Document:

EXHIBIT 10.37

 

FORM OF PURCHASE 

AND SALE AGREEMENT – 

NOBLE PORTFOLIO/ARC

 

 

HOTEL PURCHASE AND SALE AGREEMENT

 

by and between

 

[Seller:
___________], a Delaware limited liability company, as Seller

 

and

 

AMERICAN REALTY CAPITAL HOSPITALITY PORTFOLIO
NBL, LLC, a Delaware limited liability company, as Buyer 

 

Property Name: [Property Name: _____________________]

Location: [County: _________________] County,
State of [State: _________________]

 

Effective Date: June ___, 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	Article I Deadlines and Definitions	1
	1.1	Deadlines	1
	1.2	Definitions	1
	 	 	 
	Article II Purchase and Sale	6
	2.1	Land; Improvements	6
	2.2	Personal Property	6
	2.3	Contracts, Equipment Leases, and Space Leases	6
	2.4	Bookings	7
	2.5	Intangible Hotel Assets; Computer Systems	7
	2.6	Excluded Property	7
	2.7	Certain Property Owned by Operating Tenant	8
	 	 	 
	Article III Purchase Price	8
	3.1	Purchase Price	8
	3.2	Allocation of Purchase Price	9
	 	 	 
	Article IV Seller’s Representations, Warranties and Covenants	9
	4.1	Good Standing	9
	4.2	Due Authorization	10
	4.3	No Violations or Defaults	10
	4.4	Litigation	10
	4.5	Condemnation Actions	10
	4.6	Contracts	10
	4.7	Equipment Leases	11
	4.8	Management and Franchise Agreements	11
	4.9	Space Leases	11
	4.10	Intentionally Omitted.	12
	4.11	Permits	12
	4.12	Insurance Policies	12
	4.13	Notices of Violations	12
	4.14	Purchase Options	12
	4.15	Labor and Employment Matters; ERISA	13
	4.16	Bankruptcy	13
	4.17	OFAC; Money Laundering	13
	4.18	Seller Is Not a “Foreign Person”	13
	4.19	Taxes	13
	4.20	Budgets	14
	4.21	Financial Information	14
	4.22	Personal Property	14
	4.23	Intentionally Omitted.	14
	4.24	Environmental Matters	14
	4.25	Designated Persons	14
	4.26	Seller’s Representations and Warranties Deemed Modified.	14

 

    	 

    	 

    

 

	Article V Buyer’s Representations, Warranties and Covenants	16
	5.1	Good Standing	16
	5.2	Due Authorization	16
	5.3	No Violations or Defaults	16
	5.4	Litigation	16
	5.5	OFAC; Money Laundering	16
	 	 	 
	Article VI Closing	17
	6.1	Closing	17
	6.2	Costs	17
	 	 	 
	Article VII Actions Pending Closing; Feasibility Period	18
	7.1	Conduct of Business; Maintenance and Operation of Property	18
	7.2	Title Insurance	20
	7.3	Survey	22
	7.4	Inspection; Due Diligence Period	22
	 	 	 
	Article VIII Conditions Precedent to Buyer’s Obligations at Closing	24
	8.1	Representations and Warranties	24
	8.2	Covenants of Seller	25
	8.3	Title	25
	8.4	Seller Deliveries	25
	8.5	No Injunction	25
	8.6	Termination of Management Agreement and Operating Lease	25
	8.7	Termination of Franchise Agreement; New Franchise Agreement	25
	8.8	Failure of Condition	25
	 	 	 
	Article IX Conditions Precedent to Seller’s Obligations at Closing	26
	9.1	Representations and Warranties	26
	9.2	Buyer Deliveries	26
	9.3	Covenants of Buyer	26
	9.4	Termination of Franchise Agreement; New Franchise Agreement	26
	9.5	Failure of Condition	26
	 	 	 
	Article X Closing Deliveries	26
	10.1	Deed	27
	10.2	Bill of Sale	27
	10.3	Assignment and Assumption Agreement	27
	10.4	FIRPTA Certificate	27
	10.5	Possession; Books and Records, Keys	27
	10.6	Purchase Price	27
	10.7	Title Affidavit	27
	10.8	Seller Authority	27
	10.9	Seller’s Certificate	27
	10.10	Buyer’s Certificate	28
	10.11	Vehicle Bills of Sale	28
	10.12	Closing Statement	28

 

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	10.13	Estoppel Certificates	28
	10.14	Terminations of Management Agreement and Operating Lease	28
	10.15	Termination of Franchise Agreement	28
	10.16	Terminations of Excluded and Non-Assignable Contracts and Equipment Leases	28
	10.17	Interim Liquor Agreement	28
	10.18	Other Documents	28
	 	 	 
	Article XI Default	29
	11.1	Buyer’s Default	29
	11.2	Seller’s Default	29
	 	 	 
	Article XII Survival; Indemnification Obligations; Additional Obligations; As-Is; Franchise	30
	12.1	Generally	30
	12.2	Survival and Limitations	30
	12.3	Agreement to Indemnify	31
	12.4	Notice and Cooperation on Indemnification	31
	12.5	Liquor License	32
	12.6	PROPERTY SOLD “AS IS”	32
	12.7	LIMITATION ON REPRESENTATIONS AND WARRANTIES	33
	12.8	New Franchise Agreement	35
	12.9	Hotel Employees	36
	 	 	 
	Article XIII Casualty or Condemnation	37
	13.1	Notice to Buyer	37
	13.2	Risk	38
	 	 	 
	Article XIV Apportionments	38
	14.1	Apportionments	38
	14.2	Room Revenue; Receivables and Payables and Inventory	39
	14.3	Food and Beverage Revenue; Vending Machine Revenue	39
	14.4	Guests’ Property	40
	14.5	Gift Shop Operations	40
	14.6	Employee Compensation	40
	14.7	Inventories	40
	14.8	Taxes	40
	14.9	Utility Charges	41
	14.10	Bookings and Vouchers	41
	14.11	Cash	41
	14.12	Accounting	41
	 	 	 
	Article XV Miscellaneous	41
	15.1	Assignment	41
	15.2	Applicable Law	42
	15.3	Headings; Exhibits	42
	15.4	Notices	42
	15.5	Waiver	43

 

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	15.6	Partial Invalidity	43
	15.7	Entire Agreement	43
	15.8	Time is of the Essence	43
	15.9	Waiver of Jury Trial	43
	15.10	Counterparts	43
	15.11	Brokerage	43
	15.12	Construction	44
	15.13	Attorneys’ Fees	44
	15.14	Confidentiality and Public Announcements	44
	15.15	Time for Performance	45
	15.16	Further Assurances	45
	15.17	No Third-Party Beneficiaries	45
	15.18	Section 1031 Exchanges	45
	15.19	Updated Financials	45

 

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HOTEL PURCHASE AND SALE AGREEMENT

 

THIS HOTEL PURCHASE AND SALE AGREEMENT
(this “Agreement”) is made to be effective as of June ___, 2015 (the “Effective Date”), by
and between [Seller: ___________], a Delaware limited liability company (“Seller”)
and AMERICAN REALTY CAPITAL HOSPITALITY PORTFOLIO NBL, LLC, a Delaware limited liability company (“Buyer”).

 

RECITALS:

 

WHEREAS, Seller
is the owner of the Land (as hereinafter defined) on which is operated a ______-unit hotel commonly known as the [______________________]
located at [_______________________] (the “Hotel”) and the other Property (as hereinafter defined); and,

 

WHEREAS, Buyer desires
to acquire the Property from Seller for the purchase price of [Purchase Price: _______________________ and No/100 Dollars] ([Purchase
Price $: $_______________________]) (“Purchase Price”) and Seller desires to sell and convey the Property to
Buyer for the Purchase Price and upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE,
for and in consideration of the promises, covenants, representations and warranties hereinafter set forth, the sum of Ten Dollars
($10.00) and other good and valuable consideration in hand paid by Seller to Buyer and by Buyer to Seller upon the execution of
this Agreement, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties hereto
hereby agree as follows:

 

Article
I

Deadlines and Definitions

 

1.1           Deadlines.
Wherever used in this Agreement, the following terms shall have the meanings set forth below:

 

“Closing
Deadline” shall mean 3:00 p.m. local Atlanta, Georgia time on or before [_________________] [NTD: TO BE DETERMINED
BY DESIGNATED TRANCHE], subject to extension in accordance with the terms hereof and/or the Side Letter.

 

“Due
Diligence Deadline” shall mean 5:00 p.m. local Atlanta, Georgia time on the date which is the earlier of (i) thirty
(30) Business Days after the Effective Date and (ii) July 15, 2015.

 

1.2           Definitions.
 In addition, wherever used in this Agreement, the terms set forth on Schedule A shall have the meanings set
forth on Schedule A.

 

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Article
II

Purchase and Sale

 

Seller agrees to convey,
transfer and assign, and Buyer agrees to acquire, accept and assume the following, on the terms, conditions and provisions set
forth in this Agreement:

 

2.1           Land;
Improvements. All of the fee simple interests in those certain tracts or parcels of land more particularly described on
Exhibit A and attached hereto, together with all strips and gores, rights of way, privileges and appurtenances pertaining
thereto, including all right, title and interest of Seller, if any, in and to the land lying in the bed of any street or highway
in front of or adjoining the land to the center line thereof, all water and mineral rights, entitlements, development rights and
all easements, rights and other interests appurtenant thereto (collectively, the “Land”). All real property
improvements to the Land, including, but not limited to, all buildings and structures, paving, landscaping, lighting and signs
located on the Land, and all mechanical, heating, air conditioning, plumbing, electrical and ventilating systems and all other
fixtures and equipment servicing the Land and which constitute real property under applicable Laws (collectively, the “Improvements”).
The Land and the Improvements are sometimes referred to hereinafter together as the “Real Property.”

 

2.2           Personal
Property. The following personalty of Seller (collectively the “Personal Property”): (a) all furniture,
furnishings, fixtures, vehicles, rugs, mats, carpeting, wall and window coverings, window treatments, artwork, appliances, kitchen,
restaurant and bar equipment, devices, engines, telephone and other communications equipment, televisions and other video equipment,
lighting all other equipment and tangible personal property located or to be located in the Hotel (the “FF&E”),
(b) all items included within the definition of “Property and Equipment” under the Uniform System of Accounts and used
in the operation of the Hotel, including, without limitation, linen, china, glassware, tableware, uniforms and similar items, subject
to such depletion and replacement prior to the Closing Date as provided for in accordance with Section 7.1 of this Agreement
(the “Fixed Asset Supplies”); (c) all “Inventories” as defined in the Uniform System of Accounts
and used in the operation of the Hotel, such as provisions in storerooms, refrigerators, pantries, and kitchens, beverages in wine
cellars and bars, other merchandise and retail goods intended for sale or resale, fuel, mechanical supplies, stationery, guest
supplies, maintenance and housekeeping supplies and other expensed supplies and similar items, whether in opened or unopened containers
(the “Inventories”), provided, however, that to the extent that any applicable Law prohibits the
transfer of alcoholic beverages from Seller to Buyer, such beverages shall not be considered a part of Inventories but subject
to Section 12.5; and (d) to the extent in Seller’s possession or control, all surveys, architectural, consulting and
engineering blueprints, plans and specifications, if any, related to the Hotel, together with all books and records related to
the Hotel, but excluding the Excluded Property (as hereinafter defined).

 

2.3           Contracts,
Equipment Leases, and Space Leases. All written service, maintenance, equipment leases, licensing, concession, and other
contracts or agreements related to the ownership, maintenance or operation of the Hotel which are held by Seller or by an Affiliate
of Seller or by Operating Tenant or by Hotel Manager or an Affiliate of Hotel Manager on behalf of Seller in connection with the
Hotel, but excluding the Operating Lease, Management Agreement and Franchise Agreement (the “Contracts”) which
Contracts are identified on Exhibit 4.6 (but with no representation by Seller that all Contracts are identified thereon)
[NTD: FOR MONTEREY ONLY:, the Labor Agreement, including any pension plan established thereunder]; all leases, and
any amendments thereto, of personal property located at, or used in the operation of, the Hotel which are held by Seller or by
an Affiliate of Seller or by Hotel Manager or an Affiliate of Hotel Manager on behalf of Seller in connection with the Hotel (the
“Equipment Leases”); and, if any, all leases, and other occupancy agreements, which provide for the use or occupancy
of space or facilities on or relating to the Hotel, including, without limitation, for antenna sites and related equipment as identified
on Exhibit 4.9 and all guaranties thereof, (the “Space Leases”), all as in effect as of the Effective
Date or entered into subsequent to the Effective Date in conformity with the provisions of this Agreement.

 

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2.4           Bookings.
All bookings, reservations, commitments or other agreements for guest, conference and banquet rooms or other facilities at the
Hotel (the “Bookings”) as of the Closing Date, together with all deposits held by Seller with respect thereto.

 

2.5           Intangible
Hotel Assets; Computer Systems. To the extent assignable, all rights of Seller or Operating Tenant to electronic files,
data and information, software licenses, internet domain names, URLs and websites, telephone and facsimile numbers, customer and
supplier lists and files, goodwill of Seller related to the Hotel, trademarks, servicemarks, logos, Permits, any unexpired guaranties
or warranties, signage rights, and other items of intangible personal property relating to the ownership or operation of the Hotel
and owned by Seller or Operating Tenant (the “Intangible Hotel Assets”), and all assignable rights of Seller
or Operating Tenant to any computer hardware, telecommunications and information technology systems located at the Hotel, and all
computer software (subject to the terms of the applicable license agreement) used at the Hotel (the “Computer Systems”;
together with, the Hotel, Real Property, Personal Property, Contracts, Equipment Leases, Space Leases, Bookings and Intangible
Hotel Assets are collectively, the “Property”).

 

2.6           Excluded
Property. Notwithstanding anything to the contrary set forth in Sections 2.1 – 2.5 above, the property, assets, rights
and interests set forth below (the “Excluded Property”) shall not be transferred, assigned or conveyed to Buyer,
and shall be excluded from the Property:

 

(a)          Cash.
Except as otherwise expressly provided herein, all cash on deposit in any house bank, operating account or other account or reserve
(including, without limitation, any seasonal reserves and FF&E reserves), maintained in connection with the Hotel, together
with any and all credit card charges, checks and other instruments which Seller has submitted for payment as of the Closing;

 

(b)          Accounts
Receivable. All Accounts Receivable, other than the Guest Ledger;

 

(c)          Third-Party
Property. Any and all fixtures, personal property or intellectual property owned by or proprietary to (i) the lessor under
any Equipment Leases, (ii) the supplier, vendor, licensor or other party under any Contracts, (iii) the tenants under any
Space Leases, (iv) any Hotel Employee, (v) any guest or customer of the Hotel, (vi) Hotel Manager and (vii) Franchisor
pursuant to the Franchise Agreement;

 

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(d)          Hotel
Guest Data. Hotel Guest Data and Information in any database maintained by Franchisor or its Affiliates. Notwithstanding the
foregoing, it is contemplated that after Closing the Hotel Guest Data and Information will continue to be utilized in the operation
of the Hotel pursuant to and subject to the terms of any New Franchise Agreement with respect to the Hotel;

 

(e)          Confidential
Materials and Personnel Files. All Confidential Materials and personnel files for Hotel Employees; and

 

(f)          National/Regional
Contracts. Master service agreements pursuant to which goods, services, licenses or other items are provided to other hotels
which are operated by Hotel Manager (or its affiliates), in addition to the Hotel shall be terminated by Hotel Manager at Closing
with respect to the Hotel as such agreements are identified on Exhibit 4.6, at Seller’s cost and expense without any
obligation to replace the property subject thereto, if any.

 

(g)          Other
Contracts. Any terminable Contract and Equipment Lease which Buyer elects not to assume by notice to Seller given on or prior
to the Due Diligence Deadline, which Contracts and Equipment Leases Seller shall terminate at or prior to Closing. The cost to
terminate any such Contract or Equipment Lease shall be split between Seller and Buyer, subject to the limitations in the Side
Letter. In the event that a Contract or Equipment Lease is not terminable in accordance with its terms and Buyer requests that
such Contract or Equipment Lease be terminated, Seller will use commercially reasonable efforts to negotiate a mutually agreeable
fee in order to effectuate a termination and any such fee will be split between Seller and Buyer, subject to the limitations in
the Side Letter.

 

2.7           Certain
Property Owned by Operating Tenant. Notwithstanding anything to the contrary contained herein, the parties acknowledge
and agree that (a) prior to the Effective Date, Seller entered into an Operating Lease with Operating Tenant, (b) Operating Tenant,
rather than (or in addition to) Seller may have rights, title and interests in and to some of the Property (the “Operating
Tenant Owned Property”), (c) Seller shall cause Operating Tenant to transfer all of its right, title and interest in
and to such Operating Tenant Owned Property to Buyer at the Closing and (d) Operating Tenant shall have no liability for or as
a result of any default or breach by Seller of any of Seller’s representations, warranties and/or obligations hereunder.

 

Article
III

Purchase Price

 

3.1           Purchase
Price. The Purchase Price, subject to the prorations and credits set forth herein, shall be due and payable as follows:

 

(a)          Deposit.
Within three (3) Business Days after the Effective Date, Buyer shall make the Initial Deposit, in immediately available
funds, with Escrow Agent. If Buyer does not deliver the Initial Deposit to the Escrow Agent within three (3) Business Days following
the Effective Date, Seller shall have the right to Terminate this Agreement by giving written notice to Buyer, and neither party
shall thereafter have any further liability to the other under this Agreement except as otherwise specifically provided herein.
In addition, no later than two (2) Business Days after the Due Diligence Deadline (unless this Agreement is sooner Terminated
in accordance with the terms hereof), Buyer shall make the Second Deposit, in immediately available funds, with Escrow Agent. Upon
Closing, the Deposit shall be applied to the Purchase Price. If Buyer Terminates this Agreement on or before the Due Diligence
Deadline or Buyer otherwise terminates this Agreement in accordance with any right to terminate expressly granted to Buyer by the
terms of this Agreement, then Escrow Agent shall promptly return the Initial Deposit, and the Second Deposit, as applicable,
to Buyer. Except as expressly otherwise set forth herein, after the Due Diligence Deadline, the Deposit shall be non-refundable
to Buyer, but shall be applied against the Purchase Price on the Closing Date and shall otherwise be held and delivered by Escrow
Agent in accordance with the escrow instructions executed by Seller, Buyer and Escrow Agent (the “Escrow Instructions”)
substantially in the form attached hereto as Exhibit B.

 

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(b)          Remainder
of Purchase Price. At Closing, Buyer shall pay to Escrow Agent, to be released to Seller at the Closing, an amount equal to
the difference between (i) the Purchase Price, and (ii) the amount of the Deposit previously or simultaneously paid to
Seller by Escrow Agent, subject to the credits, prorations and adjustments set forth herein, in immediately available funds by
federal reserve bank wire transfer to such account and bank as Escrow Agent shall designate in writing to Buyer on or prior to
Closing.

 

3.2           Allocation
of Purchase Price. Seller and Buyer shall cooperate with each other in good faith to arrive at a mutually acceptable allocation
of the Purchase Price among the Hotel, the Personal Property and other customary items either party hereto may request to be allocated
(the “Allocation”), and if agreed upon such Allocation shall be deemed attached hereto as Exhibit 3.2.
If, after good faith negotiations, the Allocation cannot be agreed upon prior to the Closing Date, each party may use its own determination
and bear any consequences related thereto and the allocation of the party responsible for payment of transfer taxes pursuant to
and in accordance with Section 6.2 shall be utilized in calculating transfer, sales and similar taxes and related filings
under this Agreement. If the parties are able to agree upon an Allocation, Seller and Buyer agree to (i) be bound by the Allocation,
and (ii) act in accordance with the Allocation and cooperate in the preparation of financial statements and filing of all
tax returns.

 

Article
IV

Seller’s Representations, Warranties and Covenants 

 

In order to induce Buyer
to enter into this Agreement and to consummate the Transaction contemplated hereby, Seller represents and warrants to Buyer as
of (i) the Effective Date and (ii) unless expressly related to an earlier date and subject to modifications expressly permitted
by this Agreement, the Closing Date, as follows:

 

4.1           Good
Standing. Seller is a limited liability company duly organized, validly existing and in good standing under the Laws of
the State of Delaware, is authorized to conduct the business in which it is now engaged, and is duly qualified and in good standing
to conduct its business in the jurisdiction where the Hotel is located. [NTD: Noble I Atlanta OP Land Co, LLC is a Georgia entity]

 

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4.2           Due
Authorization. The execution, delivery and performance of this Agreement and the consummation of the Transaction contemplated
hereby have been duly and validly authorized by all requisite limited liability company actions of Seller, none of which actions
have been modified or rescinded, and all of which actions are in full force and effect. This Agreement and the closing documents,
when executed and delivered by Seller, will constitute valid and binding obligations of Seller, enforceable against Seller in accordance
with its terms, subject only to applicable bankruptcy, insolvency and similar laws and equitable principles affecting the rights
of creditors generally.

 

4.3           No
Violations or Defaults. The execution, delivery and performance of this Agreement and the closing documents and the consummation
by Seller of the Transaction contemplated hereby will not (a) violate any Law or any order of any court or governmental authority
with proper jurisdiction binding against Seller or its assets; (b) result in a breach or default under any provision of the organizational
documents of Seller; (c) conflict with, breach, result in a default (or, to Seller’s knowledge, an event which with notice
and passage of time or both would reasonably be expected to constitute a default) or violate any bond, note or other instrument
of indebtedness, indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument to which Seller and/or
an Affiliate of Seller is a party or by which it, they or the Property is bound (except with respect to the termination of the
Franchise Agreement on the terms and conditions provided for in this Agreement and any current mortgage or similar loan documents
to be removed prior to or simultaneously with Closing); (d) require any consent or approval or vote that has not been taken or
given, or as of the Closing Date shall not have been taken or given; (e) require any consent, approval, order, waiver, authorization,
registration or declaration to be obtained by Seller from, or require any notice or filing to be given by Seller to or made by
Seller with, any governmental authority or other person that has not been obtained, given or made, or as of the Closing Date shall
not have been obtained, given or made; or (f) result in or require the imposition of any lien, claim, or demand upon any of the
Property. Notwithstanding the foregoing, Seller makes no representations or warranty (i) regarding the assignability of any particular
Permit, Equipment Lease or Contract, or (ii) as to whether the consent or approval of any governmental authority (as to Permits)
or any third parties (as to Equipment Leases and Contracts) is required for the assignment of such documents, provided, however,
that, upon Buyer’s request, Seller shall use commercially reasonable efforts to obtain such assignments, consents and approvals.

 

4.4           Litigation.
Except as set forth on Exhibit 4.4, as of the Effective Date, Seller has received no written notice of any litigation, investigations,
action, arbitration or other proceedings that remain pending against Seller, Hotel Manager or Franchisor affecting any portion
of the Property, nor does Seller have any knowledge that any such litigation, investigations, action, arbitration or other proceedings
are pending or threatened.

 

4.5           Condemnation
Actions. As of the Effective Date, there are no pending or, to Seller’s knowledge, threatened condemnation or eminent
domain actions or proceedings with respect to the Property or any part thereof.

 

4.6           Contracts.
All Material Contracts (which does not include the Operating Lease, Management Agreement, the Franchise Agreement, the Equipment
Leases and the Space Leases), as of the Effective Date, are listed on Exhibit 4.6 attached hereto and there are no other
Material Contracts related to the Property. To Seller’s knowledge, Seller has made available to Buyer prior to the Effective
Date (or shall make available within five (5) Business Days of the Effective Date) true, complete and correct copies of each such
Material Contract, except as expressly noted on Exhibit 4.6. All such Material Contracts are in writing, and to Seller’s
knowledge are in full force and effect, and, to Seller’s knowledge, there are no defaults or events that with notice or the
passage of time or both, would constitute a default by Seller under any such Material Contract, nor by any other party thereto.
Neither Seller nor, to Seller’s knowledge, Hotel Manager has received or delivered written notice of a termination under
any such Material Contract that has not been retracted.

