Document:

exv10w6

 

EXHIBIT 10.6

 

 

AGREEMENT OF PURCHASE AND SALE

between

LEPERCQ ATLANTA RENAISSANCE PARTNERS, L.P., the SELLER

and

INTERSTATE ATLANTA AIRPORT, LLC, the BUYER

Dated as of May 4, 2007

The Westin Atlanta Airport, City of College Park, Georgia

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	SECTION 1.1 Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II. SALE, PURCHASE PRICE AND CLOSING
	 	 	7	 
	SECTION 2.1 Sale of Asset
	 	 	7	 
	SECTION 2.2 Purchase Price
	 	 	10	 
	SECTION 2.3 Earnest Money
	 	 	11	 
	SECTION 2.4 The Closing
	 	 	11	 
	 
	 	 	 	 
	ARTICLE III. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLER
	 	 	12	 
	SECTION 3.1 General Seller Representations and Warranties
	 	 	12	 
	SECTION 3.2 Representations and Warranties of the Seller as to the Asset
	 	 	14	 
	SECTION 3.3 Limitations on Representations and Warranties of the Seller
	 	 	15	 
	SECTION 3.4 Covenants of the Seller Prior to Closing
	 	 	15	 
	SECTION 3.5 Amendment to Schedules
	 	 	17	 
	 
	 	 	 	 
	ARTICLE IV. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BUYER
	 	 	17	 
	SECTION 4.1 Representations and Warranties of the Buyer
	 	 	17	 
	SECTION 4.2 Covenants of the Buyer Prior to Closing
	 	 	19	 
	SECTION 4.3 Employee Matters
	 	 	20	 
	SECTION 4.4 Bookings
	 	 	21	 
	SECTION 4.5 Franchise Agreement
	 	 	21	 
	SECTION 4.6 Manager Defaults
	 	 	22	 
	SECTION 4.7 Tax Clearance Certificates
	 	 	22	 
	 
	 	 	 	 
	ARTICLE V. CONDITIONS PRECEDENT TO CLOSING
	 	 	23	 
	SECTION 5.1 Conditions Precedent to the Seller’s Obligations
	 	 	23	 
	SECTION 5.2 Conditions to the Buyer’s Obligations
	 	 	24	 
	SECTION 5.3 Waiver of Conditions Precedent
	 	 	24	 
	 
	 	 	 	 
	ARTICLE VI. CLOSING DELIVERIES
	 	 	24	 
	SECTION 6.1 The Buyer Closing Deliveries
	 	 	24	 
	SECTION 6.2 The Seller Closing Deliveries
	 	 	25	 
	 
	 	 	 	 
	ARTICLE VII. INSPECTIONS; RELEASE
	 	 	27	 
	SECTION 7.1 Right of Inspection
	 	 	27	 
	SECTION 7.2 Examination; No Contingencies
	 	 	28	 
	SECTION 7.3 RELEASE
	 	 	30	 
	 
	 	 	 	 
	ARTICLE VIII. TITLE AND PERMITTED EXCEPTIONS
	 	 	31	 
	SECTION 8.1 Title Insurance and Survey
	 	 	31	 
	SECTION 8.2 Title Commitment; Survey
	 	 	31	 
	SECTION 8.3 Delivery of Title
	 	 	32	 
	SECTION 8.4 Cooperation
	 	 	33	 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE IX. TRANSACTION COSTS; RISK OF LOSS
	 	 	33	 
	SECTION 9.1 Transaction Costs
	 	 	33	 
	SECTION 9.2 Risk of Loss
	 	 	33	 
	 
	 	 	 	 
	ARTICLE X. ADJUSTMENTS
	 	 	34	 
	SECTION 10.1 Adjustments
	 	 	34	 
	SECTION 10.2 Re-Adjustment
	 	 	38	 
	SECTION 10.3 Accounts Receivable
	 	 	38	 
	 
	 	 	 	 
	ARTICLE XI. INDEMNIFICATION
	 	 	39	 
	SECTION 11.1 Indemnification by the Seller
	 	 	39	 
	SECTION 11.2 Indemnification by the Buyer
	 	 	39	 
	SECTION 11.3 Limitations on Indemnification
	 	 	40	 
	SECTION 11.4 Survival
	 	 	40	 
	SECTION 11.5 Indemnification as Sole Remedy
	 	 	40	 
	 
	 	 	 	 
	ARTICLE XII. DEFAULT AND TERMINATION
	 	 	41	 
	SECTION 12.1 The Seller’s Termination
	 	 	41	 
	SECTION 12.2 The Buyer’s Termination
	 	 	42	 
	 
	 	 	 	 
	ARTICLE XIII. TAX CERTIORARI PROCEEDINGS
	 	 	42	 
	SECTION 13.1 Prosecution and Settlement of Proceedings
	 	 	42	 
	SECTION 13.2 Application of Refunds or Savings
	 	 	43	 
	SECTION 13.3 Survival
	 	 	43	 
	 
	 	 	 	 
	ARTICLE XIV. MISCELLANEOUS
	 	 	43	 
	SECTION 14.1 Use of Blackstone Name and Address
	 	 	43	 
	SECTION 14.2 Exculpation of the Seller
	 	 	43	 
	SECTION 14.3 Brokers
	 	 	43	 
	SECTION 14.4 Confidentiality; Press Release; IRS Reporting Requirements
	 	 	44	 
	SECTION 14.5 Escrow Provisions
	 	 	45	 
	SECTION 14.6 Successors and Assigns; No Third-Party Beneficiaries
	 	 	45	 
	SECTION 14.7 Assignment
	 	 	46	 
	SECTION 14.8 Further Assurances
	 	 	46	 
	SECTION 14.9 Notices
	 	 	46	 
	SECTION 14.10 Entire Agreement
	 	 	48	 
	SECTION 14.11 Amendments
	 	 	48	 
	SECTION 14.12 No Waiver
	 	 	48	 
	SECTION 14.13 Governing Law
	 	 	48	 
	SECTION 14.14 Intentionally Omitted
	 	 	48	 
	SECTION 14.15 Severability
	 	 	48	 
	SECTION 14.16 Section Headings
	 	 	48	 
	SECTION 14.17 Counterparts
	 	 	48	 
	SECTION 14.18 Acceptance of Deed
	 	 	48	 
	SECTION 14.19 Construction
	 	 	48	 
	SECTION 14.20 Recordation
	 	 	49	 
	SECTION 14.21 WAIVER OF JURY TRIAL
	 	 	49	 
	SECTION 14.22 Time is of the Essence
	 	 	49	 
	SECTION 14.23 Bulk Sale; Occasional Sale
	 	 	49	 

ii

 

Schedules

	 	 	 	 	 
	Schedule A
	 	—	 	Land
	Schedule 1.1
	 	—	 	Title Commitment
	Schedule 3.1(c)
	 	—	 	Consents
	Schedule 3.2(a)
	 	—	 	Operating Agreements
	Schedule 3.2(c)
	 	—	 	Tenant Leases
	Schedule 3.2(d)
	 	—	 	Brokerage Commissions
	Schedule 3.2(f)
	 	—	 	Litigation
	Schedule 3.2(g)
	 	—	 	Bookings

Exhibits

	 	 	 	 	 
	Exhibit A
	 	—	 	Form of Assignment of Leases
	Exhibit B
	 	—	 	Form of Assignment of Contracts
	Exhibit C
	 	—	 	Form of Limited Warranty Deed
	Exhibit D
	 	—	 	Form of Bill of Sale
	Exhibit E
	 	—	 	Form of Assignment of Intangibles
	Exhibit F
	 	—	 	Form of FIRPTA Certificate
	Exhibit G
	 	—	 	Forms of Title Affidavits
	Exhibit H
	 	—	 	Form of Affidavit
	Exhibit I
	 	—	 	Form of Broker’s Lien Waiver
	Exhibit J
	 	—	 	Form of Buyer’s Update Certificate of Representations
	Exhibit K
	 	—	 	Form of Seller’s Update Certificate of Representations
	Exhibit L
	 	—	 	Form of Quitclaim Deed

iii

 

AGREEMENT OF PURCHASE AND SALE

     AGREEMENT OF PURCHASE AND SALE (this “Agreement”), made as of the 4th day of May, 2007
between LEPERCQ ATLANTA RENAISSANCE PARTNERS, L.P., a Delaware limited partnership (the
“Seller”), and INTERSTATE ATLANTA AIRPORT, LLC, a Delaware limited liability company (the
“Buyer”).

Background

     A. The Seller is the owner of the land more particularly described in Schedule A
attached hereto (the “Land”). The Seller is also the owner of the hotel facility located
on the Land having an address at 4736 Best Road, Atlanta, Georgia 30337, and commonly known as the
“Westin Atlanta Airport” (the “Hotel”). The Land and the Hotel (including without
limitation Seller’s interest in all improvements and structures constituting real property located
on, over or under the Land) shall be referred to herein, collectively, as the “Property”;
the Property and the Asset-Related Property (as defined below) shall be referred to herein as the
“Asset”.

     B. The Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller,
the Asset on the terms and conditions hereinafter set forth.

AGREEMENT

       NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in
this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:

ARTICLE I.

DEFINITIONS

     SECTION 1.1 Defined Terms. The capitalized terms used herein will have the following meanings.

          “Accounts Receivable” means all amounts which the Seller is entitled to receive from
the operation of the Hotel, but are not paid, as of the Closing, including, without limitation,
charges for the use or occupancy of any guest, conference, meeting or banquet rooms or other
facilities at the Hotel, or any other goods or services provided by or on behalf of the Seller at
the Hotel, but expressly excluding any credit card charges and checks which the Seller has
submitted for payment as of the Closing.

          “Agreement” shall mean this Agreement of Purchase and Sale, together with the exhibits
and schedules attached hereto, as the same may be amended, restated, supplemented or otherwise
modified.

          “Allocation” shall have the meaning assigned thereto in subsection 2.2(c).

1

 

          “Anti-Money Laundering and Anti-Terrorism Laws” shall have the meaning assigned
thereto in subsection 3.1(f)(i).

          “Asset” shall have the meaning assigned thereto in “Background” paragraph A.

          “Asset File” shall mean the materials with respect to the Asset previously delivered
to the Buyer or its representatives by or on behalf of the Seller or made available to the Buyer at
the Property or in Manager’s possession.

          “Asset-Related Property” shall have the meaning assigned thereto in subsection 2.1(b).

          “Assigned Accounts Receivable” shall have the meaning assigned thereto in subsection
10.3(b)(i).

          “Assignment of Contracts” shall have the meaning assigned thereto in subsection
6.1(a)(ii).

          “Assignment of Intangibles” shall have the meaning assigned thereto in subsection
6.2(a)(v).

          “Assignment of Leases” shall have the meaning assigned thereto in subsection
6.1(a)(i).

          “Basket Limitation” shall mean an amount equal to $150,000.

          “Bill of Sale” shall have the meaning assigned thereto in subsection 6.2(a)(ii).

          “Bookings” shall have the meaning assigned thereto in subsection 2.1(b)(viii).

          “Books and Records” shall have the meaning assigned thereto in subsection 2.1(b)(xvi).

          “Broker” shall mean Hodges Ward Elliott, Inc.

          “Business Day” shall mean any day other than a Saturday, Sunday or other day on which
banks are authorized or required by law to be closed in New York City, New York.

          “Buyer” shall have the meaning assigned thereto in the Preamble to this Agreement.

          “Buyer-Related Entities” shall have the meaning assigned thereto in Section 11.1.

          “Buyer’s Knowledge” shall mean the actual knowledge of the Buyer based upon the actual
knowledge of Leslie Ng, David Lee and Christopher Bennett without any duty on the part of such
Person to conduct any independent investigation or make any inquiry of any Person.

          “Buyer Waived Breach” shall have the meaning assigned thereto in 11.3.

2

 

          “Cap Limitation” shall mean an amount equal to $3,000,000.

          “Claims” shall have the meaning assigned thereto in Section 7.3.

          “Closing” shall have the meaning assigned thereto in subsection 2.4(a).

          “Closing Date” shall have the meaning assigned thereto in subsection 2.4(a).

          “Closing Documents” shall mean any certificate, assignment, instrument or other
document delivered pursuant to this Agreement.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute. Any reference herein to a particular provision of the Code shall mean, where
appropriate, the corresponding provision in any successor statute.

          “Condition of the Asset” shall have the meaning assigned thereto in subsection 7.2(b).

          “Cut-Off Time” shall have the meaning assigned thereto in subsection 10.1.

          “Deed” shall have the meaning assigned thereto in subsection 6.2(a)(i).

          “Earnest Money” shall have the meaning assigned thereto in subsection 2.3(a).

          “Employees” shall mean, at any time, all persons who are employed by the Seller or
Manager (whether on a full-time or part-time basis) at the Hotel at such time to operate the Hotel.

          “Environmental Laws” shall have the meaning assigned thereto in subsection 3.2(h).

          “Equipment Leases” shall have the meaning assigned thereto in subsection 2.1(b)(vii).

          “Escrow Account” shall have the meaning assigned thereto in subsection 14.5(a).

          “Escrow Agent” shall have the meaning assigned thereto in subsection 2.3(a).

          “Executive Order” shall have the meaning assigned thereto in subsection 3.1(f)(i).

          “Existing Survey” shall mean that certain survey of the Property prepared by Paul Lee
Consulting Engineering Associates, Inc., dated March 31, 1983, last revised September 19, 1996.

          “Extension Option” shall have the meaning assigned thereto in subsection 2.4(b).

          “FIRPTA” shall have the meaning assigned thereto in subsection 6.2(a)(vii).

          “Financing Liens” shall have the meaning assigned thereto in subsection 8.3(a).

3

 

          “FF&E” shall have the meaning assigned thereto in subsection 2.1(b)(ii).

          “Franchise Agreement” shall mean that certain License Agreement, dated June 1, 2006,
with Effective Date of May 2, 2006, by and between Franchisor and the Seller.

          “Franchisor” shall mean Westin Hotel Management, L.P.

          “Georgia Residency Affidavits” shall have the meaning assigned thereto in subsection
6.2(a)(xii).

          “Governmental Authority” shall mean any federal, state or local government or other
political subdivision thereof, including, without limitation, any agency or entity exercising
executive, legislative, judicial, regulatory or administrative governmental powers or functions, in
each case to the extent the same has jurisdiction over the Person or property in question.

          “Government List” shall mean any of (i) the two lists maintained by the United States
Department of Commerce (Denied Persons and Entities), (ii) the list maintained by the United States
Department of Treasury (Specially Designated Nationals and Blocked Persons), and (iii) the two
lists maintained by the United States Department of State (Terrorist Organizations and Debarred
Parties).

          “Guest Ledger” means any and all charges accrued to the open accounts of any guests or
customers at the Hotel as of the Cut-Off Time for the use and occupancy of any guest, conference,
meeting or banquet rooms or other facilities at the Hotel, any restaurant, bar or banquet services,
or any other goods or services provided by or on behalf of the Seller.

          “Hazardous Materials” shall have the meaning assigned thereto in subsection 7.2(b)(i).

          “Hotel” shall have the meaning assigned thereto in “Background” paragraph A.

          “Intangible Property” shall have the meaning assigned thereto in subsection
2.1(b)(xiii).

          “Inventories” shall have the meaning assigned thereto in subsection 2.1(b)(xi).

          “IRS” shall mean the Internal Revenue Service.

          “IRS Reporting Requirements” shall have the meaning assigned thereto in subsection
14.4(c).

          “Land” shall have the meaning assigned thereto in “Background” paragraph A.

          “Licenses and Permits” shall have the meaning assigned thereto in subsection
2.1(b)(iii).

          “Liquor Holder” shall mean Interstate Management Company.

4

 

          “Liquor Authorities” shall have the meaning assigned thereto in subsection
4.2(a)(iii).

          “Liquor License” shall mean the liquor license(s) in effect with respect to the
Property.

          “Losses” shall have the meaning assigned thereto in Section 11.1.

          “Management Agreement” shall mean that certain Hotel Management Agreement, which is
dated as of January 1,2001 between MeriStar Hotel Lessee, Inc. and Manager, as assigned to the
Seller pursuant to that certain Assignment and Assumption Agreement dated as of May 2, 2006 among
MeriStar Hotel Lessee, Inc., the Seller and MeriStar Hospitality Operating Partnership, L.P.
pursuant to which Manager is to provide management and other services with respect to the Property.

          “Manager” shall mean Interstate Management Company L.L.C., successor in interest to
MeriStar Management Company, L.L.C.

          “Material Casualty” shall have the meaning assigned thereto in subsection 9.2(b).

          “Material Condemnation” shall have the meaning assigned thereto in subsection 9.2(b).

          “Miscellaneous Personal Property” shall have the meaning assigned thereto in
subsection 2.1(b)(xv).

          “Natural Hazard Expert” shall have the meaning assigned thereto in subsection 7.4(b).

          “Operating Agreements” shall mean all maintenance, service and supply contracts,
management agreements, credit card service agreements, booking and reservation agreements, and all
other contracts and agreements which are held by the Seller in connection with the operation of the
Hotel, other than the Franchise Agreement, the Management Agreement, Tenant Leases, Equipment
Leases, the Bookings and Licenses and Permits.

          “Outside Closing Date” shall have the meaning assigned thereto in subsection 4.5(b).

          “Permitted Exceptions” shall mean (i) the items set forth in Schedule B, Part 1, items
1 (subject to the Seller’s and the Buyer’s proration obligations under subsection 10.1(a)), 2, 3
(but limited to only those Tenant Leases as contemplated under clause (iii) below), 4, 5, 6, 7, 8,
9, 10, 11 and 12 in the Title Commitment, (ii) the matters shown on the Existing Survey, (iii) the
Tenant Leases set forth in Schedule 3.2(c) attached hereto and the Operating Agreements and
any Tenant Leases, Operating Agreements or other contracts entered into after the date hereof, and
in accordance with the terms of this Agreement, (iv) discrepancies, conflicts in boundary lines,
shortages in area, encroachments and any other state of facts as disclosed on a new survey of the
property that were not shown on the Existing Survey and that do not have a material adverse effect
on the use or value of the Property, (v) subject to the adjustments provided for herein, any

5

 

service, installation, connection or maintenance charge, and charges for sewer, water,
electricity, telephone, cable television or gas first due from and after the Cut-Off Time, (vi)
rights of tenants to remove trade fixtures at the expiration of the term of the Tenant Leases of
such tenants to the extent set forth in the applicable Tenant Lease, (vii) right of tenants as
tenants only under the Tenant Leases permitted in clause (iii) above, (viii) laws, regulations,
resolutions or ordinances, including, without limitation, building, zoning and environmental
protection, as to the use, occupancy, subdivision, development, conversion or redevelopment of the
Property currently or hereinafter imposed by any governmental or quasi governmental body or
authority, and (ix) any title exception which is waived by the Buyer pursuant to subsection 8.3(b).

          “Person” shall mean a natural person, partnership, limited partnership, limited
liability company, corporation, trust, estate, association, unincorporated association or other
entity.

          “Post Effective Date Monetary Encumbrance” shall have the meaning assigned thereto in
subsection 8.3(c).

          “Post Effective Date Seller Encumbrance” shall have the meaning assigned thereto in
subsection 8.3(a).

          “Property” shall have the meaning assigned thereto in “Background” paragraph A.

          “Property and Equipment” shall have the meaning assigned thereto in subsection
2.1(b)(x).

          “Purchase Price” shall have the meaning assigned thereto in subsection 2.2(a).

          “Releasees” shall have the meaning assigned thereto in Section 7.3.

          “Reporting Person” shall have the meaning assigned thereto in subsection 14.4(c).

          “Retail Merchandise” shall have the meaning assigned thereto in subsection
2.1(b)(xii).

          “Retained Accounts Receivable” shall have the meaning assigned thereto in subsection
10.3(b)(ii)

          “Seller” shall have the meaning assigned thereto in the Preamble to this Agreement.

          “Seller-Related Entities” shall have the meaning assigned thereto in Section 11.2.

          “Seller’s Knowledge” shall mean the actual knowledge of the Seller based upon the
actual knowledge of Robert Harper, Larry Doyle and Kenneth Caplan without any duty on the part of
such Persons to conduct any independent investigation or make any inquiry of any Person.

          “Survival Period” shall have the meaning assigned thereto in Section 11.4.

6

 

          “Tax Clearance Certificates” shall have the meaning assigned thereto in Section
4.7(a).

          “Tax Liens” shall have the meaning assigned thereto in subsection 8.3(a).

          “Tenant Leases” shall have the meaning assigned thereto in subsection 2.1(b)(vi).

          “Termination Option” shall have the meaning assigned thereto in subsection 4.5(b).

          “Title Company” shall mean Lawyers Title Insurance Corporation.

          “Title Commitment” shall mean that certain Owners Pro Forma title report issued by
Lawyers Title Insurance Corporation referred to as File No. 07-018170 and attached hereto as
Schedule 1.1.

          “Title Policy” shall mean a standard form ALTA Owner’s Policy of Title Insurance
without endorsements issued by the Title Company pursuant to the Title Commitment insuring the
Buyer’s title to the Property subject only to the Permitted Exceptions in an amount equal to the
Purchase Price.

          “Trade Payables” shall have the meaning assigned thereto in subsection 10.1(k).

          “Transferred Employees” shall have the meaning assigned thereto in subsection 4.3(b).

          “UCC” shall mean the Uniform Commercial Code.

          “Uniform System of Accounts” shall have the meaning assigned thereto in subsection
2.1(b)(x).

          “WARN Act” means the Worker’s Adjustment and Retraining Notification Act of 1988, 29
U.S.C. § 2101, et seq., and any similar state and local applicable law, as amended
from time to time, and any regulations, rules and guidance issued pursuant thereto.

ARTICLE II.

SALE, PURCHASE PRICE AND CLOSING

     SECTION 2.1 Sale of Asset.

          (a) On the Closing Date and pursuant to the terms and subject to the conditions set forth in
this Agreement, the Seller shall sell to the Buyer, and the Buyer shall purchase from the Seller,
the Asset.

