Document:

Exhibit 10.1  

Execution Copy  

ASSET PURCHASE AGREEMENT  

 by and between  

 LA QUINTA CORPORATION  

 and  

 CERTAIN SUBSIDIARIES OF THE MARCUS CORPORATION  

 JULY 14, 2004  

TABLE OF CONTENTS  

	1.	 	SALE OF ASSETS	 	2
	 	 	1.1	 	Purchased Assets	 	2
	 	 	1.2	 	Excluded Assets	 	5
	 	 	1.3	 	Procedures for Purchased Assets not Transferable	 	6
	

2.	
 	

ASSUMPTION OF LIABILITIES	
 	

6
	 	 	2.1	 	Assumed Liabilities	 	6
	 	 	2.2	 	Excluded Liabilities	 	7
	

3.	
 	

PURCHASE PRICE PAYMENT	
 	

8
	 	 	3.1	 	Purchase Price	 	8
	 	 	3.2	 	Payment of Purchase Price	 	9
	 	 	3.3	 	Aggregate Joint Venture Purchase Price	 	9
	 	 	3.4	 	Ovations® Liability	 	12
	 	 	3.5	 	Allocation of Purchase Price	 	13
	

4.	
 	

REPRESENTATIONS AND WARRANTIES OF THE MARCUS ENTITIES	
 	

13
	 	 	4.1	 	Corporate	 	14
	 	 	4.2	 	No Real Property Violation	 	14
	 	 	4.3	 	Financial Statements	 	15
	 	 	4.4	 	No Corporate Violations	 	15
	 	 	4.5	 	Utilities	 	15
	 	 	4.6	 	Taxes	 	16
	 	 	4.7	 	Condemnation; Eminent Domain	 	16
	 	 	4.8	 	Inventory	 	16
	 	 	4.9	 	Absence of Certain Changes	 	16
	 	 	4.10	 	No Litigation	 	18
	 	 	4.11	 	Ordinary Course	 	18
	 	 	4.12	 	Compliance With Laws and Orders; Permits; Environmental Matters; Title	 	18
	 	 	4.13	 	Condition	 	20
	 	 	4.14	 	Insurance	 	20
	 	 	4.15	 	Contracts and Commitments	 	20
	 	 	4.16	 	Labor Matters	 	21
	 	 	4.17	 	Employee Benefit Plans	 	22
	 	 	4.18	 	Assets Necessary to Marcus Mid-Priced Lodging Businesses	 	22
	 	 	4.19	 	Affiliated Relationships	 	22
	 	 	4.20	 	Not a Foreign Person	 	22
	 	 	4.21	 	No Brokers or Finders	 	22
	 	 	4.22	 	Trade Rights	 	23
	 	 	4.23	 	Franchise Matters	 	25
	 	 	4.24	 	Space Leasing	 	27
	 	 	4.25	 	Bookings	 	27
	 	 	4.26	 	Shared Facilities	 	27
	 	 	4.27	 	Rights to Purchase	 	27
	 	 	4.28	 	Joint Ventures	 	28
	 	 	4.29	 	No Shareholder Vote	 	28
	

5.	
 	

REPRESENTATIONS AND WARRANTIES OF BUYER	
 	

28
	 	 	5.1	 	Corporate	 	28
	 	 	5.2	 	No Violation	 	28
	 	 	5.3	 	Financial Capability	 	28
	 	 	5.4	 	No Brokers or Finders	 	28
	 	 	 	 	 	 	 

 

	

6.	
 	

EMPLOYEES—EMPLOYEE BENEFITS	
 	

29
	 	 	6.1	 	Employees; Affected Employees	 	29
	 	 	6.2	 	Payroll Tax	 	30
	 	 	6.3	 	Employee Benefit Plans	 	30
	

7.	
 	

PRE-CLOSING COVENANTS	
 	

32
	 	 	7.1	 	No Change in Financial Commitment(s)	 	32
	 	 	7.2	 	Access to Information and Records	 	32
	 	 	7.3	 	Conduct of Business Pending the Closing	 	33
	 	 	7.4	 	Material Consents	 	36
	 	 	7.5	 	No Solicitation or Negotiations With Other Parties	 	36
	 	 	7.6	 	Notice of Developments	 	37
	 	 	7.7	 	HSR Act Filings	 	37
	 	 	7.8	 	Additional Agreements	 	38
	 	 	7.9	 	Adverse Diligence Discoveries	 	38
	 	 	7.10	 	Meeting With Franchisees	 	42
	 	 	7.11	 	Liquor License; Other Licenses and Permits	 	42
	 	 	7.12	 	Integration and Interface Development	 	42
	 	 	7.13	 	Letters of Credit	 	43
	 	 	7.14	 	Subdivision Properties	 	43
	 	 	7.15	 	Restrictions on Real Property	 	46
	 	 	7.16	 	Data Room Web Site	 	47
	 	 	7.17	 	New Ovations Agreements	 	47
	 	 	7.18	 	Change in Officers	 	47
	 	 	7.19	 	Further Assurances	 	47
	 	 	7.20	 	Property-Level Contracts	 	47
	 	 	7.21	 	Disclosure of Transaction Stay/Severance Plan	 	47
	

8.	
 	

CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS	
 	

47
	 	 	8.1	 	Representations and Warranties True on the Closing Date	 	47
	 	 	8.2	 	Compliance With Agreement	 	47
	 	 	8.3	 	Absence of Litigation	 	48
	 	 	8.4	 	HSR Waiting Period	 	48
	 	 	8.5	 	Leases Relative to Subdivision Properties	 	48
	 	 	8.6	 	Closing Documents	 	48
	 	 	8.7	 	Consents, etc.	 	48
	 	 	8.8	 	Acts of Terror	 	48
	 	 	8.9	 	Estoppel Certificates	 	48
	 	 	8.10	 	Title Insurance Policies	 	48
	 	 	8.11	 	Employee Data	 	48
	

9.	
 	

CONDITIONS PRECEDENT TO THE MARCUS ENTITIES' OBLIGATIONS	
 	

49
	 	 	9.1	 	Representations and Warranties True on the Closing Date	 	49
	 	 	9.2	 	Compliance With Agreement	 	49
	 	 	9.3	 	Absence of Litigation	 	49
	 	 	9.4	 	HSR Waiting Period	 	49
	 	 	9.5	 	Leases Relative to Subdivision Properties	 	49
	 	 	9.6	 	Closing Documents	 	49
	

10.	
 	

RISK OF LOSS	
 	

49
	 	 	10.1	 	Casualty	 	49
	 	 	10.2	 	Condemnation	 	50
	 	 	 	 	 	 	 

ii

 

	

11.	
 	

SURVIVAL; INDEMNIFICATION	
 	

51
	 	 	11.1	 	Survival	 	51
	 	 	11.2	 	Indemnification By the Marcus Entities	 	52
	 	 	11.3	 	Indemnification By Buyer	 	52
	 	 	11.4	 	Indemnification of Third Party Claims	 	53
	 	 	11.5	 	Claims Procedure	 	53
	 	 	11.6	 	Limitations on Indemnification	 	54
	 	 	11.7	 	Exclusivity of Indemnification	 	55
	

12.	
 	

CLOSING	
 	

56
	 	 	12.1	 	Deliveries by the Marcus Entities	 	56
	 	 	12.2	 	Deliveries by Buyer	 	58
	 	 	12.3	 	Adjustments and Prorations	 	59
	

13.	
 	

TERMINATION	
 	

61
	 	 	13.1	 	Right of Termination Without Breach	 	61
	 	 	13.2	 	Other Terminations	 	61
	

14.	
 	

POST-CLOSING COVENANTS	
 	

62
	 	 	14.1	 	Confidential Information	 	62
	 	 	14.2	 	Use of Baymont and Woodfield Names	 	62
	 	 	14.3	 	Bulk Sales Compliance	 	63
	 	 	14.4	 	Records and Retention and Access	 	63
	 	 	14.5	 	Insurance	 	63
	 	 	14.6	 	Financial Information	 	64
	 	 	14.7	 	Tax Matters	 	65
	 	 	14.8	 	Post-Closing Accounts Payable Matters	 	66
	 	 	14.9	 	Post-Closing Accounts Receivable Matters	 	66
	 	 	14.10	 	Guest Baggage	 	66
	 	 	14.11	 	Safe Deposits	 	66
	 	 	14.12	 	Nonsolicitation; Cooperation	 	67
	 	 	14.13	 	Division of Subdivision Properties	 	68
	 	 	14.14	 	Section 1031 Exchanges	 	69
	 	 	14.15	 	Further Assurances	 	69
	 	 	14.16	 	Excluded Properties	 	69
	

15.	
 	

RESOLUTION OF DISPUTES	
 	

70
	 	 	15.1	 	Arbitration	 	70
	 	 	15.2	 	Arbitrators	 	70
	 	 	15.3	 	Procedures; No Appeal	 	70
	 	 	15.4	 	Authority	 	70
	 	 	15.5	 	Entry of Judgment	 	70
	 	 	15.6	 	Confidentiality	 	70
	 	 	15.7	 	Continued Performance	 	70
	 	 	15.8	 	Tolling	 	70
	

16.	
 	

DEFINITIONS	
 	

71
	

17.	
 	

MISCELLANEOUS	
 	

80
	 	 	17.1	 	Schedules	 	80
	 	 	17.2	 	Assignment; Parties in Interest	 	80
	 	 	17.3	 	Recordings	 	80
	 	 	17.4	 	Law Governing Agreement	 	81
	 	 	17.5	 	Amendment and Modification	 	81
	 	 	 	 	 	 	 

iii

 

	 	 	17.6	 	Notice	 	81
	 	 	17.7	 	Expenses	 	82
	 	 	17.8	 	Publicity	 	82
	 	 	17.9	 	Disclaimer	 	82
	 	 	17.10	 	Knowledge	 	83
	 	 	17.11	 	Forecasts; Memorandum; Due Diligence	 	83
	 	 	17.12	 	Buyer's Experience	 	83
	 	 	17.13	 	Entire Agreement	 	84
	 	 	17.14	 	Counterparts; Facsimile Signatures	 	84
	 	 	17.15	 	Severability	 	84
	 	 	17.16	 	Headings	 	84
	 	 	17.17	 	Construction	 	84
	 	 	17.18	 	Incorporation of Schedules	 	84
	 	 	17.19	 	Materiality Threshold	 	84

	Exhibits

	

Exhibit A	
 	

Financial Terms of Joint Venture Offers
	Exhibit A-1	 	Aggregate Individual JV Price
	Exhibit B	 	Form of Guarantee of The Marcus Corporation
	Exhibit C-1	 	Form of Opinion of Foley & Lardner LLP
	Exhibit C-2	 	Form of Opinion of Goodwin Procter LLP
	Exhibit D	 	Real Property Purchase Price Allocation
	Exhibit E	 	Form of Interim Beverage Services Agreement
	Exhibit F	 	Integration and Interface Development Workplan
	Exhibit G	 	Form of Subdivision Parcel Lease
	Exhibit H	 	Form of Transition Services Agreement
	Exhibit I	 	Form of New JV Property Management Agreement
	
Schedules

	

Schedule 1.1(a)(1)	
 	

Marcus Owned Real Property
	Schedule 1.1(a)(2)	 	Selling Joint Venture Owned Real Property
	Schedule 1.1(b)	 	Real Property Leases
	Schedule 1.1(d)(1)	 	Marcus Personal Property Leases
	Schedule 1.1(d)(2)	 	Selling Joint Venture Personal Property Leases
	Schedule 1.1(e)(1)	 	Marcus Contracts
	Schedule 1.1(e)(2)	 	Selling Joint Venture Contracts
	Schedule 1.1(h)	 	Computer Software
	Schedule 1.1(i)	 	Websites
	Schedule 1.1(m)(1)	 	Marcus Assigned Licenses and Permits
	Schedule 1.1(m)(2)	 	Selling Joint Venture Assigned Licenses and Permits
	Schedule 1.2(g)	 	Retained Real Property
	Schedule 1.2(m)	 	Shared Assets
	Schedule 3.3(b)	 	Selling Joint Venture Operating/Partnership Agreements
	Schedule 4.2	 	Marcus Material Consents
	Schedule 4.3	 	Financial Statements
	Schedule 4.4	 	Exceptions to No Corporate Violations
	Schedule 4.6(a)	 	Taxes
	Schedule 4.6(b)	 	Disputes and Exceptions to Absence of Waiver of Statute of Limitations
	 	 	 

iv

 

	Schedule 4.8	 	Exceptions to Inventory Location
	Schedule 4.9	 	Exceptions to Absence of Certain Changes
	Schedule 4.10	 	Litigation
	Schedule 4.12(a)	 	Exceptions to Compliance with Laws and Orders and Other Matters
	Schedule 4.12(b)	 	Exceptions to Compliance with Licenses and Permits
	Schedule 4.12(c)	 	Environmental Matters
	Schedule 4.12(d)	 	Liens
	Schedule 4.14	 	Insurance
	Schedule 4.15	 	Marcus Material Contracts
	Schedule 4.16(a)	 	Labor Matters
	Schedule 4.16(b)	 	Affirmative Action and Prevailing Wage Obligations
	Schedule 4.16(e)	 	Contingent Workers
	Schedule 4.17	 	Employee Benefits Plans
	Schedule 4.17(b)	 	Exceptions to Payments or Increases under Employee Benefits Plans
	Schedule 4.18	 	Exceptions to Assets Necessary to Marcus Mid-Priced Lodging Businesses
	Schedule 4.19	 	Affiliated Relationships
	Schedule 4.22(a)	 	Scheduled Trade Rights
	Schedule 4.22(b)	 	Trade Rights Not Owned or Licensed to Marcus Entities
	Schedule 4.22(c)	 	Due Maintenance Fees
	Schedule 4.22(d)	 	Domain Names
	Schedule 4.22(e)	 	Licensed Trade Rights
	Schedule 4.22(f)	 	Trade Rights Licensed Out
	Schedule 4.22(h)	 	Trade Right Infringement
	Schedule 4.23(d)	 	Exceptions to Delivery of Baymont Circular
	Schedule 4.23(g)	 	Exceptions to Compliance with Franchise Documents
	Schedule 4.23(h)	 	Exceptions to Absence of Notice of Noncompliance
	Schedule 4.23(j)	 	Exceptions to Absence of Offering of Franchises
	Schedule 4.23(k)	 	Exceptions to Absence of Assumption of Liability
	Schedule 4.23(l)	 	Exceptions to Absence of Leasing or Subleasing
	Schedule 4.23(m)	 	Exceptions to Absence of Financing Arrangement
	Schedule 4.23(n)	 	Exceptions to Service by the Marcus Entities
	Schedule 4.23(o)	 	Franchise Documents
	Schedule 4.23(p)	 	Exceptions to Compliance with Franchise Laws
	Schedule 4.23(q)	 	Exceptions to Absence of Notice or Consent
	Schedule 4.23(u)	 	Exceptions to Claims Asserted by Franchisees
	Schedule 4.23(v)	 	Exceptions to Franchise Document Renewals
	Schedule 4.24	 	Space Leases
	Schedule 4.25	 	Bookings
	Schedule 4.26	 	Exception to Shared Facilities
	Schedule 6.1(a)	 	Employees
	Schedule 6.1(b)	 	Employment Sites and Employment Losses
	Schedule 7.11	 	Liquor Licenses
	Schedule 7.14	 	Subdivision Properties
	Schedule 8.7	 	Consents Required for Closing

v

ASSET PURCHASE AGREEMENT  

        ASSET PURCHASE AGREEMENT (this "Agreement") dated July 14,
2004, by and between LA QUINTA CORPORATION, a Delaware corporation ("Buyer"); and each of the other
signatories to this Agreement, each of which is a wholly-owned direct or indirect subsidiary of Marcus (collectively, the "Marcus Entities").  THE MARCUS
CORPORATION, a Wisconsin corporation ("Marcus"), hereby joins in this Agreement solely to
cooperate and be a direct and primary obligor to the full and prompt performance of the obligations of the Marcus Entities under Article 11 of
this Agreement pursuant to that certain Guarantee, Cooperation and Non-Interference Agreement of The Marcus Corporation in the form attached hereto as  Exhibit B. All defined terms used herein shall
have the meaning set forth in Article 16 or
elsewhere in this Agreement. 

R E C I T A L S  

        A.    Marcus,
through its subsidiaries, is engaged in three businesses: limited service, mid-priced without food and beverage lodging, movie theatres and full
service hotels and resorts. 

        B.    Marcus
Consid, LLC, a wholly-owned subsidiary of Marcus ("Marcus Consid"), owns certain real estate that is utilized in
the Marcus Mid-Priced Lodging Businesses (as defined below) and that is located in Alabama, Georgia, Indiana, Louisiana, Mississippi, Missouri, Nebraska, New Mexico, Oklahoma,
Pennsylvania, Texas, Utah and Wisconsin. 

        C.    Marcus
Non, LLC, a wholly-owned subsidiary of Marcus ("Marcus Non"), owns certain real estate that is utilized in the
Marcus Mid-Priced Lodging Businesses and that is located in Arkansas, Colorado, Connecticut, Illinois, Iowa, Massachusetts, Michigan, Minnesota, New York, North Carolina, Ohio, and
Tennessee. 

        D.    Marcus
Fl, LLC, a wholly-owned subsidiary of Marcus ("Marcus Fl"), owns certain real estate that is utilized in the Marcus
Mid-Priced Lodging Businesses and that is located in Florida. 

        E.    Baymont
Partners, LLC, a wholly-owned subsidiary of Marcus ("Baymont Partners"), owns certain real estate that is utilized
in the Marcus Mid-Priced Lodging Businesses and that is located in Ohio and Tennessee. 

        F.     Marcus-Anderson
Partnership, a wholly-owned subsidiary of Marcus ("Marcus-Anderson Partnership"), owns certain real estate
that is utilized in the Marcus Mid-Priced Lodging Businesses and that is located in Florida, Ohio and South Carolina. 

        G.    Marcus
Consid, Marcus Non, Marcus Fl, Baymont Partners and Marcus-Anderson Partnership own or ground lease (or sub-ground lease or
sub-sub-ground lease) all of the real estate assets used in the Marcus Mid-Priced Lodging Businesses, with the exception of real estate owned or ground leased (or
sub-ground lease or sub-sub-ground lease) by the Joint Ventures, which own or ground lease (or sub-ground lease or
sub-sub-ground lease) all of the remaining real estate assets used in the Marcus Mid-Priced Lodging Businesses. 

        H.    Baymont
Inns, Inc., a wholly-owned subsidiary of Marcus ("Baymont"), is in the limited service,
mid-price without food and beverage segment of the lodging industry through (i) its operation of Baymont Inn and Baymont Inn & Suites lodging facilities (excluding any
applicable Excluded Properties, "Baymont Hotels"), (ii) its franchising of Baymont Hotels and (iii) its operation of one Budgetel Inn
owned by Marcus Consid (collectively, but excluding any business of the applicable Excluded Properties, the "Baymont Business"). 

        I.     Baymont
owns all of the Trade Rights and certain other assets associated with the Baymont Business and manages the Baymont Business through its subsidiaries. 

        J.     Baymont
Inns Hospitality LLC, a wholly-owned subsidiary of Baymont ("Baymont Hospitality"), (i) owns, leases or
otherwise has a right to use all of the furniture, fixtures, equipment and other tangible and intangible personal property associated with the owned Baymont Hotels and Budgetel Inn, with the exception
of furniture, fixtures, equipment and other tangible and intangible 

 

personal
property at the hotels owned by the Joint Ventures, (ii) operates the owned Baymont Hotels and Budgetel Inn and (iii) owns, leases or otherwise has a right to use all of the
furniture, fixtures, equipment and other tangible and intangible personal property associated with all of the Woodfield Suites lodging facilities (excluding any applicable Excluded Properties,
"Woodfield Hotels"). Such furnishings, fixtures, equipment and other tangible and intangible personal property owned by Baymont Hospitality constitutes
all of the furnishings, fixtures, equipment and other tangible and intangible personal property used in the operation and maintenance of the Marcus Mid-Priced Lodging Businesses (other
than the Trade Rights and the Franchise Documents). 

        K.    Baymont
Partners owns the Marcus Entities' interests in each of the Joint Ventures. 

        L.    Baymont
Franchises International, LLC, a wholly-owned subsidiary of Baymont ("Baymont Franchises"), operates the
franchising operations of the Baymont Business and is the franchisor of each of the franchised Baymont Hotels. 

        M.   Woodfield
Suites, Inc., a wholly-owned subsidiary of Marcus ("Woodfield"), is in the mid-market segment
of the lodging industry through its operation of Woodfield Hotels (excluding the business of the applicable Excluded Properties, the "Woodfield
Business" and, with the Baymont Business, the "Marcus Mid-Priced Lodging Businesses"). 

        N.    Woodfield
owns all of the Trade Rights associated with the Woodfield Business. Baymont Hospitality operates all of the Woodfield Suites hotels. 

        O.    Woodfield
Suites Franchises International, Inc., a wholly-owned subsidiary of Woodfield ("Woodfield Franchises"),
owns the right to franchise Woodfield Hotels and the franchising operations of the Woodfield Business, but no such franchises have been awarded. 

        P.     Woodfield
Suites Hospitality Corporation, a wholly-owned subsidiary of Woodfield, through several wholly owned subsidiaries, owns all of the liquor licenses associated
with the Woodfield Hotels and the Woodfield Business. 

        Q.    Buyer
desires to purchase from the Marcus Entities and the Selling Joint Ventures, and the Marcus Entities desire to sell and transfer to Buyer, and to cause the Selling
Joint Ventures to sell and transfer to Buyer, all of the business, rights, claims and assets of the Marcus Entities, the Selling Joint Ventures or their Affiliates used or held for use by the Marcus
Entities, the Selling Joint Ventures or their Affiliates in the operation of the Marcus Mid-Priced Lodging Businesses, except as expressly disclosed in  Schedule 4.18 hereto and the Marcus Entities
and the Selling Joint Ventures further desire to assign to Buyer, and Buyer desires to assume, pay,
honor, discharge and perform the Assumed Liabilities set forth in Section 2.1. 

        NOW THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants, agreements and conditions
hereinafter set forth, and intending to be legally bound hereby, the parties hereto agree as follows: 

1.     SALE OF ASSETS  

        1.1    Purchased Assets.    Subject to the terms and conditions of this Agreement, on the Closing Date, the Marcus
Entities shall sell, convey, transfer, assign and deliver to Buyer and, as applicable, cause the Selling Joint Ventures to sell, convey, transfer, assign and deliver to Buyer, and Buyer shall
purchase, accept and acquire (and assume to the limited extent expressly provided in this Agreement) from the Marcus Entities and the Selling Joint Ventures, all of the business, rights, claims and
assets (of every kind, nature, character and description, whether real, personal or mixed, whether tangible or intangible, whether accrued, contingent or otherwise, and wherever situated) of the
Marcus Entities, the Selling Joint Ventures and their Affiliates used or held for use in the operation of the Marcus Mid-Priced Lodging Businesses as conducted in accordance with past
practices, together with all rights 

2

 

and
privileges associated with such assets, other than the Excluded Assets (collectively, the "Purchased Assets"), as of the Closing Date, free and
clear of all Liens, including, without limitation, the following specified assets: 

        1.1(a)    Owned Real Property.    All of the real property related to the Marcus Mid-Priced Lodging
Businesses, including buildings, structures, fixtures, improvements and all appurtenant rights (including, without limitation, any rights owned by the Marcus Entities or the Selling Joint Ventures in
adjacent streets and ways (open or proposed), easements, development rights, air rights, mineral and other subsurface rights, water rights, and rights under restrictive covenants) owned by
(i) the Marcus Entities described on Schedule 1.1(a)(1) (the "Marcus Owned Real Property")
and (ii) the Selling Joint Ventures described on Schedule 1.1(a)(2) (the "Selling Joint Venture Owned Real
Property," and, collectively with the Marcus Owned Real Property, the "Owned Real Property"). 

        1.1(b)    Leased Real Property.    Subject to Section 1.3, all
of the Marcus Entities' rights in, to and under all of their real property leases related to the Marcus Mid-Priced Lodging Businesses, all of which are set forth on  Schedule 1.1(b) (the
"Real Property Leases"). 

        1.1(c)    Owned Personal Property.    All of the equipment, computers, telecommunications and information technology
systems, supplies, furniture, fixtures, machinery, tools, vehicles, appliances, art work, signage, appliances, draperies, carpeting, rugs, keys and all other tangible personal property (excluding the
Inventory and Computer Software) related to the Marcus Mid-Priced Lodging Businesses and owned by (i) the Marcus Entities ("Marcus Owned Personal
Property") and (ii) the Selling Joint Ventures (the "Selling Joint Venture Owned Personal Property" and, collectively
with the Marcus Owned Personal Property, the "Owned Personal Property"). 

        1.1(d)    Personal Property Leases.    Subject to Section 1.3,
all of the Marcus Entities' and Selling Joint Ventures' rights in, to and under all of their leases of billboards (regardless of whether such leases may be considered real property leases), equipment,
computers, furniture, fixtures, machinery, tools, vehicles, appliances, art work, signage, appliances, draperies, carpeting, rugs, keys and other personal property, together with all deposits made
thereunder, related to the Marcus Mid-Priced Lodging Businesses, all of which are set forth on Schedule 1.1(d)(1) (the
"Marcus Personal Property Leases") and all of the Selling Joint Ventures' similar lease rights, all of which are set forth on  Schedule 1.1(d)(2) (the
"Selling Joint Venture Personal Property Leases" and, collectively with
the Marcus Personal Property Leases, the "Personal Property Leases"). 

        1.1(e)    Contracts.    Subject to Section 1.3, all of
(i) the Marcus Entities' rights in, to and under all of their Contracts, including those which are set forth on Schedule 1.1(e)(1) (the
"Marcus Contracts") and the franchise agreements, if any, entered into pursuant to Section 14.16
and (ii) the Selling Joint Ventures' rights in, to and under all of their Contracts, including those which are set forth on  Schedule 1.1(e)(2) (the "Selling Joint
Venture Contracts" and, collectively with the Marcus
Contracts and the franchise agreements, if any, entered into pursuant to Section 14.16, the "Assigned
Contracts"). 

        1.1(f)    Inventory.    All of the Marcus Entities' and the Selling Joint Ventures' inventory, including that which is
ordered for future use at the Properties, as of the Closing Date, including, without limitation, all mattresses, pillows, bed linens, towels, powder goods, soaps, cleaning supplies, toiletries,
stationery, menus, directories, and other printed materials and any other supplies, together with all food and beverages (whether opened or unopened) (the
"Inventory"). 

        1.1(g)    Trade Rights.    All of the Marcus Entities' and the Selling Joint Ventures' rights, title and interest in
and to any and all Trade Rights used in the operation of the Marcus Mid-Priced Lodging Businesses, including, without limitation, all Trade Rights in and to the names "Baymont,"
"Woodfield," "Budgetel" and "Ovations" (the "Marcus Trade Rights"). 

3

 

        1.1(h)    Computer Software.    Subject to Section 1.3, all of
the Marcus Entities' and, if applicable, the Selling Joint Ventures' rights, title and interest in and to any computer source codes, programs and other software including, but not limited to, all
machine readable code, printed listings of code, documentation, booking engines and related property and information (the "Computer Software"), and all
escrow, maintenance, hosting, outsourcing and other agreements related to such Computer Software and other technology, in each case, used in the operation of the Marcus Mid-Priced Lodging
Businesses, including, without limitation, those items set forth on Schedule 1.1(h). 

        1.1(i)    Websites.    All of the Marcus Entities' and the Selling Joint Ventures' rights, title and interest in and
to any domain names and websites and any intranet used in connection with the Marcus Mid-Priced Lodging Businesses, including, without limitation, all Trade Rights related thereto and the
domain names and websites identified on Schedule 1.1(i). 

        1.1(j)    Sales Literature.    All of the Marcus Entities' and the Selling Joint Ventures' sales literature,
promotional literature, catalogs and similar materials used in the operation of the Marcus Mid-Priced Lodging Businesses, including, without limitation, all copyrights therein. 

        1.1(k)    Records and Files.    All of the Marcus Entities' and the Selling Joint Ventures' Records and Files related
to the operation of the Marcus Mid-Priced Lodging Businesses, including, without limitation, all customer records and historical guest and transaction information stored or maintained in
Marcus' data warehouse in machine readable form (the "Marcus Records and Files"), subject to the Marcus Entities' access rights under  Section 14.4(a)
hereof. 

        1.1(l)    Prepaid Expenses.    All of the Marcus Entities' and the Selling Joint Ventures' security, vendor, utility
and other deposits and other prepaid expenses related to the Marcus Mid-Priced Lodging Businesses. 

        1.1(m)    Licenses and Permits.    Subject to Sections 1.3 and  7.11, all of the Marcus
Entities' and the Selling Joint Ventures' Licenses and Permits used in the operation of the Marcus Mid-Priced
Lodging Businesses, each of which is held on the Closing Date by (i) the Marcus Entities, including, without limitation, those items set forth on  Schedule 1.1(m)(1) (the "Marcus Assigned Licenses and Permits") and (ii) the Selling Joint
Ventures, including, without limitation, those items set forth on  Schedule 1.1(m)(2) (the "Selling Joint Venture Assigned Licenses and Permits") and,
collectively
with the Marcus Assigned Licenses and Permits, the "Assigned Licenses and Permits"). 

        1.1(n)    Warranties.    Subject to Section 1.3, all warranties
and guaranties held by the Marcus Entities and the Selling Joint Ventures with respect to any of the Purchased Assets (the "Warranties"). 

        1.1(o)    Bookings.    Subject, in the case of bookings and reservations that include the Closing Date, to  Section 12.3, all of
the Marcus Entities' and the Selling Joint Ventures' bookings and reservations for guest rooms or other facilities at the
Properties (the "Bookings") as of the Closing for periods after Closing, together with all deposits paid or payable to the Marcus Entities and the
Selling Joint Ventures with respect thereto. 

        1.1(p)    Franchises.    All of the Marcus Entities' and the Selling Joint Ventures' rights and privileges of the
franchisor or licensor under each of the Franchise Documents, including, without limitation, any cash balances under any advertising and marketing funds and other funds and cooperatives and franchise
contract deposits. 

        1.1(q)    General Intangibles.    All of the Marcus Entities' and the Selling Joint Ventures' other intangible rights
and assets, including their toll-free telephone numbers and all reservation system related telephone numbers and information system spread-sheet and database systems (excluding 

4

 

all
causes of action arising out of occurrences before the Closing, except to the extent that they relate to the Assumed Liabilities) which are, in each case, used in, or related to, the operation and
ownership of the Marcus Mid-Priced Lodging Businesses. 

        1.2    Excluded Assets.    The Purchased Assets shall not include, the Marcus Entities and the Selling Joint Ventures
shall not sell, convey, transfer, assign or deliver to Buyer, and Buyer shall not purchase, assume, accept or acquire from the Marcus Entities or the Selling Joint Ventures the following specified
assets, and all assets not used in the operation of the Marcus Mid-Priced Lodging Businesses (collectively, the "Excluded Assets"): 

        1.2(a)    Cash and Cash Equivalents.    Except for deposits expressly included in  Section 1.1, all of the Marcus Entities' and
the Selling Joint Ventures' cash and cash equivalents. 

        1.2(b)    Consideration.    The consideration delivered and to be delivered by Buyer to the Marcus Entities and the
Selling Joint Ventures pursuant to this Agreement and the Ancillary Agreements. 

        1.2(c)    Rights and Benefits.    The rights and benefits which accrue or will accrue to the Marcus Entities and the
Selling Joint Ventures under this Agreement and the Ancillary Agreements. 

        1.2(d)    Corporate Existence.    The Marcus Entities' and the Joint Ventures' company, limited liability or
partnership franchises, their organizational documents, corporate seals, stock or membership interest books, minute books and other records having exclusively to do with the organization, maintenance
and existence of such entities. 

        1.2(e)    Attorney-Client Privilege.    Any and all of the Marcus Entities' and the Selling Joint Ventures' and any of
their Affiliates' rights and interest in and to that information which, in the good faith opinion of counsel to the Marcus Entities (including Marcus' General Counsel), would be subject to the
attorney client and/or attorney work product privilege between any law firm and such entity or entities as a result of such law firm's legal representation of such entity or entities in connection
with the transactions contemplated by this Agreement and the Ancillary Agreements. 

        1.2(f)    Other Acquisition Proposals.    Any other acquisition proposals and inquiries with respect thereto relating
to the sale or transfer of the Purchased Assets, the assets of any of the Joint Ventures or the Marcus Mid-Priced Lodging Businesses (or any portion thereof). 

        1.2(g)    Retained Real Property.    Subject, as applicable, to Sections
7.14 and 7.15, other than the Owned Real Property and the Properties subject to the Real Property Leases, all of the real
property, including buildings, structures, fixtures, improvements and all appurtenant rights (including, without limitation, any rights in adjacent streets and ways (open or proposed), easements,
development rights, air rights, mineral and other subsurface rights, water rights, and rights under restrictive covenants), owned by any Marcus Entity or any Selling Joint Venture not used in or
required for the operation of the Mid-Priced Lodging Businesses and described on Schedule 1.2(g) and any other real property owned by
a Marcus Entity, Marcus or any Affiliate of Marcus and located adjacent to, or within one-quarter (1/4) mile of, any Use-Restricted Property (the
"Retained Real Property"). 

        1.2(h)    Tax Credits and Records.    All of the Marcus Entities' and the Selling Joint Ventures' federal, state and
local income and franchise Tax credits and Tax refund claims with respect to any period prior to the Closing Date and associated returns and records. 

        1.2(i)    Obligations of Affiliates.    All notes, drafts, accounts receivable or other obligations for the payment of
money, made or owed by any Affiliate of the Marcus Entities to any of the Marcus Entities or the Selling Joint Ventures or any of their direct or indirect subsidiaries pertaining to the period at or
prior to the Closing Date. 

5

 

        1.2(j)    Litigation.    All rights and interests in and recoveries under, including all such rights, interest and
recoveries arising out of counterclaims, the Retained Litigation. 

        1.2(k)    Accounts Receivable.    All of the Marcus Entities and the Selling Joint Ventures' Accounts Receivable. 

        1.2(l)    Excluded Properties.    The Excluded Properties and assets used solely in the operation of one or more
Excluded Properties. 

        1.2(m)    Shared Assets.    All of the Marcus Entities' rights and interests in those assets set forth on  Schedule 1.2(m).

        1.3    Procedures for Purchased Assets not Transferable.    Subject to Sections
7.4 and 7.11, if any of the Contracts, Personal Property Leases, Computer Software, Licenses and Permits, any letters of credit
supporting the obligations of third parties, or Warranties is not assignable or transferable either by virtue of the provisions thereof or under applicable Law without the consent of some party or
parties and any such consent is not obtained prior to the Closing, this Agreement and the related instruments of transfer shall not constitute an assignment thereof or an attempted assignment thereof
if such assignment or attempted assignment would constitute a breach thereof, and, unless otherwise agreed between Buyer and the Marcus Entities and/or the Selling Joint Ventures, as applicable, with
respect to such Contract, Personal Property Leases, Computer Software, Licenses and Permits, any letters of credit supporting the obligations of third parties, or Warranties, Buyer shall not assume
the Marcus Entities' and/or the Selling Joint Ventures', as applicable, obligations with respect thereto, but the Marcus Entities and/or the Selling Joint Ventures, as applicable, shall use reasonable
efforts to obtain any such consent as soon as possible after the Closing or otherwise obtain for Buyer the practical benefit of such contract, agreement, property or rights and Buyer shall use
reasonable efforts to assist in that endeavor; provided, however, that nothing in this  Section 1.3
shall require the Marcus Entities or other Selling Joint Ventures to pay or agree to pay additional unreasonable amounts of money or
agree to any new or additional unreasonably unfavorable terms or conditions. 

2.     ASSUMPTION OF LIABILITIES  

        2.1    Assumed Liabilities.    Subject to the terms and conditions of this Agreement, on the Closing Date, the Marcus
Entities and the Selling Joint Ventures shall assign to Buyer, and Buyer shall assume and agree to pay, honor, discharge and perform only the following Liabilities (the
"Assumed Liabilities"): 

        2.1(a)    Any
Liabilities that arise and accrue from and after the Closing Date on account of Buyer's ownership, conduct or operation of the Marcus Mid-Priced
Lodging Businesses and/or Buyer's use of the Purchased Assets, including under the Assigned Contracts and the Assigned Licenses and Permits; 

        2.1(b)    Any
Liabilities arising under the Ovations program and any other rewards or similar program of the Marcus Mid-Priced Lodging Businesses; 

        2.1(c)    Any
Liabilities with respect to deposit obligations for future bookings for which Buyer receives a credit hereunder; 

        2.1(d)    Any
Liabilities for breaches of the representations and warranties of the Marcus Entities and the Selling Joint Ventures herein for which indemnification is not
required to be provided by the Marcus Entities; 

        2.1(e)    Any
Liabilities for any Adverse Diligence Discovery for which the Purchase Price is not adjusted pursuant to this Agreement; 

6

 

        2.1(f)    Any
Liabilities for Litigation related to the ownership, conduct, or operation of the Marcus Mid-Priced Lodging Businesses based on actions that occurred
both prior to and after the Closing that are first asserted against Buyer, any Marcus Entity or any Selling Joint Venture in writing on or after the second anniversary of the Closing Date; 

        2.1(g)    Any
unused vacation to the extent earned by Affected Employees while employed by the Marcus Entities for which Buyer receives a credit hereunder; 

        2.1(h)    Any
Liabilities associated with COBRA, if any, with respect to all Affected Employees; 

        2.1(i)    Any
Liabilities for which Buyer receives a credit hereunder; and 

        2.1(j)    Any
Liabilities of the Marcus Entities to be borne by Buyer pursuant to Section 17.7(c). 

