Document:

Exhibit 10.65

 

Omaha, NE (HWS)

 

PURCHASE CONTRACT

 

between

 

OMAHA DOWNTOWN LODGING INVESTORS III,
LLC (“SELLER”)

 

AND

 

APPLE TEN HOSPITALITY OWNERSHIP, INC.,
a Virginia corporation (“BUYER”)

 

Dated: May 21, 2013

    	 

    	

    

TABLE OF CONTENTS

 

	 	Page
	 	 
	Article I DEFINED TERMS	1
	1.1	Definitions	1
	Article II PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; EARNEST MONEY DEPOSIT	6
	2.1	Purchase and Sale	6
	2.2	Purchase Price	7
	2.3	Allocation	7
	2.4	Payment	7
	2.5	Earnest Money Deposit	7
	Article III REVIEW PERIOD	8
	3.1	Review Period	8
	3.2	Due Diligence Examination	9
	3.3	Restoration	9
	3.4	Seller Exhibits	9
	Article IV SURVEY AND TITLE APPROVAL	10
	4.1	Survey	10
	4.2	Title	10
	4.3	Survey or Title Objections	10
	Article V MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT	11
	Article VI BROKERS	12
	Article VII REPRESENTATIONS, WARRANTIES AND COVENANTS	12
	7.1	Seller’s Representations, Warranties and Covenants	12
	7.2	Buyer’s Representations, Warranties and Covenants	16

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	7.3	Survival	16
	Article VIII ADDITIONAL COVENANTS	16
	8.1	Subsequent Developments	16
	8.2	Operations	16
	8.3	Third Party Consents	18
	8.4	Employees	18
	8.5	Estoppel Certificates	18
	8.6	Access to Financial Information	18
	8.7	Bulk Sales	19
	8.8	Indemnification	19
	8.9	Escrow Funds	21
	8.10	Liquor Licenses	21
	Article IX CONDITIONS FOR CLOSING	22
	9.1	Buyer’s Conditions for Closing	22
	9.2	Seller’s Conditions for Closing	23
	Article X CLOSING AND CONVEYANCE	24
	10.1	Closing	24
	10.2	Deliveries of Seller	24
	10.3	Buyer’s Deliveries	26
	Article XI COSTS	26
	11.1	Seller’s Costs	26
	11.2	Buyer’s Costs	27
	Article XII ADJUSTMENTS	27
	12.1	Adjustments	27
	12.2	Reconciliation and Final Payment	28

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	12.3	Employees	29
	Article XIII CASUALTY AND CONDEMNATION	29
	13.1	Risk of Loss; Notice	29
	13.2	Buyer’s Termination Right	29
	13.3	Procedure for Closing	30
	Article XIV DEFAULT REMEDIES	30
	14.1	Buyer Default	30
	14.2	Seller Default	30
	14.3	Attorney’s Fees	30
	Article XV NOTICES	31
	Article XVI MISCELLANEOUS	32
	16.1	Performance	32
	16.2	Binding Effect; Assignment	32
	16.3	Entire Agreement	32
	16.4	Governing Law	32
	16.5	Captions	32
	16.6	Confidentiality	32
	16.7	Closing Documents	32
	16.8	Counterparts	32
	16.9	Severability	33
	16.10	Interpretation	33
	16.11	Further Acts	33
	16.12	Joint and Several Obligations	33
	16.13	Notice of Proposed Listing	33
	16.14	Section 1031 Exchange	33

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	16.15	Right of First Refusal	34

 

	SCHEDULES:	 
	 	 
	Schedule 2.3	Allocation
	Schedule 3.1	Due Diligence List
	Schedule 16.13	Other Hotels
	Schedule 16.15	Right of First Refusal
	 	 
	EXHIBITS:
	 	 
	Exhibit A	Legal Description
	Exhibit B	List of FF&E
	Exhibit C	List of Hotel Contracts
	Exhibit D	Consents and Approvals
	Exhibit E	Environmental Reports
	Exhibit F	Claims or Litigation Pending
	Exhibit G	Escrow Agreement
	Exhibit H	Form of Management Agreement
	Exhibit I	Related Transactions
	 	 

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PURCHASE CONTRACT

 

This PURCHASE CONTRACT (this “Contract”)
is made and entered into as of May 21, 2013, by and between OMAHA DOWNTOWN LODGING INVESTORS III, LLC, a Wisconsin limited liability
company (“Seller”) with a principal office at 1600 Aspen Commons, Suite 200, Middleton, WI 53562 and
APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with its principal office at 814 East Main Street, Richmond, Virginia
23219, or its affiliates or assigns (“Buyer”).

 

RECITALS

 

A. Seller is the fee simple owner of the
Land (as defined below) and the Improvements (as defined below) which are together more commonly known as the Homewood Suites by
Hilton Omaha-Downtown, located at 1314 Cuming Street, Omaha, Nebraska 68102, containing, among other things, 123 guest rooms and
suites (the “Hotel”) identified in Exhibit A attached hereto and incorporated by reference.

 

B. Buyer is desirous of purchasing the
Hotel from Seller, and Seller is desirous of selling the Hotel to Buyer, for the purchase price and upon terms and conditions hereinafter
set forth.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration of the foregoing
Recitals, the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

 

Article
I

DEFINED TERMS

 

1.1
Definitions. The following capitalized terms when used in this Contract shall have the meanings set forth below
unless the context otherwise requires:

 

“Additional Deposit” shall
mean $100,000.

 

“Affiliate” shall mean,
with respect to Seller or Buyer, any other person or entity directly or indirectly controlling (including but not limited to all
directors and officers), controlled by or under direct or indirect common control with Seller or Buyer, as applicable. For purposes
of the foregoing, a person or entity shall be deemed to control another person or entity if it possesses, directly or indirectly,
the power to direct or cause direction of the management and policies of such other person or entity, whether through the ownership
of voting securities, by contract or otherwise.

 

“Appurtenances” shall
mean all rights, titles, and interests of Seller appurtenant to the Land and Improvements, including, but not limited to, (i) all
easements, rights of way, rights of ingress and egress, tenements, hereditaments, privileges, and appurtenances in any way

    	 

    	

    

belonging to the Land or Improvements, (ii)
any land lying in the bed of any alley, highway, street, road or avenue, open or proposed, in front of or abutting or adjoining
the Land, (iii) any strips or gores of real estate adjacent to the Land, and (iv) the use of all alleys, easements and rights-of-way,
if any, abutting, adjacent, contiguous to or adjoining the Land.

 

“Brand” shall mean Homewood
Suites, the hotel brand or franchise under which the Hotel operates.

 

“Business Day” shall mean
any day other than a Saturday, Sunday or legal holiday in the Commonwealth of Virginia or the state in which the Property is located.

 

“Closing” shall mean the
closing of the purchase and sale of the Property pursuant to this Contract.

 

“Closing Date” shall have
the meaning set forth in Section 10.1.

 

“Contracts, Plans and Specs”
shall mean plans, drawings, specifications, surveys, soil reports, engineering reports, inspection reports, and other technical
descriptions and reports.

 

“Deed” shall have the
meaning set forth in Section 10.2(a).

 

“Deposits” shall mean,
to the extent assignable, all prepaid rents and deposits, refundable security deposits and rental deposits, and all other deposits
for advance reservations, banquets or future services, made in connection with the use or occupancy of the Improvements; provided,
however, that “Deposits” shall exclude (i) reserves for real property taxes and insurance, in each case, to the extent
pro rated on the settlement statement such that Buyer receives a credit for (a) taxes and premiums in respect of any period prior
to Closing and (b) the amount of deductibles and other self-insurance and all other potential liabilities and claims in respect
of any period prior to Closing, (ii) utility deposits, and (iii) any reserves for replacement of FF&E and for capital repairs
and/or improvements.

 

“Due Diligence Examination”
shall have the meaning set forth in Section 3.2.

 

“Earnest Money Deposit”
shall have the meaning set forth in Section 2.5(a).

 

“Environmental Requirements”
shall have the meaning set forth in Section 7.1(f)

 

“Escrow Agent” shall have
the meaning set forth in Section 2.5(a).

 

“Escrow Agreement” shall
have the meaning set forth in Section 2.5(b).

 

“Exception Documents”
shall have the meaning set forth in Section 4.2.

 

“Existing Franchise Agreement”
shall mean that certain franchise license agreement between the Seller and the Franchisor, granting to Seller a franchise to operate
the Hotel under the Brand.

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“Existing Management Agreement”
shall mean that certain management agreement between the Seller and the Existing Manager for the operation and management of the
Hotel.

 

“Existing Manager” shall
mean North Central Management, Inc.

 

“FF&E” shall mean
all tangible personal property and fixtures of any kind (other than personal property (i) owned by guests of the Hotel or (ii)
leased by Seller pursuant to an FF&E Lease) attached to, or located upon and used in connection with the ownership, maintenance,
use or operation of the Land or Improvements as of the date hereof (or acquired by Seller and so employed prior to Closing), including,
but not limited to, all furniture, fixtures, equipment, signs and related personal property; all heating, lighting, plumbing, drainage,
electrical, air conditioning, and other mechanical fixtures and equipment and systems; all elevators, and related motors and electrical
equipment and systems; all hot water heaters, furnaces, heating controls, motors and equipment, all shelving and partitions, all
ventilating equipment, and all disposal equipment; all spa, health club and fitness equipment; all equipment used in connection
with the use and/or maintenance of the guestrooms, restaurants, lounges, business centers, meeting rooms, swimming pools, indoor
and/or outdoor sports facilities and other common areas and recreational areas; all carpet, drapes, beds, furniture, televisions
and other furnishings; all stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen equipment and utensils, tables,
chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils.
A current list of FF&E is attached hereto as Exhibit B.

 

“FF&E Leases” shall
mean all leases of any FF&E and other contracts permitting the use of any FF&E at the Improvements that are assumed by
Buyer.

 

“Financial Statements”
shall have the meaning set forth in Section 3.1(b).

 

“Franchisor” shall mean
Homewood Inns Franchise LLC.

 

“Hotel Contracts” shall
have the meaning set forth in Section 10.2(d).

 

“Improvements” shall mean
all buildings, structures, fixtures, parking areas and other improvements to the Land, and all related facilities.

 

“Indemnification Agreement”
shall have the meaning set forth in Article XVII.

 

“Indemnified Party” shall
have the meaning set forth in Section 8.8(c)(i).

 

“Indemnifying Party” shall
have the meaning set forth in Section 8.8(c)(i).

 

“Initial Deposit” shall
have the meaning set forth in Section 2.5(a).

 

“Land” shall mean, collectively,
a fee simple absolute interest in the real property more fully described in Exhibit A, which is attached hereto and incorporated
herein by reference, together with all rights (including without limitation all air rights, mineral rights and development rights),
alleys, streets, strips, gores, waters, privileges, appurtenances, advantages and easements belonging thereto or in any way appertaining
thereto.

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“Leases” shall mean all
leases, franchises, licenses, occupancy agreements (but excluding room reservations), “trade-out” agreements, advance
bookings, convention reservations, or other agreements demising space in, providing for the use or occupancy of, or otherwise similarly
affecting or relating to the use or occupancy of, the Improvements or Land, together with all amendments, modifications, renewals
and extensions thereof, and all guaranties by third parties of the obligations of the tenants, licensees, franchisees, concessionaires
or other entities thereunder.

 

“Legal Action” shall have
the meaning set forth in Section 8.8(c)(ii).

 

“Licenses” shall mean
all permits, licenses, franchises, utility reservations, certificates of occupancy, and other documents issued by any federal,
state, or municipal authority or by any private party related to the development, construction, use, occupancy, operation or maintenance
of the Hotel, including, without limitation, all licenses, approvals and rights (including any and all existing waivers of any
brand standard) necessary or appropriate for the operation of the Hotel under the Brand, but excluding the Existing Franchise Agreement.

 

“Liquor License” shall
have the meaning set forth in Section 8.10.

 

“Manager” shall mean North
Central Hospitality, LLC.

 

“New Franchise Agreement”
shall mean the franchise license agreement to be entered into between Buyer and the Franchisor, granting to Buyer a franchise to
operate the Hotel under the Brand on and after the Closing Date.

 

“New Management Agreement”
means the management agreement to be entered into between Buyer and the Manager for the operation and management of the Hotel on
and after the Closing Date.

 

“Other Property” shall
have the meaning set forth in Section 16.14.

 

“Pending Claims” shall
have the meaning set forth in Section 7.1(e).

 

“Permitted Exceptions”
shall have the meaning set forth in Section 4.3.

 

“Personal Property” shall
mean, collectively, all of the Property other than the Real Property.

 

“PIP” shall mean a product
improvement plan for any Hotel, as required by the Existing Manager or the Franchisor, if any.

 

“Post-Closing Agreement”
shall have the meaning set forth in Section 8.9.

 

“Property” shall mean,
collectively, (i) all of the following with respect to the Hotel: the Land, Improvements, Appurtenances, FF&E, Supplies, Leases,
Deposits, Records, Service Contracts, Warranties, Licenses, FF&E Leases, Contracts, Plans and Specs, Tradenames, Utility Reservations,
as well as all other real, personal or intangible property of Seller related to any of the foregoing and (ii) any and all of the
following that relate to or affect in any way the design,

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construction, ownership, use, occupancy,
leasing, maintenance, service or operation of the Real Property, FF&E, Supplies, Leases, Deposits or Records: Service Contracts,
Warranties, Licenses, Tradenames, Contracts, Plans and Specs and FF&E Lease.

 

“Purchase Price” shall
have the meaning set forth in Section 2.2.

 

“Real Property” shall
mean, collectively, all Land, Improvements and Appurtenances with respect to the Hotel.

 

“Records” shall mean all
books, records, promotional material, guest history information (other than any such information owned by the Existing Manager
or Franchisor, or any such information related to any other hotels owned by Affiliates of Seller), marketing and leasing material
(including but not limited to any such records, data, information, and material in the form of computerized files located at the
Hotel), market studies prepared in connection with Seller’s current annual plan (if any) and other materials, information,
data, or other documents or records (including, without limitation, all documentation relating to all zoning and/or land use notices
relating to or affecting the Property, all business plans and projections and all studies, plans, budgets and contracts related
to the operation of the Hotel) all to the extent the same are in Seller’s possession or control (or Seller has reasonably
access or may obtain the same from the Existing Manager), and that are used in or relating to the Property and/or the operation
of the Hotel, including the Land, the Improvements or the FF&E, and copies of the final plans and specifications for the Hotel,
but excluding all such materials and documents owned by Franchisor and all such materials and documents that constitute source
documents for Seller’s financial and tax records.