 

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4.7           Equipment
Leases. All Material Equipment Leases, as of the Effective Date, are listed on Exhibit 4.7 attached hereto and there
are no other Material Equipment Leases related to the Property. To Seller’s knowledge, Seller has made available prior to
the Effective Date (or shall make available within five (5) Business Days of the Effective Date) to Buyer true, complete and correct
copies of all Material Equipment Leases, except as expressly noted on Exhibit 4.7. All such Material Equipment Leases are
in writing, and to Seller’s knowledge are in full force and effect, and, to Seller’s knowledge, there are no defaults
or events that with notice or the passage of time or both, would constitute a default by Seller under any such Material Equipment
Lease, nor by any other party thereto. Neither Seller nor, to Seller’s knowledge, Hotel Manager has received or delivered
written notice of a termination under any Material Equipment Lease that has not been retracted.

 

4.8           Management
and Franchise Agreements. There are no existing management contracts or franchise agreements relating to the Property other
than (i) the Management Agreement and (ii) the Franchise Agreement, and no other person or entity provides management services
to the Property (except as disclosed in Contracts or as subcontracted by the Hotel Manager). Seller has made available prior to
the Effective Date (or shall make available within five (5) Business Days of the Effective Date) to Buyer true, complete and correct
copies of the Management Agreement and the Franchise Agreement. To Seller’s knowledge, as of the Effective Date, there are
no defaults or events that with notice or the passage of time or both, would constitute a default by Seller under the Franchise
Agreement, nor by any other party thereto. Seller has not received or delivered written notice of a termination under the Management
Agreement or the Franchise Agreement that has not been retracted. Except as set forth on Exhibit 4.8 (which Exhibit shall
include a copy of any such notice), as of the Effective Date, Seller has not received any written notice from Franchisor that the
Hotel is not in compliance with Franchisor’s quality assurance or similar programs and has been placed in Franchisor’s
“Yellow Zone” or “Red Zone” or similar Franchisor designation.

 

4.9           Space
Leases. All Space Leases affecting all or any portion of the Property are listed on Exhibit 4.9 attached hereto
and there are no other Space Leases related to the Property. To Seller’s knowledge, Seller has made available prior to the
Effective Date (or shall make available within five (5) Business Days of the Effective Date) to Buyer true, complete and correct
copies of the Space Leases, except as expressly set forth on Exhibit 4.9. All such Space Leases are in writing, and to Seller’s
knowledge are in full force and effect and, to Seller’s knowledge, there are no material defaults or events that with notice
or the passage of time or both, would constitute a material default by Seller under any such Space Leases, nor by any other party
thereto. Neither Seller nor, to Seller’s knowledge, Hotel Manager has received or delivered written notice of a termination
under any Space Lease that has not been retracted.

 

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4.10         Intentionally
Omitted. 

 

4.11         Permits.
Neither Seller, nor to Seller’s knowledge, Hotel Manager has received any written notice from any applicable governmental
authority, nor does Seller have any knowledge (i) of any violation, default, intended or threatened non-renewal, suspension or
revocation of any of the material licenses (including the Liquor License), permits, approvals and certificates issued by any governmental
authority and used in the operation of the Hotel (the “Permits”), the loss of which would have a material adverse
effect on the present use and occupancy of the Hotel, or (ii) that the Hotel lacks any material permits or licenses necessary for
the present use and occupancy of the Hotel. To Seller’s knowledge, prior to the Effective Date (or shall make available within
five (5) Business Days of the Effective Date) Seller has made available to Buyer a true, complete and correct copy of all material
Permits and the Liquor License. To Seller’s knowledge, all material Permits, including the Liquor License, are in full force
and effect. To Seller’s knowledge, no event has occurred that, with or without notice or the lapse of time or both, would
reasonably be expected to result in the revocation, suspension, lapse or limitation of any of any material Permits (but specifically
excluding the consummation of the Transaction contemplated hereby). For the purpose of this Section 4.11, a “material”
permit shall mean any Permit the loss of which would result in (A) a material adverse effect on Buyer obtaining a replacement to
or transfer of such Permit upon the consummation of the Transaction contemplated herein or (B) an inability to operate the Hotel
substantially as operated on the Effective Date, and shall include without limitation the Liquor License.

 

4.12         Insurance
Policies. Attached hereto as Exhibit 4.12 are certificate(s) of insurance evidencing the insurance policies covering
the Property (each, an “Insurance Policy”) as of the Effective Date. Seller has not received any written notice
from any insurance company providing insurance pursuant to the Insurance Policies (i) that would reasonably be expected to materially
and adversely affect the insurability of the Property, (ii) requiring the performance of work or alteration to the Property which
has not been performed or (iii) irrevocably canceling any such Insurance Policy.

 

4.13         Notices
of Violations. Except as set forth on Exhibit 4.13, neither Seller nor, to Seller’s knowledge, Hotel Manager
has received any written notice of any violation of Law that would have a material adverse effect on the operation of the Hotel
that has not been cured prior to the Effective Date.

 

4.14         Purchase
Options. Seller has not granted, nor is Seller subject to, any unsatisfied purchase options, rights of first offer, rights
of first refusal or similar rights in favor of a third party applicable to the sale of the Hotel contemplated to Buyer.

 

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4.15         Labor
and Employment Matters; ERISA. Seller does not employ or retain any persons (including independent contractors other than
independent contractors hired pursuant to a Contract). Any employees and/or independent contractors (other than independent contractors
hired pursuant to a Contract) of the Hotel and/or persons who provide services with respect to the Hotel are employed and/or retained,
as the case may be, by the Hotel Manager under the Management Agreement. Neither Seller nor Hotel Manager is a party to any written
employment agreements with respect to the Property that would be binding on Buyer after Closing. Neither Seller nor Hotel Manager
is a party to, nor has been a party to any union or collective bargaining agreement with any labor organization with respect to
the Hotel Employees. [NTD: FOR MONTEREY: The only collective bargaining agreement or union contract in effect for the Hotel
is the Labor Agreement. Except for the Labor Agreement, the Fund and the Plan, neither the Hotel nor Seller is a party to or otherwise
bound by any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization.]
To Seller’s knowledge, as of the Effective Date, there are no threatened in writing, existing or pending (i) organizing efforts;
(ii) union representation petitions; (iii) labor strike, dispute, walkout, work stoppage, slow down or lockout. Neither Seller
nor the Hotel Manager is a party to, or otherwise bound by, any consent decree with any Governmental Authority relating to Hotel
Employees or any persons who provide services with respect to the Hotel. To Seller’s knowledge, neither Seller nor Hotel
Manager have incurred any liability under the Worker Adjustment and Retraining Notification Act of 1988 or similar state and local
Laws within the last six months which remain unsatisfied. [NTD: FOR MONTEREY: Other than the Plan and the Fund,]
There are no (i) employee pension benefit plans subject to Title IV of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”) or Section 412, 430 or 436 of the Code; (ii) "multiemployer plans" (as defined in
Section 3(37) of ERISA); (iii) multiple employer plans as defined in Section 413(c) of the Code; or (iv) multiple employer welfare
arrangements as defined in Section 3(40) of ERISA with respect to the Hotel or any Employees who performs services with respect
to the Hotel. Seller has no obligation or liability (contingent or otherwise) with regard to any employee benefit plan covering
Hotel Employees, including any such obligation or liability as a member of a controlled group or an affiliated service group (within
the meaning of Code Section 414(b), 414(c) or 414(m)).

 

4.16         Bankruptcy.
No Act of Bankruptcy has occurred with respect to the Seller.

 

4.17         OFAC;
Money Laundering. Neither Seller nor any of its Affiliates, are acting, directly or indirectly, for or on behalf of any
person named by the United States Treasury Department as a Specifically Designated National and Blocked Person, or for or on behalf
of any person designated in Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism. Seller is
not engaged in the Transaction contemplated by this Agreement directly or indirectly on behalf of, or facilitating such transaction
directly or indirectly on behalf of, any such person.

 

4.18         Seller
Is Not a “Foreign Person”. Seller is not a “foreign person” within the meaning of Section 1445
of the Internal Revenue Code, as amended (i.e., Seller is not a foreign corporation, foreign partnership, foreign trust, foreign
estate or foreign person as those terms are defined in the Internal Revenue Code and regulations promulgated thereunder).

 

4.19         Taxes.
All income, sales and use taxes, hotel/motel occupancy taxes, real and personal property taxes, employer withholding taxes and
similar taxes that are due, have been paid in full or if due on or after the Closing Date will be paid in full (or will be provided
for at the Closing pursuant to the provisions of Section 14.1 below), and all required reports and returns relating thereto
have been, and will be, timely filed. There are no currently pending appeals or abatement proceedings or protest proceedings with
respect to the real estate taxes affecting the Property. [NTD: ANY CURRENT APPEALS TO BE SCHEDULED]

 

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4.20         Intentionally
Omitted.

 

4.21         Budgets.
Attached hereto as Exhibit 4.21 are true, correct and complete copies of the 2015 operating budget and 2015 capital
expenditure plan for the Hotel as of the Effective Date.

 

4.22         Financial
Information. Seller has provided to Buyer all profit and loss statements and pertaining to the Hotel in Seller’s
possession or control for three (3) full calendar years immediately preceding the Effective Date and any year-to-date profit and
loss statements prepared for the Hotel for the current year. To Seller’s knowledge, such profit and loss statements have
been prepared in accordance with generally accepted accounting principles consistently applied and accurately and fairly represent
the financial condition and results of operations of Seller and the Hotel in all material respects as of the dates stated therein.

 

4.23         Intentionally
Omitted.

 

4.24         Personal
Property. Seller (or Operating Tenant) has good and marketable title to the Personal Property. As of the Closing Date,
such Personal Property shall be free and clear of all liens other than relating to leasehold interests arising under the Equipment
Leases.

 

4.25         Intentionally
Omitted.

 

4.26         Environmental
Matters. Except as set forth in the reports described in Exhibit 4.26 attached hereto, to Seller’s knowledge,
Seller has not received a written notice from a governmental authority alleging a violation of any Environmental Law which has
not been addressed and cured in accordance with Environmental Laws. “Environmental Laws” means all Laws relating
to the injury to, or the pollution or protection of human health and safety or the environment.

 

4.27         Designated
Persons. As used in this Agreement, the words “Seller’s knowledge” or words of similar import shall be
deemed to mean, and shall be limited to, the actual knowledge of Adiyta Bhoopathy and Mark K. Rafuse, with obligation of
due inquiry of the Hotel Manager and the general manager of the Hotel as to the accuracy of the representations and warranties
of Seller as set forth in this Article IV; provided, however, there shall be no personal liability on the part of such person
arising out of any representations or warranties made herein or otherwise.

 

4.28         Seller’s
Representations and Warranties Deemed Modified.

 

(a)          Seller’s
representations and warranties set forth in this Article IV (other than those set forth in Sections 4.14 [Purchase Options], 4.24
[Personal Property] and 15.11 [Brokerage]), shall be deemed modified, and provided that Seller has given written notice of same
to Buyer in accordance with the applicable terms and provisions of this Agreement (and, for the avoidance of doubt, if no requirement
for notice or time period for such notice is provided elsewhere in this Agreement, then written notice shall be given by Seller
to Buyer within five (5) days of Seller obtaining knowledge of the occurrence of any of the following), to reflect the following:
(i) any amendment or supplement to the Exhibits provided to Buyer in writing within five (5) days of the Effective Date, (ii) the
amendment, expiration or termination of any Space Lease, Equipment Lease, Booking, or Contract, or the entering into of any new
such agreement occurring in compliance with the terms of Section 7.1, in each case occurring on or after the Effective Date,
(iii) changes to representations resulting from any actions or omissions of Seller which are expressly permitted under this Agreement,
in each case occurring on or after the Effective Date, and (iv) changes to representations resulting from the acts or omissions
of Buyer, and such modifications shall not affect the obligations of Buyer hereunder or render any representation or warranty of
Seller untrue.

 

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(b)          If
prior to the Closing, (A) Buyer has knowledge that any representation or warranty of Seller is inaccurate, untrue or incorrect
and Buyer gives Seller notice thereof (Buyer agreeing to promptly give such notice), or (B) Seller shall notify Buyer that a representation
or warranty made herein by Seller is untrue, inaccurate or incorrect, then Seller may, in its sole discretion, elect by notice
to Buyer to adjourn the Closing for up to thirty (30) days in order to attempt to cure or correct such untrue, inaccurate or incorrect
representation or warranty. If any such inaccurate, untrue or incorrect representation or warranty has a Property Material Adverse
Effect, and (I) is not cured or corrected by Seller on or before the Closing Date (as the same may be adjourned as provided above)
or (II) such inaccuracy or such Property Material Adverse Effect is not cured by an offset from the Purchase Price on or before
the Closing Date (as the same may be adjourned as provided above) in such amount as is reasonably determined by Buyer and Seller
to offset or cure the impact of such inaccuracy causing such Property Material Adverse Effect as aforesaid, then such inaccurate,
untrue or incorrect representation or warranty shall constitute a failure of the conditions precedent to Buyer’s obligations
as set forth in Section 8.1 and Buyer, as its sole remedy shall elect either (x) to waive such misrepresentations or breaches
of warranties and consummate the Transaction contemplated hereby without any reduction of or credit against the Purchase Price,
or (y) to Terminate this Agreement by notice given to Seller on or before the Closing Date, in which event, (i) the Deposit shall
be returned to Buyer and Buyer shall have the right to reimbursement by Seller of Buyer’s Expenses as provided for in and
subject to Section 11.2(b) and (ii) this Agreement shall be Terminated and neither party shall have any further rights,
obligations or liabilities hereunder except as otherwise specifically provided herein. If Buyer fails to Terminate this Agreement
as provided in this Section 4.28, Buyer shall be deemed to have waived any right or remedy by reason of such untrue, inaccurate
or incorrect material representations or warranties, including, without limitation, any right to Terminate this Agreement pursuant
to this Section 4.28, but expressly excluding any indemnification obligation of Seller pursuant to Section 12.3(a).
For the avoidance of doubt, in the event that an untrue, inaccurate or incorrect representation or warranty exists, and Buyer nevertheless,
pursuant to and in accordance with this Section 4.28, consummates the purchase of the Property, Buyer shall have the right
to seek indemnification from Seller pursuant to Section 12.3(a). To the extent Buyer or the Property is subject to any claim
or actual or potential liability after the Closing Date without regard to the Survival Period and such matter is covered by an
insurance policy of Seller or Hotel Manager, Seller shall (and Seller shall cause Hotel Manager to) reasonably cooperate with Buyer
in the pursuit and defense of such claim. The foregoing cooperation shall survive the Closing.

 

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(c)          For
the purposes of this section, the term Buyer’s “knowledge” shall mean the actual, as distinguished from implied,
imputed and constructive, knowledge of Jon Mehlman and Ed Hoganson after due inquiry of the employees, agents, representatives
and attorneys that have provided any due diligence services or advice to Buyer in connection with the purchase of the Property,
provided that in no event shall such persons have any personal liability, and Buyer shall be deemed to have “knowledge”
of the following: (i) the contents of any documents, materials or written disclosures made to Buyer by or on behalf of Seller
prior to the Closing, including without limitation all Exhibits to this Agreement, and (ii) all third party reports ordered and
received by or on behalf of Buyer.

 

Article
V

Buyer’s Representations, Warranties and Covenants

 

In order to induce Seller
to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer represents and warrants to, and covenants
with, Seller as follows:

 

5.1           Good
Standing. Buyer is a limited liability company duly organized, validly existing and in good standing under the Laws of Delaware,
is authorized to conduct the business in which it is now engaged and Buyer (or its permitted assignee) is, or as of the Closing
Date shall be, qualified to do business in the jurisdiction where the Hotel is located.

 

5.2           Due
Authorization. The execution, delivery and performance of this Agreement and the consummation of the Transaction contemplated
hereby have been duly and validly authorized by all requisite actions of Buyer (none of which actions have been modified or rescinded,
and all of which actions are in full force and effect). This Agreement constitutes a valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms, subject only to applicable bankruptcy, insolvency and similar laws and equitable principles
affecting the rights of creditors generally.

 

5.3           No
Violations or Defaults. The execution, delivery and performance of this Agreement and the consummation by Buyer of the
transactions contemplated hereby will not (a) violate any law or any order of any court or governmental authority with proper jurisdiction;
(b) result in a breach or default under any contract or other binding commitment of Buyer or any provision of the organizational
documents of Buyer; (c) conflict with or result in a breach or constitute a default under any of the terms, conditions or provisions
of any contract or agreement to which Buyer is a party or by which Buyer is bound; or (d) require any consent or approval or vote
that has not been taken or given, or as of the Closing Date shall not have been taken or given.

 

5.4           Litigation.
As of the Effective Date, Buyer has received no written notice of any litigation, investigations, action, arbitration or other
proceedings that remain pending against Buyer, nor does Buyer have any knowledge that any such litigation, investigations, action,
arbitration or other proceedings are threatened or contemplated.

 

5.5           OFAC;
Money Laundering. Neither Buyer nor any of its Affiliates, are acting, directly or indirectly, for or on behalf of any
person named by the United States Treasury Department as a Specifically Designated National and Blocked Person, or for or on behalf
of any person designated in Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism. Buyer is
not engaged in the transaction contemplated by this Agreement directly or indirectly on behalf of, or facilitating such transaction
directly or indirectly on behalf of, any such person.

 

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Article
VI

Closing

 

6.1           Closing.
The time and place of Closing shall be on the Closing Deadline, through escrow with Escrow Agent, or on such alternative date or
at such alternative location as may be mutually agreed upon by Seller and Buyer in writing. All of Seller and Buyer’s deliveries,
the funds for payment of the Purchase Price and sufficient additional funds necessary for the parties to pay the costs contemplated
by Section 6.2 shall be delivered in escrow to the Escrow Agent on or prior to the Closing Deadline, and there shall be
no requirement that the parties attend a formal settlement. Wired funds must be received in the Escrow Agent's account prior
to 3:00 p.m. local Atlanta, Georgia time on the Closing Date in order for Seller to receive the benefit of such funds. Accordingly,
if funds are received after 3:00 p.m. local Atlanta, Georgia time on any day, they shall not be deemed received until the following
Business Day. [NOTE: IF APPLICABLE: In the event Seller’s existing loan documents require the defeasance of Seller’s
existing loan in connection with the conveyance of the Property, Buyer shall covenant and agree to use commercially reasonable
efforts to cause any lender providing financing for its acquisition of the Property to deposit the Purchase Price into escrow one
(1) Business Day prior to the scheduled Closing Date, provided, that, Seller is responsible for any and all costs associated therewith,
including without limitation, additional interest payable by Buyer to its acquisition lender.] Seller, at no additional cost or
liability to Seller, shall covenant and agree to use commercially reasonable efforts to cause its lender to assign its mortgage
documents to Buyer’s lender upon request of Buyer.

 

6.2           Costs.
Buyer shall pay the costs and expenses associated with the following: (a) all costs of Buyer’s due diligence, including
fees due its consultants and attorneys, (b) all lenders’ fees related to any financing to be obtained by Buyer, and
(c) the cost of the Survey. Seller shall pay the costs and expenses associated with the following: (i) the commission due Broker,
(ii) all fees due its attorneys, and (iii) all costs incurred in connection with causing the Title Company to remove
any Title Objections required to be removed by or otherwise cured by Seller. All other costs and expenses, including without limitation,
(1) all recording and filing charges in connection with the instruments by which Seller conveys the Property, (2) Escrow Agent’s
escrow or closing charges, (3) all premiums and charges of the Title Company for the base Title Commitment and the Owner’s
(and any mortgagee’s) base Title Policy and all endorsements thereto), and (4) all transfer taxes, sales taxes, documentary
stamp taxes and similar charges, if any, applicable to the transfer of the Property to Buyer, shall be allocated in accordance
with the schedule attached to the Side Letter. The obligations of the parties under this Section 6.2 shall survive the Closing
(and not be merged therein) or any earlier termination of this Agreement.

 

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Article
VII

Actions Pending Closing; Feasibility Period

 

7.1           Conduct
of Business; Maintenance and Operation of Property. Between the Effective Date and the Closing Date, subject to the terms
of the Management Agreement (provided, that, if the following are controlled by Hotel Manager, Seller shall use commercially reasonable
efforts to cause Hotel Manager to comply with this Section 7.1 notwithstanding the right (or lack thereof) of Seller under
the Management Agreement to approve or disapprove of or consent to any such item set forth below in this Section 7.1), Seller
shall use commercially reasonable efforts to cause the Property to be operated, managed and maintained in the manner which is substantially
similar to the manner it has been operated and maintained prior to the Effective Date, which undertaking includes, but is not limited
to:

 

(a)          operate,
maintain and repair in the ordinary course of business consistent with Seller’s and/or Hotel Manager’s past custom
and practice, in an efficient manner, consistent with hotels of a comparable type (meaning the same brand or flag), size, class,
age and construction operating in the same or comparable geographic area of the Hotel, taking into account the facts and circumstances
in existence from time to time, and with respect to capital expenditures, pursuant to and in accordance with the 2015 capital expenditure
plan;

 

(b)          (i)
provide a level of employment at the Hotel sufficient for the normal operations of the Hotel as currently conducted, (ii) utilize
its budgetary approval rights under the Management Agreement, if any, to limit any increase greater than 3% in aggregate compensation
provided to Employees without the prior written consent of Buyer, which consent shall not be unreasonably withheld, conditioned
or delayed, and (iii) and not less than fourteen (14) days prior to Closing, Seller will use commercially reasonable efforts to
obtain from Hotel Manager an accurate description of the titles and primary work location of all Employees, together with the base
salary, bonus opportunity (if applicable), and hire date;

 

(c)          Seller
shall not enter into any union contracts or other agreements with any Employees at or relating to the Hotel which would be the
responsibility of Buyer from and after the Closing Date without advance notice to, and the written consent of, Buyer, which consent
shall not be unreasonably withheld, conditioned or delayed, and Seller shall use commercially reasonable efforts (subject to applicable
Laws) to cause Hotel Manager to not enter any union contracts or other agreements with any Employees at or relating to the Hotel
which would be the responsibility of Buyer from and after the Closing Date without advance notice to, and the written consent of,
Buyer, which consent shall not be unreasonably withheld, conditioned or delayed;

 

(d)          accept,
in the ordinary course of business, booking contracts for the use of the facilities of the Hotel;

 

(e)          keep,
observe, and perform all material obligations under the Space Leases, the Contracts, the Equipment Leases, and all other applicable
contractual arrangements relating to the Property and use commercially reasonable efforts to enforce the obligations of the applicable
third parties thereunder;

 

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(f)          obtain
and keep the FF&E, Fixed Asset Supplies and Inventories adequately stocked, substantially similar to the quantities Seller
stocked the Property with prior to the Effective Date and, at Closing, in no event less than a minimum two and one half (2 1⁄2)
full turns of par levels of linens for each room at each Hotel, and with respect to Inventories, a minimum supply for each room
plus supplies sufficient for an additional five (5) days (provided, however, a failure of the foregoing covenant at Closing shall
not be a default hereunder but Buyer shall receive a credit at Closing in an amount reasonably determined by Buyer and Seller),
and Seller shall not sell, pledge, or otherwise transfer, change the status title, or remove or permit to be removed any item of
Personal Property, unless such removal is in connection with the replacement of such item by a comparable new item or would otherwise
constitute operation in the normal course of business;

 

