Document:

tues-ex1027_104.htm

Exhibit 10.27

 

RESTRICTED STOCK AWARD AGREEMENT

(Performance Based)

 

Tuesday Morning Corporation
2014 Long-Term Incentive Plan

This Restricted Stock Award Agreement (this “Agreement”) is entered into between Tuesday Morning Corporation, a Delaware corporation (the “Company”), and ________________ (the “Participant”) effective as of ______________ (the “Date of Grant”), pursuant to the Tuesday Morning Corporation 2014 Long-Term Incentive Plan, as amended (the “Plan”), the terms of which are incorporated by reference herein in their entirety.  

Whereas, the Company desires to grant to the Participant the shares of common stock, par value $0.01 per share (“Common Stock”), as an inducement for the Participant’s continued and effective performance of services for the Company, subject to the terms and conditions of this Agreement; and

WHEREAS, the Participant desires to have the opportunity to hold the Common Stock subject to the terms and conditions of this Agreement;

Now, therefore, in consideration of the premises, mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

	
1.
	
Grant of Restricted Stock.  Effective as of the Date of Grant, the Company shall cause to be issued in the Participant’s name [TOTAL NUMBER OF SHARES THAT COULD VEST AT MAXIMUM PERFORMANCE] shares of Common Stock (the “Restricted Stock”), [TOTAL NUMBER OF SHARES THAT COULD VEST AT TARGET] shares of which are “Target Shares” for purposes of Exhibit A.  The Company shall electronically register the Restricted Stock, and any Retained Distributions issued with respect to the Restricted Stock, in the Participant’s name and note that such shares are Restricted Stock.  If certificates evidencing the Restricted Stock, or any Retained Distributions, are issued to the Participant during the Restricted Period, such certificates shall bear a restrictive legend, substantially as provided in Section 15.10 of the Plan, to the effect that ownership of such Restricted Stock (and any such Retained Distributions), and the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms, and conditions provided in the Plan and this Agreement.  The Participant shall have the right to vote the Restricted Stock awarded to the Participant and to receive and retain all regular cash dividends, and to exercise all other rights, powers and privileges of a holder of Common Stock, with respect to such Restricted Stock, with the exception that (a) the Participant shall not be entitled to delivery of a stock certificate or certificates representing such Restricted Stock until the Forfeiture Restrictions applicable thereto shall have expired and the Participant requests delivery of a certificate as described in Section 6.4(a) of the Plan, (b) the Company shall retain custody of all Retained Distributions made or declared 

 

		
with respect to the Restricted Stock (and such Retained Distributions shall be subject to the same restrictions, terms and conditions as are applicable to the Restricted Stock) until such time, if ever, as the Restricted Stock with respect to which such Retained Distributions shall have been made, paid, or declared shall have become vested, and such Retained Distributions shall not bear interest or be segregated in separate accounts and (c) the Participant may not sell, assign, transfer, pledge, exchange, encumber, or dispose of the Restricted Stock or any Retained Distributions during the Restricted Period.  Upon issuance, the certificates for the Restricted Stock shall be delivered to the Secretary of the Company or to such other depository as may be designated by the Committee as a depository for safekeeping until the forfeiture of such Restricted Stock occurs or the Forfeiture Restrictions lapse, together with stock powers or other written instruments or electronic agreements of assignment, each endorsed in blank, which will permit transfer to the Company of all or any portion of the Restricted Stock and any securities constituting Retained Distributions which shall be forfeited in accordance with the Plan and this Agreement.  In accepting the award of Restricted Stock set forth in this Agreement, the Participant accepts and agrees to be bound by all the terms and conditions of the Plan and this Agreement.

	
2.
	
Definitions.  For purposes of this Agreement, the following terms shall have the meanings indicated below:

	
 
	
(a)
	
“Cause” shall mean the occurrence of one of the following events: (i) commission of fraud, embezzlement, theft, felony or an act of dishonesty in the course of the Participant’s employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate, (ii) disclosure of trade secrets of the Company or an Affiliate, or (iii) violation of the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Participant is a party.

	
 
	
(b)
	
“Forfeiture Restrictions” shall mean any prohibitions and restrictions set forth herein with respect to the sale or other disposition of Restricted Stock issued to the Participant hereunder and the obligation to forfeit and surrender such Restricted Stock to the Company.

	
 
	
(c)
	
“Good Reason” shall mean (i) a material reduction by the Company of the Participant’s annual compensation without the Participant’s consent; (ii) a material breach by the Company of this Agreement that is not cured within thirty (30) days of written notice by the Participant to the Company; or (iii) without the Participant’s consent, the Company relocates its principal executive offices, or requires the Participant to have the Participant’s principal work location change, which results in the Participant’s principal work location being changed to a location in excess of fifty (50) miles from the location of the Company’s principal executive offices as of the date hereof.  The foregoing events shall not constitute Good Reason unless the Participant delivers to the Company a written notice specifying the circumstances giving rise to the alleged Good Reason within ninety (90) days after the Participant first learns of the existence of the circumstances giving rise to Good Reason; within thirty (30) days following delivery of such notice, the Company has 

 

	
 
		
failed to cure the circumstances giving rise to Good Reason; and the Participant resigns within sixty (60) days after the end of the cure period.

	
 
	
(d)
	
“Restricted Period” shall mean the period designated by the Committee during which Restricted Stock is subject to the Forfeiture Restrictions and may not be sold, assigned, transferred, pledged, or otherwise encumbered.

	
 
	
(e)
	
“Retained Distributions” shall mean any securities or other property (other than regular cash dividends) distributed by the Company in respect of the Restricted Stock during any Restricted Period.

Capitalized terms not otherwise defined in this Agreement shall have the meanings given to such terms in the Plan.

	
3.
	
Transfer Restrictions.  Except as otherwise authorized by the Committee, the Restricted Stock granted hereby may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by will or the applicable laws of descent and distribution) to the extent then subject to the Forfeiture Restrictions.  Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement shall be void and the Company shall not be bound thereby.  Further, the Restricted Stock granted hereby that is no longer subject to Forfeiture Restrictions may not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws.  The Participant also agrees (a) that the Company may refuse to cause the transfer of the Restricted Stock to be registered on the applicable stock transfer records if such proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of any applicable securities law and (b) that the Company may give related instructions to the transfer agent, if any, to stop registration of the transfer of the Restricted Stock.  The Restricted Stock is registered with the Securities and Exchange Commission under a Registration Statement on Form S-8.  A Prospectus describing the Plan and the Stock is available from the Company.

	
4.
	
Vesting.  The Restricted Stock that is granted hereby shall be subject to Forfeiture Restrictions.  The Forfeiture Restrictions shall lapse as to the Restricted Stock that is granted hereby in accordance with the provisions of subsections (a) through (e) of this Section 4.

	
 
	
(a)
	
Generally.  The Forfeiture Restrictions shall lapse as to the Restricted Stock that is granted hereby as provided in subsection (b), provided that the Participant has not incurred a Termination of Service prior to the applicable date provided in subsection (b).  If the Participant has incurred a Termination of Service before a date provided in subsection (b) then, except as otherwise specified in subsections (c) or (d) below, the Forfeiture Restrictions then applicable to any of the Restricted Stock shall not lapse and all of the Restricted Stock with respect to which Forfeiture Restrictions have not then lapsed shall be forfeited to the Company upon such Termination of Service.

 

	
 
	
(b)
	
Vesting Date and Criteria.  The Restricted Shares will vest, and the Forfeiture Restrictions will lapse, as specified herein and upon the satisfaction of the conditions contained in Exhibit A.

	
 
	
(c)
	
Death or Total and Permanent Disability.  Notwithstanding any provisions of Section 4 to the contrary, in the event the Participant’s Termination of Service is due to the Participant’s death or Total and Permanent Disability prior to a date provided in subsection (b), the Forfeiture Restrictions for all of the Restricted Stock with respect to which Forfeiture Restrictions have not then lapsed shall lapse on the date of such Termination of Service due to death or Total and Permanent Disability.

	
 
	
(d)
	
[Change in Control.  Notwithstanding any provisions of Section 4 to the contrary, in the event (i) a Change in Control occurs prior to the date of the Participant’s Termination of Service and (ii) the Participant incurs a Termination of Service during the two (2) year period commencing on the date that the Change in Control occurred, either (A) by the Company without Cause or (B) by the Participant for Good Reason, the Forfeiture Restrictions for all of the Restricted Stock with respect to which Forfeiture Restrictions have not then lapsed shall lapse upon the occurrence of such Change in Control.]

	
 
	
(e)
	
Forfeiture Upon Violation of Confidentiality/Nonsolicitation Provisions.  Notwithstanding anything to the contrary contained herein, in the event the Participant fails to comply with the confidentiality and non-solicitation provisions of Exhibit B, or the non-solicitation and/or confidentiality provisions contained in any written agreement by and between the Participant and the Company, then (i) the Forfeiture Restrictions shall not lapse, and any unvested  Restricted Stock shall be immediately forfeited to the Company as of the date of such violation, and (ii) any  Restricted Stock for which the Forfeiture Restrictions have lapsed, but that had not yet been delivered to the Participant shall  be immediately forfeited and this Agreement (other than the provisions of this subsection (e) and the provisions of Exhibit B) will be terminated on the date of such violation.

	
5.
	
Effect of Lapse of Restrictions.  Upon the lapse of the Forfeiture Restrictions with respect to the Restricted Stock granted hereby, if requested by the Participant as described in Section 6.4(a) of the Plan, the Company shall cause to be delivered to the Participant a stock certificate representing such Restricted Stock, and such Restricted Stock shall be transferable by the Participant (except to the extent that any proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of applicable securities law).

	
6.
	
Capital Adjustments and Reorganizations.  The existence of the Restricted Stock shall not affect in any way the right or power of the Company or its stockholders to make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding.

 

	
7.
	
Section 83(b) Election.  The Participant shall not exercise the election permitted under section 83(b) of the Code with respect to the Restricted Stock without the written approval of the Chief Financial Officer of the Company.

	
8.
	
No Fractional Shares.  All provisions of this Agreement concern whole shares of Common Stock.  If the application of any provision hereunder would yield a fractional share, such fractional share shall be rounded down to the next whole share if it is less than 0.5 and rounded up to the next whole share if it is 0.5 or more.

	
9.
	
Not an Employment Agreement.  This Agreement is not an employment or service agreement, and no provision of this Agreement shall be construed or interpreted to create an employment or service relationship between the Participant and the Company or guarantee the right to continue in the employment of the Company or a Subsidiary for any specified term.

	
10.
	
Limit of Liability.  Under no circumstances will the Company or an Affiliate be liable for any indirect, incidental, consequential or special damages (including lost profits or taxes) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan, this Agreement or the Restricted Stock.

	
11.
	
Legend.  The Participant consents to the placing on the certificate for the Restricted Stock of an appropriate legend restricting resale or other transfer of the Restricted Stock except in accordance with the Securities Act of 1933 and all applicable rules thereunder.

	
12.
	
Notices.  Any notice, instruction, authorization, request or demand required hereunder shall be in writing, and shall be delivered either by personal delivery, telegram, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the Company at the Company’s principal business office address and to the Participant at the Participant’s residential address as shown in the records of the Company, or at such other address and number as a party shall have previously designated by written notice given to the other party in the manner hereinabove set forth.  Notices shall be deemed given when received, if sent by facsimile means (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications sent by facsimile means); and when delivered (or upon the date of attempted delivery where delivery is refused), if hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested.

	
13.
	
Amendment and Waiver.  Except as otherwise provided herein or in the Plan, or as necessary to implement the provisions of the Plan, this Agreement may be amended, modified or superseded only by written instrument executed, or an electronic agreement agreed to, by the Company and the Participant.  Only a written instrument executed and delivered by, or an electronic agreement agreed to by, the party waiving compliance hereof shall waive any of the terms or conditions of this Agreement.  Any waiver granted by the Company shall be effective only if executed and delivered by a duly authorized director or officer of the Company other than the Participant.  The failure of any party at any time or times to require performance of any provisions hereof shall in no manner effect the right 

 

		
to enforce the same.  No waiver by any party of any term or condition, or the breach of any term or condition contained in this Agreement, in one or more instances, shall be construed as a continuing waiver of any such condition or breach, a waiver of any other condition, or the breach of any other term or condition.

	
14.
	
Governing Law and Severability.  The validity, construction and performance of this Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.

	
15.
	
Successors and Assigns.  Subject to the limitations which this Agreement imposes upon the transferability of the Restricted Stock granted hereby, this Agreement shall bind, be enforceable by and inure to the benefit of the Company and its successors and assigns, and to the Participant, the Participant’s permitted assigns and upon the Participant’s death, the Participant’s estate and beneficiaries thereof (whether by will or the laws of descent and distribution), executors, administrators, agents, legal and personal representatives.

	
16.
	
Miscellaneous.  This Agreement is awarded pursuant to and is subject to all of the provisions of the Plan, including amendments to the Plan, if any.  

	
17.
	
Tax Withholding.  The Company or, if applicable, any Subsidiary (for purposes of this Section 17, the term “Company” shall be deemed to include any applicable Subsidiary), shall be entitled to deduct from other compensation payable to the Participant any sums required by federal, state or local tax law to be withheld with respect to the vesting of, or lapse of restrictions on, this Award.  Alternatively, the Company may require the Participant (or other person validly exercising the Award) to pay such sums for taxes directly to the Company in cash or by check within one (1) day after the date of vesting or lapse of restrictions.  Such payments shall be required to be made when requested by the Company and may be required to be made prior to the removal of any restrictions on such shares or the delivery of any certificate representing shares of Common Stock, if such certificate is requested by the Participant in accordance with Section 6.4(a) of the Plan.  Such payment may be made by (a) the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (c) below) the required tax withholding obligations of the Company; (b) if the Company, in its sole discretion, so consents in writing, the actual delivery by the Participant to the Company of shares of Common Stock that the Participant has not acquired from the Company within six (6) months  prior thereto, which shares so delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (c) below) the required tax withholding payment; (c) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a number of shares to be delivered upon the vesting of the Restricted Stock, which shares so withheld have an aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment; or (d) any combination of (a), (b), or (c).  

 

	
18.
	
Acceptance.  The Participant, by his or her acceptance of the Restricted Stock, agrees to be bound by all of the terms and conditions of this Agreement, including, without limitation, the provisions of Exhibit A, Exhibit B and the Plan, and further consents to and agrees to be bound by the Irrevocable Stock Power presented herewith.  

	
19.
	
Disclaimer of Reliance.  Except for the specific representations expressly made by the Company in this Agreement and Exhibit A, the Participant specifically disclaims that the Participant is relying upon or has relied upon any communications, promises, statement, inducements or representation(s) that may have been made, oral or written regarding the subject matter of this Agreement.  The Participant represents that the Participant relied solely and only on the Participant’s own judgment in making the decision to enter into this Agreement.

 

EXHIBIT A

 

 

 

[Describe vesting dates and performance criteria here]1

	
	 

	
1
	
 NTD: Unless granted as “Exempt Shares,” the Restricted Stock granted hereunder cannot vest earlier than one year after the Date of Grant.

 

EXHIBIT B

	
1.
	
Confidential Information, the Participant’s Non-Disclosure Agreement and Work Product Ownership.

	
 
	
(a)
	
Confidential Information.  During the Participant’s employment with the Company, the Company shall provide the Participant otherwise prohibited access to certain of its Confidential Information which is not known to the Company’s competitors or within the Company’s industry generally, which was developed by the Company over a long period of time and/or at its substantial expense, and which is of great competitive value to the Company.  For purposes of this Agreement, “Confidential Information” includes all trade secrets and confidential and proprietary information of the Company, including, but not limited to, the following: all documents or information, in whatever form or medium, concerning or relating to the Company’s operations; procedures; computer systems; customer information; methods of doing business; merchandise; marketing plans and methods; financial and accounting information; policies and practices; product information and strategy; project and prospect locations and leads; developmental or experimental work; research; development; know-how; technical data; designs; plans for research or future products; improvements; discoveries; database schemas or tables; development tools or techniques; finances; business plans; sales plans and strategies; budgets; pricing and pricing strategies and techniques; costs; customer and client lists and profiles; customer and client nonpublic personal information; supplier lists; business records; audits; management methods and information; reports, recommendations and conclusions; business practices; strategies; training manuals; vendors; suppliers; contractual relationships; and other business information disclosed or made available to the Participant by the Company, either directly or indirectly, in writing, orally, or by drawings or observation, that is not known to the public or any of the Company’s competitors or within the Company’s industry generally, which was developed by the Company at its expense, and which is of value to the Company. Confidential Information prepared or compiled by the Participant and/or the Company or furnished to the Participant during the Participant’s employment with the Company shall be the sole and exclusive property of the Company, and none of such Confidential Information or copies thereof, shall be retained by the Participant.  The Participant acknowledges that the Company does not voluntarily disclose Confidential Information, but rather takes precautions to prevent dissemination of Confidential Information beyond those employees such as the Participant entrusted with such information.  The Participant further acknowledges that the Confidential Information: (i) is entrusted to the Participant because of the Participant’s position with the Company; and (ii) is of such value and nature as to make it reasonable and necessary for the Participant to protect and preserve the confidentiality and secrecy of the Confidential Information.  The Participant acknowledges and agrees that the Confidential Information is a valuable, special, and a unique asset of the Company, the disclosure of which could cause substantial injury and loss of profits and goodwill to the Company.  While the Participant may not disclose any such Confidential 

 

	
 
		
Information, the Participant has the right to discuss wages, benefits or other terms and conditions of employment.  Nothing in this Agreement, including the definition of “Confidential Information” above and the nondisclosure requirements in Section 1(b) is intended to restrict the Participant’s right to have such discussions.

(b)Non-Disclosure.  