 

“Release” shall have the
meaning set forth in Section 7.1(f).

 

“Review Period” shall
have the meaning set forth in Section 3.1.

 

“SEC” shall have the meaning
set forth in Section 8.6.

 

“Seller Liens” shall have
the meaning set forth in Section 4.3.

 

“Seller Parties” shall
have the meaning set forth in Section 7.1(e).

 

“Service Contracts” shall
mean contracts or agreements, such as maintenance, supply, service or utility contracts.

 

“Supplies” shall mean
all merchandise, supplies, inventory and other items used for the operation and maintenance of guest rooms, restaurants, lounges,
swimming pools, health clubs, spas, business centers, meeting rooms and other common areas and recreational areas located within
or relating to the Improvements, including, without limitation, all food and beverage (alcoholic and non-alcoholic) inventory (opened
or unopened), office supplies and stationery, advertising and promotional materials, china, glasses, silver/flatware, towels, linen
and bedding (all of which shall be 2-par level for all suites or rooms in the Hotel), guest cleaning, paper and other supplies,
upholstery material, carpets, rugs, furniture, engineers’ supplies, paint and painters’ supplies, employee uniforms,
and all cleaning and maintenance supplies, including those used in connection with the swimming pools, indoor and/or outdoor sports
facilities, health

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clubs, spas, fitness centers, restaurants,
business centers, meeting rooms and other common areas and recreational areas.

 

“Survey” shall have the
meaning set forth in Section 4.1.

 

“Third Party Consents”
shall have the meaning set forth in Section 8.3.

 

“Title Commitment” shall
have the meaning set forth in Section 4.2.

 

“Title Company” shall
have the meaning set forth in Section 4.2.

 

“Title Policy” shall have
the meaning set forth in Section 4.2.

 

“Title Review Period”
shall have the meaning set forth in Section 4.3.

 

“Tradenames” shall mean
all telephone exchanges and numbers, trade names, trade styles, trade marks, and other identifying material, and all variations
thereof, together with all related goodwill (it being understood and agreed that the name of the hotel chain to which the Hotel
is affiliated by franchise, license or management agreement is a protected name or registered service mark of such hotel chain
and cannot be transferred to Buyer by this Contract, provided that all such franchise, license, management and other agreements
granting a right to use the name of such hotel chain or any other trademark or trade name and all waivers of any brand standard
shall be assigned to Buyer.

 

“Utility Reservations”
shall mean Seller’s interest in the right to receive immediately on and after Closing and continuously consume thereafter
water service, sanitary and storm sewer service, electrical service, gas service and telephone service on and for the Land and
Improvements in capacities that are adequate continuously to use and operate the Improvements for the purposes for which they were
intended, including, but not limited to (i) any right to the present and future use of wastewater, drainage, water and other utility
facilities to the extent such use benefits the Real Property, (ii) any reservations of or commitments covering any such use in
the future, and (iii) any wastewater capacity reservations relating to the Real Property. Buyer shall be responsible for any requests
or documents to transfer the Utility Reservations, at Buyer’s sole cost and expense.

 

“Warranties” shall mean
all warranties, guaranties, indemnities and claims for the benefit of Seller with respect to the Hotel, the Property or any portion
thereof, including, without limitation, all warranties and guaranties of the development, construction, completion, installation,
equipping and furnishing of the Hotel, and all indemnities, bonds and claims of Seller related thereto.

 

Article
II

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT

 

2.1
Purchase and Sale. Seller agrees to sell and convey to Buyer or its Affiliates and/or assigns, and Buyer or
its assigns agrees to purchase from Seller, the Property, in consideration of the Purchase Price and upon the terms and conditions
hereof. All of the

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Property shall be conveyed, assigned, and
transferred to Buyer at Closing, free and clear of all mortgages, liens, encumbrances, licenses, franchises (other than any hotel
franchises assumed by Buyer), concession agreements, security interests, prior assignments or conveyances, conditions, restrictions,
rights-of-way, easements, encroachments, claims and other matters affecting title or possession, except for the Permitted Exceptions.

 

2.2
Purchase Price. Buyer agrees to pay, and Seller agrees to accept, as consideration for the conveyance of the Property,
subject to the adjustments provided for in this Contract, the amount of SEVENTEEN MILLION SIX HUNDRED TWENTY-FIVE THOUSAND and
No/100 Dollars ($17,625,000.000) (the “Purchase Price”).

 

2.3
Allocation. Buyer and Seller shall agree to an allocation of the Purchase Price among Real Property, Personal Property
and intangible property during the first fifteen (15) days of the Review Period and shall execute an amendment to this Contract
attaching such allocation as Schedule 2.3.

 

2.4
Payment. The portion of the Purchase Price, less the Earnest Money Deposit and interest earned thereon, if any,
which Buyer elects to have applied against the Purchase Price (as provided below), shall be paid to Seller by wire transfer, on
the Closing Date. At the Closing, the Earnest Money Deposit, together with interest earned thereon, if any, shall, at Buyer’s
election, be returned to Buyer or shall be paid over to Seller by Escrow Agent to be applied to the portion of the Purchase Price
on behalf of Buyer and the Escrow Funds shall be deposited into an escrow account pursuant to the Post Closing Agreement as contemplated
by Section 8.9.

 

2.5 Earnest
Money Deposit.

 

(a) Within
three (3) Business Days after the full execution and delivery of this Contract, Buyer shall deposit the sum of One Hundred Thousand
and No/100 Dollars ($100,000.00) in cash, certified bank check or by wire transfer of immediately available funds (the “Initial
Deposit”) with the Title Company, as escrow agent (“Escrow Agent”), which sum shall be
held by Escrow Agent as earnest money. If, pursuant to the provisions of Section 3.1 of this Contract, Buyer elects to terminate
this Contract at any time prior to the expiration of the Review Period, then the Escrow Agent shall return the Earnest Money Deposit
to Buyer promptly upon written notice to that effect from Buyer. If Buyer does not elect to terminate this Contract on or before
the expiration of the Review Period, Buyer shall, within three (3) Business Days after the expiration of the Review Period deposit
the Additional Deposit with the Escrow Agent and the Initial Deposit and Additional Deposit shall then be non-refundable to Buyer
except as otherwise provided herein. The Initial Deposit and the Additional Deposit, and all interest accrued thereon, shall hereinafter
be referred to as the “Earnest Money Deposit.”

 

(b) The
Earnest Money Deposit shall be held by Escrow Agent subject to the terms and conditions of an Escrow Agreement dated as of the
date of this Contract entered into by Seller, Buyer and Escrow Agent (the “Escrow Agreement”). The Earnest
Money Deposit shall be held in an interest-bearing account in a federally insured bank or savings institution reasonably acceptable
to Seller and Buyer, with all interest to accrue to the benefit of the party entitled to receive it and to be reportable by such
party for income tax purposes.

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Article
III

REVIEW PERIOD

 

3.1
Review Period. Buyer shall have a period through 6:00 p.m. Eastern Time on the date that is forty-five (45) days
after the date of this Contract, unless a longer period of time is otherwise provided for in this Contract and except as otherwise
agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey, construction,
physical condition, structural, mechanical, environmental, economic, permit status, franchise status, financial and other documents
and information related to the Property. Within two (2) Business Days following the date of this Contract, Seller, at Seller’s
sole cost and expense, will deliver to Buyer (or cause to be delivered to Buyer) for Buyer’s review, to the extent not previously
delivered to Buyer, true, correct and complete copies of the following to the extent Seller has such in its possession or control,
together with all amendments, modifications, renewals or extensions thereof:

 

(a) All
Warranties and Licenses relating to the Hotel or any part thereof;

 

(b) Operating
statements for the Hotel, for the current year to date and each of the three (3) prior fiscal years, all in a consolidated month-by-month
format by year (the “Financial Statements”). Seller also agrees to provide to Buyer’s auditor and
representatives all financial and other information necessary or appropriate for preparation of audited financial statements for
Buyer and/or its Affiliates as provided in Section 8.6, below;

 

(c) All
real estate and personal property tax statements with respect to the Hotel and notices of appraised value for the Real Property
for the current year (if available) and each of the three (3) calendar years prior to the current year;

 

(d) Engineering,
mechanical, architectural and construction plans, drawings, specifications and contracts, payment and performance bonds, title
policies, reports and commitments, zoning information and marketing and economic data relating to the Hotel and the construction,
development, installation and equipping thereof, as well as copies of all environmental reports and information, topographical,
boundary or “as built” surveys, engineering reports, subsurface studies and other Contracts, Plans and Specs relating
to or affecting the Hotel. If the Hotel is purchased by Buyer, all such documents and information relating to the Hotel shall thereupon
be and become the property of Buyer without payment of any additional consideration therefor;

 

(e) All
FF&E Leases, Services Contracts, Leases and, if applicable, a schedule of such Leases of space in the Hotel, but not including
any agreements for real estate commissions, brokerage fees, finder’s fees or other compensation payable by Seller in connection
therewith;

 

(f) All
notices received from governmental authorities in connection with the Hotel and all other notices received from governmental authorities
received at any time that relate to any noncompliance or violation of law that has not been corrected; and

 

(g) Any
other information described on Schedule 3.1 attached hereto.

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Seller shall, upon request of Buyer, make
available to Buyer and Buyer’s representatives and agents, for inspection and copying during normal business hours, Records
located at Seller’s corporate offices, and Seller agrees to provide Buyer, at Buyer’s request, copies of all other
reasonably requested information that is relevant to the management, operation, use, occupancy or leasing of or title to the applicable
Hotel and the plans specifications for development of the Hotel, to the extent Seller has such in its possession or control. At
any time during the Review Period, Buyer may, in its sole and absolute discretion, elect not to proceed with the purchase of the
Property for any reason whatsoever by giving written notice thereof to Seller, in which event: (i) the Earnest Money Deposit shall
be promptly returned by Escrow Agent to Buyer together with all accrued interest, if any, (ii) this Contract shall be terminated
automatically, (iii) all materials supplied by Seller to Buyer (and all copies thereof made by Buyer) shall be returned promptly
to Seller, and (iv) both parties will be relieved of all other rights, obligations and liabilities hereunder, except for the parties’
obligations pursuant to Sections 3.3 and 16.6 below.

 

3.2
Due Diligence Examination. At any time during the Review Period, and thereafter through Closing of the Property,
Buyer and/or its representatives and agents shall have the right to enter upon the Property at all mutually agreed upon times
for the purposes of reviewing all Records and other data, documents and/or information relating to the Property and conducting
such surveys, appraisals, engineering tests, soil tests (including, without limitation, Phase I and Phase II (with the prior written
consent of Seller) environmental site assessments), inspections of construction and other inspections and other studies as Buyer
deems reasonable and necessary or appropriate to evaluate the Property, subject to providing reasonable advance notice to Seller
unless otherwise agreed to by Buyer and Seller (the “Due Diligence Examination”). Seller shall have
the right to have its representative present during Buyer’s physical inspections of its Property, provided that failure
of Seller to do so shall not prevent Buyer from exercising its due diligence, review and inspection rights hereunder. Buyer agrees
to exercise reasonable care when visiting the Property, in a manner which shall not materially adversely affect the operation
of the Property and agrees not to view any rooms occupied at the time of such visit by guests of the Hotel.

 

3.3
Restoration. Buyer covenants and agrees not to damage or destroy any portion of the Property in conducting its examinations
and studies of the Property during the Due Diligence Examination and shall promptly repair any portion of the Property damaged
by the conduct of Buyer, its agents or employees, to substantially the condition such portion(s) of the Property were in immediately
prior to such examinations or studies.

 

3.4
Seller Exhibits. Buyer shall have until the end of the Review Period to review and approve the information on Exhibits
B, C, D, E and F. In the event Buyer does not approve any such Exhibit or the information contained therein, Buyer shall be entitled
to terminate this Contract prior to the end of the Review Period by notice to Seller and the Earnest Money Deposit shall be returned
to Buyer with all interest thereon and both parties shall be relieved of all rights, obligations and liabilities hereunder except
for the parties’ obligations pursuant to Sections 3.3 and 16.6.

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Article
IV

SURVEY AND TITLE APPROVAL

 

4.1
Survey. Within two (2) Business Days following the date of this Contract, Seller (to the extent Seller has such
in its possession or control) will deliver to Buyer true, correct and complete copies of the most recent surveys of the Real Property.
In the event that an update of the survey or a new survey (such updated or new surveys being referred to as the “Survey”)
are desired by Buyer, then Buyer shall be responsible for all costs related thereto.

 

4.2
Title. Within two (2) Business Days following the date of this Contract, Seller will deliver to Buyer its existing
title insurance policy, including copies of all documents referred to therein (to the extent Seller has the same in its possession
or control), for the Real Property. Buyer’s obligations under this Contract are conditioned upon Buyer being able to obtain
for the Property (i) a Commitment for Title Insurance (the “Title Commitment”) issued by Chicago Title
Company, Attn: Debby Moore, 5501 LBJ Freeway, Ste. 200, Dallas, Texas 75240 (the “Title Company”), for
the most recent standard form of owner’s policy of title insurance in the state in which the Real Property is located, covering
the Real Property, setting forth the current status of the title to the Real Property, showing all liens, claims, encumbrances,
easements, rights of way, encroachments, reservations, restrictions and any other matters affecting the Real Property and pursuant
to which the Title Company agrees to issue to Buyer at Closing an Owner’s Policy of Title Insurance on the most recent form
of ALTA (where available) owner’s policy available in the state in which the Land is located, with extended coverage and,
to the extent applicable and available in such state, comprehensive, access, single tax parcel, survey, contiguity, and such other
endorsements as may be required by Buyer (collectively, the “Title Policy”); and (ii) true, complete,
legible and, where applicable, recorded copies of all documents and instruments (the “Exception Documents”)
referred to or identified in the Title Commitment, including, but not limited to, all deeds, lien instruments, leases, plats,
surveys, reservations, restrictions, and easements affecting the Real Property.