(g)          not,
and, subject to the Management Agreement, will not permit Hotel Manager to enter into or otherwise amend or terminate any Space
Leases, Material Equipment Leases, or Material Contracts (except as expressly required by the terms thereof) without the prior
written approval of Buyer, which approval shall not be unreasonably withheld, conditioned or delayed; provided, however, that in
the event Buyer fails to respond to Seller within three (3) Business Days after Buyer is notified of such proposed agreement, amendment
or termination, such failure to respond shall be deemed to constitute Buyer’s approval of same. Notwithstanding the foregoing,
Seller will be allowed at all times to (A) amend, extend or terminate Space Leases, Equipment Leases, and Contracts as expressly
required by the terms thereof (provided Seller shall use commercially reasonable efforts to give Buyer at least five (5) Business
Days prior notice), and (B) enter into new Space Leases, Equipment Leases or Contracts if they are either (I) not a Material
Contract or Material Equipment Lease or (II) terminable by Buyer without any termination fee and upon not more than thirty (30)
days’ notice;

 

(h)          maintain
in effect all policies of casualty and liability insurance, or similar policies of insurance, with substantially the same limits
of coverage now carried with respect to the Hotel. In addition, Seller shall use best efforts to (i) make available to Buyer copies
of the Insurance Policies or to cause the Hotel Manager to abstract the material terms of the Insurance Policies at least three
(3) Business Days prior to the Due Diligence Deadline and (ii) make its insurance brokers and consultants available to discuss
with Buyer all insurance policies covering the Property in order to assist Buyer in implementing insurance coverage as of the Closing
Date;

 

(i)          promptly
notify Buyer of (i) any written notice received by Seller or, to Seller’s knowledge, Hotel Manager of any pending or threatened
litigation or governmental proceeding affecting Seller or the Property (or any portion thereof) or (ii) any written notice received
by Seller or Hotel Manager from any governmental authority regarding any violation (or alleged violation) against the Property
(or any portion thereof), and Seller shall not engage in the commencement of any litigation, arbitration or governmental proceedings
without Buyer’s prior written approval, which approval shall not be unreasonably withheld, conditioned or delayed (other
than related to (i) the collection of receivables, (ii) insurance coverage or the recovery of insurance proceeds or (iii)
the filing of a tax appeal pursuant to and in accordance with Section 14.8 which shall not require Buyer consent provided
Seller shall give Buyer notice thereof);

 

    	19

    	 

    

 

(j)          use
commercially reasonable efforts to keep in full force and effect all Permits and licenses, including without limitation, the Liquor
License;

 

(k)          subject
to Article XIII, Seller shall not perform any material alterations to the Property without the prior written approval of
Buyer, which approval shall not be unreasonably withheld, conditioned or delayed, except for ongoing improvements and renovations
in the ordinary course of business in substantially the same manner as currently performed;

 

(l)          Seller
shall not initiate, consent to, approve or acquiesce in any modification of any zoning restrictions or regulations with respect
to the Property;

 

(m)          Promptly
following receipt thereof, Seller shall provide Buyer with a copy of (i) all written notices of breach, default or termination
delivered to Seller under the Franchise Agreement and written notices of violation of or non-compliance with Franchisor's quality
assurance or similar program delivered to Seller under the Franchise Agreement, and (ii) all monthly profit and loss statements
(in the format previously provided to Buyer) and STAR reports, provided by Hotel Manager to Seller, and, when available, the 2016
operating budget and capital expenditure plan;

 

(n)          Seller
shall not voluntarily subject the Property to any liens, encumbrances, covenants or easements or other rights or claims which are
not otherwise Required Cure Items without the prior written approval of Buyer, which approval shall not be unreasonably withheld,
conditioned or delayed; provided, however, that in the event Buyer fails to respond to Seller within five (5) Business Days after
Buyer is notified of such proposed matter, such failure to respond shall be deemed to constitute Buyer’s approval of same
solely with respect to any request to enter into an easement or similar agreement necessary for the continued operation of the
Property; and

 

(o)          at
Seller’s sole cost and expense, cause the existing Management Agreement and Operating Lease to be terminated as of the Closing
Date.

 

7.2           Title
Insurance. (a) Promptly following the Effective Date, Buyer shall order a Title Commitment relating to the Hotel to be
issued by the Title Company.

 

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(b)          Within
seven (7) Business Days of receipt of the Title Commitment, but no later than July 8, 2015, Buyer shall notify Seller in writing
of any Title Objections. No later than July 13, 2015, Seller shall notify Buyer (i) that it will, prior to the Closing Date, eliminate
or remove, or cause the Title Company to delete, the Title Objections to which Buyer has objected or (ii) that it declines to eliminate
or remove, or cause the Title Company to delete, specified or all Title Objections to which Buyer objected. If Seller elects not
to remove, eliminate or cause to be deleted all Title Objections, or fails to timely provide such election, Buyer may Terminate
this Agreement in its sole and absolute discretion and receive a return of the Deposit; provided, however, the failure of Buyer
to Terminate this Agreement on or before the Due Diligence Deadline shall be deemed Buyer’s election not to Terminate this
Agreement on account of such Title Objections that Seller has not agreed to eliminate or remove or cause the Title Company to delete
and all such Title Objections shall be deemed Permitted Title Exceptions. If Seller agrees in writing to take the actions necessary
to eliminate or remove, or cause the Title Company to delete any Title Objections, then such exceptions shall not be Permitted
Title Exceptions and Seller shall cause such Title Objections to be removed, eliminated or deleted prior to or at Closing. If Buyer
does not make a timely objection to an exception to title or if Buyer elects (or is deemed to have elected to) to accept any exceptions
to which Buyer has previously objected, such exceptions shall be additional Permitted Title Exceptions. Notwithstanding the foregoing
or anything herein to the contrary, it is expressly agreed by the parties that mortgages, deeds of trust, construction, mechanics’
or materialmen’s liens or other liens or charges evidencing monetary encumbrances (other than liens for non-delinquent general
real estate taxes or assessments) or any encumbrances created by or through or consented to by Seller or its agents after the effective
date of the Title Commitment shall not be Permitted Title Exceptions and that it shall be Seller’s responsibility and obligation
to remove or cause the Title Company to omit such liens or encumbrances (the “Required Cure Items”) in order
to remove the same from the Title Policy. If the Title Company does not agree to remove or omit any Required Cure Items in the
Title Policy, but another nationally recognized title insurance company is willing to issue the Title Policy without such Required
Cure Item, the Seller shall have the right to obtain, and Buyer shall accept, a Title Policy from such other title insurance company
which shall otherwise satisfy the requirements of this Section 7.2, in which case the term “Title Company” shall
be deemed to refer to such other title insurance company for the Real Property insured by such Title Policy. Any incremental cost
associated with obtaining such a Title Policy from such other title insurance company shall be borne and paid at Closing solely
by Seller, notwithstanding the provisions of Section 6.2. 

 

(c)          If
any supplement or revision to the Title Commitment and/or Survey issued subsequent to the respective dates of the Title Commitment
and the Survey contains exceptions to title or defects not shown in the original Title Commitment or the original Survey, as applicable,
or previous endorsements or supplements thereto, and such additional Title Objections were not caused by Buyer or any person on
behalf of Buyer, then Buyer shall be entitled to object to such exceptions by written notice of objection to Seller on or before
the fifth (5th) Business Day after Buyer’s receipt of the supplement showing such exceptions. Seller shall have
until five (5) Business Days from the receipt of Buyer’s notice of each such additional Title Objections that comply with
the requirements of this Section 7.2(c) to remove or to remedy the conditions or defects resulting in such exceptions and
to procure a supplement to the Title Commitment or the Survey, as applicable, removing such Title Objection or to agree in writing
to cure such Title Objection(s) prior to Closing. If, despite Seller’s obligation to remove same, Seller is unable to provide
for the removal of one or more of such additional Title Objections, within such five (5) Business Day period, then, at Buyer’s
option, this Agreement may be Terminated upon written notice given by Buyer to Seller on or before the second (2nd) Business Day
after such five (5) Business Day period. Upon delivery of such termination notice, this Agreement shall automatically Terminate
and the parties shall be released from all further obligations under this Agreement (except for those which expressly survive Termination
of this Agreement), provided that the Deposit shall be disbursed by Escrow Agent to Buyer; provided, further, if Buyer Terminates
this Agreement because Seller is unwilling or unable to cure any Required Cure Item or other defect Seller otherwise had previously
agreed to cure or remove, the same shall be treated as a default by Seller and Buyer shall have the right to avail itself of the
remedies provided in, and subject to, Section 11.2. If Buyer shall have the right to, but does not, Terminate this Agreement
in the manner set forth above in this Section 7.2(c), then Buyer shall be deemed to have waived its objection to all Title
Objections referred to in Buyer’s notice of Title Objections relating to such supplement which shall not have been cured
or which Seller elected not to cure prior to Closing, and this Agreement shall remain in full force and effect. Anything in this
Agreement to the contrary notwithstanding, the Closing Date shall be extended to the fifth (5th) Business Day after
the later of (x) Seller shall have cured Buyer’s Title Objection to such supplement and shall have delivered to Buyer a supplement
to the Title Commitment or the Survey evidencing the same or (y) the expiration of Buyer’s right to Terminate this Agreement
because of the lack of such a cure.

 

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7.3           Survey.
Seller shall reasonably cooperate with Buyer, at Buyer’s sole cost, to allow Buyer to order an ALTA as-built survey of the
Real Property (or an update to Seller’s existing ALTA as-building survey of the Real Property) certified to Buyer and the
Title Company by a land surveyor or professional engineer (the “Survey”).

 

7.4           Inspection;
Due Diligence Period.

 

(a)          Buyer
shall have the right, at its own risk, cost and expense and at any date or dates prior to Closing, to enter, or cause its agents
or representatives to enter, upon the Property during normal business hours and upon reasonable prior notice to Seller, for the
purpose of making surveys or other tests, inspections, investigations and/or studies of all or any part of the Property. Representatives
of Seller shall have the right to accompany Buyer or any Buyer representatives during each such visit. In addition, subject to
the terms of this Agreement, Buyer may, at its own risk, cost and expense, conduct such architectural, environmental, economic
and other studies of the Property as Buyer reasonably deems necessary. Notwithstanding the foregoing, Seller shall have the right
to have a representative of Seller or Hotel Manager be present during any physical testing of the Property. Buyer shall
conduct, and ensure that each of its agents, employees, contractors or representatives conduct, each such entry in a manner that
does not interfere with the guests or tenants of the Hotel. Buyer shall not make any physical alterations to the Property or make
any invasive tests without Seller’s prior written consent, which consent shall be in Seller’s sole discretion. Further,
Buyer shall repair promptly any physical damage caused by its due diligence of the Property and shall promptly return such portions
of the Hotel to the condition existing immediately prior to Buyer’s due diligence. Notwithstanding any provision in this
Agreement to the contrary, except in connection with the preparation of a so-called “Phase I” environmental report
with respect to the Property or as required by applicable Law, Buyer shall not contact any governmental official or representative
regarding hazardous materials on, or the environmental condition of, the Property, without Seller’s prior written consent
thereto, which consent shall be in Seller’s sole discretion.  Except for (i) discovery or identification of existing
claims, damages, demands, penalties, causes of action, liabilities, or conditions (and except for any disclosure thereof required
of Buyer under applicable Law), and (ii) any acts or omissions of Seller or its agents, Buyer shall indemnify and hold Seller harmless
from any and all claims, damages, demands, penalties, causes of action, liabilities, losses, costs or expenses (including reasonable
attorneys’ fees and other charges) arising out of or in any way related to personal injury (including death) or property
damage, asserted by any person or entity relating to the acts or omissions of Buyer, or its agents, employees, contractors or representatives
in the course of any such entry or inspection of the Hotel. The foregoing indemnity shall survive Closing or any Termination of
this Agreement.

 

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(b)          Prior
to such time as Buyer or any of Buyer’s representatives enter the Property, Buyer shall (i) have or obtain (or cause
to be provided) policies of general liability insurance which insure Buyer and Buyer’s representatives with liability insurance
limits of not less than One Million and No/100 Dollars ($1,000,000.00) combined single limit for personal injury and property damage
and name Seller and Hotel Manager as additional insureds, and (ii) provide Seller with certificates of insurance evidencing
that Buyer has obtained the aforementioned policies.

 

(c)          If,
at any time prior to the Due Diligence Deadline, Buyer in its sole and absolute discretion gives Seller written notification (the
“Termination Notice”) that Buyer elects not to consummate the purchase of the Property in accordance
with the terms of this Agreement for any reason or no reason, this Agreement shall Terminate, whereupon the Deposit shall be immediately
returned to Buyer and neither party shall have any further liability to the other under this Agreement except as otherwise specifically
provided herein. In the event that the Termination Notice is not given by Buyer on or before the Due Diligence Deadline, Buyer
be deemed to have elected to proceed hereunder, and this Agreement shall remain in full force and effect.

 

(d)          If
requested in writing by Seller at any time prior to the Closing Date, Buyer shall use commercially reasonable efforts (subject
to applicable confidentiality restrictions applicable to Buyer) to provide a copy to Seller of such requested studies, reports
and assessments prepared by any third party for or on behalf of Buyer in connection with Buyer’s inspections, provided, however,
Buyer will not be required to deliver or disclose any proprietary information prepared for Buyer (e.g., internal models, budgets
and projections and renovation plans), provided further, however, Seller will keep all such studies confidential, will not disclose
to any third party the existence or content of such studies and promptly upon request from Buyer, will destroy (and certify to
Buyer such destruction) all such studies (and any copies thereof) promptly following termination of this Agreement. This provision
shall survive the Termination of this Agreement.

 

(e)          Without
limiting the generality of (and subject to) Section 15.14, and further subject to Section 7.4(a), prior to Closing,
Buyer shall not, through its officers, employees, managers, contractors, consultants, agents, representatives, directly or indirectly,
communicate with any governmental authority or any official, employee or representative thereof, involving any matter with respect
to the Property without Seller’s prior written consent, which consent shall not be unreasonably withheld, conditioned or
delayed. Notwithstanding the foregoing, Buyer and its representatives and consultants shall have the right, without any requirement
to obtain the consent of Seller, to (i) contact authorities if necessary to complete its Phase I report and review building
department, health department and other local governmental authority records with respect to the Real Property and the operation
of the Hotel (including, without limitation, for the preparation of (and due diligence required therefor) zoning reports, property
condition reports, environmental assessment reports and other customary due diligence), and (ii) after the Due Diligence Deadline,
apply to the applicable governmental authority for any licenses and permits necessary or desirable for Buyer’s continued
operation of the Hotel after the Closing. In addition, if Seller’s consent to any such governmental contacts is required
hereunder, Buyer shall give Seller reasonably sufficient prior written notice of the intended contact and Seller shall have the
right to have a representative present when Buyer or any of its representatives has any such contact with any governmental official
or representative.

 

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(f)          Without
limiting the generality of (and subject to) the provisions in Section 15.14, prior to Closing, Buyer shall not, through
its officers, employees, managers, contractors, consultants, agents, representatives, directly or indirectly, communicate with
any Hotel Employees or any person representing any Hotel Employees (except for the general manager of the Hotel) regarding any
matter with respect to the Property, the Hotel Employees or this Agreement, without Seller’s prior written consent, which
consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that, if Seller’s consent to any such
Hotel Employee contacts is required hereunder, Buyer shall give Seller reasonably sufficient prior written notice of the intended
contact and Seller shall have the right to have a representative present when Buyer or any of its representatives has any such
contact with any such Hotel Employees, and commencing ten (10) Business Days prior to Closing, Seller will cooperate to provide
Buyer reasonable access to interview the Hotel Employees for future employment at the Hotel. Notwithstanding anything herein to
the contrary, prior to Closing, in connection with any interviews with Seller’s personnel, agents or managers or Hotel Employees,
Buyer shall refer to the potential transactions contemplated hereby as an investment in the Property and not a sale or acquisition
of the Property (except in connection with any discussions with Franchisor).

 

(g)          To
the extent Buyer reviews, is given access to or otherwise obtains any Hotel Guest Data and Information as part of the purchase
of the Property, Buyer shall at all times comply in all material respects with all applicable Laws concerning (i) the privacy
of such Hotel Guest Data and Information and the sharing of such information and data with third parties (including, without limitation,
any restrictions with respect to Buyer’s or any third party’s ability to use, transfer, store, sell, or share such
information and data), and (ii) the establishment of adequate security measures to protect such Hotel Guest Data and Information.
This Section 7.4(g) shall survive the Closing or earlier termination of this Agreement.

 

Article
VIII

Conditions Precedent to Buyer’s Obligations at Closing

 

The obligations of Buyer
to make payment of the Purchase Price and other sums provided for herein and to consummate the Transaction contemplated hereby
is subject to satisfaction in full of each of the following conditions (“Buyer’s Conditions”) on or before
the Closing Date:

 

8.1           Representations
and Warranties. Each of Seller’s representations and warranties (as the same may be deemed modified as provided in Section
4.28) shall be true, correct and complete (subject to modification or waiver as set forth in Section 4.28) in all material respects
as if made on and as of the Closing Date (except to the extent they expressly relate to an earlier date), provided, however, this
Buyer’s Condition shall not be failed if any inaccurate, untrue or incorrect representations and warranties would not have
a Property Material Adverse Effect subject to and as more particularly set forth in Section 4.28(b), and, further provided, that,
if and to the extent that the Hotel receives any written notice from Franchisor after the Effective Date that the Hotel is not
in compliance with Franchisor’s quality assurance program or is placed in Franchisor’s “Yellow Zone” or
“Red Zone” or similar Franchisor designation, such notice and non-compliance shall not constitute a breach of the representation
and warranty set forth in Section 4.8 provided Seller has provided copies of any such notices in accordance with Section 7.1(m).

 

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8.2           Covenants
of Seller. Seller shall have performed and complied in all material respects with all covenants and conditions required
by this Agreement to be performed or complied with on or prior to the Closing Date.

 

8.3           Title.
Seller shall have performed all actions required of Seller pursuant to Section 7.2, and Title Company shall be irrevocably
committed to issue to Buyer the Title Policy upon payment of the premiums therefor and delivery of the documents specified in Article
X hereof.

 

8.4           Seller
Deliveries. Seller shall have delivered all of the documents and made all of the deliveries required from it pursuant to
Article X hereof.

 

8.5           No
Injunction. No action, suit or other proceeding shall be pending which shall have been brought by any person (other than
the parties hereto and their Affiliates) (i) to restrain, prohibit or change in any material respect the Transaction contemplated
hereby or (ii) seeking material damages with respect to the Transaction contemplated hereby.

 

8.6           Termination
of Management Agreement and Operating Lease. The Management Agreement between Seller and Hotel Manager and the Operating
Lease between Seller and Operating Tenant shall be terminated without cost to Buyer.

 

8.7           Termination
of Franchise Agreement; New Franchise Agreement. Buyer, at its own cost and expense, shall have entered into the New Franchise
Agreement pursuant to and in accordance with Section 12.8. Provided Buyer has entered into the New Franchise Agreement,
Seller, at its own cost and expense, shall have entered into a termination of the Franchise Agreement pursuant to Franchisor’s
standard form (subject to any changes agreed to by Seller and Franchisor based on Seller’s or its Affiliates prior dealings).

 

8.8           Failure
of Condition. Buyer’s Conditions are solely for the benefit of Buyer and may be waived only by Buyer. Any such waiver
or waivers of any of Buyer’s Conditions shall be in writing and shall be delivered to Seller. Buyer shall not act or fail
to act for the purpose or with the intention of permitting or causing any of Buyer’s Conditions to fail. If any of Buyer’s
Conditions is not satisfied or has not been so waived by Buyer on or prior to the Closing Date, Buyer shall have the right to (i)
Terminate this Agreement by written notice to Seller (and receive a return of the entire Deposit); (ii) if such failure is caused
by Seller, extend the Closing Date for up to ten (10) days to allow time for Seller to cure or satisfy such condition; or (iii)
if such failure arises from Seller’s breach of this Agreement or a failure to fulfill any of the Buyer’s Conditions
enumerated in, Section 8.1 or 8.2, or Sections 8.3, 8.4, 8.6 and 8.7 due to an act or
omission of Seller and as a consequence thereof Buyer elects to Terminate this Agreement, avail itself of any remedies provided
in Section 11.2 (for the avoidance of doubt, if a representation or warranty of Seller is untrue when made or as of the
Closing but was not known to be untrue by Seller or such untruth or inaccuracy was not intentionally, knowingly made by Seller,
or if a representation or warranty of Seller becomes untrue prior to Closing due to changes in circumstances not in the control
of Seller or not affirmatively and intentionally caused by Seller, neither such circumstance shall be deemed a breach of this Agreement).
Notwithstanding the foregoing, nothing in this Section 8.8 shall affect Seller’s right to extend the Closing Date
in accordance with Section 4.28 hereof.

 

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Article
IX

Conditions Precedent to Seller’s Obligations at Closing 

 

The obligation of Seller
to consummate the Transaction and deliver the documents and instruments required hereunder shall be subject to satisfaction in
full of the following conditions (“Seller’s Conditions”) on or before the Closing Date:

 

9.1           Representations
and Warranties. Each of Buyer’s representations and warranties shall be true and complete in all material respects
as if made on and as of the Closing Date, as if made on and as of such date except to the extent that they expressly related to
an earlier date.

 

9.2           Buyer
Deliveries. Buyer shall have delivered all of the documents and made all of the deliveries required from it pursuant to
Article X hereof.

 

9.3           Covenants
of Buyer. Buyer shall have performed and complied with all material covenants and conditions required by this Agreement
to be performed or complied with on or prior to the Closing Date.

 

9.4           Termination
of Franchise Agreement; New Franchise Agreement. Seller, at its own cost and expense, shall have entered into a termination
of the Franchise Agreement pursuant to Franchisor’s standard form (subject to any changes agreed to by Seller and Franchisor
based on Seller’s or its Affiliates prior dealings). Buyer, at its own cost and expense, shall have entered into the New
Franchise Agreement pursuant to and in accordance with Section 12.8.

 

9.5           Failure
of Condition. Seller’s Conditions are solely for the benefit of Seller and may be waived only by Seller. Any such
waiver or waivers of any of Seller’s Conditions shall be in writing and shall be delivered to Buyer. Seller shall not act
or fail to act for the purpose or with the intention of permitting or causing any of Seller’s Conditions to fail. If any
of Seller’s Conditions is not satisfied or has not been so waived by notice to Buyer on or prior to the Closing Date, Seller
shall have the right to (i) Terminate this Agreement without liability to Buyer by written notice to Buyer describing the condition
or conditions that have not been satisfied or waived (whereupon Escrow Agent shall return the Deposit to Buyer, subject to Section
11.1), or (ii) if such failure arises from Buyer’s breach of this Agreement, avail itself of any remedies provided in
Section 11.1.

 

Article
X

Closing Deliveries

 

Prior to Closing, the parties
shall make the following deliveries into escrow with Escrow Agent subject to separate escrow instruction letters between such parties
and Escrow Agent, and, at the Closing, the parties shall authorize and instruct Escrow Agent to release and record all such deliveries
to the appropriate parties:

 

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10.1         Deed.
Seller shall deliver a special or limited warranty deed substantially in the form set forth on Exhibit C attached hereto
(the “Deed”), dated as of the Closing Date, conveying to Buyer fee simple interest in the Real Property, subject
only to the Permitted Title Exceptions.

 

10.2         Bill
of Sale. Seller and Buyer shall each deliver two (2) duly executed counterparts (one for each party) of a bill of sale
substantially in the form set forth on Exhibit D attached hereto (the “Bill of Sale”), dated as of the
Closing Date, conveying to Buyer the Personal Property.

 

10.3         Assignment
and Assumption Agreement. Seller and Buyer shall each deliver two (2) duly executed counterparts (one for each party) of
an assignment and assumption agreement substantially in the form set forth on Exhibit E attached hereto (the “Assignment
and Assumption Agreement”), dated as of the Closing Date, assigning, all of Seller's right, title and interest in and
to the Contracts, Equipment Leases, Space Leases, Bookings and Intangible Hotel Assets.