7

 

          (b) The transfer of the Asset to the Buyer shall include the transfer of all Asset-Related
Property. For purposes of this Agreement, “Asset-Related Property” shall mean the
following:

     (i) all of the Seller’s right, title and interest in and to all easements,
covenants and other rights appurtenant to the Land and all right, title and interest
of the Seller, if any, in and to any (A) land lying in the bed of any street, road,
avenue or alley, open or closed, in front of or adjoining the Land and to the center
line thereof, and (B) unpaid award or payment which may hereafter be payable with
respect to any taking by condemnation;

     (ii) all furniture, furnishings, fixtures, vehicles, rugs, mats, carpeting,
appliances, devices, engines, telephone and other communications equipment,
televisions and other video equipment, plumbing fixtures and other equipment, and
all other equipment and other personal property which are now, or may hereafter
prior to the Closing Date be, placed in or on or attached to the Property and are
used in connection with the operation of the Property (but not including items owned
or leased by tenants or which are leased under the Equipment Leases by the Seller or
Manager) (the “FF&E”);

     (iii) all of the Seller’s right, title and interest in and to and to the extent
transferable under applicable law, all licenses, permits and authorizations
presently issued in connection with the operation of all or any part of the Property
as it is presently being operated, other than the existing Liquor License (the
“Licenses and Permits”);

     (iv) all of the Seller’s right, title and interest in and to and to the extent
assignable, all warranties, if any, issued to the Seller by any manufacturer or
contractor in connection with construction or installation of equipment or any
component of the improvements included as part of the Property or FF&E;

     (v) all of the Seller’s right, title and interest in and to and to the extent
assignable all Operating Agreements;

     (vi) all of the Seller’s right, title and interest in and to all leases,
subleases, licenses, contracts and other agreements, granting a real property
interest to any other Person (including without limitation, any usufruct) for the
use and occupancy of all or any part of the Property, other than the Bookings (the
“Tenant Leases”) and all security and escrow deposits or other security held
by or for the benefit of, or granted to the Seller in connection with, such Tenant
Leases;

     (vii) all of the Seller’s right, title and interest in and to all leases and
purchase money security agreements for any equipment, machinery, vehicles, furniture
or other personal property located at the Hotel and used in the operation of the
Hotel which are held by or on behalf of the Seller (the “Equipment Leases”),
together with all deposits made thereunder;

8

 

     (viii) all of the Seller’s right, title and interest in and to all bookings and
reservations for guest, conference, meeting and banquet rooms or other facilities at
the Hotel for dates from and after the Closing Date (the “Bookings”),
together with all deposits held by the Seller with respect thereto;

     (ix) all of the Seller’s right, title and interest in and to all Assigned
Accounts Receivable as set forth in Section 10.3;

     (x) all items included within the definition of “Property and Equipment” under
the Uniform System of Accounts for the Lodging Industry, Ninth Revised Edition, as
published by the Hotel Association of New York City, Inc. (the “Uniform System
of Accounts”) and used in the operation of the Hotel, including, without
limitation, linen, china, glassware, tableware, uniforms and similar items
(“Property and Equipment”);

     (xi) all “Inventories” as defined in the Uniform System of Accounts and used in
the operation of the Hotel, such as provisions in storerooms, refrigerators,
pantries, and kitchens, beverages in wine cellars and bars, other merchandise
intended for sale or resale, fuel, mechanical supplies, stationery, guest supplies,
maintenance and housekeeping supplies and other expensed supplies and similar items
and including all food and beverages which are located at the Hotel, or ordered for
future use at the Hotel as of the Closing, but expressly excluding any alcoholic
beverages to the extent the sale or transfer of the same is not permitted under
applicable law (the “Inventories”);

     (xii) all merchandise located at the Hotel and held for sale to guests and
customers of the Hotel, or ordered for future sale at the Hotel as of the Cut-Off
Time, but not including any such merchandise owned by any tenant at the Property or
by Manager (“Retail Merchandise”);

     (xiii) all of the Seller’s right, title and interest in and to and to the
extent the Seller’s rights and interests therein are assignable, all names,
tradenames, trademarks, service marks, logos, and other similar proprietary rights
and all registrations or applications for registration of such rights used by the
Seller in the operation of the Hotel (the “Intangible Property”);

     (xiv) any ownership right Seller or any of its affiliates may have, if any,
with respect to the Liquor License;

     (xv) all of the Seller’s right, title and interest in and to and to the extent
not included in subsection 2.1(b)(ii) above and to the extent owned by the Seller,
the Hotel’s telephone numbers, printed marketing materials and any slides, proofs or
drawings used by the Seller to produce such materials, to the extent such slides,
proofs or drawings are in the Seller’s possession (“Miscellaneous Personal
Property”); and

     (xvi) to the extent in the Seller’s possession or control, all surveys,
architectural, consulting and engineering blueprints, plans and specifications and

9

 

reports, if any, related to the Hotel, all books and records, if any, related
to the Hotel (collectively, “Books and Records”), and any goodwill of the
Seller related to the Hotel; provided, however, that the Seller may
retain a copy of all such books and records.

          (c) Excluded Property. Notwithstanding anything to the contrary in Section 2.1(a) and
(b), the property, assets, rights and interests set forth in this subsection 2.1(c) are expressly
excluded from the Asset:

     (i) Cash. Except for deposits expressly included in subsections 2.1(a)
and (b) and except for any cash on hand or in house banks for which the Seller
receives a credit under subsection 10.1(l), all cash on hand or on deposit in any
house bank, operating account or other account maintained in connection with the
ownership of the Hotel, including, without limitation, any reserves maintained by
the Seller or Manager required by the Management Agreement (subject to subsection
10.1(l)); and

     (ii) Third Party Property. Any fixtures, personal property or
equipment owned by (A) the lessor under any Equipment Leases, (B) the supplier or
vendor under any other Operating Agreements, (C) the tenant under any Tenant Lease,
(D) any Employees, (E) Manager or (F) any guests or customers of the Hotel,
including, without limitation, those items set forth on Schedule 2.1(c) attached
hereto.

     SECTION 2.2 Purchase Price.

          (a) The consideration for the purchase of the Asset shall be $74,000,000 (the “Purchase
Price”), which shall be paid by the Buyer to the Seller at the Closing in immediately available
funds by wire transfer to such accounts or accounts that the Seller shall designate to the Buyer;
provided that such amount shall be reduced by the Earnest Money and adjusted for Closing
adjustments and credits provided for in Article X and elsewhere in the Agreement.

          (b) No adjustment shall be made to the Purchase Price except as explicitly set forth in this
Agreement.

          (c) The Seller and the Buyer agree that the Purchase Price shall be allocated among the Assets
as determined by agreement of the parties prior to the Closing for federal, state and local tax
purposes in accordance with Section 1060 of the Code. The Buyer shall, within 10 days after the
date of this Agreement, prepare and deliver to the Seller for its review a schedule allocating the
Purchase Price (and any other items that are required for federal income tax purposes to be treated
as part of the purchase price) among the Assets (such schedule, the “Allocation”). The Seller
shall review such Allocation and provide any objections to the Buyer within 10 days after the
receipt thereof. If the Seller raises any objection to the Allocation, the parties hereto will
negotiate in good faith to resolve such objection(s). Upon reaching an agreement on the
Allocation, the Buyer and the Seller shall (i) cooperate in the filing of any forms (including Form
8594 under Section 1060 of the Code) with respect to the Allocation as finally resolved, including
any amendments to such forms required pursuant to this Agreement

10

 

with respect to any adjustment to the Purchase Price and (ii) shall file all federal, state
and local tax returns and related tax documents consistent with such allocation, as the same may be
adjusted pursuant to Section 9.1 or any other provisions of this Agreement. Notwithstanding the
foregoing, if, after negotiating in good faith, the parties hereto are unable to agree on a
mutually satisfactory Allocation, each of the Buyer and the Seller shall use its own allocation for
purposes of this subsection 2.2(c).

     SECTION 2.3 Earnest Money.

          (a) On the date hereof, the Buyer shall deposit with the Title Company, as escrow agent (in
such capacity, “Escrow Agent”), cash in an amount equal to $4,100,000 (together with all
accrued interest thereon, the “Earnest Money”) in immediately available funds by wire to
such account as Escrow Agent shall designate to the Buyer. The Earnest Money shall be
nonrefundable to the Buyer except as otherwise expressly provided in this Agreement. If the
Earnest Money is not deposited by the Buyer by 5:00 p.m. (New York Time) on the date of this
Agreement, the Seller shall have the right, in the Seller’s sole and absolute discretion, upon
written notice to the Buyer delivered prior to the Buyer’s deposit of the Earnest Money with the
Title Company, to terminate this Agreement whereupon neither party hereto shall have any further
rights or obligations hereunder except for those that expressly survive the termination of this
Agreement.

          (b) Upon delivery by the Buyer to Escrow Agent and upon receipt of an executed form W-9, the
Earnest Money will be deposited by Escrow Agent in an interest-bearing account acceptable to the
Buyer and the Seller and shall be held in escrow in accordance with the provisions of Section 14.5.
All interest earned on the Earnest Money while held by Escrow Agent shall be paid to the party to
whom the Earnest Money is paid, except that if the Closing occurs, the Buyer shall receive a credit
for such interest in accordance with subsection 2.2(a).

     SECTION 2.4 The Closing.

          (a) The closing of the sale and purchase of the Asset (the “Closing”) shall take place
on June 4, 2007 (such date, the “Closing Date”), Time Being Of The Essence with respect to
the Buyer’s and the Seller’s obligations hereunder on the Closing Date, subject only to the rights
to adjourn the Closing Date as is expressly permitted in this Agreement.

          (b) The Buyer shall have the right to extend the Closing Date (as it may have otherwise been
extended in accordance with Section 4.5) for up to 15 days (the “Extension Option”) in
accordance with the terms of this subsection 2.4(b). In order to exercise the Extension Option,
the Buyer must deliver written notice to the Seller and Escrow Agent of such extension no later
than two Business Days prior to the then scheduled Closing Date. Notwithstanding the provisions of
this subsection 2.4(b), the parties agree and acknowledge that in no event shall the Buyer have the
right to extend the Closing Date under this subsection 2.4(b) beyond the Outside Closing Date. If
the Closing Date is extended under any other provision of this Agreement, the length of the
Extension Option shall be reduced accordingly so that the Closing Date shall not be extended under
this subsection 2.4(b) beyond the Outside Closing Date.

11

 

          (c) The Closing shall be held on the Closing Date at 10:00 A.M. (Eastern time) at the offices
of the Escrow Agent or at such other location agreed upon by the parties hereto.

          (d) Notwithstanding any other provision herein to the contrary, there shall be no requirement
that the Seller and the Buyer physically attend the Closing, and all funds and documents to be
delivered at the Closing may be delivered to Escrow Agent unless the parties hereto mutually agree
otherwise. The Buyer and the Seller hereby authorize their respective attorneys to execute and
deliver to Escrow Agent any additional or supplementary instructions as may be necessary or
convenient to implement the terms of this Agreement and facilitate the closing of the transactions
contemplated hereby, provided that such instructions are consistent with and merely supplement this
Agreement and shall not in any way modify, amend or supersede this Agreement.

ARTICLE III.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLER

     SECTION 3.1 General Seller Representations and Warranties. The Seller hereby represents and warrants
to the Buyer as follows:

          (a) Formation; Existence. It is a limited partnership, duly formed, validly existing
and in good standing under the laws of the State of Delaware and the State of Georgia.

          (b) Power and Authority. It has all requisite power and authority to enter into this
Agreement, to perform its obligations hereunder and to consummate the transactions contemplated
hereby. The execution, delivery and performance of this Agreement, the sale of the Assets and the
consummation of the transactions provided for in this Agreement have been duly authorized by all
necessary action on its part. This Agreement has been duly executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights and by general principles of equity (whether
applied in a proceeding at law or in equity).

          (c) No Consents. Except as set forth in Schedule 3.1(c), no consent, license,
approval, order, permit or authorization of, or registration, filing or declaration with, any
court, administrative agency or commission or other Governmental Authority or instrumentality,
domestic or foreign, is required to be obtained or made in connection with the execution, delivery
and performance of this Agreement or any of the transactions required or contemplated hereby.

          (d) No Conflicts. The execution, delivery and compliance with, and performance of the
terms and provisions of, this Agreement, and the sale of the Asset, will not (i) conflict with or
result in any violation of its organizational documents, (ii) conflict with or result in any
violation of any provision of any bond, note or other instrument of indebtedness, contract,
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to

12

 

which it is a party in its individual capacity, or (iii) violate any existing term or
provision of any order, writ, judgment, injunction, decree, statute, law, rule or regulation
applicable to it or its assets or properties.

          (e) Foreign Person. It is not a “foreign person” as defined in Internal Revenue Code
Section 1445 and the regulations issued thereunder.

          (f) Anti-Terrorism Laws.

     (i) None of the Seller or, to Seller’s Knowledge, its affiliates, is in
violation of any laws relating to terrorism, money laundering or the Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Action of 2001, Public Law 107-56 and Executive Order No. 13224
(Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to
Commit, or Support Terrorism) (the “Executive Order”) (collectively, the
“Anti-Money Laundering and Anti-Terrorism Laws”).

     (ii) None of the Seller or, to Seller’s Knowledge, its affiliates, is acting,
directly or indirectly, on behalf of terrorists, terrorist organizations or
narcotics traffickers, including those persons or entities that appear on the Annex
to the Executive Order, or are included on any relevant lists maintained by the
Office of Foreign Assets Control of U.S. Department of Treasury, U.S. Department of
State, or other U.S. government agencies, all as may be amended from time to time.

     (iii) None of the Seller or, to Seller’s Knowledge, its affiliates or, without
inquiry, any of its brokers or other agents, in any capacity in connection with the
purchase of the Property (A) conducts any business or engages in making or receiving
any contribution of funds, goods or services to or for the benefit of any person
included in the lists set forth in the preceding paragraph; (B) deals in, or
otherwise engages in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order; or (C) engages in or conspires to
engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Money Laundering and Anti-Terrorism Laws.

     (iv) The Seller understands and acknowledges that the Buyer may become subject
to further anti-money laundering regulations, and agrees to execute instruments,
provide information, or perform any other acts as may reasonably be requested by the
Buyer, for the purpose of: (A) carrying out due diligence as may be required by
applicable law to establish the Seller’s identity and source of funds; (B)
maintaining records of such identities and sources of funds, or verifications or
certifications as to the same; and (C) taking any other actions as may be required
to comply with and remain in compliance with anti-money laundering regulations
applicable to the Seller.

13

 

     (v) Neither the Seller, nor any person controlling or controlled by the Seller,
is a country, territory, individual or entity named on a Government List, and the
monies used in connection with this Agreement and amounts committed with respect
thereto, were not and are not derived from any activities that contravene any
applicable anti-money laundering or anti-bribery laws and regulations (including
funds being derived from any person, entity, country or territory on a Government
List or engaged in any unlawful activity defined under Title 18 of the United States
Code, Section 1956(c)(7)).

     SECTION 3.2 Representations and Warranties of the Seller as to the Asset. The Seller hereby represents
and warrants to the Buyer as follows:

          (a) Operating Agreements. To Seller’s Knowledge, (i) all material Operating
Agreements (and any amendments or modification thereof) affecting the Property as of the date
hereof are set forth on Schedule 3.2(a) attached hereto, (ii) the same have not been
modified or amended, except as shown in such documents, (iii) all material Operating Agreements are
in full force and effect, (iv) the Seller has delivered to the Buyer true and complete copies of
each material Operating Agreement to the extent in the Seller’s possession and (v) there are no
material defaults by any party under any material Operating Agreement.

          (b) Employees. The Seller does not have any employees. The Seller is not a party to
any collective bargaining agreement or other contract or agreement with any labor organization.
The Seller has not entered into any agreements with any Employees except through Manager.

          (c) Tenant Leases and Equipment Leases. To Seller’s Knowledge, Schedule
3.2(c) sets forth a correct and complete list of the Tenant Leases and all material Equipment
Leases for the Hotel as of the date hereof. Except as set forth in Schedule 3.2(c), as of
the date hereof, (i) to Seller’s Knowledge, all material Equipment Leases and Tenant Leases are in
full force and effect and the Seller has delivered to the Buyer true and complete copies of all
material Equipment Leases and Tenant Leases to the extent in the Seller’s possession, and (ii) the
Seller has not given or, to Seller’s Knowledge, received any written notice of any breach or
default under any of the Tenant Leases or Equipment Leases that has not been cured.

          (d) Brokerage Commissions. To Seller’s Knowledge, there are no unpaid brokerage
commissions or finders’ fees payable by the landlord with respect to the current or any renewal
term of any of the Tenant Leases other than those set forth on Schedule 3.2(d) attached
hereto and the Seller has no agreement with any broker with respect to any renewal term of any
Tenant Lease except as set forth in Schedule 3.2(d).

          (e) Condemnation. As of the date hereof, there is no pending condemnation or similar
proceedings affecting the Property, and to Seller’s Knowledge, no such action is threatened or
contemplated.

          (f) Litigation. To Seller’s Knowledge and except as disclosed in Schedule
3.2(f) attached hereto, as of the date hereof, there are no actions, suits or proceedings
pending against or affecting the Asset or the Seller in any court or before or by an arbitration

14

 

tribunal
or regulatory commission, department or agency and to Seller’s Knowledge, no such actions, suits
or proceedings has been threatened or contemplated.

          (g) Bookings. To Seller’s Knowledge, Schedule 3.2(g) sets forth a correct list
of all Bookings for the Hotel as of the date hereof.

          (h) Environmental Matters. The Seller has not received any written notice from any
governmental or regulatory authority of a violation of any applicable Environmental Laws, which
have not been corrected. For the purposes of this subsection 3.2(h), “Environmental Laws”
means any and all federal, state, county and local statutes, laws, regulations and rules in effect
on the date of this Agreement relating to the protection of the environment or to the use,
transportation and disposal of Hazardous Materials.

          (i) Title to Personal Property. Other than FF&E, Property and Equipment, Retail
Merchandise and Inventories covered by an Equipment Lease or as it relates to the rights, if any,
of Franchisor under the Franchise Agreement therein, the Seller shall own the FF&E, Property and
Equipment, Retail Merchandise and Inventories free and clear of all liens and encumbrances as of
the Closing Date.

          (j) Franchise Agreement. The Seller has delivered to the Buyer a true and complete
copy of the Franchise Agreement. To Seller’s Knowledge, (i) the Franchise Agreement is in full
force and effect and (ii) there are no material defaults by any party thereunder as of the date
hereof.

          (k) Violation of Law. The Seller has not received any written notice from any
governmental or regulatory authority of a violation of any applicable material law within the past
two years, which have not been remedied.

          (l) Liquor Holder. To Seller’s Knowledge, the Liquor Holder is the holder of the
Liquor License and Seller has taken and will take no action which would cause such interest to be
encumbered as of the Closing.

     SECTION 3.3 Limitations on Representations and Warranties of the Seller. If the representations and
warranties relating to the Operating Agreements set forth in Section 3.2 and the status of the
contract parties thereunder (other than the Seller or its affiliates) contained herein were true
and correct as of the date of this Agreement, no change in circumstances or status of such contract
party (e.g., defaults, bankruptcies or other adverse matters relating to such contract party)
occurring after the date hereof shall permit the Buyer to terminate this Agreement or constitute
grounds for the Buyer’s failure to close.

     SECTION 3.4 Covenants of the Seller Prior to Closing. From the date hereof until Closing or earlier
termination of this Agreement, the Seller or the Seller’s agents shall:

          (a) Insurance. Keep the Property insured against fire and other hazards in coverage,
amounts and deductibles not materially less than those in effect as of the date of this Agreement
and otherwise under such terms as the Seller deems advisable consistent with past practices.

15

 

          (b) New Operating Agreements. Without the prior written consent of the Buyer, which
consent shall not be unreasonably withheld or delayed, not enter into any Operating Agreements or
Equipment Leases, or renew, amend or supplement any such contracts; provided that the Seller may
enter into or renew such contracts, or amend or supplement such contracts, without the Buyer’s
consent if such contract is entered into (or renewed, amended, or supplemented, as the case may be)
in the course of customary maintenance and repairs at the Property, or is necessary as a result of
an emergency at the Property and in either case, is terminable on 30 days or less notice, without
penalty. If the Seller enters into or renews any such contracts, or amends or supplements any such
contracts, after the date of this Agreement, then the Seller shall promptly provide written notice
and a copy thereof to the Buyer and unless the same required the Buyer’s approval pursuant to this
paragraph and such approval was not obtained, the Buyer shall assume such contract at Closing and
the schedule of contracts attached to the Assignment of Contracts shall be so modified, and such
contract shall be deemed added to Schedule 3.2(a) attached hereto and Schedule
3.2(a) shall be deemed amended at the Closing to include such contracts. If a new contract, or
a renewal, amendment or supplement to an existing contract, requires the Buyer’s approval or Seller
otherwise requests Buyer’s approval and the Buyer does not object within seven days after receipt
of a copy of such contract, then the Buyer shall be deemed to have approved such contract. The
Seller shall observe and perform all of its material obligations under the material Operating
Agreements and Equipment Leases excluding any such agreements which may be terminated in the
ordinary course of the operation of the Hotel or as a result of a default by the other party.

          (c) New Tenant Leases. Without the prior consent of the Buyer, not execute any new
lease, or renew, amend or supplement any existing lease (unless required by the terms thereof), for
space at the Property. If the Buyer’s approval was obtained on a new lease or the renewal,
amendment or supplement of an existing lease, the Buyer shall assume such lease at Closing and the
schedule of leases attached to the Assignment of Leases shall be so modified, and such lease shall
be deemed added to Schedule 3.2(c) attached hereto and Schedule 3.2(c) shall be
deemed amended at the Closing to include such leases. If the Buyer does not object within seven
days after receipt of a copy of a request for approval of a new lease, or to the renewal, amendment
or supplement of an existing lease (unless required by the terms thereof), then the Buyer shall be
deemed to have approved such new lease, renewal, amendment or supplement, as the case may be.

          (d) Franchise Agreement. Observe and perform all of its material obligations under
the Franchise Agreement. Without the prior consent of the Buyer, the Seller shall not amend,
supplement or terminate the Franchise Agreement.

          (e) Assets. Shall not sell, exchange, assign, transfer, convey or otherwise dispose
of all or any of the Asset or any interest therein except for any FF&E, Inventories, Retail
Merchandise, Miscellaneous Personal Property or Property and Equipment that are sold, replaced or
consumed in the ordinary course of business and shall, to the extent within the Seller’s control
under the Management Agreement, maintain levels of Inventory and Property and Equipment in a manner
substantially consistent with the Seller’s customary operating practices and historical practice at
the Property.

16

 

          (f) Operation. Shall, to the extent within the Seller’s control under the Management
Agreement, continue to operate and maintain the Hotel in substantially the same manner in which it
is being operated and maintained as of the date hereof, provided that, except for emergency
repairs, the Seller shall not perform any capital improvements at the Hotel including, without
limitation, any capital improvements or expenditures as may be contemplated by the existing capital
expenditure budget for the Hotel.

          (g) Management Agreement. At or prior to the Closing, the Seller shall terminate (and
the Buyer shall cause the Manager to terminate without payment of any termination fee, termination
penalty or termination damages being payable by Seller or its affiliates) the Management Agreement
effective as of the Cut-Off Time.

     SECTION 3.5 Amendment to Schedules. Notwithstanding anything to the contrary in this Agreement, the
Seller shall have the right to amend and supplement the schedules to this Agreement from time to
time prior to the Closing to reflect changes since the date of this Agreement by providing a
written copy of such amendment or supplement to the Buyer; provided, however, that
any amendment or supplement to the schedules to this Agreement shall have no effect for the
purposes of determining whether subsection 5.2(a) has been satisfied if the matter raised in such
supplement has a material adverse effect on the Asset, but shall have effect only for the purposes
of limiting the defense and indemnification obligations of the Seller for the inaccuracy or untruth
of the representation or warranty qualified by such amendment or supplement.

ARTICLE IV.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE BUYER

     SECTION 4.1 Representations and Warranties of the Buyer. The Buyer hereby represents and warrants to
the Seller as follows:

          (a) Formation; Existence. It is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware.

          (b) Power; Authority. It has all requisite power and authority to enter into this
Agreement, to perform its obligations hereunder and to consummate the transactions contemplated
hereby. The execution, delivery and performance of this Agreement, the purchase of the Asset and
the consummation of the transactions provided for herein have been duly authorized by all necessary
action on the part of the Buyer. This Agreement has been duly executed and delivered by the Buyer
and constitutes the legal, valid and binding obligation of the Buyer enforceable against the Buyer
in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights and by general
principles of equity (whether applied in a proceeding at law or in equity).

          (c) No Consents. No consent, license, approval, order, permit or authorization of, or
registration, filing or declaration with, any court, administrative agency or commission or

17

 

other Governmental Authority or instrumentality, domestic or foreign, is required to be
obtained or made in connection with the execution, delivery and performance of this Agreement or
any of the transactions required or contemplated hereby.

          (d) No Conflicts. The execution, delivery and compliance with, and performance of the
terms and provisions of, this Agreement, and the purchase of the Asset, will not (i) conflict with
or result in any violation of its organizational documents, (ii) conflict with or result in any
violation of any provision of any bond, note or other instrument of indebtedness, contract,
indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which
it is a party in its individual capacity, or (iii) violate any existing term or provision of any
order, writ, judgment, injunction, decree, statute, law, rule or regulation applicable to it or its
assets or properties.

          (e) Anti-Terrorism Laws.

     (i) None of the Buyer or, to the Buyer’s Knowledge, its affiliates, is in
violation of the Executive Order or any Anti-Money Laundering and Anti-Terrorism
Law.