 

4.3
Survey or Title Objections. If Buyer discovers any title or survey matter which is objectionable to Buyer, Buyer
may provide Seller with written notice of its objection to same on or before the expiration of the Review Period (the “Title
Review Period”). If Buyer fails to so object in writing to any such matter set forth in the Survey or Title Commitment,
it shall be conclusively assumed that Buyer has approved same. If Buyer disapproves any condition of title, survey or other matters
by written objection to Seller on or before the expiration of the Title Review Period, Seller shall elect either to attempt to
cure or not cure any such item by written notice sent to Buyer within five (5) Business Days after its receipt of notice from
Buyer, and if Seller commits in writing to attempt to cure any such item, then Seller shall be given until the Closing Date to
cure any such defect. In the event Seller fails to notify Buyer of its election within such five (5) Business Day period, Seller
shall be deemed to have elected to cure such item. In the event Seller shall fail to cure a defect which Seller has committed
in writing to cure prior to Closing, or if a new title defect arises after the date of Buyer’s Title Commitment or Survey,
as applicable, but prior to Closing, then Buyer may elect, in Buyer’s sole and absolute discretion: (i) to waive such objection
(in which event such items shall become “Permitted Exceptions”) and proceed to Closing, or (ii) to terminate this
Contract and receive a return of the Earnest Money Deposit, and any interest thereon. The items shown on the Title Commitment
which are not objected to by Buyer as set forth above (other than exceptions and title defects

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arising after the title review period and
other than those standard exceptions which are ordinarily and customarily omitted in the state in which the applicable Hotel is
located, so long as Seller provides the appropriate owner’s affidavit, gap indemnity or other documentation reasonably required
by the Title Company for such omission) are hereinafter referred to as the “Permitted Exceptions.” In
no event shall Permitted Exceptions include liens or documents evidencing liens, securing any indebtedness (including vehicle or
FF&E leases or financing arrangements), any mechanics’ or materialmen’s liens or any claims or potential claims
therefor covering the Property or any portion thereof resulting from an act or omission of Seller (“Seller Liens”),
each of which shall be paid in full by Seller and released at Closing. If a vehicle or FF&E lease or other financing cannot
be released at Closing, Seller shall credit Buyer at Closing with the amount necessary to fully pay off such lease or financing
over its term. Buyer acknowledges that Seller currently leases a vehicle (the “Van Lease”) to serve the property. Buyer
shall have the option to be exercised on or before the expiration of the Review Period to either take possession of the vehicle
and assume the Van Lease or notify Seller that Buyer does not wish to take possession of the van in which case Seller shall retain
the van and the Van Lease obligation. Buyer acknowledges that the Property is part of a tax incremental financing development,
subject to a Redevelopment Agreement with the City of Omaha approved November 21, 2006 (the “TIF”), Buyer and agrees
to be bound by and comply with all terms, conditions and covenants of the TIF. The TIF shall be considered a Permitted Exception.

 

Article
V

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT

 

At or prior to the Closing, Seller shall terminate the Existing
Management Agreement and the Existing Franchise Agreement, and Seller shall be solely responsible for all claims and liabilities
arising thereunder on, prior to or following the Closing Date, including outstanding fees, charges or costs and further including
the repayment of any key money, if any. As a condition to Closing, Buyer shall enter into the New Franchise Agreement, effective
as of the Closing Date, containing terms and conditions acceptable to Buyer including, without limitation, a franchise term of
not less than ten years. Seller shall be responsible for paying all costs related to the termination of the Existing Management
Agreement. Buyer shall be responsible for paying all reasonable and actual costs of the Franchisor related to the termination of
the Existing Franchise Agreement. Seller shall use best efforts to promptly provide all information required by the Franchisor
in connection with the New Franchise Agreement, and Seller and Buyer shall diligently pursue obtaining each the same. Buyer covenants
and agrees to submit a complete franchise application, including all required deposits, to Franchisor for the New Franchise Agreement
no later than the end of the Review Period, and to provide Seller evidence of submission on or before the expiration of the Review
Period in the form of a written receipt from Franchisor of the franchise deposit and a complete application. In the event Buyer
fails to comply with the foregoing, this condition shall be deemed waived by Buyer. Buyer and Seller shall agree to the form of
the New Management Agreement during the first fifteen (15) days of the Review Period and shall execute an amendment to this Contract
attaching such form as Exhibit H. At Closing, Manager and Buyer shall enter into the New Management Agreement.

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Article
VI

BROKERS

 

Seller and Buyer each represents and warrants
to the other that it has not engaged any broker, finder or other party in connection with the transaction contemplated by this
Contract. Buyer and Seller each agree to save and hold the other harmless from any and all losses, damages, liabilities, costs
and expenses (including, without limitation, attorneys’ fees) involving claims made by any other agent, broker, or other
person by or through the acts of Buyer or Seller, respectively, in connection with this transaction.

 

Article
VII

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

7.1
Seller’s Representations, Warranties and Covenants. Seller hereby represents, warrants and covenants to Buyer
as follows:

 

(a) Authority;
No Conflicts. Seller is a limited liability company duly formed, validly existing and in good standing in the State of Wisconsin.
Seller has obtained all necessary consents to enter into and perform this Contract and is fully authorized to enter into and perform
this Contract and to complete the transactions contemplated by this Contract. No consent or approval of any person, entity or governmental
authority is required for the execution, delivery or performance by Seller of this Contract, except as set forth in Exhibit
D, and this Contract is hereby binding and enforceable against Seller subject to the consent of Seller’s members per
Exhibit D. Neither the execution nor the performance of, or compliance with, this Contract by Seller has resulted, or will
result, in any violation of, or default under, or acceleration of, any obligation under any existing corporate charter, certificate
of incorporation, bylaw, articles of organization, limited liability company agreement or regulations, partnership agreement or
other organizational documents and under any, mortgage indenture, lien agreement, promissory note, contract, or permit, or any
judgment, decree, order, restrictive covenant, statute, rule or regulation, applicable to Seller or to the Hotel.

 

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

 

(c) Bankruptcy.
Neither Seller, nor to Seller’s knowledge, any of its partners or members, is the subject of any bankruptcy proceeding, receivership
proceeding or other insolvency, dissolution, reorganization or similar proceeding.

 

(d) Property
Agreements. A complete list of all FF&E Leases, Service Contracts and Leases (other than those entered into by the Existing
Manager on its own behalf) used in or otherwise relating to the operation and business of the Hotel is attached hereto as Exhibit
C (or if Exhibit C is not completed as of the date of signing of this Contract, the same will be delivered within two (2) Business
Days following the date of this Contract). The assets constituting the Property to be conveyed to Buyer hereunder constitute all
of the property and assets of Seller used in connection with the operation and business of the Hotel. There are no leases, license
agreements, leasing agent’s agreements, equipment leases, building service

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agreements, maintenance contracts,
suppliers contracts, warranty contracts, operating agreements, or other agreements (i) to which Seller is a party or an assignee,
or (ii) to Seller’s knowledge, binding upon the Hotel, relating to the ownership, occupancy, operation, management or maintenance
of the Real Property, FF&E, Supplies or Tradenames, except for those Service Contracts, Leases, Warranties and FF&E Leases
disclosed on Exhibit C or to be delivered to Buyer pursuant to Section 3.1. The Service Contracts, Leases, Warranties and
FF&E Leases disclosed on Exhibit C or to be delivered to Buyer pursuant to Section 3.1 are in full force and effect,
and no material default has occurred and is continuing thereunder and no circumstances exist which, with the giving of notice,
the lapse of time or both, would constitute such a default. No party has any right or option to acquire the Hotel or any portion
thereof, other than Buyer.

 

(e) Pending
Claims. To Seller’s actual knowledge, there are no: (i) claims, demands, litigation, proceedings or governmental investigations
pending or threatened (and related to the business or assets of the Hotel) against Seller, the Existing Manager or any Affiliate
of any of them (collectively, “Seller Parties”), except as set forth on Exhibit F attached hereto
and incorporated herein by reference, (ii) special assessments or extraordinary taxes except as set forth in the Title Commitment
or (iii) pending or threatened condemnation or eminent domain proceedings which would affect the Property or any part thereof.
There are no: pending arbitration proceedings or unsatisfied arbitration awards, or judicial proceedings or orders respecting awards,
which might become a lien on the Property or any portion thereof, pending unfair labor practice charges or complaints, unsatisfied
unfair labor practice orders or judicial proceedings or orders with respect thereto, pending charges or complaints with or by city,
state or federal civil or human rights agencies, unremedied orders by such agencies or judicial proceedings or orders with respect
to obligations under city, state or federal civil or human rights or antidiscrimination laws or executive orders affecting the
Hotel, or other pending, actual or, to Seller’s knowledge, threatened litigation claims, charges, complaints, petitions or
unsatisfied orders by or before any administrative agency or court which affect the Hotel or might become a lien on the Hotel (collectively,
the “Pending Claims”).

 

(f) Environmental.
With respect to environmental matters, to Seller’s actual knowledge, without investigation, (i) there has been no Release
or threat of Release of Hazardous Materials in, on, under, to, from or in the area of the Real Property, except as disclosed in
the reports and documents set forth on Exhibit E attached hereto and incorporated herein by reference, (ii) no portion of
the Property is being used for the treatment, storage, disposal or other handling of Hazardous Materials or machinery containing
Hazardous Materials other than standard amounts of cleaning supplies and chlorine for the swimming pool, all of which are stored
on the Property in strict accordance with applicable Environmental Requirements and do not exceed limits permitted under applicable
laws, including without limitation Environmental Requirements, (iii) no underground storage tanks are currently located on or in
the Real Property or any portion thereof, (iv) no environmental investigation, administrative order, notification, consent order,
litigation, claim, judgment or settlement with respect to the Property or any portion thereof is pending or threatened in writing,
(v) there is not currently and, to Seller’s actual knowledge, never has been any mold, fungal or other microbial growth in
or on the Real Property, or existing conditions within buildings, structures or mechanical equipment serving such buildings or
structures, that could reasonably be expected to result in material liability or material costs or expenses to remediate the mold,
fungal or

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microbial growth, or to remedy such
conditions that could reasonably be expected to result in such growth, and (vi) except as disclosed on Exhibit E, there
are no reports or other documentation regarding the environmental condition of the Real Property in the possession of Seller or
Seller’s Affiliates, consultants, contractors or agents. As used in this Contract: “Hazardous Materials”
means (1) “hazardous wastes” as defined by the Resource Conservation and Recovery Act of 1976, as amended from time
to time (“RCRA”), (2) “hazardous substances” as defined by the Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (42 U.S.C. 9601 et seq.), as amended by the Superfund Amendment and Reauthorization Act
of 1986 and as otherwise amended from time to time (“CERCLA”); (3) “toxic substances” as
defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”), (4) “hazardous
materials” as defined by the Hazardous Materials Transportation Act, as amended from time to time (“HMTA”),
(5) asbestos, oil or other petroleum products, radioactive materials, urea formaldehyde foam insulation, radon gas and transformers
or other equipment that contains dielectric fluid containing polychlorinated biphenyls and (6) any substance whose presence is
detrimental or hazardous to health or the environment, including, without limitation, microbial or fungal matter or mold, or is
otherwise regulated by federal, state and local environmental laws (including, without limitation, RCRA, CERCLA, TSCA, HMTA), rules,
regulations and orders, regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials
or environmental, health or safety compliance (collectively, “Environmental Requirements”). As used in
this Contract: “Release” means spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping or disposing.

 

(g) Title
and Liens. Except for Seller Liens to be released at Closing, to Seller’s actual knowledge, Seller has good and marketable
fee simple absolute title to the Real Property, subject only to the Permitted Exceptions. Except for the FF&E subject to the
FF&E Leases and any applicable Permitted Exceptions, Seller has good and marketable title to the Personal Property, free and
clear of all liens, claims, encumbrances or other rights whatsoever (other than the Seller Liens which must be released at Closing),
and there are no other liens, claims, encumbrances or other rights pending or of which any Seller Party has received notice or
which are otherwise known to any Seller Party related to any other Personal Property.

 

(h) Utilities.
All appropriate utilities, including sanitary and storm sewers, water, gas, telephone, cable and electricity, are, to Seller’s
actual knowledge, currently sufficient and available to service the Hotel and all installation, connection or “tap-on”,
usage and similar fees have been paid.

 

(i) Licenses,
Permits and Approvals. Seller has not received any written notice, and Seller has no actual knowledge that the Property fails
to materially comply with all applicable licenses, permits and approvals and federal, state or local statutes, laws, ordinances,
rules, regulations, requirements and codes including, without limitation, those regarding zoning, land use, building, fire, health,
safety, environmental, subdivision, water quality, sanitation controls and the Americans with Disabilities Act (excluding compliance
with ADA requirements related to pool lifts), and similar rules and regulations relating and/or applicable to the ownership, use
and operation of the Property as it is now operated. Seller has received all licenses, permits and approvals required or needed
for the lawful conduct, occupancy and operation of the business of the Hotel, and each license and permit is in full force and
effect, and

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will be received and in full force
and effect as of the Closing. No licenses, permits or approvals necessary for the lawful conduct, occupancy or operation of the
business of the Hotel, to Seller’s actual knowledge requires any approval of a governmental authority for transfer of the
Property except as set forth in Exhibit D.

 

(j) Financial
Statements. Seller will deliver the Financial Statements, each of which is, to Seller’s actual knowledge, complete and
accurate in all material respects and fairly presents the results of operations of the Hotel for the respective periods represented
thereby. Seller has relied upon the Financial Statements in connection with its ownership and operation of the Hotel, and there
are no independent audits or financial statements prepared by third parties relating to the operation of the Hotel.

 

(k) Employees.
All employees employed at the Hotel are the employees of the Seller or Seller’s Affiliates. There are, to Seller’s
knowledge, no (i) unions organized at the Hotel, (ii) union organizing attempts, strikes, organized work stoppages or slow downs,
or any other labor disputes pending or threatened with respect to any of the employees at the Hotel, or (iii) collective bargaining
or other labor agreements to which Seller or the Existing Manager or the Hotel is bound with respect to any employees employed
at the Hotel.