	
 
	
(i)
	
The Participant shall hold all Confidential Information in strict confidence.  The Participant shall not, during the period of the Participant’s employment or at any time thereafter, disclose to anyone, or publish, use for any purpose, exploit, or allow or assist another person to use, disclose or exploit, except for the benefit of the Company, without prior written authorization, any Confidential Information or part thereof, except as permitted:  (1) in the ordinary course of the Company’s business or the Participant’s work for the Company; or (2) by law.  The Participant shall use all reasonable precautions to assure that all Confidential Information is properly protected and kept from unauthorized persons.  Further, the Participant shall not directly or indirectly, use the Company’s Confidential Information or information regarding the names, contact information, skills and compensation of employees and contractors of the Company to: (1) call upon, solicit business from, attempt to conduct business with, conduct business with, interfere with or divert business away from any customer, client, vendor or supplier of the Company with whom or which the Company conducted business within the eighteen (18) months prior to the Participant’s termination from employment with the Company; and/or (2)  recruit, solicit, hire or attempt to recruit, solicit, or hire, directly or by assisting others, any persons employed by or associated with the Company.  The Participant agrees that the Participant shall take all steps necessary to safeguard all Confidential Information and prevent its wrongful use, disclosure, or dissemination of any other person or entity.  The Participant further agrees that in the event the Participant is subpoenaed, served with any legal process or notice or otherwise requested to produce or divulge, directly or indirectly, any Confidential Information by any entity, agency, or person in any formal or informal proceeding including, but not limited to, any interview, deposition, administrative or judicial hearing and/or trial, and upon the Participant’s receipt of such subpoena, process, notice or request, the Company requests that the Participant notify and deliver via overnight delivery service a copy of the subpoena, process, notice or other request to: the Company’s General Counsel at 6250 LBJ Freeway, Dallas, Texas 75240.

	
 
	
(ii)
	
The Participant shall immediately notify the Company’s General Counsel if the Participant learns of or suspects any unauthorized disclosure of Confidential Information concerning the Company. 

 

	
 
	
(iii)
	
Subject to Section 1(b)(iv), the Participant agrees that the Participant shall not use or disclose any confidential or trade secret information belonging to any former employer or third party, and the Participant shall not bring onto the premises of the Company or onto any the Company property any confidential or trade secret information belonging to any former employer or third party without such third parties’ consent.   

	
 
	
(iv)
	
During the Participant’s employment, the Company will receive from third parties their confidential and/or proprietary information, subject to a duty on the Company’s part to maintain the confidentiality of and to use such information only for certain limited purposes.  The Participant agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or organization or to use it except as necessary in the course of the Participant’s employment with the Company and in accordance with the Company’s agreement with such third party.

	
 
	
(c)
	
Return of the Company Property.  Upon the termination of the Participant’s employment for any reason, the Participant shall immediately return and deliver to the Company any and all property, including, without limitation, Confidential Information, software, devices, data, reports, proposals, lists, correspondence, materials, equipment, computers, hard drives, papers, books, records, documents, memoranda, manuals, e-mail, electronic or magnetic recordings or data, including all copies thereof, books of account, drawings, prints, plans, and the like which belong to the Company or which relate to the Company’s business and which are in the Participant’s possession, custody or control, whether prepared by the Participant or others.  If at any time after termination of the Participant’s employment, for any reason, the Participant determines that the Participant has any Confidential Information in the Participant’s possession or control, the Participant shall immediately return to the Company all such Confidential Information in the Participant’s possession or control, including all copies and portions thereof.  Further, the Participant shall not retain any property, including, without limitation, Confidential Information, data, information, or documents, belonging to the Company or any copies thereof (in electronic or hard copy format).  

	
2.
	
Non-Solicitation.  In Section 1, the Company promised to provide the Participant certain Confidential Information.  The Participant recognizes and agrees that:  (i) the Company has devoted a considerable amount of time, effort, and expense to develop its Confidential Information and business goodwill; (ii) the Company’s Confidential Information and business goodwill are valuable assets to the Company; and (iii) any unauthorized use or disclosure of the Confidential Information would cause irreparable harm to the Company for which there is no adequate remedy at law, including damage to the Company’s business goodwill.  To protect the Confidential Information and business goodwill of the Company, the Participant agrees to the following restrictive covenants.

 

 

	
 
	
(a)
	
Non-Solicitation.  The Participant agrees that, as part of the Participant’s employment or association with the Company, the Participant will become familiar with the salary, pay scale, capabilities, experiences, skill and desires of the Company’s employees and consultants.  For these reasons, the Participant agrees that to protect the Company’s Confidential Information, legitimate business interests, and business goodwill, it is necessary to enter into the following restrictive covenant.  The Participant agrees that, during the Participant’s employment and for a period of twelve (12) months following the date on which the Participant’s employment with the Company terminates for any reason (“Restrictive Covenant Period”), the Participant, whether directly or indirectly, shall not recruit, solicit, hire or attempt to recruit, solicit, or hire, directly or by assisting others, any persons employed by or associated with the Company, nor shall the Participant contact or communicate with any such persons for the purpose of inducing such persons to terminate their employment or association with the Company.  For purposes of this paragraph, the “persons” covered by this prohibition include current employees and persons who were employed by the Company within twelve (12) months of the time of the attempted recruiting, solicitation, or hiring.  

	
 
	
(b)
	
Remedies.  The Participant acknowledges that the restrictions contained in Section 1 and Section 2, in view of the nature of the Company’s business, are reasonable and necessary to protect their legitimate business interests, business goodwill and reputation, and that any violation of these restrictions would result in irreparable injury and continuing damage to the Company, and that money damages would not be a sufficient remedy to the Company for any such breach or threatened breach.  Therefore, the Participant agrees that the Company shall be entitled to a temporary restraining order and injunctive relief restraining the Participant from the commission of any breach or threatened breach of Section 1 or Section 2, without the necessity of establishing irreparable harm or the posting of a bond, and to recover from the Participant damages incurred by the Company as a result of the breach, as well as the Company’s attorneys’ fees, costs and expenses related to any breach or threatened breach of this Agreement and enforcement of this Agreement.  Nothing contained in this Agreement shall be construed as prohibiting the Company from pursuing any other remedies available to it for any breach or threatened breach, including, without limitation, the recovery of money damages, attorneys’ fees, and costs.  The existence of any claim or cause of action by the Participant against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of the restrictive covenants contained in Section 1 or Section 2, or preclude injunctive relief.

	
 
	
(c)
	
Tolling.  If the Participant violates any of the restrictions contained in this Section 2, the Restrictive Covenant Period shall be suspended and shall not run in favor of the Participant until such time that the Participant cures the violation to the 

 

	
 
		
satisfaction of the Company; the period of time in which the Participant is in breach shall be added to the Restrictive Covenant Period.

	
 
	
(d)
	
Notice.  If the Participant, in the future, seeks or is offered employment, or any other position or capacity with another company or entity, the Participant agrees to inform each new employer or entity, before accepting employment, of the existence of the restrictions in Section 1 and Section 2. The Company shall be entitled to advise such person or subsequent employer of the provisions of Section 1 and Section 2 and to otherwise deal with such person to ensure that the provisions of Section 1 and Section 2 are enforced and duly discharged. 

 

 

Irrevocable Stock Power

Know all men by these presents, That For Value Received, the Participant (as defined in the Award Agreement) has bargained, sold, assigned and transferred and by these presents does bargain, sell, assign and transfer unto Tuesday Morning Corporation, a Delaware corporation (the “Company”), the Restricted Stock transferred pursuant to the Restricted Stock Award Agreement dated as of and effective ____________, between the Company and the Participant granting such Restricted Stock to the Participant (the “Award Agreement”); and subject to and in accordance with the terms of the Award Agreement the Participant does hereby constitute and appoint the Secretary of the Company the Participant’s true and lawful attorney, IRREVOCABLY, to sell, assign, transfer, hypothecate, pledge and make over all or any part of such Restricted Stock and for that purpose to make and execute all necessary acts of assignment and transfer thereof, and to substitute one or more persons with like full power, hereby ratifying and confirming all that said attorney or his or her substitutes shall lawfully do by virtue hereof.Exhibit 10.1

 

PURCHASE AND SALE AGREEMENT

 

BY AND BETWEEN

 

GRAND TRAVERSE HOTEL PROPERTIES, LLC,

a Michigan limited liability company

 

AS SELLER

 

AND

 

THE PROCACCIANTI GROUP, LLC,

a Rhode Island limited liability company

 

AS PURCHASER

 

FOR

 

Hotel Indigo

263 West Grandview Parkway

Traverse City, Michigan

 

Dated as of March 8, 2018

 

     

     

    

 

PURCHASE
AND SALE AGREEMENT

 

THIS PURCHASE AND SALE
AGREEMENT (the “Agreement”) is made as of the 8th day of March, 2018 (the “Effective Date”)
by and between GRAND TRAVERSE HOTEL PROPERTIES, LLC, a Michigan limited liability company (“Seller”) and THE
PROCACCIANTI GROUP, LLC, a Rhode Island limited liability company (“Purchaser”).

 

ARTICLE
I

 

PURCHASE
AND SALE

 

1.1          Agreement
of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and convey and Purchaser
agrees to purchase the following:

 

(a)          that
certain tract or parcel of land situated in Traverse City, Michigan, more particularly described on Exhibit A attached
hereto and made a part hereof, together with all and singular the rights and appurtenances pertaining to such property, including,
any right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way (the property described in clause (a) of
this Section 1.1 being herein referred to collectively as the “Land”);

 

(b)          the
buildings, structures, fixtures and other improvements on the Land, including specifically, without limitation, that certain approximately
107 room hotel (the “Hotel”) located thereon having a street address of 263 West Grandview Parkway, Traverse
City, Michigan (the property described in clause (b) of this Section 1.1 being herein referred to collectively as the
 “Improvements”);

 

(c)          all
of Seller’s right, title and interest in and to all tangible personal property upon the Land or within the Improvements,
including specifically, without limitation, appliances, furniture, carpeting, draperies and curtains, tools and supplies, books
and records (including, but not limited to, to the extent the same may be transferred to Purchaser in accordance with applicable
law, any personnel records and files (other than medical information), time cards, personnel policies and procedures, grievance
files, labor relation files, employee arbitration decisions and awards files, witness statement files, affirmative action files
and governmental orders relating to employee matters and any collective bargaining records (provided, however, that Seller may
retain copies of all such records), any drawings, maps or surveys (to the extent they may be transferred without the consent of
another party), guest ledger(s), non-proprietary computer software systems (including any non-proprietary property management and
non-proprietary catering systems and all non-proprietary historical information, guest information, reservation rates, details
of future bookings and other non-proprietary information within such systems), websites, Hotel phone and facsimile numbers, email
accounts and addresses, equipment (including, without limitation, all telephone, television, video and other communications equipment),
decorations, signage, artwork (excluding however, that certain fish mural located in the rooftop bar), sculptures, information
and documents relating to the heritage and history of the Hotel and the Improvements, photographs, antiques, china, glassware,
linens, silver, utensils, all vehicles (if any), and other items of personal property in all cases subject to (i) depletion,
resupply, substitution, replacement and disposition in the ordinary course of business and (ii) the provisions of subparagraph
(g), below, and the provisions of Exhibit G (the property described in this clause (c) of this Section 1.1
being herein referred to collectively as the “Personal Property”);

 

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(d)          all
of Seller’s right, title and interest in and to that certain unrecorded Commercial Lease by and between Seller and Larned
Family Chiropractic dated June 1, 2017 of a portion of the Improvements (the “Lease”);

 

(e)          all
of Seller’s right, title and interest in and to: (i) those assignable contracts and agreements (collectively, the “Operating
Agreements”) relating to the upkeep, repair, maintenance or operation of the Land, Improvements or Personal Property
which will extend beyond the date of Closing (as such term is defined in Section 4.1 hereof), as listed on Exhibit B
(the “Property Agreements Schedule”) attached hereto and made a part hereof, to the extent of those Operating
Agreements Purchaser has elected to assume in writing, if any, as set forth in Purchaser’s Acceptance Notice (defined below)
and those equipment leases listed on the Property Agreements Schedule, provided however, that Purchaser shall be required to assume
non-cancellable agreements of Seller including, without limitation, the linens agreement, the printer agreement and the copier
agreement; (ii) all assignable existing licenses (excluding liquor licenses, which will be transferred in accordance with
Section 3.4, below), other warranties and guaranties (expressed or implied) issued to Seller in connection with the
Improvements or the Personal Property as described on the Property Agreements Schedule, and, to the extent assignable without the
consent of a third party, all plans, specifications, permits and certificates of occupancy, entitlements, governmental approvals
and development rights relating to the Land and Improvements; and (iii) all transferable names, domain names, marks, logos
and designs used in the operation or ownership of the Land, Improvements or the Personal Property, if any (the property described
in this Section 1.1(e) being sometimes herein referred to collectively as the “Intangibles”);

 

(f)           subject
to Exhibit G, all contracts or reservations for the use of guest rooms, ballroom and banquet facilities, conference
facilities, meeting rooms or other facilities of the Hotel or located within the Improvements (“Bookings”);

 

(g)          subject
to Exhibit G, (i) all food and beverages (subject to any legal restrictions pertaining to the sale or transfer
of alcoholic beverages); (ii) inventory held for sale to Hotel guests and others in the ordinary course of business including
all opened and unopened retail inventory in any Hotel gift shop, fitness center or any other area at the Hotel conducting retail
sales by Seller or GCH Global Management, LLC (“Hotel Manager”) (collectively, “Retail Inventory”);
(iii) engineering, maintenance and housekeeping supplies, including soap and cleaning materials, fuel and materials, stationery
and printing items and supplies; and (iv) other supplies of all kinds, whether used, unused or held in reserve storage for
future use in connection with the maintenance and operation of the Land, the Improvements or the Personal Property (including,
but not limited to, soaps, toiletries and similar inventory in circulation), together with any additions thereto prior to Closing
(defined below) and subject to depletion, resupply, substitution, replacement and disposition in the ordinary course of business
(all of the foregoing being referred to herein as the “Consumable Inventory” and, to the extent contained in
unopened boxes, bottles, jars or containers of any type in on-site or off-site storage as of the Closing Date (defined below),
shall collectively be referred to as the “Unopened Inventory”); and

 

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(h)          subject
to Section 9 of Exhibit G, Seller’s interest in the funds contained in “house banks”
for the Hotel as of the Cut-Off Time (defined in Exhibit G), whether held in the name of Seller, the Hotel or the Hotel
Manager and owned by Seller (collectively, the “House Bank Funds).”

 

1.2          Property
Defined. The Land, the Improvements, the Personal Property, the Lease and the Intangibles are hereinafter sometimes referred
to collectively as the “Property.”

 

1.3          Permitted
Exceptions. The Property shall be conveyed subject to the matters which are, or are deemed to be, Permitted Exceptions pursuant
to Article II hereof (herein referred to collectively as the “Permitted Exceptions”).

 

1.4          Purchase
Price. Seller is to sell, and Purchaser is to purchase, the Property for a total of Twenty-Six Million Fifty Thousand and no/100
Dollars ($26,050,000.00) (the “Purchase Price”).

 

1.5          Payment
of Purchase Price. The Purchase Price, as increased or decreased by prorations and adjustments as herein provided, shall be
payable in full at Closing in cash by wire transfer of immediately available federal funds to a bank account designated by Title
Company (as such term is defined in Section 1.6 hereof) in writing to Purchaser prior to the Closing. Said funds shall
be so deposited on the Closing Date. There is no financing contingency with respect to the transaction contemplated by this Agreement.

 

1.6          Earnest
Money. Within one (1) business day after the Effective Date, Purchaser shall deposit with Vanguard Title Insurance Agency,
LLC, 2100 Coe Court, Auburn Hills, MI 48326, Attention: John Apostol, as agent for First American Title Insurance Company (the
 “Title Company” and “Escrow Agent”), the sum of Five Hundred Thousand and no/100 Dollars
($500,000.00) (the “Initial Deposit”) in good funds, either by certified bank or cashier’s check or by
federal wire transfer. Within one (1) business day after the expiration of the Inspection Period, provided that this Agreement
has not been validly terminated, Purchaser shall deposit with Escrow Agent an additional sum of Five Hundred Thousand and no/100
Dollars ($500,000.00) (the “Second Deposit”; the Initial Deposit and the Second Deposit as outstanding from
time to time, together with all interest earned in while Escrow, are hereinafter referred to as the “Earnest Money”).
The Escrow Agent shall hold the Earnest Money in an interest-bearing account in accordance with the terms and conditions hereof
and any supplementary instructions executed by the parties pursuant to the provisions of Section 1.7 hereof. All interest
accruing on such sums shall become a part of the Earnest Money and shall be distributed as Earnest Money in accordance with the
terms of this Agreement. Upon the expiration of the Inspection Period, the Earnest Money shall be non-refundable to Purchaser except
as expressly set forth in this Agreement. If Purchaser fails to deliver the Earnest Money to the Title Company within the time
period specified above, Seller may, at its option, deliver written notice to the Escrow Agent terminating this Agreement and, if
such termination is due to Purchaser’s failure to timely deposit the Second Deposit, the Earnest Money previously deposited
(i.e., the Initial Deposit) shall be paid to Seller and neither party shall have any further rights, obligations, or liabilities
hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this
Agreement. Time is of the essence for the delivery of Earnest Money under this Agreement.

 

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1.7          Delivery
to Title Company. Upon mutual execution of this Agreement, the parties hereto shall deposit an executed copy of this Agreement
with Escrow Agent and this Agreement shall (along with such supplementary instructions not inconsistent herewith as either party
hereto may deliver to Title Company) serve as escrow instructions to Title Company for the consummation of the purchase and sale
contemplated hereby. Seller and Purchaser agree to execute such additional escrow instructions as Title Company may reasonably
require and which are not inconsistent with the provisions hereof; provided, however, that in the event of any conflict between
the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement shall control.

