Document:

EXHIBIT 10.24

  
 Exhibit 10.24

  
 PURCHASE AND SALE AGREEMENT 
 BY AND AMONG 
  
 BCM/CHI WORTHINGTON OWNER, L.P. 
 and 
 BCM/CHI WORTHINGTON TENANT, INC., 
 collectively as Seller, 
  
 and 

 
 DIAMONDROCK HOSPITALITY COMPANY, 
 as Purchaser 
  
 May 3, 2005 
  

  
 TABLE OF CONTENTS

  

					
	SECTION 1. DEFINITIONS	  	1
	1.1	  	Accounting Firm	  	1
	1.2	  	Accounting Period	  	1
	1.3	  	Advances	  	1
	1.4	  	Agreement	  	1
	1.5	  	Assets	  	1
	1.6	  	Audited Financial Statements	  	2
	1.7	  	Broker	  	2
	1.8	  	Business Day	  	2
	1.9	  	Closing	  	2
	1.10	  	Closing Date	  	2
	1.11	  	Closing Date Adjustment	  	2
	1.12	  	Consent Agreements	  	2
	1.13	  	Contracts	  	2
	1.15	  	Damage Event	  	2
	1.16	  	Due Diligence Information	  	2
	1.17	  	Due Diligence Period	  	2
	1.18	  	Earnest Money	  	2
	1.19	  	Environmental Reports	  	2
	1.20	  	Economic Development Program Agreement	  	2
	1.21	  	Escrow Agreement	  	3
	1.22	  	Excluded Assets	  	3
	1.23	  	FAS	  	3
	1.24	  	FF&E	  	3
	1.25	  	FF&E Reserve	  	3
	1.26	  	Ground Leases	  	3
	1.27	  	Hazardous Substances	  	4
	1.28	  	Improvements	  	5
	1.29	  	Indemnitee	  	5
	1.30	  	Indemnitor	  	5
	1.31	  	Intellectual Property	  	5
	1.32	  	Inventories	  	5
	1.33	  	Knowledge	  	5
	1.34	  	Lease	  	5
	1.35	  	Management Agreement	  	5
	1.36	  	Manager	  	5
	1.37	  	Manager Contracts	  	5
	1.38	  	Manager Permits	  	5
	1.39	  	New Violations Period	  	6
	1.40	  	Operating Statement	  	6
	1.41	  	Operational Taxes	  	6
	1.42	  	Other Property	  	6
	1.43	  	Outside Closing Date	  	6
	1.44	  	Seller	  	6

  

					
	1.45	  	Owner Agreement	  	6
	1.46	  	Permitted Encumbrances	  	6
	1.47	  	Permits and Approvals	  	6
	1.48	  	Person or Persons	  	6
	1.49	  	Property	  	6
	1.50	  	Property Information	  	7
	1.51	  	Purchase Price	  	7
	1.52	  	Purchaser	  	7
	1.53	  	Purchaser Indmenitees	  	7
	1.54	  	Purchaser Knowledge Group	  	7
	1.55	  	Purchaser’s Agents	  	7
	1.56	  	Purchaser’s Results	  	7
	1.57	  	Real Estate Taxes	  	7
	1.58	  	Real Property	  	7
	1.59	  	Receivables and Prepaid Items	  	7
	1.60	  	Related Agreements	  	7
	1.61	  	Room Block Agreement	  	7
	1.62	  	Securities Act	  	7
	1.63	  	Seller Indemnitees	  	7
	1.64	  	Seller Knowledge Group	  	7
	1.65	  	Seller’s Affiliates	  	7
	1.66	  	Seller’s Warranties	  	7
	1.67	  	Space Leases	  	7
	1.68	  	Stub Period Must Removes	  	7
	1.69	  	Stub Period Title Matters	  	8
	1.70	  	Stub Period Title Objections	  	8
	1.71	  	Surveys	  	8
	1.72	  	Tenant	  	8
	1.73	  	Third-Party Claim	  	8
	1.74	  	Title Commitment	  	8
	1.75	  	Title Company	  	8
	1.76	  	Title Policy	  	8
	1.77	  	Uniform System of Accounts	  	8
		
	SECTION 2. PURCHASE-SALE; EARNEST MONEY; DILIGENCE; TITLE AND SURVEY; “AS-IS” CONDITION	  	8
	2.1	  	Purchase-Sale	  	8
	2.2	  	Earnest Money	  	8
	2.3	  	Purchaser’s Diligence Inspections	  	9
	2.4	  	Title and Survey	  	13
	2.5	  	“As-Is” Condition	  	14
		
	SECTION 3. CLOSING	  	16
	3.1	  	Closing	  	16
		
	SECTION 4. CONDITIONS TO PURCHASER’S OBLIGATION TO CLOSE	  	17
	4.1	  	Purchaser’s Conditions	  	17

  

 ii 

					
	4.2	  	Failure of Condition	  	20
	4.3	  	Cooperation	  	20
		
	SECTION 5. CONDITIONS TO SELLER’S OBLIGATION TO CLOSE	  	20
	5.1	  	Seller’s Conditions	  	20
	5.2	  	Cooperation	  	20
		
	SECTION 6. REPRESENTATIONS AND WARRANTIES OF SELLER	  	21
	6.1	  	Seller’s Representations	  	21
	6.2	  	Survival	  	25
	6.3	  	“As Is” Sale	  	25
	6.4	  	Waiver of Rights by Purchaser	  	26
	6.5	  	Breach of Representations	  	26
		
	SECTION 7. REPRESENTATIONS AND WARRANTIES OF PURCHASER	  	28
	7.1	  	Purchaser’s Representations	  	28
	7.2	  	Survival	  	28
		
	SECTION 8. COVENANTS OF THE SELLER AND TRANSITION	  	29
	8.1	  	Compliance with Laws, Etc.	  	29
	8.2	  	Approval of Agreements	  	29
	8.3	  	Compliance with Agreements	  	29
	8.4	  	Alterations; Removal of Property	  	29
	8.5	  	Cooperation and Transition	  	30
	8.6	  	No Transfer of Property	  	30
	8.7	  	Notice of Material Changes or Untrue Representations	  	30
	8.8	  	Maintenance of Property; Violations	  	30
	8.9	  	Insurance	  	31
	8.10	  	[INTENTIONALLY OMITTED]	  	31
	8.11	  	Permit Remediation	  	31
	8.12	  	Ground Lessor Matters	  	31
	8.13	  	Economic Development Program Agreement Matters	  	31
		
	SECTION 9. APPORTIONMENTS; CLOSING COSTS	  	32
	9.1	  	Apportionments	  	32
	9.2	  	Closing Costs	  	36
	9.3	  	Survival	  	36
		
	SECTION 10. CASUALTY, CONDEMNATION, LITIGATION AND RISK OF LOSS	  	36
	10.1	  	Notice to Purchaser	  	36
	10.2	  	Condemnation or Litigation	  	36
	10.3	  	Damage Events	  	37
	10.4	  	Arbitration	  	38
	10.5	  	Termination by Purchaser	  	38
	10.6	  	Risk of Loss	  	39

  

 iii 

					
	SECTION 11. DEFAULT	  	39
	11.1	  	Default by Seller	  	39
	11.2	  	Default by the Purchaser	  	39
	11.3	  	Representations and Warranties; No Consequential Damages	  	40
		
	SECTION 12. MISCELLANEOUS	  	40
	12.1	  	Agreement to Indemnify	  	40
	12.2	  	Indemnification Procedure for Third Party Claims	  	41
	12.3	  	Brokerage Commissions	  	42
	12.4	  	Notices	  	42
	12.5	  	Successors and Assigns	  	43
	12.6	  	Construction	  	43
	12.7	  	Time Periods	  	43
	12.8	  	Section and Paragraph Headings	  	44
	12.9	  	Time	  	44
	12.10	  	Gender and Number	  	44
	12.11	  	Attorneys’ Fees and Legal Expenses	  	44
	12.12	  	Counterparts	  	44
	12.13	  	Complete Agreement	  	44
	12.14	  	Partial Invalidity	  	44
	12.15	  	No Offer	  	44
	12.16	  	Facsimile Signature	  	44
	12.17	  	Limitation of Liability	  	44
	12.18	  	Safe Deposit Boxes	  	45
	12.19	  	Baggage	  	46

  

			
	Schedule A	  	Contracts
	Schedule B	  	Environmental Assessment Reports
	Schedule C	  	Escrow Agreement
	Schedule D	  	Knowledge Groups
	Schedule E-1	  	Manager Contracts
	Schedule E-2	  	Manager Permits
	Schedule F	  	Property Identification
	Schedule G	  	Legal Description of Real Property
	Schedule H	  	Purchaser’s Title Commitment
	Schedule I	  	Deed
	Schedule J-1	  	Form of Bill of Sale
	Schedule J-2	  	Form of Assignment
	Schedule J-3	  	Form of Tenant Estoppel Certificate
	Schedule J-4	  	Manager’s Estoppel and Consent
	Schedule J-5	  	Ground Lease Estoppels
	Schedule K	  	Personal Property and Equipment
	Schedule L	  	Permits and Approvals
	Schedule M	  	Insurance
	Schedule N	  	Excluded Assets
	Schedule O	  	[INTENTIONALLY OMITTED]
	Schedule P	  	Form of Assignment and Assumption of Ground Lease

  

 iv 

			
	Schedule Q	  	Related Agreements
	Schedule R	  	Auditor’s Representation Letter
	Schedule S	  	Joinder
	Schedule T	  	Litigation
	Schedule U	  	Economic Development Program Agreement
	Schedule V	  	Form of General Manager’s Certificate

  

 v 

  
 PURCHASE AND SALE
AGREEMENT 
  
 THIS PURCHASE AND SALE AGREEMENT is
made as of the 3rd day of May, 2005, by and among BCM/CHI WORTHINGTON OWNER, L.P., a Delaware limited partnership (“Owner”), BCM/CHI WORTHINGTON TENANT, INC., a Delaware corporation (“Tenant”, and
together with Owner, “Seller”), and DIAMONDROCK HOSPITALITY COMPANY, a Maryland corporation (“Purchaser”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Seller is the owner of the Property (this and other
capitalized terms used and not otherwise defined herein having the meanings ascribed to such terms in Section 1); and 
  
 WHEREAS, the Purchaser desires to purchase the Property from Seller and Seller is willing to sell the Property to the Purchaser, subject to and
upon the terms and conditions hereinafter set forth; 
  
 NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the mutual receipt and legal sufficiency of which are hereby acknowledged, Seller and the Purchaser hereby agree as follows:

  
 SECTION 1. DEFINITIONS. 
  
 Capitalized terms used in this Agreement shall have the meanings set forth
below or in the Section of this Agreement referred to below: 
  
 1.1 “Accounting Firm” shall have the meaning given such term in Section 9.1. 
  
 1.2 “Accounting Period” shall have the meaning given to that term under the Management Agreement. 
  
 1.3 “Advances” shall mean, with respect to the operation of
the Real Property and the business conducted thereon, all advance room deposits or other amounts prepaid by guests or other customers and to be applied against billings on or following the Closing Date. 
  
 1.4 “Agreement” shall mean this Purchase and Sale Agreement,
together with all schedules attached hereto, as it and they may be amended from time to time as herein provided. 
  
 1.5 “Assets” shall mean, collectively, all of the FF&E, the Inventories, the FAS, the Permits and Approvals, the Ground Leases, the
Contracts, the Improvements, the Intellectual Property, the FF&E Reserves, the Advances and the Other Property now owned or hereafter (but prior to the Closing Date) acquired by Owner or Tenant in accordance with the terms of this Agreement
(including, without limitation, the personal property and equipment set forth on Schedule K annexed hereto and made a part hereof), other than funds deposited into reserves required by the holder of the first mortgage encumbering the Property
(other than the FF&E Reserve). 
  

 1.6 “Audited Financial Statements” shall have the meaning given such term in Section
2.3. 
  
 1.7 “Broker” shall have the meaning
given such term in Section 12.4. 
  
 1.8 “Business
Day” shall mean any day other than a Saturday, Sunday or any other day on which banking institutions in the state of New York are authorized by law or executive action to close. 
  
 1.9 “Closing” shall have the meaning given such term in Section 3. 
  
 1.10 “Closing Date” shall have the meaning given such term
in Section 3. 
  
 1.11 “Closing Date Adjustment”
shall have the meaning given such term in Section 9.1. 
  
 1.12
“Consent Agreements” means collectively that certain Consent Agreement, City Secretary Contract No. 23286, dated November 10, 1997, by and between City of Fort Worth and the Worthington Operating Company and that certain Consent
Agreement, City Secretary Contract No. 10491, dated April 24, 1979 by and between City of Fort Worth and Bass Brothers Development Co., together with all amendments and supplements thereto. 
  
 1.13 “Contracts” shall mean all of the equipment leases,
vehicle leases, space leases tenant leases, machinery leases, service contracts and other agreements to which Owner or Tenant is a party and which relate to the operation of the Real Property or the business conducted thereon, together with all
amendments and supplements thereto, including, without limitation, the Space Leases, Consent Agreements, Economic Development Program Agreement, Room Block & Meeting Space Agreement, Management Agreement and the Owner Agreement, and which are
listed on Schedule A. 
  
 1.14 [INTENTIONALLY OMITTED]

  
 1.15 “Damage Event” shall have the meaning
given such term in Section 10.3. 
  
 1.16 “Due Diligence
Information” shall have the meaning given such term in Section 2.3. 
  
 1.17 “Due Diligence Period” shall have the meaning given such term in Section 2.3. 
  
 1.18 “Earnest Money” shall have the meaning given such term in Section 2.2. 
  
 1.19 “Environmental Reports” shall mean the environmental assessment reports listed on Schedule B.

  
 1.20 “Economic Development Program Agreement”
shall mean that certain Economic Development Program Agreement dated March 10, 2005 and effective as of May 25, 2004, between City of Fort Worth and BCM/CHI Worthington, Inc., a copy of which is attached hereto as Schedule U. 
  

 2 

 1.21 “Escrow Agreement” shall have the meaning given such term in Section 2.2.

  
 1.22 “Excluded Assets” shall mean, with
respect to the Property (i) all property owned by Seller not normally located at the Property and used, but not exclusively, in connection with the operation of the Property, and identified on Schedule N attached hereto, (ii) all items of FAS
and Inventories which are stored unopened on the Property and which, as of the Closing Date, are materially in excess of the quantities of such items as are customarily stored for current use in day to day operations, (iii) cash or other funds,
whether in petty cash or house banks, on deposit in bank accounts or in transit for deposit (except to the extent they are transferred to Purchaser and Seller receives a credit for any such prepaid item as part of the Closing Date Adjustments); (iv)
receivables (except to the extent they are transferred to Purchaser and Seller receives a credit for any such prepaid item as part of the Closing Date Adjustments); (v) refunds, rebates or other claims, or any interest thereon for periods or events
occurring prior to the Closing Date (except to the extent they are transferred to Purchaser and Seller receives a credit for any such prepaid item as part of the Closing Date Adjustments); (v) utility and similar deposits (except to the extent they
are transferred to Purchaser and Seller receives a credit for any such prepaid item as part of the Closing Date Adjustments); (vii) prepaid insurance or other prepaid items (except to the extent they are transferred to Purchaser and Seller receives
a credit for any such prepaid item as part of the Closing Date Adjustments); (viii) prepaid license and Permit fees (except to the extent they are transferred to Purchaser and Seller receives a credit for any such prepaid item as part of the Closing
Date Adjustments); and (ix) the items set forth on Exhibit N hereto. Notwithstanding the foregoing, it is acknowledged and agreed that all working capital relating to the Property as of the Closing Date shall be and remain the property of the
Seller and shall not be conveyed to the Purchaser. Purchaser shall be solely responsible for funding the working capital for the Property required by the Management Agreement. 
  
 1.23 “FAS” means all “Fixed Asset Supplies” (as defined in the Management Agreement) located at
or used in connection with the operation of the Real Property or the business conducted thereon, including without limitation, linen, china, glassware, tableware, uniforms, and similar items, whether used in connection with public space or guest
rooms. 
  
 1.24 “FF&E” means all furniture,
fixtures and equipment located at or used in connection with the operation of the Real Property or the business conducted thereon, including, without limitation, furniture, furnishings, fixtures, all fabric, textile and flexible plastic products
(not including FAS) which are used in furnishing the hotel, including carpeting, drapes, bedspreads, wall and floor coverings, mats, shower curtains and similar items, furniture and furnishings used in the hotel, including, chairs, beds, chests,
headboards, desks, lamps, tables, television sets, mirrors, pictures, wall decorations and similar items, signage, audio visual equipment, kitchen appliances, vehicles, carpeting and equipment, including front desk and back of the house computer
equipment, but shall not include FAS, as more particularly described in the Management Agreement. 
  
 1.25 “FF&E Reserve” shall have the meaning given to that term in Section 9.1. 
  
 1.26 “Ground Leases” shall mean collectively those certain
ground leases relating to the Property, as follows: (1) Lease Agreement dated July 31, 1972 by and among Sol A. Weinstein, et al., as lessor, and Clark Nowlin, trustee, as lessee, for the premises as more 

  

 3 

 
particularly described therein, as evidenced by instrument recorded in Volume 5330, Page 555 of the Deed Records of Tarrant County, Texas; (2) Lease
Agreement dated July 31, 1972 by and among Louis Wolens, et al., as lessor, and Clark Nowlin, trustee, as lessee, for the premises as more particularly described therein, as evidenced by instrument recorded in Volume 5330, Page 562 of the Deed
Records of Tarrant County, Texas; and (3) Lease Agreement dated July 31, 1972 by and among Sol A. Weinstein, et al., as lessor, and Clark Nowlin, as lessee, for the premises as more particularly described therein, as evidenced by instrument recorded
in Volume 5330, Page 547 of the Deed Records of Tarrant County, Texas; together with any and all assignments that may have been executed previously with respect to the foregoing. 
  
 1.27 “Hazardous Substances” shall mean any substance: 
  
 (a) the presence of which requires or may hereafter require notification,
investigation or remediation under any federal, state or local statute, regulation, rule, ordinance, order, action or policy; or 
  
 (b) which is or becomes defined as a “hazardous waste”, “hazardous material” or “hazardous substance” or
“pollutant” or “contaminant” under any present or future federal, state or local statute, regulation, rule or ordinance or amendments thereto including, without limitation, the Comprehensive Environmental Response, Compensation
and Liability Act (42 U.S.C. et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said
laws and any other federal, state or local law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or release or threatened release into the environment of any hazardous
substance; or 
  
 (c) which is toxic, explosive, corrosive,
flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous and is or becomes regulated by any governmental authority, agency, department, commission, board, agency or instrumentality of the United States, any state of the
United States, or any political subdivision thereof; or 
  
 (d)
the presence of which on the Property causes or materially threatens to cause an unlawful nuisance upon the Property or to adjacent properties or poses or materially threatens to pose a hazard to the Property or to the health or safety of persons on
or about the Property; or 
  
 (e) without limitation, which
contains gasoline, diesel fuel or other petroleum hydrocarbons or volatile organic compounds; or 
  
 (f) without limitation, which contains polychlorinated biphenyls (PCBs) or asbestos or urea formaldehyde foam insulation; or 
  
 (g) without limitation, which contains or emits radioactive particles, waves
or material; or 
  
 (h) without limitation, constitutes materials
which are now or may hereafter be subject to regulation pursuant to the Material Waste Tracking Act of 1988, or any other governmental laws, rules, regulations or orders. 
  

 4 

 1.28 “Improvements” shall mean all buildings, fixtures (including lighting, heating,
plumbing and ventilating fixtures, and everything attached in any manner to walls, ceilings or floors), parking structures and facilities, walls, fences, landscaping, golf courses, swimming pools, tennis courts and other amenities, if applicable,
and other structures and improvements situated on, affixed or appurtenant to the Real Property. 
  
 1.29 “Indemnitee” shall have the meaning given such term in Section 12.2. 
  
 1.30 “Indemnitor” shall have the meaning given such term in Section 12.2. 
  
 1.31 “Intellectual Property” shall mean all proprietary
rights of every kind and nature, including copyrights, trademarks, all applications for any of the foregoing, and any license or agreements granting rights related to the foregoing that are owned, licensed or controlled by Owner or Tenant and relate
to operation of the Real Property or the business being conducted thereon (including, without limitation, the name of the hotel described on Schedule F attached hereto), to the extent of Seller’s right, title and interest therein.

  
 1.32 “Inventories” means
“inventories” as defined in the Uniform System of Accounts, including, but not limited to, provisions in storerooms, refrigerators, pantries and kitchens, beverages in wine cellars and bars (excluding, however, any alcoholic beverages that
are not legally permitted to be sold as a part of this transaction under applicable laws), located at or used in connection with the operation of the Real Property or the business conducted thereon. 
  
 1.33 “Knowledge” when referring to the knowledge of Seller
or of the Purchaser shall mean, as the case may be, the actual knowledge of the individuals named on Schedule D as included in Seller Knowledge Group or the Purchaser Knowledge Group. 
  
 1.34 “Lease” shall mean that certain lease of the Property
between BCM/CHI Worthington, Inc., as landlord, and Tenant, dated as of September 28, 2000, as assigned by BCM/CHI Worthington, Inc. to Seller on December 31, 2002, together with all amendments and supplements thereto. 
  
 1.35 “Management Agreement” means that certain Management
Agreement dated as of September 28, 2000 by and between Tenant and Manager, together with all amendments and supplements thereto. 
  
 1.36 “Manager” shall mean Renaissance Hotel Management Company, LLC, the manager under the Management Agreement. 
  
 1.37 “Manager Contracts” means the equipment leases, space
leases, vehicle leases, tenant leases, machinery leases, service contracts and other agreements to which Manager is a party and relate to the operation of the Real Property or the business conducted thereon, together with all amendments and
supplements thereto, and listed on Schedule E-1. 
  
 1.38
“Manager Permits” shall mean operating licenses and permits relating to the operation of the Real Property and the business conducted thereon, including, without limitation, liquor and restaurant licenses held in the name of or on
behalf of Manager and listed on Schedule E-2. 
  

 5 

 1.39 “New Violations Period” shall have the meaning given such term in Section 8.8.

  
 1.40 “Operating Statement” shall mean the
Operating Statement for the hotel operated from the Real Property for the period ending March 25, 2005, a copy of which has been provided to Purchaser prior to the date hereof. 
  
 1.41 “Operational Taxes” shall have the meaning given such term in Section 9.1. 
  
 1.42 “Other Property” shall mean the Assets (to the extent
not otherwise included within the definition of Inventories, Ground Leases, Contracts, FAS, FF&E, Improvements, Intellectual Property, FF&E Reserves, Advances or Permits and Approvals, and not included within the definition of Excluded
Assets), and all other assets of Owner and Seller of every kind and description, tangible or intangible, pertaining to or used in the operation of the Real Property or the business conducted thereon, including, without limitation books and records
of the hotel facility operated at the Property, plans and specifications, keys and passcards, security deposits under space leases and tenant leases, all builder’s or manufacturer’s warranties with respect to the Property which continue in
force and Receivables and Prepaid Items. 
  
 1.43 “Outside
Closing Date” shall have the meaning given such term in Section 3. 
  
 1.44 “Owner” shall mean BCM/CHI Worthington Owner, L.P., a Delaware limited partnership. 
  
 1.45 “Owner Agreement” shall mean the owner agreement with respect to the Property dated as of September 28, 2000 among Manager, Owner
and Tenant. 
  
 1.46 “Permitted Encumbrances”
shall mean, with respect to the Property, (a) all matters referred to as exceptions in the Title Commitment or shown on the Survey and any updates thereto, other than Stub Period Title Objections (unless Purchaser shall have waived the same as
provided herein), (b) liens for taxes, assessments and governmental charges with respect to the Property not yet due and payable; and (c) applicable zoning regulations and ordinances and other governmental laws, ordinances and regulations provided
the same do not prohibit or impair in any material respect the use of the Property as a full service hotel as contemplated by this Agreement. 
  
 1.47 “Permits and Approvals” shall mean all transferable or assignable permits, certificates of occupancy, operating permits, sign
permits, development rights and approvals granted by any public body or by any private party pursuant to any applicable declaration of covenants or like instrument, licenses, warranties and guarantees held by Seller which relate to the operating of
the Real Property or the business conducted thereon and listed on Schedule L. 
  
 1.48 “Person” or “Persons” means any individual, limited partnership, limited liability company, general partnership, association, joint stock company, joint venture, estate, trust
(including any beneficiary thereof), unincorporated organization, government or any political subdivision thereof, governmental unit or authority or any other entity. 
  
 1.49 “Property” shall mean all of the Assets relating to the hotel facility, and the Real Property more
particularly described on Schedule G. 
  

 6 

 1.50 “Property Information” shall have the meaning given such term in Section 2.3.

  
 1.51 “Purchase Price” shall have the meaning
given to such term in Section 2.1. 
  
 1.52
“Purchaser” shall mean DiamondRock Hospitality Company, a Maryland corporation, and its permitted successors and assigns. 
  
 1.53 “Purchaser Indemnitees” shall have the meaning given such term in Section 12.1. 
  
 1.54 “Purchaser Knowledge Group” shall have the meaning
given to such term in Section 7.1. 
  
 1.55
“Purchaser’s Agents” shall have the meaning given to such term in Section 2.3. 
  
 1.56 Purchaser’s Results” shall have the meaning given to such term in Section 2.3. 
  
 1.57 “Real Estate Taxes” shall have the meaning given such
term in Section 9.1. 
  
 1.58 “Real Property”
shall mean the land described in Schedule G, together with all easements, rights of way, privileges, licenses and appurtenances which Seller may now own or hereafter acquire with respect thereto. 
  
 1.59 “Receivables and Prepaid Items” shall mean items
included within “Accounts Receivable” and “Prepaid Expenses” under the Uniform System of Accounts and which relate to the ownership and operation of the Real Property and the business conducted thereon. 
  
 1.60 “Related Agreements” shall mean the documents
identified in Schedule Q attached hereto. 
  
 1.61
“Room Block & Meeting Space Agreement” means that certain Room Block & Meeting Space Agreement dated March 17, 2005 between The City of Fort Worth, Texas and BCM/CHI Worthington, Inc. 
  
 1.62 “Securities Act” shall have the meaning given such term
in Section 2.3 
  
 1.63 “Seller Indemnitees”
shall have the meaning given such term in Section 12.1. 
  
 1.64
“Seller Knowledge Group” shall have the meaning given to such term in Section 6.1. 
  
 1.65 “Seller’s Affiliates” shall have the meaning given such term in Section 2.5. 
  
 1.66 “Seller’s Warranties” shall have the meaning given
such term in Section 2.5. 
  
 1.67 “Space Leases”
shall mean the space leases and tenant leases identified on Schedule A attached hereto. 
  
 1.68 “Stub Period Must Removes” shall have the meaning given such term in Section 2.4. 
  

 7 

 1.69 “Stub Period Title Matters” shall have the meaning given such term in Section 2.4.

  
 1.70 “Stub Period Title Objections” shall
have the meaning given such term in Section 2.4. 
  
 1.71
“Survey” shall mean the as-built survey of the Real Property prepared for Seller prepared for Seller by The Matthews Company, Inc., dated October, 2004, a copy of which has been delivered to the Purchaser prior to the date hereof.

  
 1.72 “Tenant” shall mean BCM/CHI Worthington
Tenant, Inc., a Delaware corporation. 
  
 1.73
“Third-Party Claim” shall have the meaning given such term in Section 12.2. 
  
 1.74 “Title Commitment” shall mean the commitment for title insurance issued to Purchaser by the Title Company with respect to Real Property, a copy of which is attached hereto as Schedule H.

  
 1.75 “Title Company” shall mean First
American Title Insurance Company. 
  
 1.76 “Title
Policy” shall have the meaning given such term in Section 4.3. 
  
 1.77 “Uniform System of Accounts” shall mean A Uniform System of Accounts for Hotels, Ninth Revised Edition, 1996, as published by the Hotel Association of New York City, as the same may be further
revised from time to time. 
  
 SECTION 2. PURCHASE-SALE;
EARNEST MONEY; DILIGENCE; TITLE AND SURVEY; “AS-IS” CONDITION. 
  
 2.1 Purchase-Sale. In consideration of the mutual covenants herein contained, the Purchaser hereby agrees to purchase from Seller and Seller hereby agrees to sell to the Purchaser, all of Seller’s right,
title and interest in and to the Property for Eighty Two Million Dollars ($82,000,000.00) (the “Purchase Price”), plus or minus prorations and other adjustments hereunder, to be payable in immediately available funds at the Closing
(hereinafter defined) as hereinafter provided. To the extent applicable, Purchaser and Seller shall reasonably allocate the Purchase Price among the Real Property, the FF&E and the Assets (exclusive of the FF&E) prior to the expiration of
the Due Diligence Period. Allocations made pursuant to this Section shall be used by Purchaser and Seller for all tax and other government reporting purposes. Purchaser expressly acknowledges and agrees that $8,253,000 of the Purchase Price shall be
allocable to the FF&E. 
  
 2.2 Earnest Money. Purchaser
has deposited with the Title Company cash in the sum of One Million Five Hundred Sixty One Thousand Eight Hundred Dollars ($1,561,800.00) (such sum, together with any interest earned thereon, the “Earnest Money”), pursuant to the
terms of that certain Downpayment Escrow Agreement dated as of March 21, 2005 by and among Blackacre Capital Management, Purchaser and Title Company (the “Escrow Agreement”), a copy of which is attached hereto as Schedule C.
The Earnest Money shall be invested in an 

  

 8 

 
interest bearing account, such interest to accrue solely for the benefit of, and to be disbursed at the direction of, the party or parties ultimately
entitled to the Earnest Money or portions thereof in accordance with the terms of the Escrow Agreement and this Agreement. If the sale hereunder is consummated in accordance with the terms hereof, the Earnest Money shall be applied to the Purchase
Price to be paid by Purchaser at Closing. 
  
 2.3
Purchaser’s Diligence Inspections. 
  
 (a) Purchaser
shall be afforded a reasonable opportunity and access for the conduct of, and shall, at its option, conduct, thorough inspections of the Real Property and the Improvements (including, without limitation, all roofs, electrical, mechanical and
structural elements, and HVAC systems therein) and may perform such due diligence, soil analysis and environmental and other investigations as it deems to be necessary and prudent in preparation for the consummation of the transactions contemplated
hereunder on an “as-is” basis without reliance on representations or information provided by Seller, except to the extent specifically provided herein. Purchaser shall be afforded reasonable access to and opportunity to talk with Manager
on no less than two Business Days’ prior notice, provided Seller shall be permitted to cause one or more of its representatives to be present at any such meeting. 
  
 (b) During the Due Diligence Period, Seller agrees to allow Purchaser, Purchaser’s prospective lenders and
Purchaser’s and Purchaser’s prospective lenders’ engineers, architects, employees, agents and representatives (collectively, “Purchaser’s Agents”) reasonable access to the Property and to the records of the
Property maintained by Seller at Seller’s offices during normal business hours. Such access shall be solely for the purposes of (i) reviewing the leases, the service contracts and any records relating thereto; (ii) reviewing records relating to
revenues and operating expenses; (iii) inspecting the physical condition of the Property and conducting non-intrusive physical or environmental inspections of the Property; and (iv) reviewing at Seller’s offices such other records and
information of Seller with respect to the Property in the possession or control of Seller as Purchaser shall reasonably request to review and examine in connection with the inspections and reviews contemplated herein (any such items (i) through (iv)
delivered or made available to Purchaser and Purchaser’s Agents by Seller shall collectively be know as the “Property Information”). Purchaser shall not conduct or allow any physically intrusive testing of, on or under the
Property without first obtaining Owner’s or Tenant’s consent (which consent shall not be unreasonably withheld or delayed) as to the timing and scope of work to be performed. Seller shall provide Purchaser and Purchaser’s Agents with
reasonable access to interview Manager, on no less than two Business Days’ prior notice, provided Seller shall be permitted to cause one or more of its representatives to be present at any such interview, and shall instruct Manager to cooperate
fully with Purchaser and Purchaser’s Agents in connection with Purchaser’s and Purchaser’s Agents’ due diligence and in answering any reasonable inquiries of Purchaser and Purchaser’s Agents. 
  
 (c) Purchaser agrees that, in making any intrusive or non-intrusive physical
or environmental inspections of the Property, Purchaser and all of Purchaser’s Agents entering onto the Property shall carry not less than One Million Dollars ($1,000,000.00) commercial general liability insurance insuring all activity and
conduct of Purchaser and such representatives while exercising such right of access. Owner and Tenant shall be named as an additional insureds on 

  

 9 

 
such commercial general liability policy. Purchaser will use commercially reasonable efforts to obtain and deliver to Seller written evidence of the same
prior to commencing any investigations. 
  
 (d) Purchaser agrees
that in exercising its right of access hereunder, Purchaser will use and will cause Purchaser’s Agents to use their commercially reasonable efforts not to interfere with the activity of tenants, transient guests or any Persons occupying or
providing service at the Property. Purchaser shall, at least twenty-four (24) hours prior to inspection, give Seller notice of its intention to conduct any inspections, so that Seller shall have an opportunity to have a representative present during
any such inspection, and Seller expressly reserves the right to have such a representative present. Purchaser agrees to cooperate with any reasonable request by Seller in connection with the timing of any such inspection. If the transaction
contemplated herein does not close through no fault of Seller, upon Seller’s request, Purchaser agrees (which agreement shall survive Closing or termination of this Agreement) to provide Seller with a copy of any and all final reports (other
than financial feasibility or marketing reports) (or, in the event that final reports are not obtained by Purchaser, a copy of the last draft or preliminary report provided to Purchaser), including such backup documentation as may be available to
Purchaser, prepared by Purchaser and/or Purchaser’s Agents to perform activities permitted herein, except to the extent Purchaser, in its reasonable judgment, believes it is legally prohibited from delivering such materials to Seller.

  
 (e) Purchaser shall, at its sole cost and expense, promptly
restore any physical damage or alteration of the physical condition of the Property which results from any inspections conducted by or on behalf of Purchaser, which obligation shall survive termination of this Agreement. Purchaser further agrees to
reimburse Seller for all damage done to the Property by Purchaser or Purchaser’s Agents. All inspections shall be conducted at Purchaser’s sole cost and expense and in strict accordance with all applicable law. Purchaser hereby agrees to
indemnify and hold Seller and Seller’s Affiliates harmless from any and all liability, claims, actions, demands, damages, costs or expenses (including reasonable attorneys’ fees and costs) Seller may suffer arising from the actions of
Purchaser or Purchaser’s Agents in inspecting the physical condition of the Property prior to Closing; provided, however, that Purchaser shall not be required to indemnify, hold harmless or defend Seller or Seller’s
Affiliates to the extent any such losses arise solely out of any pre-existing condition at the Property. The provisions of this Section 2.3(e) shall survive the Closing and shall not be merged therein. 
  
 (f) Prior to the expiration of the Due Diligence Period, Purchaser shall at
its sole cost and expense, use commercially reasonable efforts to complete audits of the Property and each of the properties which are the subject of the Related Agreements. At no cost to Seller, Seller shall cooperate in good faith to assist
Purchaser in Purchaser’s obtaining (at Purchaser’s sole cost and expense) audited financial statements for the operation of the hotel operated from the Real Property and the hotels that are the subject of the Related Agreements (the
“Audited Financial Statements”), which audited financial statements must comply with Rule 3-05 of Regulation S-X under the Securities Act of 1933, as amended (the “Securities Act”), prepared by KPMG LLP or another
so-called “Big Four” accounting firm. Such cooperation by Seller shall include the execution by Seller of a so-called “auditor’s representation letter,” in the form of Schedule R attached hereto, for the benefit of
the preparer of the Audited Financial Statements; provided, however, in no event shall the delivery of such an “auditor’s representation letter” be deemed to subject Seller or any of its Affiliates or their respective partners,
members, managers, 

  

 10 

 
shareholders, officers, directors, trustees, beneficiaries, employees or agents to any liability under the Securities Act as an “issuer” or
“underwriter.” 
  