     (ii) None of the Buyer or, to the Buyer’s Knowledge, its affiliates, is acting,
directly or indirectly, on behalf of terrorists, terrorist organizations or
narcotics traffickers, including those persons or entities that appear on the Annex
to the Executive Order, or are included on any relevant lists maintained by the
Office of Foreign Assets Control of U.S. Department of Treasury, U.S. Department of
State, or other U.S. government agencies, all as may be amended from time to time.

     (iii) None of the Buyer or, to the Buyer’s Knowledge, its affiliates or,
without inquiry, any of its brokers or other agents, in any capacity in connection
with the purchase of the Property (A) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of any
person included in the lists set forth in the preceding paragraph; (B) deals in, or
otherwise engages in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order; or (C) engages in or conspires to
engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Money Laundering and Anti-Terrorism Laws.

     (iv) The Buyer understands and acknowledges that the Seller may become subject
to further anti-money laundering regulations, and agrees to execute instruments,
provide information, or perform any other acts as may reasonably be requested by the
Seller, for the purpose of: (A) carrying out due diligence as may be required by
applicable law to establish the Buyer’s identity and source of funds; (B)
maintaining records of such identities and sources of funds, or verifications or
certifications as to the same; and (C) taking any other actions as may be required
to comply with and remain in compliance with anti-money laundering regulations
applicable to the Buyer.

18

 

     (v) Neither the Buyer, nor any person controlling or controlled by the Buyer,
is a country, territory, individual or entity named on a Government List, and the
monies used in connection with this Agreement and amounts committed with respect
thereto, were not and are not derived from any activities that contravene any
applicable anti-money laundering or anti-bribery laws and regulations (including
funds being derived from any person, entity, country or territory on a Government
List or engaged in any unlawful activity defined under Title 18 of the United States
Code, Section 1956(c)(7)).

     SECTION 4.2 Covenants of the Buyer Prior to Closing.

          (a) Licenses and Permits.

     (i) The Buyer shall use all commercially reasonable and good faith efforts to
obtain the transfer of all Licenses and Permits (to the extent transferable) or the
issuance of new licenses and permits. The Buyer, at its cost and expense, shall
submit all necessary applications and other materials to the appropriate
Governmental Authority and take such other actions to effect the transfer of
Licenses and Permits or issuance of new licenses and permits, as of the Closing, and
the Seller shall use commercially reasonable efforts (at no cost or expense to the
Seller) to cooperate with the Buyer to cause the Licenses and Permits to be
transferred or new licenses and permits to be issued to the Buyer. It shall not be
a condition to the Closing hereunder that the Buyer has obtained any transfer of
Licenses or Permits or issuance of any new licenses or permits.

     (ii) Intentionally Omitted.

     (iii) The Seller and the Buyer acknowledge and agree that the Liquor Licensee
is currently an affiliate of the Buyer, and that any interest, beneficial or
otherwise, which the Seller may have in the Liquor License is being conveyed to the
Buyer as part of the Asset-Related Property. Promptly after the date hereof, the
Buyer shall (and to the extent required by law, the Seller shall at no material cost
or expense to Seller) execute and file with the appropriate state and/or local
alcoholic beverage agency and any other Governmental Authority that maintains
jurisdiction over liquor-related matters at the Hotel (the “Liquor
Authorities”) such filings, if any, as may be required by law to be filed by the
Seller and/or the Buyer with respect to the Liquor License in connection with the
transactions set forth in this Agreement. Notwithstanding anything to the contrary
contained herein, the Seller shall not incur any material cost or expense or any
liability in connection with the transfer of the Liquor License to the Buyer and no
representations or warranties shall be made by the Seller or its affiliates as to
such conveyance, except for any representations and warranties specifically set
forth herein. Without limitation on the foregoing, in no event shall the transfer
or assignment of the Liquor License be deemed or construed to be a condition to the
obligations of either the Seller or the Buyer hereunder.

19

 

          (b) Operating Agreements and Equipment Leases. To the extent any Operating Agreement
or Equipment Lease requires the consent of the vendor party for the assignment of such agreements
from the Seller to the Buyer, the Buyer shall use commercially reasonable good faith efforts to
obtain such consent as of the Closing, provided, in any event the Buyer shall assume all
Operating Agreements and Equipment Leases as of the Closing even if such consent has not been
obtained.

     SECTION 4.3 Employee Matters.

          (a) Employees. The Buyer acknowledges that the Employees are currently employed by an
affiliate of the Buyer. At the Closing, the Buyer shall (or shall cause its manager to) offer
employment at the Hotel to all of the Employees in accordance with the terms of subsection 4.3(b).

          (b) Continuity of Employees. The parties intend that there will be continuity of
employment with respect to all of the Employees. It is agreed that prior to, or in connection
with, the Closing, the Buyer shall take no action to cause the Seller or Manager to terminate the
employment of any Employee, and neither the Seller nor the Manager shall be under any obligation to
terminate any Employee prior to or on the Closing Date. It is further agreed that on or prior to
the Closing Date, the Buyer shall offer employment at the Hotel (or cause its manager to continue
employment of), commencing on the Closing Date to all Employees, including those on vacation, leave
of absence, disability or layoff, on the same terms and conditions (including, without limitation,
compensation, salary, employee benefits, job responsibility and descriptions, location, seniority
and deemed length of service) as those provided to such employees by Manager on the day immediately
preceding the Closing Date. Those Employees who accept the Buyer’s (or its manager’s) offer of
employment and commence (or continue) employment with the Buyer (or its manager) on the Closing
Date shall hereafter be referred to as “Transferred Employees.”

          (c) Indemnity. The Seller shall pay all wages, payroll taxes and fringe benefits
(including accrued vacation pay to the extent actually earned) as well as social security,
unemployment compensation, health, life and disability insurance and pension fund contributions, if
any, of the Employees through the Closing Date, provided, that, the Seller shall have no liability
or obligation to pay for any sick pay or accrued but unearned vacation pay. The Seller shall
indemnify, defend and hold the Buyer harmless from and against any and all claims, actions, suits,
demands, proceedings, losses, expenses, damages, obligations and liabilities (including costs of
collection, attorney’s fees and other costs of defense) made by an Employee to the extent relating
to an event occurring prior to or an obligation relating to a period prior to the Closing Date,
provided that such indemnity shall not apply with respect to any losses incurred by the Buyer with
respect to the amount of employee expenses that have been prorated under subsection 10.1(m) or such
matters for which Manager would be liable to the Seller under the Management Agreement. The Buyer
shall indemnify, defend and hold the Seller harmless from and against any and all claims, actions,
suits, demands, proceedings, losses, expenses, damages, obligations and liabilities (including
costs of collection, attorney’s fees and other costs of defense) arising out of or otherwise in
respect of (i) the termination of any Employees in connection with the transactions contemplated by
this Agreement; (ii) failure of the Buyer (or its manager) to continue the employment of any
Transferred Employee on the same terms and

20

 

conditions as said employee enjoys on the day immediately preceding the Closing Date; (iii) a
breach by the Buyer of the covenants set forth in subsection 4.3(b); (iv) failure of the Buyer to
comply with its obligations including, but not limited to, any statutory obligations with respect
to the Transferred Employees; (v) any claim made by any Employee for severance pay; or (vi) any
claim made by any Employee arising with respect to acts or omissions at the Property which acts or
omissions occurred on or after the Closing Date.

          (d) WARN Act. The Buyer (or its manager) shall not, at any time prior to 90 days
after the Closing Date, effectuate a “plant closing” or “mass layoff,” as those terms are defined
in the WARN Act, affecting in whole or in part any site of employment, facility, operating unit or
Employee, without notifying the Seller in advance and without complying with the notice
requirements and other provisions of the WARN Act. In addition, the Buyer shall provide a full
defense to, and indemnify the Seller for any Losses which the Seller may incur in connection with
any suit or claim of violation brought against or affecting the Seller under the WARN Act for any
actions taken by the Buyer (or its manager or any of its and Manager’s affiliates) with regard to
the Hotel or any Employee affected by this Agreement subsequent to the Closing Date.

          (e) Survival. The provisions of this Section 4.3 shall survive the Closing.

     SECTION
4.4 Bookings. The Buyer shall honor all existing Bookings and all other Bookings made in
accordance with this Agreement for any period on or after the Closing Date. The provisions of this
Section 4.4 shall survive the Closing.

     SECTION 4.5 Franchise Agreement.

          (a) The parties acknowledge that the transfer of the franchise rights granted under the
Franchise Agreement to the Buyer is subject to the prior written consent of Franchisor under the
Franchise Agreement. Immediately following the date of this Agreement, (i) the Seller shall
proceed promptly and in good faith to give the notices required under the Franchise Agreement with
respect to the transactions contemplated hereby and (ii) the Buyer shall proceed promptly and in
good faith to effect the consent of Franchisor to the transfer of such franchise rights to the
Buyer, which may require the execution of a new franchise agreement with Franchisor. Accordingly,
the Buyer shall promptly submit to Franchisor a complete application to become a franchisee of
Franchisor’s franchise system accompanied by payment of the applicable application fee. As part of
the application process, the Buyer shall provide any and all information and documentation that
Franchisor requires (including, without limitation, financial statements, organizational documents,
background information regarding the owners of the Buyer and other documentation supporting its
application). Without limiting the foregoing, the Buyer shall use commercially reasonable efforts
to obtain the consent of the Franchisor to the transfer of the franchise rights and a new franchise
agreement in place of the Franchise Agreement, which may entail promptly responding to requests
from Franchisor and otherwise promptly complying with all obligations of a transferee under the
Franchise Agreement. The Seller agrees to reasonably cooperate, at no cost, in good faith with the
Buyer and Franchisor in such process. The Buyer shall agree with Franchisor to accept and be bound
by any property improvement plan required by Franchisor in connection with obtaining such consent
(which may consist of the property improvement plan currently incorporated into the Franchise
Agreement,

21

 

and to complete such property improvement plan within the time periods set forth in such
property improvement plan. In connection with the transfer of the franchise rights, the Buyer
shall be required to pay any and all fees and charges associated therewith (including, without
limitation, any transfer fee mandated under the Franchise Agreement).

          (b) If Franchisor has not agreed to terminate the Franchise Agreement and enter into a new
franchise agreement with the Buyer by the then scheduled Closing Date, the Closing Date shall be
extended to a date that is the earlier of (i) ten Business Days after receipt of such agreement and
(ii) July 3, 2007 (the “Outside Closing Date”). In the event Franchisor has not delivered
such new franchise agreement by the Outside Closing Date, the Buyer and the Seller shall each have
the option to terminate this Agreement by written notice to the other party (the “Termination
Option”). In the event the Termination Option is elected by either the Seller or the Buyer,
this Agreement shall terminate and provided the Buyer is not in default of any of its obligations
pursuant to subsection 4.5(a) or otherwise, the Earnest Money shall be refunded to the Buyer and
neither party shall have any further rights or obligations hereunder except for those that
expressly survive the termination of this Agreement.

     SECTION 4.6 Manager Defaults. The Buyer acknowledges that an affiliate of the Buyer is Manager and
that the Buyer is knowledgeable about the Asset. Notwithstanding anything to the contrary
contained herein, (a) the Buyer agrees that the Seller shall have no liability under this Agreement
for a breach hereof, including without limitation, any breach under Sections 3.2 and 3.4, to the
extent such breach was caused by an act or omission of Manager (other than such acts taken by
Manager at the specific direction of the Seller) and any such act or omission shall not serve as a
basis for the Buyer failing to close on the purchase of the Assets in accordance with the terms of
this Agreement or any recourse against the Seller and (b) to the extent Manager has actual
knowledge of any inaccuracy or breach of any representation or warranty of the Seller contained in
this Agreement, such knowledge shall be imputed to the Buyer and the Buyer shall be precluded from
asserting a failure of the condition set forth in subsection 5.2(a) related thereto as it relates
to the representations and warranties made by the Seller in this Agreement as of the date hereof
(but not as the same are re-made as of the Closing pursuant to this Agreement). The provisions of
this Section 4.6 shall survive the Closing.

SECTION 4.7 Tax Clearance Certificates

          (a) The Seller shall promptly after the execution of this Agreement file the Application for
Tax Clearance Certification, Georgia Department of Revenue, Taxpayer Services Division, Form
TSD-10, in order to apply for, and shall thereafter use commercially reasonable efforts to obtain
and deliver to the Buyer and the Title Company on or prior to the Closing, municipal, state and
county tax clearance certificates or letters demonstrating the payment of all tax liabilities
which, if unpaid, could impose successor liability on the Buyer (“Tax Clearance
Certificates”). To the extent the Seller is unable to deliver such Tax Certificates on or
prior to the Closing, the Seller shall use commercially reasonable efforts to obtain such
certificates as soon as practicable following the Closing. The Seller shall be liable for the
payment of all amounts which may be required to be paid to obtain all Tax Clearance Certificates.
The Seller shall indemnify, defend and hold the Buyer harmless from and against (x) any and all
amounts which may be required to be paid to obtain all Tax Clearance Certificates and (y) any
claims or other liabilities arising out of the Seller’s failure to obtain all such Tax Clearance
Certificates, each to

22

 

the extent due with respect to the operation of the Hotel prior to the Closing. The
provisions of this subsection 4.7(a) shall survive the Closing.

          (b) The Buyer acknowledges and agrees that the delivery of the Tax Clearance Certificates by
the Seller pursuant to this Section 4.7 or any matters disclosed therein shall not be a condition
precedent to the obligation of the Buyer to purchase and pay for the Asset in accordance with the
terms of this Agreement. Notwithstanding the foregoing, to the extent such matters are raised as
exceptions to the Title Policy, the Seller shall deliver such affidavits or indemnities as
reasonably required by the Title Company to omit such matters from the Title Policy.

ARTICLE V.

CONDITIONS PRECEDENT TO CLOSING

     SECTION 5.1 Conditions Precedent to the Seller’s Obligations. The obligation of the Seller to
consummate the transfer of the Asset to the Buyer on the Closing Date is subject to the
satisfaction (or waiver by the Seller) as of the Closing of the following conditions:

          (a) Each of the representations and warranties made by the Buyer in this Agreement shall be
true and correct in all material respects when made and on and as of the Closing Date as though
such representations and warranties were made on and as of the Closing Date, subject to any changes
permitted pursuant to this Agreement.

          (b) The Buyer shall have performed or complied in all material respects with each obligation
and covenant required by this Agreement to be performed or complied with by the Buyer on or before
the Closing.

          (c) No order or injunction of any court or administrative agency of competent jurisdiction nor
any statute, rule, regulation or executive order promulgated by any Governmental Authority of
competent jurisdiction shall be in effect as of the Closing which restrains or prohibits the
transfer of the Asset or the consummation of any other transaction contemplated hereby.

          (d) The Seller shall have received all of the documents required to be delivered by the Buyer
under subsection 6.1(a).

          (e) The Seller shall have received the Purchase Price in accordance with subsection 2.2(a) and
all other amounts due to the Seller from the Buyer hereunder.

          (f) The Seller shall have received evidence that (i) Franchisor has consented to the transfer
of the franchise rights associated with the Franchise Agreement in accordance with subsection
4.5(a), and (ii) the Seller and any affiliates thereof have been released by Franchisor pursuant to
such release as contemplated by the Franchise Agreement.

23

 

          (g) Manager shall have agreed to the termination of the Management Agreement without any
termination fee, penalty or damages being payable by Seller or its affiliates.

     SECTION 5.2 Conditions to the Buyer’s Obligations. The obligation of the Buyer to purchase and pay for
the Asset is subject to the satisfaction (or waiver by the Buyer) as of the Closing of the
following conditions:

          (a) Each of the representations and warranties made by the Seller in this Agreement shall be
true and correct in all material respects when made and on and as of the Closing Date as though
such representations and warranties were made on and as of Closing Date subject to (i) the Seller’s
right to cure the same prior to the Closing as expressly provided in this Agreement, (ii) any
changes permitted pursuant to this Agreement, and (iii) any changes relating to matters arising
after the date hereof in connection with the representations and warranties as set forth in
subsections 3.2(e) and 3.2(g).

          (b) The Seller shall have performed or complied in all material respects with each obligation
and covenant required by this Agreement to be performed or complied with by the Seller on or before
the Closing.

          (c) No order or injunction of any court or administrative agency of competent jurisdiction nor
any statute, rule, regulation or executive order promulgated by any Governmental Authority of
competent jurisdiction shall be in effect as of the Closing which restrains or prohibits the
transfer of the Asset or the consummation of any other transaction contemplated hereby.

          (d) Title to the Property shall be delivered to the Buyer in the manner required under Section
8.1.

          (e) The Buyer shall have received all of the documents required to be delivered by the Seller
under Section 6.2, and all of the consents set forth on Schedule 3.1(c) shall have been
obtained.

          (f) Franchisor shall have issued a new franchise agreement to the Buyer in accordance with
Section 4.5(a).

     SECTION 5.3 Waiver of Conditions Precedent. The Closing shall constitute conclusive evidence that the
Seller and the Buyer have respectively waived any conditions which are not satisfied as of the
Closing.

ARTICLE VI.

CLOSING DELIVERIES

SECTION 6.1 The Buyer Closing Deliveries.

          The Buyer shall deliver the following documents at Closing:

24

 

          (a) with respect to the Asset:

     (i) an assignment and assumption of the Seller’s interest in the Tenant Leases
(an “Assignment of Leases”) duly executed by the Buyer in substantially the
form of Exhibit A attached hereto;

     (ii) an assignment and assumption of the Operating Agreements, Equipment Leases
and Bookings (an “Assignment of Contracts”) duly executed by the Buyer in
substantially the form of Exhibit B attached hereto; and

     (iii) a certificate of Buyer, substantially in the form of Exhibit J
(the “Buyer’s Representation Certificate”) that the representations and
warranties of Buyer set forth in Section 4.1 hereof are true and correct in all
material respects as of the Closing Date, subject to changes occurring in accordance
with this Agreement disclosed in such certificate.

          (b) with respect to the transactions contemplated hereunder:

     (i) a duly executed and sworn officer’s certificate from the Buyer (or the
general partner or managing member of the Buyer, where appropriate) certifying that
the Buyer has taken all necessary action to authorize the execution of all documents
being delivered hereunder and the consummation of all of the transactions
contemplated hereby and that such authorization has not been revoked, modified or
amended;

     (ii) an executed and acknowledged incumbency certificate from the Buyer (or the
general partner or managing member of the Buyer, where appropriate) certifying the
authority of the officers of the Buyer (or the general partner or managing member of
the Buyer, where appropriate) to execute this Agreement and the other documents
delivered by the Buyer to the Seller at the Closing;

     (iii) all transfer tax returns which are required by law and the regulations
issued pursuant thereto in connection with the payment of all state or local real
property transfer taxes that are payable or arise as a result of the consummation of
the transactions contemplated by this Agreement, in each case, as prepared and
approved by the Seller and the Buyer and duly executed by the Buyer;

     (iv) an affidavit of the Buyer regarding commercial real estate brokers, in the
form attached as Exhibit H hereto; and

     (v) a closing statement prepared and approved by the Seller and the Buyer,
consistent with the terms of this Agreement.

     SECTION 6.2 The Seller Closing Deliveries.

          The Seller shall deliver the following documents at Closing:

25

 

          (a) with respect to the Asset:

     (i) a limited warranty deed (a “Deed”) in substantially the form of
Exhibit C attached hereto and in recordable form in Georgia, duly executed and
acknowledged by the Seller, and if the legal description of the Land drawn from any
new boundary line survey of the Land prepared by Buyer differs from the legal
description contained on Schedule A hereto, then, if requested by the Buyer and in
addition to the Deed, Seller shall execute and deliver a quitclaim deed in the form
of Exhibit L attached hereto based on the legal description drawn from the new
survey of the Land prepared for Buyer;

     (ii) a bill of sale (a “Bill of Sale”) duly executed by the Seller in
substantially the form of Exhibit D attached hereto, transferring the FF&E,
Property and Equipment, Inventories, Retail Merchandise, Books and Records,
Miscellaneous Personal Property and Accounts Receivable to the Buyer;

     (iii) the Assignment of Leases duly executed by the Seller, together with a
copies, and if available, originals of the Tenant Leases referred to in such
assignment;

     (iv) the Assignment of Contracts duly executed by the Seller, together with
copies, and if available, originals of all contracts and agreements assigned
thereby;

     (v) a general assignment of the Licenses and Permits and Intangible Property
(the “Assignment of Intangibles”) duly executed by the Seller in
substantially the form of Exhibit E attached hereto;

     (vi) all keys and keycards in the Seller’s possession and security and access
codes to the Property;

     (vii) an affidavit that the Seller is not a “foreign person” within the meaning
of the Foreign Investment in Real Property Tax Act of 1980, as amended, in
substantially the form of Exhibit F attached hereto (the “FIRPTA”);

     (viii) a closing statement prepared and approved by the Seller and the Buyer,
consistent with the terms of this Agreement;

     (ix) all Books and Records and receipts in the Seller’s possession relating to
the ownership, operating and management of the Hotel;

     (x) the title affidavits and documents referred to in Section 8.4;

     (xi) evidence reasonably acceptable to the Title Company, to the extent
required, of the termination of the Management Agreement;

     (xii) affidavits or certifications required to exempt Seller from the State of
Georgia withholding tax, and the Georgia State withholding tax requirements

26

 

on non-residents contained in O.C.G.A. §48-7-128 and the regulations
promulgated thereunder, or if Seller is not exempt from such withholding tax
requirements, Buyer shall be permitted to withhold from the Purchase Price paid to
Seller such amounts as are required to be withheld pursuant to such statute and
regulations, and Seller shall deliver to Buyer such standard form affidavits or
certificates as are required to determine the amount to be withheld (all such
affidavits or certificates delivered to Buyer pursuant to this subsection, the
“Georgia Residency Affidavits”);

     (xiii) an affidavit of the Seller regarding commercial real estate brokers, in
the form of Exhibit H attached hereto; and

     (xiv) a certificate of Seller substantially in the form of Exhibit K
(“Seller’s Representation Certificate”) that the representations and
warranties of Seller set forth in Sections 3.1 and 3.2 hereof are true and correct
in all material respects as of the Closing Date subject to changes occurring in
accordance with this Agreement disclosed in such certificate.

          (b) with respect to the transactions contemplated hereunder:

     (i) a duly executed and sworn officer’s certificate from the general partner of
the Seller certifying that the Seller has taken all necessary action to authorize
the execution of all documents being delivered hereunder and the consummation of all
of the transactions contemplated hereby and that such authorization has not been
revoked, modified or amended;

     (ii) an executed and acknowledged incumbency certificate from the general
partner of the Seller certifying the authority of the officers of the general
partner of the Seller to execute this Agreement and the other documents delivered by
the Seller to the Buyer at the Closing;

     (iii) intentionally omitted

     (iv) all transfer tax returns which are required by law and the regulations
issued pursuant thereto that are required as a result of the consummation of the
transactions contemplated by this Agreement, in each case, as prepared and approved
by the Seller and the Buyer and duly executed by the Seller.

ARTICLE VII.

INSPECTIONS; RELEASE

          SECTION 7.1 Right of Inspection. Prior to the Closing, the Buyer and its agents shall have the right,
upon reasonable prior written notice to the Seller (which shall in any event be at least 24 hours
in advance) and at the Buyer’s sole cost, risk and expense, to inspect the Property during business
hours, provided that any such inspection shall not unreasonably impede the

27

 

normal day to day business operation of the Property, and provided further that the Seller shall be
entitled to accompany the Buyer and its agents on such inspection. Notwithstanding the foregoing,
the Buyer shall not have the right to do any invasive testing of the Property without the prior
written consent of the Seller which may be granted or denied in the Seller’s sole and absolute
discretion. The Seller shall be entitled to accompany the Buyer and its agents on any such
permitted interviews and testing. The Buyer’s right of inspection of the Property shall be subject
to the rights of the tenants and Hotel guests and the rights of Manager under the Management
Agreement. Prior to any such inspection, the Buyer shall deliver to the Seller certificates
reasonably satisfactory to the Seller evidencing that the Buyer’s consultants and agents carry and
maintain such general liability insurance policies with such companies and in such scope and
amounts as are acceptable to the Seller in its reasonable discretion, in all cases naming the
Seller as an additional insured and loss payee thereunder. The Buyer hereby indemnifies and agrees
to defend and hold the Seller harmless from and against all loss, cost (including, without
limitation, reasonable attorneys’ fees), claim or damage arising out of, resulting from relating to
or in connection with or from any such inspection by the Buyer or its agents, except to the extent
such claim or damage was caused solely by the Seller or the Seller’s agents. The provisions of
this Section 7.1 shall survive the Closing and any termination of this Agreement. Notwithstanding
the foregoing rights to inspect, the Buyer acknowledges that there is no “due diligence period” or
“due diligence termination right” in this Agreement and the Buyer does not have the right to
terminate this Agreement based on the results of such inspections other than pursuant to an express
termination right set forth in this Agreement.

