Document:

exv10w33w5

 

Exhibit
10.33.5

ASHFORD HOSPITALITY TRUST, INC.

Series C Cumulative Redeemable Preferred Stock

STOCK PURCHASE AGREEMENT

April 11, 2007

Wachovia Investment Holdings, LLC

One Wachovia Center

301 South College Street, DC-8

Charlotte, NC 28288

Ladies and Gentlemen:

     Ashford Hospitality Trust, Inc., a Maryland corporation (the “Company”), proposes to issue and
sell to Wachovia Investment Holdings, LLC, a Delaware limited liability company (the “Investor”),
shares of Series C Cumulative Redeemable Preferred Stock, par value $.01 per share (the “Series C
Preferred Stock”). Subject to the terms and conditions, representations and warranties set forth
in this Stock Purchase Agreement (this “Agreement”), the Investor has agreed to purchase the Shares
(as defined in Section 1.1 of this Agreement).

     The Shares are being offered and sold to the Investor without being registered with the
Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended
(the “Securities Act,” which term, as used in this Agreement, includes the rules and regulations of
the Commission promulgated thereunder) in reliance upon the exemption from registration set forth
in Section 4(2) of the Securities Act. Concurrently herewith, the Investor and the Company are
entering into an Investor Rights Agreement (as defined herein) that contains certain terms and
conditions pursuant to which the Company will make the Shares eligible for resale pursuant to the
exemption from registration set forth in Rule 144A under the Securities Act or pursuant to one or
more registration statements filed with the Commission under the Securities Act. The Company
understands that the Investor may, but is under no obligation to, resell all or a portion of the
Shares to other persons (each a “Subsequent Purchaser”).

     The Company hereby confirms its agreement with the Investor as follows:

ARTICLE I. Purchase, Sale And Delivery Of The Shares

Section 1.1 Purchase and Sale.

     On the basis of the representations, warranties and agreements contained in this Agreement,
and upon the terms but subject to the conditions set forth in this Agreement, the Investor shall
purchase from the Company, and the Company shall sell to the Investor, 8,000,000 shares of Series C
Preferred Stock (the “Shares”), for the consideration specified in Section 1.2. On or before the
Closing (as defined in Section 1.2), the Company shall file with the Maryland State Department of
Assessments and
Taxation, Articles Supplementary in the form attached hereto as Exhibit A (except for

 

 

any changes proposed by the Company as are approved by the Investor in its sole and absolute
discretion) (the “Articles Supplementary”).

Section 1.2. Payment of Purchase Price and Delivery of Shares.

     At the closing of the purchase and sale of the Shares contemplated by this Agreement (the
“Closing”), in addition to the other deliveries required by this Agreement, (i) the Investor shall
pay to the Company a cash purchase price, payable by wire transfer or delivery of other immediately
available funds, equal to $25.00 per Share (the “Purchase Price”) and (ii) the Company shall
deliver to the Investor certificates representing the Shares, registered in such name(s) as the
Investor shall have specified no less than two business days prior to the Closing.

Section 1.3. Commitment Fee.

     At the Closing, the Company shall pay to the Investor a fee of 3.15% of the purchase price
(the “Commitment Fee”). The Investor shall refund to the Company a portion of the Commitment Fee
equal to (a) 2.15% of the Purchase Price, if the Company redeems the Shares in full on or prior to
the date that is six months after the Closing Date, (b) 1.65% of the Purchase Price if the Company
redeems the Shares in full following the date that is six months after the Closing Date but on or
before the date that is one year after the Closing Date and (c) 1.15% of the Purchase Price if the
Company redeems the Shares in full following the date that is one year after the Closing Date but
on or before the date that is 18 months after the Closing Date, any such refund to be effected by
the Company setting off the refund from its payment to the Investor of the redemption price.

Section 1.4. Closing.

     The Closing shall take place at the offices of Alston & Bird LLP, 1201 West Peachtree Street,
Atlanta, GA 30309, on such date and at such time as shall be designated by the Investor (the
“Closing Date”).

Section 1.5. Transfers of Shares.

     The Investor may transfer any or all of the Shares without any approval from the Company
either through (a) unregistered sales pursuant to which the Investor causes the Company to be
delivered an opinion of counsel that such sale is made pursuant to an exemption from registration
under the Securities Act, (b) through unregistered sales made in reliance on Rule 144A under the
Securities Act or (c) through sales pursuant to a registration statement effective under the
Securities Act.

ARTICLE II. Representations And Warranties

     Section 2.1 Representations and Warranties of the Investor. The Investor represents and
warrants to and agrees with the Company as of the date hereof and as of the Closing as follows:

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     (a) Authorization of Transaction. The Investor has full power to execute and deliver
this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and
legally binding obligation of the Investor, enforceable in accordance with its terms and
conditions, subject to the Enforceability Limitations (as defined below). The Investor need not
give any notice to, make any filing with, or obtain any authorization, consent, or approval of any
government or governmental agency in order to consummate the transactions contemplated by this
Agreement, except for such as have been obtained and except for such as would not materially impede
the transactions contemplated by this Agreement.

     (b) Investment Experience. The Investor has substantial experience as a purchaser of
securities of companies similar to the Company and acknowledges that it is able to fend for itself,
can bear the economic risk of its investment and could afford a complete loss of such investment,
and has such knowledge and experience in financial or business matters that it is capable of
evaluating the merits and risks of the investment in the Shares. The Investor acknowledges that
(1) the Shares have not been registered under the Securities Act and cannot be sold unless they are
subsequently registered under the Securities Act and applicable state securities laws, or unless
exemptions from such registrations are available, and (2) the Shares are subject to the
restrictions on transfer set forth in Section 1.5 above and in the Charter. The Investor is
acquiring the Shares for investment purposes only, for its own account, and not as nominee or agent
for any other person or entity, and not with a view to, or for resale in connection with, any
distribution thereof within the meaning of the Securities Act in violation of applicable securities
laws. The Investor further acknowledges that representatives of the Company have advised it that no
state or federal agency or instrumentality has made any finding or determination as to the
investment in the Shares, nor has any state or federal agency or instrumentality made any
recommendation with respect to any purchase or investment in the Shares.

     (c) Investor as Accredited Investor. The Investor represents and warrants to the
Company that it is an “accredited investor” within the meaning of Rule 501(a) under the Securities
Act (an “Accredited Investor”).

     (d) Restricted Securities. The Investor understands that the Shares are characterized
as “restricted securities” under the federal securities laws inasmuch as they are being acquired
from the Company in a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under the Securities Act
only in certain limited circumstances.

     (e) Legends. It is understood that the certificates representing the Shares shall
initially bear substantially the following legend (in addition to any legend otherwise required
under applicable federal or state securities laws or by the Charter):

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE
SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR

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HYPOTHECATED UNLESS AND UNTIL REGISTERED IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO
SUCH REGISTRATION REQUIREMENTS.

     (f) No Conflicts. The execution, delivery and performance of this Agreement by the
Investor and the consummation by the Investor of the transactions contemplated hereby do not (i)
result in a violation of the Investor’s constituent documents or (ii) conflict with, or constitute
a default under (or an event which with notice or lapse of time or both would become a default), or
give to others any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Investor is a party, or result in a violation of
any law, rule, regulation, order, judgment or decree applicable to the Investor or by which any
property or asset of the Investor is bound or affected (except for such conflicts, defaults,
terminations, amendments, accelerations, cancellations and violations as would not materially
impair the Investor’s ability to perform its obligations under this Agreement).

     (g) Ownership Limitations. The Investor has received a copy of the Company’s Charter
and understands the restrictions on transfer and ownership of the Company’s capital stock included
therein related to the qualification by the Company as a real estate investment trust for federal
income tax purposes pursuant to Sections 856 through 860 of the Code.

     (h) No Further Consents Required. No consent, approval, authorization or order of, or
filing with, any court or governmental agency or body is required in connection with the Investor’s
execution, delivery and performance of this Agreement, the Investor’s consummation of the
transactions contemplated herein or the Investor’s purchase and ownership of the Series C Preferred
Stock, other than (i) such as have been obtained, or will have been obtained at the Closing and
(ii) such approvals, authorizations, consents or orders or filings, the absence of which could not
reasonably be expected to have a material adverse effect, individually or in the aggregate, on the
assets, business, operations, earnings, properties or condition (financial or otherwise) of the
Investor.

Section 2.2. Representations and Warranties of the Company.

     The Company represents and warrants to and agrees with the Investor as of the date hereof and
as of the Closing as follows:

     (a) Registration. Assuming the continuing accuracy of the Investor’s representations
set forth in Section 2.1 hereof and compliance by the Investor with the
transfer restrictions set forth in the legends on the certificates evidencing the Shares, it
is not necessary in connection with the offer, sale and delivery of the Shares to the Investor and
to each Subsequent Purchaser who purchases the Shares pursuant to an exemption from registration
under the Securities Act to register the Shares under the Securities Act or to comply with any
prospectus delivery requirement under the Securities Act.

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     (b) No Integration of Offerings or General Solicitation. The Company has not,
directly or indirectly, solicited any offer to buy or offered to sell, and will not, directly or
indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States
citizen or resident, any security which is or would be integrated with the sale of the Shares in a
manner that would require the Shares to be registered under the Securities Act. None of the
Company, its affiliates (as such term is defined in Rule 501(b) under the Securities Act (each, an
“Affiliate”)), or any person acting on its or any of their behalf (other than the Investor, as to
whom the Company makes no representation or warranty) has engaged or will engage, in connection
with the offering of the Shares, in any form of general solicitation or general advertising within
the meaning of Rule 502(c) under the Securities Act with respect to the Shares.

     (c) Eligibility for Resale. The Shares are eligible for resale pursuant to Rule 144A
under the Securities Act and shall not be of the same class as securities listed on a national
securities exchange registered under Section 6 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act,” which term, as used in this Agreement, includes the rules and regulations of
the Commission promulgated thereunder) or quoted in a United States automated interdealer quotation
system or securities of an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of the Investment
Company Act of 1940 (the “Investment Company Act,” which term, as used in this Agreement, includes
the rules and regulations of the Commission promulgated thereunder).

     (d) SEC Filings. The Annual Report of the Company on Form 10-K for the year ended
December 31, 2006 filed by the Company with the Commission (including the portions of the Company’s
proxy statement incorporated by reference therein) as supplemented by each Quarterly Report of the
Company on Form 10-Q and each Current Report of the Company on Form 8-K filed by the Company with
the Commission since January 1, 2007 (collectively, the “SEC Filings”) at the time they were filed
with the Commission complied in all material respects with the requirements of the Exchange Act in
effect at the time of the filing and did not then, and do not now, include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

     (e) Agreements. The execution, delivery and performance of this Agreement and the
Investor Rights Agreement (the “Agreements”) have been duly authorized by the Company and the
Agreements have been duly executed and delivered by, and are valid and binding agreements of, the
Company, enforceable in accordance with their terms, subject, as to enforcement, to (i) applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and
remedies generally, (ii)
general principles of equity (regardless of whether enforcement is sought in a proceeding in
equity or law), and (iii) the discretion of the court before which any proceeding therefore may be
brought (collectively, the “Enforceability Limitations”).

     (f) Authorization of the Shares. The Shares to be purchased by the Investor from the
Company have been duly authorized for issuance and sale pursuant to this

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Agreement and, when issued
and delivered by the Company and paid for by the Investor pursuant to this Agreement, shall be
validly issued, fully paid and nonassessable. Issuance of the Shares does not require the consent
of (i) any holders of any of the Company’s outstanding shares of capital stock, (ii) any lenders
to, or noteholders of, the Company or any of its subsidiaries in which the Company, directly or
indirectly, owns or controls 50% or more of the outstanding equity (each a “Subsidiary” and
collectively the “Subsidiaries”) or (iii) any other person. None of the outstanding shares of the
Company’s capital stock are subject to any preemptive or similar rights.

     (g) Organization, Power and Authority of Company. The Company has been duly organized
and is validly existing as a corporation in good standing under the laws of the State of Maryland
with the power and authority to conduct all the activities conducted by it, to own or lease all the
assets owned or leased by it and otherwise to conduct its business as described in the SEC Filings.
The Company is duly licensed or qualified to do business and in good standing in each jurisdiction
in which the nature of the activities conducted by it or the character of the assets owned or
leased by it makes such licensing or qualification necessary except where the failure to be so
qualified, considering all such failures in the aggregate, will not have a Material Adverse Effect,
as defined below. “Material Adverse Effect” shall mean an event, change, or occurrence, which,
individually or together with any other event, change or occurrence, has or is reasonably likely to
have a material adverse impact on the business, properties, financial condition or results of
operations of the Company and its Subsidiaries, taken as a whole. Complete and correct copies of
the Charter of the Company, as amended through the date hereof, and the bylaws of the Company, as
amended through the date hereof (the “Bylaws”), are included or incorporated by reference in the
SEC Filings made prior to the date hereof.

     (h) Organization, Power and Authority and Capitalization of Subsidiaries. Each of the
Company’s Subsidiaries has been duly incorporated or organized and is validly existing as a
corporation, limited partnership or limited liability company, as applicable, in good standing
under the laws of its respective jurisdiction of incorporation or organization, except where the
failure to be so duly organized or formed, validly existing or in good standing would not have a
Material Adverse Effect. Each of the Company’s Subsidiaries has full power and authority to
conduct all the activities conducted by it, to own or lease all the assets owned or leased by it
and otherwise to conduct its business as currently conducted. Each of the Company’s Subsidiaries
is duly licensed or qualified to do business in good standing as a corporation, limited partnership
or limited liability company, as the case may be, in all jurisdictions in which the nature of the
activities conducted by it or the character of the assets owned or leased by it makes such
licensing or qualification necessary, except where the failure to be so qualified would not have a
Material Adverse Effect. Except as otherwise described in the SEC Filings, all of the issued and
outstanding capital stock of each of the Company’s
Subsidiaries that is a corporation has been duly authorized and is validly issued, fully paid
and non-assessable and owned by the Company or another wholly owned Subsidiary of the Company, and
there are no outstanding options, rights (preemptive or otherwise) or warrants to purchase or
subscribe for equity interests or other securities of any Subsidiary, except as set forth in the
organizational documents of such Subsidiary. None

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of the equity interests of any Subsidiary were
issued in violation of the preemptive or other similar rights of any securityholder of such
Subsidiary.