        2.2    Excluded Liabilities.    The Marcus Entities and the Selling Joint Ventures are not assigning to Buyer and
Buyer is neither assuming nor agreeing to pay, honor, discharge and perform any Liabilities of the Marcus Entities or the Selling Joint Ventures that are not explicitly Assumed Liabilities (the
"Excluded Liabilities"), including, without limitation, the following Specifically Identified Excluded Liabilities: 

        2.2(a)    Any
Liabilities that arise or have arisen out of, in respect of or as the result of the ownership or operation of the Excluded Assets, including the shared assets set
forth on Schedule 1.2(m), whether arising before or after the Closing Date; 

        2.2(b)    Subject
to Section 2.2(i), any Liabilities for any Infringement or alleged Infringement of the rights of any
other Person relating to Trade Rights the proximate cause of which arise or have arisen out of, in respect of or as the result of (A) the ownership, operation or transfer of the Trade Rights at
or prior to the Closing, or (B) the ownership or operation of any Trade Right that does not constitute a Purchased Asset; 

        2.2(c)    Any
Liability to any broker, finder or agent employed by the Marcus Entities, the Selling Joint Ventures or their Affiliates for any brokerage fees, finders fees or
commissions with respect to the transactions contemplated by this Agreement; 

        2.2(d)    Subject
to Section 6.1(c), all Liabilities related to pre-Transfer Date employment by or service to
a Marcus Entity or a Selling Joint Venture by any Employee or Contingent Worker including without limitation under any Employee Plans/Agreements (including any 401(k) plan) or similar plans,
agreements or policies of the Marcus Entities, the Selling Joint Ventures or their Affiliates, whether arising before or after the Closing Date, including, without limitation, employee or employer
contributions to any employee benefit or pension plan and obligations and liabilities for payroll, severance pay, Transaction Stay/Severance Payments, accrued vacation, personal days, sick leave,
bonuses and all other compensation, and any Taxes, withholding and Tax reporting associated therewith, or any unemployment or workers compensation benefit; 

        2.2(e)    Any
Liabilities for Taxes owed by the Marcus Entities or their Affiliates for any period, whether payable before or after the Closing, including, without limitation
(i) any Liability for Taxes of any other Person under Treasury Regulation Section 1.1502-6 (or any similar provision of applicable state, local or foreign law), as a
transferee or successor, by contract, or otherwise, and (ii) other than as set forth in Section 17.7(c), any Liability for Taxes arising
in connection with, or as a result of, the transactions contemplated by this Agreement or the Ancillary Agreements; 

        2.2(f)    Any
Liabilities of the Marcus Entities whether arising prior to or after the Closing Date under any inter-company payables of the Marcus Entities to any of their
Affiliates; 

7

 

        2.2(g)    Any
Liabilities relating to any Liens or other exceptions to good and marketable title (or, with respect to the Properties subject to the Real Property Leases,
leasehold title) to any of the Purchased Assets; 

        2.2(h)    Except
as otherwise expressly provided in Section 2.1, any Liabilities for accounts payable related to the
operation of the Marcus Mid-Priced Lodging Businesses prior to the Closing, including, without limitation, any accounts payable relating to any goods or services provided for the benefit
of the Marcus Entities and/or the Selling Joint Ventures prior to the Closing Date; 

        2.2(i)    Any
Liabilities for any Litigation (including, without limitation, any Litigation relating to personal injury, property damages, employee related matters or
environmental matters and any third-party Litigation relating to the Marcus Entities' ability to consummate the transactions contemplated by this Agreement) against Buyer, any Marcus Entity, any
Selling Joint Venture, the Marcus Mid-Priced Lodging Businesses or otherwise affecting any of the Purchased Assets the proximate cause of which is based on any event, act, omission, or
other state of facts first occurring or existing prior to the Closing Date; including, without limitation, any Liabilities based on any event, act, omission or other state of facts, occurring or
existing both prior to and after the Closing Date, to the extent such are first asserted against Buyer, any Marcus Entity, any Selling Joint Venture or any of their Affiliates in writing prior to the
second anniversary of the Closing Date; 

        2.2(j)    Any
Liabilities for which the Marcus Entities or the Selling Joint Ventures receive a credit hereunder; 

        2.2(k)    Any
Liabilities with respect to claims by any co-owners of any Joint Ventures arising from the operation of the Marcus Mid-Priced Lodging
Businesses prior to the Closing Date or related solely to the transactions contemplated by this Agreement; 

        2.2(l)    Subject
to Sections 2.1(b), 2.2(i) and  12.3 and excluding Liabilities associated with reservations for periods
including and after the Closing Date, any Liabilities to any guest or customer
of the Marcus Mid-Priced Lodging Businesses arising from the operation of the Marcus Mid-Priced Lodging Businesses prior to the Closing Date; 

        2.2(m)    Any
material breach of the last sentence of Section 4.23(o); 

        2.2(n)    Any
Liabilities for breaches of the representations and warranties of the Marcus Entities and the Selling Joint Ventures herein for which indemnification is required
to be provided by the Marcus Entities; 

        2.2(o)    Any
Liabilities of Buyer to be borne by the Marcus Entities pursuant to Section 17.7(c); and 

        2.2(p)    Any
general and administrative Liabilities associated with the Marcus Entities' Milwaukee, Wisconsin headquarters, except those assumed by Buyer pursuant to  Article 6. 

3.     PURCHASE PRICE PAYMENT  

        3.1    Purchase Price.    The purchase price (the "Purchase Price")
for the Purchased Assets shall be (a) the assumption of the Assumed Liabilities plus (b) the Aggregate Joint Venture Purchase Price (as
determined pursuant to Section 3.3), plus (c) Three Hundred Ninety-One Million
One Hundred Seventy-Five Thousand Dollars ($391,175,000) (the "Marcus Entity Cash Purchase Price"),  minus (d) the Estimated Ovations® Amount
determined in accordance with  Section 3.4 hereof; provided that, after the Closing Date and following determination of the Final Ovations Amount and payment of any amounts
associated therewith in accordance with Section 3.4, such amounts shall be substituted for the Estimated Ovations Amount when using the term
"Purchase Price." In addition, the Purchase Price 

8

 

shall
be subject to the adjustments and prorations specified in this Agreement, including the adjustments and prorations in Sections 6.1(c),  7.9, 12.3 and 17.7(c) and  Article 10. 

        3.2    Payment of Purchase Price.    The Purchase Price shall be paid by Buyer as follows: 

        3.2(a)    Earnest Money Deposit.    

        3.2(a)(i)    Payment to Escrow Company; Investment of Earnest Money Deposit.    On the date hereof (or, if this
Agreement is executed after 2 p.m. New York time, within one business day thereafter), Buyer shall pay to Chicago Title Insurance Company, as escrow agent hereunder (in such capacity, the
"Escrow Company") an amount equal to Sixteen Million Dollars ($16,000,000) as a cash deposit (together with all interest earned thereon, the
"Earnest Money Deposit"). The Earnest Money Deposit shall be invested in an interest bearing money market account (or such other investments as the
Marcus Entities and Buyer may mutually agree upon in their reasonable discretion) with interest earned thereon for the benefit of the party entitled to receive the Earnest Money Deposit. 

        3.2(a)(ii)    Release by Escrow Company; Disputes.    At the Closing, the Earnest Money Deposit shall be delivered to
the Marcus Entities. In the event of a termination of this Agreement, the Earnest Money Deposit will either be returned to Buyer or delivered to the Marcus Entities as provided for in  Section 13.2(c). Any dispute, controversy or claim arising out of or relating to the Earnest Money Deposit shall be settled in accordance with  Article 15 hereof, provided, that all costs, fees and expenses, including, without limitation,
reasonable attorneys fees and court costs incurred by the prevailing party determined to be entitled to retain the entire Earnest Money Deposit shall be reimbursed by the non-prevailing
party. 

        3.2(b)    Assumption of Liabilities.    At the Closing, Buyer shall deliver to the Marcus Entities an assumption of
the Assumed Liabilities in accordance with Section 12.2(c) to evidence the assumption of the Assumed Liabilities. 

        3.2(c)    Cash to the Marcus Entities.    At the Closing, Buyer shall deliver to the Marcus Entities (or, to a third
party designated by the Marcus Entities in writing to facilitate one or more like kind exchanges, as permitted by Section 14.14) in cash
(i) the Marcus Entity Cash Purchase Price, minus the Earnest Money Deposit (subject to its payment to the Marcus Entities pursuant to  Section 3.2(a)) plus (ii) the Aggregate Joint Venture Purchase Price,  minus, (iii) the Estimated Ovations Amount, subject in each case to the prorations
and adjustments provided for in  Sections 6.1(c), 7.9, 12.3 and  17.7(c)
 and Article 10 (collectively, the "Closing Date Cash
Amount"). Notwithstanding the foregoing, a portion of the Closing Date Cash Amount allocated to the Subdivision Properties shall, to the extent required under  Section 7.14,
be deposited with the Escrow Company and distributed pursuant to  Section 7.14. 

        3.2(d)    Method of Payment.    All payments under this  Section 3.2 shall be made by wire transfer of immediately available funds
to an account designated in writing by the Buyer or the Marcus
Entities, as applicable, prior to the time for payment specified herein. 

        3.3    Aggregate Joint Venture Purchase Price.    

        3.3(a)    Joint Venture Offers.    

        3.3(a)(i)    Exhibit A attached hereto sets forth for the Joint Venture set forth thereon (i) the purchase price
(the "JV Asset Price") which Buyer is willing to pay for the assets of such Joint Venture (the "Joint Venture
Property") and (ii) the purchase price (the "JV Property Management Price") which Buyer is willing to pay for the
management rights (the "JV Management Rights") associated with such Joint Venture Property. The transactions subject to this  Section 3.3 are subject
to the waiver of Rights of First Refusal (as defined below) or the receipt of the consent of the partners in the Joint
Ventures other than 

9

 

Baymont
Partners (the "Third Party Partners"). The Buyer acknowledges that the Marcus Entities may decide to retain, in their sole discretion and for
such period as they determine in their sole discretion, some or all of the purchase price otherwise payable to the Third Party Partners to satisfy any claims Buyer may have hereunder with respect to
the assets sold by such Selling Joint Ventures. 

        3.3(a)(ii)    Exhibit A-1 attached hereto sets forth for each Joint Venture set forth thereon (i) the
sum of the JV Asset Price and the JV Management Price (the "Aggregate Individual JV Price") and (ii) the maximum amount of the Aggregate
Individual JV Price that the Buyer is willing to allocate to the applicable JV Management Rights (shown on Exhibit A-1 as "Maximum JV
Property Management Price"). Within fifteen (15) days after the date hereof, the Marcus Entities shall send Buyer a notice regarding whether it will, with respect to each Joint Venture set
forth on Exhibit A-1, either (a) choose to have such Joint Venture treated in accordance with  Section 3.3(a)(i) (in which case Buyer and the
Marcus Entities shall mutually determine the amount of the applicable JV Property Management Price
and the applicable JV Asset Price, the total of both of which shall, for each Joint Venture Property, equal the applicable Aggregate Individual JV Price) or (b) enter into a franchise agreement
for the operation of such Joint Venture Property as a Baymont Hotel identical, in all material respects, to the franchise agreements currently used by the Marcus Entities;  provided, however, that notwithstanding anything to the contrary contained in this Agreement including,
without limitation, Section 14.16, such franchise agreement shall contain a twenty (20) year term with a right to terminate after five
(5) years and a requirement to pay penalties, liquidated damages and other such usual and customary remedies in the event of any termination of the franchise agreement by the franchisee prior
to (but not after) the fifth anniversary of the commencement of the term of such franchise agreement other than as a result of an event of default by the franchisor. If the Marcus Entities have
elected pursuant to clause (a) above to have such Joint Venture treated in accordance with Section 3.3(a)(i) but Buyer and the Marcus
Entities do not mutually agree on the amount of the applicable JV Property Management Price and the applicable JV Asset Price within two (2) business days after such election, then such
election shall be deemed revoked and the parties shall enter into a new franchise agreement pursuant to clause (b) above. 

        3.3(b)    Joint Venture Right of First Refusal.    The partnership or operating agreements for the five
(5) Joint Ventures described on Schedule 3.3(b) provide that, in the event the Joint Venture receives a bona fide offer to purchase the
Joint Venture Property, the Third Party Partners may refuse to allow the sale of the Joint Venture Property if they, instead, exercise their right (the "Right of First
Refusal") to purchase the Joint Venture Property on the same terms and conditions as presented in the bona fide offer. Within five (5) business days after the date of
this Agreement (or, in the case of the Joint Ventures set forth in Exhibit A-1, within five (5) business days after the applicable JV Asset Price is determined and in
accordance with Section 3.3(a)(ii)), Baymont Partners shall send to each of the applicable Third Party Partners in such Joint Ventures a notice
containing Buyer's offer to purchase the Joint Venture Property for a purchase price equal to the applicable JV Asset Price. Such notice shall comply with the Right of First Refusal and notice
provisions of the applicable Joint Venture or operating agreement, and a copy of each such notice shall be sent contemporaneously to Buyer. Within two (2) business days after receiving any
notice from a Third Party Partner of its election to purchase the Joint Venture Property (or its election to waive its Right of First Refusal), but in no event later than thirty (30) days after
delivery of the Right of First Refusal notice, the Marcus Entities shall communicate the decision of the Third Party Partners to Buyer, confirming such communication with a copy of the written notice
from the Third Party Partners. If the Third Party Partners agree to the sale of Joint Venture Property (the "Selling Third Party Partners"), then
Baymont Partners shall (i) cause such Joint Venture Property 

10

 

to
be sold to Buyer for the JV Asset Price for such Joint Venture and (ii) sell the applicable JV Management Rights to Buyer for the JV Property Management Price for such Joint Venture. If any
Third Party Partners exercise their Right of First Refusal, then such Joint Venture Property shall be subject to Sections 3.3(d) and  14.16. 

        3.3(c)    Third Party Partner Consents.    Baymont Partners agrees to use reasonable efforts to obtain the consent of
the Third Party Partners for the sale of the Willowbrook Limited Partnership Joint Venture Property to Buyer for the JV Asset Price set forth for such Joint Venture Property in  Exhibit A-1;
provided, however, that
Baymont Partners shall not be required to pay additional unreasonable amounts of money or agree to any new or additional unreasonably unfavorable terms or conditions in order to obtain such consent.
If all applicable Third Party Partners agree to the sale of such Joint Venture Property, then that Joint Venture shall be deemed to be included in the term "Selling Joint
Ventures" and Baymont Partners shall (i) cause such Joint Venture Property to be sold to Buyer for the JV Asset Price set forth for such Joint Venture in  Exhibit A-1
and (ii) shall sell the applicable JV Management Rights to Buyer for the JV Property Management Price set forth
for such Joint Venture in Exhibit A-1. If any of such Third Party Partners fail to consent to such sale, then such Joint Venture
Property shall be subject to Sections 3.3(d) and 14.16. 

        3.3(d)    JV Property Management Agreement.    In the event that a Joint Venture Property is not purchased by Buyer as
a result of the Third Party Partner's exercise of its Right of First Refusal or failure to consent to such sale, as the case may be, Baymont Partners will use reasonable efforts to arrange for such
nonselling Joint Venture (or successor entity if the Third Party Partners take title in a different entity following the exercise of their Right of First Refusal) either (i) to consent to an
assignment of the existing Management Agreement for the applicable Joint Venture Property to Buyer as manager if such Management Agreement contains a remaining term of at least twenty
(20) years (including all remaining extension options which may be unilaterally exercised by the manager thereunder in its sole discretion)
(each, an "Assigned JV Property Management Agreement") or (ii) to enter into a new twenty (20) year management agreement with Buyer in the
form attached to this Agreement as Exhibit C for the operation of the applicable Joint Venture Property under the trade name selected by Buyer if
the remaining term of the existing Management Agreement for the applicable Joint Venture Property is less than twenty (20) years (including all remaining extension options which may be
unilaterally exercised by the manager thereunder in its sole discretion) (each, a "New JV Property Management Agreement");  provided, however, that (i) Baymont Partners shall not be required to pay or agree to pay
additional unreasonable amounts of money or agree to any new or additional unreasonably unfavorable terms or conditions in order to arrange for such consent to an Assigned JV Property Management
Agreement or entry into such New JV Property Management Agreement and (ii) since there is no existing Management Agreement for the Joint Venture Property owned by Willowbrook Motel Limited
Partnership, only clause (ii) above shall be applicable to such Joint Venture. If a Joint Venture or successor entity either consents to an Assigned JV Property Management Agreement or enters
into a New JV Property Management Agreement with Buyer as set forth above, then Buyer shall pay to the Marcus Entities the JV Property Management Price for the applicable Joint Venture Property. 

        3.3(e)    Cooperation.    If a Joint Venture Property is not purchased by Buyer as a result of the Third Party
Partner's exercise of its Right of First Refusal or failure to consent to such sale, as the case may be, and such Third Party Partner also does not consent to an Assigned JV Property Management
Agreement or a New JV Management Agreement pursuant to Section 3.3(d), then the Marcus Entities shall reasonably cooperate in connection with and
shall not oppose Buyer's efforts to obtain the consent of such Third Party Partner to a franchise agreement for the operation of the applicable Joint Venture Property as a Baymont Hotel on the terms
set forth in clause (b) of Section 3.3(a)(ii) including, without limitation, the provisions for penalties, liquidated damages and other
such usual and customary remedies in the event of any termination of such franchise agreement by the franchisee prior to the fifth (5th) anniversary thereof;  provided, however, that the Marcus Entities shall have no obligation to incur any unreimbursed
out-of-pocket costs or agree to any unfavorable terms or conditions in connection with such cooperation. 

11

  

        3.3(f)    Definitions.    

        3.3(f)(i)    "Aggregate Joint Venture Price"    shall mean the sum of the Joint Venture Purchase Prices. 

        3.3(f)(ii)    "Joint Venture Purchase Price"    shall, with respect to any Joint Venture, be either (A) if
Third Party Partners in a Joint Venture elect to exercise their Right of First Refusal or fail to consent to a sale, as applicable, and consent to an Assigned JV Property Management Agreement or enter
into a New JV Property Management Agreement, then the applicable JV Property Management Price, (B) if Third Party Partners in a Joint Venture elect to exercise their Right of First Refusal or
fail to consent to a sale, as applicable, but such Joint Venture (or successor entity) does not consent to an Assigned JV Property Management Agreement or enter into a New JV Property Management
Agreement, zero, or (C) if Third Party Partners elect not to exercise their Right of First Refusal or consent to the sale, as applicable, and the Joint Venture Property is sold to Buyer, the
sum of (i) the applicable JV Asset Price, plus (ii) the applicable JV Property Management Price hereto. 

        3.3(f)(iii)    "Selling Joint Venture"    shall mean each Joint Venture that sells its Joint Venture Property to Buyer
pursuant to this Agreement and the Ancillary Agreements. 

        3.4    Ovations® Liability.    

        3.4(a)    On
or before ten (10) business days prior to the scheduled Closing Date, the Marcus Entities shall in good faith prepare, with the assistance of Buyer, a
schedule (the "Estimated Ovations Schedule") summarizing the estimated accrued liabilities under the Ovations or similar guest rewards program of the
Marcus Entities determined in accordance with Marcus GAAP as of such date (the "Estimated Ovations Amount"), together with the assumptions underlying
such estimated accrued liabilities. The Estimated Ovations Schedule shall be prepared from the internal financial records of the Marcus Mid-Priced Lodging Businesses. Prior to Closing, the
Buyer shall have the right to inspect and object to this schedule and the Marcus Entities shall provide reasonable access to Buyer for the purposes of this inspection. 

        3.4(b)    As
soon as reasonably practical after the Closing Date, the Marcus Entities shall prepare in good faith a schedule (the "Final Ovations
Schedule") setting forth the type of data set forth on the Estimated Ovations Schedule. The Final Ovations Schedule shall be prepared from the internal financial records of the
Marcus Mid-Priced Lodging Businesses (as then conducted by Buyer or an Affiliate thereof) and shall be prepared in accordance with Marcus GAAP as of such date and otherwise in a manner
entirely consistent with the Estimated Ovations Schedule. The Marcus Entities shall, within thirty (30) days of the Closing Date, deliver the Final Ovations Schedule to the Buyer. The Final
Ovations Schedule, and the estimated accrued liabilities under the Ovations or similar guest rewards programs of the Marcus Mid-Priced Lodging Businesses as of the Closing Date reflected
thereon and prepared in accordance with the Estimated Ovations Schedule (the "Final Ovations Amount") shall be binding upon the parties upon approval of
such Final Ovations Schedule by Buyer. If Buyer does not believe that the Final Ovations Schedule and the calculation of the Final Ovations Amount stated thereon were prepared and calculated in a
manner entirely consistent with the Estimated Ovations Schedule, and Buyer and the Marcus Entities cannot mutually agree on the same, then either the Marcus Entities or Buyer may at any time give
notice (an "Ovations Appraisal Notice") to the other party. Within five (5) business days after an Ovations Appraisal Notice is given, the Marcus
Entities and Buyer each shall provide to KPMG LLP or, if KPMG LLP declines to be so retained, another mutually agreed upon national accounting firm (the "Ovations Valuation
Expert"), with a copy to the other party, their opinion (each an "Ovations Opinion") as to the proper valuation of the Final
Ovations Amount, together with such supporting documentation as they may desire to provide. If one party fails to deliver its Ovations Opinion within such five business day period but the other party
has timely delivered its 

12

 

Ovations
Opinion, then the Final Ovations Amount shall automatically and conclusively be deemed to be the amount set forth in the Ovations Opinion so delivered by such party. If both parties have
timely delivered their Ovations Opinions to the Ovations Valuation Expert, then the Final Ovations Amount shall be determined "baseball style" such that the Ovations Valuation Expert must choose, as
the Final Ovations Amount, the amount set forth in either the Marcus Entities' or Buyer's Ovations Opinion, and shall have no right to make any other determination as to the Final Ovations Amount. The
Ovations Valuation Expert shall choose the Final Ovations Amount set forth in either the Marcus Entities' or Buyer's Ovations Opinion within five (5) business days after the delivery of both of
the Ovations Opinions, and such determination shall be final and binding on the Marcus Entities and Buyer, without any Liability to the Ovations Valuation Expert. 

        3.4(c)    Within
three (3) business days following determination of the Final Ovations Amount in accordance with  Section 3.4(b), (i) in the event the Final Ovations Amount is less than the Estimated
Ovations Amount, Buyer shall pay to the Marcus
Entities an amount from the Buyer equal to the difference between such amounts and, (ii) in the event the Final Ovations Amount is greater than the Estimated Ovations Amount, the Marcus
Entities shall pay to the Buyer the difference between such amounts, in each case by wire transfer of immediately available funds. 

        3.4(d)    Nothing
in this Section 3.4 shall affect the prorations provided for in  Section 12.3. 

        3.4(e)    Except
as expressly set forth in this Section 3.4, the Marcus Entities shall have no post-Closing
Liabilities related to the Ovations program. 

        3.5    Allocation of Purchase Price.    Buyer and the Marcus Entities shall cooperate to prepare, to the extent
practicable, prior to the Closing Date, a mutually agreed upon allocation of the Purchase Price among the Purchased Assets in accordance with Section 1060 of the Code and the Treasury
Regulations thereunder. Buyer and the Marcus Entities shall endeavor in good faith to agree upon a mutually satisfactory allocation of the Purchase Price, failing which, the matter shall, after
Closing, be referred to an independent appraisal or accounting firm mutually agreed upon by the parties for resolution of such dispute. The determination of the independent appraisal or accounting
firm shall be binding on both the Buyer and the Marcus Entities. The Marcus Entities and Buyer will follow and use the allocation determined according to this  Section 3.5 in all Tax Returns,
filings or other related reports made by them to any Tax authorities, and neither the Marcus Entities nor Buyer
shall file any such Tax returns, filings or other related reports that are inconsistent with such allocation. To the extent that disclosures of this allocation are required to be made by the parties
to the Internal Revenue Service ("IRS") under the provisions of Section 1060 of the Code, or any regulations thereunder, Buyer and the Marcus
Entities will disclose such reports to the other prior to filing with the IRS. The Marcus Entities and Buyer acknowledge and agree that Buyer may, in its discretion and at its sole expense, retain an
independent appraisal firm to assist in the preparation of the allocation of the Purchase Price among the Purchased Assets, but that in no event shall such appraised values be deemed to constitute the
valuations that will be established pursuant to this Section 3.5. Similarly, (i) in no event will the valuations set forth in  Exhibit D be
deemed to constitute the valuations attributable to the Purchased Assets for purposes of this  Section 3.5 unless otherwise agreed by the parties, each in their sole discretion and (ii) in no
event will the allocation of the Purchase
Price under this Section 3.5 be deemed to constitute the valuations of the Purchased Assets for any other purpose. 

4.     REPRESENTATIONS AND WARRANTIES OF THE MARCUS ENTITIES  

        The Marcus Entities, jointly and severally, make the following representations and warranties to Buyer, each of which is true and correct on the date hereof and
shall remain true and correct in all material respects to and including the Closing Date and shall expire after the Closing on the date set forth in  Section 11.1. For purposes of this Article 4, the Marcus Entities shall be deemed to
include the Joint Ventures and exclude the Excluded Properties except where the context clearly contemplates 

13

 

otherwise.
All representations, warranties or covenants of the Marcus Entities included in the Recitals (or contemplated thereby) are incorporated herein and expressly agreed to and acknowledged by
the Marcus Entities. EXCEPT AS SPECIFICALLY PROVIDED IN THIS ARTICLE 4 OR IN ANY DEED DELIVERED BY THE MARCUS ENTITIES AT CLOSING, THE SALE, TRANSFER
AND CONVEYANCE OF THE PURCHASED ASSETS BY THE MARCUS ENTITIES TO BUYER AND BUYER'S PURCHASE OF THE PURCHASED ASSETS IS MADE "AS IS" AND "WHERE IS" AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES BY THE
MARCUS ENTITIES OF ANY KIND, NATURE OR DESCRIPTION WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES AND/OR REPRESENTATIONS OF QUALITY, MERCHANTABILITY, SUITABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR PHYSICAL CONDITION. IN THE EVENT OF ANY DEFECT OR DEFICIENCY IN THE PURCHASED ASSETS, THE MARCUS ENTITIES SHALL HAVE NO RESPONSIBILITY OR LIABILITY WITH RESPECT THERETO, EXCEPT AS
SPECIFICALLY SET FORTH IN ARTICLE 11. THIS AGREEMENT SHALL NOT BE GOVERNED BY THE WARRANTIES PROVIDED BY ARTICLE 2 OF THE UNIFORM COMMERCIAL CODE AS
ADOPTED IN ANY JURISDICTION. 

        4.1    Corporate.    

        4.1(a)    Organization.    Each of the Marcus Entities is duly organized, validly existing and in good standing under
the Laws of its state of organization or formation, as applicable, and (i) is qualified to do business in the jurisdiction in which the Properties it holds are located except where the failure
to so qualify would not have a Property Material Adverse Effect and (ii) except where the failure to so qualify would not have a Material Adverse Effect, is qualified to do business in each
jurisdiction in which such qualification is necessary. 

        4.1(b)    Authorization; Validity.    Each of the Marcus Entities has all requisite power and authority under its
organizational documents and the Laws of its state of organization or formation, as applicable, to execute and deliver this Agreement and the Ancillary Agreements as to which it is or will be a party
and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action. No other or further act or proceeding on the part of any Marcus
Entity is necessary to authorize this Agreement or the Ancillary Agreements or consummation by them of the transactions contemplated hereby and thereby. This Agreement constitutes, and when executed
and delivered, the Ancillary Agreements will constitute, valid and binding agreements of the Marcus Entities, enforceable against them in accordance with their respective terms, except as such
enforcement may be limited by applicable bankruptcy Laws or by principles of equity that affect the enforcement of creditors' rights generally. 

        4.1(c)    Power.    The Marcus Entities have all requisite power and authority to own, operate and lease the Purchased
Assets, to carry on the Marcus Mid-Priced Lodging Businesses as and where such are now being conducted by them, to enter into this Agreement and the Ancillary Agreements as to which they
are or will be a party and to carry out the transactions by them contemplated hereby and thereby. 

        4.2    No Real Property Violation.    Except as described on  Schedule 4.2 (those matters described on Schedules 4.2 and  4.4 are herein referred to as the "Marcus Material Consents"), the execution and delivery of this
Agreement or the Ancillary Agreements as to which they are or will be a party and the performance or consummation by the Marcus Entities of the transactions contemplated hereby and thereby did not and
will not (a) contravene, conflict with, or result in a breach or violation of any applicable Law or Order of any Government Entity to which Marcus, the Marcus Entities or the Selling Joint
Ventures or their respective assets or properties (including the Purchased Assets) are subject, except for any such contravention, conflict, breach or violation which does not have, in the case of a
Law, Order or other restriction applicable to a Property, a Property Material Adverse Effect or, 

14

 

otherwise,
a Material Adverse Effect; or (b) contravene, conflict with, result in a breach of, constitute a default under, result in the creation of any Lien upon any of the Purchased Assets
under, result in the acceleration of any obligation under, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any material agreement, contract,
lease, license, instrument, indenture, loan, credit agreement or note, Lien, or other arrangement to which any of the Marcus Entities or the Selling Joint Ventures is a party or by which it is bound
or to which any of its assets (including the Purchased Assets) is subject (or result in the creation or imposition of any Lien upon any of its assets, including the Purchased Assets). 

        4.3    Financial Statements.    Included as Schedule 4.3 are
copies of the Financial Statements, the Recent Financial Statement and the historical financial statements included in the offering circular provided on behalf of the Marcus Entities to Buyer
(collectively, the "Bid Document Financial Statements"). All of the Bid Document Financial Statements (including, if applicable, any notes and schedules
contained therein or annexed thereto and, in the case of the Recent Financial Statements, subject to normal and recurring year-end adjustments not material in amount) (i) have been
prepared on a consistent basis (other than, if applicable, as specified in the notes thereto) in accordance with Marcus GAAP (taking into account the absence of any balance sheet and excluding
(a) all projections for 2004 and (b) such items that are not calculated in accordance with generally accepted accounting principles such as RevPAR, number of rooms, number of hotels,
number of available rooms, number of occupied rooms, occupancy percentage, average daily rate and EBITDA), and (ii) excluding all projections for 2004, fairly present in all material respects
the EBITDA, RevPAR, number of rooms, occupancy percentage, average daily rate, number of hotels, number of available rooms and number of occupied rooms of the Marcus Mid-Priced Lodging
Businesses as of the dates and for the years and periods indicated, each as presented therein. The Bid Document Financial Statements were derived from the historical audited financial statements of
Marcus included in its annual reports on Form 10-K filed with the SEC and can be reasonably reconciled back to the financial records supporting such Marcus SEC filings. 

        4.4    No Corporate Violations.    Except as described on  Schedule 4.4 (those matters described on Schedule 4.4 are also included in the definition
of "Marcus Material Consents"), the execution and delivery of this Agreement or the Ancillary Agreements as to which they are or will be a party and the
performance or consummation by the Marcus Entities of the transactions contemplated hereby or thereby did not and will not (a) contravene, conflict with or result in a breach or violation of
any applicable Law or Order of any Government Entity, or court to which Marcus, the Marcus Entities are subject, except for any such contravention, conflict, breach or violation which does not have
(i) in the case of a Law, Order or other restriction applicable to the Baymont Franchises, a Franchise Material Adverse Effect, or (ii) otherwise, a Material Adverse Effect,
(b) contravene, conflict with or result in a violation or breach of any provision of the organizational documents of Marcus, the Marcus Entities or the Selling Joint Ventures or require further
approval of the Marcus Board of Directors or approval of the Marcus stockholders, or (c) except for (i) applicable requirements of the HSR Act and (ii) WARN obligations associated
with Employees who work at the Marcus Entities' headquarters and the Baymont Inn located in Milwaukee and provided that Buyer complies with its obligations set forth in  Section 6.1, require any
authorization, consent, approval, exemption or other action by or notice to any Government Entity (including, without
limitation, under any "plant closing" or similar Law) or Person. 

        4.5    Utilities.    To the Marcus Entities' knowledge, all utilities and similar services necessary for the use and
operation of the Properties as operated in accordance with past practices (including, without limitation, gas, water, electricity, telephone, and cable television) are available thereto from public
ways or through easements and are of sufficient capacity to meet the needs and requirements necessary for the current use and operation of each of the Properties, except where such
non-availability would not have a Property Material Adverse Effect. To the Marcus Entities' knowledge, no fact, condition or 

15

 

proceeding
exists which would result in the termination or material impairment of the furnishing of such utilities to any of the Properties. 

        4.6    Taxes.    

        4.6(a)    Tax Returns.    All Tax Returns required to be filed by or on behalf of the Marcus Entities have been timely
filed and are correct and complete in all material respects and all Taxes required to be paid by the Marcus Entities have been paid, other than Taxes not yet due and payable. Except as disclosed on  Schedule 4.6(a)
, no Taxes or special assessments of any kind (special, bond or otherwise) are or have been levied with respect to the Properties,
or any portion thereof, or the Marcus Mid-Priced Lodging Businesses, which are outstanding or unpaid, other than amounts not yet due and payable or if due and payable, not yet delinquent,
or that will not be paid at or prior to Closing. The Purchased Assets are not subject to any Liens that will not be paid in full, and the Lien released (or, in the case of Liens affecting any
Property, insured over by the title company insuring title to the Property as required hereunder), at or prior to Closing, for Taxes owed for periods prior to the Closing Date, and no such Liens will
arise by operation of Law after the Closing Date with respect to Taxes accruing on or before the Closing Date, other than Taxes not yet due and payable. 

        4.6(b)    Disputes.    There is no pending material dispute or claim concerning any Tax liability relating to the
Purchased Assets (including the Properties) or the Marcus Mid-Priced Lodging Businesses (A) claimed or raised by any Government Entity in writing or (B) to the knowledge of
the Marcus Entities, based upon personal contact with any agent of such Government Entity. No Marcus Entity nor any Selling Joint Venture has received any written notice of any audit of any Taxes
payable with respect to any of the Purchased Assets (including the Properties) which has not been resolved or completed, and, except as set forth on  Schedule 4.6(b), no Marcus Entity or Selling
Joint Venture is currently contesting any such Taxes or seeking an abatement or rollback of any
Taxes. Except as set forth on Schedule 4.6(b), none of the Marcus Entities has waived any statute of limitations in respect of Taxes or agreed to
any extension of time with respect to any Tax assessment or deficiency. None of the Marcus Entities is a party to any Income Tax allocation or sharing agreement. 

        4.7    Condemnation; Eminent Domain.    There are no pending condemnation proceedings, nor, to the knowledge of the
Marcus Entities, have there been any condemnation proceedings threatened in writing, related to any of the Properties or proceedings seeking the taking of any portion of the Properties through the
power of eminent domain. 

        4.8    Inventory.    Except as described on Schedule 4.8, all
Inventory of the Marcus Mid-Priced Lodging Businesses is located on premises owned or leased by the Marcus Entities. The Marcus Entities have, and as of the Closing Date will have, such
Inventory (of a quality usable in the ordinary course of business) as is reasonably necessary to meet the needs of the Marcus Mid-Priced Lodging Businesses in the ordinary course of
business consistent with past practice. 

        4.9    Absence of Certain Changes.    Except as and to the extent described on  Schedule 4.9 and the Transaction Stay/Severance
Payments, or otherwise contemplated or required by this Agreement, since the date of the Recent
Financial Statement there has not been: 

        4.9(a)    Material Adverse Effect.    Any event or circumstance that, individually or in the aggregate, could
reasonably be expected to have (i) in the case of an event or circumstance affecting a Property, a Property Material Adverse Effect, (ii) in the case of an event or circumstance
affecting Baymont Franchises, a Franchise Material Adverse Effect, or (iii) otherwise, a Material Adverse Effect; 

        4.9(b)    Material Increase in Compensation.    Except as required or contemplated by  Article 6, and except for bonuses and
benefits payable for the Marcus Entities' fiscal 2004 year consistent 

16

 

with
ordinary course and past practices and ordinary and normal salary and bonus increases to any of the Employees, officers, or Contingent Workers of the Marcus Mid-Priced Lodging
Businesses in the ordinary course of business, any material increase in the salaries, wages or other programs of a compensatory nature payable or to become payable to any Employee, officer, or
Contingent Worker of the Marcus Mid-Priced Lodging Businesses (including, without limitation, any increase or change pursuant to any Employee Plan/Agreement); 

        4.9(c)    Commitments.    Any material commitment, obligation or liability of any nature incurred by the Marcus
Entities related to the Marcus Mid-Priced Lodging Businesses that would be an Assigned Contract or Assumed Liability, other than in the ordinary course of business and consistent with past
practices; 

        4.9(d)    Liens.    Any Lien made on any of the Purchased Assets which is not in the ordinary course of business and
will not be terminated at or prior to Closing; provided, however, that in no event shall any mortgage or
deed of trust, security interest, or other monetary lien or any lease, reciprocal easement agreement or other material title encumbrance be deemed to be in the ordinary course of business, except the
leases contemplated by Section 7.14 and the instruments contemplated by Section 7.15; 

        4.9(e)    Material Amendment of Assigned Contracts.    Any entering into, material amendment or termination before the
stated term of any Assigned Contract, or any waiver of material rights thereunder, other than in the ordinary course of business and consistent with past practices; 

        4.9(f)    Loans and Advances.    Any loan or advance to any Employee or officer of the Marcus Mid-Priced
Lodging Businesses, other than advances in the ordinary course of business for travel and entertainment and similar out-of-pocket expenses; 

        4.9(g)    Contingent Liabilities.    Any contingent liability relating to the Marcus Mid-Priced Lodging
Businesses incurred by any Marcus Entity with respect to the obligations of others or any cancellation of any material debt or claim owing to, or waiver of any material right of, any Marcus Entity
relating to the Marcus Mid-Priced Lodging Businesses, other than in the ordinary course of business; 

        4.9(h)    Purchase or Sale.    Any purchase, sale or other disposition, or any agreement or other arrangement for the
purchase, sale or other disposition, of any of the Purchased Assets other than in the ordinary course of business; 

        4.9(i)    Labor Dispute.    Any labor dispute including, without limitation, picketing of any nature, strike, lockout
or demand by any labor organization, Employees and/or Contingent Workers for union recognition or a union representation election, or claim of unfair labor practices relating to the Marcus
Mid-Priced Lodging Businesses, which, individually or in the aggregate, could reasonably be expected to have a Property Material Adverse Effect; 

        4.9(j)    Management.    Any grant of severance or termination pay to any officer or Employee of the Marcus Entities
rendering services principally to the Marcus Mid-Priced Lodging Businesses or any increase in benefits payable under any existing severance or termination pay policies or employment
agreements applicable to the officers or management of the Marcus Entities; 

        4.9(k)    Bookkeeping.    Any material change in the manner of keeping books, accounts or records, accounting methods
or practices, or pricing policies used with respect to the Marcus Mid-Priced Lodging Businesses; 

        4.9(l)    Transactions.    Any other transaction entered into by the Marcus Entities relating to the Marcus
Mid-Priced Lodging Businesses other than (a) transactions in the ordinary course of business, the transactions with Buyer contemplated hereby, and (b) transactions relating
to the Retained Real Property or Excluded Properties; 

17

 

        4.9(m)    Capital Asset Acquisitions or Sales.    Any purchase or sale by any of the Marcus Entities of any capital
asset (or bulk purchases of capital assets) which is used or held for used principally in the Marcus Mid-Priced Lodging Businesses costing more than $25,000, individually or in the
aggregate, other than transactions permitted by Section 4.9(l); 

        4.9(n)    Insurance.    Any material change in the kind and amount of insurance maintained by the Marcus Entities
relating to the Marcus Mid-Priced Lodging Businesses other than in the ordinary course of business; or 

        4.9(o)    Other Agreements.    Any agreement or understanding whether in writing or otherwise, that would result in
any of the transactions or events or require any of the Marcus Entities to take any of the actions specified in Section 4.9(a) through  4.9(n) above.

        4.10    No Litigation.    Except as described on Schedule 4.10,
there is no Litigation pending or, to the Marcus Entities' knowledge, threatened in writing against any Marcus Entity, Selling Joint Venture, the Marcus Mid-Priced Lodging Businesses or
otherwise affecting any of the Purchased Assets which, if adversely determined, would result in (i) the case of any Litigation with respect to any Property, a Property Material Adverse Effect,
(ii) the case of any Litigation with respect to Baymont Franchises, a Franchise Material Adverse Effect or (iii) otherwise, a Material Adverse Effect. Except as described on  Schedule 4.10,
 neither the Marcus Entities, the Marcus Mid-Priced Lodging Businesses nor the Purchased Assets is subject to any
Order, which would result in (x) in the case of any Litigation with respect to any Property, a Property Material Adverse Effect, (y) in the case of any Litigation with respect to the
Baymont Franchises, a Franchise Material Adverse Effect or (z) otherwise, a Material Adverse Effect. All current Litigation affecting the Marcus Mid-Priced Lodging Businesses is
identified on Schedule 4.10. 

        4.11    Ordinary Course.    Since the date of the Recent Financial Statements, the Marcus Mid-Priced
Lodging Businesses have been conducted in the ordinary course and consistent with prior practices. 