 

10.4         FIRPTA
Certificate. Seller shall deliver a certificate, dated as of the Closing Date, to establish that Seller is not a foreign
person for the purposes of the Foreign Investment in Real Property Tax Act.

 

10.5         Possession;
Books and Records, Keys. Seller shall deliver possession of the Property to Buyer, together with all books and records
in Seller’s possession other than Excluded Property, in accordance with and subject to any privacy Laws or regulations, necessary
or desirable for the operation of the Hotel and all keys and security codes, including, without limitation, keys and security codes
for all security systems, rooms and offices.

 

10.6         Purchase
Price. Buyer shall deliver the balance of the Purchase Price (as adjusted for prorations, costs and otherwise as provided
for in this Agreement) payable in the manner provided for in this Agreement.

 

10.7         Title
Affidavit. Seller shall deliver an affidavit to the Title Company in the form attached hereto as Exhibit F relating
to certain title matters.

 

10.8         Seller
Authority. Seller shall deliver evidence of organization, existence and authority of Seller to consummate the transactions
contemplated hereunder, and the authority of any person executing documents on behalf of such entity reasonably satisfactory to
the Title Company and Buyer.

 

10.9         Seller’s
Certificate. Seller shall deliver a certificate executed by Seller (the “Seller’s Certificate”)
stating that each of the representations and warranties of Seller set forth in this Agreement are, as of the Closing Date, true,
complete and correct in all material respects, subject to changes permitted in accordance with this Agreement and disclosed in
such certificate.

 

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10.10         Buyer’s
Certificate. Buyer shall deliver a certificate executed by Buyer (the “Buyer’s Certificate”) stating
that each of the representations and warranties of Buyer set forth in this Agreement are, as of the Closing Date, true, complete
and correct in all material respects.

 

10.11         Vehicle
Bills of Sale. Seller shall deliver individual Bills of Sale, certificates, registrations, and transfer documents as are
appropriate and as may be required by applicable Law in connection with the transfer of any vehicles which are a part of the Property
and owned by Seller, together with the original certificates of title with respect to the same.

 

10.12         Closing
Statement. Buyer and Seller shall deliver the closing statement executed by Seller and Buyer setting forth the prorations
and adjustments to the Purchase Price to be made as set forth herein.

 

10.13         Estoppel
Certificates.  Upon Buyer’s reasonable request, Seller shall use commercially reasonable efforts to obtain estoppel
certificates, on Buyer’s standard form, from tenants under Space Leases, provided, that failure to deliver any such estoppel
certificate shall not be deemed failure of Buyer’s Conditions.

 

10.14         Terminations
of Management Agreement and Operating Lease.  Seller shall deliver evidence of the termination of the Management Agreement
and Operating Lease in accordance with Section 8.6 hereof.

 

10.15         Termination
of Franchise Agreement.  Provided Buyer has entered into the New Franchise Agreement, Seller shall deliver satisfactory
evidence of the termination of the Franchise Agreement subject to and in accordance with Section 9.4 hereof.

 

10.16         Terminations
of Excluded and Non-Assignable Contracts and Equipment Leases.  Seller shall deliver reasonably satisfactory evidence
of the termination of any Contract or Equipment Lease which Buyer elects not to assume pursuant to Section 2.6(g) hereof,
provided, that failure to deliver any such evidence shall not be deemed failure of Buyer’s Conditions.

 

10.17         Interim
Liquor Agreement. Seller shall (or to the extent that Seller is not the holder of the Liquor License, shall cause such
applicable party to) and Buyer shall deliver two (2) duly executed counterparts (one for each party) of the Interim Liquor Agreement
pursuant and subject to Section 12.5, dated as of the Closing Date.

 

10.18         Other
Documents. Seller and Buyer shall deliver such other documents, instruments and affidavits as may be reasonably requested
by Seller, Buyer and/or the Title Company to effectuate the Transaction contemplated by this Agreement, including, without limitation,
any and all transfer tax forms and other notices, affidavits or deliverables (including escrows) required by the jurisdiction in
which the Hotel is located.

 

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Article
XI

Default

 

11.1         Buyer’s
Default. If Buyer defaults in performing its obligations under this Agreement in any material respect and the Closing does
not occur as a result thereof, then for so long thereafter as such default continues uncured, Seller, as its sole and exclusive
remedy for any such default, shall be entitled to Terminate this Agreement by giving Buyer written notice to such effect, and receive
the Deposit as liquidated damages for Buyer’s default and enforce any obligation of Buyer that, pursuant to the terms of
this Agreement, specifically survives the Termination of this Agreement. THE PARTIES AGREE THAT IT WOULD BE IMPRACTICABLE AND EXTREMELY
DIFFICULT TO ASCERTAIN THE ACTUAL DAMAGES SUFFERED BY SELLER AS A RESULT OF BUYER’S FAILURE TO COMPLETE THE PURCHASE OF THE
PROPERTY PURSUANT TO THIS AGREEMENT, AND THAT UNDER THE CIRCUMSTANCES EXISTING AS OF THE EFFECTIVE DATE, THE LIQUIDATED DAMAGES
PROVIDED FOR IN THIS SECTION REPRESENT A REASONABLE ESTIMATE OF THE DAMAGES WHICH SELLER WILL INCUR AS A RESULT OF SUCH FAILURE.
THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF SUCH LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY, BUT IS INTENDED
TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER.

 

11.2         Seller’s
Default. Except as set forth in the Side Letter, if Seller defaults in performing its obligations under this Agreement
in any material respect prior to Closing and fails to cure the same within five (5) Business Days after receipt of written notice
thereof from Buyer, then Buyer shall have the right to exercise any one of the following as Buyer’s sole and exclusive remedy:

 

(a)          proceed
to Closing without any reduction in or set-off against the Purchase Price, in which case Buyer shall be deemed to have waived Seller’s
default in performing its obligations and covenants under this Agreement or Seller’s incorrect representations and warranties;
or

 

(b)          Terminate
this Agreement by giving Seller written notice of such election prior to the consummation of the Closing whereupon (i) Escrow Agent
shall promptly return the Deposit to Buyer, (ii) Seller shall reimburse Buyer, upon receipt by Seller of reasonable evidence thereof,
for its out-of-pocket third-party expenses related to the Transaction contemplated by this Agreement (not to exceed 0.75%
of the Purchase Price) (“Buyer’s Expenses”), (iii) neither party to this Agreement shall thereafter have
any further rights or liabilities under this Agreement, except, however, that the parties shall remain obligated with respect to
the provisions herein which specifically survive Termination; or  

 

(c)          seek
specific performance on the part of Seller under the terms of this Agreement; provided such action seeking specific performance
is initiated in a court of competent jurisdiction within sixty (60) days after the scheduled Closing Date. Failure to file a suit
for specific performance within such sixty (60) day period shall be deemed a waiver of such remedy as well as a waiver by it of
any right it may have to file or record a notice of lis pendens or notice of pendency of action or similar notice against
any portion of the Property.

 

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Article
XII

Survival; Indemnification Obligations; Additional Obligations; As-Is; Franchise

 

12.1         Generally.
Except as otherwise expressly provided herein or related to any claims for indemnification, the respective representations, warranties,
obligations, covenants and agreements of Seller and Buyer contained herein shall survive the Closing for two hundred seventy
(270) days.

 

12.2         Survival
and Limitations. Except as otherwise expressly provided herein, any claims for breach of the representations, warranties,
covenants and claims under the indemnities of Seller contained herein shall be made within two hundred seventy (270) days
following the Closing Date (the “Survival Period”), otherwise they shall irrevocably be deemed to have been
waived by Buyer. Notwithstanding the foregoing or anything to the contrary herein, Seller acknowledges and agrees that the resolution
of such claim may not occur until after the expiration of the Survival Period and the Survival Period shall be deemed to be tolled
with respect to (and only with respect to) any claim of which Seller receives notice before the expiration of the Survival Period.
Seller shall have no liability to Buyer for any breach of such representations, warranties, covenants or under any indemnities
of Seller contained herein (other than as set forth below in the penultimate sentence of this Section 12.2) unless and until
Buyer’s actual out-of-pocket loss from such breach and/or under such indemnities (or aggregate losses from all such breaches
and/or under such indemnities) exceeds $50,000 (at which point Seller shall be liable for the full amount of the damages, including
the $50,000); and provided further, that in no event shall Seller’s aggregate liability to Buyer for all such breaches and/or
under such indemnities (other than as set forth below in the penultimate sentence of this Section 12.2) exceed two percent
(2%) of the Purchase Price. Buyer hereby acknowledges and agrees that if the Closing occurs under this Agreement, then Buyer's
remedies set forth in this Article XII, and subject in all events to the limitations and restrictions set forth herein,
shall be Buyer's sole and exclusive remedy against Seller (or any Affiliate of Seller) for any breach or default or alleged breach
or default by Seller (or any Affiliate of Seller) or claim for indemnification against Seller (or any Affiliate of Seller) under
this Agreement or in connection with any matter related to the Transaction, and that in no event shall Buyer have the right to
initiate any other action or remedy against Seller (or any Affiliate of Seller) in connection this Agreement or in connection with
any matter related to the Transaction, including, without limitation any claim for rescission of its acquisition of the Property.
Except as set forth in the Side Letter, each party hereto hereby waives its rights to recover from the other party indirect, punitive,
exemplary, and speculative damages. For the avoidance of doubt, the Survival Period and the foregoing 2% liability cap and $50,000
basket shall not apply to any breach by Seller of the representations and warranties set forth in Section 15.11, any breach
by Seller of any post-Closing covenant or agreement set forth in Section 4.28(b), Section 6.2, Section 15.13,
Section 15.14, Section 15.19 or any Closing adjustments or prorations to be made pursuant to Article XIV of
this Agreement. This Section 12.2 shall survive Closing or Termination of this Agreement.

 

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12.3         Agreement
to Indemnify.

 

(a)          Subject
to the waivers, acknowledgments, agreements and releases by Buyer set forth Sections 4.28, 7.4(a), 12.2, 12.6, 12.7, 12.9(a)-(d)
and Sections 15.11 and 15.14 of this Agreement Seller shall, and does hereby, indemnify, defend and hold Buyer Indemnitees
(as hereinafter defined) harmless from, against and in respect to: (i) actions or claims relating to damage to property or injury
to or death of any person which occurs prior to the Closing, (ii) for any claims for any debts or obligations occurring on or about
or in connection with the Property or any portion thereof which occurs prior to the Closing, and (iii) the business or operation
of the Property at any time during Seller’s ownership period; provided, however, that this indemnity shall expressly exclude
all liabilities with respect to the physical condition of the Property (regardless of whether such condition existed prior to or
exists after the Closing Date), including, without limitation, the design, construction, engineering, maintenance and repair or
environmental condition of the Property, whether arising prior to or after the Closing.

 

(b)          Buyer
shall, and does hereby, indemnify, defend and hold Seller Indemnitees (as hereinafter defined) harmless from, against and in respect
to: (i) actions or claims relating to damage to property or injury to or death of any person which occurs from and after the Closing,
(ii) for any claims for any debts or obligations occurring on or about or in connection with the Property or any portion thereof
which occurs from and after Closing, and (iii) the business or operation of the Property at any time during Buyer’s ownership
period.

 

(c)          This
Section 12.3 shall survive Closing (with such limitations as set forth in Section 12.2).

 

12.4         Notice
and Cooperation on Indemnification. Whenever either party shall learn through the filing of a claim or the commencement
of a proceeding or otherwise of the existence of any liability for which the other party is or may be responsible under this Agreement,
the party learning of such liability shall notify the other party promptly and furnish such copies of documents (and make originals
thereof available) and such other information as such party may have that may be used or useful in the defense of such claims and
shall afford said other party full opportunity to defend the same in the name of the notifying party and generally shall cooperate
with said other party in the defense of any such claim. Upon receipt of such notice of possible liability, the party obligated
to provide indemnity shall have the right to provide a written notice to the party entitled to indemnity that the indemnifying
party elects to assume the defense of such matter, including, without limitation, the employment of counsel reasonably satisfactory
to the indemnified party; whereupon the indemnifying party shall have the right to prosecute such defense and shall be responsible
for the payment of the fees and disbursements of such counsel; provided, however, if in the reasonable judgment of
the indemnified party, the indemnifying party shall have an actual conflict of interest in defending such action on the indemnified
party’s behalf, then at the indemnified party’s election, the indemnified party may defend itself, and it shall be
at the indemnifying party’s expense subject to the reasonable approval of counsel by the indemnifying party; provided,
however, that the indemnifying party shall be responsible for the reasonable fees of no more than one counsel for the indemnified
party. No indemnifying party shall be responsible for any obligation, loss, cost, expense or other liability to the extent that
(a) the party entitled to indemnification failed to provide prompt notice thereof to the indemnifying party and (b) such obligation,
loss, cost, expense or other liability could have been avoided if prompt notice had been given. This Section 12.4 shall
survive Closing or Termination of this Agreement.

 

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12.5         Liquor
License. Seller shall use commercially reasonable efforts (not to include by Seller the expenditure of any money or guaranty
of any obligation) to cooperate with Buyer to cause the Liquor License to be issued or transferred and any other new licenses and
permits to be issued to Buyer. If upon Closing the existing Liquor License has not been transferred to Buyer or Buyer’s nominee
or a new Liquor License has not been issued to Buyer or Buyer’s nominee, then, subject to applicable Laws, Seller shall use
reasonable efforts (not to include by Seller the expenditure of any money or guaranty of any obligation) to cause the holder of
the existing Liquor License (the “Existing Permittee”) to enter into an interim liquor agreement in substantially
the form attached hereto as Exhibit 12.5 (as modified in accordance with the requirements of applicable Law and custom in
the jurisdiction where the Property is located) (an “Interim Liquor Agreement”) or any other such license agreements,
management agreements and/or other interim agreements in forms reasonably acceptable to Buyer and Seller, with Buyer or Buyer’s
designee as may be reasonably necessary for the continuation of the sale and consumption of alcoholic beverages at the Hotel after
the Closing and before such time as an Affiliate or designee of Buyer (the “New Permittee”) obtains permits
(the “New Liquor Permits”) relating to the sale and on-premises consumption of liquor and other alcoholic beverages
to replace the Liquor License; provided, however, that (i) Buyer shall indemnify, defend and hold Seller and Existing Permittee
harmless from any liability, damages, costs, expenses or claims encountered in connection with such operations during said period
of time, and Buyer shall procure and pay for dram shop liability insurance (in amounts and with deductibles as previously maintained
by Seller or Hotel Manager) naming Buyer and Seller and Existing Permittee as insureds thereunder, and (ii) the obligation
of Seller to cooperate and keep open the liquor facilities of the Hotel shall terminate on a date to be mutually and in good faith
determined by Seller and Buyer prior to the Due Diligence Deadline, or earlier, if Buyer obtains the New Liquor Permits at an earlier
date. At such time after Closing as the New Liquor Permits are obtained, Existing Permittee or Seller, as applicable, will convey,
at no additional costs, all alcoholic beverages to New Permittee by a conveyance document in form reasonably acceptable to Seller
and Buyer and in accordance with the requirements of the [State: _________________] Liquor Control Board and all applicable Laws.
This Section 12.5 shall survive the Closing.

 

12.6         PROPERTY
SOLD “AS IS”. BUYER ACKNOWLEDGES AND AGREES THAT (A) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR
IN ANY CLOSING DOCUMENTS EXECUTED AND DELIVERED BY SELLER TO BUYER AT CLOSING, THE PURCHASE OF THE PROPERTY SHALL BE ON AN “AS
IS”, “WHERE IS”, “WITH ALL FAULTS” BASIS, SUBJECT TO ORDINARY WEAR AND TEAR FROM
THE EFFECTIVE DATE UNTIL CLOSING, AND (B) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY CLOSING DOCUMENTS EXECUTED
AND DELIVERED BY SELLER TO BUYER AT CLOSING, SELLER HAS NO OBLIGATION TO REPAIR ANY DAMAGE TO OR DEFECT IN THE PROPERTY, REPLACE
ANY OF THE PROPERTY OR OTHERWISE REMEDY ANY MATTER AFFECTING THE CONDITION OF THE PROPERTY.

 

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12.7         LIMITATION
ON REPRESENTATIONS AND WARRANTIES.

 

(A)         BUYER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY CLOSING DOCUMENTS EXECUTED AND
DELIVERED BY SELLER TO BUYER AT CLOSING, NEITHER SELLER, HOTEL MANAGER OR ANY OF THEIR AFFILIATES, NOR ANY OF THEIR RESPECTIVE
SHAREHOLDERS, MEMBERS, PARTNERS, TRUSTEES, BENEFICIARIES, DIRECTORS, OFFICERS, MANAGERS, EMPLOYEES, ATTORNEYS, ACCOUNTANTS, CONTRACTORS,
CONSULTANTS, AGENTS OR REPRESENTATIVES, NOR ANY PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING, HAVE MADE ANY REPRESENTATION,
WARRANTY, GUARANTY, PROMISE, PROJECTION OR PREDICTION WHATSOEVER WITH RESPECT TO THE PROPERTY OR THE BUSINESS OF THE HOTEL, WRITTEN
OR ORAL, EXPRESS OR IMPLIED, ARISING BY OPERATION OF LAW OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY REPRESENTATION OR WARRANTY AS TO (i) THE CONDITION, SAFETY, QUANTITY, QUALITY,
USE, OCCUPANCY OR OPERATION OF THE PROPERTY, (ii) THE PAST, PRESENT OR FUTURE REVENUES OR EXPENSES WITH RESPECT TO THE PROPERTY
OR THE BUSINESS OF THE HOTEL, (iii) THE COMPLIANCE OF THE PROPERTY OR THE BUSINESS OF THE HOTEL WITH ANY ZONING REQUIREMENTS,
BUILDING CODES OR OTHER APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, THE AMERICANS WITH DISABILITIES ACT OF 1990, (iv) THE
ACCURACY OF ANY ENVIRONMENTAL REPORTS, FINANCIAL AUDITS OF THE PROPERTY OR OTHER DATA OR INFORMATION SET FORTH IN ANY DUE DILIGENCE
MATERIALS PROVIDED BY SELLER TO BUYER, OR (v) ANY OTHER MATTER RELATING TO SELLER, THE PROPERTY OR THE BUSINESS OF THE HOTEL.

 

(B)         BUYER
ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY CLOSING DOCUMENTS EXECUTED AND DELIVERED
BY SELLER TO BUYER AT CLOSING:

 

(i)          BUYER
SHALL HAVE HAD THE OPPORTUNITY TO CONDUCT ALL DUE DILIGENCE INSPECTIONS OF THE PROPERTY AND THE BUSINESS OF THE HOTEL AS OF THE
DUE DILIGENCE DEADLINE, INCLUDING OBTAINING AND REVIEWING ALL INFORMATION WHICH IT DEEMS NECESSARY TO MAKE AN INFORMED DECISION
AS TO WHETHER IT SHOULD PROCEED WITH THE PURCHASE OF THE PROPERTY AND THE BUSINESS OF THE HOTEL;

 

(ii)         BUYER
SHALL BE DEEMED TO BE SATISFIED WITH THE RESULTS OF ITS DUE DILIGENCE REVIEW OF THE PROPERTY AND THE BUSINESS OF THE HOTEL AS OF
THE DUE DILIGENCE DEADLINE AND ITS DEPOSIT OF THE SECOND DEPOSIT;

 

(iii)        BUYER
WILL BE RELYING ONLY ON ITS DUE DILIGENCE INSPECTIONS OF THE PROPERTY AND THE BUSINESS OF THE HOTEL, ITS REVIEW OF ANY DUE DILIGENCE
MATERIALS AND THE REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY SELLER IN THIS AGREEMENT OR IN ANY CLOSING DOCUMENTS EXECUTED
AND DELIVERED BY SELLER TO BUYER AT CLOSING; AND

 

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(iv)        BUYER
IS NOT RELYING ON ANY STATEMENT MADE OR INFORMATION PROVIDED TO BUYER BY SELLER (EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
EXPRESSLY MADE BY SELLER IN THIS AGREEMENT OR IN ANY CLOSING DOCUMENTS SUBMITTED BY SELLER TO BUYER), HOTEL MANAGER OR ANY OF THEIR
AFFILIATES, OR ANY OF THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, TRUSTEES, BENEFICIARIES, DIRECTORS, MANAGERS, OFFICERS,
EMPLOYEES, ATTORNEYS, ACCOUNTANTS, CONTRACTORS, CONSULTANTS, AGENTS OR REPRESENTATIVES, OR ANY PERSON PURPORTING TO REPRESENT ANY
OF THE FOREGOING.

 

(v)         Subject
to those obligations of Seller in this Agreement which expressly survive the Closing and except as otherwise expressly set forth
in this Agreement or any closing documents executed and delivered by Seller to Buyer at Closing, effective as of the Closing Date,
Buyer (for itself and its Affiliates, and each of their respective shareholders, members, partners, trustees, beneficiaries, directors,
officers and employees, and the successors, permitted assigns, legal representatives, heirs and devisees of each of the foregoing
(the “Buyer Indemnitees”)) does hereby forever release and discharge Seller, Hotel Manager and their respective
Affiliates, and each of their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees,
and the successors, permitted assigns, legal representatives, heirs and devisees of each of the foregoing (the “Seller
Indemnitees”) from all liabilities arising or related to (i) the physical, environmental, governmental, economic or legal
condition (including any construction defects, errors, omissions or other conditions, latent or otherwise), valuation, salability
or utility of the Hotel, or its suitability for any purpose whatsoever or any claims based in whole or in part on any violation
of, or arising with respect to any federal, state, or local statute, ordinance, rule, or regulation relating thereto, whether such
condition existed prior to or exists after the Closing Date, and (ii) the inaccuracy of any information furnished by any Seller
Indemnitee under or in connection with this Agreement. This release includes claims of which Buyer is presently unaware or which
Buyer does not presently suspect to exist which, if known to Buyer, would materially affect Buyer’s release of Seller Indemnitees.
Buyer specifically waives the provision of any statute or principal of law, which provides otherwise. In this connection and to
the extent permitted by Law, Buyer agrees, represents and warrants that Buyer realizes and acknowledges that factual matters now
unknown to Buyer may have given or may hereafter give rise to liabilities which are presently unknown, unanticipated and unsuspected,
and Buyer further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in
light of that realization and that Buyer nevertheless hereby intends to release, discharge and acquit Seller Indemnitees from an
such unknown liabilities, except as to representations and warranties by Seller expressly set forth in this Agreement and any closing
documents executed and delivered by Seller to Buyer at Closing.

 

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(c)          The
terms and provisions of this Section 12.7 shall survive the Closing.