     (i) Capital Stock Matters. The outstanding securities of the Company, including the
outstanding shares of common stock, $.01 par value (the “Common Stock”), and the outstanding shares
of each class or series of preferred stock (the “Preferred Stock”) have been duly authorized and
are validly issued, fully paid and nonassessable by the Company and conform to the description
thereof in the SEC Filings. None of the outstanding shares of the Company’s capital stock have
been issued in violation of any preemptive rights of any current or past holder of the Company’s
capital stock. Except as set forth in this Agreement or in the SEC Filings, the Company does not
have outstanding any option to purchase, or any rights or warrants to subscribe for, or any
securities or obligations convertible into, or any contracts or commitments to issue or sell, any
of its securities or any such warrants, convertible securities or obligations, except for shares
Common Stock issuable pursuant to awards granted or to be granted under the Company’s stock option
and stock incentive plans.

     (j) Financial Statements. The financial statements and schedules included or
incorporated by reference in the SEC Filings fairly present the financial condition, results of
operations, changes in stockholders’ equity and cash flows for the periods therein specified and
are in conformity with generally accepted accounting principles (“GAAP”) consistently applied
throughout the periods involved (except as otherwise stated therein and except, in the case of
interim periods, for the notes thereto and normal year-end adjustment). The pro forma financial
statements of the Company included in the SEC Filings, if any, comply in all material respects with
the applicable requirements of Rule 11-02 of Regulation S-X of the Commission and the pro forma
adjustments have been properly applied to the historical amounts in the compilation of such
statements. No other financial statements (or schedules) of the Company or any predecessor of the
Company are required by the Securities Act to be included in the SEC Filings.

     (k) Sarbanes-Oxley Compliance. The Company has complied in all material respects and
is materially in compliance with the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated thereunder. As of their respective filing or submission dates, all certifications and
statements required by (i) the SEC’s Order dated June 27, 2002 pursuant to Section 21(a)(1) of the
Exchange Act (File No. 4-460), (ii) Rule 13a-14 or 15d-14 under the Exchange Act or (iii) 18 U.S.C.
§1350 (Section 906 of the Sarbanes-Oxley Act of 2002) with respect to any SEC Filing has been filed
or submitted (as applicable) and complied in all material respects with the requirements of the
Exchange Act or other applicable law.

     (l) Internal Control Over Financial Reporting and Disclosure Controls. The Company
maintains a system of internal accounting controls sufficient to provide
reasonable assurances that: (i) transactions are executed in accordance with management’s
general or specific authorization; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain accountability for
assets; (iii) access to assets and financial and corporate books and records is permitted only in
accordance with management’s general or specific

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authorization; and (iv) assets are recorded at
historical cost, and the recorded value of assets is reviewed for impairments as events or
circumstances indicate and adjustments to the recorded values are made as deemed necessary. The
Company has established and maintains internal control over financial reporting (as such term is
defined in Rule 13a-15 and 15d-15 under the Exchange Act); such internal control over financial
reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles, including providing reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
assets that could have a material effect on the financial statements. The Company’s independent
registered public accounting firm and the audit committee of the Board of Directors have been
advised of: (i) any significant deficiencies and material weaknesses in the design or operation of
internal controls which could adversely affect the Company’s ability to record, process, summarize,
and report financial data; and (ii) any fraud, whether or not material, that involves management or
other employees who have a role in the Company’s internal controls. Since the date of the most
recent evaluation of such disclosure controls and procedures, there have been (I) no material
weakness in the Company’s internal control over financial reporting (whether or not remediated) and
(II) no significant changes in internal controls or in other factors that could significantly and
negatively affect internal controls. The Company has established and maintains “disclosure
controls and procedures” (as such term is defined in Rule 13a-15 and 15d-15 promulgated under the
Exchange Act); such disclosure controls and procedures are designed to ensure that material
information relating to the Company and its Subsidiaries, is made known to the Company’s Chief
Executive Officer and Chief Financial Officer by others within those entities, and such disclosure
controls and procedures are effective to perform the functions for which they were established.

     (m) No Conflicts. The execution, delivery and the performance of this Agreement and
the Investor Rights Agreement, and the consummation of the transactions contemplated herein and
therein do not and will not, and the subsequent redemption or repurchase of the Shares will not,
constitute a breach or violation of, or a default under, or conflict with, or give any other party
a right to terminate any of its obligations under, or result in the acceleration of any obligation
under, or result in the creation or imposition of any lien, charge or encumbrance upon the lodging
properties (the “Properties”) or any of the other assets of the Company or any of its Subsidiaries
pursuant to the terms or provisions of, the Charter or Bylaws of the Company, the articles or
certificate of incorporation or bylaws or partnership agreement or operating agreement of any of
the Company’s Subsidiaries or any material contract, lease or other instrument to which the Company
or any of its Subsidiaries is a party or by which any of their property may be bound or any
judgment, ruling, decree, order, law, statute, rule or regulation of any court or other
governmental agency or body applicable to the business or properties of the Company or any of its
Subsidiaries.

     (n) No Material Adverse Effect. Subsequent to the respective dates as of which
information is given in the SEC Filings, (i) the Company and its Subsidiaries, taken as a whole,
have not incurred any liabilities or obligations, direct or contingent, or entered into any
transactions (other than, in each case, in the ordinary course of business

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consistent with past
practice), that are material to the Company and its Subsidiaries taken as a whole, (ii) except for
the Shares, the Company has not authorized any new classes of capital stock or issued any shares of
preferred stock or incurred any additional short-term debt or long-term debt, except in the
ordinary course of business, and (iii) there has not been any Material Adverse Effect.

     (o) Company Not an Investment Company. The Company is not, and after giving effect to
the transactions contemplated by this Agreement will not be, an “investment company” or an entity
“controlled” by an “investment company” as such terms are defined in the Investment Company Act.

     (p) No Material Actions or Proceedings. Except as set forth in the SEC Filings, there
is not pending or, to the knowledge of the Company, threatened any action, suit or proceeding
against or affecting the Company or any of its Subsidiaries or any of their respective directors,
partners or officers in their capacity as such, or any of the Properties before or by any Federal
or state court, commission, regulatory body, administrative agency or other governmental body,
domestic or foreign, wherein an unfavorable ruling, decision or finding would have a Material
Adverse Effect.

     (q) Filing and Enforceability of Contracts. There are no contracts or documents of a
character required to be described in, or filed with, the SEC Filings that have not been so
described or filed (the “Contracts”). All Contracts executed and delivered on or before the date
hereof to which the Company or any Subsidiary of the Company is a party have been duly authorized,
executed and delivered by the Company or such Subsidiary and, assuming due authorization, execution
and delivery thereof by the other parties thereto, constitute valid and binding agreements of the
other parties thereto, enforceable against such parties in accordance with the terms thereof,
subject to the Enforceability Limitations.

     (r) Compliance With Law; No Default. Each of the Company and its Subsidiaries has
complied in all material respects with all laws, regulations and orders applicable to it or their
respective businesses and properties; neither the Company nor any of its Subsidiaries is in default
in any material respect under any Contract, and no other party under any such Contract to which the
Company or any of its Subsidiaries is a party is, to the knowledge of the executive officers of the
Company, in default in any material respect thereunder; the Company is not in violation of its
Charter or Bylaws; except as disclosed in the SEC Filings, the Company and its Subsidiaries have
all governmental licenses, permits, consents, orders, approvals and other authorizations required
to carry on their business as contemplated in the SEC Filings, and none of them has received any
notice of proceedings relating to the revocation or material adverse modification of any such
governmental license, permit, consent, order, approval or other authorization.

     (s) No Further Consents Required. No consent, approval, authorization or order of, or
filing with, any court or governmental agency or body is required for the consummation of the
transactions contemplated by this Agreement in connection with the issuance or sale of the Shares
by the Company, except the filing of the Articles

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Supplementary with the Department of Assessments
and Taxation of the State of Maryland; and the Company has full power and authority to authorize,
issue and sell the Shares as contemplated by this Agreement and the Articles Supplementary, free of
any preemptive or similar rights.

     (t) Title to Properties. The Company, or its Subsidiaries, as applicable, has good
and marketable title to the Properties, and the Properties are not subject to any liens or
encumbrances except for (a) mortgage indebtedness as disclosed in the SEC Filings; (b)
non-delinquent property taxes, utility easements and other immaterial non-monetary liens or
encumbrances of record or (c) except as would not have a Material Adverse Effect. Except as is
disclosed in the SEC Filings or except as would not have a Material Adverse Effect, (i) each of the
Company and each of its Subsidiaries has valid and subsisting leases with its tenants, which are
enforceable as to payment (which enforceability is subject to the Enforceability Limitations) for
the properties described in the SEC Filings as leased by it, (ii) no tenant under any of the leases
pursuant to which the Company or any Subsidiary leases its properties has an option or right of
first refusal to purchase the premises demised under such lease, (iii) the use and occupancy of
each of the properties of the Company and its Subsidiaries complies in all material respects with
all applicable codes and zoning laws and regulations, (iv) the Company has no knowledge of any
pending or threatened condemnation or zoning change that will in any material respect affect the
size of, use of, improvements of, construction on, or access to any of the properties of the
Company or its Subsidiaries, and (v) the Company has no knowledge of any pending or threatened
proceeding or action that will in any manner affect the size of, use of, improvements on,
construction on, or access to any of the properties of the Company or its Subsidiaries.

     (u) Mortgages; Property Matters. Except as disclosed in the SEC Filings, the
mortgages and deeds of trust encumbering the properties are not convertible into equity nor will
the Company or any of its Subsidiaries hold a participating interest therein and such mortgages and
deeds of trust are not cross-defaulted or cross-collateralized to any property not owned or
controlled directly or indirectly by the Company or any of its Subsidiaries, or any other entity
that the Company owns or controls.

     (v) Employee Benefits; ERISA. With respect to each employee benefit plan (as such
term is defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”)) maintained by the Company or an “ERISA Affiliate” (as defined below), (a) such plan has
been administered and operated in all material respects in compliance with its terms and the
applicable requirements of ERISA and the Code and (b) no “prohibited transaction” (as defined in
Section 406 of ERISA or Section 4975 of the Code) which is not covered by an applicable exemption
or which would result in a Material Adverse Effect has occurred. As used herein, the term “ERISA
Affiliate” refers to any organization that is (i) a member of a “controlled group” of which
the Company is a member or (ii) under “common control” with the Company within the meaning of
Section 414(b) or (c) of the Code.

     (w) Related Party Transactions. Except as set forth in the SEC Filings, to the
knowledge of the Company, neither the Company nor any of its Subsidiaries has entered

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into any
transactions with any of the Company’s officers, directors or 5% or greater shareholders which
would be required to be disclosed in the SEC Filings pursuant to Item 404 of Regulation S-K, other
than transactions which are substantially similar in nature to the transactions disclosed in the
SEC Filings or the Company’s definitive proxy statement for its 2007 annual meeting of
stockholders.

     (x) No Unlawful Contributions. To the Company’s knowledge, neither the Company nor
any of its Subsidiaries nor any employee or agent of the Company or of any Subsidiary has made any
payment of funds of the Company or any Subsidiary or received or retained any funds in violation of
the Foreign Corrupt Practices Act, any federal or state campaign finance law or regulation, any
other anti-bribery law or any U.S. anti-money laundering law.

     (y) Compliance With Environmental Laws. The Company and each of its Subsidiaries (i)
is in compliance in all material respects with any and all applicable foreign, Federal, state and
local laws and regulations relating to the protection of human health and safety, or Hazardous
Materials (as defined below) (the “Environmental Laws”); (ii) has received all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct their respective
businesses; and (iii) is in compliance in all material respects with all terms and conditions of
any such permit, license or approval. In this Agreement, the term “Hazardous Material” shall
include, without limitation, any flammable materials or explosives, petroleum or petroleum-based
products, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic
substances, or related materials, asbestos or any material regulated by any Federal, state or local
environmental law, ordinance, rule, or regulation including, without limitation, Environmental
Laws, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended
(42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act, as amended (49
U.S.C. Section 1801, et seq.), the Resource Conservation and Recovery Act, as amended (42 U.S.C.
Section 9601, et seq.), and in the regulations adopted and promulgated pursuant to each of the
foregoing.

     (z) Property and Casualty Insurance. The Company and its Subsidiaries maintain
property and casualty insurance, including earthquake insurance, in favor of the Company and its
Subsidiaries with respect to each of the properties, in an amount and on such terms as is
reasonable for businesses of the type proposed to be conducted by the Company and its Subsidiaries.
Neither the Company nor any Subsidiary has received from any insurance company notice of any
material defects or deficiencies affecting the insurability of any of the properties.

     (aa) REIT Status. Commencing with the taxable year ending December 31, 2003, the
Company has been, and upon the sale of the Shares the Company will continue
to be, organized and operated in conformity with the requirements for qualification and
taxation as a real estate investment trust (a “REIT”) under the Internal Revenue Code 1986, as
amended (the “Code”), and its proposed method of operation will enable it to continue to meet the
requirements for taxation as a REIT under the Code.

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     (bb) No Brokers. There are no contracts, agreements or understandings between the
Company or any of its Subsidiaries and any person that would give rise to a valid claim against the
Company or the Investor for a brokerage commission, finder’s fee or other like payment in
connection with the offering, issuance and sale of the Shares, other than the fee payable to the
Investor pursuant to this Agreement.