 

1.8          Independent
Consideration. Notwithstanding any provision set forth in this Agreement to the contrary, One Hundred and no/100 Dollars ($100.00)
of the Earnest Money shall be non-refundable in all events at any time prior to the Closing (the “Independent Consideration”)
and is in addition to and independent of all other consideration provided in this Agreement and shall be paid directly to Seller
upon deposit with the Escrow Agent. The Independent Consideration, however, shall be applicable to the Purchase Price at Closing. 
Seller acknowledges that Purchaser will expend time, money and other resources in connection with the examination and investigation
of the Property, and that, notwithstanding the fact that Purchaser may terminate this Agreement pursuant to its terms, such time,
money and other resources expended, together with the payment of the Independent Consideration hereinabove described to be paid
to Seller in the event of a termination of this Agreement, constitute good, valuable, sufficient and adequate consideration for
Seller’s execution of and entry into this Agreement.

 

1.9          Allocation
of Purchase Price. Seller and Purchaser hereby agree to negotiate in good faith to allocate the Purchase Price for the Hotel
among the Land, Improvements and Personal Property for federal, state and local tax purposes. In the event that Seller and Purchaser
are unable to agree upon an allocation prior to the date that is five (5) business days prior to the Closing Date, each party shall
allocate the Purchase Price as it chooses in its sole discretion.

 

ARTICLE
II

 

TITLE
AND SURVEY

 

2.1          Title
Examination; Commitment for Title Insurance. Seller shall obtain from the Title Company and deliver, to Purchaser, within fifteen
(15) days after the Effective Date, a current title insurance report (the “Title Commitment”) covering the Property
(which Title Commitment shall also include true, accurate and legible copies of all encumbrances and exceptions disclosed therein
except for documents relating to Seller’s mortgage to be paid off at Closing). Purchaser shall have until the date that is
ten (10) business days after delivery of both the Title Commitment and the Survey (the “Title Exam Deadline”),
to review the Title Commitment and the Survey pursuant to Section 2.3 hereof.

 

2.2          Survey.
Seller shall deliver to Purchaser, within five (5) days after the Effective Date, Seller’s most current survey of the Property
(the “Survey”). Purchaser may, at its sole cost and expense, update and recertify the Survey or obtain a new
survey.

 

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2.3          Title
Objections; Cure of Title Objections. Purchaser shall have until the Title Exam Deadline to notify Seller, in writing, of such
objections as Purchaser may have to any matter disclosed in the Title Commitment or the Survey. Other than the Monetary Exceptions
(defined below) and subject to Section 2.4 below, any item contained in the Title Commitment or any matter shown on
the Survey to which Purchaser does not object prior to the Title Exam Deadline shall be deemed a Permitted Exception. In the event
Purchaser shall notify Seller of objections to title or to matters shown on the Survey prior to the Title Exam Deadline, Seller
shall have the right, but not the obligation, to cure such objections. Within five (5) business days after receipt of Purchaser’s
notice of objections, Seller shall notify Purchaser in writing whether Seller elects to attempt to cure such objections. Seller’s
failure to respond within said five (5) business day period shall be deemed to be Seller’s election not to cure any such
objections. If Seller timely elects to attempt to cure, and provided that Purchaser shall not have terminated this Agreement in
accordance with Section 3.2 hereof, Seller shall have until the date of Closing to attempt to remove, satisfy or cure
the same and for this purpose Seller shall be entitled to a reasonable adjournment of the Closing if additional time is required,
but in no event shall the adjournment exceed forty-five (45) days after the date for Closing set forth in Section 4.1
hereof. If Seller elects not to cure any objections specified in Purchaser’s notice, or if Seller is unable to effect a cure
prior to the Closing (or any date to which the Closing has been adjourned), Purchaser shall have the following options: (i) to
accept a conveyance of the Property subject to the Permitted Exceptions, specifically including any matter objected to by Purchaser
which Seller is unwilling or unable to cure, and without reduction of the Purchase Price; or (ii) to terminate this Agreement by
sending written notice thereof to Seller, and upon delivery of such notice of termination, this Agreement shall terminate and the
Earnest Money shall be returned to Purchaser, and thereafter neither party hereto shall have any further rights, obligations or
liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination
of this Agreement. If Seller notifies Purchaser that Seller does not intend to attempt to cure any title objection; or if, having
commenced attempts to cure any objection, Seller later notifies Purchaser that Seller will be unable to effect a cure thereof,
Purchaser shall, within five (5) business days after such notice has been given, notify Seller in writing whether Purchaser shall
elect to accept the conveyance under clause (i) or to terminate this Agreement under clause (ii). Purchaser’s failure to
respond within said five (5) business day period shall be deemed to be Purchaser’s election to accept the conveyance under
clause (i) above. Notwithstanding anything to the contrary herein contained, and whether or not objected to by Purchaser as set
forth above, Seller covenants and agrees that at or prior to Closing, Seller shall cause the following (the “Monetary
Exceptions”) to be removed from title or cause the Title Company to insure against the following: (a) pay in full and
cause to be canceled and discharged or otherwise discharge or cause the Title Company to insure over, whether by bond or indemnity
of the Title Company by Seller, as liens against the Property all mechanics’, materialmen’s and contractors’
liens which encumber the Property as a result of the actions of Seller or its agents or contractors, any and all judgment liens
against Seller and other monetary liens, (b) pay in full and cause to be released all mortgages or other collateral financing
interests against the Property caused by, through or under Seller, and (c) pay in full all past due ad valorem taxes and assessments
constituting a lien against the Property. In no event shall any Monetary Exception be deemed a Permitted Exception.

 

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2.4          Conveyance
of Title. At Closing, Seller shall convey and transfer to Purchaser such title to the Property as will enable the Title Company
to issue to Purchaser an ALTA extended coverage Owner’s Policy of Title Insurance (the “Title Policy”)
covering the Property, in the full amount of the Purchase Price subject only to the Permitted Exceptions, and, if a pro forma Title
Policy (a “Proforma”) is obtained by Purchaser from the Title Company prior to the expiration of the Inspection
Period, the Title Policy shall be in the form of the Proforma. Notwithstanding anything contained herein to the contrary, the Property
shall be conveyed subject to the following matters, which shall be deemed to be Permitted Exceptions:

 

(a)          the
lien of all ad valorem real estate taxes and assessments not yet due and payable as of the date of Closing, subject to adjustment
as herein provided;

 

(b)          liens,
encumbrances or other items caused or created by Purchaser;

 

(c)          local,
state and federal laws, ordinances or governmental regulations, including but not limited to, building and zoning laws, ordinances
and regulations, now or hereafter in effect relating to the Property;

 

(d)          the
interest of tenants, as tenants only, under unrecorded leases;

 

(e)          matters
set forth on the recorded plat for the Land; and

 

(f)           items
appearing of record or shown on the Survey and, in either case, not objected to by Purchaser or waived or deemed waived by Purchaser
in accordance with Sections 2.3 or 2.5 hereof.

 

2.5          Pre-Closing
 “Gap” Title Defects. Whether or not Purchaser shall have furnished to Seller any notice of title objections pursuant
to the foregoing provisions of this Agreement, Purchaser may, within ten (10) days after receipt thereof, but in all events prior
to Closing, notify Seller in writing of any objections to title first raised by the Title Company or shown on Purchaser’s
update to the Survey and disclosed to Purchaser. With respect to any objections set forth in such notice, Seller shall have the
same option to cure and Purchaser shall have the same option to accept title subject to such matters or to terminate this Agreement
as those which apply to any notice of objections made by Purchaser pursuant to 2.3 above. If Seller elects to attempt to cure any
such matters, the date for Closing shall be automatically extended by a reasonable additional time to effect such a cure, but in
no event shall the extension exceed forty-five (45) days after the date for Closing set forth in Section 4.1 hereof.

 

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ARTICLE
III

 

INSPECTION
PERIOD

 

3.1          Right
of Inspection. During the period beginning upon the Effective Date and ending at 5:00 p.m. (local time at the Property) on
the date which is forty-five (45) days after the Effective Date (such period is hereinafter referred to as the “Inspection
Period”), Purchaser shall have the right to make a physical inspection of the Property and to examine at such place or
places at the Property, in the offices of the Hotel Manager or elsewhere as the same may be located, any operating files maintained
by Seller or its manager in connection with the leasing, maintenance and/or management of the Property, including, without limitation,
the Lease, lease files, the Operating Agreements, insurance policies, bills, invoices, receipts and other general records relating
to the income and expenses of the Property, correspondence, surveys, plans and specifications, warranties for services and materials
provided to the Property, environmental audits and similar materials, but excluding materials not directly related to the leasing,
maintenance and/or management of the Property such as, without limitation, Seller’s internal memoranda, financial projections,
development budgets, appraisals, income tax records and other proprietary or confidential information. In addition to the foregoing,
Seller shall deliver or make available to Purchaser, for Purchaser’s review, to the extent in Seller’s possession or
reasonable control, financial and operating statements for the Property, including any (i) off-balance sheet liabilities not appearing
in the most recent financial statements (including the notes thereto); (ii) any auditors’ reports, management letters
and management responses, and management letters from auditors, or accountants; and (iii) any operating and capital expenditure
budget for the Property. Subject to Article X hereof, Seller shall also deliver to Purchaser a list of all employees
of the Hotel, including their positions, their salary status and their status as full-or part-time employees. All documents or
other records described in this Section 3.1 which Seller is to deliver to Purchaser, or to which Purchaser is otherwise
given access, shall be delivered by Seller to Purchaser by online access to an electronic data room (the “Data Room”)
or by making them available at the Property no later than five (5) business days following the Effective Date. Purchaser understands
and agrees that any on-site inspections of the Property shall be conducted upon at least twenty-four (24) hours’ prior written
notice to Seller, which may be given by e-mail, and in the presence of Seller or its representative. Such physical inspection shall
not unreasonably interfere with the use of the Property by Seller or its hotel guests nor shall Purchaser’s inspection damage
the Property in any respect. Such physical inspection shall not be invasive in any respect unless Purchaser obtains Seller’s
prior written consent, which consent may be withheld in Seller’s sole and absolute discretion; provided, however, that if
Purchaser obtains a Phase I Environmental Impact Study report that recommends a Phase II Environmental Impact Study, Purchaser
shall request Seller’s consent thereto which request shall include a copy of the Phase I report including such recommendation
as well as a scope of work for any Phase II testing, Seller’s consent shall not be unreasonably withheld, conditioned or
delayed; provided however, Seller may deny or condition its consent upon such testing not violating the due care plan for the Property
or impacting the remedial measures which are in place for the Property, including, without limitation, piercing the liner underneath
the surface of the Land. All physical inspections shall be conducted in accordance with standards customarily employed in the industry
and in compliance with all governmental laws, rules and regulations. Following each entry by Purchaser with respect to inspections
and/or tests on the Property, Purchaser shall restore the Property to a condition which is as near as possible to its original
condition as existed prior to any such inspections and/or tests, ordinary wear and tear excepted. Seller shall cooperate with Purchaser
in its due diligence but shall not be obligated to incur any liability or expense in connection therewith. Purchaser shall not
unreasonably disrupt Seller’s activities on the Property. Purchaser agrees to indemnify against and hold Seller harmless
from any claim for liabilities, costs, expenses (including reasonable attorneys’ fees actually incurred) damages or injuries
arising out of or resulting from the inspection of the Property by Purchaser or its agents, and notwithstanding anything to the
contrary in this Agreement, such obligation to indemnify and hold harmless Seller shall survive Closing or any termination of this
Agreement; provided, however, that, Purchaser’s indemnity hereunder shall not include any liabilities, losses, costs, damages
or expenses to the extent resulting from the gross negligence or willful misconduct of Seller, or the mere discovery of any pre-existing
condition of the Property. All inspections shall occur at reasonable times agreed upon by Seller and Purchaser. Prior to Purchaser
entering the Property to conduct the inspections and/or tests described above, Purchaser shall obtain and maintain, at Purchaser’s
sole cost and expense, and shall deliver to Seller evidence of, the following insurance coverage, and shall cause each of its agents
and contractors to obtain and maintain, and, upon request of Seller, shall deliver to Seller evidence of, the following insurance
coverage: general liability insurance, from an insurer reasonably acceptable to Seller, in the amount of One Million and No/100
Dollars ($1,000,000.00) combined single limit for personal injury and property damage per occurrence, such policy to name Seller
as an additional insured party, which insurance shall provide coverage against any claim for personal liability or property damage
caused by Purchaser or its agents, employees or contractors in connection with such inspections and/or tests.

 

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3.2          Right
of Termination. Seller agrees that in the event Purchaser determines (such determination to be made in Purchaser’s sole
discretion and for any or no reason) that the Property is not suitable for its purposes, Purchaser shall have the right to terminate
this Agreement by giving written notice thereof to Seller prior to the expiration of the Inspection Period. If Purchaser gives
such notice of termination or fails to deliver an Acceptance Notice (defined below) on or before the expiration of the Inspection
Period, this Agreement shall terminate, and the Earnest Money shall be promptly returned to Purchaser subject to the terms of this
Agreement. Time is of the essence with respect to the provisions of this Section 3.2. If Purchaser gives Seller written
notice that Purchaser has elected to proceed with the transaction contemplated herein (an “Acceptance Notice”)
on or before the expiration of the Inspection Period, Purchaser shall no longer have any right to terminate this Agreement under
this Section 3.2 and (subject to the provisions of Section 2.5 hereof and except as expressly provided
otherwise in this Agreement), shall be bound to proceed to Closing and consummate the transaction contemplated hereby pursuant
to the terms of this Agreement. Purchaser shall notify the Seller in Acceptance Notice of which Operating Agreements Purchaser
elects not to assume under the assignment described in Section 4.2(c), below. Purchaser’s failure to so notify
Seller shall be deemed to constitute Purchaser’s election to assume all Operating Agreements; provided, however, that Seller
shall have no obligation to terminate and Purchaser shall in all events be obligated to assume each Operating Agreement which cannot
be terminated, or which can only be terminated upon payment of a penalty or fee. If Purchaser timely delivers written notice to
Seller requesting that one or more Operating Agreements be terminated, Seller shall, cause such Operating Agreements to be terminated
on or before Closing.

 

3.3          Franchise
and Management. Purchaser covenants that within seven (7) days after the Effective Date it shall, at its sole cost and expense
(excluding, however, any termination or liquidated damage amounts payable in connection with the termination of the Existing Franchise
Agreement (defined below), which sums, if any, shall be payable by Seller), apply for and pursue the granting thereof with due
diligence, a new franchise agreement for the operation of the Property from Holiday Hospitality Franchising, Inc. (“Franchisor”),
to be effective should the Closing occur, in form and content acceptable to Purchaser in its sole and absolute discretion (“New
Franchise Agreement”). Purchaser shall deliver to Seller written notice certifying that Purchaser is submitting, simultaneously
with such notice, such application to Franchisor. Seller shall assist Purchaser with its efforts to obtain such New Franchise Agreement
but shall not be responsible for any costs or expenses in connection therewith, except as described above.

 

    	 	8	 

     

    

 

3.4          Liquor
License. Purchaser covenants that within ten (10) days after the Effective Date it shall, at its sole cost and expense, apply
for and pursue the granting thereof with due diligence, the transfer of the Property’s liquor license from Seller to Purchaser,
together with an application for a conditional license, or the issuance of a new liquor license to Purchaser from the State of
Michigan. Seller shall use reasonable commercial efforts in cooperating with Purchaser’s efforts in connection with such
application provided that, such cooperation of Seller (i) shall not create any potential liability for Seller, and (ii) shall
be at no material cost or expense to Seller. Seller’s cooperation will include, among other things, signing application forms
and submitting to investigation by the Michigan Liquor Control Commission. Purchaser shall deliver to Seller written notice certifying
that Purchaser is submitting, simultaneously with such notice, its application for such liquor license to the State of Michigan.
Purchaser agrees to pay all fees, charges, and related costs in connection with the transfer of the existing liquor license, securing
a conditional license, or obtaining a new license (excluding any such costs which arise from Seller’s activities at the Property
prior to Closing). Purchaser shall notify Seller promptly after: (i) obtaining a conditional liquor license from the State of Michigan
or satisfying all conditions to obtaining a conditional liquor license, except for providing a copy of the deed to the State (an
 “Incomplete License”), or (ii) denial thereof by the State of Michigan.

 

ARTICLE
IV

 

CLOSING

 

4.1          Time
and Place. The parties shall conduct an escrow closing (the “Closing”) on a date selected by Purchaser on
or before the date which is not earlier than thirty (30) and not later than forty-five (45) days after the earlier of: (i) the
expiration of the Inspection Period, or (ii) the Purchaser’s delivery of an Acceptance Notice (the “Closing Date”).
In the event the Closing does not occur on or before the Closing Date, the Escrow Agent shall, unless it is notified by both Seller
and Purchaser to the contrary within three (3) days after the Closing Date, return to the depositor thereof items, other than the
Earnest Money, which were deposited hereunder; any such return shall not, however, relieve either party of any liability it may
have under this Agreement for its wrongful failure to close. At Closing, Seller and Purchaser shall perform the obligations set
forth in, respectively, Section 4.2 hereof and Section 4.3 hereof, the performance of which obligations
shall be concurrent conditions.