        4.12    Compliance With Laws and Orders; Permits; Environmental Matters; Title.    

        4.12(a)    Compliance.    To the Marcus Entities' knowledge and except as described on  Schedule 4.12(a), the Marcus Entities are
in compliance with all applicable Laws and Orders in the operation of the Marcus Mid-Priced
Lodging Businesses, except for instances of noncompliance which would not have (i) in the case of Laws or Orders applicable to any Property, a Property Material Adverse Effect, (ii) in
the case of any Laws or Orders applicable to Baymont Franchises or Woodfield Franchises, a Franchise Material Adverse Effect, or (iii) otherwise, a Material Adverse Effect. Except as described
on Schedule 4.12(a), to the Marcus Entities' knowledge, no Marcus Entity or Selling Joint Venture has, within the past five years, received
written notice of any violation or alleged violation of any Laws or Orders at any Property which had or would have had (i) in the case of Laws or Orders applicable to any Property, a Property
Material Adverse Effect, (ii) in the case of any Laws or Orders applicable to Baymont Franchises or Woodfield Franchises, a Franchise Material Adverse Effect, or (iii) otherwise, a
Material Adverse Effect. Except as described on Schedule 4.12(a), to the Marcus Entities' knowledge, no Marcus Entity or Selling Joint Venture is
subject to any Liability for past or continuing violations of any Laws or Orders regarding the operation of the Marcus Mid-Priced Lodging Businesses which would have (i) in the case
of Laws or Orders applicable to any Property, a Property Material Adverse Effect, (ii) in the case of any Laws or Orders applicable to Baymont Franchises or Woodfield Franchises, a Franchise
Material Adverse Effect, or (iii) otherwise, a Material Adverse Effect. All reports and returns relative to any Purchased Asset required to be filed by the Marcus Entities (or any of them) with
any Government Entity have, to the Marcus Entities' knowledge, been filed, and were accurate and complete when filed, except for instances which would not have (i) in the case of reports and
returns applicable to any Property, in a Property Material Adverse Effect, (ii) in the case of reports and returns applicable to Baymont Franchises or Woodfield Franchises, a Franchise 

18

 

Material
Adverse Effect, or (iii) otherwise, a Material Adverse Effect. Without limiting the foregoing, to the knowledge of the Marcus Entities (i) the use of each Property for its
present use(s) is currently an allowed, permitted, conditional, special or legal nonconforming use(s) under applicable zoning Laws, except where such noncompliance would not have a Property Material
Adverse Effect, (ii) the building improvements at each Property comply with all current setback, height, floor area ratio, lot coverage and other requirements under applicable zoning Laws,
(iii) the parking at each of the Properties complies with the current parking requirements under applicable zoning Laws, (iv) except as set forth in  Schedule 4.12(a), no use of any
off-site facilities for parking or otherwise is necessary to ensure compliance with any zoning Laws
or other Laws applicable to the Properties, and (v) there are no pending requests, applications or proceedings filed with, under review by, or pending determination by any Governmental Entity
to alter or restrict the zoning or impose other use(s) restrictions applicable to the Properties. 

        4.12(b)    Licenses and Permits.    To the Marcus Entities' knowledge, the Marcus Entities have all Licenses and
Permits required for the conduct of the Marcus Mid-Priced Lodging Businesses and operation of the Properties as operated in accordance with past practices, except for such failures to
obtain such Licenses and Permits which would not have (i) in the case of Licenses and Permits applicable to a Property, a Property Material Adverse Effect, (ii) in the case of Licenses
and Permits applicable to Baymont Franchises or Woodfield Franchises, a Franchise Material Adverse Effect, or (iii) otherwise, a Material Adverse Effect. All Licenses and Permits required for
the conduct of the Marcus Mid-Priced Lodging Businesses and operation of the Properties as operated in accordance with past practices are in full force and effect, except for instances
which would not have (i) in the case of Licenses and Permits applicable to a Property, a Property Material Adverse Effect, (ii) in the case of Licenses and Permits applicable to Baymont
Franchises or Woodfield Franchises, a Franchise Material Adverse Effect, or (iii) otherwise, a Material Adverse Effect. Except as described on  Schedule 4.12(b), the Marcus Entities are and
have been in compliance with all such Licenses and Permits, except for instances of noncompliance
which would not have a (i) in the case of Licenses and Permits applicable to a Property, a Property Material Adverse Effect, (ii) in the case of Licenses and Permits applicable to
Baymont Franchises or Woodfield Franchises, a Franchise Material Adverse Effect, or (iii) otherwise, a Material Adverse Effect. 

        4.12(c)    Environmental Matters.    Without limiting the generality of the foregoing provisions of this  Section 4.12, except as
described on Schedule 4.12(c): (i) to the Marcus Entities'
knowledge, the Marcus Mid-Priced Lodging Businesses are being operated in compliance with all Environmental Laws, except for instances of noncompliance which would not have a Property
Material Adverse Effect, (ii) during the period of ownership of the Properties by any Marcus Entity or Selling Joint Venture, no Marcus Entity or Selling Joint Venture has received any written
notice from any Government Entity or neighboring, upgradient or downgradient property owner or other third party regarding any non compliance with or violation of any Environmental Laws with respect
to the Properties or the presence or release of Hazardous Substances in violation of Environmental Laws in, on, under, or from the Properties, and, to the knowledge of the Marcus Entities, there is no
current noncompliance of any of the Properties with Environmental Laws, except for instances of noncompliance which would not have a Property Material Adverse Effect, and there has not been any
release of Hazardous Substances in violation of Environmental Laws or which required any so-called "response action" (which may include remediation) under any Environmental Law or other
requirement of any Government Entity in, on, under or from any of the Properties, and (iii) during the period of ownership of the Properties by any Marcus Entity or Selling Joint Venture, no
Marcus Entity or Selling Joint Venture has made or been requested in writing to make any report or disclosure to any Government Entity relating to a release of Hazardous Substances to or from any of
the Properties. 

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        4.12(d)    Title to Purchased Assets.    The Marcus Entities or the Selling Joint Ventures, as applicable, have good
and marketable title (or, with respect to leased property, leasehold title) to all of the Purchased Assets, free and clear of all Liens, except for those Liens described in  Schedule 4.12(d); and,
in the case of the Marcus Owned Real Property, Permitted Real Property Liens and Liens that will be satisfied as of
Closing. At Closing, Buyer will receive good and marketable (or, with respect to leased property, leasehold) title to all the Purchased Assets, in the case of real property, free and clear of all
Liens except (i) those described in Schedule 4.12(d) and (ii) Permitted Real Property Liens. Except for those matters described in  Schedule 4.12(d)
 and those matters not known to the Marcus Entities and which would not have a Property Material Adverse Effect or a Franchise
Material Adverse Effect, no Marcus Entity or Selling Joint Venture nor any third party is in default under any reciprocal easement agreement, easement, restrictive covenant or other matter affecting
title to any of the Properties. To the Marcus Entities' knowledge, each Property abuts directly on a public way or has direct access to a public way though valid easements of record, or, where access
to a Property is currently obtained by means of an adjacent property owned by a Marcus Entity, by an easement benefiting the Property reasonably acceptable to Buyer, which easement shall be recorded
at or prior to Closing. The Marcus Entities shall provide to Buyer correct and complete copies of any reciprocal easement agreement, shared access agreement, shared parking facilities agreement or
similar agreement affecting any of the Properties. To the knowledge of the Marcus Entities, (a) no building or other improvements at any of the Properties encroach onto any adjoining real
property and no building or other improvements located primarily on any adjoining real property encroach onto any of the Properties and (b) no building
or other improvements at any of the Properties encroach onto any easement area or other restricted area for the benefit of third parties, in each case except to the extent that such encroachment would
not reasonably be expected to have a Property Material Adverse Effect. 

        4.12(e)    Franchise Matters.    Notwithstanding the generality of the foregoing, none of the representations and
warranties in this Section 4.12 shall apply to matters specifically addressed in  Section 4.23. 

        4.13    Condition.    To the knowledge of the Marcus Entities and except for ordinary wear and tear, in each case
taking into account age and geographic location of the Property, there is no structural, foundation, roof, mechanical, electrical, plumbing, HVAC or other building system defects at any of the
Properties except such defects as would not have a Property Material Adverse Effect. The Marcus Entities and the Joint Ventures have, in the aggregate, expended not less than $23.8 million for
capital expenditures of the Marcus Mid-Priced Lodging Business (including capital expenditures related to the Properties owned by the Joint Ventures, but excluding capital expenditures
related to the Chicago Hotel) for the fiscal year-ended May 27, 2004 in accordance with the capital expenditure budget previously provided by the Marcus Entities to Buyer. 

        4.14    Insurance.    Set forth in Schedule 4.14 is a list and
description of all policies of fire, liability, product liability, workers compensation, health and other forms of insurance presently in effect with respect to the Marcus Mid-Priced
Lodging Businesses and the Purchased Assets; copies of such policies have heretofore been delivered to Buyer. Said insurance policies and arrangements are in full force and effect (or replacement or
renewal policies therefore will have been obtained), all premiums with respect thereto are currently paid, and to their knowledge, the Marcus Entities are in compliance in all material respects with
the terms of such policies. The Marcus Entities have not received any notice from any insurance carrier nor do the Marcus Entities have knowledge of, defects or inadequacies which if not corrected
would result in termination of insurance coverage or increase its cost. 

        4.15    Contracts and Commitments.    All Assigned Contracts are valid and are in full force and effect and constitute
legal, valid and binding obligations of the Marcus Entities or the Selling Joint Ventures, as applicable, and, to the knowledge of the Marcus Entities, the other parties thereto and are enforceable in
accordance with their respective terms, except as such enforcement may be limited by 

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applicable
bankruptcy Laws or by principles of equity that affect the enforcement of creditors' rights generally. Neither the Marcus Entities or any of the Selling Joint Ventures nor, to the knowledge
of the Marcus Entities, any other party to any Marcus Material Contract, is in default in complying with any material provisions thereof, and no condition or event or facts exists which, with notice,
lapse of time or both would constitute a default of a material provision thereof on the part of the Marcus Entities or any of the Selling Joint Ventures or, to the knowledge of the Marcus Entities, on
the part of any other party thereto. All Marcus Material Contracts are described on Schedule 4.15 hereto. 

        4.16    Labor Matters.    

        4.16(a)    Except
as set forth in Schedule 4.16(a), within the last five years the Marcus Mid-Priced Lodging
Businesses have not experienced any picketing of any nature, material organized labor disputes, union organization attempts or any work stoppage due to labor disagreements in connection with its
business. No labor organization represents for purposes of collective bargaining or has been recognized as the bargaining representative of any Employees or Contingent Workers. Except to the extent
set forth in Schedule 4.16(a), (a) except for any case as would not have a Material Adverse Effect, the Marcus Entities are in compliance
with all applicable Laws respecting employment and employment practices, including, without limitation, terms and conditions of employment and wages and hours; (b) except for any case as would
not have a Material Adverse Effect, there is no unfair labor practice charge or complaint pertaining to any employment-related matter against any Marcus Entity pending or, to the knowledge of the
Marcus Entities, threatened in writing; (c) there is no labor strike, dispute, request for union representation, slowdown or stoppage actually pending or, to the knowledge of the Marcus
Entities, threatened in writing against or affecting any Marcus Entity; (d) no question concerning union representation has been raised or, to the knowledge of the Marcus Entities, has been
threatened in writing respecting the Employees or Contingent Workers of any Marcus Entity; (e) no grievance, nor any arbitration proceeding arising out of or under collective bargaining
agreements, is pending and no such claim therefor exists; and (f) there are no administrative charges or court complaints against any Marcus Entity concerning alleged employment discrimination
or other employment related matters pending before the U.S. Equal Employment Opportunity Commission, National Labor Relations Board, or any other Government Entity, nor, to the knowledge of the Marcus
Entities, have any such matters been threatened in writing. To the knowledge of the Marcus Entities, except as set forth in Schedule 4.16(a),
since September 15, 2003, except for claims that have been resolved, there have been no credible claims by any Employees called into Marcus' "Careline" concerning alleged employment
discrimination, sexual harassment, wage and hour violations or retaliation. 

        4.16(b)    Except
as set forth in Schedule 4.16(b), to the knowledge of the Marcus Entities, no Marcus Entity is subject
to any affirmative action or prevailing wage obligations and no Marcus Entity has knowledge of any audit of any employment practices pending, scheduled or threatened in writing. 

        4.16(c)    To
the knowledge of the Marcus Entities, each Marcus Entity has, in all material respects, properly classified and treated for all employment-related purposes,
including, without limitation, in respect of wage and hour, tax, and employee benefits purposes, all Contingent Workers. 

        4.16(d)    To
the knowledge of the Marcus Entities, all Employees are authorized to work in the United States in accordance with the requirements of the Immigration Reform and
Control Act of 1986 and all Employees are employed in the United States. 

        4.16(e)    Except
as set forth on Schedule 4.16(e), the only Contingent Workers are those individuals that provide
periodic, non-exclusive services on a seasonal basis. 

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        4.17    Employee Benefit Plans.    Schedule 4.17 sets forth all
of the Marcus Employee Plan/Agreements relating to the Marcus Mid-Priced Lodging Businesses. True and complete copies of all the Marcus Employee Plan/Agreements and, where applicable, the
most recent summary plan description, have heretofore been provided to Buyer. 

        4.17(a)    Each
of the Marcus Employee Plan/Agreements that is intended to be "qualified" within the meaning of Section 401(a) of the Code has a favorable determination
letter from the IRS and no Marcus Entity knows of any fact or set of circumstances that would adversely affect such qualification prior to the Closing Date. 

        4.17(b)    Except
for the Transaction Stay/Severance Payments or as required by Article 6 of this Agreement or as
described in Schedule 4.17(b), neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated hereby
will (i) result in any material payment (including without limitation, severance, golden parachute or otherwise) becoming due under any Marcus Employee Plan/Agreement to any Employee;
(ii) materially increase the benefits otherwise payable under any Marcus Employee Plan/Agreement to any Employee; or (iii) other than the potential acceleration of the vesting of stock
options and restricted stock unless prohibited by the plans under which such options and restricted stock were issued, result in any material acceleration of the time or payment or vesting of any
material benefit to any Employee. 

        4.17(c)    Except
as expressly contemplated by this Agreement, none of the Marcus Employee Plan/Agreements will obligate Buyers to assume or perform any obligation thereunder
as a result of the transactions contemplated by this Agreement, or any agreement or document executed pursuant hereto. 

        4.18    Assets Necessary to Marcus Mid-Priced Lodging Businesses.    Except as disclosed in  Schedule 4.18, the Purchased Assets
and the assets of the Joint Ventures, together with the services to be provided to Buyer or its Affiliates
under the Transition Service Agreement, and together with such rights to the Subdivision Properties granted to Buyer in accordance with  Section 7.14 hereof, constitute all property and assets,
tangible and intangible, and all leases, Licenses and Permits and other agreements,
which are used or held for use in the Marcus Mid-Priced Lodging Businesses as conducted in accordance with past practices. 

        4.19    Affiliated Relationships.    To the Marcus Entities' knowledge, except as described in  Schedule 4.19, no Affiliate of
any Marcus Entity has any direct or indirect interest in (a) any customer, competitor or supplier which
does a material amount of business with any Marcus Entity or (b) any Purchased Asset. 

        4.20    Not a Foreign Person.    None of the Marcus Entities and none of the Selling Joint Ventures is a "foreign
person" within the meaning of Section 1445 of the Code, as amended, and the regulations promulgated thereunder. 

        4.21    No Brokers or Finders.    Other than Goldman Sachs & Co., neither the Marcus Entities nor any of their
Affiliates have retained, employed or used any broker or finder in connection with the transactions provided for herein or the negotiation hereof. The Marcus Entities shall pay any fee or commission
owing to Goldman Sachs & Co. in connection with the transactions contemplated by this Agreement, and shall jointly and severally indemnify, defend and hold harmless Buyer and each of its
Affiliates from and against all Losses asserted against, resulting to, imposed upon, or incurred by Buyer, its Affiliates, the Marcus Mid-Priced Lodging Businesses, the Purchased Assets or
the Assumed Liabilities transferred to Buyer pursuant to this Agreement, by reason of, arising out of or resulting from any failure to pay such fee or commission. 

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        4.22    Trade Rights.    

        4.22(a)    Scheduled Trade Rights.    Schedule 4.22(a) contains
an accurate and complete list of all Registered Owned Trade Rights, and all domain names owned or purported to be owned by any of the Marcus Entities or the Selling Joint Ventures and used in the
operation of the Marcus Mid-Priced Lodging Businesses and identifies the name of the entity which owns or purports to own each of the foregoing items.  Schedule 4.22(a) also contains an accurate and
complete list of all Trade Rights of third parties which are used by any Marcus Entity or any
Selling Joint Venture in the operation of the Marcus Mid-Priced Lodging Businesses and the corresponding license, sublicense or other agreement with such third party, including computer
software licenses, maintenance agreements, services agreements, hosting agreements, outsourcing agreements, e-distribution agreements and other technology agreements (collectively, the
"Licensed Trade Rights") and identifies the name of the entity which is using such Licensed Trade Right, other than commercially available software with
a total license fee of less than $5,000. The Owned Trade Rights and Licensed Trade Rights collectively constitute all of the Marcus Trade Rights. 

        4.22(b)    Ownership of Trade Rights.    Except as set forth in  Schedule 4.22(b), on the Closing Date, Buyer will either own or
have the adequate and enforceable right to use pursuant to an appropriate
agreement (as listed as a licensee in Schedule 4.22(b) with respect to the Licensed Trade Rights), free and clear of all Liens and payment
obligations, all Marcus Trade Rights, except as such enforcement may be limited by applicable bankruptcy Laws or by principles of equity that affect the enforcement of creditors' rights generally. The
Marcus Trade Rights constitute all Trade Rights used by any Marcus Entity or any Selling Joint Venture in the operation of the Marcus Mid-Priced Lodging Businesses. 

        4.22(c)    Registered Owned Trade Rights.    All Registered Owned Trade Rights are valid and enforceable, except as
such enforcement may be limited by applicable bankruptcy Laws or by principles of equity that affect the enforcement of creditors' rights generally. Except as set forth in  Schedule 4.22(c), there
are no past due, unpaid maintenance fees, examination fees, annuities or other governmental fees or past due filings or
affidavits of use on the Registered Owned Trade Rights. 

        4.22(d)    Domain Names.    Schedule 4.22(d) lists all domain
names used by any Marcus Entity or any Selling Joint Venture in connection with the Marcus Mid-Priced Lodging Businesses, and all agreements related to the use of such domain names and the
respective Internet protocol addresses. Except as listed on Schedule 4.22(d), the Marcus Entities or the Selling Joint Ventures own all of such
domain names and the associated websites. 

        4.22(e)    Licensed Trade Rights.    Except as listed in  Schedule 4.22(e), with respect to the Licensed Trade Rights: (a) the
agreement governing each Licensed Trade Right is legal, valid,
binding, enforceable and in full force and effect against the applicable Marcus Entity and/or the applicable Selling Joint Venture, except as such enforcement may be limited by applicable bankruptcy
Laws or by principles of equity that affect the enforcement of creditors' rights generally; (b) subject to obtaining any necessary consents and Buyer's compliance with the terms thereof, the
agreement will continue to be legal, valid, binding, enforceable and in full force and effect on identical terms following the Closing Date, except as such enforcement may be limited by applicable
bankruptcy Laws or by principles of equity that affect the enforcement of creditors' rights generally; and (c) to the knowledge of the Marcus Entities, no third party to the agreement is in
breach or default in any material respect, no transaction contemplated by this Agreement will result in a breach or default in any material respect, and no event has occurred, nor, subject to
obtaining all necessary consents, will the transactions contemplated by this Agreement cause an occurrence, which with notice or lapse of time would constitute a material breach or default by any 

23

 

of
the Marcus Entities or the Selling Joint Ventures or permit termination, modification or acceleration thereunder. 

        4.22(f)    Trade Rights Licensed Out.    Except as set forth in  Schedule 4.22(f) and except pursuant to their agreements with
their franchisees and the Joint Ventures, none of the Marcus Entities, the Selling
Joint Ventures or any of their Affiliates have granted any licenses of or other rights to use any Marcus Trade Rights to any third party. 

        4.22(g)    Confidential Information.    The Marcus Entities and their Affiliates have taken reasonable actions (which
do not include obtaining non-disclosure agreements with any employees) to protect and preserve the confidentiality of all trade secrets and confidential information included in the Owned
Trade Rights ("Confidential Information") taking into account, as applicable, the actions associated with the "auction" for the Marcus
Mid-Priced Lodging Businesses. Without limiting any of the foregoing, to the knowledge of the Marcus Entities, no material Confidential Information material to the Marcus
Mid-Priced Lodging Businesses has been disclosed or authorized to be disclosed to any third party (excluding Franchisees and potential or prospective Franchisees), other than pursuant to a
non-disclosure agreement that protects such entity's proprietary interests in and to such Confidential Information on the terms set forth in such non-disclosure agreement or
under circumstances in which the third party is under a legal duty not to disclose such Confidential Information on the terms set forth in such non-disclosure agreement. 

        4.22(h)    Infringement.    Except as set forth in  Schedule 4.22(h), neither operation of the Marcus Mid-Priced Lodging Businesses
nor any Marcus Trade Right interferes with, infringes
upon, misappropriates or otherwise comes into conflict with or has interfered with, infringed upon, misappropriated or otherwise come into conflict with any Trade Rights (other than patents) or, to
the knowledge of the Marcus Entities, any patents, of any third party, there are no pending or, to the knowledge of Marcus, any of the Marcus Entities, any of the Selling Joint Ventures or any of
their Affiliates, claims threatened in writing against Marcus, any of the Marcus Entities, any of the Selling
Joint Ventures or any of their Affiliates and none of Marcus, the Marcus Entities, any of the Selling Joint Ventures or any of their Affiliates has received any written charge, complaint, claim or
notice alleging any such interference, infringement, misappropriation or violation. Except as set forth in Schedule 4.22(h), no third party has,
to the knowledge of Marcus, the Marcus Entities, any of the Selling Joint Ventures or any of their Affiliates, interfered with, infringed upon, misappropriated or otherwise come into conflict with any
Owned Trade Rights or any Licensed Trade Rights exclusively licensed to Marcus, a Marcus Entity, any of the Selling Joint Ventures or any of their Affiliates. 

        4.22(i)    Guest Data.    The Marcus Records and Files contain all guest data and guest data bases developed and
retained by the Marcus Entities in connection with and/or currently used by the Marcus Entities in connection with the Marcus Mid-Priced Lodging Businesses including, without limitation,
all such information stored or maintained in Marcus' data warehouse. 

        4.22(j)    Privacy Policies.    Except as would not have a Material Adverse Effect on the Marcus Entities, the
Purchased Assets or the Marcus Mid-Priced Lodging Businesses, the operation of the Marcus Mid-Priced Lodging Businesses have at all times complied with all applicable
regulations and the publicly available privacy, security and other policies of Marcus, each of the Marcus Entities, any of the Selling Joint Ventures or any of their Affiliates, including those
provided on the websites operated in connection with the Marcus Mid-Priced Lodging Businesses, relating to the collection, storage and onward transfer of all personally identifiable
information collected by Marcus, the Marcus Entities, any of the Selling Joint Ventures or any of their Affiliates or any third parties having access to any of the databases of records of any of the
foregoing. Additionally, the transactions contemplated by this Agreement will not result in, and the receipt and use by Buyer of the Purchased Assets will not result in a breach or default under any
applicable 

24

 

regulation
or the publicly available privacy, security and other policies of Marcus, any of the Marcus Entities, any of the Selling Joint Ventures or any of their Affiliates, including those provided
on websites operated in conjunction with the Marcus Mid-Priced Lodging Businesses. 

        4.23    Franchise Matters.    

        4.23(a)    The
Franchise Offering Circular for Prospective Franchisees issued by Baymont Franchises on August 27, 2003 (the "Baymont 2004
Circular") and all franchise offering circulars for which any potential claims have not expired pursuant to any applicable statute of limitations used in connection with the
offer and sale of a franchise or an investment in a franchise to operate a Baymont Hotel, or its predecessor, a Budgetel lodging facility (collectively with the Baymont 2004 Circular, the
"Baymont Circulars") were prepared in compliance in all material respects with the Uniform Franchise Offering Circular Guidelines and related federal
and state regulations; are, or with respect to the Baymont Circulars excluding the Baymont 2004 Circular, were, true, accurate and complete in all material respects during the entire period any of the
Baymont Circulars was used in connection with the offer or sale of a franchise to operate a Baymont Hotel or Budgetel lodging facility; and as of the issuance and dissemination date, did not misstate
or omit any information material to a reasonable prospective
purchaser of a franchise or an investment in a franchise to operate a Baymont Hotel or a Budgetel lodging facility. 

        4.23(b)    Baymont
Franchises has not amended the Baymont 2004 Circular since the date of its issuance, and, to the extent that it is still disseminating the Baymont 2004
Circular, it is doing so in accordance with applicable Laws in connection with the offer and sale of franchises. 

        4.23(c)    Since
the date of issuance of the Baymont 2004 Circular, other than the transactions contemplated by this Agreement, there has been no material change in the
business, financial condition or affairs of Baymont Franchises, its franchise program or its franchise system that would require an amendment to the Baymont 2004 Circular. 

        4.23(d)    Except
as described on Schedule 4.23(d), Baymont Franchises has timely delivered to all prospective and
existing Baymont Hotel Franchisees a complete and accurate copy of the appropriate Baymont Circular in accordance with applicable Law and has obtained executed receipts thereof from all prospective
and existing Baymont Hotel Franchisees. 

        4.23(e)    Woodfield
Franchises has never offered or sold franchises for the establishment or operation of a Woodfield Hotel nor otherwise granted to any party the right,
directly or indirectly, to establish or operate a Woodfield Hotel, nor has it ever distributed a Franchise Offering Circular for Prospective Franchisees to any unrelated third party. 

        4.23(f)    Neither
Marcus nor any of the Marcus Entities have ever used franchise brokers in connection with the offer or sale of franchises. 

        4.23(g)    Except
as described in Schedule 4.23(g), Baymont Franchises is, in all material respects, in compliance with
all Franchise Documents to which it is a party as well as all obligations and duties owing with respect to all advertising and marketing funds and other funds and cooperatives under which Baymont
Franchises administers or collects monies on behalf of Franchisees, and, since January 1, 1999, none of the Marcus Entities has received any unresolved written notice of noncompliance from any
Franchisee with respect to any such Franchise Document or a breach of any obligations or duties with respect to such funds that could result in a Franchise Material Adverse Effect. Through the date
hereof, there are and, to the knowledge of the Marcus Entities, have been no franchise relationships to which Baymont Franchises or any of the Marcus Entities is a party, either existing, expired or
terminated, that have given rise to any currently unresolved claims or disputes that could result in a Franchise Material Adverse Effect. 

25

 

        4.23(h)    Except
as described in Schedule 4.23(h), to the Marcus Entities' knowledge, all Franchisees are, in all
material respects, in compliance with all Franchise Documents, and, since January 1, 1999, none of the Marcus Entities has delivered any unresolved notice of noncompliance with any Franchise
Document or the franchise related thereto, and none of the Marcus Entities is aware of any fact, circumstance, act or omission that would give rise to a claim of noncompliance with any Franchise
Documents by any present or former Franchisee that could result in a Franchise Material Adverse Effect. 

        4.23(i)    Except
as described in Schedule 4.10, through the date hereof, there is no Litigation pending or, to the
knowledge of the Marcus Entities, threatened against Marcus or any of the Marcus Entities related to any franchise or the franchise systems of Baymont Franchises and none of the Marcus Entities has
knowledge of any factual or legal basis which is reasonably likely to result in one or more Franchisees prevailing in Litigation against one or more Marcus Entity. 

        4.23(j)    Except
as described in Schedule 4.23(j), neither Marcus nor any of the Marcus Entities has offered, sold or
granted a Baymont franchise or a Woodfield franchise outside of the United States. 

        4.23(k)    Except
as described in Schedule 4.23(k), neither Marcus nor any of the Marcus Entities is currently a
guarantor or is otherwise party to an agreement pursuant to which it agreed to become directly or contingently liable (as a co-signor or otherwise) for the obligations of any Franchisee. 

        4.23(l)    Except
as described in Schedule 4.23(l), neither Marcus nor any of the Marcus Entities are currently leasing
or subleasing any real or personal property to any Franchisees. 

        4.23(m)    Except
as described in Schedule 4.23(m), neither Marcus nor any of the Marcus Entities has any currently
outstanding offer regarding, or is currently a party to, any financing arrangement with any Franchisee. 

        4.23(n)    Except
as described on Schedule 4.23(n), there are no area or regional representatives, development agents,
regional directors or other persons or entities that currently provide support services to Franchisees on behalf of Baymont Franchises, other than employees of the various Marcus Entities. 

        4.23(o)    Baymont
Franchises has delivered or made available to Buyer copies of all of the Franchise Documents (or, in the case of the license agreements, the forms of such
agreements, along with all modifications or amendments thereto), all of which Franchise Documents are listed in Schedule 4.23(o). All such copies
are true, correct, complete and authentic reproductions of the original Franchise Documents they purport to represent. Each such Franchise Document has been duly executed by the
applicable Marcus Entity and constitutes its valid and binding agreement, enforceable against it or by it in accordance with its terms, except as such enforcement may be limited by applicable
bankruptcy Laws or by principles of equity that affect the enforcement of creditors' rights generally. The Franchise Documents constitute all agreements between Baymont Franchises and the Franchisees
and there exist no other agreements, oral or written, between Baymont Franchises and the Franchisees. 

        4.23(p)    Except
as set forth in Schedule 4.23(p) or as would not constitute a Franchise Material Adverse Effect, since
January 1, 1999, the Marcus Entities have complied with, and have not received any written notice from any Franchisee or Government Entity with respect to any violation or alleged violation of
any federal, state, local or foreign Laws which govern the offer, sale, terms, operation, advertisement, modification, renewal, transfer or termination of franchises and business opportunities
including, without limitation, the FTC Trade Regulation Rule entitled "Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures" and all state and foreign
franchise disclosure and/or registration acts, franchise 

26

 

termination
Laws, franchisee rights Laws, business opportunity Laws, similar Laws of other jurisdictions and all material regulations promulgated under the foregoing. 

        4.23(q)    Except
as set forth in Schedule 4.23(q), the purchase by Buyer of the Purchased Assets, including all
Franchise Documents, will not require approval by any Franchisee. 

        4.23(r)    No
Franchise Document is subject to any right of rescission or termination (excluding only the express grant of termination rights contained in the Franchise
Documents or by Law). Since January 1, 1999, no Franchisee has asserted in writing such a right of rescission or termination, or has asserted in writing an intention to cease operating its
franchised outlet or not renew its franchise. 

        4.23(s)    None
of the Marcus Entities has sold, assigned, transferred, conveyed, pledged, granted a security interest in, or otherwise disposed of any interest in any of the
Franchise Documents or its rights thereunder, and Baymont Franchises is the sole beneficiary of the Franchise Documents and owns the rights of the franchisor thereunder, free and clear of any Liens. 

        4.23(t)    Neither
Marcus nor any of the Marcus Entities nor, to the knowledge of the Marcus Entities, any of their respective agents or representatives has engaged in any
fraudulent or deceptive action, error, omission, misrepresentation, practice, negligence or similar occurrence with respect to the offer or sale of any franchise to a Franchisee or in the filing,
registration, execution or delivery of any material Franchise Document, franchise disclosure document or related instrument. 

        4.23(u)    The
Marcus Entities have, in all material respects, fully accounted for and administered in accordance with applicable Law and all applicable agreements all
advertising funds and other marketing moneys contributed by Franchisees. Except as set forth in Schedule 4.23(u), prior to the date hereof, since
January 1, 1999, no Franchisee has asserted a written claim with respect to the expenditure or management of any such advertising funds or marketing monies by any of the Marcus Entities and, to
the knowledge of the Marcus Entities, there exists no legal or factual basis for any such claim. 

        4.23(v)    Except
as described in Schedule 4.23(v), no Franchise Document has been renewed, no third party renewal rights
have vested under and none of the Marcus Entities has refused to consent to the renewal of any Franchise Document. 

        4.24    Space Leasing.    Except as set forth on Schedule 4.24,
there are no tenant leases, concessions or other occupancy agreements affecting any of the Properties. 

        4.25    Bookings.    Attached as Schedule 4.25 is a correct and
complete list, as of a recent date, of all on-going agreements for the use or occupancy of guest rooms (excluding such agreements as they pertain to short term transient hotel guests) and
for the use of meeting and banquet facilities or other facilities at the Properties for any time after the Closing, including all deposits held by or on behalf of the Marcus Entities or the applicable
Selling Joint Venture with respect thereto. Schedule 4.25 shall be updated by the Marcus Entities two business days prior to Closing and
delivered to Buyer at Closing. 

        4.26    Shared Facilities.    Except as set forth on  Schedule 4.26, all hotel operations are conducted at the Properties, and
no Property relies on the use of off-site facilities,
equipment, software, systems or other property or rights not included in the Purchased Assets in order to operate the Properties as operated in accordance with past practices and to comply in all
material respects with any Laws. 

        4.27    Rights to Purchase.    Other than the Rights of First Refusal or consent to sale rights of Third Party
Partners, no Marcus Entity or Selling Joint Venture has granted any unexpired option, right of first refusal or similar right in favor of any person or entity, other than Buyer, to purchase or
otherwise acquire any of the Purchased Assets or any portion thereof or interest therein. 

27

 

        4.28    Joint Ventures.    The Marcus Entities have provided to Buyer a correct and complete copy of the operating
agreement or partnership agreement governing each of the Joint Ventures and each management or franchise agreement between a Joint Venture and a Marcus Entity and the Decatur, Illinois Management
Contract, including all amendments and supplements to each of the foregoing. 

        4.29    No Shareholder Vote.    No action or vote of the holders of any class or series of the capital stock of Marcus
is necessary to approve and adopt this Agreement or to consummate the sale of the Purchased Assets and the other transactions contemplated by this Agreement and the Ancillary Agreements. 

5.     REPRESENTATIONS AND WARRANTIES OF BUYER  

        Buyer makes the following representations and warranties to each of the Marcus Entities, each of which is true and correct on the date hereof and shall remain
true and correct in all material respects to and including the Closing Date. 

        5.1    Corporate.    

        5.1(a)    Organization.    Buyer is duly organized, validly existing and in good standing under the Laws of the State
of Delaware 

        5.1(b)    Authorization; Validity.    Buyer has all requisite power and authority under its charter documents and the
Laws of its state of organization to execute and deliver this Agreement and the Ancillary Agreements as to which it is or will be a party and the consummation of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate action. No other or further act or proceeding on the part of Buyer is necessary to authorize this Agreement or the Ancillary Agreements
or the consummation by it of the transactions contemplated hereby and thereby. This Agreement constitutes, and when executed and delivered, the Ancillary Agreements will constitute, valid and binding
agreements of Buyer, enforceable against it in accordance with their respective terms, except as such enforcement may be limited by applicable bankruptcy Laws or by principles of equity that affect
the enforcement of creditors' rights generally. 

        5.1(c)    Power.    Buyer has all requisite power to enter into this Agreement and the Ancillary Agreements to which
it is a party and to carry out the transactions contemplated hereby and thereby. 

        5.2    No Violation.    Neither the execution and delivery of this Agreement nor the Ancillary Agreements as to which
Buyer is or will be a party, nor the performance or consummation by Buyer of the transactions contemplated hereby and thereby will (a) contravene, conflict with, or result in a breach or
violation of any applicable Law or Order, or other restriction, whether written or oral, of any Government Entity, or court to which Buyer is subject, (b) contravene, conflict with or result in
a violation or breach of any provision of the organizational documents of Buyer or (c) except for applicable requirements of the HSR Act, require any authorization, consent, approval, exemption
or
other action by or notice to any Government Entity (including, without limitation, under any "plant-closing" or similar Law). 

        5.3    Financial Capability.    Buyer has cash available, which when combined with irrevocable commitments from
lenders, will enable it to consummate the transactions contemplated by this Agreement and to pay the Purchase Price at Closing. Buyer is prepared to, and has the financial capability to, satisfy its
obligations under the Assumed Liabilities. 

        5.4    No Brokers or Finders.    Other than Lehman Brothers, neither Buyer nor any of its Affiliates has retained,
employed or used any broker or finder in connection with the transactions provided for herein or the negotiation hereof. Buyer shall pay any fee or commission owing to Lehman Brothers in 

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connection
with the transactions contemplated by this Agreement, and shall jointly and severally indemnify, defend and hold harmless the Marcus Entities, the Selling Joint Ventures and each of their
Affiliates from and against all Losses asserted against, resulting to, imposed upon, or incurred by the Marcus Entities, the Selling Joint Ventures or their Affiliates by reason of, arising out of or
resulting from any failure to pay such fee or commission. 

6.     EMPLOYEES—EMPLOYEE BENEFITS  

        6.1    Employees; Affected Employees.    

        6.1(a)    Schedule 6.1(a) hereto contains a list of all Persons who currently provide service to the Marcus
Mid-Priced Lodging Businesses, including name, date of hire, position, site of work, status (active or inactive; if inactive, expected date of return), regularly scheduled hours per week,
base compensation and current bonus opportunity and identification of whether such Person is an Employee or Contingent Worker. At or prior to the Closing the Marcus Entities shall terminate the
employment of all Employees of the Marcus Mid-Priced Lodging Businesses (other than those employed at the Marcus corporate headquarters who will not become Affected Employees) and at
Buyer's request, shall terminate all service agreements or contracts relating to the services of Contingent Workers in each case who are then actively employed by Marcus Entities and Selling Joint
Ventures and shall pay any and all costs related thereto not specifically allocated to Buyer herein (other than to the extent Buyer does not comply with its obligations under  Section 6.1(b)). Prior
to the Closing Date but subject to Section 6.1(b), Buyer may, in
its discretion and on such terms as it deems appropriate, offer employment to, and the Marcus Entities shall use their reasonable efforts to assist
Buyer in employing as new employees of Buyer (without having to pay additional money or enter into any different or new bonus or incentive arrangements, other than as otherwise specifically
contemplated herein), the Employees who are in good standing and actively employed on the day immediately preceding the Closing Date, or can reasonably be expected to return to active employment
within 180 days following the Closing. Buyer's offers of employment to Employees who are actively employed must be accepted not less than one (1) week prior to Closing. Employment for
those Employees who accept offers of employment shall commence on the Closing Date or such later date as may be specified by Buyer (the Closing Date and such later dates shall be referred to
collectively as the "Transfer Dates"). The Marcus Entities and Buyer shall cooperate in good faith to determine their respective employment obligations
with respect to Employees who are not actively employed as of the Closing ("Leave Employees"). Subject to their normal policies and practices and in
compliance with all applicable Laws, the Marcus Entities shall continue the employment and remain responsible for applicable benefits of all Leave Employees. If a Leave Employee is able to return to
work within 180 days of the Closing Date, Buyer shall offer employment to such Leave Employee on terms consistent with this Section 6.
Notwithstanding anything to the contrary in this Section 6.1, Affected Employees (as well as other Employees, Contingent Workers and Leave
Employees who, prior to the date of this Agreement, were considered to be employed "at will") shall be (or, in the case of Employees, Contingent Workers and Leave Employees who are not Affected
Employees, shall continue to be) considered to be employed "at will" and nothing shall be construed to limit the ability of Buyer, the Marcus Entities or Selling Joint Ventures or any of its
Affiliates to terminate the employment of any Affected Employee at any time, whether before or after Closing, for any reason, or to change their terms and conditions of employment, including, but not
limited to, the levels of compensation and benefits, if any, in effect from and after the Transfer Date. 

        6.1(b)    Schedule 6.1(b) lists each single site of employment employing a sufficient number of employees that an
employer would have advance notice obligations under WARN or similar state or local Laws in the event of a shut down or mass layoff within the Marcus Mid-Priced Lodging Businesses acquired
by Buyer. Schedule 6.1(b) sets forth, as of a recent date, for each Employee of 

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the
Marcus Mid-Priced Lodging Businesses who has suffered an "employment loss" (as defined under WARN) during the 90-day period preceding the date hereof, including:
(A) the name of such Employee, (B) the date of hire of such Employee, (C) such Employee's regularly scheduled hours of employment over the six month period prior to such
"employment loss," and (D) such Employee's last work site, job title, assignment and department. The Marcus Entities shall, at Closing, update  Schedule 6.1(b) as of a recent date. Buyer shall
make offers of employment to a sufficient number of Employees so that no notices or other
obligations under WARN, or under any similar provision of any state or local Laws will be required or incurred as a result of the transactions contemplated herein or otherwise;  provided, however, that such obligations shall not apply to Employees who work at the Marcus Entities'
corporate headquarters in Milwaukee, Wisconsin. The parties expressly agree that Buyer's obligations hereunder apply only with respect to Employees employed at single sites of employment as listed on  Schedules 6.1(a)
 and 6.1(b) and that the Marcus Entities shall retain liability under WARN or similar
state or local Laws, insofar as they later may be determined to be applicable, for all Employees and all Contingent Workers at the Marcus Entities' Milwaukee, Wisconsin corporate headquarters. 

