents and warrants that the
Executive is not restricted or prohibited, contractually or otherwise, from entering into and performing each of the terms and covenants contained in this Agreement, and that the Executive’s execution and performance of this Agreement will not
violate or breach any other agreements between the Executive and any other person or entity. 
 15. COUNTERPARTS. This Agreement may
be executed in two (2) counterparts, each of which shall be deemed an original, all of which together shall constitute one and the same instrument. 

16. ARBITRATION. To ensure the rapid and economical resolution of disputes that may arise in connection with the Executive’s
employment with the Company, the Executive and the Company agree that any and all disputes, claims, or causes of action, in law or equity, arising from or relating to the Executive’s employment, or the termination of that employment, will be
resolved, to the fullest extent permitted by law, by final, binding and confidential arbitration pursuant to the Federal Arbitration Act in Boston, Massachusetts conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc.
(“JAMS”), or its successors, under the then current rules of JAMS for employment disputes; provided that the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to
award such relief as would otherwise be permitted by law; and (b) issue a written arbitration decision including the arbitrator’s essential findings and conclusions and a statement of the award. ACCORDINGLY, THE EXECUTIVE AND THE COMPANY
HEREBY IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. Both the Executive and the Company shall be entitled to all rights and remedies that either the Executive or the Company would
be entitled to pursue in a court of law. The Company shall pay any JAMS filing fee and shall pay the arbitrator’s fee. The arbitrator shall have the discretion to award attorneys’ fees to the party the arbitrator determines is the
prevailing party in the arbitration; provided, however, that the prevailing party shall be reimbursed for such fees, costs and expenses within sixty (60) days following any such award, but, to the extent the Executive is the prevailing
party, in no event later than the last day of the Executive’s taxable year following the taxable year in which the fees, costs and expenses were incurred; provided, further, that the Parties’ obligations pursuant to the provisos set
forth above shall terminate on the tenth (10th) anniversary of the date of the Executive’s termination of employment. Nothing in this Agreement is intended to prevent either the Executive or the Company from obtaining equitable relief in
court to prevent irreparable harm pending the conclusion of any such arbitration. Notwithstanding the foregoing, the Executive and the Company each have the right to resolve any issue or dispute involving a claim of misappropriation or infringement
of confidential, proprietary or trade secret information, or intellectual property rights, in any court of competent jurisdiction instead of via arbitration. 

17. TRADE SECRETS OF OTHERS. It is the understanding and intention of both the Company and the Executive that the Executive shall not
divulge to the Company and/or its subsidiaries any confidential information or trade secrets belonging to others, including the Executive’s former employers, nor shall the Company and/or its Affiliates seek to elicit from the

  
 14 

 
Executive any such information. The Executive shall not provide to the Company and/or its Affiliates or use on their behalf any such information or any documents or copies of documents containing
such information. 
 18. ADVERTISING WAIVER. The Executive agrees to permit, during and following the term of this Agreement, and
without receiving additional compensation, the Company, and persons or other organizations authorized by the Company, to use, publish and distribute advertising or sales promotional literature concerning the products and/or services of the Company,
or the machinery and equipment used in the provision thereof, in which the Executive’s name and/or pictures of the Executive taken in the course of the Executive’s provision of services to the Company appear. The Executive hereby waives
and releases any claim or right the Executive may otherwise have arising out of such use, publication or distribution. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

  
 15 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first written above. 
  

			
	ARATANA THERAPEUTICS, INC.
		
	By:	 	/s/ Steven St. Peter
	 Name:
 Its:
	 	 Steven St. Peter
 President and
CEO

  
  

	
	EXECUTIVE:
	
	/s/ Craig Tooman
	Craig Tooman

  
  

	Address:	P.O. Box 6824 

	    	Bridgewater, NJ 08807 

 EXHIBIT A 

PERMITTED ACTIVITIES 

Continue in the position of Chief Executive Officer of Avanzar Medical, Inc. (“Avanzar”) until not later than the first
anniversary of the Effective Date so long as the Executive works diligently and in good faith to transition as soon as reasonably practicable following the Effective Date from the Chief Executive Officer position to a position as a non-employee
consultant or member of the board of directors of Avanzar. 
 Member of the board of directors of InSite Vision, Inc. 

 EXHIBIT B 

RELEASE AND WAIVER OF CLAIMS 

TO BE SIGNED FOLLOWING TERMINATION WITHOUT CAUSE OR RESIGNATION FOR GOOD REASON 

In consideration of the payments and other benefits set forth in the Employment Agreement dated as of November 8, 2013 (the
“Employment Agreement”), to which this form is attached, I, Craig Tooman, hereby furnish ARATANA THERAPEUTICS, INC. (the “Company”), with the following release and
waiver (“Release and Waiver”). 
 In exchange for the consideration provided to
me by Section 4 of the Employment Agreement that I am not otherwise entitled to receive, I hereby generally and completely release the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors,
successors, parent and subsidiary entities, insurers, Affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring
prior to my signing this Release and Waiver, except claims that the law does not permit me to waive by signing this Release and Waiver. This general release includes, but is not limited to: (1) all claims arising out of or in any way related to
my employment with the Company or the termination of that employment; (2) all claims related to my compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other
claims arising under the federal Civil Rights Act of 1964, the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (“ADEA”), the Massachusetts Fair Employment Practices
Act, the Massachusetts Civil Rights Act, the Massachusetts Equal Rights Act, the Massachusetts Labor and Industries Act, the Massachusetts Privacy Act, the Massachusetts Wage Act and the Massachusetts Maternity Leave Act, all as amended.

 Notwithstanding the foregoing, nothing in this Release and Waiver shall constitute a release by me of any claims or damages based
on any right I may have to enforce the Company’s executory obligations under the Employment Agreement, or my eligibility for indemnification under applicable law, Company governance documents or under any applicable insurance policy with
respect to my liability as an employee or officer of the Company, or my rights pursuant to my stock awards (including any stock options, restricted stock or other awards granted to me by the Company) pursuant to their terms. 

I acknowledge that, among other rights, I am waiving and releasing any rights I may have under ADEA, that this Release and Waiver is knowing
and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which I was already entitled as an executive of the Company. If I am 40 years of age or older upon execution of this Release and
Waiver, I further acknowledge that I have been advised, as required by the Older 

  
 18 

 
Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA which may arise after this Release and Waiver is executed; (b) I
should consult with an attorney prior to executing this Release and Waiver; (c) I have twenty-one (21) days from the date of termination of my employment with the Company in which to consider this Release and Waiver (although I may choose
voluntarily to execute this Release and Waiver earlier); (d) I have seven (7) days following the execution of this Release and Waiver to revoke my consent to this Release and Waiver; and (e) this Release and Waiver shall not be
effective until the seven (7) day revocation period has expired. 
 I acknowledge my continuing obligations under my Non-Disclosure and
Assignment Agreement. Pursuant to the Non-Disclosure and Assignment Agreement I understand that among other things, I must not use or disclose any confidential or proprietary information of the Company and I must promptly return all Company property
and documents (including all embodiments of proprietary information) and all copies thereof in my possession or control. I understand and agree that my right to the severance pay I am receiving in exchange for my agreement to the terms of this
Release and Waiver is contingent upon my continued compliance with my Non-Disclosure and Assignment Agreement. 
 This Release and Waiver
constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated
herein. This Release and Waiver may only be modified by a writing signed by both me and a duly authorized officer of the Company. 
  

							
				
	Date:	 	 	 		 	 
		 		 		 	Name: Craig Tooman

 EXHIBIT C 

ADDITIONAL PERMITTED INVESTMENTS 
 None.

  
 20

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