Document:

EXHIBIT 10.20

 EXHIBIT 10.20 
  
 PURCHASE AGREEMENT 
  
 BETWEEN 
  
 RLJ TAMPA HOTEL, LLC, 
  
 AS SELLER, 
  
 AND

  
 BARCELO CRESTLINE CORPORATION, 
  
 AS PURCHASER 
  
 October 10, 2003 

 Definitions: The following capitalized terms used in this Agreement are defined in the sections indicated below:

  

	Accountants	  	Section 13.6
	Additional Deposit	  	Section 2.3
	Agreement	  	Introduction
	Apportionment Date	  	Section 13.1
	Bankruptcy Code	  	Section 3.24
	Bill of Sale	  	Section 9.2
	Closing	  	Section 5.1
	Closing Date	  	Section 5.1
	Contract Date	  	Introduction
	Contracts	  	Section 1.3
	Current Ledger	  	Section 13.2
	Deed	  	Section 9.1
	Deposit	  	Section 2.3
	Due Diligence Period	  	Section 6.2(b)
	Encumbrances	  	Section 6.2(a)
	Environmental Laws	  	Section 3.13
	Equipment Leases	  	Section 1.3
	Escrow Agent	  	Section 2.1
	Escrow Instructions	  	Section 2.3
	Existing Debt	  	Section 2.1
	Existing Management Agreement	  	Section 3.9
	Existing Manager	  	Section 1.2
	Extension Deposit	  	Section 5.1
	Extension Notice	  	Section 5.1
	FF&E	  	Section 1.2
	Fixed Asset Supplies	  	Section 1.2
	Franchise Agreement	  	Section 3.9
	Franchisor	  	Section 1.2
	Front Desk Closing Hour	  	Section 13.2
	Hazardous Substances	  	Section 3.13
	Hilton Right of First Offer	  	Section 3.22
	Hotel	  	Section 1.1
	Improvements	  	Section 1.1
	Initial Deposit	  	Section 2.3
	Inventories	  	Section 1.2
	Land	  	Section 1.1
	Lender	  	Section 2.1
	Loan Documents	  	Section 3.26
	Permits	  	Section 3.11
	Permitted Exceptions	  	Section 6.2(b)
	Personal Property	  	Section 1.2
	Property	  	Section 1.3
	Purchase Price	  	Section 2.1

	Purchaser	  	Introduction
	Purchaser Franchise Agreement	  	Section 3.9
	Purchaser Indemnitees	  	Section 11.3
	Scheduled Closing Date	  	Section 5.1
	Seller	  	Introduction
	Seller Knowledge Individual	  	Section 3.29
	Space Leases	  	Section 1.3
	Survey	  	Section 6.3
	Termination Notice	  	Section 6.6(b)
	Title Commitment	  	Section 6.2(a)
	Title Company	  	Section 6.2(a)
	Uniform System of Accounts	  	Section 1.2
	WARN Act	  	Section 6.7

  

 PURCHASE AGREEMENT 
  
 THIS PURCHASE AGREEMENT (this “Agreement”) is executed as of the 10th day of October, 2003 (the
“Contract Date”) by RLJ TAMPA HOTEL, LLC, a Delaware limited liability company (“Seller”), and BARCELO CRESTLINE CORPORATION a Maryland corporation (“Purchaser”). 
  
 ARTICLE I 
 Sale 
  
 Subject to the terms and conditions set forth in this Agreement, Seller agrees to sell and convey to Purchaser, and Purchaser agrees to buy and assume from Seller: 
  
 1.1 Property. All of Seller’s right, title and interest in and to that certain parcel of land more
particularly described in Exhibit A attached hereto (collectively, the “Land”), located in Tampa, Florida, 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, development rights and all easements, rights and other interests appurtenant thereto, and all buildings located on the Land (the
“Improvements”). The Land, and the Improvements located thereon are sometimes referred to hereinafter together as the “Hotel.” 
  

1.2 Personal Property. The following personalty to the extent owned by Seller (collectively the “Personal Property”):
(a) all furniture, furnishings, fixtures, vehicles, rugs, mats, carpeting, appliances, devices, engines, telephone and other communications equipment, televisions and other video equipment, plumbing fixtures and other equipment located in the Hotel
(the “FF&E”), (b) all items included within the definition of “Property and Equipment” under the Uniform System of Accounts for the Lodging Industry, Ninth Revised Edition, as published by the Hotel Association of New
York City, Inc. (the “Uniform System of Accounts”) and used in the operation of the Hotel, including, without limitation, linen, china, glassware, tableware, uniforms and similar items, subject to such depletion prior to the Closing
Date as shall occur in the ordinary course of business (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 intended for sale or resale, fuel, mechanical supplies, stationery, guest supplies, maintenance and housekeeping supplies and other expensed
supplies and similar items (the “Inventories”), provided, however, that to the extent that any applicable law prohibits the transfer of alcoholic beverages from Seller to Purchaser, such beverages shall not be
considered a part of Inventories; (d) to the extent in Seller’s possession or control, all surveys, architectural, consulting 

 
and engineering blueprints, plans and specifications and reports, if any, related to the Hotel, all books and records, if any, related to the Hotel, and any
goodwill of Seller related to the Hotel; and (e) any and all other items of personalty owned by Seller and located at the Hotel, but excluding (i) property of guests, (ii) items or information owned by or proprietary to Hilton Hotels Corporation.
(the “Franchisor”), the franchisor under the Franchise Agreement and (iii) items or information owned by or proprietary to Davison Hotel Company. (the “Existing Manager”), the manager under the Existing Management
Agreement. 
  
 1.3 Contracts and Leases. All rights
of Seller under all written service, maintenance, licensing, concession, and other contracts or agreements related to the maintenance, ownership, use, possession or operation of the Personal Property or the Hotel, other than the Existing Management
Agreement and Franchise Agreement (the “Contracts”), all written leases of personal property located at, or used in the operation of, the Hotel (the “Equipment Leases”) to which Seller or Existing Manager is a party
and, if any, all leases, subleases and other occupancy agreements, which provide for the use or occupancy of space or facilities on or relating to the Hotel (the “Space Leases”) (the Hotel, Personal Property, Contracts, Equipment
Leases and any such Space Leases are collectively, the “Property”). 
  
 ARTICLE II 
 Purchase Price 
  
 2.1 Purchase Price. The purchase price for the Property is TWENTY NINE MILLION FIVE HUNDRED THOUSAND AND
00/100 DOLLARS ($29,500,000.00), subject to adjustment as described in Article XIII below (the “Purchase Price”), which shall be payable on the Closing Date as follows: (i) Purchaser shall assume the outstanding principal balance as
of the Closing Date of the loan made to Seller by Nationwide Life Insurance Company (“Lender”) as evidenced by that certain Promissory Note dated as of June 17, 2002 made by Seller payable to the order of Lender in the original
principal amount of Seventeen Million 00/100 Dollars ($17,000,000.00) (the “Existing Debt”), which Existing Debt is secured among other things, by the Property and (ii) an amount equal to the difference between the Purchase Price
and the sum of the Deposit and the principal balance of the Existing Debt as of the Closing Date, all of which shall be payable in cash on the Closing Date by wire transfer of immediately available funds to Fidelity National Title Insurance Company,
as escrow agent (the “Escrow Agent”).  
  
 2.2 Allocation of Purchase Price. Seller and Purchaser shall agree, within fifteen (15) days after the Contract Date, upon an allocation of the Purchase Price among the Hotel and various items of Personal Property. If Seller
and Purchaser agree on such allocations, the schedule of allocations shall be attached hereto as Exhibit B, and each party agrees to file federal, state and local tax returns consistent with such allocations agreed upon between the
parties. If Seller 
  

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 and Purchaser cannot agree upon such allocations of the Purchase Price within fifteen (15) days after the Contract Date,
each party shall file federal, state and local tax returns based on each party’s own determination of the proper allocations of the Purchase Price, each bearing its own consequences of any discrepancies. 
  
 2.3 Deposit. Within three (3) business days following the
Contract Date, Purchaser shall deliver to the Escrow Agent a deposit in the amount of TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($250,000.00) in immediately available funds (together with any interest earned thereon, the “Initial
Deposit”). If Purchaser does not deliver the Initial Deposit to the Escrow Agent within three (3) business days following the Contract Date, Seller shall have the right to terminate this Agreement by giving written notice to Purchaser, and
neither party shall then have any further liability to the other under this Agreement except as otherwise specifically provided therein. Prior to or on November 24, 2003, unless Purchaser has elected to terminate this Agreement pursuant to the
provisions of Section 6.6(b) hereof, Purchaser shall deliver to the Escrow Agent an additional deposit in the amount of TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($250,000.00) (together with any interest earned thereon, the “Additional
Deposit”) (the Initial Deposit and, when and if made, the Additional Deposit and the Extension Deposit, are sometimes referred to in this Agreement as the “Deposit”). The Escrow Agent shall hold the Deposit in accordance
with escrow instructions executed by Seller, Purchaser and the Escrow Agent (the “Escrow Instructions”) substantially in the form attached hereto as Exhibit C. 
  
 ARTICLE III 
 Seller’s Representations, Warranties and Covenants 
  
 In order to induce Purchaser to enter into this Agreement and to consummate the transactions contemplated hereby, Seller represents and warrants to, and
covenants with, Purchaser as follows: 
  
 3.1 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 in all states where the ownership of its assets or the conduct of its business makes such qualification necessary. 
  
 3.2 Title. Seller has good and marketable fee simple title to the Hotel, subject only to Permitted Exceptions.  
  
 3.3 Due Authorization. The execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated hereby have 
  

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 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 constitutes a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms. 
  
 3.4 No Violations or Defaults. The execution, delivery and
performance of this Agreement and the consummation by Seller of the transactions 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 contract or other binding commitment of Seller or any provision of the organizational documents of Seller; or (c) require any consent or approval (other than from Lender with respect to the assumption by
Purchaser of the Existing Debt) or vote that has not been taken or given, or as of the Closing Date shall not have been taken or given. 
  
 3.5 Litigation. As of the date hereof, except as set forth on Exhibit D, there are no actions, suits, arbitrations,
governmental investigations or other proceedings pending or, to the knowledge of Seller, threatened against Seller in writing or affecting the Property before any court or governmental authority. 
  
 3.6 Condemnation Actions. To Seller’s knowledge, there are
no pending or threatened condemnation actions or special assessments of any nature with respect to the Property or any part thereof. 
  
 3.7 Contracts. All material Contracts related to the maintenance ownership, use, possession or operation of the Property that are in
Seller’s possession or control, other than the Existing Management Agreement, the Franchise Agreement, the Equipment Leases and the Space Leases (if any), are listed on Exhibit E attached hereto. Seller has made or will make
available to Purchaser true and complete copies of all such Contracts. To Seller’s knowledge, (a) all such Contracts are in full force and effect, and (b) 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 Contract, nor by any other party thereto. 
  
 3.8 Equipment Leases. All material Equipment Leases to which Seller or Existing Manager is a party are listed on Exhibit F attached hereto. Seller has made or will make available to
Purchaser true and complete copies of all such Equipment Leases. To Seller’s knowledge, (a) all such Equipment Leases are in full force and effect, and (b) 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 Equipment Lease, nor by any other party thereto. 
  
 3.9 Management and Franchise Agreements. There are no existing management contracts or franchise agreements relating to the Property other than (i) that certain Management Agreement by and between
Seller and the Existing Manager, dated as of December 20 2001, as amended by that certain Letter 
  

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 Agreement dated as of January 9, 2003 (as amended, the “Existing Management Agreement”) and (ii) that
certain Franchise Agreement by and between Seller and the Franchisor, dated as of December 20, 2001 (the “Franchise Agreement”); provided, however, that (i) the Existing Management Agreement will be terminated at Closing and
(ii) the Franchise Agreement will be terminated at Closing and Purchaser shall enter into a new franchise agreement with Franchisor (the “Purchaser Franchise Agreement”). 
  
 3.10 Space Leases. All material Space Leases to which Seller or
Existing Manager is a party are listed on Exhibit G attached hereto. To Seller’s knowledge, (a) all such Space Leases are in full force and effect, and (b) 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 Space Leases, nor by any other party thereto. 
  
 3.11 Permits. All material licenses (including, without limitation, liquor licenses), certificates of occupancy, permits and approvals
required to be issued by any governmental authority or any third party and used in or necessary to the operation of the Hotel as a fully functioning full-service hotel (the “Permits”) have been obtained and are in full force and
effect. To Seller’s knowledge, each such Permit is listed on Exhibit H attached hereto, and Seller has made or will make available to Purchaser true and complete copies of each such Permit. Seller has not received a written notice
from any applicable governmental authority (A) of any violation, default, intended or threatened non-renewal, suspension or revocation of any Permits, the loss of which would have a material adverse effect on the present use and occupancy of the
Hotel or (B) that it lacks any Permits necessary for the present use and occupancy of the Hotel, the absence of which would have a material adverse effect on such use and occupancy. 
  
 3.12 Sufficiency of Inventories. The quantities of FF&E, Inventories, and Fixed Asset Supplies in
the Hotel, including the provisions for reserves, are sufficient for the operation of the Hotel in accordance with the standard of operation heretofore maintained by Seller and the Existing Manager. 
  
 3.13 Environmental Matters. Except as disclosed in the
environmental reports listed on Exhibit I, Seller has not received any written notice from any governmental or regulatory authority of the presence or release of any substance that is regulated under any Environmental Laws as a
pollutant, contaminant or toxic, radioactive or otherwise hazardous substance, including petroleum, its derivatives or by-products and other hydrocarbons (collectively and individually, “Hazardous Substances”) that would cause the
Hotel to be in violation of any applicable Environmental Laws and that remains uncured, nor has Seller received written notice from any applicable governmental or regulatory authority that the Hotel is not in compliance with applicable Environmental
Laws. Except as otherwise disclosed in such environmental reports, to Seller’s knowledge (i) there are no Hazardous Substances located at, on or under the Hotel and (ii) no 
  

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 Hazardous Substances have leaked, escaped or been discharged, emitted or otherwise released from the Land underlying the
Hotel onto any adjoining properties. For the purposes of this Section, “Environmental Laws” means any and all statutes, laws, regulations and rules in effect on the date hereof relating to the protection of the environment or to the
use, transportation and disposal of Hazardous Substances. 
  
 3.14 “As-Is, Where-Is” Sale; Limitation on Seller’s Representations and Warranties. (a) PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS
AGREEMENT, THE PROPERTY IS SOLD “AS-IS - WHERE-IS,” AND NEITHER SELLER NOR ANY AGENT NOR REPRESENTATIVE OF SELLER HAS MADE, AND SELLER IS NOT LIABLE FOR OR BOUND IN ANY MANNER BY, ANY EXPRESS OR IMPLIED WARRANTIES, GUARANTIES, PROMISES,
STATEMENTS, INDUCEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY, THE PHYSICAL CONDITION, OPERATION OR FINANCIAL VIABILITY OF ALL OR ANY PART THEREOF, THE INCOME AND EXPENSES ATTRIBUTABLE OR LIKELY TO BE ATTRIBUTABLE THERETO, THE
USES WHICH CAN BE MADE OF ALL OR ANY PART OF THE PROPERTY OR ANY OTHER MATTER OR THING OF ANY KIND WITH RESPECT THERETO OR TO THE MARKET IN WHICH THE HOTEL IS LOCATED. WITHOUT LIMITING THE FOREGOING, PURCHASER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS
EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER IS NOT LIABLE FOR OR BOUND BY (AND PURCHASER HAS NOT RELIED UPON) ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, FINANCIAL STATEMENTS OR OTHER INFORMATION OF ANY KIND SUPPLIED BY OR ON BEHALF OF
SELLER AND PERTAINING TO THE HOTEL OR ANY OTHER INFORMATION RESPECTING THE HOTEL FURNISHED BY SELLER OR ANY EMPLOYEE, AGENT, CONSULTANT OR OTHER PERSON REPRESENTING OR PURPORTEDLY REPRESENTING SELLER. PURCHASER ACKNOWLEDGES THAT TO THE EXTENT
REQUIRED TO BE OPERATIVE, THE DISCLAIMERS OF REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS SECTION ARE “CONSPICUOUS” DISCLAIMERS FOR PURPOSES OF ANY APPLICABLE LAW, RULE, REGULATION OR ORDER. PURCHASER ACKNOWLEDGES THAT IT IS
EXPERIENCED IN THE PURCHASE, OWNERSHIP AND OPERATION OF PROPERTY OF THE TYPE COVERED BY THIS AGREEMENT AND THAT ITS DECISION TO ENTER INTO THIS CONTRACT AND TO PURCHASE THE PROPERTY FOLLOWING ITS INVESTIGATION THEREOF DURING THE DUE DILIGENCE
PERIOD) IS AND WILL BE BASED ON ITS OWN DUE DILIGENCE AND ITS OWN EXPERT EVALUATION OF THE CONDITION AND OPERATION OF THE PROPERTIES AND THEIR SUITABILITY FOR PURCHASER’S PURPOSES. 
  
 (b) EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, AS PART OF PURCHASER’S AGREEMENT TO PURCHASE AND ACCEPT THE

  

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 HOTEL “AS-IS-WHERE-IS” AND NOT AS A LIMITATION ON SUCH AGREEMENT, PURCHASER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES AND RELEASES ANY AND ALL ACTUAL OR POTENTIAL RIGHTS PURCHASER MIGHT HAVE REGARDING ANY FORM OF WARRANTY, EXPRESS OR IMPLIED, OF ANY KIND OR TYPE, RELATING TO THE PROPERTY. SUCH WAIVER AND RELEASE IS ABSOLUTE, UNCONDITIONAL,
IRREVOCABLE, COMPLETE, TOTAL AND UNLIMITED IN ANY WAY. SUCH WAIVER AND RELEASE INCLUDES, BUT IS NOT LIMITED TO, A WAIVER AND RELEASE OF EXPRESS WARRANTIES, IMPLIED WARRANTIES, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR USE, WARRANTIES OF
MERCHANTABILITY, WARRANTIES OF HABITABILITY, STRICT LIABILITY RIGHTS AND CLAIMS OF EVERY KIND AND TYPE, INCLUDING, BUT NOT LIMITED, TO CLAIMS REGARDING DEFECTS WHICH WERE NOT OR ARE NOT NOW APPARENT OR DISCOVERABLE, PRODUCT LIABILITY CLAIMS, PRODUCT
LIABILITY TYPE CLAIMS, ANY RIGHTS AND CLAIMS RELATING TO OR ATTRIBUTABLE TO ENVIRONMENTAL CONDITIONS, AND ALL OTHER CLAIMS OR RIGHTS OF ANY KIND BASED ON EXPRESS OR IMPLIED WARRANTIES OR BASED ON PRINCIPLES OF STRICT LIABILITY, WHETHER NOW EXTANT OR
HEREAFTER CREATED OR CONCEIVED. THE WAIVER AND RELEASE SET FORTH HEREIN DOES NOT APPLY TO ANY CLAIMS BASED ON A BREACH OF THE 
  

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 COVENANTS, REPRESENTATIONS AND OTHER OBLIGATIONS OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT. 
  

	 Seller’s Initials
	 	Purchaser’s Initials
		
	/s/  TJB	 	/s/  BDW

  
 3.15 Financial
Information. Seller shall deliver to Purchaser operating statements for the Hotel for the periods January, 2000 through August, 2003. To the knowledge of Seller, all such information has been prepared in accordance with generally accepted
accounting principles applied consistently with past practices, fairly presents the financial position of the Hotel at the end of such period and the results of the operations thereof for such period, and there has been no material adverse change in
the financial condition, operations, results of operations or business of the Hotel since August, 2003. 
  
 3.16 Compliance with Applicable Law. To the knowledge of Seller, the Hotel is in compliance in all material respects with all applicable
building codes and zoning laws, and all other applicable laws, ordinances, rules and regulations. Neither Seller nor Existing Manager has received any written notice from any governmental authority of any violations of law or municipal ordinances,
orders or requirements with respect to the Hotel. 
  
 3.17
Real Estate Taxes. Seller has received no written notice from any tax assessor of any proposed increase in real estate taxes with respect to the Hotel. 
  
 3.18 Utilities. All utilities necessary for the normal operation of the Hotel consistent with the requirements
of the Franchise Agreement are available to the Hotel in sufficient quantities for such operation. 
  
 3.19 Labor and Employment Matters. There are no employees of the Hotel other than those employees who are employed by Existing Manager with
respect to the Hotel (collectively, the “Employees”). There are no agreements to which Seller is a party relating to any labor or collective bargaining agreement affecting the Hotel. Seller has not received any written notice from
any labor union or group of employees that such union or group represents or believes or claims it represents or intends to represent any of the employees of Seller nor has it received any notice of any claim of unfair labor practices. Seller has
and shall maintain through the Closing Date a level of employment at the Hotel that is sufficient for the normal business operations of the Hotel at standards required by the Franchise Agreement. 
  
 3.20 Insurance. Seller has and shall maintain through the
Closing Date insurance policies equivalent in all material respects to those currently maintained by Seller, as listed on Exhibit J. 
  