 (g) Purchaser shall have the right to
proceed with the purchase contemplated by this Agreement, or to terminate this Agreement as provided in this Section 2.3(g) if, in its sole discretion and for any reason whatsoever, Purchaser deems the Property, or any aspect thereof, to be
unsatisfactory. Purchaser may terminate this Agreement by giving Seller written notice of such determination on or prior to 5:00 p.m. (New York time) on May 6, 2005 (the period from the Effective Date to and including May 6, 2005 is hereinafter
referred to as the “Due Diligence Period”). If Purchaser fails to so notify Seller of Purchaser’s election to terminate, Purchaser shall be deemed to have waived its right to terminate this Agreement under this Section 2.3(g)
and shall remain obligated to consummate the purchase contemplated by this Agreement. Purchaser’s failure to notify Seller of Purchaser’s election to terminate on or before expiration of the Due Diligence Period shall constitute a waiver
by Purchaser of its right to terminate by reason of this Section 2.3(g) and the Earnest Money shall be non-refundable, except as otherwise provided herein, but credited to the Purchase Price if this transaction closes. If Purchaser gives Seller
written notice on or before the last day of the Due Diligence Period of Purchaser’s election to terminate this Agreement, then this Agreement shall be deemed terminated and, thereafter, upon notice by Purchaser to Title Company, the Earnest
Money shall be delivered to Purchaser and neither party shall have any further liability to the other hereunder except for any provisions which are expressly stated to survive the termination hereof. 
  
 (h) Provided this Agreement has not terminated in accordance with Section
2.3(g), upon the expiration of the Due Diligence Period, Purchaser shall be deemed to have accepted the Property in its condition as of the end of the Due Diligence Period (subject to Purchaser’s rights pursuant to any conditions to the
Closing, representation and warranties, indemnities are similar matter provided for hereunder), and Purchaser shall be deemed to represent to Seller that Purchaser has concluded whatever studies, tests and investigations Purchaser desires relating
to the Property, and that Purchaser has waived its right to terminate this Agreement under this Section 2.3. Except to the extent expressly provided herein to the contrary, Seller shall have no obligation to bring any action or proceeding or
otherwise to incur any expense whatsoever to eliminate any alleged deficiency in the Property discovered by Purchaser during the Due Diligence Period and Purchaser shall be deemed to have waived any claim with respect thereto. 
  
 (i) Except as specifically provided elsewhere in this Agreement, Seller makes
no representations or warranties as to the truth, accuracy, completeness, methodology of preparation or otherwise concerning the Property Information or any engineering or environmental reports or any other materials, data or other information
supplied to Purchaser in connection with Purchaser’s inspection of the Property (e.g., that such materials are complete, accurate or the final version thereof, or that such materials are all of such materials as are in Seller’s
possession). It is the parties’ express understanding and agreement that such materials are provided only for Purchaser’s convenience in making its own examination and determination as to whether it wishes to consummate the purchase
contemplated by this Agreement. In all events, Purchaser hereby covenants and agrees not to disclose to third parties the Property Information or the results of any reports of investigations or tests concerning the Property performed by or at the
request of Purchaser (the “Purchaser’s Results”), except to the extent required under applicable law. The Property Information and Purchaser’s Results are hereinafter referred to collectively as 

  

 11 

 
the “Due Diligence Documentation.” The foregoing covenant shall survive the termination of this Agreement. 
  
 (j) Unless Seller expressly otherwise agrees in writing or as required under
applicable laws, Purchaser agrees that the Due Diligence Documentation (exclusive of any matters that are publicly available) is confidential and shall not be disclosed to any other Person except those assisting Purchaser or Purchaser’s
prospective lenders with the transaction or employees of the Securities and Exchange Commission in connection with Purchaser’s initial public offering process, and affiliates of Purchaser, and then only upon Purchaser making such Persons aware
of the confidentiality restriction and directing such Persons to comply with the confidentiality obligations contained herein. Prior to Closing, Purchaser agrees not to use or allow to be used any such Due Diligence Documentation for any purpose
other than to determine whether to proceed with the contemplated purchase. In the event Purchaser becomes legally compelled to disclose all or any part of the Due Diligence Documentation, Purchaser will provide Seller with prompt written notice so
that Seller may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained prior to the time Purchaser is obligated to
disclose all or any part of the Due Diligence Documentation, Seller will waive compliance with the provisions of this Agreement to allow Purchaser to comply with such legal obligations. 
  
 (k) Purchaser hereby agrees that prior to the Closing Date, Purchaser will not release or cause or permit to be released any
press notices, or otherwise announce or disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the terms, conditions or substance of this Agreement or the transactions contemplated herein, without first obtaining the
written consent of Seller. It is understood that the foregoing shall not preclude Purchaser from discussing the substance or any relevant details of the transactions contemplated in this Agreement to the extent such matters are publicly available or
with any of its attorneys, accountants, professional consultants, or employees of the Securities and Exchange Commission, analysts, underwriters, lenders or potential investors (and any attorneys, accountants, professional consultants or employees
of the same) in connection with Purchaser’s initial public offering, as the case may be, or prevent Purchaser hereto from complying with any applicable laws, including, without limitation, governmental regulatory, disclosure, tax and securities
reporting requirements. 
  
 (l) Purchaser shall indemnify and hold
Seller and Seller’s Affiliates harmless from and against any and all claims, demands, causes of action and actual losses, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees and disbursements) suffered
or incurred by Seller or any of Seller’s Affiliates arising out of or in connection with a breach by Purchaser or Purchaser’s Agents of the provisions of this Section 2.3. In addition to any other remedies available to Seller, Seller shall
have the right to seek equitable relief, including, without limitation, injunctive relief or specific performance, against Purchaser or Purchaser’s Agents in order to enforce the provisions of this Section 2.3. 
  
 (m) In the event this Agreement is terminated or fails to close for any
reason whatsoever, upon Seller’s request, Purchaser and Purchaser’s Agents shall promptly deliver to Seller copies of the Due Diligence Documentation in the possession of Purchaser and Purchaser’s Agents, except with respect to those
item that Purchaser, in its reasonable judgment, 

  

 12 

 
believes is proprietary information of the Person that prepared such materials or otherwise it is legally prohibited from delivering such materials to
Seller. 
  
 (n) The provisions of this Section 2.3 shall survive
the termination of this Agreement. 
  
 2.4 Title and
Survey. 
  
 (a) Seller has delivered to Purchaser copies of:
(1) the Title Commitment; (2) all documents relating to title exceptions referred to in the Title Commitment; and (3) the Survey Purchaser hereby acknowledges that Purchaser has approved all matters set forth in the Title Commitment and Survey, and
such matters are deemed Permitted Encumbrances. 
  
 (b) As soon as
is reasonably practicable (and in any event at least twenty (20) days) prior to Closing, Seller shall cause the Survey to be certified to Purchaser, Purchaser’s lender and the Title Company and updated to reflect a date not earlier than ninety
(90) days prior to the Closing Date.  
  
 (c) All costs
incurred for title searches and preparation of the Title Commitment, and all title premiums for an extended coverage title policy (including all costs of endorsements requested by Purchaser) shall be paid by Seller. Purchaser shall be responsible
for and pay all costs and expenses associated with the Survey and any updates thereto. 
  
 (d) Before Closing, Seller agrees to cause to be removed, at Seller’s sole cost and expense, any exception for (1) mechanics’ and materialmen’s liens caused by Seller or its agents, (2) liens relating
to past due taxes with respect to the Property, (3) liens or other title exceptions resulting solely from acts of Seller or its agents occurring on or after the date of this Agreement or (4) other liens or encumbrances which secure other monetary
obligations or (5) any Stub Period Title Matters knowingly or intentionally caused by Seller (collectively, the “Stub Period Must Removes”). If Purchaser becomes aware of any updates to the Title Commitment or Survey disclosed after
the expiration of the Due Diligence Period (and not included in the Title Commitment (the “Stub Period Title Matters”) which are not acceptable to Purchaser, Purchaser shall give written notice to Seller that it disapproves such
Stub Period Title Matters (the “Stub Period Title Objections”) on or before the sooner to occur of three (3) Business Days after receipt of written notice thereof and the Closing. If Purchaser does not deliver a notice of Stub
Period Title Objections, then Purchaser shall be deemed to have approved the applicable Stub Period Title Matters (other than the Stub Period Must Removes). If Purchaser delivers a notice of Stub Period Title Objections, Seller shall have five (5)
days after receipt thereof to notify Purchaser that Seller will either (a) attempt to eliminate or cure such Stub Period Title Objections or make arrangements to have such Stub Period Title Objections eliminated, cured or removed from title by
bonding or otherwise in a manner reasonably acceptable to Purchaser at or prior to Closing, provided that Seller may extend the Closing for such period as required to effect such cure, but not beyond thirty (30) days, or (b) elect not to cause such
Stub Period Title Objections to be removed; provided, however, that Seller shall be obligated to remove, at no cost or expense to Purchaser, the Stub Period Must Removes. If Seller gives Purchaser notice under clause (b) above or fails to respond to
Purchaser’s notice of Stub Period Title Objections within said five (5) day period, Purchaser shall have three (3) Business Days in which to notify Seller that Purchaser will either waive such objections and proceed with the purchase and take
title to 

  

 13 

 
the Property subject to such Stub Period Title Objections with no adjustment to the Purchase Price, other than the cost to cure the Stub Period Title
Objections up to a maximum of $500,000 in the aggregate or that Purchaser will terminate this Agreement. If this Agreement is terminated pursuant to the foregoing provisions of this paragraph, neither party will have any further rights or
obligations hereunder (except for any obligations which are expressly stated to survive the termination hereof), the Earnest Money shall be returned to Purchaser, and Seller shall reimburse Purchaser for its actual, reasonable, third-party costs and
expenses, not to exceed $500,000. If Purchaser fails to notify Seller of its election within said three (3) Business Day period, Purchaser shall be deemed to have elected to waive such Stub Period Title Objections. and proceed with the purchase and
take title to the Property subject to such Stub Period Title Objections with no adjustment to the Purchase Price, other than the cost to cure the Stub Period Title Objections up to a maximum of $500,000. Notwithstanding the above, Purchaser hereby
agrees (which obligation shall survive the Closing) to refund to Seller the excess, if any, of (x) any adjustment to the Purchase Price attributable to the Stub Period Title Objections over (y) the actual costs incurred in connection with the cure
of the same. 
  
 2.5 “As-Is” Condition.

  
 (a) PURCHASER ACKNOWLEDGES AND AGREES THAT (i) PURCHASER SHALL
ACCEPT POSSESSION OF THE PROPERTY ON THE CLOSING DATE, “AS IS, WHERE IS, WITH ALL FAULTS,” WITH NO RIGHT OF SETOFF OR REDUCTION IN THE PURCHASE PRICE (EXCEPT TO THE EXTENT EXPRESSLY PROVIDED FOR HEREIN); (ii) EXCEPT FOR SELLER’S
REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 6 AND THE OTHER COVENANTS, REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN (THE “SELLER’S WARRANTIES”), NONE OF SELLER, ITS COUNSEL, ITS SALES AGENTS, NOR ANY PARTNER, MEMBER,
MANAGER, OFFICER, DIRECTOR, TRUSTEE, BENEFICIARY, EMPLOYEE, AGENT OR ATTORNEY OF SELLER, ITS COUNSEL, OR ITS SALES AGENTS, NOR ANY OTHER PARTY RELATED IN ANY WAY TO ANY OF THE FOREGOING (ALL OF WHICH PARTIES ARE HEREIN COLLECTIVELY CALLED THE
“SELLER’S AFFILIATES”) HAVE OR SHALL BE DEEMED TO HAVE MADE ANY VERBAL OR WRITTEN REPRESENTATIONS, WARRANTIES, PROMISES OR GUARANTEES (WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) TO PURCHASER WITH RESPECT TO THE PROPERTY,
ANY MATTER SET FORTH, CONTAINED OR ADDRESSED IN THE PROPERTY INFORMATION (INCLUDING, BUT NOT LIMITED TO, THE ACCURACY AND COMPLETENESS THEREOF) OR THE RESULTS OF ANY INVESTIGATIONS; AND (iii) PURCHASER HAS CONFIRMED INDEPENDENTLY ALL INFORMATION
THAT IT CONSIDERS MATERIAL TO ITS PURCHASE OR THE TRANSACTION. PURCHASER SPECIFICALLY ACKNOWLEDGES THAT, EXCEPT FOR SELLER’S WARRANTIES (AS SUCH TERM IS HEREIN DEFINED), PURCHASER IS NOT RELYING ON (AND SELLER AND EACH OF SELLER’S
AFFILIATES DOES HEREBY DISCLAIM AND RENOUNCE) ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, FROM SELLER OR ANY SELLER’S AFFILIATES, AS TO: (1) THE
OPERATION OF THE REAL PROPERTY OR THE INCOME POTENTIAL, USES, OR MERCHANTABILITY OR FITNESS OF ANY PORTION OF THE REAL PROPERTY FOR A PARTICULAR PURPOSE; (2) THE PHYSICAL CONDITION OF 

  

 14 

 
THE PROPERTY OR THE CONDITION OR SAFETY OF THE REAL PROPERTY OR ANY IMPROVEMENTS THEREON, INCLUDING, BUT NOT LIMITED TO, PLUMBING, SEWER, HEATING AND
ELECTRICAL SYSTEMS, ROOFING, AIR CONDITIONING, FOUNDATIONS, SOILS AND GEOLOGY, INCLUDING ANY HAZARDOUS SUBSTANCE, LOT SIZE, OR SUITABILITY OF THE REAL PROPERTY OR ANY IMPROVEMENTS THEREON FOR A PARTICULAR PURPOSE; (3) THE PRESENCE OR ABSENCE,
LOCATION OR SCOPE OF ANY HAZARDOUS SUBSTANCE IN, AT, OR UNDER THE PROPERTY; (4) WHETHER THE PLUMBING OR UTILITIES ARE IN WORKING ORDER; (5) THE HABITABILITY OR SUITABILITY FOR OCCUPANCY OF ANY STRUCTURE AND THE QUALITY OF ITS CONSTRUCTION; (6)
WHETHER THE IMPROVEMENTS ARE STRUCTURALLY SOUND, IN GOOD CONDITION, OR IN COMPLIANCE WITH APPLICABLE MUNICIPAL, COUNTY, STATE OR FEDERAL STATUTES, CODES OR ORDINANCES; (7) THE DIMENSIONS OF THE PROPERTY OR THE ACCURACY OF ANY FLOOR PLANS, SQUARE
FOOTAGE, LEASE ABSTRACTS, SKETCHES, REVENUE OR EXPENSE PROJECTIONS RELATED TO THE PROPERTY; (8) THE OPERATING PERFORMANCE, THE INCOME AND EXPENSES OF THE PROPERTY OR THE ECONOMIC STATUS OF THE PROPERTY; (9) THE ABILITY OF PURCHASER TO OBTAIN ANY AND
ALL NECESSARY GOVERNMENTAL APPROVALS OR PERMITS FOR PURCHASER’S INTENDED USE AND DEVELOPMENT OF THE PROPERTY; AND (10) THE LEASING STATUS OF THE PROPERTY OR THE INTENTIONS OF ANY PARTIES WITH RESPECT TO THE NEGOTIATION AND/OR EXECUTION OF ANY
LEASE FOR ANY PORTION OF THE PROPERTY. 
  
 (b) PURCHASER AGREES
THAT, EXCEPT AS OTHERWISE SET FORTH HEREIN, THERE IS NO OBLIGATION ON THE PART OF SELLER OR OWNER FOR THE BENEFIT OF PURCHASER TO MAKE ANY CHANGES, ALTERATIONS OR REPAIRS TO THE PROPERTY OR TO CURE ANY VIOLATIONS OF LAW OR TO COMPLY WITH THE
REQUIREMENTS OF ANY INSURER. PURCHASER ACKNOWLEDGES AND AGREES THAT PURCHASER’S OBLIGATIONS HEREUNDER SHALL REMAIN IN FULL FORCE AND EFFECT WITH PURCHASER HAVING NO RIGHT TO DELAY THE CLOSING OR TERMINATE THIS AGREEMENT REGARDLESS OF ANY FACTS
OR INFORMATION LEARNED BY PURCHASER AFTER THE DUE DILIGENCE PERIOD, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, THE CONDITIONS PRECEDENT SET FORTH IN SECTION 4 BELOW. 
  
 (c) PURCHASER, FOR PURCHASER AND PURCHASER’S SUCCESSORS AND ASSIGNS,
HEREBY FULLY AND IRREVOCABLY RELEASES OWNER, TENANT AND SELLER’S AFFILIATES FROM, AND WAIVES ALL CLAIMS AND LIABILITY AGAINST OWNER, TENANT AND SELLER’S AFFILIATES FOR OR ATTRIBUTABLE TO THE FOLLOWING: 
  
 (i) ANY AND ALL STATEMENTS OR OPINIONS HERETOFORE OR
HEREAFTER MADE, OR INFORMATION FURNISHED, BY OWNER, TENANT OR SELLER’S AFFILIATES TO PURCHASER OR PURCHASER’S AGENTS, EXCEPT FOR SELLER’S WARRANTIES (AS SUCH TERM IS HEREIN DEFINED); AND 
  

 15 

 (ii) ANY STRUCTURAL, PHYSICAL OR ENVIRONMENTAL CONDITION AT THE PROPERTY, INCLUDING
WITHOUT LIMITATION, CLAIMS OR LIABILITIES RELATING TO THE PRESENCE, DISCOVERY OR REMOVAL OF ANY HAZARDOUS SUBSTANCE IN, AT, ABOUT OR UNDER THE PROPERTY, OR FOR, CONNECTED WITH OR ARISING OUT OF ANY AND ALL CLAIMS OR CAUSES OF ACTION (EXCEPT FOR
SELLER’S WARRANTIES) BASED UPON CERCLA (COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT OF 1980, 42 U.S.C. §9601 ET SEQ., AS AMENDED BY SARA [SUPERFUND AMENDMENT AND REAUTHORIZATION ACT OF 1986] AND AS MAY BE
FURTHER AMENDED FROM TIME TO TIME), THE RESOURCE CONSERVATION AND RECOVERY ACT OF 1976, 42 U.S.C. §6901 ET SEQ., OR ANY RELATED CLAIMS OR CAUSES OF ACTION OR ANY OTHER FEDERAL OR STATE BASED STATUTORY OR REGULATORY CAUSES OF ACTION FOR
ENVIRONMENTAL CONTAMINATION AT, IN OR UNDER THE PROPERTY, OTHER THAN WITH RESPECT TO CLAIMS EXPRESSLY COVERED BY SELLER’S INDEMNITY CONTAINED IN SECTION 12.1 HEREOF 
  
 (d) Purchaser’s failure, for any reason whatsoever, to elect to terminate this Agreement shall be deemed an
acknowledgment by Purchaser that Purchaser has inspected the Property, is thoroughly acquainted with and accepts its condition, and has reviewed, to the extent necessary in its discretion, all the Due Diligence Documentation. Purchaser acknowledges
and agrees that the provisions of this Section 2.5 were a material factor in Seller’s acceptance of the Purchase Price and Seller is unwilling to consummate the transaction contemplated by this Agreement unless Owner, Tenant and Seller’s
Affiliates are expressly released, but only to the extent expressly set forth herein. 
  
 (e) Notwithstanding anything to the contrary herein, the provisions of this Section 2.5 shall survive the termination of this Agreement and the Closing and shall not be merged therein. 
  
 SECTION 3. CLOSING. 
  
 3.1 Closing. The Closing (herein called the
“Closing”) of this transaction shall take place by escrow with Title Company at the offices of Seller’s counsel, Katten Muchin Zavis Rosenman, 575 Madison Avenue, New York, New York, on May 15, 2005 (the “Closing
Date”), unless extended by the terms of this Agreement, or at such other time and place as the parties may agree upon in writing. Purchaser shall have the right, from time-to-time, to elect to extend the Closing Date to no later than July
15, 2005 (the “Outside Closing Date”) upon (i) delivery of written notice to Seller within five (5) days prior to the originally scheduled Closing Date, and (ii) remittance to the Title Company of an additional Seven Hundred Eighty
Thousand Nine Hundred Dollars ($780,900.00) to be held and maintained by Title Company as Earnest Money in accordance with the terms of the Escrow Agreement. 
  

 16 

 SECTION 4. CONDITIONS TO PURCHASER’S OBLIGATION TO CLOSE. 
  
 4.1 Purchaser’s Conditions. The obligation of the Purchaser to
complete the purchase of the Property on the Closing Date shall be subject to the satisfaction or waiver of the following conditions precedent as of the Closing Date (in addition to any other conditions set forth elsewhere in this Agreement):

  
 (a) Closing Documents. At the Closing (or at such
earlier times as otherwise specified in this Agreement), Seller shall deliver (or cause to be delivered) to Title Company (for disbursement to Purchaser, as applicable) the following: 
  
 (i) A special warranty deed, in the form of Schedule I attached hereto, with respect to the portion
of the Real Property and the Improvements held in fee, and an assignment and assumption of leases agreement, in the form of Schedule P attached hereto with respect to the portion of the Real Property and the Improvements held in leasehold,
duly executed and acknowledged by Owner, conveying good and marketable title to the Real Property and the Improvements, free from all liens and encumbrances other than the Permitted Encumbrances; 
  
 (ii) Bills of Sale duly executed by each of Owner and Tenant
to Purchaser or otherwise as directed by Purchaser, and Assignment Agreements from duly executed by Owner and Tenant to Purchaser or otherwise as directed by Purchaser, in the forms set forth in Schedule J-1 and Schedule J-2 attached
hereto, with respect to all of Seller’s right, title and interest in, to and under the Property (other than the Real Property); 
  
 (iii) A FIRPTA Certificate executed by Owner; 
  
 (iv) Written evidence reasonably satisfactory to Purchaser that the Lease has been terminated and is of no further force or effect;

  
 (v) An ALTA Statement, if required, together
with any other affidavits of title required by the Title Company executed by Owner; 
  
 (vi) To the extent not previously delivered to Purchaser and to the extent the same are in Seller’s possession or control, an
original copy of each of the Ground Leases, Contracts and Permits and Approvals, including, without limitation, any contracts entered into by Owner after the date hereof and in accordance with Section 8 hereof, if any; 
  
 (vii) All plans and specifications concerning the Property
in Seller’s possession and control; 
  
 (viii) A closing statement executed by Seller; 
  
 (ix) Resolutions of Owner and Tenant, certified by the secretary of such entity as having been duly and validly adopted and in full force and effect authorizing the execution and delivery of this Agreement and the
transactions contemplated by this Agreement; 
  
 (x) Certificates of good standing (or equivalent) of each of Owner and Tenant issued by the Secretary of Sate of the States of Delaware and Texas, dated not more than thirty (30) days prior to the Closing Date, and certified copies of the
Articles of Incorporation and Bylaws of Owner, and of the Articles of Formation and Operating Agreement of Tenant, each dated as of the Closing; 
  
 (xi) A notice to the counter-parties to the Ground Leases, Contracts and to all parties required under the documents provided with the
Title Commitment, in accordance with 

  

 17 

 
same, advising of the Closing and directing all future communications to be directed to Purchaser; 
  
 (xii) An original estoppel certificate duly executed by each
of the tenants to the Space Lease, in the form of Schedule J-3 attached hereto; 
  
 (xiii) A duly executed Assignment and Assumption of the Economic Development Program Agreement in a form reasonably acceptable to the
parties hereto and the City of Fort Worth (the “Assignment of EDPA”), and a copy of the consent of the City of Fort Worth to the execution, delivery and performance of such Assignment of EDPA; 
  
 (xiv) A duly executed Joinder in the form of Schedule
S attached hereto executed by Capital Hotel Investments, LLC, a Delaware limited liability company; 
  
 (xv) Combinations to all safes, keys, codes and passcards relating to the operation of the Real Property and the business conducted
thereon; 
  
 (xvi) A termination of any
memorandum of lease evidencing the Lease, in the proper form for recording in the appropriate jurisdiction(s); 
  
 (xvii) A certificate regarding the Ground Leases duly executed by the General Manager of the hotel operated at the Property, in form and
substance substantially the same as that certificate attached hereto as Schedule V, and which shall inure to the benefit of Purchaser and Purchaser’s designated lender and their respective successors and assigns. 
  
 (xviii) Such other documents or instruments as are
reasonably necessary and consistent with local practice (such as affidavits or certificates normally required by title insurers) in order to carry out the transactions contemplated under this Agreement. 
  
 (b) Condition of Property, Performance By Seller, Etc. 
  
 (i) The physical condition of the Improvements shall be
substantially the same in all material respects on the Closing Date as on the date hereof, reasonable wear and tear excepted, unless the alteration of said physical condition is the result of fire or other casualty, in which event the terms and
provisions of Section 10 shall govern and control. 
  
 (ii) Purchaser shall have received the Audited Financial Statements and the financial condition and results of operations of the Property as represented by such Audited Financial Statements shall not materially deviate from the financial
condition and results of operations of the Property as represented by the Operating Statements. 
  
 (iii) No temporary restraining order, preliminary or permanent injunction or other order issued by any court of competent jurisdiction or
other legal restraint or prohibition preventing the consummation of the transactions contemplated hereunder shall be in effect, nor shall any proceeding be brought by any third party, administrative agency or commission or other governmental
authority or instrumentality, domestic or foreign, seeking any of the foregoing be pending; nor shall there be any action taken, or any statute, rule, regulation, injunction order or decree enacted, entered, enforced, promulgated, issued or deemed
applicable 

  

 18 

 
to the transactions contemplated hereunder which makes the consummation of such transactions illegal. 
  
 (iv) Seller shall have performed all of its covenants,
undertakings and obligations, and shall have complied with all conditions, required by this Agreement to be performed or complied with by Seller at or prior to Closing. 
  
 (v) Manager shall have consented to the consummation of the transactions contemplated hereunder (including,
without limitation, the transfer of the Real Property and the assignment of the Management Agreement to (or as directed by) Purchaser and the respective interests of Owner and Tenant under the Owner’s Agreement to (or as directed by) Purchaser
and operating tenant) and shall have delivered to Purchaser a duly executed estoppel and consent certificate substantially in the form of Schedule J-4 attached hereto. 
  
 (vi) The Mezzanine Loan shall have been satisfied and all liens in connection therewith shall have been
released. 
  
 (vii) No action shall be pending or
threatened for the condemnation or taking by power of eminent domain of all or any portion of the Improvements or any material portion of the Real Property. 
  
 (viii) All Permits and Approvals and Manager Permits (including a liquor license) necessary for the current use, occupancy and operation
of the Real Property or the business conducted in accordance with historical operations shall be in full force and effect. 
  
 (ix) The Lease shall have been terminated. 
  
 (c) Title Policy. The Title Company shall be prepared to issue an extended coverage title insurance policy to the Purchaser with respect to the
Real Property and Improvements insuring (a) good and clear record and marketable fee simple title to the Real Property in Purchaser, subject only to Permitted Encumbrances, and (b) such affirmative insurance and endorsements respecting the Real
Property as may be reasonably requested by Purchaser and which affirmative insurance coverage so requested is customarily granted by national title insurance companies in a TLTA fee owner’s policy of title insurance (Form T-1) ( the
“Title Policy”). In furtherance thereof, Seller agrees to provide Title Company with an executed affidavit in the form required by the Title Company to enable Title Company to issue the Title Policy. 
  
 (d) Representations and Warranties of Seller. The representations and
warranties of Seller contained in Section 6 are true and correct and complete in all material respects as of the Closing Date. 
  
 (e) Related Agreements. All conditions precedent to the closing of the transactions contemplated under the Related Agreements shall have been
satisfied in accordance with the terms and provisions of each of the respective Related Agreements and the actual simultaneous closing of the transactions set forth in the Related Agreements. 
  

 19 

 4.2 Failure of Condition. If Seller, after reasonable efforts, is unable to satisfy the conditions
precedent described in this Section 4 or elsewhere in this Agreement, Purchaser shall have the option, as its sole and exclusive remedy (except to the extent expressly provided for otherwise herein) of either terminating this Agreement and receiving
a refund of the Earnest Money, or proceeding with the Closing; provided, however, that with respect to a failure of the condition described in Section 4(b)(vi) and Section 4(d) above (subject to the terms of Section 6.5 below), Seller also shall
reimburse Purchaser for its actual, reasonable, third party costs and expenses, not to exceed $500,000 (less any amounts previously reimbursed by the sellers under one or more of the Related Agreements for the actual, reasonable, third party costs
and expenses of the purchasers thereunder). 
  
 4.3
Cooperation. Purchaser agrees to reasonably cooperate with Seller and with any third parties from whom consent to and approval of the transactions contemplated by this Agreement is requested to obtain such consents and approvals. Purchaser
shall, at its cost and expense and within five (5) Business Days after request, deliver to any third parties from whom consents and approvals are requested, any and all information and materials regarding Purchaser reasonably requested by such third
parties. 
  
 SECTION 5. CONDITIONS TO SELLER’S
OBLIGATION TO CLOSE. 
  
 5.1 Seller’s
Conditions. The obligation of Seller to complete the sale of the Property on the Closing Date is subject to the satisfaction or waiver of the following conditions precedent as of the Closing Date (in addition to any other conditions set forth
elsewhere in this Agreement): 
  
 (a) Purchase Price. The
Purchaser shall pay to Seller the Purchase Price as provided in Section 2.1. 
  
 (b) Closing Documents. The Purchaser shall have delivered to Seller duly executed and acknowledged counterparts of the documents described in Section 4.1(a), where applicable; 
  
 (c) Performance by Purchaser. Purchaser shall have performed all of
its covenants, undertakings and obligations, and shall have complied with all conditions, required by this Agreement to be performed or complied with by Purchaser at or prior to Closing. 
  
 (d) Related Agreements. All conditions precedent to the closing of the transactions contemplated under the Related
Agreements shall have been satisfied in accordance with the terms and provisions of each of the respective Related Agreements and the actual simultaneous closing of the transactions set forth in the Related Agreements. 
  
 5.2 Cooperation. Seller agrees to reasonably cooperate with Purchaser
and with any third parties from whom consent to and approval of the transactions contemplated by this Agreement is requested to obtain such consents and approvals. Seller shall, at its cost and expense and within five (5) Business Days after
request, deliver to any third parties from whom consents and approvals are requested, any and all information and materials regarding Seller reasonably requested by such third parties. 
  

 20 

 SECTION 6. REPRESENTATIONS AND WARRANTIES OF SELLER. 
  
 6.1 Seller’s Representations. Each of Owner and Tenant jointly
and severally represents and warrants to Purchaser that the following matters and true and correct as of the as of the date hereof: 
  
 (a) Status and Authority of Seller. 
  
 (i) Owner is a limited partnership, duly organized, validly existing and in good standing under the laws of the State of Delaware and has
all requisite power and authority under the laws of such state and its charter documents to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Owner is duly qualified to transact
business in the state in which the Real Property is located. Neither Owner nor any Person owning or controlling any interest in Owner is acting, directly or indirectly, for or on behalf of any Person, group or nation named by the United States
Treasury Department Office of Foreign Assets Control (OFAC) as a ‘Specifically Designated National and Blocked Person,’ or for or on behalf of any Person, group or nation designated in Presidential Executive Order 13224 as a person who
commits, threatens to commit, or supports terrorism. 
  
 (ii) Tenant is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority under the laws of such state and its charter documents to enter into and
perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Tenant is duly qualified to transact business in the state in which the Real Property is located. Neither Tenant nor any Person owning or
controlling any interest in Owner is acting, directly or indirectly, for or on behalf of any Person, group or nation named by the United States Treasury Department Office of Foreign Assets Control (OFAC) as a ‘Specifically Designated National
and Blocked Person,’ or for or on behalf of any Person, group or nation designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism. 
  
 (b) Action of Seller. Seller has taken all necessary action to
authorize the execution, delivery and performance of this Agreement and any document to be delivered hereunder by Seller at or prior to the Closing. This Agreement has been duly executed and delivered by each of Owner and Tenant and constitutes the
valid and binding obligation of each of Owner and Tenant, enforceable against each of Owner and Tenant in accordance with its terms, and upon the execution and delivery of any document to be delivered by Owner or Tenant at or prior to the Closing,
such document shall constitute the valid and binding obligation and agreement of Owner or Tenant, as the case may be, enforceable against such party in accordance with its terms, in each case except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application affecting the rights and remedies of creditors and general principles of equity. 
  

(c) No Violations of Agreements. Neither the execution, delivery or performance of this Agreement by Seller, nor compliance with the terms and
provisions hereof, do or will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under any applicable law or regulation, judgment, indenture, mortgage, deed of trust, note, evidence of
indebtedness or any other agreement or instrument by which Owner or Tenant is 

  

 21 

 
bound, or result in the creation of any lien, charge or encumbrance upon the Property or any other assets of Owner or Tenant. 
  
 (d) Litigation. Except as set forth in Schedule T, neither
Owner nor Tenant has received written notice of and, to Seller’s Knowledge, Manager has not received written notice of nor is any action or proceeding is pending or threatened, and neither Seller nor Owner has received written notice of and, to
Seller’s Knowledge, Manager has not received written notice of nor is any investigation looking toward such an action or proceeding has begun, which (1) questions the validity of this Agreement or any action taken or to be taken pursuant
hereto, (2) will result in any material adverse change in the business, operation, affairs or condition of the Property, (3) may result in or subject the Property to a material liability, (4) involves condemnation of eminent domain proceedings
against any part of the Property, or (5) with respect to any matters involving personal injury or death or property damage is not entirely covered by Seller’s existing insurance, which coverage shall continue as to outstanding matters after
Closing. 
  
 (e) Title to Property. The Real Property is
owned by Owner, and as of the Closing Date, shall be free and clear of any liens or encumbrances other than Permitted Encumbrances. Owner and Tenant collectively own the Property (other than the Real Property), and as of the Closing Date, shall be
free and clear of any liens or encumbrances other than Permitted Encumbrances, to the extent applicable. 
  
 (f) Consents. No consent of any Person, and no license, approval, or authorization of, or notice, registration, filing or declaration with, any
governmental authority is required in connection with the execution and delivery or performance by Seller of its obligations under this Agreement or the consummation of the transactions contemplated hereunder other than pursuant to that certain
Mezzanine Loan from Lowe Northwest Investor Properties I, L.L.C., a Washington limited liability company, to BCM/CHI Worthington, Inc., a Maryland corporation, made pursuant to a certain Mezzanine Loan Agreement dared as of December 31, 2002, and
that certain Mezzanine Loan from Marriott International Capital Corporation, a Delaware corporation to Capital Hotel Investments, LLC, a Delaware limited liability company, and Capital Hotel Investments Financing I, LLC, a Delaware limited liability
company, made pursuant to a certain Amended and Restated Mezzanine Loan Agreement dated as of December 31, 2002. (collectively, the “Mezzanine Loan”) 
  
 (g) Existing Agreements, Etc. To Seller’s Knowledge, other than (a) documents recorded in the public records,
(b) the Ground Leases, Contracts and Manager Contracts, and (c) agreements and easements with governmental bodies and utility companies which are reasonably necessary for the development and operation of the Property, there are no agreements,
leases, licenses or occupancy agreements affecting the Property which will be binding on Purchaser and operating tenant or the Property subsequent to the Closing Date. 
  