 

(l) Operations.
The Hotel has at all times been operated by Existing Manager materially in accordance with all applicable laws, rules, regulations,
ordinances and codes.

 

(m) Existing
Management and Franchise Agreements. There are no other management agreements, franchise agreements, license agreements or
similar agreements for the operation or management of the Hotel or relating to the Brand, to which Seller is a party or which are
binding upon the Property, except for the Existing Management Agreement and the Existing Franchise Agreement, and as listed on
Exhibits C and D, attached. The Improvements materially comply with, and the Hotel is being operated materially in accordance with,
all requirements of such Existing Management Agreement and the Existing Franchise Agreement and all other requirements of the Existing
Manager and the Franchisor, including all “brand standard” requirements of the Existing Manager and the Franchisor.
The Existing Management Agreement and the Existing Franchise Agreement are in full force and effect, and shall remain in full force
and effect until the termination of the Existing Management Agreement and the Existing Franchise Agreement at Closing, as provided
in Article V hereof. No default has occurred and is continuing under the Existing Management Agreement or the Existing Franchise
Agreement, and no circumstances exist which, with the giving of notice, the lapse of time or both, would constitute such a default.

 

(n) Construction
of Hotel. To the actual knowledge of Seller, without investigation, necessary easements for ingress and egress, drainage, signage
and utilities serving the Hotel have either been dedicated to the public, conveyed to the appropriate utility or will be conveyed
to Buyer along with the Property.

 

(o) AS
IS. Notwithstanding the foregoing, Buyer acknowledges that it is being given a full opportunity to completely inspect the Property,
the operation thereof, and the financial information in connection therewith. Therefore, except as specifically provided in this
Contract, Seller is conveying and Buyer is accepting the Property in strictly “AS IS” condition

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with all faults and, except for the
specific warranties and representations provided in this Contract, Seller is not making any further warranties or representations
express or implied, including, without limitation, any warranty of merchantability or fitness for a particular purpose. Buyer acknowledges
that, as of the Closing Date, Buyer will be familiar with the Property and will have made such independent investigations as Buyer
deems necessary or appropriate concerning the Property.

 

7.2
Buyer’s Representations, Warranties and Covenants. Buyer represents, warrants and covenants:

 

(a) Authority.
Buyer is a corporation duly formed, validly existing and in good standing in the Commonwealth of Virginia. Buyer has received all
necessary authorization of the Board of Directors of Buyer to complete the transactions contemplated by this Contract. No other
consent or approval of any person, entity or governmental authority is required for the execution, delivery or performance by Buyer
of this Contract, and this Contract is hereby binding and enforceable against Buyer.

 

(b) Bankruptcy.
Buyer is not insolvent nor the subject of any bankruptcy proceeding, receivership proceeding or other insolvency, dissolution,
reorganization or similar proceeding.

 

7.3
Survival. All of the representations and warranties are true, correct and complete in all material respects as of
the date hereof and the statements set forth therein (without qualification or limitation as to a party’s knowledge thereof
except as expressly provided for in this Article VII) shall be true, correct and complete in all material respects as of the Closing
Date. All of the representations and warranties made herein shall survive Closing for a period of twelve (12) months and shall
not be deemed to merge into or be waived by the Deed or any other closing documents.

 

Article
VIII

ADDITIONAL COVENANTS

 

8.1
Subsequent Developments. After the date of this Contract and until the Closing Date, Seller shall use best efforts
to keep Buyer fully informed of all subsequent developments of which Seller has knowledge (“Subsequent Developments”)
which would cause any of Seller’s representations or warranties contained in this Contract to be no longer accurate in any
material respect.

 

8.2
Operations. From and after the date hereof through the Closing on the Property, Seller shall comply with the Existing
Management Agreement and the Existing Franchise Agreement and keep the same in full force and effect and shall perform and comply
with all of the following subject to and in accordance with the terms of such agreements:

 

(a) Continue
to maintain the Property generally in accordance with prudent business practices and pursuant to and in compliance with the Existing
Management Agreement and the Existing Franchise Agreement, including, without limitation, (i) using reasonable efforts to keep
available the services of all employees at the Hotel and to preserve its relations with guests, suppliers and other parties doing
business with Seller with respect to the Hotel, (ii)

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accepting booking contracts for the
use of the Hotel’s facilities and retaining such bookings in accordance with the terms of the Existing Management Agreement
and the Existing Franchise Agreement, (iii) maintaining the current level of advertising and other promotional activities for the
Hotel’s facilities, (iv) maintaining the present level of insurance with respect to the Hotel in full force and effect until
the Closing Date for the Hotel and (v) remaining in compliance in all material respects with all current Licenses;

 

(b) Keep,
observe, and perform in all material respects all its obligations under and pursuant to the Leases, the Service Contracts, the
FF&E Leases, the Existing Management Agreement, the Existing Franchise Agreement, the Contracts, Plans and Specs, the Warranties
and all other applicable contractual arrangements relating to the Hotel;

 

(c) Not
cause or permit the removal of FF&E from the Hotel except for the purpose of discarding worn and valueless items that have
been replaced with FF&E of equal or better quality; timely make all repairs, maintenance, and replacements to keep all FF&E
and all other Personal Property and all Real Property in good operating condition; keep and maintain the Hotel in a state of repair
and condition materially the same as it currently is, reasonable and ordinary wear and tear excepted; and not commit waste of any
portion of the Hotel;

 

(d) Maintain
the levels and quality of the Personal Property generally at the levels and quality existing on the date hereof and keep merchandise,
supplies and inventory adequately stocked, consistent with good business practice, as if the sale of the Hotel hereunder were not
to occur, including, without limitation, maintaining linens and bath towels at least at a 2-par level for all suites or rooms of
the Hotel;

 

(e) Advise
Buyer promptly of any litigation, arbitration, or administrative hearing before any court or governmental agency concerning or
affecting the Hotel which is instituted or threatened after the date of this Contract or if any representation or warranty contained
in this Contract shall become false;

 

(f) Not
take, or purposefully omit to take, any action that would have the effect of violating any of the representations, warranties,
covenants or agreements of Seller contained in this Contract;

 

(g) Pay
or cause to be paid all taxes, assessments and other impositions levied or assessed on the Hotel or any part thereof prior to the
delinquency date (unless the same are in good faith being contested), and comply in all material respects with all federal, state,
and municipal laws, ordinances, regulations and orders relating to the Hotel;

 

(h) Not
sell or assign, or enter into any agreement to sell or assign, or create or permit to exist any lien or encumbrance (other than
a Permitted Exception) on, the Property or any portion thereof; and

 

(i) Not
allow any permit, receipt, license, franchise or right currently in existence with respect to the operation, use, occupancy or
maintenance of the Hotel to expire, be canceled or otherwise terminated.

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Neither Seller nor Existing Manager shall,
without first obtaining the written approval of Buyer, which approval shall not be unreasonably withheld, enter into any new FF&E
Leases, Service Contracts, Leases or other contracts or agreements related to the Hotel, or extend any existing such agreements,
unless such agreements (x) can be terminated, without payment or penalty, upon thirty (30) days’ prior notice or (y) will
expire prior to the Closing Date.

 

8.3
Third Party Consents. Prior to the Closing Date, Seller shall, at its expense, use best efforts to (i) obtain any
and all third party consents and approvals (x) required in order to transfer the Hotel to Buyer, or (y) which, if not obtained,
would materially adversely affect the operation of the Hotel, including, without limitation, all consents and approvals referred
to on Exhibit D and (ii) use best efforts to obtain all other third party consents and approvals (all of such consents
and approvals in (i) and (ii) above being referred to collectively as, the “Third Party Consents”).

 

8.4
Employees. At a mutually agreed upon time after the expiration of the Review Period and prior to Closing, Buyer
and its employees, representatives and agents shall, provided they are accompanied by Seller’s representatives if Seller
so desires, have the right to communicate with Seller’s staff, and, subject to the approval of the Existing Manager, the
Hotel staff and the Existing Manager’s staff, including without limitation the general manager, the director of sales, the
engineering staff and other key management employees of the Hotel. Buyer shall not interfere with the operations of the Hotel
while engaging in such communication in a manner that materially adversely affects the operation of any Property or the Existing
Management Agreements.

 

8.5
Estoppel Certificates. Seller shall obtain from (i) each tenant under any Lease affecting the Hotel (but not from
current or prospective occupants of hotel rooms and suites within the Hotel), (ii) each lessor under any FF&E Lease for the
Hotel identified by Buyer as a material FF&E Lease, and (iii) each declarant, property owners’ association or similar
entity having authority over the development of which the Property is a part, if any, the estoppel certificates substantially
in the forms provided by Buyer to Seller, and deliver to Buyer on or before Closing. The information contained in such estoppel
certificates shall be subject to Buyer’s reasonable approval and shall contain no materially adverse information (e.g.,
no material and uncured defaults by the Property as to use, construction or otherwise and no uncontested past due fees, dues,
charges or assessments).

 

8.6
Access to Financial Information. Buyer’s representatives shall have access to, and Seller and its Affiliates
(at no out-of-pocket expense to Seller or such Affiliates) shall cooperate with Buyer and furnish upon request, all financial
and other information relating to the Hotel’s operations to the extent necessary to enable Buyer’s representatives
to prepare audited financial statements in conformity with Regulation S-X of the Securities and Exchange Commission (the “SEC”)
and other applicable rules and regulations of the SEC and to enable them to prepare a registration statement, report or disclosure
statement for filing with the SEC on behalf of Buyer or its Affiliates, whether before or after Closing and regardless of whether
such information is included in the Records to be transferred to Buyer hereunder. Seller shall also provide to Buyer’s representative
a signed representation letter in form and substance reasonably acceptable to Seller sufficient to enable an independent public
accountant to render an opinion on the financial statements related to the Hotel. Buyer will reimburse Seller for costs reasonably
incurred by

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Seller to comply with the requirements of
the preceding sentence to the extent that Seller is required to incur costs not in the ordinary course of business for third parties
to provide such representation letters. The provisions of this Section shall survive Closing or termination of this Contract.

 

8.7
Bulk Sales. At Seller’s risk and expense, Seller shall take all steps necessary to comply with the requirements
of a transferor under all bulk transfer laws, if any, that are applicable to the transactions contemplated by this Contract.

 

8.8
Indemnification. If the transactions contemplated by this Contract are consummated as provided herein:

 

(a) Indemnification
of Buyer. Without in any way limiting or diminishing the warranties, representations or agreements herein contained or the
rights or remedies available to Buyer for a breach hereof, Seller hereby agrees to indemnify, defend and hold harmless Buyer and
its respective designees, successors and assigns from and against all losses, judgments, liabilities, claims, damages or expenses
(including reasonable attorneys’ fees) of every kind, nature and description in existence before, on or after Closing, whether
known or unknown, absolute or continent, joint or several, arising out of or relating to:

 

(i) any
claim made or asserted against Buyer or any of the Property by a creditor of Seller as a direct result of any act or omission of
Seller, including any claims based on or alleging a violation of any bulk sales act or other similar laws;

 

(ii) the
material breach of any representation, warranty, covenant or agreement of Seller contained in this Contract, except to the extent
that Buyer had actual knowledge of such breach prior to Closing;

 

(iii) any
liability or obligation of Seller incurred or arising prior to Closing not expressly assumed by Buyer pursuant to this Contract;

 

(iv) any
claim made or asserted by an employee of the Hotel arising directly out of Seller’s decision to sell the Property; and

 

(v) the
conduct and operation by or on behalf of Seller of its Hotel or the ownership, use or operation of its Property prior to Closing.

 

(b) Indemnification
of Seller. Without in any way limiting or diminishing the warranties, representations or agreements herein contained or the
rights or remedies available to Seller for a breach hereof, Buyer hereby agrees, with respect to this Contract, to indemnify, defend
and hold harmless Seller from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable
attorneys’ fees) of every kind, nature and description in existence before, on or after Closing, whether known or unknown,
absolute or contingent, joint or several, arising out of or relating to:

 

(i) the
breach of any representation, warranty, covenant or agreement of Buyer contained in this Contract, except to the extent that Seller
had actual knowledge of such breach prior to Closing;

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(ii) the
conduct and operation by or on behalf of Buyer of its business at the Hotel or the ownership, use or operation of the Property
after the Closing; and

 

(iii) any
liability or obligation of Seller expressly assumed by Buyer at or prior to Closing.

 

(c) Indemnification
Procedure for Claims of Third Parties. Indemnification, with respect to claims resulting from the assertion of liability by
those not parties to this Contract (including governmental claims for penalties, fines and assessments), shall be subject to the
following terms and conditions:

 

(i) The
party seeking indemnification (the “Indemnified Party”) shall give prompt written notice to the party
or parties from which it is seeking indemnification (the “Indemnifying Party”) of any assertion of liability
by a third party which might give rise to a claim for indemnification based on the foregoing provisions of this Section 8.8, which
notice shall state the nature and basis of the assertion and the amount thereof, to the extent known; provided, however, that no
delay on the part of the Indemnified Party in giving notice shall relieve the Indemnifying Party of any obligation to indemnify
unless (and then solely to the extent that) the Indemnifying Party is prejudiced by such delay.

 

(ii) If
in any action, suit or proceeding (a “Legal Action”) the relief sought is solely the payment of money
damages, and if the Indemnifying Party specifically agrees in writing to indemnify such Indemnified Party with respect thereto
and demonstrates to the reasonable satisfaction of such Indemnified Party its financial ability to do so, the Indemnifying Party
shall have the right, commencing thirty (30) days after such notice, at its option, to elect to settle, compromise or defend, pursuant
to this paragraph, by its own counsel and at its own expense, any such Legal Action involving such Indemnified Party’s asserted
liability. If the Indemnifying Party does not undertake to settle, compromise or defend any such Legal Action, such settlement,
compromise or defense shall be conducted in the sole discretion of such Indemnified Party, but such Indemnified Party shall provide
the Indemnifying Party with such information concerning such settlement, compromise or defense as the Indemnifying Party may reasonably
request from time to time. If the Indemnifying Party undertakes to settle, compromise or defend any such asserted liability, it
shall notify such Indemnified Party in writing of its intention to do so within thirty (30) days of notice from such Indemnified
Party provided above.