     (cc) Independence of Accountants. The Company’s Audit Committee has received a
letter, dated [ ], 2007 from Ernst & Young LLP, as required annually by Independence Standards
Board Standard No. 1, “Independence Discussion with Audit Committees” and to the Company’s
knowledge, Ernst & Young is an independent registered public accounting firm, registered with the
Public Company Accounting Oversight Board.

     (dd) Changes in Corporate Structure. The Board of Directors of the Company has not
authorized the officers of the Company to conduct discussions in connection with any transaction
that would constitute or result in a Change in Control or Liquidation (in each case as defined in
the Articles Supplementary).

     (ee) Additional Financial Information. In connection with the Investor’s due
diligence review of the Company, any projections provided by the Company to the Investor with
respect to the Company’s future performance have been prepared by the Company in good faith based
upon reasonable assumptions.

     (ff) Organization of Merger Subsidiary. Ashford Sapphire Acquisition LLC (“Sapphire”)
is a limited liability company duly organized, validly existing and in good standing under the laws
of the State of Delaware and has the requisite power and authority to carry on its business as now
being conducted. Sapphire is a wholly owned subsidiary of the Company.

     (gg) Authority to Enter Into Merger Agreement. Sapphire had the requisite power and
authority to execute and deliver the merger agreement dated January 18, 2007 (the “Merger
Agreement”), by and among MS Resort Holdings LLC, MS Resort Acquisition LLC, MS Resort Purchaser
LLC, Sapphire and CNL Hotels & Resorts, Inc. (“CNL”) and to consummate the Sapphire Asset Sale (as
defined in the Merger Agreement). The execution, delivery and performance of the Merger Agreement
by Sapphire and the consummation by Sapphire of the Sapphire Asset Sale have been duly authorized
by all necessary action on the part of the board of managers of Sapphire. The Merger Agreement has
been duly executed and delivered by Sapphire and constitutes the legal, valid and binding
obligation of Sapphire enforceable against Sapphire in accordance with its terms.

     (hh) Merger Agreement Consents and Approvals; No Violations. Except as provided in
Section 6.3 of the Merger Agreement, neither the execution, delivery or performance of the Merger
Agreement by Sapphire nor the consummation by Sapphire of the Sapphire Asset Sale will (i) conflict
with or result in any breach of any provision of the certificate of formation and other
organizational documents of Sapphire, (ii) require

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any filing with, or permit, authorization,
consent or approval of, any Governmental Entity (as defined in the Merger Agreement) (except where
the failure to obtain such permits, authorizations, consents or approvals or to make such filings
has not had and would not reasonably be expected to have a Material Adverse Effect on Sapphire),
(iii) conflict with or result in a breach of, or constitute (with or without due notice or lapse of
time or both) a default (or give rise to any right of termination, amendment, cancellation or
acceleration) under, or result in a loss of benefit under, any of the terms, conditions or
provisions of any contract to which Sapphire or any of its Subsidiaries is a party or by which any
of them or any of their properties or assets may be bound, (iv) violate any law, order, writ,
injunction, judgment, decree, statute, rule or regulation applicable to Sapphire, any of its
Subsidiaries or any of their properties or assets or (v) require Sapphire or any of its
Subsidiaries to make any payment to any third person, except in the case of clauses (iii),
(iv) or (v) for breaches, defaults, terminations, amendments, cancellations,
accelerations, losses of benefits, violations or payments that have not had and would not
reasonably be expected to have a Material Adverse Effect on Sapphire.

Any certificate signed by an officer of the Company or on behalf of the Company and delivered to
the Investor or to counsel for the Investor in connection with this Agreement or the Investor
Rights Agreement shall be deemed to be a representation and warranty by the Company to the Investor
as to the matters set forth therein.

ARTICLE III. Additional Covenants Of The Company

     The Company further covenants and agrees with the Investor as follows:

Section 3.1. Future Reports to the Investor.

     For so long as the Shares are outstanding, the Company shall furnish to the Investor and to
Alston & Bird LLP, at the addresses set forth below unless filed through the EDGAR system of the
Commission or made available on the Company website, (i) concurrently with the mailing thereof,
copies of any Annual Report sent to shareholders of the Company, (ii) as soon as practicable after
the filing thereof, copies of each proxy statement, Annual Report on Form 10-K, Quarterly Report on
Form 10-Q, Current Report on Form 8-K or other report filed by the Company with the Commission, or
the New York Stock Exchange, or any other securities exchange or any automated interdealer
quotation system, and (iii) as soon as available, copies of any report or communication of the
Company mailed generally to holders of its capital stock or debt securities.

Section 3.2. No Integration.

     The Company agrees that it shall not make any offer or sale of securities if, as a result of
the doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale
would render unavailable for the purpose of (i) the sale of the Shares by the Company to the
Investor or (ii) any resale of the Shares by the Investor to Subsequent Purchasers in reliance upon
the exemption from the registration requirements of the

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Securities Act provided by Section 4(2)
thereof, including the provisions of Regulation D under the Securities Act, or by Rule 144A
thereunder or otherwise.

Section 3.3. Access.

     In connection with its confirmation of the matters set forth in Section 4.1 of this Agreement
prior to the Closing, the Company agrees that the Investor and counsel for the Investor shall have
the right to make reasonable inquiries into the business of the Company, and the Company also
agrees to provide answers to such inquiries (to the extent that such information is available or
can be acquired and made available without extraordinary effort or expense and to the extent the
provision thereof is not prohibited by applicable law).

Section 3.4. Investment Company Act.

     The Company agrees to take such steps as shall be necessary to ensure that the Company shall
not become an “investment company” or an entity “controlled” by an “investment company” within the
meaning of such terms under the Investment Company Act.

Section 3.5. Payment of Company Expenses.

     The Company agrees to pay all costs, fees and expenses incurred by it in connection with the
performance of its obligations under this Agreement and in connection with the transactions
contemplated by this Agreement, including, without limitation, (i) all expenses incident to the
issuance and delivery of the Shares (including all printing and engraving costs); (ii) all fees and
expenses of the registrar and transfer agent of the Shares; (iii) all necessary issue, transfer and
other stamp taxes in connection with the issuance and sale of the Shares to the Investor; and (iv)
all fees and expenses of the Company’s counsel, independent public or certified public accountants
and other advisors.

Section 3.6. Payment of Investor’s Expenses.

     (a) The Company agrees to pay or reimburse Investor on demand for, all reasonable and
verifiable third party, out-of pocket costs and expenses (including, without limitation, fees and
disbursements of counsel, due diligence, transportation, computer, duplication, messenger,
appraisal, audit, insurance and consultant costs and expenses), whether incurred before or after
the date hereof, upon consummation of the
transactions contemplated hereby; provided, the Company shall not be required to reimburse the
fees and expenses of counsel to the Investor in excess of $200,000.

     (b) The Company also agrees to pay all reasonable third party costs and expenses of the
Investor (including, without limitation, fees and disbursements of counsel) incurred in connection
with the enforcement of any of its rights and remedies hereunder;

Section 3.7. No Limits on Redemption or Repurchase of Shares.

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     The Company will not (i) amend the Charter or Bylaws of the Company in a manner that would
prohibit or restrict in any material manner the ability of the Company to redeem or repurchase the
Shares; (ii) amend any contract, lease or other instrument in a manner that would prohibit or
impose restrictions on the ability of the Company to repurchase or redeem the Shares which further
restrict such actions than did the contract, lease or instrument as in effect prior to such
amendment or (iii) enter into any contract, lease or other instrument that would prohibit or
restrict the ability of the Company to redeem or repurchase the Shares in a manner that is more
restrictive than any restrictions contained in the Company’s then current contracts.

Section 3.8. Maintenance of REIT Status.

     For so long as the Shares are outstanding, the Company will continue to operate in a manner so
as to qualify as a REIT under Sections 856 and 860 of the Code.

     The Investor may, in its sole discretion, but shall not be required to, waive in writing the
performance by the Company of any one or more of the foregoing covenants or extend the time for
their performance.

Section 3.9 Notice of Default.

     The Company shall promptly notify the Investor of any failure by CNL to satisfy any condition
precedent to the Company’s performance obligations under the Merger Agreement.

ARTICLE IV. Conditions To Closing

Section 4.1. Conditions to the Obligations of the Investor.

     The obligations of the Investor to purchase and pay for the Shares as provided in this
Agreement on the Closing Date shall be subject to the accuracy of the representations and
warranties on the part of the Company in all material respects as of the date of this Agreement and
as of the Closing Date, as though then made, and to the timely performance by the Company of its
covenants and other obligations under this
Agreement to be performed at or prior to such date, and to each of the following additional
conditions:

     (a) Merger Agreement Satisfactory. The Merger Agreement shall not have been altered,
amended, waived or otherwise changed or supplemented in a manner that could reasonably be expected
to be materially adverse to the Investor.

     (b) Acquisition Consummated. The Sapphire Asset Sale shall have been consummated, or
shall be consummated contemporaneously with the purchase of the Shares, in accordance with the
terms of the Merger Agreement (as altered, amended, waived or otherwise changed or supplemented in
compliance with Section 4.1(a)).

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     (c) Payment of Expenses. The Company shall have paid or reimbursed the Investor for
its expenses incurred in connection with the transactions contemplated hereby as provided in
Section 3.6.

     (d) No Insolvency. No petition of bankruptcy, insolvency or reorganization shall have
been filed by or against the Company or Ashford Hospitality Limited Partnership.

     (e) No Material Adverse Effect. No “Material Adverse Effect” (as defined in the
Merger Agreement) shall have occurred which would entitle the Company to terminate the Merger
Agreement.

     (e) Articles Supplementary. The Articles Supplementary shall have been duly filed and
become effective with the Maryland State Department of Assessments and Taxation.

     (f) Investor Rights Agreement. At the Closing, the Company and the Investor shall
execute and deliver to each other the Investor Rights Agreement in the form attached hereto as
Exhibit B (except for any changes proposed by the Company as are approved by the Investor
in its sole and absolute discretion) (the “Investor Rights Agreement”).

     (g) Company Certificate. On the Closing Date the Investor shall have received from
the Company a certificate, dated the date of its delivery, signed by two officers of the Company
holding the offices of (i) Chief Financial Officer and (ii) General Counsel, or superior offices,
in form and substance satisfactory to the Investor, to the effect that:

     (1) Each of the representations and warranties of the Company contained in this
Agreement was, when originally made, and is, at the time such certificate is delivered,
true and correct in all material respects; and

     (2) Each of the covenants required to be performed by the Company herein on or prior
to the delivery of such certificate has been duly, timely and fully performed in all
material respects, and each condition herein required to be
complied with by the Company on or prior to the date of such certificate has been
duly, timely and fully complied with, in all material respects.

     (h) Opinions of Counsel. On the Closing Date, the Investor shall have received (i)
the opinions of Andrews Kurth LLP, special counsel for the Company, dated the date of its delivery,
in substantially the form set forth in Exhibit C-1 hereof; (ii) the opinions of Hogan &
Hartson LLP, dated the date of its delivery, in substantially the form set forth in Exhibit
C-2 hereof; and (iii) the opinions of the Chief Legal Officer of the Company, dated the date of
its delivery, in substantially the form set forth in Exhibit C-3 hereof.

     (i) Other Documents. At the Closing, counsel to the Investor shall have been
furnished with such other documents as such counsel may reasonably require in order
to

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evidence the
accuracy and completeness of any of the representations and warranties, or the fulfillment of any
of the conditions, contained in this Agreement; and all proceedings taken by the Company in
connection with the issuance and sale of the Shares as contemplated in this Agreement shall be
satisfactory in form and substance to the Investor and to counsel to the Investor.

     All such opinions, certificates, letters and other documents will be in compliance with the
provisions hereof only if they are reasonably satisfactory in form and substance to the Investor
and its counsel.

     If any condition specified in this Section 4.1 shall not have been fulfilled when and as
required to be fulfilled, this Agreement may be terminated by the Investor by notice to the Company
at any time and any such termination shall be without liability of any party to any other party,
except that the indemnity and contribution agreements set forth in Section 8.8 and Article VII, the
provisions concerning payment of expenses and fees under Section 3.5, Section 3.6 and Article V,
the provisions relating to governing law in Section 9.3 and the provisions relating to waiver of
rights to jury trials in Section 9.6 shall remain in effect.

Section 4.2. Conditions to the Obligations of the Company.

     The obligations of the Company to sell the Shares as provided in this Agreement on the Closing
Date shall be subject to the accuracy of the representations and warranties on the part of the
Investor in all material respects as of the date of this Agreement and as of the Closing Date, as
though then made, and to the timely performance by the Investor of its covenants and other
obligations under this Agreement to be performed at or prior to such date, and to the condition
that there shall not be any injunction, judgment, order, decree, ruling or charge in effect
preventing consummation of any of the transactions contemplated by this Agreement.

     If any condition specified in this Section 4.2 shall not have been fulfilled when and as
required to be fulfilled, this Agreement may be terminated by the Company by notice to the Investor
at any time and any such termination shall be without liability of
any party to any other party, except that the indemnity and contribution agreements set forth
in Section 8.8 and Article VII, the provisions concerning payment of expenses and fees under
Section 3.5, Section 3.6 and Article V, the provisions relating to governing law in Section 9.3 and
the provisions relating to waiver of rights to jury trials in Section 9.6 shall remain in effect.

ARTICLE V. Reimbursement

     If (1) this Agreement is terminated by the Investor pursuant to Section 6.2(a) or 6.2(b), (2)
this Agreement is terminated by the Company pursuant to Section 6.3(b), or (3) the sale to the
Investor of the Shares is not consummated because of any refusal, inability or failure on the part
of the Company to perform any agreement herein or to comply with any provision of this Agreement,
the Company agrees to reimburse the Investor upon demand for all reasonable out-of-pocket expenses
that shall have been

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incurred by the Investor in connection with the proposed purchase of the
Shares to have been delivered at the Closing, including, but not limited to, fees and disbursements
of advisors, travel expenses, postage, facsimile and telephone charges up to a maximum amount of
$300,000.