        6.1(c)    Buyer
will carry-over and recognize all unused vacation to the extent earned by Affected Employees while employed by the Marcus Entities. Affected
Employees may then use such carried over vacation in accordance with Buyer's policies and procedures. The Buyer shall receive a credit, as determined in accordance with Marcus GAAP, against the
Purchase Price in the amount of all vacation carried over and the Marcus Entities shall, other than the obligations associated with such credit, have no other obligations or Liabilities related to
such vacation to the extent so credited. Buyer shall be responsible for all COBRA obligations with respect to Affected Employees and the applicable Marcus Entity shall be responsible for all COBRA
obligations with respect to all other Employees. 

        6.1(d)    Other
than as required by Law or any Marcus Employee Plan/Agreement in effect as of the date hereof, all Transaction Stay/Severance Payments shall not include the
offer or payment of severance or any type of termination payment to Employees to whom Buyer makes an offer of employment, regardless of whether such offer is accepted, provided that such offer
(i) does not require such Employee to relocate and (ii) is for a substantially similar position and for substantially similar compensation. 

        6.2    Payroll Tax.    The Marcus Entities hereby acknowledge that for FICA and FUTA Tax purposes, Buyer or a
subsidiary of Buyer qualifies as a successor employer with respect to the Affected Employees. In connection with the foregoing, at Buyer's option, the Marcus Entities agree to follow or cause the
Selling Joint Ventures to follow the "Alternative Procedures" set forth in Section 5 of Revenue Procedure 96-60. Buyer shall notify the Marcus Entities of its intention to follow
the "Alternative Procedures" on or promptly after the Closing Date. If the "Alternative Procedures" are followed, the Marcus Entities and Buyer understand that Buyer shall assume the Marcus Entities'
and the Selling Joint Ventures' entire obligation to furnish a Form W-2, Wage and Tax Statement, to the Affected Employees. In addition to all Records and Files relating to the
Affected Employees that the Marcus Entities and the Selling Joint Ventures shall deliver to Buyer as of the Closing Date or as otherwise required by this Agreement, the Marcus Entities and the Selling
Joint Ventures shall timely provide Buyer with any and all other information (and in such format and media) as it shall reasonably request to properly comply with the requirements in the preceding
sentence, which in no event shall be more than ten (10) business days from the date of a written request for such information. 

        6.3    Employee Benefit Plans.    

        6.3(a)    As
soon as reasonably practicable, following the Closing Date, Buyer may arrange for each Affected Employee participating in any Marcus Employee Plan/Agreement to
participate in employee plans of Buyer, in Buyer's sole discretion, in accordance with the eligibility criteria 

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thereof.
If Buyer arranges for participation in such employee plans of Buyer, then (i) all such participants shall receive full credit for years of service with a Marcus Entity, Selling Joint
Venture or any of its Affiliates (and service otherwise credited by such Marcus Entity, Selling Joint Venture or Affiliate) prior to the Closing Date for eligibility and vesting purposes;
(ii) all such participants shall participate in such employee plans of Buyer on terms no less favorable than those offered by Buyer to similarly situated employees of Buyer; and (iii) to
the extent permitted by the applicable employee plans of Buyer, Buyer shall cause any and all pre-existing condition limitations, eligibility waiting periods and evidence of insurability
requirements under any group plans to be waived with respect to such participants and their eligible dependents to the same extent that such limitations were waived under the Marcus Employee
Plan/Agreement in which such Affected Employee previously participated and shall provide each participant with credit for any deductibles paid under an applicable Marcus Entity or Selling Joint
Venture welfare benefit plan prior to the Closing Date for purposes of satisfying any applicable deductible, out of pocket, or similar requirements under any health plans in which such participants
are eligible to participate after the Closing Date. As of the Closing, the Marcus Entities shall fully vest each Affected Employee or shall cause each Affected Employee to be fully vested in his or
her benefits or accounts under any Marcus Employee Plan/Agreement that is a 401(k) plan (the "Marcus 401(k) Plan"). The Marcus Entities will cause the
Marcus 401(k) Plan to permit Affected Employees to receive such distributions. Furthermore, the Marcus Entities shall cause the Marcus 401(k) Plan to be amended to the extent necessary to permit each
Affected Employee who has one or more outstanding loans under such plan as of Closing to roll over the promissory note(s) evidencing such loan(s) to the 401(k) plan of Buyer. Notwithstanding anything
herein to the contrary, the Marcus Entities shall have no obligation to accelerate the vesting of any of the Marcus stock options held by any Employee and all such options shall cease vesting and
terminate in accordance with their terms on the Transfer Date. 

        6.3(b)    Except
as provided in Section 6.1(c), in no event shall Buyer or any of its Affiliates be liable for any
benefits incurred or accrued by any Affected Employee under the Employee Plan/Agreements maintained by the Marcus Entities on or prior to the relevant Transfer Date. Except as provided in  Section 6.1(c), the Marcus Entities, the Selling Joint Ventures and their respective Affiliates, as applicable, will remain responsible for all
benefits payable to any Employees or former Employee with respect to service prior to the applicable Transfer Date and to any Employees under the Employee Plan/Agreements maintained by the Marcus
Entities who do not become Affected Employees, including, in each case, the Transaction Stay/Severance Payments. The Marcus Entities, the Selling Joint Ventures and their respective Affiliates, as
applicable, shall be responsible for providing any Employee or former Employee whose "qualifying event," within the meaning of Section 4980B(f) of the Code, occurs prior to the Transfer Date
(and such Employee's or former Employee's "qualified beneficiaries" within the meaning of Section 4980B(f)) with continuation of group health coverage required by Section 4980B(f) under
the terms of the applicable group health plan maintained by the Marcus Entities, the Selling Joint Ventures and their respective Affiliates, as applicable, and to the extent required by Law. 

        6.3(c)    The
Marcus Entities shall remain solely liable for any unused accrued vacation (except as provided in  Section 6.1(c) above), sick or so-called "earned" time with a Marcus Entity, a Selling Joint
Venture or any Affiliate thereof,
including carryover accrued vacation, sick or so-called "earned" time, salaries and wages, severance or termination payments (including, without limitation, any Transaction Stay/Severance
Payments), or any bonus or incentive payments or other forms of compensation or expense reimbursement with a Marcus Entity or any Affiliate thereof with respect to each Employee, including Affected
Employees. Subject to Section 2.1(f), the Marcus Entities shall remain solely liable for any worker's compensation claims in respect of any
injury or illness arising from any act or occurrence that occurs prior to the applicable Transfer Date. 

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7.     PRE-CLOSING COVENANTS  

        7.1    No Change in Financial Commitment(s).    Buyer will not materially change or alter the material terms and
conditions of the financing commitments referred to Section 5.3 prior to the Closing without the consent of the Marcus Entities (which consent
will not be unreasonably denied, withheld or delayed provided that the Buyer's ability to consummate the transactions contemplated herein on the scheduled Closing Date is not materially and adversely
affected). 

        7.2    Access to Information and Records.    From the date hereof until the Closing, the Marcus Entities shall
furnish, and shall cause its Affiliates and the Selling Joint Ventures to furnish, to Buyer, its officers, employees, agents, independent accountants and advisors reasonable access during normal
business hours upon reasonable advance notice to the Marcus Entities to (i) all of the Purchased Assets, the Properties, Marcus Records and Files and other financial and operating data and
information relating to the Marcus Mid-Priced Lodging Businesses, and (ii) all Employees (including Property-level and corporate administrative personnel) for the purpose of
conducting confirmatory investigations, testing and other diligence (collectively, "Diligence");  provided, however, that the Marcus Entities shall not be obligated to provide Buyer with information or
data related to the potential sale of the Marcus Mid-Priced Lodging Businesses (or any portion thereof) to any third parties; provided,  however, that in
each such case, the Marcus Entities shall provide written notice of the specific information or data not so provided and the specific
rationale for such exclusion. Any disclosure whatsoever during such investigation by Buyer shall not constitute an enlargement or other modification of the representations or warranties or other
obligations of the Marcus Entities beyond those specifically set forth in this Agreement. Buyer shall notify the Marcus Entities in writing of its intent to enter the Properties to conduct its
Diligence as soon as practicable but in no event less than forty-eight (48) hours prior to such entry (unless otherwise agreed); (ii) the date and approximate time period of such
Property-level Diligence shall be scheduled with the Marcus Entities; and (iii) Buyer shall comply with the insurance requirements set forth below. At the Marcus Entities' election, a
representative of the Marcus Entities shall be present during any entry by Buyer or its representatives upon the Properties for Diligence. Buyer shall have the right to conduct, at its sole cost and
expense,
any inspections, studies or tests that Buyer deems appropriate, provided, however, that Buyer shall
arrange for copies of any reports of such inspections, studies or tests to be delivered to the Marcus Entities' legal counsel at the same time they are delivered to Buyer and  provided further that Buyer
is not permitted to perform any sampling, boring, drilling or other physically intrusive testing into the structures or
ground, including, without limitation, a so-called "Phase II" environmental assessment, without the prior consent of the Marcus Entities, which consent shall not be unreasonably withheld.
Buyer shall take all necessary actions to ensure that neither it nor any of its representatives unreasonably interfere with guests or Employees of the Properties or ongoing operations occurring at the
Properties. Buyer shall not cause or permit any mechanic Liens, materialmen's Liens, or other Liens to be filed against the Properties as a result of its Diligence. 

        7.2(a)    To
the extent within the possession or control of the Marcus Entities, the Marcus Entities have provided or will provide to Buyer, within five (5) business
days after the execution and delivery of this Agreement, with respect to each of the Properties correct and complete copies of (i) the most current title insurance policies and title reports,
commitments and proforma title insurance policies that update such title insurance policies, together with copies of all title exception documents listed therein in their possession, (ii) the
most current survey for each Property, (iii) the most current assessments, reports and studies of the condition of the improvements for each Property including, without limitation, structural,
roof, HVAC and other building systems, (iv) the most current assessments, reports and studies of the compliance for each Property with the Americans with Disabilities Act, and (v) the
most current assessments, reports and studies for each Property with respect to compliance with Environmental Laws and otherwise with respect to environmental matters. 

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        7.2(b)    Buyer
agrees to indemnify, protect, defend, and hold the Marcus Entities and the Selling Joint Ventures harmless from and against any and all Losses for physical
injury or damage to Persons or tangible property suffered or incurred by any of the Marcus Entities and the Selling Joint Ventures as a result of or in connection with any activities of Buyer
(including activities of any of Buyer's employees, representatives, consultants, contractors, or other agents) in conducting its Diligence, including, without limitation, mechanics' Liens,
materialmen's Liens, or other Liens against the Properties as a result of its Diligence, damage to the Properties, or injury to persons or property resulting from such activities in connection
therewith; provided, however, that Buyer's indemnification obligations hereunder shall not include any
obligation or duty whatsoever with respect to any such Losses (including claims that any Property has declined in value) arising out of, resulting from or incurred in connection with the discovery of
any existing condition at the Properties. If any Property is physically damaged as a result of Buyer's Diligence, Buyer shall, at its sole cost, promptly repair such Property to its condition existing
prior to such damage to the reasonable satisfaction of the Marcus Entities. Furthermore, Buyer agrees to maintain and cause any of its representatives or agents conducting any Diligence at Properties
to maintain and have in effect adequate levels of commercial general liability insurance for personal injury, including bodily injury and death, and property damage. 

        7.2(c)    All
information obtained by Buyer, its officers, employees, representatives, agents, consultants, contractors, independent accountants and advisors in connection with
its Diligence shall be subject to
the terms and conditions of the confidentiality agreement previously executed between Buyer and Marcus. 

        7.3    Conduct of Business Pending the Closing.    With respect to the Marcus Mid-Priced Lodging
Businesses, from the date hereof until the Closing, except as otherwise contemplated or required by this Agreement or approved in writing by Buyer (which approval shall not be unreasonably denied,
withheld or delayed): 

        7.3(a)    No Material Changes.    The Marcus Entities: 

        7.3(a)(i)    will
carry on, and will use their reasonable efforts to cause the Selling Joint Ventures to carry on, the Marcus Mid-Priced Lodging Businesses
diligently and in the ordinary course of business consistent with past practice, including without limitation, pricing of guest rooms, hiring and training Property-level Employees and maintaining
staffing and customer service levels, in each case in the ordinary course of business consistent with past practice; 

        7.3(a)(ii)    will
cause Baymont Franchises to carry on the franchise services and support activities of its franchise program (other than franchise sales activities), in each
case diligently and in the ordinary course of business consistent with past practice and suspend its franchise sale activities; 

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        7.3(a)(iii)    will
not make or institute, and will use their reasonable efforts to cause the Selling Joint Ventures not to make or institute, any material changes in their
respective methods of purchase, sale, management, marketing or operation of the Marcus Mid-Priced Lodging Businesses other than those made in the ordinary course of business consistent
with past practice; 

        7.3(a)(iv)    will
not change, and will use their reasonable efforts to cause the Selling Joint Ventures not to change, any of the accounting principles or practices used with
respect to the Marcus Mid-Priced Lodging Businesses (except as required by changes in generally accepted accounting principles that become effective after the date hereof, in which case
written notice shall be provided to the Buyer); 

        7.3(a)(v)    will
not incur, and will use their reasonable efforts to cause the Selling Joint Ventures not to incur, any amount of indebtedness for borrowed money, guarantee
any debt of others, mortgage, pledge or otherwise encumber, or create or suffer any material Lien upon, any asset used in the conduct of the Marcus Mid-Priced Lodging Businesses other than
debt incurred in the ordinary course of business consistent with prior practice which will not be secured by any Purchased Asset; and 

        7.3(a)(vi)    subject
to Sections 4.9 and 6.1 and except for the Transaction
Stay/Severance Payments, will not increase the salaries, wages or other programs of a compensatory nature to any Employee, officer or Contingent Worker of the Marcus Mid-Priced Lodging
Businesses (including, without limitation, any increase or change pursuant to any Employee Plan/Agreement) other than in the ordinary course of business consistent with past practice. 

        7.3(b)    Maintain Organization.    The Marcus Entities will use, and will use their reasonable efforts to cause the
Selling Joint Ventures to use, their reasonable efforts (without having to pay or agree to pay additional unreasonable amounts of money or agree to any new or additional unreasonably unfavorable terms
or conditions, in each case, outside of the ordinary course of business) to maintain, preserve, renew and keep in favor and effect in all material respects the existence, rights and franchises of the
Marcus Mid-Priced Lodging Businesses and will use, and will use their reasonable efforts to cause the Selling Joint Ventures to use, their reasonable efforts (without having to pay or
agree to pay additional unreasonable amounts of money or agree to any new or additional unreasonably unfavorable terms or conditions, in each case, outside of the ordinary course of business) to
preserve the organization of the Marcus Mid-Priced Lodging Businesses intact in all material respects, to keep available to Buyer the present officers and key Employees of the Marcus
Mid-Priced Lodging Businesses, and to preserve in all material respects for Buyer their present relationships with suppliers, service providers and others having material business
relationships with the Marcus Entities, the Selling Joint Ventures or the Marcus Mid-Priced Lodging Businesses. 

        7.3(c)    No Material Breach.    The Marcus Entities will not do or omit any act and will use their reasonable efforts
to cause the Selling Joint Ventures not to do or omit any act which may cause (i) a breach of any Assigned Contract that is material to the Marcus Mid-Priced Lodging Businesses or
any of the Selling Joint Ventures, respectively or (ii) a breach of any representation, warranty, covenant or agreement made by the Marcus Entities herein (including with respect to the Selling
Joint Ventures). 

        7.3(d)    Material Contracts.    The Marcus Entities will not enter into, and will use their reasonable efforts to
cause the Selling Joint Ventures not to enter into, any Contract that would be an Assigned Contract that would be material to the Marcus Mid-Priced Lodging Businesses or any of the Selling
Joint Ventures, respectively except in the ordinary course of business consistent with past practice with the prior consent of Buyer, which consent shall not be unreasonably withheld. 

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The
Marcus Entities will not purchase, and will cause the Selling Joint Ventures not to purchase, Inventory that would be material to the Marcus Mid-Priced Lodging Businesses or any of the
Selling Joint Ventures respectively outside of the ordinary course of business consistent with past practice. The Marcus Entities will not sell, and will use their reasonable efforts to cause the
Selling Joint Ventures not to sell, goods or services that would be material to the Marcus Mid-Priced Lodging Businesses or any of the Selling Joint Ventures, respectively, by or on behalf
of the Marcus Entities, except sales which are in the ordinary course of business consistent with past practice, including past pricing practices. Other than as contemplated or required in this
Agreement, the Marcus Entities will not amend in any material respect or terminate prior to its stated termination date and will cause the Selling Joint Ventures not to so amend or terminate, any
Assigned Contract that is material to the Marcus Mid-Priced Lodging Businesses or any of the Selling Joint Ventures, respectively, outside of the ordinary course of business consistent
with past practices. 

        7.3(e)    Maintenance of Insurance, Permits and Licenses.    The Marcus Entities shall use, and will use their
reasonable efforts to cause the Selling Joint Ventures to use, their reasonable efforts to maintain in all material respects all of their insurance in effect as of the date hereof;  provided,
however, that the replacement or renewal of expired insurance policies with new insurance
policies with terms generally consistent with industry practice shall not violate this Section 7.3(e). The Marcus Entities shall maintain in
effect and, as required, renew, and shall cause the Selling Joint Ventures to so maintain and renew, all Licenses and Permits that are material to the Marcus Mid-Priced Lodging Businesses
or any of the Selling Joint Ventures, respectively, and shall not allow, and shall use their reasonable efforts to cause the Selling Joint Ventures to not allow, any such License or Permit that is
material to the Marcus Mid-Priced Lodging Businesses or any of the Selling Joint Ventures, respectively, to lapse or terminate. 

        7.3(f)    Maintenance of Purchased Assets.    The Marcus Entities shall, and shall use their reasonable efforts to
cause the Selling Joint Ventures to, use, operate, maintain and repair all Purchased Assets in a normal business manner (ordinary wear and tear, in each case taking into account age and geographical
location of the Property excepted) in accordance with the ordinary course of business; provided,  however, that this Section 7.3
(f) or 7.3(a)(i)
shall not require the Marcus Entities to replace, improve or materially repair any Property (other than in the ordinary course of business) or to initiate any new renovation of any Property. Other
than as contemplated or required by this Agreement, the Marcus Entities shall not, and shall use their reasonable efforts to cause the Selling Joint Ventures not to, sell, transfer, assign, lease or
otherwise dispose of any Purchased Assets except for sales or disposals of personal property in the ordinary course of business consistent with past practices where adequate replacements are made, if
necessary. 

        7.3(g)    Interim Financials.    The Marcus Entities will provide Buyer with interim unaudited management-prepared
periodically (i.e., four- or five-week) financial statements that contain information similar to that included in the Recent Financial Statements of the Marcus
Mid-Priced Lodging Businesses prepared in accordance with Marcus GAAP as promptly as practical but no later than fifteen (15) days after the end of each four- or
five-week period after the date of this Agreement. 

        7.3(h)    Labor and Employment Matters.    Except to the extent, in the good faith opinion of counsel to Marcus
(including its General Counsel), required by Law, the Marcus Entities shall not recognize, and shall use their reasonable efforts to cause the Selling Joint Ventures not to recognize, a labor
organization as the bargaining representative of any Employees or Contingent Workers of the Marcus Mid-Priced Lodging Businesses or enter into, and shall use their reasonable efforts to
cause the Selling Joint Ventures not to enter into, any collective bargaining agreement with respect to such Employees or Contingent Workers of such Business. 

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        7.3(i)    Confidential Information.    From the date hereof until Closing (and thereafter pursuant to, and on the
terms set forth in, Section 14.1 hereof), other than as contemplated or required by this Agreement, the Marcus Entities, their Affiliates
(including using their reasonable efforts to cause the Selling Joint Ventures) and their representatives will maintain the confidentiality of the Marcus Mid-Priced Lodging Businesses'
confidential and proprietary information in accordance, in all material respects, with their historical practices. 

        7.3(j)    Suspension of Franchise Sales.    Immediately after the parties execute this Agreement, Baymont Franchises
will suspend the offer and sale of franchises. From and after the execution of this Agreement, neither Woodfield Franchises nor any other Marcus Entity will offer for sale or sell a franchise for a
Woodfield Hotel or otherwise grant to any Person (other than Buyer) any right to operate a Woodfield Hotel. 

        7.3(k)    Statements to Prospective Franchisees.    After the date hereof, Baymont Franchises will not continue
discussions with any prospective franchisee regarding the sale of a franchise. Between the date of the
Agreement and the Closing, neither Baymont Franchises nor any other Marcus Entity will enter into a franchise agreement for a Baymont Hotel or otherwise grant to any Person (other than Buyer) any
right to operate a Baymont Hotel without Buyer's prior written approval, which Buyer will not unreasonably delay, but may withhold in its discretion. 

        7.3(l)    Franchise Transactions.    Between the date of this Agreement and the Closing, Baymont Franchises will
manage its franchise relationships in compliance in all material respects with the applicable Franchise Documents and all applicable franchise Laws. 

        7.3(m)    Modification of Franchises.    Between the date of this Agreement and the Closing, Baymont Franchises will
not make any material change to or waive or suspend the provisions of any Franchise Document. 

        7.4    Material Consents.    In addition to the more general obligations set forth in  Section 7.8 hereof, the Marcus Entities
will use, and will use their reasonable efforts to cause the Selling Joint Ventures to use, their
reasonable efforts from the date hereof until the Closing to obtain all Marcus Material Consents; provided,  however, that the Marcus Entities and the
Selling Joint Ventures shall not be required to pay or agree to pay additional unreasonable amounts of money
or agree to any new or additional unreasonably unfavorable terms or conditions in order to obtain such Marcus Material Consents. Buyer shall use its reasonable efforts to cooperate in obtaining all
such Marcus Material Consents; provided, however, that Buyer shall not be required to pay or agree to
pay additional unreasonable amounts of money or agree to any new or additional unreasonably unfavorable terms or conditions in order to obtain such Marcus Material Consents. 

        7.5    No Solicitation or Negotiations With Other Parties.    Other than with respect to Buyer and its Affiliates, the
Marcus Entities represent and warrant that they, their Affiliates and their representatives have ceased any discussions or negotiations (direct and indirect) with any parties with respect to a
Proposal or a sale, transfer, assignment or other disposition of one or more Properties (other than with respect to Excluded Assets). The Marcus Entities, their Affiliates and their representatives
(i) have terminated any other parties' (other than Buyer and its representatives) access to the electronic data room and any other diligence materials or activities (including access to
personnel, assets, Properties, reports and other information and data) related to the Mid-Priced Lodging Businesses, and (ii) will, within two business days after the date of this
Agreement, requested the return or destruction of all confidential information pertaining to the Marcus Mid-Priced Lodging Businesses provided by the Marcus Entities or its representatives
to any other party in connection with the evaluation, consideration and negotiation of a transaction involving the Marcus Mid-Priced Lodging Businesses or any of its material assets. From
and after the date hereof, the Marcus Entities shall not, nor shall they permit any of their Affiliates to, nor shall they authorize or permit any of their officers, directors or employees or any
investment banker, financial advisor, attorney, accountant or other representative 

36

 

retained
or utilized by it or any of its Affiliates to, directly or indirectly, (x) solicit, initiate or encourage (including by way of furnishing information which has not been previously
publicly disseminated), or take any other action designed to facilitate, any inquiries or the making of any proposal which constitutes, or may reasonably be expected to lead to, any Proposal or any
sale, transfer, assignment or other disposition of any Property (other than with respect to Excluded Assets, but, during the fifteen (15) day period beginning on the date hereof only, including
the JV Properties) or (y) participate in any discussions or negotiations regarding any Proposal or any sale, transfer, assignment or other disposition of any Property (other than with respect
to Excluded Assets, but, during the fifteen (15) day period beginning on the date hereof only, including the JV Properties). Notwithstanding the previous sentence, neither Marcus nor the Marcus
Entities shall, in any way, be prohibited from discussing or negotiating with any party with respect to any direct or indirect acquisition or purchase of Marcus or substantially all of Marcus' assets
(including the Excluded Assets), provided that any such acquisition or purchase (i) expressly excludes the Marcus Mid-Priced Lodging Businesses (and no information relating thereto
is furnished to, or retained by, such party other than as it relates to this Agreement and its terms and conditions and other publicly available information), and (ii) the obligations under
this Agreement will be assumed by such party in the event such transaction is consummated without relieving the Marcus Entities or Marcus of their obligations hereunder. 

        7.6    Notice of Developments.    

        7.6(a)    Seller Obligations.    From the date hereof until the Closing, the Marcus Entities shall promptly deliver,
and shall use their reasonable efforts to cause the Selling Joint Ventures to so deliver, to the Buyer supplemental information in writing concerning events or circumstances occurring subsequent to
the date hereof which would render any representation, warranty or statement in this Agreement made by the Marcus Entities (including in the schedules hereto) inaccurate in any material respect if
such representation, warranty or statement were required to be made following such event or circumstance. No such supplemental information shall be deemed to cure any misrepresentation or breach of
warranty or constitute an amendment of any representation, warranty or statement in this Agreement
or schedule hereto; provided that nothing in this subsection shall extend or alter the date at which any representation or warranty is made pursuant to
this Agreement. 

        7.6(b)    Buyer Obligations.    From the date hereof until the Closing, the Buyer shall promptly deliver to the Marcus
Entities supplemental information in writing concerning events or circumstances occurring subsequent to the date hereof which would render any representation, warranty or statement in this Agreement
made by Buyer inaccurate in any material respect at any time after the date of this Agreement until the Closing Date. No such supplemental information shall be deemed to cure any misrepresentation or
breach of warranty or constitute an amendment of any representation, warranty or statement in this Agreement; provided that nothing in this subsection
shall extend or alter the date at which any representation or warranty is made pursuant to this Agreement. 

        7.7    HSR Act Filings.    Each of the parties hereto undertakes and agrees to file as soon as reasonably practicable,
and in any event prior to July 26, 2004, a Notification and Report Form under the HSR Act with the FTC and the Antitrust Division. Each of the parties hereto shall (a) respond as
promptly as reasonably practicable to any inquiries received from the FTC or the Antitrust Division for additional information or documentation and to all inquiries and requests received from any
State Attorney General or other governmental authority in connection with antitrust matters, and (b) not extend any waiting period under the HSR Act or enter into any agreement with the FTC or
the Antitrust Division not to consummate the transactions contemplated by this Agreement, except with the prior written consent of the other parties hereto (subject to applicable Law). The Marcus
Entities shall use, and shall use their reasonable efforts to cause the Joint Ventures to use, their respective reasonable efforts to obtain and furnish the information required to be included in all
filings and 

37

 

submissions
contemplated by this Section 7.7. Each party shall (a) promptly notify the other parties of any communication to that party
from the FTC, the Antitrust Division, any State Attorney General or any other Government Entity and, subject to applicable Law, permit the other parties to review in advance any proposed written
communication to any of the foregoing; (b) not agree to participate in any substantive meeting or discussion with any governmental authority in respect of any filings, investigation or inquiry
concerning this Agreement or the transactions contemplated hereby unless it consults with the other parties in advance and, to the extent permitted by such Government Entity, gives the other parties
the opportunity to attend and participate thereat; and (c) furnish the other parties with copies of all correspondence, filings, and communications between them and their Affiliates and their
respective representatives on the one hand, and any Government Entity or members or their respective staffs on the other hand, with respect to this Agreement and the transactions contemplated hereby.
Notwithstanding the foregoing, in no event shall the Buyer be required to sell, divest or otherwise dispose of any assets, businesses or lines of business in order to comply with the foregoing, nor
shall the Buyer be required to agree to or observe any restrictions or limitations on its ability to conduct or engage in any line of business in order to comply with the foregoing. Buyer shall pay
all of the filing fees associated with any filings under the HSR Act, provided that each party shall pay its own costs and expenses related to the preparation of such reports. 

        7.8    Additional Agreements.    Subject to the terms and conditions herein provided including  Sections 1.3 and 7.4, each of the parties hereto agrees to use, and the Marcus Entities agree to use
their reasonable
efforts to cause the Selling Joint Ventures to use, its reasonable efforts to take, or cause to be taken, all material actions and to do, or cause to be done, all material things reasonably necessary,
proper or advisable to consummate and make effective as promptly as reasonably practicable the transactions contemplated by this Agreement and to cooperate, and the Marcus Entities agree to use their
reasonable efforts to cause the Selling Joint Ventures to cooperate with each other in connection with the foregoing, including the taking of such material actions as are required under this Agreement
to obtain any necessary approvals, orders, exemptions, assignments and authorizations by or from any public or private third party, including, without limitation, any that are required to be obtained
under any federal, state or local Law or any Assigned Contracts to which a Marcus Entity or a Selling Joint Venture is a party or by which any of their respective properties or assets are bound, to
defend, and the Marcus Entities agree to use their reasonable efforts to cause the Selling Joint Ventures to defend, all Litigation challenging this Agreement or the consummation of the transactions
contemplated by this Agreement and to use their reasonable efforts to cause to be lifted or rescinded any injunction or restraining order or other Order adversely affecting the ability of the parties
to consummate the transactions contemplated by this Agreement. 

        7.9    Adverse Diligence Discoveries.    

        7.9(a)    Definitions; Interpretation.    

        7.9(a)(i)    Adverse Diligence Discovery.    There shall be deemed to be an "Adverse Diligence
Discovery" if Buyer's Diligence discloses that any of the representations and warranties of the Marcus Entities (including with respect to the Marcus Entities, their Affiliates
and the Selling Joint Ventures) in Article 4 of this Agreement is breached; provided,  however, that for
purposes of this Section 7.9(a) only, any knowledge qualifications or
limitations contained in the representations and warranties of the Marcus Entities (i.e., the words "to the Marcus Entities' knowledge" or "to the knowledge of the Marcus Entities" and words of
similar import) shall be ignored and shall be deemed deleted from such representations and warranties. Notwithstanding the foregoing, an Adverse Diligence Discovery under this  Section 7.9(a) shall
exclude the condition of the case goods (including furniture, fixtures and equipment, etc.) and soft goods (including
carpeting, bedding and linens, etc.); provided that, except as provided in Section 11.2, no other
representations, 

38

 

warranties,
covenants, conditions, rights or other obligations under this Agreement shall be affected by this exclusion. 

        7.9(a)(ii)    Adverse Diligence Discovery Amount.    "Adverse Diligence Discovery
Amount" shall mean, with respect to any Property, the sum of (i) with respect to all Adverse Diligence Discoveries that are susceptible to reasonable cure, the aggregate
amount of all reasonable costs and expenses to reasonably cure all of such Adverse Diligence Discoveries and (ii) with respect to all Adverse Diligence Discoveries that are not susceptible to
reasonable cure, either (x) the aggregate adverse impact on the operational value of such Property, or (y) with respect to Adverse Diligence Discoveries relating to a breach of  Section 4.12(a) (but only with respect to Environmental Laws and Hazardous Substances released in
violation of any Environmental Law or which release requires any so-called "response action" (which may include remediation) under any Environmental Law or other requirement of any
Government Entity) or Section 4.12(c), the value of such Property in each case as determined pursuant to  Section 7.9(d). 

        7.9(a)(iii)    Excluded Diligence Amounts.    "Excluded Diligence
Amounts" shall mean any Adverse Diligence Discovery Amount related to an Adverse Diligence Discovery resulting from (w) a breach of the Excepted Representations and
Warranties; (x) any fraud, intentional misrepresentation or a deliberate or willful breach by the Marcus Entities of any of their representations, warranties or covenants under this Agreement;
and (y) any failure by Marcus Entities to pay, perform and discharge when due any of the Specifically Identified Excluded Liabilities. 

        7.9(a)(iv)    Reasonable Cure; Reasonably Cured.    When used herein, "reasonable" cure or "reasonably" cure will, as
appropriate, allow the Marcus Entities to repair all items or conditions that constituted the Adverse Diligence Discovery and shall not require the Marcus Entities to cure an Advance Due Diligence
Discovery based on a "replacement cost" standard or otherwise replace an item except if such replacement would be reasonably necessary to effect such cure. 

        7.9(b)    Notice.    Buyer shall give written notice to the Marcus Entities of any Adverse Diligence Discovery
promptly after obtaining knowledge thereof, and, in any event, on or before three (3) business days prior to the scheduled Closing Date. In the event of an Adverse Diligence Discovery during
the three (3) business days prior to the scheduled Closing Date, such Adverse Diligence Discovery shall be addressed promptly following the Closing in accordance with this  Section 7.9. Such
written notice shall, to the extent known to Buyer, contain the information otherwise required under  Section 11.5(a) for an indemnification claim under Article 11. 

        7.9(c)    Right to Cure.    To the extent that an Adverse Diligence Discovery is susceptible to reasonable cure prior
to Closing, then, the Marcus Entities may (in their sole discretion) attempt to effect such reasonable cure prior to Closing, and all documented out-of-pocket third party costs
incurred in connection with such reasonable cure attempt shall be (i) borne by the party that would be required to bear the impact of such Adverse Diligence Discovery pursuant to this  Section 7.9 if such Adverse Diligence Discovery were not reasonably cured and (ii) made available to Buyer. In the event that an Adverse
Diligence Discovery is not reasonably cured by any efforts of the Marcus Entities prior to Closing, the provisions of this Section 7.9 shall
apply with respect to such Adverse Diligence Discovery. 

        7.9(d)    Investigation; Dispute Resolution.    

        7.9(d)(i)    Investigation.    Upon receipt of any notice pursuant to and in compliance with  Section 7.9(b), the Marcus Entities
shall have three (3) business days to investigate the Adverse Diligence Discovery summarized therein.
Buyer shall make available to the Marcus 

39

 

Entities
and their authorized representatives, the information relied upon by the Buyer to substantiate all Adverse Diligence Discoveries summarized in any such notices, as well as any other
information bearing thereon reasonably requested by the Marcus Entities and then available to Buyer. 

        7.9(d)(ii)    Mutual Resolution of Disputes.    If and to the extent the Marcus Entities and Buyer do not agree on
(a) any Adverse Diligence Discovery Amount, (b) whether any Adverse Diligence Discovery is susceptible to reasonable cure or (c) what is required to reasonably cure an Adverse
Diligence Discovery, then the Chief Financial Officer and General Counsel of each of the Marcus Entities and Buyer shall meet in person or telephonically as soon as reasonably practical in order to
mutually resolve such disagreement. 

        7.9(d)(iii)    Third Party Resolution of Disputes.    If and to the extent the process summarized in  Section 7.9(d)(ii) does not
resolve the parties' disagreement and any Adverse Diligence Discovery has not been reasonably cured on or before
Closing by the Marcus Entities, then the following dispute resolution procedures shall apply: 

        7.9(d)(iii)(A)    Adverse Diligence Discoveries Effect Upon Certain Properties.    If an Adverse Diligence Discovery
is of a nature that prevents the transfer to Buyer of good title to a Property hereunder in accordance with this Agreement, then the applicable Property shall be excluded from this Agreement and the
Purchase Price reduced by the portion of the Purchase Price allocated thereto pursuant to Exhibit D, subject to the limitations set forth in  Section 7.9(g)
. Such excluded Property shall either be subject to Section 14.16 or, if the
parties mutually agree, then the Closing solely with respect to such Property shall be delayed to a mutually agreed upon date. 

        7.9(d)(iii)(B)    Disputes Regarding Adverse Diligence Discoveries.    To the extent that  Section 7.9(d)(iii)(A) is inapplicable, either
the Marcus Entities or Buyer may initiate the process set forth in this  Section 7.9(d)(iii)(B) at any time by giving notice (the "Appraisal Notice")
to the other party.
Within five (5) business days after an Appraisal Notice is given, the Marcus Entities and Buyer each shall provide to Horwath Hospitality Investment Advisors, or such other independent
valuation expert mutually agreed to by the parties (the "Valuation Expert"), with a copy to the other party, its opinion (each an
"Adverse Impact Opinion") as to the Adverse Diligence Discovery Amount (the "Adverse Diligence Discovery Value
Impact"), together with such supporting documentation as they may desire to provide. If one party fails to deliver its Adverse Impact Opinion within such five
(5) business day period but the other party has timely delivered its Adverse Impact Opinion, then the Adverse Diligence Discovery Value Impact shall automatically and conclusively be deemed to
be the amount set forth in the Adverse Impact Opinion so delivered by such party. If both parties have timely delivered their Adverse Impact Opinions to the Valuation Expert, then the Adverse
Diligence Discovery Value Impact shall be determined "baseball style" such that the Valuation Expert must choose as the Adverse Diligence Discovery Value Impact the amount set forth in either the
Marcus Entities' or Buyer's Adverse Impact Opinion, and shall have no right to make any other determination as to the Adverse Diligence Discovery Value Impact. The Valuation Expert shall choose the
Adverse Diligence Discovery Value Impact set forth in either the Marcus Entities' or Buyer's Adverse Impact Opinion within five (5) Business Days after the delivery of both of the Adverse
Impact Opinions, and such determination shall be final and binding on the Marcus Entities and Buyer, without any Liability to the Valuation Expert. 

40

 

        7.9(e)    Purchase Price Adjustment.    

        7.9(e)(i)    Non-Excluded Diligence Amounts.    If the Adverse Diligence Discovery Amount (excluding
Excluded Diligence Amounts) is: 

        7.9(e)(i)(A)    less
than or equal to Four Million Dollars ($4,000,000) (such amount is the "Adverse Diligence Discovery
Deductible"), then the Marcus Entities and Buyer shall proceed to Closing and the Purchase Price shall be reduced by (A) $0  plus (B) the aggregate Excluded Diligence
Amounts; 

        7.9(e)(i)(B)    more
than the Adverse Diligence Discovery Deductible but less than or equal to Forty-Four Million Dollars ($44,000,000) (the
"Adverse Diligence Discovery Cap"), then the Marcus Entities and Buyer shall proceed to Closing, except that the Purchase Price shall be reduced by
(A) the amount by which the Adverse Diligence Discovery Amount exceeds the Adverse Diligence Discovery Deductible plus (B) the aggregate
Excluded Diligence Amounts; or 

        7.9(e)(i)(C)    exceeds
the Adverse Diligence Discovery Cap, then Buyer may, within five (5) days after it is determined that the Adverse Diligence Discovery Amount
(excluding Excluded Diligence Amounts)
exceeds the Adverse Diligence Discovery Cap pursuant to this Section 7.9, send to the Marcus Entities notice of its election to proceed to
Closing, in which case the Purchase Price shall be reduced by an amount equal to the sum of (A) Forty Million Dollars ($40,000,000) plus
(B) the aggregate Excluded Diligence Amounts. If no such notice is sent by such deadline, or if Buyer otherwise declines to make such election, then this Agreement may be terminated by either
Buyer or the Marcus Entities in its entirety, in which event the Escrow Company will return the Earnest Money Deposit to Buyer, whereupon this Agreement shall terminate and the parties shall have no
further obligations or liabilities under this Agreement except those that expressly survive termination of this Agreement. 

        7.9(e)(ii)    Excluded Diligence Amount Deductible and Cap.    The Marcus Entities shall be fully liable for all
Excluded Diligence Amounts; provided, however, that if the aggregate Excluded Diligence Amounts equal or
exceed the cash Purchase Price, then the Marcus Entities may terminate this Agreement, in which event the Escrow Company will return the Earnest Money Deposit to Buyer, whereupon this Agreement shall
terminate and the parties shall have no further obligations or liabilities under this Agreement except those that expressly survive termination of this Agreement. 