     SECTION 7.2 Examination; No Contingencies.

          (a) Before entering into this Agreement, the Buyer has made such examination of the Asset and
all other matters affecting or relating to the transactions contemplated hereunder as the Buyer has
deemed necessary. In entering into this Agreement, the Buyer has not been induced by and has not
relied upon any written or oral representations, warranties or statements, whether express or
implied, made by the Seller or any partner of the Seller, or any affiliate, agent, employee, or
other representative of any of the foregoing or by any broker or any other person representing or
purporting to represent the Seller with respect to the Asset, the Condition of the Asset or any
other matter affecting or relating to the transactions contemplated hereby, other than those
expressly set forth in this Agreement or in the Closing Documents. The Buyer’s obligations under
this Agreement shall not be subject to any contingencies, diligence or conditions except as
expressly set forth in this Agreement or in the Closing Documents. The Buyer acknowledges and
agrees that, except as expressly set forth herein or in the Closing Documents, the Seller makes no
representations or warranties whatsoever, whether express or implied or arising by operation of
law, with respect to the Asset or the Condition of the Asset. THE BUYER AGREES THAT THE ASSET WILL
BE SOLD AND CONVEYED TO (AND ACCEPTED BY) THE BUYER AT THE CLOSING IN THE THEN EXISTING CONDITION
OF THE ASSET, AS IS, WHERE IS, WITH ALL FAULTS, AND WITHOUT ANY WRITTEN OR VERBAL REPRESENTATIONS
OR WARRANTIES WHATSOEVER, WHETHER EXPRESS OR IMPLIED OR ARISING BY OPERATION OF LAW, OTHER THAN AS
EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN THE CLOSING DOCUMENTS. Without limiting the generality
of the foregoing, except as set forth in this Agreement or in the Closing Documents, the
transactions contemplated by this Agreement are without statutory, express or implied warranty,
representation, agreement, statement or

28

 

expression of opinion of or with respect to the Condition of the Asset or any aspect thereof,
including, without limitation, (i) any and all statutory, express or implied representations or
warranties related to the suitability for habitation, merchantability, or fitness for a particular
purpose, (ii) any statutory, express or implied representations or warranties created by any
affirmation of fact or promise, by any description of the Asset or by operation of law and (iii)
all other statutory, express or implied representations or warranties by the Seller whatsoever.
The Buyer acknowledges that the Buyer has knowledge and expertise in financial and business matters
that enable the Buyer to evaluate the merits and risks of the transactions contemplated by this
Agreement.

          (b) For purposes of this Agreement, the term “Condition of the Asset” means the
following matters:

     (i) Physical Condition of the Property. The quality, nature and
adequacy of the physical condition of the Property, including, without limitation,
the quality of the design, labor and materials used to construct the improvements
included in the Property; the condition of structural elements, foundations, roofs,
glass, mechanical, plumbing, electrical, HVAC, sewage, and utility components and
systems; the capacity or availability of sewer, water, or other utilities; the
geology, flora, fauna, soils, subsurface conditions, groundwater, landscaping, and
irrigation of or with respect to the Property, the location of the Property in or
near any special taxing district, flood hazard zone, wetlands area, protected
habitat, geological fault or subsidence zone, hazardous waste disposal or clean-up
site, or other special area, the existence, location, or condition of ingress,
egress, access, and parking; the condition of the personal property and any
fixtures; and the presence of any asbestos or other Hazardous Materials, dangerous,
or toxic substance, material or waste in, on, under or about the Property and the
improvements located thereon. “Hazardous Materials” means (A) those
substances included within the definitions of any one or more of the terms
“hazardous substances,” “toxic pollutants”, “hazardous materials”, “toxic
substances”, and “hazardous waste” in the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. § 9601 et seq. (as amended), the Hazardous
Materials Transportation Act, as amended, 49 U.S.C. Sections 1801 et seq., the
Resource Conservation and Recovery Act of 1976 as amended, 42 U.S.C. Section 6901 et
seq., Section 311 of the Clean Water Act, 15 U.S.C. § 2601 et seq., 33 U.S.C. §
1251 et seq., 42 U.S.C. 7401 et seq. and the regulations and publications issued
under any such laws, (B) petroleum, radon gas, lead based paint, asbestos or
asbestos containing material and polychlorinated biphenyls and (C) mold or water
conditions which may exist at the Property or other matters governed by any
applicable federal, state or local law or statue.

     (ii) Adequacy of the Asset. The economic feasibility, cash flow and
expenses of the Asset, and habitability, merchantability, fitness, suitability and
adequacy of the Property for any particular use or purpose.

     (iii) Legal Compliance of the Asset. The compliance or non-compliance
of the Seller or the operation of the Property or any part thereof in

29

 

accordance with, and the contents of, (A) all codes, laws, ordinances,
regulations, agreements, licenses, permits, approvals and applications of or with
any governmental authorities asserting jurisdiction over the Property, including,
without limitation, those relating to zoning, building, public works, parking, fire
and police access, handicap access, life safety, subdivision and subdivision sales,
and Hazardous Materials, dangerous, and toxic substances, materials, conditions or
waste, including, without limitation, the presence of Hazardous Materials in, on,
under or about the Property that would cause state or federal agencies to order a
clean up of the Property under any applicable legal requirements and (B) all
agreements, covenants, conditions, restrictions (public or private), condominium
plans, development agreements, site plans, building permits, building rules, and
other instruments and documents governing or affecting the use, management, and
operation of the Property.

     (iv) Matters Disclosed in the Schedules and the Asset File. Those
matters referred to in this Agreement and the documents listed on the Schedules
attached hereto and the matters disclosed in the Asset File.

     (v) Insurance. The availability, cost, terms and coverage of
liability, hazard, comprehensive and any other insurance of or with respect to the
Property.

     (vi) Condition of Title. The condition of title to the Property,
including, without limitation, vesting, legal description, matters affecting title,
title defects, liens, encumbrances, boundaries, encroachments, mineral rights,
options, easements, and access; violations of restrictive covenants, zoning
ordinances, setback lines, or development agreements; the availability, cost, and
coverage of title insurance; leases, rental agreements, occupancy agreements, rights
of parties in possession of, using, or occupying the Property; and standby fees,
taxes, bonds and assessments.

     SECTION
7.3     RELEASE. THE BUYER HEREBY AGREES THAT THE SELLER, AND EACH OF THEIR PARTNERS, MEMBERS,
TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES, PROPERTY MANAGERS, ASSET MANAGERS,
AGENTS, ATTORNEYS, AFFILIATES AND RELATED ENTITIES, HEIRS, SUCCESSORS, AND ASSIGNS (COLLECTIVELY,
THE “RELEASEES”) SHALL BE, AND ARE HEREBY, FULLY AND FOREVER RELEASED AND DISCHARGED FROM
ANY AND ALL LIABILITIES, LOSSES, CLAIMS (INCLUDING THIRD PARTY CLAIMS), DEMANDS, DAMAGES (OF ANY
NATURE WHATSOEVER), CAUSES OF ACTION, COSTS, PENALTIES, FINES, JUDGMENTS, REASONABLE ATTORNEYS’
FEES, CONSULTANTS’ FEES AND COSTS AND EXPERTS’ FEES (COLLECTIVELY, THE “CLAIMS”) WITH
RESPECT TO ANY AND ALL CLAIMS, WHETHER DIRECT OR INDIRECT, KNOWN OR UNKNOWN, FORESEEN OR
UNFORESEEN, THAT MAY ARISE ON ACCOUNT OF OR IN ANY WAY BE CONNECTED WITH THE ASSET OR THE PROPERTY
INCLUDING, WITHOUT LIMITATION, THE PHYSICAL, ENVIRONMENTAL AND STRUCTURAL CONDITION OF THE PROPERTY
OR ANY LAW OR REGULATION APPLICABLE THERETO, INCLUDING, WITHOUT LIMITATION, ANY CLAIM OR MATTER
(REGARDLESS OF WHEN IT FIRST APPEARED) RELATING TO OR ARISING FROM (A)

30

 

THE PRESENCE OF ANY ENVIRONMENTAL PROBLEMS, OR THE USE, PRESENCE,
STORAGE, RELEASE, DISCHARGE, OR MIGRATION OF HAZARDOUS MATERIALS ON,
IN, UNDER OR AROUND THE PROPERTY REGARDLESS OF WHEN SUCH HAZARDOUS
MATERIALS WERE FIRST INTRODUCED IN, ON OR ABOUT THE PROPERTY, (B) ANY
PATENT OR LATENT DEFECTS OR DEFICIENCIES WITH RESPECT TO THE
PROPERTY, (C) ANY AND ALL MATTERS RELATED TO THE PROPERTY OR ANY
PORTION THEREOF, INCLUDING WITHOUT LIMITATION, THE CONDITION AND/OR
OPERATION OF THE PROPERTY AND EACH PART THEREOF, AND (D) THE
PRESENCE, RELEASE AND/OR REMEDIATION OF ASBESTOS AND ASBESTOS
CONTAINING MATERIALS IN, ON OR ABOUT THE PROPERTY REGARDLESS OF WHEN
SUCH ASBESTOS AND ASBESTOS CONTAINING MATERIALS WERE FIRST INTRODUCED
IN, ON OR ABOUT THE PROPERTY, PROVIDED, HOWEVER, THAT IN NO EVENT
SHALL RELEASEES BE RELEASED FROM (X) ANY CLAIMS ARISING PURSUANT TO
THE PROVISIONS OF THIS AGREEMENT OR THE SELLER’S OBLIGATIONS, IF ANY,
UNDER THE CLOSING DOCUMENTS OR (Y) ANY CLAIMS ARISING FROM ANY
FRAUDULENT ACTS COMMITTED BY THE SELLER TO THE BUYER IN CONNECTION
WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. THE BUYER
FURTHER AGREES THAT THE WAIVERS AND RELEASES HEREIN HAVE BEEN
NEGOTIATED AND AGREED UPON IN LIGHT OF THAT REALIZATION AND THAT THE
BUYER NEVERTHELESS HEREBY INTENDS TO RELEASE, DISCHARGE AND ACQUIT
THE SELLER FROM ANY SUCH UNKNOWN CLAIMS, DEBTS, AND CONTROVERSIES
WHICH MIGHT IN ANY WAY BE INCLUDED AS A MATERIAL PORTION OF THE
CONSIDERATION GIVEN TO THE SELLER BY THE BUYER IN EXCHANGE FOR THE
SELLER’S PERFORMANCE HEREUNDER. THE SELLER HAS GIVEN THE BUYER
MATERIAL CONCESSIONS REGARDING THIS TRANSACTION IN EXCHANGE FOR THE
BUYER AGREEING TO THE PROVISIONS OF THIS SECTION 7.3. THE SELLER AND
THE BUYER HAVE EACH INITIALED THIS SECTION 7.3 TO FURTHER INDICATE
THEIR AWARENESS AND ACCEPTANCE OF EACH AND EVERY PROVISION HEREOF.
THE PROVISIONS OF THIS SECTION 7.3 SHALL SURVIVE THE CLOSING AND
SHALL NOT BE DEEMED MERGED INTO ANY INSTRUMENT OR CONVEYANCE
DELIVERED AT THE CLOSING.  SELLER’S INITIALS:              BUYER’S INITIALS:            

ARTICLE VIII.

TITLE AND PERMITTED EXCEPTIONS

     SECTION 8.1 Title Insurance and Survey.

          The Property shall be sold and is to be conveyed, and the Buyer agrees to purchase the
Property, subject only to the Permitted Exceptions.

     SECTION 8.2 Title Commitment; Survey.

31

 

          The Buyer has received and reviewed a copy of the Title Commitment and the Existing Survey.

     SECTION 8.3 Delivery of Title.

          (a) At or prior to the Closing, the Seller shall obtain releases of (i) all deeds to secure
debts and/or mortgage liens and other financing items encumbering the Asset (“Financing
Liens”), (ii) tax liens (other than liens for taxes not yet due and payable) encumbering the
Property (“Tax Liens”) and (iii) any liens encumbering the Property affirmatively placed on
the Property by the Seller on or after March 25, 2007 (“Post Effective Date Seller
Encumbrance”). Other than as set forth in this Agreement (including without limitation the
first sentence of this subsection 8.3(a), and subsection 8.3(c)), the Seller shall not be required
to take or bring any action or proceeding or any other steps to remove any title exception or to
expend any moneys therefor, nor shall the Buyer have any right of action against the Seller, at law
or in equity, for the Seller’s inability to convey title subject only to the Permitted Exceptions.

          (b) Subject to the Seller’s obligations under subsections 8.3(a) and 8.3(c), in the event that
the Seller is unable to convey title subject only to the Permitted Exceptions, and the Buyer has
not, prior to the Closing Date, given notice to the Seller that the Buyer is willing to waive
objection to each title exception which is not a Permitted Exception, the Seller shall have the
right, in the Seller’s sole and absolute discretion, to (i) take such action as the Seller shall
deem advisable to attempt to discharge each such title exception which is not a Permitted Exception
or (ii) terminate this Agreement. In the event that the Seller shall elect to attempt to discharge
such title exceptions which are not Permitted Exceptions, the Seller shall proceed to attempt to
discharge such title exceptions diligently and in good faith and for so long as it is so attempting
to discharge such title objections shall be entitled to one or more adjournments of the Closing
Date for a period not to exceed 60 days in the aggregate. If, for any reason whatsoever, the
Seller has not discharged such title exceptions which are not Permitted Exceptions prior to the
expiration of the last of such adjournments, and if the Buyer is not willing to waive objection to
such title exceptions, this Agreement shall be terminated as of the expiration of the last of such
adjournments. In the event of a termination of this Agreement pursuant to this subsection 8.3(b),
the Earnest Money shall be refunded to the Buyer and neither party shall have any further rights or
obligations hereunder except for those that expressly survive the termination of this Agreement.
Nothing in this clause (b) shall require the Seller, despite any election by the Seller to attempt
to discharge any title exceptions, to take or bring any action or proceeding or any other steps to
remove any title exception or to expend any moneys therefor, other than with respect to the Post
Effective Date Seller Encumbrance, the Post Effective Date Monetary Encumbrance, Financing Liens
and Tax Liens.

          (c) Notwithstanding the foregoing, at the Closing, in addition to releasing all Financing
Liens, Tax Liens and Post Effective Date Seller Encumbrances which the Buyer does not waive its
objection to pursuant to Section 8.3(b), the Seller shall obtain a release of any lien encumbering
the Property on or after March 25, 2007 which may be removed by the payment of a sum of money (a
“Post Effective Date Monetary Encumbrances”); provided that Seller shall not be obligated
to spend more than $250,000 in the aggregate to remove any Post-Effective Date Monetary
Encumbrances.

32

 

     SECTION 8.4 Cooperation. In connection with obtaining the Title Policy, the Buyer and the Seller, as
applicable, and to the extent requested by the Title Company, will deliver to the Title Company (a)
evidence sufficient to establish (i) the legal existence of the Buyer and the Seller and their
respective signatories and (ii) the authority of the respective signatories of the Seller and the
Buyer to bind the Seller and the Buyer, as the case may be, (b) certificates of good standing of
the Seller in Delaware and, if applicable, Georgia; and (c) the affidavits of the Seller in the
forms attached hereto as Exhibit G.

ARTICLE IX.

TRANSACTION COSTS; RISK OF LOSS

     SECTION 9.1 Transaction Costs.

          (a) The Buyer and the Seller agree to comply with all real estate transfer tax laws applicable
to the sale of the Asset. At Closing, the Seller shall pay the applicable documentary transfer
taxes as a result of the conveyance of the Asset to Buyer pursuant to this Agreement. In addition
to their respective apportionment obligations hereunder, (i) the Seller and the Buyer shall each be
responsible for the payment of the costs of their respective legal counsel, advisors and other
professionals employed thereby in connection with the sale of the Asset, and (ii) the Buyer shall
be responsible for all costs and expenses associated with (A) the Buyer’s due diligence, (B) any
extended coverage or endorsements to the Title Policy, (C) the policy premiums in respect of any
mortgage title insurance obtained by the Buyer, (D) all costs for any new survey and search costs
with respect to the Property and updates related thereto, (E) payment, at the Closing, of the
recording charges and fees (other than deed recordation taxes) for the documents necessary to
transfer the Asset, (F) obtaining any financing the Buyer may elect to obtain (including any fees,
financing costs, transfer taxes, mortgage and recordation taxes and intangible taxes in connection
therewith), and (G) all other costs which are the responsibility under applicable law for the Buyer
to pay (including, without limitation, all sales and use taxes due as a result of the sale of the
Asset). Seller shall pay the basic policy premium with respect to the Title Policy. Seller shall
be entitled to receive at Closing any title policy reissue credits applicable to the issuance of
the Title Policy. The fees, if any, of the Escrow Agent shall be equally divided between the
Seller and the Buyer.

          (b) Each party to this Agreement shall indemnify the other parties and their respective
successors and assigns from and against any and all loss, damage, cost, charge, liability or
expense (including court costs and reasonable attorneys’ fees) which such other party may sustain
or incur as a result of the failure of either party to timely pay any of the aforementioned taxes,
fees or other charges for which it has assumed responsibility under this Section. The provisions
of this Article IX shall survive the Closing or the termination of this Agreement.

     SECTION 9.2 Risk of Loss.

          (a) If, on or before the Closing Date, (i) the Property or any portion thereof shall be
damaged or destroyed by fire or other casualty or (ii) any Governmental Authority or

33

 

other entity having condemnation authority shall take the property or any portion thereof or
institute an eminent domain proceeding by delivering written notice thereof to the Seller and the
same is not dismissed prior to the Closing, then the Seller shall promptly notify the Buyer and at
Closing, the Seller will credit against the Purchase Price payable by the Buyer at the Closing an
amount equal to the net proceeds (other than on account of business or rental interruption relating
to the period prior to Closing), if any, received by the Seller on or prior to the Closing as a
result of such casualty or condemnation, plus the amount of any deductible, less any amounts spent
to restore the Property. If as of the Closing Date, the Seller has not received all or any portion
of such insurance or condemnation proceeds, then the parties shall nevertheless consummate on the
Closing Date the conveyance of the Asset (without any credit for such as yet unpaid insurance or
condemnation proceeds except for a credit for any deductible under such insurance) and the Seller
will at Closing assign to the Buyer all rights of the Seller, if any, to the insurance or
condemnation proceeds (other than on account of business or rental interruption relating to the
period prior to Closing but including all business or rental interruption relating to the period on
or after Closing) and to all other rights or claims arising out of or in connection with such
casualty or condemnation and the Buyer may notify all appropriate insurance companies of its
interest in the insurance proceeds.

          (b) Notwithstanding the provisions of subsection 9.2(a), if, on or before the Closing Date,
the Property or any portion thereof shall be (i) damaged or destroyed by a Material Casualty or
(ii) taken as a result of a Material Condemnation, the Buyer shall have the right, exercised by
notice to the Seller no more than ten Business Days after the Buyer has received notice of such
Material Casualty or Material Condemnation, to terminate this Agreement, in which event the Earnest
Money shall be refunded to the Buyer and neither party shall have any further rights or obligations
hereunder other than those which expressly survive the termination of this Agreement. If the Buyer
fails to timely terminate this Agreement in accordance with this subsection 9.2(b), the provisions
of subsection 9.2(a) shall apply. As used in this subsection 9.2(b), a “Material Casualty”
shall mean any damage to the Property or any portion thereof by fire or other casualty that, in the
Seller’s reasonable judgment, may be expected to cost in excess of $4,100,000 to repair. As used
in this subsection 9.2(b), a “Material Condemnation” shall mean a taking of the Property or
any material portion thereof as a result of a condemnation or eminent domain proceeding or the
institution of such proceeding pursuant to a written notice thereof to the Seller that, permanently
impairs the use and value of the Property, and which can not be restored to substantially the same
use and value as before the taking.

          (c) Subject to the provisions of this Section 9.2, the risk of loss or damage to the Property
shall remain with the Seller until delivery of the Deed.

ARTICLE X.

ADJUSTMENTS

     SECTION 10.1 Adjustments. Except as otherwise specifically provided in subsection 10.1(m), the Seller
shall be responsible for and shall pay (or credit the Buyer for) all liabilities, including,
without limitation, all real property, personal property and sales and use taxes, which accrue with
respect to the Asset with respect to all periods prior to the Closing and

34

 

the Buyer shall be responsible for and shall pay all liabilities, including without limitation all real
property, personal property and sales and use taxes, which accrue with respect to the Asset with
respect to all periods from and after the Closing. Unless otherwise provided below, the following
are to be adjusted and prorated between the Seller and the Buyer as of 11:59 P.M. on the day
preceding the Closing (the “Cut-Off Time”), based upon a 365 day year, and the net amount
thereof under Section 10.1 shall be added to (if such net amount is in the Seller’s favor) or
deducted from (if such net amount is in the Buyer’s favor) the Purchase Price payable at Closing:

          (a) Taxes and Assessments. All real estate and personal property taxes and
assessments (including, without limitation, special assessments and improvement assessments) levied
against the Asset shall be prorated as of the Cut-Off Time between the Buyer and the Seller. If
the amount of any such taxes is not ascertainable on the Closing Date, the proration for such taxes
shall be estimated based on the most recent available bill; provided, however, that
after the Closing, the Seller and the Buyer shall reprorate the taxes and pay any deficiency in the
original proration to the other party promptly upon receipt of the actual bill for the relevant
taxable period. In the event that the Asset or any part thereof shall be or shall have been
affected by an assessment or assessments which are payable in installments, the Seller shall, at
the Closing, be responsible for any installments due prior to the Closing and the Buyer shall be
responsible for any installments due on or after the Closing, provided that such assessments shall
in any event be prorated between the Buyer and the Seller as of the Cut-Off Time. The reproration
obligation under this subsection 10.1(a) shall survive the Closing.

          (b) Water and Sewer Charges, Utilities. All utility services shall be prorated as of
the Cut-Off Time between the Buyer and the Seller. To the extent possible, readings shall be
obtained for all utilities as of the Cut-Off Time. If not possible, the cost of such utilities
shall be prorated between the Seller and the Buyer by estimating such cost on the basis of the most
recent bill for such service; provided, however, that after the Closing, the Seller and the Buyer
shall reprorate the amount for such utilities and pay any deficiency in the original proration to
the other party promptly upon receipt of the actual bill for the relevant billing period. The
Seller shall receive a credit for all deposits transferred to the Buyer or which remain on deposit
for the benefit of the Buyer with respect to such utility contracts, otherwise such deposits shall
be refunded to the Seller. The reproration obligation in this subsection 10.1(b) shall survive the
Closing.

          (c) Operating Agreements and Equipment Leases. Charges and payments (including the
reimbursement of expenses) under all Operating Agreements and Equipment Leases.

          (d) Miscellaneous Revenues. Revenues, if any, arising out of telephone booths,
vending machines, parking, or other income producing agreements, on an if, as and when collected
basis.

          (e) Inventory. The Seller shall receive a credit for all Inventory and Retail
Merchandise in unopened cases as of the Closing in an amount equal to the Seller’s actual cost
(including sales and/or use tax) for such items.