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 3.21 Possession. Seller has not granted to any party any license, lease, or other right
relating to the use or possession of the Hotel or any part thereof, except tenants under the Space Leases and guests in the ordinary course of business. 
  
 3.22 Purchase Rights. Except for the Permitted Exceptions, a right of first refusal in favor of Franchisor under the Franchise Agreement
(the “Hilton Right of First Offer”) and other customary easements and title exceptions that will not materially and adversely interfere with the ongoing operation of the Hotel as currently operated, there are no purchase contracts,
options or other agreements of any kind, whereby any person or entity other than Purchaser will have acquired or will have any right to acquire title to all or any portion of the Hotel. 
  
 3.23 Municipal Assessment/Notices. To the knowledge of Seller, there are no outstanding unpaid municipal
assessment notices against the Hotel. 
  
 3.24
Bankruptcy. Seller is not insolvent within the meaning of Title 11 of the United States Code, as amended (the “Bankruptcy Code”), and has not ceased to pay its debts as they become due. Seller has not filed or taken any
action to file a voluntary petition, case or proceeding under any section or chapter of the Bankruptcy Code, or under any similar law or statute of the United States or any state thereof, relating to bankruptcy, insolvency, reorganization, winding
up or composition or adjustment of its debts; and no such petition, case or proceeding has been filed against it which has not been dismissed, vacated or stayed on appeal; and it has not been adjudicated as a bankrupt or insolvent or consented to,
nor filed an answer admitting or failing reasonably to contest an allegation of bankruptcy or insolvency. It has not sought, or consented to or acquiesced in, the appointment of any receiver, trustee, liquidator or other custodian of it or a
material part of its assets, and has not made or taken any action to make a general assignment for the benefit of creditors or an arrangement, attachment or execution has been levied and no tax lien or other governmental or similar lien has been
filed, against it or a material part of its properties, which has not been duly and fully discharged prior to the date hereof. 
  
 3.25 Title to FF&E. Other than FF&E subject to the Equipment Leases, Seller has good title to the FF&E owned by it and used in
connection with the operation of the Hotel owned by it, which in each case shall be free and clear of all liens and encumbrances as of the Closing Date, subject only to the related Permitted Exceptions. 
  
 3.26 Loan Documents. All loan documents to which Seller is a
party relating to the Existing Debt are listed on Exhibit K attached hereto (the “Loan Documents”). Seller has made or will make available to Purchaser true and complete copies of all such Loan Documents. 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 Loan Documents. As of the Contract Date the unpaid principal balance evidenced and secured by the Loan Documents is $17,000,000.

  

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 3.27 Personal Property. Seller shall maintain the FF&E, Fixed Asset Supplies and
Inventories in accordance with the levels required under the Franchise Agreement. 
  
 3.28 Disclosure. To the knowledge of Seller, there are no material inaccuracies or omissions in any of the Exhibits attached to this Agreement or any of the documents prepared by Seller and furnished to
Purchaser with respect to the Hotel. 
  
 3.29
Knowledge. Any and all uses in this Agreement of the phrase “to the knowledge of Seller”, “to Seller’s knowledge” or “known to Seller” (or any similar phrase) shall mean the actual and present
knowledge of Tom Baltimore, Ross Bierkan and Howard Isaacson (collectively the “Seller Knowledge Individual”). Neither the actual, present knowledge of any other individual or entity, nor the constructive knowledge of the Seller
Knowledge Individual or of any other individual or entity shall be imputed to the Seller Knowledge Individual. 
  
 ARTICLE IV 
 Purchaser’s Representations, Warranties and Covenants

  
 In order to induce Seller to enter into this Agreement and
to consummate the transactions contemplated hereby, Purchaser represents and warrants to, and covenants with, Seller as follows: 
  
 4.1 Good Standing. Purchaser is a corporation duly organized, validly existing and in good standing under the laws of Maryland, is
authorized to conduct the business in which it is now engaged and is, or as of the Closing Date shall be, qualified to do business in all jurisdictions where the ownership of its assets or the conduct of its business makes such qualification
necessary. 
  
 4.2 Due Authorization. The execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all requisite limited liability actions of Purchaser (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 Purchaser, enforceable against Purchaser in accordance with its terms. 
  
 4.3 No Violations or Defaults. The execution, delivery and
performance of this Agreement and the consummation by Purchaser 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 Purchaser or any provision of the organizational documents of Purchaser; or (c) 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. 
  

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 4.4 Litigation. As of the date hereof, there are no actions, suits, arbitrations,
governmental investigations or other proceedings pending or, to the knowledge of Purchaser, threatened in writing against Purchaser before any court or governmental authority, an adverse determination of which might adversely affect (a) the
financial condition or operations of Purchaser or (b) Purchaser’s ability to enter into or perform this Agreement. 
  
 ARTICLE V 
 Closing

  
 5.1 Closing. The consummation of the
purchase and sale of the Property as contemplated by this Agreement (the “Closing”) shall take place on December 29, 2003 (the “Scheduled Closing Date”), at the offices of Seller’s counsel, or on such
alternative date or at such alternative location as may be mutually agreed upon by Seller and Purchaser. Purchaser may elect to extend the Scheduled Closing Date to a date on or before January 30, 2004, at Purchaser’s option, by (i) providing
Seller with notice of such election on or before December 19, 2003 (the “Extension Notice”) and (ii) depositing with the Escrow Agent within three (3) business days of the delivery of the Extension Notice an additional earnest money
deposit of FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($500,000.00) (the “Extension Deposit”). The term “Closing Date” when used herein shall mean the Scheduled Closing Date or the Scheduled Closing Date as may be
extended in accordance with this Section 5.1. All of Seller and Purchaser’s deliveries, the cash payment of the Purchase Price and sufficient additional cash necessary for the parties to pay the costs contemplated by Section 5.2 shall be
delivered in escrow to the Escrow Agent. All transactions at the Closing shall be interdependent and are to be considered simultaneous, so that none are effective until all are effective. 
  
 5.2 Costs. Seller and Purchaser each agrees to pay fifty percent (50%) of all (i) transfer taxes or
document stamps, (ii) sales taxes and (iii) recording fees and taxes connected with the transfer of the Property and the recordation or registration of the Deed, as well as (iv) all Bulk Sales taxes and other personal property taxes associated with
the Closing, if any, (v) all fees of the Escrow Agent in connection with the Escrow Instructions, (vi) costs and premiums of title insurance, including, without limitation, the costs and expenses of all endorsements thereto, and (vii) all surveys of
the Hotel prepared for the Closing. Seller shall pay for any fees or costs relating to or in connection with the assumption or transfer of the Existing Debt from Seller to Purchaser, including, without limitation, the Lender’s attorneys’
fees 
  

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 related to the assignment and assumption of the Existing Debt, to the extent payable by the borrower under the Loan
Documents; provided, however, that Purchaser shall pay for the costs of recording amendments to the mortgages and UCC filings affecting the Property, including any applicable transfer, mortgage or recording fees or taxes. Purchaser shall pay for all
other transaction costs connected with the transfer of the Property, including, but not limited to (i) all environmental and engineering reports prepared by or at the request of Purchaser, but Seller shall be solely responsible for all costs of
removing any title defects which Seller is required to remove pursuant to the provisions hereof and (ii) any and all sums required to be paid in connection with the execution of the Purchaser Franchise Agreement; provided, however, that Purchaser
shall not be responsible for any amounts due and owing to Franchisor pursuant to the Franchise Agreement representing obligations which accrued prior to the Closing. Each party shall pay its own accountants and attorneys’ fees incurred in
connection with the preparation, negotiation and execution of this Agreement and the consummation of the transactions contemplated hereby. 
  
 ARTICLE VI 
 Actions Pending
Closing; Due Diligence Period 
  
 6.1 Conduct of
Business; Maintenance and Operation of Property. Between the Contract Date and the Closing Date, Seller shall continue to carry on the business of the Hotel as currently conducted and consistent with the Franchise Agreement and the Existing
Management Agreement. Seller shall cause the Property to be maintained in its present order and condition, normal wear and tear excepted, so that the Property shall, except for normal wear and tear, be in substantially the same condition on the
Closing Date as on the Contract Date. Seller will or will cause Existing Manager to: 
  
 (a) operate, manage, and maintain the Hotel in accordance with the Hilton system standards as currently employed at the Hotel, including, without limitation, (i) using reasonable efforts to keep a level of employment
at the Hotel sufficient for the normal operations of the Hotel as currently conducted and to preserve its relations with guests, suppliers and other parties doing business with Seller with respect to the Property, (ii) accepting booking contracts
for the use of the Hotel facilities on terms not less favorable than the terms typically arranged by Seller as of the date of this Agreement and using reasonable efforts to retain such bookings, and (iii) maintaining the current level of advertising
and other promotional activities for the Hotel; 
  
 (b) keep,
observe, and perform all its material obligations under the Space Leases, the Contracts, the Equipment Leases and all other applicable contractual arrangements relating to the Hotel; 
  

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 (c) keep merchandise, supplies and inventory adequately stocked, consistent with the standards set forth
in the Franchise Agreement, as if the sale of the Hotel were not to occur, 
  
 (d) not grant any bonus, free rent, rebate or other concession to any present or future tenant, other than in the ordinary course of business, without Purchaser’s prior written consent; 
  
 (e) not sell or assign, or enter into any agreement to sell or assign the
Hotel or any portion thereof, except for Space Leases, Permitted Exceptions, customary easements and the provision of rooms or other facilities at the Hotel in the ordinary course of business; 
  
 (f) not permit or suffer any liens or encumbrances that exceed the Purchase
Price to affect the Hotel other than the Permitted Exceptions; 
  
 (g) make or cause to be made timely payment in full for all goods and services which have been provided in connection with the Hotel and all debt, if any, secured by the Hotel; 
  
 (h) not enter into any new service agreements or other contracts without first obtaining written consent from Purchaser
(which consent shall not be unreasonably withheld or conditioned and shall be granted or withheld in writing, accompanied by a reasonably detailed explanation if such consent is not granted, within five (5) business days after Purchaser’s
receipt of Seller’s request for such consent) except for such contracts as may be entered into in the ordinary course of Seller’s business and which shall be terminable by Purchaser and its assigns at will and without any cost to Purchaser
upon not more than ninety (90) days’ notice or upon sale of the Hotel (and if Purchaser does not respond to a written request for consent within the five (5) business-day period described above, the requested consent shall be irrevocably deemed
to have been given); 
  
 (i) promptly notify Purchaser of receipt
by Seller, or any of its agents of any written notice of any violations of zoning, building, fire, health environmental or other statutes, ordinances, regulations or order relating or referring to the Hotel or any improvements thereon or of any
written claim or notice of dispute relating to or affecting the Hotel, and Seller will send a copy to Purchaser of any such notice within five (5) business days of receipt, and Seller will correct the same or cause the same to be corrected;

  
 (j) not remove nor permit to be removed any of the Personal
Property from the Hotel unless any such item is (i) replaced by a substitute of equal or greater value or (ii) an obsolete item of Personal Property; 
  
 (k) render such additional assistance in effectuating the transition as Purchaser may reasonably request, provided Purchaser shall reimburse Seller for
reasonable out-of-pocket expenses authorized by Purchaser in writing in advance; 
  

 -13- 

 (l) on or prior to the twentieth (20th) day of each month, deliver to Purchaser the internal reports for
the prior month produced by the Existing Manager pursuant to the Existing Management Agreement showing the performance of the Hotel; 
  
 (m) at Purchaser’s sole cost and expense, assist Purchaser in applying for and securing any licenses, including, but not limited to permits,
certificates of occupancy or other authorizations which Purchaser may require or reasonably deem desirable in connection with its acquisition of the Hotel; 
  
 (n) promptly notify Purchaser of any action, suit or other proceedings pending or, to the knowledge of Seller, threatened against Seller in writing or
affecting the Property before any court or governmental authority; 
  
 (o) at Seller’s sole cost and expense, cause the existing Franchise Agreement and the Existing Management Agreement to be terminated as of the Closing Date; provided, however, that Seller shall not be deemed to be in breach of
this covenant if the reason the foregoing agreements are not terminated is (a) because the Closing does not occur because of the failure of a condition precedent (other than one in Seller’s control) or a breach by Purchaser or (b) Purchaser is
unable to satisfy the Franchisor’s requirements for entering into the Purchaser Franchise Agreement notwithstanding Purchaser’s good faith efforts to do so; 
  
 (p) comply with Seller’s obligations to make timely payments of principal and interest due with respect to the Existing
Debt, not voluntarily make any prepayments of principal with respect to the Existing Debt, and not modify or amend the Loan Documents without the express prior written consent of Purchaser in each instance. 
  
 6.2 Title Insurance. (a) Seller shall cooperate with Purchaser
in obtaining a binding commitment for owner’s policy of title insurance (the “Title Commitment”) relating to the Hotel to be issued by a title insurance company of Purchaser’s choosing (the “Title
Company”), committing to insure Purchaser’s good and marketable fee simple title to the Hotel. The Title Policy shall show no liens, mortgages, deeds of trust, security interests, pledges, charges, options, encroachments, easements,
covenants, leases, reservations or restrictions of any kind (the “Encumbrances”) other than (i) applicable zoning regulations and ordinances, (ii) liens for taxes, assessments and governmental charges not yet due and payable, (iii)
liens for water and sewer service not yet due and payable and (iv) the Existing Debt and other Permitted Exceptions. 
  
  

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 (b) Prior to and including November 24, 2003 (the period between the date hereof and through and
including such date being the “Due Diligence Period”), Purchaser agrees to send to Seller a copy of the Title Commitment (accompanied by copies of all documents listed therein as proposed exceptions to coverage) and the Survey and
to notify Seller in writing of any objections to exceptions appearing in the Title Commitment that would materially and adversely affect the Purchaser’s ability to continue to operate the Hotel as a full service hotel property. Within five (5)
business days following Purchaser’s notice, Seller shall notify Purchaser (a) that it disagrees that the exceptions materially and adversely affect the operations of the affected Hotel, (b) that it will, prior to the Closing Date, eliminate the
exceptions to which Purchaser has objected or (c) that it declines to eliminate specified exceptions. If Seller elects not to take such actions as may be required by the Title Company to remove all exceptions to title to which Purchaser has
objected, Purchaser may within five (5) business days terminate this Agreement in its sole discretion and receive a return of the Deposit, but only if such exceptions would materially and adversely affect the Purchaser’s ability to continue to
operate the Hotel as a full service hotel. If Seller agrees to take the actions necessary to eliminate all exceptions to which Purchaser has objected, then such exceptions shall not be Permitted Exceptions and Seller shall cause such exceptions to
be removed prior to or at Closing. If Purchaser elects to accept any exceptions to which Purchaser has objected or if Purchaser subsequently elects to accept any such exceptions and continue this Agreement, Purchaser and Seller shall, on or prior to
the date that is five (5) business days following Seller’s notification to Purchaser pursuant to the second sentence of this Section 6.2(b), initial a list of all exceptions that Purchaser agrees to accept (the “Permitted
Exceptions”), which shall be attached hereto as Exhibit L. 
  
 6.3 Survey. Seller shall cooperate with Purchaser in obtaining an as-built survey of the Hotel, certified to Purchaser, Lender and the Title Company by a land surveyor or professional engineer (the
“Survey”). Purchaser shall be responsible for ensuring that such surveys are ordered in time so that they can be received and reviewed by Purchaser prior to the end of the Due Diligence Period. Purchaser shall be responsible for
paying for the Survey, subject to adjustment in accordance with the provisions of Section 5.2. 
  
 6.4 No Action. Between the Contract Date and the Closing Date, Seller shall not take or permit any action that would invalidate, void or make untrue any representation or warranty provided under this
Agreement. If any event occurs prior to Closing that would cause any of Seller’s representations or warranties to become untrue, Seller shall notify Purchaser immediately in writing of such occurrence. 
  
 6.5 Cooperation. Seller shall cooperate with Purchaser in
securing any necessary transfer or issuance of any Permits to Purchaser immediately following the Closing Date. Seller and Purchaser shall each use commercially reasonably 
  

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 efforts to effectuate the assumption by Purchaser and the release of Seller and the guarantor from certain obligations
under the Loan Documents from and after the Closing Date, including compliance with the requirements and conditions for such an assumption set forth in the Loan Documents or reasonably required by Lender and obtaining all required approvals and
consents of Lender and other necessary parties to such assumption by Purchaser. If prior to the expiration of the Due Diligence Period (i) Purchaser and Seller fail or are unable to satisfy any of Lender’s requirements, (ii) Purchaser is
disapproved by Lender, (iii) Purchaser and/or Seller is unable to obtain any required consents or approvals, (iv) Seller is unable to obtain releases of Seller and the guarantor of certain obligations under the Existing Debtor from and after the
Closing Date or Lender demands a prepayment penalty or a transfer fee to grant its approval to the assumption of the Existing Debt by Purchaser, or (v) Purchaser is unable to reach agreement with Lender as to the assumption by Purchaser of the
Existing Debt on substantially the same terms and conditions set forth in the Loan Documents, and Purchaser has acted in good faith and used commercially reasonable efforts to obtain Lender’s consent and approval to the assumption of the
Existing Debt, then this Agreement shall terminate at the option of either party and the Deposit shall be returned to Purchaser and the parties shall have no further obligations to the other under this Agreement, except for those obligations which
expressly survive the termination of this Agreement. Prior to the expiration of the Due Diligence Period, (i) Purchaser shall use commercially reasonable efforts to reach agreement on such terms and conditions of the Purchaser Franchise Agreement as
are reasonably acceptable to Purchaser and (ii) Seller shall use commercially reasonable efforts to obtain a waiver from Franchisor of the Hilton Right of First Offer. In the event that Franchisor refuses to waive the Hilton Right of First Offer,
this Agreement shall terminate and the Deposit shall be returned to Purchaser and the parties shall have no further obligations to the other under this Agreement, except for those obligations which expressly survive the termination of this
Agreement. 
  
 6.6 Inspection; Due Diligence Period.
(a) Purchaser 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 Hotel at any reasonable time and upon reasonable prior notice to
Seller and Existing Manager, for the purpose of making surveys or other tests, inspections, investigations and/or studies of all or any part of the Property. In addition, Purchaser may, at its own risk, cost and expense, conduct such architectural,
environmental, economic and other studies of the Property as Purchaser may, in its sole discretion, deem desirable. Purchaser shall not make any physical alterations to the Property or any invasive tests. Purchaser shall conduct, and ensure that
each of its agents, employees, contractors or representatives conducts, each such entry in a manner that does not interfere with the guests or management of the Hotel; and Purchaser shall indemnify and hold Seller harmless from any and all claims,
damages, demands, penalties, causes of action, liabilities, losses, costs or expenses (including, without limitation, reasonable attorneys’ fees and other charges) arising out of or in 
  

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 any way related to personal injury (including death), property damage, disruptions of operations, nuisance or other
claims asserted by any person or entity relating to the acts or omissions of Purchaser, 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. Purchaser shall have reasonable access to all documentation, agreements and other information in the possession of Seller or Seller’s agents related to the Property and shall have the right to make
copies of same. If Purchaser elects to terminate this Agreement pursuant to Section 6.6(b), Purchaser agrees to supply Seller with all copies of the results of any tests, studies or inspections of the Property performed hereunder. To the extent not
already made available, Seller shall make available to Purchaser within ten (10) business days of the date hereof, copies of the following documents relating to the Property: (i) Seller’s existing title policy and survey of the Hotel, (ii) all
Contracts, (iii) all Equipment Leases, (iv) all Space Leases, (v) all Permits, (vi) all environmental reports listed on Exhibit I, (vii) any existing as-built surveys of the Hotel, and (vii) such other information as the Purchaser may
reasonably request. 
  
 (b) If, during the Due Diligence Period,
Purchaser gives Seller written notification (the “Termination Notice”) that Purchaser elects not to consummate the purchase of the Property in accordance with the terms of this Agreement, this Agreement shall terminate, whereupon
the Deposit shall be returned to Purchaser 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 received by Seller by
the end of the Due Diligence Period, Purchaser shall have been deemed to have elected to proceed hereunder, and this Agreement shall remain in full force and effect. 
  
 6.7 Employees. Seller shall cause all Employees to be terminated as of the Closing Date. Purchaser hereby
covenants and agrees to make such offers of employment to Employees in such number and on such terms as necessary to comply with the provisions of the Worker Adjustment and Retraining Notification Act (“WARN Act”) 29 U.S.C. 2101
et seq. Purchaser agrees to indemnify and hold Seller harmless from and against any and all liability, loss, cost, damage and/or expense (including without limitation, reasonable attorneys’ fees and expenses) arising out of or
relating to Purchaser’s failure to comply with its obligations in the immediately preceding sentence, in the event such failure constitutes a violation under the requirements of the WARN Act with respect to the Employees. The indemnity set
forth in this Section 6.7 shall survive Closing and shall not be limited by any claims period set forth in this Agreement. 
  

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 ARTICLE VII 
 Conditions Precedent to Purchaser’s Obligations at Closing 
  
 It shall be a condition to Purchaser’s obligation to purchase the Property that each and every one of the following conditions shall have been
satisfied as of the Closing Date (or waived by Purchaser). 
  