        7.9(f)    Exclusion of Properties.    Notwithstanding anything to the contrary contained in this Agreement (but
subject to the Marcus Entities' right to reasonably cure under Section 7.9(c)), in addition to the foregoing rights and remedies, if the
aggregate Adverse Diligence Discovery Amount with respect to any Property resulting from Adverse Diligence Discoveries with respect to the representations and warranties of the Marcus Entities in  Section 4.12(a)
 (but only with respect to Environmental Laws and Hazardous Substances released in violation of Environmental Law or which release
requires any so-called "response action" (which may include remediation) under any Environmental Law or other requirement of any Government Entity is required to be remediated pursuant to
any Environmental Law), Section 4.12(c) or Section 4.13 (with respect to the first
sentence only) exceeds 17.5% of the portion of the Purchase Price allocated to the applicable Property pursuant to Exhibit D, then at Buyer's
request such Property shall be excluded from this Agreement and the Purchase Price shall be reduced by the portion of the Purchase Price allocated thereto pursuant to  Exhibit D subject to the
limitations set forth in Section 7.9(g);  provided, however, that, for purposes of this  Section 7.9(f) only, any knowledge, materiality (including any material adverse effect) and/or similar qualifications or limitations contained in
the representations 

41

 

and
warranties of the Marcus Entities in Sections 4.12(a), 4.12(c) and  4.13 (with respect to the first sentence
only) shall be ignored and shall be deemed deleted from each such representation and warranty. All such
Excluded Properties excluded pursuant to this Section 7.9(f) shall either be subject to  Section 14.16 or, if the parties mutually agree, then the
Closing solely with respect to such Property shall be delayed to a mutually agreed upon
date. 

        7.9(g)    Right to Terminate.    Notwithstanding anything to the contrary contained in this Agreement, if more than
nine (9) Properties (or such other higher number mutually agreed upon by Buyer and the Marcus Entities) are excluded from this Agreement or the Purchase Price is to be reduced by more than
Forty Million Dollars ($40,000,000) (excluding Purchase Price reductions due to Excluded Diligence Amounts) pursuant to this Article 7 and/or  Article 10, then either the Marcus Entities or Buyer shall have the right to terminate this Agreement in its entirety by giving written notice to
such effect to the other
party, in which event the Escrow Company will return the Earnest Money Deposit to Buyer, whereupon this Agreement shall terminate and the parties shall have no further obligations or liabilities under
this Agreement except those that expressly survive termination of this Agreement. 

        7.10    Meeting With Franchisees.    After the parties publicly announce the transactions contemplated by this
Agreement, the Marcus Entities will cooperate with Buyer in arranging, at Buyer's sole cost, regional, local and one-on-one meetings with each of the Franchisees (including the
Franchisee of the Baymont Hotel located in Decatur, Illinois). The Marcus Entities shall have the right, but not the obligation, to send at least one senior executive of Baymont Franchises or Baymont
Hotels to each meeting. 

        7.11    Liquor License; Other Licenses and Permits.    Subject to  Section 1.3, as promptly as practicable following the date of
this Agreement, Buyer shall complete, execute and file with the applicable liquor
licensing authority all necessary applications for transfer of all liquor licenses, each of which are listed on Schedule 7.11 (each a
"Liquor License") held by any of the Marcus Entities for the service or provision of alcoholic beverages at any of the Properties or the issuance of a
new Liquor License to Buyer. Buyer specifically acknowledges and agrees that the transfer of the Liquor License to Buyer on the Closing Date shall not be a condition to Buyer's obligation to close the
transaction contemplated under this Agreement; provided, however, that if the parties are unable to
cause the transfer of the existing Liquor Licenses to Buyer or its designee on the Closing Date or to cause the issuance of a new Liquor License to Buyer or its designee as of the Closing Date, then
the Marcus Entities and Buyer shall reasonably cooperate in good faith to implement arrangements whereby the appropriate license holding Marcus Entities shall manage the purchase, sale and service of
alcoholic beverages at the Properties where liquor is currently being served on behalf of Buyer or its designee following the Closing Date pending the transfer of the existing Liquor Licenses to Buyer
or its designee or the issuance of new Liquor Licenses to Buyer or its designee; provided, however, that
such arrangements shall comply with customary practices utilized on hotel purchase and sale transactions in the jurisdictions in which the Properties are located and applicable Laws. Without limiting
the foregoing, such arrangements may include entering into an Interim Beverage Services Agreement in the form attached hereto as Exhibit E, which
form shall be modified as mutually and reasonably agreed by the parties to reflect custom and practice in each applicable jurisdiction. Buyer and the Marcus Entities shall use reasonable efforts to
effect the transfer of all Licenses and Permits to Buyer (other than Licenses and Permits that are not transferable under applicable Law) and to enable Buyer to obtain new Licenses and Permits to
replace any nontransferable License and Permits. 

        7.12    Integration and Interface Development.    From the date hereof until the Closing, the parties shall cooperate
and use reasonable efforts to effect an efficient integration of the Marcus Mid-Priced Lodging Businesses into Buyer's operations. Such cooperation and efforts shall include, without
limitation, reasonable efforts to cooperate with respect to (i) the exchange of human resources related information (including information to facilitate the extension by Buyer of offers of
employment to 

42

 

certain
Employees); (ii) the training of Affected Employees; (iii) the implementation of the workplan attached hereto as Exhibit F,
as the same may be amended or supplemented by the mutual agreement of the parties prior to the Closing to facilitate the integration and interface development; and (iv) the development or
modification of interfaces between the relevant information technology systems of the Marcus Mid-Priced Lodging Businesses and such systems of Buyer (including, without limitation, the
installation of software, communication links, hardware and other systems and source codes). Nothing in this Section 7.12 shall require the
Marcus Entities or other Selling Joint Ventures to pay any of their Employees overtime or pay or agree to pay additional unreasonable amounts of money or agree to any new or additional unreasonably
unfavorable terms or conditions. 

        7.13    Letters of Credit.    To the extent that there are letters of credit supporting the obligations of other
parties to any of the Assigned Contracts and subject to Section 1.3, the Marcus Entities shall use reasonable efforts to deliver one of the
following for each such letter of credit: (i) if such letter of credit is, by its terms, assignable, such letter of credit together with a duly executed assignment of such letter of credit
which cites Buyer as the beneficiary thereof or (ii), if such letter of credit is not, by its terms, assignable to Buyer, such letter of credit together with a commitment in form reasonably
satisfactory to Buyer by the bank issuing such letter of credit to reissue such letter of credit with Buyer as the beneficiary thereof upon surrender of the outstanding letter of credit, in which case
the Marcus Entities agree to surrender such letter of credit at Closing. Buyer shall use reasonable efforts to assist the Marcus Entities in obtaining any such replacement letters of credit including,
without limitation, exercising Buyer's rights and remedies under the applicable Assigned Contract in order to cause the Assigned Contract counterparty to obtain any replacement letter of credit. 

        7.14    Subdivision Properties.    Buyer and the Marcus Entities hereby acknowledge that the Baymont Hotels and
Woodfield Hotels located on the Real Property described in Schedule 7.14 hereto (individually, a "Subdivision
Property," and collectively, the "Subdivision Properties") are not legally divided parcels of land such that the Baymont Hotel
facility or Woodfield Hotel facility, as applicable, is legally separate from the immediately adjacent land and/or land and improvements. 

        7.14(a)    Boundaries of Parcels.    Prior to Closing, Buyer and the Marcus Entities shall mutually agree upon the
boundaries of the portion of each Subdivision Property (including the land and improvements thereon) to be conveyed to Buyer (individually, a "Buyer's Subdivision
Parcel", and collectively, the "Buyer's Subdivision Parcels"), and that portion (including the land and improvements thereon) to
be retained by the applicable Marcus Entity (individually, a "Retained Subdivision Parcel", and collectively, the "Retained
Subdivision Parcels"). Notwithstanding the foregoing, the parties hereby acknowledge and agree that all improvements comprising each Baymont Hotel facility or Woodfield Hotel
facility, as applicable, and all related parking spaces required by local zoning ordinances and otherwise used in the operation of the Baymont Hotel facility or Woodfield Hotel facility, as
appropriate, consistent with past practice, shall be included within the boundaries of each Buyer's Subdivision Parcel, and each Buyer's Subdivision Parcel shall comply with all zoning Laws,
subdivision Laws and other Laws applicable thereto. In addition, the parties hereby acknowledge and agree that each Buyer's Subdivision Parcel shall abut directly on a public way, with curb cuts that
comply with all Laws, or shall have direct access to a public way pursuant to a valid easement of record reasonably acceptable to Buyer, which easement shall be included as an insured parcel in the
title insurance policy issued pursuant to Section 8.10 hereof. The boundaries of each Buyer's Subdivision Parcel shall also be sufficient:
(i) to permit the Escrow Company to issue to Buyer the title insurance policy required under Section 8.10 hereof including, to the extent
available in such jurisdiction under applicable Laws, a zoning 3.1 endorsement with parking, and an access endorsement insuring access, either directly or through an insured easement, to a public way,
or to the extent such endorsements are not available in such jurisdictions, written confirmation from the applicable municipal zoning administrator/land use planning department confirming that such
Buyer's Subdivision Parcel complies with all applicable 

43

 

zoning
and land division ordinances; and (ii) for the surveyor to issue an updated ALTA/ACSM survey of the Subdivision Property showing such subdivision. Any reciprocal easement agreements,
shared parking agreements or similar easements or agreements affecting any Buyer's Subdivision Parcel and entered into in connection with such land division shall be subject to the reasonable mutual
approval of the Marcus Entities and Buyer. 

        7.14(b)    Land Division Process.    The Marcus Entities shall commence, and shall use reasonable best efforts to
pursue to completion at their sole cost and expense, the land division of each Subdivision Property in accordance with the mutually agreed-upon plans and boundaries, and otherwise in
accordance with all Laws applicable to each Subdivision Property. Buyer agrees to reasonably cooperate, at no cost to Buyer, with the Marcus Entities in obtaining all necessary approvals of the land
division and conveyance of the Buyer's Subdivision Parcels to Buyer. 

        7.14(c)    Treatment of Subdivision Properties at Closing.    At Closing, to the extent any Subdivision Properties
have not then been legally divided in accordance with the requirements of this Section 7.14, Buyer or an Affiliate, as tenant, and the applicable
Marcus Entity, as landlord, shall enter into a lease agreement in the form attached hereto as Exhibit G, providing for annual rent of One Dollar
($1.00), pursuant to which Buyer or an Affiliate shall lease from the applicable Marcus Entity, and the applicable Marcus Entity shall lease to Buyer, Buyer's Subdivision Parcel including all
improvements thereon, and all Owned Personal Property, Inventory and Computer Software, and the Marcus Entities shall deliver to Buyer the applicable documents set forth in  Section 12.1 and all
related Contracts, Personal Property Leases, Records and Files, Licenses and Permits, Warranties and future Bookings and
other intangible rights and assets, each to the extent the same would be transferred to Buyer if such Buyer's Subdivision
Parcel would be a Property conveyed to Buyer on the Closing Date, located at or used in connection with the operation of the applicable Buyer's Subdivision Parcel until such time as the land division
is approved by all applicable Government Entities and otherwise meets the requirements of this Section 7.14, and Buyer's Subdivision Parcel may
be legally conveyed to Buyer, or such lease is terminated as provided in Section 7.14(e). To the extent such items cannot be leased or conveyed
to Buyer, as applicable, the Marcus Entities shall also take such efforts as would be required by Section 1.3 as if such Buyer's Subdivision
Parcel were a Property. At Closing, Buyer shall deposit into escrow with the Escrow Company the portion of the Purchase Price (net of all prorations required hereunder) allocated to each Subdivision
Property pursuant to Exhibit D, that has not then been legally divided and approved by all applicable Government Entities and otherwise satisfies
the requirements of this Section 7.14, which portion of the Purchase Price shall be held by the Escrow Company, in escrow, pending final approval
of the land division and the satisfaction of the other requirements of this Section 7.14 with respect to such Subdivision Property, and
conveyance of such Buyer's Subdivision Parcel to Buyer, or the return of such funds to Buyer as provided in Section 7.14(e). 

        7.14(d)    Conveyance Upon Receipt of Approvals.    Promptly after receiving all necessary approvals from all
applicable Government Entities, and the satisfaction of the other requirements in this Section 7.14, relative to each Subdivision Property:
(i) Buyer and the Marcus Entities shall jointly instruct the Escrow Company to release to the Marcus Entities such portion of the Purchase Price, along with all interest thereon (which shall be
reported as income of the Marcus Entities), allocated to the Subdivision Property for which all necessary approvals have been obtained, and (ii) the Marcus Entities shall deliver to Buyer a
deed and a bill of sale, in the forms required under this Agreement, together with such tax declaration forms as may be required by applicable Laws, conveying or assigning, as appropriate, to Buyer
Buyer's Subdivision Parcel and the other property leased by Buyer or an Affiliate relative to such Buyer's Subdivision Parcel pursuant to  Section 7.14(c), as well as the title company affidavits
required under Section 12.1(x)
and other ancillary documents provided for in Section 12.1 to the extent applicable. 

44

  

        7.14(e)    Failure to Obtain Approvals.    At any time upon the written agreement of Buyer and the Marcus Entities, or
in the event the Marcus Entities are unable to obtain, on or before the Termination Date (as defined in Exhibit G), approval of all applicable
Government Entities of the land division of any Subdivision Property in accordance with the terms and requirements of this Section 7.14 relative
to such Subdivision Property, then at Buyer's election, either: 

        7.14(e)(i)    the
applicable Subdivision Property shall be excluded from this Agreement, and the Marcus Entities and Buyer shall jointly instruct the Escrow Company to release
to Buyer such portion of the Purchase Price allocated to such Subdivision Property, including all interest thereon (but minus any outstanding amounts due to the applicable Marcus Entity under the
terms of the lease between the applicable Marcus Entity and Buyer (or its Affiliate)), and adjusted for the reproration of the items provided in  Section 12.3 hereof as of the time of the
termination of the applicable lease and the transfer of possession back to the applicable Marcus
Entity), and such excluded Subdivision Property shall be an Excluded Property subject to Section 14.16, the lease with respect thereto shall be
automatically terminated, and all related Contracts, Personal Property Leases, Records and Files, Licenses and Permits, Warranties and future Bookings and other intangible rights and assets shall be
assigned back to and be assumed by the Marcus Entities; or 

        7.14(e)(ii)    the
Marcus Entities shall: (a) sell the building and other real property improvements located on the applicable Buyer's Subdivision Parcel and the
associated Owned Personal Property, Inventory, and Computer Software and, to the extent not previously assigned to Buyer, shall assign to Buyer all Contracts, Personal Property Leases, Records and
Files, Licenses and Permits, Warranties, Bookings and other general intangible rights and assets used in connection with the ownership or operation of the applicable Buyer's Subdivision Parcel, in
each case pursuant to the documents and procedures set forth in Sections 12.1 and 12.2, for an aggregate
purchase price equal to the component of the Purchase Price allocated to such Subdivision Property in Exhibit D times a fraction, the numerator
of which is the amount allocated to such building and other real property improvements, and to the associated Owned Personal Property and the other aforementioned items, each to the extent not
previously conveyed to Buyer pursuant to Section 3.5, and the denominator of which is the total amount
(i.e., land, improvements and associated Owned Personal Property) allocated to such Subdivision Property pursuant to Section 3.5, and
(b) enter into a ninety-nine (99) year "financeable" ground lease with Buyer for Buyer's Subdivision Parcel upon the terms and conditions set forth in this  Section 7.14(e)(ii), and upon
such other terms and conditions as may be mutually and reasonably agreed upon by the applicable Marcus Entity and
Buyer. In no event would the Marcus Entities be required to subordinate their fee interest in Buyer's Subdivision Parcel subject to such ground lease to any mortgage or deed of trust financing of
Buyer. Any such ground lease shall be sufficient for Buyer to obtain a leasehold title insurance policy insuring such leasehold interest consistent with the provisions of  Section 8.10 hereof, and
otherwise reasonably satisfactory to both parties thereto, and shall provide for rent which, if paid over the term of
such ground lease, would provide the Marcus Entities with total rent, discounted to present value using a discount rate of 6.5%, equal to the component of the Purchase Price allocated to such
Subdivision Property in Exhibit D times a fraction, the numerator of which is the amount allocated to the land portion of such Subdivision
Property pursuant to Section 3.5 and the denominator of which is the total amount (i.e land,
improvements and associated Owned Personal Property) allocated to such Subdivision Property pursuant to Section 3.5. If the parties cannot agree
on any of the terms of such "financeable" ground lease, then, at 

45

 

either
party's election, such dispute shall be resolved by binding arbitration pursuant to Section 15. 

        7.14(f)    Marcus Entities Representations and Warranties.    Notwithstanding that Buyer's Subdivision Parcels may be
leased to Buyer pursuant to this Section 7.14, Buyer shall have the right to bring claims for breaches of the representations and warranties and
covenants of the Marcus Entities pursuant to Article 11 hereof as if Buyer had purchased Buyer's Subdivision Parcels at Closing, and such claims
shall be subject to all of the provisions of Article 11 of this Agreement as if Buyer had purchased Buyer's Subdivision Parcels;  provided,
however, that with respect to any claims for breaches of any representations and warranties
and covenants of the Marcus Entities contained herein that apply solely to the physical condition of or compliance with laws of a specific Buyer's Subdivision Parcel, the Marcus Entities shall have no
obligation to make any indemnification for any Losses relating thereto, and such claims shall be ignored for purposes of determining whether the Deductible and Indemnification Cap have been met,
unless Buyer shall have, prior to undertaking any work or incurring any cost to effectuate a cure of such breach, notified the Marcus Entities in writing of such breach and provided the Marcus
Entities with the opportunity to cure the same, and the Marcus Entities fail to cure the same as provided in this Section. Upon receipt of Buyer's written notice of such breach, the Marcus Entities
shall have the option to undertake and perform such work or take such actions, at the sole expense of the Marcus Entities, as may be necessary to effect a reasonable cure; provided that:
(i) Buyer shall have the right to approve, in its reasonable discretion, the scope of work proposed by the Marcus Entities, and (ii) the Marcus Entities shall promptly commence, and
diligently prosecute to completion, the work set forth in the scope of work approved by Buyer. In the event the Marcus Entities take no action to propose a scope of work or commence action to cure the
breach within thirty (30) days after Buyer delivers to the Marcus Entities written notice of the same, Buyer may undertake such work, and/or incur such costs, as deemed reasonably necessary by
Buyer to cure the same. In such case, Buyer shall have the right to bring a claim for the breach of the representations and warranties and covenants of the Marcus Entities pursuant to  Article 11
hereof as if Buyer had purchased the applicable Buyer's Subdivision Parcel at Closing, and such claim shall be subject to all of the
provisions of Article 11 of this Agreement as if Buyer had purchased the applicable Buyer's Subdivision Parcel at Closing. Notwithstanding
anything to the contrary set forth above, to the extent that any claim by Buyer for breaches of any representations and warranties or covenants of the Marcus Entities apply solely to defects in the
physical condition of or the noncompliance with Laws of the improvements on a specific Buyer's Subdivision Parcel, and the consequence of such breach results in an emergency situation that requires
immediate repairs to the applicable building or other improvements in order to avoid imminent injury to persons or further damage to property, then Buyer shall have the right to institute such
emergency repairs immediately as long as it promptly provides notice to the Marcus Entities thereof. 

        7.15    Restrictions on Real Property.    Buyer hereby acknowledges and agrees that no Use Restricted Property shall,
for a period of fifteen (15) years after the Closing Date, be used or operated in any manner other than as a hotel or lodging facility and uses ancillary thereto (including, but not limited to,
restaurant and food service uses), without the prior written consent of the Marcus Entities, which consent shall not be unreasonably withheld. Such limitations on use of the Use Restricted Properties
shall automatically terminate as of the fifteenth (15th) anniversary of the Closing Date. Buyer also acknowledges and agrees that the Marcus Entities shall execute and deliver to Buyer, at Closing, a
recordable restrictive covenant to such effect in form reasonably acceptable to Buyer. Buyer from time to time after the Closing Date, at the request of the Marcus Entities shall execute and deliver
further instruments, and take such other actions, consistent with this provision to evidence Buyer's agreement hereunder. The Marcus Entities hereby acknowledge and agree that no Retained Real
Property adjacent to, or located within 1/4 mile of, any Use Restricted Property shall, for a period of fifteen (15) years after the Closing Date, be used or operated as a
Competing Hotel without the prior written 

46

 

consent
of Buyer. Such limitations on use of each Retained Real Property adjacent to, or located within 1/4 mile of, any Use Restricted Property shall automatically terminate as of the
fifteenth (15th) anniversary of the Closing Date. The Marcus Entities also hereby acknowledge and agree that the Marcus Entities shall execute and deliver to Buyer at Closing, a recordable restrictive
covenant to such effect in form reasonably acceptable to Buyer. The Marcus Entities from time to time after the Closing Date, at the request of Buyer shall execute and deliver further instruments, and
take such other actions, consistent with this provision to evidence the Marcus Entities' agreement hereunder. 

        7.16    Data Room Web Site.    The Marcus Entities shall notify Buyer of any new documents or materials posted on the
data room web site maintained by the Marcus Entities within 24 hours of such posting. 

        7.17    New Ovations Agreements.    If Buyer desires to continue to offer, as rewards under the Ovations programs,
rewards provided by Affiliates of the Marcus Entities, then prior to Closing, Buyer and such Affiliates shall negotiate mutually agreed upon contracts (the "New Ovations
Agreements") governing such rewards. 

        7.18    Change in Officers.    The Marcus Entities shall give Buyers prompt notice of any change in any personnel at
the general manager position or any more senior position in the Marcus Mid-Priced Lodging Businesses. 

        7.19    Further Assurances.    The Marcus Entities from time to time prior to the Closing, at the request of Buyer,
shall cooperate with and provide assistance to Buyer in removing the Purchased Assets from the Marcus Entities' or the Selling Joint Ventures' premises (or wherever located). 

        7.20    Property-Level Contracts.    Promptly after the date hereof, the Marcus Entities shall use reasonable efforts
(including soliciting information from each general manager) to deliver a list of all Assigned Contracts, a list of all Marcus Personal Property Leases, a list of all Selling Joint Venture Personal
Property Leases, a list of all Assigned Licenses and Permits and a list of all Bookings, in each case not otherwise included in the applicable Schedules relating to such item. 

        7.21    Disclosure of Transaction Stay/Severance Plan.    Subject to  Section 6.1(d), the Marcus Entities shall, promptly after
finalizing any formal plan pursuant to which any Transaction Stay/Severance Payments
are made, disclose such plan to Buyer. 

8.     CONDITIONS PRECEDENT TO BUYER'S OBLIGATIONS  

        Each and every obligation of Buyer to be performed on the Closing Date shall be subject to the satisfaction prior to or at the Closing of each of the following
conditions: 

        8.1    Representations and Warranties True on the Closing Date.    Each of the representations and warranties made by
the Marcus Entities (including with respect to Marcus, its Affiliates and the Joint Ventures) in Article 4 of this Agreement shall be true and
correct when made and shall be true and correct at and as of the Closing Date as though such representations and warranties were made or given on and as of the Closing Date, except (a) for any
changes permitted by the terms of this Agreement consented to in writing by Buyer or (b) to the extent any failure of such representations and warranties to be true and correct in all material
respects would not have a Material Adverse Effect. 

        8.2    Compliance With Agreement.    The Marcus Entities shall have performed and complied with all of their
agreements and obligations under this Agreement which are to be performed or complied with by them prior to or on the Closing Date, except to the extent that any failure to perform or comply with such
agreements or obligations has been consented to in writing by Buyer or would not have a Material Adverse Effect. 

47

 

        8.3    Absence of Litigation.    No Litigation or investigation by any Government Entity shall have been commenced and
shall be continuing or shall be threatened in writing against Buyer, any of the Marcus Entities, any of the Joint Ventures, Marcus or any of their respective Affiliates wherein an unfavorable
judgment, order, decree, stipulation or injunction would (i) restrict, prevent or prohibit consummation of the transactions contemplated by this Agreement, (ii) cause the transactions
contemplated by this Agreement to be rescinded following consummation, (iii) have a Material Adverse Effect, or (iv) require the Buyer, upon consummation of any of the transactions
contemplated by this Agreement, to hold separate or dispose of any of the assets of the Marcus Mid-Priced Lodging Businesses or impose limitations on the ability of the Buyer to control in
any respect the business, assets or operations of the Marcus Mid-Priced Lodging Businesses, and no such judgment, order, decree, stipulation or injunction shall be in effect. 

        8.4    HSR Waiting Period.    All applicable waiting periods (and any extensions thereof) related to the HSR Act shall
have expired or otherwise been terminated. 

        8.5    Leases Relative to Subdivision Properties.    The applicable Marcus Entities holding fee simple title to the
Subdivision Properties shall have entered into leases for each of the Buyer's Subdivision Parcels in the form attached hereto as Exhibit G. 

        8.6    Closing Documents.    The Marcus Entities shall have delivered or caused to be delivered the documents
specified in Section 12.1 hereof. 

        8.7    Consents, etc.    Any consent, authorization, order or approval of (or filing or registration with) any third
party identified in Schedule 8.7 shall have been obtained, at the Marcus Entities' sole cost. 

        8.8    Acts of Terror.    Since the date of the Agreement, there shall have not occurred any acts of terror targeting
two or more Properties that have a Material Adverse Effect or could reasonably be expected to have a Material Adverse Effect. 

        8.9    Estoppel Certificates.    Receipt by Buyer of estoppel certificates in form and substance reasonably
satisfactory to Buyer from (a) each of the lessors under the Real Property Leases, and (b) counterparties to any reciprocal easement or shared use agreement or similar agreement
affecting any of the Properties. 

        8.10    Title Insurance Policies.    The willingness of the Escrow Company to issue to Buyer, at customary title
company rates, standard ALTA 1992 form (or if such form is not available in a particular jurisdiction under applicable Laws, the form customarily used in such jurisdiction) owner's insurance policies
insuring good and marketable fee simple (or leasehold in the case of the Properties subject to the Real Property Leases) title on each of the Properties, subject only to the Permitted Real Property
Liens and such other exceptions to title as are permissible under the provisions of this Agreement and as are consistent with the representations and warranties and covenants of the Marcus Entities in
this Agreement with respect to title, and including owners' comprehensive, zoning form 3.1, same as survey, creditor's rights, access, contiguity, subdivision and utility endorsements to the
extent such endorsements are available under applicable Laws governing the issuance of title insurance in each state where a Property is located, deletion of standard exceptions and, if applicable,
so-called "gap" coverage. 

        8.11    Employee Data.    The Marcus Entities shall deliver to Buyer in a machine readable format not less than ten
(10) business days prior to Closing such information regarding Affected Employees as is set forth in Schedule 6.1(a). 

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9.     CONDITIONS PRECEDENT TO THE MARCUS ENTITIES' OBLIGATIONS  

        Each and every obligation of the Marcus Entities to be performed on the Closing Date shall be subject to the satisfaction prior to or at the Closing of each of
the following conditions: 

        9.1    Representations and Warranties True on the Closing Date.    Each of the representations and warranties made by
Buyer in Article 5 of this Agreement shall be true and correct when made and shall be true and correct at and as of the Closing Date as though
such representations and warranties were made or given on and as of the Closing Date, except (a) for any changes permitted by the terms of this Agreement consented to in writing by the Marcus
Entities or (b) to the extent any failure of such representations and warranties to be true and correct in all material respects would not have a Material Adverse Effect. 

        9.2    Compliance With Agreement.    Buyer shall have performed and complied with all of its agreements and
obligations under this Agreement which are to be performed or complied with by Buyer prior to or on the Closing Date, except to the extent that any failure to perform or comply with such agreements or
obligations have been consented to in writing by the Marcus Entities or would not restrict, prevent or prohibit Buyer's ability to consummate the transactions contemplated by this Agreement or would
not have a Material Adverse Effect. 

        9.3    Absence of Litigation.    No Litigation or investigation by any Government Entity shall have been commenced and
shall be continuing or shall be threatened in writing against Buyer, the Marcus Entities, the Joint Ventures, Marcus or any of their respective Affiliates with respect to the transactions contemplated
hereby which would restrict, prevent, or prohibit the consummation of the transactions contemplated by this Agreement. 

        9.4    HSR Waiting Period.    All applicable waiting periods (and extensions thereof) related to the HSR Act shall
have expired or otherwise been terminated. 

        9.5    Leases Relative to Subdivision Properties.    Buyer shall have entered into the leases described in  Section 8.5 for
each of the Buyer's Subdivision Parcels in the form attached hereto as  Exhibit G. 

        9.6    Closing Documents.    The Buyer shall have delivered or caused to be delivered the cash portions of the
Purchase Price contemplated by Section 12.2(a) and the documents specified in  Section 12.2. 

10.   RISK OF LOSS  

        10.1    Casualty.    If, at any time after the date of this Agreement and prior to Closing or earlier termination of
this Agreement, any Property or any material portion thereof is damaged or destroyed by fire or any other casualty (a "Casualty"), the Marcus Entities
shall give written notice of such Casualty to Buyer promptly after the occurrence of such Casualty. 

        10.1(a)    Material Casualty.    If the estimated amount required to fully repair or restore the Property damaged by
such Casualty to its condition immediately prior to such Casualty, as reasonably agreed to by the Marcus Entities and the Buyer, equals or exceeds 17.5% of the portion of the Purchase Price allocated
to the applicable Property pursuant to Exhibit D (a "Material Casualty") and the Casualty was not
caused by Buyer or any person that conducted inspections by or on behalf of Buyer, or their respective employees or agents, then Buyer shall have the right to elect, by providing written notice to the
Marcus Entities within ten (10) Business Days after Buyer's receipt of the Marcus Entities' written notice of such Casualty and the Parties' agreement on the estimated cost to repair or
restore, to (a) cause the affected Property to be excluded from this Agreement and reduce the Purchase Price by the amount thereof allocated to such Property subject to limits in  Section 7.9(g) (in which case the Property shall either be an Excluded Property subject to  Section 14.16 or, if the parties mutually agree, then the Closing solely 

49

 

with
respect to such Property shall be delayed to a mutually agreed upon date), or (b) proceed to Closing, in which case the Marcus Entities shall (i) provide Buyer with a credit against
the Purchase Price in an amount equal to the applicable insurance deductible, and (ii) transfer and assign to Buyer all of the Marcus Entities' right, title and interest in and to all claims
and proceeds from all casualty and lost profits insurance policies maintained by the Marcus Entities with respect to the affected Property, except those proceeds allocable to lost profits and costs
incurred by the Marcus Entities for the period prior to the Closing. If Buyer fails to provide written notice of its election to the Marcus Entities within such time period, then Buyer shall be deemed
to have elected to proceed to Closing pursuant to clause (b) of the preceding sentence. If the Closing is scheduled to occur within Buyer's ten (10) day election period, the Closing
Date, with respect to such Property only, shall be postponed until the date which is five (5) Business Days after the expiration of such ten (10) day election period. If the Marcus
Entities and the Buyer are unable to agree on the estimated costs to repair or restore as provided herein within ten (10) Business Days after Buyer's receipt of the Marcus Entities' written
notice of such Casualty, the determination of the estimated costs to repair or restore shall be made by the Valuation Expert as promptly as possible thereafter and the Closing, with respect to such
Property only, shall be extended accordingly. 

        10.1(b)    Non-Material Casualty.    In the event of any (i) Casualty which is not a Material
Casualty, or (ii) Material Casualty which is caused by Buyer or any person that conducted inspections by or on behalf of Buyer, or their respective employees or agents, then Buyer shall not
have the right to terminate this Agreement, but shall proceed to Closing, in which case the Marcus Entities shall (A) provide Buyer with a credit against the Purchase Price (except if such
Casualty is caused by Buyer or any Person that conducted inspections and/or Diligence by or on behalf of Buyer) in an amount equal to the applicable insurance deductible plus any uninsured amount of
the repair or restoration cost, and (B) transfer and assign to Buyer all of the Marcus Entities' right, title and interest in and to all claims and proceeds from all casualty and lost profits
insurance policies maintained by the Marcus Entities with respect to the applicable Property, except those proceeds allocable to any lost profits or costs incurred by the Marcus Entities for the
period prior to the Closing. If the Marcus Entities and the Buyer are unable to agree on the estimated costs to repair or restore as provided herein, the determination of the estimated costs to repair
or restore shall be made by the Valuation Expert prior to the Closing Date. 

        10.2    Condemnation.    If, at any time after the date of this Agreement and prior to Closing, any Government Entity
commences any condemnation proceeding or other proceeding in eminent domain with respect to all or any portion of a Property (a "Condemnation"), the
Marcus Entities shall give written notice of such Condemnation to Buyer promptly after the Marcus Entities receive notice of such Condemnation. 

        10.2(a)    Material Condemnation.    If the Condemnation would result in the loss in value of more than 17.5% of the
portion of the Purchase Price allocated to the applicable Property pursuant to Exhibit D (a "Material
Condemnation"), then Buyer shall have the right to elect, by providing written notice to the Marcus Entities within ten (10) Business Days after Buyer's receipt of the
Marcus Entities' written notice of such Condemnation and agreement on the loss in operational value (if applicable), to (A) reduce the Purchase Price by the amount thereof allocated to such
Property subject to conditions in Section 7.9(g), in which case the Property shall be an Excluded Property subject to  Section 14.16 or
(B) proceed to Closing, without terminating this Agreement, in which case the Marcus Entities shall assign to Buyer all
of the Marcus Entities' right, title and interest in all claims, proceeds and awards from such Condemnation. If Buyer fails to provide written notice of its election to the Marcus Entities within such
time period, then Buyer shall be deemed to have elected to proceed to Closing pursuant to clause (B) of the preceding sentence. If the Closing is scheduled to occur within Buyer's ten
(10) day election period, the 

50

 

Closing
shall be postponed until the date which is five (5) Business Days after the expiration of such ten (10) day election period. If the Marcus Entities and the Buyer are unable to
agree on the loss in value (if applicable) as provided herein within ten (10) Business Days after Buyer's receipt of the Marcus Entities' written notice of such Condemnation, the determination
of such loss in value shall be made pursuant to the dispute resolution process described in Section 7.9(d)(ii) and  7.9(d)(iii). 

        10.2(b)    Non-Material Condemnation.    In the event of any Condemnation other than a Material
Condemnation, Buyer shall not have the right to terminate this Agreement, but shall proceed to Closing, in which case the Marcus Entities shall assign to Buyer all of the Marcus Entities' right, title
and interest in all claims, proceeds and awards from such Condemnation. 

11.   SURVIVAL; INDEMNIFICATION  

        11.1    Survival.    All of the representations and warranties of the Buyer and Marcus Entities contained in this
Agreement shall survive the Closing (even if the Buyer knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing, other than knowledge of Adverse Diligence
Discoveries for which the Purchase Price was adjusted) and continue in full force and effect for a period of 12 months thereafter; provided,  however,
that the representations and warranties of the Marcus Entities contained in  Section 4.12(c) shall survive the Closing (even if the Buyer knew or had reason to know of any misrepresentation or
breach of warranty at the
time of Closing, other than knowledge of Adverse Diligence Discoveries for which the Purchase Price was adjusted) and continue in full force and effect for a period of 24 months thereafter;  provided, however, that the representations and warranties of the Marcus Entities contained in  Sections 4.6, 4.17, 4.20,
4.23(a), 4.23(d), 4.23(p),  4.23(t) and 4.23(u) (with respect to  Section 4.23(u) only, only the first sentence thereof, and only to the extent related solely to events that occurred prior to the date
hereof)
shall survive the Closing (even if the Buyer knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing, other than knowledge of Adverse Diligence Discoveries for
which the Purchase Price was adjusted) and continue in full force and effect until sixty (60) days after the expiration of the applicable statute of limitations;  provided further, however, that there shall be no limitation as to time for any claims pursuant to this
Article 11 relating to, arising out of or resulting from (u) breaches of the Excepted Representations and Warranties (even if Buyer knew
or had any reason to know of any misrepresentation or breach of warranty or covenant at the time of Closing, other than knowledge of Adverse Diligence Discoveries for which the Purchase Price was
adjusted); (v) fraud or intentional misrepresentation by the Marcus Entities of any of their representations, warranties or covenants in this Agreement; (w) deliberate or willful breach
by the Marcus Entities of any of their representations, warranties or covenants in this Agreement; (x) the breach of any covenant of the Marcus Entities contained in this Agreement (excluding,
solely for purposes of this provision (x), Articles 4, 8,  9, 15 (other than Sections 15.6 and  15.7), 16, 17 (other
than  Sections 17.2, 17.3, 17.5,  17.7, 17.8, 17.9,  17.13, 17.18 and 17.19) and  Sections 3.1, 3.2, 13.1, and
13.2(b))); (y) any claim asserted or instituted against Buyer or any of its properties or assets by a third party seeking to assert, or claiming
ownership or rights to ownership of any of the Purchased Assets; and (z) any of the Marcus Entities' or Selling Joint Ventures' failure to pay, perform and discharge, when due, any of the
Excluded Liabilities, but only to the extent that such Excluded Liabilities are Specifically Identified Excluded Liabilities. Subject to the limitations set forth in the preceding sentence, claims
with respect to the pre-Closing covenants of this Agreement may be made only through the date that is twelve (12) months after the Closing. Each Party's indemnification obligations
with respect to representations, warranties, covenants, and obligations in this Agreement shall survive until the applicable representation, warranty, covenant or obligation period ends pursuant to
this Section; provided, however, that if an Indemnified Party (as defined below) delivers to an
Indemnifying Party (as defined below), before expiration of a representation or warranty, either a notice of claim based upon a breach of such representation or warranty, or a notice that, as a result
of a legal proceeding instituted by or written claim made by a 

51

 

third
party, the Indemnified Party reasonably expects to incur Liabilities, including those as a result of claims, as a result of a breach of such representation or warranty (an
"Expected Claim Notice") that includes the information required by, and otherwise complies with,  Section 11.5(a), then such representation or warranty
shall survive until, but only for purposes of, the resolution of the matter covered by such
Expected Claim Notice. If the legal proceeding or written claim with respect to which an Expected Claim Notice has been given is definitively withdrawn or resolved in favor of the Indemnified Party,
the Indemnified Party shall promptly so notify the Indemnifying Party. 

        11.2    Indemnification By the Marcus Entities.    Subject to the terms and conditions of this  Article 11, from and after the
Closing Date, the Marcus Entities hereby agree to jointly and severally indemnify, defend and hold harmless Buyer
and each of its Affiliates from and against all Losses (including without limitation reasonable amounts paid to enforce the provisions of this  Article 11, subject to a determination under
Section 11.5) asserted against, resulting
from, imposed upon, or incurred by Buyer, its Affiliates, the Marcus Mid-Priced Lodging Businesses, the Purchased Assets transferred to Buyer pursuant to this Agreement, by reason of,
arising out of or resulting from: (a) fraud or intentional misrepresentation by the Marcus Entities of any of their representations, warranties or covenants under this Agreement; (b) a
deliberate or willful breach by the Marcus Entities of any of their representations, warranties or covenants under this Agreement; (c) the inaccuracy or breach of any representation or warranty
of the Marcus Entities contained in or made pursuant to Article 4 of this Agreement (excluding any representation or warranty to the extent related to the condition of case goods (including
furniture, fixtures and equipment, etc.) and soft goods (including carpeting, bedding and linens, etc.); provided, that, other than as set forth in  Section 7.9, no other representations, warranties, covenants, conditions, rights or other obligations under this Agreement shall be affected by
this exclusion; (d) the breach of any covenant of the Marcus Entities contained in this Agreement (excluding, solely for purposes of this provision (d), Articles
4, 8, 9, 15 (other than  Sections 15.6
and 15.7), 16,  17 (other than Sections 17.2, 17.3, 17.5,  17.7, 17.8, 17.9,  17.13, 17.18 and 17.19) and
Sections 3.1, 3.2, 13.1, and  13.2(b))); (e) any Marcus
Entities' or Selling Joint Ventures' failure to pay, perform and discharge, when due, any of the Excluded Liabilities;
(f) any Marcus Entities or Selling Joint Ventures' failure to pay, perform and discharge, when due any of the Excluded Liabilities that are not Specifically Identified Excluded Liabilities;
(g) any claim by any third party seeking to assert, or claiming ownership or rights to ownership of any Purchased Asset; and (h) any claim asserted or instituted against Buyer, or any of
its properties or assets, by any third party related to any Excluded Liability; provided, however, that
no indemnification shall be available from Marcus Entities under this Section 11.2 for any Liability to the extent accounted for in a Purchase
Price adjustment pursuant to Section 7.9. 