 

(iii) Notwithstanding
the provisions of the previous subsection of this Contract, until the Indemnifying Party shall have assumed the defense of the
Legal Action, the defense shall be handled by the Indemnified Party. Furthermore, (x) if the Indemnified Party shall have reasonably
concluded that there are likely to be defenses available to it that are different from or in addition to those available to the
Indemnifying Party; (y) if the Legal Action involves other than money damages and seeks injunctive or other equitable relief; or
(z) if a judgment against Buyer, as the Indemnified Party, in the Legal Action will, in the good faith opinion of Buyer, establish
a custom or precedent which will be adverse to the best interest of the continuing business of the Hotel, the

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Indemnifying Party, shall
not be entitled to assume the defense of the Legal Action and the defense shall be handled by the Indemnified Party, provided that,
in the case of clause (z), the Indemnifying Party shall have the right to approve legal counsel selected by the Indemnified Party,
such approval not to be unreasonably withheld. If the defense of the Legal Action is handled by the Indemnified Party under the
provisions of this subsection, the Indemnifying Party shall pay all legal and other expenses reasonably incurred by the Indemnified
Party in conducting such defense.

 

(iv) In
any Legal Action initiated by a third party and defended by the Indemnifying Party (w) the Indemnified Party shall have the right
to be represented by advisory counsel and accountants, at its own expense, (x) the Indemnifying Party shall keep the Indemnified
Party fully informed as to the status of such Legal Action at all stages thereof, whether or not the Indemnified Party is represented
by its own counsel, (y) the Indemnifying Party shall make available to the Indemnified Party and its attorneys, accounts and other
representatives, all of its books and records relating to such Legal Action and (z) the parties shall render to each other such
assistance as may be reasonably required in order to ensure the proper and adequate defense of such Legal Action.

 

(v) In
any Legal Action initiated by a third party and defended by the Indemnifying Party, the Indemnifying Party shall not make settlement
of any claim without the written consent of the Indemnified Party, which consent shall not be unreasonably withheld. Without limiting
the generality of the foregoing, it shall not be deemed unreasonable to withhold consent to a settlement involving injunctive or
other equitable relief against the Indemnified Party or its respective assets, employees, Affiliates or business, or relief which
the Indemnified Party reasonably believes could establish a custom or precedent which will be adverse to the best interests of
its continuing business.

 

8.9
Escrow Funds. To provide for the timely payment of any post-closing claims by Buyer against Seller hereunder, at
Closing, Seller shall deposit an amount equal to One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) (the “Escrow
Funds”) which shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period of one
hundred eighty (180) days in an escrow account with the Title Company pursuant to an escrow agreement reasonably satisfactory
in form and substance to Buyer and Seller (the “Post-Closing Agreement”), which escrow and Post-Closing Agreement
shall be established and entered into at Closing and shall be a condition to Buyer’s obligations under this Contract. If
no claims have been asserted by Buyer against Seller, or all such claims have been satisfied, within such one hundred eighty (180)
day period, the Escrow Funds deposited by Seller shall be released to Seller.

 

8.10
Liquor Licenses. As a condition to Buyer’s obligations under this Contract, (i) the Manager or an Affiliate
thereof approved by Buyer shall have or shall have obtained all liquor licenses and alcoholic beverage licenses necessary or desirable
to operate any restaurants, bars and lounges presently located within the Hotel (collectively, the “Liquor Licenses”)
and, in the case of an Affiliate of the Manager, the Hotel has the right to use such Liquor License, (ii) if permitted under the
laws of the jurisdiction in which the Hotel is located, the Manager shall

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execute and file any and all necessary forms,
applications and other documents (and Seller shall cooperate with the Manager in filing such forms, applications and other documents)
(including interim or transition agreements) with the appropriate liquor and alcoholic beverage authorities so that the Liquor
Licenses remain in full force and effect upon completion of Closing. Notwithstanding the foregoing, Buyer covenants and agrees
to submit a complete application for the Liquor Licenses with the appropriate liquor and alcoholic beverage authorities prior to
the end of the Review Period , and to provide Seller evidence of submission on or before the expiration of the Review Period in
the form of a written receipt from such liquor and alcoholic beverage authorities. In the event Buyer fails to comply with the
foregoing and has not terminated this Contract as provided in Section 9.1, this condition shall be deemed waived by Buyer.

 

Article
IX

CONDITIONS FOR CLOSING

 

9.1
Buyer’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to Buyer’s
right to cancel this Contract during the Review Period, the duties and obligations of Buyer to proceed to Closing under the terms
and provisions of this Contract are and shall be expressly subject to strict compliance with, and satisfaction or waiver of, each
of the conditions and contingencies set forth in this Section 9.1, each of which shall be deemed material to this Contract. In
the event of the failure of any of the conditions set forth in this Section 9.1 or of any other condition to Buyer’s obligations
provided for in this Contract, which condition is not waived in writing by Buyer, Buyer shall have the right at its option to
declare this Contract terminated, in which case the Earnest Money Deposit and any interest thereon shall be immediately returned
to Buyer and each of the parties shall be relieved from further liability to the other, except as otherwise expressly provided
herein, with respect to this Contract.

 

(a) All
of Seller’s representations and warranties contained in or made pursuant to this Contract shall be true and correct in all
material respects as if made again on the Closing Date; provided, however, in the event Buyer has actual knowledge of any inaccuracy
of Seller’s representations or warranties in any material respect prior to the end of the Review Period and Buyer does not
object to such inaccuracy prior to the end of the Review Period, then Buyer shall be deemed to have waived its right to declare
this Contract terminated as a result of such inaccuracy.

 

(b) Buyer
shall have received all of the instruments and conveyances listed in Section 10.2.

 

(c) Seller
shall have performed, observed and complied in all material respects with all of the covenants, agreements, closing requirements
and conditions required by this Contract to be performed, observed and complied with by Seller, as and when required hereunder.

 

(d) All
Liquor Licenses shall be in full force and effect and shall remain in full force and effect following Closing and shall have been
or shall be transferred to, or new Liquor Licenses issued to, the Manager or an Affiliate thereof approved by Buyer at or as of
Closing, and Buyer shall have received satisfactory evidence thereof.

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(e) Third
Party Consents in form and substance satisfactory to Buyer shall have been obtained and furnished to Buyer.

 

(f) The
Escrow Funds shall have been deposited in the escrow account pursuant to the Post-Closing Agreement and the parties thereto shall
have entered into the Post-Closing Agreement.

 

(g) The
Existing Management Agreement and the Existing Franchise Agreement shall have been terminated.

 

(h) Buyer
and the Franchisor shall have executed and delivered the New Franchise Agreement, in each case upon terms and conditions acceptable
to Buyer in its sole and absolute discretion.

 

(i) Buyer
and Manager shall have executed and delivered the New Management Agreement.

 

9.2
Seller’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to Seller’s
right to cancel this Contract during the Review Period, the duties and obligations of Seller to proceed to Closing under the terms
and provisions of this Contract are and shall be expressly subject to strict compliance with, and satisfaction or waiver of, each
of the conditions and contingencies set forth in this Section 9.2, each of which shall be deemed material to this Contract. In
the event of the failure of any of the conditions set forth in this Section 9.2, which condition is not waived in writing by Seller,
Seller shall have the right at its option to declare this Contract terminated and null and void, in which case the remaining Earnest
Money Deposit and any interest thereon shall be delivered to Seller and each of the parties shall be relieved from further liability
to the other, except as otherwise expressly provided herein.

 

(a) All
of Buyer’s representations and warranties contained in or made pursuant to this Contract shall be true and correct in all
material respects as if made again on the Closing Date.

 

(b) Seller
shall have received all of the money, instruments and conveyances listed in Section 10.3.

 

(c) Buyer
shall have performed, observed and complied in all material respects with all of the covenants, agreements, closing requirements
and conditions required by this Contract to be performed, observed and complied with by Buyer, as and when required hereunder.

 

(d) Seller
shall have obtained the necessary consent of its members to consummate the transaction described herein.

 

(e) Buyer
and Manager shall have executed and delivered the New Management Agreement.

 

(f) Seller’s
obligation to consummate this transaction is contingent on the concurrent closing of the purchase and sale between Buyer (or buyers
affiliated with Buyer) and

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sellers affiliated with Seller for
the properties described on Exhibit I, attached hereto, evidenced by separate purchase agreements of even date herewith
(the “Related Purchase Agreements”). If any buyer fails to timely make any earnest money deposit under such Related
Purchase Agreements, then this Contract shall also be voidable at the Seller’s election at any time prior to purchaser having
made the Earnest Money Deposit, as the case may be, under such Related Purchase Agreements as if such failure occurred under this
Contract. If either party defaults under the Related Purchase Agreements, then such default shall be a failure of a condition to
closing under this Contract with the non-breaching party (or its affiliate, as the case may be) being entitled to the rights provided
for in Section 9.1 or 9.2 hereunder, as applicable.

 

Article
X

CLOSING AND CONVEYANCE

 

10.1
Closing. Unless otherwise agreed by Buyer and Seller, the Closing on the Property shall occur on a date selected
by Buyer that is the later of (a) fifteen (15) Business Days after expiration of the Review Period, or (b) fifteen (15) Business
Days after Buyer receives the New Franchise Agreement executed by the Franchisor, provided in any case that all conditions to
Closing by Buyer and Seller hereunder have been satisfied. The date on which the Closing is to occur as provided in this Section
10.1, or such other date as may be agreed upon by Buyer and Seller, is referred to in this Contract as the “Closing
Date” for the Property. The Closing shall be held via escrow at the offices of the Title Company, or as otherwise
determined by Buyer and Seller. In no event shall the Closing Date be later than December 31, 2013.

 

10.2
Deliveries of Seller. At Closing, Seller shall deliver to Buyer the following, and, as appropriate, all instruments
shall be properly executed and conveyance instruments to be acknowledged in recordable form (the terms, provisions and conditions
of all instruments not attached hereto as Exhibits shall be mutually agreed upon by Buyer and Seller prior to such Closing):

 

(a) Deed.
A Special or Limited Warranty deed conveying to Buyer fee title to the Real Property subject only to the Permitted Exceptions (the
“Deed”).

 

(b) Affidavit
of Value. An Affidavit of Value indicating the allocation of the Purchase Price.

 

(c) Bills
of Sale. Bills of sale to Buyer and/or its designated Lessee, conveying title to the tangible Personal Property (other than
the alcoholic beverage inventories, which, at Buyer’s election, shall be transferred by Seller to the Manager as holder of
the Liquor Licenses required for operation of the Hotel).

 

(d) Existing
Management and Franchise Agreements. The termination of the Existing Management Agreement and the Existing Franchise Agreement.

 

(e) General
Assignments. Assignments of all of Seller’s right, title and interest in and to all FF&E Leases, Service Contracts
and Leases identified on Exhibit C hereto (the “Hotel Contracts”). The assignment shall also be
a general assignment and shall provide for the assignment of all of Seller’s right, title and interest in all Records, Warranties,
Licenses, Tradenames, Contracts, Plans and Specs and all other intangible Personal Property applicable to

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the Hotel. The assignments shall contain
cross-indemnities by Buyer and Seller for their respective periods of ownership.

 

(f) FIRPTA;
1099. A FIRPTA Affidavit or Transferor’s Certificate of Non-Foreign Status as required by Section 1445 of the Internal
Revenue Code and an IRS Form 1099.

 

(g) Title
Company Documents. All affidavits, gap indemnity agreements and other documents reasonably required by the Title Company. At
Buyer’s sole expense, Buyer shall have obtained an irrevocable commitment directly from the Title Company (or in the event
the Title Company is not willing to issue said irrevocable commitment, then from such other national title company as may be selected
by either Buyer or Seller) for issuance of an Owner’s Policy of Title Insurance to Buyer insuring good and marketable fee
simple title to the Real Property constituting part of the Property, subject only to the Permitted Exceptions in the amount of
the Purchase Price.

 

(h) Possession;
Estoppel Certificates. Possession of the Property, subject only to rights of guests in possession and tenants pursuant to written
leases included in the Leases, and estoppel certificates from tenants under Leases and the lessors under FF&E Leases in form
and substance acceptable to Buyer.

 

(i) Vehicle
Titles. The necessary certificates of titles duly endorsed for transfer together with any required affidavits and other documentation
necessary for the transfer of title or assignment of leases from Seller to Buyer of any motor vehicles used in connection with
the Hotel’s operations.

 

(j) Authority
Documents. Certified copy of resolutions of the Members of Seller authorizing the sale of the Property contemplated by this
Contract, and/or other evidence reasonably satisfactory to Buyer and the Title Company that the person or persons executing the
closing documents on behalf of Seller have full right, power and authority to do so, along with a certificate of good standing
of Seller from the State in which the Property is located.

 

(k) Miscellaneous.
Such other instruments as are contemplated by this Contract to be executed or delivered by Seller, reasonably required by Buyer
or the Title Company, or customarily executed in the jurisdiction in which the Hotel is located, to effectuate the conveyance of
property similar to the Hotel, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles,
and interests of Seller related to the Hotel and Seller will no longer have any rights, titles, or interests in and to the Hotel.

 

(l) Plans,
Keys, Records, Etc. To the extent not previously delivered to and in the possession of Buyer, originals or copies of all Contracts,
Plans and Specs, all keys for the Hotel (which keys shall be properly tagged for identification), originals or copies of all Records,
including, without limitation, all Warranties, Licenses, Leases, FF&E Leases and Service Contracts for the Hotel.

 

(m) Closing
Statements. Seller’s Closing Statement, and a certificate confirming the truth of Seller’s representations and
warranties hereunder as of the Closing Date.

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(n) New
Management Agreement. Seller shall cause Manager to execute and deliver the New Management Agreement.

 

10.3
Buyer’s Deliveries. At Closing of the Hotel, Buyer shall deliver the following:

 

(a) Purchase
Price. The balance of the Purchase Price, adjusted for the adjustments provided for in Section 12.1, below, and less any sums
to be deducted therefrom as provided in Section 2.4.