 (h) Compliance With Law. To Seller’s Knowledge: (a) Owner, Tenant and Manager have complied with, and none is in
violation of, any applicable federal, state or local statutes, laws, rules and regulations affecting the Real Property or the business conducted thereon; (b) the Property and the use and operation thereof does not violate any federal, state,
municipal and other governmental statutes, ordinances, bylaws, rules, regulations or any other legal 

  

 22 

 
requirements, including, without limitation, those relating to construction, occupancy, zoning, adequacy of parking, environmental protection, occupational
health and safety and fire safety applicable thereto; and (c) there are presently, or at the Closing there will be, in full force and effect all Permits and Approvals and Manager Permits necessary for the operation of the Real Property and the
business conducted thereon in accordance with historical operations. To Seller’s knowledge, each of Owner, Tenant and Manager are in compliance and in good standing with all permits, approvals, licenses, grants and other similar items from
governmental entities relating to, or affecting the Property, including, without limitation, liquor licenses. Neither Owner nor Tenant, to Seller’s Knowledge, Manager, has received written notice that the present development, improvement, use
and operation of the Real Property and of the hotel business operated thereon are not in compliance with or violate any local, state or federal laws, ordinances, resolutions, codes, regulations or requirements of any kind or nature or any Permit and
Approval or Manager Permit, including, without limitation, zoning, adequacy of parking, land use laws and building codes, or any private covenants, restrictions, or setbacks. 
  
 (i) Not a Foreign Person. Owner is not a “foreign person” within the meaning of Section 1445 of the United
States Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
  
 (j) Hazardous Substances. Except as disclosed in the Environmental Reports and to Seller’s Knowledge, (i) during the period of Owner’s ownership of the Property, no Person stored or disposed of,
released or caused the release of any Hazardous Substance on the Property or any portion thereof, the removal of which is required or the maintenance of which is prohibited or penalized by any applicable federal, state or local statutes, laws,
ordinances, rules or regulations, (ii) prior to Owner’s period of ownership of the Property, no Person stored or disposed of (or engaged in the business of storing or disposing of) or released or caused the release of any Hazardous Substance on
the Property, or any portion thereof, the removal of which is required or the maintenance of which is prohibited or penalized by any applicable federal, state or local statutes, laws, ordinances, rules or regulations, and (iii) the Property is free
from any Hazardous Substance, other than (x) motor oil and gasoline contained in or discharged from vehicles not used primarily for the transport of motor oil or gasoline, unless the subject of a greater than de minimis release and (y) materials
which are stored or used in the ordinary course of the occupancy at (or Seller’s or Manager’s operation of) the Property, and which are stored, used, held, or disposed of in compliance with all applicable laws. 
  
 (k) Insurance. To Seller’s Knowledge, Schedule M contains
a list (prepared by Manager) of all fire, liability, title and other forms of insurance (exclusive of workers compensation) applicable to the Property or the operation on the business conducted thereon maintained by Manager pursuant to the
Management Agreement. To Seller’s Knowledge, all insurance policies applicable to the Property are in full force and effect, all premiums with respect thereto covering all periods up to and including the Closing Date have been paid, no notice
of cancellation or termination has been received with respect to any such policy, such policies are sufficient for compliance with (i) all requirements of law and (ii) the Ground Leases and all Contracts and Manager Contracts, and are valid,
outstanding and enforceable policies. Neither Owner nor Tenant nor, to Seller’s Knowledge, Manager, has received written notice from any insurance carrier of defects or inadequacies in the Property which, if uncorrected, 

  

 23 

 
would result in a termination of insurance coverage or an increase in the premiums charged therefor. 
  
 (l) Contracts. Schedule A sets forth a true and complete list
of all Contracts. The Contracts, and, to Seller’s Knowledge, the Manager Contracts, were entered into in the ordinary course and in good faith in connection with the ownership and operation of the Property for its intended use. Neither Owner,
nor, to Seller’s Knowledge, any other party to the Contracts or Manager Contracts, is in default of its obligations under any Contract or Manager Contract, as the case may be, nor, to Seller’s Knowledge, have any parties to the Contracts
or Manager Contracts made any claims for offsets or abatement. 
  
 (m) [INTENTIONALLY OMITTED] 
  
 (n) [INTENTIONALLY
OMITTED] 
  
 (o) Taxes. Within the times and in the manner
prescribed by law, Seller has filed all federal, state and local tax returns required by law and has paid all applicable sales, use, withholding, real and personal property, income, FICA, employment and other taxes, assessments and penalties due and
payable, in connection with the Property. All such tax returns were and are true, complete and correct in all material respects. There are no proceedings pending, or to the best of Seller’s knowledge, threatened with or by any taxing
authorities as to taxes of any nature payable by Seller or its affiliates in connection with the Property. 
  
 (p) [INTENTIONALLY OMITTED] 
  
 (q) [INTENTIONALLY OMITTED] 
  
 (r) Employees. Neither Owner nor Tenant has any employees, nor is a party to any oral or written employment contracts or agreements with respect to
the hotel operated from the Real Property (including, without limitation, union or other collective bargaining agreements). To Seller’s Knowledge, there are no threatened strikes, work stoppages, lockout, union organizing efforts or unfair
labor practice charges at the hotel operating from the Real Property. 
  
 (s) Operating Statements. To Seller’s Knowledge, the Operating Statements are correct and complete and present fairly the results of operations of the hotel operating from the Real Property for the periods covered thereby. To
Seller’s Knowledge, each of the Financial Statements fairly presents Owner’s and Tenant’s respective financial condition, assets and liabilities as of their respective dates and the results of operations and cash flows for the periods
related thereto. As used herein, the term “Financial Statements” means the following Financial Statements for each of Owner and Tenant— a balance sheet as of March 25, 2005 and as of December 31, 2004 and income statements and
a statement of cash flows for the period ending March 25, 2005 and for the fiscal year ending December 31, 2004. 
  
 (t) [INTENTIONALLY OMITTED] 
  
 (u) Seller Knowledge Group. The persons designated on Schedule D under “Seller Knowledge Group” are familiar with the business and
affairs of Owner and Tenant and with the Property and the transactions contemplated under this Agreement, are in the best position to have 

  

 24 

 
Knowledge concerning the scope of the representations. There are no other individuals with greater Knowledge concerning such matters. 
  
 (v) Ground Leases. The Ground Leases, true and complete copies of
which have been delivered to Purchaser, are in full force and effect and neither Owner, as lessee, nor, to Seller’s knowledge, the lessor thereunder, is in default in the performance of any of its obligations thereunder, nor has any event
occurred which could or may give either party thereunder the right to give a notice of default to the other; no litigation or, to Seller’s knowledge, any threat thereof, exists between Owner, as lessee, and the lessor thereunder, or between the
lessor thereunder or Owner as lessee and any third parties, with respect to the Ground Leases; and the Ground Leases have not been further modified, supplemented or amended in any respect. All rent, charges or other payments due lessor from Owner as
lessee under the Ground Leases have been paid through the date of this Agreement. 
  
 (w) Economic Development Program Agreement. Seller represents to Purchaser that (i) the Economic Development Program Agreement is in full force and effect and, to the best of Seller’s knowledge, Seller, in
its capacity as Owner thereunder, is in full compliance with the terms of the Economic Development Program Agreement and has satisfied all obligations to have been performed thereunder as of the date hereof; (ii) the Phase I Improvements (as defined
in the Economic Development Program Agreement) have been completed and fully paid for, and Seller spent at least $6,700,000.00 in Redevelopment Costs (as defined in the Economic Development Program Agreement) in connection therewith; (iii) as of the
date hereof, Seller has not received any Program Grants (as defined in the Economic Development Program Agreement) under the Economic Development Program Agreement. 
  
 6.2 Survival. The representations and warranties made in this Agreement by Seller are made as of the date hereof and
shall be deemed remade by Seller as of the Closing Date, with the same force and effect as if made on, and as of, such date. The representations and warranties made in this Agreement by Seller in Sections 6.1(f), (h), (j) through and including (l)
and (w) above (collectively, “Seller’s Property Representations”) shall survive the Closing for a period of twelve (12) months following the Closing Date. Any claim that Purchaser may have at any time against Seller for a
breach of any such representation or warranty, whether known or unknown, which is not asserted within such twelve (12) month period will not be valid or effective, and Seller will have no liability with respect thereto. The balance of the
representations made by Seller in this Section 6 shall survive the Closing indefinitely. 
  
 6.3 “As Is” Sale. Except as otherwise expressly provided in this Agreement or any documents to be delivered to Purchaser at the Closing,
Seller disclaims the making of any representations or warranties, express or implied, regarding the Property or matters affecting the Property, whether made by Seller, on Seller’s behalf or otherwise, including, without limitation, the physical
condition of the Property, title to or the boundaries of the Real Property, pest control matters, soil conditions, the presence, existence or absence of any Hazardous Substance or other environmental matters, compliance with building, health,
safety, land use and zoning laws, regulations and orders, structural and other engineering characteristics, traffic patterns, market data, economic conditions or projections, and any other information pertaining to the Property or the market and
physical environment in which it is located. Purchaser acknowledges (i) that Purchaser has entered into this Agreement with the intention of making and relying upon its own 

  

 25 

 
investigation or that of third parties with respect to the physical, environmental, economic and legal condition of the Property other than information
contained within representations, warranties and indemnities contained herein, and (ii) that Purchaser is not relying upon any statements, representations or warranties of any kind, other than those specifically set forth in this Agreement or in any
document to be delivered to Purchaser at the Closing, made by Seller or anyone acting on Seller’s behalf. Purchaser further acknowledges that it has not received from or on behalf of Seller any accounting, tax, legal, architectural,
engineering, property management or other advice with respect to this transaction and is relying solely upon the advice of third party accounting, tax, legal, architectural, engineering, property management and other advisors. Subject to the
provisions of this Agreement, the Purchaser shall purchase the Property in its “as is” condition on the Closing Date. 
  
 6.4 Waiver of Rights by Purchaser. To the extent that Purchaser obtained Knowledge prior to the date hereof that Seller’s representations and
warranties are inaccurate, untrue or incorrect in any way, such representations and warranties shall be deemed modified to reflect Purchaser’s Knowledge. If the Closing occurs, Purchaser hereby expressly waives, relinquishes and releases any
right or remedy available to it at law, in equity or under this Agreement to make a claim against Seller for damages that Purchaser may incur, or to rescind this Agreement and the transaction contemplated hereby, as the result of any of
Seller’s representations or warranties being untrue, inaccurate or incorrect if Purchaser had Knowledge that such representation or warranty was untrue, inaccurate or incorrect at the time of the Closing. 
  
 6.5 Breach of Representations. If after the date hereof, Purchaser
obtains actual Knowledge that any of the representations or warranties made herein by Seller are untrue, inaccurate or incorrect in any material respect, which for purposes of this Section 6.5 shall mean (i) any representations or warranties are
untrue, inaccurate or incorrect, and the aggregate cost to cure the same or aggregate result of the same shall have an adverse effect on the Property in excess of $500,000 (such amount to be determined in the aggregate with the cost to cure or
correct the adverse effect of any untrue, inaccurate or incorrect representations or warranties of the sellers under one or more of the Related Agreements) or (ii) such representation or warranty is untrue, inaccurate or incorrect due to the willful
or intentional action or inaction (where there is a duty to act) of Owner or Tenant (regardless of its financial impact), Purchaser shall give Seller written notice thereof within five (5) days of obtaining such Knowledge (but, in any event, prior
to the Closing). If at or prior to the Closing, either Owner of Tenant obtains Knowledge (whether pursuant to the immediately preceding sentence or otherwise) that any of the representations or warranties made herein by Seller are untrue, inaccurate
or incorrect and the aggregate cost to cure the same or aggregate result of the same is reasonably estimated to have an adverse effect on the Property in excess of $500,000 (such amount to be determined in the aggregate with the cost to cure or
correct the adverse effect of any untrue, inaccurate or incorrect representations or warranties of the sellers under one or more of the Related Agreements), Seller shall give Purchaser written notice thereof within five (5) days of obtaining such
Knowledge (but, in any event, prior to the Closing). In either such event, Seller shall have the obligation to use commercially reasonable efforts to cure or correct the underlying circumstances as necessary to eliminate the adverse effect on the
Property of such breaches or inaccuracies, which commercially reasonable efforts shall include the expenditure of up to $5,000,000 (less any amounts previously expended by the sellers under one or more of the Related Agreements to cure or correct
the adverse effect of any breaches or inaccuracies of any representations or 

  

 26 

 
warranties thereunder) in the aggregate for the cure or correction of all such breaches or inaccuracies and/or mitigate the adverse effect on the Property
arising therefrom; provided, however, that such $5,000,000 limitation shall not apply to Seller’s obligation to make any payment or take any action necessary to cure or mitigate any untrue, inaccurate or incorrect representation or warranty
resulting from the willful or intentional action or failure to act (where the is a duty to act) of Owner or Tenant, and, to the extent such misrepresentation cannot be remedied or cured by Seller (in accordance with the terms hereof) prior to the
Closing Date, Seller shall have the right to extend the Closing Date in order to effectuate such cure or remedy; provided, however, the Closing Date may not be extended for a period of more than (x) five (5) days with respect to the representations
set forth in Section 6.1(e) above and (y) sixty (60) days with respect to all other representations made herein by Seller. If Seller is unable to so cure any such misrepresentation or breach within such five (5) or sixty (60) (as the case may be)
day period, then Purchaser, as its sole remedy shall elect either (A) to waive such misrepresentations or breaches of warranties and consummate the transaction contemplated hereby without any reduction of or credit against the Purchase Price, other
than the reasonable cost to cure such representations or warranties and/or mitigate the adverse effect on the Property arising from the breach of the representations or warranties up to a maximum of $5,000,000 (less any amounts previously expended
by the sellers under one or more of the Related Agreements to cure or correct the adverse effect of any breaches or inaccuracies of any representations or warranties thereunder) in the aggregate (other than with respect to any matter described in
item (ii) above, as to which the amount of such adjustment shall be uncapped) or (B) to terminate this Agreement by written notice given to Seller, in which event this Agreement shall be terminated, the Earnest Money shall be returned to Purchaser
and Seller shall reimburse Purchaser for its actual, reasonable, third party costs and expenses, not to exceed $500,000 (less any amounts previously reimbursed by the sellers under one or more of the Related Agreements for the actual, reasonable,
third party costs and expenses of the purchasers thereunder) in the aggregate; provided, however, that with respect to any matter described in item (ii) above, Purchaser also shall be entitled to liquidated damages in the amount of $2,500,000 (less
any liquidated damages previously paid by the sellers under one or more of the Related Agreements as a result of any the representations or warranties of the sellers thereunder being incorrect due to such sellers’ willful or intentional action
or inaction (where there is a duty to act)), the parties hereto agreeing that the damages by reason of Owner’s or Tenant’s willful or intentional action or inaction (where there is a duty to act) are difficult, if not impossible, to
ascertain, and thereafter, neither party shall have any further rights or obligations hereunder except as provided in any section hereof that by its terms expressly provides that it survives any termination of this Agreement. Notwithstanding the
above, Purchaser hereby agrees (which obligation shall survive the Closing) to refund to Seller the excess, if any, of any (x) adjustment to the Purchase Price attributable to the anticipated cost to cure such representations or warranties and/or
mitigate the adverse effect on the Property arising from the breach of the representations or warranties over (y) the actual cost incurred in connection with the cure and/or mitigation of the same. 
  

 27 

 SECTION 7. REPRESENTATIONS AND WARRANTIES OF PURCHASER. 
  
 7.1 Purchaser’s Representations. Purchaser represents and
warrants to Seller that the following matters and true and correct as of the as of the date hereof: 
  
 (a) Status and Authority of the Purchaser. Purchaser is a corporation duly organized, validly existing under the laws of the State of Maryland, and
has all requisite power and authority under the laws of such state and under its charter documents to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Purchaser has duly qualified
and is in good standing in each jurisdiction in which the nature of the business conducted by it requires such qualification, except where such failure to qualify would not have a material adverse effect on Purchaser or the transactions contemplated
hereby. 
  
 (b) Action of the Purchaser. Purchaser has
taken all necessary action to authorize the execution, delivery and performance of this Agreement, and upon the execution and delivery of any document to be delivered by Purchaser hereunder on or prior to the Closing Date such document shall
constitute the valid and binding obligation and agreement of Purchaser, enforceable against Purchaser in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws of
general application affecting the rights and remedies of creditors and general principles of equity. 
  
 (c) No Violations of Agreements. Neither the execution, delivery or performance of this Agreement by Purchaser, nor compliance with the terms and
provisions hereof, will result in any breach of the terms, conditions or provisions of, or conflict with or constitute a default under, or result in the creation of any lien, charge or encumbrance upon any property or assets of Purchaser, pursuant
to the terms of any indenture, mortgage, deed of trust, note, evidence of indebtedness or any other agreement or instrument by which Purchaser is bound. 
  
 (d) Litigation. No investigation, action or proceeding is pending and, to Purchaser’s Knowledge, no action or proceeding is threatened and no
investigation looking toward such an action or proceeding has begun, which questions the validity of this Agreement or any action taken or to be taken pursuant hereto. 
  
 (e) Prohibited Person. Neither Purchaser nor any Person owning or controlling any interest in Purchaser is acting,
directly or indirectly, for or on behalf of any Person, group or nation named by the United States Treasury Department Office of Foreign Assets Control (OFAC) as a ‘Specifically Designated National and Blocked Person,’ or for or on behalf
of any Person, group or nation designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism. 
  
 (f) Purchaser Knowledge Group. The persons designated on Schedule D under “Purchaser Knowledge Group” are familiar with the
business and affairs of the Purchaser and the transactions contemplated under this Agreement. 
  
 (g) Sufficiency of Funds. As of the Closing Date, Purchaser shall have sufficient funds available (or access to sufficient funds) to consummate the transactions contemplated hereunder. 
  
 7.2 Survival. The representations and warranties made in this
Agreement by Purchaser are made as of the date hereof and shall be deemed remade by Purchaser as of the applicable Closing Date with the same force and effect as if made on, and as of, such date. All 

  

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representations and warranties made in this Agreement by Purchaser shall survive the Closing for a period of twelve (12) months. 
  
 SECTION 8. COVENANTS OF THE SELLER AND TRANSITION. 

 
 Owner and Tenant, jointly and severally, hereby covenant with the
Purchaser as follows: 
  
 8.1 Compliance with Laws, Etc.
From the date of this Agreement to the Closing Date, with respect to the Property, to comply (and to use commercially reasonable efforts to cause Manager to comply) in all material respects, with all laws, regulations and other requirements
affecting the Property from time to time applicable of every governmental body having jurisdiction of the Property or the use or occupancy of the Improvements located on the Real Property. 
  
 8.2 Approval of Agreements. From the date of this Agreement to the
Closing Date, not enter into, or modify, amend or terminate the Ground Leases or any Contract that will survive the Closing, without Purchaser’s prior written consent, which consent shall not be unreasonably withheld or delayed. Seller shall
not exercise any consent rights granted to Owner or Tenant under the Management Agreement or the Owner’s Agreement, without Purchaser’s prior written consent, which consent shall not be unreasonably withheld or delayed. Failure of
Purchaser to consent or expressly withhold its consent stating with specificity the basis of its objection within five (5) Business Days after written request for such consent shall be deemed to constitute consent. 
  
 8.3 Compliance with Agreements. From the date of this Agreement to the
Closing Date, to comply (and to use commercially reasonable efforts to cause Manager to comply) with each and every material term, covenant and condition contained in any Contract, Manager Contract, Ground Lease, Permit or Approval, Manager Permit
or all instruments of record and other agreements affecting the Property (including, without limitation, the Ground Leases). 
  
 8.4 Alterations; Removal of Property. From the date of this Agreement to the Closing Date, to the extent Tenant or Owner has any approval rights
over such matters pursuant to the Management Agreement, to not, without the prior written consent of Purchaser, which consent shall not be unreasonably withheld, perform (nor permit Manager to perform) any alterations to the Property (except as
contemplated herein or required by the Management Agreement), nor remove (nor permit Manager to remove) any equipment or personal property forming a part of the Property, a description of which is contained in Schedule K annexed hereto and
made a part hererof, except such as is replaced by Seller by an article of equal suitability and value, free and clear of any lien or security interest. Purchaser acknowledges and agrees that to the extent neither Tenant nor Owner has approval
rights over such matters pursuant to the Management Agreement and Manager, without Tenant’s or Owner’s consent, performs and alterations to the Property or removes any equipment or personal property forming a part of the Property, such
action by Manager alone shall not cause or give rise to a default under this Agreement. Failure of Purchaser to consent or expressly withhold its consent stating with specificity the basis of its objection within five (5) Business Days after written
request for such consent shall be deemed to constitute consent. 
  

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 8.5 Cooperation and Transition. From the date of this Agreement to the Closing Date, Seller and
Owner will reasonably cooperate with the Purchaser in the Purchaser’s efforts to ensure that from and after the Closing, the operations of the Property shall continue in an efficient manner. Purchaser shall cooperate with Seller, and shall
exercise commercially reasonable diligence to assure that all actions are taken in order to achieve the efficient transition contemplated hereunder in a timely manner at the Closing. Without limiting the foregoing, if any licenses or permits
(including liquor licenses) relating to the Property or its operations are not assignable or not to be assigned hereunder, Seller will take such actions as may be reasonably required in order to assure that such licenses and permits remain in effect
with respect to the Property following the Closing. 
  
 8.6 No
Transfer of Property. From the date of this Agreement to the Closing Date, to not sell nor enter into any other contract to sell all or a portion of its interest in the Property or any portion thereof, other than other than FF&E, FAS and
Inventories in the ordinary course, and to not create nor suffer the imposition of any further liens or encumbrances or restrictions on the Property or any interest therein. Seller shall not solicit any sale, joint venture or other disposition of
the Property and shall not negotiate any unsolicited offers for sale, joint venture or other disposition of the Property. 
  
 8.7 Notice of Material Changes or Untrue Representations. Upon learning of any material change in any condition with respect to the Property or of
any event or circumstance which makes any representation or warranty of the Seller to the Purchaser under this Agreement untrue, promptly to notify the Purchaser thereof (the Purchaser agreeing, on learning of any such fact or condition, promptly to
notify the Seller thereof). Neither Owner nor Tenant shall voluntarily either (a) take any action, (b) knowingly fail to take any action or (c) to the extent Seller has approval rights over such matters pursuant to the Management Agreement, permit
Manager to take any action or fail to take any action which causes a representation or warranty contained in Section 6 to become untrue. Purchaser acknowledges and agrees that to the extent neither Tenant nor Owner has approval rights over
such matters pursuant to the Management Agreement and Manager, without Tenant’s or Owner’s prior consent, takes any action or fails to take any action which causes a representation or warranty contained in Section 6 to become
untrue, such action by Manager alone shall not cause or give rise to a default under this Agreement. 
  
 8.8 Maintenance of Property; Violations. From the date of this Agreement to the Closing Date, to use commercially reasonable efforts to cause the
Manager to maintain the Property and all mechanical, heating, plumbing, electrical and other utility systems which serve the Real Property or Improvements in good order and repair consistent with the Management Agreement and historical custom and
practice. Seller shall use commercially reasonable efforts to cause Manager to (i) operate and manage the Property in accordance with past business practices, and (ii) to maintain the Property in good repair and working order, in each instance, in
accordance with the terms and provisions of the Management Agreement, and shall perform, when due, all of Seller’s obligations under the Contracts, and to cause Manager to perform, when due, all of Manager’s obligations under the Manager
Contracts. Purchaser hereby agrees that it shall accept the Property subject to, and Seller shall not have any obligation to cure: (i) any violations of law or municipal ordinances, orders or requirements, or (ii) any physical conditions which would
give rise to such violations. Notwithstanding the above, if any violations are noted 

  

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or issued by any federal, state or local governmental authority between the date hereof and the day immediately preceding the Closing Date (the “New
Violations Period”), then Purchaser shall receive a credit against the Purchase Price for the cost to cure such violations up to a maximum of $500,000 in the aggregate; provided, however, that if the aggregate amount to sure such violations
is in excess of $500,000 then in lieu of closing the transactions contemplated hereby, Purchaser may terminate this Agreement, following which this Agreement be deemed null and void (except for those obligations which expressly survive termination),
the parties hereto shall have no further obligations to or recourse against each other except as otherwise expressly set forth herein, and the Earnest Money shall be returned to Purchaser. Notwithstanding the above, Purchaser hereby agrees (which
obligation shall survive the Closing) to refund to Seller the excess, if any, of any (x) adjustment to the Purchase Price attributable to any violations noted or issued during the New Violations period over (y) the costs incurred in connection with
the cure of the same. Seller will advise Purchaser of any written notice Owner or Tenant, or, to Seller’s knowledge, Manager, receives after the date hereof from any governmental authority relating to the violation of any law or ordinance
regulating the condition or use of the Property. 
  
 8.9
Insurance. From the date of this Agreement to the Closing Date, to maintain (and to use commercially reasonable efforts to cause Manager to maintain) the existing insurance policies continuously in force through and including the Closing
Date. 
  
 8.10 [INTENTIONALLY OMITTED]. 
  
 8.11 Permit Remediation. Following the Closing, to the extent that any
permits, licenses or like instruments in addition to the Permits and Approvals and Manager Permits shall be required by any governmental authority, or to the extent any of the Permits and Approvals or Manager Permits or the transfer thereof to
Purchaser shall be deemed deficient by governmental authority, Seller shall be solely responsible to obtain such new permits and/or licenses as are necessary to comply with all applicable law. Seller shall pay all the costs and expenses of obtaining
any such permits and licenses, including the cost of cooperating with all governmental inspections triggered by a permit or license transfer and complying with instructions issued by any governmental authority in connection with such inspection, and
Seller shall be responsible for any damages arising out of the failure to satisfy any governmental authority as to the sufficiency of existing permits and licenses. The obligations of Seller under this Section 8.11 shall survive Closing.

  
 8.12 Ground Lessor Matters. From the date hereof to the
Closing Date, to use commercially reasonable efforts to obtain and deliver to Purchaser Landlord Estoppel Certificates in the form of Schedule J-5 attached hereto (the “Ground Lease Estoppels”) duly executed by the lessors
under the Ground Leases. 
  
 8.13 Economic Development Program
Agreement Matters. From the date hereof to the Closing Date, to use commercially reasonable efforts to obtain and deliver to Purchaser an estoppel certificate from the City of Fort Worth with respect to the Economic Development Program Agreement
in a form reasonably satisfactory to Purchaser. 
  

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 SECTION 9. APPORTIONMENTS; CLOSING COSTS. 
  
 9.1 Apportionments. The parties agree to adjust the Purchase Price by
an amount equal to a proration of taxes, rental, and other income, and operating or other expenses of the Property as of 12:01 a.m. on the Closing Date (i.e., Purchaser is entitled to the income and responsible for the expenses on the Closing Date)
computed as follows: 
  
 (a) Certain costs and expenses relating
to the Property shall be adjusted as of the Closing Date between Seller and Purchaser (the “Closing Date Adjustment”). The Closing Date Adjustment shall constitute a composite accounting of the different items described below. The
intent is to credit or charge, as the case may be, Seller with all revenues and expenses respecting the Property which are attributable to operations before the Closing Date and to credit or charge, as the case may be, Purchaser with all such
revenues and expenses attributable to operations on and after the Closing Date. Seller shall be responsible for and agrees to pay all accounts payable through the date preceding the Closing Date. Unless otherwise provided for herein, all revenues
and expenses shall be separately accounted for as between Seller and Purchaser as of 12:01 a.m. on the Closing Date (the “Apportionment Time”). No later than forty-five (45) days after the Closing Date and again at one-hundred
twenty (120) days after the Closing Date, Seller and Purchaser shall review all the amounts and calculations made in respect of the Closing Date Adjustment and any final corrections shall be made to the Closing Date Adjustment, and Seller and
Purchaser at that time shall settle any funds owed to each other. If Seller and Purchaser, each acting reasonably and in good faith, cannot resolve any issue with respect to the adjustments described in this section, they shall submit such issue for
binding resolution by a nationally recognized accounting firm mutually acceptable to both parties (the “Accounting Firm”). The parties shall bear equally all fees and expenses of the Accounting Firm in connection with the resolution
of such issue, and each party shall bear its own legal, accounting and other fees and expenses incurred in connection with the resolution of the issue by the Accounting Firm. Such resolution shall be final and binding on the parties and judgment may
be entered upon such resolution in any court having jurisdiction thereof. Seller and Purchaser agree that the proceeding described in this section shall be conducted in Bethesda, Maryland. 
  
 (b) By way of example, and not in limitation, the following items shall be
accounted for in calculating the Closing Date Adjustment: 
  
 (i) the total amount of security deposits held by Seller under any of the Space Leases shall be credited to Purchaser by Seller; 
  
 (ii) prepaid rents and all room and other deposits and advance payments under booking arrangements and for
use of the Property facilities after the Closing Date shall be credited to Purchaser. At Closing, Purchaser shall execute a receipt for such deposits and prepaid rents and shall indemnify and hold Seller harmless from and against all claims and
liabilities pertaining to the application or return of such prepaid rents or deposits; 
  
 (iii) collected rents and any other amounts received from tenants under space leases shall be prorated as of the Closing Date; delinquent
(or payable but unpaid) rent and other payments from tenants under space leases as of the Closing Date shall not be prorated on the Closing Date. If any tenant is in arrears in the payment of rent or other fixed charges, any 

  

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payments on account of rent or such other fixed charges received by Purchaser from such tenant after the Closing Date shall be applied first to rent and
other charges due for the month in which such payments are received and then to preceding months for which such rent and other charges are in arrears (always to the most recent first). If, following the Closing, Seller receives any payments
applicable to the period commencing on the Closing Date, Seller shall immediately pay such amounts to Purchaser. If any payments of rent or other fixed charges received by Seller or Purchaser on or after the Closing Date are payable to the other
party by reason of this allocation, such amounts shall be held in trust for the benefit of the other party and the appropriate sum shall be promptly paid to the other party. At the Closing, Seller shall furnish to Purchaser a complete and correct
schedule of all minimum rents and other fixed charges which are then due and payable but which have not been paid. Percentage rents and other variable charges under space leases, such as payments for real estate taxes and other expenses, which are
not fixed in amount, shall be adjusted when and as received based upon the number of days in the payment period that each party owned the Property. Purchaser shall use commercially reasonable efforts to collect any rent and other charges in arrears,
but shall be under no obligation to commence any actions or proceedings with respect thereto. From and after the date that is six (6) months after the Closing Date, Seller may, at its sole expense, pursue collection efforts, including the bringing
of lawsuits, for any delinquent rents or other charges, provided that Seller may not bring any action to terminate any of the space leases or dispossess or otherwise evict any tenant thereunder; 
  
 (iv) Seller shall receive a credit in the amount of any
reserve account on the Closing Date held by Manager under the Management Agreement, such credit shall not include a credit for any reserve account with respect to FF&E (the “FF&E Reserve”); 
  
 (v) all charges and prepayments relating to the Contracts
shall be prorated between Seller and Purchaser as of 12:01 on the Closing Date; 
  
 (vi) all cash in the operating accounts for the Property (it being understood that such accounts refer to “house banks” and not
bank accounts) shall be paid over to Purchaser at Closing and Seller shall receive a credit therefor in the Closing Date Adjustment; 
  
 (vii) guest ledger receivables (i.e., amounts, including, without limitation, room charges and charges for food and beverages, accrued to
the accounts of guests and other customers of the Hotel as of the Apportionment Time) shall be prorated between Purchaser and Seller. Seller shall receive a credit for all guest ledger receivables, net of credit card and travel agent and similar
commissions, for all room nights and other charges up to but not including the room night during which the Apportionment Time occurs, and Purchaser shall be entitled to the amounts of guest ledger receivables for the room nights and other charges
after the Apportionment Time. The final night’s room revenue (revenue from rooms occupied on the evening preceding the Closing Date), any taxes thereon, and any in-room telephone, movie and similar charges for such night, shall be allocated 50%
to Seller and 50% to Purchaser (and Seller and Purchaser shall each bear 50% of the credit card charges, travel company charges and similar commissions payable with respect to such revenue). All revenues from restaurants, bars and lounge facilities
for the night during which the Apportionment Time occurs shall belong to Seller and Seller shall bear all expenses related to such revenues, including but not limited to, payroll and food and beverage costs; 
  

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 (viii) Seller shall receive a credit for, and Purchaser shall purchase from Seller, all
accounts receivable (other than the guest ledger) that are less than one hundred twenty (120) days old. Such credit shall equal the amount of the accounts receivable, less (1) credit card charges, travel company charges and similar commissions and
(2) on all accounts receivable other than credit card receivables, a 3% discount for uncollectible amounts; 
  
 (ix) Purchaser will receive a credit for all accrued and unpaid obligations of Seller and Manager under Manager’s salary and employee
benefits arrangements in place as of the Closing for employees at the Property, including without limitation, unemployment compensation benefits, salaries, bonuses, sick leave, vacation and other similar forms of compensation up to the date of the
Closing, including all employer taxes and benefits associated with vacation and sick pay pursuant to the terms and provisions of the Management Agreement; 
  
 (x) general real estate taxes, personal property taxes, special assessments and other governmental taxes and charges relating to the
Property (collectively, “Real Estate Taxes”) and assessed for the year in which Closing occurs shall be prorated as of the Date of Closing and adjusted against the Purchase Price. If Closing occurs before the actual Real Estate
Taxes payable during such year are known, the proration of Real Estate Taxes shall be upon the basis of Real Estate Taxes payable during the immediately preceding year; provided, however, that, if the Real Estate Taxes payable during the year in
which Closing occurs are thereafter determined to be more or less than the Real Estate Taxes payable during the preceding year (after conclusion of any pertinent appeal of assessed valuation, as reasonably determined by Purchaser), Seller and
Purchaser promptly (but no later than thirty (30) days after the date final invoices for such Real Estate Taxes are issued by the applicable taxing authority(ies), except in the case of an ongoing tax protest) shall adjust the proration of Real
Estate Taxes, and Seller or Purchaser, as the case may be, shall pay to the other any amount required as a result of such adjustment; 
  
 (xi) certified governmental liens and all other pending governmental liens shall be paid by Seller; 
  
 (xii) the parties acknowledge that certain taxes accrue and
are payable to the various local governments by any business entity operating a hotel and its related facilities. Included in those taxes may be business and occupation taxes, retail sales and use taxes, gross receipts taxes, and other special
lodging or hotel taxes. For purpose of this Agreement, all of such taxes (hereinafter referred to as “Operational Taxes”) (expressly excluding Real Estate Taxes, corporate franchise taxes, and federal, state, and local income taxes)
shall be allocated between Seller and Purchaser such that those attributable to the period prior to 12:01 a.m. on the Closing Date shall be allocable to Seller and those attributable to the period from and after 12:01 a.m. on the Closing Date shall
be to Purchaser (with the attribution of such taxes hereunder to be done in a manner consistent with the attribution under this Agreement of the applicable revenues on which such taxes may be based). Purchaser shall receive a credit for any
Operational Taxes attributable to the period prior to 12:01 a.m. on the Closing Date which Seller has not paid. Except for the Operational Taxes for which Purchaser has received a credit under this subsection (xii), Seller shall be solely
responsible for payment of the Operational Taxes with respect to the period prior to 12:01 a.m. on the Closing Date, and Purchaser shall be solely responsible for payment of such Operational Taxes with respect to the period after 12:01 a.m. on the
Closing Date. Nothing in this subsection (xii) shall limit Seller’s obligation to deliver such notices, 

  

 34 

 
certificates or releases with respect to withholding requirements or other liabilities for income, sales, or other taxes attributable to Seller’s period
of ownership, to the extent Purchaser may be held liable therefor under the laws of the State of Texas. Seller hereby agrees to indemnify, save and defend, and hold Purchaser harmless from and against, all claims and liabilities for Operational
Taxes attributable to the period prior to 12:01 a.m. on the Closing Date for which Purchaser has not received a credit, and Purchaser agrees to indemnify, save and defend, and hold Seller harmless from and against, all claims and liabilities for
Operational Taxes attributable to the period prior to 12:01 a.m. on the Closing Date and for which Purchaser has received a credit under this subsection (xii). Seller agrees to promptly notify the appropriate governmental parties of the Closing
hereunder and promptly provide such information as necessary to make a final determination of Seller’s liability for Operational Taxes; 
  
 (xiii) telephone and telex charges and charges for the supply of heat, steam, electric power, gas, lighting, cable television and any
other utility service shall be prorated as of the Apportionment Time between Purchaser and Seller. Seller shall receive a credit for all deposits, if any, made by Seller as security under any such public service contracts if the same are
transferable and provided such deposits remain on deposit for the benefit of Purchaser. Where possible, cutoff readings will be secured for all utilities as of the Closing Date. To the extent cutoff readings are not available, the cost of such
utilities shall be apportioned between the parties on the basis of the latest actual (not estimated) bill for such service; 
  
 (xiv) permit and license fees of assignable permits and licenses, if any, shall be prorated as of the Closing Date; 
  
 (xv) Purchaser shall receive a credit for the face value of
all unredeemed gift certificates issued by Seller or Manager as of the Closing Date; 
  
 (xvi) Purchaser shall receive a credit for advance payments and deposits, if any, under Advances at the Closing Date; 
  
 (xvii) Seller shall receive a credit for prepaid expenses
directly or indirectly allocable to any period from and after the Closing Date paid by or on behalf of Seller to third parties to the extent the same are transferable and remain on deposit for the benefit of Purchaser. With the exception of prepaid
advertising which has not been published, mailed or aired, the Seller will receive no credit for prepaid advertising costs; 
  
 (xviii) All unpaid rent accruing under the Ground Leases prior to 12:01 a.m. on the Closing Date occurs shall be allocated to the Seller,
and all unpaid rent accruing under the Ground Leases after 12:01 a.m. on the Closing Date shall be allocated to Purchaser. Seller shall be credited and Purchaser shall be debited for any fee or other amount prepaid by Seller under the Ground Leases
to the extent such fee or other amount accrues after 12:01 a.m. on the Closing Date. Seller shall be credited and Purchaser shall be debited for all deposits and other amounts owned by Owner and held by the lessors of the Ground Leases or any other
party in connection with the Ground Leases. 
  