 7.1 Representations and Warranties. Each of Seller’s representations and warranties shall be true and complete in all material respects as if made on and as of the Closing Date. 
  
 7.2 Covenants of Seller. Seller shall have materially performed
and complied with all covenants and conditions required by this Agreement to be performed or complied with at or prior to the Closing Date. 
  
 7.3 Title. Purchaser shall be able to obtain a policy of title insurance in conformance with the Title Commitment, subject only to the
Permitted Exceptions, upon payment of the premiums therefor and delivery of the documents specified in Article 9 below. 
  
 7.4 Franchise Agreement. Franchisor shall have approved of Purchaser as a franchisee of the Hotel and shall have entered into the Purchaser
Franchise Agreement. 
  
 7.5 Litigation. There shall
be no actions, suits arbitrations, governmental investigations or other proceedings pending or, to the knowledge of Seller, threatened against Seller in writing or affecting the Property before any court or governmental authority, an adverse
determination of which might materially and adversely affect (a) the financial condition or operations of Seller or the Hotel, (b) Seller’s ability to enter into or perform this Agreement or (c) Seller’s title to the Property. 

 
 7.6 Assumption of Existing Debt. Purchaser shall have
entered into an assumption agreement in form and substance reasonably satisfactory Purchaser to assume the Existing Debt. 
  
 7.7 Termination of Existing Management Agreement. The Existing Management Agreement shall have been terminated at Seller’s sole cost
and expense. 
  
 7.8 Failure of Condition. In the
event of the failure of any condition precedent set forth in this Article 7, except a failure that results from the actions, inactions or material adverse change in the financial condition of the Purchaser, the failure of any of Purchaser’s
representations and warranties set forth herein to be true and complete in all material respects, or, with respect to the conditions set forth in Sections 7.4 and 7.6, the failure of Purchaser to act in good faith and use 
  

 -18- 

 commercially reasonable efforts to satisfy such conditions, Purchaser, at its sole election, may (i) terminate this
Agreement (and receive a return of the Deposit), (ii) waive the condition and proceed to Closing or (iii) extend the Closing Date for such additional period of time, not to exceed thirty (30) days, as may be reasonably required to allow Seller to
remedy such failure. In the event that any such condition is not satisfied and the transactions contemplated hereby are not consummated primarily as a result of the actions, inactions or material adverse change in the financial condition of the
Purchaser or the failure of any of Purchaser’s representations and warranties set forth herein to be true and complete in all material respects, then the Deposit shall be forfeited to the Seller as full and complete liquidated damages

  
 7.9 Seller Deliveries. Seller shall have
delivered all of the other documents required from it pursuant to Article IX hereof. 
  
 ARTICLE VIII 
 Conditions Precedent to Seller’s Obligations at Closing 

 
 It shall be a condition to Seller’s obligation to sell the
Property that each and every one of the following conditions shall have been satisfied as of the Closing Date (or waived by Seller). 
  
 8.1 Representations and Warranties. Each of Purchaser’s representations and warranties shall be true and complete in all material
respects as if made on and as of the Closing Date and there shall be no material litigation affecting Purchaser that, if existing as of the date hereof, would have had to be disclosed under Section 4.4. 
  
 8.2 Purchaser Deliveries. Purchaser shall have delivered all of
the other documents required from it pursuant to Article IX hereof. 
  
 8.3 Release from Existing Debt. Seller shall have entered into an agreement with the Lender in form and substance reasonably satisfactory Seller whereby Seller and the guarantor of certain obligations under the Existing Debt
will be released from such obligations from and after the Closing Date upon the assumption of the Existing Debt by Purchaser. 
  
 8.4 Failure of Condition. In the event of the failure of any condition precedent set forth in this Article 8, Seller, at its sole election,
may (i) terminate this Agreement, (ii) waive the condition and proceed to Closing or (iii) extend the Closing Date for such additional period of time, not to exceed thirty (30) days, as may be reasonably required to allow such failure to be
remedied; provided, however, that if any such condition is not satisfied primarily as a result of the actions, 
  

 -19- 

 inactions or material adverse change in financial condition of Seller, a failure of the representations and warranties of
Seller in this Agreement to be true and complete in all material respects, or, with respect to the condition set forth in Section 8.3, the failure of Seller to act in good faith and use commercially reasonable efforts to satisfy such conditions then
Seller shall be required to return the Deposit to Purchaser. 
  
 ARTICLE IX 
 Closing Deliveries 
  
 At Closing, the parties shall make the following deliveries: 
  
 9.1 Deed. Seller shall deliver a special warranty deed substantially in the form set forth on Exhibit
M attached hereto (the “Deed”), dated as of the Closing Date, conveying to Purchaser fee simple interest in the Hotel as required hereunder. 
  
 9.2 Bill of Sale. Seller and Purchaser shall each deliver two (2) duly executed counterparts (one for each
party) of the bill of sale and assignment and assumption of documents substantially in the form set forth on Exhibit N attached hereto (the “Bill of Sale” or “Bills of Sale”), dated as of the Closing
Date, conveying to Purchaser the Personal Property and assigning all of the applicable Permits, Contracts, Equipment Leases and Space Leases, to the extent the foregoing are assignable. 
  
 9.3 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. 
  
 9.4 Intentionally Deleted. 
  
 9.5 Possession; Books and Records, Keys. Seller shall deliver possession of the Property to Purchaser, together with all books and records
in Seller’s possession, in accordance with and subject to any privacy laws or regulations, necessary or desirable for the operation of the Hotel and all keys, including, without limitation, keys for all security systems, rooms and offices.

  
 9.6 Purchase Price. Purchaser shall deliver the
Purchase Price payable in the manner provided for in this Agreement. 
  
 9.7 Lender Estoppel. Seller shall obtain an estoppel from Lender certifying (i) the amount of principal and interest outstanding under the Existing Debt as of the Closing Date, (ii) the amount of funds held in any reserve or
escrow accounts for the benefit of Lender for which Seller will receive a credit against the Purchase Price, and (iii) there are no defaults or events that with notice or the passage of time or both, would constitute a default by Seller under any of
the Loan Documents. 
  

 -20- 

 9.8 Other Documents. Seller and Purchaser shall deliver such other documents and
instruments as may be reasonably requested by Seller, Purchaser or the Title Company to effectuate the transactions contemplated by this Agreement and to induce the Title Company to insure title to the Hotel as described herein. 
  
 ARTICLE X 
 Default 
  
 10.1 Purchaser’s Default. If Purchaser fails to consummate the purchase and sale contemplated herein after all conditions precedent to Purchaser’s obligation to do so have been satisfied or
waived by Purchaser, Escrow Agent shall pay the Deposit to Seller in accordance with the Escrow Instructions, as full and complete liquidated damages, and as the exclusive and sole right and remedy of Seller, whereupon this Agreement shall
terminate, and neither party shall have any further obligations or liabilities to the other party (except for such obligations and liabilities as expressly survive the termination hereof). 
  
 10.2 Seller’s Default. If Seller fails to consummate the
transaction in accordance with the terms of this Agreement and Purchaser is otherwise willing and able to proceed as contemplated hereunder, Purchaser shall be entitled to (i) have the Deposit returned to Purchaser by the Escrow Agent in accordance
with the Escrow Instructions or (ii) pursue such remedies against Seller as shall be permitted by applicable law. 
  
 ARTICLE XI 
 Survival; Indemnification Obligations; Post-Closing
Obligations 
  
 11.1 Generally. Except as
otherwise expressly provided herein, the respective representations, warranties, obligations, covenants and agreements of Seller and Purchaser contained herein shall not survive the Closing, and no action may be brought on any such representation,
warranty, obligation, covenant or agreement. 
  
 11.2
Survival. Any claims for breach of the representations, warranties and covenants of Seller and Purchaser contained herein shall be made within twelve (12) months of the Closing Date, otherwise they shall irrevocably be deemed to have been
waived. Notwithstanding any other provision of this Agreement to the contrary, Seller shall not be liable for a breach of any representation, warranty or covenant hereunder to the extent that Seller is able to demonstrate that, as of the Closing
Date, Purchaser had written evidence of and actually knew of such breach and proceeded to Closing anyway. 
  

 -21- 

 11.3 Agreement to Indemnify. Notwithstanding any provisions of this Agreement to the
contrary, Seller shall hold harmless, indemnify and defend Purchaser, its affiliates and their respective successors and assigns, and the respective officers, directors, shareholders, partners, members, employees, and agents of each of them its
affiliates and their respective successors and assigns, and the respective officers, directors, shareholders, partners, members, employees, and agents of each of them (the “Purchaser Indemnitees”) against any and all obligations,
claims, losses, damages, liabilities and expenses (including, without limitation, reasonable attorneys’ fees and other charges) connected with the ownership or operation of the Hotel and relating to the period during which Seller owned the
Hotel, including, without limitation, actions or claims relating to damage to property or injury to or death of any person during the period of Seller’s ownership of the Hotel, or any claims for any debts or obligations occurring on or about or
in connection with the Hotel or any portion thereof or with respect to the Hotel’s operations at any time during such period. Notwithstanding any provisions of this Agreement to the contrary, Purchaser shall hold harmless, indemnify and defend
Seller, its affiliates and their respective successors and assigns, and the respective officers, directors, shareholders, partners, members, employees, and agents of each of them against any and all obligations, claims, losses, damages, liabilities
and expenses (including, without limitation, reasonable attorneys’ fees and other charges) connected with the ownership or operation of the Hotel and relating to the period from or after the Closing Date, including, without limitation, actions
or claims relating to damage to property or injury to or death of any person during the period in which the applicable Hotel is owned by Purchaser (or Purchaser’s affiliates) or any claims for any debts or obligations occurring on or about the
Hotel or any portion thereof or with respect to the Hotel’s operations at any time during such period. The foregoing indemnities shall survive the Closing. 
  

11.4 Indemnification Regarding Assumed Obligations. Whenever it is provided in this Agreement that an obligation of one party will be
assumed by the other party on or after the Closing, the party so assuming such liability also shall be deemed to have agreed to indemnify, defend and hold harmless the other party and its successors and assigns, from and against all claims, losses,
damages, liabilities, costs and expenses (including reasonable attorneys’ fees and other charges) arising from any failure of the assuming party to perform the obligation so assumed after the Closing and from all third party claims brought
against the other party to the extent relating to the period from and after assumption of the liability on which the claim is based. 
  
 11.5 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 
  

 -22- 

 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, (i) such
litigation, action, suit, demand, claim or the resolution thereof, would have a material adverse effect on the indemnified party or (ii) the indemnifying party shall have a 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 in either of such instances it shall be at the indemnifying party’s expense; provided, however, that the indemnifying
party shall be responsible for the reasonable fees of no more than one counsel in each jurisdiction in each proceeding. 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. 
  
 ARTICLE XII 
 Casualty or Condemnation 
  
 12.1 Notice to Purchaser. Seller agrees to give purchaser prompt notice of any fire or other casualty occurring at the Hotel between the Contract Date and the Closing Date; provided, however, that
Seller shall not be deemed to be in default under this Section 12.1 for failure to report minor incidents causing insignificant damage. 
  
 12.2 Condemnation, Casualty or Litigation. If, prior to Closing, (i) condemnation proceedings are commenced against all or any material
portion of the Property, or (ii) the Property is damaged by fire or other casualty to the extent that the cost of repairing such damage shall be FIVE HUNDRED THOUSAND ($500,000.00) or more, Purchaser shall have the right, upon notice in writing to
Seller delivered within fifteen (15) days after actual notice of such condemnation, fire or other casualty or litigation, to terminate this Agreement. Upon such termination, the Deposit shall be returned immediately to Purchaser, and neither party
shall have any further liability to the other hereunder. If the Hotel is so 
  

 -23- 

 damaged but this Agreement is not terminated with respect to the Hotel, the Purchase Price shall not be reduced, but
Purchaser shall be entitled to an assignment of all of Seller’s share of the condemnation award or the proceeds of any fire or other casualty insurance plus the amount of any deductible under such insurance that has not been applied to the
restoration or repair of such damage and all rent insurance proceeds (if any) payable with respect to the Hotel relating to the period after Closing and Seller shall have no obligation to repair or restore the Property. 
  
 12.3 Risk of Loss. Subject to the provisions of this Article
XII, the risk of loss or damage to the Property shall remain with Seller until the delivery of the Deed. 
  
 ARTICLE XIII 
 Apportionments 
  
 13.1 Apportionments. The following apportionments shall be made
between the parties at the Closing as of the close of business on the day immediately prior to the Closing Date (the “Apportionment Date”). 
  
 (a) real estate taxes, personal property taxes, special assessments and vault charges, if any, on the basis of the fiscal period for which assessed;

  
 (b) fuel oil in the tank at the Hotel, if any, (based upon
invoice cost, first in, first out), water and sewer service charges and charges for gas, electricity, telephone and all other public utilities. If there are meters measuring the consumption of water, gas or electric current, Seller shall, not more
than one day prior to the Apportionment Date, if possible, cause such meters to be read, and shall pay all utility bills for which Seller is liable upon receipt of statements therefor. Purchaser 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. All utility adjustments will be made by the parties outside of Closing; 
  
 (c) amounts which have been paid or are payable under the Contracts, Space
Leases, Equipment Leases and Permits assigned to and assumed by Purchaser at Closing; 
  
 (d) prepaid advertising expenses; 
  
 (e) commissions of credit and referral organizations; 
  
 (f) all other charges and fees customarily prorated and adjusted in similar transactions. 
  

 -24- 

 In addition to the foregoing apportionments, the Purchase Price shall be increased by the amount of petty
cash at the Hotel on the Closing Date and the amounts on deposit in all bank accounts and escrow accounts (other than the FF&E replacement reserve which shall remain the property of Seller). 
  
 13.2 Room Revenue; Receivables and Payables. All revenues
received or to be received from transient guests on account of room rents for the period prior to and including the Apportionment Date shall belong to Seller (with Purchaser to remit such revenues to Seller to the extent any such revenues are paid
to Purchaser following Closing, provided that any such revenues received by Purchaser shall, except to the extent the payment indicates that it applies to goods or services provided prior to Closing, be applied first to any indebtedness owing by the
person paying such amount to Purchaser and thereafter to such person’s indebtedness to Seller), and for the period beginning on the day immediately following the Apportionment Date such revenues shall belong to Purchaser; provided, however,
that revenues received or “posted” in the normal course after the time Seller normally closes its front desk activity for the “night” audit for the Apportionment Date (the “Front Desk Closing Hour”) shall belong
to Purchaser. The accounts receivable of registered guests at the Property who have not checked out and were occupying rooms as of 12:01 a.m. on the Apportionment Date are collectively called the “Current Ledger”, and Purchaser
shall pay over to Seller, as and when received by Purchaser, Seller’s share of the proceeds of the Current Ledger attributable to payments of each guest’s account for the period ending on and including the Apportionment Date, it being the
intent of the parties that all room revenues for the night preceding Closing will be divided evenly between Seller and Purchaser. In the event that an amount less than the total amount due from a guest is collected and the guest continued in
occupancy after the Apportionment Date, such amount shall be applied first to any indebtedness owing by such person to Seller and thereafter to such person’s indebtedness to Purchaser, except that if Existing Manager or Seller knew prior to
Closing of any questions or disputes concerning any bill on which a receivable is based, then partial payments on such bills shall be paid first to Purchaser. Purchaser shall purchase from Seller all of Seller’s accounts receivable relating to
the Hotel which are not aged more than ninety (90) days at ninety-five percent (95%) of the amount of such receivables. All other accounts receivable and accounts payable relating to the Hotel in respect of the period prior to the Apportionment Date
shall be for Seller’s sole account, and Purchaser shall not be responsible to Seller for the collection or payment of same. Notwithstanding the foregoing, payments received by Purchaser that are identified as relating to accounts receivable not
purchased by Purchaser shall be promptly turned over to Seller. 
  
 13.4 Food and Beverage Revenue. All monies received in connection with bar and restaurant services, if any, at the Hotel (other than amounts due from any guest) during the Apportionment Date shall belong to Seller. 

 

 -25- 

 13.5 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 Purchaser’s representatives on the Closing Date. Purchaser 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. All baggage or other property of guests retained by Seller as security for unpaid accounts receivable may be left at the Hotel, for
a period not to exceed one (1) month from Closing Date, within which time such baggage or other property shall be removed or otherwise disposed of by Seller. 
  
 13.6 Accounting. Except as otherwise expressly provided herein, 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 Purchaser, and, upon the request of either Purchaser or
Seller, shall be reviewed by a mutually acceptable reputable accounting firm (the “Accountants”) and reviewed by representatives of both Purchaser and Seller. To the extent the exact amount of any adjustment item provided for in
this Article XIII cannot be precisely determined on the Closing Date, the Accountants shall estimate the amount thereof, for purposes of computing the net amount due Seller or Purchaser pursuant to this Article XIII and shall determine the exact
amount thereof not later than thirty (30) days after the Closing Date. All determinations made by the Accountants shall be binding on both Seller and Purchaser. The fees and expenses of the Accountants shall be borne one-half each by Seller and
Purchaser. 
  
 13.7 Employee Compensation. Seller
shall be responsible for any liability to or respecting Employees having accrued through 12:01 a.m. on the Closing Date, including for payment of all employees’ wages, accrued vacation pay, sick leave, bonuses, pension benefits, including,
without limitation, any COBRA rights, and other benefits earned and accrued by employees at the Hotel through 12:01 a.m. on the Closing Date, together with F.I.C.A., unemployment and other taxes and benefits due from any employer of such employees.
Purchaser shall be responsible for any liability for payment of all employees’ wages, accrued vacation pay, sick leave, bonuses, pension benefits, including, without limitation, any COBRA rights, and other benefits earned and accrued by
employees at the Property accruing after 12:01 a.m. on the Closing Date, together with F.I.C.A., unemployment and other taxes and benefits due from any employer of such employee. Notwithstanding the foregoing, Purchaser shall assume and undertake to
pay, defend and discharge and perform when due accrued vacation pay, sick leave and bonuses for employees at the Property it has hired or caused its manager to hire, to the extent that (i) such accrued vacation leave, sick pay and bonuses are
reflected properly on a schedule delivered by Seller to Purchaser at Closing and acknowledged by each of the employees listed on such schedule and (ii) Purchaser receives a credit therefore against the Purchase Price. 
  

 -26- 

 ARTICLE XIV 
 Miscellaneous 
  
 14.1 Assignment. (a) Neither party shall assign or transfer or permit the assignment or transfer of its rights or obligations under this Agreement without the prior written consent of the other, any such assignment or transfer
without such prior consent being hereby declared to be null and void; provided, however, that Purchaser shall have the right to assign this Agreement (x) without Seller’s consent to (i) Highland Hospitality Corporation or a
subsidiary or an affiliate thereof or (ii) a subsidiary or an affiliate of Purchaser or (b) with Seller’s consent, which consent shall not be unreasonably withheld or delayed, to a third party capital partner; provided that in each case
Purchaser shall provide written notice of such assignment by not later than five (5) business days prior to Closing and Purchaser shall remain liable to Seller for its obligations hereunder. 
  
 (b) In the event either party consents to an assignment of this Agreement by
the other for which consent is required, no further assignment shall be made without another written consent from the consenting party, unless the assignment may otherwise be made without consent under this Agreement. An assignment by either Seller
or Purchaser of its interest in this Agreement shall not relieve Seller or Purchaser, as the case may be, from its obligations, but this Agreement shall then inure to the benefit of, and be binding on, the assignee’s successors, heirs, legal
representatives and assigns. 
  
 14.2 Consents. If,
under this Agreement, the consent of a party is required, the consent shall be in writing and shall be executed by a duly authorized officer or agent. 
  
 14.3 Applicable Law. This Agreement shall be governed by the laws of the State of Maryland, without resort to the choice of law rules
thereof. 
  
 14.4 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. 
  
 14.5
Notices. Notices and other communications required by this Agreement shall be in writing and delivered by hand against receipt or sent by recognized overnight delivery service or by certified or registered mail, postage prepaid, with
return receipt requested. All notices shall be addressed as follows: 
  

 -27- 

 If to Seller: 
  

RLJ Development, LLC 
 6903 Rockledge Drive

 Suite 910 
 Bethesda, Maryland
20817 
 Attention: Thomas J. Baltimore, Jr. 
 Facsimile: (301) 896-0203 
  
 with
a copy to: 
  
 Arent Fox Kintner Plotkin & Kahn, PLLC

 1050 Connecticut Avenue, N.W. 
 Washington, DC 20036-5339 
 Attention: Gerard Leval, Esq. 
 Facsimile: (202) 857-6395 
  
 If to Purchaser: 
  
 Barceló Crestline Corporation 
 8405
Greensboro Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: General Counsel 
  
 With a copy to: 
  
 c Barceló Crestline
Corporation 
 8405 Greensboro Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: Chief Operating Officer 
  
 or to such other address as may be designated by a proper notice. Notices shall be deemed to
be effective upon receipt or refusal of the addressee to accept delivery. 
  
 14.6 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. 
  
 14.7 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 operate as an undue hardship on Seller or Purchaser or would constitute a substantial deviation from the general intent of the
parties as reflected in this Agreement. 
  