35

 

          (f) Tenant Leases. Any rents and other amounts prepaid, accrued or due and payable
under the Tenant Leases shall be prorated as of the Cut-Off Time between the Buyer and the Seller.
The Buyer shall receive a credit for all cash security deposits held by the Seller under the Tenant
Leases and the Buyer thereafter shall be obligated to refund or apply such deposits in accordance
with the terms of such Tenant Leases.

          (g) Licenses and Permits. All amounts prepaid, accrued or due and payable under any
Permits (other than utilities which are separately prorated under subsection 10.1(b)) transferred
to the Buyer shall be prorated as of the Cut-Off Time between the Seller and the Buyer. The Seller
shall receive a credit for all deposits made by the Seller under the Licenses and Permits which are
transferred to the Buyer or which remain on deposit for the benefit of the Buyer.

          (h) Deposits for Bookings. The Buyer shall receive a credit for all prepaid deposits
for Bookings scheduled for accommodations or events on or after the Closing Date, except to the
extent such deposits are transferred to the Buyer and for all other amounts prepaid by guests or
other customers for accommodations or events on or after the Closing Date.

          (i) Restaurants and Bars, Etc. The Seller shall close out the transactions in the
restaurants and bars in the Hotel as of the Cut-Off Time and all revenues with respect thereto and
with respect to other services to guests of the Hotel, including without limitation, health club
revenues, room service revenues and banquet revenues, if any, shall be prorated between the Seller
and the Buyer as of the Cut-Off Time.

          (j) Vending Machines. The Seller shall remove all monies from all vending machines,
laundry machines, pay telephones and other coin-operated equipment as of the Cut-Off Time and shall
retain all monies collected therefrom as of the Cut-Off Time, and the Buyer shall be entitled to
any monies collected therefrom after the Cut-Off Time.

          (k) Trade Payables. Except to the extent an adjustment or proration is made under
another subsection of this Section 10.1, (i) the Seller shall pay in full prior to the Closing all
amounts payable to vendors or other suppliers of goods or services to the Hotel (the “Trade
Payables”) which are due and payable as of the Closing Date for which goods or services have been
delivered to the Hotel prior to Closing, and (ii) the Buyer shall receive a credit for the amount
of such Trade Payables which have accrued, but are not yet due and payable as of the Closing Date,
and the Buyer shall pay all such Trade Payables accrued as of the Closing Date when such Trade
Payables become due and payable up to the amount of such credit; provided, however, the Seller and
the Buyer shall reprorate the amount of credit for any Trade Payables and pay any deficiency in the
original proration to the other party promptly upon receipt of the actual bill for such goods or
services. The Seller shall receive a credit for all advance payments or deposits made with respect
to FF&E, Retail Merchandise, Property and Equipment and Inventories ordered, but not delivered to
the Hotel prior to the Closing Date, and the Buyer shall pay the amounts which become due and
payable for such FF&E, Retail Merchandise, Property and Equipment and Inventories which were
ordered but not delivered prior to Closing. The reproration obligation in this subsection 10.1(k)
shall survive the Closing.

36

 

          (l) Cash. The Seller shall receive a credit for all cash on hand at the Hotel and all
cash on deposit in any house bank at the Hotel as of the Closing and all such cash on hand and cash
on deposit in any house bank at the Hotel shall be transferred to and belong to the Buyer from and
after the Closing. The Seller shall retain all amounts in any operating accounts of the Hotel in
any bank, and there shall be no credit or adjustment hereunder with respect to such cash;
provided, however, the Seller shall receive a credit for any reserve fund or
account established pursuant to the terms of the Management Agreement which the Seller transfers to
the Buyer at Closing, if any.

          (m) Employee Compensation. The Seller shall pay all wages, payroll taxes and fringe
benefits (including accrued vacation pay to the extent actually earned) as well as social security,
unemployment compensation, health, life and disability insurance and pension fund contributions, if
any, of the Employees through the Closing Date, provided, that, the Seller shall have no liability
or obligation to pay for any sick pay or accrued but unearned vacation pay. Notwithstanding the
foregoing, with respect to accrued bonuses for 2007, the Seller’s pro-rated share shall be based
upon the bonus program in place as of the beginning of 2006 in the 2006 approved budget for the
Hotel prepared by Manager. The Buyer shall be responsible for all other liabilities relating to or
in connection with Employees for the period on or after the Cut-Off Time and any liabilities
relating to or in connection with sick pay and accrued but unearned vacation pay whether having
accrued prior to, on or after the Cut-Off Time. The Buyer shall be responsible for all severance
payments for Transferred Employees arising on or after the Closing and for all Employees not
offered employment by the Buyer (or its manager) as of the Closing, or who do not accept employment
by the Buyer (or its manager) on the same terms as those provided to such employees by Manager on
the day immediately preceding the Closing Date.

          (n) The Buyer and the Seller each acknowledge that certain taxes and assessments accrue and
are payable to the various local governments by any business entity operating a hotel and its
related facilities. Included in those taxes and assessments may be business and occupation taxes,
retail sales taxes, gross receipts taxes, and other special lodging or hotel taxes and assessments.
For purposes of this Agreement, all of such taxes and assessments (expressly excluding (x) taxes
and assessments covered in Section 10.1(a) of this Agreement, which shall be governed by the
provisions of Section 10.1(a), and (y) corporate franchise taxes, and federal, state and local
income taxes) shall be allocated between the Seller and the Buyer such that those attributable to
the period prior to the Cut-Off Time shall be allocable to the Seller and those attributable to the
period after the Cut-Off Time shall be allocable to the Buyer (with the attribution of such taxes
and assessments hereunder to be done in a manner consistent with the attribution under this
Agreement of the applicable revenues on which such taxes and assessments may be based). The Seller
shall be obligated to pay all such taxes and assessments which accrue with respect to the period
prior to the Cut-Off Time, and the Buyer shall be obligated to pay all such taxes and assessments
which accrue with respect to the period after the Cut-Off Time.

          (o) Other. If applicable, the Purchase Price shall be adjusted at Closing to reflect
the adjustment of any other item which, (i) under the explicit terms of this Agreement, is to be
apportioned at Closing, or (ii) is customarily prorated at the closing of similar transactions.

37

 

          (p) The provisions of Section 10.1 and the obligations of the Seller and the Buyer hereunder
shall survive the Closing.

     SECTION 10.2 Re-Adjustment.

          (a) If any items to be adjusted pursuant to this Article X are not determinable at the
Closing, the adjustment shall be made subsequent to the Closing when the charge is determined. The
Buyer shall deliver to the Seller no later than 120 days following the Closing Date a schedule of
prorations setting forth the Buyer’s determination of all adjustments to the prorations made at
Closing that it believes are necessary to complete the prorations as set forth in this Article X.
Any errors or omissions in computing adjustments or readjustments at the Closing or thereafter
shall be promptly corrected or made, provided that the party seeking to correct such error or
omission or to make such readjustment shall have notified the other party of such error or omission
or readjustment on or prior to the date that is 180 days following the Closing.

          (b) The provisions of Section 10.2 and the obligations of the Seller and the Buyer hereunder
shall survive the Closing.

     SECTION 10.3 Accounts Receivable.

          (a) Guest Ledger. All revenues received or to be received from transient guests on
account of room rents for the period prior to and including the Cut-Off Time shall belong to the
Seller. At Closing, the Seller shall receive a credit in an amount equal to: (i) all amounts
unpaid as of the Cut-Off Time charged to the Guest Ledger for all room nights up to (but not
including) the night during which the Cut-Off Time occurs, and (ii) one-half of all amounts unpaid
as of the Cut-Off Time charged to the Guest Ledger for the room night which includes the Cut-Off
Time and the Guest Ledger and all amounts charged thereto and unpaid as of the Cut-Off Time shall
become the property of the Buyer. For the period beginning on the day immediately following the
Cut-Off Time, such revenues collected from the Guest Ledger shall belong to the Buyer. In the
event that an amount less than the total amount due from a guest is collected and guest continued
in occupancy after the Cut-Off Time, such amount shall be applied first to any amount owing by such
person to the Seller and thereafter to such person’s amounts accruing to the Buyer.

          (b) Accounts Receivable (Other than Guest Ledger).

     (i) On the Closing Date, the Seller shall assign to the Buyer all Accounts
Receivable that are 90 days or less past due as of the Closing (the “Assigned
Accounts Receivable”), the Buyer shall pay to the Seller an amount equal to 100%
of all Accounts Receivable that are 90 days or less past due as of the Closing Date
and shall not credit to the Seller any amounts for Accounts Receivable more than 90
days past due as of the Closing Date. The Buyer shall have the sole right to
collect and retain all such Assigned Accounts Receivable. If any Assigned Accounts
Receivable are paid to the Seller after the Closing, the Seller shall pay to the
Buyer the amounts received by the Seller within 10 days after receipt of such
amounts without any commission or deduction for the Seller.

38

 

     (ii) After the Closing, the Seller shall retain the right to collect all
Accounts Receivable other than the Guest Ledger which is addressed in subsection
10.3(a), and the Assigned Accounts Receivable, which is addressed in subsection
10.3(b)(i) (such retained Accounts Receivable, the “Retained Accounts
Receivable”). The Seller shall not receive a credit for the Retained Accounts
Receivable. The Seller shall have the sole right to collect the Retained Accounts
Receivable. If any Retained Accounts Receivable are paid to the Buyer after the
Closing, the Buyer shall pay to the Seller the amounts received by the Buyer within
10 days after receipt of such amounts without any commission or deduction for the
Buyer.

     (iii) The Accounts Receivable addressed in this subsection 10.3(b) shall not
include the Guest Ledger, which is addressed in subsection 10.3(a).

     (iv) The parties’ obligations under this subsection 10.3(b) shall survive the
Closing.

          (c) The provisions of Section 10.3 and the obligations of the Seller and the Buyer hereunder
shall survive the Closing.

ARTICLE XI.

INDEMNIFICATION

     SECTION 11.1 Indemnification by the Seller. From and after the Closing and subject to Sections 11.3 and
11.4, the Seller shall indemnify and hold the Buyer, its affiliates, members and partners, and the
partners, shareholders, officers, directors, employees, representatives and agents of each of the
foregoing (collectively, “Buyer-Related Entities”) harmless from and against any and all
costs, fees, expenses, damages, deficiencies, interest and penalties (including, without
limitation, reasonable attorneys’ fees and disbursements) suffered or incurred by any such
indemnified party in connection with any and all losses, liabilities, claims, damages and expenses
(“Losses”), arising out of, or in any way relating to (a) any breach of any representation
or warranty of the Seller contained in this Agreement or in any Closing Document and (b) any breach
of any covenant of the Seller which survives the Closing contained in this Agreement or in any
Closing Document, including, without limitation, any amounts due and owing to the Buyer following
the Closing pursuant to Article X. Notwithstanding anything to the contrary contained herein, the
Seller shall have no liability or obligation to indemnify and hold the Buyer Related Entities
harmless from any Losses to the extent such Losses results from or is related to any acts or
omissions of Manager which would otherwise result in an indemnification obligation of Manager in
favor of the Seller pursuant to the terms of the Management Agreement or constitute a default by
Manager under the Management Agreement.

     SECTION 11.2 Indemnification by the Buyer. From and after the Closing and subject to Sections 11.3 and
11.4, the Buyer shall indemnify and hold the Seller, its affiliates, members and partners, and the
partners, shareholders, officers, directors, employees, representatives and agents of each of the
foregoing (collectively, “Seller-Related Entities”) harmless from any and all

39

 

Losses arising out of, or in any way relating to, (a) any breach of any representation or warranty
by the Buyer contained in this Agreement or in any Closing Document including, without limitation,
any amounts due and owing to the Seller pursuant to Article X and (b) any breach of any covenant of
the Buyer which survives the Closing contained in this Agreement or in any Closing Document
including, without limitation, any amounts due and owing to the Seller following the Closing
pursuant to Article X.

     SECTION 11.3 Limitations on Indemnification. Notwithstanding the foregoing provisions of Section 11.1,
(a) the Seller shall not be required to indemnify the Buyer or any Buyer-Related Entities under
subsection 11.1(a) unless the aggregate of all amounts for which an indemnity would otherwise be
payable by the Seller under subsection 11.1(a) exceeds the Basket Limitation and, in such event,
the Seller shall be responsible only for such amount in excess of the Basket Limitation, (b) in no
event shall the liability of the Seller with respect to the indemnification provided for in
subsection 11.1(a) exceed in the aggregate the Cap Limitation, and (c) if prior to the Closing, the
Buyer or Manager obtains or has actual knowledge of any inaccuracy or breach of any representation,
warranty or pre-closing covenant of the Seller contained in this Agreement (a “Buyer Waived
Breach”) and nonetheless proceeds with and consummates the Closing, then the Buyer and any
Buyer-Related Entities shall be deemed to have waived and forever renounced any right to assert a
claim for indemnification under this Article XI for, or any other claim or cause of action under
this Agreement at law or in equity on account of any such Buyer Waived Breach.

     SECTION 11.4 Survival. The (a) representations and warranties contained in this Agreement and the
Closing Documents (other than the Deed, FIRPTA or the Georgia Residency Affidavits) shall survive
for a period of six months after the Closing and (b) the covenants contained in this Agreement and
the Closing Documents (other than the Deed, FIRPTA or the Georgia Residency Affidavits) shall
survive for a period of one year after the Closing (the period beginning on the date hereof and
ending on such applicable date in clause (a) or (b) being herein called the “Survival
Period”) unless otherwise provided for in this Agreement. Each party shall have the right to
bring an action against the other for the breach of the representations and warranties, covenants,
obligations, provisions and liabilities hereunder or under the Closing Documents, but only on the
following conditions: the party bringing the action for breach (i) gives a reasonably detailed
written notice of such breach to the other party within 91 days after the expiration of the
applicable Survival Period, and (ii) files an action for such breach on or before the first day
following the second anniversary of the Closing Date, after which time all representations and
warranties, covenants, obligations and liabilities (and any cause of action resulting from a breach
thereof not then in litigation) herein or the Closing Documents (other than the Deed, FIRPTA or the
Georgia Residency Affidavits) shall terminate. The provisions of this Section 11.4 shall not be
applicable to the Deed, FIRPTA or the Georgia Residency Affidavits, which shall survive the Closing
without limitation.

     SECTION 11.5 Indemnification as Sole Remedy. If the Closing has occurred, the sole and exclusive remedy
(other than the right to seek specific performance of a covenant to be performed by the Seller or
the Buyer after the Closing) available to a party in the event of a breach by the other party to
this Agreement of any representation, warranty, covenant or other provision of this Agreement or
any Closing Document which survives the Closing shall be the indemnifications provided for under
this Article XI or elsewhere in this Agreement, which

40

 

indemnifications shall survive the Closing as provided in this Article XI. The provisions of this
Section 11.5 shall not be applicable to the Deed, FIRPTA or the Georgia Residency Affidavits.

ARTICLE XII.

DEFAULT AND TERMINATION

     SECTION 12.1 The Seller’s Termination.

          (a) This Agreement may be terminated by the Seller prior to the Closing if (i) any of the
conditions precedent to the Seller’s obligations set forth in Section 5.1 or elsewhere in this
Agreement have not been satisfied or waived by the Seller on or prior to the Closing Date or (ii)
there is a material breach or default by the Buyer in the performance of any of its obligations
under this Agreement.

          (b) In the event this Agreement is terminated by the Seller pursuant to subsection 12.1(a),
this Agreement shall be null and void and of no further force or effect and neither party shall
have any rights or obligations against or to the other except (i) for those provisions hereof which
by their terms expressly survive the termination of this Agreement and (ii) as set forth in
subsection 12.1(c). Notwithstanding the foregoing, if this Agreement is terminated by the Seller
prior to the Closing for a failure of (i) the condition precedent set forth in subsection 5.1(f)
and provided the Buyer is not in default of its obligation as set forth in Section 4.5 or (ii) the
condition set forth in subsection 5.1(c) and provided any matters arising under such subsection
5.1(c) is not based upon any act or omission by the Buyer or any of its affiliates, the Escrow
Agent shall disburse the Earnest Money to the Buyer as the Buyer’s sole and exclusive remedy, and
upon such disbursement the Seller and the Buyer shall have no further obligations under this
Agreement, except those which expressly survive such termination.

          (c) In the event the Seller terminates this Agreement as a result of a breach or default by
the Buyer in any of its obligations under this Agreement, the Escrow Agent shall immediately
disburse the Earnest Money to the Seller, and upon such disbursement the Seller and the Buyer shall
have no further obligations under this Agreement, except those which expressly survive such
termination. The Buyer and the Seller hereby acknowledge and agree that it would be impractical
and/or extremely difficult to fix or establish the actual damage sustained by the Seller as a
result of such default by the Buyer, and agree that the Earnest Money is a reasonable approximation
thereof. Accordingly, in the event that the Buyer breaches this Agreement by defaulting in the
completion of the purchase of the Asset, the Earnest Money shall constitute and be deemed to be the
agreed and liquidated damages of the Seller, and shall be paid by the Escrow Agent to the Seller as
the Seller’s sole and exclusive remedy hereunder; provided, however, the foregoing
shall not limit the Buyer’s obligation to pay to the Seller all reasonable attorneys’ fees and
costs of the Seller to enforce the provisions of this Section 12.1 or limit the Buyer’s
indemnification obligations owed to the Seller pursuant to this Agreement which survive a
termination of this Agreement. The payment of the Earnest Money as liquidated damages is not
intended to be a forfeiture or penalty, but is intended to constitute liquidated damages to the
Seller.

41

 

     SECTION 12.2 The Buyer’s Termination.

          (a) This Agreement may be terminated by the Buyer prior to the Closing if (i) any of the
conditions precedent to the Buyer’s obligations set forth in Section 5.2 or specifically set forth
elsewhere in this Agreement have not been satisfied or waived by the Buyer on or prior to the
Closing Date or (ii) there is a material breach or default by the Seller in the performance of its
obligations under this Agreement.

          (b) In the event this Agreement is terminated by the Buyer pursuant to subsection 12.2(a)(i),
the Escrow Agent shall disburse the Earnest Money to the Buyer as the Buyer’s sole and exclusive
remedy, and upon such disbursement the Seller and the Buyer shall have no further obligations under
this Agreement, except those which expressly survive such termination.

          (c) If there is a material breach or default by the Seller in the performance of its
obligations under this Agreement, the Buyer, at its option and as its sole and exclusive remedy,
may either (i) terminate this Agreement, direct the Escrow Agent to deliver the Earnest Money to
the Buyer and retain the Earnest Money, at which time this Agreement shall be terminated and of no
further force and effect except for the provisions which explicitly survive such termination, or
(ii) specifically enforce the terms and conditions of this Agreement provided such action seeking
specific performance is initiated within 90 days of the scheduled Closing Date. The Buyer and the
Seller hereby acknowledge and agree that it would be impractical and/or extremely difficult to fix
or establish the actual damage sustained by the Buyer as a result of such default by the Seller,
and agree that the remedy set forth in clause (i) above is a reasonable approximation thereof.
Accordingly, in the event that the Seller breaches this Agreement by defaulting in the completion
of the sale, and the Buyer elects not to exercise the remedy set forth in clause (ii) above but
instead elects the remedy set forth in clause (i) above, the delivery of the Earnest Money to the
Buyer shall be the Buyer’s sole and exclusive remedy. The Buyer agrees to, and does hereby, waive
all other remedies against the Seller which the Buyer might otherwise have at law or in equity by
reason of such default by the Seller.

ARTICLE XIII.

TAX CERTIORARI PROCEEDINGS

     SECTION 13.1 Prosecution and Settlement of Proceedings. If any tax reduction proceedings in respect of
the Property, relating to any fiscal years ending prior to the fiscal year in which the Closing
occurs are pending at the time of the Closing, the Seller reserves and shall have the right to
continue to prosecute and/or settle the same. If any tax reduction proceedings in respect of the
Property, relating to the fiscal year in which the Closing occurs, are pending at the time of
Closing, then the Seller reserves and shall have the right to continue to prosecute and/or settle
the same; provided, however, that the Seller shall not settle any such proceeding without the
Buyer’s prior written consent, which consent shall not be unreasonably withheld or delayed. The
Buyer shall reasonably cooperate with the Seller in connection with the prosecution of any such tax
reduction proceedings.

42

 

     SECTION 13.2 Application of Refunds or Savings. Any refunds or savings in the payment of taxes
resulting from such tax reduction proceedings applicable to taxes payable during the period prior
to the date of the Closing shall belong to and be the property of the Seller, and any refunds or
savings in the payment of taxes applicable to taxes payable from and after the date of the Closing
shall belong to and be the property of the Buyer. All attorneys’ fees and other expenses incurred
in obtaining such refunds or savings shall be apportioned between the Seller and the Buyer in
proportion to the gross amount of such refunds or savings payable to the Seller and the Buyer,
respectively (without regard to any amounts reimbursable to tenants); provided, however, that
neither the Seller nor the Buyer shall have any liability for any such fees or expenses in excess
of the refund or savings paid to such party unless such party initiated such proceeding.

     SECTION 13.3 Survival. The provisions of this Article XIII shall survive the Closing.

ARTICLE XIV.

MISCELLANEOUS

     SECTION 14.1 Use of Blackstone Name and Address. The Buyer hereby acknowledges and agrees that neither
the Buyer nor any affiliate, successor, assignee or designee of the Buyer shall be entitled to use
the name “Blackstone”, “MeriStar”, “CapStar”, “Lepercq” or “Equistar” in connection with the
operation, ownership and use of the Property. The provisions of this Section 14.1 shall survive
the Closing and any termination of this Agreement.

     SECTION 14.2 Exculpation of the Seller. Notwithstanding anything to the contrary contained herein, the
Seller’s shareholders, limited partners, members, the partners or members of such partners, the
shareholders of such partners, members, and the trustees, officers, directors, employees, agents
and security holders of the Seller and the partners or members of the Seller assume no personal
liability for any obligations entered into in connection with or relating to this Agreement on
behalf of the Seller and their respective individual assets shall not be subject to any claims of
any person relating to such obligations. The foregoing shall govern any direct and indirect
obligations of the Seller under this Agreement. The provisions of this Section 14.2 shall survive
the Closing and any termination of this Agreement.

SECTION 14.3 Brokers.

          (a) The Seller represents and warrants to the Buyer, as of the date hereof and as of the
Closing, that it has dealt with no broker, finder or similar person with respect to this Agreement
or the transactions contemplated hereby other than Broker. The Seller agrees to indemnify,
protect, defend and hold the Buyer harmless from and against all claims, losses, damages,
liabilities, costs, expenses (including reasonable attorneys’ fees and disbursements) and charges
resulting from the Seller’s breach of the foregoing representation in this subsection (a). The
Seller shall be responsible for the payment of any amounts due Broker. The provisions of this
subsection 14.3(a) shall survive the Closing and any termination of this Agreement.

43

 

          (b) The Buyer represents and warrants to the Seller, as of the date hereof and as of the
Closing, that it has dealt with no broker, finder or similar person with respect to this Agreement
or the transactions contemplated hereby other than Broker. The Buyer agrees to indemnify, protect,
defend and hold the Seller harmless from and against all claims, losses, damages, liabilities,
costs, expenses (including reasonable attorneys’ fees and disbursements) and charges resulting from
the Buyer’s breach of the foregoing representations in this subsection (b). The provisions of this
subsection 14.3(b) shall survive the Closing and any termination of this Agreement.

          (c) At Closing, Broker shall execute and deliver a final and unconditional waiver and release
of any lien rights it may have against the Property pursuant to the Commercial Real Estate Broker
Lien Act, O.C.G.A. §44-14-600, et. seq., in the form attached hereto as Exhibit I, and by its
execution of this Agreement, Broker hereby agrees to do so.

     SECTION 14.4 Confidentiality; Press Release; IRS Reporting Requirements.