 

(b) Authority
Documents. Certified copy of resolutions of the Board of Directors of Buyer authorizing the purchase of the Hotel contemplated
by this Contract, and/or other evidence satisfactory to Seller and the Title Company that the person or persons executing the closing
documents on behalf of Buyer have full right, power and authority to do so.

 

(c) Miscellaneous.
Such other instruments as are contemplated by this Contract to be executed or delivered by Buyer, reasonably required by Seller
or the Title Company, or customarily executed in the jurisdiction in which the Hotel is located, to effectuate the conveyance of
property similar to the Hotel, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles,
and interests of Seller related to the Hotel and Seller will no longer have any rights, titles, or interests in and to the Hotel.

 

(d) Closing
Statements. Buyer’s Closing Statement, and a certificate confirming the truth of Buyer’s representations and warranties
hereunder as of the Closing Date.

 

(e) New
Management Agreement. At Closing, Buyer shall execute and deliver the New Management Agreement.

 

(f) Real
Estate Transfer Statement. At Closing, Buyer shall execute and deliver the Real Estate Transfer Statement, Form 521, for the
Douglas County Register of Deeds.

 

Article
XI

COSTS

 

All Closing costs shall be paid as set forth
below:

 

11.1
Seller’s Costs. In connection with the sale of the Property contemplated under this Contract, Seller shall
be responsible for all transfer and recordation taxes, including, without limitation, all transfer, mansion, excise, sales, use
or bulk transfer taxes or like taxes on or in connection with the transfer of the Real Property and the Personal Property constituting
part of the Property pursuant to the Bill of Sale, and all accrued taxes of Seller prior to Closing and income, sales and use
taxes and other such taxes of Seller attributable to the sale of the Property to Buyer. Seller shall be responsible for all costs
related to the termination of the Existing Management Agreement as provided in Article V. Seller shall also be responsible for
any costs and expenses of its attorneys, accountants, appraisers and other professionals, consultants and representatives. Seller
shall also be responsible for payment of all prepayment penalties and other amounts payable in connection with the pay-off of
any liens and/or indebtedness encumbering the Property (other than the Van Lease if Buyer elects to assume such lease).

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11.2
Buyer’s Costs. In connection with the purchase of the Property contemplated under this Contract, Buyer shall
be responsible for the costs and expenses of its attorneys, accountants and other professionals, consultants and representatives.
Buyer shall also be responsible for the costs and expenses in connection with the preparation of any environmental report, any
update to the survey and the costs and expenses of preparation of the title insurance commitment and the issuance of the title
insurance policy contemplated by Article IV and the per page recording charges and clerk’s fee for the Deed (if applicable).
Buyer shall also be responsible for the fees for the performance of the property improvement plan (PIP) review and report by the
Franchisor.

 

Article
XII

ADJUSTMENTS

 

12.1
Adjustments. Unless otherwise provided herein, at Closing, adjustments between the parties shall be made as of 11:59
p.m. on the eve of the Closing Date (the “Cutoff Time”), with the income and expenses accrued prior
to the Cutoff Time being allocated to Seller and the income and expenses accruing on and after the Cutoff Time being allocated
to Buyer, all as set forth below. All of such adjustments and allocations shall be made in cash at Closing and shall be collected
through and/or adjusted in accordance with the terms of the Existing Management Agreement. Except as otherwise expressly provided
herein, all apportionments and adjustments shall be made on an accrual basis in accordance with generally accepted accounting
principles. Buyer and Seller shall cooperate with Manager to mutually agree and determine the apportionments, allocations, prorations
and adjustments as of the Cutoff Time.

 

(a) Taxes.
Real property taxes that become delinquent during the year in which the Closing occurs if not timely paid will be deemed to be
current and shall be prorated as of the Cutoff Time. Taxes for all prior years shall be paid by Seller. All special assessments
against the Property for public improvements completed or commenced prior to Closing, whether or not levied or assessed prior to
Closing, shall be the obligation of and shall be paid in full by Seller. If such special assessments have not been levied or assessed
prior to Closing, then Seller’s obligation to pay such special assessments as soon as they have been levied and assessed
shall survive Closing. All personal property taxes related to the Property levied, assessed or pending for the calendar year in
which the Closing occurs (including the period prior to Closing, regardless of when due and payable) shall be prorated as of the
Cutoff Time and, if no such tax bills for such calendar year are available, such amounts shall be estimated on the basis of the
best available information for such taxes that will be due and payable on the Hotel for the calendar year in which Closing occurs.
Until final tax bills that cover the entire year during which Closing occurred (such that tax liability can reasonably be determined),
Seller’s obligation to pay its share of taxes shall continue.

 

Any incentives under the TIF shall
be retained by Seller, provided that Buyer understands that it will be required to comply with certain covenants under the TIF
for a period of time and Buyer covenants after Closing to pay real property taxes assessed against the Real Property when due.

 

(b) Utilities.
All suppliers of utilities shall be instructed to read meters or otherwise determine the charges owing as of the Closing Date for
services prior thereto, which charges shall be allocated to Seller. Charges accruing after Closing shall be allocated to Buyer.

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If elected by Seller, Seller shall
be given credit, and Buyer shall be charged, for any utility deposits transferred to and received by Buyer at Closing.

 

(c) Income/Charges.
All rents, income and charges receivable or payable under any Leases and Hotel Contracts applicable to the Property, and any deposits,
prepayments and receipts thereunder, shall be prorated between Buyer and Seller as of the Cutoff Time.

 

(d) Accounts.
For convenience of the parties, Buyer agrees to purchase the daily cash account maintained at the Hotel.

 

(e) Guest
Ledger. Subject to (f) below, all accounts receivable of registered guests at the Hotel who have not checked out and were occupying
rooms as of the Cutoff Time, shall be prorated as provided herein.

 

(f) Room
Rentals. All receipts from guest room rentals and other suite revenues for the night in which the Cutoff Time occurs shall
be split 50/50 between Buyer and Seller.

 

(g) Advance
Deposits. All prepaid rentals, room rental deposits, and all other deposits for advance registration, banquets or future services
to be provided on and after the Closing Date shall be credited to Buyer.

 

(h) Accounts
Receivable. To the extent not apportioned at Closing and subject to (e) and (f) above, all accounts receivable and credit card
claims as of the Cutoff Time shall remain the property of Seller, and Seller and Buyer agree that the monies received from debtors
owing such accounts receivable balances after Closing, shall be applied as expressly provided in such remittance, or if not specified
then to the Seller’s outstanding invoices to such account debtors in chronological order beginning with the oldest invoices,
and thereafter, to Buyer’s account.

 

(i) Accounts
Payable. To the extent not apportioned at Closing, any indebtedness, accounts payable, liabilities or obligations of any kind
or nature related to Seller or the Property for the periods prior to but not including the Closing Date shall be retained by Seller
and promptly allocated to Seller and evidence thereof shall be provided to Buyer upon request, and Buyer shall not be or become
liable therefor, except as expressly assumed by Buyer pursuant to this Contract, and invoices received in the ordinary course of
business prior to Closing shall be allocated to Seller at Closing.

 

(j) Restaurants,
Bars, Machines, Other Income. All monies received in connection with bar, restaurant, banquet and similar and other services
at the Hotel (other than amounts due from any guest and included in room rentals) prior to the close of business for each such
operation for the night in which the Cutoff Time occurs shall belong to Seller, and all other receipts and revenues (not previously
described in this Section 12.1) from the operation of any department of the Hotel shall be prorated between Seller and Buyer at
Closing.

 

12.2
Reconciliation and Final Payment. Seller and Buyer shall reasonably cooperate after Closing to make a final determination
of the allocations and prorations required under this Contract within ninety (90) days after the Closing Date; provided, however,
failure to make a

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final determination within such period shall
not relieve the parties of the obligation to make a final determination nor shall it relieve any party of the obligation to pay
the other any true-up amounts owed. Upon the final reconciliation of the allocations and prorations under this Section, the party
which owes the other party any sums hereunder shall pay such party such sums within ten (10) days after the reconciliation of such
sums. The obligations to calculate such prorations, make such reconciliations and pay any such sums shall survive the Closing.

 

12.3
Employees. Buyer shall cause the Manager to offer employment to all persons who are employees of the Hotel as of
the Closing Date. Such offer of employment shall be on such continued terms of employment (including location, compensation, seniority, benefits
and other conditions of employment) as are substantially comparable in the aggregate to those in place and offered by Seller immediately prior to
Closing. Seller shall not give notice under any applicable federal or state plant closing or similar act, including,
if applicable, the Worker Adjustment and Retraining Notification Provisions of 29 U.S.C., Section 2102 (the “WARN Act”),
the parties having agreed that a mass layoff, as that term is defined in 29 U.S.C., 2101(a)(3), will not have occurred. Any liability
for payment of all wages, salaries and benefits, including, without limitation, accrued vacation pay, sick leave, bonuses, pension
benefits, COBRA rights, and other benefits accrued or earned by and due to employees at the Hotel through the Cutoff Time, together
with F.I.C.A., unemployment and other taxes and benefits due with respect to such employees for such period, shall remain an obligation
of Seller, to be paid by Seller in accordance with its typical policies.

 

Article
XIII

CASUALTY AND CONDEMNATION

 

13.1
Risk of Loss; Notice. Prior to Closing and the delivery of possession of the Property to Buyer in accordance with
this Contract, all risk of loss to the Property (whether by casualty, condemnation or otherwise) shall be borne by Seller. In
the event that (a) any loss or damage to the Hotel shall occur prior to the Closing Date as a result of fire or other casualty,
or (b) Seller receives notice that a governmental authority has initiated or threatened to initiate a condemnation proceeding
affecting the Hotel, Seller shall give Buyer immediate written notice of such loss, damage or condemnation proceeding (which notice
shall include a certification of (i) the amounts of insurance coverages in effect with respect to the loss or damage and (ii)
if known, the amount of the award to be received in such condemnation).

 

13.2
Buyer’s Termination Right. If, prior to Closing and the delivery of possession of the Property to Buyer in
accordance with this Contract, (a) any condemnation proceeding shall be pending against a substantial portion of the Hotel or
(b) there is any substantial casualty loss or damage to the Hotel, Buyer shall have the option to terminate this Contract, provided
Buyer delivers written notice to Seller of its election within twenty (20) days after the date Seller has delivered Buyer written
notice of any such loss, damage or condemnation as provided above, and in such event, the Earnest Money Deposit, and any interest
thereon, shall be delivered to Buyer and thereafter, except as expressly set forth herein, no party shall have any further obligation
or liability to the other under this Contract. In the context of condemnation, “substantial” shall mean condemnation
of such portion of a Hotel (or access thereto) as could, in Buyer’s reasonable judgment, render use of the remainder impractical
or unfeasible for the uses herein contemplated,

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and, in the context of casualty loss or damage,
“substantial” shall mean a loss or damage in excess of One Hundred Thousand and No/100 Dollars ($100,000.00) in value.

 

13.3
Procedure for Closing. If Buyer shall not timely elect to terminate this Contract under Section 13.2 above, or if
the loss, damage or condemnation is not substantial, Seller agrees to pay to Buyer at the Closing all insurance proceeds or condemnation
awards which Seller has received as a result of the same, plus an amount equal to the insurance deductible, and assign to Buyer
all insurance proceeds and condemnation awards payable as a result of the same, in which event the Closing shall occur without
Seller replacing or repairing such damage.

 

Article
XIV

DEFAULT REMEDIES

 

14.1
Buyer Default. If Buyer defaults under this Contract after the Review Period or fails to deliver the full Purchase
Price on the Closing Date if such failure is in fact a breach of Buyer’s obligations, and such default continues for ten
(10) days following written notice from Seller (provided that no such notice shall be required for a failure by Buyer to be present
at Closing), then at Seller’s election by written notice to Buyer, this Contract shall be terminated and of no effect, in
which event the Earnest Money Deposit, including any interest thereon, shall be paid to and retained by the Seller as Seller’s
sole and exclusive remedy hereunder, and as liquidated damages for Buyer’s default or failure to close, and both Buyer and
Seller shall thereupon be released from all obligations hereunder. In no event shall any such default result in a Closing Date
on a day other than as described in Section 10.1.

 

14.2
Seller Default. If Seller defaults under this Contract, and such default continues for ten (10) days following written
notice from Buyer (provided that no such notice shall be required for a failure by Seller to be present at Closing), Buyer may
elect, as Buyer’s sole and exclusive remedy, either (i) to terminate this Contract by written notice to Seller delivered
to that Seller at any time prior to the completion of such cure, in which event the Earnest Money Deposit, including any interest
thereon, shall be returned to the Buyer, Seller shall reimburse Buyer for Buyer’s actual and verifiable due diligence costs
and expenses and thereafter both the Buyer and Seller shall thereupon be released from all obligations with respect to this Contract,
except as otherwise expressly provided herein; or (ii) to treat this Contract as being in full force and effect by written notice
to Seller delivered to Seller at any time prior to the completion of such cure, in which event the Buyer shall have the right
to an action against the defaulting Seller for specific performance.

 

14.3
Attorney’s Fees. Anything to the contrary herein notwithstanding, if it shall be necessary for either the
Buyer or Seller to employ an attorney to enforce its rights pursuant to this Contract because of the default of the other party,
and the non-defaulting party is successful in enforcing such rights, then the defaulting party shall reimburse the non-defaulting
party for the non-defaulting party’s reasonable attorneys’ fees, costs and expenses.

    	30

    	

    

Article
XV

NOTICES

 

All notices required herein shall be deemed
to have been validly given, as applicable: (i) if given by fax, when the fax is transmitted to the party’s fax number specified
below and confirmation of complete receipt is received by the transmitting party during normal business hours or on the next Business
Day if not confirmed during normal business hours, (ii) if hand delivered to a party against receipted copy, when the copy of the
notice is receipted or rejected, (iii) if given by certified mail, return receipt requested, postage prepaid, two (2) Business
Days after it is posted with the U.S. Postal Service at the address of the party specified below, (iv) on the next delivery day
after such notices are sent by recognized and reputable commercial overnight delivery service marked for next day delivery, return
receipt requested or similarly acknowledged, or (v) if given by electronic mail, when the electronic mail is sent to the address
below:

 

	If to Buyer:	Apple Ten Hospitality Ownership, Inc.