 -28- 

 14.8 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, 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. 
  
 14.9 Time is of the Essence. Time is of the essence with respect to performance of all obligations under this
Agreement. 
  
 14.10 Waiver of Jury Trial. Seller
and Purchaser 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. 
  
 14.11 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. 
  
 14.12 Brokerage. Purchaser and Seller each represents and warrants to the other that no broker or agent is entitled to the payment of a
commission for services rendered in connection with the transactions contemplated herein. Each of the parties hereto agrees to indemnify and hold the other harmless from claims made by any 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 14.12 shall survive Closing. 
  
 14.13 Right to Audit. Purchaser may, at its sole cost and expense, engage a third-party certified public
accountant to perform audits of the books and records of the Property, including the historical financial statements of the Property, which audits shall include all disclosures required by generally accepted accounting principles and the Securities
and Exchange Commission regulations, specifically in accordance with Section 3.05 of Regulation S-X and all related rules and regulations thereof. Seller shall and shall use commercially reasonably efforts to cause the Existing Manager to cooperate
in connection with the performance of such audits and shall provide all information reasonably requested by such accountants. In connection with such audits, Seller and Existing Manager shall provide the accountants performing such audits with
appropriate representation letters in accordance with American Institute of Public Accountants professional standards. 
  
 14.14 Attorneys’ Fees. If either party hereto fails to materially perform any of its obligations under this Agreement or if any dispute
arises between the parties hereto concerning the meaning or interpretation of any provision of this 

  

 -29- 

 
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. 
  
 14.15 Limited Liability. The obligations of Seller are intended to be binding only on the Seller and shall not be personally binding upon,
nor shall any resort be had to, the private properties of any of its trustees, officers, members, managers, directors or shareholders thereof, or any employees or agents of Seller. 
  
 14.16 Public Announcements. Neither Seller nor Purchaser shall make any public statement or issue any press
release prior to the Closing with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other party. 
  
 14.17 Time for Performance. If the date for the performance of any obligation, or the giving of any notice, by Seller or Purchaser hereunder
falls upon a Saturday, Sunday or legal holiday recognized by the United States government, then the time for such performance or notice shall be extended until the next business day. 
  
 14.18 Further Assurances. Each party agrees to execute and deliver, after the Closing, such forms of
corrective Deeds, Bills of Sale or other documentation as the other party may reasonably request to carry out the intent of this Agreement. 
  
 14.19 Non-Solicitation. During the period from the Contract Date until the Closing or the earlier termination of this Agreement, Seller
shall not directly make, accept, solicit, negotiate, entertain or otherwise pursue, or authorize any representative or affiliate of Seller to make, accept, solicit, negotiate, entertain or otherwise pursue, any offers for the financing, or direct or
indirect sale or disposition of the Property or any portion thereof, other than the transactions contemplated by this Agreement. 
  
 14.20 1031 Exchange. Purchaser acknowledges that Seller has advised Purchaser that Seller is reserving its right to exchange the Property
for other property of like kind and qualifying use within the meaning of Section 1031 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. Seller expressly reserves the right to assign such rights, but not
its obligations, under this Agreement to a “Qualified Intermediary” as provided in such 

  

 -30- 

 
regulations on or before the Closing Date. Purchaser agrees to cooperate with Seller to effectuate such exchange, provided that (i) Seller shall pay all
costs and advance all funds required in connection with such exchange and shall indemnify, defend and hold Purchaser Indemnitees harmless from all claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable
attorneys’ fees) in connection with such exchange, (ii) Seller shall remain liable for any of its obligations under this Agreement, (iii) such exchange shall not cause or result in any delay of the Closing, and (iv) Purchaser shall not be
required to take title to any other property in connection with such exchange. 
  
 IN WITNESS WHEREOF, Seller and Purchaser have caused this Agreement to be executed as of the Contract Date indicated above. 
  

	 SELLER

	
	 RLJ TAMPA HOTEL, LLC

		
	 By:
	 	 /s/  THOMAS J. BALTIMORE, JR.

	 Name: Thomas J. Baltimore, Jr.

	 Its:       President

	
	 PURCHASER

	
	 BARCELO CRESTLINE COPORATION

		
	 By:
	 	 /s/  BRUCE D. WARDINSKI

	 Name: Bruce D. Wardinski

	 Its:       President and Chief Executive Officer

  

 -31- 

 EXHIBITS 
  

	A	  	Legal Description of Land
	B	  	Purchase Price Allocation
	C	  	Form of Escrow Instructions
	D	  	List of Litigation
	E	  	List of Material Contracts
	F	  	List of Material Equipment Leases
	G	  	List of Material Space Leases
	H	  	List of Permits
	I	  	List of Environmental Reports
	J	  	List of Insurance Policies
	K	  	List of Loan Documents
	L	  	List of Permitted Exceptions
	M	  	Form of Deed
	N	  	Form of Bill of SaleEXHIBIT 10.21

 EXHIBIT 10.21 
  

 PURCHASE AND SALE AGREEMENT 
  
 for 
  
 Hyatt Savannah Hotel And 
 Related Rear Wharf Property 
  
 by and among 
  
 AP/APMC Savannah, L.P.,

 a Delaware limited partnership 
  
 (“Seller”) 
  
 and 
  
 Barceló Crestline Corporation 
 a Maryland corporation 
  
 (“Buyer”) 
  
 Dated as of September 17, 2003 
  

 TABLE OF CONTENTS 
  

	 	  	 	  	Page

	 1.
	  	 Purchase and Sale of Property; Assumption of Liabilities
	  	1
				
	 	  	 (a)
	 	 Purchase and Sale of Property
	  	1
				
	 	  	 (b)
	 	 Property
	  	1
				
	 	  	 (c)
	 	 Excluded Property
	  	3
			
	 2.
	  	 Purchase Price
	  	4
				
	 	  	 (a)
	 	 Deposit
	  	4
				
	 	  	 (b)
	 	 Interest
	  	4
				
	 	  	 (c)
	 	 Cash at Closing
	  	4
				
	 	  	 (d)
	 	 Allocation
	  	4
			
	 3.
	  	 Title and Inspection Period
	  	4
				
	 	  	 (a)
	 	 Title; Survey
	  	4
				
	 	  	 (b)
	 	 Condition of Title
	  	5
				
	 	  	 (c)
	 	 Title Insurance
	  	6
			
	 4.
	  	 Closing
	  	7
				
	 	  	 (a)
	 	 Closing Date
	  	7
				
	 	  	 (b)
	 	 Buyer’s Deliveries
	  	7
				
	 	  	 (c)
	 	 Seller’s Deliveries
	  	7
				
	 	  	 (d)
	 	 Closing Costs
	  	8
				
	 	  	 (e)
	 	 Revenue and Expense Allocations
	  	8
				
	 	  	 (f)
	 	 Additional Credits and Adjustments
	  	9
				
	 	  	 (g)
	 	 Re-Proration
	  	10
				
	 	  	 (h)
	 	 Safe and Baggage
	  	10
			
	 5.
	  	 Conditions to Closing
	  	11
				
	 	  	 (a)
	 	 Buyer’s Obligation
	  	11
				
	 	  	 (b)
	 	 Seller’s Obligation
	  	12
			
	 6.
	  	 Representations and Warranties of Seller
	  	12
				
	 	  	 (a)
	 	 Authority; No Conflicts
	  	12
				
	 	  	 (b)
	 	 Title to Property
	  	13
				
	 	  	 (c)
	 	 Litigation; Decrees
	  	13
				
	 	  	 (d)
	 	 Compliance with Applicable Laws
	  	14

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

	 	  	 	  	Page

	 	  	 (e)
	 	 Taxes
	  	14
				
	 	  	 (f)
	 	 Bankruptcy
	  	14
				
	 	  	 (g)
	 	 Condemnation
	  	14
				
	 	  	 (h)
	 	 Contracts
	  	14
				
	 	  	 (i)
	 	 Real Property Leases
	  	14
				
	 	  	 (j)
	 	 Equipment Leases
	  	15
				
	 	  	 (k)
	 	 Hotel Management Agreement
	  	15
				
	 	  	 (l)
	 	 Authorizations
	  	15
				
	 	  	 (m)
	 	 Employees
	  	15
				
	 	  	 (n)
	 	 Environmental Matters
	  	15
				
	 	  	 (o)
	 	 Materiality
	  	16
				
	 	  	 (p)
	 	 Complete Copies
	  	16
				
	 	  	 (q)
	 	 No Implied Representations
	  	16
			
	 7.
	  	 Covenants of Seller
	  	16
				
	 	  	 (a)
	 	 Access
	  	16
				
	 	  	 (b)
	 	 Ordinary Conduct
	  	17
				
	 	  	 (c)
	 	 Employees
	  	17
				
	 	  	 (d)
	 	 Insurance
	  	17
				
	 	  	 (e)
	 	 Contracts, Real Property Leases and Equipment Leases
	  	17
			
	 8.
	  	 Representations and Warranties of Buyer
	  	17
				
	 	  	 (a)
	 	 Authority; No Conflicts
	  	17
				
	 	  	 (b)
	 	 Actions and Proceedings, etc
	  	18
				
	 	  	 (c)
	 	 Investigation; Financial
	  	18
				
	 	  	 (d)
	 	 Availability of Funds
	  	19
				
	 	  	 (e)
	 	 No Knowledge of Misrepresentation or Omissions
	  	19
				
	 	  	 (f)
	 	 No Additional Representations
	  	19
			
	 9.
	  	 Covenants of Buyer
	  	19
				
	 	  	 (a)
	 	 Notification
	  	19
				
	 	  	 (b)
	 	 Employees
	  	20
				
	 	  	 (c)
	 	 Liquor License
	  	20

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

	 	  	 	  	Page

	 10.
	  	 Mutual Covenants
	  	20
				
	 	  	 (a)
	 	 Confidentiality
	  	20
				
	 	  	 (b)
	 	 Consents
	  	21
				
	 	  	 (c)
	 	 Publicity
	  	21
				
	 	  	 (d)
	 	 Further Assurances
	  	21
			
	 11.
	  	 Damage Or Destruction Of The Property; Condemnation
	  	21
				
	 	  	 (a)
	 	 Damage or Destruction of the Property
	  	21
				
	 	  	 (b)
	 	 Condemnation
	  	22
			
	 12.
	  	 Indemnification
	  	22
				
	 	  	 (a)
	 	 Indemnification by Seller
	  	22
				
	 	  	 (b)
	 	 Exclusive Remedy
	  	23
				
	 	  	 (c)
	 	 Indemnification by Buyer
	  	23
				
	 	  	 (d)
	 	 Losses Net of Insurance
	  	23
				
	 	  	 (e)
	 	 Termination of Indemnification
	  	23
				
	 	  	 (f)
	 	 Procedures Relating to Indemnification
	  	24
			
	 13.
	  	 Assignment
	  	24
			
	 14.
	  	 No Third-Party Beneficiaries
	  	25
			
	 15.
	  	 Termination
	  	25
				
	 	  	 (a)
	 	 Buyer’s Termination Rights
	  	25
				
	 	  	 (b)
	 	 Seller’s Termination Rights
	  	25
				
	 	  	 (c)
	 	 Notice of Default
	  	26
				
	 	  	 (d)
	 	 Effect of Termination
	  	26
			
	 16.
	  	 Survival of Representations
	  	26
			
	 17.
	  	 Seller’s Knowledge
	  	26
			
	 18.
	  	 Expenses
	  	27
			
	 19.
	  	 Amendment and Waiver
	  	27
			
	 20.
	  	 Notices
	  	27
			
	 21.
	  	 Interpretation
	  	28
			
	 22.
	  	 No Strict Construction
	  	29
			
	 23.
	  	 Counterparts
	  	29

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

	 	  	 	  	Page

	 24.
	  	 Entire Agreement
	  	29
			
	 25.
	  	 Brokerage
	  	29
			
	 26.
	  	 Disclaimer Regarding Projections
	  	29
			
	 27.
	  	 Schedules
	  	29
			
	 28.
	  	 Severability
	  	30
			
	 29.
	  	 Bulk Sale Transfer Laws
	  	30
			
	 30.
	  	 Governing Law
	  	30
			
	 31.
	  	 Exhibits and Schedules
	  	30
			
	 32.
	  	 Recording
	  	30
			
	 33.
	  	 Time of the Essence
	  	30
			
	 34.
	  	 Calculation of Time Periods
	  	30
			
	 35.
	  	 Arbitration
	  	30
			
	 36.
	  	 Non-Solicitation
	  	31
			
	 37.
	  	 Right to Audit
	  	31

  

 -iv- 

 LIST OF EXHIBITS AND DISCLOSURE SCHEDULES 
  

	EXHIBITS	  	 
		
	 Exhibit A
	  	 Definitions

	 Exhibit B
	  	 Legal Description of Land

	 Exhibit C
	  	 Bill of Sale

	 Exhibit D
	  	 Assignment and Assumption

		
	SCHEDULES	  	 
		
	 Schedule 1(b)(v)
	  	 Contracts Schedule

	 Schedule 1(b)(vi)
	  	 Real Property Lease Schedule

	 Schedule 1(b)(vii)
	  	 Equipment Lease Schedule

	 Schedule 1(c)(v)
	  	 Excluded Matter Schedule

	 Schedule 5(a)(iii)
	  	 Required Third Party Consents Schedule

	 Schedule 5(a)(vi)
	  	 Liquor Licenses

	 Schedule 6(b)
	  	 Lien Schedule

	 Schedule 6(c)
	  	 Litigation Schedule

	 Schedule 6(d)
	  	 Compliance Schedule

	 Schedule 6(n)
	  	 Environmental Reports

 PURCHASE AND SALE AGREEMENT 
  
 This PURCHASE AND SALE AGREEMENT (this “Agreement”), is made and entered into as of September 17, 2003 (the
“Effective Date”), by and among AP/APMC Savannah, L.P., a Delaware limited partnership (“Seller”) and Barceló Crestline Corporation, a Maryland corporation (“Buyer”). 
  
 WITNESSETH: 
  
 WHEREAS, Seller desires to sell or cause to be sold to Buyer all of the Property, and Buyer desires to purchase such
Property and to assume all of the Assumed Liabilities, upon the terms and subject to the conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and
covenants herein contained, the parties hereto hereby agree as follows: 
  
 1.
Purchase and Sale of Property; Assumption of Liabilities. 
  
 (a) Purchase and Sale of Property. On the terms and subject to the conditions of this Agreement, at the Closing, Seller shall sell, convey, transfer and assign to Buyer, or cause to be sold, conveyed, transferred and assigned to
Buyer, and Buyer shall purchase and acquire from Seller, all of Seller’s right, title and interest in and to the Property (defined below). Defined terms used herein, and not otherwise defined herein, shall have the meanings set forth in
Exhibit A attached hereto. 
  
 (b) Property. The
term “Property” shall mean all right, title and interest of Seller in the following items relating to the Hyatt Regency Savannah Hotel as currently operated by Seller (the “Business”): 
  
 (i) that certain real property located in Chatham County, Georgia, as more
particularly described on Exhibit B, being those parcels consisting of approximately 1.085 acres on which the Hotel is located and that parcel known as Rear Wharf Lot 6 consisting of approximately .166 acres, together with all easements,
rights, privileges, remainders, reversions and appurtenances thereunto belonging or in any way appertaining, and all of the estate, right, title, interest, claim or demand whatsoever of Seller therein, in the streets and ways adjacent thereto and in
the beds thereof, either at law or in equity, in possession or expectancy, now or hereafter acquired (the “Land”); 
  
 (ii) the 347 guest room hotel and related amenities located on the Land (the “Hotel”) and all other buildings, improvements, fixtures and
other items of real estate located on the Land (the “Improvements”); 
  
 (iii) all of the items of tangible personal property consisting of all furniture, fixtures, equipment, machinery and other tangible personal property of every kind and nature located on or used in the operation of the
Hotel and owned by Seller, including, without 

 
limitation, all unopened food and alcoholic or non-alcoholic beverages (excluding any alcoholic beverages that may not legally be sold to Buyer under
applicable law), the stock of linens, towels, paper goods, soaps, cleaning supplies, china, glassware, silverware, tablecloths, napkins, television sets, carpets, drapes, rugs, floor coverings, mattresses, pillows, bed spreads and miscellaneous
guest supplies, engineering cleaning supplies and the like (the “Tangible Personal Property”); 
  
 (iv) all intangible personal property owned, licensed or possessed by Seller and used in connection with the ownership, operation, leasing, occupancy or
maintenance of the Property, to the extent same is assignable, including, without limitation, (1) to the extent transferable, the Authorizations (as defined below), (2) utility and development rights and privileges, business records, plans and
specifications pertaining to the Hotel, the Improvements and the Personal Property, (3) any unpaid award for taking by condemnation or any damage to the Land by reason of a change of grade or location of or access to any street or highway which was
not effective prior to the Effective Date, (4) any trademarks, service marks, copyrights, registrations of same, applications for trademark and service mark registrations, business and trade names or logos, and patents and patent applications that
are owned by or licensed to Seller and used in connection with the ownership, occupancy, operation, and/or maintenance of the Property, and (5) Buyer’s share of the Tray Ledger determined under Section 4(e) (the “Intangible
Personal Property”); 
  
 (v) all contracts, agreements,
licenses, indentures, personal property leases and other legally binding arrangements that are listed or described on the Contracts Schedule attached hereto as Schedule 1(b)(v) or to which Seller or Hotel Manager is a party that relate
to the use, maintenance, operation, provisioning or equipping of the Hotel, whether or not so listed or described, including, without limitation, the Hotel Management Agreement, the Dock Usage Agreement, any reservation service agreement and any
franchise agreement (collectively, the “Contracts”), and all commitments and orders for the purchase and sale of goods and equipment (including inventory and supplies) and services (including advertising, maintenance and other
incidental services) relating to the use, maintenance, operation, provisioning or equipping of the Hotel (collectively, the “Purchase Orders”); 
  

(vi) all leases, licenses, concessions and other similar occupancy agreements, listed on the Real Property Lease Schedule attached hereto as
Schedule 1(b)(vi) or to which Seller or Hotel Manager is a party, whether or not so listed or described, that relate to the Hotel, (collectively, the “Real Property Leases”), together with any security deposits related
thereto; 
  
 (vii) all equipment leases listed on the Equipment
Lease Schedule attached hereto Schedule 1(b)(vii) or to which Seller or Hotel Manager is a party, whether or not so listed, that relate to the use, maintenance, operation, provisioning or equipping of the Hotel (collectively, the
“Equipment Leases”); 
  
 (viii) all existing
books, print materials, promotional materials, and advertising copy used by Seller exclusively in connection with the Business, all existing customer and vendor lists and price lists relating exclusively to the Business; 
  

 2 

 (ix) all goodwill relating exclusively to the Business; and 
  
 (x) to the extent assignable, all Authorizations. 
  
 Prior to the Closing, Seller shall have the right to update the Contracts,
the Real Property Leases and the Equipment Leases shown on Schedule 1(b)(v), Schedule 1(b)(vi) and Schedule 1(b)(vii), respectively, to reflect changes in the ordinary course of the Business. 
  
 (c) Excluded Property. The Property shall not include any assets other
than the Property specifically listed or described in Section 1(b) hereof, and, without limiting the generality of the foregoing, shall expressly exclude the following (collectively, “Excluded Matters”): 
  
 (i) all bank accounts, house banks, cash and cash equivalents of Seller;

  
 (ii) cash reserves for furniture, fixtures and equipment, real
estate and personal property taxes and insurance except to the extent that Seller receives a credit at Closing for such reserves; 
  
 (iii) accounts receivable, which shall be purchased by Buyer in accordance with Section 4(f)(iii), except for the Buyer’s share of the Tray Ledger;

  
 (iv) claims against third parties (including claims for
refunds on taxes or other governmental charges) in connection with the Property, but only to the extent that such claims relate to damages suffered by Seller prior to the Closing Date or claims for which Seller is required to indemnify Buyer
hereunder; 
  
 (v) the assets listed or described on the
Excluded Matters Schedule attached hereto as Schedule 1(c)(v) (together with any and all claims relating to any of the foregoing described in this Section 1(c); and 
  
 (vi) all of the obligations and liabilities of Seller relating to the Property of whatever kind and nature, primary or
secondary, direct or indirect, absolute or contingent, known or unknown, which obligations and liabilities, accrue before the Closing Date, unless otherwise expressly assumed by Buyer (collectively, the “Retained Liabilities”).

  
 Assumed Liabilities. 
  
 (vii) Buyer shall assume on the Closing Date and shall pay, perform and
discharge when due all of the obligations and liabilities of Seller relating to the Property of whatever kind and nature, primary or secondary, direct or indirect, absolute or contingent, known or unknown, which obligations or liabilities accrue
after the Closing Date (collectively, the “Assumed Liabilities”); provided that the Assumed Liabilities shall not include any obligations or liabilities relating to the Excluded Matters. 
  
 (viii) Buyer’s obligations under this Section 1(c)(vi) shall not be
subject to offset or reduction by reason of any actual or alleged breach of any representation, warranty or covenant contained in this Agreement or any agreement or document delivered in connection herewith or any right or alleged right to
indemnification hereunder. 
  