 

12.8         New
Franchise Agreement.

 

(a)          It
is the parties’ intention that Buyer will continue to operate the Hotel under the same brand as the Hotel is currently operated
as of the Effective Date, and this Agreement has been negotiated and entered into based upon that expectation. Buyer shall within
five (5) Business Days after the Due Diligence Deadline make application to Franchisor for Franchisor’s approval of the re-issuance
of the Franchise Agreement to Buyer (such reissued Franchise Agreement, the “New Franchise Agreement”); provided,
however, Seller acknowledges that Buyer may be required to submit additional documentation and/or satisfy additional requirements
as requested by the Franchisor in connection with such application. Buyer will use its commercial reasonable efforts to obtain
the New Franchise Agreement by Closing, and, upon request at any time, will keep Seller reasonably apprised of its efforts to obtain
the New Franchise Agreement and respond promptly to all reasonable inquiries of Seller in this regard, supplying such information
as Seller may reasonably request. Seller, at Buyer’s expense, agrees to reasonably cooperate (but without cost or expense
to Seller) with Buyer in connection with Buyer’s obtaining the New Franchise Agreement. [NTD: TO BE INCLUDED IN SCHAUBURG
PSA: In connection with the New Franchise Agreement, Buyer shall assume Seller’s (or its Affiliate’s) repayment
obligation with respect to Key Money (as such term is defined in Franchise Agreement) pursuant to the Franchise Agreement and side
letter dated April 8, 2008 between Seller and Franchisor, provided, that, Buyer shall not be liable for any Key Money due in connection
with a termination of the Franchise Agreement and Seller be liable for any and all cost and expenses related to such termination
as set forth in Section 9.4] Buyer hereby agrees to diligently and timely execute all documents and pay all application
and other fees required by Franchisor in connection with obtaining the New Franchise Agreement for the continued operation of the
Property pursuant to the New Franchise Agreement upon terms and conditions reasonably satisfactory to Buyer based on Buyer’s
Affiliates' prior dealings, if any, with Franchisor (including, without limitation, a property improvement plan with which Buyer
will agree to comply), which may be more or less favorable to Buyer than the Franchise Agreement currently in force and effect
in respect of the Property.

 

(b)          No
later than sixty (60) days after the earlier of (i) the filing by Buyer of the franchise application with Franchisor and (ii) five
(5) Business Days after the Due Diligence Deadline, if and to the extent that Buyer and Franchisor agree on the terms of the New
Franchise Agreement within such 60-day period, Buyer shall deliver a certification to Seller evidencing and acknowledging the satisfaction
and waiver of the closing condition set forth in Section 8.7, subject solely to Franchisor’s execution and delivery
of the New Franchise Agreement and any additional conditions imposed by Franchisor. Buyer shall use best efforts after the delivery
of any such certification and prior to Closing to satisfy any such additional conditions so imposed by Franchisor. If Buyer and
Franchisor have not agreed on the terms of the New Franchise Agreement within such 60-day period, Buyer shall have the right to
terminate this Agreement by delivery of written notice to Seller and Escrow Agent whereupon the Deposit shall be immediately returned
to Buyer and neither party shall have any further liability to the other under this Agreement except as otherwise specifically
provided herein.

 

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12.9         Hotel
Employees.

 

(a)          Seller
shall, or shall cause Hotel Manager to, terminate or arrange for the termination of all Hotel Employees to be effective as of the
Closing and shall, or shall cause Hotel Manager to, pay (i) to Hotel Employees all earned and vested wages, severance pay,
bonuses, benefits and other compensation in accordance with Hotel Manager’s policies and (ii) all payroll taxes and
other employment taxes that any Hotel Employee is owed through termination or as a result of such termination, pursuant to statute
or contract.

 

(b)          Seller
will indemnify, defend and hold Buyer harmless from and against any loss, damage, liability, claim, cost or expense (including,
without limitation, reasonable attorneys’ fees) that may be incurred by, or asserted against, Buyer after the Closing which
involves any matter relating to a past or present Hotel Employee or any independent contractor providing services to the Hotel
to the extent concerning acts or omissions occurring prior to the Closing (including, without limitation, any claims which have
not yet been asserted by the Closing). Buyer will indemnify, defend and hold Seller and Hotel Manager harmless from and against
any loss, damage, liability, claim, cost or expense (including, without limitation, reasonable attorneys’ fees) that may
be incurred by, or asserted against, Seller or Hotel Manager after the Closing which involves any matter relating to a past or
present Hotel Employee who is hired by Buyer to the extent concerning acts or omissions occurring on or subsequent to the Closing.
These indemnities apply, without limitation, to all forms of labor and/or employment claims under state, federal or local Law,
whether brought in judicial, administrative or other proceedings, private or public.

 

(c)          In
connection with the Closing, Buyer or Buyer’s manager shall retain or rehire a sufficient number of the Hotel Employees,
for a sufficient period of time and on terms and conditions of employment and benefits necessary, so that the termination of employment
of such Hotel Employees shall not trigger the application of the WARN Act or applicable state Laws with respect to employees regarding
transfers of businesses. [NTD: FOR MONTEREY: For the Hotel Employees represented by the Union, such employment offers shall
be on terms and conditions substantially similar to those that they had immediately prior to Closing and as required by the Labor
Agreement and applicable Law]. Buyer agrees to indemnify Seller and hold Seller harmless from and against any and all costs
and expenses (including, without limitation, reasonable attorneys’ fees) incurred by Seller or Hotel Manager under the WARN
Act [NTD: FOR MONTEREY: , the Labor Agreement or applicable Law] resulting from the failure of Buyer or Buyer’s
manager to retain or rehire Hotel Employees as required in the immediately prior sentence or termination by Buyer or Buyer’s
manager of Hotel Employees at any time after the Closing Date.

 

(d)          Buyer
agrees as to any rehired Hotel Employees to cause Buyer’s manager to provide participation in medical, health, and other
benefit plans offered by its manager in accordance with the waiting periods of such plans and in no event longer waiting periods
generally provided by such manager.  Buyer shall not be responsible for providing access to COBRA continuation coverage for
the Hotel Employees resulting from Seller’s, or the Hotel Manager’s termination of the Hotel Employees under Section
12.9(a) above; provided however such COBRA coverage shall be at such Hotel Employees (if re-hired or not) sole cost and expense
and Seller shall not be responsible for the cost and expense associated therewith. In such event, Buyer shall indemnify, defend
and hold Seller, Hotel Manager and each of their Affiliates harmless from and against any and all claims, liabilities, costs and
expenses (including reasonable attorneys’ fees and costs) arising in connection with such severance.

 

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(e)          Buyer
shall (or shall cause its manager to) permit the rehired Hotel Employees that are eligible for any Seller or Hotel Manager employee
plans maintained pursuant to Section 401(k) of the Tax Code as of the Closing to participate in one or more employee plans maintained
by Buyer (or its manager) pursuant to Section 401(k) of the Tax Code (to the extent Buyer or its manager, as applicable, provides
any such plan to its other employees) in accordance with the terms of such plans.

 

(f)          Seller
and Buyer acknowledge and agree that nothing in this Agreement is intended to create a “joint employer” relationship
between them with respect to any Hotel Employee.

 

(g)          No
provision of this Agreement shall be deemed to constitute an amendment of any employee benefit plan or program of Buyer or Seller,
nor shall this Agreement limit, in any way, the ability of Buyer or Seller to amend or terminate their respective employee benefit
plans and programs at any time in their sole discretion. Nothing in this Agreement shall provide any individual any right to continued
employment with Buyer, its manager, or any of their affiliates, or grant any individual with any third party beneficiary rights
or inure to the benefit of or be enforceable by any Hotel Employee or any entity or person representing the interests of any Hotel
Employee.

 

(h)          The
provisions of this Section 12.9 shall survive the Closing.

 

Article
XIII

Casualty or Condemnation

 

13.1         Notice
to Buyer. If, prior to Closing, all of the Property, or any portion of or any interest in the Property shall be destroyed,
damaged, subjected to a threat of condemnation, or shall become the subject of any proceedings, judicial, administrative, or otherwise,
with respect to a taking by eminent domain or condemnation, Seller shall promptly notify Buyer thereof; provided, however, that
Seller shall not be deemed to be in default under this Section 13.1 for failure to report minor incidents causing insignificant
damage.

 

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13.2         Risk.
If, prior to Closing, (i) condemnation proceedings are commenced against all or any material portion of the Property, and for the
purposes of this Section 13.2(i), “material” shall mean: (w) as a result of such condemnation, the Improvements must
be materially reconfigured so as to affect at least ten percent (10%) of the guest rooms or square footage of the Hotel, (x) as
a result of such condemnation, there is an interference (other than a temporary interference anticipated, in Buyer’s reasonable
judgment, to last less than three (3) months) with the present use and operation of at least ten percent (10%) of the guest rooms
or square footage of the Hotel, (y) as a result of such condemnation, the sole or any required or material means of legal ingress
and/or egress from the Real Property to public roads is eliminated, with no comparable, convenient legal substitute ingress and/or
egress being available, or (z) the outcome of which could reasonably result in the inability of Buyer to operate the Hotel as a
“hotel” that rents guest rooms in a manner consistent with Seller’s past practices, or (ii) the Property is damaged
by fire or other casualty, and (A) the value of the Property, portion thereof or interest therein destroyed or damaged, is in excess
of ten percent (10%) of the Purchase Price or (B) if after repair, the Buyer would be unable to operate the Hotel as a “hotel”
that rents guest rooms in a manner consistent with Seller’s past practices, then Buyer, at its option, may within ten (10)
days after receipt of such notice from Seller elect to terminate this Agreement by giving Seller written notice thereof, in which
event this Agreement shall automatically terminate upon delivery of Buyer’s notice thereof, and the parties shall be released
from all further obligations under this Agreement (except for those which expressly survive the termination of this Agreement),
provided that the Deposit shall be paid by Escrow Agent to Buyer. If the Closing Date is within the aforesaid ten (10) day period,
then the Closing Date shall be extended to the next Business Day following the end of said ten (10) day period. If under such circumstances
Buyer elects to complete the Transaction contemplated by this Agreement or if Buyer is not otherwise entitled to Terminate this
Agreement pursuant to this Section 13.2, then this Agreement shall remain in full force and effect, and, subject to the
terms of this Agreement, the Transaction contemplated herein shall be consummated, and at Closing, any right, title, and interest
of Seller in and to any insurance proceeds resulting from any casualty or any awards that have been or may thereafter be made for
any taking or condemnation shall be the property of Buyer, and the Purchase Price shall be reduced by the sum of (1) any amount
representing the deductible amount under the applicable insurance policy, and (2) the amount of any uninsured costs of repair and
restoration associated with such casualty or condemnation.

 

Article
XIV

Apportionments

 

14.1         Apportionments.
The following apportionments shall be made between the parties at the Closing as of 11:59 pm local time at the Property on the
day immediately prior to the Closing Date (the “Apportionment Date”) and the apportionate adjustments shall
be made to the Purchase Price:

 

(a)          real
estate taxes, personal property taxes, special assessments and vault charges, if any, on the basis of the fiscal year for which
the same are levied, imposed or assessed, and regardless of which the same become a lien or are payable (which apportionments shall
be calculated on the basis of the most recent available tax bill if the current bill is not then available); [NOTE: TAX PRORATIONS
IN COOK COUNTY, IL ARE GENERALLY HANDLED DIFFERENTLY: provided, however, the parties acknowledge that real estate taxes are
paid one year in arrears in two installments, with the final amount of taxes for a year being definitively determined when the
second installment bill for such year is issued in the succeeding calendar year. If the 2014 second installment bill is not issued
prior to the Closing, then the remaining unpaid 2014 taxes and the portion of 2015 taxes relating to the period from January 1,
2014 through the day immediately preceding the Closing shall be prorated at Closing based on the final 2013 taxes and shall be
re-prorated when the 2014 second installment bill is issued based on the actual 2014 taxes, and then again re-prorated in 2016
when and at such time as each 2015 installment bill is issued. If the 2014 second installment bill is issued prior to the Closing,
then Seller shall either pay such final installment prior to Closing or provide Buyer with a credit for the amount of the second
installment, and the portion of 2015 taxes relating to the period from January 1, 2015 through the day immediately preceding the
Closing shall be prorated at Closing based on the final 2014 taxes, and then again re-prorated in 2016 when and at such time as
each 2015 installment bill is issued.]

 

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(b)          amounts
which have been prepaid, accrued or are due and payable under the Contracts, Equipment Leases and Permits;

 

(c)          all
rental payments due for the month in which Closing occurs received by Seller from tenants under the Space Leases prior to the Closing
Date. Buyer shall receive a credit for all assignable security deposits held by Seller under the Space Leases which are not transferred
to Buyer, and Buyer thereafter shall be obligated to refund or apply such deposits in accordance with the terms of such Space Leases;

 

(d)          prepaid
advertising expenses;

 

(e)          commissions
of credit and referral organizations; and

 

(f)          all
other charges and fees customarily prorated and adjusted in similar transactions in [State: _________________].

 

14.2         Room
Revenue; Receivables and Payables and Inventory. Except as otherwise expressly set forth herein, all revenues received
or to be received on account of room rents for the period prior to and including the Apportionment Date shall belong to Seller
(with Buyer to remit such revenues to Seller to the extent any such revenues are paid to Buyer following Closing, and all such
revenues for the period beginning on the day immediately following the Apportionment Date shall belong to Buyer). The Accounts
Receivable of registered guests at the Property who have not checked out and were occupying rooms as of 11:59 p.m. on the Apportionment
Date are collectively called the “Guest Ledger”, and Buyer shall purchase the Guest Ledger for the Property
from Seller; provided, however, all room revenues for the night preceding Closing will be divided evenly between Seller and Buyer.
All Accounts Receivable relating to the Hotel in respect of the period prior to the Apportionment Date (but expressly excluding
the Guest Ledger) shall be for Seller’s sole account, and Buyer shall not be responsible to Seller for the collection or
payment of same. Notwithstanding the foregoing, payments received by either party that are identified or otherwise recognized as
relating to such Accounts Receivable shall be promptly turned over to the applicable party. The provisions in this Section 14.2
shall survive Closing.

 

14.3         Food
and Beverage Revenue; Vending Machine Revenue. Any and all revenues earned or derived by Seller from the operation of the
Hotel or the sale of goods or services to guests, patrons, or occupants of the Hotel on or before the Apportionment Date, other
than revenues described in Section 14.2, but including, without limitation, revenues from the sale of food, the sale of
alcoholic and non-alcoholic beverages, rental of meeting and banquet rooms, telephone sales, pay television sales, valet and parking
services, and other similar revenues, together with any sales tax or other taxes thereon, shall belong to Seller. Vending machine
proceeds shall be counted as close to the Apportionment Date as is possible and the net amount thereof shall be credited to Seller
at Closing.

 

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14.4         Guests’
Property. All baggage or other property of patrons of the Hotel checked or left in care of Seller shall be listed in an
inventory to be prepared in duplicate and signed by Seller’s and Buyer’s representatives on the Closing Date. Buyer
shall be responsible from and after the Closing Date and will indemnify and hold Seller harmless from and against all claims for
all baggage and property listed in such inventory. The provisions of this Section 14.4 shall survive Closing.

 

14.5         Gift
Shop Operations. Gift shop operations, if any, shall be adjusted as of 11:59 p.m. on the Apportionment Date. Income received
at or prior to the Apportionment Date shall be for the account of Seller, and income received after 11:59 p.m. on the Apportionment
Date shall be for the account of Buyer, with Seller being credited for the amount of any cash on hand on the morning of the Closing
Date.

 

14.6         Employee
Compensation. Seller shall, or shall cause Hotel Manager to, pay to Hotel Employees on the next payroll date, as provided
in and subject to Section 12.9, all earned wages and benefits that any Hotel Employee is owed, as of the Closing Date.

 

14.7         Inventories.
Seller shall be responsible for payments of amounts owing to third parties in respect of Inventories ordered by Seller in respect
of the Property prior to the Closing Date to the extent such items have been delivered to the Hotel prior to the Closing Date.
Subject to Seller’s continuing obligations under Section 7.1 hereof, to the extent such Inventories are delivered
to the Hotel on or after the Closing Date and were ordered in ordinary course of business, Buyer shall be responsible for payment
of the same.

 

14.8         Taxes.
Seller shall be solely responsible for payment of property taxes and assessments with respect to the period on or prior to the
Apportionment Date, and Buyer shall be solely responsible for payment of such property taxes and assessments with respect to the
period after the Apportionment Date. To the extent that the actual property taxes differ from the amount apportioned at Closing,
the parties shall make all necessary adjustments by appropriate payments between themselves following Closing. All necessary adjustments
shall be made within fifteen (15) Business Days after the tax bill for the current year is received. Except to the extent that
Buyer has received a credit therefor, Seller shall remain responsible for all property taxes and assessments accrued for periods
ending on or prior to the Apportionment Date (whenever assessed or billed). Buyer shall be responsible for all property taxes and
assessments accrued for periods beginning after the Apportionment Date. Either Seller or Buyer may file a tax appeal or protest
for the fiscal year in which the Closing Date occurs, and Buyer shall be permitted to file any such tax appeal or protest after
the Closing and shall then have the exclusive right to file with respect to all periods occurring thereafter. Notwithstanding anything
contained in this Article XIV to the contrary, (i) Seller shall be entitled to the full amount of any refunds or rebates
resulting from any property tax appeals or requests for reassessments by Seller for tax years prior to the tax year in which the
Closing occurs, and (ii) if Seller or Buyer has filed a tax appeal or request for reassessment for the tax year in which the
Closing occurs, then the filing party shall be responsible for processing and settling any such appeals and the non-filing party
shall share the amount of any rebate or refund resulting therefrom (after first paying to the filing party all reasonable costs
and expenses incurred by the filing party in pursuing such appeal or reassessment) in proportion to their respective periods of
ownership of the Hotel for such tax year. For purposes of determining the rebate or refund resulting from any such reassessment
relative to the tax year in which the Closing occurs, all reasonable costs and expenses of Seller incurred in connection with the
filing or prosecution of such claim shall be deducted and paid to Seller before making the allocations set forth in the preceding
sentence. This Section 14.8 shall survive the Closing as well as the Termination of this Agreement.

 

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14.9         Utility
Charges. Seller and Buyer shall use commercially reasonable efforts
to obtain readings for all utilities as of the Closing Date. If readings cannot be obtained as of the Closing Date, the cost of
such utilities shall be prorated between Seller and Buyer by estimating
such cost on the basis of the most recent bill for such service; provided, however, that after the Closing, Seller and Buyer shall
reprorate the amount for such utilities and pay any deficiency in the original proration to the other party promptly upon receipt
of the actual bill for the relevant billing period, which obligation shall survive the Closing. Buyer shall be responsible
for causing such utilities and services to be changed to its name and shall be liable for and shall pay all utility bills for services
rendered after the Apportionment Date.

 

14.10         Bookings
and Vouchers. Buyer shall receive a credit for the value of all valid Vouchers and for all prepaid deposits for Bookings
scheduled to occur on or after the Closing Date, except to the
extent such deposits are transferred to Buyer. With respect to Vouchers, the value of such Vouchers shall be determined by Buyer
and Seller, acting reasonably, based upon the operational cost to the Hotel and historical redemption of such Vouchers.

 

14.11         Cash.
Seller shall receive a credit for all cash on hand or on deposit in any house bank at the Hotel which shall remain on deposit
for the benefit of Buyer. Buyer and Seller shall make mutually satisfactory
arrangements for counting such cash and determining the balances in the operating accounts as of 12:01 a.m. (local time for the
Hotel) on the Closing Date.

 

14.12         Accounting.
Except as otherwise expressly provided in this Agreement, all apportionments and adjustments shall be made in accordance with the
Uniform System of Accounts and, to the extent not inconsistent therewith, generally accepted accounting principles. The computation
of the adjustments shall be jointly prepared by Seller and Buyer, and reviewed by representatives of both Buyer and Seller. To
the extent the exact amount of any adjustment item provided for in this Article XIV cannot be precisely determined on the
Closing Date, the parties shall estimate the amount thereof, for purposes of computing the net amount due Seller or Buyer pursuant
to this Article XIV and shall determine the exact amount thereof as soon thereafter as is reasonably practicable but not
later than ninety (90) days after the Closing Date (with no time limit for any reproration of taxes or utilities), and the net
amount due Seller or Buyer, if any, shall be paid in cash by the party obligated therefor within ten (10) days following the date
of such determination by the parties. The provisions of Article XIV shall survive the Closing until fully performed.

 

Article
XV

Miscellaneous

 

15.1         Assignment.
Buyer shall not assign, transfer or convey its rights or obligations under this Agreement or with respect to the Property without
the prior written consent of Seller, which consent Seller may withhold in its sole and absolute discretion; provided, however,
Buyer shall have the right, without obtaining Seller’s consent as aforesaid, to designate any Affiliate as its nominee to
receive title to the Property, or assign all of its right, title and interest in this Agreement to any Affiliate of Buyer by providing
written notice to Seller no later than three (3) Business Days prior to the Closing; provided, however, that (a) such Affiliate
remains an Affiliate of Buyer, (b) Buyer shall not be released from any of its liabilities and obligations under this Agreement
by reason of such designation or assignment, and (c) such designation or assignment shall not be effective until Buyer has provided
Seller with a fully executed copy of such designation or assignment and assumption instrument, in form and substance reasonably
satisfactory to Seller. Buyer shall be responsible to pay any additional transfer tax as a result of such designation or assignment,
if any. Seller may not assign or otherwise transfer its interest under this Agreement. Subject to the foregoing, this Agreement
shall inure to the benefit of and be binding upon the parties hereto and their respective permitted successors, assigns, heirs,
and legal representatives.

 

    	41

    	 

    

 

15.2         Applicable
Law. This Agreement shall be governed by, and construed in accordance with, the Laws of Georgia, without resort to the
choice of law rules thereof.

 

15.3         Headings;
Exhibits. The headings of articles and sections of this Agreement are inserted only for convenience; they are not to be
construed as a limitation of the scope of the particular provision to which they refer. All exhibits attached or to be attached
to this Agreement are incorporated herein by this reference.

 

15.4         Notices.
Notices and other communications required by this Agreement shall be in writing and (i) delivered by hand with receipt; (ii) sent
by recognized overnight delivery service; (iii) sent by certified or registered mail, postage prepaid, with return receipt requested
or (iv) by electronic mail or facsimile transmission during normal business hours with a confirmation copy delivered by another
method permitted under this Section. All notices shall be addressed as follows:

 

	If to Buyer:	c/o American Realty Capital
	 	405 Park Avenue, 14th Floor
	 	New York, New York  10022
	 	Attention: Paul Hughes
	 	Fax: (212) 421-5799
	   	Email: phughes@arlcap.com
	 	 
	With a copy to:	Hunton & Williams LLP
	 	2200 Pennsylvania Avenue, N.W.
	 	Washington, D.C. 20037
	 	Attention: Rori H. Malech
	 	Fax: (202) ___-_____
	 	Email: rmalech@hunton.com
	 	 
	If to Seller:	[Seller: ____________________]
	 	2000 Monarch Tower
	 	3424 Peachtree Road
	 	Atlanta, GA 30326
	 	Attention: Mark K. Rafuse
	 	Fax: (404) 832-3825
	 	Email: mark.rafuse@nobleinvestment.com

 

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	With a copy to:	Morris, Manning & Martin, LLP
	 	3343 Peachtree Road, N.E.
	 	Suite 1600
	 	Atlanta, Georgia  30326
	 	Attention:  Thomas S. Gryboski, Esq.
	 	Fax:  (404) 365-9532
	 	Email: tgryboski@mmmlaw.com

 

or to such other address as may be designated
by a proper notice. Notices shall be deemed to be effective upon receipt (which a facsimile print-out confirmation shall be deemed
to satisfy) or refusal of the addressee to accept delivery.

 

15.5         Waiver.
The failure of either party to insist on strict performance of any of the provisions of this Agreement or to exercise any right
granted to it shall not be construed as a relinquishment or future waiver; rather, the provision or right shall continue in full
force. No waiver of any provision or right shall be valid unless it is in writing and signed by the party giving it.

 

15.6         Partial
Invalidity. If any part of this Agreement is declared invalid by a court of competent jurisdiction, this Agreement shall
be construed as if such portion had never existed, unless this construction would constitute a substantial deviation from the general
intent of the parties as reflected in this Agreement.

 

15.7         Entire
Agreement. This Agreement, together with the other writings signed by the parties and incorporated herein by reference
and together with any instruments to be executed and delivered under this Agreement, including the Side Letter, constitutes the
entire agreement between the parties with respect to the purchase and sale of the Property and supersedes all prior oral and written
understandings. Any amendments to this Agreement shall not be effective unless in writing and signed by the parties hereto.

 

15.8         Time
is of the Essence. Time is of the essence with respect to performance of all obligations under this Agreement.