ARTICLE VI. Termination of Agreement

Section 6.1. Mutual Termination.

     The Investor and the Company may terminate this Agreement by mutual written consent at any
time prior to the Closing.

Section 6.2. Investor’s Right to Terminate.

     The Investor may terminate this Agreement by giving written notice to the Company at any time
prior to the Closing in any of the following circumstances:

     (a) if the Closing shall not have occurred on or before July 1, 2007, by reason of the failure
of any condition precedent under Section 4.1 hereof (unless the failure results primarily from the
Investor itself breaching any representation, warranty or covenant contained in this Agreement);

     (b) if Sapphire shall have the right to terminate the Merger Agreement in accordance with the
terms thereof (whether or not such right is exercised by Sapphire) unless the waiver of such right
could not reasonably be expected to be materially adverse to the Investor.

     (c) if trading or quotation in any of the Company’s securities shall have been suspended or
limited by the Commission, or trading in securities generally on either the Nasdaq Global Select
Market or the New York Stock Exchange shall have been suspended or limited, or minimum or maximum
prices shall have been generally established on any of such stock exchanges by the Commission or
the National Association of Securities Dealers, Inc.;

     (d) if a general banking moratorium shall have been declared by any of federal, New York, or
North Carolina authorities;

     (e) if there shall have occurred any outbreak or escalation of national or international
hostilities or any crisis or calamity (including any terrorist attack in The City of New York
whatsoever, or any significant terrorist activity in the mainland United States that makes it
impractical for the Investor to perform in accordance with the terms of this Agreement, including,
without limitation, by reason of material disruption of national communication networks or national
payment settlement systems), or any change in the United States or international financial markets,
or any substantial change or development involving a prospective substantial change in the United
States’ or international, political, financial or economic conditions, as in the judgment of the
Investor is material and adverse and makes it impracticable to enforce contracts for the sale of
securities;

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Section 6.3. The Company’s Right to Terminate.

     The Company may terminate this Agreement by giving written notice to the Investor at any time
prior to the Closing:

     (a) if the Closing shall not have occurred on or before July 1, 2007, by reason of the failure
of any condition precedent under Section 4.2 hereof (unless the failure results primarily from the
Company itself breaching any representation, warranty or covenant contained in this Agreement); or

     (b) if the Merger Agreement has been terminated.

Section 6.4. Effect of Termination.

     Any termination pursuant to this Article VII shall be without liability on the part of (a) the
Company to the Investor, except that the Company shall be obligated to pay the expenses referred to
in Section 3.5 and Section 3.6 and to reimburse the expenses of the Investor pursuant to Article V
of this Agreement, or (b) the Investor to the Company, provided, that the indemnification and
contribution provisions of Section 8.8 and Article VII shall at all times be effective and shall
survive such termination. The governing law provision of Section 9.3 and the waiver of right to
jury trial provision of Section 9.6 shall also survive any termination of this Agreement.

ARTICLE VII. Indemnification

Section 7.1. Indemnification of the Investor.

     The Company will indemnify and hold harmless the Investor and each of its affiliates and each
of their respective officers, directors, employees, agents, advisors and representatives (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities and
reasonable expenses (including, without limitation, the reasonable fees, disbursements and other
charges of counsel) that may be incurred by or asserted or awarded against any Indemnified Party,
in each case arising out of or in connection with or by reason of (including, without limitation,
in connection with any investigation, litigation or proceeding or preparation of a defense in
connection therewith and regardless of whether any Indemnified Party is a party thereto) (a) any
aspect of the transactions contemplated by this Agreement, including the Sapphire Asset Sale, or
(b) the sale of the Shares, or any use made or proposed to be made with the proceeds thereof;
provided that the Company shall not be liable except to the extent such claim, damage, loss,
liability or expense is found in a final, non-appealable judgment by a court of competent
jurisdiction, or a binding determination of an arbitrator, to have resulted from such Indemnified
Party’s gross negligence or willful misconduct or willful breach of its obligations under this
Agreement. This indemnity will be in addition to any liability that the Company might otherwise
have.

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Section 7.2. Indemnification of the Company.

     No Indemnified Party shall have any liability (whether direct or indirect, in contract, tort
or otherwise) to the Company or any of its respective shareholders or creditors for or in
connection with the transactions contemplated by this Agreement, except to the extent such
liability is found in a final non-appealable judgment by a court of competent jurisdiction, or a
binding determination of an arbitrator, to have resulted from such Indemnified Party’s gross
negligence or willful misconduct or willful breach of its obligations under this Agreement.
Notwithstanding any other provision of this Agreement, no Indemnified Party shall be liable for (i)
any damages arising from the use by unauthorized persons of information or other materials obtained
through electronic telecommunications or other information transmission systems that are
intercepted by such unauthorized persons or (ii) any special, indirect, consequential or punitive
damages in connection with the transactions contemplated by this Agreement.

Section 7.3. Indemnification Procedures.

     Any party that proposes to assert the right to be indemnified under this Article VIII will,
promptly after receipt of notice of commencement of any action against such party in respect of
which a claim is to be made against an indemnifying party or parties under this Article VIII,
notify each such indemnifying party of the commencement of such action, enclosing a copy of all
papers served, but the omission so to notify such indemnifying party will not relieve it from any
liability that it may have to any indemnified party under the foregoing provisions of this Article
VII unless, and only to the extent that, such omission results in the forfeiture of substantive
rights or defenses by the indemnifying party. If any such action is brought against any
indemnified party and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by delivering written
notice to the indemnified party promptly after receiving notice of the commencement of the action
from the indemnified party, jointly with any other indemnifying party similarly notified, to assume
the defense of the action, with counsel satisfactory to the indemnified party, and after notice
from the indemnifying party to the indemnified party of its election to assume the defense, the
indemnifying party will not be liable to the indemnified party for any legal or other expenses
except as provided below and except for the reasonable costs of investigation subsequently incurred
by the indemnified party in connection with the defense. The indemnified party will have the right
to employ its own counsel in any such action, but the fees, expenses and other charges of such
counsel will be at the expense of such indemnified party unless (a) the employment of counsel by
the indemnified party has been authorized in writing by the indemnifying party, (b) the indemnified
party has reasonably concluded (based on advice of counsel) that there may be legal defenses
available to it or other indemnified parties that are different from or in addition to those
available to the indemnifying party, (c) a conflict or potential conflict exists (based on advice
of counsel to the indemnified party) between the indemnified party and the indemnifying party (in
which case the indemnifying party will not have the right to direct the defense of such action on
behalf of the indemnified party) or (d) the indemnifying party has not in fact employed counsel to
assume the defense of such action within a reasonable time after receiving notice of the
commencement of the action, in each of

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which cases the reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the indemnifying party or
parties shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees, disbursements and other charges of more than one
separate firm admitted to practice in such jurisdiction at any time for all such indemnified party
or parties. All such fees, disbursements and other charges will be reimbursed by the indemnifying
party promptly as they are incurred. An indemnifying party will not be liable for any settlement
of any action or claim effected without its written consent (which consent will not be unreasonably
withheld). No indemnifying party shall, without the prior written consent of each indemnified
party, settle or compromise or consent to the entry of any judgment in any pending or threatened
claim, action or proceeding relating to the matters contemplated by this Article VIII (whether or
not any indemnified party is a party thereto), unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability arising or that may
arise out of such claim, action or proceeding.

Section 7.4. Survival of Indemnification.

     The indemnity agreements contained in this Article VIII and the representations and warranties
of the Company contained in this Agreement shall remain operative and in full force and effect
regardless of (a) any investigation made by the Investor or on its behalf, (b) acceptance of any of
the Shares and payment therefore or (c) any termination of this Agreement.

ARTICLE VIII. Appointment of Wachovia Bank, National Association, as Initial Dividend Rate Calculation Agent

     The initial Dividend Rate Calculation Agent under the Articles Supplementary for the Company
is appointed as follows:

Section 8.1. Appointment of Calculation Agent.

     Upon the terms and subject to the conditions set forth in this Article VIII, effective from
and after the Closing, the Company hereby appoints Wachovia Bank, National Association as its
Dividend Rate Calculation Agent under the Articles Supplementary (in such capacity, the
“Calculation Agent”), and Wachovia Bank, National Association hereby accepts such appointment.

Section 8.2. Duties of Calculation Agent.

     In acting under this Article IV, the Calculation Agent shall be obligated to perform only such
duties as are set forth specifically herein and in the Articles Supplementary as duties of the
Dividend Rate Calculation Agent. In acting under this Agreement, the Calculation Agent (in its capacity as such) assumes no obligation towards, or
any relationship of agency or trust for or with, the holders of the Shares.

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Section 8.3. Expenses.

     The Company shall reimburse the Calculation Agent for all reasonable expenses, disbursements
and advances incurred or made by the Calculation Agent in connection with the services rendered by
it as Calculation Agent under this Agreement (including reasonable legal fees and expenses) upon
receiving an accounting therefore from the Calculation Agent.

Section 8.4. Rights and Liabilities of Calculation Agent.

     The Calculation Agent shall incur no liability for, or in respect of, any action taken,
omitted to be taken or suffered by it in reliance upon any certificate, affidavit, instruction,
notice, request, direction, order, statement or other paper, document or communication reasonably
believed by it to be genuine and correct. Any order, certificate, affidavit, instruction, notice,
request, direction, statement or other communication from the Company made or given by it and sent,
delivered or directed to the Calculation Agent under, pursuant to or as permitted by any provision
of this Agreement shall be sufficient for purposes of this Agreement if such communication is in
writing and signed by any officer of the Company. The Calculation Agent may consult with counsel
satisfactory to it and the opinion of such counsel shall constitute full and complete authorization
and protection of the Calculation Agent with respect to any action taken, omitted to be taken or
suffered by it hereunder in good faith and in accordance with and in reliance upon the opinion of
such counsel.

Section 8.5. Right of Calculation Agent to Own Shares.

     The Calculation Agent may act as Calculation Agent and it and its officers, employees and
affiliates may become owners of, or acquire any interest in, the Shares, with the same rights as if
the Calculation Agent were not the Calculation Agent, and may engage in, or have an interest in,
any financial or other transaction with the Company or any of its affiliates as if the Calculation
Agent were not the Calculation Agent hereunder.

Section 8.6. Termination, Resignation or Removal of Calculation Agent.

     Wachovia Bank, National Association may at any time terminate its agreement to act as
Calculation Agent by giving no less than 90 days written notice to the Company (which notice shall
specify the date or event upon which such termination is to become effective) unless the Company
consents in writing to a shorter time. The Company may terminate its appointment of Wachovia Bank,
National Association as Calculation Agent at any time by giving written notice to Wachovia Bank,
National Association and specifying the date on which the termination shall become effective;
provided, however, that no termination by the Calculation Agent or by the Company shall become
effective prior to the date of the appointment of a successor Calculation Agent by the Company as
provided in Section 8.7 hereof and the acceptance of such appointment by such successor Calculation
Agent. If an instrument of acceptance by a successor Calculation Agent shall not have been
delivered to the resigning or terminated Calculation Agent within 30 days after the giving of such
notice of resignation and the Company shall not have informed

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the Calculation Agent that it does
not intend to appoint a successor Calculation Agent, the resigning Calculation Agent may petition
any court of competent jurisdiction for the appointment of a successor Calculation Agent. Upon
termination by either party pursuant to the provisions of this Section 8.6, the Calculation Agent
with respect to which this Agreement has been terminated shall be entitled to the reimbursement of
all reasonable expenses, disbursements and advances incurred or made by it after October 10, 2008
in connection with the services rendered by it hereunder, as provided by Section 8.3 hereof.

Section 8.7. Appointment of Successor Calculation Agent.

     Any successor Calculation Agent appointed by the Company or by a court following termination
of this Agreement pursuant to Section 8.6 hereof shall be an institution of similar size and
sophistication as Wachovia Bank, National Association, and shall execute and deliver to the
Calculation Agent and to the Company an instrument accepting such appointment, and thereupon such
successor Calculation Agent shall, without any further act or instrument, become vested with all
the rights, immunities, duties and obligations of the Calculation Agent, with like effect as if
originally named as Calculation Agent hereunder, and the Calculation Agent shall thereupon be
obligated to transfer and deliver, and such successor Calculation Agent shall be entitled to
receive and accept copies of any available records maintained by the Calculation Agent in
connection with the performance of its obligations hereunder.

Section 8.8. Indemnification.

     The Company shall indemnify and hold harmless the Calculation Agent and its officers and
employees from and against all actions claims, damages, liabilities, losses and expenses (including
reasonable legal fees and expenses) relating to or arising out of actions or omissions in its
capacity as Calculation Agent, except actions, claims, damages, liabilities, losses and expenses
caused by the gross negligence or willful misconduct of the Calculation Agent or its officers or
employees. The indemnification provided by this Section 8.8 shall survive the redemption or
exchange of the Shares and the termination of this Agreement.

Section 8.9 Merger, Consolidation or Sale of Business by Calculation Agent.

     Any corporation into which the Calculation Agent may be merged, converted or consolidated, or
any corporation resulting from any merger, conversion or consolidation to which the Calculation
Agent may be a party, or any corporation to which the Calculation Agent may sell or otherwise transfer
all or substantially all of its corporate trust business shall, to the extent permitted by applicable law, become the Calculation Agent under
this Agreement without the execution of any document or any further act by the parties hereto.

Section 8.10. Consequential Damages.

     In no event shall the Calculation Agent be liable for special, indirect or consequential loss
or damage of any kind whatsoever (including but not limited to lost

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profits), even if the
Calculation Agent has been advised of the likelihood of such loss or damage and regardless of the
form of action.

ARTICLE IX. Miscellaneous

Section 9.1. Notices.