 3 

 2. Purchase Price. At the Closing, Buyer shall pay as the total purchase price for the Property (the
“Purchase Price”) Fifty-One Million Seven Hundred Fifty Thousand and No/100 Dollars ($51,750,000.00) payable as follows: 
  
 (a) Deposit. Within three (3) business days following the full execution of this Agreement, Buyer shall cause the amount of Five Hundred Thousand
and No/100 Dollars ($500,000) (the “Initial Deposit”) to be deposited with Fidelity National Title Insurance Company (the “Title Company”). If Buyer does not elect to terminate this Agreement pursuant to Section
3(d), Buyer shall deposit an additional One Million and no/100 Dollars ($1,000,000.00) (“Additional Deposit”) with the Title Company before the expiration of the Inspection Period. The Initial Deposit and the Additional Deposit
are, collectively, the “Deposit.” The Deposit shall be held by the Title Company as an earnest money deposit toward the Purchase Price. The Deposit shall be held in escrow in an interest-bearing account. Buyer will provide the Title
Company with its social security or tax identification number and such additional information and documents as may be required by the Title Company with respect to the Deposit. If the Agreement is not terminated prior to the end of the Inspection
Period, the Deposit shall be subject to return only upon termination by Buyer pursuant to Section 15. 
  
 (b) Interest. Except where this Agreement provides that Seller shall be entitled to retain the Deposit and all interest earned thereon as
liquidated damages pursuant to Section 15(b) below, interest earned on the Deposit, if any, shall accrue to the benefit of Buyer. At the Closing, the Deposit (and any interest earned thereon) shall be applied against the Purchase Price. 

 
 (c) Cash at Closing. The balance of the Purchase Price, plus any
other amounts required to be paid by Buyer at Closing in accordance with this Agreement and plus or minus any prorations and allocations as provided herein, shall be paid at Closing in the form of immediately available U.S. funds by wire transfer as
more particularly set forth in Section 4 below. 
  
 (d)
Allocation. At or before the expiration of the Inspection Period Seller and Buyer shall agree as to how the Purchase Price (and all other capitalizable costs) shall be allocated among the Property. If Seller and Buyer agree on such
allocations, each party shall file federal, state and local tax returns consistent with such allocations agreed upon by the parties. If Seller and Buyer cannot agree upon such allocations within the specified time period, each party shall file
federal, state and local returns based upon each party’s determination of the proper allocations of the Purchase Price, each bearing its own consequences of any discrepancies. 
  
 3. Title and Inspection Period. 
  
 (a) Title; Survey. Buyer acknowledges that it has received simultaneously herewith, or prior to the date hereof, a copy of Seller’s
Owner’s Title Insurance Policy No. 0-9993-801472 issued by Stewart Title Guaranty Company dated January 14, 1998 (“Seller’s Title Policy”) and a copy of Seller’s most recent survey dated November 10, 1997 and last
revised December 31, 1997 and prepared by Hussey, Gay, Bell and Deyoung (“Seller’s Survey”). 
  

 4 

 (i) Prior to the Closing, Buyer may obtain, at its sole cost and expense, a commitment for an
owner’s policy of title insurance (the “Title Commitment”), issued by the Title Company covering the Land and indicating the Title Company’s willingness to issue to Buyer at Closing a ALTA Standard Owner’s Policy of
Title Insurance in the amount of the Purchase Price (the “Title Policy”), with such Title Commitment setting forth the status of title to the Land and showing liens, claims, encumbrances, easements, rights-of-way, encroachments,
reservations, covenants, conditions and restrictions and other matters of record affecting the Land, together with copies of all recorded documents referred to in the Title Commitment as exceptions to title to the Land (the “Title
Documents”). If obtained, Buyer shall provide Seller with a copy of the Title Commitment. At Buyer’s option, Buyer may elect to obtain an ALTA Owner’s Policy of Title Insurance, at Buyer’s sole cost and expense. 

 
 (ii) Prior to the Closing, Buyer may obtain, at Buyer’s sole cost and
expense, a current survey or an update to Seller’s Survey (the “Survey”). If obtained, Buyer shall provide Seller with a copy of the Survey. 
  
 (b) Condition of Title. Title to the Land shall be delivered to Buyer and Buyer agrees to accept such title subject
to all of the following (the “Permitted Exceptions”): 
  
 (i) All exceptions referenced in Seller’s Title Policy (except items 1, 2 and 11-13 on Schedule B) and all matters shown on Seller’s Survey (the “Existing Title Exceptions”); 
  
 (ii) Zoning and building regulations, insurance and rating codes and
regulations, ordinances and requirements and any other laws, regulations or ordinances affecting the Property or its use adopted by any authority having jurisdiction over the Property and the use thereof; 
  
 (iii) All taxes, impositions and assessments not yet due and payable;

  
 (iv) All other Title Documents or exceptions approved or
deemed approved by Buyer in accordance with Section 3(c); 
  
 (v)
All Real Property Leases; 
  
 (vi) Such state of facts as would be
disclosed by a survey, a physical inspection of the Property or as disclosed by any of the Due Diligence Documents; and 
  
 (vii) Any matters created by or through Buyer. 
  
 Not less than ten (10) days prior to the expiration of the Inspection Period, Buyer shall notify Seller of any items in the Title Commitment or Survey
(other than the Existing Title Exceptions and those items identified in Sections 3(b)(ii), 3(b)(iii), 3(b)(v) and 3(b)(vi)) which are unsatisfactory to Buyer in its sole and absolute discretion (the “Objections”). Except to the
extent that Buyer notifies Seller of any Objections in accordance with the foregoing, any items that are shown in the Title Commitment or on the Survey as of the expiration of the Inspection Period shall be deemed to have been approved by Buyer and
shall be Permitted Exceptions for all purposes under this Agreement. If Buyer timely notifies Seller of any Objections, Seller may, but 
  

 5 

 
except as expressly provided herein shall not be obligated to, elect to cure any or all of such Objections, to Buyer’s and the Title Company’s
reasonable satisfaction. Seller shall give notice to Buyer within five (5) days following the date of Buyer’s delivery to Seller of the Objections, stating whether Seller agrees to cure each such Objection prior to the Closing. If Seller fails
timely to give such notice, then Seller shall be conclusively deemed to have elected not to cure any such Objections. If Seller elects (or is deemed to elect) not to agree to cure any such Objections, then Buyer may either (i) waive such Objections,
without any reduction of the Purchase Price, in which event such waived Objections shall become Permitted Exceptions for all purposes under this Agreement or (ii) terminate this Agreement by written notice to Seller, whereupon the Deposit shall be
promptly returned to Buyer and the parties shall have no further rights or liabilities under this Agreement other than those that expressly survive the termination of this Agreement. Buyer shall make the election described in the preceding sentence
by written notice to Seller prior to expiration of the Inspection Period, or, if later, within five (5) days following its receipt or deemed receipt of Seller’s notice with respect to the applicable Objection, and in the event Buyer does not
make such election, Buyer shall be conclusively deemed to have waived all Objections. Seller shall cure at or before Closing any Objection that it has agreed to cure in accordance with this Section 3(c). 
  
 (c) Title Insurance. At Closing, if Buyer elects to obtain a Title
Policy, Buyer shall pay the premium required for the Title Company to issue the Title Policy insuring that title to the Land is vested in Buyer subject to the Permitted Exceptions. Buyer shall be entitled to request that the Title Company provide,
at Buyer’s sole cost and expense, endorsements to the Title Policy as Buyer may reasonably require including extended coverage, provided that such endorsements shall be at no cost or additional liability to Seller, but shall be at Buyer’s
sole cost and expense, and that Closing shall not be delayed as a result of Buyer’s request. Notwithstanding the foregoing, Buyer may elect to obtain a title insurance policy in a form other than as set forth above in Section 3(a)(i) or from a
title company other than the Title Company. 
  
 (d) Inspection
Period. Subject to Section 7(a), Buyer and Buyer’s agent and contractors shall have the right, at its own risk, cost and expense, to enter upon the Property for the purpose of making surveys or other tests, inspections, investigations
and/or studies of all or any part of the Property and to speak with the Hotel’s senior management team, in each case, at the Hotel at reasonable times and upon reasonable prior notice to Seller from the Effective Date until the date that is
thirty (30) days after the Effective Date (the “Inspection Period”), and, unless this Agreement is otherwise terminated, from and after the expiration of the Inspection Period and until the Closing. If Buyer does not notify Seller
in writing on or before expiration of the Inspection Period that Buyer elects, in its sole and absolute discretion, not to consummate the purchase of the Property in accordance with the terms of this Agreement, Buyer shall be deemed to have elected
to proceed hereunder and the Deposit shall be non-refundable to Buyer except as set forth in Section 15(a). Buyer shall not be required to give its reasons for terminating this Agreement pursuant to this paragraph. Subject to the provisions of the
Hotel Management Agreement, Buyer shall have reasonable access to all Contracts, Equipment Leases, Real Property Leases, Authorizations and other files, documentation, agreements and other information in the possession or control of Seller or
Seller’s agents related to the design, construction, ownership, operation, management, use and occupancy of the Property and the right to inspect and/or make copies of the same. 
  

 6 

 4. Closing. 
  
 (a) Closing Date. The closing (the “Closing”) of the purchase and sale of the Property and the assumption of the Assumed
Liabilities shall be held at 10:00 a.m., local time, upon the date that is the later of (i) thirty (30) days following the expiration of the Inspection Period (the “Scheduled Closing Date”) subject to extension as set forth below
and (ii) such other time and such other date as the parties hereto mutually agree. Buyer shall have one option to extend the Scheduled Closing Date for up to sixty (60) days by (i) providing Seller with notice of such election to extend not later
than twenty-five (25) days after the expiration of the Inspection Period (“Extension Notice”) and (ii) depositing with the Title Company within three (3) business days after delivery of the Extension Notice an additional earnest
money deposit of Five Hundred Thousand and no/100 Dollars ($500,000.00) (the “Extension Deposit”). Upon delivery to the Title Company, the Extension Deposit shall become part of the Deposit for all purposes herein. The date on which
the Closing shall occur is hereinafter referred to as the “Closing Date.” Seller and Buyer shall cooperate to effect the Closing through an escrow with the Title Company. On the day immediately preceding the Closing Date, Buyer and
Seller shall conduct a pre-closing at the same location as the Closing, commencing at 10:00 a.m., local time, at which time each party shall present for review by the other party copies in execution form of all documents required to be delivered by
such party at the Closing. 
  
 (b) Buyer’s Deliveries.
At the Closing, subject to and on the terms and conditions set forth in this Agreement, Buyer shall deliver to Seller (i) by wire transfer, to a bank account designated in writing by Seller, immediately available funds in an amount equal to the
Purchase Price as adjusted pursuant to this Section 4, (ii) a bill of sale and assignment substantially in the form set forth as Exhibit C, dated as of the Closing Date, conveying to Buyer the Personal Property, (iii) an assignment and assumption
substantially in the form set forth as Exhibit D assigning all of the Assumed Liabilities, including without limitation, Authorizations, Contracts, Real Property Leases and Equipment Leases, to the extent the foregoing are assignable, (iv) an
assignment and assumption of the Hotel Management Agreement, in a form agreed upon by Buyer and Seller, (v) such other documents or instruments as may be reasonably requested by Seller or Title Company to effectuate the transactions contemplated by
this Agreement, (vi) a certificate signed by Buyer confirming that the representations and warranties set forth in this Agreement are true and correct in all material respects, and (vii) certified copies of resolutions duly adopted by Buyer’s
board of directors authorizing the execution, delivery and performance of this Agreement and the other agreements contemplated hereby. 
  
 (c) Seller’s Deliveries. At the Closing, subject to and on the terms and conditions set forth in this Agreement, Seller shall deliver or cause
to be delivered to Buyer (i) a special warranty deed in the form customarily used in the jurisdiction where the Property is located conveying fee simple title to the Land, together with the Hotel and Improvements, duly executed and acknowledged by
Seller, (ii) a bill of sale and assignment and assumption of documents substantially in the form set forth as Exhibit C, dated as of the Closing Date, conveying to Buyer the Personal Property, (iii) an assignment and assumption in the form attached
hereto as Exhibit D assigning all of the Assumed Liabilities, including, without limitation, Authorizations, Contracts, Real Property Leases and Equipment Leases, to the extent the foregoing are assignable, (iv) an assignment and assumption
of the Hotel Management Agreement, in a form agreed upon by 

  

 7 

 
Buyer and Seller, (v) Seller’s title affidavit, in customary form acceptable to Title Company, with respect to parties in possession and mechanics’
liens, duly executed by Seller, (vi) a certificate to the effect that Seller is not a foreign person for the purposes of the Foreign Investors in Real Property Tax Act, (vii) such other documents or instruments as may be reasonably requested by
Buyer or Title Company to effectuate the transactions contemplated by this Agreement, (viii) to the extent within the possession of Seller, originals of the Contracts, the Real Property Leases, the Equipment Leases and the books and records, and all
master keys to all locks located at the Hotel (delivery of the foregoing items at the Hotel on the Closing Date shall constitute compliance with this Section 4(c)), (ix) a certificate signed by Seller confirming that the representations and
warranties set forth in this Agreement are true and correct in all material respects, and (x) certified copies of resolutions duly adopted pursuant to Seller’s limited partnership agreement authorizing the execution, delivery and performance of
this Agreement and the other agreements contemplated hereby. 
  
 (d) Closing Costs. Except as is expressly provided in this Agreement, each party hereto shall pay its own legal fees and expenses. Buyer and Seller shall share equally in the payment of all sales, use, excise, value-added, business,
goods and services, transfer, stamp, recording, documentary, registration, conveyancing or similar taxes, duties or expenses that may be imposed as a result of the sale and transfer of the Property together with any and all penalties, interest and
additions to tax with respect thereto, provided, however, Seller shall remain solely liable for any penalties, interest and additions to tax relating to the operation of the Hotel prior to the Closing Date. Seller and Buyer shall cooperate in timely
making all filings, returns, reports and forms as may be required to comply with the provisions of such tax laws. Buyer and Seller shall also cooperate in providing each other with appropriate resale exemption certifications and other similar tax
and fee documentation. Seller shall pay for the costs associated with the releases of any deeds of trust, mortgages and other financing obtained by Seller encumbering the Property and for any costs associated with any corrective instruments. Seller
shall pay one half (1⁄2) of any closing costs of the Title Company. Buyer shall pay the premium for the Title Policy and all endorsements to the Title Policy. Buyer shall pay the cost of obtaining a new survey or updating Seller’s Survey and
all costs related to or associated with financing of the purchase of the Property or the assumption of financing in connection therewith. Buyer shall pay one half (1⁄2) of any closing costs of the Title Company. 
  
 (e) Revenue and Expense Allocations. All revenues and expenses with
respect to the Property, and applicable to the period of time before and after the Closing, determined in accordance with the Uniform System of Accounts for the Lodging Industry, Ninth Revised Edition, and otherwise in accordance with generally
accepted accounting principles consistently applied, shall be allocated between Seller and Buyer as provided herein. Seller shall be entitled to all revenue and shall be responsible for all expenses for the period of time up to but not including the
Closing Date, and Buyer shall be entitled to all revenue and shall be responsible for all expenses for the period of time from, after and including the Closing Date (provided that housekeeping costs and the Tray Ledger (as defined below) for the
Closing Date shall be shared equally between Buyer and Seller). Notwithstanding the foregoing, revenues generated by food and beverage facilities at the Hotel shall be prorated as of 3:01 a.m. on the Closing Date. Such adjustments shall be shown on
the closing statements (with such supporting documentation as the parties hereto may require being attached as exhibits to the closing statements) and shall increase or decrease (as the case may be) the Purchase Price. Without limiting the
generality of the foregoing, the following items of revenue and expense shall be allocated at Closing: 
  

	(i)	Current rents; 

  

 8 

 (ii) Real estate and personal property taxes, other than taxes related to the transfer of title to any
part of the Property; 
  
 (iii) Revenue and expenses under the
Contracts, the Equipment Leases and the Real Property Leases; 
  
 (iv) Utility charges (including, but not limited to, charges for water, sewer and electricity); 
  
 (v) Municipal or other governmental improvement liens, which shall be paid by Seller at Closing where the work has been performed prior to the Closing
Date, and which shall be assumed by Buyer at Closing where the work has not been performed prior to the Closing Date; 
  
 (vi) Permit fees, where transferable; 
  
 (vii) All other revenues and expenses of the Property, including, but not limited to, such things as restaurant, bar and meeting room income and expenses
and the like; and 
  
 (viii) Such other items as are usually and
customarily prorated between buyers and sellers of hotel properties in the area where the Property is located. 
  
 (f) Additional Credits and Adjustments. 
  
 (i) Seller shall retain and Buyer shall receive a credit against the Purchase Price for the total of (1) prepaid rents paid to Seller, (2) prepaid room
receipts and deposits, function receipts and deposits and other reservation receipts and deposits paid to Seller, and (3) unforfeited security deposits (and, to the extent interest is payable to the tenant, interest thereon) held by Seller under the
Real Property Leases. 
  
 (ii) At Closing, Seller shall sell to
Buyer in connection with the Hotel, and Buyer shall acquire from Seller, and the Purchase Price shall be increased by the face value of the so-called “guest ledger” (as mutually approved by Buyer and Seller) for the Hotel of guest accounts
receivable payable to the Hotel as of the check out time for the Hotel on the Closing Date (based on guests and customers then using the Hotel) both (1) in occupancy from the preceding night through check out time the morning of the Closing Date,
and (2) in occupancy prior to check out time on the Closing Date; provided, however, that the term “guest ledger” shall not include any accounts receivable which have been or are to be paid by any means other than a credit card. For
purposes of this Agreement, “face value” shall have the following meaning for the guest ledger: the total of all credit card accounts receivable as shown on the records of the Hotel, less actual collection costs (i.e., fees retained by
credit card companies), less Buyer’s one-half (1⁄2) share of the Tray Ledger. 
  

 9 

 (iii) In addition, at Closing, Seller shall sell to Buyer in connection with the Hotel, and Buyer shall
acquire from Seller, and the Purchase Price shall be increased by the amount shown on the records of the Hotel for 99.92% of Seller’s non-credit card accounts receivable. 
  
 (iv) At Closing, Seller shall be credited and Buyer shall be charged with, and the Purchase Price increased by, prepaid
expenses, including without limitation real estate and personal property taxes, advertising expenses, trade association dues and trade subscriptions. 
  
 (v) All deposits made for utilities, maintenance or service contracts, equipment leases, licenses, or otherwise, shall be the property of Seller. In this
regard, Buyer shall, on the Closing Date, assume such deposits and shall pay Seller at the Closing the amount of said deposits. 
  
 (vi) All cash on hand in house banks (including the general manager’s petty cash fund) on the morning of the Closing Date shall become the property
of Buyer and the amount thereof shall be credited to Seller at the Closing. 
  
 (vii) All existing bank accounts of Seller shall be retained by Seller and closed out by Seller in due course, and Buyer shall open and fund its own bank accounts, except that any reserve accounts maintained by Hotel
Manager pursuant to the terms the Hotel Management Agreement shall be transferred to Buyer and Seller shall receive a credit at the Closing equal to the balance thereof from Buyer. 
  
 (viii) If, pursuant to the terms of any Contract or Equipment Lease listed on the Required Third Party Consent
Schedule, the required third-party consent cannot be obtained and Seller exercises its buy out option, Seller shall be credited and Buyer shall be charged such buy out amount (subject to the maximum buy out amounts set forth on the Required
Third Party Consent Schedule) and the underlying Property shall be transferred to Buyer free and clear of the lien of such Contract or Equipment Lease. 
  
 (g) Re-Proration. If accurate allocations cannot be made at Closing because current bills are not obtainable (as, for example, in the case of
utility bills) or appeals are pending, the parties shall allocate such revenue or expenses at Closing on the best available information, subject to adjustment upon receipt of the final bill or other evidence of the applicable revenue or expense. The
obligation to make the adjustment shall survive Closing. Any revenue received or expense incurred by Seller or Buyer with respect to the Property after the date of Closing shall be promptly allocated in the manner described herein and the parties
shall promptly pay or reimburse any amount due. The proration provisions of this Agreement shall survive Closing for a period of twelve (12) months. 
  
 (h) Safe and Baggage. 
  
 (i) On the Closing Date, Seller shall cause the delivery to Buyer of all of Seller’s keys to the safe(s) in the Hotel. On the Closing Date, Seller
shall give written notices to those persons who have deposited items in such safe(s), advising them of the transfer to Buyer 
  

 10 

 
and requesting the removal or verification of their contents in the safe. All such removals or verifications on the Closing Date shall be under the
supervision of Seller’s and Buyer’s respective representatives. All contents that are to remain in the safe shall be recorded. Buyer and Seller agree that as to items belonging to guests who have not responded to such written notice by so
removing or verifying their safe contents by the end of the Closing Date an independent, bonded third party shall be engaged to drill the relevant safe boxes and inventory the contents thereof with such inventory being binding on the parties hereto
and the cost of such third party being split by Seller and Buyer. Any such contents so verified or recorded and thereafter remaining in the hands of Buyer shall be the responsibility of Buyer and Buyer agrees to indemnify and save and hold Seller
harmless from and against any claim arising out of or with respect to the contents listed in the inventory. 
  