 

4.2          Seller’s
Obligations at Closing. At Closing, Seller shall deliver to the Title Company:

 

(a)          a
duly executed covenant deed (the “Deed”), in the form of Exhibit C conveying the Land and Improvements,
subject only to the Permitted Exceptions;

 

(b)          two
(2) duly executed counterparts of a bill of sale in the form of Exhibit D attached hereto;

 

(c)          four
(4) duly executed counterparts of an assignment and assumption agreement as to the Lease, Operating Agreements Purchaser has elected
to assume under Section 3.2, above, Warranties and other Intangibles, including those warranties and guaranties listed
on the Property Agreement Schedule, in the form of Exhibit E attached hereto; provided that, in the event any assignable
warranty or guaranty requires the consent or action of a third party, Seller shall not be required to obtain such consent or pay
any consideration for the transfer thereof but Seller and Purchaser shall use diligent efforts to obtain a written consent of each
such third party, in the form attached hereto as Exhibit H;

 

    	 	9	 

     

    

 

(d)          a
duly executed Property Transfer Affidavit, in the form required by Michigan law;

 

(e)          the
Interim Agreement if required under Section 3.4;

 

(f)           such
evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf
of Seller;

 

(g)          a
duly executed counterparts of an affidavit by Seller stating that Seller is not a “foreign person” as defined in the
Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act in the form of Exhibit F attached
hereto;

 

(h)          the
Operating Agreements and licenses and permits (excluding any liquor license), if any, in the possession of Seller or Seller’s
agents;

 

(i)           two
(2) duly executed originals of a notice in the form of Exhibit J attached hereto, one of which Purchaser shall send
to the tenant under the Lease informing said tenant of the sale of the Property and of the assignment to Purchaser of Seller’s
interest in, and obligations under, the Lease (including, if applicable, any security deposit);

 

(j)           An
owner’s affidavit as reasonably required by the Title Company in connection with the issuance of the Title Policy with extended
coverage in the form of the Proforma including a so-called “gap” indemnity in a form acceptable to Seller and the Title
Company in order to cause the release of the Purchase Price to Seller and Title Company’s deletion of the general or standard
exceptions (except those exceptions relating to matters requiring an existing survey) and irrevocable and unconditional commitment
to issue the Title Policy prior to recordation of the Deed;

 

(k)          two
(2) originals of a certificate, dated as of the date of Closing and executed on behalf of Seller by a duly authorized officer thereof,
stating that the representations and warranties of Seller contained in Section 5.1 of this Agreement are true and correct
in all material respects as of the date of Closing (with appropriate modifications of those representations and warranties made
in Section 5.1 hereof to reflect any changes therein including, without limitation, any changes resulting from actions
under Section 5.4(b) hereof) or identifying any representation or warranty which is not, or no longer is, true and
correct and explaining the state of facts giving rise to the change.  The occurrence of a change which is not permitted under
this Agreement shall constitute the non-fulfillment of the condition set forth in Section 4.7(b) hereof; if, however,
despite changes or other matters described in such certificate, the Closing occurs, Seller’s representations and warranties
set forth in this Agreement shall be deemed to have been modified by all statements made in such certificate.

 

(l)           written
evidence of the termination of that certain Hotel Management Agreement by and between Seller and Hotel Manager dated May 15, 2017
(the “Hotel Management Agreement”), duly executed by Seller and Hotel Manager, and written evidence of the termination
of the Existing Franchise Agreement, duly executed by Franchisor and Seller; and

 

    	 	10	 

     

    

 

(m)         such
additional documents as shall be reasonably required to consummate the transaction expressly contemplated by this Agreement.

 

At the Closing, Seller shall deliver to Purchaser
possession and occupancy of the Property, subject to the Permitted Exceptions. Purchaser shall cooperate with Seller for a period
of three (3) years after the Closing in case of Seller’s need in response to any legal requirements, tax audits, tax return
preparation or litigation threatened or brought against Seller, by allowing Seller and its agents or representatives access, upon
reasonable advance notice (which notice shall identify the nature of the information sought by Seller) and execution of an appropriate
confidentiality agreement and insurance and indemnity agreement by Seller, at all reasonable times and upon reasonable conditions
(which shall not include payment of any fees except for Seller’s reimbursement of out-of-pocket costs of Purchaser) to examine
and make copies of any and all instruments, files and records relating to the period of time prior to Closing, which right shall
survive the Closing.

 

4.3          Purchaser’s
Obligations at Closing. Prior to 3:00 p.m. Eastern Time on the Closing Date, Purchaser shall deliver to the Title Company the
full amount of the Purchase Price (less the Earnest Money), as increased or decreased by prorations and adjustments as herein provided,
by wire transfer of immediately available US federal funds pursuant to Section 1.5 hereof, it being agreed that at
Closing the Earnest Money shall be delivered to Seller and applied towards payment of the Purchase Price. Not later than one (1)
business day prior to Closing, Purchaser shall deliver to Title Company:

 

(a)          four
(4) duly executed counterparts of the instruments described in Sections 4.2(b) and 4.2(c) hereof;

 

(b)          the
Interim Agreement if required under Section 3.4;

 

(c)          such
additional documents as shall be reasonably required to consummate the transaction expressly contemplated by this Agreement; and

 

(d)          such
evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf
of Purchaser.

 

4.4          Title
Company’s Obligations at Closing. At Closing, Title Company shall:

 

(a)          at
such time as Title Company holds and is irrevocably obligated to deliver the Purchase Price to Seller, record the Deed with the
Register of Deeds of Grand Traverse County, Michigan;

 

(b)          be
irrevocably and unconditionally committed to deliver the Title Policy to Purchaser;

 

(c)          deliver
to Seller the Purchase Price (plus or minus applicable prorations and adjustments set forth herein) by wire transfer of immediately
available federal funds to a bank account designated by Seller in writing to Title Company prior to the Closing;

 

    	 	11	 

     

    

 

(d)          deliver
to Seller and Purchaser two (2) fully executed counterparts of the instruments described in Sections 4.2(b) and 4.2(c)
and, if required, 4.2(e) hereof and deliver to Purchaser those items described in Sections 4.2(h), 4.2(i)
and 4.2(k) hereof; and

 

(e)          deliver
to Seller and Purchaser settlement statements prepared by Title Company and approved by Seller and Purchaser not less than two
(2) business days prior to the Closing.

 

4.5          Credits
and Prorations. All items of income and expense for the Property shall be prorated at Closing pursuant to the procedures set
forth on Exhibit G, attached hereto.

 

4.6          Closing
Costs. Seller shall pay (a) the fees of any counsel representing it in connection with this transaction, (b) one-half
(1/2) of any escrow fee which may be charged by Title Company, (c) the premium for the Title Policy, but not the cost to remove
the standard exceptions or endorsements, (d) all applicable State, County and City transfer taxes, and (e) all costs
and expenses associated with the termination of the Hotel Management Agreement and the Existing Franchise Agreement. Purchaser
shall pay (t) the fees of any counsel representing Purchaser in connection with this transaction, (u) the cost to remove
the standard exceptions to the Title Policy and any endorsements thereto, (v) the cost of the any update or recertification
of the Survey, (w) the fees for recording the Deed, (x) one-half (1/2) of any escrow fees charged by Title Company and
(y) all sales tax, if any, on the sale of the Personal Property (or any part thereof). All other costs and expenses incident to
this transaction and the closing thereof shall be paid by the party incurring same, or if any such cost or expense is incidental
to this transaction and not directly incurred by a party hereunder, then in accordance with custom in the County in which the Property
is located (“County Custom”). All bulk sales taxes shall be paid by Seller or escrowed from Seller’s proceeds
at Closing until a final determination by the State of Michigan is made.

 

4.7          Conditions
Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the transaction hereunder shall be subject
to the fulfillment on or before the date of Closing of all of the following conditions, any or all of which may be waived by Purchaser,
in writing, in its sole discretion:

 

(a)          Seller
shall have delivered to Purchaser or Escrow Agent all of the items required to be delivered to such party pursuant to Section 4.2
hereof.

 

(b)          All
of the representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects
as of the date of Closing.

 

(c)          Seller
shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and
observed by Seller as of the date of Closing.

 

(d)          Seller
shall have made reasonable commercial efforts to deliver to Purchaser within two (2) business days after Seller’s receipt
thereof, if so received, an original Tenant Estoppel duly completed and executed by the tenant under the Lease. The foregoing condition
shall not be applicable in the event that Seller terminates the Lease as permitted under Section 5.4(c) hereof.

 

    	 	12	 

     

    

 

(e)          Title
Company shall be irrevocably and unconditionally committed to issue the Title Policy to Purchaser, and, if a Proforma is obtained
by Purchaser from the Title Company prior to the expiration of the Inspection Period, the Title Policy shall be in the form of
the Proforma.

 

(f)           The
Hotel Management Agreement shall have been terminated at no cost or expense to Purchaser.

 

(g)          Franchisor
shall have consented to the sale of the Hotel to Purchaser or the Purchaser and Franchisor shall have executed the New Franchise
Agreement and that certain Franchise Agreement by and between Seller and Franchisor dated July 30, 2010 (the “Existing
Franchise Agreement”) shall have been terminated.

 

4.8          Conditions
Precedent to Obligation of Seller. The obligation of Seller to consummate the transaction hereunder shall be subject to the
fulfillment on or before the date of Closing of all of the following conditions, any or all of which may be waived by Seller in
its sole discretion:

 

(a)          Purchaser
shall have deposited the Purchase Price with Escrow Agent, as adjusted pursuant to and payable in the manner provided for in this
Agreement.

 

(b)          Purchaser
shall have delivered to Seller or Title Company all of the items required to be delivered to such party pursuant to the terms of
this Agreement including, but not limited to those provided in Section 4.3 hereof.

 

(c)          All
of the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all material respects
as of the date of Closing.

 

(d)          Purchaser
shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and
observed by Purchaser as of the date of Closing.

 

(e)          Franchisor
shall have consented to the sale of the Hotel to Purchaser or the Purchaser and Franchisor shall have executed the New Franchise
Agreement and the Existing Franchise Agreement shall have been terminated.

 

(f)           Purchaser
shall have obtained a conditional, unconditional liquor license or Incomplete License pursuant to Section 3.4 hereof.

 

    	 	13	 

     

    

 

ARTICLE
V

 

REPRESENTATIONS,
WARRANTIES AND COVENANTS

 

5.1          Representations
and Warranties of Seller. Seller hereby makes the following representations and warranties to Purchaser as of the Effective
Date and again as of the Closing Date:

 

(a)          Organization
and Authority. Seller is validly existing under the laws of the State of Michigan. Seller has the full right, power and authority
to enter into this Agreement and, to transfer all of the Property to be conveyed by Seller pursuant hereto and to consummate or
cause to be consummated the transactions contemplated herein to be made by Seller. The person signing this Agreement on behalf
of Seller is authorized to do so.

 

(b)          Pending
Actions. Seller has not been served as a party to any action, suit, arbitration, unsatisfied order or judgment, government
investigation or proceeding against Seller or the Property, or, to Seller’s knowledge, threatened which, if adversely determined,
could individually or in the aggregate have a material adverse effect on the title to the Property or which could in any material
way interfere with the consummation of the transaction contemplated by this Agreement.

 

(c)          OFAC.
Seller represents and warrants that (a) Seller and, to Seller’s actual knowledge, each person or entity owning an interest
in Seller is (i) not currently identified on the Specially Designated Nationals and Blocked Persons List maintained by the
Office of Foreign Assets Control, Department of the Treasury (“OFAC”) and/or on any other similar list maintained
by OFAC pursuant to any authorizing statute, executive order or regulation (collectively, the “List”), and (ii) not
a person or entity with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic
sanction, or other prohibition of United States law, regulation, or Executive Order of the President of the United States, and
(iii) not an Embargoed Person (as hereinafter defined), (b) to Seller’s actual knowledge, none of the funds or
other assets of Seller constitute property of, or are beneficially owned, directly or indirectly, by any Embargoed Person, and
(c) to Seller’s actual knowledge, no Embargoed Person has any interest of any nature whatsoever in Seller (whether directly
or indirectly). The term “Embargoed Person” means any person, entity or government subject to trade restrictions under
U.S. law, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §1701 et seq., the
Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder.

 

(d)          No
Breach. The execution, delivery and performance of this Agreement by Seller and the consummation of the transactions contemplated
herein will not: (i) result in a breach or acceleration of or constitute a default or event of termination under the provisions
of any agreement or instrument by which the Property is bound or affected which would have a material adverse impact on the ownership
and operation of the Property by Purchaser; or (ii) result in the creation or imposition of any lien, charge or encumbrance,
against the Property or any portion thereof.

 

(e)          Leases.
Other than the Lease, there are no leases or other occupancy agreements encumbering the Property. To Seller’s knowledge,
the copy of the Lease delivered by Seller to Purchaser is true, complete and correct in all material respects.

 

    	 	14	 

     

    

 

(f)           No
Violations. Seller has not received any written notification from any governmental or public authority or any insurance company
that carries any of Seller’s insurance with respect to the Property, that the Property is in material violation of any applicable
laws, licenses or permits where such violation remains outstanding, and to Seller’s knowledge, the Property is not in material
violation of any applicable law, license or permit where such violation remains outstanding and would have a material adverse effect
on the Property as currently operated.

 

(g)          Condemnation.
Seller has received no written notice of any pending condemnation proceedings relating to the Property, and to Seller’s knowledge,
no condemnation is threatened or contemplated.

 

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

 

(i)           Insolvency.
No petition has been filed by Seller and to Seller’s knowledge, no petition has been filed against Seller, under the federal
bankruptcy code or any similar state or federal law.

 

(j)           Operating
Agreements and Equipment Leases. To Seller’s actual knowledge, the lists of Operating Agreements, set forth on the Property
Agreements Schedule are true, correct and complete, and such documents have not been materially modified or materially amended,
except as shown in such list, and Seller has delivered true, correct and complete copies of all such documents to Purchaser (which
shall include submission to the Data Room).

 

(k)          Bookings.
Schedule 5.1(j) sets forth a correct list, in all material respects, of all Bookings for the Hotel as of the Effective
Date.

 

(l)           Employees.
On the date hereof Seller employs in the operation of the Property thirty (38) full time employees, fourteen (14) part-time employees
and three (3) on-call employees (collectively, the “Employees”). The list of Employees is, to Seller’s
actual knowledge, true and correct in all material respects. Neither Seller nor Hotel Manager is a party to any union contract
or collective bargaining agreement applicable to the Employees. To Seller’s actual knowledge, there are no labor or employment
strikes, boycotts, picketing or other union organizing activities currently in progress against Seller or the Property. Seller
has not received written notice from any governmental authority relating to unfair labor proceedings, strikes or other employee-related
complaints pending or threatened with respect to the Property.

 

(m)         Financials.
The operating statements provided to Purchaser by Seller pursuant to Section 3.1 hereof (the “Financial Statements”)
to Seller’s actual knowledge, accurately set forth the financial results of operation of the Hotel.

 

(n)          Vouchers.
A list of outstanding Vouchers is set forth in Schedule G, and Seller shall provide Purchaser with an updated list of outstanding
Vouchers concurrently with the delivery of the Preliminary Statement.

 

    	 	15	 

     

    

 

(o)          No
Defaults. Seller has not received any written notice of any default and has no actual knowledge of any fact or circumstance
which could, with the giving notice and/or passage of time, become a default, on the part of Seller under the Operating Agreements
(which default has not subsequently been waived or remedied in all material respects) which would materially and adversely affect
the Property. Seller has not received any written notice of any default and has no actual knowledge of any fact or circumstance
which could, with the giving notice and/or passage of time, become a default, suspension, revocation, cancellation or termination
from any governmental authority (which, in the case of any such notice, has not been waived, reinstated, reissued or otherwise
remedied) of any assignable license or permit required in connection with the operation of the Property which would materially
and adversely affect the operation of the Property.

 

5.2          Knowledge
Defined. References to the “knowledge” or “actual knowledge” of Seller shall refer only to the actual
knowledge of Gehad Hadidi (the “Designated Agent”), the asset manager of the Seller, without any duty of inquiry
and shall not be construed, by imputation or otherwise, to refer to the knowledge of Seller, or any affiliate of Seller, to any
manager, or to any other officer, agent, manager, representative or employee of Seller or any affiliate thereof or to impose upon
such Designated Agent any duty to investigate the matter to which such actual knowledge, or the absence thereof, pertains except
as described in this Section.

 

5.3          Survival,
Limitations on Liability and Indemnity. The representations and warranties of Seller in Section 5.1 of this Agreement,
shall survive the Closing for a period of six (6) months at which time such representations and warranties shall terminate in all
respects unless written notice of any such breach has been delivered to Seller prior to such date. From and after the Closing,
subject to the limitations set forth in this Section, Seller shall indemnify and hold the Purchaser, its affiliates, members and
partners, and the partners, shareholders, officers, directors, employees, representatives and agents of each of the foregoing (collectively,
 “Purchaser Related Entities”) harmless from and against any and all actual, out-of-pocket costs, fees, expenses,
damages, deficiencies, interest and penalties (including, without limitation, reasonable attorneys’ fees and disbursements)
suffered or incurred by any such indemnified party in connection with any and all losses, liabilities, claims, damages and expenses
(“Losses”), arising out of, or in any way relating to, any breach of any representation or warranty of the Seller
contained in Section 5.1 of this Agreement or in any document delivered by Seller in connection with the Closing. Notwithstanding
the foregoing, Seller shall have no liability for a breach of any representation or warranty contained herein in the event that:
(i) Purchaser, its employees or attorneys knew that such representation or warranty was inaccurate prior to Closing or (ii) the
Tenant Estoppel Certificate (if delivered to Purchaser prior to Closing) or any document or report furnished to Purchaser, its
employees, attorneys or consultants, and, as to consultants only, to the extent such document or report is in the realm of their
area of expertise, shall have disclosed that such representation or warranty was inaccurate prior to Closing or (iii) to the extent
any breach is caused, in whole or part, due to the neglect or actions of Purchaser or a Purchaser Related Entity. No claims shall
be made for a breach of a representation or warranty by Seller hereunder until the aggregate amount of all such claims shall exceed
Twenty-Five Thousand Dollars ($25,000), in which event Seller shall be liable for the full amount of all such claims; provided
that in no event shall Seller be liable for any breach of representations or warranties herein in excess of Five Hundred Thousand
Dollars ($500,000) in the aggregate. The provisions of this Section 5.3 shall survive the Closing.