     All notices or communications hereunder shall be in writing and shall be mailed, delivered or
telecopied and confirmed (including confirmation by email if so indicated):

	 	(a)	 	if to the Company, to:

Ashford Hospitality Trust, Inc.

14185 Dallas Parkway, Suite 1100

Dallas, Texas 75245

Attention: David Brooks

Telecopy:  (972) 490-9605

Email:         dbrooks@ahtreit.com

	 	 	 	with a copy to:

Andrews Kurth LLP

1717 Main Street, Suite 3700

Dallas, Texas 75201

Attention: David Barbour

Telecopy:  (214) 659-4401

Email:         dbarbour@andrewskurth.com

	 	(b)	 	and if to the Investor:

Wachovia Investment Holdings, LLC

c/o Wachovia Securities, Inc.

One Wachovia Center

301 South College Street

Charlotte, North Carolina 28288

Attention: David M. Blackman

Telecopy:  (704) 383-6205

E-Mail:       david.blackman@wachovia.com

	 	 	 	with a copy to:

Alston & Bird LLP

The Atlantic Building

950 F Street, NW

Washington, DC 20004

Attention: David E. Brown, Jr.

Telecopy:  (202) 654-4945

E-Mail:       david.brown@alston.com

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Any party to this Agreement may change such address for notices by sending to the other parties to
this Agreement written notice of a new address for such purpose.

Section 9.2. Parties.

     This Agreement shall inure to the benefit of and be binding upon the Investor and the Company
and their respective successors. Nothing expressed or mentioned in this Agreement is intended, or
shall be construed, to give any person, firm or corporation, other than the parties hereto and
their respective successors, any legal or equitable right, remedy or claim under or in respect of
this Agreement or any provision herein contained. This Agreement and all conditions and provisions
hereof are intended to be for the sole and exclusive benefit of the parties hereto and respective
successors and for the benefit of no other person, firm or corporation. No purchaser of Shares
shall be deemed to be a successor by reason merely of such purchase.

Section 9.3. Governing Law.

     THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
YORK INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULE 327(B), WITHOUT GIVING EFFECT TO ANY PROVISIONS
THEREOF RELATING TO CONFLICT OF LAW.

Section 9.4. Counterparts.

     This Agreement may be executed in one or more counterparts, signature pages may be detached
from such separately executed counterparts and reattached to other counterparts and, in each such
case, the executed counterparts hereof shall constitute a single instrument. Signature pages may
be delivered by telecopy.

Section 9.5. Enforceability.

     In case any provision of this Agreement shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

Section 9.6. Waiver of Rights to Trial by Jury.

     THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT WHICH ANY PARTY
MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY PROCEEDING, LITIGATION OR COUNTERCLAIM BASED ON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY
PARTY. IF THE SUBJECT MATTER OF ANY LAWSUIT IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS
PROHIBITED, NO PARTY TO THIS AGREEMENT SHALL PRESENT AS A NON-

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COMPULSORY COUNTERCLAIM IN ANY SUCH
LAWSUIT ANY CLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
FURTHERMORE, NO PARTY TO THIS AGREEMENT SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY
TRIAL CANNOT BE WAIVED.

Section 9.7. Amendments and Modifications.

     This Agreement may not be amended or otherwise modified or any provision hereof waived except
by an instrument in writing signed by the Investor and the Company.

Section 9.8. Entire Agreement. This Agreement, together with its Exhibits, and the Commitment
Letter, dated January 18, 2007, by and between the Company and the Wachovia Corporation, together
with its exhibits and attachments, constitute the entire agreement of the parties with respect to
matters set forth in this Agreement and the Commitment Letter and supersede any prior understanding
or agreement, oral or written, with respect to such matters.

[SIGNATURE PAGE FOLLOWS]

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     If the foregoing correctly sets forth the understanding between the Company and the Investor,
please so indicate in the space provided below for that purpose, whereupon this letter shall
constitute a binding agreement between the Company and the Investor.

	 	 	 	 	 
	 	ASHFORD HOSPITALITY TRUST, INC.

 	 
	 	By:  	/s/ David A. Brooks	 
	 	 	Name:  	David A. Brooks	 
	 	 	Title:  	Chief Legal Officer	 
	 

	 	 	 	 	 
	ACCEPTED as of the date first written above:

WACHOVIA INVESTMENT HOLDINGS, LLC

 	 	 
	By:  	/s/ Rex E. Rudy	 	 
	 	Authorized Signatory 	 	 
	 	Name:  	Rex E. Rudy	 
	 	Title:  	Managing Director	 
	 
	SOLELY FOR PURPOSES OF ARTICLE VIII,

ACCEPTED as of the date first written above:

WACHOVIA BANK, NATIONAL ASSOCIATION

 	 	 
	By:  	/s/ Rex E. Rudy	 	 
	 	Authorized Signatory 	 	 
	 	Name:  	Rex E. Rudy	 
	 	Title:  	Managing Director	 

-27-

 

	 	 	 	 	 

EXHIBIT A

Articles Supplementary

 

 

EXHIBIT B

Investor Rights Agreement

 

 

EXHIBIT C-1

Form of Opinion of Andrews Kurth LLP

 

 

EXHIBIT C-2

Form of Opinion of Hogan & Hartson LLP

 

 

EXHIBIT C-3

Form of Opinion of Ashford Hospitality Trust, Inc.’s Chief Legal Officerexv10w33w5w1

 

Exhibit 10.33.5.1

INVESTOR RIGHTS AGREEMENT

     THIS INVESTOR RIGHTS AGREEMENT (this “Agreement”) dated as of April 11, 2007, by and between
Ashford Hospitality Trust, Inc., a Maryland corporation (the “Company”), and Wachovia Investment
Holdings, LLC, a Delaware limited liability company (the “Investor”).

     WHEREAS, this Agreement is made pursuant to the Stock Purchase Agreement, dated as of even
date herewith, by and between the Company and the Investor (the “Purchase Agreement”), which
provides for the sale by the Company to the Investor of 8,000,000 shares (the “Shares”) of the
Company’s Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Series C
Preferred Stock”);

     WHEREAS, in order to induce the Investor to enter into the Purchase Agreement and in
satisfaction of a condition to the Investor’s obligations thereunder, the Company has agreed to
provide to the Investor and its transferees and assigns the rights set forth in this Agreement; and

     WHEREAS, the execution and delivery of this Agreement is a condition to the closing under the
Purchase Agreement.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereto agree as follows:

Section 1. Definitions

     As used in this Agreement, the following capitalized defined terms shall have the following
meanings. Any capitalized term used but not defined herein shall have the meaning ascribed thereto
in the Purchase Agreement.

     “144A Demand” shall have the meaning set forth in Section 2 hereof.

     “144A Demand Deadline” shall have the meaning set forth in Section 2 hereof.

     “144A Offering” shall have the meaning set forth in Section 2 hereof.

     “Agreement” shall have the meaning set forth in the preamble to this Agreement.

     “Articles Supplementary” shall mean the Articles Supplementary setting forth the rights,
privileges and preferences of the Shares.

     “Commission” shall mean the Securities and Exchange Commission or any successor thereto.

     “Company” shall have the meaning set forth in the preamble to this Agreement.

     “Company Registration Statement” shall mean either a Shelf Registration Statement of the
Company pursuant to the provisions of Sections 3 hereof or a Registration Statement of the Company
pursuant to Sections 4 hereof.

 

 

     “Default Payments” shall have the meaning set forth in Section 7 hereof.

     “Demand Registration” shall have the meaning set forth in Section 4(a) hereof.

     “Depositary” shall mean The Depository Trust Company, or any other depositary appointed by the
Company, including any agent thereof; provided, however, that any such depositary must at all times
have an address in the Borough of Manhattan, the City of New York.

     “EDGAR” shall have the meaning set forth in the last paragraph of this Section 1.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time,
and the rules and regulations of the Commission promulgated thereunder.

     “Expenses” shall mean any and all expenses incident to performance of or compliance by the
Company with this Agreement, including without limitation: (i) all Commission or NASD registration
and filing fees, (ii) all fees and expenses incurred in connection with compliance with state or
other securities or blue sky laws and compliance with the rules of the NASD (including reasonable
fees and disbursements of counsel for any underwriters or Holders in connection with qualification
of any of the Shares under state or other securities or blue sky laws and any filing with and
review by the NASD), (iii) all expenses of the Company in preparing, printing and distributing any
Offering Memorandum, any Company Registration Statement, any Prospectus, any amendments or
supplements thereto, any underwriting agreements, securities sales agreements, and certificates
representing the Shares and other documents relating to the performance of and compliance with this
Agreement, (iv) all fees and expenses incurred in connection with the listing of any of the Shares
on any securities exchange or exchanges or on any quotation system, (v) the fees and disbursements
of counsel for the Company and the fees and expenses of independent public accountants for the
Company or for any other Person, business or assets whose financial statements are included in any
Offering Memorandum, Company Registration Statement or Prospectus, including the expenses of any
special audits or “comfort letters” required by or incident to such performance and compliance, and
(vi) the reasonable fees and disbursements, if any, of special counsel representing the Holders of
Registrable Shares; provided that, except as otherwise provided herein, fees and disbursements of
counsel to the underwriters and the Holders and underwriting discounts and commissions and transfer
taxes, if any, relating to the sale or disposition of Registrable Shares by a Holder shall be
excluded from the definition of Expenses.

     “Holders” shall mean the Investor, for so long as it owns any Registrable Shares, and each of
its respective successors, assigns and direct and indirect transferees who become holders of the
Registrable Shares.

     “Investor” shall have the meaning set forth in the preamble of this Agreement.

     “Majority Holders” shall mean the Holders of a majority of the aggregate liquidation
preference of the Registrable Shares outstanding.

     “Material Adverse Effect” shall mean an event, change, or occurrence, which, individually or
together with any other event, change or occurrence, has or is reasonably likely to

-2-

 

have a material adverse impact on the business, properties, financial condition or results of
operations of the Company or its Subsidiaries, taken as a whole.

     “NASD” shall mean the National Association of Securities Dealers, Inc.

     “Offering Commencement Date” shall have the meaning set forth in Section 2(ii) hereof.

     “Offering Memorandum” shall mean the sort customary in Rule 144A offerings (including all
disclosures required by Rule 144A and Regulation S) for use by the Investor in connection with the
resale of the Shares to Subsequent Purchasers.

     “Person” shall mean an individual, partnership, joint venture, limited liability company,
corporation, trust or unincorporated organization, or a government or agency or political
subdivision thereof.

     “PORTAL Market” shall mean the Private Offering, Resales and Trading through Automated
Linkages Market of the NASD.

     “Prospectus” shall mean the prospectus included in a Company Registration Statement, including
any preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus
supplement, including a prospectus supplement with respect to the terms of the offering of any
portion of the Registrable Shares covered by a Company Registration Statement, and by all other
amendments and supplements to a prospectus, including post-effective amendments, and in each case
including all material incorporated or deemed to be incorporated by reference therein.

     “Purchase Agreement” shall have the meaning set forth in the preamble to this Agreement.

     “Registrable Shares” shall mean the Shares; provided, however, that any Shares shall cease to
be Registrable Shares when (i) a Company Registration Statement with respect to such Shares shall
have been declared effective under the Securities Act and such Shares shall have been disposed of
pursuant to such Company Registration Statement, (ii) such Shares shall have been sold pursuant to
Rule 144 (or any similar provision then in force, but not Rule 144A) under the Securities Act or
(iii) such Shares shall have ceased to be outstanding.

     “Registration Default” shall have the meaning set forth in Section 7 hereof.

     “Registration Statement” shall have the meaning set forth in Section 4(a) hereof.

     “Securities Act” shall mean the Securities Act of 1933, as amended from time to time, and the
rules and regulations of the Commission promulgated thereunder.

     “Series C Preferred Stock” shall have the meaning set forth in the preamble to this Agreement.

     “Shares” shall have the meaning set forth in the preamble to this Agreement.

-3-

 

     “Shelf Registration” shall have the meaning set forth in Section 3(a) hereof.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company
pursuant to the provisions of Section 3 of this Agreement which registers resales of all of the
Registrable Shares on an appropriate form under Rule 415 under the Securities Act, or any similar
rule that may be adopted by the Commission, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated or deemed to be incorporated by
reference therein.

     “Subsequent Purchaser” shall mean a purchaser of a portion or all of the Shares in connection
with any 144A Offering, Shelf Registration or Demand Registration as contemplated by this
Agreement.

     “Underwriter” shall have the meaning set forth in Section 5(a)(iii) hereof.

          For purposes of this Agreement, (i) all references in this Agreement to any Company
Registration Statement, Prospectus or any amendment or supplement to any of the foregoing shall be
deemed to include the copy filed with the Commission pursuant to its Electronic Data Gathering,
Analysis and Retrieval system (“EDGAR”); (ii) all references in this Agreement to financial
statements and schedules and other information which is “contained,” “included” or “stated” in any
Offering Memorandum, Company Registration Statement or Prospectus (or other references of like
import) shall be deemed to mean and include all such financial statements and schedules and other
information which is incorporated or deemed to be incorporated by reference in such Offering
Memorandum, Company Registration Statement or Prospectus, as the case may be; (iii) all references
in this Agreement to amendments or supplements to any Offering Memorandum, Company Registration
Statement or Prospectus shall be deemed to mean and include the filing of any document under the
Exchange Act which is incorporated or deemed to be incorporated by reference in such Offering
Memorandum, Company Registration Statement or Prospectus, as the case may be; (iv) all references
in this Agreement to specific rules under the Securities Act, and all references to any sections or
subsections thereof or terms defined therein, shall in each case include any successor provisions
thereto; and (v) all references in this Agreement to days (but not to business days) shall mean
calendar days.