 (xix) any amounts prepaid or payable under any Contracts and any other trade payables and receivables shall be prorated as of the Closing Date between Purchaser and Seller. 

  

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Trade payables should include all amounts payable to Manager. All amounts known to be due under Contracts with reference to periods prior to the Closing Date
shall be paid by Seller or credited to Purchaser. Any additional amounts not known or not available at the Closing will be part of the post closing adjustments contemplated in Section 9.1(a) above; 
  
 (xx) all working capital relating to the Property as of the
Closing Date shall be and remain the property of the Seller and shall not be conveyed to the Purchaser. Purchaser shall be solely responsible for funding the working capital for the Property required by the Management Agreement; and 
  
 (xxi) other costs, expenses and charges which are of a type
as are usually involved in and adjusted with regard to property similar to and located in the locale of the Property. 
  
 (c) Prorations hereunder shall, where applicable, be made on the basis of a 365 day year and, for any month, on the basis of the number of days elapsed.
If any of the foregoing cannot be apportioned at the Closing because of the unavailability of the amounts which are to be prorated, unless otherwise provided for herein, such items shall be prorated as soon as practicable after the Closing Date.

  
 9.2 Closing Costs. Seller shall be responsible for and
pay all costs and expenses associated with recording fees and real estate transfer taxes and sales taxes. Each party shall pay its own attorneys’ fees and costs in connection with this transaction. Title Company’s fee for the escrow shall
be divided equally between Seller and Purchaser. 
  
 9.3
Survival. The obligations of the parties under this Section 9 shall survive Closing. 
  
 SECTION 10. CASUALTY, CONDEMNATION, LITIGATION AND RISK OF LOSS. 
  
 10.1 Notice to Purchaser. Seller agrees to give Purchaser prompt notice (a) of any pending or threatened condemnation affecting the Property of
which Seller becomes aware, (b) if all or any part of the Property becomes subject to litigation or if Owner or Tenant becomes subject to litigation that would affect Seller’s ability to perform its obligations under this Agreement, and (c) of
any Damage Event. 
  
 10.2 Condemnation or Litigation. If,
prior to the Closing, (a) condemnation proceedings are commenced or threatened in writing against all or any portion of the Property (other than an incidental condemnation that does not affect the operation of or access to the Property); or (b) if
all or any part of the Property becomes subject to litigation that, if adversely determined, would materially and adversely affect the use or value of the Property to Purchaser or if Owner or Tenant becomes subject to litigation that would
materially and adversely impair Seller’s ability to perform its obligations under this Agreement, then Purchaser will have the right, upon notice in writing to Seller delivered within ten (10) days after Seller gives Purchaser written notice of
such matter as described in this Section 10, to terminate this Agreement, whereupon this Agreement will be of no further force or effect, except as expressly set forth herein. If Purchaser does not elect, or is not entitled, to terminate this
Agreement, Purchaser will 

  

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be entitled to the condemnation award and/or an assignment of all of Seller’s rights in and to such condemnation and/or litigation proceedings (to the
extent that any such litigation relates to the physical condition of the Property and not to Seller and not to the operations of the Property prior to the Closing), as the case may be. 
  
 10.3 Damage Events. If, prior to the Closing, the Property is damaged by fire or other casualty or any operational
component of the Property (such as, by way of example only, an operational component would include respective constituent parts of the elevator system, the heating, air-conditioning and ventilating system or the roof) fails for any reason, including
wear and tear or age (collectively, a “Damage Event”) then Purchaser will have the following rights with respect to each such Damage Event: 
  
 (a) $2,500,000 and Above. If the cost of repairing and/or replacing the portion of the Property affected by such Damage Event will be $2,500,000.00
or more (as determined by an architect or general contractor mutually acceptable to Purchaser and Seller), then Purchaser will have the right, upon notice in writing to Seller delivered within ten (10) days after Seller gives Purchaser written
notice of such Damage Event, to: (i) receive a credit at Closing in an amount equal to any and all insurance policy deductibles applicable to Seller in connection with such Damage Event, and receive an assignment of Owner’s and Tenant’s
rights to insurance proceeds, if any (and Seller will cooperate with Purchaser to ascertain within the ten (10) day period described above whether and to what extent such insurance will apply to the Damage Event); provided, however, that if
Purchaser receives insurance proceeds in excess of the amount necessary to repair or replace such portion of the Property affected by the Damage Event (taking into account the credit received at the Closing), Purchaser will refund any such excess
insurance proceeds to Owner; or (ii) terminate this Agreement. 
  
 (b) Under $2,500,000. If the cost of repairing and/or replacing the portion of the Property affected by such Damage Event will be less than $2,500,000.00 (as determined by an architect or general contractor mutually acceptable to
Purchaser and Seller), then the following will apply: (i) if as a result of the Damage Event, the Property cannot be or is not operated in accordance with historical standards (such as, for example, the Property is not open to the public or access
to the Property (whether for pedestrians or vehicles) is materially impaired, then Seller shall repair and/or replace the portion of the Property affected by such Damage Event and the Closing will be delayed until the fifth (5th) Business Day
following date that the Property is again operated in accordance with historical standards; provided, however, that such delay in the Closing Date will not exceed ninety (90) days, and if such delay exceeds ninety (90) days, Purchaser will have the
option, upon notice in writing to Seller delivered within ten (10) days after the expiration of such ninety (90) day period, to terminate this Agreement; or (ii) if, after such Damage Event, the Property continues to be operated in a manner
consistent with historical standards, then at Seller’s election, Seller can either (A) repair and/or replace the portion of the Property affected by such Damage Event and extend the Closing Date until the date that is five (5) Business Days
following the date that Seller completes such repair and/or such replacement (provided, however, such delay in the Closing Date will not exceed ninety (90) days, and if such delay exceeds ninety (90) days, Purchaser will have the option, upon notice
in writing to Seller delivered within ten (10) days after the expiration of such ninety (90) day period, to terminate this Agreement) or (B) proceed to the Closing and provide Purchaser with a credit at the Closing in the amount necessary to repair
and/or replace the portion of the Property affected by the 

  

 37 

 
Damage Event, as such amount is determined by an architect or general contractor mutually acceptable to Purchaser and Seller. 
  
 10.4 Arbitration. In the event of any dispute under Section 10.3 of
this Agreement concerning the selection of an architect or engineer, either party shall have the right to submit such dispute to arbitration in the City of New York under the Expedited Procedures provisions of the Commercial Arbitration Rules of the
American Arbitration Association (the “AAA”) (presently Rules 56 through 60 and, to the extent applicable, Section 19); provided, however, that with respect to any such arbitration, (i) the list of arbitrators referred to in Rule 57
shall be returned within 5 days from the date of mailing; (ii) the parties shall notify the AAA by telephone, within 4 days of any objections to the arbitrator appointed and will have no right to object if the arbitrator so appointed was on the list
submitted by the AAA and was not objected to in accordance with the second paragraph of Rule 57; (iii) the Notice of Hearing referred to in Rule 58 shall be 4 days in advance of the hearing; (iv) the hearing shall be held within 5 days after the
appointment of the arbitrator; (v) except as set forth in the next grammatical paragraph, the arbitrator shall have no right to award damages; and (vi) the decision and award of the arbitrator shall be final and conclusive on the parties. THE
TIME PERIODS SET FORTH IN THIS SECTION 10.4 ARE OF THE ESSENCE. If any party fails to appear at a duly scheduled and noticed hearing, the arbitrator is hereby expressly authorized to enter judgment for the appearing party. 
  
 The arbitrators conducting any arbitration shall be bound by the provisions
of this Agreement and shall not have the power to add to, subtract from, or otherwise modify such provisions. Seller and Purchaser agree to sign all documents and to do all other things necessary to submit any such matter to arbitration and further
agree to, and hereby do, waive any and all rights they or either of them may at any time have to revoke their agreement hereunder to submit to arbitration and to abide by the decision rendered thereunder which shall be binding and conclusive on the
parties and shall constitute an “award” by the arbitrator within the meaning of the AAA rules and applicable law. Judgment may be had on the decision and award of the arbitrators so rendered in any court of competent jurisdiction. Each
arbitrator shall be a qualified, disinterested and impartial person who shall have had at least 10 years experience in a calling connected with the matter of the dispute. Seller and Purchaser shall each have the right to appear and be represented by
counsel before said arbitrators and to submit such data and memoranda in support of their respective positions in the matter in dispute as may be reasonably necessary or appropriate under the circumstances. Each party hereunder shall pay its own
costs, fees and expenses in connection with any arbitration or other action or proceeding brought under this Section 10.4, and the expenses and fees of the arbitrators selected shall be shared equally by Seller and Purchaser. Notwithstanding any
contrary provisions hereof, Seller and Purchaser agree that, except with respect to a finding that consent was withheld arbitrarily or in bad faith, (i) the arbitrators may not award or recommend any damages to be paid by either party and (ii) in no
event shall either party be liable for, nor shall either party be entitled to recover, any damages. Neither party shall have ex parte communications with any arbitrator selected under this Section 10.4 following his or her selection and pending
completion of the arbitration hereunder. 
  
 10.5 Termination
by Purchaser. In the case of any termination by Purchaser pursuant to this Section 10, Purchaser shall be entitled to the return of the Earnest Money and this Agreement shall be of no further force or effect, except as expressly set forth
herein. 
  

 38 

 10.6 Risk of Loss. Subject to the provisions of this Section 10, the risk of loss or damage to the
Property will remain with Seller until the Closing. 
  
 SECTION
11. DEFAULT. 
  
 11.1 Default by Seller. If (i)
Seller shall default in any of its material obligations to be performed on the Closing Date or (ii) Seller shall default in the performance of any of its material obligations to be performed prior to the Closing Date and, with respect to any default
under this clause (ii) only, such default shall continue for 5 days after notice to Seller, Purchaser shall have the right to elect, as its sole remedies, to (A) terminate this Agreement by written notice to Seller, promptly after which the Earnest
Money shall be returned to Purchaser (provided Purchaser is not in default in any material respect hereunder), and Seller shall reimburse Purchaser for its actual, reasonable, third-party costs and expenses incurred in connection with this
Agreement, not to exceed $500,000 in the aggregate, (B) waive the condition and proceed to close the transaction, or (C) seek specific performance of this Agreement by Seller and Seller shall reimburse Purchaser for its actual, reasonable,
third-party costs and expenses incurred in enforcing such remedy; provided, however, that as a condition precedent to Purchaser exercising any right it may have to bring an action for specific performance as the result of Seller’s failure or
refusal to perform its obligations hereunder, Purchaser must commence such an action within sixty (60) days after Purchaser has Knowledge of such default. Purchaser agrees that its failure to timely commence such an action for specific performance
within such sixty (60) day period shall be deemed a waiver by it of its right to commence such an action. Notwithstanding the foregoing, if Seller or the sellers under any Related Agreement intentionally breaches or intentionally fails to take an
action solely within the control of Seller or such other seller(s) that Seller or such other seller(s) is/are obligated to take under this Agreement or any Related Agreement and as a result thereof Purchaser’s ability to close the transaction
contemplated under this Agreement or any Related Agreement is materially impaired, Purchaser shall have the right to commence a suit against Seller and/or such other seller(s) for monetary damages in an amount not to exceed Five Million Dollars
($5,000,000) in the aggregate, as liquidated damages, it being understood that Purchaser’s actual damages in the event of such default are difficult to ascertain and that such proceeds represent the parties’ best current estimate of such.

  
 SELLER AND PURCHASER ACKNOWLEDGE THAT THEY HAVE READ AND
UNDERSTAND THE PROVISIONS OF THIS SECTION AND BY THEIR INITIALS IMMEDIATE BELOW AGREE TO BE BOUND BY ITS TERMS. 
  

			
	 SELLER’S INITIALS
                                
	  	 PURCHASER’S INITIALS
                                

		
	 OWNER’S INITIALS
                                
	  	 

  
 11.2 Default by the
Purchaser. If (i) Purchaser shall default in the payment of the Purchase Price or if Purchaser shall default in the performance of any of its other material obligations to be performed on the Closing Date, or (ii) Purchaser shall default in the
performance of any of its material obligations to be performed prior to the Closing Date and, with respect to any default under this clause (ii) only, such default shall continue for 5 days after notice to Purchaser, then Seller’s sole and
exclusive remedy shall be to cause Title Company to 

  

 39 

 
deliver the Earnest Money to Seller, the amount thereof being fixed as liquidated damages, it being understood that Seller’s actual damages in the event
of such default are difficult to ascertain and that such proceeds represent the parties’ best current estimate of such. Seller shall have no other remedy for any other default by Purchaser. 
  
 SELLER AND PURCHASER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE
PROVISIONS OF THIS SECTION AND BY THEIR INITIALS IMMEDIATELY BELOW AGREE TO BE BOUND BY ITS TERMS. 
  

			
	 SELLER’S INITIALS
                                
	  	 PURCHASER’S INITIALS
                                

		
	 OWNER’S INITIAL’S
                              
	  	 

  
 11.3
Representations and Warranties; No Consequential Damages. Seller shall have no liability to Purchaser for a breach of any representation or warranty unless the valid claims for all such breaches collectively aggregate more than $100,000.00,
in which event the full amount of such valid claims shall be actionable (except with respect to any breach resulting from the intentional action or failure to act (where there is a duty to act) of Owner or Tenant, in which event the full amount of
such valid claims shall be actionable, regardless of the aggregate cost), provided, however, that Purchaser hereby agrees that the maximum aggregate liability of Seller and the other sellers under the Related Agreements, in connection with, arising
out of or in any way related to a breach by Seller or such related sellers under this Agreement, the Related Agreements or any document or conveyance agreement in connection with a breach of Seller’s Property Representations under this
Agreement or the Related Agreements after the Closing shall be $2,500,000 plus Purchaser’s actual and reasonable third-party costs and expenses incurred in enforcing such remedy, not to exceed $500,000 (less any amounts previously reimbursed by
the sellers under one or more of the Related Agreements for the actual, reasonable, third party costs and expenses of the purchasers thereunder), in the aggregate. Purchaser hereby waives for itself and anyone who may claim by, through or under
Purchaser any and all rights to sue or recover from Seller any amount greater than said limit. Purchaser and Seller acknowledge that in no event shall either party be liable to the other party hereunder for lost profits, diminution in value, or
consequential, incidental or punitive damages of any kind. 
  
 SECTION 12. MISCELLANEOUS. 
  
 12.1
Agreement to Indemnify. Subject to any express provisions of this Agreement to the contrary (including, without limitation, Section 2.5), from and after the Closing, (i) Seller shall indemnify and hold harmless Purchaser and any partner,
member, manager, officer, director, trustee, beneficiary, employee or agent of Purchaser (collectively, the “Purchaser Indemnitees”) from and against any and all obligations, claims, losses, damages, liabilities, and expenses
(including, without limitation, reasonable attorneys’ and accountants’ fees and disbursements) to the extent arising out of (A) events or contractual obligations, acts, or omissions of Owner or Tenant that occurred in connection with the
ownership or operation of the Property prior to the Closing Date and for which Purchaser did not receive a credit at Closing in the full amount of such liability, (B) any damage to property or injury to or death of any person occurring on or about
or in connection with the Property or any portion thereof at any time or times prior to the Closing Date for which Owner, Tenant or Manager did not have adequate 

  

 40 

 
insurance on the date of Closing, or (C) subject to the limitations set forth herein, a breach of any representation or warranty made by Seller hereunder or
in any certificate delivered by Seller hereunder, and (ii) Purchaser shall indemnify and hold harmless Seller and any partner, member, manager, officer, director, trustee, beneficiary, employee or agent of Seller (collectively, the “Seller
Indemnitees”) from and against any and all obligations, claims, losses, damages, liabilities and expenses (including, without limitation, reasonable attorneys’ and accountants’ fees and disbursements) to the extent arising out of
(A) events, contractual obligations, acts or omissions of Purchaser for which Purchaser did receive a credit at Closing in the full amount of such liability that occur in connection with the ownership or operation of the Property on or after the
Closing Date, or (B) any damage to property or injury to or death of any person occurring on or about the Property or any portion thereof on or at any time or times after the Closing Date, or (C) subject to the limitations set forth herein, a breach
of any representation or warranty made by Purchaser hereunder or in any certificate delivered by Purchaser hereunder. The provisions of this Section 12.1 shall survive the Closing and the termination of this Agreement. 
  
 12.2 Indemnification Procedure for Third Party Claims. In the case of
any claim asserted by a third party which claim is subject to indemnification by the either party hereunder, (a “Third-Party Claim”), the party seeking indemnification (the “Indemnitee”) shall notify the other party
(the “Indemnitor”) promptly after has actual knowledge of any such Third-Party Claim as to which indemnity may be sought (provided that failure to so notify shall not affect the Indemnitor’s obligations hereunder except to the
extent materially prejudiced by such failure), and Indemnitee shall permit the Indemnitor, at its sole expense, to assume the defense of any such Third-Party Claim, provided that Indemnitee may participate in such defense or administration at
Indemnitee’s sole expense (provided, however, that if a conflict of interest exists such that separate counsel must be engaged by Indemnitee and the Indemnitor, the Indemnitor shall be responsible for the reasonable fees and costs for such
counsel for Indemnitee). The Indemnitor, in the defense of any such Third-Party Claim, shall not, except with the consent of Indemnitee, which Indemnitee agrees will not be unreasonably withheld, conditioned or delayed with respect to a monetary
settlement, judgment or relief, (a) consent to entry of any judgment or enter into any settlement that provides for injunctive or other non-monetary relief against Indemnitee or (b) pursue any course of defense of any such Third-Party Claim subject
to indemnification hereunder if Indemnitee shall reasonably and in good faith determine that the conduct of such defense could be expected to adversely affect in any material respect Indemnitee, its direct or indirect owners, the use of the Property
or Interest to which the Third-Party Claim relates. In addition, if the Indemnitor obtains and desires to accept from a party to any such Third-Party Claim an offer to settle the Third-Party Claim solely for an amount certain, then Indemnitee agrees
that if requested by the Indemnitor, Indemnitee will, at its sole expense, assume defense of such Third-Party Claim and thereafter the Indemnitor’s obligation with respect to such Third-Party Claim shall not exceed the costs of defense then
incurred and the dollar amount of the settlement the Indemnitor proposed to accept immediately prior to such assumption by Indemnitee, it being agreed between Indemnitee and the Indemnitor that Indemnitee will pay any greater amounts owing and bear
any other impositions in excess of those contemplated in the proposed settlement arrangement. In the event that the Indemnitor does not accept the defense of any matter as above provided, Indemnitee shall have the full right to defend against any
such Third-Party Claim or demand and shall be entitled to settle or agree to pay in full such Third-Party Claim or demand, in its sole discretion. In any event, the Indemnitor and Indemnitee shall cooperate in the defense of any action or claim
subject to this Agreement 

  

 41 

 
and each agrees to make its records available to the other with respect to such defense as reasonably requested and to the extent doing so does not
compromise any claim of privilege or any other defense available to it. Acceptance of the defense of any Third-Party Claim or of the administration of any Third-Party Claim by the Indemnitor shall be without prejudice to the Indemnitor’s right
to assert at any time before or after accepting such defense or administration that it is not obligated to provide an indemnity, either in whole or in part, with respect to such Third-Party Claim. In the event that the Indemnitor asserts that it is
not obligated to provide an indemnity to Indemnitee with respect to a Third-Party Claim, Indemnitee shall have the right to defend such Third-Party Claim, and if the Indemnitor is adjudicated liable for indemnifying Indemnitee, the Indemnitor shall
reimburse Indemnitee for its out-of-pocket expenses in defending such Third-Party Claim and all settlements and judgments reasonably incurred as a result of such Third-Party Claim. 
  
 12.3 Brokerage Commissions. Each party hereto represents and warrants to the other that it has dealt with no brokers
or finders in connection with this transaction, other than Eastdil Realty (the “Broker”). Seller agrees to pay any commission or other compensation due the Broker in accordance with a separate written agreement with the Broker. The
foregoing sentence is not intended to create any third party beneficiary rights. Seller and Purchaser each hereby indemnify, protect and defend and hold the other and, as applicable, the Seller Indemnitees or Purchaser Indemnitees, harmless from and
against all losses, claims, costs, expenses, damages (including, but not limited to, attorneys’ fees of counsel selected by the indemnified party) resulting from the claims of any broker, finder, or other such party claiming by, through or
under the acts or agreements of the indemnifying party, other than the Broker. Seller hereby indemnifies, protects and defends and holds Purchaser and the Purchaser Indemnitees harmless from and against all losses, claims, costs, expenses, damages
(including, but not limited to, attorneys’ fees of counsel selected by the indemnified party) resulting from the claims of Broker. Notwithstanding any provision of this Agreement to the contrary, the obligations of the parties pursuant to this
Section 12.4 shall survive the Closing or any termination of this Agreement. 
  
 12.4 Notices. Any notice, demand or request which may be permitted, required or desired to be given in connection therewith shall be given in writing and directed to Seller and Purchaser as follows: 

 

			
	 Purchaser:
	  	 DiamondRock Hospitality Company
 10400 Fernwood Road, Suite 300
 Bethesda, Maryland 20817
 Attn: Mark W. Brugger
 Telecopier No.: (301) 380-6850

		
	 With a copy to:
	  	 DiamondRock Hospitality Company
 10400 Fernwood Road, Suite 300
 Bethesda, Maryland 20817
 Attn: Michael Schecter
 Telecopier No.: (301) 380-6850

  

 42 

			
	 With a copy to:
	  	 Willkie Farr & Gallagher LLP
 787 Seventh
Avenue
 New York, New York 10019-6099
 Attn: Steven D.
Klein
 Telecopier No.: (212) 728-9221

		
	 Seller:
	  	 BCM/CHI Worthington Owner, LLC
 c/o Blackacre Capital
Management, LLC
 299 Park Avenue
 New York, New York
10171
 Attn: Ronald Kravit
 Telecopier No.: (212)
909-1400

		
	 Tenant:
	  	 BCM/CHI Worthington Tenant, Inc.
 c/o Blackacre
Capital Management, LLC
 299 Park Avenue
 New York, New York
10171
 Attn: Ronald Kravit
 Telecopier No. (212)
909-1400

		
	 With a copy to:
	  	 Katten Muchin Zavis Rosenman
 525 West Monroe
Street
 Chicago, Illinois 60661-3693
 Attn: Nina B. Matis,
Esq.
 Telecopier No.: (312) 902-1061

  
 Notices shall be deemed properly
delivered and received when and if either (i) personally delivered, (ii) by facsimile transmission with proof of transmission by mail, (iii) delivered by Federal Express or other nationally recognized overnight courier, or (iv) three (3) Business
Days after being deposited in the U.S. Mail by registered or certified mail, return receipt requested, postage prepaid. 
  
 12.5 Successors and Assigns. The terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective heirs, personal representatives, successors and permitted assigns. Notwithstanding anything to the contrary herein, Purchaser may assign its interest in this Agreement without the consent of Seller to any entity in which Purchaser
owns, directly or indirectly, no less than a fifty percent (50%) controlling interest provided that Purchaser remains liable for and the assignee assumes the obligations of Purchaser hereunder. 
  
 12.6 Construction. Each party hereto and its counsel has reviewed and
revised (or requested revisions of) this Agreement, and the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not be applicable in the construction and interpretation of this Agreement. 

 
 12.7 Time Periods. Any time period hereunder which expires on, or
any date hereunder which occurs on, a Saturday, Sunday or legal United States holiday, shall be deemed 

  

 43 

 
to be postponed to the next Business Day. The first day of any time period hereunder which runs “from” or “after” a given day shall be
deemed to occur on the day subsequent to that given day. 
  
 12.8
Section and Paragraph Headings. The section and paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs and sections hereof.

  
 12.9 Time. Time is of the essence in respect of the
Outside Closing Date as set forth in Section 3 of this Agreement. 
  
 12.10 Gender and Number. Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural, unless the context
otherwise requires. 
  
 12.11 Attorneys’ Fees and Legal
Expenses. Should either party hereto institute any action or proceeding in court to enforce any provision hereof or for damages by reason of any alleged breach of any provision of this Agreement or for any other judicial remedy, the prevailing
party shall be entitled to receive from the losing party all reasonable attorneys’, fees and all court costs and expenses in connection with said proceeding. 
  
 12.12 Counterparts. This Agreement, and any document executed pursuant to the provisions hereof, may be executed in
any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
  
 12.13 Complete Agreement. This Agreement embodies the entire agreement and understanding between the parties and supersedes all prior agreements
and understandings relating to the subject matter hereof. This Agreement may not be modified or discharged orally, nor may any waivers or consents be given orally, and every such modification, discharge, waiver or consent shall be in writing and
signed by the party against which enforcement hereof is sought. 
  
 12.14 Partial Invalidity. The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidity or enforceability of any one provision shall not affect the validity of enforceability of any other
provision hereof. 
  
 12.15 No Offer. Delivery of this
Agreement shall not be deemed an offer and neither Seller nor Purchaser shall have any rights or obligations hereunder unless and until both parties have signed and delivered an original of this Agreement. 
  
 12.16 Facsimile Signature. For the purposes of execution of this
Agreement, any signed document transmitted by facsimile machine (fax) shall be treated in all manner and respects as an original document, including, without limitation, having the same binding effect, and the signature of any party on any document
transmitted by fax shall be considered an original signature. Extensions of any time periods set forth herein (including, without limitation, adjournment of the Closing Date) may be delivered by email. 
  
 12.17 Limitation of Liability. Subject to the terms of the Joinder of
Capital Hotel Investments, LLC, a Delaware limited liability company, attached hereto, neither Seller nor any 

  

 44 

 
present or future direct or indirect partner, member, manager, director, officer, shareholder, employee, advisor, affiliate or agent of Seller or any
affiliate of such parties shall have any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into under or in connection with the provisions of this Agreement, or any amendment or
amendments to any of the foregoing made at any time or times, heretofore or hereafter, and Purchaser, on its behalf and on behalf of its successors and assigns and, without limitation, all other Persons, shall look solely to the assets of Seller for
the payment of any claim or for any performance, and Purchaser hereby waives any and all such personal liability. For purposes of this Section 12.17, no negative capital account or any contribution or payment obligation of any present or future
direct or indirect partner, member, manager, director, officer or shareholder of Seller in Seller shall constitute an asset of Seller. The limitations of liability contained herein are in addition to, and not in limitation of, any limitation on
liability applicable to Seller provided elsewhere in this Agreement or by law or by any other contract, agreement or instrument. Neither Purchaser nor any present or future direct or indirect partner, member, manager, director, officer, shareholder,
employee, advisor, affiliate or agent of Purchaser or any affiliate of such parties shall have any personal liability, directly or indirectly, under or in connection with this Agreement or any agreement made or entered into under or in connection
with the provisions of this Agreement, or any amendment or amendments to any of the foregoing made at any time or times, heretofore or hereafter, and Seller, on its behalf and on behalf of its successors and assigns and, without limitation, all
other Persons, shall look solely to the assets of Purchaser for the payment of any claim or for any performance, and Seller hereby waives any and all such personal liability. For purposes of this Section 12.18, no negative capital account or any
contribution or payment obligation of any present or future direct or indirect partner, member, manager, director, officer or shareholder of Purchaser in Purchaser shall constitute an asset of Purchaser. The limitations of liability contained herein
are in addition to, and not in limitation of, any limitation on liability applicable to Purchaser provided elsewhere in this Agreement or by law or by any other contract, agreement or instrument. 
  
 12.18 Safe Deposit Boxes. On the Closing Date, Seller shall cause the
delivery to Purchaser of all of Tenant’s or Owner’s keys to the safe deposit boxes in the hotel operated from the Real Property, together with all receipts and agreements relating to such safe deposit boxes. Tenant and Owner shall be
deemed to have delivered the same to the extent such materials are in Manager’s possession on the Closing Date. Immediately after the Closing Date, Purchaser shall send written notices to those Persons who have safe deposit boxes, advising them
of the sale of the Property to Purchaser and requesting the removal and verification of the contents of their safe deposit boxes within three (3) days after the Closing Date and advising that such boxes may be opened if no response is made within
such period. Seller shall have a representative at the Property during such period. All such removals and verifications during said three (3) days shall be under the supervision of a representative or representatives to be agreed upon between
Purchaser and Seller. The boxes of guests who have not responded to such written notice by so removing and verifying the contents thereof shall remain unopened and shall be listed at the end of such three (3) day period, which list shall be signed
by Seller’s and Purchaser’s respective representatives. The boxes of guests who have not responded shall be opened at the end of the third (3rd) day after the Closing Date in the presence of a representative or representatives to be agreed
upon between Purchaser and Seller and the contents recorded. Any such contents so recorded and thereafter remaining in the hands of Manager or Purchaser and the contents of any unopened boxes shall be the responsibility of the Purchaser and
Purchaser hereby agrees to 

  

 45 

 
indemnify and hold the Seller Indemnitees harmless from and against any and all losses, costs, liens, claims, liabilities or damages (including, but not
limited to, reasonable attorneys’ fees and disbursements) arising in connection therewith. Seller shall remain responsible for any claims pertaining to property allegedly deposited in safe deposit boxes prior to the Closing Date, opened during
the said three (3) day period but missing from said boxes when opened, and Seller agrees to indemnify and hold the Purchaser Indemnitees harmless from and against any and all losses, costs, liens, claims, liabilities or damages (including, but not
limited to, reasonable attorneys’ fees and disbursements) arising in connection therewith. This Section 12.18 shall survive the Closing or termination of this Agreement. 
  
 12.19 Baggage. On the Closing Date, representatives of Purchaser and Seller shall take an inventory of (i) all
baggage, valises and trunks checked or left in the care of Tenant, Owner or Manager. From and after the Closing Date, Purchaser shall be responsible for all baggage and other items listed in said inventory, together with the contents thereof, and
Purchaser agrees to indemnify and hold the Seller Indemnitees harmless from and against any and all losses, costs, liens, claims, liabilities or damages (including, but not limited to, reasonable attorneys’ fees and disbursements) arising in
connection therewith. Anything herein to the contrary notwithstanding, all luggage or other property of guests retained by Seller as security for any accounts receivable, whether or not at the Property, on the Closing Date, shall not be included in
the aforementioned inventory, but at Seller’s option may be left stored at the Property, without any charge or fee of any kind to Seller, and to the extent the same is not opened by Purchaser, without any liability to Purchaser, or, at its
option, Seller may at or after the Closing Date, at its sole cost and expense, remove same from the Property and upon such removal Seller agrees to indemnify and hold the Purchaser Indemnities harmless from and against any and all losses, costs,
liens, claims, liabilities or damages (including, but not limited to, reasonable attorneys’ fees and disbursements) on account thereof. This Section 12.19 shall survive the Closing or termination of this Agreement. 
  
 [SIGNATURES ON SEPARATE SIGNATURE PAGE FOLLOWING] 
  

 46 

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

  

											
	 SELLER:
	 	 	 	 PURCHASER:

			
	 BCM/CHI WORTHINGTON OWNER, L.P., a
 Delaware
limited partnership
	 	 	 	 DIAMONDROCK HOSPITALITY
 COMPANY, a Maryland
corporation

					
	By:	 	 BCM/CHI Worthington SPC, Inc., a
 Delaware
corporation, its sole general
 partner
	 	 	 	 	 	 
						
	 	 	 By:
	 	 /s/ Jeffrey B. Citrin
	 	 	 	 By:
	 	 /s/ Mark W. Brugger

	 	 	 Name:
	 	 Jeffrey B. Citrin
	 	 	 	 Name:
	 	 Mark W. Brugger

	 	 	 Title:
	 	 Vice President
	 	 	 	 Title:
	 	 Chief Financial Officer and
 Executive Vice President

			
	BCM/CHI WORTHINGTON TENANT, INC., a Delaware corporation	 	 	 	 
					
	By:	 	 /s/ Jeffrey B. Citrin
	 	 	 	 	 	 
	Name:	 	 Jeffrey B. Citrin
	 	 	 	 	 	 
	Title:	 	 Vice President
	 	 	 	 	 	 

  

 S-1EXHIBIT 10.25

  
 Exhibit 10.25

  

  
 PURCHASE AND SALE AGREEMENT 
  
 BY AND BETWEEN 
  
 VAMHC, INC., 
 as Seller 
  
 AND 
  
 DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP,  
 as Purchaser 
  
 Premises: 
  
 Vail Marriott Mountain Resort and Spa

 715 West Lionshead Circle 
 Vail,
Colorado 
  

  
 PURCHASE AND SALE
AGREEMENT 
  
 THIS PURCHASE AND SALE AGREEMENT (the
“Agreement”) is dated as of May 3, 2005 (the “Effective Date”), between VAMHC, INC., a Colorado corporation, having an office at c/o Vail Associates, Inc., 137 Benchmark Road, Avon, Colorado 81620
(“Seller”), and DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited partnership, having an office at c/o DiamondRock Hospitality Company, 10400 Fernwood Road, Suite 300, Bethesda, Maryland 20817
(“Purchaser”). 
  