 

15.9         Waiver
of Jury Trial. Seller and Buyer each hereby waives any right to jury trial in the event any party files an action relating
to this Agreement or to the transactions or obligations contemplated hereunder.  

 

15.10         Counterparts.
This Agreement may be executed in separate counterparts, none of which need contain the signatures of all parties, each of which
shall be deemed to be an original, and all of which taken together constitute one and the same instrument. It shall not be necessary
in making proof of this Agreement to produce or account for more than the number of counterparts containing the respective signatures
of, or on behalf of, all of the parties hereto.

 

15.11         Brokerage.
Buyer and Seller each represents and warrants to the other that it has dealt with no broker or agent is entitled to the payment
of a commission for services rendered in connection with the transactions contemplated herein other than the Broker which shall
be paid by Seller pursuant to a separate written agreement. Each of the parties hereto agrees to indemnify and hold the other harmless
from claims made by any other broker, attorney or finder claiming through such party for a commission, fee or compensation in connection
with this Agreement or the sale of the Property hereunder. The provisions of this Section 15.11 shall survive Closing or
earlier termination of this Agreement.

 

    	43

    	 

    

 

15.12         Construction.
The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement or any amendment or modification hereof or any of the closing documents delivered by Buyer or Seller hereunder.

 

15.13         Attorneys’
Fees. If either party hereto fails to perform any of its obligations under this Agreement or if any dispute arises between
the parties hereto concerning this Agreement, then the defaulting party or the party not prevailing in such dispute, as the case
may be, shall pay any and all reasonable costs and expenses incurred by the other party on account of such default and/or in enforcing
or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys’ fees and disbursements.
Any such attorneys’ fees and other expenses incurred by either party in enforcing a judgment in its favor under this Agreement
shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys’ fees
obligation is intended to be severable from the other provisions of this Agreement and to survive and not be merged into any such
judgment. The provisions of this Section 15.13 shall survive Closing or any termination of this Agreement.

 

15.14         Confidentiality
and Public Announcements. Except as specifically provided herein or as required by applicable Laws (including, without
limitation, any filing with the Securities and Exchange Commission or any applicable stock exchange rule), neither party shall
disclose any of the terms or provisions of this Agreement to any person or entity not a party to this Agreement, nor shall either
party issue any press releases or make any public statements (print, broadcast or otherwise) relating to this Agreement or the
transactions contemplated hereunder, unless Buyer and Seller consent to such disclosures in writing, which consent shall not be
unreasonably withheld, conditioned or delayed. [NTD: FOR MONTEREY ONLY: Seller may provide information to the Hotel Employees’
Union as the Seller determines is necessary to satisfy any obligation of the Labor Agreement or the National Labor Relations Act
(including, upon request of the Union, providing a copy of this Agreement, redacted as to financial terms) regarding the sale and
bargain with respect to it and shall provide Buyer with a copy of any such communications.] Except as specifically provided
herein or as required by applicable Laws, prior to the Closing, Buyer shall keep all materials provided or made available to Buyer
by Seller or Seller’s agents, and all materials generated by Buyer in the course of conducting its inspections, review of
books and records, and other due diligence activities relating to the Hotel (including, without limitation, matters relating to
the environmental condition of either Hotel), whether obtained through documents, oral or written communications, or otherwise
(collectively, the "Information"), in the strictest confidence; provided, however, Buyer may make necessary disclosures
to potential lenders, rating agencies, partners, attorneys, and consultants required in connection with Buyer's evaluation of the
transactions contemplated under this Agreement provided that Buyer shall notify each such party of the confidential nature of the
Information. Except as specifically provided herein or as required by applicable Laws, prior to Closing, under no circumstances
shall any of the Information be used for any purpose other than the investigation of the Hotel in connection with its purchase
by Buyer as contemplated under this Agreement. This Section 15.14 shall survive the Closing or earlier termination of this
Agreement.

 

    	44

    	 

    

  

15.15         Time
for Performance. If the date for the performance of any obligation, or the giving of any notice, by Seller or Buyer hereunder
falls upon a day other than a Business Day, then the time for such performance or the giving of such notice shall be extended until
the next Business Day.

 

15.16         Further
Assurances. Each party agrees to execute and deliver, after the Closing, such forms of corrective assignments, bills of
sale or other documentation as the other party may reasonably request to carry out the intent of this Agreement. This Section
15.16 shall survive Closing.

 

15.17         No
Third-Party Beneficiaries. The provisions of this Agreement and of the documents to be executed and delivered at Closing
are and will be for the benefit of Seller and Buyer only and are not for the benefit of any third party, and accordingly, no third
party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing.

 

15.18         Section
1031 Exchanges. Buyer and Seller agree that, at either Buyer’s or Seller’s sole election, this transaction
may be structured as an exchange of like-kind properties under Section 1031 of the Tax Code, and the regulations and proposed regulations
thereunder. The parties agree that if either wishes to make such election, it must do so by written notice to the other party at
least five (5) Business Days prior to the Closing Date. If either so elects, the other shall reasonably cooperate, provided any
such exchange is consummated pursuant to an agreement that is mutually acceptable to Buyer and Seller and which shall be executed
and delivered on or before the Closing Date. The electing party shall in all events be responsible for all costs and expenses related
to the Section 1031 exchange and shall fully indemnify, defend and hold the other harmless from and against any and all liability,
claim, damages, expenses (including reasonable attorneys’ fees, expenses and disbursements), proceedings and causes of action
of any kind or nature whatsoever arising out of, connected with or in any manner related to such 1031 exchange that would not have
been incurred by the non-electing party if the transaction were a purchase for cash. In no event shall any party be required to
take record title to any property other than the Property in connection with such transaction.

 

15.19         Updated
Financials.  Seller shall from time to time upon written request and reasonable advance notice from Buyer, provide
Buyer and its representatives with access to all financial and other information in its possession or control relating to Seller
which is deemed relevant and reasonably necessary, in the opinion of Buyer’s outside, third party accountants to enable Seller’s
independent auditors to timely prepare, at Buyer’s sole cost and expense (which expense shall include, but not be limited
to, audit fees and costs associated with creating stand-alone financial statements for the Hotel), financial statements in compliance
with any or all requirements of (i) Rule 3-05 of Regulation S-X of the Securities and Exchange Commission, (ii) any other rule
or applicable law issued by the Securities and Exchange Commission or securities exchange and applicable to Buyer or (iii) any
registration statement, report or disclosure statement filed or furnished with the Securities and Exchange Commission by, or on
behalf of, Buyer.  In connection with the foregoing, and in furtherance of Seller’s obligation to assist Buyer pursuant
to this Section 15.19, Seller covenants and agrees to execute customary audit representation letters, in form and substance
reasonably satisfactory to Buyer and Seller. This Section 15.19 shall survive the Closing for twelve (12) months.

 

[SIGNATURE PAGE FOLLOWS]

 

    	45

    	 

    

 

IN WITNESS WHEREOF, Seller
and Buyer have caused this Hotel Purchase and Sale Agreement to be executed as of the Effective Date indicated above.

 

 

	 	SELLER:
	 	 	 	 
	 	[Seller: ___________], a Delaware limited liability company
	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 
	 	 	Title:	 

 

    	46

    	 

    

 

	 	BUYER:
	 	 	 	 
	 	AMERICAN REALTY CAPITAL HOSPITALITY PORTFOLIO NBL, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 
	 	 	Title:	 

 

    	47

    	 

    

  

JOINDER

 

[_______________________________]
(the “Joinder Party”), hereby joins in the execution of this Agreement and by execution hereof the Joinder Party
acknowledges that the closing of the transactions contemplated by this Agreement will materially benefit the Joinder Party. Accordingly,
the Joinder Party agrees to be bound by and jointly and severally liable for, and hereby guarantees to Buyer (i) from and after
the Closing Date, the due and punctual performance of, all of the obligations and indemnities of Seller, including, without limitation,
those set forth in Sections 6.2, 12.3, 12.4, 12.9, 15.11, 15.13, and 15.14 of this Agreement, but only to the extent
the Closing occurs and subject in all events to the limitations set forth in Section 12.1, Section 12.2, and Section
12.3 of the Agreement, and (ii) the obligations of Seller set forth in Section 2.3 of the Side Letter.

 

The terms of this Joinder
and the Joinder Party’s obligations hereunder are a continuing and irrevocable obligation of the Joinder Party and shall
remain in full force and effect until payment, performance and/or observation in full of the obligations hereunder. The Joinder
Party’s guaranty and liability under this Joinder are absolute and unconditional and shall not be affected, released, terminated,
discharged or impaired, in whole or in part. The Joinder Party expressly waives the following: (w) notice of acceptance of this
Agreement; (x) any requirement of promptness, diligence, presentment, protest, notice of dishonor and notice of demand; and (y)
the right to trial by jury in any action or proceeding of any kind arising on, under, out of, or by reason of or relating, in any
way, to its obligations under this Joinder, or the interpretation, breach or enforcement of such obligations; and (z) all rights
of subrogation and any other claims that it may now or hereafter acquire against Seller that arise from the existence, payment,
performance or enforcement of the Joinder Party's obligations under this joinder until such time as the Joinder Party's obligations
under this Joinder are performed and paid in full. The Joinder Party's guaranty under this Joinder is a present guaranty of payment
and performance and not of collection.

 

The Joinder Party hereby
represents and warrants to Buyer that:

 

(a)          The
Joinder Party owns a direct or indirect interest in Seller and will derive substantial benefit from the transactions contemplated
by this Agreement.

 

(b)          The
Joinder Party has full power, right and authority to (i) execute and deliver this Joinder, (ii) perform its obligations hereunder
and (iii) consummate the transactions contemplated hereby. The execution, delivery and performance of this Joinder and the consummation
of the transactions contemplated hereby have been duly and properly authorized by proper corporate action in accordance with applicable
law and with the Organizational Documents of the Joinder Party. This Joinder has been duly and validly executed and delivered by
the Joinder Party. This Joinder, when executed and delivered by the Joinder Party will constitute the legal, valid and binding
agreement of the Joinder Party, enforceable against the Joinder Party in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws of general applicability
relating to or affecting creditors' rights or by general equity principles..

 

    	48

    	 

    

 

 

 

In witness whereof, the undersigned has
executed this Joinder as of ____________ 2015.

 

JOINDER PARTY:

 

    	49

    	 

    

 

EXHIBITS

 

	A	Legal Description of Land
	B	Form of Escrow Instructions
	C	Form of Deed
	D	Form of Bill of Sale
	E	Form of Assignment and Assumption
	F	Form of Owner’s Affidavit
	3.2	Allocation of Purchase Price
	4.4	List of Proceedings
	4.6	List of Material Contracts
	4.7	List of Material Equipment Leases
	4.9	List of Space Leases
	4.12	Insurance Policies
	4.13	Notices of Violations
	4.21	2015 Operating Budget and 2015 Capital Expenditure Plan
	4.26	Environmental Matters

 

    	50

    	 

    

 

Schedule A

 

(attached to and made a part of that
certain Purchase and Sale Agreement by and among [SELLER: ___________], as Seller
and AMERICAN REALTY CAPITAL HOSPITALITY PORTFOLIO NBL, LLC, as Buyer, dated as of June ___, 2015)

 

“Accounts
Receivable” means all amounts which Seller is entitled to receive from the operation of the Hotel prior to Closing and
which are not paid as of the Closing, including, without limitation, charges for the use or occupancy of any guest, conference
or banquet rooms or other facilities at the Property prior to Closing, any restaurant, bar or banquet services, or any other goods
or services provided by or on behalf of Seller at the Property prior to Closing, but expressly excluding all (i) credit card charges,
checks and other instruments which Seller has submitted or payment as of the Closing, and (ii) items of income otherwise prorated
hereunder.

 

“Act of Bankruptcy”
shall mean if a party hereto shall (a) apply for or consent to the appointment of, or the taking of possession by, a receiver,
custodian, trustee or liquidator of itself or of all or a substantial part of its Property, (b) admit in writing its inability
to pay its debts as they become due, (c) make a general assignment for the benefit of its creditors, (d) file a voluntary
petition or commence a voluntary case or proceeding under the Federal Bankruptcy Code (as now or hereafter in effect), (e) be
adjudicated a bankrupt or insolvent, (f) file a petition seeking to take advantage of any other law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts, (g) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in involuntary case or proceeding under the Federal Bankruptcy
Code (as now or hereafter in effect), or (h) take any limited liability company, trust or corporate action for the purpose
of effecting any of the foregoing; or if a proceeding or case shall be commenced, without the application or consent of a party
hereto, in any court of competent jurisdiction seeking (1) the liquidation, reorganization, dissolution or winding-up, or
the composition or readjustment of debts, of such party, (2) the appointment of a receiver, custodian, trustee or liquidator
of such party or all or any substantial part of its assets, or (3) other similar relief under any law relating to bankruptcy,
insolvency, reorganization, winding-up or composition or adjustment of debts, and such proceeding or case shall continue undismissed;
or an order (including an order for relief entered in an involuntary case under the Federal Bankruptcy Code, as now or hereafter
in effect) judgment or decree approving or ordering any of the foregoing shall be entered and continue unstayed and in effect,
for a period of sixty (60) consecutive days

 

“Agreement”
is defined in the first paragraph of this Agreement and shall mean this Hotel Purchase and Sale Agreement between Seller and Buyer
including all schedules, exhibits and other attachments hereto, and documents incorporated herein by reference, as it and them
may be amended from time to time as herein provided.

 

“Affiliate”
shall mean as to any entity, any other entity or person that controls, is controlled by or is under common control with such entity
or the members, partners or controlling shareholders of such entity.

 

“Allocation”
is defined in Section 3.2 of this Agreement.

 

    	51

    	 

    

 

“Apportionment
Date” shall have the meaning set forth in Section 14.1 of this Agreement.

 

“Assignment
and Assumption Agreement” shall have the meaning set forth in Section 10.3 of this Agreement.

 

“Bill of Sale”
shall have the meaning set forth in Section 10.2 of this Agreement.

 

“Bookings”
shall have the meaning set forth in Section 2.4 of this Agreement.

 

“Broker”
shall mean Jones Lang LaSalle which Broker has been retained by Seller.

 

“Business
Day” shall mean Monday through Friday excluding Saturday, Sunday or any other day on which national banks in Atlanta,
Georgia are not open for business.

 

“Buyer”
shall have the meaning set forth in the first paragraph of this Agreement.

 

“Buyer Indemnitees”
shall have the meaning set forth in Section 12.7(B)(v) of this Agreement.

 

“Buyer’s
Certificate” shall have the meaning set forth in Section 10.10 of this Agreement.

 

“Buyer’s
Conditions” shall have the meaning set forth in Article VIII of this Agreement.

 

“Closing”
shall mean the consummation and closing of the Transaction.

 

“Closing Date”
shall mean the date on which the Closing occurs, which shall be on or before the Closing Deadline as defined in Section 1.1
of this Agreement.

 

“Closing Deadline”
is defined in Section 1.1 of this Agreement.

 

“Confidential
Materials” shall mean any books, computer software, records or files (whether in a printed or electronic format) that
contain any of the following: appraisals; internal analyses; information regarding the marketing of the Property for sale; submissions
relating to obtaining internal authorization for the sale of the Property by Seller or any direct or indirect owner of any beneficial
interest in Seller; attorney and accountant work product; attorney-client privileged documents; internal correspondence of Seller,
any direct or indirect owner of any beneficial interest in Seller, or any of their respective Affiliates and correspondence between
or among such parties.

 

“Contracts”
shall have the meaning set forth in Section 2.3 of this Agreement.

 

“Deed”
shall have the meaning set forth in Section 10.1 of this Agreement.

 

    	52

    	 

    

 

“Deposit”
shall mean the sum consisting of, individually or collectively, as the context requires, the Initial Deposit, and the Second Deposit,
together with any interest earned thereon.

 

“Due Diligence
Deadline” is defined in Section 1.1 of this Agreement.

 

“Effective
Date” shall have the meaning set forth in the first paragraph of this Agreement.

 

“Environmental
Law” or “Environmental Laws” shall have the meaning set forth in Section 4.26 of this Agreement.

 

“Escrow Agent”
shall mean Chicago Title Insurance Company, whose mailing address is 1515 Market Street, Suite 1325, Philadelphia, PA 19102-1930,
Attention: Edwin G. Ditlow; Telephone: 215-875-4184; Telecopy: 215-732-1203; Email: ditlowe@ctt.com, in its capacity as escrow
agent.

 

“Escrow Instructions”
shall have the meaning set forth in Section 3.1(a) of this Agreement.

 

“Equipment
Leases” shall have the meaning set forth in Section 2.3 of this Agreement.

 

“Excluded
Property” shall have the meaning set forth in Section 2.6 of this Agreement.

 

“Executive
Order” shall have the meaning set forth in Section 4.14 of this Agreement.

 

“Existing
Permittee” shall have the meaning set forth in Section 12.5 of this Agreement.

 

“FF&E”
shall have the meaning set forth in Section 2.2 of this Agreement.

 

“Fixed Asset
Supplies” shall have the meaning set forth in Section 2.2 of this Agreement.

 

“Franchise
Agreement” shall mean that certain that certain _______________ Agreement between Franchisor and Seller (or the predecessor
in title to Seller), concerning the Property and dated ____________, as heretofore amended or modified.

 

“Franchisor”
shall mean ___________________________.

 

“Guest Ledger”
shall have the meaning set forth in Section 14.2 of this Agreement.

 

“Hotel”
shall have the meaning set forth in the Recitals of this Agreement.

 

“Hotel Employees”
shall mean the persons employed by Seller or Hotel Manager to operate the Hotel or work at the Hotel for all other purposes.

 

    	53

    	 

    

 

“Hotel Guest
Data and Information” means all guest or customer profiles, contact information (e.g., addresses, phone numbers, facsimile
numbers and email addresses), histories, preferences and any other guest or customer information in any database of Seller, Hotel
Manager or their respective Affiliates, or in any database of Franchisor to which Seller, Hotel Manager or their affiliates have
access, whether obtained or derived by Seller, Hotel Manager or their Affiliates from: (a) guests or customers of the Hotel
or any facility associated with the Hotel; (b) guests or customers of any other hotel or lodging property owned, leased, operated,
licensed or franchised by any Affiliate of Seller, or any facility associated with such hotels or other properties (including restaurants,
golf courses and spas); or (c) any other sources and databases, including any Franchisor brand websites or central reservations
databases.

 

“Hotel Manager”
shall mean Noble-Interstate Management Group, LLC.

 

“Improvements”
shall have the meaning set forth in Section 2.1 of this Agreement.

 

“Information”
shall have the meaning set forth in Section 15.14(a) of this Agreement.

 

“Initial Deposit”
shall mean the amount of [First Earnest Money: _______________ and No/100 Dollars] ([First Earnest Money: $_______________]), to
the extent the same is deposited by Buyer in accordance with the terms of Section 3.1 hereof, together with any interest
earned thereon.

 

“Insurance
Policy” shall have the meaning set forth in Section 4.12 of this Agreement.

 

“Intangible
Hotel Assets” shall have the meaning set forth in Section 2.5 of this Agreement.

 

“Interim Liquor
Agreement” shall have the meaning set forth in Section 12.5 of this Agreement.

 

“Inventories”
shall have the meaning set forth in Section 2.2 of this Agreement.

 

[NTD: FOR MONTEREY
ONLY] “Labor Agreement” means that certain ____________________ dated __________________.

 

“Land”
shall have the meaning set forth in Section 2.1 of this Agreement.

 

“Law”
shall mean any federal, state or local law, statute, ordinance, code, order, decrees, or other governmental rule, regulation or
requirement.

 

“Management
Agreement” shall mean that certain _______________ Agreement between Hotel Manager and Seller (or the predecessor in
title to Seller), concerning the Property and dated ____________, as heretofore amended or modified.

 

“Material
Contract” shall mean any Contract that involves the payment or receipt of more than Ten Thousand and No/100 Dollars ($10,000)
annually per Contract and not terminable upon thirty (30) days or less notice.

 

    	54

    	 

    

 

“Material
Equipment Lease” shall mean any Equipment Lease that involves the payment of more than Ten Thousand and No/100 Dollars
($10,000) annually per lease and not terminable upon thirty (30) days or less notice.

 

“New Franchise
Agreement” shall have the meaning set forth in Section 12.8 of this Agreement.

 

“New Liquor
Permits” shall have the meaning set forth in Section 12.5 of this Agreement.

 

“New Permittee”
shall have the meaning set forth in Section 12.5 of this Agreement.

 

“Operating
Lease” shall mean that certain Hotel Lease by and between Seller and Operating Tenant dated _______________, as heretofore
amended or modified.

 

“Operating
Tenant” shall mean _________________.

 

“Operating
Tenant Owned Property” shall have the meaning set forth in Section 2.7 of this Agreement.

 

“Permitted
Title Exceptions” shall mean, subject to Buyer’s rights to review and make objection to the status of title and
survey as set forth in this Agreement, and the right of Buyer to Terminate this Agreement pursuant to Section 7.6,
the following: (a) all real estate taxes and assessments not yet due and payable as of the Closing Date; (b) rights of
the tenants under the Space Leases, as tenants only; and (c) any other matters approved as Permitted Title Exceptions in writing
by Buyer prior to Closing or deemed approved as Permitted Title Exceptions pursuant to this Agreement.

 

“Permits”
shall have the meaning set forth in Section 4.11 of this Agreement.

 

“Personal
Property” shall have the meaning set forth in Section 2.2 of this Agreement. 

 

“Property”
shall have the meaning set forth in Section 2.5 of this Agreement.

 

“Property
Material Adverse Effect” shall mean an adverse effect on the ownership of the Property or operation of the Hotel after
the Closing which has resulted in, will result in, or could reasonably be expected to result in, liability or monetary loss to
Buyer in excess of three percent (3%) of the Purchase Price in the aggregate, and the parties agree that any litigation that is
adequately covered by an insurance policy (expressly excluding the related deductible and the uncovered portion of any claim) of
Seller or Hotel Manager shall not create a Property Material Adverse Effect.

 

“Purchase
Price” is defined in the Recitals to this Agreement.

 

“Real Property”
shall have the meaning set forth in Section 2.1 of this Agreement.

 

    	55

    	 

    

 

“Second Deposit”
shall mean the amount of [Second Earnest Money: _______________ and No/100 Dollars] ([Second Earnest Money: $_______________]),
to the extent the same is deposited by Buyer in accordance with the terms of Section 3.1 hereof, together with any
interest earned thereon.

 

“Seller”
shall mean the Seller referenced in the first paragraph of this Agreement.

 

“Seller’s
Certificate” shall have the meaning set forth in Section 10.9 of this Agreement.

 

“Seller’s
Conditions” shall have the meaning set forth in Article IX of this Agreement.

 

“Seller Indemnitees”
shall have the meaning set forth in Section 12.7(B)(v) of this Agreement.

 

“Seller’s
knowledge” shall have the meaning set forth in Section 4.19 of this Agreement.

 

“Side Letter”
shall mean that certain letter agreement by and among Seller and Buyer, and acknowledged and agreed to by Escrow Agent, of even
date herewith with respect to the Transaction contemplated by this Agreement and the purchase and sale of other hotels.

 

“Space Leases”
shall have the meaning set forth in Section 2.3 of this Agreement.

 

“Survey”
shall have the meaning set forth in Section 7.3 of this Agreement.

 

“Tax Code”
means the Internal Revenue Code of 1986 and the regulations promulgated thereunder, as it and them may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

 

“Terminate”
or “Termination” shall mean the termination of this Agreement, by Buyer or Seller as applicable as set forth
in this Agreement, in which event thereafter no party hereto shall have any further rights, obligations or liabilities hereunder
except to the extent that any right, obligation or liability set forth herein expressly survives termination of this Agreement.