Section 2. 144A Offering

          On or before 5:00 p.m. New York time on the date which is 18 months after the date of this
Agreement (the “144A Demand Deadline”), if the Company has not delivered to the Investor an
irrevocable notice of redemption of all of the Shares, then the Investor may demand (a “144A
Demand”) that the Company render the Shares eligible for resale pursuant to Rule 144A under the
Securities Act and Regulation S under the Securities Act by fulfilling the obligations set forth in
this Section 2, provided, however, that each and every such obligation shall terminate upon the
first to occur of (x) the complete redemption of the Series C Preferred Stock by the Company and
(y) such time as each Holder is eligible to sell its Shares under Securities Act Rule 144(k);
provided further, however, that such termination shall not relieve the

-4-

 

Company from any liability for Default Payments which the Company was obligated to pay to the
Investor pursuant to Section 7 of this Agreement prior to such termination.

          (i) Creating a Marketable Security.

          (A) Additional Issuer Information. In order to render the Shares eligible for
resale pursuant to Rule 144A under the Securities Act, so long as the Company is
subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act,
the Company shall file, on a timely basis, with the Commission all reports and
documents required to be filed under Section 13 or 15(d)) of the Exchange Act, and
in the event the Company is no longer required to file such reports pursuant to
Section 13 or 15(d) of the Exchange Act, the Company agrees, for the benefit of
Holders of the Shares, to furnish at its expense upon request, while any of the
Shares remain outstanding, to any Holder or prospective purchasers of Shares the
information specified in Rule 144A(d)(4) and Rule 144(c)(2) and any other
information necessary to permit sales of the Shares pursuant to Rule 144A and take
any other action that is reasonable in the circumstances to the extent required to
enable Holders to sell the Shares pursuant to Rule 144 and Rule 144A.

          (B) Offering Memorandum. If requested in writing by the Investor, the Company
shall prepare an Offering Memorandum, which shall be in final form no later than the
earlier of (x) the 144A Demand Deadline and (y) 30 days after the making of a 144A
Demand. The Offering Memorandum shall disclose real estate investment trust related
transfer limitations and other restrictions on transfer contained in the Company’s
charter and shall include other disclosures and provisions customary to offerings
made in reliance upon Rule 144A. The Company agrees to furnish to the Investor,
without charge, as many copies of the Offering Memorandum and any amendments and
supplements thereto as the Investor shall reasonably request from time to time for
use in connection with resales of the Shares.

          (C) Investor’s Review of Final Offering Memorandum and Proposed Amendments and
Supplements. Prior to the delivery of the final version of any Offering Memorandum
or any proposed amendment or supplement thereto by the Company to the Investor, the
Company shall furnish to the Investor for review a copy of the proposed Offering
Memorandum or proposed amendment or supplement thereto, as the case may be, prior to
printing such Offering Memorandum or such amendment or supplement thereto, and the
Company shall not print the Offering Memorandum or issue any amendment or supplement
containing any provision to which the Investor or its counsel reasonably objects
(with reasonable prior notice to the Company).

          (D) Amendments and Supplements to the Offering Memorandum. If, prior to the
completion of the resale of the Shares by the Investor to Subsequent Purchasers, any
event shall occur or condition exist as a result of which it is necessary to amend
or supplement the Offering Memorandum

-5-

 

in order to make the statements therein, in light of the circumstances when
such document is delivered to a prospective Subsequent Purchaser, not misleading, or
if in the reasonable opinion of counsel for the Investor it is otherwise necessary
to amend or supplement the Offering Memorandum to comply with applicable law, the
Company agrees, promptly upon the Investor’s written request, to prepare and furnish
at its own expense to the Investor such number of copies of amendments or
supplements to the Offering Memorandum as are reasonably requested by the Investor
containing such information as is necessary so that the statements therein as so
amended or supplemented will not, in the light of the circumstances when such
document is delivered to a prospective Subsequent Purchaser, be misleading or so
that such document, as amended or supplemented, will comply with applicable law.
The Company hereby expressly acknowledges that the indemnification and contribution
provisions of Section 10 of this Agreement are specifically applicable and relate to
each Offering Memorandum amendment or supplement referred to in this Section
2(i)(D).

          (E) Depositary Eligibility. No later than 15 days prior to the delivery of the
Offering Memorandum, the Company shall cause the Shares to be eligible for clearance
and settlement through the facilities of the Depositary, including, if necessary and
to the extent appropriate for a security intended to be traded under Rule 144A and,
to the extent allowed by applicable law, removal of any legends.

          (F) PORTAL Market Inclusion. The Company will use its best efforts to permit
the Shares to be designated PORTAL securities in accordance with the rules and
regulations adopted by the National Association of Securities Dealers, Inc. (“NASD”)
relating to trading in the PORTAL Market.

          (G) Blue Sky Compliance. The Company (i) shall cooperate with the Investor and
counsel for the Investor to qualify or register the Shares for sale under (or obtain
exemptions from the application of) the Blue Sky or state or other securities laws
of those jurisdictions (both domestic and foreign) as may be designated by the
Investor or its counsel, (ii) shall comply with such laws and (iii) shall continue
such qualifications, registrations and exemptions in effect so long as required for
the Investor’s placement of the Shares to the Subsequent Purchasers; provided,
however, that the Company shall not be required to qualify as a foreign corporation
or to take any action that would subject it to general service of process in any
such jurisdiction where it is not presently qualified or where it would be subject
to taxation as a foreign corporation, and provided further, however, that the
Company may require that offers and sales in one or more jurisdictions must be made
through brokers licensed in that jurisdiction. The Company will advise the Investor
promptly of its knowledge of the suspension of the qualification or registration of
(or any such exemption relating to) the Shares for offering, sale or trading in any
jurisdiction or any initiation or threat of any proceeding for any such purpose, and
in the event of the issuance of any order suspending such qualification,
registration or exemption, the Company

-6-

 

shall use its reasonable best efforts to obtain the withdrawal thereof at the
earliest possible moment.

          (ii) Offering Commencement Date/Customary Rule 144A Deliveries. The Company shall
deliver, and shall cause its attorneys, accountants and officers, as applicable, to deliver
the following documents to the Investor at the offices of Alston & Bird LLP, Washington,
D.C., no later than 5:00 p.m. New York time on such date (which date shall be on or after
the earlier of (x) 144A Demand Deadline and (y) 30 days after the making of a 144A Demand)
as may be designated by the Investor as the “Offering Commencement Date.”

          (A) Officers’ Certificate. On the Offering Commencement Date, the Investor
shall receive from the Company a certificate, dated the date of its delivery, signed
by each of the Chief Executive Officer and the Chief Financial Officer of the
Company, in form and substance satisfactory to the Investor, to the effect that,
except as disclosed in such certificate:

          (1) Any requests made by the staff of the Commission in connection with
any review of the Company’s filings with the Commission shall have been
responded to and complied with to the Investor’s satisfaction at the time
such certificate is delivered;

          (2) Each signer of such certificate has carefully examined the Offering
Memorandum (which term includes any documents incorporated by reference
therein) and (A) as of the date of such certificate, the Offering Memorandum
does not contain an untrue statement of a material fact and does not omit to
state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they
were made, not misleading and (B) no event has occurred as a result of which
it would be necessary to amend or supplement the Offering Memorandum in
order to make the statements therein not untrue or misleading in any
material respect;

          (3) Except as described in such certificate, each of the
representations and warranties of the Company contained in the Purchase
Agreement was, when originally made, and is, at the time such certificate is
delivered, true and correct in all material respects, except for such
inaccuracies that, individually or in the aggregate, will not have a
Material Adverse Effect; and

          (4) Each of the covenants required to be performed by the Company
herein on or prior to the delivery of such certificate has been duly, timely
and fully performed in all material respects.

          (B) Opinion of Counsel. On the Offering Commencement Date, the Investor shall
receive (1) an opinion of Andrews Kurth LLP, special

-7-

 

counsel for the Company (or other counsel for the Company acceptable to the
Investor) dated as of the date of its delivery, as to the matters set forth in
Exhibit A-1 hereto and (2) an opinion of Hogan & Hartson LLP,
Maryland counsel for the Company (or other counsel for the Company acceptable to the
Investor), dated the date of its delivery, as to the matters set forth in
Exhibit A-2 hereto.

          (C) Accountant’s Comfort Letter. On the Offering Commencement Date, the
Investor shall receive from Ernst & Young LLP (or successor auditors of the Company
who shall be independent public accountants within the meaning of Regulation S-X
under the Securities Act and the Exchange Act) a letter dated as of such date
addressed to the Investor, containing statements and information of the type
ordinarily included in an accountants’ “comfort letter” to initial purchasers in
offerings made in reliance upon Rule 144A, delivered according to Statement of
Auditing Standards No. 72 (or any successor bulletin), with respect to the audited,
unaudited and pro forma financial statements and certain financial information
contained, or incorporated by reference, in the Offering Memorandum. In the event
that the letter referred to above describes, for the period subsequent to the date
of the most recent consolidated balance sheet and income statement of the Company
included or incorporated by reference in the Offering Memorandum, any changes in the
capital stock, increases in long-term debt, or decreases in the consolidated assets
or stockholders’ equity of the Company, as compared with amounts shown on the
then-most recent consolidated balance sheet of the Company included or incorporated
by reference in the Offering Memorandum, or any decreases, as compared with the
corresponding period in the preceding year, in consolidated net revenues or net
income per share of the Company, except in each case for such changes, increases or
decreases that the Offering Memorandum discloses have occurred or may occur, (i)
such letter shall be accompanied by the written explanation of the Company as to the
significance thereof, unless the Investor deems such explanation unnecessary, and
(ii) if such changes or decreases, in the good faith judgment of the Investor, make
it impractical or inadvisable to proceed with the re-offering of the Shares as
contemplated by this Agreement, at the Investor’s request the Company shall prepare
a supplement to the Offering Memorandum (which may take the form of a filing with
the Commission that is incorporated by reference into the Offering Memorandum)
disclosing and explaining such financial condition.

          (D) Other Documents. On the Offering Commencement Date, counsel to the
Investor shall be furnished with such other documents as such counsel may reasonably
require in order to evidence the accuracy and completeness of any of the
representations and warranties contained in this Agreement.

All such opinions, certificates, letters and other documents will be in compliance with the
provisions hereof only if they are reasonably satisfactory in form and substance to the
Investor and its counsel. The Investor may, in its sole discretion, but shall not be

-8-

 

required to, waive in writing the performance by the Company of any one or more of the
foregoing covenants or extend the time for their performance.

          (iii) Offer, Sale and Resale Procedures. The Investor and the Company hereby establish
and agree to observe the following procedures in connection with the offer and sale of the
Shares in reliance on Rule 144A (the “144A Offering”):

          (A) Offers and Sales Only to Qualified Institutional Buyers, Institutional
Accredited Investors or Non U.S. Persons. Offers and sales of the Shares will be
made only by the Investor or affiliates thereof qualified or registered to do so in
the jurisdictions in which such offers or sales are made. Each such offer or sale
shall be made only:

          (1) to persons whom the offeror or seller, or any person acting on
behalf of them, reasonably believes to be qualified institutional buyers (as
defined in Rule 144A under the Securities Act);

          (2) to a limited number of other institutional purchasers that the
offeror or seller reasonably believes to be accredited investors (as such
term is defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act); or

          (3) pursuant to offers and sales that occur outside of the United
States within the meaning of Regulation S under the Securities Act.

          (B) No General Solicitation. The Shares will be offered by approaching
prospective Subsequent Purchasers on an individual basis. No general solicitation
or general advertising (within the meaning of Rule 502(c) under the Securities Act)
will be used in the United States in connection with the offering of the Shares.

          (C) Purchases by Non-Bank Fiduciaries. In the case of a non-bank Subsequent
Purchaser of Shares acting as a fiduciary for one or more third parties, in
connection with an offer and sale to such purchaser pursuant to this Section 2(a),
each third party shall, in the reasonable judgment of the Investor, be a qualified
institutional buyer.

          (D) Rule 144A Reliance and Restrictions on Transfer. The Offering Memorandum
shall make prospective offerees aware of the reliance by the offeror and/or seller
on the exemptions provided by Rule 144A and Regulation S and shall provide that
Subsequent Purchasers that acquire any Shares shall be deemed to have agreed that
such Shares may only be resold or otherwise transferred if such Shares are
registered for sale under the Securities Act, or pursuant to an available exemption
from the registration requirements of the Securities Act (including Rule 144A and
Regulation S), or in a transaction not otherwise subject to the Securities Act.

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Section 3. Shelf Registration

          (a) On or after 5:00 p.m. New York time on the date which is nine months after the date of
this Agreement, if the Company has not delivered to the Investor an irrevocable
notice of redemption of all of the Shares, the Investor or the Majority Holders may demand
that the Company file with the Commission a Shelf Registration Statement, including a Prospectus
for use by the Investor and other holders of the Shares, as selling stockholders of their Shares (a
“Shelf Registration”), and the Company shall thereupon use its reasonable best efforts to have the
Shelf Registration Statement and a companion Form 8-A registration statement for the Series C
Preferred Stock declared effective no later than 60 days after the making of such Shelf
Registration and thereafter to keep the Shelf Registration Statement continuously effective until
each Holder is eligible to sell its Shares under Securities Act Rule 144(k); provided, however,
that each and every such obligation shall terminate upon the complete redemption of the Series C
Preferred Stock by the Company; provided further, however, that such termination shall not relieve
the Company from any liability for Default Payments which the Company was obligated to pay to the
Investor pursuant to Section 7 of this Agreement prior to such termination.

          (b) In the event the Investor requests a Shelf Registration pursuant to this Section 3, the
Company shall, if requested by the Investor, use its reasonable best efforts to list the Series C
Preferred Stock on the New York Stock Exchange commencing upon the effective date of the related
Form 8-A.