        11.3    Indemnification By Buyer.    Subject to the terms and conditions of this  Article 11 from and after the Closing Date,
Buyer hereby agrees to indemnify, defend and hold harmless the Marcus Entities and each of its
Affiliates from and against all Losses (including without limitation reasonable amounts paid to enforce the provisions of this Article 11,
subject to a determination under Section 11.5) asserted against, resulting from, imposed upon or incurred by any such person, directly or
indirectly, by reason of or resulting from (a) fraud or intentional misrepresentation by Buyer of any of its representations, warranties or covenants under this Agreement; (b) a
deliberate or willful breach by the Buyer of any of its representations, warranties or covenants under this Agreement; (c) the inaccuracy or breach of any representation or warranty of Buyer
contained in or made pursuant to this Agreement; (d) the breach of any covenant of Buyer in this Agreement (excluding, solely for purposes of this provision (d),  Articles 5, 8, 9,  15 (other than Sections 15.6 and 15.7)
,
16, 17 (other than Sections 17.2,  17.3, 17.5, 17.7,  17.8, 17.9, 17.13,  17.18 and 17.19) and Sections 3.1,  3.2,
13.1, and 13.2(a)); (e) Buyer's failure to
pay, perform and discharge, when due, any of the Assumed Liabilities; or (f) any claim asserted or instituted against the Marcus Entities, or any of their properties or assets, by any third
party related to any Assumed Liability. 

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        11.4    Indemnification of Third Party Claims.    The following provisions shall apply solely to any claim subject to
indemnification which is (i) Litigation filed or instituted by any third party or (ii) any other form of Litigation instituted by any Government Entity: 

        11.4(a)    Notice and Defense.    The party or parties to be indemnified (whether one or more, the
"Indemnified Party") will give the party from whom indemnification is sought (the "Indemnifying Party")
written notice of any such claim within 30 days of becoming aware of any such claim, and the Indemnifying Party will undertake the defense thereof by representatives chosen by it unless the
Indemnifying Party disputes the propriety of such claim for indemnification against it under the provisions of this Article 11 (in which case the
provisions of Section 11.5 shall govern the resolution of such disputed indemnification claim). To the extent the Indemnifying Party undertakes
the defense of such claim and for so long as the Indemnifying Party is defending any such claim actively and in good faith, the Indemnified Party shall not settle or agree to an adjudication of such
claim. The Indemnified Party shall make available to the Indemnifying Party or its representatives all records and other materials required by them and in the possession or under the control of the
Indemnified Party, for the use of the Indemnifying Party and its representatives in defending any such claim, and shall in other respects give reasonable cooperation in such defense. 

        11.4(b)    Failure to Defend.    If the Indemnifying Party, within a reasonable time after notice of any such claim,
fails to defend such claim actively and in good faith or if the claim for indemnification against it is otherwise disputed by the Indemnifying Party, then the Indemnified Party will (upon further
notice) have the right to undertake the defense of the claim subject to its rights against the Indemnifying Party under this Article 11. In such
event, the Indemnified Party shall not settle or compromise any such claim without the consent of the Indemnifying Party, which consent shall not be unreasonably withheld. 

        11.4(c)    Right to Participate.    Notwithstanding a party's responsibility for the defense of a claim, the other
party shall have the right to participate, at its own expense and with its own counsel, in the defense of a claim and the party having responsibility for defense of the claim (the
"Defending Party") shall consult with the other party from time to time on all material matters relating to the defense of such claim. The Defending
Party shall provide the other party with copies of all pleadings and material correspondence relating to such claim. 

        11.5    Claims Procedure.    The following exclusive procedure shall govern any and all indemnification claims against
an Indemnifying Party which may be brought pursuant to the provisions of this Agreement: 

        11.5(a)    Notice.    The Indemnified Party shall give written notice to the Indemnifying Party of all claims, whether
between the parties or raised by a third party, that could constitute a claim for indemnification under this Article 11 within 30 days of
becoming aware of such claim. The written notice shall specify to the extent known by the Indemnified Party (i) the factual basis for such claim and the alleged violation of this Agreement;
(ii) the dollar amount of the claim and the basis therefor; and (iii) copies of all underlying correspondence or communication from a third party or otherwise with respect to the
foundation of such claim. 

        11.5(b)    Determination Procedure.    With respect to indemnification claims between the parties, following receipt
of notice from the Indemnified Party of a claim, the Indemnifying Party shall have 30 days to make such investigation of the claim as the Indemnifying Party deems necessary or desirable. With
respect to indemnification claims relating to the claims of third parties, the Indemnifying Party shall have a reasonable period, given the nature of the third party claim and any response time
required by such third party, to make such investigation of the claim as the Indemnifying Party deems necessary or desirable. For purposes of such investigation, the Indemnified Party agrees to make
available to the Indemnifying Party and/or its authorized 

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representatives
the information relied upon by the Indemnified Party to substantiate the claim, as well as any other information bearing thereon reasonably requested by the Indemnifying Party. If the
Indemnified Party and the Indemnifying Party agree at or prior to the expiration of such investigation period (or any mutually agreed upon extension thereof) to the validity and amount of such claim,
then the Indemnifying Party shall immediately pay to the Indemnified Party the full amount of the claim, less any applicable Deductible (as defined in  Section 11.6(b)) and subject to the
limitations herein. If the Indemnified Party and the Indemnifying Party do not agree within 30 days
from the date of a claim hereunder (or any mutually agreed upon extension thereof, including subsequent to the final determination of a third-party indemnification claim), then the Indemnified Party
and the Indemnifying Party shall appoint a panel of three neutral arbitrators (one selected by the Indemnified Party, one by the Indemnifying Party and one by the first two arbitrators) and the
arbitrators thus appointed shall settle the dispute, provided that any other specific dispute resolution procedures expressly specified elsewhere in this Agreement shall govern the matters covered
thereby. If the Indemnified Party and the Indemnifying Party, or any one of them, are unwilling or unable to appoint an arbitrator, or if a duly appointed arbitrator refuses to act or is incapable of
acting and the Indemnified Party and the Indemnifying Party, or any of them, are unwilling or unable to concur in or agree upon the appointment of a new arbitrator to fill the vacancy, or any
appointment is not made within 15 business days after service of a written notice to concur in or agree upon the appointment of an arbitrator or a new arbitrator, as the case may be, application may
be made by either party to a court of competent jurisdiction for the appointment of an arbitrator or a new arbitrator, as the case may be. The arbitration shall be conducted in New York, New York
pursuant to the Commercial Arbitration Rules of the American Arbitration Association of New York. The decision of the arbitrators shall be final, conclusive and binding upon the parties. Any expenses
of such arbitration including, without limitation, the fees of the arbitrators and, if determined appropriate by the arbitrators, the reasonable costs of the non-prevailing party, as the
case may be, shall be paid by either the Indemnifying Party or Indemnified Party as determined appropriate by the arbitrators. 

        11.6    Limitations on Indemnification.    The following limitations shall apply to all claims for indemnification
under this Article 11: 

        11.6(a)    Time Limitation.    No claim or action for indemnification shall be brought under this  Article 11 after the requisite
survival period set forth in Section 11.1. 

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        11.6(b)    Amount Limitation.    Buyer shall not be entitled to indemnification under  Section 11.2 unless the Marcus Entities'
indemnification obligations to Buyer pursuant to such  Section 11.2 exceeds the amount (the "Deductible"), if any, equal to (i) Four Million
Dollars ($4,000,000) less (ii) the aggregate of any Adverse Diligence Discovery Amount actually borne by Buyer (either due to the lack of a Purchase Price adjustment on account of any Adverse
Diligence Discoveries or because Buyer bears the cost of any reasonable cure) pursuant to the provisions of Section 7.9, and then only to the
extent that the aggregate of such indemnification obligations exceed the Deductible. The Marcus Entities' indemnification obligations under  Section 11.2. shall be limited to the amount (the
"Indemnification Cap"), if any, equal to
(a) Forty Million Dollars ($40,000,000) less (b) any Adverse Diligence Discovery Amount actually borne by the Marcus Entities (either due to a Purchase Price adjustment on account of
Adverse Diligence Discoveries except for a purchase price adjustment as a result of a Property becoming an Excluded Property or because the Marcus Entities bear the cost of any reasonable cure)
pursuant to the provisions of Section 7.9 (excluding Excluded Diligence Amounts). Notwithstanding the foregoing, the Marcus Entities shall be
fully liable for, and the Deductible and Indemnification Cap shall not apply to, any claims for indemnification made by Buyer pursuant to this  Article 11 relating to, arising out of or resulting
from (u) breaches of the Excepted Representations and Warranties (even if Buyer knew
or had any reason to know of any misrepresentation or breach of warranty or covenant at the time of Closing, other than knowledge of Adverse Diligence Discoveries for which the Purchase Price was
adjusted); (v) fraud or intentional misrepresentation by the Marcus Entities of any of their representations, warranties or covenants in this Agreement; (w) deliberate or willful breach
by the Marcus Entities of any of their representations, warranties or covenants in this Agreement; (x) the breach of any covenant of the Marcus Entities contained in this Agreement (excluding,
solely for purposes of this provision (x), Articles 4, 8,  9, 15 (other than Sections 15.6 and  15.7), 16, 17 (other
than  Sections 17.2, 17.3, 17.5,
17.7, 17.8, 17.9,  17.13, 17.18 and 17.19) and  Sections 3.1, 3.2, 13.1, and  13.2(b))); (y) any claim by any third party seeking to assert, or claiming ownership or rights to ownership of any of the Purchased Assets; and
(z) any of the Marcus Entities' or Selling Joint Ventures' failure to pay, perform and discharge, when due, any of the Specifically Identified Excluded Liabilities, it being acknowledged and
agreed to that the Excluded Liabilities that are not Specifically Identified Excluded Liabilities shall be subject to the limitations of this  Section 11.6(b). 

        11.6(c)    Insurance and Tax Effect.    The obligation of any Indemnifying Party to indemnify the Indemnified Party
against any claim under this Article 11 shall be reduced by the full amount of any insurance proceeds actually collected or to be collected
pursuant to a valid claim provided that the insurer has acknowledged liability in writing by the Indemnified Party with respect to such claim; provided
that the Indemnified Party shall only be required to use its reasonable efforts to pursue such insurance. In the event that an Indemnified Party receives insurance proceeds with respect to a claim for
which the Indemnified Party has previously received indemnification pursuant to this Article 11, such Indemnified Party shall promptly reimburse
the Indemnifying Party for the amount of such indemnification to the extent of such insurance proceeds. All claims for indemnification hereunder against any Indemnifying Party shall be reduced to take
into account any net cash Tax benefits receivable by the Indemnified Party as a result of such claim or the underlying reasons therefor. 

        11.7    Exclusivity of Indemnification.    Except with respect to breaches of representations, warranties or covenants
in this Agreement involving fraud, intentional misrepresentation or a deliberate or willful breach, indemnification under this Article 11 shall
be the exclusive means of recovery (except with respect to any equitable remedy sought by any party) by either party against the other for any breach or violation, or alleged breach or violation, of
the representations, warranties and covenants under this Agreement after the Closing Date and shall be in lieu of any other common law or statutory rights or remedies. 

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12.   CLOSING  

        The Closing of the transactions contemplated herein shall be conditioned upon (i) the conditions precedent set forth in Articles
8 and 9 being satisfied or waived in writing and (ii) Buyer receiving, on or prior to ten (10) days prior to the
Closing Date, with respect to each of the Properties: (a) title insurance commitments; (b) updated ALTA surveys; (c) Phase I environmental reports and (d) property
condition reports; provided, however, that Closing shall not be delayed beyond the Outside Date as a
result of Buyer's failure to receive any of the items in clauses (ii)(c) and (ii)(d) and failures to receive any of the items in clauses (ii)(a) and (ii)(b) shall have the effect provided elsewhere in
this Agreement. Subject to rescheduling that may be required by the previous sentence, the closing of this transaction (the "Closing") shall take place
at the offices of Foley & Lardner LLP, 777 East Wisconsin Avenue, Milwaukee Wisconsin 53202, at 9:00 a.m. on August 16, 2004 or at such other time and place as the parties hereto
shall agree upon. Such date is referred to in this Agreement as the "Closing Date." A pre-Closing shall be conducted on the day prior to the
Closing Date at which all documents and other items to be delivered at Closing will be inspected and preapproved by all of the parties. The Closing shall be deemed to be effective for all business,
accounting, financial, Tax, legal and other purposes as of 12:01 a.m. on the Closing Date. 

        12.1    Deliveries by the Marcus Entities.    At the Closing, the Marcus Entities shall deliver, or cause to be
delivered, to Buyer the following items in each case duly executed or otherwise in form and substance reasonably satisfactory to Buyer: 

        12.1(a)    Leases.    The leases required by Section 8.5. 

        12.1(b)    Deeds.    Warranty deeds to the Owned Real Property. 

        12.1(c)    Bill of Sale.    One or more mutually agreed upon assignments and bills of sale, duly executed by the
Marcus Entities and the Selling Joint Ventures. 

        12.1(d)    Assignment of Leases.    Subject to Section 1.3, one
or more assignments of leases, duly executed by the Marcus Entities, and, if applicable, the Selling Joint Ventures and, if required, with the consent of the landlords under the leases being assigned
and, with respect to the Real Property Leases, landlord estoppels. 

        12.1(e)    Contracts.    Original, fully executed copies of all Assigned Contracts (or copies if originals are not
available) in the possession of the Marcus Entities or the Selling Joint Ventures will be made available to Buyer. 

        12.1(f)    Licenses and Permits.    Subject to Section 1.3, the
Assigned Licenses and Permits. 

        12.1(g)    Assignment of the Assigned Contracts, Licenses and Permits.    Subject to Sections
1.3, 7.4, 7.8 and 7.11, a
general assignment of the Assigned Contracts, Licenses and Permits and other intangibles executed by the Marcus Entities, and if applicable, the Selling Joint Ventures. 

        12.1(h)    Environmental Disclosure Forms.    Duly executed environmental disclosure forms, as and to the extent
required by applicable Law will be made available to Buyer. 

        12.1(i)    Certificates of Occupancy.    Copies of the final duly issued certificates of occupancy for each Property,
as and to the extent required by applicable Law will be made available to Buyer. 

        12.1(j)    Articles of Formation; Authorizing Resolutions.    Copies of the charter or other organizational documents
of each Marcus Entity and Selling Joint Venture and all amendments thereto, and resolutions adopted by the board of directors, managers or members thereof, as applicable, approving this Agreement and
the transactions contemplated hereby, in each case duly certified by that entity's Secretary. 

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        12.1(k)    Good Standing Certificates.    Certificates from the state of organization of the Marcus Entities
evidencing that such entities are in good standing in that state as of recent dates prior to the Closing. 

        12.1(l)    Incumbency Certificates.    A certificate executed on behalf of each Marcus Entity as to the incumbency,
and authenticating the signatures of, the officers thereof executing this Agreement and the Ancillary Agreements delivered hereunder on behalf of such entity. If any officer of any Selling Joint
Venture is required to execute one or more Ancillary Agreements, then the Marcus Entities shall also submit such a certificate with respect to such officer. 

        12.1(m)    Section 1445(b) Certifications.    Non-foreign person affidavits for the Marcus Entities
and Selling Joint Ventures complying with Section 1445(b) of the Code. 

        12.1(n)    Bring Down Certificate.    Certificates duly executed by officers of the Marcus Entities confirming the
matters set forth in Sections 8.1 and 8.2. 

        12.1(o)    Consents.    All Marcus Material Consents and such other consents as have been received by the Marcus
Entities in fulfilling their obligations under Sections 1.3 and 7.4 hereof. 

        12.1(p)    Transition Services Agreement.    The Transition Services Agreement in substantially the form attached as  Exhibit H
hereto duly executed by Marcus and such Affiliates of Marcus as are necessary to perform the services contemplated thereby. 

        12.1(q)    Trade Right Assignment.    Assignments of all Marcus Trade Rights. 

        12.1(r)    Opinion of Counsel to Marcus and the Marcus Entities.    An opinion of Foley and Lardner LLP substantially
in the form attached hereto as Exhibit C-1. 

        12.1(s)    Administered Fund Documents.    Copies of all financial statements and accountings, including statements of
receipts, income, disbursements and an accounting of the contributions and expenditures as of or within five (5) days prior to the Closing Date of all advertising and marketing funds and other
funds and cooperatives under which Baymont Franchises administers or collects monies on behalf of Franchisees, and fully-executed original copies of all documents necessary to transfer fully Baymont
Franchise's dominion, control and possession of such monies will be made available to Buyer. 

        12.1(t)    Notices.    Notices to lessors under the Personal Property Leases and to the other parties to Assigned
Contracts (and other parties reasonably requested by Buyer) of change in ownership of the Properties, to the extent requested by Buyer will be made available to Buyer. 

        12.1(u)    Transfer Tax Declarations.    Any required real estate transfer Tax declarations or similar documentation
required to evidence the payment of any Tax imposed by any Government Entity, together with any change of ownership statements required under applicable Law. 

        12.1(v)    Closing Statement.    The Preliminary Closing Statement, executed by the Marcus Entities. 

        12.1(w)    Original Documents, Keys, etc.    To the extent not previously delivered to Buyer, all originals (or copies
if originals are not available), of the Real Property Leases, Personal Property Leases, Records and Files, Licenses and Permits, written employment contracts for Affected Employees, keys and lock
combinations (which shall be delivered at each Property) in the Marcus Entities' possession or control will be made available to Buyer. 

        12.1(x)    Title Company Affidavits.    Such instruments, documents, affidavits and certificates as may be reasonably
required by Chicago Title Insurance Company insuring title hereunder as a condition to the issuance of the title insurance policies to Buyer consistent with the terms of this 

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Agreement
including, without limitation, customary affidavits as to parties in possession and mechanics' liens and a so-called "gap indemnity" in customary form. 

        12.1(y)    Estoppels.    Originals of all estoppels required to be delivered to Buyer at or prior to Closing pursuant
to this Agreement or otherwise received by the Marcus Entities. 

        12.1(z)    New Ovations Agreements.    The New Ovations Agreements, executed by the Marcus Entities, if applicable. 

        12.1(aa)    Forms I-9.    Completed Form I-9s and other health and safety files
required by the Occupational Safety and Health Act to be (or reasonably requested to be) delivered to Buyer with respect to the Affected Employees. 

        12.1(bb)    Letters of Credit.    The documents, if any, required by  Section 7.13. 

        12.1(cc)    Other Documents.    All other documents, instruments or writings required to be delivered or made
available to Buyer at or prior to the Closing pursuant to this Agreement and such other certificates of
authority and documents as Buyer may reasonably request sufficiently in advance of Closing or which are reasonably required to effectuate the transactions described herein. 

        12.2    Deliveries by Buyer.    At the Closing, Buyer shall deliver to the Marcus Entities the following items, in
each case duly executed or otherwise in form and substance reasonably satisfactory to the Marcus Entities: 

        12.2(a)    Purchase Price.    The Closing Date Cash Amount as required by  Section 3.2(c) hereof. 

        12.2(b)    Earnest Money Escrow Instructions.    The written instructions required to have the Earnest Money Deposit
wired to the Marcus Entities on the Closing Date. 

        12.2(c)    Assumption of Liabilities.    An assumption of the Assumed Liabilities (which will exclude any Liabilities
under any Assigned Contract, Assigned Permit or License for which consent is required but which has not been obtained prior to the Closing), duly executed by Buyer. 

        12.2(d)    Incumbency Certificate.    A certificate executed on behalf of Buyer as to the incumbency, and
authenticating the signatures of, the officers executing this Agreement and the Ancillary Agreements delivered hereunder on behalf of Buyer. 

        12.2(e)    Authorizing Resolutions.    Resolutions adopted by the board of directors of Buyer approving this Agreement
and the transactions contemplated hereby, duly certified by Buyer's Secretary. 

        12.2(f)    Bring Down Certificate.    A certificate duly executed by an officer of Buyer confirming the matters set
forth in Sections 9.1 and 9.2. 

        12.2(g)    Leases.    The leases required by Section 8.5. 

        12.2(h)    Closing Statement.    The Preliminary Closing Statement, executed by Buyer. 

        12.2(i)    Opinion of Counsel to Buyer.    An opinion of Goodwin Procter LLP substantially in the form attached hereto
as Exhibit C-2. 

        12.2(j)    New Ovations Agreements.    The New Ovations Agreements, executed by Buyer, if applicable. 

        12.2(k)    Other Documents.    All other documents, instruments or writings required to be delivered to the Marcus
Entities at or prior to the Closing pursuant to this Agreement and such 

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other
certificates of authority and documents as the Marcus Entities may reasonably request or which are reasonably required to effectuate the transactions described herein. 

        12.3    Adjustments and Prorations.    The following matters and items shall be apportioned between the Marcus
Entities and Buyer or, where appropriate, credited in total to a particular party, as of 11:59 p.m. (Milwaukee time) on the date prior to the Closing Date (the
"Cut-off Time") as provided below: 

        12.3(a)    Prorated Items.    

        12.3(a)(i)    Room Revenues.    At the Closing, the Marcus Entities shall receive (i) all charges accrued to
the open accounts of any guests or customers staying at the Properties as of the Cut-off Time for all room nights up to (but not including) the night during which the Cut-off
Time occurs and (ii) fifty percent (50%) of all charges for the room night which includes the Cut-off Time, in each case less amounts payable on account of third party collection
costs (e.g. fees retained by credit card companies, banks or other collection companies, travel agent commissions and other third party commissions), and Buyer shall be entitled to retain all deposits
made and amounts collected with respect to such charges. Revenue from the Properties attributable to food and beverage (including alcoholic beverages) and other sales or services through the close of
business on the night immediately preceding the Closing Date shall belong to the Marcus Entities (such revenue to be determined based on completion of the night auditor's run on the night of the
Cut-Off Time). Thereafter, revenue from the Properties attributable to food and beverage and other sales or services shall belong to Buyer. Each of Buyer and the Marcus Entities shall be
responsible for the payment of any sales and/or Properties/motel occupancy taxes collected or otherwise due and payable in connection with the revenue allocated to such party under this  Section 12.3 and shall indemnify, defend and hold the other party harmless from and against any and all Losses suffered or incurred as a result
of the failure to pay such taxes. 

        12.3(a)(ii)    Taxes and Assessments.    All ad valorem taxes, special or general assessments, property Taxes, water
and sewer rents, rates and charges, vault charges, canopy permit fees, and similar fees shall be prorated as of the Cut-off Time; provided,  however, that
if any taxes or assessments assessed for the period prior to the Closing are paid by the Marcus Entities in installments, then the Marcus
Entities shall pay on or before Closing Date any remaining installments thereof. If the amount
of any such item is not ascertainable on the Closing Date, the adjustment therefor shall be based on the most recent available bill and shall be reprorated upon receipt of the actual bill. 

        12.3(a)(iii)    Utility Contracts.    Telephone, steam (and other Assigned Contracts for the supply of heat), electric
power, gas, lighting, internet access, satellite service, cable television and other utility services shall be prorated as of the Cut-off Time, with the Marcus Entities receiving a credit
for each deposit, if any, made by the Marcus Entities as security for any such utility service or supply if the same is transferable and provided such deposit remains on account for the benefit of
Buyer. Where possible, readings as of the Cut-off Time (or as close thereto as practicable) will be secured for all utilities on the Closing Date. 

        12.3(a)(iv)    Assigned Contracts.    Subject to Section 14.11
with respect to accounts payable, any amounts prepaid, payable or accrued under any Assigned Contracts shall be prorated as of the Cut-off Time. 

        12.3(a)(v)    Licenses and Permits Fees.    Fees paid or payable for Licenses and Permits (other than Licenses and
Permits that are not transferable to Buyer under applicable Laws or otherwise not transferred to Buyer pursuant to the provisions of this agreement) shall be prorated as of the Cut-off
Time. 

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        12.3(a)(vi)    Bookings Deposits and Miscellaneous Properties Matters.    Buyer shall receive a credit for:
(i) advance payments or deposits, if any, made pursuant to any Bookings, (ii) all commissions due to credit and referral organizations accrued prior to the Closing Date and
(iii) all outstanding gift certificates, coupons issued for any use of any facilities at the Properties including, without limitation, rooms and food and beverage, and any commitments made for
the free use of any facilities at the Properties. The Marcus Entities shall receive a credit for coin machine, telephone, washroom, and checkroom revenues relating to the period
pre-Closing. 

        12.3(a)(vii)    Franchise Funds and Cooperatives.    Buyer shall receive a credit for the cash balances under any
advertising and marketing funds and other funds and cooperatives. 

        12.3(a)(viii)    Other.    Such other items as are expressly provided to be prorated or otherwise adjusted or credited
for in this Agreement shall be so prorated, adjusted or credited. 

        Notwithstanding
any provision of this Article 12, the obligations arising under the Ovations or similar guest rewards program shall
not be pro rated. 

        12.3(b)    Payment.    Any net credit due to the Marcus Entities as a result of the adjustments and prorations under  Section 12.3(a) to the extent then determinable shall be paid to the Marcus Entities in cash at the time of Closing. Any net credit due to Buyer
as a result of the adjustments and prorations under this Section 12.3(b) to the extent then determinable shall be credited against the Purchase
Price at the time of Closing. 

        12.3(c)    Closing Statement Preparation.    Each party shall cause its designated representatives to enter the
Properties only at reasonable times and without unreasonably interfering with operations, both before and after the Closing Date, for the purpose of making such inventories, examinations, and audits
of the Properties, and of the Books and Records, as they deem necessary to make the adjustments and prorations required under Section 12.3(a), or
for any other purposes anticipated by this Agreement. Based upon such inventories, examinations, and audits, two (2) business days prior to the Closing, the representatives of the parties shall
jointly prepare a preliminary closing statement (the "Preliminary Closing Statement") which shall show the net amount due either to the Marcus Entities
or Buyer as a result thereof, and such net amount will be added to, or subtracted from the payment of the Purchase Price. Within sixty (60) days following the Closing Date, the Marcus Entities
and Buyer shall agree on a final closing statement (the "Final Closing Statement") setting forth the final determination of all items to be included on
the Closing Statement. The net amount due the Marcus Entities or Buyer, if any, by reason of adjustments to the Preliminary Closing Statement as shown in the Final Closing Statement, shall be paid in
cash by the party obligated therefor within ten (10) days following the date of the Final Closing Statement. 

        12.3(d)    Prorations Disputes.    In the event the representatives of the parties are unable to reach agreement with
respect to preparation of the Preliminary Closing Statement then, except as hereinafter provided, the disputed amount shall be held in a joint order Escrow, pending agreement of the parties or a
determination pursuant to this Section 12.3(d), and the Closing shall occur as scheduled. Buyer shall be required to deposit in the Escrow any
additional sum of the disputed amount which it may be required to pay and the Marcus Entities shall be required to deposit in the Escrow any sum of the disputed amount which it may be required to
credit or pay to Buyer. In the event the representatives of the parties are unable to reach agreement with respect to either the Preliminary Closing Statement or the Final Closing Statement, the
parties shall submit their dispute to the Neutral Auditor. 

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13.   TERMINATION  

        13.1    Right of Termination Without Breach.    This Agreement may be terminated without further liability of any
party at any time prior to the Closing by a mutual written agreement of Buyer and the Marcus Entities that determines who shall be entitled to receive and retain the Earnest Money Deposit. 

        13.2    Other Terminations.    

        13.2(a)    Termination by Buyer.    If (i) there has been a material violation or material breach by the Marcus
Entities of any of the agreements, representations or warranties contained in this Agreement (which has not been waived subsequently in writing by Buyer) after written notice thereof has been provided
to the Marcus Entities and such violation or breach has not been cured within a 15-day period (beginning on the date that such notice is received and unless Buyer has materially breached
any of the representations, warranties or covenants set forth in this Agreement or such material violation or material breach by the Marcus Entities is caused by a breach of this Agreement by Buyer),
(ii) the Closing has not occurred by the Outside Date because there has been a failure of satisfaction of a condition to the obligations of Buyer (which has not been waived in writing by Buyer)
after written notice thereof has been provided to the Marcus Entities, and the Marcus Entities have failed to reasonably cure such failure of satisfaction of such condition within a 15-day
period (beginning on the date that such notice is received and unless Buyer has materially breached any of the representations, warranties or covenants set forth in this Agreement or such failure of
satisfaction of such condition is caused by a breach of this Agreement by Buyer), or (iii) an Adverse Diligence Discovery termination decision is made by Buyer under and in accordance with  Section 7.9, then Buyer may, by written notice to the Marcus Entities at any time prior to the Closing that such violation, breach or failure is
continuing, terminate this Agreement with the effect set forth in Section 13.2(c) hereof. 

        13.2(b)    Termination by the Marcus Entities.    If (i) there has been a material violation or material breach
by Buyer of any of the agreements, representations or warranties contained in this Agreement (which has not been waived subsequently in writing by the Marcus Entities), after written notice thereof
has been provided to Buyer such violation or breach has not been cured within a 15-day period (beginning on the date that such notice is received and unless the Marcus Entities have
materially breached any of the representations, warranties or covenants set forth in this Agreement or such material violation or material breach by Buyer is caused by a breach of this Agreement by
the Marcus Entities), (ii) the Closing has not occurred by the Outside Date because there has been a failure of satisfaction of a condition to the obligations of the Marcus Entities (which has
not been waived in writing by the Marcus Entities) after written notice thereof has been provided to Buyer, and Buyer has failed to reasonably cure such failure of satisfaction of such condition
within a 15-day period (beginning on the date that such notice is received and unless the Marcus Entities have materially breached any of the representations, warranties or covenants set
forth in this Agreement or such failure of satisfaction of such condition is caused by a breach of this Agreement by the Marcus Entities), or (iii) an Adverse Diligence Discovery termination
decision is made by Marcus Entities under and in accordance with Section 7.9(g), then the Marcus Entities may, by written notice to Buyer at any
time prior to the Closing that such violation, breach or failure attempt is continuing, terminate this Agreement with the effect set forth in  Section 13.2(c) hereof. 

        13.2(c)    Effect of Termination.    If this Agreement is terminated pursuant to  Section 13.2(a) or Section 13.2(b)(iii), then the Escrow Company shall return the Earnest
Money Deposit to Buyer by wire transfer of immediately available funds to an account designated by Buyer in writing in advance. If this Agreement is terminated by the Marcus Entities pursuant to  Section 13.2(b)(i)
 or Section 13.2(b)(ii) (excluding a termination as a result of the
expiration or termination of all applicable waiting periods under the HSR Act, then the Escrow Company shall deliver the Earnest 

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Money
Deposit to Baymont by wire transfer of immediately available funds to an account designated by Baymont in writing in advance. Termination of this Agreement pursuant to this  Article 13 shall not in
any way terminate, limit or restrict the rights and remedies of any party hereto against any other party which has
violated, breached or failed to satisfy any of the representations, warranties, covenants, agreements, conditions or other provisions of this Agreement prior to termination hereof. In addition to the
right of any party under common law to redress for any such breach or violation, each party whose breach or violation has occurred prior to termination shall jointly and severally indemnify each other
party for whose benefit such representation, warranty, covenant, agreement or other provision was made ("Indemnified Party") from and against all
losses, damages (including, without limitation, consequential damages), costs and expenses (including, without limitation, interest (including prejudgment interest in any litigated matter), penalties,
court costs, and attorneys fees and expenses) asserted against, resulting to, imposed upon, or incurred by the indemnified party, directly or indirectly, by reason of, arising out of or resulting from
such breach or violation. Upon a termination of this Agreement, (i) Buyer shall return or destroy all confidential information pertaining to the Marcus Mid-Priced Lodging Businesses
in its possession, (ii) the confidentiality agreement previously executed between Buyer and Marcus shall remain in full force and effect and (iii) the Marcus Entities shall promptly
return all software, hardware and other assets used to develop or modify the interfaces or other systems described in Section 7.12 to Buyer at no
cost to the Marcus Entities and Buyer shall be responsible for the reasonable costs to perform any material repair or replacement required as a result of any material damage as a result of the removal
of such software, hardware and other assets. Subject to the foregoing, the parties' obligations under Section 17.7 shall survive termination. 

        13.2(d)    Treatment of Earnest Money Deposit.    Notwithstanding anything to the contrary in this Agreement, the
Earnest Money Deposit shall not be deemed to be in the nature of liquidated damages nor shall it be deemed to be an admission by either party as to the level of damages in the event of a breach or
violation of this Agreement and receipt and retention of the Earnest Money Deposit by either party shall not in any way terminate, limit or restrict its rights and remedies against the other Party. 

14.   POST-CLOSING COVENANTS  

        14.1    Confidential Information.    Except as required by Law or Order or otherwise expressly permitted by this
Agreement, the Marcus Entities and their Affiliates shall not, except as requested by Buyer, use for
any commercial purpose, disclose to any person, or keep or make copies of documents, tapes, discs, programs or other information storage media containing, any confidential information concerning the
Marcus Mid-Priced Lodging Businesses, the Purchased Assets, or the Assumed Liabilities, all such information being deemed to be transferred to Buyer hereunder. For purposes hereof,
"confidential information" shall mean and include, without limitation, all Trade Rights in which the Marcus Entities and their Affiliates have an interest, all Marcus Mid-Priced Lodging
Businesses' customer and vendor lists and related information, all information concerning the Marcus Mid-Priced Lodging Businesses' costs, prices, sales, marketing and distribution
methods, properties and assets, liabilities, finances, all privileged communications and work product, and any other information related to the Marcus Mid-Priced Lodging Businesses not
disclosed to the public directly by the Marcus Entities prior to the date hereof. The foregoing provisions shall not apply to any information which is an Excluded Asset or which relates solely to one
or more Excluded Assets, and except as may further be necessary for the Marcus Entities or any of their Affiliates to pay or satisfy its Liabilities, prepare documents to be filed with the SEC, Tax
Returns and other reports, and to otherwise wind up and conclude their business and affairs. 

        14.2    Use of Baymont and Woodfield Names.    Except as allowed by agreements between the Marcus Entities and Buyer
entered into at or after Closing (particularly with respect to Excluded 

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Properties)
as promptly as practicable following the Closing, the Marcus Entities shall take all necessary action to amend, and shall cause their Affiliates (including Marcus and taking reasonable
efforts to cause the remaining Joint Ventures to do the same) to so take and amend, their names to names that do not include either "Baymont," "Woodfield," "Budgetel" or "Ovations" or any other name
similar thereto. Following the Closing, none of Marcus, the Marcus Entities or any of their Affiliates shall, without the prior written consent of Buyer, make any commercial use of either "Baymont,"
"Woodfield," or "Budgetel" or "Ovations" or any other trademark, service mark, trade dress, trade name or logo used in the Marcus Mid-Priced Lodging Businesses, or any other name
confusingly similar thereto, except as may be necessary for the Marcus Entities or any of their Affiliates to pay or satisfy its Liabilities, prepare documents to be filed with the SEC, Tax Returns
and other reports, and to otherwise wind up and conclude their business and affairs. 

        14.3    Bulk Sales Compliance.    Buyer hereby waives compliance by the Marcus Entities from their obligations to
comply with all provisions of the bulk sales or bulk transfer statutes of Wisconsin and all other applicable states and indemnifies and holds harmless the Marcus Entities against any Liabilities which
may arise from such noncompliance. 

        14.4    Records and Retention and Access.    

        14.4(a)    Buyer Records.    Buyer shall keep and preserve in an organized and retrievable manner the Records and
Files it receives from the Marcus Entities for at least seven years from the Closing Date. Buyer shall neither dispose of nor destroy such Records and Files without first offering to turn over
possession thereof to the Marcus Entities by written notice at least thirty (30) days prior to the
proposed date of such disposition or destruction. While such Records and Files remain in existence, each party shall allow the other party, its representatives, attorneys and accountants, at the
requesting party's expense, access to the Records and Files upon reasonable request and advance notice and during normal business hours for the purpose of interviewing, examining and copying in
connection with such parties' preparation of financial statements and Tax Returns. 

        14.4(b)    Seller Records.    The Marcus Entities shall keep and preserve, and shall cause their Affiliates to keep
and preserve, in an organized and retrievable manner the records and files related to the Marcus Mid-Priced Lodging Businesses that it does not deliver to Buyer hereby for at least seven
years from the Closing Date. The Marcus Entities shall neither dispose of nor destroy, and shall cause their Affiliates to neither dispose of nor destroy, such records and files without first offering
to turn over possession thereof to the Buyer by written notice at least thirty (30) days prior to the proposed date of such disposition or destruction. While such Records and Files remain in
existence, each party shall allow the other party, its representatives, attorneys and accountants, at the requesting party's expense, access to the Records and Files upon reasonable request and
advance notice and during normal business hours for the purpose of interviewing, examining and copying in connection with such parties' preparation of financial statements and Tax Returns. Until the
fifth anniversary of the Closing Date, Buyer shall have reasonable access to the returns and records referred to in Section 1.2(h) hereof and may
make excerpts therefrom and copies thereof. 

        14.5    Insurance.    

        14.5(a)    Assignment of Insurance.    The Marcus Entities shall use, and shall cause their Affiliates (including
reasonable efforts to cause the Selling Joint Ventures) to use, reasonable efforts to assign to Buyer, to the fullest extent, all of the benefits and rights under any insurance policies held by them
and/or any of their Affiliates and the Selling Joint Ventures with respect to any Liabilities arising out of, related to or in connection with the Purchased Assets, the Assumed Liabilities and for the
Marcus Mid-Priced Lodging Businesses (other than benefits and rights to the extent related to Excluded Assets or Excluded Liabilities) with respect to events occurring 

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prior
to the Closing Date. Buyer shall have the right to such benefits and rights only to the extent actually paid or payable, and exclusive of any deductibles (including pass through deductibles for
which either party or any Affiliate of such party is required to reimburse the insurer). To the extent such assignment is not permitted, the Marcus Entities shall use, and shall cause their Affiliates
to use, reasonable efforts on Buyer's behalf to obtain such proceeds or benefits for Buyer, or otherwise to provide Buyer with the benefit equivalent to that which would have been available had such
assignment been permitted. 

        14.5(b)    Cooperation Regarding Insurance.    The Marcus Entities shall cooperate, and shall cause their Affiliates
(including reasonable efforts by the Selling Joint Ventures) to cooperate, with Buyer in obtaining insurance policies for the Marcus Mid-Priced Lodging Businesses to be in effect from and
after Closing. Notwithstanding such assistance, all decisions with respect to such
policies shall be made solely by Buyer, and neither the Marcus Entities nor such Affiliate (including the Selling Joint Ventures) thereof, shall have any liability, whether to Buyer or to any other
Person, whether as an advisor, broker or otherwise, under any other theory, in connection with providing such assistance and cooperation. The Marcus Entities make no assurances whatsoever with respect
to such insurance coverage, including the availability or price thereof. 

        14.6    Financial Information.    

        14.6(a)    If
Buyer or an Affiliate of Buyer is required under applicable Law to file the Historical Financial Information with the SEC and Buyer requests, in writing, that the
Marcus Entities cooperate in the preparation of such Historical Financial Information (as and to the extent provided in this Section 14.16), then
the Marcus Entities shall use its reasonable efforts to, subject to Section 14.6(b), prepare and deliver, or cause to be prepared and delivered,
to Buyer the Historical Financial Information (including audited and, if applicable, unaudited financial information), including a manually signed accountants' report from Ernst & Young (the
"Audit Accountants"), of and relating to the Marcus Mid-Priced Lodging Businesses. The Historical Financial Information delivered will be
prepared based on the books and records of the Marcus Entities and will be prepared in accordance with Marcus GAAP and will present fairly the financial condition and results of operations of the
Marcus Mid-Priced Lodging Businesses as of the dates and for the periods indicated. The consent of the Audit Accountants to the filing of their report on the Historical Financial
Information shall be accompanied by the consent of the Audit Accountants to the filing of their report on the Historical Financial Information in a Current Report on Form 8-K and
the incorporation by reference of such report to filings made under the Securities Act of 1933, as amended. 