814 E. Main Street

Richmond, Virginia 23219

Attention: Nelson Knight

Fax No.: (804) 344-8129

Email: nknight@applereit.com
	 	 
	with a copy to:	Apple REIT Ten, Inc.
 814 E. Main Street
 Richmond, Virginia 23219
 Attention:  Legal Dept.
 Fax No.:  (804) 727-6349
 Email: dbuckley@applereit.com
	 	 
	If to Seller:	Omaha Downtown Lodging Investors III, LLC
 1600 Aspen Commons, Suite 200
 Middleton, WI 53562
 Attn: Jeff Lenz
 Fax No.: (608) 836-6399
 Email: jlenz@ncghotels.com
	 	 
	with a copy to:	Reinhart Boerner Van Deuren s.c.
 22 East Mifflin Street, Suite 600
 Madison, WI 53703
 Attn: Nathan J. Wautier
 Fax No.: (608) 229-2100
 Email: nwautier@reinhartlaw.com

 

Addresses may be changed by the parties hereto
by written notice in accordance with this Section.

    	31

    	

    

Article
XVI

MISCELLANEOUS

 

16.1
Performance. Time is of the essence in the performance and satisfaction of each and every obligation and condition
of this Contract. In the event the date upon which an action is to occur or a time period is to commence or expire, as the case
may be, is not a Business Day, then the time for which such action is to occur or period is to commence or expire shall automatically
be extended until the next Business Day.

 

16.2
Binding Effect; Assignment. This Contract shall be binding upon and shall inure to the benefit of each of the parties
hereto, their respective successors and assigns.

 

16.3
Entire Agreement. This Contract and the Exhibits constitute the sole and entire agreement between Buyer and Seller
with respect to the subject matter hereof. No modification of this Contract shall be binding unless signed by both Buyer and Seller.

 

16.4
Governing Law. The validity, construction, interpretation and performance of this Contract shall in all ways be
governed and determined in accordance with the laws of the State of Nebraska (without regard to conflicts of law principles).

 

16.5
Captions. The captions used in this Contract have been inserted only for purposes of convenience and the same shall
not be construed or interpreted so as to limit or define the intent or the scope of any part of this Contract.

 

16.6
Confidentiality. Except as either party may reasonably determine is required by law (including without limitation
laws and regulations applicable to Buyer or its Affiliates who may be public companies): (i) prior to Closing, Buyer and Seller
shall not disclose the existence of this Contract or their respective intentions to purchase and sell the Property or generate
or participate in any publicity or press release regarding this transaction, except to Buyer’s and Seller’s ownership
members, legal, financial and tax counsel and lender, Buyer’s consultants and agents, Seller’s employees at the Hotel,
the Manager, the Existing Manager, the Franchisor and the Title Company and except as necessitated to obtain Third Party Consents
or by Buyer’s Due Diligence Examination and/or shadow management, unless both Buyer and Seller agree in writing and as necessary
to effectuate the transactions contemplated hereby and (ii) following Closing, the parties shall coordinate any public disclosure
or release of information related to the transactions contemplated by this Contract, and no such disclosure or release shall be
made without the prior written consent of Buyer, and no press release shall be made without the prior written approval of Buyer
and Seller.

 

16.7
Closing Documents. To the extent any Closing documents are not attached hereto at the time of execution of this
Contract, Buyer and Seller shall negotiate in good faith with respect to the form and content of such Closing documents prior
to Closing.

 

16.8
Counterparts. This Contract may be executed in counterparts by the parties hereto, and by facsimile signature, and
each shall be considered an original and all of which shall constitute one and the same agreement.

    	32

    	

    

16.9
Severability. If any provision of this Contract shall, for any reason, be adjudged by any court of competent jurisdiction
to be invalid or unenforceable, such judgment shall not affect, impair or invalidate the remainder of this Contract but shall
be confined in its operation to the provision or provisions hereof directly involved in the controversy in which such judgment
shall have been rendered, and this Contract shall be construed as if such provision had never existed, unless such construction
would operate as an undue hardship on Seller or Buyer or would constitute a substantial deviation from the general intent of the
parties as reflected in this Contract.

 

16.10
Interpretation. For purposes of construing the provisions of this Contract, the singular shall be deemed to include
the plural and vice versa and the use of any gender shall include the use of any other gender, as the context may
require.

 

16.11
Further Acts. In addition to the acts, deeds, instruments and agreements recited herein and contemplated to be performed,
executed and delivered by Buyer and Seller, Buyer and Seller shall perform, execute and deliver or cause to be performed, executed
and delivered at the Closing or after the Closing, any and all further acts, deeds, instruments and agreements and provide such
further assurances as the other party or the Title Company may reasonably require to consummate the transaction contemplated hereunder.

 

16.12
Joint and Several Obligations. If Seller consists of more than one person or entity, each such person or entity
shall be jointly and severally liable with respect to the obligations of Seller under this Contract.

 

16.13
Notice of Proposed Listing. In the event that the sale of the Property contemplated by this Contract is consummated
and the New Management Agreement has not been terminated by Buyer, if at any time during the five (5) year period commencing on
the date of execution of this Contract by Buyer and Seller, Seller or any of its Affiliates propose to list for sale any hotel
property or properties owned, acquired, constructed or developed by Seller or their Affiliates and either (i) located within a
five (5)-mile radius of the Hotel or (ii) as identified on Schedule 16.13 attached hereto, (any such other hotel property being
referred to as an “Other Property”), Seller shall promptly deliver to Buyer written notice thereof and
Buyer shall have the right to see and participate in the offering and/or otherwise make an offer to purchase any such Other Property.

 

16.14
Section 1031 Exchange. Seller or Buyer (the “Initiating Party”) may structure this transaction
as a like-kind exchange under Internal Revenue Code Section 1031 at the Initiating Party’s sole cost and expense. The other
party shall reasonably cooperate therein, provided that such party shall incur no costs, expenses, or liabilities in connection
with such exchange, nor shall the Closing Date be delayed on account thereof. The Initiating Party shall indemnify, defend, and
hold the other party harmless therefrom, and such other party shall not be required to take title to or contract for purchase
of any other property. If the Initiating Party uses a qualified intermediary to effectuate such an exchange, any assignment of
the rights or obligations of the Initiating Party hereunder shall not relieve, release, or absolve the Initiating Party of any
of its obligations to the other party.

    	33

    	

    

16.15
Right of First Refusal. Provided that (i) Buyer or any Affiliate of Buyer is the then owner of that certain Courtyard
by Marriott in Phoenix, AZ presently owned by Phoenix Southwest Lodging Investors I, LLC (the “Phoenix Courtyard”),
and (ii) Manager is actively managing the Phoenix Courtyard pursuant to a management agreement with Buyer or any Affiliate of
Buyer, then, in exchange for Buyer closing on the Property hereunder, Seller on behalf of itself and its Affiliates hereby grants
Buyer and any Affiliate of Buyer a right of first refusal to purchase the hotel listed on Schedule 16.15 attached hereto (each
a “ROFR Hotel”) at the same price, and upon the same terms, as any offer received by Seller or its Affiliate
that such party is willing to accept (the “Right of First Refusal”). Specifically, Seller shall notify Buyer
in writing of any offer received by Seller or its Affiliate that Seller or its Affiliate desires to accept, and such notification
shall include a copy of the purchase agreement (the “Offer”). Thereafter, Buyer or its Affiliate shall have a period
of thirty (30) Business Days to accept the Offer. If Buyer either rejects the Offer or fails to affirmatively accept the Offer
within such thirty (30) Business Day period, then the Right of First Refusal shall automatically and forever terminate with regard
to the specific ROFR Hotel. If Buyer or its Affiliate timely accepts the Offer, then Buyer or its Affiliate will purchase the
ROFR Hotel on the same terms and conditions as set forth in the Offer, and Buyer’s (or it Affiliate’s) failure to
do so shall cause the Right of First Refusal to automatically terminate. Further, if Buyer or its Affiliate timely accepts the
Offer, then upon closing of Buyer’s or its Affiliate’s purchase of the ROFR Hotel, Buyer or its Affiliate shall reimburse
the seller of the ROFR Hotel for its actual and verifiable out of pocket diligence, attorneys’ fees and other related costs
(including reimbursement of costs to any such third party prospective buyer) paid in connection with the negotiation and execution
of the Offer, not to exceed $30,000. The rights granted in this Section 16.15 shall survive Closing and shall not be merged into
or with the Deed. Furthermore, as a condition to Buyer’s obligation to close on the Property hereunder, Seller shall deliver
to Buyer an executed Right of First Refusal Agreement in recordable form in the land records of the jurisdiction in which the
ROFR Hotel is located.

    	34

    	

    

IN WITNESS WHEREOF, this Contract has been
executed, to be effective as of the date first above written, by the Buyer and Seller.

 

	 	SELLER:
	 	 
	 	OMAHA DOWNTOWN LODGING INVESTORS
	 	III, LLC, a Wisconsin limited liability company
	 	By: Cedar Rapids Lodging Investors II, LLC,
	 	Sole Member
	 	 	 
	 	By: /s/ David A. Lenz
	 	Name: David A. Lenz
	 	Title: Member of David A. Lenz Investments, LLC,

Managing Member

 

	 	BUYER:
	 	 	 
	 	APPLE TEN HOSPITALITY OWNERSHIP, INC., 

a Virginia corporation
	 	 	 
	 	By: /s/ David Buckley
	 	Name: David Buckley
	 	Title: Vice President

    	35

    	

    

EXHIBIT A

 

LEGAL DESCRIPTION OF LAND

 

Lots 2 and
3, Union Pacific Place Replat 3, an Addition to the City of Omaha, Douglas County, Nebraska.

    	A-1

    	

    

EXHIBIT B

 

LIST OF FF&E

 

To Be Provided During Due Diligence.

    	B-1

    	

    

EXHIBIT C

 

LIST OF HOTEL CONTRACTS

 

To Be Provided During Due Diligence.

    	C-1

    	

    

EXHIBIT D

 

CONSENTS AND APPROVALS

 

		A.	Consents Under Hotel Contracts

 

		B.	Consents Under Other Contracts

 

		C.	Governmental Approvals and Consents

 

		D.	The Liquor License that Seller currently has in connection
with its operation of the Hotel is not transferable or assignable to Buyer.

 

		E.	Consent of Seller’s lender.

 

		F.	Consent of Seller’s members.

    	D-1

    	

    

EXHIBIT E

 

ENVIRONMENTAL REPORTS

 

Phase I Environmental Site Assessment Report prepared by Thiele
Geotech, Inc. for North Central Group, dated August 16, 2005 (TG Project No. 05337.2).

 

Phase II Environmental Site Assessment prepared by Thiele Geotech,
Inc. for North Central Group, dated August 31, 2005 (TG Project No. 05337.3).

 

Notice of Environmental Remediation Activity and Environmental
Covenant Restricting Use dated April 24, 2006, recorded April 28, 2006 as document number 2006047419 in the Register of Deeds,
Douglas County, Nebraska.

    	E-1

    	

    

EXHIBIT F

 

CLAIMS OR LITIGATION PENDING

 

None.

    	F-1

    	

    

EXHIBIT G

 

ESCROW AGREEMENT

 

THIS ESCROW AGREEMENT (this “Agreement”)
made the ___ day of _______, 2013 by and among OMAHA DOWNTOWN LODGING INVESTORS III, LLC, a Wisconsin limited liability company
(“Seller”), APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, or its assigns (“Buyer”),
and CHICAGO TITLE COMPANY (“Escrow Agent”).

 

R E C I T A L S

 

WHEREAS, pursuant to the provisions of Section
2.5 of that certain Purchase Contract dated _______ ___, 2013 (the “Contract”) between Seller and Buyer (the “Parties”),
the Parties have requested Escrow Agent to hold in escrow in accordance with the provisions, upon the terms, and subject to the
conditions, of this Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and

 

WHEREAS, the Deposit shall be delivered to
Escrow Agent in accordance with the terms of the Contract and this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
covenants and agreements herein contained, the Parties hereto agree as follows:

 

1. Seller and Buyer hereby appoint Escrow
Agent to serve as escrow agent hereunder, and the Escrow Agent agrees to act as escrow agent hereunder in accordance with the provisions,
upon the terms and subject to the conditions of this Agreement. The Escrow Agent hereby acknowledges receipt of the Deposit. Escrow
Agent shall invest the Deposit as directed by Buyer.

 

2. Subject to the rights and obligations
to transfer, deliver or otherwise dispose of the Deposit, Escrow Agent shall keep the Deposit in Escrow Agent’s possession
pursuant to this Agreement.

 

3.            A. Buyer shall be entitled to an
immediate return of the Deposit at any time prior to the expiration of the Review Period (as defined in Section 3.1 of the Contract)
by providing written notice to Escrow Agent and Seller stating that Buyer has elected to terminate the Contract pursuant to Section
3.1. If Buyer does not elect to terminate the Contract prior to the expiration of the Review Period, Buyer agrees to deposit the
Additional Deposit per Section 2.5(a) of the Contract.

 

B. If at any time after the expiration
of the Review Period, Buyer claims entitlement to all or any portion of the Deposit, Buyer shall give written notice to Escrow
Agent stating that Seller has defaulted in the performance of its obligations under the Contract beyond the applicable grace period,
if any, or that Buyer is otherwise entitled to the return of the Deposit or applicable portion thereof and shall direct Escrow
Agent to return the Deposit or

 

    	 

    	

    

applicable portion thereof to Buyer (the
“Buyer’s Notice”). Escrow Agent shall promptly deliver a copy of Buyer’s Notice to Seller.
Seller shall have ten (10) business days after receipt of the copy of Buyer’s Notice to deliver written notice to Escrow
Agent and Buyer objecting to the release of the Deposit or applicable portion thereof to Buyer (“Seller’s Objection
Notice”). If Escrow Agent does not receive a timely Seller’s Objection Notice, Escrow Agent shall release the
Deposit or applicable portion thereof to Buyer. If Escrow Agent does receive a timely Seller’s Objection Notice, Escrow Agent
shall release the Deposit or applicable portion thereof only upon receipt of, and in accordance with, written instructions signed
by Seller and Buyer, or the final order of a court of competent jurisdiction.