Section 4. Demand Registration

          (a) On or after 5:00 p.m. New York time on the date which is seven months after the
date of this Agreement, if the Company has not delivered to the Investor an irrevocable notice of
redemption of all of the Shares, the Investor or the Majority Holders may demand that the Company
file with the Commission a Form S-11 or Form S-3 (a “Registration Statement”), including a
Prospectus for use by the Investor and other holders of the Shares, as selling stockholders of
their Shares (a “Demand Registration”), and the Company shall thereupon use its reasonable best
efforts to have the Registrations Statement and a companion Form 8-A registration statement for the
Series C Preferred Stock declared effective no later than 60 days after the making of such Demand
Registration; provided, however, that each and every such obligation shall terminate upon the
complete redemption of the Series C Preferred Stock by the Company; provided further, however, that
such termination shall not relieve the Company from any liability for Default Payments which the
Company was obligated to pay to the Investor pursuant to Section 7 of this Agreement prior to such
termination.

          (b) In the event the Investor requests a Demand Registration pursuant to this
Section 4, the Company shall, if requested by the Investor, use its reasonable best efforts to list
the Series C Preferred Stock on the New York Stock Exchange commencing upon the effective date of
the related Form 8-A.

Section 5. Registration Procedures

          (a) In connection with the obligations of the Company with respect to any Company Registration
Statement, the Company agrees as follows:

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          (i) The Company shall prepare and file with the Commission a Company Registration
Statement within the time periods specified in Section 3 or Section 4, as the case may be,
and on the appropriate form under the Securities Act, which form
(i) shall be selected by the Company, (ii) shall be available for the sale of the
Registrable Shares by the selling Holders thereof and (iii) shall comply as to form in all
material respects with the requirements of the applicable form and include or incorporate by
reference all financial statements required by the Commission to be filed therewith, and use
its reasonable best efforts to cause such Company Registration Statement to become effective
and remain effective in accordance with Section 3 or Section 4 hereof, as the case may be.

          (ii) The Company shall prepare and file with the Commission such amendments and
post-effective amendments to such Company Registration Statement as may be necessary under
applicable law to keep such Company Registration Statement effective for the applicable
period; cause each Prospectus to be supplemented by any required prospectus supplement, and
as so supplemented to be filed pursuant to Rule 424 under the Securities Act; and comply
with the provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Shares covered by the Company Registration Statement during the
applicable period in accordance with the intended method or methods of distribution by the
selling Holders thereof.

          (iii) The Company shall (1) notify each Holder of Registrable Shares, at least ten
business days prior to filing, that a Company Registration Statement with respect to the
Registrable Shares is being filed and advising such Holders that the distribution of
Registrable Shares will be made in accordance with the method elected by the Majority
Holders; (2) furnish to each Holder of Registrable Shares, to counsel for the Investor, to
counsel for the Holders, if any, and to each underwriter of an underwritten offering of
Registrable Shares (each, an “Underwriter”), if any, without charge, as many copies of each
Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto
and such other documents as such Holder, counsel or underwriter may reasonably request,
including financial statements and schedules and, if such Holder, counsel or underwriter so
requests, all exhibits (including those incorporated by reference) in order to facilitate
the public sale or other disposition of the Registrable Shares; and (3) subject to the
penultimate paragraph of this Section 5, the Company hereby consents to the use of the
Prospectus, including each preliminary Prospectus, or any amendment or supplement thereto by
each of the Holders and underwriters of Registrable Shares in connection with the offering
and sale of the Registrable Shares covered by any Prospectus or any amendment or supplement
thereto.

          (iv) The Company shall use its reasonable best efforts to register or qualify the
Registrable Shares under all applicable state securities or “blue sky” laws of such
jurisdictions as any Holder of Registrable Shares covered by a Company Registration
Statement or, to the extent required by law, an Offering Memorandum and each underwriter of
an underwritten offering of Registrable Shares shall reasonably request, to cooperate with
the Holders and the underwriters of any Registrable Shares in connection with any filings
required to be made with the NASD, to keep each such registration or qualification effective
during the period any Company Registration

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Statement is required to be effective and do any
and all other acts and things which may be reasonably necessary or advisable to enable such
Holder to consummate the disposition in each such jurisdiction of such Registrable Shares
owned by such Holder; provided, however, that the Company shall not be required to (i) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not otherwise be
required to qualify but for this Section 5(a)(iv) or (ii) take any action which would
subject it to general service of process or taxation in any such jurisdiction if it is not
then so subject.

          (v) The Company shall notify each Holder of Registrable Shares and counsel for such
Holders promptly and, if requested by such Holder or counsel, confirm such advice in writing
promptly (1) when a Company Registration Statement has become effective and when any
post-effective amendments and supplements thereto become effective, (2) of any request by
the Commission or any state securities authority for post-effective amendments or
supplements to a Company Registration Statement or Prospectus or for additional information
after a Company Registration Statement has become effective, (3) of the issuance by the
Commission or any state securities authority of any stop order suspending the effectiveness
of a Company Registration Statement or the initiation of any proceedings for that purpose,
(4) of the receipt by the Company of any notification with respect to the suspension of the
qualification of the Registrable Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, (5) of the suspension of use of the
Prospectus as a result of the happening of any event or the discovery of any facts or the
taking of any action during the period a Company Registration Statement is effective or
which makes any statement made in such Company Registration Statement or the related
Prospectus untrue in any material respect or which constitutes an omission to state a
material fact in such Company Registration Statement or Prospectus and (6) of any
determination by the Company that a post-effective amendment to a Company Registration
Statement would be appropriate.

          (vi) The Company shall furnish counsel for the Holders of Registrable Shares and
counsel for any underwriters of Registrable Shares, copies of any request by the Commission
or any state securities authority for amendments or supplements to a Company Registration
Statement or Prospectus or for additional information.

          (vii) The Company shall use its reasonable best efforts to obtain the withdrawal of any
order suspending the effectiveness of a Company Registration Statement as soon as
practicable and provide immediate notice to each Holder of the withdrawal of any such order.

          (viii) The Company shall furnish to each Holder of Registrable Shares, without charge,
at least one conformed copy of each Company Registration Statement and any post-effective
amendments thereto (without documents incorporated or deemed to be incorporated therein by
reference or exhibits thereto, unless requested), if such documents are not available via
EDGAR.

          (ix) The Company shall cooperate with the selling Holders of Registrable Shares to
facilitate the timely preparation and delivery of certificates

-12-

 

representing Registrable Shares to be sold and not bearing any restrictive legends; and cause such Registrable Shares
to be in such denominations and in a form eligible for deposit with the Depositary and
registered in such names as the selling Holders or the
underwriters, if any, may reasonably request in writing at least two business days
prior to the closing of any sale of Registrable Shares.

          (x) Upon the occurrence of any event or the discovery of any facts as contemplated by
Section 5(a)(v)(5) hereof, the Company shall use its reasonable best efforts to prepare a
supplement or post-effective amendment to a Company Registration Statement or the related
Prospectus or any document incorporated or deemed to be incorporated therein by reference or
file any other required document so that, as thereafter delivered to the purchasers of the
Registrable Shares, such Prospectus will not contain at the time of such delivery any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not
misleading, and to notify each Holder to suspend use of the Prospectus as promptly as
practicable after the occurrence of such an event, and each Holder hereby agrees to suspend
use of the Prospectus until the Company has amended or supplemented the Prospectus to
correct such misstatement or omission or, alternatively, to notify the Holders that no such
amendment or supplement is necessary. At such time as such public disclosure is otherwise
made or the Company determines that such disclosure is not necessary, in each case to
correct any misstatement of a material fact or to include any omitted material fact, the
Company agrees promptly to notify each Holder of such determination and to furnish each
Holder such number of copies of the Prospectus, as amended or supplemented, as such Holder
may reasonably request.

          (xi) The Company shall obtain CUSIP numbers for all Registrable Shares not later than
the effective date of a Company Registration Statement, and provide the transfer agent with
printed or word-processed certificates for the Registrable Shares in a form eligible for
deposit with the Depositary.

          (xii) The Majority Holders of such Registrable Shares included in an offering shall
have the right to direct the Company to effect not more than one underwritten offering in
connection with a Shelf Registration and not more than one underwritten offering in
connection with a Demand Registration. The Majority Holders shall have the right to select
the managing underwriter(s) for such underwritten offering(s). In connection with such
underwritten offering(s), the Company shall enter into agreements (including underwriting
agreements or similar agreements) and take all other customary and appropriate actions
(including those reasonably requested by the holders of a majority in liquidation preference
of the Registrable Shares being sold) in order to expedite or facilitate the disposition of
such Registrable Shares and in such connection, in a manner that is reasonable and
customary:

          (A) make representations and warranties to the underwriters in such form,
substance and scope as are customarily made by issuers to underwriters in similar
underwritten offerings as may be reasonably requested by the managing
underwriter(s);

-13-

 

          (B) obtain opinions of counsel to the Company (which counsel and opinions (in
form, scope and substance) shall be reasonably satisfactory to the
managing underwriter(s)) addressed to the underwriters, covering the matters
customarily covered in opinions requested in sales of preferred stock or
underwritten offerings of preferred stock and such other matters as may be
reasonably requested by the managing underwriter(s);

          (C) obtain “comfort letters” and updates thereof with respect to such Company
Registration Statement and the Prospectus included therein, all amendments and
supplements thereto and all documents incorporated or deemed to be incorporated by
reference therein from the Company’s independent certified public accountants and
from the independent certified public accountants for any other Person or any
business or assets whose financial statements are included or incorporated by
reference in the Company Registration Statement, each addressed to the underwriters,
such letters to be in customary form and covering matters of the type customarily
covered in “comfort letters” to underwriters in connection with similar underwritten
offerings and such letters to be delivered at the time of the pricing of such
underwritten registration with an update to such letter to be delivered at the time
of closing of such underwritten registration;

          (D) if an underwriting agreement or other similar agreement is entered into,
cause the same to set forth indemnification and contributions provisions and
procedures substantially equivalent to the indemnification and contributions
provisions and procedures set forth in Section 10 hereof with respect to the
underwriters and all other parties to be indemnified pursuant to Section 10 hereof
or such other indemnification and contributions as shall be satisfactory to the
Company and the managing underwriter(s); and

          (E) deliver such other documents and certificates as may be reasonably
requested and as are customarily delivered in similar underwritten offerings of debt
securities.

The documents referred to in Sections 5(a)(xii)(B) and 5(a)(xii)(E) shall be delivered at
the closing under any underwriting or similar agreement as and to the extent required
thereunder. In the case of any such underwritten offering, the Company shall provide
written notice to the Holders of all Registrable Shares of such underwritten offering at
least 30 days prior to the filing of a prospectus supplement for such underwritten offering.
Such notice shall (x) offer each such Holder the right to participate in such underwritten
offering, (y) specify a date, which shall be no earlier than 15 days following the date of
such notice, by which such Holder must inform the Company of its intent to participate in
such underwritten offering and (z) include the instructions such Holder must follow in order
to participate in such underwritten offering.

          (xiii) The Company shall make available for inspection by representatives of the
Holders of the Registrable Shares and any underwriters participating in any disposition
pursuant to a Company Registration Statement and any counsel or accountant retained by such
Holders or underwriters, all financial statements

-14-

 

and other records, documents and
properties of the Company reasonably requested by any such Persons, and cause the respective
officers, directors, employees, and any other
agents of the Company to supply all information reasonably requested by any such
Persons in connection with a Company Registration Statement.

          (xiv) The Company shall use its reasonable best efforts to comply with all applicable
rules and regulations of the Commission and, with respect to each Company Registration
Statement and each post-effective amendment, if any, thereto and each filing by the Company
of an Annual Report on Form 10-K, make available to its security holders, as soon as
reasonably practicable, an earnings statement covering at least twelve months which shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder.

          (xv) The Company shall cooperate and assist in any filings required to be made with the
NASD and in the performance of any due diligence investigation by any underwriter and its
counsel.

          (xvi) A reasonable time prior to the filing of any Company Registration Statement, any
Prospectus, any amendment to a Company Registration Statement or amendment or supplement to
a Prospectus or any document which is to be incorporated by reference into a Company
Registration Statement or a Prospectus after the initial filing of a Company Registration
Statement, the Company shall provide copies of such document to the Investor on behalf of
such Holders; and make representatives of the Company as shall be reasonably requested by
the Holders of Registrable Shares, or the Investor on behalf of such Holders, available for
discussion of such document.

          (b) The Company may require each Holder of Registrable Shares to promptly (and in any event
within 20 days of a written request) furnish to the Company such information regarding such Holder
and the proposed distribution by such Holder of such Registrable Shares as the Company may from
time to time reasonably request in writing, and may require such Holder to agree in writing to be
bound by all provisions of this Agreement applicable to such Holder, in each case, as a condition
to including such Holder’s Shares in the Company Registration Statement.

          (c) Each Holder agrees that, upon receipt of any notice from the Company of the happening of
any event or the discovery of any facts of the kind described in Section 5(a)(v)(2) through
5(a)(v)(6) hereof, such Holder will forthwith discontinue disposition of Registrable Shares
pursuant to a Company Registration Statement until receipt by such Holder of (i) the copies of the
supplemented or amended Prospectus contemplated by Section 5(a)(x) hereof or (ii) written notice
from the Company that the Company Registration Statement, respectively, are once again effective or
that no supplement or amendment is required. If so directed by the Company, such Holder will
deliver to the Company (at the Company’s expense) all copies in its possession, other than
permanent file copies then in its possession, of the Prospectus covering such Registrable Shares
current at the time of receipt of such notice. Nothing in this paragraph shall prevent the accrual
of Default Payments on any Shares.

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               If the Company shall give any such notice to suspend the disposition of Registrable Shares
pursuant to the immediately preceding paragraph, the Company shall use its reasonable best efforts
to file and have declared effective (if an amendment) as soon as
practicable thereafter an amendment or supplement to the Company Registration Statement or the
Prospectus included therein and shall extend the period during which the Company Registration
Statement shall be maintained effective pursuant to this Agreement by the number of days during the
period from and including the date of the giving of such notice to and including the earlier of the
date when the Holders shall have received copies of the supplemented or amended Prospectus
necessary to resume such dispositions and the effective date of written notice from the Company to
the Holders that the Company Registration Statement is once again effective or that no supplement
or amendment is required.