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        14.6(b)    If
Buyer or an Affiliate of Buyer is required under applicable Law to file the Historical Financial Information with the SEC, the Marcus Entities will assist Buyer
in the preparation of the pro forma financial information relating to the acquisition of the Marcus Mid-Priced Lodging Businesses required pursuant to Item 7 of the Current Report on
Form 8-K as contemplated by the Exchange Act and the rules and regulations promulgated thereunder (the "Pro Forma Information" and,
together with the Historical Financial Information, the "Required Information"), including without limitation providing such financial and other
information, records and documents relating to the Marcus Mid-Priced Lodging Businesses as may be necessary to prepare such Pro Forma Information, providing reasonable access to such of
its entities personnel, advisors and accountants as may be necessary to prepare such Pro Forma Information, and generally cooperating with Buyer's reasonable requests in order to facilitate such
preparation. The parties acknowledge that the foregoing financial information must be filed by the Buyer with the SEC under cover of an amendment to a Current Report on Form 8-K in
a timely manner. The parties also acknowledge that any Buyer filings under the Securities Act that require the Required Information also necessitate timely cooperation, including cooperation in the
performance of incremental audit procedures necessary under the Securities Act and the delivery of a manually signed consent of the Audit Accountants, by Marcus Entities to facilitate the execution
and filing of an accountant's consent. Notwithstanding the foregoing, the parties acknowledge that, due to Buyer's uncertainty regarding whether the foregoing financial information must be filed with
the SEC, the Marcus Entities can make no assurance that the Required Information can be prepared and delivered on or before the date that the Required Information must be filed by the Buyer with the
SEC under cover of an amendment to a Current Report on Form 8-K. Accordingly, the Marcus Entities shall have no Liability whatsoever if the Required Information is not prepared and
delivered prior to the date that such amendment to a Current Report on Form 8-K must be filed, provided that the Marcus Entities have complied with their obligations to cooperate
and use the efforts required under this Section 14.6. 

        14.6(c)    Buyer
shall reimburse all of the Marcus Entities' and the Selling Joint Ventures' reasonable costs associated with this  Section 14.6, including out-of-pocket costs associated with the services provided
by the Audit Accountants. 

        14.7    Tax Matters.    

        14.7(a)    The
Marcus Entities and the Selling Joint Ventures will be responsible for the preparation and filing of all Tax Returns for the Marcus Entities and Selling Joint
Ventures, as applicable, for all periods, whether or not ending on or prior to the Closing Date (including the consolidated, unitary, and combined tax returns for the Seller which include the
operations of the Marcus Mid-Priced Lodging Businesses for any period ending on or before the Closing Date). With respect to the Purchased Assets, the Marcus Entities shall also be
responsible for the preparation and filing of all property Tax Returns related to periods ending on or prior to the Closing Date,
regardless of when due. The Marcus Entities shall be responsible for the conduct and settlement of any claims or refunds for any Taxes corresponding to any Tax Return described in this  Section 14.7(a). The Marcus Entities and the Selling Joint Ventures will make all payments when due as required with respect to any such Tax
Return. 

        14.7(b)    With
respect to the Purchased Assets, the Buyer will be responsible for the preparation and filing of all property Tax Returns related to periods ending after the
Closing Date. The Buyer shall be responsible for the conduct and settlement of any claims or refunds for any Taxes corresponding to any Tax Return described in this  Section 14.7(b). The Buyer will
make all payments when due as required with respect to any such Tax Return. 

        14.7(c)    Each
party agrees from time to time following the Closing to cooperate with the other parties in connection with, and agrees to provide reasonable access in a timely
manner to the 

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accounting
and Tax related books and records of and related to the Marcus Mid-Priced Lodging Businesses, in a manner sufficient to enable such other parties to complete their respective
Tax Returns, accounting and regulatory filings, and any contest, audit or other dispute related to such Tax Returns or filings. 

        14.8    Post-Closing Accounts Payable Matters.    The parties shall cooperate in evaluating customary
trade and similar payables relating to or arising from activities before and after the Closing to determine for whose account invoices, bills and other demands for payment should be designated. Such
cooperation shall include determining if any such invoice, bill or demand represents an Assumed Liability, an Excluded Liability or a Specifically Identified Excluded Liability. This covenant shall
not expand or diminish the respective Assumed Liabilities, Excluded Liabilities and Specifically Identified Excluded Liabilities. To the extent Buyer receives invoices relating to Specifically
Identified Excluded Liabilities and pays a Marcus Entity's or a Joint Venture's obligations thereunder, the Buyer shall present evidence of such payment to the Marcus Entities and the Marcus Entities
shall reimburse the Buyer within ten (10) business days thereafter. To the extent a Marcus Entity or a Joint Venture receives invoices related to an Assumed Liability and pays the Buyer's
obligations thereunder, the Marcus Entities shall present evidence of such payment to the Buyer and the Buyer shall reimburse the Marcus Entities within ten (10) business days thereafter.
Notwithstanding the foregoing, to the extent any such bill, invoice or other demand for payment has been addressed through the proration provisions of this Agreement, such provision shall be given
effect to when satisfying the obligations under this Section 14.8. 

        14.9    Post-Closing Accounts Receivable Matters.    The parties shall cooperate in evaluating customary
Accounts Receivable relating to or arising from activities before and after the Closing to determine for whose account payments received therein should be designated. To the extent Buyer receives
payment for Accounts Receivable arising prior to the Closing, the Buyer shall reimburse the Marcus Entities within ten (10) business days thereafter. To the extent a Marcus Entity or a Selling
Joint Venture receives payments relating to or arising from activities after the Closing the Marcus Entities shall reimburse the Buyer within ten (10) business days thereafter. 

        14.10    Guest Baggage.    All baggage of guests who are still in the Properties on the Closing Date, which has been
checked with or left in the care of the Marcus Entities shall be inventoried, sealed, and tagged jointly by the Marcus Entities and Buyer on the Closing Date. Buyer hereby indemnifies the Marcus
Entities against any Losses in connection with such baggage arising out of the acts of omissions of Buyer or its Affiliates (or any of their employees or agents) after the Closing Date. The Marcus
Entities hereby indemnify Buyer and its Indemnified Parties against any Liabilities in connection with baggage arising out of the acts or omissions of the Marcus Entities or its Affiliates (or any of
their employees or agents) prior to the Closing Date. The provisions of this Section 14.10 shall survive Closing. 

        14.11    Safe Deposits.    Immediately after the Closing, the Marcus Entities shall send written notice to guests or
tenants or other persons who have safe deposit boxes, if any, advising of the sale of the Property to Buyer and requesting immediate removal of the contents thereof or the removal thereof and
concurrent re-deposit of such contents pursuant to new safe deposit agreements with Buyer. The Marcus Entities shall have a representative present when the boxes are opened, in the
presence of a representative of the Buyer. Any property contained in the safe deposit boxes after such re-deposit shall be the responsibility of Buyer, and Buyer agrees to indemnify and
hold harmless the Marcus Entities and its Indemnified Parties from and against any Liabilities arising out of or with respect to such property. Upon Closing, the Marcus Entities shall deliver to Buyer
all keys in the possession or control of the Marcus Entities for all safe deposit boxes not then in use and a list of all safe deposit boxes which are then in use but where the contents have not been
removed and re-deposited as set forth above, including the name and room number of such depositor. The Marcus Entities and Buyer shall continue to use reasonable efforts to cause such
depositors to remove the contents and re-deposit 

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such
contents pursuant to new safe deposit agreements with Buyer as set forth above. The Marcus Entities shall continue to be responsible for, and shall indemnify and hold harmless Buyer and its
Indemnified Parties from and against any Liabilities arising out of or with respect to the contents of any safe deposit box prior to the time that the contents thereof are removed and
re-deposited pursuant to a new safe deposit agreement with Buyer as set forth above. 

        14.12    Nonsolicitation; Cooperation.    

        14.12(a)    Definitions.    

        14.12(a)(i)    "Competing Activities" shall mean the ownership, operation, marketing, franchising or sales of Competing Hotels. 

        14.12(a)(ii)    "Competing Hotels" shall mean hotel or other lodging properties operating in the mid-priced lodging
without food and beverage, economy or budget sector (as defined by Smith Travel Research) anywhere in the United States (including the District of Columbia). 

        14.12(b)    Non-Solicitation.    

        14.12(b)(i)    By Buyer.    Buyer agrees that, for a period commencing on the Closing Date and ending on the second
(2nd) anniversary of the Closing Date, it will not, and it will cause each of its subsidiaries and its and their respective Affiliates which are entities not to solicit for employment any of the
employees of the Marcus Entities or any of their Affiliates (other than Affected Employees) without the prior written consent of the Marcus Entities, which the Marcus Entities may grant or withhold in
their discretion; provided, however, that the foregoing shall not apply to (i) any employee who
has been separated from employment with the Marcus Entities and their Affiliates for at least 180 days; (ii) non-salaried and clerical employees; and (iii) employees
who respond to solicitations made to the public generally. 

        14.12(b)(ii)    By the Marcus Entities.    Each of the Marcus Entities agrees that, for a period commencing on the
Closing Date and ending on the second (2nd) anniversary of the Closing Date, it will not, and it will cause each of its subsidiaries and its and their respective Affiliates which are entities not to
(a) solicit for employment any employees of Buyer or any of its Affiliates, including without limitation any Affected Employee, without the prior written consent of Buyer, which Buyer may grant
or withhold in its discretion; provided, however, that the foregoing shall not apply to (i) any
Affected Employee who has been separated from employment with Buyer for at least 180 days; (ii) non-salaried and clerical employees; and (iii) Affected Employees who
respond to solicitations made to the public generally, or (b) solicit any Franchisee with respect to its franchised Baymont Inn or any Competing Activities to become a franchisee of the Marcus
Entities or any of their respective Affiliates. 

        14.12(c)    Cooperation by the Marcus Entities.    Each of the Marcus Entities agrees that, for a period commencing on
the Closing Date and ending on the third (3rd) anniversary of the Closing Date (the "Cooperative Period"): 

        14.12(c)(i)    it
will not, and it will cause each of its Affiliates which are entities not to, without the advance written consent of Buyer, which Buyer may grant or withhold
in its discretion, either directly or indirectly (i) initiate or create a new brand of Competing Hotels; or (ii) purchase any entity or asset or merge with or otherwise enter into a
business combination with any entity, all of the business of which consists of Competing Activities. 

        14.12(c)(ii)    if
it or any of its Affiliates which are entities (the "Marcus Acquiror") acquires, merges with or otherwise
participates in a business combination with any entity 

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(a
"Target") and more than 5% of the combined annual consolidated revenues of both Target and Marcus are derived from Competing Activities, then: 

        14.12(c)(ii)(A)    the
Marcus Acquiror may, but need not, invite Buyer to purchase the Target's assets and operations constituting the Target's Competing Activities
("Target's Competing Activities") for a mutually agreed upon cash purchase price and otherwise on substantially the same terms and conditions as the
Marcus Acquiror acquired the Target's other assets and operations. 

        14.12(c)(ii)(B)    the
Marcus Acquiror shall take reasonable efforts to, within twelve (12) months of acquiring such Target, sell the Target's Competing Activities.
Prior to sending any confidential information regarding the Target's Competing Activities to any third parties in an effort to solicit a purchase bid therefor, the Marcus Acquiror shall provide to
Buyer a notice (a "Bid Notice") that the Marcus Acquiror intends to begin attempting to sell the Target's Competing Activities. Buyer shall then have
thirty (30) days after receipt of a Bid Notice to submit a purchase bid for the Target's Competing Activities, including the cash purchase price and other material terms and conditions. If
Buyer submits a purchase bid in response to a Bid Notice, then the Marcus Acquiror shall negotiate exclusively with Buyer for the sale of the Target's Competing Activities for a period of thirty
(30) days following receipt of Buyer's purchase bid. The Marcus Acquiror shall not be obligated to accept any purchase bid submitted by Buyer. If Buyer fails to submit a purchase bid responding
to a Bid Notice within thirty (30) days or otherwise decides not to submit a purchase bid or the Marcus Acquiror determines not to accept any such purchase bid submitted by Buyer after receipt
of a Bid Notice, then the Marcus Acquiror shall have the right to sell the Target's Competing Activities to any third parties on any terms and conditions it so determines. 

        14.12(d)    Non-Contravention.    Each of the Marcus Entities and Buyer agrees that, during the
Cooperative Period, it will not, and it will cause each of its subsidiaries and its respective Affiliates which are entities not to, engage in any practice the purpose of which is to evade the
provisions of this Article 14. 

        14.12(e)    Geographic Area.    The parties hereto agree that the duration and area for which the covenants set forth
in this Section 14.12 are to be effective are reasonable. In the event that any court determines that the time period or the area included in the
covenant contained in Section 14.9, or both of them, are unreasonable and that such covenant is to that extent unenforceable, the parties hereto
agree that such covenant shall remain in full force and effect for the greatest time period and in the greatest area that would not render it unenforceable. The parties hereto intend that each
covenant set forth herein shall be deemed to be a series of separate covenants, one for each and every state and other political subdivision to which it is applicable. 

        14.12(f)    Material Inducement.    It is understood and agreed that the covenants of the parties contained in  Section 14.12 are
material inducements to the willingness of the other party to enter into this Agreement and to consummate the transactions
contemplated hereunder. 

        14.12(g)    Termination.    This Section 14.12 shall terminate
upon a sale or merger of Marcus or Buyer, as the case may be, or a sale or transfer of all or substantially all of its consolidated assets, in each case, to an entity that is not Affiliate thereof. 

        14.13    Division of Subdivision Properties.    The Marcus Entities shall undertake reasonable efforts to pursue
completion of the land division of the Subdivision Properties pursuant to the provisions of Section 7.14 hereof. 

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        14.14    Section 1031 Exchanges.    Buyer acknowledges that the Marcus Entities may desire to transfer any or
all of the Properties in a transaction intending to qualify in whole or in part for nonrecognition of gain pursuant to Section 1031 of the Code. If the Marcus Entities so desire, they shall
provide Buyer with a written statement, at least five (5) days prior to Closing, stating the Marcus Entities' intent to qualify the transfer of the Properties specified in such statement as a
tax-deferred exchange under Section 1031 of the Code. Buyer agrees that at the request of the Marcus Entities, and subject to the terms of this Agreement, at the Closing Date Buyer
shall pay the portion of the Purchase Price allocable to the Properties specified in the written statement to any single "qualified intermediary" (as defined in Treasury Regulation
Section 1.1031(k)-1(g)(4)) designated by the Marcus Entities in lieu of and in complete satisfaction of the portion of the Purchase Price allocable to the Properties specified in
the written notice otherwise payable to the Marcus Entities. Buyer shall in good faith cooperate with the Marcus Entities by executing such documents, instruments, deeds or escrow instructions
reasonably requested by the Marcus Entities in furtherance of their intended treatment of any such transfers as subject to Section 1031 of the Code. Notwithstanding anything else in this  Section 14.14, nothing in this Section 14.14 shall: (A) permit the Marcus Entities
to delay the transfer of the Properties to the Buyer as required by this Agreement, (B) require Buyer to purchase any asset to be used in the 1031 exchange (or otherwise not specifically
required by this Agreement), or (C) require Buyer to make any payment of any portion of the Purchase Price to any person other than the Marcus Entities, the Escrow Company, or the Marcus
Entities' designated qualified intermediary. If Buyer's reasonable out-of-pocket costs associated with this Section 14.14
exceed $50,000, then the Marcus Entities shall, promptly after receiving written documentation with respect to all such expenses, reimburse Buyer for such excess. Except for such
out-of-pocket costs not exceeding $50,000, the Marcus Entities shall indemnify and hold harmless Buyer for any cost, claim or liability incurred by or claimed by any person
against Buyer or its Affiliates in connection with this Section 14.14. 

        14.15    Further Assurances.    The Marcus Entities from time to time after the Closing through the third anniversary
of the Closing Date at the request of Buyer shall, and shall use reasonable efforts to cause
the Selling Joint Ventures to, (a) execute and deliver further instruments of transfer and assignment (in addition to those specified in this Agreement) and take such other actions as Buyer may
reasonably request to more effectively transfer and assign to, and vest in, Buyer each of the Purchased Assets consistent with this Agreement and (b), if applicable, cooperate with and provide
assistance to Buyer in removing the Purchased Assets from the Marcus Entities' or the Selling Joint Ventures' premises (or wherever located), at Buyer's sole cost provided that Buyer shall reimburse
the Marcus Entities and the Selling Joint Ventures for all reasonable out-of-pocket costs associated with such cooperation and assistance. 

        14.16    Excluded Properties.    The Marcus Entities shall, at Closing, cause the existing franchise agreement with
any Marcus Entity for any Excluded Property to be terminated, and at or prior to Closing, at the Marcus Entities' or applicable Selling Joint Venture's option, the Marcus Entities and/or such Selling
Joint Ventures shall enter into franchise agreements with respect to each such Excluded Property mutually agreed upon by the Marcus Entities and Buyer; provided, however, that Buyer's consent shall be
required for any franchise agreement on any Excluded Property that is not operated as a Baymont Hotel as of the date of this Agreement including, without limitation, the Chicago Hotel. In the case of
Baymont Hotels, such franchise agreements shall be, in all material respects, identical to those being used by the Marcus Entities immediately prior to Closing, and in the case of Woodfield Hotels
shall be in form consistent with a franchise offering circular duly filed with the FTC and approved by Buyer, except that in each case such franchise agreements shall permit the termination thereof at
the franchisee's option at any time prior to the fifth anniversary of Closing, which termination shall not trigger any penalties, liquidated damages, payments or other obligations of the Marcus
Entities or applicable Joint Ventures. Notwithstanding anything herein to the contrary, the Marcus Entities may sell any or all of the Excluded Properties at any time either before or after Closing
and nothing herein shall prohibit the Marcus Entities to take the actions that they believe are 

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necessary
and appropriate to sell such Excluded Properties provided that (i) such actions and sales do not prevent the Marcus Entities from transferring to Buyer good title to the Properties
hereunder in accordance with this Agreement and (ii) if the transferee will be a franchisee of Buyer, the transferee must enter into a new franchise agreement with Buyer and shall be subject to
the reasonable approval of Buyer as a franchisee. If an Excluded Property will not be subject to a franchise agreement with Buyer or an Affiliate of Buyer, then the Marcus Entities shall, in the case
of an Excluded Property owned by a Marcus Entity, cause the removal of all signage and other property bearing any of the Marcus Trade Rights and otherwise to decommission such Excluded Property as a
Baymont Hotel or Woodfield Hotel, as applicable, and, in the case of an Excluded Property owned by a non-Selling Joint Venture, shall exercise its rights under any management agreement or
franchise agreement and otherwise use reasonable efforts to cause such decommissioning, in each case at no cost to Buyer. 

15.   RESOLUTION OF DISPUTES  

        15.1    Arbitration.    After the Closing and as otherwise provided in this Agreement, except as otherwise provided
herein, any dispute, controversy or claim arising out of or relating to this Agreement or any Ancillary Agreement or the performance by the parties of its or their terms shall be settled by binding
arbitration held in New York, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association of New York, New York then in effect, except as specifically
otherwise provided in this Article 15. 

        15.2    Arbitrators.    The panel to be appointed shall consist of three neutral arbitrators (one to be chosen by
Buyer, one to be chosen by the Marcus Entities, and one to be chosen by the first two chosen arbitrators). 

        15.3    Procedures; No Appeal.    The arbitrators shall allow such discovery as the arbitrators determine appropriate
under the circumstances and shall resolve the dispute as expeditiously as practicable, and if reasonably practicable, within 120 days after the selection of the arbitrators. The arbitrators
shall give the parties written notice of the decision, with the reasons therefor set out, and shall have 30 days thereafter to reconsider and modify such decision if any party so requests
within 10 days after the decision. Thereafter, the decision of the arbitrators shall be final, binding, and nonappealable with respect to all persons, including (without limitation) persons who
have failed or refused to participate in the arbitration process. 

        15.4    Authority.    The arbitrators shall have authority to award relief under legal or equitable principles,
including interim or preliminary relief, and to allocate responsibility for the costs of the arbitration and to award recovery of attorneys fees and expenses in such manner as is determined to be
appropriate by the arbitrators. 

        15.5    Entry of Judgment.    Judgment upon the award rendered by the arbitrators may be entered in any court having
in personam and subject matter jurisdiction. The Marcus Entities and Buyer hereby submit to the in personam jurisdiction of the Federal and State courts in Wisconsin, for the purpose of confirming any
such award and entering judgment thereon. 

        15.6    Confidentiality.    All proceedings under this  Article 15, and all evidence given or discovered pursuant hereto, shall
be maintained in confidence by all parties and by the arbitrators. 

        15.7    Continued Performance.    The fact that the dispute resolution procedures specified in this  Article 15 shall have been
or may be invoked shall not excuse any party from performing its obligations under this Agreement and during the
pendency of any such procedure all parties shall continue to perform their respective obligations in good faith, subject to any rights to terminate this Agreement that may be available to any party. 

        15.8    Tolling.    All applicable statutes of limitation shall be tolled while the procedures specified in this  Article 14 are
pending. The parties will take such action, if any, required to effectuate such tolling. 

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16.   DEFINITIONS  

        All defined terms used herein shall have the meaning set forth in this Article 16 or elsewhere in this
Agreement. 

        "Accounts Receivable" shall mean all accounts receivable of the Marcus Mid-Priced Lodging Businesses arising prior to the Closing,
including, without limitation, charges for the use or occupancy of any guest, conference or banquet rooms or other facilities at the Properties, or any other goods or services provided by or on behalf
of the Marcus Entities and the Selling Joint Ventures at the Properties. 

        "Adverse Diligence Discovery Amount" shall have the meaning set forth in Section
7.9(a)(ii). 

        "Adverse Diligence Discovery Cap" shall have the meaning set forth in Section
7.9(e)(i)(B). 

        "Adverse Diligence Discovery Deductible" shall have the meaning set forth in Section
7.9(e)(i)(A). 

        "Adverse Diligence Discovery Value Impact" shall have the meaning set forth in Section
7.9(d)(iii)(B). 

        "Adverse Diligence Discovery" shall have the meaning set forth in Section 7.9(a)(i). 

        "Adverse Impact Opinion" shall have the meaning set forth in Section 7.9(d)(iii)(B). 

        "Affected Employees" shall mean Employees who are, directly or through a subsidiary, employed by Buyer immediately after the Closing. 

        "Affiliate" means, with respect to the Person in question, (i) any shareholders, directors or officers of such Person; (ii) any spouse,
children or family members of such Person; or (iii) any other Person that, directly or indirectly, (a) owns or controls fifty percent (50%) or more of the outstanding voting and/or equity interests of
such Person, or (b) controls, is controlled by or is under common control with, the Person in question. For the purposes of this definition, the term "control" and its derivations means having the
power, directly or indirectly, to direct the management, policies or general conduct of business of the Person in question, whether by the ownership of voting securities, contract or otherwise. 

        "Aggregate Individual JV Price" shall have the meaning set forth in Section 3.3(a)(ii). 

        "Aggregate Joint Venture Purchase Price" shall have the meaning set forth in Section
3.3(f)(i)

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

        "Ancillary Agreements" shall mean the documents listed in Sections 12.1 and  12.2.

        "Antitrust Division" shall mean the Antitrust Division of the United States Department of Justice. 

        "Appraisal Notice" shall have the meaning set forth in Section 7.9(d)(iii)(B). 

        "Assigned Contracts" shall have the meaning set forth in Section 1.1(e). 

        "Assigned JV Property Management Agreement" shall have the meaning set forth in Section
3.3(d). 

        "Assigned Licenses and Permits" shall have the meaning set forth in Section 1.1(m). 

        "Assumed Liabilities" shall have the meaning set forth in Section 2.1. 

        "Audit Accountants" shall have the meaning set forth in Section 14.6(a). 

        "Baymont 2004 Circular" shall have the meaning set forth in Section 4.23(a). 

        "Baymont Business" shall have the meaning set forth in the Recitals to this Agreement. 

        "Baymont Circulars" shall have the meaning set forth in Section 4.23(a). 

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        "Baymont Franchises" shall have the meaning set forth in the Recitals to this Agreement. 

        "Baymont Hospitality" shall have the meaning set forth in the Recitals to this Agreement. 

        "Baymont Hotels" shall have the meaning set forth in the Recitals to this Agreement. 

        "Baymont Partners" shall have the meaning as set forth in the Recitals to this Agreement. 

        "Baymont" shall have the meaning set forth in the Recitals to this Agreement. 

        "Bid Document Financial Statements" shall have the meaning set forth in Section 4.3. 

        "Bid Notice" shall have the meaning set forth in Section 14.12(c)(ii)(B). 

        "Bookings" shall have the meaning set forth in Section 1.1(o). 

        "Buyer's Subdivision Parcels" shall have the meaning set forth in Section 7.14(a). 

        "Buyer" shall have the meaning set forth in the preamble to this Agreement. 

        "Casualty" shall have the meaning set forth in Section 10.1. 

        "Chicago Hotel" shall mean the hotel project located at 630 North Rush Street, Chicago, Illinois that is currently under development by
the Marcus Entities. 

        "Closing Date Cash Amount" shall have the meaning set forth in Section 3.2(c). 

        "Closing Date" shall have the meaning set forth in Article 12. 

        "Closing" shall have the meaning set forth in Article 12. 

        "COBRA" shall mean the requirements of Part 6 of Subtitle B of Title I of ERISA. 

        "Code" shall mean the Internal Revenue Code of 1986, as amended. 

        "Competing Activities" shall have the meaning set forth in Section 14.12(a)(i). 

        "Competing Hotels" shall have the meaning set forth in Section 14.12(a)(ii). 

        "Computer Software" shall have the meaning set forth in Section 1.1(h). 

        "Condemnation" shall have the meaning set forth in Section 10.2. 

        "Confidential Information" shall have the meaning set forth in Section 4.22(g). 

        "Contingent Worker" shall mean any individual, other than Employees, who provides services primarily to the operation of the Marcus
Mid-Priced Lodging Businesses, and the payments therefore are treated by such Marcus Entity or Selling Joint Venture as other than payments to an Employee for Tax and benefit purposes. 

        "Contracts" shall mean all agreements, contracts, leases, subleases, indentures, instruments, commitments creating a Lien on the
properties or assets of other Persons, guaranties provided in support of the obligations of other Persons, customer orders, purchase orders, sales orders, corporate rate agreements, consulting
contracts, supply agreements, service agreements, booking and reservation agreements, credit card service agreements, development agreements, licenses, sublicenses, Franchise Documents, joint venture
agreements, partnership agreements, management agreements, including, without limitation, the Decatur, Illinois Management Contract, and other similar arrangements and commitments of or relating to
the Marcus Mid-Priced Lodging Businesses or the Purchased Assets (including any rights thereunder), but specifically excluding all Employee Plans/Agreements. 

        "Cooperative Period" shall have the meaning set forth in Section 14.12(c). 

        "Cut-off Time" shall have the meaning set forth in Section 12.3. 

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        "Decatur, Illinois Management Contract" shall mean that Management Agreement dated December 30, 1983 between Executive Development Co., as
owner, and Baymont, as manager, as amended by letter agreement dated June 27, 2002 between Executive Development Co. and Baymont, pertaining to the Baymont Hotel located at 5100 Hickory Point Frontage
Road, Decatur, Illinois. 

        "Deductible" shall have the meaning set forth in Section 11.6(b). 

        "Defending Party" shall have the meaning set forth in Section 11.4(c). 

        "Diligence" shall have the meaning set forth in Section 7.2. 

        "Earnest Money Deposit" shall have the meaning set forth in Section 3.2(a)(i). 

        "EBITDA" shall mean earnings before interest, taxes, depreciation and amortization, as specifically presented in and subject to the
qualifications and exclusions set forth in Sections IV.E. and IV.F. of the Memorandum. 

        "Employee Plans/Agreements" shall mean and include all pension, thrift, savings, profit sharing, retirement, multi-employer retirement
plan, incentive bonus or other bonus, medical, dental, life, accident insurance, benefit, employee welfare, disability, group insurance, stock purchase, stock option, stock appreciation, stock bonus,
executive or deferred compensation, hospitalization and other similar fringe or employee benefit plans, programs and arrangements, and any employment agreements, retention agreements, consulting
contracts, "golden parachutes," collective bargaining agreements, severance agreements or plans, vacation and sick leave plans, programs, arrangements and policies, including, without limitation, all
"employee benefit plans" (as defined in Section 3(3) of ERISA), all employee manuals, and all written statements of policies, practices or understandings relating to employment, which are provided to,
for the benefit of, or relate to, any Employees, whether formal or informal, written or oral, and whether or not subject to ERISA. 

        "Employees" shall mean, other than Property-level employees who work at Excluded Properties, all persons who spend a majority of their
business time related to the operations of the Marcus Mid-Priced Lodging Businesses and are identified by the Marcus Entities or the Selling Joint Ventures as
employees thereof for tax and benefit purposes, including without limitation all Property-level employees of the Marcus Entities and the Selling Joint Ventures, all employees of the Marcus Entities
performing services related to or arising under the franchise programs, franchise agreements and management agreements and all regional and divisional level employees of the Marcus Entities and Marcus
Mid-Priced Lodging Businesses. 

        "Environmental Laws" shall mean the Clean Water Act (33 U.S.C. Section 1251 et. seq.), the Clean Air Act (42 U.S.C. Section 7401 et.
seq.), the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.) ("RCRA"), the Toxic Substances Control Act (15 U.S.C. Section 2601
et. seq.) (the "Toxic Substances Control Act"), and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.)
("CERCLA"), and their state and local counterparts and all regulations promulgated pursuant to any of the foregoing. 

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as amended. 

        "Escrow Company" shall have the meaning set forth in Section 3.2(a)(i). 

        "Estimated Ovations Amount" shall have the meaning set forth in Section 3.4(a). 

        "Estimated Ovations Schedule" shall have the meaning set forth in Section 3.4(a). 

        "Excepted Representations and Warranties" shall mean the representations and warranties made pursuant to Sections
4.1, 4.3 (with respect to clause (ii) of the second sentence only), 4.4, 4.6, 4.12(d) (with respect to the first and second
sentences only), 4.21, 4.22(b) (with respect to the first sentence only), 4.23(a), 4.23(g) (with respect
to the first sentence only), 4.23(r) (with respect to the second 

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sentence
only, but only to the extent solely related to events and circumstances prior to the date hereof), 4.23(s) and  4.27. 

        "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended. 

        "Excluded Assets" shall have the meaning set forth in Section 1.2. 

        "Excluded Diligence Amounts" shall have the meaning set forth in Section 7.9(a)(iii). 

        "Excluded Liabilities" shall have the meaning set forth in Section 2.2. 

        "Excluded Property" shall mean the Baymont Inns owned by the 802 California Ontario, LLC, BN/MC Associates-Cook and Hoffman Northwest, the
Chicago Hotel, and the other Properties excluded from the transactions contemplated by this Agreement pursuant to any provision of this Agreement, including without limitation,  Sections 3.3, 7.9(e), 7.14(e)(i),
10.1, or 10.2. 

        "Expected Claim Notice" shall have the meaning set forth in Section 11.1.

        "Final Closing Statement" shall have the meaning set forth in Section 12.3(c). 

        "Final Ovations Amount" shall have the meaning set forth in Section 3.4(b). 

        "Final Ovations Schedule" shall have the meaning set forth in Section 3.4(b). 

        "Financial Statements" shall mean, as of May 29, 2003 and May 30, 2002, the unaudited statement of EBITDA of the Marcus Mid-Priced Lodging
Businesses for the fiscal year then ended. 

        "Forecasts" shall have the meaning set forth in Section 17.11. 

        "Franchise Documents" shall mean all franchise agreements, development agreements and any other agreements between a Marcus Entity and a
Franchisee which directly or indirectly grant the right to develop, establish or operate a Baymont Hotel or a Woodfield Hotel, respectively, and any agreements ancillary between a Marcus Entity and a
Franchisee thereto, including any rights of first refusal and options. 

        "Franchise Material Adverse Effect" shall mean any event or condition that materially and adversely affects the financial condition,
operations or value of Baymont Franchises' franchise system taken as a whole, including, without limitation, the Franchise Documents, franchise operations and the right to offer and sell franchises,
excluding events or conditions affecting the lodging industry and/or the general or local economy generally. 

        "Franchisee" shall mean any franchisee, master franchisee, developer, area developer or other individual or entity that hold the rights to
develop or operate either Baymont Hotels or Woodfield Hotels. 

        "FTC" shall mean the United States Federal Trade Commission. 

        "Government Entity" shall mean any court, arbitrator, department, commission, board, bureau, agency, authority, instrumentality or other
body, whether federal, state, municipal, foreign or other. 

        "Hazardous Substances" shall mean any substance which is or contains: (i) any "hazardous substance" as currently defined in Section
101(14) of CERCLA (as defined in "Environmental Laws") or any regulations promulgated under CERCLA; (ii) any "hazardous waste" as currently defined in
RCRA (as defined in "Environmental Laws") or regulations promulgated under RCRA; (iii) any substance regulated by the Toxic Substances Control Act (as defined in "Environmental Laws"); (iv) gasoline,
diesel fuel or other petroleum hydrocarbons; (v) asbestos and asbestos containing materials, in any form, whether friable or nonfriable; (vi) polychlorinated biphenyls; (vii) radon gas; and (viii) any
additional substances or materials which are currently regulated as hazardous or toxic under any Environmental Laws. Hazardous Materials shall include, without limitation, any substance, the presence 

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of
which on any real property requires reporting, investigation or remediation under Environmental Laws. 

        "Historical Financial Information" shall mean the financial information which is required to be filed by Buyer with the SEC pursuant to
Item 7 of the Current Report on Form 8-K as contemplated by the Exchange Act, and the rules and regulations promulgated thereunder. 

        "HSR Act" shall mean the Hart Scott Rodino Antitrust Improvements Act of 1976. 

        "Indemnification Cap" shall have the meaning set forth in Section 11.6(b). 

        "Indemnified Party" shall have the meaning set forth in Section 11.4(a). 

        "Indemnifying Party" shall have the meaning set forth in Section 11.4(a). 

        "Infringement" shall mean any infringement, impairment, dilution, misappropriation or other violation or misuse of the rights of any other
Person. 

        "Inventory" shall have the meaning set forth in Section 1.1(f). 

        "IRS" shall have the meaning set forth in Section 3.5. 

        "Joint Venture Property" shall have the meaning set forth in Section 3.3(a)(i). 

        "Joint Venture Purchase Price" shall have the meaning set forth in Section 3.3(f)(ii). 

        "Joint Ventures" means the entities which operate the Baymont Hotels as joint ventures between Baymont Partners and Third Party Partners,
all of which are set forth on Exhibit A and Exhibit A-1. 

        "JV Asset Price" shall have the meaning set forth in Section 3.3(a). 

        "JV Management Rights" shall have the meaning set forth in Section 3.3(a)(i). 

        "JV Property Management Agreement" shall have the meaning set forth in Section 3.3(d). 

        "JV Property Management Price" shall have the meaning set forth in Section 3.3(a)(i). 

        "Law" shall mean any constitution, statute, law, ordinance, rule, authorization or regulation promulgated or issued by a Government
Entity, including, without limitation, the Americans with Disabilities Act. 

        "Leave Employees" shall have the meaning set forth in Section 6.1(a). 

        "Liability" or "Liabilities" shall mean and include any direct or indirect indebtedness,
guaranty, endorsement, claim, loss, debt, demand, judgment, fine, penalty, settlement, damage, deficiency, cost, expense, obligation or responsibility of any nature or kind, fixed or unfixed, accrued,
absolute or contingent, known or unknown, asserted or unasserted, liquidated or unliquidated, matured or unmatured, secured or unsecured, including all costs and expenses (legal, accounting or
otherwise) relating thereto. 

        "Licensed Trade Rights" shall have the meaning set forth in Section 4.22(a). 

        "Licenses and Permits" shall mean all licenses, permits, consents, approvals, authorizations, registrations and certifications of all
applicable Government Entities and all certification organizations. 

        "Liens" shall mean all deeds of trust, mortgages, liens (statutory or otherwise), security interests, claims, pledges, licenses, equities,
options, conditional sales contracts, assessments, levies, easements, covenants, reservations, restrictions, rights-of-way, exceptions, limitations, charges or encumbrances of any nature whatsoever. 

        "Liquor License" shall have the meaning set forth in Section 7.11. 

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        "Litigation" shall mean any legal or equitable action, suit, proceeding, arbitration, claim, investigation or inquiry, whether civil,
criminal or administrative. 

        "Losses" shall include all Liabilities and all losses, damages, judgments, awards, penalties and settlements;  provided, however, that the term "Losses", solely with respect to claims between the Marcus Entities,
Buyer and their respective Affiliates, shall expressly exclude consequential damages, lost profits, punitive damages, diminution of value or damages calculated based on valuation formulas using a
multiple of revenues, earnings, profits, cash flows, discounted present value or the like. 

        "Marcus 401(k) Plan" shall have the meaning set forth in Section 6.3(a). 

        "Marcus Acquiror" shall have the meaning set forth in Section 14.12(c)(ii). 

        "Marcus Assigned Licenses and Permits" shall have the meaning set forth in Section 1.1(m). 

        "Marcus Consid" shall have the meaning set forth in the Recitals to this Agreement. 

        "Marcus Contracts" shall have the meaning set forth in Section 1.1(e). 

        "Marcus Entities" shall have the meaning set forth in the preamble to this Agreement. 

        "Marcus Entity Cash Purchase Price" shall have the meaning set forth in Section 3.1. 

        "Marcus Fl" shall have the meaning set forth in the Recitals to this Agreement. 

        "Marcus GAAP" shall mean prepared in accordance with generally accepted accounting principles using the same accounting principles and
procedures that were used by Marcus in preparing the Financial Statements, on a basis consistent with the preparation of the Recent Financial Statement. 

        "Marcus Material Consents" shall have the meaning set forth in Section 4.2. 

        "Marcus Material Contracts" shall mean all Contracts, commitments, plans, agreements and Licenses which are (i) material to the operation
of the Marcus Mid-Priced Lodging Businesses, including, without limitation, the franchise businesses related thereto, and (ii) with respect to any Property, material to that Property. 

        "Marcus Mid-Priced Lodging Businesses" shall have the meaning set forth in the Recitals to this Agreement. 

        "Marcus Non" shall have the meaning set forth in the Recitals to this Agreement. 

        "Marcus Owned Personal Property" shall have the meaning set forth in Section 1.1(c). 

        "Marcus Owned Real Property" shall have the meaning as set forth in Section 1.1(a). 

        "Marcus Personal Property Leases" shall have the meaning as set forth in Section 1.1(d). 

        "Marcus Records and Files" shall have the meaning set forth in Section 1.1(k). 

        "Marcus Trade Rights" shall have the meaning set forth in Section 1.1(g). 

        "Marcus" shall have the meaning set forth in the preamble to this Agreement. 

        "Marcus-Anderson Partnership" shall have the meaning set forth in the Recitals to this Agreement. 

        "Material Adverse Effect" shall mean, individually or in the aggregate, a material adverse effect on the Marcus Mid-Priced Lodging
Businesses or the assets, properties, results of operations or financial condition of the Marcus Mid-Priced Lodging Businesses, in each case taken as a whole, excluding events or conditions affecting
the lodging industry and/or the general or local economy generally. 

        "Material Casualty" shall have the meaning set forth in Section 10.1(a). 

        "Material Condemnation" shall have the meaning set forth in Section 10.2(a). 

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        "Memorandum" shall have the meaning set forth in Section 17.11. 

        "New Ovations Agreement" shall have the meaning set forth in Section 7.17. 

        "Order" shall mean any order, writ, injunction, judgment, plan, award or decree of any Government Entity. 

        "Outside Date" shall mean October 1, 2004. 

        "Ovations Appraisal Notice" shall have the meaning set forth in Section 3.4(b). 

        "Ovations Opinion" shall have the meaning set forth in Section 3.4(b). 

        "Ovations Valuation Expert" shall have the meaning set forth in Section 3.4(b). 

        "Owned Personal Property" shall have the meaning set forth in Section 1.1(c). 

        "Owned Real Property" shall have the meaning set forth in Section 1.1(a). 

        "Owned Trade Rights" shall mean all Trade Rights owned or purported to be owned by any Marcus Entity or any of the Selling Joint Ventures
and used in the operation of the Marcus Mid-Priced Lodging Businesses. 