 PRELIMINARY
STATEMENT 
  
 A. Seller owns certain real and personal
property comprising the Vail Marriott Mountain Resort and Spa more particularly described herein (collectively, the “Hotel”) located at 715 West Lionshead Circle, Vail, Colorado. 
  
 B. Seller desires to sell to Purchaser Seller’s interest in the Hotel
and Purchaser desires to purchase the same on the terms and subject to the conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing preliminary statements, and for other good and valuable consideration, the receipt and sufficiency of
which are conclusively acknowledged, the parties hereto hereby covenant and agree as follows: 
  
 ARTICLE 1. 
  
 DEFINITIONS

  
 1.1. Definitions. For the purpose of this
Agreement, the following terms shall have the respective meanings indicated in this Article with respect thereto: 
  
 “Adjacent Lots” - Lots 2 and 3, West Day Subdivision, according to the plat recorded March 10, 2005 at Reception No. 908760,
County of Eagle, State of Colorado, located adjacent to the Land and currently owned by Guarantor or one or more of Guarantor’s Affiliates. 
  
 “Affiliate” – As defined in Section 17.11 hereof. 
  
 “Agreement” - As defined in the Preamble hereof. 
  
 “Agreement Regarding Density Allocation” – As
defined in Section 17.8.2 hereof. 
  
 “Allocation Statement” - As defined in Section 8.4 hereof. 
  
 “Apportionment Time” - As defined in Section 9.1 hereof. 
  
 “Appurtenant Interests” - means all easements, rights
of way, privileges, appurtenances and other rights appertaining to the Real Property. 
  

 -1- 

 “Assignment and Assumption Agreement” - As defined in Section
8.2.1(c) hereof. 
  
 “Assignment and
Assumption of Assumed Obligations” - As defined in Section 8.2.1 hereof. 
  
 “Assumed Obligations” - means the obligations of Seller to be assumed by Purchaser pursuant to the Assignment and Assumption of
Assumed Obligations and identified as an exhibit thereto. 
  
 “Audited Financial Statements” - As defined in Section 4.2(f) hereof. 
  
 “Bookings” - means the contracts or reservations for the use or occupancy of guest rooms and/or the meeting, banquet, spa,
restaurant or other facilities of the Hotel, other than property subject to Space Leases, for the period from and after the Apportionment Time.  
  
 “Business Day(s)” - means any day except Saturday or Sunday or any other day which commercial banks in the States of New York or
Colorado are closed or permitted to be closed. 
  
 “Casualty” - As defined in Section 13.1.1 hereof. 
  
 “Casualty Notice” - As defined in Section 13.1.1 hereof. 
  
 “Closing” - As defined in Section 8.1
hereof. 
  
 “Closing Date” - As defined in
Section 8.1 hereof. 
  
 “Common
Elements” - means Seller’s 69.63% interest in the Common Elements (as defined in the Declaration) with respect to the Unit, as described in the Declaration. 
  
 “Concession Agreement” – means that Concession Agreement between New Liquor Licensee and
Purchaser Tenant Entity in the form attached hereto as Exhibit II. 
  
 “Condominium” - means The Mark/Lodge, a condominium established under the laws of the State of Colorado on March 21, 1974. 
  
 “Condominium Association” - means The Mark-Lodge Condominium Association, Inc., a Colorado nonprofit
corporation. 
  
 “Condominium Documents” -
As defined in Section 6.1.12 hereof. 
  
 “Consumables” - means all maintenance and housekeeping supplies and inventory, including, without limitation, soap, toiletries, cleaning materials and matches, stationery, pencils and other supplies of all kinds,
whether used, unused, or held in reserve storage for future use in connection with the maintenance and operation of the Hotel, which are owned by Seller and on hand on the date hereof, subject to such depletion and including such resupplies as shall
occur and be made in the normal course of business, excluding, however, 

  

 -2- 

 
(i) Food and Beverage, (ii) Operating Equipment, (iii) items which are in use in the Hotel rooms as of the Apportionment Time, and (iv) all items of property
owned by Space Lessees, Hotel guests, employees, or other persons furnishing goods or services to the Hotel. 
  
 “Cooperation and Easement Agreement” - As defined in Section 8.2.1 hereof. 
  
 “Cure Cap Amount” – means the amount of
$1,000,000, which shall be the maximum amount that Seller shall be required to expend in the aggregate for all instances in this Agreement in which Seller is required to expend up to the Cure Cap Amount to cure or otherwise remedy or address a
particular issue. 
  
 “Damage Cap”
- As defined in Section 17.5.2 hereof. 
  
 “Declaration” - means that certain Amended Declaration of Condominium for The Mark/Lodge dated as of July 25, 1978, together with all amendments thereto, as further described on Exhibit B attached
hereto. 
  
 “Deed” - As defined in
Section 8.2.1(a) hereof. 
  
 “Deposit” - As defined in Section 3.1 hereof. 
  
 “Designated Representatives” – As defined in Article 6 hereof. 
  
 “DRHC” - means DiamondRock Hospitality Company, a Maryland corporation. 
  
 “Due Diligence Materials” - As defined in
Section 4.1 hereof. 
  
 “Due Diligence
Period” - means the period from March 8, 2005 through and including May 4, 2005. 
  
 “Effective Date” – As defined in the introductory paragraph. 
  
 “Emergency” - shall mean any situation where the applicable Person, in its reasonable judgment, concludes that a particular action
(including, without limitation, the expenditure of funds) is necessary (i) to avoid material damage to property, or (ii) to protect any person from harm. 
  

“Encroachment Agreement” - As defined in Section 7.4.2 hereof. 
  
 “Environmental Laws” - means all federal, state and
local laws, statutes, rules, ordinances and regulations relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata), including,
without limitation, laws, statutes, rules, ordinances and regulations relating to emissions, discharges, releases of hazardous substances or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of hazardous substances including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601 et seq.; the Resource 

  

 -3- 

 
Conservation and Recovery Act of 1976, 42 U.S.C. §§ 6901 et seq.; the Toxic Substance Control Act, 15 U.S.C. §§ 2601 et
seq.; the Water Pollution Control Act (also known as the Clean Water Act) 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; and the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et
seq., as the same may be amended or modified prior to the Closing Date. 
  
 “Environmental Reports” – means, collectively, Report of Phase I Environmental Site Assessment & Asbestos Survey dated August 22, 1994; Asbestos Assessment Survey dated April 22, 1991;
Asbestos Inspection Activities dated March 31, 1995; Asbestos Abatement Report dated July 3, 1995; Asbestos Update Letter dated December 2, 2000; Phase I dated June 8, 2001; AG Wasenaar Letter dated April 18, 2005; AG Wasenaar Lab Report dated April
28, 2005; and, AG Wasenaar Letter dated April 28, 2005 
  
 “Escrow Agent” - As defined in Article 14 hereof. 
  
 “Escrow Agreement” - As defined in Article 14 hereof. 
  
 “Excess Violations” - As defined in Section 5.1.3 hereof. 
  
 “Excluded Permits” - means (i) the non-transferable
permits and licenses held by Seller or Operating Tenant in connection with the Hotel and those licenses, certificates and permits held by Seller that are not exclusively used in or relate to the ownership, occupancy or operation of any part of the
Hotel, (ii) the zoning rights that Purchaser is relinquishing pursuant to the Agreement Regarding Density Allocation and (iii) those rights with respect to the Adjacent Lots arising from the West Day Plat. 
  
 “Excluded Trademarks” – means those trademarks,
tradenames, copyrights and logos used by Guarantor or its affiliates with respect to the resort and ski area commonly known as “Vail Resorts”, including those trademarks, tradenames, copyrights and logos used generally in combination with,
or as part of the marketing or promotion with, “Marriott.” Excluded Trademarks do not include those trademarks, copyrights and logos which are used solely with respect to the “Vail Marriott Mountain Resort and Spa.” 

 
 “Existing Liquor License” – As defined in
Section 17.2 hereof. 
  
 “FF&E” - means all personal property, fixtures, furniture, furnishings, fittings, equipment, machinery, apparatus, appliances and all other articles of tangible personal property owned by Seller and located on
the Real Property on the date hereof and used or usable in connection with any part of the Hotel, including, without limitation, all food and beverage service equipment, cleaning service equipment and laundry and dry cleaning equipment, and subject
to such depletion and including such resupplies as shall occur and be made in the normal course of business, but excluding, however (i) Consumables, (ii) Food and Beverage, (iii) Operating Equipment, (iv) equipment and property leased pursuant to
Hotel Contracts, (v) property owned by Space Lessees, guests, employees, Franchisor or other Persons furnishing goods or services to the Hotel, and (vi) property and equipment owned by Seller and listed on Exhibit Y attached hereto,
which in the ordinary course of business of the Hotel is not used exclusively for the business, operation or management of the Hotel. 
  

 -4- 

 “Financial Statements” - As defined in Section 6.1.17 hereof.

  
 “Food and Beverage” - means all food
and beverage (alcoholic and non-alcoholic) which are owned by Seller and on hand on the date hereof, subject to such depletion and including such resupplies as shall occur and be made in the normal course of business, whether issued to the food and
beverage department or held in reserve storage, and is in unopened boxes (but including opened alcoholic beverage containers and wine bottles) or is located in the minibars in the Hotel rooms.  
  
 “Franchise Agreement” - means the Marriott Hotel
Franchise Agreement, dated as of July 23, 2001, between Franchisor and Seller, as amended by that certain letter agreement dated July 12, 2001 and by that certain First Amendment to Marriott Hotel Franchise Agreement, dated as of January 16, 2002,
between Franchisor and Seller. 
  
 “Franchisor” - means Marriott International, Inc. 
  
 “Franchisor Estoppel and Consent” - As defined in Section 7.6 hereof. 
  
 “Guarantor” - means The Vail Corporation, a Colorado corporation. 
  
 “Guest Ledger Receivables” - As defined in
Section 9.1.1 hereof. 
  
 “Hotel” - means the hotel referred to in Paragraph A of the Preliminary Statement and all of its facilities. 
  
 “Hotel Books and Records” - means all books, records, ledgers, files, information and data which are transferable and are in the
possession of Seller relating to the ownership and operation of the Property, excluding, however, information that is subject to the attorney-client or attorney work products privileges, or is confidential and proprietary with respect to the
operation, financial condition or finances of Seller’s affiliates (as compared to the Hotel itself). 
  
 “Hotel Contracts” - means all service, maintenance, purchase order, reservation and telephone equipment and system contracts, and
other contracts and/or leases where Seller is employer, lessee or purchaser, as the case may be, with respect to the ownership, maintenance, operation, provisioning or equipping of the Hotel (including, without limitation, those identified on
Exhibit L hereto), any contracts and leases entered into between the date hereof and Closing in accordance with Section 12.1 hereof and any warranties and guaranties relating to any of such leases or contracts, but
excluding, however (i) Bookings, (ii) Space Leases, (iii) the Condominium Documents, (iv) the Penthouse Documents, (v) the Franchise Agreement, (vi) insurance policies, (vii) the Settlement Agreement and (viii) the Operating Lease. 

  
 “Hotel Name” - means the name of the
Hotel or any trademarks or tradenames, logos and designs associated therewith. 
  
 “Hotel Renovations” - means the work described on Exhibit T attached hereto. 
  

 -5- 

 “Hotel Renovations Contracts” - As defined in Section 17.12 hereof.

  
 “Improvements” - means Seller’s
interest in and to all improvements located on the Land, Unit or Common Elements.  
  
 “Indemnitor” - As defined in Section 17.5.4 hereof. 
  
 “IRC” - As defined in Section 8.2.1(e) hereof. 
  
 “Land” - means the real property more particularly described on Exhibit A-1 attached
hereto. 
  
 “Liquor Authority” - means,
collectively, the Colorado Liquor Enforcement Division and Town of Vail, Colorado. 
  
 “Losses” means any and all claims (including third party claims), demands, liabilities, and out-of-pocket damages (including, without limitation damages, on account of personal injury or death,
property damage or damage to natural resources), penalties, interest, liens, costs and expenses, including, without limitation, reasonable attorney’s fees and disbursements, but excluding consequential, punitive and special damages or lost
profits. 
  
 “New Liquor Licensee” –
means Vail Hotel Management Company, LLC. 
  
 “Management Agreement” – As defined in Section 8.2.1(n) hereof. 
  
 “Manager” - means Vail Hotel Management Company, LLC. 
  
 “Miscellaneous Hotel Assets” - means all transferable or assignable surveys, warranties and items of
intangible Personal Property relating to the ownership, use, occupancy or operation of the Hotel and owned by, and in possession or control of, Seller (including, for example, telephone numbers to the extent of Seller’s interest therein,
listings and directories), excluding, however, (i) Hotel Contracts; (ii) Bookings; (iii) Space Leases; (iv) the Condominium Documents and the Declaration; (v) the Penthouse Documents; (vi) the Franchise Agreement and the Property of Franchisor
specified therein; (vii) Permits and Excluded Permits; (viii) cash or other funds, whether in petty cash or house banks, on deposit in bank accounts or in transit for deposit (except to the extent they are transferred to Purchaser and Seller
receives a credit on the Settlement Statement for any such prepaid item); (ix) Hotel Books and Records; (x) receivables (except to the extent they are transferred to Purchaser and Seller receives a credit on the Settlement Statement for any such
prepaid item); (xi) refunds, rebates or other claims, or any interest thereon for periods or events occurring prior to the Apportionment Time (except to the extent they are transferred to Purchaser and Seller receives a credit on the Settlement
Statement for any such prepaid item); (xii) utility and similar deposits (except to the extent they are transferred to Purchaser and Seller receives a credit on the Settlement Statement for any such prepaid item); (xiii) prepaid insurance or other
prepaid items (except to the extent they are transferred to Purchaser and Seller receives a credit on the Settlement Statement for any such prepaid item); (xiv) prepaid license and Permit fees (except to the extent they are transferred to 

  

 -6- 

 
Purchaser and Seller receives a credit on the Settlement Statement for any such prepaid item); (xv) Excluded Trademarks; and (xvi) the items set forth on
Exhibit O hereto. 
  
 “New Liquor
License” - As defined in Section 17.2 hereof. 
  
 “New Objection Period” - As defined in Section 7.4.2 hereof. 
  
 “New Title Objections” - As defined in Section 7.4.2 hereof. 
  
 “New Violations Period” - As defined in Section
5.1.3 hereof. 
  
 “Non-Material Hotel
Contracts” – As defined in Section 6.1.16 hereof. 
  
 “Notice” - As defined in Section 15.1 hereof. 
  
 “Operating Equipment” - means all china, glassware, linens, silverware and uniforms, whether in use or held in reserve storage for
future use in connection with the operations of the Hotel, which are owned by Seller and are on hand on the date hereof, subject to such depletion and including such resupplies as shall be made in the normal course of business and in accordance with
Section 12.1. 
  
 “Operating
Lease” - means that certain Lease, effective as of December 17, 2001, between Seller and Operating Tenant. 
  
 “Operating Tenant” - means Vail Food Services, Inc., a Colorado corporation. 
  
 “Penthouse Documents” - As defined in Section
6.1.13 hereof. 
  
 “Penthouse
Estoppels” - As defined in Section 7.7 hereof. 
  
 “Penthouses” - means those certain estates above surface located above the surface of the Land and more particularly described on Exhibit Z-1 hereto. 
  
 “Permanent Liquor License” - As defined in
Section 17.2.2 hereof. 
  
 “Permits” - means all licenses, certificates and permits held by Seller or Operating Tenant and used in or relating to the ownership, occupancy or operation of any part of the Hotel. 
  
 “Permitted Exceptions” - As defined in Section
7.4.2 hereof. 
  
 “Person” or
“Persons” - means any individual, limited partnership, limited liability company, general partnership, association, joint stock company, joint venture, estate, trust (including any beneficiary thereof), unincorporated
organization, government or any political subdivision thereof, governmental unit or authority or any other entity. 
  
 “Personal Property” - means all of the Property other than Real Property and the Appurtenant Interests. 
  

 -7- 

 “Planned Condominiums” - means the condominium units, parking structure, estates
above surface and other facilities and improvements that Seller (and/or one of more of its affiliates) intends to develop, construct and sell to the public on certain real property located adjacent to the Hotel and legally described as Lot 2, West
Day Subdivision, according to the plat recorded March 10, 2005 at Reception No. 908760, County of Eagle, State of Colorado. 
  
 “Preliminary Title Report” - As defined in Section 7.1 hereof. 
  
 “Prohibited Person” - means any of the following: (a)
a Person that is listed in the Annex to, or is otherwise subject to the provisions of, Executive Order No. 13224 on Terrorist Financing (effective September 23, 2001) (the “Executive Order”); (b) a Person owned or controlled
by, or acting for or on behalf of any Person that is listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (c) a Person that is named as a “specially designated national” or “blocked person”
on the most current list published by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) at its official website, http://www.treas.gov/offices/enforcement/ofac; (d) a Person that is otherwise the
target of any economic sanctions program currently administered by OFAC; or (e) a Person that is controlled, controlled by or under common control with, directly or indirectly, with of any person or entity identified in clause (a), (b), (c) and/or
(d) above. 
  
 “Property” - As
defined in Section 2.1 hereof. 
  
 “Property Condition Reports” – means, collectively, Property Evaluation Report prepared by Claris Services dated August 4, 1994; Monroe & Newell engineering report dated May 22, 2001; Encompass engineering
report dated May 17, 2001; John E. McGovern engineering report dated May 16, 2001; Encompass engineering report dated July 3, 2001; Dave Thorpe Consulting Services report dated June 12, 2001; Riviera Electric report dated April 15, 1998; Robinson
Mechanical report dated April 15, 1998; Koechlein Consulting Engineers Soils Test Report; and, Elevator Inspection Certificates Expiring 10/31/05. 
  
 “Purchase Price” - As defined in Section 3.1 hereof. 
  
 “Purchaser” - As defined in the Preamble hereto. 
  
 “Purchaser’s Consultants” – As defined in
Section 4.1 hereof. 
  
 “Purchaser
Indemnified Parties” - As defined in Section 17.5.2 hereof. 
  
 “Purchaser’s Claims” - As defined in Section 17.5.2 hereof. 
  
 “Purchaser’s Guaranty” - means a guarantee in the form attached hereto as Exhibit X, pursuant to which
DiamondRock Hospitality Limited Partnership shall guarantee the performance by any assignee of DiamondRock Hospitality Limited Partnership’s interest in this Agreement of Purchaser’s obligations hereunder (and the other documents executed
at Closing other than the (i) Cooperation and Easement Agreement and (ii) Parking Easement Agreement). 
  
 “Purchaser Tenant Entity” – means DiamondRock Vail Tenant, LLC. 
  

 -8- 

 “Real Property” - means the Land, Unit, Common Elements and Improvements.

  
 “Reserves” - means any existing
FF&E replacement reserves and/or other cash reserves related to the operation of the Hotel in the name of or for the benefit of Seller. 
  
 “ROFR Waiver and Release” - As defined in Section 8.1.1 hereof. 
  
 “Seller” - As defined in the Preamble
hereto. 
  
 “Seller Indemnified Parties” -
As defined in Section 17.5.1 hereof. 
  
 “Seller’s Claims” - As defined in Section 17.5.1 hereof. 
  
 “Seller’s Express Representations” – As defined in Section 6.1 hereof. 
  
 “Seller’s Guaranty” - means a guarantee in the
form attached hereto as Exhibit W, pursuant to which Guarantor shall guarantee Seller’s performance of its obligations hereunder (and the other documents executed at Closing other than the (i) Cooperation and Easement Agreement
and (ii) Parking Easement Agreement). 
  
 “Seller’s Property Representations” - means Seller’s Express Representations made in Section 6.1.8 through and including Section 6.1.27. 
  
 “Seller’s Representations” – means
Seller’s Express Representations and the representations of Seller set forth in Section 17.3. 
  
 “Settlement Agreement” - As defined in Section 11.1 hereto. 
  
 “Settlement Statement” - As defined in Section
8.2.1(q) hereto. 
  
 “Shared
Permit” - means the West Day Plat. 
  
 “Space Leases” - means the leases identified on Exhibit M hereto. 
  
 “Space Lessee” - means any person or entity entitled to occupancy of any portion of the Hotel under a Space Lease. 
  
 “Survey” - As defined in Section 7.2
hereof. 
  
 “Survival Period” - As defined
in Section 17.5.2 hereof. 
  
 “Tenant
Estoppels” - As defined in Section 7.8 hereof. 
  
 “Third-Party Reports” - means any reports, studies or other information prepared or compiled for Purchaser by any of Purchaser’s Consultants or other third-parties in connection with
Purchaser’s investigation of the Property. 
  
 “Title Company” - means Land Title Guarantee Company. 
  

 -9- 

 “Title Report” - As defined in Section 7.1 hereof. 
  
 “Threshold” - As defined in Section
17.5.2(a) hereof. 
  
 “True-Up” -
As defined in Section 9.2 hereof. 
  
 “Unit” – means the condominium unit designated as the “Lodge Unit” in the Condominium and more particularly described on Exhibit A-2 attached hereto. 
  
 “West Day Plat” - means that certain Final Plat, West
Day Subdivision, recorded March 10, 2005 at Reception No. 908760, with the Clerk and Recorder of Eagle County, Colorado. 
  
 1.2. References. Except as otherwise specifically indicated, all references in this Agreement to Article and Section numbers refer to Article and
Sections of this Agreement, and all references to Exhibits refer to the Exhibits attached hereto. Unless otherwise expressly stated, the words “herein”, “hereof”, “hereby”, “hereunder”,
“hereinafter”, and words of similar import refer to this Agreement as a whole and not to any particular Article or Section hereof. Any of the terms defined herein may, unless the content otherwise requires, be used in the singular or the
plural depending on the reference. All words or terms used in this Agreement, regardless of the number or gender in which they are used, shall include any other number or gender, as the context may require. References to contracts, agreements and
other contractual instruments shall be deemed to include all subsequent amendments, supplements and other modifications thereto, but only to the extent such amendments, supplements and other modifications are not prohibited by the terms of this
Agreement. The terms “including” shall mean “including, without limitation”, except where the context otherwise requires. The terms “law”, “laws”, “provisions of law”, “requirements of
law”, and words of similar import shall mean all laws, statutes, ordinances, codes (including building and fire codes), rules, regulations, requirements, judgments, arbitration awards or decisions, rulings, decrees, executive, judicial and
other orders and directives of any or all of the federal, state, county and city and local governments and all agencies, authorities, bureaus, courts, departments, subdivisions, or offices thereof, and of any other governmental, public or
quasi-public authorities (including board of fire underwriters or other insurance body) having jurisdiction and the direction of any public officer pursuant to law, and all amendments and supplements thereto effective prior to the Closing Date.
References to specific statutes include (i) any and all amendments and modifications thereto in effect at the time in question, (ii) successor statutes of similar purpose and import and (iii) all rules, regulations and orders promulgated thereunder.
The captions and paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of any part of this Agreement. 
  
 1.3. Construction. The parties acknowledge that they are sophisticated parties, that their respective attorneys have
reviewed this Agreement and that the normal 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 or any amendments or Exhibits hereto.

  

 -10- 

 ARTICLE 2. 
  
 SALE AND PURCHASE 
  
 2.1. Sale and Purchase. Upon and subject to the terms and conditions set forth in this Agreement, Seller hereby agrees to sell, assign or otherwise
transfer to Purchaser, and Purchaser hereby agrees to purchase, accept and assume from Seller, all of Seller’s right, title and interest, if any, in and under the following (herein collectively called the “Property”):

  

	 	(a)	the Land; 

  

	 	(b)	the Unit; 

  

	 	(c)	the Common Elements; 

  

	 	(d)	the Improvements; 

  

	 	(e)	the Appurtenant Interests; 

  

	 	(f)	the FF&E; 

  

	 	(g)	the Consumables; 

  

	 	(h)	the Food and Beverage; 

  

	 	(i)	the Operating Equipment; 

  

	 	(j)	the Permits (other than Excluded Permits and the Shared Permit); 

  

	 	(k)	the Hotel Books and Records; 

  

	 	(l)	subject to Section 17.10, the Assumed Obligations and the Condominium Documents; 

  

	 	(m)	the Bookings, Hotel Contracts, Space Leases, Penthouse Documents and Declaration; and 

  

	 	(n)	the Miscellaneous Hotel Assets. 

  
 ARTICLE 3. 
  
 PURCHASE PRICE AND DEPOSIT 
  
 3.1. Purchase
Price. The Purchase Price for the Property shall be an amount equal to $62,000,000 (the “Purchase Price”), subject to apportionment as provided in Article 9 below or as otherwise provided under this Agreement,
payable as follows: 
  
 (i) On the date hereof,
Purchaser shall deliver to Escrow Agent, in immediately available funds, an amount equal to $3,000,000 (such amount, together with any interest thereon, and as the same may be further increased pursuant to Section 8.1 hereof, the
“Deposit”); 
  

 -11- 

 (ii) At the Closing, Purchaser shall deliver the balance of the Purchase Price to Seller,
as adjusted pursuant to Article 9 hereof or as otherwise provided under this Agreement, in immediately available funds. 
  
 ARTICLE 4. 
  
 SUBMITTALS TO AND INSPECTION BY PURCHASER 
  
 4.1. Deliveries to Purchaser. Seller agrees that, subject to the confidentiality provisions hereof, Seller will make available at the Hotel,
pursuant to Section 4.2 hereof, to Purchaser, Purchaser’s prospective lenders, and Purchaser’s and Purchaser’s prospective lenders’ inspectors, appraisers, contractors, engineers and employees (collectively,
“Purchaser’s Consultants”), upon request, any documents reasonably requested by Purchaser with respect to the Hotel which are in Seller’s or its affiliate’s possession or located at the Hotel (such materials,
together with any other documents and information with respect to the Hotel delivered or made available by Seller to Purchaser, the “Due Diligence Materials”), excluding, however, documents that are subject to the
attorney-client or attorney work products privileges, or are confidential and proprietary with respect to the operation, financial condition or finances of Seller’s affiliates (as compared to the Hotel itself). 
  
 4.2. Inspections. 
  
 (a) Subject to the provisions of Section
4.2(b) and the confidentiality provisions hereof, Seller shall permit Purchaser and Purchaser’s Consultants to inspect the Property and review the Due Diligence Materials, including Hotel Books and Records. 
  
 (b) Any physical inspections of, or otherwise performed by
Purchaser at, the Hotel shall be conducted at reasonable times, during normal business hours, without interfering with the management, operation, use or maintenance of any portion of the Property by the Seller Indemnified Parties. Seller shall be
entitled to have a representative present at all times during each such inspection. Purchaser shall notify Seller not less than 2 Business Days in advance of scheduling any physical inspection of, or other inspection at, the Hotel hereunder. In
making any inspection hereunder, Purchaser will treat, and Purchaser will cause Purchaser’s Consultants to treat, all information obtained by Purchaser or any of them pursuant to or as a result of any inspection of the Property, Hotel Books and
Records and Due Diligence Materials made hereunder as strictly confidential in accordance with the terms and provisions of Section 17.9 hereof. All inspection fees, appraisal fees, engineering fees and other costs and expenses of any
kind incurred by Purchaser relating to such inspections of the Property will be the sole expense of Purchaser. Neither Purchaser nor any of Purchaser’s Consultants shall be permitted to conduct borings or any other physically invasive tests or
inspections or any 

  

 -12- 

 
Phase II environmental audit without Seller’s prior written consent, which may be given or withheld in Seller’s sole discretion. No consent by
Seller to any such activity shall be deemed to constitute a waiver by Seller or assumption of liability or risk by Seller. 
  
 (c) Purchaser shall maintain and cause its third party consultants to maintain (i) casualty insurance and comprehensive public liability
insurance with coverages of not less than $1,000,000 for injury or death to any one person and $1,000,000 with respect to property damage, and (ii) worker’s compensation insurance for all of their respective employees in accordance with the law
of the state of Colorado. Purchaser shall request from each of Purchaser’s Consultants and use commercially reasonable efforts to deliver proof of the insurance coverage required pursuant to this Section 4.2(c) to Seller (in the
form of a certificate of insurance) prior to Purchaser’s or Purchaser’s Consultant’s entry onto the Real Property. 
  
 (d) Purchaser agrees to indemnify, hold harmless and defend (with counsel approved by Seller, such approval not be unreasonably withheld,
delayed or conditioned) the Seller Indemnified Parties harmless from and against any and all Losses to the extent arising out of Purchaser’s or Purchaser’s Consultants’ entry onto the Real Property, or any inspections or other matters
performed by Purchaser or Purchaser’s Consultants with respect to the Real Property (including from entry and inspections performed prior to the Effective Date); provided, however, that Purchaser shall not be required to
indemnify, hold harmless or defend the Seller Indemnified Parties from and against any Loss to the extent arising out of any pre-existing condition at the Property if Purchaser promptly ceases its activity upon the discovery of such condition and
promptly notifies Seller of the discovery, and if such Loss was not otherwise caused by the negligence or willful misconduct of Purchaser or Purchaser’s Consultants. Such indemnity, hold harmless and agreement to defend shall survive the
Closing or termination of this Agreement. 
  
 (e)
Purchaser may terminate this Agreement for any reason whatsoever prior to the expiration of the Due Diligence Period. If Purchaser elects to terminate this Agreement pursuant to this paragraph, this Agreement shall be deemed null and void (except
for those obligations which expressly survive termination), the parties hereto shall have no further obligations to or recourse against each other except as otherwise expressly set forth herein, and the Deposit shall be returned to Purchaser.

  
 (f) At no cost to Seller, Seller shall
cooperate in good faith to assist Purchaser in Purchaser’s obtaining (at Purchaser’s sole cost and expense) audited financial statements in accordance with generally accepted accounting principles, consistently applied, for the operation
of the Hotel for the 3-year period ending on December 31, 2004 (the “Audited Financial Statements”) prepared by KPMG LLP or another so-called “Big Four” accounting firm. Purchaser’s obligation to pay for the
Audited Financial Statements shall survive termination of this Agreement or the Closing. 
  

 -13- 

 ARTICLE 5. 
  
 CONDITION OF THE PROPERTY 
  
 5.1. Condition of the Property. PURCHASER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT: 
  
 5.1.1. SUBJECT ONLY TO SELLER’S OBLIGATIONS PURSUANT TO SECTION 17.12 HEREOF, IT IS
PURCHASING THE PROPERTY “AS IS, WHERE IS AND WITH ALL FAULTS”; 
  
 5.1.2. EXCEPT FOR “SELLER’S EXPRESS REPRESENTATIONS”, PURCHASER IS NOT RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, STATUTORY OR
OTHERWISE, FROM SELLER OR ANY PARTNER, DIRECTOR, SHAREHOLDER, MEMBER, MANAGER, OFFICER, EMPLOYEE, AFFILIATE, ATTORNEY, AGENT, ADVISOR OR BROKER THEREOF, AS TO ANY MATTER CONCERNING THE PROPERTY, OR SET FORTH, CONTAINED OR ADDRESSED IN ANY DUE
DILIGENCE MATERIALS (INCLUDING WITHOUT LIMITATION, THE COMPLETENESS THEREOF), INCLUDING WITHOUT LIMITATION: 
  
 (a) the quality, nature, habitability, merchantability, use, operation, value, marketability, adequacy or physical condition of the
Property or any aspect or portion thereof, including, without limitation, structural elements, foundation, roof, appurtenances, access, landscaping, electrical, mechanical, HVAC, plumbing, sewage, water and utility systems, and facilities and
appliances; 
  
 (b) the zoning or other legal
status of the Property or the existence of any other public or private restrictions on the use of the Property; 
  
 (c) the compliance of the Property or its operation with any applicable codes, laws, regulations, statutes, ordinances, covenants,
conditions and restrictions of any governmental authority or of any other person or entity (including, without limitation, the Americans with Disabilities Act of 1990, as amended); 
  
 (d) the presence, absence, condition or compliance of any hazardous materials, mold or wetlands on, in,
under, above or about the Property or neighboring property or the compliance of the Property with Environmental Laws; 
  
 (e) the quality of any labor or materials used in the Improvements; 
  
 (f) any leases, permits, warranties, service contracts or any other agreements affecting the Property or the
intentions of any party with respect to the negotiation and/or execution of any lease or contract with respect to the Property; or 
  
 (g) the economics of, or the income and expenses, revenue or expense projections or other financial matters, relating to the operation of
the Property; 
  
 5.1.3. It is taking the
Property subject to all violations of any federal, state or local law, including, without limitation, those violations (a) disclosed in the Title Report or violations searches, or (b) contained in the Permits. If any actual, existing violations are
noted or 

  

 -14- 

 
issued by any federal, state or local governmental authority between the date hereof and the day immediately preceding the Closing Date (the “New
Violations Period”), then Purchaser shall be obligated to close the transaction contemplated under this Agreement and shall receive a credit against the Purchase Price for the cost to cure such violations; provided,
however, that if such violations are incapable of being cured or the cost to cure such violations is greater than the Cure Cap Amount (or, if less, so much of the Cure Cap Amount as remains to be expended pursuant to the terms of this
Agreement) (such violations, “Excess Violations”), Purchaser shall not be obligated to close the transaction contemplated hereby and may terminate this Agreement, unless Seller, at its sole option, provides Purchaser an
additional credit against the Purchase Price to cure such violations. Seller shall notify Purchaser within 5 Business Days after Seller learns of any Excess Violations of the cost to cure such violations and whether it elects to provide an
additional credit to Purchaser to cure the Excess Violations. If Seller notifies Purchaser that it is unable to cure the Excess Violations or is unwilling to provide an additional credit to Purchaser to cure the Excess Violations, then Purchaser
shall provide written notice to Seller within 3 Business Days after notice from Seller (but in no event later than the Closing Date) whether (x) Purchaser agrees to waive such violations, in which event the transactions contemplated under this
Agreement shall close as scheduled with no adjustment to the Purchase Price, other than the reasonable cost to cure all Excess Violations up to the Cure Cap Amount (or, if less, so much of the Cure Cap Amount as remains to be expended pursuant to
the terms of this Agreement), or (y) that Purchaser is unwilling to waive such violations, in which event this Agreement shall terminate and be deemed null and void (except for those obligations which expressly survive termination), the parties
hereto shall have no further obligations to or recourse against each other except as otherwise expressly set forth herein, and the Deposit shall be returned to Purchaser; 
  
 5.1.4. Seller shall not be liable or bound in any manner by any express or implied warranties, guaranties,
promises, statements, representations or information pertaining to the Property made or furnished by any real estate broker, dealer, agent, employee, financial advisor or other person representing or purporting to represent Seller; 
  
 5.1.5. That its obligations under this Agreement shall not
be subject to any financing contingency; and 
  
 5.1.6. Purchaser represents and warrants that, as of the date hereof and as of the Closing Date, it has and shall have reviewed and conducted such independent analyses, studies (including, without limitation, environmental studies and
analyses concerning the presence of lead, mold, asbestos, PCBs and radon in and about the Property), reports, investigations and inspections as it deems appropriate in connection with the Property. 
  