 

    	 	16	 

     

    

 

5.4          Covenants
of Seller. Seller hereby covenants with Purchaser as follows:

 

(a)          From
and after the Effective Date hereof until the Closing or earlier termination of this Agreement, Seller shall operate and maintain
the Property in a manner generally consistent with the manner in which Seller has operated and maintained the Property prior to
the date hereof, including, without limitation, maintaining Seller’s existing insurance coverage with respect to the Property.

 

(b)          From
the expiration of the Inspection Period until the Closing or earlier termination of this Agreement, Seller shall not enter into
any new lease, operating agreement, construction contract or equipment lease affecting the Property or any amendment, modification,
supplement, extension, or termination of the Lease or any Operating Agreement or equipment lease (each, “New Business”)
outside of the ordinary course of its business which cannot be terminated at Closing without penalty, without first obtaining Purchaser’s
prior written consent to the same, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however,
that any New Business in a contract amount exceeding $10,000 that is not fully paid by Seller prior to Closing, shall require Purchaser’s
prior written consent, which may be granted or withheld in Purchaser’s sole and absolute discretion. Purchaser agrees to
notify Seller in writing within five (5) business days after its receipt thereof of either its approval or disapproval of such
matter; in the event Purchaser fails to notify Seller in writing of its approval or disapproval within the five (5) business day
time period for such purpose set forth above, such failure shall be deemed the approval by Purchaser.

 

(c)          Seller
shall have the right to terminate the Lease at any time. If not so terminated, Seller shall use its best efforts to obtain, from
the tenant under the Lease, and deliver to Purchaser prior to Closing, a duly-executed written estoppel certificate, materially
in the form set forth on Exhibit I, attached hereto or such other commercially reasonable form agreed to by Tenant. 
A signed certificate is referred to herein as a “Tenant Estoppel.”

 

(d)          In
order to enable Purchaser (or its affiliates or any assignees of the same) to comply with reporting requirements, Seller consents
to Purchaser (or its agents, representatives, auditor or accountants (the “Auditors”)) performing a full audit
of the Property and all financial matters associated with the same, including without limitation, an audit in compliance with SEC
Rule 3-05 and/or SEC Rule 3-14 of Regulation S-X or such other SEC rules or requirements (the “Audit”). In connection
with the Audit, Seller agrees to provide Purchaser and the Auditors access to and copies of such records, documents, ledgers, bank
statements and any other information in addition to those materials described in Section 3.1, including without limitation,
Seller’s most current financial statements relating to the financial operation of the Property for the current fiscal year
and, the two (2) most recent pre-acquisition full fiscal years (or portions thereof if the Hotel has been operating for less than
two years), support for the Audit of fixed assets, construction costs, basis, and any other financial matters relating to the Property
(the “Financial Records”). In connection with the Audit, prior to the Closing, Seller shall allow Auditors access
to the Hotel and the Property with reasonable workspace accommodations to the extent available, to conduct such Audit, and access
to such documents and records required by such Auditors and will cooperate with any Auditors of Purchaser. In addition, for a period
of two (2) years after the Closing, Seller shall continue to be obligated to promptly provide to Purchaser any additional Financial
Records requested by the Auditors relating to the period prior to Closing. Seller’s actual out-of-pocket costs and expenses
incurred in connection with the Audit plus reimbursement for the time spent for in-house parties of Seller shall be reimbursed
by Purchaser in an amount up to Twenty-Five Thousand Dollars ($25,000) at hourly rates based upon the current rates of pay for
Seller’s employees involved in the Audit. Any time or expenses incurred in excess of $25,000 must be approved in advance
by Purchaser. Seller understands that certain of the Financial Records may be included in filings required to be made by Purchaser
(or its affiliates or any assignees of the same) with the U.S. Securities and Exchange Commission. This Section 5.4(d)
shall survive Closing.

 

    	 	17	 

     

    

 

(e)          Until
the Closing or earlier termination of this Agreement, Seller shall advise Purchaser in writing of any written notice Seller receives
from any governmental authority relating to the material violation of any law or ordinance regulating the condition or use of the
Property.

 

(f)           From
the Effective Date hereof until the Closing or earlier termination of this Agreement, without the prior consent of Purchaser, which
may be withheld in Purchaser’s sole discretion, Seller shall not enter into any collective bargaining agreements.

 

(g)          From
and after the Effective Date through and including the Closing Date or until the earlier termination of this Agreement, Seller
shall not, without the prior consent of Purchaser, commence, settle any claim, suit, action, litigation, arbitration or other similar
matter (including employment related matters) that would materially and adversely affect, or otherwise be binding on, Purchaser
or the Property from and after the Closing Date.

 

(h)          From
the Effective Date hereof until the Closing or earlier termination of this Agreement, Seller shall not accept any bookings or reservations
for guest, conference, meeting or banquet rooms or other facilities at the Hotel other than in the ordinary course of Seller’s
business; provided, however, that Seller shall not issue any Vouchers or “comps” during such period redeemable for
periods after Closing if, as a result of such issuance, the value of all such outstanding Vouchers and “comps”, as
of the Closing Date, exceeds $10,000.

 

(i)           Commencing
three (3) business days prior to Closing, Seller shall allow, and shall cause Hotel Manager to allow, Purchaser reasonable access
to the Hotel to start setting up Purchaser’s office systems in anticipation of the transition of the Hotel to future operation
by Purchaser; provided, however, that in no event shall Purchaser’s access or related actions interfere, in any material
respect, with the management or operation of the Hotel.

 

(j)           Commencing
five (5) business days prior to the Closing Date, Purchaser may conduct interviews and evaluate employment applications of those
parties who may seek employment at the Property following Closing, and Seller shall reasonably cooperate with Purchaser’s
efforts to conduct such interviews, including, allowing Purchaser access to reasonable meeting space to conduct such interviews
in such a manner as to reasonably maintain Employee privacy.  In addition, with respect to the Hotel’s General Manager,
Director of Finance or Controller, Director of Sales and Marketing and Director of Human Resources (or the equivalent of each of
the foregoing) (the “Key Employees”), Seller acknowledges and agrees that Purchaser shall have the right to
interview such Key Employees during and after the expiration of the Inspection Period, provided that Seller shall have the right
to have a representative present at such interviews, and Seller shall reasonably cooperate with Purchaser’s efforts to conduct
such interviews of such Key Employees.

 

    	 	18	 

     

    

 

(k)          Seller
shall use commercially reasonable efforts to cause the both Hotel Management Agreement and the Existing Franchise Agreement to
be terminated, at Seller’s sole cost and expense, at Closing.

 

(l)           Seller
shall file a Request for Tax Clearance Application (Form 5156) with the Michigan Department of Treasury within two (2) business
days after the expiration of the Inspection Period and promptly deliver a copy of the certificate or notice of estimated tax liability
issued by the State of Michigan to Purchaser.

 

5.5          Representations
and Warranties of Purchaser. Purchaser hereby represents and warrants to Seller:

 

(a)          Organization
and Authority. Purchaser has been duly organized, is validly existing and in good standing under the laws of the State of Rhode
Island. Purchaser has the full right, power and authority to purchase the Property as provided in this Agreement and to carry out
Purchaser’s obligations hereunder, and all requisite action necessary to authorize Purchaser to enter into this Agreement
and to carry out its obligations hereunder have been, or by the Closing will have been, taken. The person signing this Agreement
on behalf of Purchaser is authorized to do so.

 

(b)          Pending
Actions. There is no action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding pending
against Purchaser which, if adversely determined, could individually or in the aggregate materially interfere with the consummation
of the transaction contemplated by this Agreement.

 

(c)          OFAC.
Purchaser and, to Purchaser’s actual knowledge, each person or entity owning an interest in Purchaser is (i) not currently
identified on the Specially Designated Nationals and Blocked Persons List maintained by the OFAC and/or on any other similar List,
(ii) not a person or entity with whom a citizen of the United States is prohibited to engage in transactions by any trade
embargo, economic sanction, or other prohibition of United States law, regulation, or Executive Order of the President of the United
States, and (iii) not an “Embargoed Person”, to Purchaser’s actual knowledge, none of the funds or other
assets of Purchaser constitute property of, or are beneficially owned, directly or indirectly, by any Embargoed Person, and to
Purchaser’s actual knowledge, no Embargoed Person has any interest of any nature whatsoever in Purchaser (whether directly
or indirectly).

 

5.6          Survival
of Purchaser’s Representations and Warranties. Except as expressly provided herein to the contrary the representations
and warranties of Purchaser in this Agreement shall not survive the Closing.

 

5.7          Covenants
of Purchaser. Purchaser hereby covenants with Seller that Purchaser shall, in connection with its investigation of the Property
during the Inspection Period, inspect the Property for the presence of hazardous substances. Purchaser hereby assumes full responsibility
for such inspections and irrevocably waives any claim against Seller arising from the presence of hazardous substances on the Property.

 

    	 	19	 

     

    

 

5.8          Employee
Matters.

 

(a)          Certain
Definitions. “Employee Liabilities” means all obligations and liabilities, actual or contingent with respect
to Employees, whether accruing before or after Closing, including any and all obligations or liabilities: for (i) wages, salaries,
Employee leave, fringe benefits, and payroll taxes, (ii) contributions and other payments to any employee benefit plan, (iii) worker’s
compensation claims based on any real or alleged occurrence and (iv) claims or penalties under applicable laws governing employer/employee
relations (including the National Labor Relations Act and other labor relations laws, fair employment standards Laws, fair employment
practices and anti-discrimination Laws, the Worker Adjustment and Retraining Notification Act of 1988, ERISA, the Multi-Employer
Pension Plan Amendments Act, and the Consolidated Omnibus Budget Reconciliation Act of 1985).

 

(b)          Termination
of Employees; WARN Act. On the Closing Date the employment of all Employees shall be terminated by Seller. (For purposes of
Worker Adjustment and Retraining Notification Act (“WARN Act”) liability, the Closing Date is considered to
be the “effective date of sale”). With respect to such terminations, Purchaser shall extend or cause to be extended
offers of employment to a sufficient number of Employees on sufficient terms and conditions to avoid applicability of the Federal
and State WARN Act to the transaction contemplated by this Agreement and shall provide Seller with reasonable evidence thereof
upon request following Closing. Purchaser shall comply with the terms, provisions, requirements and obligations in the WARN Act
and shall not close the Hotel or terminate the employment of the requisite number of Employees within a period of ninety (90) days
after the Closing Date if such closure or terminations of employment would result in either (i) a “plant closing”
as defined in the WARN Act or any equivalent state law, or (ii) a “mass layoff” under the WARN Act or other legal
requirement. Purchaser shall indemnify, defend and hold harmless the Seller from and against any damages that may be incurred by,
or asserted against, Seller arising out of or relating to (A) Purchaser’s acts or omissions in connection with the continued
employment and retention, or failure to continue to employ and retain any of the requisite number of Employees, or (B) Purchaser’s
failure to take any action or provide any notice to Employees at the Hotel under the WARN Act or any applicable Michigan statutes
or (c) Purchaser’s failure to comply with its obligations under this Section 5.8(b). This Section 5.8(b)
shall survive the Closing.

 

(c)          Employee
Claims. Purchaser will not be obligated to give or pay any amount to any Employee, and Purchaser shall not have any liability
under any severance package or pension or profit sharing plan that Seller may have established with respect to the Property or
any of its employees. Seller will indemnify and hold Purchaser harmless from and against any loss, damage, liability, claim, cost
or expense (including, without limitation, reasonable attorneys’ fees) that may be incurred by, or asserted against, Purchaser
after the Closing which involves any matter relating to a past or present Employee or any Employee Liabilities to the extent concerning
acts or omissions occurring prior to the Closing (including, without limitation, any claims which have not yet been asserted as
of the Closing). Purchaser will indemnify and hold Seller harmless from and against any loss, damage, liability, claim, cost or
expense (including, without limitation, reasonable attorneys’ fees) that may be incurred by, or asserted against, Seller
after the Closing which involves any matter relating to a past or present Employee or any Employee Liabilities to the extent concerning
acts or omissions occurring on or subsequent to the Closing. The indemnities in this Section 5.8(c) apply, without
limitation, to all forms of labor and/or employment claims under state, federal or local law, whether brought in judicial, administrative
or other proceedings, private or public. Nothing in this Agreement shall require Purchaser to assume any obligations under any
employee benefit plans currently maintained for Employees unless otherwise required by law. The provisions of this Section 5.8(c)
shall survive the Closing.

 

    	 	20	 

     

    

 

5.9          Inventory
of Baggage. The representatives of Seller and/or Hotel Manager, and of Purchaser, shall prepare an inventory of baggage at
the Hotel as of 12:00 p.m. on the Closing Date (which inventory of baggage shall be binding on all parties thereto) of (a) all
luggage, valises and trunks checked or left in the care of the Hotel by guests then or formerly in the Hotel, (b) parcels,
laundry, valet packages and other property of guests checked or left in the care of the Hotel by guests then or formerly in the
Hotel, (c) all luggage or other property of guests retained by Seller as security for any unpaid accounts receivable, and
(d) all items contained in the Hotel lost and found. Purchaser shall be responsible from and after the Closing Date for all
baggage and other items listed in such inventory of baggage, and Purchaser shall indemnify and hold Seller harmless from and against
any claim, liability, cost or expense (including reasonable attorneys’ fees) incurred by Seller with respect thereto. Seller
shall indemnify and hold Purchaser harmless from any other liability or claims with respect to such inventory of baggage arising
prior to the Closing Date. The provisions of this Section 5.9 shall survive the Closing.

 

ARTICLE
VI

 

DEFAULT

 

6.1          Default
by Purchaser. IF THE SALE OF THE PROPERTY IS NOT CONSUMMATED DUE TO ANY DEFAULT BY PURCHASER HEREUNDER, THEN SELLER SHALL,
AS ITS SOLE AND EXCLUSIVE REMEDY FOR SUCH DEFAULT, RETAIN AN AMOUNT EQUAL TO THE EARNEST MONEY AS LIQUIDATED DAMAGES. THE PARTIES
HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF A FAILURE TO CONSUMMATE THIS SALE DUE TO PURCHASER’S DEFAULT
HEREUNDER, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. AFTER NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING
ALL THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THE AMOUNT OF THE EARNEST MONEY IS A REASONABLE ESTIMATE OF THE DAMAGES
THAT SELLER WOULD INCUR IN SUCH EVENT. EACH PARTY SPECIFICALLY 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. THE FOREGOING IS NOT INTENDED TO LIMIT PURCHASER’S INDEMNITY OBLIGATIONS UNDER OTHER SECTIONS HEREOF.

 

    	 	21	 

     

    

 

6.2          Default
by Seller. In the event that the Closing does not occur due to Seller’s default under this Agreement and provided that
Purchaser is not then in default hereunder, Purchaser shall be entitled, as its sole remedy, either (a) to receive the return
of the Earnest Money and, if Seller’s default is the result of Seller’s willful acts or omissions in contravention
of acts necessary for the Closing to occur, reimbursement from Seller for the out-of-pocket expenses actually incurred by Purchaser
in connection with the negotiation and performance of this Agreement, including the costs of Purchaser’s due diligence investigations
and financing fees, in an amount not to exceed One Hundred Thousand and No/100 Dollars ($100,000.00) (“Deal Costs”),
which return and reimbursement shall operate to terminate this Agreement and release Seller from any and all other liability hereunder,
or (b) to enforce specific performance of Seller’s obligations hereunder provided that such action is brought within
sixty (60) days after such default.  Purchaser shall be deemed to have elected to terminate this Agreement and receive a refund
of the Earnest Money and Deal Costs if Purchaser fails to file suit for specific performance against Seller in a court having jurisdiction
in the county and state in which the Property is located, on or before the date that is sixty (60) following the date upon which
Closing was to have occurred.  The foregoing is not intended to limit Seller’s indemnity obligations under other sections
hereof or obligation to reimburse attorneys’ fees under Section 10.22.

 

ARTICLE
VII

 

RISK
OF LOSS

 

7.1          Minor
Damage. In the event of loss or damage to the Property or any portion thereof which is not “major” (as hereinafter
defined), this Agreement shall remain in full force and effect provided Seller performs any necessary repairs or, at Seller’s
option, assigns to Purchaser all of Seller’s right, title and interest to any claims and proceeds Seller may have with respect
to any casualty insurance policies or condemnation awards relating to the premises in question. In the event that Seller elects
to perform repairs upon the Property, Seller shall use reasonable efforts to complete such repairs promptly and the date of Closing
shall be extended a reasonable time in order to allow for the completion of such repairs. If Seller elects to assign a casualty
claim to Purchaser, the Purchase Price shall be reduced by an amount equal to the deductible amount under Seller’s insurance
policy. Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser.

 

7.2          Major
Damage. In the event of a “major” loss or damage, either Seller or Purchaser may terminate this Agreement by written
notice to the other party, in which event the Earnest Money shall be returned to Purchaser. If neither Seller nor Purchaser elects
to terminate this Agreement within ten (10) days after Seller sends Purchaser written notice of the occurrence of major loss or
damage, then Seller and Purchaser shall be deemed to have elected to proceed with Closing, in which event Seller shall, at Seller’s
option, either (a) perform any necessary repairs, or (b) assign to Purchaser all of Seller’s right, title and interest
to any claims and proceeds Seller may have with respect to any casualty insurance policies or condemnation awards relating to the
premises in question. In the event that Seller elects to perform repairs upon the Property, Seller shall use reasonable efforts
to complete such repairs promptly and the date of Closing shall be extended a reasonable time in order to allow for the completion
of such repairs. If Seller elects to assign a casualty claim to Purchaser, the Purchase Price shall be reduced by an amount equal
to the deductible amount under Seller’s insurance policy. Upon Closing, full risk of loss with respect to the Property shall
pass to Purchaser.