          (a) The Buyer and the Seller, and each of their respective affiliates shall hold as
confidential all information disclosed in connection with the transaction contemplated hereby and
concerning each other, the Asset, this Agreement and the transactions contemplated hereby and shall
not release any such information to third parties without the prior written consent of the other
parties hereto, except (i) any information which was previously or is hereafter publicly disclosed
or was available on a non-confidential basis prior to its disclosure (other than in violation of
this Agreement or other confidentiality agreements to which affiliates of the Buyer are parties),
(ii) to their partners, advisers, underwriters, analysts, employees, affiliates, officers,
directors, consultants, lenders, accountants, legal counsel, title companies or other advisors of
any of the foregoing, provided that they are advised as to the confidential nature of such
information and are instructed to maintain such confidentiality and (iii) to comply with any law,
rule or regulation (including without limitation those of the United States Securities and Exchange
Commission) or the requirements of any securities exchange on which such party or its parent
company is listed. The foregoing shall constitute a modification of any prior confidentiality
agreement that may have been entered into by the parties. The provisions of this Section shall
survive the termination of this Agreement for a period of one year.

          (b) The Seller or the Buyer may issue a press release with respect to this Agreement and the
transactions contemplated hereby, provided that the content of any such press release shall be
subject to the prior written consent of the other party hereto, not to be unreasonably withheld,
conditioned or delayed.

          (c) For the purpose of complying with any information reporting requirements or other rules
and regulations of the IRS that are or may become applicable as a result of or in connection with
the transaction contemplated by this Agreement, including, but not limited to, any requirements set
forth in proposed Income Tax Regulation Section 1.6045-4 and any final or successor version thereof
(collectively, the “IRS Reporting Requirements”), the Seller and the Buyer hereby designate
and appoint the Escrow Agent to act as the “Reporting Person” (as that term is defined in
the IRS Reporting Requirements) to be responsible for complying with any IRS Reporting
Requirements. The Escrow Agent hereby acknowledges and accepts such designation and appointment
and agrees to fully comply with any IRS Reporting Requirements

44

 

that are or may become applicable as a result of or in connection with the transaction
contemplated by this Agreement. Without limiting the responsibility and obligations of the Escrow
Agent as the Reporting Person, the Seller and the Buyer hereby agree to comply with any provisions
of the IRS Reporting Requirements that are not identified therein as the responsibility of the
Reporting Person, including, but not limited to, the requirement that the Seller and the Buyer each
retain an original counterpart of this Agreement for at least four years following the calendar
year of the Closing.

     SECTION 14.5 Escrow Provisions.

          (a) The Escrow Agent shall hold the Earnest Money in escrow in an interest-bearing bank
account at a federally insured banking institution (the “Escrow Account”).

          (b) The Escrow Agent shall hold the Earnest Money in escrow in the Escrow Account until the
Closing or sooner termination of this Agreement and shall hold or apply such proceeds in accordance
with the terms of this subsection (b). The Seller and the Buyer understand that no interest is
earned on the Earnest Money during the time it takes to transfer into and out of the Escrow
Account. At the Closing, the Earnest Money shall be paid by the Escrow Agent to, or at the
direction of, the Seller. If for any reason the Closing does not occur and either party makes a
written demand upon the Escrow Agent for payment of such amount, the Escrow Agent shall, within 24
hours give written notice to the other party of such demand. If the Escrow Agent does not receive
a written objection within five Business Days after the giving of such notice, the Escrow Agent is
hereby authorized to make such payment. If the Escrow Agent does receive such written objection
within such five Business Day period or if for any other reason the Escrow Agent in good faith
shall elect not to make such payment, the Escrow Agent shall continue to hold such amount until
otherwise directed by joint written instructions from the parties to this Agreement or a final
judgment of a court of competent jurisdiction. However, the Escrow Agent shall have the right at
any time to deposit the Earnest Money with the clerk of the court of New York County. The Escrow
Agent shall give written notice of such deposit to the Seller and the Buyer. Upon such deposit the
Escrow Agent shall be relieved and discharged of all further obligations and responsibilities
hereunder.

          (c) The parties acknowledge that the Escrow Agent is acting solely as a stakeholder at their
request and for their convenience, that the Escrow Agent shall not be deemed to be the agent of
either of the parties, and the Escrow Agent shall not be liable to either of the parties for any
act or omission on its part, other than for its gross negligence or willful misconduct. The Seller
and the Buyer shall jointly and severally indemnify and hold the Escrow Agent harmless from and
against all costs, claims and expenses, including attorneys’ fees and disbursements, incurred in
connection with the performance of the Escrow Agent’s duties hereunder.

          (d) The Escrow Agent has acknowledged its agreement to these provisions by signing this
Agreement in the place indicated following the signatures of the Seller and the Buyer.

     SECTION 14.6 Successors and Assigns; No Third-Party Beneficiaries. The stipulations, terms, covenants
and agreements contained in this Agreement shall inure to the benefit of, and

45

 

shall be binding upon, the parties hereto and their respective permitted successors and assigns
(including any successor entity after a public offering of stock, merger, consolidation, purchase
or other similar transaction involving a party hereto) and nothing herein expressed or implied
shall give or be construed to give to any person or entity, other than the parties hereto and such
assigns, any legal or equitable rights hereunder.

     SECTION 14.7 Assignment. This Agreement may not be assigned by the Buyer without the prior written
consent of the Seller. The Buyer may designate an affiliate to which the Asset will be assigned at
the Closing, provided that the Buyer provides the Seller written notice of such designation at
least five days prior to the Closing and the Buyer will continue to remain primarily liable under
this Agreement notwithstanding any such designation. Notwithstanding anything to the contrary
contained herein, the Buyer may assign its rights and obligations under this Agreement to an
affiliate of the Buyer provided that the Buyer provides the Seller with a fully executed assignment
of contract at least five days prior to the Closing and the Buyer will continue to remain primarily
liable under this Agreement notwithstanding any such assignment.

     SECTION 14.8 Further Assurances.

          (a) From time to time, as and when requested by any party hereto, the other party shall
execute and deliver, or cause to be executed and delivered, all such documents and instruments and
shall take, or cause to be taken, all such further or other actions as such other party may
reasonably deem necessary or desirable to consummate the transactions contemplated by this
Agreement.

          (b) The Seller shall after the Closing and if requested by the Buyer, based on the Buyer’s
obligations under regulatory requirements, reasonably cooperate with the Buyer in the Buyer’s
preparation of audited financial statements of the Property for the calendar year in which the
Closing occurs and the three preceding calendar years, by providing such information as may be in
the possession of the Seller as shall be required to enable an accounting firm of the Buyer’s
choosing to prepare such audited financial statements, the cost of which shall be borne by the
Buyer. Any information provided by the Seller to the Buyer pursuant to this subsection 14.8(b)
shall be without any representations or warranties. The Buyer agrees to reimburse the Seller for
the Seller’s actual and reasonable costs in connection with the Seller’s cooperation pursuant to
this subsection 14.8(b).

          (c) The provisions of this Section 14.8 shall survive the Closing.

     SECTION 14.9 Notices. All notices, demands or requests made pursuant to, under or by virtue of this
Agreement must be in writing and shall be (a) personally delivered, (b) delivered by express mail,
Federal Express or other comparable overnight courier service, (c) telecopied, with telephone or
written confirmation within one Business Day, or (d) mailed to the party to which the notice,
demand or request is being made by certified or registered mail, postage prepaid, return receipt
requested, as follows:

46

 

     To the Seller:

c/o Blackstone Real Estate Advisors

345 Park Avenue, 32nd Floor

New York, New York 10154

Attention:                                         

Facsimile:                                         

Telephone:                                         

     with copies thereof to:

LQ Management

909 Hidden Ridge, Suite 600

Irving, Texas 75038

Attention:                                         

Facsimile:                                         

Telephone:                                         

     To the Buyer:

Interstate Atlanta Airport, LLC

c/o Interstate Hotel & Resorts, Inc.

4501 North Fairfax Drive, Suite 500

Arlington, Virginia 22203

Attention:                                         

Facsimile:                                         

Telephone:                                         

     with copies thereof to:

DeCampo, Diamond & Ash

747 Third Avenue — 37th Floor

New York, New York 10017

Attention:                                         

Facsimile:                                         

Telephone:                                         

     To the Escrow Agent/Title Company:

Lawyers Title Insurance Corporation

c/o LandAmerica Financial Group

Two Grand Central Tower

140 East 45th Street

New York, NY 10017

Attention:                                         

Facsimile:                                         

Telephone:                                         

47

 

All notices (i) shall be deemed to have been given on the date that the same shall have been
delivered in accordance with the provisions of this Section and (ii) may be given either by a party
or by such party’s attorneys. Any party may, from time to time, specify as its address for
purposes of this Agreement any other address upon the giving of 10 days’ prior notice thereof to
the other parties.

     SECTION 14.10 Entire Agreement. This Agreement, along with the Exhibits and Schedules hereto contains
all of the terms agreed upon between the parties hereto with respect to the subject matter hereof,
and all understandings and agreements heretofore had or made among the parties hereto are merged in
this Agreement which alone fully and completely expresses the agreement of the parties hereto.

     SECTION 14.11 Amendments. This Agreement may not be amended, modified, supplemented or terminated, nor
may any of the obligations of the Seller or the Buyer hereunder be waived, except by written
agreement executed by the party or parties to be charged.

     SECTION 14.12 No Waiver. No waiver by either party of any failure or refusal by the other party to
comply with its obligations hereunder shall be deemed a waiver of any other or subsequent failure
or refusal to so comply.

     SECTION 14.13 Governing Law. This Agreement shall be governed by, interpreted under, and construed and
enforced in accordance with, the laws of the State of Georgia.

     SECTION 14.14 Intentionally Omitted.

     SECTION 14.15 Severability. If any term or provision of this Agreement or the application thereof to any
person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this
Agreement or the application of such term or provision to persons or circumstances other than those
as to which it is held invalid or unenforceable shall not be affected thereby, and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

     SECTION 14.16 Section Headings. The headings of the various Sections of this Agreement have been
inserted only for purposes of convenience, are not part of this Agreement and shall not be deemed
in any manner to modify, explain, expand or restrict any of the provisions of this Agreement.

     SECTION 14.17 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, and it shall not be necessary in making proof of this Agreement to
produce or account for more than one such counterpart.

     SECTION 14.18 Acceptance of Deed. The acceptance of the Deed by the Buyer shall be deemed full
compliance by the Seller of all of the Seller’s obligations under this Agreement except for those
obligations of the Seller which are specifically stated to survive the Closing.

     SECTION 14.19 Construction. The parties acknowledge that the parties and their counsel have reviewed and
revised this Agreement and that the normal rule of construction to the

48

 

effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of this Agreement or any exhibits or amendments hereto.

     SECTION 14.20 Recordation. Neither this Agreement nor any memorandum or notice of this Agreement may be
recorded by any party hereto without the prior written consent of the other party hereto. The
provisions of this Section shall survive the Closing or any termination of this Agreement. The
Buyer also agrees not to file any lis pendens or other instrument against the Asset in connection
herewith in bad faith. In furtherance of the foregoing, the Buyer (i) acknowledges that the filing
of a lis pendens in bad faith against or encumbering the Asset or the recording of any memorandum
or notice of this Agreement could cause significant monetary and other damages to the Seller, and
(ii) hereby indemnifies the Seller from and against any and all liabilities, damages, losses, costs
or expenses (including without limitation attorneys fees and expenses) arising out of a breach of
this Section 14.20. The provisions of this Section 14.20 shall survive the Closing or any
termination of this Agreement.

     SECTION 14.21 WAIVER OF JURY TRIAL. THE SELLER AND THE BUYER HEREBY WAIVE TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PARTY AGAINST ANOTHER PARTY ON ANY MATTER ARISING OUT OF
OR IN ANY WAY CONNECTED WITH THIS AGREEMENT. THE PROVISIONS OF THIS SECTION 14.21 SHALL SURVIVE
THE CLOSING AND ANY TERMINATION OF THIS AGREEMENT.

     SECTION 14.22 Time is of the Essence. The Seller and the Buyer agree that time is of the essence with
respect to the obligations of the Buyer and the Seller under this Agreement.

     SECTION 14.23 Bulk Sale; Occasional Sale. The Seller and the Buyer specifically waive compliance with
the Uniform Commercial Code of the State of Georgia with respect to bulk transfers, with any
similar provision under any applicable law of the County of Clayton and City of College Park. The
Buyer and the Seller acknowledge that the Seller is selling the entire operating assets of a
business pursuant to this Agreement, which is intended to qualify as an occasional sale.

49

 

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto under seal as
of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 	 	 
	 	 	LEPERCQ ATLANTA RENAISSANCE
PARTNERS, L.P., a Delaware limited partnership
	 
	 	 	 	 	 	 
	 	 	By:	 	MeriStar Sub 5R LLC, a Delaware limited
liability company, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Mark Chloupek
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mark Chloupek
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	EVP and General Counsel
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	[SEAL]
	 
	 	 	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 	 	 
	 	 	INTERSTATE ATLANTA AIRPORT, LLC, a
Delaware limited liability company
	 
	 	 	 	 	 	 
	 	 	By:	 	Interstate Operating Company, LP,
a Delaware limited partnership, its member
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	Interstate Hotels & Resorts, Inc.,
a Delaware corporation, its general partner

	 	 	 	 	 
	 

	 	By:
	 	/s/ James A. Crolle III
	 

	 	 	 	 
	 

	 	Name:
	 	James A. Crolle III
	 

	 	 	 	 
	 

	 	Title:
	 	Assistant General Counsel
	 

	 	 	 	 
	 

	 	 	 	[SEAL]

50exv10w1

 

Execution Version

Exhibit 10.1

SENIOR NOTE PURCHASE

AND REDEMPTION AGREEMENT

by and between

COMSTOCK HOMEBUILDING COMPANIES, INC.,

and

KODIAK WAREHOUSE JPM LLC

 

Dated as of March 15, 2007

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. Definitions
	 	 	1	 
	 
	 	 	 	 
	2. Redemption of the Original Notes and Purchase and Sale of the Senior Notes
	 	 	2	 
	 
	 	 	 	 
	3. Conditions
	 	 	2	 
	 
	 	 	 	 
	4. Representations and Warranties of the Company
	 	 	5	 
	 
	 	 	 	 
	5. Representations and Warranties of the Purchaser
	 	 	13	 
	 
	 	 	 	 
	6. Covenants and Agreements of the Company
	 	 	14	 
	 
	 	 	 	 
	7. Payment of Expenses
	 	 	17	 
	 
	 	 	 	 
	8. Indemnification
	 	 	18	 
	 
	 	 	 	 
	9. Termination; Representations and Indemnities to Survive
	 	 	19	 
	 
	 	 	 	 
	10. Amendments
	 	 	19	 
	 
	 	 	 	 
	11. Notices
	 	 	19	 
	 
	 	 	 	 
	12. Parties in Interest; Successors and Assigns
	 	 	21	 
	 
	 	 	 	 
	13. Applicable Law
	 	 	21	 
	 
	 	 	 	 
	14. Submission to Jurisdiction
	 	 	21	 
	 
	 	 	 	 
	15. Counterparts and Facsimile
	 	 	21	 
	 
	 	 	 	 
	16. Notice of Intended Transfer
	 	 	21	 

	 	 	 	 	 
	SCHEDULES AND EXHIBITS
	 
	 	 	 	 
	Schedule 4(1)

	 	—
	 	List of Significant Subsidiaries; Certain Prohibitions Against the Payment of
Distributions, the Repayment of Debt or the Transfer of Assets
	Schedule 4(p)

	 	—
	 	Legal Proceedings
	Schedule 4(u)

	 	—
	 	Certain Documents Subject to Future Filing as Exhibits to 1934 Act Reports
	Schedule 4(x)

	 	—
	 	Claims Against Real Property
	Schedule 4(ee)

	 	—
	 	Environmental Matters
	 
	 	 	 	 
	Exhibit A

	 	—
	 	Form of Company Counsel’s Opinion Pursuant to Section 3(b)(i)

i

 

	 	 	 	 	 
	Exhibit B

	 	—
	 	Form of General Counsel Opinion or Officers’ Certificate Pursuant to
Section 3(b)(ii)
	Exhibit C

	 	—
	 	Form of Tax Counsel Opinion Pursuant to Section 3(c)
	Exhibit D

	 	—
	 	Form of Trustee Counsel Opinion Pursuant to Section 3(d)
	Exhibit E

	 	—
	 	Form of Officer’s Financial Certificate Pursuant to Section 6(h)
	Exhibit F

	 	—
	 	Form of Control Agreement

 

 

SENIOR NOTE PURCHASE AND REDEMPTION AGREEMENT

     This SENIOR NOTE PURCHASE AND REDEMPTION AGREEMENT, dated as of March 15, 2007 (this
“Purchase Agreement”), is entered into by and among Comstock Homebuilding Companies, Inc.,
a Delaware corporation (the “Company”), and Kodiak Warehouse JPM LLC, a Delaware limited
liability company, or its assignee (the “Purchaser”).

WITNESSETH:

     WHEREAS, pursuant to that certain Note Purchase Agreement, dated as of May 4, 2006, the
Company issued and sold to Kodiak Warehouse LLC (the “Initial Purchaser”) Thirty Million
Dollars ($30,000,000) in aggregate principal amount of the Company’s junior subordinated notes,
bearing interest at a fixed rate of 9.72% per annum through the interest payment date in June 2011
and thereafter at a variable rate, reset quarterly, equal to LIBOR (as defined in the Junior
Subordinated Indenture, dated as of May 4, 2006 (the “Original Indenture”) between the
Company and Wells Fargo Bank, N.A. (the “Original Trustee”)) plus 4.20% per annum (the
“Original Notes”);

     WHEREAS, the Initial Purchaser sold, transferred and assigned its rights, title and interests
in and to the Original Notes to the Purchaser;

     WHEREAS, the Purchaser and the Company desire to provide for the redemption of the Original
Notes and for the Company’s issuance and sale to the Purchaser of Thirty Million Dollars
($30,000,000) in aggregate principal amount of the Company’s senior unsecured notes, bearing
interest at a fixed rate of 9.72% per annum through the interest payment date in June 2011 and
thereafter at a variable rate, reset quarterly, equal to LIBOR (as defined in the Indenture (as
defined below)) plus 4.20% per annum (the “Senior Notes”);

     WHEREAS, the Company, as of the date of this Purchase Agreement, is not insolvent, nor upon
consummation of the transactions contemplated hereby will it be rendered insolvent, and the sum of
the Company’s debts is less than the value of all of the Company’s property at a fair valuation;

     WHEREAS, the sale of the Senior Notes to the Purchaser constitutes an extension of new credit
to the Company and is not a substitution for any existing obligation; and

     WHEREAS, the Senior Notes will be issued pursuant to an Indenture, dated as of the Closing
Date (the “Indenture”), between the Company and Wells Fargo Bank, N.A., as indenture
trustee (in such capacity, the “Trustee”).

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements and subject to the
terms and conditions herein set forth, the parties hereto agree as follows:

          1. Definitions. This Purchase Agreement, the Control Agreement (as defined herein),
the Indenture and the Senior Notes are collectively referred to herein as the “Operative
Documents.” All other capitalized terms used but not defined in this Purchase Agreement shall
have the respective meanings ascribed thereto in the Indenture.

 

 

          2. Redemption of the Original Notes and Purchase and Sale of the Senior Notes.

          (a) Notwithstanding any restrictions in the Original Indenture relating to the redemption of
the Original Notes, the Company agrees to redeem the Original Notes, and the Purchaser agrees to
accept the redemption of the Original Notes (the “Redemption”), on the Closing Date (as
defined below) at a redemption price equal to Thirty Million Six Hundred Seven Thousand Five
Hundred Dollars ($30,607,500) (collectively the sum of (i) one hundred percent (100%) of the
principal amount thereof, and (ii) all accrued and unpaid interest including Additional Interest
(as defined in the Original Indenture) thereon as of March 15, 2007 (the “Redemption
Price”).

          (b) On the Closing Date, the Redemption Price will become due and payable and any interest
on the Original Notes shall cease to accrue on and after said date.

          (c) The Company agrees to sell to the Purchaser, and the Purchaser agrees to purchase from
the Company, Thirty Million Dollars ($30,000,000) in aggregate principal amount of the Senior
Notes for an amount (the “Purchase Price”) equal to Thirty Million Dollars ($30,000,000).
The Purchaser shall be responsible for the rating agency costs and expenses.

          (d) Delivery or transfer of, and payment for, the Original Notes and the Senior Notes shall
be made at 10:00 A.M. Chicago time (11:00 A.M. New York City time), on March 15, 2007 (such date
and time of delivery and payment for the Original Notes and the Senior Notes being herein called
the “Closing Date”). The Original Notes shall be redeemed and delivered to the Company
upon receipt by the Purchaser of the Redemption Price by wire transfer in immediately available
funds on the Closing Date to a U.S. account designated by the Purchaser at least two Business
Days prior to the Closing Date. The Senior Notes shall be transferred and delivered to the
Purchaser against the payment of the Purchase Price to the Company made by wire transfer in
immediately available funds on the Closing Date to a U.S. account designated in writing by the
Company at least two Business Days prior to the Closing Date.

          (e) Delivery of the Senior Notes shall be made at such location, and in such names and
denominations, as the Purchaser shall designate at least two Business Days in advance of the
Closing Date and surrender of the Original Notes shall occur at the same location. The Company
agrees to have the Senior Notes available for inspection and checking by the Purchaser in
Chicago, Illinois, not later than 1:00 P.M., Chicago time (2:00 P.M. New York City time), on the
Business Day prior to the Closing Date. The closing for the purchase and sale of the Senior Notes
(the “Closing”) shall occur at the offices of Winston & Strawn LLP, 35 West Wacker Drive,
Chicago, Illinois 60601, or such other place as the parties hereto shall agree.

          3. Conditions. The obligations of the parties under this Purchase Agreement are
subject to the following conditions:

2

 

          (a) The representations and warranties contained herein shall be accurate as of the date of
delivery of the Senior Notes.

          (b) (i) Greenberg Traurig LLP, counsel for the Company (the “Company Counsel”), shall
have delivered an opinion, dated the Closing Date, addressed to the Purchaser, its successors and
assigns and the Trustee, in substantially the form set out in Exhibit A hereto and (ii) the
Company shall have furnished to the Purchaser the opinion of the Company’s General Counsel or a
certificate signed by the Company’s Chief Executive Officer, President or an Executive Vice
President and the Company’s Chief Financial Officer, Treasurer or Assistant Treasurer, dated the
Closing Date, addressed to the Purchaser, in substantially the form set out in Exhibit B
hereto. In rendering their opinion, the Company Counsel may rely as to factual matters upon
certificates or other documents furnished by officers and directors of the Company and by
government officials (provided, however, that copies of any such certificates or
documents are delivered to the Purchaser) and by and upon such other documents as such counsel may,
in their reasonable opinion, deem appropriate as a basis for the Company Counsel’s opinion. The
Company Counsel may specify the jurisdictions in which they are admitted to practice and that they
are not admitted to practice in any other jurisdiction and are not experts in the law of any other
jurisdiction. Such Company Counsel opinions shall not state that they are to be governed or
qualified by, or that they are otherwise subject to, any treatise, written policy or other document
relating to legal opinions, including, without limitation, the Legal Opinion Accord of the ABA
Section of Business Law (1991).

          (c) The Purchaser shall have been furnished the opinion of Winston & Strawn LLP, special tax
counsel for the Purchaser, dated the Closing Date, addressed to the Purchaser and the Trustee,
addressing the matters set out in Exhibit C hereto (subject to customary assumptions and
qualifications).

          (d) The Purchaser shall have received the opinion of Potter Anderson & Corroon LLP, special
counsel for the Trustee, dated the Closing Date, addressed to the Purchaser and its successors and
assigns, in substantially the form set out in Exhibit D hereto.