 5.1.7. Purchaser agrees that if Seller provides or has
provided any documents, summaries, opinions or work product of consultants, surveyors, architects, engineers, title companies, governmental authorities or any other Person with respect to the Property, including, without limitation, the
Environmental Reports and Property Condition Reports, Seller has done so or shall do so only for the convenience of both parties, and the reliance by Purchaser upon any such documents, summaries, opinions or work product shall not create or give
rise to any liability of or against the Seller Indemnified Parties, except to the extent related to any fraud 

  

 -15- 

 
committed by such Seller Indemnified Party. Absent fraud, Purchaser shall rely only upon any title insurance obtained by Purchaser with respect to title to
the Real Property. 
  
 5.1.8. Other than
Seller’s Representations, Seller makes no representation or warranty, express, written, oral, statutory, or implied, and all such representations and warranties are hereby expressly excluded and disclaimed. Any Due Diligence Materials are for
informational purposes only and, together with all Third-Party Reports (to the extent Purchaser is not legally prohibited in its reasonable judgment from delivering such materials to Seller), shall be returned by Purchaser to Seller promptly
following the return of the Deposit to Purchaser (if Purchaser is otherwise entitled to such Deposit pursuant to the terms of this Agreement) if this Agreement is terminated for any reason. Except for Seller’s Express Representations, Purchaser
shall not in any way be entitled to rely upon the accuracy of such Due Diligence Materials. Purchaser recognizes and agrees that the Due Diligence Materials may not be complete or constitute all of such documents which are in Seller’s
possession or control, but are those that are readily available to Seller and its affiliates after reasonable inquiry to ascertain their availability. Purchaser understands that, although Seller will use commercially reasonable efforts to locate and
make available the Due Diligence Materials and other documents required to be delivered or made available by Seller pursuant to this Agreement, Purchaser will not, except as expressly provided in any Seller’s Express Representation, rely on
such Due Diligence Materials or other documents as being a complete and accurate source of information with respect to the Property, and will instead in all instances rely exclusively on its own inspections and consultants with respect to all
matters which it deems relevant to its decision to acquire, own and operate the Property. 
  
 5.1.9. Purchaser acknowledges that the Declaration provides for a right of first refusal with regard to a portion of the Hotel. Other than
the ROFR Waiver and Release, Purchaser acknowledges that Seller has made no representation, warranty, covenant or agreement whatsoever with respect to the right of first refusal set forth in the Declaration. 
  
 5.1.10. Purchaser acknowledges that Seller has not made, and
Seller affirmatively disclaims, any representations or warranties regarding the acts or omissions, including construction activities, of any owner of record of any unit in the Condominium (other than Seller in its capacity as the owner of record of
the Unit and then only to the extent set forth in Seller’s Express Representations or any other express representations, if any, made by Seller, to Purchaser, in Seller’s capacity as the owner of record of the Unit in the Assignment and
Assumption of Assumed Obligations (if executed)). 
  
 This
Section 5.1 shall survive the Closing or termination of this Agreement. 
  

 -16- 

 ARTICLE 6. 
  
 REPRESENTATIONS AND WARRANTIES 
  
 6.1. Seller’s Representations and Warranties. Seller makes the following representations and warranties as of the date hereof
(“Seller’s Express Representations”). 
  
 6.1.1. Organization and Power. Seller is a corporation, duly organized, validly existing and authorized to do business and is in good standing under the laws of the State of Colorado. Seller has all requisite
corporate powers and authorizations to carry on its business as now conducted and to enter into and perform its obligations hereunder and under any document or instrument executed and delivered on behalf of Seller hereunder. 
  
 6.1.2. Bankruptcy. Seller is not the subject debtor
under any federal, state or local bankruptcy or insolvency proceeding, or any other proceeding for dissolution, liquidation or winding up of its assets. 
  
 6.1.3. Authorization and Execution. This Agreement has been duly authorized by all necessary action on the part of Seller, has been
duly executed and delivered by Seller, constitutes the valid and binding agreement of Seller and is enforceable in accordance with its terms, and the documents or instruments contemplated hereby have been duly authorized by all necessary action on
the part of Seller, will be duly executed and delivered by Seller, and when so executed and delivered will constitute, the valid and binding agreements of Seller, enforceable in accordance with their terms, except as such enforcement may be limited
by bankruptcy, insolvency, reorganization, moratorium, or other laws affecting enforcement of creditor’s rights generally and by general principles of equity (whether applied in a proceeding at law or equity). Each person executing this
Agreement and the other documents contemplated hereby on behalf of Seller has (or will have at the time of such execution) the authority to do so. 
  
 6.1.4. Non-contravention. Except as set forth on Exhibit FF, the execution and delivery of, and the performance by
Seller of its obligations under, this Agreement, the Cooperation and Easement Agreement and the Parking Easement Agreement do not and will not contravene, or constitute a default under, any provision of applicable law or regulation or any agreement,
judgment, injunction, order, decree or other instrument binding upon Seller or to which the Property is subject, or result in the creation of any lien or other encumbrance on any asset of Seller. 
  
 6.1.5. Seller Is Not a “Foreign Person”.
Seller is not a “foreign person” within the meaning of Section 1445 of the IRC, as amended (i.e., Seller is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person as those terms are defined in the
IRC and regulations promulgated thereunder). 
  
 6.1.6. No Approvals. Other than pursuant to the Franchise Agreement, as disclosed in the Title Report or documents provided therewith, filings with the Liquor Authority, routine transfers of local business licenses and the payment of
fees and taxes related thereto, and as set forth on Exhibit FF attached hereto, no governmental authority or third-party filings, approvals or consents are required for Seller’s execution and delivery of, or performance of its
obligations under, this Agreement, the Cooperation and Easement Agreement and the Parking Easement Agreement, and Seller’s execution, delivery and performance of this Agreement, the Cooperation and Easement Agreement and the Parking Easement
Agreement, do not and will not violate, and are not restricted by, any other contractual obligation or any federal, state or local laws, statutes or ordinances to which Seller is a party or by which Seller or any of the Property is bound.

  

 -17- 

 6.1.7. Prohibited Person. Seller is not a Prohibited Person. To Seller’s
knowledge, none of its controlling investors, nor any brokers or other agents (if any) acting or benefiting in any capacity in connection with this Agreement, is a Prohibited Person. The assets Seller will transfer to Purchaser under this Agreement
are not the property of, nor is any controlling interest therein beneficially owned, directly or indirectly, by a Prohibited Person. 
  
 6.1.8. Compliance with Existing Laws. Seller has to its knowledge received no uncorrected notice of violation of any laws binding
upon Seller or to which the Property is subject. Seller further represents that to its knowledge no written notice from any governmental authority has been received by Seller revoking, canceling, denying renewal of, or threatening any such action
with respect to any authorization. 
  
 6.1.9.
Employees. Seller has not entered into any employment contracts or labor union contracts and has not established any retirement, health insurance, vacation, pension, profit sharing or other benefit plans relating to the operation or
maintenance of the Property for which Purchaser shall have any liability or obligation. Seller has no employees. 
  
 6.1.10. Condemnation Proceedings. There is no condemnation or eminent domain proceeding pending or to the knowledge of Seller,
threatened, against the Real Property or any part thereof. 
  
 6.1.11. Actions or Proceedings. Except as set forth in Exhibit I, there is no action, suit or proceeding pending or known to Seller to be threatened against or affecting Seller or the Property in
any court, before any arbitrator or before or by any governmental authority. 
  
 6.1.12. Declaration and Condominium Documents. To Seller’s knowledge, upon full execution of the Settlement Agreement, satisfaction of the Consent Condition (as defined in the Settlement Agreement), and
completion of all action items set forth in Sections 2.1 and 2.2 of the Settlement Agreement, the only documents governing or affecting the Condominium will be the Declaration and Exhibits C, D and E of the Settlement Agreement (the
“Condominium Documents”) and any other documents agreed to or executed in connection with the Settlement Agreement. 
  
 6.1.13. Penthouse Documents. Exhibit Z-2 identifies all restrictive easement agreements and other equivalent
documents governing the Penthouses, including all amendments or modifications thereto (collectively, the “Penthouse Documents”), copies of which have been delivered to Purchaser. The Penthouse Documents are, to Seller’s
knowledge, in full force and effect and to Seller’s knowledge there are no defaults or events that with notice or lapse of time or both which constitute a default by Seller under the Penthouse Documents and, to Seller’s knowledge, by any
other party thereto. 
  
 6.1.14. Franchise
Agreement. The Franchise Agreement is in full force and effect and to Seller’s knowledge there are no material defaults or events that with notice or lapse of time or both which constitute a material default by Seller under the Franchise
Agreement and, to Seller’s knowledge, by Franchisor. 
  

 -18- 

 6.1.15. Hazardous Substances. Other than as set forth in the Environmental
Reports: 
  
 (a) Seller has received no written
notice from any governmental authority of any actual or potential violation of or failure to comply with any Environmental Laws with respect to the Real Property which remains uncorrected, or of any actual or threatened obligation to undertake or
bear the cost of any clean-up, removal, containment, or other remediation under any Environmental Law with respect to the Real Property which remains unperformed. 
  
 (b) There are no pending or, to Seller’s knowledge, threatened actions arising under or pursuant to any
Environmental Laws with respect to or affecting the Real Property. 
  
 (c) To Seller’s knowledge, other than (i) hazardous substances used in the ordinary course of maintaining and cleaning the Property in commercially reasonable amounts or used during the Renovation Project in
accordance with applicable Environmental Laws, and (ii) hazardous substances used as fuels, lubricants or otherwise in connection with vehicles, machinery and equipment located at the Property in commercially reasonable amounts, no hazardous
substances are present on or in the Property. To Seller’s knowledge, the hazardous substances described in the foregoing clauses (i) and (ii) are being used and disposed of in compliance with all Environmental Laws. 
  
 6.1.16. Contracts. To Seller’s knowledge, there
are no Hotel Contracts or Space Leases that will affect the Property following the Closing Date, except as set forth on Exhibit L and Exhibit M or as otherwise permitted under this Agreement. If there exists any Hotel Contract that is
not shown on Exhibit L, the foregoing representation shall not be deemed to be incorrect to the extent (a) amounts paid under such Hotel Contract are reflected on the Financial Statements, (b) amounts paid under such Hotel Contract are
not reflected on the Financial Statements but such Hotel Contract requires payments in the aggregate after the Closing Date of $25,000 or less per year, (c) such Hotel Contract is entered into after the date hereof in accordance with Section
12.1, (d) such Hotel Contract is a contract for the rental of a Hotel room, suite, banquet or meeting room or convention facilities, (e) such Hotel Contract is a purchase order for Consumables, Operating Equipment or Food and Beverage, or
(f) such Hotel Contract is terminable by Purchaser without penalty on not more than 60 days prior notice (the Hotel Contracts identified in subsections (b), (d), (e) and (f) collectively may be referred to as “Non-Material Hotel
Contracts”). To Seller’s knowledge, each Space Lease and Hotel Contract (other than Non-Material Hotel Contracts) are in full force and effect and to Seller’s knowledge there are no defaults or events that with notice or lapse
of time or both which constitute a default by Seller under such Space Leases or Hotel Contracts (other than Non-Material Hotel Contracts) and, to Seller’s knowledge, by any other party thereto. With respect to those Hotel Contacts identified on
Exhibit FF attached hereto, Seller’s execution, delivery and performance of this Agreement and the closing of the transactions contemplated do not and will not trigger the payment of any termination or similar fees except to the
extent identified on such Exhibit FF. 
  

 -19- 

 6.1.17. Financial Information. Seller has provided to Purchaser a copy of a
balance sheet as of March 31, 2005 and as of December 31, 2004 and income statements and a statement of cash flows for the three-month period ending March 31, 2005 and for the fiscal year ending December 31, 2004 (collectively, “Financial
Statements”). The Financial Statements are (a) are true, complete and correct in all material respects, and (b) accurately represent the financial condition and results of operations of Seller or the Property, as applicable, as of the
date of such reports. 
  
 6.1.18.
Insurance. Exhibit N is a true, correct and complete list of the insurance policies maintained by Seller or on Seller’s behalf for the Property. Seller has not received written notice from any insurance company that any
such insurance policy has been terminated. 
  
 6.1.19. Sufficiency of Assets. The Personal Property is sufficient in quality and amounts as are appropriate for the operation of the Hotel as a full service Marriott Resort and Hotel. 
  
 6.1.20. Title. Seller owns the Personal Property free
and clear of liens, other than the Permitted Exceptions to the extent applicable to the Personal Property. All Bookings are held in Seller’s name. 
  
 6.1.21. Property Tax Appeals. Except as otherwise set forth on Exhibit Q, there are no pending ad valorem property
tax appeals that have been filed by Seller or its affiliates with respect to the Property. 
  
 6.1.22. Permits. To Seller’s knowledge, all Permits maintained by Seller for the operation of the Hotel are (i) set forth on
Exhibit R-1 to this Agreement, and (ii) in full force and effect. Except as otherwise disclosed to Purchaser in said Exhibit R-1, to Seller’s knowledge, as of the date hereof, Seller has not received written notice
of any material violations of any Permit. Exhibit R-2 sets forth a list of Excluded Permits. 
  
 6.1.23. Right of First Refusal. To Seller’s knowledge, there do not exist any rights of first refusal to acquire any part of
the Hotel, other than as set forth in the Franchise Agreement or in the Title Report or documents provided therewith (including, without limitation, the Declaration). 
  
 6.1.24. [INTENTIONALLY OMITTED] 
  
 6.1.25. Reserves. Exhibit V is a true, correct and complete schedule of all current
Reserves (as of the Effective Date) held in the name of or for the benefit of Seller. 
  
 6.1.26. Trademarks. Neither Seller nor any of its affiliates own any trademarks, trade names, logos or designs used solely with
respect to the Hotel. 
  
 6.1.27. Scope of Due
Diligence Materials. The non-disclosure of any Due Diligence Materials to Purchaser because such materials are subject to the attorney-client or attorney work products privileges, or are confidential and proprietary with respect to the 

  

 -20- 

 
operation, financial condition or finances of Seller’s affiliates (as compared to the Hotel itself), does not, to Seller’s knowledge, result in the
available Due Diligence Materials and Financial Statements inaccurately representing in a material way the condition of the Hotel or its current operations. 
  
 6.1.28. Designated Representatives. The Designated Representatives are in positions likely to have actual knowledge regarding the
scope of any of Seller’s representations and warranties. 
  
 Any representations and warranties made “to Seller’s knowledge” (or similar variations) shall not be deemed to imply any duty of inquiry. For purposes of this Agreement, the term Seller’s
“knowledge” shall mean and refer only to actual knowledge of the Designated Representatives of Seller and shall not be construed to refer to the knowledge of any other partner, officer, director, agent, employee or representative of
Seller, or any affiliate of Seller, or to impose upon such Designated Representatives any duty to investigate the matter to which such actual knowledge or the absence thereof pertains, or to impose upon such Designated Representatives any individual
personal liability. As used herein, the term “Designated Representatives” shall refer to Marla Steele, David L. Pease and Raymond L. Scott, Jr. 
  
 It shall be an express condition precedent to Purchaser’s obligation to close the acquisition of the Property that all
of Seller’s Representations be true and accurate as of Closing in all material respects. Seller shall update the representations and warranties at Closing to the extent of matters for which Seller shall obtain actual knowledge prior to Closing.
Should Seller have actual knowledge that any of Seller’s Representations are not true as of the date hereof in all material respects, or subsequently become materially untrue, Seller shall use commercially reasonable efforts to cure or correct
the underlying circumstances as necessary to eliminate the adverse effect on Purchaser of any breaches or inaccuracies of such representations and warranties, which commercially reasonable efforts shall be limited to the expenditure in aggregate of
up to the Cure Cap Amount (or, if less, so much of the Cure Cap Amount as remains to be expended pursuant to the terms of this Agreement) for the cure or correction of all such breaches or inaccuracies and/or mitigation of the adverse effect on
Purchaser arising therefrom to the extent that it is possible to effect such cure or correction through the expenditure of funds; provided, however, that (i) such Cure Cap Amount limitation shall not apply to Seller’s obligation to make any
payment necessary to cure or mitigate any intentional act undertaken or intentional omission (where there is a duty to act) by Seller after the Effective Date up to and including the Closing Date in order to intentionally cause a default under this
Agreement, the Hotel Contracts, Space Leases, Declaration (to the extent effective prior to the Closing Date), Condominium Documents (to the extent effective prior to the Closing Date), Settlement Agreement (to the extent effective prior to the
Closing Date), Penthouse Documents or Franchise Agreement; (ii) Seller shall not be obligated to expend any amount to cure or mitigate any breach or inaccuracy to the extent caused by the passage and effectiveness between the Effective Date and the
Closing Date of any amendments or supplements to applicable laws (including, without limitation, Environmental Laws); and (iii) Seller shall not be obligated to spend any money to settle any litigation filed against Seller after the Effective Date
if the outcome of such litigation will not affect either the Hotel or Purchaser post-Closing. Notwithstanding anything else in this Agreement, the scheduled Closing hereunder shall be extended, but not more than 30 days, in 

  

 -21- 

 
order to provide to Seller sufficient time to effect such cure, correction or mitigation. If notwithstanding commercially reasonable efforts, Seller is
unable to cure a Seller’s Representation or mitigate the adverse effect on Purchaser arising from a breach thereof, or the cost to cure one or more of Seller’s Representations or to mitigate the adverse effect on Purchaser arising from a
breach thereof is greater than the Cure Cap Amount (or, if less, so much of the Cure Cap Amount as remains to be expended pursuant to the terms of this Agreement), as Purchaser’s sole and exclusive remedy, Purchaser shall be entitled either to
waive the same and close this transaction, in which event the transactions contemplated under this Agreement shall close as scheduled with no adjustment to the Purchase Price, other than the reasonable cost to cure Seller’s Representations
and/or mitigate the adverse effect on Purchaser arising from the breach of Seller’s Representations up to a maximum of the Cure Cap Amount (or, if less, so much of the Cure Cap Amount as remains to be expended pursuant to the terms of this
Agreement) (other than with respect to any matter described in item (i) above, as to which the amount of such adjustment shall be uncapped, and matter described in items (ii) and (iii) above, as to which Purchaser shall not be entitled to any
adjustment of the Purchase Price) or to terminate this Agreement. If Purchaser elects to terminate this Agreement pursuant to this paragraph, Escrow Agent shall return the Deposit to Purchaser and Seller shall reimburse Purchaser up to $300,000 of
Purchaser’s documented, reasonable out of pocket expenses incurred by Purchaser in connection with this transaction (such amount shall not be in addition to, or duplicative of, the amount for cost reimbursement set forth in the Section
16.2, it being the intent of the parties that Purchaser is capped at $300,000 for all such costs and expenses to be recovered from Seller), and neither party to this Agreement shall thereafter have any further rights or liabilities under
this Agreement except as otherwise provided herein. 
  
 Notwithstanding anything in this Agreement to the contrary, Purchaser shall be required to give Seller prompt written notice of any matter of which the Purchaser has actual knowledge prior to the Closing for which Purchaser reasonably
concludes indicates that Seller has breached any of its representations or warranties made by Seller under this Agreement. In furtherance thereof, Seller shall have no liability with respect to any of the foregoing representations and warranties or
any representations and warranties made in any other document executed and delivered by or on behalf of Seller to Purchaser, to the extent that, on or before the Closing, Seller demonstrates (i) that Purchaser obtained actual knowledge (from
whatever source, including, without limitation, information provided in Due Diligence Materials, including the Title Report and documents related thereto, as a result of Purchaser’s own due diligence tests, investigations and inspections of the
Property, or disclosure by Seller or any of Seller’s agents and employees) or (ii) otherwise is contained in any Due Diligence Materials delivered or made available to Purchaser, the Title Report and documents related thereto, or the results of
any of Purchaser’s own due diligence tests, investigations and inspections of the Property, that contradicts the applicable representations and warranties, or renders the applicable representations and warranties untrue or incorrect, and
Purchaser nevertheless consummates the transaction contemplated by this Agreement. 
  
 6.2. Purchaser’s Representations and Warranties. Purchaser hereby makes the following representations and warranties to Seller, each of which (i) shall survive Closing and delivery of the Deed for a period
of 36 months, (ii) is true as of the date hereof except for the representation set forth in the second sentence of Section 6.2.1, and (iii) shall be true in all 

  

 -22- 

 
respects at Closing, other than any untruth or inaccuracy as to which the reasonably anticipated cost to cure and/or adverse effect on Seller arising
therefrom does not exceed $1,000,000. 
  
 6.2.1.
Organization and Power. Purchaser is a limited partnership, duly organized, validly existing and authorized to do business under the laws of the State of Delaware. Purchaser is duly qualified to do business and is in good standing under the
laws of the State of Colorado. Purchaser has all requisite limited partnership powers and authorizations to carry on its business as now conducted and to enter into and perform its obligations hereunder and under any document or instrument executed
and delivered on behalf of Purchaser hereunder. 
  
 6.2.2. Authorization and Execution. This Agreement has been duly authorized by all necessary action on the part of Purchaser, has been duly executed and delivered by Purchaser, constitutes the valid and binding agreement of Purchaser
and is enforceable in accordance with its terms, and the documents or instruments contemplated hereby have been duly authorized by all necessary action on the part of Purchaser, will be duly executed and delivered by Purchaser, and when so executed
and delivered will constitute, the valid and binding agreements of Purchaser, enforceable in accordance with their terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other laws affecting
enforcement of creditor’s rights generally and by general principles of equity (whether applied in a proceeding at law or equity). Each person executing this Agreement and the other documents contemplated hereby on behalf of Purchaser has (or
will have at the time of such execution) the authority to do so. 
  
 6.2.3. Non-contravention. The execution and delivery of, and the performance by Purchaser of its obligations under, this Agreement, the Cooperation and Easement Agreement and the Parking Easement Agreement, do
not and will not contravene, or constitute a default under, any provision of applicable law or regulation or any agreement, judgment, injunction, order, decree or other instrument binding upon Purchaser. 
  
 6.2.4. No Approvals. Other than those filings
required with the Liquor Authorities, routine transfers of local business licenses and the payment of fees and taxes related thereto, and for Purchaser to obtain a State of Colorado sales tax permit, no governmental authority or third-party filings,
approvals or consents are required for Purchaser’s execution and delivery of, or performance of its obligations under, this Agreement, the Cooperation and Easement Agreement and the Parking Easement Agreement, and Purchaser’s execution,
delivery and performance of this Agreement, the Cooperation and Easement Agreement and the Parking Easement Agreement, do not and will not violate, and are not restricted by, any other contractual obligation or any federal, state or local laws,
statutes or ordinances to which Purchaser is a party or by which Purchaser is bound. 
  
 6.2.5. Prohibited Person. Purchaser is not a Prohibited Person. To Purchaser’s knowledge, none of its controlling investors,
nor any brokers or other agents (if any) acting or benefiting in any capacity in connection with this Agreement, is a Prohibited Person. The funds or other assets Purchaser will transfer to Seller under this Agreement are not the property of, and no
controlling interest therein is beneficially owned, directly or indirectly, by a Prohibited Person. The funds or other assets Purchaser will transfer to Seller under this 

  

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Agreement are not the proceeds of specified unlawful activity as defined by 18 U.S.C. § 1956(c)(7). 
  
 ARTICLE 7. 
  
 TITLE AND SURVEY MATTERS 
  
 7.1. Title Report. Seller has heretofore delivered to Purchaser a current preliminary title report (the “Preliminary Title
Report”, and together with any update thereof, the “Title Report”) issued by the Title Company, indicating that fee simple title to the Real Property is, as of the date of the Preliminary Title Report, vested in
the name of Seller, subject to the exceptions listed therein. 
  
 7.2. Survey. Purchaser acknowledges that Seller has delivered to Purchaser the survey of the Real Property (the “Survey”). 
  
 7.3. [Intentionally Deleted] 
  

7.4. Curing Title Objections. 
  
 7.4.1. Purchaser acknowledges that it shall not be entitled to object to, and shall be deemed to have approved, all matters set forth on
Exhibit K attached hereto. 
  
 7.4.2. (a) If, after the date hereof and prior to the Closing Date, new title exceptions that were not previously reported in the Preliminary Title Report or shown on the Survey are disclosed on an update of the Preliminary Title Report or
Survey, Purchaser will notify Seller, within 5 days after its knowledge thereof or by the Closing Date (whichever is sooner) (the “New Objection Period”), of any reasonable objections that Purchaser may have to such new
exceptions (the “New Title Objections”); provided, however, that Purchaser shall not be entitled to object to, and shall be deemed to have approved, any title exceptions (i) over which the Title Company is
willing to insure at no additional cost (or, if there is additional cost, if Seller will pay the cost), or (ii) against which the Title Company is willing to provide affirmative insurance against collection from the Property and interference with
the current use of the Hotel. To the extent Purchaser fails to notify Seller within the New Objection Period of any New Title Objections, all matters set forth in the update of the Preliminary Title Report or on the Survey shall be deemed
Permitted Exceptions. Likewise, to the extent Purchaser does notify Seller within the New Objection Period of New Title Objections, all matters set forth in the update of the Preliminary Title Report or on the Survey that are not included as New
Title Objections shall be deemed Permitted Exceptions. 
  
 (b) If Purchaser does so notify Seller of New Title Objections within the New Objection Period, Seller, upon written notice to Purchaser within 5 days after receipt of Purchaser’s notice of New Title Objections, shall use commercially
reasonable efforts to attempt to cure such New Title Objections if Seller reasonably deems them curable, by eliminating them or having them modified to the reasonable satisfaction of Purchaser, and Seller shall have the earlier of (i) ten (10) days
from the date that it receives notice from Purchaser of New Title Objections, or (ii) the date the Purchaser’s mortgage commitment is scheduled to 

  

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expire, to attempt to cure such New Title Objections, and the Closing Date shall be extended accordingly; provided, however, that Seller shall
have no obligation to bring any action or proceeding or otherwise to incur any expense whatsoever to eliminate or modify New Title Objections that arise after the Effective Date and that would in the aggregate cost more than Cure Cap Amount (or, if
less, so much of the Cure Cap Amount as remains to be expended pursuant to the terms of this Agreement). If Purchaser notifies Seller within the New Objection Period of the New Title Objections and Seller is unable to eliminate or modify the New
Title Objections to the reasonable satisfaction of Purchaser on or before the Closing Date (as it may be extended pursuant hereto), then all obligations hereunder shall terminate, unless Purchaser waives such New Title Objections, in writing, within
5 days after notice from Seller of its inability to eliminate or satisfactorily modify the New Title Objections, in which event, the transfer contemplated hereby shall close as scheduled with no adjustment to the Purchase Price, other than the cost
to cure the New Title Objections up to a maximum of the Cure Cap Amount (or, if less, so much of the Cure Cap Amount as remains to be expended pursuant to the terms of this Agreement). Notwithstanding the foregoing, Seller shall, on or prior to the
Closing Date, pay, discharge or cause to be paid or discharged, and deliver the appropriate documents to the Title Company, to cause the Title Company to remove of record, at Seller’s sole cost and expense, any liens or encumbrances (other than
Permitted Exceptions) that Seller has caused to be placed on the Property after the date hereof or arise out of the acts of Seller after the date hereof. The matters set forth on Exhibit K attached hereto and in any update of the
Preliminary Title Report and/or Survey which are approved by Purchaser, waived by Purchaser or deemed approved by Purchaser shall collectively constitute “Permitted Exceptions” for all purposes under this Agreement. In
addition, in order to address an encroachment by the Improvements onto the adjacent “Antler’s” property owned by a third party, Seller may execute an encroachment agreement prior to the Closing as long as the same shall address only
existing encroachments and not have a material and adverse effect on the ownership, use or operation of the Hotel as currently owned, used and operated (the “Encroachment Agreement”). Further, Seller may, prior to Closing,
execute and record the “Pedestrian Easement” referenced in Section 3(c) of the Cooperation and Easement Agreement. Purchaser agrees that the Encroachment Agreement and “Pedestrian Easement” shall be Permitted
Exceptions for all purposes hereunder. 
  
 7.4.3. All costs incurred for title searches and preparation of the title commitment and Title Report, and all title premiums for an extended coverage title policy (including costs of endorsements approved by Seller to cure any title
defects, but excluding any endorsements otherwise requested by Purchaser) and survey costs, shall be paid by Seller. This payment obligation shall survive the Closing or termination of this Agreement. 
  
 7.4.4. In the event of a termination of this Agreement under
this Section 7.4, this Agreement shall be deemed null and void (except for those obligations which expressly survive Closing), the parties hereto shall have no further obligations to or recourse against each other except as otherwise
expressly set forth herein, and the Deposit shall be returned to Purchaser. 
  
 7.5. Intentionally Omitted. 
  

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 7.6. Franchisor Estoppel and Consent. Seller shall use commercially reasonable efforts to obtain
from Franchisor a written estoppel statement and consent in the form attached hereto as Exhibit G-2, subject to immaterial changes reasonably acceptable to Purchaser (the “Franchisor Estoppel and Consent”),
dated no earlier than the date hereof. The certifications made under the Franchisor Estoppel and Consent shall be for the benefit of Purchaser, its lender and their respective successors and assigns. Seller’s obtaining the Franchisor Estoppel
and Consent shall not be a condition to Closing. 
  
 7.7.
Penthouse Owners’ Estoppel. Seller shall use commercially reasonable efforts to obtain from each of the owners of a Penthouse a written estoppel statement in the form attached hereto as Exhibit G-3, subject to immaterial
changes reasonably acceptable to Purchaser (collectively, the “Penthouse Estoppels”), dated no earlier than the date hereof. The certifications made under the Penthouse Estoppels shall be for the benefit of Purchaser, its
lender and their respective successors and assigns. Seller’s obtaining the Penthouse Estoppels shall not be a condition to Closing. 
  
 7.8. Tenant Estoppels. Seller shall use commercially reasonable efforts to obtain from each of the Space Lessees a written estoppel statement in
the form attached hereto as Exhibit G-4, subject to immaterial changes reasonably acceptable to Purchaser (collectively, the “Tenant Estoppels”), dated no earlier than the date hereof. The certifications made
under the Tenant Estoppels shall be for the benefit of Purchaser, its lender and their respective successors and assigns. Seller’s obtaining the Tenant Estoppels shall not be a condition to Closing. 
  
 7.9. Liens. Seller shall cause any mechanics’, laborers’ or
materialmen’s lien that is filed against the Real Property or Parking Easement Property or any part thereof for work attributable thereto (other than arising by, through or under Purchaser or any of Purchaser’s Consultants) during the
period prior to the Closing Date to be discharged by payment, bonding or as otherwise provided by law within 30 Business Days after Seller receives notice that such lien was filed (or such earlier time as may be required pursuant to Section
7.4.2(b) hereof). Any amounts expended by Seller to comply with this Section 7.9 will not count toward or be subject to the Cure Cap Amount set forth in this Agreement. 
  
 ARTICLE 8. 
  
 THE CLOSING 
  
 8.1. Closing. The closing of the transaction contemplated hereby (the “Closing”) shall take place in escrow with the Title
Company on May 31, 2005 (the “Closing Date”). Provided that Purchaser is not in default under the terms of this Agreement, Purchaser shall be permitted a one-time 30-day extension of the Closing Date specified in the
first sentence of this Section 8.1 by (a) delivering written notice to Seller no later than 10 days prior to the scheduled Closing Date, and (b) simultaneously with such notice to Seller, delivering to Escrow Agent the amount of
$2,000,000, which amount when received by Escrow Agent shall be added to the Deposit hereunder, shall be non-refundable (except as otherwise expressly provided herein with respect to the Deposit), and shall be held, credited and disbursed in the
same manner as provided hereunder with respect to the Deposit. 
  

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 8.2. Deliveries at Closing. 
  
 8.2.1. Seller’s Closing Documents. At the Closing, Seller shall deliver, or cause to be
delivered, to Purchaser the following: 
  
 (a) A
duly executed and acknowledged deed (the “Deed”) conveying, selling and transferring to Purchaser all of Seller’s right, title and interest in and to the Real Property, substantially in the form of Exhibit
C; 
  
 (b) A duly executed bill of sale
substantially in the form attached hereto as Exhibit D, transferring to Purchaser all of Seller’s right, title and interest in and to the FF&E, Food and Beverage, Consumables and Operating Equipment; 
  
 (c) A duly executed assignment and assumption agreement in
the form attached hereto as Exhibit E-1 (the “Assignment and Assumption Agreement”), conveying and transferring to Purchaser all of Seller’s right, title and interest in, to and under the Declaration,
Condominium Documents, Penthouse Documents, Bookings, the Hotel Contracts, the Space Leases, the Permits (other than Excluded Permits), the Hotel Books and Records, the Miscellaneous Hotel Assets and any other obligations for which Purchaser shall
receive a credit on the Settlement Statement (other than the Assumed Obligations); 
  
 (d) The originals, or, if not reasonably available, copies of all Permits (other than Excluded Permits) and material governmental
approvals in the possession of Seller, if any, including, without limitation, the current certificates of occupancy for the Improvements. The location of such items at the Hotel on the Closing Date shall constitute delivery to Purchaser; 

 
 (e) An affidavit certifying that Seller is not a
“foreign person” within the meaning of the Internal Revenue Code of 1986, as amended (the “IRC”), that the transaction contemplated hereby does not constitute a disposition of a United States real property interest
by a foreign person, and that, at Closing, Seller will not be subject to the withholding requirements of Section 1445 of the IRC; 
  
 (f) Such evidence as Purchaser may reasonably request confirming Seller’s authority to execute and deliver the documents required of
it and to consummate the transactions contemplated hereby; 
  
 (g) Originals (and to the extent not reasonably available, copies) of the Declaration, Condominium Documents, Penthouse Documents, Hotel Contracts, Hotel Books and Records, Space Leases and other Miscellaneous Hotel
Assets (to the extent not specifically referred to above and to the extent the same are of a nature that are capable of being physically delivered at Closing) which are in Seller’s possession; provided, however, that the existence
of such contracts and leases at the Hotel on the Closing Date shall constitute delivery of Purchaser, provided Purchaser is advised of the location thereof; 
  
 (h) A notice to the counter-parties to the Hotel Contracts, Settlement Agreement, Penthouse Documents, Space Leases and to all parties
required under the 

  

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Condominium Documents and documents provided with the Title Report, in accordance with the Hotel Contracts, Settlement Agreement, Penthouse Documents, Space
Leases, Condominium Documents and documents provided with the Title Report, respectively, advising of the Closing and directing all future communications be sent to Purchaser, with a copy to Manager; 
  
 (i) A duly executed Concession Agreement by New Liquor
Licensee; 
  
 (j) To the extent received by
Seller, an original Franchisor Estoppel and Consent executed by Franchisor, in the form of Exhibit G-2 attached hereto, and original copies of any Penthouse Estoppels and/or Tenant Estoppels received by Seller; 
  
 (k) As soon as practicable after the Closing, Seller shall
deliver to Purchaser (if not then located in the Improvements) all combinations to safes, keys, codes and passcards relating to the operation of the Hotel and forming part of the Personal Property; 
  
 (l) A Parking Easement Agreement in a form reasonably agreed
to by the parties (the “Parking Easement Agreement”) and duly executed and acknowledged by the owner of property identified on Exhibit A-3 burdened by the Parking Easement Agreement (the “Parking
Easement Property”); 
  
 (m) A duly
executed Management Agreement in the form attached hereto as Exhibit P (the “Management Agreement”) executed by Manager; 
  

(n) A Cooperation and Easement Agreement in a form reasonably agreed to by the parties (the “Cooperation and Easement
Agreement”) and duly executed and acknowledged by Seller; 
  
 (o) Subject to Section 17.10, a resignation by each of Richard D. MacCutcheon, Marla K. Steele (Mr. MacCutcheon and Ms. Steele referred to herein as the “Seller-Appointed
Managers”) and Jack Hunn (Mr. Hunn referred to herein as the “At-Large Manager”) of their seats on the Board of Managers of the Condominium Association and as officers of the Condominium Association (provided,
however, that the At-Large Manager’s resignation shall be effective only upon election of such At-Large Manager’s successor as contemplated pursuant to Section 17.6), and evidence of the appointment of two persons designated
by Purchaser (“Purchaser-Appointed Managers”) to replace the Seller-Appointed Managers on the Board of Managers of the Condominium Association; 
  
 (p) A duly executed Seller’s Guaranty, executed by Guarantor; 
  
 (q) A duly executed Settlement Statement reflecting
adjustments and proportions as required under this Agreement (the “Settlement Statement”); 
  
 (r) A duly executed and acknowledged waiver and release of all present and future rights to exercise the right of first refusal provided
for in Section 37 of the Declaration in the form attached hereto as Exhibit J (the “ROFR Waiver and Release”); and 
  

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 (s) Subject to Section 17.10, a duly executed assignment and assumption
agreement in the form attached hereto as Exhibit E-2 (the “Assignment and Assumption of Assumed Obligations”), pursuant to which Seller transfers to Purchaser the Assumed Obligations and Purchaser assumes the
obligation to perform the Assumed Obligations from and after the Closing Date. 
  