 

    	 	22	 

     

    

 

7.3          Definition
of “Major” Loss or Damage. For purposes of Sections 7.1 and 7.2 hereof, “major”
loss or damage refers to the following: (i) loss or damage to the Property or any portion thereof occurring after the Effective
Date such that the cost of repairing or restoring the premises in question to a condition substantially identical to that of the
premises in question prior to the event of damage would be, in the opinion of an architect selected by Seller and reasonably approved
by Purchaser, equal to or greater than Four Hundred Thousand and No/100 Dollars ($400,000), and (ii) any loss due to a condemnation
which permanently and materially impairs the current use of the Property. If Purchaser does not give notice to Seller of Purchaser’s
reasons for disapproving an architect within five (5) business days after receipt of notice of the proposed architect, Purchaser
shall be deemed to have approved the architect selected by Seller.

 

ARTICLE
VIII

 

COMMISSIONS

 

8.1          Brokerage
Commissions. In the event the transaction contemplated by this Agreement is consummated, but not otherwise, Seller agrees to
pay to CB Richard Ellis (“Broker”) at Closing a brokerage commission pursuant to a separate written agreement
between Seller and Broker. Each party agrees that should any claim be made for brokerage commissions or finder’s fees by
any broker or finder other than the Broker by, through or on account of any acts of said party or its representatives, said party
will indemnify and hold the other party free and harmless from and against any and all loss, liability, cost, damage and expense
in connection therewith. The provisions of this Section 8.1 shall survive Closing or earlier termination of this Agreement.

 

ARTICLE
IX

 

DISCLAIMERS
AND WAIVERS

 

9.1          No
Reliance on Documents. Except for the representations of the Seller in Section 5.1 hereof and in the documents
to be delivered by Seller at Closing under Section 4.2 hereof (collectively, the “Seller Representations”),
Seller makes no representation or warranty as to the truth, accuracy or completeness of any materials, data or information delivered
by Seller to Purchaser in connection with the transaction contemplated hereby. Purchaser acknowledges and agrees that all materials,
data and information delivered by Seller to Purchaser in connection with the transaction contemplated hereby are provided to Purchaser
as a convenience only and that any reliance on or use of such materials, data or information by Purchaser shall be at the sole
risk of Purchaser, except as otherwise expressly stated herein. Without limiting the generality of the foregoing provisions, Purchaser
acknowledges and agrees that (a) any environmental or other report with respect to the Property which is delivered by Seller
to Purchaser shall be for general informational purposes only, (b) Purchaser shall not have any right to rely on any such
report delivered by Seller to Purchaser, but rather will rely on its own inspections and investigations of the Property and any
reports commissioned by Purchaser with respect thereto, and (c) neither Seller, any affiliate of Seller nor the person or
entity which prepared any such report delivered by Seller to Purchaser shall have any liability to Purchaser for any inaccuracy
in or omission from any such report or in verbal communication.

 

    	 	23	 

     

    

 

9.2          Disclaimers.
EXCEPT FOR THE SELLER REPRESENTATIONS, SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY
KIND OR CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS
AS TO HABITABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER’S LIMITED WARRANTY OF TITLE
TO BE SET FORTH IN THE DEED), ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING
HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS, THE TRUTH, ACCURACY
OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER
MATTER OR THING REGARDING THE PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL AND CONVEY TO PURCHASER
AND PURCHASER SHALL ACCEPT THE PROPERTY “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT OF THE SELLER REPRESENTATIONS.
PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES,
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION,
PROPERTY INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED BY SELLER, THE MANAGER OF THE PROPERTY,
OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY,
ORALLY OR IN WRITING, OTHER THAN THE SELLER REPRESENTATIONS. PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL
CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS
THEREOF, AS PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR
CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY
SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR EMPLOYEES WITH RESPECT THERETO,
OTHER THAN THE SELLER REPRESENTATIONS. SUBJECT TO THE SELLER REPRESENTATIONS, UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT
ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY NOT
HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED
AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS,
DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’
FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST
SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF
ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING, WITHOUT LIMITATION,
ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. PURCHASER
AGREES THAT SHOULD ANY CLEANUP, REMEDIATION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS ON THE PROPERTY
BE REQUIRED AFTER THE DATE OF CLOSING AND DURING PURCHASER’S OWNERSHIP OF THE PROPERTY, SUCH CLEAN-UP, REMOVAL OR REMEDIATION
SHALL BE PERFORMED AT NO COST TO SELLER AND SELLER SHALL NOT BE LIABLE TO PURCHASER FOR SUCH CLEAN-UP, REMOVAL OR REMEDIATION.
AS PART OF THE PROVISIONS OF THIS SECTION 9.2, BUT NOT AS A LIMITATION THEREON, PURCHASER HEREBY AGREES, REPRESENTS
AND WARRANTS THAT THE MATTERS RELEASED HEREIN ARE NOT LIMITED TO MATTERS WHICH ARE KNOWN OR DISCLOSED, AND PURCHASER HEREBY WAIVES
ANY AND ALL RIGHTS AND BENEFITS WHICH IT NOW HAS, OR IN THE FUTURE MAY HAVE CONFERRED UPON IT, BY VIRTUE OF THE PROVISIONS OF FEDERAL,
STATE OR LOCAL LAW, RULES OR REGULATIONS.

 

    	 	24	 

     

    

 

9.3          Effect
and Survival of Disclaimers. Seller and Purchaser acknowledge that the Property being sold subject to the provisions of this
Article IX is a material condition of the transaction contemplated by this Agreement. Seller and Purchaser agree
that the provisions of this Article IX shall survive Closing.

 

ARTICLE
X

 

MISCELLANEOUS

 

10.1        Confidentiality.
Prior to Closing, Purchaser and its representatives shall hold in strictest confidence all data and information obtained with respect
to Seller or its business, whether obtained before or after the execution and delivery of this Agreement, and shall not disclose
the same to others; provided, however, that Purchaser may disclose such data and information to the employees, lenders, investors,
consultants, accountants and attorneys of Purchaser provided that such persons are informed of the confidentially provisions hereof.
In the event this Agreement is terminated or Purchaser fails to perform hereunder, Purchaser shall promptly (a) return to Seller
any statements, documents, schedules, exhibits or other written information obtained from Seller in connection with this Agreement
or the transaction contemplated herein; and (b) deliver, without representation or warranty of any kind or nature, copies of the
results of and any reports for any and all non-proprietary third-party tests and studies of the Property in Purchaser’s possession
or control (whether obtained from Seller or otherwise) so long as Seller reimburses Purchaser for one-half of the actual costs
of those non-proprietary tests and studies obtained by Purchaser with respect to the Property. Except for disclosures required
by law or governmental regulations applicable to such party, and except that (i) Seller may issue a press release announcing
the upcoming sale of the Property upon expiration of the Inspection Period provided such press release does not name Purchaser
or disclose the terms and conditions of this Agreement and (ii) Purchaser may disclose information as its reasonably determines
is necessary in accordance with applicable law in connection with an offering of securities (whether by Purchaser, its affiliates
or any assignees of the same), the parties agree that prior to Closing no party shall, with respect to this Agreement and the transactions
contemplated hereby, contact or conduct negotiations with public officials, make any public announcements or issue press releases
regarding this Agreement or the transactions contemplated hereby to any third party without the prior written consent of the other
party hereto or except as provided in subsection (ii), above. In the event of a breach or threatened breach by Purchaser or its
agents or representatives of this Section 10.1, Seller shall be entitled to an injunction restraining Purchaser or
its agents or representatives from disclosing, in whole or in part, such confidential information. Nothing herein shall be construed
as prohibiting Seller from pursuing any other available remedy at law or in equity for such breach or threatened breach. The provisions
of this Section 10.1 shall survive Closing.

 

    	 	25	 

     

    

 

10.2        Public
Disclosure. Prior to Closing, any release to the public of information with respect to the sale contemplated herein or any
matters set forth in this Agreement will be made only in the form approved by Purchaser and Seller and their respective counsel,
except as permitted under Section 10.1, above.

 

10.3        Discharge
of Obligations. The acceptance of the Deed by Purchaser shall be deemed to be a full performance and discharge of every representation
and warranty made by Seller herein and every agreement and obligation on the part of Seller to be performed pursuant to the provisions
of this Agreement, except those which are herein specifically stated to survive Closing.

 

10.4        Assignment.
Purchaser may assign this Agreement and its rights hereunder, without the consent of Seller, but with notice to Seller, not later
than three (3) business days prior to Closing, to an entity to be formed by Purchaser provided that such entity is an affiliate
of Purchaser. Except for the foregoing, Purchaser may not sell or assign its rights under this Agreement without first obtaining
Seller’s written approval, which approval may not be unreasonably withheld, conditioned or delayed. Any transfer, directly
or indirectly, of any stock, partnership interest or other ownership interest in Purchaser without Seller’s written approval,
which approval may not be unreasonably withheld, conditioned or delayed, except as permitted above, shall constitute a default
by Purchaser under this Agreement. Without limitation of the foregoing, no assignment by Purchaser shall relieve Purchaser of any
of its obligations or liabilities pursuant to this Agreement.

 

10.5        Notices.
Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, or (b) reputable overnight
delivery service with proof of delivery, or (c) United States Mail, postage prepaid, registered or certified mail, return
receipt requested or (d) email transmission, with a copy sent to the intended addressee at the address set forth below, or
to such other address or to the attention of such other person as the addressee shall have designated by written notice sent in
accordance herewith, and shall be deemed to have been given either at the time of personal delivery, or, in the case of expedited
delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or, in the
case of email transmission, as of the date of the email transmission provided that a hard copy of such email is also sent to the
intended addressee by means described in clauses (a), (b) or (c) above. Any notices sent hereunder by legal counsel representing
either party to this Agreement shall be deemed as having been delivered by such party pursuant to the provisions of this Section 10.5.
Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to this Agreement shall be as
follows:

 

    	 	26	 

     

    

 

	If to Seller:	Grand Traverse Hotel Properties, LLC,
	 	c/o Hadidi Capital, LLC
	 	428 Broadway, 4th Floor
	 	New York, New York 10013
	 	Attention: Gehad Hadidi
	 	Telephone No. (646) 665-1797 
	 	Email: gehad@hadidicapital.org
	 	 
	With a copy to:	Honigman Miller Schwartz and Cohn LLP
	 	39400 Woodward Avenue
	 	Suite 101
	 	Bloomfield Hills, Michigan 48304-5151
	 	Attn:  Howard Goldman, Esq.
	 	Telephone Number: (248) 566-8462
	 	Email: hgoldman@honigman.com
	 	 
	If to Purchaser:	TPG Hotels & Resorts
	 	6000 Lake Forest Drive NW
	 	Atlanta, Georgia 30328
	 	Attention:  Robert J. Leven
	 	Telephone:  (678) 349-5000
	 	Email: rleven@procaccianti.com
	 	 
	with a copy to:	Procaccianti Companies
	 	1140 Reservoir Avenue
	 	Cranston, Rhode Island 02920-6320
	 	Attention:  Ron M. Hadar, General Counsel 
	 	Telephone:  (401) 946-4600, Ext. 140
	 	Email: rhadar@procaccianti.com
	 	 
	with a copy to:	Iaffaldano, Shaw & Young LLP
	 	601 S. Figueroa Street, Suite 4450
	 	Los Angeles, California 90017
	 	Attention: Frank W. Iaffaldano, Esq.
	 	Telephone: (213) 455-3353
	 	Email: frank@isylaw.com

 

10.6        Binding
Effect. This Agreement shall not be binding in any way upon Seller unless and until Seller shall execute and deliver the same
to Purchaser.

 

10.7        Modifications.
This Agreement cannot be changed orally, and no executory agreement shall be effective to waive, change, modify or discharge it
in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any
waiver, change, modification or discharge is sought.

 

    	 	27	 

     

    

 

10.8        Calculation
of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act
or event after which the designated period of time begins to run is not to be included and the last day of the period so computed
is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State in which the Property
is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday.
The final day of any such period shall be deemed to end at 5:00 p.m., local time at the Property. Time is of the essence of each
and every provision of this Agreement.

 

10.9        Successors
and Assigns. The terms and provisions of this Agreement are to apply to and bind the permitted successors and assigns of the
parties hereto.

 

10.10      Entire
Agreement. This Agreement, including the Exhibits, contains the entire agreement between the parties pertaining to the subject
matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such
subject matter.

 

10.11      Further
Assurances. Each party agrees that it will without further consideration execute and deliver such other documents and take
such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more
effectively the purposes or subject matter of this Agreement (but without expanding the obligations or liability of either party
hereunder in any material manner). Without limiting the generality of the foregoing, Purchaser shall, if requested by Seller, execute
acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with respect to the Property. The provisions
of this Section 10.11 shall survive Closing.

 

10.12      Counterparts.
This Agreement may be executed in counterparts, and all such executed counterparts shall constitute the same agreement. It shall
be necessary to account for only one such counterpart in proving this Agreement.

 

10.13      Severability.
If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder
of this Agreement shall nonetheless remain in full force and effect.

 

10.14      Applicable
Law. THIS AGREEMENT IS PERFORMABLE IN THE STATE OF MICHIGAN AND SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF THE STATE OF MICHIGAN. SELLER AND PURCHASER HEREBY IRREVOCABLY
SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE STATE OF MICHIGAN IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE
HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING IN THE STATE OF MICHIGAN BY A JUDGE AND WAIVE THEIR RIGHT TO A TRIAL BY
JURY. PURCHASER AND SELLER AGREE THAT THE PROVISIONS OF THIS SECTION 10.14 SHALL SURVIVE THE CLOSING OF THE TRANSACTION
CONTEMPLATED BY THIS AGREEMENT.

 

    	 	28	 

     

    

 

10.15      No
Third Party Beneficiary. The provisions of this Agreement and of the documents to be executed and delivered at Closing are
and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party (including, without limitation,
Title Company and Broker), and accordingly, no third party shall have the right to enforce the provisions of this Agreement or
of the documents to be executed and delivered at Closing. The provisions of this Section 10.15 shall survive the closing
of the transaction contemplated by this Agreement.

 

10.16      Exhibits
and Schedules. The following schedules or exhibits attached hereto shall be deemed to be an integral part of this Agreement:

 

	(a)	Exhibit A -	Legal Description of the Land
	 	 	 
	(b)	Exhibit B -	Property Agreements Schedule
	 	 	 
	(c)	Exhibit C -	Deed 
	 	 	 
	(d)	Exhibit D -	Bill of Sale 
	 	 	 
	(e)	Exhibit E -	Assignment of Operating Agreements and Intangibles
	 	 	 
	(f)	Exhibit F -	FIRPTA Certificate
	 	 	 
	(g)	Exhibit G -	Procedure for Credit and Prorations
	 	 	 
	(h)	Exhibit H -	Form of Consent to Assignment of Warranty
	 	 	 
	(i)	Exhibit I -	Form of Tenant Estoppel
	 	 	 
	(j)	Exhibit J -	Notice to Tenant
	 	 	 
	(k)	Schedule 5.1(m) -	Bookings
	 	 	 
	(l)	Schedule G -	Vouchers

 

10.17      Captions.
The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and
for any purpose, to limit or define the text of any section or any subsection hereof.

 

10.18      Construction.
The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation
of this Agreement or any exhibits or amendments hereto.

 

    	 	29	 

     

    

 

10.19      Termination
of Agreement. It is understood and agreed that if either Purchaser or Seller terminates this Agreement pursuant to a right
of termination granted hereunder, such termination shall operate to relieve Seller and Purchaser from all obligations under this
Agreement, except for such obligations as are specifically stated herein to survive the termination of this Agreement.

 

10.20      Survival.
The provisions of the following Sections of this Agreement shall survive Closing and shall not be merged into the execution and
delivery of the Deed: 3.1; the last paragraph of Section 4.2; 4.5; 5.3 (for the Survival Period);
5.4(d); 5.8(b); 5.8(c); 5.9; 8.1; Article IX; 10.1; 10.11; 10.14;
10.15; 10.22; and Exhibit G.

 

10.21      Escrow
Agent’s Agreement. Escrow Agent, as escrow agent, is executing this Agreement to confirm its agreement to serve as escrow
agent hereunder in accordance with the terms set forth in this Agreement and the supplementary instructions referenced in Section 1.7
hereof.

 

10.22      Attorneys’
Fees. If any action or proceeding is commenced by either party to enforce their rights under this Agreement or to collect damages
as a result of the breach of any of the provisions of this Agreement, the prevailing party in such action or proceeding, including
any bankruptcy, insolvency or appellate proceedings, shall be entitled to recover all reasonable costs and expenses, including,
without limitation, reasonable attorneys’ fees and court costs, in addition to any other relief awarded by the court.

 

    	 	30	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Agreement as of the Effective Date.

 

SELLER:

 

	GRAND TRAVERSE HOTEL PROPERTIES, LLC,	 
	a Michigan limited liability company	 
	 	 	 
	By:	/s/ Samir S. Alhadidi	 
	Name:	Samir S. Alhadidi	 
	Title:	Manager	 
	 	 	 
	PURCHASER:	 
	 	 
	THE PROCACCIANTI GROUP, LLC, 	 
	a Rhode Island limited liability company 	 
	 	 	 
	By:	/s/ James A. Procaccianti	 
	Name:	James A. Procaccianti	 
	Title:	Authorized Signatory	 
	 	 	 
	ESCROW AGENT, as Escrow Agent:	 
	 	 
	VANGUARD TITLE INSURANCE AGENCY, LLC	 
	 	 	 
	By:	/s/ John Apostol	 
	Name:	John Apostol	 
	Title:	President and General Counsel	 

 

    	 	S-1	 

     

    

 

Exhibit A

 

THE LAND

 

Lots 58-61 and the west 1⁄2 of Lot 62 Hannah
Lay & Co.’s Eleventh Addition to Traverse City, Section 3, Township 27 North, Range 11 West, Traverse County, Michigan.

 

    	 	A-1	 

     

    

 

Exhibit B

 

PROPERTY AGREEMENTS SCHEDULE

 

Operating Agreements:

 

1.