 

“Termination
Notice” shall have the meaning set forth in Section 7.4(c) of this Agreement.

 

“Title Commitment”
shall mean a Commitment of the Title Company to issue a Title Policy. 

 

“Title Company”
shall mean Chicago Title Insurance Company, whose mailing address is 1515 Market Street, Suite 1325, Philadelphia, PA 19102-1930,
Attention: Edwin G. Ditlow; Telephone: 215-875-4184; Telecopy: 215-732-1203; Email: ditlowe@ctt.com.

 

“Title Objections”
shall mean any objectionable matters of title or survey (including the description of the Land) which may be revealed by Buyer’s
examinations thereof to which Buyer timely objects in accordance with the terms of Section 7.2.

 

    	56

    	 

    

  

“Title Policy”
shall mean an ALTA Owner’s Policy of Title Insurance (or such other comparable form of title insurance policy as is available
in the jurisdiction in which the Property is located) issued by the Title Company in the amount of the Purchase Price subject
only to the Permitted Title Exceptions.

 

“Transaction”
shall mean the purchase and sale transaction contemplated by this Agreement.

 

“Uniform System
of Accounts” shall mean the Uniform System of Accounts for the Lodging Industry, 11th Revised Edition, prepared
by The Hotel Association of New York City, Inc.

 

[NTD: FOR MONTEREY
ONLY: “Union” means [____________________].

 

“Vouchers”
shall mean all outstanding, unused, unexpired gift certificates issued by Seller as of the Closing Date that entitles the holder
or bearer thereof to a credit (whether in a specified dollar amount or for a specified item, such as room night or meals) to be
applied against the usual charge for rooms, meals and/or goods and services at the Hotel.

 

“WARN Act”
shall mean the Workers Adjustment and Retraining Notification Act and the Regulations promulgated thereunder, as the same has been
amended, as well as any similar state “WARN” type Laws, rules or regulations which are applicable to the Transaction.

 

    	57

    	 

    

 

EXHIBIT A

 

Legal Description

 

    	Exhibit A - 1

    	 

    

 

EXHIBIT B

 

Form of Escrow Instructions

 

FORM OF ESCROW INSTRUCTIONS FOR DEPOSIT

 

June ___, 2015

 

Chicago Title Insurance Company

1515 Market Street, Suite 1325

Philadelphia, PA 19102-1930

Attention: Edwin G. Ditlow

 

		Re:	Deposit under Hotel Purchase and Sale Agreement (the “Agreement”) dated June ___, 2015, by and between [Seller:
___________], a Delaware limited liability company (“Seller”) and American Realty Capital Hospitality
Portfolio NBL, LLC, a Delaware limited liability company (“Buyer”) 

 

Gentlemen and Ladies:

 

Buyer and Seller have
entered into the Agreement with respect to the Hotel described in the Agreement. Capitalized terms used herein but not defined
shall have the same meanings ascribed to them in the Agreement.

 

In accordance with the
Agreement, Buyer is delivering herewith cash in the amount of [First Earnest Money: _______________ and No/100 Dollars] ([First
Earnest Money: $_______________]) (which, along with any interest earned thereon, or as increased by any additional deposit by
Buyer is hereinafter referred to as the “Deposit”). You are to place the Deposit in an interest bearing account (for
this purpose, Buyer’s Federal Employer I.D. number is __________________) and hold the Deposit in escrow and deliver it to
Seller or Buyer in accordance with these instructions.

 

In the event that, prior
to the Due Diligence Deadline, you receive a copy of a Termination Notice from Buyer, you shall, by not later than the second (2nd)
Business Day following receipt of Buyer’s request, return the Deposit (unless Buyer and Seller advise you in writing otherwise)
held by you to Buyer regardless of any instruction to the contrary from Seller.

 

    	Exhibit B - 1

    	 

    

 

In the event that you
have not received a Termination Notice prior to the Due Diligence Deadline, then, if at any time after such date, you receive:
(x) notice from Seller (“Seller’s Default Notice”) stating that (i) Buyer is in default under the
Agreement, and (ii) a copy of Seller’s Default Notice has been delivered to Buyer by the same method as it was delivered
to you, you shall, on the tenth (10th Business Day after receipt of Seller’s Default Notice, deliver the Deposit
(by delivering cash, certified check, wire transfer or some other form of immediately available funds, to Seller at c/o Noble Investment
Group, LLC, 2000 Monarch Tower, 3424 Peachtree Road, NE, Atlanta, Georgia 30326, or such other address as Seller may request) to
Seller, except that if you receive written notice from Buyer or Buyer’s counsel within ten (10) Business Days after receipt
of Seller’s Default Notice that Buyer disputes Seller’s right to receive the Deposit and directs you not to make the
foregoing delivery, you shall not deliver the Deposit to Seller but shall instead retain it or, if appropriate, interplead the
Deposit in a court of competent jurisdiction or (y) notice from Buyer (“Buyer’s Default Notice”)
stating that (i) Seller is in default under the Agreement or one of Buyer’s Conditions has not been satisfied by Closing,
and (ii) a copy of Buyer’s Default Notice has been delivered to Seller by the same method it was delivered to you, you shall,
on the fifth (5th) Business Day after receipt of Buyer’s Default Notice, deliver the Deposit (by wire transfer or some other
form of immediately available funds, to such account as Buyer may request) to Buyer, except that if you receive written notice
from Seller or Seller’s counsel within three (3) Business Days after receipt of Buyer’s Default Notice that Seller
disputes Buyer’s right to receive the Deposit and directs you not to make the foregoing delivery, you shall not deliver the
Deposit to Buyer but shall instead retain it or, if appropriate, interplead the Deposit in a court of competent jurisdiction.

 

You are not to disclose
to any person (other than the parties hereto, their employees, agents or independent contractors) any information about the Agreement
or its existence or this letter of instructions (except if requested by either party or as may be required by court in any litigation
or by law).

 

You are to maintain
the Deposit in a federally-insured interest-bearing account in a national banking association or such other account and/or institution
as Buyer and Seller may approve, and all interest accruing thereon shall be paid to the party entitled to the Deposit under the
terms of the Agreement. We understand that you assume no responsibility for, nor will we hold you liable for, any loss accruing
due to bank failure and/or takeover by a federal regulatory agency, or which arises solely from the fact that the escrow amount
exceeds Two Hundred Fifty Thousand Dollars ($250,000.00) and that the excess amount is not insured by the Federal Deposit Insurance
Corporation. Nor shall you be required to institute legal proceedings of any kind pursuant to these instructions, nor be required
to defend any legal proceedings which may be instituted against you with respect to the subject matter of these instructions unless
you are requested to do so by Buyer or Seller and arrangements reasonably satisfactory to you have been made to indemnify you against
the cost and expense of such defense by the party making such request. If any dispute shall arise with respect to these instructions,
whether such dispute arises between the parties hereto or between the parties hereto and other persons, you may interplead such
disputants. You shall be responsible only for the performance of such duties as are strictly set forth herein and in no event shall
you be liable for any act or failure to act under the provisions of this letter except where such action or inaction is the result
of your willful misconduct or gross negligence.

 

Seller and Buyer each
hereby agrees to indemnify you and hold you harmless against any loss, liability or damage (including the cost of litigation and
reasonable counsel fees) incurred in connection with the performance of your duties hereunder except as a result of your willful
misconduct or gross negligence. If you incur any such loss, liability or damage in connection with any dispute between Seller and
Buyer, then, as between Seller and Buyer, the party that does not substantially prevail in such dispute shall be responsible for
the entire amount of such loss, liability or damage.

 

    	Exhibit B - 2

    	 

    

  

You agree that any notice
to be delivered or given to you hereunder may be given in accordance with the terms and provisions of the Agreement to you at your
address as set forth on your counterpart signature page.

 

You also agree to act
as “the person responsible for closing” the Transaction pursuant to Section 6045(e) of the Tax Code. In connection
therewith, you agree to prepare and file all informational returns, including IRS Form 1099 S and otherwise to comply with the
provisions of said Section 6045(e).

 

Please indicate your
agreement to comply with the foregoing instructions by executing at least two copies of this letter and returning one to c/o Hunton
& Williams LLP, 2200 Pennsylvania Avenue, N.W., Washington, D.C. 20037, Attn: Rori H. Malech, counsel for Buyer, and one to
Morris, Manning & Martin, LLP, 3343 Peachtree Road, NE, Suite 1600, Atlanta, Georgia 30326, Attn: Thomas S. Gryboski, counsel
for Seller.

 

	 	Very truly yours,
	 	 
	 	SELLER:
	 	 
	 	[Seller: ___________], a Delaware limited liability company
	 	 
	 	By:	       	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

    	Exhibit B - 3

    	 

    

 

	 	BUYER:
	 	 
	 	AMERICAN REALTY CAPITAL HOSPITALITY 

PORTFOLIO NBL, LLC, a Delaware limited liability company
	 	 
	 	By:	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

    	Exhibit B - 4

    	 

    

 

ACKNOWLEDGED AND AGREED:

 

CHICAGO TITLE INSURANCE

COMPANY

 

	By:	 	 
	Name:	 	 
	Its:	 	 
	 	 	 
	Date:	 	 

 

Notice Address:

 

Chicago Title Insurance Company

1515 Market Street, Suite 1325

Philadelphia, PA 19102-1930

Attention: Edwin G. Ditlow

 

    	Exhibit B - 5

    	 

    

 

EXHIBIT C

 

Form of Deed

 

[NOTE: TO CONFIRM FORM OF DEED WITH LOCAL COUNSEL AND TITLE
COMPANY]

 

	 

 (Space above this line for recording purposes)

 

When Recorded Return to:

 

	 	 	 
	 	 	 
	 	 	 

 

SPECIAL WARRANTY DEED

 

THIS DEED, made on this ____ day of ________,
20____ by [Seller: ___________], a Delaware limited liability company (“Grantor”),
to _______________________, a ___________________ (“Grantee”),
having an address at________________________________________________, (to include their respective successors, successors-in-title,
heirs, executors, administrators, legal representatives, and assigns where the context requires or permits).

 

WITNESSETH:

 

Grantor, for and in
consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration in hand paid by Grantee to
Grantor at and before the sealing and delivery hereof, the receipt and sufficiency of which are hereby acknowledged, by these presents
does hereby grant, bargain, sell, alien, convey and confirm unto the said Grantee fee simple title to all that tract or parcel
of land situated in [County: _________________] County, [State: _________________] more particularly described on Exhibit
A attached hereto and incorporated herein by this reference (the “Land”), TOGETHER WITH all buildings
and other improvements situated thereon or attached thereto and all tenements, hereditaments, improvements, appurtenances, rights,
easements, licenses, benefits and rights-of-way appurtenant thereto, including, without limitation, all water and mineral rights,
entitlements, development rights and all easements, rights and other interests appurtenant thereto (hereinafter, collectively,
the “Property”).

 

    	Exhibit C - 1

    	 

    

 

This conveyance and
the warranties of title herein are expressly made subject only to those encumbrances, easements and other matters specifically
identified and listed on Exhibit B attached hereto and incorporated herein by reference (collectively, the “Permitted
Exceptions”), but only to the extent such Permitted Exceptions are valid, subsisting and do in fact affect the Property.

 

TO HAVE AND TO HOLD
the Property unto Grantee and Grantee’s successors and assigns forever in fee simple.

 

And the said Grantor
does hereby bind Grantor and Grantor’s successors and assigns to WARRANT and FOREVER DEFEND, all and singular, the Property
unto Grantee and Grantee’s successors and assigns, against every person whomsoever lawfully claiming or to claim the same
or any part thereof by, though or under Grantor, but not otherwise, subject only to the Permitted Exceptions expressly contained
herein.

 

    	Exhibit C - 2

    	 

    

 

IN WITNESS WHEREOF,
Grantor has caused these presents to be executed in its name and on its behalf under seal as of the day and year first above
written.

 

	 	 	GRANTOR:
	 	 	 
	Attest	 	[Seller: ___________], a Delaware limited liability company
	 	 	 
	 	 	By:	 	 
		 	 	Name:	 	 
	 	 	 	Title:	 	 
	 	 	 	 	 
	Attest	 	 	 	 

 

    	Exhibit C - 3

    	 

    

 

ACKNOWLEDGEMENT

 

	STATE OF _______________	)
	 	) SS
	COUNTY OF ___________________	)

On this, the ____ day
of ______________, 20______, before me, a Notary Public, the undersigned officer, personally appeared [________________], who acknowledged
himself to be the [______________] of [____________________], and that he as such officer, being authorized to do so, executed
the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as such officer.

 

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

 

	 	 
	 	Notary Public
	 	[Notarial Seal]
	My commission expires:	 

 

    	Exhibit C - 4

    	 

    

 

EXHIBIT “A” to Deed

 

LEGAL DESCRIPTION

 

    	Exhibit C - 5

    	 

    

 

EXHIBIT “B” to Deed

 

[PERMITTED EXCEPTIONS]

 

    	Exhibit C - 6

    	 

    

 

EXHIBIT D

 

Form of Bill of Sale

 

BILL OF SALE

 

This
BILL OF SALE (this “Bill of Sale”) is made and entered into on this ____ day of ____________,
20____ (the “Closing Date”), by and between [Seller: ___________],
a Delaware limited liability company (“Seller”), and __________________________________, a
(“Buyer”).

 

RECITALS

 

WHEREAS, Seller
and American Realty Capital Hospitality Portfolio NBL, LLC (the “Original Buyer”), entered into that certain
Hotel Purchase and Sale Agreement, dated as of June ___, 2015 (as the same may be amended from time to time, the “Purchase
Agreement”) pursuant to which Seller has agreed to sell, assign, transfer and convey to Original Buyer certain property
including that certain hotel commonly known as the “[Project Name: _____________]”.

 

WHEREAS, Original
Buyer’s rights under the Purchase Agreement have been assigned to Buyer pursuant to that certain Assignment and Assumption
of Purchase and Sale Agreement by and between Original Buyer and Buyer dated ____________, 20___.

 

WHEREAS, in
connection with the sale and purchase of the Property pursuant to the Purchase Agreement, Seller has agreed to sell, transfer and
convey to Buyer all of its right, title and interest in and to the Personal Property, including, without limitation, the FF&E,
Fixed Asset Supplies and Inventories (collectively, the “Personal Property”). Unless otherwise defined herein,
all capitalized terms have the meanings ascribed to such terms in the Purchase Agreement.

 

IN CONSIDERATION OF
the receipt of Ten Dollars ($10.00) and other good and valuable consideration in hand paid by Buyer to Seller, the receipt and
sufficiency of which are hereby acknowledged and confessed by Seller, Seller and Buyer do hereby agree as follows:

 

AGREEMENTS

 

1.          Recitals.
The foregoing recitals are true, correct and by this reference incorporated herein.

 

2.          Personal
Property. Seller does hereby sell, convey, assign, transfer, set over, and deliver to Buyer, its successors and assigns,
all of Seller's right, title and interest in the Personal Property and Buyer hereby purchases and accepts all of the Personal Property,
as of the date hereof.

 

    	Exhibit D

    	 

    

 

SELLER EXPRESSLY DISCLAIMS
ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, REGARDING THE ABOVE-DESCRIBED PERSONAL PROPERTY, INCLUDING, WITHOUT LIMITATION,
ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR ENVIRONMENTAL CONDITION, AND BUYER ACCEPTS THE ABOVE-DESCRIBED
PROPERTY IN AN “AS IS - WHERE IS” CONDITION, WITH ALL FAULTS.

 

3.          Binding
Effect. This Bill of Sale shall be binding upon and inure to the benefit of Buyer, Seller and their respective successors
and assigns.

 

4.          Governing
Law. This Bill of Sale shall be subject to and governed by the laws of the State of Georgia.

 

5.          Counterparts.
This Bill of Sale may be executed in any number of counterparts, each of which shall be deemed an original and all of which
counterparts together shall constitute one agreement with the same effect as if the parties hereto had signed the same signature
page.

 

[Signatures appear
on following pages.]

 

    	Exhibit D

    	 

    

 

IN WITNESS WHEREOF,
Seller and Buyer have caused this Bill of Sale to be executed effective as of the date first above written.

 

	 	SELLER:
	 	 
	 	[Seller: ___________], a Delaware limited liability company
	 	 
	 	By:	 	 
	 		Name:	 	 
	 		Title:	 	

 

    	Exhibit D

    	 

    

 

	 	BUYER:
	 	 
	 	______________________________________, a
	 	______________________________________
	 	 
	 	By:	                                                      	 
	 	Name:	 	 
	 	Title:	 	 

 

    	Exhibit D

    	 

    

 

EXHIBIT E

 

Form of Assignment and Assumption Agreement

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT
AND ASSUMPTION AGREEMENT (this “Assignment”) is made and entered into as of the ___ day of ___________,
20____, by and between [Seller: ___________], a Delaware limited liability
company (“Assignor”), and ________________________________, a (“Assignee”).

 

RECITALS

 

WHEREAS, Assignor,
as seller, and American Realty Capital Hospitality Portfolio NBL, LLC, as buyer, (the “Original Buyer”) entered
into that certain Hotel Purchase and Sale Agreement, dated as of June ___, 2015 (as the same may be amended from time to time,
the “Purchase Agreement”) pursuant to which Assignor has agreed to sell, assign, transfer and convey to Original
Buyer certain property including that certain hotel commonly known as the “[Project Name: _____________]”.

 

WHEREAS, Original
Buyer’s rights under the Purchase Agreement have been assigned to Assignee by that certain Assignment and Assumption of Purchase
and Sale Agreement by and between Original Buyer and Assignee of even date herewith.

 

WHEREAS, in
connection with the sale and purchase of the Property pursuant to the Purchase Agreement, Assignor agreed to assign to Assignee
all of Assignor’s right, title and interest in and to all Transferred Intangible Assets (as hereinafter defined). Unless
otherwise defined herein, all capitalized terms used herein shall have the meaning given to such term in the Purchase Agreement.

 

In
consideration of the foregoing and Ten Dollars ($10.00) and other good and valuable consideration in hand paid by Assignee
to Assignor, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee do hereby agree as follows:

 

1.          Assignment.
Assignor hereby transfers, assigns and sets over to Assignee all of Assignor’s right, title, and interest in and to all Transferred
Intangible Assets, including without limitation: (a) the Bookings; (b) the Contracts; (c) the Space Leases; (d)
the Equipment Leases; and (e) all Intangible Hotel Assets (collectively, the “Transferred Intangible Assets”),
if and only to the extent the same may be assigned or quitclaimed by Assignor.

 

2.          Assumption.
Assignee does hereby assume all of the obligations, liabilities and expenses of Assignor with respect to the Transferred Intangible
Assets arising or accruing from and after the date hereof, and agrees to perform and keep all covenants, agreements and obligations
to be performed thereunder arising from and after the date hereof.

 

    	Exhibit E

    	 

    

 

3.          Governing
Law. This Assignment will be governed by, and construed and interpreted in accordance with the laws of the State of Georgia.

 

4.          Further
Assurances. Assignor and Assignee covenant with each other that it will execute or procure any additional reasonable documents
necessary to establish the rights of other hereunder.

 

5.          Binding
Effect. This Assignment shall be binding upon and inure to the benefit of Assignor, Assignee and their respective successors
and assigns.

 

6.          Counterparts.
This Assignment may be executed by the parties in counterparts, in which event the signature pages thereof shall be combined in
order to constitute a single original document.

 

[Signatures appear on following page.]

 

    	Exhibit E

    	 

    

 

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

 

	 	ASSIGNOR:
	 	 
	 	[Seller: ___________], a Delaware limited liability company
	 	 
	 	By:	 	             
	 		Name:	 
	 		Title:	 

 

    	Exhibit E

    	 

    

 

	 	ASSIGNEE:
	 	 
	 	__________________________________, a
	 	__________________________________
	 	 
	 	By:	               	 
	 	Name:	                                     	 
	 	Title:	           	 

 

    	Exhibit E

    	 

    

 

EXHIBIT F

 

[NOTE: TO CONFIRM FORM WITH TITLE COMPANY]

 

Form
of Owner’s Affidavit

 

BEFORE ME, the undersigned authority, personally
appeared ______________ (the “Affiant”), not individually, but as _______________ of [Seller:
___________], a Delaware limited liability company (the “Company”), who, being first duly sworn upon oath,
deposes and says that he is duly authorized to and does make this affidavit and the agreements set forth herein to his actual knowledge:

 

1.          The
Company is the record owner in fee simple of certain real property in [___________] County, [__________], more particularly described
on the attached Exhibit “A” (the “Property”).

 

2.          The
Affiant makes this affidavit, on behalf of the Company, in order to induce Chicago Title Insurance Company (the “Title Insurer”),
to insure the Special/Limited Warranty Deed made by the Company of even date herewith.

 

3.          To
Affiant’s knowledge, except for ____________________________________, the Company has made no outstanding contracts for the
furnishing of any labor, materials or services to the Property or to the improvements on the Property, which have not been paid
to date or which have been or will be paid in the ordinary course of business.

 

4.          To
Affiant’s knowledge, except for ______________________________________, all labor, materials or services (if any) for which
a lien could be claimed against the fee interest in the Property were either furnished, completed and in place not less than ninety
(90) days prior to the date of this affidavit or all charges for any such labor, materials or services, whenever furnished, have
been paid in full or will be paid in full as of closing or in the ordinary course of business.

 

5.          To
Affiant’s knowledge, the Property is free and clear of all liens (including mechanic’s, materialman’s or laborer’s
liens), taxes, encumbrances, claims, demands and judgments of every nature, kind and description whatsoever, except for the lien
of real estate taxes for the year 2015 and subsequent years, and except for those matters disclosed in the Title Insurer’s
Commitment No. ___________ (the “Title Commitment”).

 

6.          To
Affiant’s knowledge, there are no outstanding unrecorded easements, contracts for sale, agreements for deed, options to purchase,
deeds or liens affecting the property or any portion thereof.

 

7.          To
Affiant’s knowledge, there are no federal or state tax claims, liens or penalties assessed against the Company, and there
are no judgments against the Company unsatisfied of record in the courts of any state or of the United States of America.

 

8.          No
proceedings in bankruptcy have ever been brought by or against the Company, nor has the company made any assignment for the benefit
of creditors at any time.

 

    	Exhibit F

    	 

    

 

9.          Other
than hotel guests, the Company is in exclusive possession of the Property and to the Affiant’s knowledge, no person, firm
or corporation has any interest, claim of possession or contract to purchase with respect to the Property which is not a matter
of record in the Public Records of _________ County, ____________, and there are no facts known to Affiant which would give rise
to such a claim being asserted against the Property, except for tenants in possession, as tenants only, as shown on Exhibit
“B” attached hereto.