 Seller and Purchaser (or Purchaser’s assignee pursuant to Section 17.11 hereof) will prepare and execute such additional instruments, affidavits, certificates, assignments and other assurances as are reasonably requested
by either party hereto or by the Title Company and are customary for similar transactions in order to convey, assign and transfer all of Seller’s right, title and interest in and to the Property to Purchaser (or to Purchaser’s assignee
pursuant to Section 17.11 hereof).  
  
 8.2.2. Purchaser’s Closing Obligations. At the Closing, Purchaser shall deliver, or cause to be delivered, the following to Seller, at its sole cost and expense: 
  
 (a) The balance of the Purchase Price pursuant to
Sections 3.1(ii) and 10.1(a) hereof; 
  
 (b) A duly executed Assignment and Assumption Agreement. 
  
 (c) Such evidence as Seller may reasonably request confirming Purchaser’s authority to execute and deliver the documents required of it and to consummate the transactions contemplated hereby; 
  
 (d) A duly executed and acknowledged Parking Easement
Agreement; 
  
 (e) A duly executed Management
Agreement executed by Purchaser Tenant Entity; 
  
 (f) A Purchaser’s Guaranty, duly executed by DiamondRock Hospitality Limited Partnership; 
  
 (g) A duly executed Settlement Statement; 
  
 (h) A duly executed and acknowledged Cooperation and Easement Agreement; 
  
 (i) Subject to Section 17.10, a duly executed Assignment and Assumption of Assumed
Obligations; 
  
 (j) A duly executed and
acknowledged Agreement Regarding Density Allocation; 
  
 (k) Such documents as may be required by the Board of Managers of the Condominium Association (including, without limitation, a duly executed Unit Owner’s Power of Attorney); and 
  

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 (l) A duly executed Concession Agreement executed by Purchaser Tenant Entity. 

 
 8.3. Closing Costs. Seller shall pay any recording, documentary and
filing fees in connection with the recordation of the ROFR Waiver and Release, Agreement Regarding Density Allocation, Encroachment Agreement and Cooperation and Easement Agreement. Purchaser shall pay any recording, documentary and filing fees in
connection with the recordation of the Deed and the Parking Easement Agreement and any other instruments executed in connection with the Closing. Any fees and expenses of the Escrow Agent shall be paid in equal shares by Purchaser and Seller.

  
 8.4. Sales and Transfer Taxes. At the Closing, Seller
and Purchaser shall execute, acknowledge, deliver and file all such returns as may be necessary to comply with the tax laws of the State of Colorado, County of Eagle, and Town of Vail, and the regulations applicable thereto, as the same may be
amended from time to time, with Purchaser being obligated to pay the same. Without limiting the foregoing, Purchaser will pay, when due, any and all state and local sales, transfer, use or other taxes payable in connection with the transfer of the
Property; provided, however, if required by applicable law, Purchaser shall pay the same to Seller for Seller to pay the appropriate authorities if required by applicable law. Attached hereto as Exhibit S is a written statement
containing the value of the Real Property, the Personal Property and the goodwill being transferred to Purchaser pursuant to the terms of this Agreement as reasonably determined by Seller and Purchaser (the “Allocation
Statement”). The sales taxes paid by Purchaser in connection with the transfer of such Personal Property shall be based on the value of the Personal Property set forth in the Allocation Statement; provided, however, that
the parties hereto acknowledge that the value of the Personal Property between the date hereof and the Closing Date may change and if, in the reasonable determination of Seller and Purchaser, the value of the Personal Property has changed as of the
Closing Date, the parties shall cooperate in good faith to modify the Allocation Statement accordingly. Any filings made by the parties hereto shall be consistent with the final Allocation Statement agreed upon as of the Closing Date. 
  
 8.5. Order of Recording. Notwithstanding anything in this Agreement to
the contrary, the Deed, Cooperation and Easement Agreement and Parking Easement Agreement shall be recorded prior to any financing or other liens or encumbrances imposed upon the Real Property by Purchaser after its acquisition. The provisions of
this Section 8.5 shall survive the Closing. 
  
 ARTICLE 9. 
  
 ADJUSTMENTS AND PRORATIONS; CLOSING
STATEMENTS 
  
 9.1. Adjustments and Prorations. The
following matters and items pertaining to the Property shall be apportioned between the parties hereto or, where applicable, credited in total to a particular party, as of 12:01 a.m. on the Closing Date (the “Apportionment
Time”). Net credits in favor of Purchaser shall be deducted from the balance of the Purchase Price at the Closing and net credits in favor of Seller shall be paid by Purchaser to Seller in cash at the Closing. Notwithstanding the
provisions of this Section 9.1, Seller may, in its sole 

  

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discretion, choose to retain certain assets and liabilities on its own books in lieu of the adjustment by proration as set forth in this Section
9.1. If Seller elects to maintain any such assets or liabilities, Seller shall notify Purchaser of such election and the assets and liabilities to be retained no later than three (3) business days prior to Closing. With respect to such
assets and liabilities to be retained, no proration shall be made hereunder. Subject to the foregoing, and unless otherwise indicated below, Purchaser shall receive a credit against the Purchase Price for any of the following items to the extent the
same are accrued but unpaid as of the Apportionment Time (whether or not due, owing or delinquent as of the Apportionment Time) and to the extent Purchaser has assumed the obligations for the same, and Seller shall receive a credit (and thereby be
entitled to a payment from Purchaser) with respect to any of the following items which shall have been paid prior to the Closing Date to the extent the payment thereof relates to any period of time after the Apportionment Time: 
  
 9.1.1. Guest Ledger. Guest ledger receivables (i.e.,
amounts, including, without limitation, room charges and charges for food and beverages, accrued to the accounts of guests and other customers of the Hotel as of the Apportionment Time) (“Guest Ledger Receivables”) shall be
prorated between Purchaser and Seller. Seller shall receive a credit for all guest ledger receivables for all room nights and other charges up to but not including the room night during which the Apportionment Time occurs, and Purchaser shall be
entitled to the amounts of guest ledger receivables for the room nights and other charges after the Apportionment Time. The final night’s room revenue (revenue from rooms occupied on the evening preceding the Closing Date), any taxes thereon,
and any in-room telephone, movie and similar charges for such night, shall be allocated 50% to Seller and 50% to Purchaser (and Seller and Purchaser shall each bear 50% of the credit card charges, travel company charges and similar commissions
payable with respect to such revenue). All revenues from restaurants, bars and lounge facilities for the night during which the Apportionment Time occurs shall belong to Seller and Seller shall bear all expenses related to such revenues, including
but not limited to, payroll and food and beverage costs. 
  
 9.1.2. Taxes and Assessments. Seller shall be solely responsible for any taxes due in respect of its income, net worth or capital, if any, and any privilege, sales, transient occupancy tax, due or owing to any
governmental entity in connection with the operation of the Property for any period of time prior to the Apportionment Time, and Purchaser shall be solely responsible for all such taxes for any period from and after the Apportionment Time, and
provided further that any income tax arising as a result of the sale and transfer of the Property by Seller to Purchaser shall be the sole responsibility of Seller. All ad valorem taxes, special or general assessments, real property taxes, water and
sewer rents, rates and charges, vault charges, and any municipal permit fees shall be prorated as of the Apportionment Time between Purchaser and Seller. Seller shall also provide Purchaser with a credit at Closing for real estate taxes attributable
to the period from January 1, 2005 to the Closing Date, payable in 2006, such credit to be calculated based upon the most recent valuation and real property tax assessments applicable to the Real Property. 
  
 9.1.3. Utilities; Telephone. Telephone and telex
charges and charges for the supply of heat, steam, electric power, gas, lighting, cable television and any other utility service shall be prorated as of the Apportionment Time between Purchaser and Seller. Seller 

  

 -31- 

 
shall receive a credit for all deposits, if any, made by Seller as security under any such public service contracts if the same are transferable and provided
such deposits remain on deposit for the benefit of Purchaser. Where possible, cutoff readings will be secured for all utilities as of the Apportionment Time. To the extent cutoff readings are not available, the cost of such utilities shall be
apportioned between the parties on the basis of the latest actual (not estimated) bill for such service. 
  
 9.1.4. Hotel Contracts, Franchise Agreement, Declaration, Condominium Documents and Space Leases; Trade Payables and Receivables.
Any amounts prepaid or payable under any Hotel Contracts, Space Leases, the Declaration, the Condominium Documents, the Penthouse Documents, the Franchise Agreement (but, with respect to the Franchise Agreement, only with respect to those items as
to which Purchaser will receive an economic benefit from following the Closing) and any other trade payables and receivables shall be prorated as of the Apportionment Time between Purchaser and Seller. All amounts known to be due under Hotel
Contracts, Space Leases, the Condominium Documents, the Penthouse Documents and the Franchise Agreement with reference to periods prior to the Closing Date shall be paid by Seller or credited to Purchaser. Any additional amounts not known or not
available at the Closing will be part of the post closing adjustments contemplated in Section 9.2. 
  
 9.1.5. Permits. Fees paid for Permits (other than Excluded Permits) shall be prorated as of the Apportionment Time between
Purchaser and Seller. 
  
 9.1.6. Bookings.
Purchaser shall receive a credit for advance payments and deposits, if any, under Bookings. 
  
 9.1.7. Gift Certificates. Purchaser shall receive a credit for the face value of all unredeemed gift certificates issued by Seller
or Existing Manager as of the Apportionment Time. 
  
 9.1.8. Vending Machines; ATMs. Vending machine and ATM monies will be removed by Seller as of the Apportionment Time for the benefit of Seller. 
  

9.1.9. Cash Accounts. All funds held in any accounts maintained by or for the benefit of Seller at the Apportionment Time will
be removed by Seller as of the Apportionment Time for the benefit of Seller. 
  
 9.1.10. House Banks. Notwithstanding the provisions of Section 9.1.9 Seller shall receive a credit for the cash held in the Hotel house banks and any petty cash at the Hotel. 
  
 9.1.11. Security Deposits. Purchaser shall be
entitled to a credit for all unapplied security and other deposits, if any, held by Seller as of the Apportionment Time with respect to Hotel Contracts and Space Leases. 
  
 9.1.12. Prepaid Expenses; Deposits. Seller shall receive a credit for prepaid expenses directly or
indirectly allocable to any period from and after the Closing Date, including, without limitation, prepaid rents under any equipment lease, annual permit and 

  

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inspection fees, fees for licenses, trade association dues and trade subscriptions, all security or other deposits paid by or on behalf of Seller to third
parties to the extent the same are transferable and remain on deposit for the benefit of Purchaser, and all inventories of Consumables and Food and Beverage. With the exception of prepaid advertising which has not been published, mailed or aired,
the Seller will receive no credit for prepaid advertising costs.  
  
 9.1.13. Insurance. Insurance premiums will not be prorated and Purchaser shall not assume, and Seller shall not assign, any insurance policies, Purchaser hereby acknowledging its obligation to obtain its own
insurance related to or for the Property. 
  
 9.1.14. City Ledger Receivables. Seller shall receive a credit for, and Purchaser shall purchase from Seller, all city ledger accounts receivable that are less than 120 days old. Such credit shall equal the amount of the accounts
receivable, less 2% (representing historic reserves and/or write offs for bad debt under 120 days old for uncollectible amounts.) 
  
 9.1.15. Other Accounts Receivable. Except as set forth in Sections 9.1.1 and 9.1.14, all accounts receivable for all
periods prior to the Apportionment Time shall remain the property of Seller. From Closing until the date which is six (6) months after the Closing Date, Purchaser shall use commercially reasonable efforts to collect in the ordinary course of
business all such accounts receivable (other than accounts receivable from credit card companies that shall be collected directly by Seller). Periodically (but no less frequently than monthly), Purchaser shall submit to Seller all amounts received
in respect of such accounts receivable, together with an itemization of such accounts receivable. If Purchaser receives any amounts in respect of such accounts receivable after such date, Purchaser shall promptly remit the same to Seller.

  
 9.1.16. Assumed Obligations. Any
amounts prepaid or payable with respect to the Assumed Obligations shall be prorated as of the Apportionment Time between Purchaser and Seller. All amounts known to be due and payable by Seller on or before the Closing with respect to the Assumed
Obligations shall be paid by Seller or credited to Purchaser. Any additional amounts not known or not available at the Closing will be part of the post closing adjustments contemplated in Section 9.2. 
  
 9.1.17. Capital Leases. At Closing, Purchaser will
assume the obligations related to the capital leases identified on Exhibit GG without adjustment or proration. 
  
 9.1.18. Other Items. Such other items as are provided for in this Agreement or as are normally prorated and adjusted in the sale of
real property or of a Hotel shall be prorated as of the Apportionment Time in accordance with local custom in the jurisdiction in which the Hotel is located. Notwithstanding the foregoing or anything in the Agreement to the contrary, all
Reserves shall be retained by Seller and not prorated or assigned to Purchaser. 
  
 9.2. Closing Statement; True-Up. Seller and Purchaser shall jointly prepare a proposed closing statement containing the parties’ reasonable estimate of the items requiring prorations and adjustments in
this Agreement. Subsequent final adjustments and payments (the “True-Up”) shall be made in cash or other immediately available funds as soon as practicable, 

  

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but no more than 120 days after the Closing Date (except with respect to ad valorem property taxes which shall be adjusted within 30 days after receipt of
the final tax bill), based upon an accounting performed by Seller and acceptable to Purchaser. If the parties have not agreed with respect to the adjustments required to be made pursuant to Section 9.1, upon application by either
party, a certified public accountant reasonably acceptable to the parties shall determine any such adjustments which have not theretofore been agreed to between the parties. (If the parties cannot agree on a certified public accountant within 30
days after the request by either party, the JAMS located in Denver, Colorado shall appoint a certified public accountant.) The charges of such accountant (and JAMS, if applicable) shall be borne equally by the parties. All adjustments to be made as
a result of the final results of the True-Up shall be paid to the party entitled to such adjustment within 30 days after the final determination thereof. 
  
 9.3. Access. Purchaser and Seller shall have the right to have their representatives present (i) before the Closing Date for the purpose of
observing the taking of any inventories by Seller’s designee (including the counting of house funds), the review of receivables, or any other matters to be performed pursuant to this Article 9, and (ii) after the Closing Date for
the purpose of review of receivables or any other post-closing adjustments provided for in this Agreement, and such representatives shall be given reasonable access to the Hotel Books and Records which are relevant to the preparation of the proposed
closing statement and the Settlement Statement. 
  
 9.4.
Calculations. All prorations shall be made on the basis of the actual number of days of the year, or month, as applicable, which shall have elapsed as of the Closing Date. 
  
 9.5. Survival. The provisions of this Article 9 shall survive the Closing and delivery of the Deed.

  
 ARTICLE 10. 
  
 CONDITIONS TO SELLER’S OBLIGATIONS 
  
 10.1. Conditions to Seller’s Obligations. Seller’s
obligation to close the transaction contemplated by this Agreement and to deliver the documents and instruments required under Article 8 hereof is subject to satisfaction of the following conditions (any of which may be waived by
Notice from Seller): 
  
 (a) Purchaser shall have
paid the Purchase Price, plus or minus prorations and adjustments as provided for herein, by wire transfer of Federal same-day funds as directed by Seller; 
  
 (b) Purchaser shall have completed all of the deliveries required of Purchaser under Article 8 hereof, and all such
documents and instruments shall be in form and substance reasonably satisfactory to Seller and its counsel; and 
  

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 (c) All of the representations, covenants and agreements of Purchaser contained herein
shall be true and correct and/or shall have been paid and performed, as the case may be, in all material respects. 
  
 If the transfers contemplated by this Agreement shall not close because the conditions described in paragraphs (a), (b) or (c) above have not been fulfilled, then
Purchaser shall be deemed to be in default under this Agreement, and Seller shall have the right to retain the Deposit, in accordance with the provisions of Section 16.1 hereof. 
  
 ARTICLE 11. 
  
 CONDITIONS TO PURCHASER’S OBLIGATIONS 
  
 11.1. Conditions to Purchaser’s Obligations. Purchaser’s obligation to consummate the transfers
contemplated by this Agreement and to deliver the balance of the Purchase Price and the other documents and instruments required under Article 8 hereof is subject to satisfaction of the following conditions (any of which may be waived
by Notice from Purchaser): 
  
 (a) Seller shall
have completed all of the deliveries required of Seller under Article 8 hereof, and all such documents and instruments shall be in form and substance reasonably satisfactory to Purchaser and its counsel; 
  
 (b) Purchaser shall have received the Audited Financial
Statements and the financial condition and results of operations of the Property as represented by such Audited Financial Statements shall not materially deviate from the financial condition and results of operations of the Property as represented
by the Financial Statements provided, however, that Purchaser agrees in all instances to exercise its right to terminate this Agreement for failure of the condition to Closing described in this Section 11.1(b) within 5
Business Days after Purchaser’s receipt of the Audited Financial Statements (or such right to terminate shall be deemed waived). 
  
 (c) Seller shall have delivered an original executed ROFR Waiver and Release; 
  
 (d) Any Hotel Renovations that have been performed prior to
Closing shall have been performed in accordance with the requirements of Section 17.12 hereof; 
  
 (e) Purchaser and Franchisor shall have entered into a new franchise agreement for the Hotel; provided, however, if
Franchisor is willing to execute its standard Franchise Agreement, but Purchaser is unwilling to do so, then Purchaser shall have waived its right to terminate this Agreement based on the failure of the condition set forth in this Section
11.1(e); 
  
 (f) The Title Company shall
be irrevocably committed to issue a title policy (i) in conformance with the Title Report, subject only to the Permitted Exceptions and (ii) which insures Purchaser’s easement estates granted to Purchaser pursuant to the Parking and 

  

 -35- 

 
Easement Agreement materially consistent with the “Schedule B-2 Exceptions” set forth in the Title Commitments VC50009652 and VC50009653 issued by
Title Company; 
  
 (g) Purchaser’s
Board Members shall have been appointed members of the Board of Managers of the Condominium Association; 
  
 (h) Subject to Section 17.5.2(b) hereof, a Settlement Agreement in substantially the form previously delivered to Purchaser
by Seller and currently available on Seller’s online due diligence datasite as “MARK-LODGE SETTLEMENT AGREEMENT 04-08-05.RED) (the “Settlement Agreement”) between Seller and the Residential Owners (as such term is
defined in the Settlement Agreement) and that certain Easement Amendment (as such term in defined in the Settlement Agreement) shall each have been executed, the Consent Condition thereunder shall have been satisfied and all action items set forth
in Sections 2.1 and 2.2 of the Settlement Agreement shall have been completed; 
  
 (i) Permanent (as opposed to temporary) certificates of occupancy shall have been issued with respect to the entire Hotel; 
  
 (j) Seller shall have terminated the Operating Lease and
delivered to Purchaser written evidence of such termination; 
  
 (k) New Liquor Licensee shall have obtained the New Liquor License; and 
  
 (l) Subject to the second to last paragraph of Article 6, all of the representations, covenants and agreements of Seller
contained herein shall be true and correct and/or shall have been paid and performed, as the case may be, in all material respects. 
  
 ARTICLE 12. 
  
 ACTIONS AND OPERATIONS PENDING CLOSING 
  
 12.1. Actions and Operations Pending Closing. 
  
 (a) Seller agrees that, between the date hereof and the Closing Date, if this Agreement has not been terminated by Purchaser pursuant to
Section 11.1 hereof: 
  
 (i) the
Hotel will continue to be operated and maintained substantially in accordance with the present standards; 
  
 (ii) Seller will not, without the prior written consent of Purchaser, which may be granted or withheld in Purchaser’s reasonable
discretion, enter into any contracts or commitments with respect to the Hotel involving any capital expenditures or material construction; provided, however, that the consent of Purchaser shall not be required (w) with respect to
execution and delivery of the Settlement Agreement and all documents contemplated thereby (including, without limitation, the Easement Amendment, which shall be a Permitted Exception for all purposes hereunder), 

  

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(x) in the event of a Casualty or an Emergency, (y) with respect to Hotel Renovations pursuant to Section 12.1(b), or (z) with respect to
matters set forth on Seller’s calendar year 2005 capital construction budget. 
  
 (iii) Seller will not, without the prior written consent of Purchaser, which may be granted or withheld in Purchaser’s reasonable
discretion, (x) sell, pledge or transfer any of its interest in any of the Property other than in the ordinary course of business, (y) enter into any (A) new Hotel Contracts or (B) new licenses or permits or (z) cancel, materially modify or renew
any of the existing Hotel Contracts (other than a Non-Material Hotel Contract) or Space Leases, the Franchise Agreement, the Penthouse Documents, the Declaration or the Condominium Documents (except as contemplated by the Settlement Agreement) or
accept any rent or other payment under any Space Lease or the Penthouse Documents for more than one month in advance; provided, however, that Seller may, without Purchaser’s prior consent, enter into (I) Non-Material Contracts,
(II) purchase orders for FF&E, Food and Beverage, Consumables and/or Operating Equipment in the ordinary course of business, and (III) applications to obtain or renew Permits used in the ordinary course of business or required for the continued
operation of the business of the Hotel or the transfer contemplated hereby; 
  
 (iv) notwithstanding the provisions of Section 12.1(a)(iii) above, Seller shall have the right, without giving Notice to or receiving the consent of Purchaser, to make (and accept cancellations of)
Bookings in the ordinary course of business; 
  
 (v) Seller will execute and Purchaser, where necessary, will join in the execution of, all applications and instruments reasonably requested by Purchaser which are required in connection with the transfer of all transferable Permits (other
than Excluded Permits) in order to transfer the benefits of such Permits to Purchaser on the Closing Date; provided, however, no such transfer shall be effective unless and until the Closing occurs. Purchaser shall be responsible for, and pay
immediately upon Seller’s request, all costs related to such applications and instruments. Seller, subject to the next succeeding sentence, shall use commercially reasonable efforts to preserve in force all existing Permits and to cause all
those expiring during the period between the date hereof and the Closing to be renewed prior to the Closing Date. If any such Permit (other than Excluded Permits, but inclusive of the Existing Liquor License) shall be suspended or revoked, Seller
shall promptly so notify Purchaser and shall use commercially reasonable efforts to cause the reinstatement of such Permit without any additional limitation or condition; 
  
 (vi) During the 7 day period prior to the Closing Date, Purchaser shall be entitled to have up to 2
representatives at the Hotel, at reasonable times and under reasonable circumstances, to observe the operations of the Hotel, provided (a) Purchaser makes arrangements with Hotel management prior to sending such representative(s) to the Hotel
and (b) such representative(s) do not interfere with Hotel management or employees or any of the operations of the Hotel; and 
  

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 (vii) to the extent maintained by a prudent owner of comparable properties that are
similarly situated to the Hotel, Seller will maintain in effect all policies of insurance for the Hotel which are in effect as of the date hereof, or similar policies of insurance, with no less than the limits of coverage now carried with respect to
the Hotel. 
  
 (b) Pursuant to Section
17.12 of this Agreement, between the date hereof and the Closing Date, Seller will be performing the Hotel Renovations in accordance with the requirements of Section 17.12 hereunder. Notwithstanding anything to the contrary
contained herein, Purchaser’s consent shall not be required for Seller to perform the Hotel Renovations or enter into any agreements or contracts necessary to perform the Hotel Renovations, provided the same are performed in accordance with the
requirements of Section 17.12 hereunder and so long as (i) the work performed and the materials installed are performed and installed in the same manner as was employed by Seller prior to the date hereof, and (ii) Purchaser shall not
have any liability with respect to such Hotel Renovations. 
  
 (c) Between the date hereof and the Closing Date, Seller will use commercially reasonable efforts to cause the Encroachment Agreement to be entered into prior to the Closing. 
  
 (d) Between the date hereof and the Closing Date, Seller
will use commercially reasonable efforts to cause (x) all parties to the Settlement Agreement to execute the same, (y) the Consent Condition thereunder to be satisfied and (z) all action items set forth in Sections 2.1 and 2.2 of the Settlement
Agreement to be completed. 
  
 (e) If
Purchaser’s consent is required pursuant to this Article 12, Purchaser shall respond to Seller within 5 Business Days after Seller’s request for consent. If Purchaser fails to respond to Seller within such 5-Business Day
period, Purchaser shall be deemed to have consented to the requested action. 
  
 ARTICLE 13. 
  
 CASUALTIES AND
TAKINGS 
  
 13.1. Casualties. 
  
 13.1.1. Notice. If any substantial damage to the Real
Property and/or Parking Easement Property shall occur on or before the Closing Date by reason of fire or other casualty (a “Casualty”), Seller will give Purchaser Notice (a “Casualty Notice”) of such
event upon the earlier of the Closing Date or 5 Business Days following such Casualty. 
  
 13.1.2. Restoration. If the cost to repair and restore the Real Property and/or Parking Easement Property, as the case may be,
exceeds $4,000,000 (as reasonably estimated by an independent and disinterested architect or registered professional engineer competent to make such estimate and selected by Seller no later than 15 Business Days following such Casualty), then
Purchaser shall have the option to terminate this Agreement by giving Seller Notice to such effect within 5 Business Days after the receipt of the report of the 

  

 -38- 

 
architect or engineer referred to above. If Purchaser elects to terminate this Agreement pursuant to this Section 13.1, this Agreement shall be
deemed null and void (except for those obligations which expressly survive termination), the parties hereto shall have no further obligations to or recourse against each other except as otherwise expressly set forth herein, and the Deposit shall be
returned to Purchaser. If Purchaser does not timely elect to terminate this Agreement as hereinabove provided, or if Purchaser is obligated to close because the cost to repair or restore the Casualty (as reasonably estimated by the independent and
disinterested architect or registered professional engineer described above) does not exceed the amount set forth above, then the Closing shall take place as herein provided without adjustment of the Purchase Price, and, subject to Section
13.1.3 hereof, Seller shall, at the Closing, pay or assign to Purchaser (by written instrument in the case of any assignment, but without recourse, representation or warranty) the proceeds from all fire and other casualty insurance paid or
payable to Seller and/or the owner of the Parking Easement Property with respect to the Casualty. 
  
 13.1.3. To the extent that Seller, in accordance with this Agreement, elects to commence any repair, replacement or restoration of the
Property prior to Closing, then Seller shall be entitled to receive and apply available insurance proceeds to any portion of such repair, replacement or restoration completed or installed prior to Closing, with Purchaser being responsible for
completion of such repair, replacement or restoration after Closing from the balance of any available insurance proceeds. The provisions of this Section 13.1.3 shall survive the Closing and delivery of the Deed to Purchaser.

  
 13.2. Taking. If Seller has knowledge of the actual or
threatened taking of all or any part of the Real Property and/or Parking Easement Property by exercise of right of eminent domain, Seller will give Purchaser prompt written notice (a “Condemnation Notice”) of such event. If,
on or before the Closing Date, all of the Real Property and/or Parking Easement Property shall be taken or threatened to be taken by exercise of right or eminent domain, or there shall be taken or threatened to be taken so material a part thereof
that, in the reasonable judgment of Purchaser, the taking does or, in the case of a threatened taking, will, materially interfere with the use of the Hotel, then Purchaser may elect to terminate this Agreement by giving Seller Notice to such effect
by the earlier to occur of (a) the Closing Date or (b) 15 days after Seller has given Purchaser the Condemnation Notice. If Purchaser elects to terminate this Agreement pursuant to this Section 13.2, this Agreement shall be deemed null
and void (except for those obligations which expressly survive termination), the parties hereto shall have no further obligations to or recourse against each other except as otherwise expressly set forth herein, and the Deposit shall be returned to
Purchaser. If Purchaser does not timely elect to terminate this Agreement or if Purchaser is obligated to close because the condemnation does not materially interfere with the use of the Hotel, then the Closing shall take place as herein provided
without any abatement of the Purchase Price, and Seller shall, by written instrument at the Closing, assign to Purchaser all of Seller’s and/or the Parking Easement Property owner’s right, title and interest in and to any condemnation
award. For purposes of this Section 13.2, the term “taking” shall include temporary takings in excess of 15 days within a 365-day period as well as permanent takings. 
  

 -39- 

 ARTICLE 14. 
  
 ESCROW ARRANGEMENTS 
  
 14.1. Escrow Agent/Escrow Agreement. Purchaser and Seller shall enter into an agreement (the “Escrow Agreement”) with the
Title Company (“Escrow Agent”) substantially in the form attached hereto as Exhibit H, to act as escrow agent with respect to the Deposit paid pursuant to this Agreement. 
  
 ARTICLE 15. 
  
 NOTICES 
  
 15.1. Notices by Parties. Except as otherwise provided in this Agreement, all notices, demands, requests, consents, approvals and other
communications (any of the same a “Notice”, herein collectively called “Notices”) required or permitted to be given hereunder, or which are to be given with respect to this Agreement, shall be in
writing and shall be hand delivered, sent by nationally recognized overnight courier or transmitted by facsimile (with hard copy confirmation by overnight courier; provided, that, receipt of a hard copy confirmation by overnight courier shall not be
required for notice to be effective), addressed to the party to be so notified as follows: 
  
 If to Purchaser to: 
  
 DiamondRock Hospitality Limited Partnership 
 c/o DiamondRock Hospitality Company 
 10400 Fernwood Road, suite 300 
 Bethesda,
Maryland 20817 
 Attention: Michael Schecter, General Counsel 
 Telephone: (301) 380-6012 
 Telecopy: (301) 380-6850 
  
 with a copy to: 
  
 Willkie Farr & Gallagher LLP 
 787 Seventh Avenue 
 New York, New York 10019

 Attention: Steven D. Klein, Esq. 
 Telephone: (212) 728-8000 
 Telecopy: (212) 728-8111 
  
 If to Seller to: 
  
 VAMHC, Inc. 
 c/o Vail Associates, Inc.

 137 Benchmark Road 
 Avon,
Colorado 81620 
  

 -40- 

 Attention: General Counsel 
 Telephone: (970) 845-2927 
 Telecopy: (970) 845-2928 
  
 with a copy to: 
  
 Brownstein Hyatt & Farber, P.C. 
 410 17th Street,
22nd Floor 
 Denver Colorado 80202 
 Attention: Gary M. Reiff 
 Telephone: (303) 223-1114 
 Telecopy: (303) 223-1111 
  
 A Notice shall be effective on the earlier of (x) actual receipt or (y) hand delivery or the
following Business Day after sent by overnight courier for next Business Day delivery as the case may be. Either party may at any time change the address for Notices to such party by giving a Notice as aforesaid. 
  
 ARTICLE 16. 
  
 DEFAULT BY PURCHASER OR SELLER 
  
 16.1. Default by Purchaser. If (i) Purchaser shall default in the payment of the Purchase Price or if Purchaser shall
default in the performance of any of its other material obligations to be performed on the Closing Date, or (ii) Purchaser shall default in the performance of any of its material obligations to be performed prior to the Closing Date and, with
respect to any default under this clause (ii) only, such default shall continue for 5 days after notice to Purchaser, THEN SELLER’S SOLE REMEDY BY REASON THEREOF SHALL BE TO TERMINATE THIS AGREEMENT AND, UPON SUCH TERMINATION, NEITHER PARTY
HERETO SHALL HAVE ANY FURTHER OBLIGATIONS HEREUNDER EXCEPT FOR THOSE THAT ARE EXPRESSLY PROVIDED IN THIS AGREEMENT TO SURVIVE THE TERMINATION HEREOF AND SELLER SHALL RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES FOR PURCHASER’S DEFAULT HEREUNDER, IT
BEING AGREED THAT THE DAMAGES BY REASON OF PURCHASER’S DEFAULT ARE DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. Nothing contained in this Section 16.1 is intended to or shall be construed in any way to limit or restrict the
rights and remedies of Seller for a breach of any of Purchaser’s covenants, agreements and obligations contained in Sections 4.2, 17.3, 17.4, 17.5.1 and 17.8.4 of this Agreement. SELLER AND PURCHASER FURTHER AGREE THAT THIS
SECTION 16.1 IS INTENDED TO AND DOES LIMIT THE AMOUNT OF DAMAGES DUE SELLER AND THE REMEDIES AVAILABLE TO SELLER, AND, ABSENT FRAUD AND EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 17.3, 17.4, 17.5.1 AND 17.8.4, SHALL BE
SELLER’S EXCLUSIVE REMEDY AGAINST PURCHASER, BOTH AT LAW AND IN EQUITY, ARISING FROM OR RELATED TO A BREACH BY PURCHASER OF ITS REPRESENTATIONS, WARRANTIES, OR COVENANTS OR ITS OBLIGATION TO 

  

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CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT. UNDER NO CIRCUMSTANCES MAY SELLER SEEK OR BE ENTITLED TO RECOVER ANY SPECIAL, CONSEQUENTIAL,
PUNITIVE, SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH SELLER SPECIFICALLY WAIVES, FROM PURCHASER FOR ANY BREACH BY PURCHASER, OF ITS REPRESENTATIONS, WARRANTIES OR COVENANTS OR ITS OBLIGATIONS UNDER THIS AGREEMENT. 
  