 (ii) On the Closing Date, representatives of Buyer and Seller shall take an inventory of all baggage, valises and trunks checked or left in the care of
Seller, including all items in the Hotel lost and found. From and after the Closing Date, Buyer shall be responsible for all baggage and other items listed in said inventory and Buyer agrees to indemnify and save and hold Seller harmless from and
against any claim arising out of or with respect to the baggage listed in the inventory. Seller shall remain liable for any negligence or misfeasance with respect to such baggage which occurred prior to the Closing Date. 
  
 (iii) The provisions of this Section 4(h) shall survive Closing. 

 
 5. Conditions to Closing. 
  
 (a) Buyer’s Obligation. The obligation of Buyer to purchase and
pay for the Property and assume the Assumed Liabilities is subject to the satisfaction (or waiver by Buyer) as of the Closing Date of the following conditions: 
  

(i) The representations and warranties of Seller made in this Agreement shall be true and correct in all material respects as of the date hereof and,
except to the extent of changes or developments expressly contemplated by the terms of this Agreement, on and as of the Closing Date, as though made on and as of the Closing Date, except to the extent of changes caused by the transactions expressly
contemplated hereby and except for representations and warranties that speak as of a specific date or time (which need only be true and correct as of such date or time), and Seller shall have performed or complied with all obligations and covenants
required by this Agreement to be performed or complied with by Seller by the time of the Closing, except for breaches of obligations and covenants that, in the aggregate, would not have a material adverse effect on the Business taken as a whole or
Seller’s ability to perform hereunder and Seller shall have delivered to Buyer a certificate dated the Closing Date and signed by an officer of Seller confirming the foregoing. 
  
 (ii) No injunction or order of any court or administrative agency of competent jurisdiction shall be in effect as of the
Closing which restrains or prohibits the purchase and sale of the Property or the exercise by Buyer of control over the Property. 
  

 11 

 (iii) Those consents and approvals required from third parties as set forth on the Required Third
Party Consents Schedule attached hereto as Schedule 5(a)(iii) shall have been obtained except those consents relating to the assignment of Contracts if the failure to obtain such consent would not have a material adverse effect on the
Business taken as a whole. 
  
 (iv) Seller shall have delivered to
Buyer, or to the Title Company to be held in escrow, all of the items set forth in Section 4(c). 
  
 (v) Title Company shall be irrevocably committed to issue at Closing a policy of owner’s title insurance in conformance with the Title Commitment,
subject only to the Permitted Exceptions (conditioned upon payment of the premiums therefore and delivery of the documents specified herein). 
  
 (vi) As of the Closing Date, the liquor licenses or permits attached hereto as Schedule 5(a)(vi), or replacements thereof, shall be in full force
and effect. 
  
 (b) Seller’s Obligation. The
obligation of Seller to sell and deliver the Property or cause the Property to be sold and delivered to Buyer is subject to the satisfaction (or waiver by Seller) as of the Closing (or such earlier date as is set forth below) of the following
conditions: 
  
 (i) The representations and warranties of Buyer
made in Sections 8(a)(i), 8(a)(ii), 8(b), and 8(d) shall be true and correct in all material respects as of the date hereof and on and as of the Closing Date, as though made on and as of the Closing Date, except for representations and warranties
that speak as of a specific date or time (which need only be true and correct as of such date or time), and Buyer shall have performed or complied in all material respects with the obligations and covenants required by this Agreement to be performed
or complied with by Buyer by the time of the Closing; and Buyer shall have delivered to Seller a certificate dated the Closing Date and signed by an officer of Buyer confirming the foregoing. 
  
 (ii) No injunction or order of any court or administrative agency of
competent jurisdiction shall be in effect as of the Closing which restrains or prohibits the purchase and sale of the Property. 
  
 (iii) Those consents and approvals required from third parties as set forth on the Required Third Party Consents Schedule attached hereto as
Schedule 5(a)(iii) shall have been obtained. 
  
 (iv) Buyer
shall have delivered to Seller, or to the Title Company to be held in escrow, all of the items set forth in Section 4(b). 
  
 6. Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer as follows: 
  
 (a) Authority; No Conflicts. 
  
 (i) Seller is a limited partnership duly organized, validly existing and in
good standing under the laws of the State of Delaware and is duly qualified to do business and in good 
  

 12 

 
standing under the laws of the state in which the Hotel is located. Seller has all requisite power and authority to enter into this Agreement and to
consummate the transactions contemplated hereby. All limited partnership acts and other proceedings required to be taken by Seller to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly and properly taken. This Agreement has been duly executed and delivered by Seller. This Agreement constitutes a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms.

  
 (ii) Subject to the Required Third Party Consent
Schedule, the execution and delivery by Seller of this Agreement, and the consummation by Seller of the transactions contemplated hereby and compliance by Seller with the terms hereof, will not conflict with, or result in any violation of or
default under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a benefit under, or result in the creation of any lien, claim, encumbrance, security interest, option, charge or restriction of any
kind upon any of the Property under, or require any consent, authorization or approval under (A) any provision of the certificate of limited partnership or Agreement of Limited Partnership of Seller, (B) any Contract, Real Property Lease or
Equipment Lease (except that Seller makes no representation or warranty under this clause (B) with respect to any prohibitions on transfer or assignment which may be set forth in any Contract, Real Property Lease or Equipment Lease) or (C) any
material judgment, order or decree or any material statute, law, ordinance, rule or regulation applicable to the Business or the Property, other than any such conflicts, violations, defaults, rights or liens, claims, encumbrances, security
interests, options, charges or restrictions that, individually or in the aggregate, would not have a material adverse effect on the Business taken as a whole or on the ability of Seller to consummate the transactions contemplated hereby, and other
than any such consents, authorizations or approvals required solely by reason of Buyer’s participation in the transactions contemplated hereby. 
  
 (b) Title to Property. Seller has good and valid title to the Property, and on the Closing Date, except those items sold or otherwise disposed of
since the date hereof in the ordinary course of business consistent with past practices, and the Property shall be transferred to Buyer free and clear of all mortgages, liens, security interests or encumbrances of any nature whatsoever, except (i)
the Permitted Exceptions, (ii) such encumbrances as are disclosed on the Lien Schedule attached hereto as Schedule 6(b), (iii) mechanics’, materialmen’s, carriers’, workmen’s, repairmen’s or other like liens
arising or incurred in the ordinary course of business, (iv) liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business and (v) liens arising under
Equipment Leases; provided, that the Property shall be transferred to Buyer free and clear of the items identified in clause (iii) and, to the extent that Buyer does not assume the Contracts and Equipment Leases creating the liens identified in
clauses (iv) and (v), the items in clauses (iv) and (v). 
  
 (c)
Litigation; Decrees. The Litigation Schedule attached hereto as Schedule 6(c) sets forth a list, as of the date of this Agreement, of all pending lawsuits or claims relating exclusively to the Business with respect to which
Seller has received service of process, or as to which Seller has received a written notice if Seller reasonably believes such matter is not covered by Seller’s insurance, and which (i) involve a claim against Seller of, or which involve an
unspecified amount 
  

 13 

 
which could reasonably be expected to result in liability of, more than $100,000, (ii) seek any material injunctive relief which would affect Buyer’s
acquisition, ownership or operation of the Property or (iii) directly relate to the transactions contemplated by this Agreement. To Seller’s knowledge, there are no lawsuits or claims threatened against Seller that would materially adversely
affect (i) the financial condition or operations of Seller or the Property, (ii) the Seller’s ability to enter into and perform this Agreement or (iii) Seller’s title to the Property. 
  
 (d) Compliance with Applicable Laws. Except as set forth on the
Compliance Schedule attached hereto as Schedule 6(d), or as previously disclosed by Seller to Buyer in writing, since January 8, 1998, the date that Seller acquired the Hotel, Seller has not received any written communication from a
Governmental Authority that alleges that the Business is not in compliance, in all material respects, with all material federal, state or local laws, rules and regulations, except for any noncompliance which has been remedied or which, individually
or in the aggregate, would not have a material adverse effect on the Business taken as a whole. 
  
 (e) Taxes. All federal, state, local and other tax returns, reports and declarations of every nature required to be filed by or on behalf of Seller
(either separately or as part of a consolidated group) prior to the Closing Date with respect to the Business have been timely filed (subject to any extensions that may be permitted by law) and such returns, reports and declarations as so filed are
complete and accurate and disclose all taxes required to be paid for the periods covered thereby, except for any such failures to file and such errors which would not have a material adverse effect on the Business taken as a whole. All taxes and all
deficiency assessments, penalties and interest relating to any period ending prior to the Closing Date and due and payable prior to the Closing date with respect to the Business shall be paid by Seller as of or prior to the Closing Date; provided,
however, this shall not supercede provisions of Section 4(e) or Seller’s responsibility for Retained Liabilities. 
  
 (f) Bankruptcy. Seller is not the subject debtor under any federal, state or local bankruptcy or insolvency proceeding, or any other proceeding for
dissolution, liquidation or winding up of its assets, and no attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, or similar proceedings are pending or, to Seller’s Knowledge, threatened against
Seller, nor is Seller contemplating commencing any proceedings. 
  
 (g) Condemnation. To Seller’s Knowledge, there are no pending condemnation actions with respect to the Hotel and there is no threatened or contemplated condemnation action. 
  
 (h) Contracts. To Seller’s Knowledge, Schedule 1(b)(v)
identifies all Contracts materially affecting in any way the ownership and operation of the Hotel. Seller has provided or made available to Buyer copies of such Contracts. To Seller’s Knowledge, (i) all such Contracts are in full force and
effect, and (ii) there are no defaults or events that with notice or the passage of time, or both, would constitute a default by Seller under such Contract nor any other party thereto. 
  
 (i) Real Property Leases. To Seller’s Knowledge, Schedule 1(b)(vi) identifies all Real Property Leases
materially affecting in any way the ownership and operation of the Hotel. Seller has provided or made available to Buyer copies of such Real Property Leases. To Seller’s Knowledge, (i) all such Real Property Leases are in full force and effect,
and (ii) there are no defaults or events that with notice or the passage of time, or both, would constitute a default by Seller under such Real Property Leases nor any other party thereto. 
  

 14 

 (j) Equipment Leases. To Seller’s Knowledge, Schedule 1(b)(vii) identifies all
Equipment Leases materially affecting in any way the ownership and operation of the Hotel. Seller has provided or made available to Buyer copies of such Equipment Leases. To Seller’s Knowledge, (i) all such Equipment Leases are in full force
and effect, and (ii) there are no defaults or events that with notice or the passage of time, or both, would constitute a default by Seller under such Equipment Leases nor any other party thereto. 
  
 (k) Hotel Management Agreement. There are no existing management
agreements relating to the Property other than the Hotel Management Agreement. The Hotel Management Agreement is in full force and effect and there are no defaults or events that with notice or the passage of time, or both, would constitute a
default by Seller under the Hotel Management Agreement, nor to the knowledge of Seller, by Hotel Manager thereunder. 
  
 (l) Authorizations. Seller has not received any written notice, nor does Seller have knowledge of any defects or inadequacies in the Authorizations
currently held by Seller or Hotel Manager. 
  
 (m)
Employees. All employees employed at the Hotel are employees of the Hotel Manager. To Seller’s Knowledge, there are no (i) unions organized at the Hotel, no union organizing attempt, strikes, organized work stoppage or slow down, or any
other labor dispute pending with respect to any of employees at the Hotel, or (ii) collective bargaining or other labor agreements to which Seller or Hotel Manager or the Hotel is bound with respect to any employees employed by Hotel Manager with
regard to the Hotel. 
  
 (n) Environmental Matters. Seller
has provided to Buyer a correct and complete copy of the reports and materials described on Schedule 6(n) (collectively, “Environmental Reports”). Other than as set forth in the Environmental Reports: 
  
 (i) Seller has received no written notice of any actual or potential
violation of or failure to comply with any Environmental Laws with respect to the Hotel which remains uncorrected, or of any actual or threatened obligation to undertake or bear the cost of any environmental, health, or safety clean-up, removal,
containment, or other remediation under any Environmental Law with respect to the Hotel which remains unperformed. 
  
 (ii) To Seller’s Knowledge, there are no pending or, threatened actions, suits, governmental investigations or other legal proceedings arising under
or pursuant to any Environmental Laws, with respect to or affecting the Hotel. 
  
 (iii) To Seller’s Knowledge, other than (a) Hazardous Substances used in the ordinary course of maintaining and cleaning the Hotel in commercially reasonable amounts, and (b) Hazardous Substances used as fuels,
lubricants or otherwise in connection with vehicles, machinery and equipment located at the Hotel in commercially reasonable amounts, no Hazardous 
  

 15 

 
Substances are or have been present, produced, disposed of or stored on, in or about the Hotel and/or the Land. To Seller’s Knowledge, the Hazardous
Substances described in the foregoing clauses (a) and (b) are being stored, used and disposed of in compliance with all Environmental Laws. 
  
 (iv) To Seller’s Knowledge, there has been no release or threat of release of Hazardous Substances at or from the Hotel and/or the Land. 

 
 (o) Materiality. As used in this Section 6, “material adverse
effect” and “materially adversely affect” shall mean an adverse impact of $500,000 or more. 
  
 (p) Complete Copies. To Seller’s Knowledge, all of the instruments, documents, lists, schedules and items with respect to the Hotel which
Seller has delivered or made available, or will deliver or make available to Buyer pursuant to this Agreement are true, correct and complete copies of the originals. 
  
 (q) No Implied Representations. SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, BEYOND THOSE
EXPRESSLY MADE IN THIS SECTION 6, INCLUDING ANY IMPLIED REPRESENTATION OR WARRANTY AS TO THE CONDITION, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY OF THE PROPERTY, OR ANY OTHER MATTER, AND IT IS UNDERSTOOD THAT, EXCEPT
FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER CONTAINED IN THIS SECTION 6, BUYER TAKES THE PROPERTY ON AN “AS IS” AND “WHERE IS” BASIS. 
  
 7. Covenants of Seller. Between the Effective Date and the Closing Date, Seller covenants and agrees as follows: 
  
 (a) Access. Prior to the Closing, Seller shall grant to Buyer or
cause to be granted to Buyer and its representatives, employees, counsel and accountants reasonable access, during normal business hours and upon two (2) business days prior written notice, to Seller’s personnel, the Property, and the books and
records of Seller relating to the transition of the Business (“Due Diligence Documents”); provided, however, that such access does not unreasonably interfere with the normal operations of Seller or the Business; and
provided further, that all requests for access shall be directed to Edward Rohling at (214) 906-4261 or such other person as Seller may designate from time to time. Notwithstanding the foregoing, Buyer agrees that neither it nor its
employees, agents, representatives, advisors or consultants shall (i) do any invasive cutting, blasting or drilling tests without obtaining the prior written consent of Seller or (ii) approach, discuss the sale with, question or in any manner seek
information from any employee of the Hotel, other than as specifically set forth in this Section 7(a). Buyer shall indemnify, defend and hold the Seller Parties harmless against any and all Losses with respect thereto resulting from claims suffered
or incurred by the Seller Parties arising out of or with respect to Buyer’s or its representatives’, agents’ or employees’ exercise of Buyer’s rights under this Section 7(a). The foregoing indemnity by Buyer shall not apply
to any such losses, costs, damages, claims or liabilities that arise solely from the discovery of a preexisting condition of the Hotel; provided, however, the indemnity shall apply to any preexisting conditions to the extent they are worsened

  

 16 

 
or exacerbated by Buyer and/or any of Buyer’s agents or contractors. Notwithstanding any provision in this Agreement to the contrary, Buyer’s
obligations under this Section 7(a) shall survive the termination of this Agreement and the consummation of the transactions contemplated hereby. 
  
 (b) Ordinary Conduct. Except as expressly permitted by the terms of this Agreement, from the date hereof to the Closing, Seller will cause the
Business to be conducted in the ordinary course of business consistent with Seller’s past practices. 
  
 (c) Employees. In accordance with the Hotel Management Agreement, the Seller will be responsible for an amount equal to all employee compensation
(including accrued vacation leave) earned by the Hotel employees for the time period ending on the close of business on the Closing Date. From and after the Closing Date, Buyer shall be responsible for all amounts payable to or in connection with
the employees at the Hotel. 
  
 (d) Insurance. Seller shall
continue to maintain the insurance currently carried by Seller with respect to the Property and provide copies of such certificates of insurance to Buyer. 
  
 (e) Contracts, Real Property Leases and Equipment Leases. Subject to the Hotel Management Agreement, Seller shall not enter into, terminate, amend
or otherwise modify any Contract, Real Property Lease or Equipment Lease in any material respect unless (i) such Contract, Real Property Lease or Equipment Lease will not be binding on Buyer after Closing or is otherwise terminable by Buyer after
Closing on no more than thirty (30) days’ notice or (ii) any such terminated Contract, Real Property Lease or Equipment Lease is terminated as a result of the default or nonperformance of a party thereto other than Seller or Hotel Manager.
Nothing set forth herein shall restrict the right of Hotel Manager under the Hotel Management Agreement to enter into, terminate, amend or otherwise modify any Contract, Real Property Lease or Equipment Lease whether in Hotel Manager’s name or
Seller’s name, except that Seller shall not consent to or approve of the same (to the extent that Seller has the right under the Hotel Management Agreement to withhold such consent or approval) except in accordance with the requirements of this
Section 7(e). Seller shall use commercially reasonable efforts to cause the Hotel Manager to comply with the provisions of the Hotel Management Agreement that relate to this Section 7(e). 
  
 (f) Required Third Party Consents. Seller shall use its reasonable best efforts to obtain the required third party
consents set forth on Schedule 5(a)(iii) no later than sixty (60) days following the Effective Date at Seller’s sole cost and expense. 
  
 8. Representations and Warranties of Buyer. Buyer hereby represents and warrants to Seller as follows: 
  
 (a) Authority; No Conflicts. 
  
 (i) Buyer is a corporation duly organized, validly existing and in good
standing under the laws of the State of Maryland. Buyer has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. All corporate acts and 
  

 17 

 
other proceedings required to be taken by Buyer to authorize the execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby have been duly and properly taken. This Agreement has been duly executed and delivered by Buyer. This Agreement constitutes a valid and binding obligation of Buyer, enforceable against Buyer in accordance with its
terms. 
  
 (ii) The execution and delivery by Buyer of this
Agreement does not, and the consummation by Buyer of the transactions contemplated hereby and compliance by Buyer with the terms hereof will not conflict with, or result in any violation of or default under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to loss of a benefit under, or result in the creation of any lien, claim, encumbrance, security interest, option, charge or restriction of any kind upon any of the properties or assets of Buyer
under, or require any consent, authorization or approval under (A) any provision of the organizational documents of Buyer, (B) any material note, bond, mortgage, indenture, deed of trust, license, lease, contract, commitment, agreement or
arrangement to which Buyer is a party or by which any of its properties or assets are bound or (C) any material judgment, order or decree, or any material statute, law, ordinance, rule or regulation applicable to Buyer or its property or assets.

  
 (b) Actions and Proceedings, etc. There are no (i)
outstanding judgments, orders, writs, injunctions or decrees of any court, governmental agency or arbitration tribunal against Buyer which have or could have a material adverse effect on the ability of Buyer to consummate the transactions
contemplated hereby or (ii) actions, suits, claims or legal, administrative or arbitration proceedings or investigations pending or, to the knowledge of Buyer, threatened against Buyer, which have or could have a material adverse effect on the
ability of Buyer to consummate the transactions contemplated hereby. 
  
 (c) Investigation; Financial. 
  
 (i) Buyer and
its affiliates, specifically including its controlling owners, are sophisticated investors in the hotel ownership and management businesses. Buyer has investigated the Business and understands the nature of historical operating results, risks and
opportunities inherent in the Business. 
  
 (ii) The Inspection
Period shall afford Buyer adequate opportunity to inspect the Property and to investigate its physical characteristics and conditions, and Buyer agrees that Buyer’s failure to terminate this Agreement prior to the expiration of the Inspection
Period shall be deemed Buyer’s waiver of any and all objections to the physical characteristics and conditions of the Property which would be disclosed by such inspection, except to the extent of Seller’s representations and warranties as
set forth herein and any changes that may arise after the Inspection Period. Neither Seller nor any of its employees, agents or representatives has made any representations, warranties or agreements to or with Buyer on behalf of Seller as to any
matters concerning the Property, the present use thereof, or the suitability of Buyer’s intended use of the Property, except for the representations, warranties and agreements contained in Section 6 of this Agreement. 
  