        "Permitted Real Property Liens" shall mean Liens for Taxes or assessments not yet due and payable, municipal and zoning ordinances,
easements for public or private utilities, easements for ingress, egress, access, parking and signage, access restrictions and restrictive covenants, in each case of record as of the date hereof, none
of which interfere in any material respect with, or adversely impact in any material respect, the use, value or operation of the applicable Real Property as utilized in accordance with past practices,
and such instruments as may be recorded pursuant to Section 7.15 hereof. 

        "Person" shall mean an individual, a partnership, a corporation, an association, a joint stock company, a trust, a joint venture, an
unincorporated organization, or a Government Entity (or any department, agency or political subdivision thereof). 

        "Personal Property Leases" shall have the meaning set forth in Section 1.1(d). 

        "Preliminary Closing Statement" shall have the meaning set forth in Section 12.3(c). 

        "Pro Forma Information" shall have the meaning set forth in Section 14.6. 

        "Property Material Adverse Effect" shall mean a material adverse effect on the operation of a Property as operated in accordance with past
practices, or the operational value of a Property when taken as a whole, excluding events or conditions affecting the lodging industry and/or the general or local economy generally. 

        "Property" or "Properties" shall mean each of the Baymont Hotels and Woodfield Hotels
located on either the Owned Real Property or the property subject to a Real Property Lease, including all owned or leased parking areas, green spaces and other areas utilized or required in operation
of such hotels in accordance with past practices, excluding each of the Excluded Properties. 

        "Proposal" means any inquiry, proposal or offer from any person (other than Buyer and its Affiliates and representatives) relating to any
direct or indirect (i) merger, consolidation or similar transaction involving the Marcus Entities or the Marcus Mid-Priced Lodging Businesses, (ii) sale, lease or other disposition, directly or
indirectly, by merger, consolidation, share exchange or otherwise, of any of the Purchased Assets other than sales within the ordinary course of business consistent with past practice, (iii) tender
offer or exchange offer in which any person shall acquire beneficial ownership (as such term is defined in Rule 13d-3 under the Exchange Act), or the right to acquire beneficial ownership, or any
"group" (as such term is defined under the Exchange Act) shall have been formed which beneficially owns or has the right to acquire beneficial ownership of, 10% or more of the 

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outstanding
shares of any class or series of capital stock of Marcus Entities, (iv) recapitalization, restructuring, liquidation, dissolution, or other similar type of transaction with respect to or
involving the Marcus Mid-Priced Lodging Businesses or (v) transaction that is similar in form, substance or purpose to any of the foregoing transactions. 

        "Purchase Price" shall have the meaning set forth in Section 3.1. 

        "Purchased Assets" shall have the meaning set forth in Section 1.1. 

        "Real Property Leases" shall have the meaning set forth in Section 1.1(b). 

        "Recent Financial Statement" shall mean an unaudited statement of EBITDA of Marcus Mid-Priced Lodging Businesses as of May 27, 2004, and
the related unaudited statements of income for the year then ended and for the corresponding period of the prior year. 

        "Records and Files" shall mean all books, records, ledgers, files, documents, correspondence, price lists, invoices, customer lists,
databases, guest records, bookings and reservations records and all files and records related thereto (including all historical guest and transaction information stored or maintained in Marcus' data
warehouse), supplier lists and all files and records related thereto, vendor lists and all files and records related thereto, accounting records and other similar business records, operating data and
other similar data, operating manuals and similar documents customarily delivered to Franchisees or which set forth guidelines with respect to the operation of their respective franchises, electronic
records, sales agent lists and all files and records related thereto, architectural plans, drawings, blueprints, and specifications, creative materials, advertising and promotional materials,
marketing databases, customer profiles, studies, reports, and other similar printed or written materials used in the conduct of, or that relate to, the Marcus Mid-Priced Lodging Businesses or are
otherwise included in the Purchased Assets or otherwise used in connection with the conduct of the Marcus Mid-Priced Lodging Businesses. 

        "Registered Owned Trade Rights" shall mean all of the Owned Trade Rights which are issued by, registered with, or the subject of an
application filed with, as applicable, the U.S. Patent and Trademark Office, the U.S. Copyright Office or any similar office or agency in the world. 

        "Required Information" shall have the meaning set forth in Section 14.6. 

        "Retained Litigation" shall mean the Litigation, the Liability for which is to be borne by the Marcus Entities and/or the Joint Ventures
hereunder. 

        "Retained Real Property" shall have the meaning set forth in Section 1.2(g). 

        "Retained Subdivision Parcels" shall have the meaning set forth in Section 7.14(a). 

        "Right of First Refusal" shall have the meaning set forth in Section 3.3(b). 

        "SEC" shall mean the United States Securities and Exchange Commission. 

        "Selling Joint Venture Assigned Licenses and Permits" shall have the meaning set forth in Section
1.1(m). 

        "Selling Joint Venture Contracts" shall have the meaning set forth in Section 1.1(e). 

        "Selling Joint Venture Owned Personal Property" shall have the meaning set forth in Section
1.1(c). 

        "Selling Joint Venture Owned Real Property" shall have the meaning set forth in Section
1.1(a). 

        "Selling Joint Venture Personal Property Leases" shall have the meaning set forth in Section
1.1(d). 

        "Selling Joint Venture" shall have the meaning set forth in Section 3.3(f)(iii). 

        "Selling Third Party Partners" shall have the meaning set forth in Section 3.3(b). 

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        "Specifically Identified Excluded Liabilities" shall mean those Excluded Liabilities, and only those Excluded Liabilities, specifically
set forth and enumerated in Sections 2.2(a) through 2.2(p) and shall not include any other Excluded
Liabilities. 

        "Subdivision Properties" shall have the meaning set forth in Section 7.14. 

        "Target's Competing Activities" shall have the meaning set forth in Section
14.12(c)(ii)(A). 

        "Target" shall have the meaning set forth in Section 14.12(c)(ii). 

        "Tax Return" shall mean any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including
any schedule or attachment thereto, and including any amendment thereof. 

        "Tax" or "Taxes" shall mean any federal, state, local, or foreign income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code §59A), customs duties, capital stock, franchise,
profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto. 

        "Third Party Partners" shall have the meaning set forth in Section 3.3(a)(i). 

        "Trade Rights" shall mean and include: (i) all copyrights and all other rights associated therewith in both published and unpublished
works of authorship and all derivatives thereof; (ii) all patents, patent applications, patent rights and all proprietary rights; (iii) all inventions, know-how, discoveries, improvements,
confidential and proprietary information, designs, trade secrets, shop and royalty rights, employee covenants and agreements respecting intellectual property and non-competition and all other types of
intellectual property; (iv) all trademarks, trade names, trade dress, service marks, logos and domain names; and (v) all applications to register and all registrations of any of the foregoing, all
goodwill associated with any of the foregoing, all rights to receive royalties with respect thereto, and all claims for past, present or future Infringement or breach thereof. 

        "Transaction Stay/Severance Payments" shall mean the "stay" or "transaction" bonuses and/or severance payments and benefits to be paid or
provided by one or more of Marcus, the Marcus Entities and/or the Selling Joint Ventures to the Employees. 

        "Transfer Cost" shall have the meaning set forth in Section 17.7(c). 

        "Transfer Dates" shall have the meaning set forth in Section 6.1(a). 

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        "Use Restricted Property" or "Use Restricted Properties" shall mean each of the Properties
commonly known as: (a) 3730 West College Avenue, Appleton, Wisconsin; (b) 3920 West College Avenue, Appleton, Wisconsin; (c) 20391 West Bluemound Road, Brookfield, Wisconsin; (d) 2801 Hillside Drive,
Delafield, Wisconsin; (e) 15300 West Rock Ridge Road, New Berlin, Wisconsin; and (f) 7141 South 13th Street, Oak Creek, Wisconsin. 

        "Valuation Expert" shall have the meaning set forth in Section 7.9(d)(iii)(B). 

        "WARN" shall mean the Worker Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et seq. 

        "Warranties" shall have the meaning set forth in Section 1.1(n). 

        "Woodfield Business" shall have the meaning set forth in the Recitals to this Agreement. 

        "Woodfield Franchises" shall have the meaning set forth in the Recitals to this Agreement. 

        "Woodfield Hotels" shall have the meaning set forth in Recitals to this Agreement. 

        "Woodfield" shall have the meaning set forth in the Recitals to this Agreement. 

17.   MISCELLANEOUS  

        17.1    Schedules.    Disclosure in any Schedule hereto shall constitute disclosure for all purposes under this
Agreement and in response to any other Schedule under this Agreement; provided that the disclosure in any such Schedule contains the requisite
specificity and particularity required in such other Schedule. Disclosure of a document or information in any Schedule hereto is not intended as a representation or warranty as to the material nature
of such document or information nor does it establish any standard of materiality upon which to judge the inclusion or omission of other documents or information in that Schedule or other Schedules. 

        17.2    Assignment; Parties in Interest.    

        17.2(a)    Assignment.    Except as expressly provided herein, the rights and obligations of a party hereunder may not
be assigned, transferred or encumbered without the prior written consent of the other parties. Buyer may assign its rights and interest in and to this Agreement to one or more of its Affiliates upon
advance written notice to the Marcus Entities; provided, however, notwithstanding such assignment, Buyer
shall remain directly and primarily liable to the Marcus Entities for its obligations hereunder and no such assignment will affect the Marcus Entities' ability to pursue Buyer for claims arising
hereunder or under any Ancillary Agreement. 

        17.2(b)    Parties in Interest; No Third Party Beneficiaries.    This Agreement shall be binding upon, inure to the
benefit of, and be enforceable by the respective successors and permitted assigns of the parties hereto. Nothing contained herein shall be deemed to confer upon any other Person other than the parties
hereto any right or remedy under or by reason of this Agreement. 

        17.2(c)    Marcus Transactions.    In the event of a sale of all or substantially all of the assets of Marcus and/or a
Marcus Entity, the Marcus Entities agree that the buyer of such assets shall assume and become jointly liable for the obligations of the Marcus Entities hereunder and any such buyer shall become so
liable, provided that such assignment shall not relieve the Marcus Entities of their obligations hereunder. 

        17.3    Recordings.    Neither this Agreement nor any notice or memorandum thereof shall be recorded in any real
property records for any jurisdiction. Any such recordation (other than recordations pursuant to Section 7.15) shall constitute a default under
this Agreement by the recording party. 

80

 

        17.4    Law Governing Agreement.    This Agreement shall be construed and interpreted according to the internal Laws
of the State of Wisconsin, excluding any choice of Law rules that may direct the application of the Laws of another jurisdiction. 

        17.5    Amendment and Modification.    The parties hereto may amend, modify and supplement this Agreement in such
manner as may be agreed upon by them in writing. 

        17.6    Notice.    All notices, requests, demands and other communications hereunder shall be given in writing and
shall be: (a) personally delivered; (b) sent by telecopier or facsimile transmission; or (c) sent to the parties at their respective addresses indicated herein by registered or
certified U.S. mail, return receipt requested and postage prepaid, or by private overnight mail courier service. The respective addresses to be used for all such notices, demands or requests are as
follows: 

	(a)
	If
to Buyer, to: 

Sandra
K. Michel

La Quinta Corporation

909 Hidden Ridge, Suite 600

Irving, TX 75038

Facsimile: (214) 492-6616 

(with
a copy, which shall not constitute notice, to) 

Scott
F. Duggan

Goodwin Procter LLP

Exchange Place

53 State Street

Boston, MA 02109

Facsimile: (617) 523-1231 

or
to such other person or address as Buyer shall furnish to the Marcus Entities in writing. 

	(b)
	If
to the Marcus Entities, to: 

Thomas
F. Kissinger

The Marcus Corporation

100 East Wisconsin Avenue

Milwaukee, WI 53202

Facsimile: (414) 905-2669 

(with
a copy, which shall not constitute notice, to) 

Steven
R. Barth

Foley & Lardner LLP

777 East Wisconsin Avenue

Milwaukee Wisconsin 53202-5306

Facsimile: (414) 297-4900 

or
to such other person or address as the Marcus Entities shall furnish to Buyer in writing. 

        If
personally delivered, such communication shall be deemed delivered upon actual receipt; if sent by overnight courier pursuant to this paragraph, such communication shall be deemed
delivered upon receipt; and if sent by U.S. mail pursuant to this paragraph, such communication shall be deemed delivered as of the date of delivery indicated on the receipt issued by the relevant
postal service, or, if the addressee fails or refuses to accept delivery, as of the date of such failure or refusal. Any party to this Agreement may change its address for the purposes of this
Agreement by giving notice thereof in accordance with this Section 17.6. 

81

 

        17.7    Expenses.    Regardless of whether or not the transactions contemplated hereby are consummated: 

        17.7(a)    Brokerage.    The Marcus Entities agree to hold Buyer harmless from and against all Losses for brokerage
commissions, finder's fees and investment banking fees incurred through any act of the Marcus Entities or any of their Affiliates in connection with the execution of this Agreement or the
transactions provided for herein, including all fees and costs of Goldman Sachs & Co. Buyer agrees to hold the Marcus Entities harmless from and against all Losses for brokerage commissions,
finder's fees, and investment banking fees incurred through any act of Buyer or any of its Affiliates in connection with the execution of this Agreement or the transactions provided for herein,
including all fees and costs of Lehman Brothers. 

        17.7(b)    Dispute-Related Fees.    If any lawsuit or arbitration or other legal proceeding arises in connection with
the interpretation or enforcement of this Agreement, the prevailing party therein shall be entitled to receive from the other party the prevailing party's costs and expenses, including reasonable
attorneys' fees incurred in connection therewith, in preparation therefor and on appeal therefrom, which amounts shall be included in any judgment therein. 

        17.7(c)    Other.    The Marcus Entities and Buyer shall each pay 50% of the following expenses: (i) transfer
Taxes, deed stamps, sales Taxes and similar Taxes, including sales Taxes on the Owned Personal Property and Inventory, and charges payable to any Government Entity in the connection with the transfer
of the Purchased Assets and Assumed Liabilities (the "Transfer Cost"); (ii) Earnest Money Deposit escrow fees; (iii) the cost to obtain
updated title insurance commitments for the Properties and premiums for title insurance policies (including endorsements) issued to Buyer at Closing; (iv) the cost to obtain updated surveys of
each of the Properties; (v) costs and expenses incurred in connection with the transfer of Licenses and Permits and warranties; and (vi) recording fees to record the deeds for the
Properties (or to secure assignments of the Real Property Leases, as applicable. The Buyers shall pay all fees with respect to (w) filings under the HSR Act; (x) any environmental
studies commissioned by or on behalf of the Buyer with respect to the Properties; and (y) any structural or engineering reports commissioned by or on behalf of the Buyer with respect to the
Properties. The Marcus Entities shall pay all fees for the recording of discharges of any title encumbrances required under this Agreement to be discharged by the Marcus Entitles at or before Closing.
Buyer's costs associated with the exchanges contemplated by Section 14.14 shall be borne as set forth in such Section. The parties shall provide
such certificates and other information and otherwise cooperate to the extent reasonably required to minimize Transfer Costs and to file Tax returns. Except as otherwise provided herein, each of the
parties shall bear its own expenses and the expenses of is legal, accounting and other professional counsel and other agents in connection with the transactions contemplated hereby. 

        17.8    Publicity.    The parties agree that, except in the performance of the obligations under this Agreement, no
party shall, with respect to this Agreement and the transactions contemplated hereby, make any public announcements, issue press releases or otherwise furnish information regarding this Agreement or
the transactions contemplated to any third party without the consent of the other parties, which consent shall not be unreasonably withheld, delayed or conditioned, except as required by Law, the
rules and regulations of the SEC or the New York Stock Exchange or unless such action is taken based on advice of counsel given in good faith. 

        17.9    Disclaimer.    Except as set forth in Article 4, the
Marcus Entities have not made any representation or warranty, either express or implied, concerning the subject matter of this Agreement and Buyer has not relied on any such further representation or
warranty. This Agreement shall not be governed by the warranties provided by Article 2 of the Uniform Commercial Code as adopted in any jurisdiction. 

82

 

        17.10    Knowledge.    Whenever the words "to the knowledge of the Marcus Entities," or words of similar import are
used in this Agreement, such term or terms shall mean the actual knowledge of Stephen H. Marcus, James R. Abrahamson, Douglas A. Neis, Jay Wolfe, Thomas F. Kissinger, Joy Trent, Victor Delgado, Ellen
Bennett, Carol Brauer, David Bedway, Alex Karason, Mark Johnson, Jim Essig, Jeff Tomachek, Dan Danielle, Jane Hoida, Craig Farrell, Charles Barcus, Kim Lueck and Jane Durment. 

        17.11    Forecasts; Memorandum; Due Diligence.    Prior to and during the negotiation of this Agreement, Goldman
Sachs & Co. prepared various projections, forecasts, budgets and the like relating to the Marcus Mid-Priced Lodging Businesses and their future revenues, earnings, cash flow and
other economic data, including the underlying assumptions and basis therefor (collectively, "Forecasts"). These Forecasts, together with certain other
information pertaining to the investment considerations, history, business, products and services, product development, market, industry and similar data of or relating to the Marcus Entities were set
forth in a confidential memorandum prepared by Goldman Sachs & Co. (the "Memorandum"). Buyer acknowledges and agrees as follows with respect to
the Forecasts and Memorandum (except, in all cases, the Bid Document Financial Statements) and the Marcus Entities: 

        17.11(a)    Buyer
has not relied, for any purpose, on the Forecasts or the Memorandum, or the Marcus Entities' or its agents' participation in the preparation thereof,
including, without limitation, in Buyer's determination to enter into this Agreement or to pay or deliver the Purchase Price to be paid in this Agreement; the Marcus Entities and their agents shall
have no responsibility or Liability relating in any way, directly or indirectly, for the Forecasts or the Memorandum, the participation of the Marcus Entities or their agents in their preparation or
the use or distribution thereof by Buyer; such Forecasts and the Memorandum shall not constitute representations or warranties of the Marcus Entities for purposes of this Agreement or otherwise; and 

        17.11(b)    The
Forecasts and the Memorandum include assumptions, estimates and projections about future results of operations of the Marcus Mid-Priced Lodging
Businesses and general business conditions that have been prepared by Goldman Sachs & Co. on behalf of the Marcus Entities and, as such, the Forecasts and the Memorandum are inherently
uncertain and the actual results of the Marcus Mid-Priced Lodging Businesses will vary, and may vary by material amounts, from those contained in the Forecasts and the Memorandum;  provided, however, the Marcus Entities represent and warrant to Buyer that the Marcus Entities had no
knowledge of any facts which would have reasonably led them to believe that, when issued, the Forecasts with respect to the Marcus Mid-Priced Lodging Businesses and the Memorandum with
respect to the Marcus Entities were misleading in any material respect; provided, however, that it is
understood and agreed
that the Memorandum has not been updated or amended since its issuance date and events and circumstances have changed since that date and further that such Forecasts are inherently highly speculative
and uncertain in nature and that there can be no assurance or guarantee that any future results projected therein will not be materially different than as set forth. 

        17.12    Buyer's Experience.    Buyer acknowledges that it, together with its representatives, have had an opportunity
to inspect the Marcus Records and Files, the Purchased Assets, the assets of Marcus and the Marcus Entities and the Properties, to ask questions of the officers and key employees of Marcus and the
Marcus Entities and to perform an adequate "due diligence" investigation of the Marcus Entities, the Joint Ventures and the Marcus Mid-Priced Lodging Businesses. Buyer is acquiring the
Marcus Mid-Priced Lodging Businesses subject hereto solely based upon its investigation of the Marcus Mid-Priced Lodging Businesses and the representations and warranties made
by the Marcus Entities in this Agreement and not in reliance upon any written or oral statements made by any other person (which statements, if made, have not been authorized by the Marcus Entities).
Buyer acknowledges and confirms that it has made an independent review and investigation of the Marcus 

83

 

Mid-Priced
Lodging Businesses; that it, either alone or with its financial advisors, has the necessary background and expertise to evaluate the same; it is thoroughly familiar with the
industry, and recognizes that it is an extremely competitive industry; that it has examined and considered in detail such information, documentation and financial statements and reports which it deems
necessary and material to such review and investigation; that it has had access to and the opportunity to inspect any and all records, instruments, documents, financial statements, reports and budgets
and other information of the Marcus Entities which it deemed necessary and material in such determination; that it has had the opportunity to ask questions of and receive answers to such questions
from Marcus and the Marcus Entities, and to obtain any additional information which it requested; that no written or oral statements were made or other financial projections or estimates furnished to
it by or on behalf of Marcus or the Marcus Entities as to future profitability of the Marcus Mid-Priced Lodging Businesses that have been relied upon by, or represented in that Agreement
to, the Buyer. 

        17.13    Entire Agreement.    This Agreement, the Ancillary Agreements and the Confidential Letter Agreement between
Buyer and Marcus dated the date hereof embody the entire agreement between the parties hereto with respect to the transactions contemplated herein, and there have been and are no agreements,
representations or warranties between the parties other than those set forth or provided for herein. 

        17.14    Counterparts; Facsimile Signatures.    This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same instrument. Signatures of the parties transmitted by facsimile shall be deemed to be their original
signatures for all purposes. 

        17.15    Severability.    Any term or provision of this Agreement that is invalid or unenforceable in any situation in
any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. 

        17.16    Headings.    The headings in this Agreement are inserted for convenience only and shall not constitute a part
hereof. 

        17.17    Construction.    The parties have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring
or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal, state, local, or foreign statute or Law shall be deemed also to refer to
all rules and regulations promulgated thereunder, unless the context requires otherwise. The word "including" shall mean including without limitation. 

        17.18    Incorporation of Schedules.    The Schedules identified in this Agreement are incorporated herein by
reference and made a part hereof. 

        17.19    Materiality Threshold.    The parties hereby agree and acknowledge that in no event shall the 17.5% threshold
used in Section 7.9(f), Section 10.1(a) or  Section 10.2(a) be deemed to constitute an
admission or indication as to materiality for any other purposes of this Agreement including, without
limitation, in determining whether there has been a Material Adverse Effect, a Property Material Adverse Effect or a Franchise Material Adverse Effect. 

[Signature
Page Follows] 

84

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

	BUYER:	 	 	 	 	 	 
	

LA QUINTA CORPORATION	
 	

 	
 	

 	
 	

 
	Tax Payer I.D.#:    95-3419438	 	 	 	 
	By: 	 	 	 	 	 	 	 	 
	 	 	/s/  FRANCIS W. CASH      
	 	 	 	 	 	 
	 	 	Name: Francis W. Cash	 	 	 	 	 	 
	 	 	Title: President and Chief Executive Officer	 	 	 	 	 	 
	
THE MARCUS ENTITIES:	
 	

 	
 	

 	
 	

 
	

BAYMONT INNS, INC.	
 	

WOODFIELD SUITES, INC.
	Tax Payer I.D. #:    39-1139847	 	Tax Payer I.D. #:    39-1905516
	By:	 	 	 	 	 	By:	 	 	 	 
	 	 	/s/  STEPHEN H. MARCUS      
	 	 	 	/s/  STEPHEN H. MARCUS      

	 	 	Name: Stephen H. Marcus	 	 	 	Name: Stephen H. Marcus
	 	 	Title: President	 	 	 	Title: President
	
MARCUS CONSID, LLC	
 	

MARCUS NON, LLC
	Tax Payer I.D. #:    39-1139844	 	Tax Payer I.D. #:    39-1139844
	
By:  The Marcus Corporation, Sole Member	
 	
By:  The Marcus Corporation, Sole Member
	
By:	
 	

 	
 	

 	
 	

By:	
 	

 	
 	

 
	 	 	/s/  STEPHEN H. MARCUS      
	 	 	 	/s/  STEPHEN H. MARCUS      

	 	 	Name: Stephen H. Marcus	 	 	 	Name: Stephen H. Marcus
	 	 	Title: President	 	 	 	Title: President
	
MARCUS FL, LLC	
 	

BAYMONT FRANCHISES INTERNATIONAL, LLC
	Tax Payer I.D. #:    39-1139844	 	Tax Payer I.D. #:    39-1556537
	By:  The Marcus Corporation, Sole Member	 	By:  Baymont Inns, Inc., Sole Member
	
By:	
 	

 	
 	

 	
 	

By:	
 	

 	
 	

 
	 	 	/s/  STEPHEN H. MARCUS      
	 	 	 	/s/  STEPHEN H. MARCUS      

	 	 	Name: Stephen H. Marcus	 	 	 	Name: Stephen H. Marcus
	 	 	Title: President	 	 	 	Title: President

S-1

 

	
BAYMONT PARTNERS, LLC	
 	

WOODFIELD SUITES HOSPITALITY CORPORATION
	Tax Payer I.D. #:    39-1367921	 	Tax Payer I.D. #:    39-1905517
	By:  Baymont Inns, Inc., Sole Member	 	 	 	 	 	 
	
By:	
 	

 	
 	

 	
 	

By:	
 	

 	
 	

 
	 	 	/s/  STEPHEN H. MARCUS      
	 	 	 	/s/  STEPHEN H. MARCUS      

	 	 	Name: Stephen H. Marcus	 	 	 	Name: Stephen H. Marcus
	 	 	Title: President	 	 	 	Title: President
	
WOODFIELD SUITES FRANCHISES INTERNATIONAL, INC.	
 	

MARCUS-ANDERSON PARTNERSHIP
	Tax Payer I.D. #:    36-4159896	 	Tax Payer I.D. #:    39-6447983
	 	 	 	 	 	 	By: Baymont Partners, LLC
	 	 	 	 	 	 	By: Baymont Inns, Inc., Sole Member
	
By:	
 	

 	
 	

 	
 	

By:	
 	

 	
 	

 
	 	 	/s/  STEPHEN H. MARCUS      
	 	 	 	/s/  STEPHEN H. MARCUS      

	 	 	Name: Stephen H. Marcus	 	 	 	Name: Stephen H. Marcus
	 	 	Title: President	 	 	 	Title: President
	
BAYMONT INNS HOSPITALITY LLC	
 	

 	
 	

 	
 	

 
	Tax Payer I.D. #:    39-1131375	 	 	 	 
	By:  Baymont Inns, Inc., Sole Member	 	 	 	 	 	 
	
By:	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 
	 	 	/s/  STEPHEN H. MARCUS      
	 	 	 	 	 	 
	 	 	Name: Stephen H. Marcus	 	 	 	 	 	 
	 	 	Title: President	 	 	 	 	 	 

S-2<Page>

                                                                    EXHIBIT 10.2

                                                                  EXECUTION COPY

J.P. MORGAN SECURITIES INC.                       CREDIT SUISSE FIRST BOSTON
270 Park Avenue                                   11 Madison Avenue, 22nd Floor
New York, New York 10017                          New York, New York  10010

JPMORGAN CHASE BANK
270 Park Avenue
New York, New York 10017

                                                                  June 30, 2004

                                  $500,000,000
                        SENIOR SECURED CREDIT FACILITIES
                                COMMITMENT LETTER

Charles River Laboratories International Inc.
251 Ballardvale Street
Wilmington, Massachusetts 01887

Attention: Thomas F. Ackerman
           Senior Vice President & Chief Financial Officer

Ladies and Gentlemen:

         Charles River Laboratories International Inc., a Delaware corporation
("HOLDINGS" or "YOU"), has advised J.P. Morgan Securities Inc. ("JPMORGAN"),
JPMorgan Chase Bank and Credit Suisse First Boston ("CSFB"; together with
JPMorgan Chase Bank, the "COMMITTING BANKS"; and together with JPMorgan and
JPMorgan Chase Bank, the "COMMITTING PARTIES") that it intends to acquire (the
"ACQUISITION") Inveresk Research Group, Inc., a Delaware corporation (the
"COMPANY"), in a transaction that will involve the merger of a wholly owned
subsidiary of Holdings with and into the Company, followed by the merger of the
resulting corporation with and into a second wholly owned subsidiary of
Holdings, with such second subsidiary surviving (such surviving subsidiary, the
"BORROWER"). In connection with such mergers, the common stock of the Company
will be converted into rights to receive shares of the common stock of Holdings
and aggregate cash consideration of approximately $570,400,000. You have also
advised us that you intend to finance such cash consideration and the fees and
expenses related to the Acquisition, and to refinance your existing credit
facilities and certain outstanding indebtedness of the Company, with, in part,
new senior secured credit facilities consisting of a term loan facility of
$350,000,000 and a revolving credit facility of $150,000,000 (the "CREDIT
FACILITIES"). A description of the sources and uses for the cash used for the
Acquisition and the related refinancings (collectively, the "TRANSACTION") are
described in the Sources and Uses Table attached as Schedule 1.

         JPMorgan and CSFB are pleased to advise you that they are willing to
act as joint lead arrangers and joint bookrunners for the Credit Facilities.

         Furthermore, each of JPMorgan Chase Bank and CSFB is pleased to advise
you of its commitment to provide 50% of the Credit Facilities upon the terms and
subject to the conditions set forth

<Page>

                                                                               2

or referred to in this commitment letter (the "COMMITMENT LETTER") and in the
Summary of Terms and Conditions attached hereto as Exhibit A (the "TERM SHEET").

         It is agreed that JPMorgan and CSFB will act as the joint lead
arrangers and joint bookrunners (in such capacities, the "ARRANGERS"), and that
JPMorgan Chase Bank will act as the sole administrative agent and CSFB will act
as the sole syndication agent, for the Credit Facilities. You agree that no
other agents, co-agents or arrangers will be appointed, no other titles will be
awarded and no compensation (other than that expressly contemplated by the Term
Sheet and the Fee Letter referred to below) will be paid in connection with the
Credit Facilities unless you and we shall so agree.

         We intend to syndicate the Credit Facilities to a group of financial
institutions (together with the Committing Banks, the "LENDERS") identified by
us in consultation with you. The Arrangers intend to commence syndication
efforts promptly, and you agree actively to assist the Arrangers in completing a
syndication satisfactory to them. Such assistance shall include (a) your using
commercially reasonable efforts to ensure that the syndication efforts benefit
materially from your existing lending relationships, (b) direct contact between
senior management and advisors of the Holdings and the Company and the proposed
Lenders, (c) assistance in the preparation of a Confidential Information
Memorandum and other marketing materials to be used in connection with the
syndication and (d) the hosting, with the Arrangers, of one or more meetings of
prospective Lenders.

         The Arrangers will manage all aspects of the syndication, including
decisions as to the selection of institutions to be approached and when they
will be approached, when their commitments will be accepted, which institutions
will participate, the allocation of the commitments among the Lenders and the
amount and distribution of fees among the Lenders, in each case in consultation
with you. To assist the Arrangers in their syndication efforts, you agree
promptly to prepare and provide to the Committing Parties all information with
respect to Holdings, the Company and the Transaction, including all financial
information and projections (the "PROJECTIONS"), as we may reasonably request in
connection with the arrangement and syndication of the Credit Facilities. At the
request of the Arrangers, Holdings agrees to assist in the preparation of a
version of the information package and presentation consisting exclusively of
information and documentation that is publicly available. You hereby represent
and covenant that (a) all information other than the Projections (the
"INFORMATION") that has been or will be made available to any Committing Party
by you or any of your representatives is or will be, when furnished and taken as
a whole, complete and correct in all material respects and does not or will not,
when furnished and taken as a whole, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
contained therein not materially misleading in light of the circumstances under
which such statements are made; PROVIDED, that with respect to Information
relating to the Company and its affiliates, such representation and covenant is
made to the best of your knowledge, and (b) the Projections that have been or
will be made available to any Committing Party by you or any of your
representatives have been or will be prepared in good faith based upon
reasonable assumptions at the time of delivery thereof. You understand that in
arranging and syndicating the Credit Facilities we may use and rely on the
Information and Projections without independent verification thereof.

         As consideration for the commitments and agreements of the Committing
Parties hereunder, you agree to pay the nonrefundable fees described in the Fee
Letter dated the date hereof and delivered herewith (the "FEE LETTER").

         The commitment of each Committing Bank and the agreements of each
Committing Party, hereunder are subject to (a) there not occurring any event,
development or circumstance that has had or could reasonably be expected to have
a material adverse effect on the business, operations,

<Page>

                                                                               3

property or condition (financial or otherwise) of Holdings and its subsidiaries
(which for this purpose shall include the Company and its subsidiaries), taken
as a whole, (b) such Committing Party not becoming aware after the date hereof
of any information or other matter (including any matter relating to financial
models and underlying assumptions relating to the Projections) (a "NEW MATTER")
affecting Holdings, the Company or the Transaction that in such Committing
Party's judgment is inconsistent in a material and adverse manner with any such
information or other matter disclosed to such Committing Party prior to the date
hereof, so long as such New Matter could reasonably be expected to have a
material adverse effect on the ability of the Company to repay the Credit
Facilities, (c) such Committing Party's satisfaction that prior to and during
the syndication of the Credit Facilities there shall be no competing offering,
placement or arrangement of any debt securities or bank financing by or on
behalf of Holdings, the Company or their respective subsidiaries, (d) your
having obtained a rating of the Credit Facilities from each of Standard and
Poor's and Moody's Investors Service, Inc., (e) the negotiation, execution and
delivery on or before March 31, 2005 of definitive documentation with respect to
the Credit Facilities satisfactory to such Committing Party and (f) the other
conditions set forth or referred to in the Term Sheet. The terms and conditions
of commitments hereunder and of the Credit Facilities are not limited to those
set forth herein and in the Term Sheet. Those matters that are not covered by
the provisions hereof and of the Term Sheet are subject to the approval and
agreement of the Committing Parties and you.

         You agree (a) to indemnify and hold harmless each Committing Party, its
affiliates and their respective officers, directors, employees, advisors, and
agents (each, an "INDEMNIFIED PERSON") from and against any and all losses,
claims, damages and liabilities to which any such indemnified person may become
subject arising out of or in connection with this Commitment Letter, the Credit
Facilities, the use of the proceeds thereof, the Transaction or any claim,
litigation, investigation or proceeding relating to any of the foregoing,
regardless of whether any indemnified person is a party thereto, and to
reimburse each indemnified person upon demand for any legal or other expenses
incurred in connection with investigating or defending any of the foregoing,
PROVIDED that the foregoing indemnity will not, as to any indemnified person,
apply to losses, claims, damages, liabilities or related expenses to the extent
(x) they are found by a final, non-appealable judgment of a court to arise from
the willful misconduct or gross negligence of such indemnified person or (y)
they result from breach by a Committing Party of any of its obligations
hereunder, and (b) to reimburse each Committing Party and its affiliates on
demand for all out-of-pocket expenses (including due diligence expenses,
syndication expenses, consultant's fees and expenses, travel expenses, and
reasonable fees, charges and disbursements of counsel) incurred in connection
with the Credit Facilities and any related documentation (including this
Commitment Letter, the Term Sheet, the Fee Letter and the definitive financing
documentation) or the administration, amendment, modification or waiver thereof.
No indemnified person shall be liable for any damages arising from the use by
unauthorized persons of Information or other materials sent through electronic,
telecommunications or other information transmission systems that are
intercepted by such persons or for any special, indirect, consequential or
punitive damages in connection with the Credit Facilities.

         You acknowledge that each Committing Party and its affiliates (the term
"Committing Party" as used below in this paragraph being understood to include
such affiliates) may be providing debt financing, equity capital or other
services (including financial advisory services) to other companies in respect
of which you may have conflicting interests regarding the Transaction and
otherwise. No Committing Party will use confidential information obtained from
you by virtue of the Transaction or its other relationships with you in
connection with the performance by such Committing Party of services for other
companies, and such Committing Party will not furnish any such information to
other companies. You also acknowledge that a Committing Party has no obligation
to use in connection with the Transaction, or to furnish to you, confidential
information obtained from other companies.

<Page>

                                                                               4

         This Commitment Letter shall not be assignable by you without the prior
written consent of each Committing Party (and any purported assignment without
such consent shall be null and void), is intended to be solely for the benefit
of the parties hereto and is not intended to confer any benefits upon, or create
any rights in favor of, any person other than the parties hereto and the
indemnified persons. This Commitment Letter may not be amended or waived except
by an instrument in writing signed by you and each Committing Party. This
Commitment Letter may be executed in any number of counterparts, each of which
shall be an original, and all of which, when taken together, shall constitute
one agreement. Delivery of an executed signature page of this Commitment Letter
by facsimile transmission shall be effective as delivery of a manually executed
counterpart hereof. This Commitment Letter and the Fee Letter are the only
agreements that have been entered into among us with respect to the Credit
Facilities and set forth the entire understanding of the parties with respect
thereto. This Commitment Letter shall be governed by, and construed in
accordance with, the laws of the State of New York.

         This Commitment Letter is delivered to you on the understanding that
neither this Commitment Letter, the Term Sheet or the Fee Letter nor any of
their terms or substance shall be disclosed, directly or indirectly, to any
other person except (a) to the officers, agents and advisors of Holdings and the
Company who are directly involved in the consideration of this matter or (b) as
may be compelled in a judicial or administrative proceeding or as otherwise
required by law (in which case you agree to inform us promptly thereof),
PROVIDED, that the foregoing restrictions shall cease to apply (except in
respect of the Fee Letter and its terms and substance) after this Commitment
Letter has been accepted by you.

         The reimbursement, indemnification and confidentiality provisions
contained herein and in the Fee Letter shall remain in full force and effect
regardless of whether definitive financing documentation shall be executed and
delivered and notwithstanding the termination of this Commitment Letter or any
commitment hereunder; PROVIDED, that your obligations under this Commitment
Letter, other than those arising under the fourth [co-agents], fifth
[syndication help], sixth [information and projections] and twelfth
[confidentiality] paragraphs hereof, shall automatically terminate and be
superseded by the provisions of the definitive documentation relating to the
Credit Facilities upon the initial funding thereunder, and you shall
automatically be released from all liability in connection therewith at such
time.

         If the foregoing correctly sets forth our agreement, please indicate
your acceptance of the terms hereof and of the Term Sheet and the Fee Letter by
returning to us executed counterparts hereof and of the Fee Letter not later
than 5:00 p.m., New York City time, on July 1, 2004. The commitments and
agreements of the Committing Parties hereunder will expire at such time in the
event we have not received such executed counterparts in accordance with the
preceding sentence. In addition, such commitments and agreements shall terminate
upon receipt by us of written notice from you that you are electing to terminate
such commitments, such termination to be effective as of the date specified in
such notice; PROVIDED that the reimbursement and indemnification provisions
contained herein shall survive any such termination.

<Page>

                                                                               5

         We are pleased to have been given the opportunity to assist you in
connection with this important financing.

                                     Very truly yours,

                                     J.P. MORGAN SECURITIES INC.

                                     By: /s/ Cornelius J. Droogan
                                         --------------------------------------
                                         Name:  Cornelius J. Droogan
                                         Title:    Vice President

                                     JPMORGAN CHASE BANK

                                     By: /s/ John C. Riordan
                                         --------------------------------------
                                         Name: John C. Riordan
                                         Title: Vice President

                                     CREDIT SUISSE FIRST BOSTON,
                                     acting through its Cayman Islands Branch

                                     By: /s/ James P. Moran
                                         --------------------------------------
                                         Name:  James P. Moran
                                         Title: Director

                                     By: /s/ Denise L. Alvarez
                                         --------------------------------------
                                         Name: Denise L. Alvarez
                                         Title: Associate

<Page>

                                                                               6

Accepted and agreed to as of the date first written above by:

CHARLES RIVER LABORATORIES INTERNATIONAL INC.

By: /s/ James C. Foster
    --------------------------------
     Name: James C. Foster
     Title: Chairman, Vice President and CEO

<Page>

                                                                     Schedule 1

                             SOURCES AND USES TABLE
                                  (in million)

<Table>
<Caption>
SOURCES                                                                    USES
<S>                                     <C>             <C>                                <C>
Cash on hand........................    $     223.2     Cash Consideration..............   $    570.4
Revolving Facility*.................           90.3     Refinancings....................         53.1
Term Facility.......................          350.0     Fees and Expenses...............         40.0
                                        -----------                                        ----------
                                        $     663.5                                        $    663.5
                                        ===========                                        ==========
</Table>

-----------------------------------
* Remaining balance of $150,000,000 Revolving Facility will be available for
  letters of credit or be unused on the Closing Date.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]