          (e) The Company shall have furnished to the Purchaser a certificate of the Company, signed by
the Chief Executive Officer, President or an Executive Vice President, and Chief Financial Officer
or Treasurer of the Company, dated the Closing Date, as to clauses (i) and (ii) below:

          (i) the representations and warranties of the Company in this Purchase Agreement are true
and correct on and as of the Closing Date with the same effect as if made on the Closing Date,
and the Company has complied with all the agreements and satisfied all the conditions on its
part to be performed or satisfied at or prior to the Closing Date; and

          (ii) except as set forth in the Company’s 1934 Act Reports (as defined below), since the
date of the Financial Statements (as defined in Section 4 (r)), there has been no
occurrence that has had or is reasonably expected to result in a material adverse change in or
effect on the condition (financial or otherwise), earnings, business, liabilities

3

 

or assets of the Company and its subsidiaries, whether or not arising from transactions
occurring in the ordinary course of business (a “Material Adverse Effect”).

          (f) Subsequent to the execution of this Purchase Agreement, with the exception of matters
disclosed by the Company to Purchaser in the Company’s 1934 Act Reports, there shall not have
been any change in or affecting the condition (financial or otherwise), earnings, business,
liabilities or assets of the Company and its subsidiaries, whether or not occurring in the
ordinary course of business, the effect of which is, in the Purchaser’s judgment, so material and
adverse as to make it impractical or inadvisable to proceed with the purchase of the Senior
Notes.

          (g) The redemption of the Original Notes and the purchase of and payment for the Senior
Notes as described in this Purchase Agreement shall (a) not be prohibited by any applicable law
or governmental regulation, (b) not subject the Purchaser to any penalty or, in the reasonable
judgment of the Purchaser, other onerous conditions under or pursuant to any applicable law or
governmental regulation and (c) be permitted by the laws and regulations of the jurisdictions to
which the Purchaser is subject.

          (h) The Company shall have received all consents, permits and other authorizations, and made
all such filings and declarations, as may be required on or before the Closing Date from any
person or entity pursuant to any law, statute, regulation or rule (federal, state, local and
foreign), or pursuant to any agreement, order or decree to which the Company is a party or to
which it is subject, in connection with the transactions contemplated by this Purchase Agreement.

          (i) The Purchaser and the Trustee shall have received a fully executed copy of a Control
Agreement in the form of Exhibit F hereto.

          (j) The Purchaser and the Original Trustee shall have received (i) a copy of the resolution
of the board of directors of the Company authorizing the transactions contemplated by this
Purchase Agreement, including the redemption of the Original Notes, and (ii) an officers’
certificate and opinion of counsel, in each case in accordance with the terms Section 11.3 of the
Original Indenture.

          (k) Prior to the Closing Date, the Company shall have furnished to the Purchaser and its
counsel such further information, certificates and documents as the Purchaser or its counsel may
reasonably request.

          If any of the conditions specified in this Section 3 shall not have been fulfilled
when and as required by this Purchase Agreement, or if any of the opinions, certificates and
documents mentioned above or elsewhere in this Purchase Agreement shall not be reasonably
satisfactory in form and substance to the Purchaser or its counsel, this Purchase Agreement and all
the Purchaser’s obligations hereunder may be canceled at, or at any time prior to, the Closing Date
by the Purchaser. Notice of such cancellation shall be given to the Company in writing or by
telephone or facsimile confirmed in writing.

          Each certificate signed by any officer of the Company and delivered to the Purchaser or its
counsel in connection with the Operative Documents and the transactions

4

 

contemplated hereby and thereby shall be deemed to be a representation and warranty of the
Company and not by such officer in any individual capacity.

          4. Representations and Warranties of the Company. The Company represents and warrants
to, and agrees with the Purchaser, as of the date hereof and as of the Closing Date, as follows:

          (a) Neither the Company nor any of its “Affiliates” (as defined in Rule 501(b) of Regulation
D (“Regulation D”) under the Securities Act (as defined below)), nor any person acting on
its or their behalf, has, directly or indirectly, made offers or sales of any security, or
solicited offers to buy any security, under circumstances that would require the registration of
any of the Senior Notes under the Securities Act of 1933, as amended (the “Securities
Act”).

          (b) Neither the Company nor any of its Affiliates, nor any person acting on its or their
behalf, has (i) offered for sale or solicited offers to purchase the Senior Notes or (ii) engaged
in any form of “general solicitation” or “general advertising” (within the meaning of Regulation
D) in connection with any offer or sale of any of the Senior Notes.

          (c) The Senior Notes (i) are not and have not been listed on a national securities exchange
registered under Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or quoted on a U.S. automated inter-dealer quotation system and (ii) are not 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, as amended
(the “Investment Company Act”), and the Senior Notes otherwise satisfy the eligibility
requirements of Rule 144A(d)(3) promulgated pursuant to the Securities Act (“Rule
144A(d)(3)”).

          (d) Neither the Company nor any of its Affiliates, nor any person acting on its or their
behalf, has engaged, or will engage, in any “directed selling efforts” within the meaning of
Regulation S under the Securities Act with respect to the Senior Notes.

          (e) The Company is not, and, immediately following consummation of the transactions
contemplated hereby and the other Operative Documents and the application of the net proceeds
from the purchase and sale of the Senior Notes, will not be, an “investment company” or an entity
“controlled” by an “investment company,” in each case within the meaning of Section 3(a) of the
Investment Company Act.

          (f) The Company has not paid or agreed to pay to any person or entity, directly or
indirectly, any fees or other compensation for soliciting another to purchase any of the Senior
Notes.

          (g) The Indenture has been duly authorized by the Company and, on the Closing Date, will
have been duly executed and delivered by the Company and, assuming due authorization, execution
and delivery thereof by the Trustee, will be a legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general
principles of equity (the “Enforceability Exceptions”).

5

 

          (h) The Senior Notes have been duly authorized by the Company and, on the Closing Date, will
have been duly executed and delivered to the Trustee for authentication in accordance with the
Indenture and, when authenticated in the manner provided for in the Indenture and delivered to the
Purchaser against payment therefor in accordance with this Purchase Agreement, will constitute
legal, valid and binding obligations of the Company entitled to the benefits of the Indenture,
enforceable against the Company in accordance with their terms, subject to the Enforceability
Exceptions.

          (i) This Purchase Agreement has been duly authorized, executed and delivered by the Company
and is a legal, valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, subject to the Enforceability Exceptions and the effect of any
applicable public policy against the enforcement of the indemnification provisions of this Purchase
Agreement set forth in Section 8.

          (j) The Control Agreement has been duly authorized, executed and delivered by the Company and
is a legal, valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, subject to the Enforceability Exceptions and the effect of any
applicable public policy against the enforcement of the indemnification provisions of the Control
Agreement.

          (k) Neither the redemption of the Original Notes, nor the issuance and sale of the Senior
Notes, nor the execution and delivery of and compliance with the Operative Documents by the
Company, nor the consummation of the transactions contemplated hereby or thereby, or the use of the
proceeds therefrom, (i) will conflict with or constitute a violation or breach of the charter or
bylaws or similar organizational documents of the Company or any subsidiary of the Company or any
applicable law, statute, rule, regulation, judgment, order, writ or decree of any government,
governmental authority, agency or instrumentality or court, domestic or foreign (collectively, the
“Governmental Entities”), or of any arbitrator, in each case having jurisdiction over the
Company or any of its subsidiaries or their respective properties or assets, (ii) will conflict
with or constitute a violation or breach of, or a default or Repayment Event (as defined below)
under, or result in the creation or imposition of any pledge, security interest, claim, lien or
other encumbrance of any kind (each, a “Lien”) upon any property or assets of the Company
or any of its subsidiaries (other than to the extent of the amounts subject to the Lien of the
Control Agreement) pursuant to, any contract, indenture, mortgage, loan agreement, note, lease or
other agreement or instrument to which (A) the Company or any of its subsidiaries is a party or by
which it or any of them may be bound, or (B) any of the property or assets of the Company or any of
its subsidiaries is subject, except, in the case of this clause (ii), for such conflicts,
violations, breaches, defaults, Repayment Events or Liens which (X) would not, singly or in the
aggregate, adversely affect the consummation of the transactions contemplated by the Operative
Documents and (Y) would not, singly or in the aggregate, have a Material Adverse Effect or (iii)
require the consent, approval, authorization or order of any court or Governmental Entity. As used
herein, a “Repayment Event” means any event or condition which gives the holder of any
note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all or a portion of such
indebtedness by the Company or any of its subsidiaries prior to its scheduled maturity.

6

 

          (l) The Company has been duly incorporated and is validly existing as a corporation in good
standing under the laws Delaware, with all requisite corporate power and authority to own, lease
and operate its properties and conduct the business it transacts and proposes to transact, and is
duly qualified to transact business and is in good standing as a foreign corporation in each
jurisdiction where the nature of its activities requires such qualification, except where the
failure of the Company to be so qualified would not, singly or in the aggregate, have a Material
Adverse Effect.

          (m) The Company has no subsidiaries that are material to its business, financial condition or
earnings other than those subsidiaries listed in Schedule 4(1) hereto (collectively, the
“Significant Subsidiaries”). Each Significant Subsidiary has been duly organized and is
validly existing as a corporation, limited liability company, limited partnership or statutory
trust in good standing under the laws of the jurisdiction in which it is chartered, organized or
formed, with all requisite power and authority to own, lease and operate its properties and conduct
the business it transacts and proposes to transact. Each Significant Subsidiary is duly qualified
to transact business and is in good standing as a foreign corporation, limited liability company,
limited partnership or statutory trust in each jurisdiction where the nature of its activities
requires such qualification, except where the failure to be so qualified would not, singly or in
the aggregate, have a Material Adverse Effect. Except as set forth on Schedule 4(1) hereto,
no subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement
or other instrument to which it is a party or is subject, from paying any dividends to the Company,
from making any other distribution on such subsidiary’s capital stock or other Equity Interests,
from repaying to the Company any loans or advances to such subsidiary from the Company or from
transferring any of such subsidiary’s properties or assets to the Company or any other subsidiary
of the Company.

          (n) The Company and each of the Company’s subsidiaries hold all necessary approvals,
authorizations, orders, licenses, consents, registrations, qualifications, certificates and permits
(collectively, the “Governmental Licenses”) of and from Governmental Entities necessary to
conduct their respective businesses as now being conducted, and neither the Company nor any of the
Company’s subsidiaries has received any notice of proceedings relating to the revocation or
modification of any such Government License, except where the failure to be so licensed or approved
or the receipt of an unfavorable decision, ruling or finding, would not, singly or in the
aggregate, have a Material Adverse Effect; all of the Governmental Licenses are valid and in full
force and effect, except where the invalidity or the failure of such Governmental Licenses to be in
full force and effect, would not, singly or in the aggregate, have a Material Adverse Effect; and
the Company and its subsidiaries are in compliance with all applicable laws, rules, regulations,
judgments, orders, decrees and consents, except where the failure to be in compliance would not,
singly or in the aggregate, have a Material Adverse Effect.

          (o) All of the issued and outstanding Equity Interests of the Company and each of its
subsidiaries are validly issued, fully paid and nonassessable; all of the issued and outstanding
Equity Interests of each subsidiary of the Company is owned by the Company, directly or through
subsidiaries, free and clear of any Lien, claim or equitable right; and none of the issued and
outstanding Equity Interests of the Company or any subsidiary of the

7

 

Company was issued in violation of any preemptive or similar rights arising by operation of law,
under the charter, by-laws, certificate of formation, limited liability company agreement,
certificate of limited partnership, agreement of limited partnership or similar organizational
document of such entity or under any agreement to which the Company or any of its subsidiaries is a
party.

          (p) Except as otherwise disclosed to the Purchaser in writing, neither the Company nor any of
its subsidiaries is (i) in violation of its respective charter, by-laws, certificate of formation,
limited liability company agreement, certificate of limited partnership, agreement of limited
partnership or similar organizational document, (ii) in default in the performance or observance of
any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage,
loan agreement, note, lease or other agreement or instrument relating to Debt or (iii) in default
in the performance or observance of any obligation, agreement, covenant or condition contained in
any contract, indenture, mortgage, loan agreement, note, lease or other agreement or instrument to
which the Company or any such subsidiary is a party or by which it or any of them may be bound or
to which any of the property or assets of any of them is subject,, except, in the case of clause
(ii), where such violation or default would not, singly or in the aggregate, have a Material
Adverse Effect. No default by the Company has occurred and is continuing in the payment of any
principal of or premium or interest on any Senior Debt (as such term is defined in the Original
Indenture).

          (q) Except as set forth on Schedule 4(p) hereto, there is no action, suit or
proceeding before or by any Governmental Entity or arbitrator, now pending or, to the knowledge of
the Company, threatened against or affecting the Company or any of the Company’s subsidiaries,
except for such actions, suits or proceedings that, if adversely determined, would not, singly or
in the aggregate, adversely affect the consummation of the transactions contemplated by the
Operative Documents or have a Material Adverse Effect; and the aggregate of all pending legal or
governmental proceedings to which the Company or any of its subsidiaries is a party or of which any
of their respective properties or assets is subject, including ordinary routine litigation
incidental to the Company’s and its subsidiaries’ business, are not expected to result in a
Material Adverse Effect.

          (r) The accountants of the Company who certified the Financial Statements are independent
public accountants of the Company and its subsidiaries within the meaning of the Securities Act,
and the rules and regulations of the Securities and Exchange Commission (the “Commission”)
thereunder.

          (s) The audited consolidated financial statements (including the notes thereto) and schedules
of the Company and its consolidated subsidiaries for the three (3) fiscal years ended December 31,
2005 (the “Financial Statements”) and the interim unaudited consolidated financial
statements of the Company and its consolidated subsidiaries for the three and nine months periods
ended September 30, 2006 (the “Interim Financial
Statements”) provided to the Purchaser
are the most recent available audited and unaudited consolidated financial statements of the
Company and its consolidated subsidiaries, respectively, and fairly present in all material
respects, in accordance with U.S. generally accepted accounting principles (“GAAP”), the
financial position of the Company and its consolidated subsidiaries, and the results of operations
and changes in financial condition as of the dates and for the periods

8

 

therein specified subject, in the case of the Interim Financial Statements, to year-end adjustments
(which are expected to consist solely of recurring adjustments in the normal course of business).
Such consolidated financial statements and schedules have been prepared in accordance with GAAP
consistently applied throughout the periods involved (except as otherwise noted therein).

          (t) Neither the Company nor any of its subsidiaries has any material liability, whether known
or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or
unaccrued, whether liquidated or unliquidated, and whether due or to become due, including any
liability for taxes (and there is no past or present fact, situation, circumstance, condition or
other basis for any present or future action, suit, proceeding, hearing, charge, complaint, claim
or demand against the Company or its subsidiaries that could give rise to any such liability),
except for (i) liabilities set forth in the Financial Statements and (ii) normal fluctuations in
the amount of the liabilities referred to in clause (i) above occurring in the ordinary course of
business of the Company and its subsidiaries since the date of the most recent balance sheet
included in such Financial Statements.

          (u) Except as set forth in the Company’s 1934 Act Reports, since the respective dates of the
Financial Statements and the Interim Financial Statements, there has been (A) no occurrence that is
reasonably expected to result in a Material Adverse Effect and (B) no dividend or distribution of
any kind declared, paid or made by the Company on any class of its capital stock.

          (v) The documents of the Company filed with the Commission in accordance with the Exchange
Act, from and including the commencement of the fiscal year covered by the Company’s most recent
Annual Report on Form 10-K, at the time they were or hereafter are filed by the Company with the
Commission (collectively, the “1934 Act Reports”), complied and will comply in all material
respects with the requirements of the Exchange Act and the rules and regulations of the Commission
thereunder (the “1934 Act Regulations”), and, at the date of this Purchase Agreement and on
the Closing Date, do not and will not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading; and other than such
instruments, agreements, contracts and other documents as are filed as exhibits to the Company’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, there
are no instruments, agreements, contracts or other documents of a character described in Item 601
of Regulation S-K promulgated by the Commission to which the Company or any of its subsidiaries is
a party, and which the Company is required to file, other than such as are permitted to be filed
with the Company’s next periodic report under the 1934 Act Regulations, and set forth on
Schedule 4(u) attached hereto. The Company is in compliance with all currently applicable
requirements of the Exchange Act and the currently applicable rules and regulations promulgated
thereunder that were added by or resulted from the Sarbanes-Oxley Act of 2002.

          (w) No labor dispute with the employees of the Company or any of its subsidiaries exists or,
to the knowledge of the executive officers of the Company, is imminent, except those which would
not, singly or in the aggregate, have a Material Adverse Effect.

9

 

          (x) No filing with, or authorization, approval, consent, license, order, registration,
qualification or decree of, any Governmental Entity, other than those that have been made or
obtained, is necessary or required for the performance by the Company of its obligations under the
Operative Documents or the consummation by the Company of the transactions contemplated by the
Operative Documents.

          (y) Except as set forth on Schedule 4(x), the Company and each Significant Subsidiary
have (a) good and marketable title in fee simple to all real property owned by them, (b) good and
marketable title to all real property-related interests owned by them and (c) good and marketable
title to all personal property owned by them, in each case free and clear of all Liens and defects,
except such as do not materially affect the value of such property and do not interfere with the
use made and proposed to be made by the Company and the Significant Subsidiaries; and all of the
leases and subleases under which the Company or any subsidiary of the Company holds properties are
in full force and effect, except where the failure of such leases and subleases to be in full force
and effect would not, singly or in the aggregate, have a Material Adverse Effect, and none of the
Company or any subsidiary of the Company has any notice of any claim of any sort that has been
asserted by anyone adverse to the rights of the Company or any subsidiary of the Company under any
such leases or subleases, or affecting or questioning the rights of such entity to the continued
possession of the leased or subleased premises under any such lease or sublease, except for such
claims that would not, singly or in the aggregate, have a Material Adverse Effect.

          (z) The Company and each of the Significant Subsidiaries have timely and duly filed all Tax
Returns (as defined below) required to be filed by them, and all such Tax Returns are true, correct
and complete in all material respects. The Company and each of the Significant Subsidiaries have
timely and duly paid in full all material Taxes required to be paid by them (whether or not such
amounts are shown as due on any Tax Return). To the knowledge of the Company, there are no federal,
state or other Tax audits or deficiency assessments proposed or pending with respect to the Company
or any of the Significant Subsidiaries. As used herein, the terms “Tax” or “Taxes”
mean (i) all federal, state, local and foreign taxes, and other assessments of a similar nature
(whether imposed directly or through withholding), including any interest, additions to tax or
penalties applicable thereto imposed by any Governmental Entity, and (ii) all liabilities in
respect of such amounts arising as a result of being a member of any affiliated, consolidated,
combined, unitary or similar group, as a successor to another person or by contract. As used
herein, the term “Tax Returns” means all federal, state, local and foreign Tax returns,
declarations, statements, reports, schedules, forms and information returns and any amendments
thereto filed or required to be filed with any Governmental Entity.

          (aa) Interest payable by the Company on the Senior Notes is deductible by the Company for
United States federal income tax purposes. There are no rulemaking or similar proceedings before
the United States Internal Revenue Service or comparable federal, state, local or foreign
government bodies which involve or affect the Company or any of its subsidiaries, which, if the
subject of an action unfavorable to the Company or any such subsidiary, could result in a Material
Adverse Effect.

10

 

          (bb) The books, records and accounts of the Company and its subsidiaries accurately and fairly
reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the
results of operations of, the Company and its subsidiaries. The Company and each of its
subsidiaries 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
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial
statements in accordance with GAAP and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or specific authorization and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences.

          (cc) The Company and the Significant Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts in all material respects
as are customary in the businesses in which they are engaged. All policies of insurance and
fidelity or surety bonds insuring the Company or any of the Significant Subsidiaries or the
Company’s or Significant Subsidiaries’ respective businesses, assets, employees, officers and
directors are in full force and effect. The Company and each of the subsidiaries are in compliance
with the terms of such policies and instruments in all material respects. Neither the Company nor
any Significant Subsidiary has reason to believe that it will not be able to renew its existing
insurance coverage in all material respects as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business at a cost that would
not have a Material Adverse Effect. Within the past twelve months, neither the Company nor any
Significant Subsidiary has been denied any insurance coverage which it has sought or for which it
has applied.

          (dd) The Company and its subsidiaries or any person acting on behalf of the Company and its
subsidiaries including, without limitation, any director, officer, agent or employee of the Company
or its subsidiaries has not, directly or indirectly, while acting on behalf of the Company and its
subsidiaries (i) used any corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to political activity, (ii) made any unlawful payment to foreign or
domestic government officials or employees or to foreign or domestic political parties or campaigns
from corporate funds, (iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as
amended, or (iv) made any other unlawful payment.

          (ee) The information provided by the Company pursuant to this Purchase Agreement, the other
Operative Documents and the transactions contemplated hereby and thereby does not, as of the date
hereof, and will not as of the Closing Date, contain any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

          (ff) Except as set forth on Schedule 4(ee) hereto, (i) the Company and its
subsidiaries have been and are in material compliance with applicable Environmental Laws (as
defined below), (ii) none of the Company, any of its subsidiaries or, to the best of the Company’s
knowledge, any other owners of any of the real properties currently or previously owned, leased or
operated by the Company or any of its subsidiaries (collectively, the

11

 

“Properties”) at any time or any other party, has at any time “released” (as such
term is defined in CERCLA (as defined below)) or otherwise disposed of a material quantity of
Hazardous Materials (as defined below) on, to, in, under or from the Properties, (iii) neither
the Company nor any of its subsidiaries has used or intends to use the Properties or any
subsequently acquired properties, other than in material compliance with applicable Environmental
Laws, (iv) neither the Company nor any of its subsidiaries has received any notice of, or has any
knowledge of any occurrence or circumstance which, with notice or passage of time or both, would
give rise to a material claim under or pursuant to any Environmental Law with respect to the
Properties or their respective assets or arising out of the conduct of the Company or its
subsidiaries, (v) none of the Properties are included or, to the best of the Company’s knowledge,
proposed for inclusion on the National Priorities List issued pursuant to CERCLA by the United
States Environmental Protection Agency or, to the best of the Company’s knowledge, proposed for
inclusion on any similar list or inventory issued pursuant to any other Environmental Law or
issued by any other Governmental Entity, (vi) none of the Company, any of its subsidiaries or
agents or, to the best of the Company’s knowledge, any other person or entity for whose conduct
any of them is or may be held responsible, has generated, manufactured, refined, transported,
treated, stored, handled, disposed, transferred, produced or processed any Hazardous Material at
any of the Properties, except in material compliance with all applicable Environmental Laws, and
has not transported or arranged for the transport of any Hazardous Material from the Properties
to another property, except in material compliance with all applicable Environmental Laws, (vii)
no lien has been imposed on the Properties by any Governmental Entity in connection with the
presence on or off such Property of any Hazardous Material or with respect to an Environmental
Law, and (viii) none of the Company, any of its subsidiaries or, to the best of the Company’s
knowledge, any other person or entity for whose conduct any of them is or may be held
responsible, has entered into or been subject to any consent decree, compliance order, or
administrative order with respect to material liabilities or violations at the Properties or any
facilities or improvements or any operations or activities thereon.

          As used herein, “Hazardous Material” shall include, without limitation, any flammable
materials, explosives, radioactive materials, hazardous materials, hazardous substances, hazardous
wastes, toxic substances or related materials, asbestos, petroleum, petroleum products and any
hazardous material as defined by any federal , state or local environmental law, statute,
ordinance, rule or regulation, including, without limitation, the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. §§ 9601-9675
(“CERCLA”), the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §§ 5101-5127,
the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §§ 6901-6992k, the Emergency
Planning and Community Right -to-Know Act of 1986, as amended, 42 U.S. C. §§ 11001-11050 , the
Toxic Substances Control Act, as amended, 15 U.S.C. §§ 2601-2692, the Federal Insecticide,
Fungicide and Rodenticide Act, as amended, 7 U.S.C. §§ 136-136y, the Clean Air Act, as amended, 42
U.S.C. §§ 7401-7642, the Clean Water Act, as amended (Federal Water Pollution Control Act), 33
U.S.C. §§ 1251-1387 , the Safe Drinking Water Act, as amended , 42 U.S.C. §§ 300f-300j-26, and the
Occupational Safety and Health Act, as amended, 29 U.S.C. §§ 651-678, and any analogous state laws,
as any of the above may be amended from time to time and in the regulations promulgated pursuant to
each of the foregoing (including environmental statutes and laws not specifically defined herein)

12

 

(individually,
an “Environmental Law” and collectively, the
“Environmental Laws”) or by any
Governmental Entity.