 18 

 (iii) The waiver of objections and disclaimer of representations and warranties contained in Section
8(c)(ii) includes topography, climate, air, water rights, utilities, present and future zoning, soil, subsoil, existence of hazardous waste or similar substances, purpose to which the Property is suited, drainage or access to public roads. Buyer
further acknowledges and agrees that the Property is to be purchased, conveyed and accepted by Buyer in its present condition “AS-IS” and “WHERE IS”, as provided in Section 6(q) of this Agreement, and that no patent or latent
physical condition of the Property, whether or not known or discovered, shall affect the rights of either party hereto. Buyer has adequate expertise and experience to investigate and acquire any necessary knowledge of operative or imposed
governmental laws and regulations (including, but not limited to, zoning, environmental, including specifically the regulations of the Environmental Protection Agency, and land use laws and regulations) to which the Property may be subject, and
shall base its decision whether or not to acquire the Property in part on the basis of its review and determination of the application and effect of such laws and regulations. Except for those representations contained in Section 6 of this
Agreement, Buyer has neither received nor relied upon any representations concerning such laws and regulations made by Seller, Seller’s employees, agents, or any person acting under or on behalf of Seller. Any agreements, warranties or
representations not expressly contained in this Agreement shall in no way bind Seller. 
  
 (iv) The waivers and releases by Buyer herein contained shall survive the Closing. 
  
 (d) Availability of Funds. Buyer has cash available, or irrevocable commitments from financial institutions (true and correct copies of which have
been delivered to Seller), to enable it to consummate the transactions contemplated by this Agreement. Buyer is prepared to, and has the financial capability to, satisfy its obligations under the Assumed Liabilities. 
  
 (e) No Knowledge of Misrepresentation or Omissions. Buyer has no
knowledge that the representations and warranties of Seller in this Agreement and the Schedules hereto are not true and correct in all material respects and Buyer has no knowledge of any material errors in, or material omissions from, the Schedules
to this Agreement. 
  
 (f) No Additional Representations.
Buyer acknowledges that neither Seller nor any other person or entity has made any representation or warranty, express or implied, as to the accuracy or completeness of any information regarding the Property, the Assumed Liabilities, or the
Business, except as expressly set forth in this Agreement or the Schedules hereto, and Buyer further agrees that neither Seller nor any other person or entity will have or be subject to any liability to Buyer or any other person resulting from the
distribution to Buyer, or Buyer’s use of, any such information. 
  
 9.
Covenants of Buyer. Buyer covenants as follows: 
  
 (a)
Notification. Prior to the Closing, Buyer shall promptly notify Seller if Buyer obtains knowledge that the representations and warranties of Seller in this Agreement and the Schedules hereto are not true and correct in all material respects,
or if Buyer obtains knowledge of any material errors in, or omissions from, the Schedules to this Agreement. 
  

 19 

 (b) Employees. Buyer acknowledges that all employees at the Hotel are, and subject to changes made
in the ordinary course of business shall continue through the Closing to be, employees of the Hotel Manager pursuant to the Hotel Management Agreement (each, a “Continuing Employee”). Except as may occur in the ordinary course of
business, Buyer acknowledges that the Seller will take no action to terminate the employment of any person employed by the Hotel Manager in connection with the Business prior to or simultaneously with the Closing Date. Nothing in this Section 9(b)
shall obligate Buyer to cause Hotel Manager to continue to employ any Continuing Employee for any period of time. However, Buyer has no plans to carry out a plant closing or mass layoff as those terms are defined by the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. Sections 2101 et seq. (the “WARN Act”) within 60 days after Closing. Buyer assumes full responsibility for providing any notices required by the WARN Act as a result of the impact of
this transaction on employees of the Hotel whether the obligation to give such notice arises before or after Closing. Buyer and its successors shall indemnify, defend and hold the Seller Parties harmless from and against any Losses imposed or
incurred by the Seller, directly or indirectly, arising out of, resulting from or relating to any failure to give any notice required by the WARN Act as a result of the impact of this transaction on employees of the Seller and/or Hotel Manager. The
provisions of this Section 9(b) shall survive the Closing. 
  
 (c)
Liquor License. Buyer hereby acknowledges and agrees that it is Buyer’s sole responsibility to obtain the Authorizations, including any liquor license or permit, required to permit Buyer to acquire the alcoholic beverage inventory from
Seller and sell the same inventory in connection with the operation of the Hotel; provided, however, Seller shall cooperate in the transfer to Buyer of any existing liquor licenses or permits so long as such cooperation does not result in any
additional cost to Seller. Buyer agrees that Buyer shall diligently pursue the issuance of any such Authorizations by the appropriate Governmental Authorities; provided, however, the issuance of such Authorizations shall not be a condition to
Closing. 
  
 10. Mutual Covenants. Seller and Buyer covenant and agree as
follows: 
  
 (a) Confidentiality. Buyer and Seller each
agree that it shall not directly or indirectly disclose any Confidential Information concerning the Property, the other party, the other party’s assets or the transaction contemplated herein to any person except that such matters may be
disclosed (a) to such party’s directors, officers, partners, and employees; (b) to such party’s legal counsel, accountants, engineers, architects, financial advisors, potential lenders, permitted assignees, and similar professionals and
consultants to the extent such party deems it reasonably necessary or appropriate in connection with the evaluation of the transaction contemplated herein; and (c) by Seller to Hotel Manager or to third parties having an ownership interest in or
relationship with the Property (such as existing mortgagees and equipment lessors) to whom disclosure is necessary or desirable in order to facilitate the consummation of the transaction contemplated herein. For the purpose of this Section 10(a),
the term “Confidential Information” shall mean information which is or becomes known to a party or its respective affiliates or to their employees, former employees, consultants or others in a confidential relationship with such
party, including, without limitation, pursuant to the terms of this Agreement, and which relates to the Property, the transaction contemplated herein or the business of either party; provided, however, that Confidential Information shall not include
(i) information 
  

 20 

 
which is or becomes generally available to the public other than through a violation of law or obligation hereunder, (ii) information which, in the opinion
of counsel to either party, such party is required by law, court order, governmental order or decree to disclose, except that the other party may at its own expense appeal such court order, (iii) information which, whether prior or subsequent to
execution of this Agreement, was developed by such party on its own or lawfully obtained by such party, independent from the proprietary information made available to such party hereunder, and (iv) information which was subsequently made available
to such party by a third party who, in making such disclosure, was not violating the law or any obligation under this Agreement or any other confidentiality agreement to which it is a party. The provisions of this Section 10(a) shall survive the
Closing or any expiration or termination of this Agreement. 
  
 (b) Consents. The parties acknowledge that certain consents to the transactions contemplated by this Agreement may be required from Seller’s Lender (for the release of its lien) and such consent has not been obtained. Seller
shall use reasonable best efforts to obtain such consent from Seller’s Lender. As it relates to Buyer, “reasonable best efforts” shall include Buyer providing financial information reasonably requested by third parties to such
agreements and/or bonds or other forms of security for the obligations of Buyer under the Hotel Management Agreement if required by Hotel Manager as a condition of its consent to the assignment or transfer to Buyer. 
  
 (c) Publicity. Seller and Buyer agree that, from the date hereof
through the Closing Date, no public release or announcement concerning the transactions contemplated hereby shall be issued or made by any party without the prior consent of the other party (which consent shall not be unreasonably withheld), except
(i) such release or announcement as may be required by law or the rules or regulations of any United States securities exchange, in which case the party required to make the release or announcement shall allow the other party reasonable time to
comment on such release or announcement in advance of such issuance and (ii) that Seller may make such an announcement to its employees. Notwithstanding the foregoing, Buyer and Seller shall cooperate to prepare a joint press release to be issued on
the Closing Date. 
  
 (d) Further Assurances. From time to
time, as and when requested by any party hereto, the other party hereto shall execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions, as
such other party may reasonably deem necessary or desirable to consummate the transactions contemplated by this Agreement. 
  
 11. Damage Or Destruction Of The Property; Condemnation. 
  
 (a) Damage or Destruction of the Property. 
  
 (i) Seller shall give Buyer prompt notice of any fire or other casualty occurring prior to the Closing that affects the Property of which Seller becomes
aware, together with Seller’s reasonable estimate of the cost of: (a) the amount of insurance proceeds that will be available under Seller’s policies of insurance with respect thereto; and (b) the cost to repair or restore such damage or
destruction. If, between the Effective Date and the Closing Date, the Property is Substantially Damaged or Destroyed, either party may elect in writing, within five (5) 
  

 21 

 
days after receipt by Buyer of notice from Seller of such damage or destruction, accompanied by information regarding the amount and payment of insurance, to
terminate this Agreement. If neither party notifies the other of its election to terminate this Agreement as set forth in the preceding sentence, both parties will be deemed to have elected to proceed with the purchase and sale of the Property
without regard to such damage or destruction. In the event that Buyer and Seller elect to proceed with the purchase and sale of the Property, Seller shall have no obligation to repair any such damage or destruction, nor shall the Purchase Price be
adjusted. “Substantially Damaged or Destroyed” shall mean damage or destruction the repair or replacement of which equals or exceeds 25% of the Purchase Price for the Property as determined by a licensed general contractor approved
by Buyer and Seller. If prior to the Closing Date, the Property sustains nonmaterial damage, this Agreement shall remain in full force and effect and Seller shall assign its rights to insurance proceeds, if any, as provided for in Section 11(a)(iii)
below. 
  
 (ii) If either party elects to terminate this Agreement
as provided in this Section 11(a) by notifying the other party of such election in writing, this Agreement shall be of no further force and effect subject to Section 15(d), and the Deposit, together with interest, shall be returned to Buyer.

  
 (iii) If Buyer elects, or is required by this Section 11(a),
to purchase the Property despite such damage or destruction, Seller shall assign its rights to, and Buyer shall be entitled to receive at or after Closing, as applicable, any insurance proceeds, including but not limited to rent insurance proceeds
applicable to the period after Closing, (with any accrued interest thereon), and Buyer shall receive a credit at Closing equal to the applicable deductible under the insurance policy. 
  
 (b) Condemnation. If, prior to Closing, all or a Substantial Part of the Property is subject to a proposed taking by
any public authority, Seller shall promptly notify Buyer of such proposed taking and either party may terminate this Agreement by written notice to other party within fifteen (15) days after written notice thereof. If either party so elects to
terminate this Agreement, this Agreement shall be of no further force and effect subject to Section 15(d). If neither party terminates this Agreement, or if the taking is as to a non-Substantial Part of the Land, Buyer shall accept title to the
Property subject to the taking without a reduction in the Purchase Price and shall receive at Closing an assignment of all of Seller’s rights to any condemnation award. A “Substantial Part” of the Property for purposes of this
Section 11(b) shall mean a portion that would reduce the fair market value of the Property by 25% or more, as determined by a licensed appraiser approved by Seller and Buyer. 
  
 12. Indemnification. 
  
 (a) Indemnification by Seller. Seller shall indemnify the Buyer Parties against and hold them harmless from any loss, liability, damage and expense
or action or claim (including reasonable legal fees and expenses) (“Losses”) suffered or incurred by any such Buyer Party to the extent arising from (i) any breach of any representation or warranty of Seller contained in this
Agreement or the other agreements contemplated hereby which survives the Closing, (ii) any breach of any covenant of Seller contained in this Agreement or the other agreements 
  

 22 

 
contemplated hereby, and (iii) any matter relating to the use, maintenance, operation or construction of the Property occurring prior to the Closing,
including without limitation, actions or claims relating to damage to property or injury or death of any person during the period of Seller’s ownership of the Property or any claims for any debts or obligations occurring on or about or in
connection with the operation of the Property (other than the Assumed Liabilities). Seller’s liability under this Section 12(a) shall not exceed in the aggregate, the amount of One Million Dollars, unless such liability is a Retained Liability
or such liability is the result of fraud on the part of Seller, in either of which cases no cap shall apply and no amounts expended in connection with such amounts shall apply to such cap. 
  
 (b) Exclusive Remedy. Except as otherwise expressly provided in
Section 25 hereof, each party hereto acknowledges and agrees that, from and after the Closing, its sole and exclusive remedy, with respect to any and all claims relating this Agreement and the other agreements contemplated hereby shall be pursuant
to the indemnification provisions set forth in this Section 12. Buyer further acknowledges and agrees that other than the representations and warranties of Seller specifically contained in this Agreement, there are no representations or warranties
of Seller or its representatives or any other person or entity either express or implied with respect to the Business, and the Property. 
  
 (c) Indemnification by Buyer. Buyer shall indemnify the Seller Parties against and hold them harmless from any Losses suffered or incurred by any
such Seller Party to the extent arising from (i) any breach of any representation or warranty of Buyer contained in this Agreement or the other agreements contemplated hereby which survives the Closing, (ii) any breach of any covenant of Buyer
contained in this Agreement or the other agreements contemplated hereby, and (iii) any matter relating to the use, maintenance, operation or construction of the Property occurring after the Closing, including without limitation, actions or claims
relating to damage to property or injury or death of any person during the period of Seller’s ownership of the Property or any claims for any debts or obligations occurring on or about or in connection with the operation of the Property (other
than the Retained Liabilities). 
  
 (d) Losses Net of
Insurance. The amount of any and all Losses under this Section 12 shall be determined net of any amounts recovered or recoverable by the Indemnified Party under insurance policies with respect to such Losses. 
  
 (e) Termination of Indemnification. The obligations to indemnify and
hold harmless a party hereto, pursuant to Sections 12(a)(i) and 12(c)(i) hereof, shall terminate when the applicable representation or warranty terminates pursuant to Section 16 hereof; provided, however, that such obligations to indemnify and hold
harmless shall not terminate with respect to any item as to which the person to be indemnified or the related party thereto shall have, prior to the expiration of the applicable period, previously made a claim by delivering a written notice (stating
in reasonable detail the nature of, and factual and legal basis for, any such claim for indemnification, and the provisions of this Agreement upon which such claim for indemnification is made) to the indemnifying party. The obligation to indemnify
and hold harmless a party hereto pursuant to the other clauses of Sections 12(a) and 12(c) hereof shall not terminate. 
  

 23 

 (f) Procedures Relating to Indemnification. 
  
 (i) In order for a party (the “Indemnified Party”) to be
entitled to any indemnification provided for under this Agreement in respect of, arising out of or involving a claim or demand made by any person, firm, Governmental Authority or corporation against the Indemnified Party (a “Third Party
Claim”), such Indemnified Party must notify the indemnifying party in writing, and in reasonable detail, of the Third Party Claim as promptly as reasonably possible after receipt by such Indemnified Party of notice of the Third Party Claim;
provided, however, that failure to give such notification on a timely basis shall not affect the indemnification provided hereunder except to the extent the indemnifying party shall have been actually prejudiced as a result of such
failure. Thereafter, the Indemnified Party shall deliver to the indemnifying party, within five business days after the Indemnified Party’s receipt thereof, copies of all notices and documents (including court papers) received by the
Indemnified Party relating to the Third Party Claim. 
  
 (ii) If a
Third Party Claim is made against an Indemnified Party, the indemnifying party shall be entitled to participate in the defense thereof and, if it so chooses and acknowledges its obligation to indemnify the Indemnified Party therefore, to assume the
defense thereof with counsel selected by the indemnifying party and reasonably satisfactory to the Indemnified Party. Notwithstanding any acknowledgment made pursuant to the immediately preceding sentence, the indemnifying party shall continue to be
entitled to assert any limitation on its indemnification responsibility contained in the provisos to Section 12(a) or Section 12(c) hereof, as the case may be. Should the indemnifying party so elect to assume the defense of a Third Party Claim, the
indemnifying party shall not be liable to the Indemnified Party for legal expenses subsequently incurred by the Indemnified Party in connection with the defense thereof. If the indemnifying party assumes such defense, the Indemnified Party shall
have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the indemnifying party, it being understood, however, that the indemnifying party shall control such defense. The
indemnifying party shall be liable for the fees and expenses of counsel employed by the Indemnified Party for any period during which the indemnifying party has not assumed the defense thereof. If the indemnifying party chooses to defend any Third
Party Claim, all the parties hereto shall cooperate in the defense or prosecution of such Third Party Claim. Such cooperation shall include the retention and (upon the indemnifying party’s request) the provision to the indemnifying, party of
records and information which are reasonably relevant to such Third Party Claim, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Whether or not the
indemnifying party shall have assumed the defense of a Third Party Claim, the Indemnified Party shall not admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the indemnifying party’s prior
written consent (which consent shall not be unreasonably withheld). 
  
 13.
Assignment. Buyer may assign its rights and interest in and to this Agreement to a third party upon written notice to Seller; provided, however, notwithstanding such assignment, Buyer shall remain liable to Seller for its obligations
hereunder. 
  

 24 

 14. No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto, their permitted
assigns, and the Seller Parties and the Buyer Parties where specifically referenced, and nothing herein express or implied shall give or be construed to give to any person or entity, other than the parties hereto, such permitted assigns, the Seller
Parties and the Buyer Parties, any legal or equitable rights hereunder. 
  
 15.
Termination. 
  
 (a) Buyer’s Termination
Rights. If Seller defaults in its obligations to proceed to Closing in accordance with this Agreement, or if any of the conditions set forth in Section 5(a) is not satisfied as a result of a breach by Seller and Buyer elects not to proceed to
Closing, then Buyer shall be entitled, as its sole remedy to pursue any or all of the following remedies: (a) specific performance of this Agreement, provided that any action for specific performance must be initiated no later than one hundred
twenty (120) days after the later of Buyer’s receipt of knowledge of such default by Seller or the election by Buyer not to proceed to Closing, as the case may be, (b) terminate this Agreement and require the return of the Deposit, together
with all interest thereon, to Buyer, and (c) in the case of a willful and intentional default of Seller in its obligation to proceed to Closing, or a willful and intentional failure to satisfy any condition set forth in Section 5(a) and Buyer elects
not to proceed to Closing, recovery from Seller of the actual out-of-pocket damages incurred by Buyer in connection with the transactions contemplated by this Agreement (but not consequential, punitive or other damages), provided that in no event
shall the aggregate liability of Seller to Buyer under this clause (c) exceed Two Hundred Thousand Dollars ($200,000.00). Upon Seller providing such remedies to Buyer, neither Seller nor Buyer shall have any rights against or obligations to the
other arising out of this Agreement, except for obligations that expressly survive termination of this Agreement. Buyer hereby waives any other remedies, including without limitation any right to recover consequential, punitive or other damages.

  
 (b) Seller’s Termination Rights. If Buyer defaults
in its obligation to proceed to Closing in accordance with this Agreement or if any condition set forth in Section 5(b) is not satisfied as a result of a breach by Buyer, and Seller elects not to proceed to Closing, Seller shall have the right to
terminate this Agreement, in which event, Seller’s sole and exclusive right and remedy of Seller at law and equity, as full and complete liquidated damages, for any such default shall be to require that the Deposit, together with all interest
thereon, be paid to Seller. THE PARTIES HAVE AGREED THAT, IN THE EVENT OF A DEFAULT BY BUYER AS SPECIFIED ABOVE, SELLER’S ACTUAL DAMAGES WOULD BE EXTREMELY DIFFICULT OR IMPRACTICAL TO DETERMINE. THE PARTIES HAVE AGREED, AFTER NEGOTIATION AND
CONSIDERING ALL OF THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THAT THE AMOUNT OF THE DEPOSIT IS A REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER WOULD INCUR IN SUCH EVENT AND FURTHER, THAT SUCH DEPOSIT SHALL BE SELLER’S EXCLUSIVE
REMEDY AGAINST BUYER, AT LAW OR IN EQUITY, IN THE EVENT OF A DEFAULT SOLELY ON THE PART OF BUYER. ACCORDINGLY, IF THE SALE IS NOT CONSUMMATED AS A RESULT OF A DEFAULT BY BUYER HEREUNDER, THEN THE DEPOSIT SHALL PROMPTLY BE PAID BY THE TITLE COMPANY
TO SELLER AS LIQUIDATED DAMAGES AND NOT AS A PENALTY. EACH PARTY SPECIFICALLY 
  

 25 

 
CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT WAS
MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION. NOTWITHSTANDING THE FOREGOING, NOTHING SET FORTH ABOVE SHALL LIMIT SELLER’S RIGHTS TO SEPARATELY PURSUE ENFORCEMENT OF ANY OF BUYER’S INDEMNITIES SET FORTH HEREIN AND THE
AFOREMENTIONED LIQUIDATED DAMAGES AMOUNT SHALL NOT INCLUDE ANY COSTS THAT MAY BE PAYABLE TO SELLER PURSUANT TO THE PROVISIONS OF SECTION 35. 
  

	 Seller’s Initials  /S/  RK
	 	Buyer’s Initials  /s/  BDW

  
 (c) Notice of
Default. Neither party shall be deemed in default hereunder unless it fails to cure such alleged default within five (5) business days of receipt from the other party of written notice specifying the action(s) or omission(s) that constitute(s)
such alleged default; provided, however, such default and cure rights shall not apply to obligations set forth in Section 4 or the payment of money and shall not extend the Closing. 
  
 (d) Effect of Termination. If this Agreement is terminated and the transactions contemplated hereby are abandoned as
described in this Section 15 or pursuant to any other provision hereof, this Agreement shall become void and of no further force and effect, except for the provisions of (i) Section 7(a) hereof relating to Buyer’s obligation to indemnify Seller
as set forth therein, (ii) Section 10(a) hereof relating to the obligations of Buyer and Seller to keep confidential certain information and data obtained by them, (iii) Section 10(c) hereof relating to publicity, (iv) Section 18 relating to certain
expenses, (v) Section 25 hereof relating to finder’s fees and broker’s fees and (vii) this Section 15. Nothing in this Section 15 shall be deemed to release any party from any liability for any breach by such party of the terms and
provisions of this Agreement or to impair the right of any party to compel specific performance by another party of its obligations under this Agreement. 
  