 

[SIGNATURE ON FOLLOWING
PAGE]

 

    	Exhibit F

    	 

    

 

	Executed this ___ day of ___________, 2015
	 
	[Seller: ___________], a Delaware limited liability company
	 
	By:	 	 
		Name:	 	 
		Title:	 	 
	 
	 	 	 

 

    	Exhibit F

    	 

    

 

EXHIBIT 3.2

 

Allocation of Purchase Price

  

    	Exhibit 3.2

    	 

    

 

EXHIBIT 4.4

 

List of Proceedings

 

    	Exhibit 4.4

    	 

    

 

EXHIBIT 4.6

 

List of Material Contracts

 

[NOTE: MAY INCLUDE CONTRACTS THAT ARE NOT
MATERIAL]

 

    	Exhibit 4.6

    	 

    

 

EXHIBIT 4.7

 

List of Material Equipment Leases

 

[NOTE: MAY INCLUDE EQUIPMENT LEASES THAT
ARE NOT MATERIAL]

  

    	Exhibit 4.7

    	 

    

 

EXHIBIT 4.9

 

List of Space Leases

 

    	Exhibit 4.9

    	 

    

 

EXHIBIT 4.12

 

Insurance Policies

 

[see following pages]

 

    	Exhibit 4.12

    	 

    

 

EXHIBIT 4.13

 

Notices of Violations

 

    	Exhibit 4.13

    	 

    

 

EXHIBIT 4.21

 

2015 Operating Budget and 2015 Capital
Expenditure Plan

 

[see following pages]

 

    	Exhibit 4.21

    	 

    

 

EXHIBIT 4.26

 

Environmental Matters

 

    	Exhibit 4.26

    	 

    

 

EXHIBIT 12.5

 

Interim Liquor Agreement

  

[see following pages]

 

    	Exhibit 12.5EXHIBIT 10.38

 

June 15, 2015

 

NF II Columbus, LLC

1000 Aguajito, LLC

Noble I Boston-Waltham, LLC

Noble I Birmingham, LLC

Noble I/HY Atlanta, LLC

Noble I/HY Minneapolis, LLC

Noble I/HY Fairlawn, LLC

Noble I/HY Princeton, LLC

Noble I/HY FW Cityview, LLC

Noble I/HY FW Hurst, LLC

Noble I Boston, LLC

Noble I Schaumburg, LLC

Noble I/HY Atlanta Overton Park, LLC

Noble I Atlanta OP Land Co, LLC

(each a “Seller”), and collectively, “Sellers”)

 

c/o Noble Investment Group

2000 Monarch Tower

3424 Peachtree Road, NE

Atlanta, GA 30326

Attention: Mr. Mark K. Rafuse

 

		Re:	Certain Hotel Purchase and Sale Agreements between American Realty Capital Hospitality Portfolio
NBL, LLC, a Delaware limited liability company, as “Buyer,” and each of the Sellers listed above, as “Sellers”

 

Reference is hereby
made to each of those certain Hotel Purchase and Sale Agreements entered into between Buyer and Sellers as of the date hereof and
more particularly described on Schedule 1 attached hereto (collectively, the “Purchase Agreements”) with
respect to the sale and purchase of the respective hotels described on Schedule 1 attached hereto (collectively, the “Properties”).
Any capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Purchase Agreements.

 

Buyer and Sellers acknowledge
and agree that this letter agreement (and the extension and termination rights set forth herein), and each Buyer’s and each
Seller’s execution hereof, is a material inducement and condition precedent to Buyer and Sellers executing and delivering
each and every Purchase Agreement.

 

Notwithstanding the
fact that Buyer and Sellers are executing thirteen (13) separate Purchase Agreements for the purchase and sale of the Properties,
Buyer and Sellers agree that, notwithstanding anything to the contrary in any of the Purchase Agreements, each of the undersigned
hereby agrees as follows:

 

    	1

    	 

    

 

1.          Buyer
Termination Prior to Due Diligence Deadline. Each Buyer and Seller acknowledge and agree that if Buyer delivers a Termination
Notice on or prior to the Due Diligence Deadline under any Purchase Agreement, then, all other Purchase Agreements shall be deemed
automatically terminated as of the date of such Termination Notice and in such event, Buyer shall receive from Escrow Agent an
immediate (but, in any event, no later than two (2) Business Days after the date of such Termination Notice) return of the entire
Deposits under each and every Purchase Agreement. If, however, Buyer does not terminate any Purchase Agreement prior to the Due
Diligence Deadline, then, Buyer shall deposit the Second Deposit in accordance with the respective terms and conditions of the
Purchase Agreements and the failure to do so under each and every Purchase Agreement will give Sellers the right, until all such
portions of the Second Deposit are in fact deposited, to terminate all of the Purchase Agreements in which case the Initial Deposits
shall be immediately (but, in any event, within two (2) Business Days after such Termination) delivered to Sellers, as Sellers’
sole and exclusive remedy, and the Second Deposits theretofore advanced thereunder shall be immediately (but, in any event, within
two (2) Business Days after such Termination) returned to the Buyer, as Buyer’s sole and exclusive remedy.

 

2.          
Termination Rights.

 

2.1           Casualty/Condemnation.
In the event that from and after the Due Diligence Deadline, a Buyer Terminates a Purchase Agreement pursuant to Article XIII (Casualty
or Condemnation) thereof, (i) such Termination shall not result in the Termination of any of the other Purchase Agreements, and
(ii) Buyer shall receive a return of the Deposit attributable to the Purchase Agreement so Terminated.    

 

2.2           Intervening
Liens. In the event that from and after the expiration of the Due Diligence Period, a Buyer Terminates a Purchase Agreement
pursuant to Section 7.2(c) (Title Insurance) thereof, (i) such Termination shall not result in the Termination of any of the other
Purchase Agreements, (ii) such Buyer shall receive a return of the Deposit attributable to the Purchase Agreement so Terminated
by such Buyer, and (iii) such Buyer shall have the right to avail itself of any remedies in Section 11.2 (Seller’s Default)
thereof to the extent provided in such Section 7.2(c).

 

2.3           Seller
Default. In the event Buyer Terminates a Purchase Agreement pursuant to Section 11.2(b) (Seller’s Default) thereof, (i)
such Termination shall not result in the Termination of any of the other Purchase Agreements, and (ii) Buyer shall be entitled
to the remedies set forth in Section 11.2(b) with respect to the Terminated Purchase Agreement.  Furthermore, for the avoidance
of doubt, the failure of a Seller to obtain any third-party consent which is a Buyer’s Condition and which is not in such
Seller’s control shall not be deemed a Seller’s default or a breach of the applicable Purchase Agreement giving a Buyer
the right to Terminate a Purchase Agreement pursuant to Section 11.2(b); provided, however, that Buyer shall still have its right
to Terminate the Purchase Agreement as set forth in Section 8.7, if applicable. Notwithstanding the foregoing or anything to the
contrary set forth herein or in the Purchase Agreements, if a Seller, on or prior to the scheduled Closing Date under a Purchase
Agreement, intentionally and willfully breaches such Purchase Agreement due specifically to the occurrence of either such Seller
(x) has sold the applicable Property to someone other than Buyer or (y) has entered into a purchase and sale agreement to sell
the applicable Property to someone other than Buyer while such Purchase Agreement is in effect and Buyer’s notice of default
to Seller in such instance includes in bold that Buyer elects to Terminate such Purchase Agreement, subject to the notice and cure
period set forth in Section 11.2 of the Purchase Agreement, and intends to exercise its remedy under this Section 2.3 and details
the alleged intentional and willful breach(s) of Seller thereunder, Buyer shall have the right to contemporaneously with such Termination,
to Terminate all of the other Purchase Agreements (if the transactions under such Purchase Agreements have not previously closed)
and if Buyer Terminates all of the other Purchase Agreements, Buyer shall be entitled to receive a return of the Deposits held
by Escrow Agent at the time of the Termination (for the avoidance of doubt, the Initial Deposit, the Second Deposit and any Extension
Deposit) and Seller shall pay Buyer (A) its out of pocket third party expenses related to the Transactions contemplated by the
Purchase Agreements (not to exceed 0.75% of the aggregated Purchase Price of the Purchase Agreements) plus any associated
financing fees and costs attendant to the Transactions (for the avoidance of doubt, including without limitation any fees paid
to Buyer’s lender, reasonable legal fees of Buyer and its lender and any other third party fees paid by Buyer or its lender),
and (B) a “break-up fee” of $30,000,000. Under no circumstances shall Buyer have the right to exercise any remedy set
forth in this Section 2.3, including without limitation the payment of a “break-up fee”, unless notice is provided
as set forth above.

 

    	2

    	 

    

 

2.4           Buyer
Default. In the event Seller Terminates a Purchase Agreement pursuant to Section 11.1 (Buyer’s Default) thereof, at Seller’s
option, Seller shall have the right but not the obligation (i) to Terminate all Purchase Agreements that have not previously closed
and receive Deposits (within two (2) Business Days after the date of such Termination) attributable to all such Purchase Agreements,
or (ii) not Terminate any of the other Purchase Agreements (but such Termination shall not give Seller a right of recission with
respect to any Properties that may have closed prior to the date of such Termination), and avail itself of any remedies in Section
11.1 with respect to the Terminated Purchase Agreement.

 

2.5           Buyer
Termination – New Franchise Agreement. In the event Buyer Terminates a Purchase Agreement pursuant to Section 12.8 (New
Franchise Agreement) thereof, Sellers shall have the option to Terminate all Purchase Agreements within five (5) Business Days
of Buyer’s Termination notice and in such event, Buyer shall receive from Escrow Agent an immediate (but, in any event, no
later than two (2) Business Days after the date of such Termination Notice) return of the entire Deposits under each and every
Purchase Agreement.

 

3.          No
Limitation of Remedies. Except as expressly set forth herein, nothing in this letter agreement shall be deemed to limit any
Seller’s rights under Section 11.1 (Buyer’s Default) of any of the Purchase Agreements or Buyer’s rights and
remedies under Section 11.2 (Seller’s Default) or Section 4.28 (Seller’s Warranties Deemed Modified) of any of the
Purchase Agreements. For the avoidance of doubt, except as expressly set forth herein, the Termination of any Purchase Agreement
pursuant to Section 11.1 (Buyer’s Default), Section 11.2 (Seller’s Default) or Section 4.20 (Seller’s Warranties
Deemed Modified) thereof shall not result in the Termination of any other Purchase Agreement(s).

 

4.          Staged
Closings. The Closings will be staged in three sub-portfolios of Properties as described on Schedule 1. The total Purchase
Price for each sub-portfolio pursuant to the applicable Purchase Agreements will be paid on the respective Closing Date.

 

Tranche 1: November
2, 2015

 

Tranche 2: December
31, 2015, subject to a 60 day adjournment right as described below.

 

Tranche 3: March
31, 2016, subject to a 60 day adjournment right as described below.

 

    	3

    	 

    

 

Each Buyer shall have
the option, exercisable in its sole discretion by written notice delivered to their respective Seller, to accelerate the scheduled
Closing Date (with respect to Tranche 2 and Tranche 3 and provided the entire Tranche is accelerated), upon ten (10) Business Days’
notice prior to the accelerated Closing Date, provided, that, it shall not be a failure of Seller’s Conditions to Closing
under Section 9.5 of the Purchase Agreements if Buyer fails to close on such accelerated Closing Date so long as the Transaction
closes on or prior to the original scheduled Closing Date. Each Buyer (with respect to Tranche 2 and Tranche 3) shall have the
option, exercisable in its sole discretion by written notice delivered to their respective Seller in no event later than ten (10)
Business Days prior to the initial scheduled Closing Date in its respective Purchase Agreement (the “Extension Notice”),
to extend such initial scheduled Closing Date one time for up to 60 days for such Tranche (or if such day is not a Business Day,
the first Business Day thereafter) for such Tranche. If Buyer elects to adjourn the scheduled Closing Date, then, Buyer shall deliver
to Escrow Agent an additional deposit in the amount of five percent (5%) of the Purchase Price attributable to the Tranche being
adjourned (the “Extension Deposit”), which Extension Deposit shall be deposited by Buyer in immediately available
funds with Escrow Agent on or prior to then scheduled Closing Date for the applicable Tranche. Upon payment of an Extension Deposit
by Buyer, the Extension Deposit (and any interest thereon) shall be allocated among the Purchase Agreements in proportion to the
Deposits thereunder and become part of the “Deposit” under each of the applicable Purchase Agreements and shall be
applied to the applicable Purchase Price in accordance therewith.

 

At the Tranche 1 Closing,
$8,000,000 of the aggregate amount of Deposits held by the Escrow Agent pursuant to the Purchase Agreements shall be applied against
the Purchase Price for the applicable Properties closing as of the Tranche 1 Closing on a pro-rata basis based on the final allocation
of the Purchase Prices for such Properties as set forth on Schedule 1 (as may be updated by the parties hereto); provided, however,
if Escrow Agent is holding more than $8,000,000 pursuant to such Purchase Agreements for the Tranche 1 Closing, any excess amount
of Deposits shall be transferred to, and held by, Escrow Agent as Deposits under the Purchase Agreements associated with the Tranche
3 Closing on a pro-rata basis based on the final allocation of the Purchase Prices for the Tranche 3 Closing.

 

At the Tranche 2 Closing,
$8,000,000 of the aggregate amount of Deposits held by the Escrow Agent pursuant to the Purchase Agreements shall be applied against
the Purchase Price for the applicable Properties closing as of the Tranche 2 Closing on a pro-rata basis based on the final allocation
of the Purchase Prices for such Properties as set forth on Schedule 1 (as may be updated by the parties hereto); provided, however,
if Escrow Agent is holding more than $8,000,000 pursuant to such Purchase Agreements for the Tranche 2 Closing, any excess amount
of Deposits shall be transferred to, and held by, Escrow Agent as Deposits under the Purchase Agreements associated with the Tranche
3 Closing on a pro-rata basis based on the final allocation of the Purchase Prices for the Tranche 3 Closing.

 

At the Tranche 3 Closing,
the remaining Deposits being held by the Escrow Agent pursuant to the Purchase Agreements shall be applied against the Purchase
Price for the applicable Properties closing as of the Tranche 3 Closing on a pro-rata basis based on the final allocation of the
Purchase Price for such Properties as set forth on Schedule 1 (as may be updated by the parties hereto).

 

5.          Extensions.
In the event Closing is postponed under any one or more Purchase Agreement(s) pursuant to Paragraph 4 above, Section 4.28 (Seller’s
Warranties Deemed Modified), Section 7.2(c) (Title Insurance), Section 8.8 (Failure of a Condition), Section 11.2 (Seller’s
Default) or Section 13.2 (Risk) thereof, Closing shall automatically be postponed under the remaining Purchase Agreements for the
applicable Tranche for a corresponding period of time.

 

6.          Termination
of Contracts and Equipment Leases. Section 2.6(g) of each of the Purchase Agreements provide that Sellers shall terminate certain
Contracts and Equipment Leases in accordance with the terms of Section 2.6(g) and the costs of such terminations shall be split
between Sellers and Buyer. The parties agree that the aggregate cost to Sellers for all such terminations of Contracts and Equipment
Leases shall not exceed $100,000 and any additional cost shall be a Buyer’s expense.

 

    	4

    	 

    

 

7.          Limitations
to Sellers’ Liability. Section 12.2 of the Purchase Agreements provide that the Seller’s aggregate liability to
Buyer for all post-Closing breaches and/or indemnities shall not exceed two percent (2%) of the Purchase Price (other than as expressly
set forth in the Purchase Agreements) (the “PSA Liability Cap”). The parties acknowledge and agree that notwithstanding
the provisions of Section 12.2 of the Purchase Agreements, Buyer shall have the right to aggregate the individual amounts of the
PSA Liability Caps of each Purchase Agreement that has closed for purposes of claims made subject to and in accordance with Section
12.2 of the Purchase Agreement under each Purchase Agreement individually and in the aggregate, subject in all cases to reduction
for prior claims; provided however, the aggregated PSA Liability Cap with respect to claims made pursuant to and in accordance
with the Purchase Agreement by and between Buyer and NF II Columbus, LLC shall be not exceed $1,500,000. For the avoidance of doubt,
regardless of the timing of the occurrence of an event giving rise to a claim by Buyer or the timing of the making of such claim
by Buyer pursuant to Section 12.2 of the Purchase Agreement (subject to the Survival Period under Section 12.2), the full amount
of the PSA Liability Cap shall be available to Buyer for all Purchase Agreements that have closed at such time Buyer is awarded
damages with regard to any such claim.

 

8.          Closing
Costs. The parties hereby agree that closing costs payable in accordance with Section 6.2 of the Purchase Agreements shall
be split as set forth on Schedule 2 attached hereto.

 

9.          Updates
to Representations and Warranties. Sellers shall have the right to amend and update the representations and warranties set
forth in Article IV of the Purchase Agreements within three (3) Business Days of the Effective Date upon written notice
to Buyer and such representations and warranties shall be deemed modified as of the Effective Date.

 

10.         Miscellaneous.

 

(i)          Each
of the undersigned acknowledges that it was represented by counsel in connection with the negotiation and drafting of the Purchase
Agreement to which it is a party and this letter agreement. Accordingly, any rule of law or any legal decision that would require
interpretation of any claimed ambiguities in any Purchase Agreement or this letter agreement against the party that drafted such
agreement has no application and is expressly waived.

 

(ii)         The
following provisions from the Purchase Agreements are hereby incorporated by reference into this letter agreement: Section 15.1
(Assignment); Section 15.2 (Applicable Law); Section 15.4 (Notices); Section 15.5 (Waiver); Section 15.6 (Partial Invalidity);
Section 15.8 (Time is of the Essence); Section 15.9 (Waiver of Jury Trial); Section 15.10 (Counterparts); Section 15.12 (Construction);
Section 15.13 (Attorney’s Fees); Section 15.14 (Confidentiality); and Section 15.15 (Time for Performance).

 

(iii)        For
all purposes of this letter agreement and the Purchase Agreements, notice to Noble Investment Group, LLC, 2000 Monarch Tower, 3424
Peachtree Road, NE, Atlanta, Georgia 30326, Attention: Mark K. Rafuse, with a copy to Morris, Manning & Martin, LLP, 3343 Peachtree
Road, NE, Suite 1600, Atlanta, Georgia 30326, Attn: Thomas S. Gryboski, shall be deemed to constitute notice to all applicable
Sellers without the necessity of separate notice to each and every applicable Seller.

 

(iv)        Each
of the parties hereto represents to the other that it has the legal power, right and authority to enter into this letter agreement
and that the individuals executing this letter agreement on behalf of each of Buyer and each Seller have the legal power, right
and actual authority to bind Buyer and such Seller, respectively, to the terms and conditions hereof. All references in each of
the Purchase Agreements to “this Agreement” shall be deemed to mean the applicable Purchase Agreement as amended by
this letter agreement. In the event of a conflict between the Purchase Agreements and this letter agreement, this letter agreement
shall control.

 

[SIGNATURES ON THE FOLLOWING PAGES]

 

    	5

    	 

    

 

Should the terms of
this letter agreement be acceptable to you, please confirm your agreement to same by acknowledging below and returning a countersigned
copy.

 

	 	Sincerely,
	 	 
	 	Buyer:
	 	 
	 	American Realty Capital Hospitality Portfolio NBL, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Paul C. Hughes
	 	Name: Paul C. Hughes
	 	Title: Authorized Signatory

 

	Sellers:	 
	 	 
	NF II COLUMBUS, LLC, a Delaware	 
	 	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 
	1000 Aguajito, llc, a Delaware limited	 
	liability company	 
	 	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 	 
	NOBLE I BOSTON-WALTHAM, llc, a	 
	Delaware limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 

 

    	 

    	 

    

 

	NOBLE I BIRMINGHAM, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 
	NOBLE I/HY ATLANTA, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 	 
	NOBLE I SCHAUmBURG, LLC,	 
	 	 
	a Delaware limited liability company	 
	By:	Noble I Schaumburg Manager, Inc., its	 
	 	manager	 

 

	 	By:	/s/ Mark K. Rafuse	 
	 	Name:  Mark K. Rafuse	 
	 	Title:  Vice President	 

 

	NOBLE I/HY MINNEAPOLIS, LLC, a	 
	Delaware limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 	 
	NOBLE I/HY FAIRLAWN, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 

 

    	 

    	 

    

 

	NOBLE I/HY PRINCETON, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 	 
	NOBLE I/HY FW CITYVIEW, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 	 
	NOBLE I/HY FW HURST, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 

 

NOBLE I/HY Atlanta
Overton Park, LLC, a Delaware

limited liability company

 

	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 
	 	 	 
	NOBLE I ATLANTA OP LAND CO, llc, a	 
	Georgia limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 

 

    	 

    	 

    

 

	NOBLE I/HY BOSTON, LLC,	 
	a Delaware limited liability company	 
	 	 
	By:	/s/ Mark K. Rafuse	 
	Name:  Mark K. Rafuse	 
	Title:  Vice President	 

 

    	 

    	 

    

 

	 	ACKNOWLEDGED AND AGREED FOR PURPOSES OF SECTIONS 2.3 AND 8 HEREOF:
	 	 
	 	NOBLE HOSPITALITY FUND, LLC, a Delaware limited liability company
	 	 	 
	 	By:	Noble Investment Management, LLC, a Delaware limited liability company, its manager

 

	 	By:	/s/ Mark K. Rafuse
	 	 	Name: Mark K. Rafuse
	 	 	Title: Vice President

 

	 	NOBLE HOSPITALITY FUND II, L.P. , a Delaware limited partnership
	 	 	 
	 	By:       Noble Hospitality Fund II GP, LLC, a Delaware limited liability company, its General Partner

 

	 	By:	/s/ Mark K. Rafuse
	 	 	Name: Mark K. Rafuse
	 	 	Title: Vice President

 

    	 

    	 

    

 

	ACKNOWLEDGED AND AGREED:	 
	 	 
	CHICAGO TITLE INSURANCE COMPANY	 
	 	 
	 	 
	By:	  /s/ Edwin G. Ditlow  	 
	Name: Edwin G. Ditlow	 
	Title: Vice President	 

 

    	 

    	 

    

 

SCHEDULE 1

 

Description of Purchase Agreements

 

 

    	 

    	 

    

 

 Schedule 2

 

Closing Costs

 

	HOTEL	 	RECORDING

    FEES	 	ESCROW

    AND
 CLOSING

    CHARGES	 	 	BASE TITLE

    COMMITMENT
 AND POLICY

    PREMIUMS	 	 	TITLE

    SEARCH	 	ENDORSEMENTS	 	TRANSFER

    TAXES	 	 	MANSION

    TAX
	Courtyard Columbus
 Downtown	 	Buyer	 	 	50/50	 	 	 	50/50		 	Seller	 	Buyer	 	 	Seller	 	 	N/A
	Hyatt House Cobb Galleria	 	Buyer	 	 	50/50	 	 	 	50/50		 	Buyer	 	Buyer	 	 	Seller	 	 	N/A
	Hilton Garden Inn Monterey	 	Buyer	 	 	50/50	 	 	 	50/50		 	Buyer	 	Buyer	 	 	50/50		 	N/A
	Hyatt Place Chicago/Schaumburg	 	Buyer	 	 	50/50	 	 	 	Seller	 	 	Seller	 	Buyer	 	 	Seller	 	 	N/A
	Hilton Birmingham Perimeter Park	 	Buyer	 	 	50/50	 	 	 	Seller	 	 	Seller	 	Buyer	 	 	Buyer	 	 	N/A
	Hilton Garden Inn Boston Waltham	 	Buyer	 	 	50/50	 	 	 	Buyer	 	 	Buyer	 	Buyer	 	 	Seller	 	 	N/A
	Hyatt House Boston Waltham	 	Buyer	 	 	50/50	 	 	 	Buyer	 	 	Buyer	 	Buyer	 	 	Seller	 	 	N/A
	Hyatt Place Princeton	 	Buyer	 	 	50/50	 	 	 	Buyer	 	 	Buyer	 	Buyer	 	 	Seller	 	 	Buyer
	Hyatt Place Atlanta Perimeter	 	Buyer	 	 	50/50	 	 	 	50/50		 	Buyer	 	Buyer	 	 	Seller	 	 	N/A
	Hyatt Place Paramus Fair Lawn	 	Buyer	 	 	50/50	 	 	 	Buyer	 	 	Buyer	 	Buyer	 	 	Seller	 	 	Buyer
	Hyatt Place Fort Worth/City View	 	Buyer	 	 	50/50	 	 	 	Seller	 	 	Buyer	 	Buyer	 	 	N/A	 	 	N/A
	Hyatt Place Fort Worth/Hurst	 	Buyer	 	 	50/50	 	 	 	Seller	 	 	Buyer	 	Buyer	 	 	N/A	 	 	N/A
	Hyatt Place Minneapolis	 	Buyer	 	 	50/50	 	 	 	50/50		 	Buyer	 	Buyer	 	 	Seller	 	 	N/A

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