2.

3.

 

Equipment Leases:

 

1.

2.

3.

 

    	 	B-1	 

     

    

 

Exhibit C

 

DEED

 

Covenant
Deed

 

 

KNOW
ALL MEN BY THESE PRESENTS: That ______________, a michigan _______________, whose
address is ________________________, michigan _____ (“Grantor”), conveys to _________________, a Michigan _____________,
whose address is _________________, Michigan ______ (“Grantee”) the following described premises (the “Property”)
situated in Traverse City, County of Grand Traverse and State of Michigan to wit: 

 

See Exhibit A

 

for the amount as set forth in the accompanying
Real Estate Transfer Tax Valuation Affidavit being filed simultaneously.

 

SUBJECT TO the matters listed on Exhibit B
[TO BE BASED UPON THE PERMITTED EXCEPTIONS IN THE TITLE COMMITMENT] (the “Permitted Exceptions”).

 

TO HAVE AND TO HOLD the Property unto Grantee,
Grantee's heirs, successors and assigns, in fee simple forever, subject to the Permitted Exceptions. Grantor covenants and agrees
that the Property is free from encumbrances created by Grantor, except for the Permitted Exceptions, and will defend the Property
against the lawful claims and demands of all persons claiming by, through or under Grantor(s), but against no other claims or persons,
but subject to the Permitted Exceptions.

 

Public Act 591 of 1997 requires the following:
this Property may be located within the vicinity of farmland or a farm operation. Generally accepted agricultural and management
practices which may generate noise, dust, odors and other associated conditions may be used and are protected by the Michigan Right
to Farm Act.

 

The Grantor grants the Grantee the right to
make all division(s) under Section 108 of the Land Division Act, Act No. 288 of the Public Acts of 1967, as amended.

 

[SIGNATURES ON THE FOLLOWING PAGE]

 

    	 	C-1	 

     

    

 

Dated this ___ day of _________, 2018.

 

	 	__________________, a Michigan _______________
	 	 	 
	 	By:	                                
	 	Name:	 
	 	Its:	 

 

	STATE OF 	 	 	)
	 	SS.	 	 
	COUNTY OF  	 	 	)

 

The foregoing instrument was acknowledged before
me this day of _______, 2018, by _____________, the ____________ of __________________, a Michigan ____________, on behalf
of said company.

 

	 	________________________________
	 	Notary Public
	 	__________________County, Michigan
	 	My commission expires: ____________
	 	Acting in ______________ County

 

	
        County Treasurer’s Certificate

         

         
	
        City Treasurer’s Certificate

         

	
        Drafted By:

         

        Howard B. Goldman

        Honigman Miller Schwartz and Cohn LLP

        39400 Woodward Avenue

        Suite 101

        Bloomfield Hills, MI 48304-5151
	
        When Recorded Return To:

         

        GRANTEE
	
        Send Subsequent Tax Bills to:

         

        GRANTEE

 

Recording Fee: $.00

Tax I.D. No.:

 

    	 	C-2	 

     

    

 

Exhibit D

 

BILL
OF SALE

 

For good and valuable consideration,
the receipt of which is hereby acknowledged, ______________, a _______________ (“Seller”), does hereby, as of
this __________ day of ____________, sell, transfer and convey to __________________________________ (“Purchaser”),
without recourse or warranty, any and all Personal Property and Consumable Inventory, each as defined in that certain Purchase
and Sale Agreement by and between Seller and Purchaser dated _____, 20___ (the “Purchase Agreement”), pursuant
to which Seller is selling and Purchaser is buying that certain real property known as _____________________, ______________, and
more particularly described in Exhibit A attached hereto (the “Property”).

 

Purchaser acknowledges
that the sale of the Personal Property and Consumable Inventory is specifically made “as-is” and “where-is,”
without any representations or warranties express or implied, including, without limitation, implied warranties of fitness for
any particular purpose or merchantability or any other warranties whatsoever except as set forth in the Purchase Agreement. Purchaser
has not relied and will not rely on, and Seller is not liable for or bound by, any express or implied warranties, guaranties, statements,
representations or information pertaining to the personal property or relating thereto (including specifically, without limitation,
information packages distributed with respect to the Property) made or furnished by Seller, the property manager, or any agent
or real estate broker representing or purporting to represent Seller, to whomever made or given, directly or indirectly, orally
or in writing, except for the Seller Representations (as defined in the Purchase Agreement).

 

This Bill of Sale may be
executed in any number of counterparts, each of which shall be deemed an original and all of which, when taken together, shall
constitute one and the same instrument.

 

[Next page is signature page]

 

    	 	D-1	 

     

    

 

IN WITNESS WHEREOF, the
undersigned have executed this Bill of Sale as of the date first set forth above.

 

	 	SELLER:
	 	 	 
	 	 
	 	 	 
	 	By:	          
	 	Name:	 
	 	Title:	 
	 	 	 
	 	PURCHASER:
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	D-2	 

     

    

 

Exhibit E

 

ASSIGNMENT
AND ASSUMPTION OF LEASE, OPERATING AGREEMENTS, LICENSES, WARRANTIES AND INTANGIBLES 

 

THIS ASSIGNMENT AND ASSUMPTION
OF LEASE, OPERATING AGREEMENTS, LICENSES, WARRANTIES AND INTANGIBLES is made and entered into as of this ____ day of ___________,
____, by ________________, a __________________ (“Assignor”), and ________________, a __________________ (“Assignee”).

 

FOR GOOD AND VALUABLE CONSIDERATION,
the receipt and sufficiency of which are hereby acknowledged, effective as of the Effective Date (as defined below), and in connection
with the sale of that certain real property described in Exhibit A attached hereto (the “Property”) Assignor
hereby assigns and transfers unto Assignee all of its right, title, claim and interest in and under:

 

(A)         all
of Assignor’s right, title and interest in and to that certain ____________ Lease between Seller as landlord and ______________
LLC as tenant dated _________, 20__ (as amended, the “Lease”);

 

(B)        all
licenses (excluding liquor licenses), warranties and guaranties (express or implied) made by or received from any third party with
respect to any building, building component, structure, fixture, machinery, equipment, or material situated on, contained in any
building or other improvement situated on, or comprising a part of any building or other improvement situated on, any part of the
Property including, without limitation, those warranties and guaranties listed in Exhibit B attached hereto (collectively,
 “Warranties”);

 

(C)         all
of the service contracts listed in Exhibit C attached hereto (the “Service Contracts”); and

 

(D)         any
Intangibles (as defined in that certain Purchase and Sale Agreement dated as of ____________________, ____ between Assignor and
_________________________ (the “Purchase Agreement”)).

 

ASSIGNOR AND ASSIGNEE FURTHER
HEREBY AGREE AND COVENANT AS FOLLOWS:

 

1.          Effective
as of the Effective Date (as defined below), Assignee hereby accepts the assignment from Assignor of all of Assignor’s right,
title and interest in and to the Lease, Service Contracts, Warranties and Intangibles.

 

2.          Effective
as of the Effective Date, Assignee hereby assumes all of the owner’s obligations under the Lease, Service Contracts, Warranties
and Intangibles and agrees to indemnify Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage
or expense, including, without limitation, attorneys’ fees, accruing on or to be performed subsequent to the Effective Date
and arising out of the owner’s obligations under the Lease, Service Contracts, Warranties and Intangibles. Assignor agrees
to indemnify Assignee against and hold Assignee harmless from any and all cost, liability, loss, damage or expense, including,
without limitation, attorneys’ fees, accruing on or to be performed prior to the Effective Date and arising out of the owner’s
obligations under the Lease, Service Contracts, Warranties and Intangibles.

 

    	 	E-1	 

     

    

 

3.          In
the event of any litigation between Assignor and Assignee arising out of this Assignment, the losing party shall pay the prevailing
party’s costs and expenses of such litigation, including, without limitation, reasonable attorneys’ fees.

 

4.          This
Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors
in interest and assigns.

 

5.          This
Assignment shall be governed by and construed in accordance with the laws of the State of ________.

 

6.          This
Assignment is delivered pursuant to the Purchase Agreement.

 

7.          Assignee
acknowledges and agrees that, except as provided in the Purchase Agreement, the conveyance of the service contracts, warranties
and intangibles is specifically made “as-is” and “where-is,” without any representations or warranties
express or implied, including, without limitation, implied warranties of fitness for any particular purpose or merchantability
or any other warranties whatsoever. Assignee has not relied and will not rely on, and Assignor is not liable for or bound by, any
express or implied warranties, guaranties, statements, representations or information pertaining to the service contacts, warranties
or intangibles or relating thereto (including specifically, without limitation, information packages distributed with respect to
the property) made or furnished by Assignor, the property manager, or any agent or real estate broker representing or purporting
to represent Assignor, to whomever made or given, directly or indirectly, orally or in writing except for the Seller Representations.

 

8.          For
purposes of this Assignment, the “Effective Date” shall be the date of the Closing (as defined in the Purchase Agreement).

 

9.          This
Assignment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which, when taken
together, shall constitute one and the same document.

 

[Next page is signature page]

 

    	 	E-2	 

     

    

 

IN WITNESS WHEREOF, Assignor
and Assignee have executed this Assignment the day and year first above written.

 

	 	ASSIGNOR:
	 	 	 
	 	 
	 	 	 
	 	By:	                            
	 	Name:	 
	 	Title:	 
	 	 	 
	 	ASSIGNEE:
	 	 	 
	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	 	E-3	 

     

    

 

Exhibit A to Exhibit E

 

Legal Description

 

    	 	E-4	 

     

    

 

Exhibit B to Exhibit E

 

Warranties and Guaranties

 

All warranties and guaranties applicable to
the Property, if any

 

    	 	E-5	 

     

    

 

Exhibit C to Exhibit E

 

Service Contracts

 

    	 	E-6	 

     

    

 

Exhibit F

 

CERTIFICATE OF NON-FOREIGN STATUS

 

Section 1445 of the
Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest must withhold tax if the transferor (seller)
is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title
to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity. To inform
the transferee (buyer) that withholding of tax is not required upon the disposition of a U.S. real property interest by ___________________,
a ___________________ (“Seller”), the undersigned hereby certifies the following on behalf of Seller:

 

1.          Seller
is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal
Revenue Code and Income Tax Regulations);

 

2.          Seller
is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations;

 

3.          Seller’s
U. S. employer identification number is _______________; and

 

4.          Seller’s
office address is:

 

c/o _________________________

____________________________

____________________________

 

Seller understands that
this certification may be disclosed to the Internal Revenue Service by the transferee (buyer) and that any false statement contained
herein could be punished by fine, imprisonment, or both.

 

Under penalties of perjury,
the undersigned declares that he has examined this certification and to the best of his knowledge and belief it is true, correct
and complete, and he further declares that he has the authority to sign this document on behalf of Seller.

 

[Next page is signature page]

 

    	 	F-1	 

     

    

 

IN WITNESS WHEREOF, the undersigned has executed
this instrument as of the ____ day of __________, 20___.

 

	SELLER:	 	,
	 	a	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 	 

 

    	 	F-2	 

     

    

 

Exhibit G

 

PROCEDURE FOR CREDIT AND PRORATIONS

 

At Closing, Purchaser and
Seller shall prorate and adjust all items of income and expense and other amounts in accordance with this Exhibit G, and
the net amount consequently owing to Seller or Purchaser shall be added to or subtracted from the proceeds of the Purchase Price
payable to Seller at Closing. Beginning as close to the anticipated Closing Date as practicable, Seller shall, in consultation
with Purchaser and with Purchaser’s reasonable cooperation, cause to be prepared a prorations and credit statement (the “Preliminary
Statement”) which shall reflect all of the prorations, credits and other adjustments to the Purchase Price at Closing
required under this Exhibit G or under any other provision of this Agreement. As soon as Purchaser and Seller have agreed
upon the Preliminary Statement, they shall jointly deliver a mutually signed copy thereof to Escrow Agent. To the extent Purchaser
and Seller are unable to agree by Closing on any item on the Preliminary Statement, a reasonable estimation of such item shall
be used and such item shall be finally resolved on the Final Statement (defined below) pursuant to Section 13, below.

 

1.           Proration
of Taxes. All real estate ad valorem taxes, general assessments and special assessments, and personal property ad valorem taxes
assessed against the Hotel (generically, “Taxes”) shall be prorated between Purchaser and Seller as of the Closing
Date. All real property Taxes shall be prorated in accordance with County Custom, which, the parties believe, as of the date hereof,
is in arrears on a calendar year basis for real estate taxes except city taxes which are prorated on a “due date” basis.
For the sake of clarity, the Parties intend that Seller pay all Taxes, of any kind, allocable to the period prior to the Closing
Date and Purchaser shall pay all Taxes, of any kind, allocable to the period from and after the Closing Date.

 

2.           Proration
of Expenses.

 

(a)          The
following items of expense with respect to any portion or aspect of the Hotel shall be prorated between Seller and Purchaser based
upon their respective period of ownership as of the Closing Date:

 

(i)           All
charges and expenses under any Operating Agreements.

 

(ii)          All
utility charges (but excluding any utility deposits which are refundable and refunded by the applicable utility and otherwise shall
be prorated as set forth in Section 12 of this Exhibit G below). To the extent reasonably practicable,
though, in lieu of prorating the charges for any metered utility service, Purchaser and Seller shall endeavor to have the utility
read the meter as early as possible on the Closing Date, render a final bill to Seller based on such reading and bill all subsequent
service to Purchaser.

 

(iii)         Prepaid
expenses of the Hotel, including without limitation, any fees payable in respect of the assignable licenses and permits obtained
in connection with the operation of the Property and assigned to Purchaser at Closing.

 

(iv)         All
other Hotel operating expenses, other than employment expenses (which are covered by Section 3, below).

 

    	 	G-1	 

     

    

 

3.           Employment
Expenses.

 

(a)          Seller
shall be responsible for all wages, salary, compensation, benefits and other amounts owed to employees of Seller and/or any manager
or employment company at the Property relating to the period prior to 11:59 p.m., on the evening of the day immediately preceding
the Closing Date (the “Cut-Off-Time”), and Purchaser shall be responsible for all wages, salary, compensation,
benefits and other amounts due to employees at the Property relating to the period after the Cut-Off Time. The wages, salaries,
compensation and other benefits of employment of employees of Seller, together with applicable employment and withholding taxes
of such employees, shall be allocated between Purchaser and Seller as set forth in this Section 3.

 

(i)           With
respect to non-exempt employees, (a) wages of non-exempt employees shall be allocated according to hours worked during the current
pay period before and after the Cut-Off Time; (b) employment and withholding taxes for the current pay period for such employees
shall be allocated in the same manner as wages; and (c) accrued paid time off and required contributions to health, pension and
other benefit plans for such employees shall be allocated on the basis of generally accepted hotel accounting principles for allocating
such costs to particular accounting periods, with such costs attributable to the accounting period in which the Closing Date occurs
to be allocated on a per diem basis according to the number of days in the current period occurring before and after the Cut-Off
Time.

 

(ii)          With
respect to exempt employees, salaries, employment and withholding taxes, accrued vacation and other employment benefits for exempt
employees shall be allocated on the basis of generally accepted hotel accounting principles for allocating such costs to particular
accounting periods, with such costs during the accounting period in which the Closing Date occurs to be allocated on a per diem
basis according to the number of days in the current period occurring before and after the Cut-Off Time.

 

(iii)         Pension
expenses for eligible employees at Closing shall be the sole responsibility of Seller. Seller shall retain all pension liabilities
for all eligible employees of the Hotel which have accrued prior to the Closing Date.

 

(b)          Notwithstanding
any provision of this Agreement to the contrary, no proration or other adjustment to the Purchase Price shall be made in connection
with any (A) severance or separation payments, and (B) non-vested sick pay.

 

(c)          Accrued
wages, paid time off, vacation pay and sick pay (to the extent required by law to be paid by Seller to an employee on the Closing
Date because of Seller’s termination of such employee on the Closing Date) will be referred to herein as “vested PTO.”
Health and welfare payments and other amounts accrued as of the Closing Date and due to employees of the Hotel shall be prorated
as of the Closing Date and all unused vested PTO (if any) shall be credited to Purchaser (including any employer taxes associated
with such sums) and Purchaser shall assume all responsibility for crediting or paying employees such amounts (to the extent of
the credit received).

 

    	 	G-2	 

     

    

 

4.           Hotel
Revenues.

 

(a)          One-half
of all revenues, sales taxes, room taxes, occupancy taxes and other taxes from the Hotel guest rooms for the evening commencing
on the day immediately prior to the Closing Date and ending on the morning of the Closing Date shall be credited to each of Seller
and Purchaser. Except for Purchaser’s Closing Date Guest Room Incidentals (as defined below), Seller shall receive all other
revenues from the Hotel guest rooms and facilities occupied on the morning of the Closing Date. Such revenues to be allocated to
Seller shall include, but not be limited to, (i) all revenues, sales taxes, room taxes, occupancy taxes and other taxes charged
to guests for the occupancy of such rooms, all for the period ending at the Cut-Off Time, and (ii) all parking charges, sales from
mini-bars, in-room food and beverage, telephone, facsimile, computer, and data communications, in-room movie and entertainment,
laundry, other service charges and all taxes relating to any of the foregoing (collectively, the items in this clause (ii), the
 “Guest Room Incidentals”), in each case, allocable to such rooms or its occupants with respect to the period
ending at the Cut-Off Time.

 

(b)          All
revenues from Hotel guest rooms and facilities attributable to the period prior to the Cut-Off Time shall be allocated to Seller;

 

(c)          All
Guest Room Incidentals accruing on or after the Cut-Off Time (“Purchaser’s Closing Date Guest Room Incidentals”)
shall be allocated to Purchaser, regardless of whether or not such Guest Room Incidentals are attributable to any guest who may
check out on the Closing Date. If any Guest Room Incidentals cannot be allocated between Purchaser and Seller in accordance with
this Section 4 based upon the time that they accrued, they shall be shared equally between Purchaser and Seller.