 16. Survival of Representations. The representations and warranties in this Agreement and in any other document delivered in connection herewith shall survive the
Closing solely for purposes of Sections 12(a) and 12(c) hereof and shall terminate at the close of one year after the Closing Date. 
  
 17. Seller’s Knowledge. Whenever this Agreement refers to “Seller’s knowledge,” “the knowledge of Seller” or other similar phrases,
such phrases shall mean solely the actual knowledge (as opposed to “constructive” or “implied” knowledge) of Ricardo Koenigsberger, Edward Rohling and Randy Torres. In no event shall the knowledge of the Hotel Manager, or any
employee of the Hotel Manager, be imputed to the Seller, except that Messrs. Koenigsberger or Torres shall, within three (3) business days after the Effective Date, provide a copy of each of the representations and warranties contained in this
Agreement to the general manager, chief engineer and comptroller of the Hotel Manager and request in writing, with a copy to Buyer, that such general manager, chief engineer and comptroller review such representations and warranties and advise
Messrs. Koenigsberger or Torres in writing of any circumstances that would breach or render any such representations or warranties untrue. Seller shall, not later than five (5) days 
  

 26 

 prior to the expiration of the Inspection Period, report to Buyer, in writing, the content of any responsive replies of
the general manager, chief engineer and comptroller and the same shall be deemed added to the Schedules hereunder. To the extent that, prior to the date that is five (5) days prior to the expiration of the Inspection Period, such general manager,
chief engineer or comptroller fails to respond in writing or to respond completely in writing, after Messrs. Koenigsberger or Torres making due inquiry, any knowledge possessed by such general manager, chief engineer or comptroller but not by
Messrs. Koenigsberger or Torres of which such general manager, chief engineer or comptroller did not inform Messrs. Koenigsberger or Torres shall not be within Seller’s Knowledge. 
  
 18. Expenses. Whether or not the transactions contemplated hereby are consummated, and except as otherwise specifically provided in
this Agreement, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs or expenses. 
  
 19. Amendment and Waiver. This Agreement may be amended, or any provision of this Agreement may be waived; provided
that any such amendment or waiver shall be binding upon Seller only if set forth in a writing executed by Seller and referring specifically to the provision alleged to have been amended or waived, and any such amendment or waiver shall be
binding upon Buyer only if set forth in a writing executed by Buyer and referring specifically to the provision alleged to have been amended or waived. No course of dealing between or among any persons having any interest in this Agreement shall be
deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any person under or by reason of this Agreement. 
  
 20. Notices. All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent by
telecopy, or sent, postage prepaid, by registered, certified or express mail, or reputable overnight courier service and shall be deemed given when so delivered by hand, or telecopied, or if mailed, three days after mailing (one business day in the
case of express mail or overnight courier service), as follows: 
  
 (i) if to Buyer, 
  
 Barcelo Crestline Corporation 
 8405 Greensboro Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: General Counsel 
 Facsimile Number: (571) 382-1757 
  

 27 

 with a copy to: 
  
 Barcelo Crestline Corporation 
 8405 Greensboro Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: Patrick Campbell 
 Facsimile Number: (571) 382-1757 
  
 (ii) if to Seller, 
  
 AP/APMC Savannah, L.P. 
 c/o Apollo Real Estate Advisors, L.P. 
 1301 Avenue of the Americas 
 38th
Floor 
 New York, New York 10019 
 Attn: Rick Koenigsberger 
 Facsimile Number: (212) 515-3282 
  
 Apollo Advisors, L.P. 
 1999 Avenue of the Stars 
 Suite 1900 
 Los Angeles, California 90067 
 Attn: Michael D. Weiner, Esq. 
 Facsimile Number: (310) 201-4146 
  
 Apollo Real Estate Advisors, L.P. 
 2 Manhattanville Road 
 Purchase, New York 10577 
 Attn: Ronald Solotruk 
 Facsimile Number: (914) 694-1727 
  
 with a copy to: 
  
 Brownstein
Hyatt & Farber, P.C. 
 410 17th Street, 22nd Floor 
 Denver, Colorado 80202 
 Attn: Patricia L. Gruber, Esq. 
 Facsimile Number: (303) 223-1111 
  
 21. Interpretation. The headings and captions contained in this Agreement, in any
Exhibit or Schedule hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit and not
otherwise defined therein shall have the meanings set forth in this Agreement. The use of the word “including” herein shall mean “including without limitation.” 
  

 28 

 22. No Strict Construction. Notwithstanding the fact that this Agreement has been drafted or prepared by one of
the parties, Buyer and Seller confirm that both they and their respective counsel have reviewed, negotiated and adopted this Agreement as the joint agreement and understanding of the parties, and the language used in this Agreement shall be deemed
to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any person. 
  
 23. Counterparts. This Agreement may be executed in one or more counterparts (including by means of telecopied signature pages), all of which shall be considered
one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to the other party. 
  
 24. Entire Agreement. This Agreement and the other agreements referred to herein contain the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter. 
  
 25. Brokerage. Buyer has not used a broker or finder in connection with the transactions contemplated by this Agreement, and there
are no claims for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement by or an behalf of Buyer. Other than Sonnenblick Goldman
Company, Seller has not retained any broker or finder or incurred any liability or obligation for any brokerage fees, commissions or finder’s fees with respect to this Agreement or the transactions contemplated hereby. Upon Closing, Seller
shall pay to Sonnenblick Goldman Company any brokerage commissions due to Sonnenblick Goldman Company in connection with this transaction. Notwithstanding anything to the contrary in Section 12 hereof, Buyer shall indemnify and hold Seller harmless
for any breach of its representation in this Section 25, and Seller shall indemnify and hold Buyer harmless for any breach of its representation in this Section 25 . 
  
 26. Disclaimer Regarding Projections. In connection with Buyer’s investigation of the Business, Buyer has received from or on
behalf of Seller certain projections, including projected statements of operating revenues of the Business for the current fiscal year and future fiscal years and certain business plan information for the current fiscal year and future fiscal years.
Buyer acknowledges that there are uncertainties inherent in attempting to make such estimates, projections and other forecasts and plans, that Buyer is familiar with such uncertainties, that Buyer is taking full responsibility for making its own
evaluation of the adequacy and accuracy of all estimates, projections and other forecasts and plans so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections and forecasts), and that Buyer shall have
no claim against Seller with respect thereto. Accordingly, Seller makes no representation or warranty with respect to such estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying such
estimates, projections and forecasts). 
  

 29 

 27. Schedules. The disclosures in the Schedules hereto are to be taken as relating to the representations and
warranties of Seller as a whole. The inclusion of information in the Schedules hereto shall not be construed as an admission that such information is material to the Property, the Business or Seller. In addition, matters reflected in the Schedules
are not necessarily limited to matters required by this Agreement to be reflected in such Schedules. Such additional matters are set forth for informational purposes only and do not necessarily include other matters of a similar nature. Prior to the
Closing, Seller shall have the right to supplement, modify or update the Schedules hereto to reflect changes in the ordinary course of the Business prior to the Closing; provided, however, that such supplements, modifications and updates shall not
be deemed effective for purposes of Section 5(a)(i) hereof; provided, however, that any such supplements, modifications or updates shall be subject to Buyer’s rights under Section 5(a)(i) hereof. 
  
 28. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be valid and effective under applicable law, but if any provision of this Agreement or the application of any such provision to any person or circumstance shall be held invalid, illegal or unenforceable in any
respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision hereof. 
  
 29. Bulk Sale Transfer Laws. Buyer hereby waives compliance by Seller with the provisions of any so-called bulk sale transfer laws of any jurisdiction in
connection with the sale of the Property. 
  
 30. Governing Law. This
Agreement shall be governed by and construed in accordance with the internal laws of the State of Georgia applicable to agreements made and to be performed entirely within such State, without regard to the conflicts of law principles of such State.

  
 31. Exhibits and Schedules. All Exhibits and Schedules annexed hereto
or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. 
  
 32. Recording. Neither this Agreement nor any notice or memorandum thereof shall be recorded in any real property records for any jurisdiction. Any such
recordation shall constitute a default under this Agreement by the recording party. 
  
 33. Time of the Essence. Time is of the essence in this Agreement and the transaction contemplated herein. 
  
 34. Calculation of Time Periods. In the calculation of any period of time provided for in this Agreement or by law, the day of the act or event from which such
period of time runs shall be excluded and the last day of such period shall be included. Notwithstanding the foregoing, if the expiration of any period or time for performance hereunder falls on a Saturday, Sunday, or legal holiday observed by the
Title Company, the expiration of such period or time for performance shall be extended to the next business day. 
  
 35. Arbitration. The parties hereby irrevocably and unconditionally agree that any dispute between them arising out of or relating in any way to this Agreement or
the other agreements contemplated hereby or the transactions arising hereunder or thereunder shall be settled exclusively by arbitration administered by the American Arbitration Association (“AAA”) in accordance with AAA’s
Commercial Arbitration Rules and the provisions of this Section. The 
  

 30 

 
place of arbitration shall be New York, New York, by three independent and impartial arbitrators, one of whom shall be appointed by Seller and one of whom
shall be appointed by Buyer. Notwithstanding anything to the contrary provided in Section 30 hereof, the arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Section 1 et seq. The fees and expenses of AAA and
the arbitrators shall be shared equally by the parties and advanced by them from time to time as required; provided, however, that at the conclusion of the arbitration, the arbitrators shall award costs and expenses (including the
costs of the arbitration previously advanced and the fees and expenses of attorneys, accountants and other experts) and interest to the prevailing party. Consistent with the expedited nature of arbitration, each party will, upon the written request
of the other party, promptly provide the other with copies of documents relevant to the issues raised by any claim or counterclaim or on which the producing party may rely in support of or in opposition to any claim or defense. Any dispute regarding
discovery, or the relevant or scope thereof, shall be determined by the arbitrator. All document discovery shall be completed within 15 days following the appointment of the arbitrator. At the request of a party, the arbitrator shall have the
discretion to order examination by deposition of witnesses to the extent the arbitrator deems such additional discovery relevant and appropriate. Depositions shall be limited to a maximum of two (2) per party and shall be held within 10 days of the
making of a request. Each deposition shall be limited to a maximum of four (4) hours duration. All objections are reserved for the arbitration hearing except for objections based on privilege or proprietary or Confidential Information. The
arbitrators shall render their award within 60 days of the submission of the dispute to arbitration; provided, that such limitation may be extended by the mutual agreement of the parties. The arbitrators shall not be empowered to award to either
party any consequential damages or lost profits in connection with any dispute between them arising out of or relating in any way to this Agreement or the other agreements contemplated hereby or the transactions arising hereunder or thereunder, and
each party hereby irrevocably waives any right to recover such damages. Notwithstanding anything to the contrary provided in this Section 35 and without prejudice to the above procedures, either party may apply to any court of competent jurisdiction
for temporary injunctive or other provisional judicial relief if such action is necessary to avoid irreparable damage or to preserve the status quo until such time as the arbitration panel is convened and available to hear such party’s request
for temporary relief. The award rendered by the arbitrators shall be final and not subject to judicial review, and judgment thereon may be entered in any court of competent jurisdiction. 
  
 36. Non-Solicitation. During the period from the Effective Date until the Closing Date or the earlier termination of this Agreement,
Seller shall not directly or indirectly make, accept, solicit, negotiate, entertain or otherwise pursue, or authorize any representative or affiliate of Seller to make, accept, solicit, negotiate, entertain or otherwise pursue, any offers for the
financing, or direct or indirect sale or other disposition of the Property or any portion thereof, other than the transactions contemplated under this Agreement. 
  
 37. Right to Audit. Any time after the Effective Date, Buyer may, at its sole cost and expense, engage a third-party certified public
accountant to perform audits of the historical financial statements of the Property for the years 2000 through and including August, 2003, which audits shall include all disclosures required under generally accepted accounting principles and
Securities and Exchange Commission regulations, specifically in accordance with Section 3.05 of Regulation S-X and all related rules and regulations. Seller shall, and shall use commercially 
  

 31 

 reasonable efforts to cause Hotel Manager to, cooperate in connection with the performance of such audit and shall
provide all information reasonably requested by such accountants. In connection with such audits, Seller shall provide the accountants performing such audits with appropriate representation letters in accordance with American Institute of Public
Accountants professional standards. 
  
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INTENTIONALLY LEFT BLANK] 
  

 32 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first
written above. 
  

	AP/APMC SAVANNAH, L.P.,
	 a Delaware limited partnership

		
	 By:
	 	 AP/APMC-GP, Inc.

		
	 By:
	 	  
 /s/  RICARDO KOENIGSBERGER

	 Name:
	 	 Ricardo Koenigsberger

	 Title:
	 	 Vice President

	
	BARCELÓ CRESTLINE CORPORATION
	 a Maryland corporation

		
	 By:
	 	  
 /s/  BRUCE D. WARDINSKI

	 Name:
	 	 Bruce D. Wardinski

	 Title:
	 	 President and CEO

  

 33 

 EXHIBIT A 
  

DEFINITIONS 
  
 “AAA” shall have the meaning set forth in Section 35 hereof. 
  
 “Additional Deposit” shall have the meaning set forth in Section 2(a) hereof. 
  
 “Agreement” shall have the meaning set forth in the Preamble hereof. 
  
 “Assumed Liabilities” shall have the meaning set forth in Section 1(c)(vii)
hereof. 
  
 “Authorizations” shall mean all licenses, permits,
permissions and approvals required by any Governmental Authority, with respect to the construction, ownership, operation, leasing, maintenance, or use of the Property or any part thereof, including all building permits, certificates of occupancy,
subdivision maps or plats, land sale registrations, conditional use permits, special use permits, environmental impact statements, and all other entitlements, used in or relating to the Hotel. 
  
 “Business” shall have the meaning set forth in Section 1(b) hereof.

  
 “Buyer” shall have the meaning set forth in the Preamble
hereof. 
  
 “Buyer Parties” shall mean Buyer, its affiliates and
each of their respective officers, directors, employees and agents. 
  
 “Closing” shall have the meaning set forth in Section 4(a) hereof. 
  
 “Closing Date” shall have the meaning set forth in Section 4(a) hereof. 
  
 “Confidential Information” shall have the meaning set forth in Section 10(a) hereof. 
  
 “Continuing Employee” shall have the meaning set forth in Section 9(b) hereof. 
  
 “Contracts” shall have the meaning set forth in Section 1(b)(v) hereof.

  
 “Deposit” shall have the meaning set forth in Section 2(a)
hereof. 
  
 “Dock Usage Agreement” shall mean that Dock Usage
Agreement and Utility Easement, dated as of February 2, 1998, by and between Seller and Merritt W. Dixon, III and H.M. Dunn, Jr. 
  
 “Due Diligence Documents” shall have the meaning set forth in Section 7(a). 
  
 “Environmental Laws” any and all statutes, laws, regulations and rules in effect on the Effective Date relating to the
protection of the environment or to human health, or regulating the manufacture, use or disposal of pollutants, contaminants or any other Hazardous Substances, including without limitation the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended from time to time (42 U.S.C. § 9601 et seq.). 
  

 A-1 

 “Effective Date” shall have the meaning set forth in the Preamble hereof. 
  
 “Environmental Reports” shall have the meaning set forth in Section 6(n)
hereof. 
  
 “Equipment Leases” shall have the meaning set forth
in Section 1(b)(vii) hereof. 
  
 “Existing Title Exceptions”
shall have the meaning set forth in Section 3(b)(i) hereof. 
  
 “Extension
Deposit” shall have the meaning set forth in Section 4(a) hereof. 
  
 “Excluded Matters” shall have the meaning set forth in Section 1(c) hereof. 
  
 “Governmental Authority” shall mean any federal, state, county, municipal or other government or any governmental or quasi-governmental agency, department, commission, board, bureau, officer or
instrumentality, foreign or domestic, or any of them, having jurisdiction over Seller, Buyer or the Property. 
  
 “Hazardous Substances” shall include, without limitation, any hazardous or toxic materials, substances or wastes, such as (A) any materials, substances or wastes which are toxic, ignitable, corrosive
or reactive and which are regulated by an local government authority, any agency of the state of Georgia or any agency of the United States government, (B) asbestos in any form, (C) any type of mold, (D) petroleum and petroleum based products, (E)
urea formaldehyde foam insulation, (F) polychlorinated biphenyls (PCBs), and (G) freon and other chlorofluorocarbons. 
  
 “Hotel” shall have the meaning set forth in Section 1(b)(ii) hereof. 
  
 “Hotel Management Agreement” shall mean that Management Agreement, dated May 8, 1979 between Hotel Manager and Waterfront
Hotel Company, a Georgia limited partnership, as supplemented by letter agreement dated November 24, 1980, Agreement dated April 8, 1981, letter agreement dated May 7, 1992, Second Amendment to Management Agreement dated December 21, 1993, each
between Hotel Manager and Waterfront, as assigned to Seller pursuant to Assignment and Assumption of Assumed Agreements dated January 6, 1998. 
  
 “Hotel Manager” shall mean Hyatt Corporation. 
  
 “Improvements” shall have the meaning set forth in Section 1(b)(ii) hereof. 
  
 “Indemnified Party” shall have the meaning set forth in Section 12(f)(i) hereof. 
  
 “Initial Deposit” shall have the meaning set forth in Section 2(a) hereof.

  
 “Inspection Period” shall have the meaning set forth in
Section 3(d) hereof. 
  
 “Intangible Personal Property” shall
have the meaning set forth in Section 1(b)(iv) hereof. 
  

 A-2 

 “Land” shall have the meaning set forth in Section 1(b)(i) hereof. 
  
 “Losses” shall have the meaning set forth in Section 12(a) hereof.

  
 “Objections” shall have the meaning set forth in Section 3(b)
hereof. 
  
 “Permitted Exceptions” shall have the meaning set
forth in Section 3(b) hereof. 
  
 “Personal Property” shall mean
collectively the Tangible Personal Property and the Intangible Personal Property. 
  
 “Property” shall have the meaning set forth in Section 1(b) hereof. 
  
 “Purchase Orders” shall have the meaning set forth in Section 1(b)(v) hereof. 
  
 “Purchase Price” shall have the meaning set forth in Section 2 hereof. 
  
 “Real Property Leases” shall have the meaning set forth in Section 1(b)(vi) hereof. 
  
 “Retained Liabilities” shall have the meaning set forth in Section 1(c)(vi)
hereof. 
  
 “Scheduled Closing Date” shall have the meaning set
forth in Section 4(a) hereof. 
  
 “Seller” shall have the meaning
set forth in the Preamble hereof. 
  
 “Seller Parties” shall
mean, collectively, Seller, Hotel Manager, and their affiliates and the officers, partners, directors, employees and agents of each of the foregoing. 
  
 “Seller’s Knowledge” shall have the meaning set forth in Section 17 hereof. 
  
 “Seller’s Lender” shall mean Norwest Bank Minnesota, National Association, a national banking association having an
address at c/o Lennar Partners, Inc., 760 N.W. 107th Avenue, Suite 400, Miami, Florida 33172, as trustee under those two certain Pooling and Servicing Agreements by and among Credit Suisse First Boston Mortgage Securities Corp. and Norwest Bank
Minnesota, National Association, among others, for the Credit Suisse First Boston Mortgage Securities Corp., the first dated as of June 12, 1998 for Commercial Mortgage Pass-Through Certificates, Series 1998-FL1, and the second dated as of November
11, 1998 for Commercial Mortgage Pass-Through Certificates, Series 1998-FL2, together with its successors and assigns. 
  
 “Seller’s Survey” shall have the meaning set forth in Section 3(a) hereof. 
  
 “Seller’s Title Policy” shall have the meaning set forth in Section 3(a) hereof. 
  
 “Substantial Part” shall have the meaning set forth in Section 11(b) hereof.

  
 “Substantially Damaged or Destroyed” shall have the meaning
set forth in Section 11(a)(i) hereof. 
  

 A-3 

 “Survey” shall have the meaning set forth in Section 3(a)(ii) hereof. 
  
 “Tangible Personal Property” shall have the meaning set forth in Section
1(b)(iii) hereof. 
  
 “Third Party Claim” shall have the meaning
set forth in Section 12(f)(i) hereof. 
  
 “Title Commitment”
shall have the meaning set forth in Section 3(a)(i) hereof. 
  
 “Title
Company” shall have the meaning set forth in Section 2(a) hereof. 
  
 “Title Documents” shall have the meaning set forth in Section 3(a)(i) hereof. 
  
 “Title Policy” shall have the meaning set forth in Section 3(a)(i) hereof. 
  
 “Tray Ledger” shall mean the final nights room revenue (revenue from rooms occupied as of 3:01 a.m. on the Closing Date (exclusive of food, beverage,
telephone and similar changes which shall be retained by Seller)), including any sales tax, room taxes or other taxes thereon. 
  
 “Warn Act” shall have the meaning set forth in Section 9(b) hereof. 
  

 A-4

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