Section 6. Expenses

          The Company shall pay all Expenses in connection with any 144A Offering, any Shelf
Registration or any Demand Registration.

Section 7. Liquidated Damages

          If the Shares have not been redeemed and (i) the Offering Memorandum has not been delivered or
a Company Registration Statement or Registration Statement has not been filed or declared effective
with the Commission in accordance with a demand made pursuant to Section 2, 3 or 4 of this
Agreement, or (ii) after a Company Registration Statement has been declared effective, it ceases to
be effective or otherwise becomes unusable by the Holders of Shares who are selling stockholders
thereunder for any reason, and the aggregate number of calendar days in any consecutive twelve (12)
month period for which such Company Registration Statement shall not be usable exceeds 30 days in
the aggregate (each such event referred to in clauses (i) and (ii), a “Registration Default”), a
cash payment which the Company acknowledges shall constitute liquidated damages for any such
condition (“Default Payment”) shall be payable quarterly in arrears on each Dividend Payment Date
(as defined in the Articles Supplementary for the Shares) to all record Holders of Registrable
Shares (in addition to any regular distribution accruing or payable on such Shares) and will accrue
beginning on (and including) the date on which any such Registration Default shall occur and ending
on (but excluding) the date on which all Registration Defaults have been cured. Default Payments
shall accrue at a rate of $0.25 (equivalent to 1.00% of the $25.00 liquidation preference) per
annum per Share. The Company shall cause the Default Payments to be paid on the regular Dividend
Payment Date, whether or not the Company shall have declared a dividend or other distribution on
the Shares for such quarter.

          The parties to this Agreement agree that the record Holders of Registrable Shares may suffer
damages in the event that a Registration Default has occurred and is continuing, and that it would
not be possible to ascertain the amount of such damages. The parties to this Agreement further
agree that the Default Payments shall be liquidated damages provided for in this Section 7 of this
Agreement and constitute a reasonable estimate of the damages that may be incurred by the holders
by reason of a Registration Default.

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Section 8. Specific Enforcement

          Without limiting the remedies available to the Investor and the Holders, the Company
acknowledges that any failure by the Company to comply with its obligations under
Sections 2 through 7 hereof may result in material irreparable injury to the Investor or the
Holders for which there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure, the Investor and
any Holder may obtain such relief as may be required to specifically enforce the Company’s
obligations under Sections 2 through 7 hereof.

Section 9. Underwritten Registrations

          If any of the Registrable Shares covered by any Shelf Registration or any Demand Registration
are to be sold in an underwritten offering, the investment banker or investment bankers and manager
or managers that will manage the offering will be selected by the Majority Holders of such
Registrable Shares included in such offering, subject to the consent of the Company, which consent
shall not be unreasonably withheld.

          No Holder of Registrable Shares may participate in any underwritten registration hereunder
unless such Holder (a) agrees to sell such Holder’s Registrable Shares on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements
and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting arrangements.

Section 10. Indemnification and Contribution

          (a) The Company agrees to indemnify and hold harmless the Investor and each Holder,
underwriter who participates in an offering of Registrable Shares (each, an “Underwriter”), and
each Person, if any, who controls the Investor or any Holder or Underwriter within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act, as follows:

          (i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material fact
contained in any Company Registration Statement pursuant to which Shares were offered or
Registrable Shares were registered under the Securities Act, including all documents
incorporated therein by reference, or any omission or alleged omission therefrom of a
material fact required to be stated therein or necessary to make the statements therein not
misleading, or arising out of any untrue statement or alleged untrue statement of a material
fact contained in any Offering Memorandum or Prospectus or any omission or alleged omission
therefrom of a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading;

          (ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any

-17-

 

litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or
of any claim whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission; provided that any such settlement is effected with the
written consent of the Company; and

          (iii) against any and all expense whatsoever, as incurred (including the fees and
disbursements of one counsel chosen by any indemnified party), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under subparagraph
(i) or (ii) above;

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by the Investor or any Holder or Underwriter with respect to the Investor or such
Holder or Underwriter expressly for use in the Offering Memorandum (or any amendment or supplement
thereto), Company Registration Statement (or any amendment thereto) or Prospectus (or any amendment
or supplement thereto).

          (b) The Investor and each Holder and Underwriter, severally but not jointly, agrees to
indemnify and hold harmless the Company, each director and officer of the Company, the Investor and
each other selling Holder and Underwriter, and each Person, if any, who controls the Company or the
Investor or any other selling Holder or Underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act against any and all loss, liability, claim, damage
and expense described in the indemnity contained in Section 10(a) hereof, as incurred, with respect
to untrue statements or omissions, or alleged untrue statements or omissions, made in any Offering
Memorandum (or any amendment or supplement thereto) or any Company Registration Statement pursuant
to which Registrable Shares were registered under the Securities Act (or any amendment thereto) or
any Prospectus included therein (or any amendment or supplement thereto) in reliance upon and in
conformity with written information with respect to the Investor or any Holder or Underwriter
furnished to the Company by the Investor or any Holder or Underwriter, respectively, expressly for
use in such Offering Memorandum (or any amendment or supplement thereto), Company Registration
Statement (or any amendment thereto) or Prospectus (or any amendment or supplement thereto);
provided, however, that none of the Investor or such Holder or Underwriter shall be liable for any
claims hereunder in excess of the amount of net proceeds received by the Investor or any Holder or
Underwriter from the sale of Registrable Shares pursuant to such Offering Memorandum or Company
Registration Statement.

          (c) Any party that proposes to assert the right to be indemnified under this Section 10 will,
promptly after receipt of notice of commencement of any action against such party in respect of
which a claim is to be made against an indemnifying party or parties under this Section 10, notify
each such indemnifying party of the commencement of such action, enclosing a copy of all papers
served, but the omission so to notify such indemnifying party will not relieve it from any
liability that it may have to any indemnified party under the foregoing

-18-

 

provisions of this Section
10 unless, and only to the extent that, such omission results in the forfeiture of substantive
rights or defenses by the indemnifying party. If any such action is brought against any
indemnified party and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by delivering written
notice to the indemnified party promptly after receiving notice of the
commencement of the action from the indemnified party, jointly with any other indemnifying
party similarly notified, to assume the defense of the action, with counsel satisfactory to the
indemnified party, and after notice from the indemnifying party to the indemnified party of its
election to assume the defense, the indemnifying party will not be liable to the indemnified party
for any legal or other expenses except as provided below and except for the reasonable costs of
investigation subsequently incurred by the indemnified party in connection with the defense. The
indemnified party will have the right to employ its own counsel in any such action, but the fees,
expenses and other charges of such counsel will be at the expense of such indemnified party unless
(i) the employment of counsel by the indemnified party has been authorized in writing by the
indemnifying party, (ii) the indemnified party has reasonably concluded (based on advice of
counsel) that there may be legal defenses available to it or other indemnified parties that are
different from or in addition to those available to the indemnifying party, (iii) a conflict or
potential conflict exists (based on advice of counsel to the indemnified party) between the
indemnified party and the indemnifying party (in which case the indemnifying party will not have
the right to direct the defense of such action on behalf of the indemnified party) or (iv) the
indemnifying party has not in fact employed counsel to assume the defense of such action within a
reasonable time after receiving notice of the commencement of the action, in each of which cases
the reasonable fees, disbursements and other charges of counsel will be at the expense of the
indemnifying party or parties. It is understood that the indemnifying party or parties shall not,
in connection with any proceeding or related proceedings in the same jurisdiction, be liable for
the reasonable fees, disbursements and other charges of more than one separate firm admitted to
practice in such jurisdiction at any time for all such indemnified party or parties. All such
fees, disbursements and other charges will be reimbursed by the indemnifying party promptly as they
are incurred. An indemnifying party will not be liable for any settlement of any action or claim
effected without its written consent (which consent will not be unreasonably withheld). No
indemnifying party shall, without the prior written consent of each indemnified party, settle or
compromise or consent to the entry of any judgment in any pending or threatened claim, action or
proceeding relating to the matters contemplated by this Section 10 (whether or not any indemnified
party is a party thereto), unless such settlement, compromise or consent includes an unconditional
release of each indemnified party from all liability arising or that may arise out of such claim,
action or proceeding.

          (c) In order to provide for just and equitable contribution in circumstances in which the
indemnity agreement provided for in this Section 10 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims,
damages or expenses referred to therein, then each indemnifying party shall contribute to the
aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect the relative fault
of the indemnifying party or parties on the one hand and of the indemnified party or parties on the
other hand in connection with the statements or omissions that resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.
The relative fault of such indemnifying party or parties on the one hand and the indemnified party
or parties

-19-

 

on the other hand shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by such indemnifying party or parties or such
indemnified party or parties, and the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission.

          (d) The Company, the Investor, the Holders and the Underwriters agree that it would not be
just or equitable if contribution pursuant to this Section 10 were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in paragraph (d) above. The aggregate amount of losses, liabilities,
claims, damages and expenses incurred by an indemnified party and referred to above in this Section
10 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever
based upon any such untrue or alleged untrue statement or omission or alleged omission.

          (e) Notwithstanding the provisions of this Section 10, none of the Investor or any Holder or
Underwriter shall be required to contribute any amount in excess of the amount by which the total
price at which Registrable Shares sold by it were offered exceeds the amount of any damages that
the Investor or such Holder or Underwriter has otherwise been required to pay by reason of any such
untrue or alleged untrue statement or omission or alleged omission.

          (f) No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

          (g) For purposes of this Section 10, each Person, if any, who controls the Investor or any
Holder or Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act shall have the same rights to contribution as the Investor or any Holder or
Underwriter, as the case may be, and each director and officer of the Company who signed the
Registration Statement and each Person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Company. The respective obligations of the Investor, Holders and Underwriters
to contribute pursuant to this Section 10 are several in proportion to the liquidation preference
of Shares purchased by them and not joint.

          (h) The indemnity and contribution provisions contained in this Section 10 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Investor or any Holder, Underwriter, or any Person
controlling the Investor or any Holder or Underwriter, or by or on behalf of the Company, its
officers or directors or any Person controlling the Company, (iii) any sale of Shares in a 144A
Offering; and (iv) any sale of Registrable Shares pursuant to a Company Registration Statement.

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Section 11. Miscellaneous

          (a) No Inconsistent Agreements. The Company has not entered into nor will the Company on or
after the date of this Agreement enter into any agreement which is inconsistent with the rights
granted to the Holders of Registrable Shares in this Agreement or otherwise conflicts with the
provisions hereof, without the written consent of the Holders of at least a majority in aggregate
liquidation preference of the outstanding Registrable Shares.

          (b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the Company has obtained the written consent of
Holders of at least a majority in aggregate liquidation preference of the outstanding Registrable
Shares affected by such amendment, modification, supplement, waiver or departure.

          (c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, registered first-class mail, telecopier, or any courier
guaranteeing overnight delivery (i) if to a Holder (other than the Investor), at the most current
address set forth on the records of the transfer agent for the Shares, (ii) if to the Investor, at
the most current address given by the Investor to the Company by means of a notice given in
accordance with the provisions of this Section 11(c), which address initially is the address set
forth in the Purchase Agreement; and (iii) if to the Company, initially at the address set forth in
the Purchase Agreement and thereafter at such other address, notice of which is given in accordance
with the provisions of this Section 11(c). All such notices and communications shall be deemed to
have been duly given: at the time delivered by hand, if personally delivered; five business days
after being deposited in the mail, first class, postage prepaid, if mailed; when receipt is
acknowledged, if telecopied; and on the next business day if timely delivered to a courier
guaranteeing overnight delivery.

          (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon
the successors, assigns and transferees of each of the parties, including, without limitation and
without the need for an express assignment, subsequent Holders; provided that nothing herein shall
be deemed to permit any assignment, transfer or other disposition of Registrable Shares in
violation of the terms hereof or of the Purchase Agreement. If any transferee of any Holder shall
acquire Registrable Shares, in any manner, whether by operation of law or otherwise, such
Registrable Shares shall be held subject to all of the terms of this Agreement, and by taking and
holding such Registrable Shares, such Person shall be conclusively deemed to have agreed to be
bound by and to perform all of the terms and provisions of this Agreement, including the
restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and
such Person shall be entitled to receive the benefits hereof.

          (e) Third Party Beneficiary. Each Holder and Underwriter shall be a third party beneficiary
of the agreements made hereunder between the Company, on the one hand, and the Investor, on the
other hand, and shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of

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other Holders hereunder. Each Holder, by its acquisition of Shares, shall be deemed to have agreed to the
provisions of Section 10(b) hereof.

          (f) Time of the Essence. Time shall be of the essence in all matters under this Agreement.

          (g) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the
same agreement.

          (h) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

          (i) GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF NEW YORK INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULE 327(B), WITHOUT GIVING EFFECT TO
ANY PROVISIONS THEREOF RELATING TO CONFLICT OF LAW.

          (i) Severability. In the event that any one or more of the provisions contained herein, or
the application thereof in any circumstance, is held invalid, illegal or unenforceable, the
validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be affected or impaired thereby.

[SIGNATURE PAGE FOLLOWS]

-22-

 

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

	 	 	 	 	 
	 	ASHFORD HOSPITALITY TRUST, INC.

 	 
	 	By:  	 /s/ David A. Brooks	 
	 	 	Name:  	David A. Brooks	 
	 	 	Title:  	Chief Legal Officer 	 
	 

This Investor Rights Agreement is confirmed and accepted as of the date first above written by the
undersigned as the Investor.

	 	 	 	 	 
	WACHOVIA INVESTMENT HOLDINGS, LLC

 	 	 
	By:  	/s/ Rex E. Rudy 	 	 
	 	Name:  	Rex E. Rudy 	 	 
	 	Title:  	Managing Director 	 	 

-23-

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