 16.2. Default by Seller. If (i) Seller shall default in any of its
material obligations to be performed on the Closing Date or (ii) Seller shall default in the performance of any of its material obligations to be performed prior to the Closing Date and, with respect to any default under this clause (ii) only, such
default shall continue for 5 days after notice to Seller, then Purchaser as its SOLE AND EXCLUSIVE REMEDY by reason thereof (in lieu of prosecuting an action for damages or proceeding with any other legal course of conduct, the right to bring such
actions or proceedings being expressly and voluntarily waived by Purchaser, to the extent legally permissible, following and upon advice of its counsel) shall have the right, subject to the other provisions of this Section 16.2, (i) to
seek to obtain specific performance of Seller’s obligations hereunder or (ii) to receive from Seller a return of the Deposit and up to $300,000 for Purchaser’s reasonable, documented out-of-pocket costs and expenses actually and directly
incurred by Purchaser in the negotiation of this Agreement and Purchaser’s diligence investigation (such amount shall not be in addition to, or duplicative of, the amount for cost reimbursement set forth in the second to last paragraph of
Article 6, it being the intent of the parties that Purchaser is capped at $300,000 for all such costs and expenses to be recovered from Seller). Upon such return and delivery, this Agreement shall terminate and neither party hereto
shall have any further obligations hereunder except for those that are expressly provided in this Agreement to survive the termination hereof. Nothing contained in this Section 16.2 shall diminish Purchaser’s remedies,
post-Closing to the extent expressly set forth in Sections 17.3, 17.4 and 17.5.2 of this Agreement. SELLER AND PURCHASER FURTHER AGREE THAT THIS SECTION 16.2 IS INTENDED TO AND DOES LIMIT THE AMOUNT OF DAMAGES DUE
PURCHASER AND THE REMEDIES AVAILABLE TO PURCHASER, AND ABSENT FRAUD AND EXCEPT AS EXPRESSLY SET FORTH IN SECTIONS 17.3, 17.4 AND 17.5.2, SHALL BE PURCHASER’S EXCLUSIVE REMEDY AGAINST SELLER, BOTH AT LAW AND IN EQUITY, ARISING FROM
OR RELATED TO A BREACH BY SELLER OF ITS REPRESENTATIONS, WARRANTIES, OR COVENANTS OR ITS OBLIGATION TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT. UNDER NO CIRCUMSTANCES MAY PURCHASER SEEK OR BE ENTITLED TO RECOVER ANY SPECIAL,
CONSEQUENTIAL, PUNITIVE, SPECULATIVE OR INDIRECT DAMAGES, ALL OF WHICH PURCHASER SPECIFICALLY WAIVES, FROM SELLER FOR ANY BREACH BY SELLER, OF ITS REPRESENTATIONS, WARRANTIES OR COVENANTS OR ITS OBLIGATIONS UNDER THIS AGREEMENT. 
  
 16.3. Survival. This Article 16 shall survive the
Closing or termination of this Agreement. 
  

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 ARTICLE 17. 
  
 ADDITIONAL COVENANTS 
  
 17.1. [Intentionally Omitted] 
  
 17.2. Liquor Licenses. 
  
 17.2.1. Existing Liquor License. All Permits related to the retail sale of alcoholic beverages (collectively, the
“Existing Liquor License”) are held by Operating Tenant. The Existing Liquor License will terminate upon the transfer of the Hotel. The sale of the Property shall be contingent upon New Liquor Licensee’s ability
to obtain a temporary Hotel and Restaurant Liquor License (the “New Liquor License”). Purchaser agrees to refund promptly to Seller any and all refundable deposits or fees paid by Seller in consideration for any Permits,
including the Existing Liquor License, to the extent Purchaser receives any such deposits or fees. 
  
 17.2.2. New Liquor License. Seller shall cause New Liquor Licensee timely to give all required notices to the Liquor Authority,
together with any applications, filing and license fees, and required back-up documentation in connection with its application for the New Liquor License and permanent hotel and restaurant liquor license to replace the New Liquor License (the
“Permanent Liquor License”). Seller shall cause New Liquor Licensee to diligently prosecute such application for the New Liquor License and Permanent Liquor License and timely provide all information required by the Liquor
Authorities. Seller shall cause New Liquor Licensee to (i) keep Purchaser reasonably informed throughout the application process of the status of receipt of the New Liquor License and Permanent Liquor License, (ii) provide Purchaser with copies of
any material documents with respect to the application process (including copies of any required notices and the application to the Liquor Authority), (iii) provide Purchaser reasonable notice of and the opportunity to attend any Liquor Authority
hearings in connection with New Liquor Licensee obtaining the New Liquor License or Permanent Liquor License, and (iv) immediately notify Purchaser whether Manager is denied or approved the New Liquor License and Permanent Liquor License. If the New
Liquor License is denied to New Liquor Licensee (other than because of Purchaser’s suitability) and Purchaser has complied with its obligations under this Section 17.2.2, Purchaser may terminate this Agreement, following which the
parties hereto shall have no further obligations to or recourse against each other except as otherwise expressly set forth herein, and the Deposit shall be returned to Purchaser. 
  
 17.2.3. Survival. This Section 17.2 shall survive the Closing or termination of this
Agreement. 
  
 17.3. Broker’s Commission. Purchaser
warrants and represents to Seller that Purchaser has not dealt or negotiated with any broker in connection with the transaction contemplated by this Agreement. Purchaser shall indemnify, defend and hold harmless Seller from and against any and all
Losses resulting from a breach of the foregoing representation or any claim that may be made by any broker or other person claiming a commission, fee or other compensation by reason of having dealt with Purchaser in connection with this transaction
including, without limitation, any Loss incurred in enforcing this indemnity. Seller warrants and represents to Purchaser that Seller has not dealt or negotiated with any broker in connection with this transaction. Seller shall indemnify, defend and
hold harmless Purchaser from and against any and all Losses resulting from a breach of the foregoing representation or any claim that may 

  

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be made by any broker or other person claiming a commission, fee or other compensation by reason of having dealt with Seller in connection with this
transaction including, without limitation, any Loss incurred in enforcing this indemnity. This Section 17.3 shall survive the Closing or termination of this Agreement. 
  
 17.4. Safe Deposit Boxes and Baggage. On the Closing Date, Seller shall cause the delivery to Manager of (i) all of
Seller’s keys to the safe deposit boxes in the Hotel, together with all receipts and agreements relating to such safe deposit boxes and (ii) all baggage, valises, trunks and other property of guests checked or left in the care of Seller or
retained by Seller as security for any accounts receivable. Seller shall remain responsible for any claims pertaining to such property (including, without limitation, the contents of any baggage, valises and trunks) relating to the period prior to
the Closing Date, and Seller agrees to indemnify and hold the Purchaser Indemnified Parties harmless from and against any and all Losses to the extent arising in connection therewith. This Section 17.4 shall survive the Closing or
termination of this Agreement. 
  
 17.5. Indemnities and
Releases. 
  
 17.5.1.
Purchaser’s Indemnity. From and after the Closing, Purchaser shall protect, defend, indemnify and hold Seller and Seller’s officers, directors, shareholders, affiliates, partners, members, parents, subsidiaries, successors and
assigns (collectively, “Seller Indemnified Parties”), free and harmless from and against (i) any and all third party Losses for personal injury or death and property damage to the extent related to the Hotel and also accruing
from and after the Closing, and (ii) any Losses to the extent arising from a breach of Purchaser’s representations set forth in Section 6.2 (“Seller’s Claims”). Notwithstanding anything in this
Agreement to the contrary, the indemnity set forth in subsentence (ii) above shall survive for 36 months after the Closing Date. Such indemnity, as well as Purchaser’s representations set forth in Section 6.2 shall automatically
be null and void and of no further force and effect on the date immediately succeeding the 36 month anniversary of the Closing Date, unless on or before such date, Seller shall have provided notice to Purchaser pursuant to Article 15
hereof alleging that Purchaser shall be in breach of such representation or warranty and that Seller shall have suffered actual damages as a result thereof. Seller shall then have 30 days following delivery of such notice to commence a legal
proceeding against Purchaser. If Seller has not commenced a legal proceeding against Purchaser within such 30-day period following delivery of notice, then such representations and indemnity shall be null and void and Purchaser’s obligations
under this Section 17.5.1 with respect to such representations and indemnity shall terminate. 
  
 17.5.2. Seller’s Indemnity. 
  
 (a) From and after the Closing, Seller shall protect, defend, indemnify and hold Purchaser and Purchaser’s officers, directors,
shareholders, affiliates, partners, members, parents, subsidiaries, successors and assigns (collectively, “Purchaser Indemnified Parties”), free and harmless from and against (i) any and all third party Losses for personal
injury or death and property damage to the extent related to the Hotel and also accruing prior to the Closing, (ii) any Losses to the extent arising from (A) a breach of Seller’s Representations, and (B) a breach of Seller’s covenants set
forth in Sections 12.1(a)(ii, iii, and iv) 

  

 -44- 

 
(except to the extent that Purchaser has knowledge or information of an inaccuracy or breach of representation, warranty or covenant as provided in the last
sentence of the last paragraph of Section 6.1 and nonetheless Closes), and (iii) any Losses to the extent arising from or related to any wages, vested vacation and sick time, vested retirement benefits and all other employee costs with
respect to individuals who work at the Hotel relating to the time period prior the Apportionment Time (except to the extent apportioned) (collectively, “Purchaser’s Claims”). Notwithstanding anything in this Agreement to
the contrary, (x) Seller’s Property Representations and the indemnity set forth in subsentence (ii) above with respect to Seller’s Property Representations and the covenants referenced therein shall survive for 12 months after the Closing
Date and (y) any other of Seller’s Representations (other than Seller’s Property Representations) and the indemnity set forth in subsentence (ii) above with respect to same shall survive for 36 months after the Closing Date (each of such
12 and 36 months periods, as applicable, a “Survival Period”). Each of (x) Seller’s Property Representations and the indemnity set forth in subsentence (ii) above with respect to Seller’s Property Representations
and the covenants referenced therein and (y) any other of Seller’s Representations (other than Seller’s Property Representations) and the indemnity set forth in subsentence (ii) above with respect to same, shall automatically be null and
void and of no further force and effect on the expiration date of the applicable Survival Period unless, on or before such expiration date, Purchaser shall have provided notice to Seller pursuant to Article 15 hereof alleging that
Seller shall be in breach of such representation or warranty and that Purchaser shall have suffered actual damages as a result thereof. Purchaser shall then have 30 days following delivery of such notice to commence a legal proceeding against
Seller. If Purchaser has not commenced a legal proceeding against Seller within such 30-day period following delivery of notice, then such representations and indemnity shall be null and void and Seller’s obligations under this Section
17.5.2 with respect to such representations and indemnity shall terminate. The maximum aggregate amount of liability that Seller shall have under any circumstance under this Agreement for any claim or Loss (singularly or in aggregate of all
claims and Losses) for a breach of Seller’s Representations and the indemnity obligation set forth in subsentence (ii) shall not exceed, in the aggregate, $3,000,000.00 (the “Damage Cap”); provided, however, that
Purchaser shall not have the right to assert a claim under this Section 17.5.2(a) for a breach of Seller’s Representations or the indemnity obligation set forth in subsentence (ii) unless the Loss to Purchaser on account of such
breach (individually or when combined with Losses from other breaches) equals or exceeds $600,000 (the “Threshold”), in which event Purchaser may assert claims for the full amount of such Loss (including the initial $600,000
of Loss incurred prior to reaching the Threshold), but in no event to exceed the Damage Cap. Notwithstanding the foregoing, to the extent that the Hotel maintains insurance with respect to a matter that would be a Purchaser Claim, Purchaser shall
first seek recovery from such insurance (and not from Seller) and only the amounts not so covered by insurance shall count toward the $600,000 Threshold; provided, that the determination as to whether a matter that would be a Purchaser Claim is
covered by insurance maintained by the Hotel shall be made in Purchaser’s reasonable discretion. 
  
 (b) If, at Closing, Seller shall not be able to satisfy the conditions set forth in Section 11.1(h) hereof (the
“Indemnifiable Closing Conditions”), but all other conditions to Purchaser’s obligation to proceed with Closing under this Agreement shall have been satisfied, then the Closing shall occur notwithstanding the fact that
the Indemnifiable Closing Conditions shall not have been satisfied, and Seller shall indemnify and hold harmless 

  

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Purchaser and Purchaser’s Indemnitees from and against any and all Losses that Purchaser or Purchaser’s Indemnitees may suffer or incur arising
from either (i) a Released Claim as defined in the Assignment and Assumption of Assumed Obligations, or (ii) any claim that the Condominium Association or any owner of record of an Apartment Unit (as such term is defined in the Declaration) may have
against Seller in its capacity as the owner of the Unit based on (x) there being any outstanding unpaid “common expenses” (as such term is defined in the Declaration) relating to the Unit as of the date of Closing, or (y) the Seller, as
the owner of the Unit, being in violation, breach or default of any of the terms or conditions of the Declaration as of the date of the Closing. Purchaser acknowledges that, pursuant to the Settlement Agreement, Seller may waive the Consent
Condition and Purchaser agrees that, notwithstanding anything in this Agreement to the contrary, Seller may, in its sole discretion, waive the Consent Condition at any time. If Seller waives the Consent Condition prior to Closing, then the
Indemnifiable Closing Conditions shall be deemed satisfied for purposes of Section 11.1, this Section 17.5.2(b) and Section 17.10, and in addition to the indemnity set forth in the immediately preceding
sentence, Seller shall indemnify and hold harmless Purchaser and Purchaser’s Indemnitees from and against any and all Losses to the extent arising from a claim by a lender who has not signed a consent to the Easement Amendment attached to the
Settlement Agreement, which claim relates to a matter covered by the Easement Amendment which would not otherwise exist had such lender consented to the Easement Amendment. The foregoing indemnities shall not deemed to include any claims that any
owner of record of an Apartment Unit may have against the Condominium Association. Purchaser covenants that it will not cause the Condominium Association to bring an action against Seller in its capacity as the owner of record of the Unit after the
Closing for any matter accruing prior to the Closing (unless required in the exercise of fiduciary duty required by applicable law or a court of competent jurisdiction). The foregoing sentence shall survive the Closing. Seller’s
indemnifications set forth in this Section 17.5.2(b) shall survive Closing for a period of 36 months (but the indemnity set forth in clauses (i) and (ii)(y) (but not (ii)(x)) of the first sentence of this Section
17.5.2(b), shall terminate early and be of no force or effect if the Indemnifiable Closing Conditions are satisfied or deemed satisfied before or after Closing) and shall not be subject to the Damage Cap or the $600,000 Threshold set forth
in subsection (a) above. 
  
 17.5.3.
Assumed Obligations. Whenever it is provided in this Agreement that one party shall assume an obligation or be responsible for a payment, the party assuming such obligation shall be deemed to have also agreed to indemnify and hold harmless
the other party from all Losses arising from any failure of the assuming party to perform such obligation or make such payment. 
  
 17.5.4. Indemnification Process. The party seeking or entitled to indemnification under this Agreement shall provide prompt Notice
to the other party (the “Indemnitor”) specifying, with reasonable detail, the matter for which such indemnification is claimed. The Indemnitor shall have the right, upon giving Notice to the other party within 30 days after
the date it received Notice from such party, to take primary responsibility for the prosecution or defense of such matter, provided such prosecution or defense is diligently pursued with counsel reasonably satisfactory to the indemnified party. If
the Indemnitor takes responsibility for the prosecution or defense of the action, the indemnitee may participate at the indemnitee’s own cost and defense in such action. The Indemnitor shall not settle or 

  

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compromise any claim without the indemnitee’s consent, unless the Indemnitor does so without imposing any obligations on the indemnitee or admitting
liability on behalf of the indemnitee. 
  
 17.5.5. Release of Seller. Other than with respect to Purchaser’s Claims, Seller shall not be responsible or liable to Purchaser for any defects, errors or omissions, or on account of any physical conditions affecting the
Property. Other than with respect to Purchaser’s Claims, Purchaser, its successors and assigns, and anyone claiming by, through or under Purchaser, hereby fully releases the Seller Indemnified Parties from, and irrevocably waives its right to
maintain, any and all claims and causes of action that it or they may now have or hereafter acquire against the Seller Indemnified Parties with respect to any and all Losses arising from or related to any defects, errors, omissions or other physical
conditions affecting the Property. 
  
 17.5.6.
Release of Purchaser. Other than with respect to Seller’s Claims, Purchaser shall not be responsible or liable to Seller for any defects, errors or omissions, or on account of any physical conditions affecting the Property. Other than
with respect to Seller’s Claims, Seller, its successors and assigns, and anyone claiming by, through or under Seller, hereby fully releases the Purchaser Indemnified Parties from, and irrevocably waives its right to maintain, any and all claims
and causes of action that it or they may now have or hereafter acquire against the Purchaser Indemnified Parties with respect to any and all Losses arising from or related to any defects, errors, omissions or other physical conditions affecting the
Property. 
  
 17.5.7. Survival. This
Section 17.5 shall survive the Closing or termination of this Agreement. 
  
 17.6. Agreements Regarding At-Large Manager. As soon as practicable after the later to occur of the Closing or satisfaction of the Indemnifiable Closing Conditions, Seller shall cooperate with Purchaser to call
a special meeting pursuant to the Condominium Documents in order to elect a successor to replace the At-Large Manager with a desginee specified by Purchaser. Notwithstanding the foregoing, at any time after the Closing, Purchaser may require Seller
to cause the At-Large Manager to resign effective immediately and not conditioned on the election of such At-Large Manager’s successor. Unless the At-Large Manager is constrained from doing so in the exercise of his fiduciary duties required by
applicable law, from and after the Closing Date, Seller shall cause the At-Large Manager to vote or take any other action as directed by Purchaser. The terms of this Section 17.6 shall survive the Closing. 
  
 17.7. Tax Appeal Proceedings. Seller may receive and retain the
proceeds from any tax appeals or protests for tax prior to the year in which the Closing Date occurs. Until the Closing, Seller may initiate (and provide Notice to Purchaser of such initiation) and prosecute any tax appeals for taxes attributable to
the year in which the Closing Date occurs; after the Closing Date, Seller shall relinquish and assign to Purchaser the rights to appeal to Purchaser, to the extent requested by Purchaser, in which event Seller shall be entitled to pro-rata
reimbursement with Purchaser of their respective attorneys fees and costs pursuant to the next sentence. The net proceeds from any proceedings for real property taxes due and payable for the tax year in which the Closing Date occurs, after payment
of attorneys’ fees and other costs and 

  

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any amounts payable to third parties including, but not limited to, legal fees and disbursements and consultant and expert witness fees, will be prorated, as
of the Closing Date, between the parties when received. Neither Purchaser nor Seller shall settle any appeal or protest for the tax year in which the Closing occurs without the prior consent of the other party, which consent may not be unreasonably
withheld or delayed. This Section 17.7 shall survive the Closing. 
  
 17.8. Post-Closing Obligations. 
  
 17.8.1. Ski Lift. Purchaser acknowledges that Seller currently is contemplating building a new ski lift or tram in the vicinity of the Hotel. To the extent that Seller actually decides to build such a new ski
lift or tram, Seller agrees that no portion of the construction, maintenance, repair upkeep insurance or other costs relating to the ski lift or tram shall be passed through to Purchaser by Seller (or any affiliate of Seller), directly or
indirectly, through Condominium Association assessments or otherwise. 
  
 17.8.2. Planned Condominiums. Purchaser acknowledges that pursuant to the West Day Plat, for purposes of zoning the Land and the Adjacent Lots are treated as one development site, and, accordingly, development
standards are based upon the improvements and land area of the combined areas of the Land and the Adjacent Lots. Purchaser hereby agrees that, from and after the Closing, Purchaser shall not further develop the Land or construct any additional
improvements, units or room thereon inconsistent with the Agreement Regarding Density Allocation attached hereto as Exhibit BB (the “Agreement Regarding Density Allocation”), to be executed by Purchaser and
Seller at Closing and recorded with the Clerk and Recorder of Eagle County. Except as provided in the Agreement Regarding Density Allocation, the West Day Plat shall be a “Shared Permit” with the Land and Adjacent Lots having their
respective rights thereunder. 
  
 17.8.3.
Hotel Books and Records. Following the Closing Date, Seller and its affiliates shall, subject to any confidentiality and/or proprietary restrictions, make available to Purchaser any computer systems, books, records, ledgers, files,
information and data which are in the possession of Seller or its affiliates and relate to the ownership or operation of the Property but were not included within the Hotel Books and Records conveyed to Purchaser at Closing. 
  
 17.8.4. Assignment of Hotel Contracts. If any Hotel
Contract requires consent to such assignment from Seller to Purchaser, but such consent has not been obtained prior to Closing, this Agreement, to the extent permitted by law, shall constitute an equitable assignment by Seller to Purchaser of all of
Seller’s rights, benefits, title and interest in and to the assigned Hotel Contracts, and Purchaser shall, as between Purchaser and Seller, assume the obligations of Seller under such Hotel Contracts and indemnify Seller from any Losses arising
from such Hotel Contracts from and after the Closing Date, as set forth in Section 17.5.3; it being understood, however, that Seller shall indemnify Purchaser and Purchaser’s Indemnitees from and against any Losses relating to the
Hotel Contracts that arise and accrue before the Closing Date (but excluding the mere fact of failure to obtain consent to assignment). 
  
 17.8.5. Garage Certificate of Occupancy. If not received by the Closing Date, following the Closing Date, Seller and its affiliates
shall exercise commercially reasonable 

  

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efforts to obtain a final permanent certificate of occupancy from the applicable local governmental authorities with respect to the Parking Easement
Property. Seller shall promptly forward a copy of such document and all correspondence relating thereto upon receipt. 
  
 17.8.6. Hotel PIP. Attached hereto as Exhibit HH is a copy of the Property Improvement Plan for the Hotel (the
“PIP”) as required by Franchisor. In connection therewith, Purchaser and Seller hereby agree as follows: 
  
 (a) From and after the Effective Date until the Closing, Seller and Purchaser will cooperate with each other to negotiate in good faith
with Franchisor to reduce the scope of PIP items required by Marriott. 
  
 (b) Seller shall be responsible, at no cost to Purchaser, for completing the PIP items identified on Exhibit HH as a “Vail Obligation.” 
  
 (c) Seller shall contribute one dollar (up to an aggregate
of $750,000) to fund the PIP under the new franchise agreement for the Hotel for every two dollars that Purchaser funds; provided, however, that Seller’s obligation to contribute to PIP funding shall commence only after Purchaser has expended
$2,000,000 for the PIP from the FF&E Reserve. 
  
 17.8.7. Survival. The terms of this Section 17.8 shall survive the Closing and delivery of the Deed. 
  
 17.9. Confidentiality/Return of Documents. Purchaser and Seller each hereby covenant and agree that, at all times after the date of this Agreement
and prior to the Closing, unless expressly consented to in writing by the other party, no public disclosure (including, without limitation, by press release or other media) shall be made concerning this transaction. Seller and Purchaser each agree
to keep strictly confidential the existence and terms of this Agreement and all information provided to or obtained by Seller or Purchaser pursuant to this Agreement or otherwise in connection with the transaction contemplated hereby;
provided, however, that such information may be disclosed (a) to employees, officers and directors of Purchaser or Seller, to Purchaser’s Consultants, or to Purchaser’s or Seller’s outside counsel and accountants or
other consultants subject to the same standard of confidentiality, (b) as may be required by law or a court, (c) to the extent required under any filings with the Securities and Exchange Commission or any securities exchange, (d) to any or employees
of the Securities and Exchange Commission, analysts, underwriters, lenders or potential investors (and any attorneys, accountants, professional consultants or employees of the same) in connection with Purchaser’s initial public offering, and
(e) as may be required to be delivered to the Liquor Authority in connection with Purchaser obtaining the New Liquor License. Prior to or simultaneously with making any permitted disclosure, the party making such disclosure agrees to provide the
other party hereto with a true and complete copy thereof. Purchaser hereby acknowledges and agrees that all materials and information relating to the Property supplied to Purchaser by or on behalf of Seller or obtained by Purchaser in accordance
with Article 4 hereof shall be treated in accordance with the terms and provisions of this Section 17.9. Such information shall be used solely for evaluating Purchaser’s investment in the Property. If this Agreement
terminates or the 

  

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transaction contemplated under this Agreement fails to close for any reason whatsoever, Purchaser shall deliver to Seller all of the documents, financial
statements, reports or other information relating to the Property supplied to Purchaser by or on behalf of Seller or obtained by Purchaser in accordance with Article 4 hereof, including all Third Party Reports (to the extent Purchaser
is not legally prohibited in its reasonable judgment from delivering such materials to Seller). This Section 17.9 shall survive the Closing or termination of this Agreement. 
  
 17.10. Assignment of Assumed Obligations—Post Closing. Seller and Purchaser recognize that, although Seller will
use commercially reasonable efforts to accomplish the same, the Indemnifiable Closing Conditions may not be met by Closing. As a result, if the Indemnifiable Closing Conditions are not met by Closing and Seller has not waived the Consent Condition
as provided in Section 17.5.2(b), then Purchaser and Seller agree that (i) Seller will continue to use commercially reasonable efforts after the Closing to satisfy the Indemnifiable Closing Conditions as promptly as possible, (ii) the
Assumed Obligations will not be transferred at Closing, (iii) Seller will not deliver the items required under Section 8.2.1(o) at the Closing, (iv) the Assignment and Assumption of Assumed Obligations will not be executed at Closing,
(v) Sections 11.1(g) and (h) will not be conditions to Purchaser’s obligation to Close, (vi) once the Consent Condition under the Settlement Agreement has been satisfied, Purchaser will reasonably cooperate with Seller (at
Seller’s cost) to complete the actions contemplated under Sections 2.1 and 2.2 under the Settlement Agreement and agrees that the Condominium Documents will govern the Condominium Association and (vii) within 10 days after the Indemnifiable
Closing Condition has, in fact, been met (which the Seller and Purchaser acknowledge may be after the Closing), Seller and Purchaser will execute the Assignment and Assumption of Assumed Obligations, Seller will deliver the items required under
Section 8.2.1(o), and Purchaser will permit the recordation of the Easement Amendment (as defined in the Settlement Agreement) to be recorded against the Property. The obligations of Seller and Purchaser under this Section
17.10 shall survive the Closing. 
  
 17.11.
Assignment. Purchaser shall not, without Seller’s prior written consent which may be withheld for any or no reason, have the right to assign any of its right, title or interest in this Agreement or any of its rights or obligations
hereunder to any person or entity, and, in the event any such consent is granted, Purchaser shall pay any and all costs and expenses, including, without limitation, any and all transfer and sales taxes which may be incurred in connection therewith
and shall make all filings required with respect thereto. Any attempted assignment by Purchaser in violation of the preceding sentence shall be null and void and of no force and effect. An assignment or transfer of this Agreement shall not relieve
the Purchaser named herein of any of the obligations of the Purchaser under this Agreement. Notwithstanding anything to the contrary hereinabove set forth, Purchaser may transfer or assign this Agreement and/or any rights hereunder, in whole,
without first obtaining Seller’s consent thereto, to an Affiliate of Purchaser provided such Affiliate succeeding to the interest of Purchaser hereunder shall assume the obligations and covenants of Purchaser under this Agreement; provided,
that Purchaser provides Seller with Notice of such assignee at least 10 days prior to the Closing Date and Purchaser is not relieved of its obligations hereunder. For purposes of this Section 17.11, the term
“Affiliate” means any entity in which Purchaser owns, directly or indirectly, not less than 80% of the equity and voting interests in such entity and which entity is managed by 

  

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Purchaser or Persons controlled, controlled by or under common control, directly or indirectly, with Purchaser. This Section 17.11 shall
survive the Closing or termination of this Agreement. 
  
 17.12.
Hotel Renovations. Seller shall use commercially reasonable efforts to complete and pay for the Hotel Renovations prior to the Closing. If the Hotel Renovations are not completed prior to the Closing, Purchaser nonetheless shall be obligated
to close the transaction contemplated hereby; provided that Seller, at its sole cost and expense, shall be obligated to complete the Hotel Renovations following the Closing, and Purchaser hereby provides Seller with a license sufficient to access
the Property to complete such Hotel Renovations. Seller shall perform, or cause to be performed, the Hotel Renovations (i) in accordance with the contracts for the Hotel Renovations entered into prior to the date hereof and described on
Exhibit T attached hereto (the “Hotel Renovation Contracts”), (ii) in a diligent manner, (iii) using good construction practices and with new and first-class materials, (iii) in compliance with all applicable
laws, (iv) lien free, with all work and supplies being paid for on-time (except for those matters which Seller, at its own expense, and after prior Notice to Purchaser protests, provided such protest is permitted under and is conducted in accordance
with the provisions of any mortgage, deed of trust or other instrument that the Real Property is subject and does not constitute a default thereunder, and for which Seller takes appropriate measures to protect the Property from enforcement of
mechanics liens which shall include that (a) any such protest be initiated promptly and conducted in good faith, with due diligence and in accordance with all applicable statutes, laws and ordinances; (b) neither the Property nor any part thereof or
interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost during or on account of such protest; (c) Seller shall promptly upon final determination thereof pay or cause to be paid the amount of any such work and
supplies, together with all costs, interest and penalties which may be payable in connection therewith; (d) such protest shall suspend the collection of such contested work and supplies; and (e) Seller shall furnish such security as may be
reasonably required in the protest, or as may be reasonably requested by Purchaser, to insure the payment of any such work and supplies, together with all interest and penalties thereon) and (v) in a manner and at such times as will reasonably
minimize any noise, vibration or other interference with the operations of the Hotel. Notwithstanding any provisions of Section 12.1 hereof to the contrary, Seller shall not enter into any amendments, modifications or supplements to
the Hotel Renovation Contracts without Purchaser’s prior consent, which may be withheld in Purchaser’s sole discretion. 
  
 17.13. Recording. Neither this Agreement nor any memorandum thereof may be recorded without first obtaining the consent thereto of both Seller and
Purchaser. If Purchaser records this Agreement or memorandum thereof, such recordation shall be an immediate default of this Agreement by Purchaser without the necessity of notice or an opportunity to cure and Purchaser hereby appoints Sellers its
attorney-in-fact to execute any and all documents necessary to remove such documentation from record. 
  
 17.14. Further Instruments and Acts. The parties shall execute and deliver, or cause to be executed and delivered, such additional instruments,
assignments, assurances, certificates and documents, and shall do such further acts, as may be reasonably necessary to carry out the provisions of this Agreement. 
  

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 17.15. Attorneys’ Fees. If any arbitration (to the extent expressly provided for hereunder)
or action is brought by either Purchaser or Seller relating to this Agreement or the transfer contemplated hereby, the substantially prevailing party shall recover its reasonable attorneys’ fees (including those of in-house counsel and appeal),
costs and expenses incurred in such action. This Section 17.15 shall survive the Closing or termination of this Agreement. 
  
 17.16. Severability. The provisions of this Agreement are severable, and if any provision or part hereof or the application thereof to any person
or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such provision or part hereof to other persons or circumstances shall
not be affected thereby, unless the invalidation of such provision or its application materially interferes with the intent of the parties hereto. 
  
 17.17. Applicable Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Colorado (without
giving effect to Colorado’s principles of conflicts of law). Subject to Section 17.25, all claims, disputes and other matters in question arising out of or relating to this Agreement, or the breach thereof, shall be decided by
proceedings instituted and litigated in a court of competent jurisdiction in the State of Colorado, and the parties hereto expressly consent to the venue and jurisdiction of such court. FURTHER, PURCHASER AND SELLER HEREBY WAIVE TRIAL BY JURY IN ANY
SUCH ACTION. This Section 17.17 shall survive the Closing or termination of this Agreement. 
  
 17.18. Third-Party Beneficiaries. This Agreement shall solely benefit the parties hereto. There are no third-party beneficiaries to this Agreement,
except for the Seller’s Indemnified Parties with respect to Purchaser’s indemnification obligations hereunder and the Purchaser Indemnified Parties with respect to Seller’s indemnification obligations hereunder. This Section
17.18 shall survive the Closing or termination of this Agreement. 
  
 17.19. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute an original but all of which, taken together, shall constitute but one and the same instrument
and shall be binding upon each of the undersigned individually as fully and completely as if all had signed but one instrument and the rights and liabilities of each of the undersigned hereunder shall be unaffected by the failure of any of the other
parties to execute any or all of said counterparts provided that each of the parties executes at least one counterpart. 
  
 17.20. Entire Agreement. This Agreement (including the Exhibits), together with the Escrow Agreement, constitutes the entire agreement and
understandings among the parties hereto concerning the subject matter hereof and all prior agreements and understandings between and among the parties hereto, whether written or oral, relating to the subject matter hereto, are merged into, and
contained in, this Agreement and the Escrow Agreement. 
  
 17.21.
Modifications. This Agreement may not be waived, changed, modified, discharged or terminated orally, but only by an agreement in writing, signed by the 

  

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party or parties against whom enforcement of any waiver, change, modification, discharge or termination is sought. 
  
 17.22. [intentionally deleted] 
  
 17.23. Non-Waiver. No failure on the part of Seller or Purchaser or
any of their respective agents to exercise, and no course of dealing with respect to, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by Seller or Purchaser
of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Except as provided in this Agreement, the remedies hereunder are cumulative and are not exclusive of any
remedies provided by law. This Section 17.23 shall survive the Closing or termination of this Agreement. 
  
 17.24. Successors. The terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and
their respective heirs, legal representatives, successors and permitted assigns. This Section 17.24 shall survive the Closing or termination of this Agreement. 
  
 17.25. Special Taxing Districts. Seller provides the following disclosures to Purchaser: SPECIAL TAXING DISTRICTS MAY
BE SUBJECT TO GENERAL OBLIGATION INDEBTEDNESS THAT IS PAID BY REVENUES PRODUCED FROM ANNUAL TAX LEVIES ON THE TAXABLE PROPERTY WITHIN SUCH DISTRICTS. PROPERTY OWNERS IN SUCH DISTRICTS MAY BE PLACED AT RISK FOR INCREASED MILL LEVIES AND EXCESSIVE TAX
BURDENS TO SUPPORT THE SERVICING OF SUCH DEBT WHERE CIRCUMSTANCES ARISE RESULTING IN THE INABILITY OF SUCH A DISTRICT TO DISCHARGE SUCH INDEBTEDNESS WITHOUT SUCH AN INCREASE IN MILL LEVIES. PURCHASER SHOULD INVESTIGATE THE DEBT FINANCING
REQUIREMENTS OF THE AUTHORIZED GENERAL OBLIGATION INDEBTEDNESS OF SUCH DISTRICTS, EXISTING MILL LEVIES OF SUCH DISTRICT SERVICING SUCH INDEBTEDNESS, AND THE POTENTIAL FOR AN INCREASE IN SUCH MILL LEVIES. 
  
 ARTICLE 18. 
  
 TERMINATION RIGHT 
  
 18.1. Reciprocal Termination Right. The parties acknowledge that, promptly following the execution and delivery of this Agreement, they intend to
negotiate in good faith to agree on and finalize forms of the Cooperation and Easement Agreement and Parking Easement Agreement (and guaranties of the obligations arising thereunder) that are acceptable to both parties in their sole discretion. If
either party shall conclude that, despite their good faith efforts, the parties will be unable to agree on forms of such documents, then, at any time on or before 7:00 pm (Eastern) on May 10, 2005, either party may terminate this Agreement in its
entirety effective immediately upon delivery of notice to such effect. If either party duly elects to terminate this Agreement pursuant to this Section 18.1, then this Agreement shall be 

  

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deemed null and void (except for those obligations which expressly survive termination), the parties hereto shall have no further obligations to or recourse
against each other except as otherwise expressly set forth herein, and the Deposit shall be returned to Purchaser. If neither party terminates this Agreement pursuant to this Section 18.1 by 7:00 pm (Eastern) on May 10, 2005, then this
Article 18 shall be of no further force or effect and shall automatically be deemed deleted from this Agreement. 
  
 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set forth above.

  

													
	 PURCHASER:
	 	 	 	DIAMONDROCK HOSPITALITY LIMITED PARTNERSHIP, a Delaware limited partnership
				
	 	 	 	 	 	 	By: DiamondRock Hospitality Company, a Maryland corporation, its general partner
						
	 	 	 	 	 	 	 	 	 By:
	 	 /s/ Michael D. Schecter

	 	 	 	 	 	 	 	 	 	 	 Name:
	 	 Michael D. Schecter

	 	 	 	 	 	 	 	 	 	 	 Title:
	 	 General Counsel

			
	 SELLER:
	 	 	 	VAMHC, INC., a Colorado corporation
				
	 	 	 	 	By:	 	 /s/ Martha D. Rehm

	 	 	 	 	 	 	Name:	 	Martha D. Rehm
	 	 	 	 	 	 	Title:	 	Senior Vice President

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