 

(d)          All
revenues from Hotel guest rooms and facilities for which occupancy commenced on or after the Closing Date shall be allocated to
Purchaser;

 

(e)          All
revenues from Hotel guest rooms attributable to the Closing Date not allocable to Seller pursuant to the foregoing provisions shall
be allocated to Purchaser; and

 

(f)           All
revenues from restaurants, lounges, vending machines, copying and facsimile charges, spa and resort facilities, activity centers,
business service centers, and other service operations conducted at the Property shall be allocated based on whether the same accrued
before or after the Cut-Off Time, and Seller shall separately record sales occurring before and after the Cut-Off Time at the Property.

 

(g)          Revenues
from conferences, receptions, meetings, and other functions occurring in any conference, banquet or meeting rooms at the Hotel,
including usage charges and related taxes, food and beverage sales, valet parking charges, equipment rentals, and telecommunications
charges, shall be allocated between Seller and Purchaser, based on when the function therein commenced, with (i) one-day functions
commencing prior to the Cut-Off Time being allocable to Seller, (ii) functions commencing after the Cut-Off Time being allocable
to Purchaser, and (iii) multi-day and other functions commencing prior to the Cut-Off-Time and ending after the Cut-Off Time being
allocated between Seller and Purchaser according to when the event commences and is scheduled to end. The foregoing amounts are
referred to collectively as “Conference Revenues.”

 

    	 	G-3	 

     

    

 

(h)          Any
operating revenues not otherwise provided for in this Section 4, shall be prorated between Purchaser and Seller as
of Closing.

 

(i)           At
Closing, all receivables from the Property and Hotel operations (“Receivables”) which are sixty (60) days or
less days old (“Current Receivables”) shall be credited to Seller, and Purchaser shall be entitled to retain
any payments of such Current Receivables received by Purchaser within ninety (90) days after Closing. All Receivables which are
more than sixty (60) days old (“Aged Receivables”) shall be retained by Seller, including all Aged Receivables
accrued in connection with hotel reservations, the use of guest rooms, banquet and meeting room receivables (including any cancellation
fees due to Seller in connection with any of the foregoing) as reflected on the city ledger. Any payments of Aged Receivables to
which Seller is entitled under this subsection (i) that are received by Purchaser after Closing shall be forwarded to Seller within
ten (10) business days after receipt; provided, however, that any amounts received from such payor shall be first allocated from
the newest to the oldest liability. Purchaser shall receive a credit on the Final Statement for any Current Receivables not collected
by Purchaser within ninety (90) days of Closing. Seller shall reasonably cooperate with Purchaser’s efforts to collect Current
Receivables and shall execute such conveyance and assignment documentation reasonably requested by Purchaser to evidence the assignment
of Current Receivables to Purchaser at Closing.

 

The amounts described in Sections 4(a) –
(g) are referred to collectively as “Guest Revenues”.

 

5.           Rent.
Rents due for the month in which the Closing shall occur (the term “rents” includes all payments due and payable
by the tenant under the Lease, including base rents, operating expenses and other pass-throughs), shall be prorated as of the Closing
Date, if, as and when collected.

 

6.           Hotel
Payables. At Closing, Purchaser shall receive a proration credit equal to the excess of (a) the amount of all outstanding accounts
payable for the Property as of the Closing Date (“Hotel Payables”) shown and itemized in the Preliminary Statement
over (b) Purchaser’s prorated share of such Hotel Payables shown in the Preliminary Statement under Section 2,
and Purchaser shall assume the obligation to satisfy all such Hotel Payables. Seller shall retain responsibility for paying any
Hotel Payable which became due and payable prior to the Closing Date but omitted from the Preliminary Statement (subject to proration
under any other provisions of this Agreement).

 

7.           Credit
for Unopened Inventory. As of the date immediately prior to the Closing Date, Seller and Purchaser shall jointly conduct an
inventory of all Retail Inventory in the any Hotel gift shops. Such report shall reflect the value of the Retail Inventory at the
acquisition cost thereof. On account of Purchaser’s purchase of the Retail Inventory, Seller shall receive a credit at Closing
in an amount equal to the total value of the Retail Inventory, as reflected in such report. Minibar stock in guest rooms shall
be deemed to be in circulation, and Seller shall not receive a credit at Closing for the value of such stock. Seller shall receive
a credit for the cost of all other Unopened Inventory being transferred hereunder.

 

    	 	G-4	 

     

    

 

8.           Credit
for Reservation Deposits. Purchaser shall receive a credit equal to the aggregate amount of advance deposits that shall have
been received by Seller prior to the Cut-Off Time on account of reservations for use or occupancy of the Property after the Cut-Off
Time.

 

9.           Credit
for Cash Banks. Seller shall receive a credit at Closing in an amount equal to all House Bank Funds.

 

10.         Regarding
Hotel Prorations Generally. Unless this Exhibit G expressly provides otherwise: (a) all prorations hereunder with
respect to the Hotel shall be made as of the Cut-Off Time, (b) all prorations shall be made on an actual daily basis, and (c) for
purposes of such prorations, all items of revenue and expense with respect to the Hotel’s operations shall be classified
and determined in accordance with the Uniform System of Accounts and otherwise in accordance with generally accepted accounting
principles. Except as otherwise expressly provided herein, in any case in which Purchaser receives a credit at Closing on account
of any obligation of Seller hereunder, Seller shall have no further liability for such obligation to the extent of the credit so
given, and Purchaser shall pay and discharge the same and Seller shall remain liable, and Purchaser shall have no responsibility
for, any obligations or liabilities of the Hotel prior to the Closing Date except to the extent Purchaser has received a credit
at Closing.

 

11.         Vouchers.
Purchaser shall (a) honor all outstanding unexpired gift certificates, coupons or other writings issued by Seller and listed
on Schedule G that entitles the holder or bearer thereof to a credit (whether in a specified dollar amount as for a
specified item, such as room night or meals) to be applied against the usual charge for rooms, meals and/or goods and services
at the Hotel (collectively, “Vouchers”) and shall assume all liability, if any, for all outstanding Vouchers
as of the Closing Date regardless of any purported expiration, and (b) receive a credit against the Purchase Price payable
at Closing equal to eighty percent (80%) (or one hundred percent (100%) of the rack rate if no face value is given) of those Vouchers
set forth on Schedule G attached to this Agreement and incorporated herein by this reference, as updated as of the
Closing Date.

 

12.         Utility
and Other Deposits. At Closing, to the extent to which Purchaser is entitled to receive the benefit thereof, Seller shall receive
a credit for all refundable cash or other deposits posted with utility companies serving the Property or any governmental agencies
or authorities or posted pursuant to any Operating Agreement, or, at Seller’s option, Seller shall be entitled to receive
and retain such refundable cash and deposits.

 

13.         Final
Statement; Post-Closing Adjustments. Except for prorations of Taxes, which shall be adjusted within fifteen (15) business days
of receipt of the Tax bill if such Taxes were not prorated at Closing, Purchaser and Seller shall make a one-time post-Closing
adjustment of any item of income and expense subject to adjustment as provided above which was either incomplete or incorrect (whether
as a result of an error in calculation or a lack of complete and accurate information) as of the Closing. Purchaser will prepare
and deliver to Seller for its review and approval a statement of prorations (the “Final Statement”) within one
hundred twenty (120) days following the Closing Date, and the party in whose favor the original incorrect adjustment or error was
made (“Adjusting Party”) shall pay to the other party (“Requesting Party”) the sum necessary
to correct such prior incorrect adjustment or error within thirty (30) days after delivery of the Final Statement, at which point
the pro-rations shall be final, the Final Statement shall be deemed complete, and no further adjustment to the prorations or the
Purchase Price shall be made (except for adjustments for real estate taxes as provided above).

 

    	 	G-5	 

     

    

 

14.         Resolution
of Disputes. In the case of a proration dispute, the parties shall attempt to resolve such dispute, but if for any reason such
dispute is not resolved by the date that is thirty (30) days after the delivery of the original notice of the claimed adjustment
by Purchaser or Seller, but not to exceed one hundred fifty (150) days after Closing, then the parties shall submit such dispute
to a nationally-recognized accounting firm reasonably acceptable to Purchaser and Seller (“Outside Accountants”),
and the determination of the Outside Accountants, which shall be made within a period of fifteen (15) days after such submittal
by the parties, shall be conclusive. The fees and expenses of the Outside Accountants shall be paid equally by Purchaser and Seller.
At such time as the amount of any adjustment or dispute shall be determined (either by agreement or by determination of the Outside
Accountants), any amount that shall be payable by the Requesting Party to the Adjusting Party as a result of such adjustment or
determination shall be paid within ten (10) business days after the date on which such agreement or determination shall have been
made.

 

15.         The
provisions of this Exhibit G shall survive Closing.

 

    	 	G-6	 

     

    

 

Exhibit H

 

CONSENT OF VENDOR TO ASSIGNMENT AND ASSUMPTION

 

This Consent of Vendor
to Assignment and Assumption (this “Consent”) is made this __ day of _______, 20___, with reference to the following
Recitals:

 

A.          Pursuant
to that certain _____________________ (the “Purchase Agreement”) by and between __________________ (“Seller”)
and _____________________ (“Purchaser”), Seller shall convey to Purchaser the real property commonly known as
_____________________ (the “Property”) on or about ________________.

 

B.           In
connection with the foregoing conveyance, Seller shall assign to Purchaser, and Purchaser shall assume (the “Assignment
and Assumption”), from and after the date of such conveyance or the date of this Consent (whichever is later), all of
Seller’s right, title, and interest in and to the warranties, guaranties and/or indemnitees for the benefit of the Indemnitee
(the “Warranties”) under that certain ________________ dated _______________ (the “Vendor Agreement”)
by and between [Seller] [Full entity name of Seller Affiliate] (the “Indemnitee”) and _________________________
(the “Company”), which exist or may hereafter exist under the Vendor Agreement and any plans, specifications
or work product developed under such Vendor Agreement (collectively, “Work Product”).

 

C.           Seller
wishes to obtain the consent to the Assignment and Assumption from the Company.

 

CONSENT

 

The Company hereby (i) consents to and
accepts the Assignment and Assumption, (ii) acknowledges and agrees that Purchaser shall not be responsible for any obligation
or liability of Indemnitee under the Vendor Agreement, and (iii) acknowledges and agrees to the transfer of the Warranties
and Work Product to Purchaser. The Company acknowledges and agrees that any and all notices to be given to the Indemnitee under
the Vendor Agreement shall hereafter be given to Purchaser at:

 

	 	 	 
	 	 	 
	 	 	 
	 	Email:  	 	 
	 	Phone:  	 	 

 

    	 	H-1	 

     

    

 

	 	Consented and Agreed 	 
	 	as of the date set forth below:	 
	 	 	 	 
	 	 	,
	 	a	 	 
	 	 	 	 
	 	By:	 	 
	 	Name: 	 	 
	 	Title: 	 	 
	 	Date:	 	 
	 	 	 	 	 

 

    	 	H-2	 

     

    

 

Exhibit I

 

FORM OF TENANT ESTOPPEL

 

[Purchaser]

	Attn:	 
	Re:	[Describe Leased Premises]

 

Ladies and Gentlemen:

 

You are hereby advised that the undersigned
is the Tenant and present occupant of a portion of those certain premises comprising real property and improvements thereon known
as _____________, in the City of ___________, State of ___________ (the “Premises”). The Premises are commonly
known as __________________________________. The undersigned hereby certifies:

 

1.           The
Premises are leased under the provisions of a lease agreement dated __________, ____ between Tenant and ___________________ (“Landlord”).
The lease agreement is valid and in full force and effect and has not been modified except by document(s) dated __________; true,
complete and correct copy(ies) of the Lease and all such amendments are attached hereto, and the same contain all of the understandings
and agreements between Landlord and Tenant (herein collectively referred to as the “Lease”). Tenant’s
leased Premises contain _________ rentable square feet.

 

2.           The
commencement date of the term of the Lease is ________, ____, and the expiration date is __________, 20__; and the undersigned’s
obligation to pay rent has commenced.

 

3.           The
Lease provides for an option to renew the Lease term as follows: _________________________________________________________________,
at a rental rate of $__________.

 

4.           The
Lease provides for rent payable as follows:

 

(a)          Current
minimum fixed monthly rent: $__________ with future escalations as follows: _________________________________________________________
___________________________________________________________________________.

 

(b)          No
rent has been paid by Tenant in advance under the Lease except for the minimum monthly rent that became due for the current month.
The minimum rent has been paid through __________, 20__.

 

(c)          The
Lease provides for the Tenant to pay ___% of property operating expenses including but not limited to insurance and real property
taxes.

 

(d)          No
free rent periods or other concessions of any kind or nature have been granted to Tenant under the Lease.

 

5.          The
Lease contains no first right of refusal, right of first offer, option to expand, option to terminate, or exclusive business or
use rights, except as follows: ___________ ________________________________________________________________________________________________

_______________________________________________________________________________________________.

 

6.           The
Lease contains no options to purchase or right of first offer, right of first refusal, right of first negotiation or any other
preferential right to purchase all or any part of the Premises or all or any part of the building or project of which the Premises
are a part.

 

7.           Landlord
is holding a security deposit of $__________ and, to Tenant’s knowledge, no portion thereof has been applied by Landlord.

 

    	 	I-1	 

     

    

 

8.           The
improvements and space required to be furnished according to the Lease have been duly delivered by the Landlord and accepted by
the Tenant. Landlord’s obligations to pay for or construct tenant improvements or common area, if any, have been satisfied
in full.

 

9.           The
undersigned has no rights of setoffs or defenses against Landlord or any rents payable under the Lease, nor does the undersigned
assert or allege any claim against the Landlord for any failure of performance of any of the terms of said Lease. There are no
defaults by Landlord, including, without limitation, defaults relating to the design, construction, condition and tenant uses of
the Premises or the building or project of which the Premises are a part. Tenant knows of no event or condition which, with the
passage of time, the giving of notice, or both, would constitute a default by Landlord under the Lease. Tenant is not in default
under the Lease and no events or conditions exist which, with the passage of time or giving of notice or both, would constitute
a default by Tenant under the Lease.

 

10.         The
undersigned has not entered into any sublease, assignment or any other agreement transferring any of its interest in the Lease
or the Premises except as follows: _______________________________________________________________________________________________

_____________________________________________________________________________.

 

11.         Tenant
has not filed (and does not currently intend to file) any form of bankruptcy petition and Tenant is not subject to any bankruptcy,
insolvency, creditors’ rights or similar proceeding in any federal, state or other court or jurisdiction. Tenant is not insolvent.

 

12.         Tenant
has not generated, used, stored, spilled, disposed or released any Hazardous Substances at, on or in the Premises or any other
portion of the building or project of which the Premises is a part in violation of any applicable law. “Hazardous Substances”
means any flammable, explosive, toxic, carcinogenic, mutagenic or corrosive substance, material, chemical or waste, including,
but not limited to, any substance, chemical, waste or other material which is listed, defined or otherwise identified as “hazardous”
or “toxic” under any federal, state, local or administrative agency, ordinance, law, ruling, regulation or decision
including, without limitation, formaldehyde, urea, polychlorinated biphenyls, petroleum, petroleum products or byproducts, crude
oil, natural gas, methane, liquefied natural gas, synthetic gas usable for fuel or mixture thereof, radon, asbestos, solvents or
any nuclear substances or materials.

 

The undersigned makes this statement for your
benefit and protection with the understanding that you (and any assignee of your right to purchase the above-described Premises)
and any lender making a loan secured by such Premises intend to rely upon this statement in connection with your intended purchase
of such Premises from Landlord. The undersigned agrees that it will, upon receipt of written notice from Landlord, commence to
pay all rents to you (or your assignee) or to any agent acting on behalf of you (or your assignee).

 

	Dated: __________, 20__	 
	 	 
	“TENANT”	 
	 	 
	(Signature)	 
	 	 
	(Title)	 
	[Insert Address]	 

 

    	 	I-2	 

     

    

 

Exhibit J

 

NOTICE TO TENANT

 

	_______________, 20__	 
	 	 
	 	 
	 	 

 

		Re:	Your lease (the “Lease”) of space in the hotel known as __________________ located
at ___________________, _________ (the “Property”)

 

Ladies and Gentlemen:

 

You are hereby notified that __________ (the
 “Owner”), as owner of the Property and the current owner of the landlord’s interest under the Lease, has
sold the Property to __________________________ (“Purchaser”) as of the date of this Tenant Notice Letter set
forth above, and in connection with such sale Owner has assigned and transferred its interest in the Lease and any and all security
deposits thereunder or relating thereto to Purchaser, and Purchaser has assumed and agreed to perform all of the landlord’s
obligations under the Lease (including any obligations set forth in the Lease to repay or account for any security deposits thereunder)
which first arise or accrue from and after the date set forth above. Accordingly, (a) all of your obligations under the Lease from
and after the date of this Tenant Notice Letter (including your obligations to pay rent and fulfill your insurance requirements)
shall be performable to and for the benefit of Purchaser, its successors and assigns and (b) all of the obligations of the landlord
under the Lease (including any obligations to repay or account for any security deposits thereunder) which first arise or accrue
from and after the date of this Tenant Notice Letter shall be the binding obligations of Purchaser and its successors and assigns.

 

The address of Purchaser for all purposes under
the Lease (including the payments of rentals, the recoupment of any security deposits and the giving of any notices provided for
in the Lease) is:

 

	 	 
	 	 
	Facsimile No.	 	 
	Telephone No.	 	 

 

	Very truly yours, 	[INSERT SELLER SIGNATURE BLOCK]

 

    	 	J-1	 

     

    

 

Schedule 5.1(m)

 

BOOKINGS

 

     

     

    

 

Schedule G

 

VOUCHERS

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