          (gg) In the ordinary course of its business, the Company periodically reviews the effect of
Environmental Laws on the business, operations and properties of the Company and its
subsidiaries, and periodically identifies and evaluates associated costs and liabilities
(including, without limitation, any capital or operating expenditures required for clean-up,
closure of properties or compliance with Environmental Laws or any permit, license or approval,
any related constraints on operating activities and any potential liabilities to third parties).
On the basis of such reviews and the amount of its established reserves, the Company has
reasonably concluded that such associated costs and liabilities would not, individually or in the
aggregate, result in a Material Adverse Effect.

          (hh) The Company has not filed any voluntary petition in bankruptcy or been adjudicated a
bankrupt or insolvent, or filed any petition or answer seeking any reorganization, liquidation,
dissolution or similar relief under any federal bankruptcy or insolvency laws, or other relief
for debtors, or sought or consented to or acquiesced in the appointment of any trustee, receiver,
conservator or liquidator of all or any substantial part of its respective properties. No
Proceeding (as such term is defined in the Original Indenture) has occurred and is continuing.
The Company is solvent and, upon consummation of the transactions contemplated hereby, will be
solvent. The Company is not engaged in, or about to engage in, a business or a transaction for
which the remaining assets of the Company are unreasonably small in relation to the business or
transaction, and the Company does not intend to incur, nor believes that it will incur, debts
beyond its ability to pay such debts as they become due. The Company has negotiated in good faith
and has entered into the transactions contemplated by this Purchase Agreement in good faith.

          5. Representations and Warranties of the Purchaser. The Purchaser represents and
warrants to, and agrees with, the Company as follows:

          (a) The Purchaser is aware that the Senior Notes have not been and will not be registered
under the Securities Act and may not be offered or sold within the United States or to “U.S.
persons” (as defined in Regulation S under the Securities Act) except in accordance with Rule 903
of Regulation S under the Securities Act or pursuant to an exemption from the registration
requirements of the Securities Act.

          (b) The Purchaser is an “accredited investor,” as such term is defined in Rule 501(a) of
Regulation D under the Securities Act.

          (c) Neither the Purchaser, nor any of the Purchaser’s Affiliates, nor any person acting on
the Purchaser’s or the Purchaser’s Affiliate’s behalf has engaged, or will engage, in any form of
“general solicitation” or “general advertising” (within the meaning of Regulation D promulgated
under the Securities Act) in connection with any offer or sale of the Senior Notes.

          (d) The Purchaser understands and acknowledges that (i) no public market exists for any of
the Senior Notes and that it is unlikely that a public market will ever exist for

13

 

the Senior Notes, (ii) the Purchaser is purchasing the Senior Notes for its own account, for
investment and not with a view to, or for offer or sale in connection with, any distribution
thereof in violation of the Securities Act or other applicable securities laws, subject to any
requirement of law that the disposition of its property be at all times within its control and
subject to its ability to resell such Senior Notes pursuant to an effective registration
statement under the Securities Act or pursuant to an exemption therefrom or in a transaction not
subject thereto, and the Purchaser agrees to the legends and transfer restrictions applicable to
the Senior Notes contained in the Indenture, and (iii) the Purchaser has had the opportunity to
ask questions of, and receive answers and request additional information from, the Company and is
aware that it may be required to bear the economic risk of an investment in the Senior Notes.

          (e) The Purchaser is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Delaware with all requisite limited liability company
power and authority to execute, deliver and perform the Operative Documents to which it is a
party, to make the representations and warranties specified herein and therein and to consummate
the transactions contemplated herein.

          (f) This Purchase Agreement has been duly authorized , executed and delivered by the
Purchaser and no filing with , or authorization, approval, consent, license, order, registration,
qualification or decree of, any governmental body, agency or court having jurisdiction over the
Purchaser, other than those that have been made or obtained, is necessary or required for the
performance by the Purchaser of its obligations under this Purchase Agreement or to consummate
the transactions contemplated herein.

          (g) The execution and delivery of this Purchase Agreement by the Purchaser does not, and the
consummation by the Purchaser of the transactions contemplated hereby (including the Redemption)
will not: (i) violate or conflict with or constitute a breach or default (or an event that with
notice or lapse of time, or both, would become a breach or default) under or will result in the
termination of, or accelerate the performance required under any contract or agreement to which
the Purchaser is a party or by which it is bound, or result in the creation of any Lien on the
Original Notes; or (ii) violate any law applicable to the Purchaser.

          (h) The Purchaser is the record and beneficial owner of all of the Original Notes as set
forth in the Recitals hereto and is conveying and transferring to the Company all of its legal
and beneficial ownership in the Original Notes, free and clear of any Liens.

          6. Covenants and Agreements of the Company. The Company covenants and agrees with the
Purchaser as follows:

          (a) During the period from the date of this Purchase Agreement to the Closing Date, the
Company shall use its best efforts and take all action necessary or appropriate to cause its
representations and warranties contained in Section 4 to be true as of the Closing Date,
after giving effect to the transactions contemplated by this Purchase Agreement, as if made on
and as of the Closing Date.

14

 

          (b) The Company will arrange for the qualification of the Senior Notes for sale under the laws
of such jurisdictions as the Purchaser may designate and will maintain such qualifications in
effect so long as required for the sale of the Senior Notes. The Company will promptly advise the
Purchaser of the receipt by the Company of any notification with respect to the suspension of the
qualification of the Senior Notes for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose.

          (c) The Company will not, nor will it permit any of its Affiliates to, nor will the Company
permit any person acting on its behalf (other than the Purchaser and its Affiliates) to, directly
or indirectly, resell any Senior Notes that have been acquired by any of them.

          (d) The Company will not, nor will it permit any of its Affiliates or any person acting on its
behalf (other than the Purchaser and its Affiliates) to, engage in any “directed selling efforts”
within the meaning of Regulation S under the Securities Act with respect to the Senior Notes.

          (e) The Company will not, nor will it permit any of its Affiliates or any person acting on its
behalf to, directly or indirectly, (i) sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in the Securities Act) that would or could be
integrated with the sale of the Senior Notes in any manner that would require the registration of
the Senior Notes under the Securities Act or (ii) make offers or sales of any security, or solicit
offers to buy any security, under circumstances that would require the registration of any of the
Senior Notes under the Securities Act.

          (f) The Company will not, nor will it permit any of its Affiliates or any person acting on its
behalf (other than the Purchaser and its Affiliates) to, engage in any form of “general
solicitation” or “general advertising” (within the meaning of Regulation D) in connection with any
offer or sale of the any of the Senior Notes.

          (g) So long as any of the Senior Notes are outstanding, (i) the Senior Notes shall not be
listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted
in a U.S. automated inter-dealer quotation system, (ii) the Company shall not be 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, and, the Senior Notes
shall otherwise satisfy the eligibility requirements of Rule 144A(d)(3) and (iii) the Company shall
not engage, nor permit any of its subsidiaries to engage, in any activity that would cause it or
any such subsidiary to be an “investment company” under the provisions of the Investment Company
Act.

          (h) The Company shall furnish to (i) the holder, and subsequent holders, of the Senior Notes,
(ii) Kodiak Capital Management Company LLC, 2107 Wilson Boulevard, Suite 450, Arlington, Virginia
22201, Attention: Robert M. Hurley, or such other address as designated by Kodiak Capital
Management Company LLC) and (iii) any beneficial owner of the Senior Notes reasonably identified to
the Company (which identification may be made by either such beneficial owner or by Kodiak Capital
Management Company LLC), a duly completed and executed officer’s financial certificate in the form
attached hereto as Exhibit E,

15

 

including the financial statements referenced in such Exhibit, which certificate and financial
statements shall be so furnished by the Company not later than forty-five (45) days after the end
of each of the first three fiscal quarters of each fiscal year of the Company and not later than
ninety (90) days after the end of each fiscal year of the Company, or, if applicable, such shorter
respective periods as may then be required by the Commission for the filing by the Company of
Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K.

          (i) During any period in which the Company is not subject to and in compliance with Section 13
or 15(d) of the Exchange Act, or the Company is not exempt from such reporting requirements
pursuant to and in compliance with Rule 12g3-2(b) under the Exchange Act, the Company shall provide
to each holder of the Senior Notes and to each prospective purchaser (as designated by such holder)
of the Senior Notes, upon the request of such holder or prospective purchaser, any information
required to be provided by Rule 144A(d)(4) under the Securities Act, if applicable. Any information
provided by the Company pursuant to this Section 6(i) will not, at the date thereof, contain any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If
the Company is required to register under the Exchange Act, such reports filed in compliance with
Rule 12g3-2(b) shall be sufficient information as required above. This covenant is intended to be
for the benefit of the Purchaser, the holders of the Senior Notes, and the prospective purchasers
designated by the Purchaser and such holders, from time to time, of the Senior Notes.

          (j) The Company covenants and agrees with Purchaser that the Company will not, without the
prior written consent of Purchaser, offer, sell, contract to sell, grant any option to purchase or
otherwise dispose of, directly or indirectly, any Debt (as such term is defined in the Indenture)
unless (i) the Company shall be in compliance with each of the covenants contained herein and in
the Indenture immediately after the closing of any transaction relating to such offer, sale,
contract to sell, grant, purchase or other dispositions, (ii) such Debt is Permitted Debt (as such
term is defined in the Indenture) or (iii) such Debt (x) shall be expressly subordinate by its
terms to the Senior Notes and (y) shall not contain any covenants of the Company which are more
restrictive than the financial covenants contained in the Indenture.

          (k) The Company will not identify any of Indemnified Parties (as defined below) in a press
release or any other public statement without the consent of such Indemnified Party.

          (l) The Purchaser shall have the right under this Purchase Agreement and the Indenture to
request the substitution of new Senior Notes for all or a portion of the Senior Notes held by the
Purchaser (the “Replacement Senior Notes”). The Replacement Senior Notes shall bear terms
identical to the Senior Notes with the sole exception of interest payment dates (and corresponding
redemption date and maturity date), which will be specified by the Purchaser. In no event will the
interest payment dates (and corresponding redemption date and maturity date) on the Replacement
Senior Notes vary by more than sixty (60) calendar days from the original interest payment dates
(and corresponding redemption date and maturity date) under the Senior Notes. The Company agrees to
cooperate with all reasonable requests of the Purchaser in connection with any of the foregoing;
provided, that no

16

 

action requested of the Company in connection with such cooperation shall materially
increase the obligations or materially decrease the rights of the Company pursuant to such
documents.

          (m) Notwithstanding anything to the contrary otherwise contained herein or in any other
Operative Document, prior to earlier of (i) the date eighteen (18) months from the date hereof
and (ii) the occurrence of a Change-of-Control (as defined in the Indenture), the Company shall
not offer to issue any other unsecured Debt (as such term is defined in the Indenture) which
ranks pari passu with the Senior Notes (including the Senior Notes or securities convertible
into, or exercisable or exchangeable for the same) to any other Person, unless the Company shall
first offer to Purchaser the opportunity to purchase such unsecured Debt, and shall first provide
to Purchaser a written notice thereof stating the proposed terms and conditions (the “Offered
Terms”). The Purchaser shall have the right to accept the Offered Terms by written notice to
the Company given within ten (10) days after the Purchaser’s receipt of the Offered Terms. If the
Purchaser does not accept the Offered Terms within such period, the Purchaser shall be deemed to
have rejected the Offered Terms and the Company may consummate such issuance of unsecured Debt
during the sixty (60) month period beginning on the date of the expiration of the applicable
period; provided, that such issuance of unsecured Debt shall be consummated on
substantially the same terms as the Offered Terms and shall otherwise be in accordance with the
terms hereof, including Section 6(j). If such issuance of unsecured Debt is not consummated
within such sixty (60) month period, the provisions of this Section 6(m) shall again
apply in respect of any issuance of unsecured Debt which ranks pari passu with the Senior Notes
whether made during such sixty (60) month period or thereafter.

          (n) On each of March 30, 2007, June 30, 2007 and either, at the Company’s option, September
30, 2007 or December 30, 2007, the Company shall deposit into the Interest Reserve Account an
amount equal to the amount of interest paid with respect to the Senior Notes on such Interest
Payment Date pursuant to Section 3.1(a) of the Indenture. The amounts on deposit in the Interest
Reserve Account shall not be released to the Company until such time as the Company shall (i)
have maintained a Fixed Charge Coverage Ratio (as defined in the Indenture) of not less than 2.0
to 1.0 as of the four (4) immediately preceding fiscal quarters in each case for, collectively,
such quarter together with the preceding three (3) quarters and (ii) be in compliance with all
other covenants contained herein and in the Indenture.

          7. Payment of Expenses. The Company agrees to pay all costs and expenses incident to
the performance of the obligations of the Company under this Purchase Agreement, whether or not the
transactions contemplated herein are consummated or this Purchase Agreement is terminated,
including all costs and expenses incident to (i) the fees and expenses of qualifying the Senior
Notes under the securities laws of the several jurisdictions as provided in Section 6(b),
(iii) the fees and expenses of the counsel, the accountants and any other experts or advisors
retained by the Company, (iv) the fees and all reasonable expenses of the Trustee and any other
trustee or paying agent appointed under the Operative Documents, including the fees and
disbursements of counsel for such trustees or paying agent, which fees shall not exceed a $2,000
acceptance fee, $4,000 in administrative fees annually and the fees and expenses of Potter Anderson
& Corroon LLP, (v) the reasonable fees and expenses of Winston & Strawn LLP, special counsel
retained by the Purchaser and (vi) the reasonable fees and expenses of the

17

 

Original Trustee, including the reasonable fees and disbursements of counsel for the Original
Trustee; provided, that with respect to (v) and (vi) above, such fees and expenses shall be paid on
the Closing Date.

          If the sale of the Senior Notes provided for in this Purchase Agreement is not consummated
because any condition set forth in Section 3 to be satisfied by the Company is not
satisfied, because this Purchase Agreement is terminated pursuant to Section 9 or because
of any failure, refusal or inability on the part of the Company to perform all obligations and
satisfy all conditions on its part to be performed or satisfied hereunder other than by reason of a
default by the Purchaser, the Company will reimburse the Purchaser upon demand for all reasonable
out-of-pocket expenses (including the fees and expenses of the Purchaser’s counsel specified in
clause (v) of the immediately preceding paragraph) that shall have been incurred by the Purchaser
in connection with the Redemption and the proposed purchase and sale of the Senior Notes.

          8. Indemnification. (a) The Company agrees to indemnify and hold harmless the
Purchaser, the Purchaser’s Affiliates and Kodiak Capital Management Company LLC (collectively, the
“Indemnified Parties”), each person, if any, who “controls” any of the Indemnified Parties
within the meaning of either the Securities Act or the Exchange Act, and the Indemnified Parties’
respective directors, officers, employees and agents, against any and all losses, claims, damages
or liabilities, joint or several, to which the Indemnified Parties or any of them may become
subject under the Securities Act, the Exchange Act or other federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of, are based upon or connected with (i) any untrue statement
or alleged untrue statement of a material fact contained in any information or documents furnished
or made available to the Purchaser by or on behalf of the Company, (ii) the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, (iii) the breach or alleged breach of any representation,
warranty or agreement of the Company contained herein or (iv) the execution and delivery by the
Company of this Purchase Agreement or any of the other Operative Documents and/or the consummation
of the transactions contemplated hereby and thereby, and agrees to reimburse each such Indemnified
Party, as incurred, for any legal or other expenses reasonably incurred by it in connection with
investigating or defending any such loss, claim, damage, liability or action. The indemnity
agreements contained in this Section 8 are in addition to any liability which the Company
may otherwise have.

          (b) Promptly after receipt by an Indemnified Party under this Section 8 of notice of
the commencement of any action, such Indemnified Party will, if a claim in respect thereof is to
be made against the Company under this Section 8, promptly notify the Company in writing
of the commencement thereof, but the failure so to notify the Company (i) will not relieve the
Company from liability under paragraph (a) above unless and to the extent that such failure
results in the forfeiture by the Company of material rights and defenses and (ii) will not, in
any event, relieve the Company from any obligations to any Indemnified Party other than the
indemnification obligation provided in paragraph (a) above. The Purchaser shall be entitled to
appoint counsel to represent the Indemnified Party in any action for which indemnification is
sought. The Company may participate at its own expense in the defense of any such action;
provided, that counsel to the Company shall not (except with the consent of the
Indemnified Party) also be counsel to the Indemnified Party. In no event shall the

18

 

Company be liable for fees and expenses of more than one counsel (in addition to any local
counsel) separate from its own counsel for all Indemnified Parties in connection with any one
action or separate but similar or related actions in the same jurisdiction arising out of the
same general allegations or circumstances, unless an Indemnified Party believes that his, her or
its interests are not aligned with the interests of another Indemnified Party or that a conflict
of interest might result. The Company will not, without the prior written consent of the
Indemnified Parties, settle or compromise or consent to the entry of any judgment with respect to
any pending or threatened claim, action, suit or proceeding in respect of which indemnification
may be sought hereunder (whether or not the Indemnified Parties are actual or potential parties
to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes
an unconditional release of each Indemnified Party from all liability arising out of such claim,
action, suit or proceeding.

          9. Termination; Representations and Indemnities to Survive. This Purchase Agreement
shall be subject to termination in the absolute discretion of the Purchaser, by notice given to the
Company prior to delivery of and payment for the Senior Notes, if prior to such time (i) a
downgrading shall have occurred in the rating accorded the Company’s debt securities by any
“nationally recognized statistical rating organization,” as that term is used by the Commission in
Rule 153-1(c)(2)(vi)(F) under the Exchange Act, or such organization shall have publicly announced
that it has under surveillance or review, with possible negative implications, its rating of the
Company’s debt securities, (ii) the Company shall be unable to sell and deliver to the Purchaser at
least Thirty Million Dollars ($30,000,000) in aggregate principal amount of the Senior Notes, (iii)
a suspension or material limitation in trading in securities generally shall have occurred on the
New York Stock Exchange, (iv) a suspension or material limitation in trading in any of the
Company’s securities shall have occurred on the exchange or quotation system upon which the
Company’ securities are traded, if any, (v) a general moratorium on commercial business activities
shall have been declared either by federal or Delaware authorities, (vi) there shall have occurred
any outbreak or escalation of hostilities, or declaration by the United States of a national
emergency or war or other calamity or crisis the effect of which on financial markets is such as to
make it, in the Purchaser’s judgment, impracticable or inadvisable to proceed with the offering or
purchase of the Senior Notes or (vii) the Company shall be unable to cause the Redemption to occur,
including, without limitation, the payment of the Redemption Price. The respective agreements,
representations, warranties, indemnities and other statements of the Company or its officers or
trustees and of the Purchaser set forth in or made pursuant to this Purchase Agreement will remain
in full force and effect, regardless of any investigation made by or on behalf of the Purchaser or
the Company or any of the their respective officers, directors or controlling persons, and will
survive delivery of and payment for the Senior Notes. The provisions of Sections 7 and
8 shall survive the termination or cancellation of this Purchase Agreement.

          10. Amendments . This Purchase Agreement may not be modified, amended, altered or
supplemented, except upon the execution and delivery of a written agreement by each of the parties
hereto.

          11. Notices. All communications hereunder shall be in writing and effective only on
receipt, and shall be mailed, delivered by hand or courier or sent by facsimile and confirmed:

19

 

If to the Purchaser, to:

c/o Kodiak Capital Management Company, LLC

2107 Wilson Boulevard

Suite 400

Arlington, Virginia 22201

Attention: Robert M. Hurley

Facsimile: (703) 351-7901

with a copy to:

Winston & Strawn LLP

35 West Wacker Drive

Chicago, Illinois 60601

Attention: Wayne D. Boberg

Facsimile: (312) 558-5700

if to the Company, to:

Comstock Homebuilding Companies, Inc.

11465 Sunset Hills Road

Suite 510

Reston, Virginia 20190

Facsimile: (703) 760-1520

Attention: Bruce Labovitz, Chief Financial Officer

with a copy to:

Greenberg Traurig, LLP

800 Connecticut Avenue, NW

Suite 500

Washington, D.C. 20006

Facsimile: (202) 331-3101

Attention: Stephen A. Riddick, Esq.

          All such notices and communications shall be deemed to have been duly given (i) at the time
delivered by hand, if personally delivered, (ii) five (5) Business Days after being deposited in
the mail, postage prepaid, if mailed, (iii) the next Business Day after being telecopied or (iv)
the next Business Day after timely delivery to a courier, if sent by overnight air courier
guaranteeing next-day delivery. From and after the Closing, the foregoing notice provisions shall
be superseded by any notice provisions of the Operative Documents under which notice is given. The
Purchaser and the Company, and their respective counsel, may change their respective notice
addresses, from time to time, by written notice to all of the foregoing persons.

20

 

          12. Parties in Interest; Successors and Assigns. This Purchase Agreement will inure to
the benefit of and be binding upon the parties hereto and their respective successors and permitted
assigns. Nothing expressed or mentioned in this Purchase Agreement is intended or shall be
construed to give any person other than the parties hereto and the affiliates, directors, officers,
employees, agents and controlling persons referred to in Section 8 and their successors,
assigns, heirs and legal representatives, any right or obligation hereunder. None of the rights or
obligations of the Company under this Purchase Agreement may be assigned, whether by operation of
law or otherwise, without the Purchaser’s prior written consent. The rights and obligations of the
Purchaser under this Purchase Agreement may be assigned by the Purchaser without the Company’s
consent; provided, that the assignee assumes the obligations of the Purchaser under this
Purchase Agreement.

          13. Applicable Law. This Purchase Agreement will be governed by and construed and
enforced in accordance with the law of the State of New York without reference to principles of
conflicts of law (other than Section 5-1401 of the General Obligations Law).

          14. Submission to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY
HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS PURCHASE AGREEMENT MAY BE BROUGHT IN OR REMOVED TO
THE COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF
AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN).
BY EXECUTION AND DELIVERY OF THIS PURCHASE AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT
OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND
COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS
PURCHASE AGREEMENT.

          15. Counterparts and Facsimile. This Purchase Agreement may be executed by any one or
more of the parties hereto in any number of counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same instrument. This
Purchase Agreement may be executed by any one or more of the parties hereto by facsimile.

          16. Notice of Intended Transfer. The Purchaser covenants and agrees with the Company
that the Purchaser shall provide thirty (30) days prior written notice to the Company of
Purchaser’s intent to consummate a transfer, sale or assignment of the Senior Notes to a subsequent
purchaser (including to any entity issuing or proposing to issue collateralized debt obligations)
other than an Affiliate of the Purchaser. In such event the Company shall have the right without
restriction to redeem the Senior Notes at a redemption price equal to (i) the sum of 100% of the
principal amount thereof, (ii) all accrued and unpaid interest including Additional Interest
thereon and (iii) any and all Breakage Costs incurred by the Purchaser in connection with such
redemption. The Purchaser will be obligated to accept the redemption of the Senior Notes provided
the Company is prepared to consummate the redemption on or before the date on which the Purchaser’s
transfer, sale or assignment of the Senior Notes is scheduled for closing.

21

 

[signature page follows]

22

 

     IN WITNESS WHEREOF, the parties hereto have executed this Note Purchase Agreement as of
the day and year first written above.

	 	 	 	 	 	 	 
	 	 	COMSTOCK HOMEBUILDING COMPANIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Christopher Clemente
 

Christopher Clemente
	 	 
	 

	 	Title:
	 	Chairman and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	KODIAK WAREHOUSE JPM LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Kodiak Funding, LP	 	 
	 

	 	 	 	Its: Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: Kodiak Funding Company, Inc.

        Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Robert M. Hurley
 

Robert M. Hurley
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 

[Note Purchase Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]