 

C. If, at any time after the expiration
of the Review Period, Seller claims entitlement to the Deposit or applicable portion thereof, Seller shall give written notice
to Escrow Agent stating that Buyer has defaulted in the performance of its obligations under the Contract, and shall direct Escrow
Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s Notice”). Escrow
Agent shall promptly deliver a copy of Seller’s Notice to Buyer. Buyer shall have ten (10) business days after receipt of
the copy of Seller’s Notice to deliver written notice to Escrow Agent and Seller objecting to the release of the Deposit
or applicable portion thereof to Seller (“Buyer’s Objection Notice”). If Escrow Agent does not
receive a timely Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable portion thereof to Seller.
If Escrow Agent does receive a timely Seller’s Objection Notice, Escrow Agent shall release the Deposit or applicable portion
thereof only upon receipt of, and in accordance with, written instructions signed by Buyer and Seller, or the final order of a
court of competent jurisdiction.

 

4. In the performance of its duties hereunder,
Escrow Agent shall be entitled to rely upon any document, instrument or signature purporting to be genuine and purporting to be
signed by and of the Parties or their successors unless Escrow Agent has actual knowledge to the contrary. Escrow Agent may assume
that any person purporting to give any notice or instructions in accordance with the provisions hereof has been duly authorized
to do so.

 

5.            A. Escrow Agent shall not be liable
for any error of judgment, or any action taken or omitted to be taken hereunder, except in the case of Escrow Agent’s willful,
bad faith misconduct or negligence, nor shall Escrow Agent be liable for the conduct or misconduct of any employee, agent or attorney
thereof. Escrow Agent shall be entitled to consult with counsel of its choosing and shall not be liable for any action suffered
or omitted in accordance with the advice of such counsel.

 

B. In addition to the indemnities provided
below, Escrow Agent shall not be liable for, and each of the Parties jointly and severally hereby indemnify and agree to save harmless
and reimburse Escrow Agent from and against all loss, cost, liability, damage and expense, including outside counsel fees in connection
with its acceptance of, or the performance of its duties and obligations under, this Agreement, including the costs and expenses
of defending against any claim arising hereunder unless the same are caused by the willful, bad faith misconduct or negligence
of Escrow Agent.

 

C. Escrow Agent shall not be bound or
in any way affected by any notice of any modification or cancellation of this Agreement, or of any fact or circumstance

    	G-2

    	

    

affecting or alleged to affect rights or
liabilities hereunder other than as is herein set forth, or affecting or alleged to affect the rights and liabilities of any other
person, unless notice of the same is delivered to Escrow Agent in writing, signed by the proper parties to Escrow Agent’s
satisfaction and, in the case of modification, unless such modification shall be approved by Escrow Agent in writing.

 

6.            A. Escrow Agent and any successor
escrow agent, as the case may be, may resign his or its duties and be discharged from all obligations hereunder at any time upon
giving ten (10) days’ prior written notice to each of the Parties hereto. The Parties hereto will thereupon jointly designate
a successor escrow agent hereunder within said ten (10) day period to whom the Deposit shall be delivered. In default of such a
joint designation of a successor escrow agent, Escrow Agent shall retain the Deposit as custodian thereof until otherwise directed
by the Parties hereto, jointly, or until the Deposit is released in accordance with clause (B) below, in each case, without liability
or responsibility.

 

B. Anything in this Agreement to the
contrary notwithstanding, (i) Escrow Agent, on notice to the Parties hereto, may take such other steps as the Escrow Agent may
elect in order to terminate its duties as Escrow Agent hereunder, including, but not limited to, the deposit of the Deposit with
a court of competent jurisdiction in the Commonwealth of Virginia and the commencement of an action of interpleader, and (ii) in
the event of litigation between any of the Parties with respect to the Deposit, Escrow Agent may deposit the Deposit with the court
in which said litigation is pending and, in any such event, Escrow Agent shall be relieved and discharged from any liability or
responsibility to the Parties hereto. Escrow Agent shall not be under any obligation to take any legal action in connection with
this Agreement or its enforcement or to appear in, prosecute or defend any action or legal proceeding which, in the opinion of
Escrow Agent, would or might involve Escrow Agent in any cost, expense, loss, damage or liability, unless and as often as requested,
Escrow Agent shall be furnished with security and indemnity satisfactory to Escrow Agent against all such costs, expenses (including
attorney’s fees), losses, damages and liabilities.

 

7. All notices required herein shall be
deemed to have been validly given, as applicable: (i) if given by telecopy, when the telecopy is transmitted to the party’s
telecopy number specified below and confirmation of complete receipt is received by the transmitting party during normal business
hours or on the next business day if not confirmed during normal business hours, (ii) if hand delivered to a party against receipted
copy, when the copy of the notice is receipted or rejected, (iii) if given by certified mail, return receipt requested, postage
prepaid, two (2) business days after it is posted with the U.S. Postal Service at the address of the party specified below or (iv)
on the next delivery day after such notices are sent by recognized and reputable commercial overnight delivery service marked for
next day delivery, return receipt requested or similarly acknowledged:

    	G-3

    	

    

	 	(i)	If addressed to Seller, to:
	 	 	 
	 	 	Omaha Downtown Lodging Investors III, LLC
	 	 	1600 Aspen Commons, Suite 200
	 	 	Middleton, WI 53562
	 	 	Attn: Jeff Lenz
	 	 	Fax No.: (608) 836-6399
	 	 	Email: jlenz@ncghotels.com
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Reinhart Boerner Van Deuren s.c.
	 	 	22 East Mifflin Street, Suite 600
	 	 	Madison, WI 53703
	 	 	Attn: Nathan J. Wautier
	 	 	Fax No.: (608) 229-2100
	 	 	Email: nwautier@reinhartlaw.com
	 	 	 
	 	(ii)	If addressed to Buyer, to:
	 	 	 
	 	 	Apple Ten Hospitality Ownership, Inc.
	 	 	814 E. Main Street
	 	 	Richmond, Virginia 23219
	 	 	Attention:  Nelson Knight
	 	 	Fax No.:  (804) 344-8129
	 	 	Email: nknight@applereit.com
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Apple REIT Ten, Inc.
	 	 	814 E. Main Street
	 	 	Richmond, Virginia 23219
	 	 	Attn:  Legal Dept.
	 	 	Fax No.:  (804) 727-6349
	 	 	 
	 	(iii)	If addressed to Escrow Agent, to:
	 	 	 
	 	 	Chicago Title Company
	 	 	5501 LBJ Freeway, Suite 200
	 	 	Dallas, Texas 75240
	 	 	Attn: Debby Moore
	 	 	Fax No.:  (214) 570-0210

 

or such other address or addresses as may be expressly designated
by any party by notice given in accordance with the foregoing provisions and actually received by the party to whom addressed.

    	G-4

    	

    

8. This Agreement may be executed in any
number of counterparts each of which shall be deemed an original and all of which, together, shall constitute one and the same
Agreement.

 

9. The covenants, conditions and agreements
contained in this Agreement shall bind and inure to the benefit of each of the Parties hereto and their respective successors and
assigns.

    	G-5

    	

    

IN WITNESS WHEREOF the Parties have executed
this Agreement as of the day and year first above written.

 

	 	SELLER:	 
	 	 	 
	 	OMAHA DOWNTOWN LODGING INVESTORS III, LLC	 
	 	 	 
	 	By:  	 
	 	Name:  	 
	 	Title:  	 
	 	 	 
	 	BUYER:	 
	 	 	 
	 	APPLE TEN HOSPITALITY OWNERSHIP, INC.	 
	 	 	 
	 	By:  	 
	 	Name:  	 
	 	Title:  	 
	 	 	 
	 	ESCROW AGENT:	 
	 	 	 
	 	CHICAGO TITLE COMPANY	 
	 	 	 
	 	By:  	 
	 	Name:  	 
	 	Title:  	 

    	G-6

    	

    

Schedule 2.3

 

Allocation

 

	Real Property:	 	$		 
	Personal Property:	 	$		 
	Intangibles:	 	$		 
	 	 	 	 	 
	Total:	 	$	17,625,000	 

    	G-7

    	

    

Schedule 16.13

Other Hotels

 

		1.	Hampton Inn & Suites, 1231 South Spectrum Blvd., Chandler, AZ

		2.	Homewood Suites, 1221 South Spectrum Blvd., Chandler, AZ

		3.	Hampton Inn & Suites, 6630 North 95th Avenue, Glendale, AZ

		4.	Hampton Inn & Suites, 12331 Southport Parkway, LaVista, NE

    	G-8

    	

    

Schedule 16.15

 

ROFR Hotel

 

A hotel proposed to be developed on land
owned by Phoenix Southwest Lodging Investors II, LLC and located at 1750 North 95th Lane, Phoenix, Arizona (adjacent
to the Courtyard by Marriott located 1650 North 95th Lane, Phoenix, AZ)

    	G-9

    	

    

SCHEDULE 3.1

 

DUE DILIGENCE LIST

 

Due Diligence

Documents Required

[electronic versions preferred]

 

Property Name:

Date Opened:

 

	 	 	 	 	 	Date 
 Sent	 	 	Comments	 
	 	1	 	 	Y-T-D Detailed Operating Statements	 	 		 	 	 		 
	 	2	 	 	Prior 3 Years Detailed P&L’s by month	 	 	 	 	 	 	 	 
	 	3	 	 	2013 Detailed Budget (Operating)	 	 	 	 	 	 	 	 
	 	4	 	 	2013 Budget (Capital Expenditures)	 	 	 	 	 	 	 	 
	 	5	 	 	STAR Report (previous 5 years)	 	 	 	 	 	 	 	 
	 	6	 	 	2013 Marketing Plan	 	 	 	 	 	 	 	 
	 	7	 	 	Monthly Occupancy & Average Daily/Week/Package Rates

 (previous 3 years)	 	 	 	 	 	 	 	 
	 	8	 	 	Schedule of Advance Deposits of Advance Reservations and Bookings (Top 20 Accounts)	 	 	 	 	 	 	 	 
	 	9	 	 	Real Estate Tax Bills (last 3 years)	 	 	 	 	 	 	 	 
	 	10	 	 	Personal Property Tax Bills (last 3 years)	 	 	 	 	 	 	 	 
	 	11	 	 	Notices of Current Tax Assessments or Increases	 	 	 	 	 	 	 	 
	 	12	 	 	Schedule of Insurance Coverage and Claims	 	 	 	 	 	 	 	 
	 	13	 	 	Personal Property List (e.g., FF&E, office equipment)	 	 	 	 	 	 	 	 
	 	14	 	 	Inventory of Supplies (e.g., chinaware, glassware, paper goods, office supplies, unopened food and beverage inventory)	 	 	 	 	 	 	 	 
	 	15	 	 	Copies of Service Contracts and FF&E Leases	 	 	 	 	 	 	 	 
	 	16	 	 	Copies of Leases (e.g., gift shop, health club/spa)	 	 	 	 	 	 	 	 
	 	17	 	 	Vehicle Title/Leases	 	 	 	 	 	 	 	 
	 	18	 	 	Copies and Schedules of all Warranties	 	 	 	 	 	 	 	 

    	1

    	

    

	 	 	 	 	 	Date 
 Sent	 	 	Comments	 
	 	19	 	 	Most current Franchise Property Improvement Plan or QA Assessment	 	 		 	 	 		 
	 	20	 	 	Copies of all Licenses, including Liquor License	 	 	 	 	 	 	 	 
	 	21	 	 	Certificate of Occupancy	 	 	 	 	 	 	 	 
	 	22	 	 	Most Recent Property Payroll	 	 	 	 	 	 	 	 
	 	23	 	 	Copy of Employment Contracts, if any	 	 	 	 	 	 	 	 
	 	24	 	 	Construction Plans & Specs (electronically if available)	 	 	 	 	 	 	 	 
	 	25	 	 	Structural Engineering Audit	 	 	 	 	 	 	 	 
	 	26	 	 	Environmental Site Assessment (Phase I)	 	 	 	 	 	 	 	 
	 	27	 	 	Property Condition Report	 	 	 	 	 	 	 	 
	 	28	 	 	Schedule of Utility Providers and Utility Deposits	 	 	 	 	 	 	 	 
	 	29	 	 	Copies of Utility Bills (previous 3 months)	 	 	 	 	 	 	 	 
	 	30	 	 	Zoning, compliance, and violation docs	 	 	 	 	 	 	 	 
	 	31	 	 	Title Insurance Commitment, Title Search or Title Certificate	 	 	 	 	 	 	 	 
	 	32	 	 	Copies of Title Exceptions	 	 	 	 	 	 	 	 
	 	33	 	 	ALTA Survey	 	 	 	 	 	 	 	 
	 	34	 	 	Service Contract Summary Completed	 	 	 	 	 	 	 	 
	 	35	 	 	Property Data Sheet Completed	 	 	 	 	 	 	 	 
	 	36	 	 	Other	 	 	 	 	 	 	 	 

    	2

    	

    

Due Diligence

Service Contract Summary

 

Brand:

Location:

# Rooms:

 

	 	Service 
 Contract	Term	 Annual 
 Amount	Cancellation	Company	Assignment
	EXAMPLE 
 Kone Elevator 
 Service	Quarterly 
 Inspection 
 & Service	5yrs; beg 
 2/12/04	$4,942	90-day notice 
 prior to 
 expiration	Hotel 
 Properties, 
 LLC	w/ written

 consent
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

	LEASE CONTRACTS	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Name	Equipment	Term	Annual 
 Amount	Cancellation	Company	Assignment
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    	3

    	

    

Due Diligence

Property Data Survey

[To Be Completed Electronically]

 

    	4

    	

    

    	5

    	

    

 

EXHIBIT H

 

Form of Management Agreement

 

To Be Provided During Due Diligence.

    	H-1

    	

    

EXHIBIT I

 

Related Transactions

 

		1.	Maple Grove MN-Hilton Garden Inn owned by Maple Grove Lodging Investors, LLC

 

		2.	Happy Valley-Homewood Suites by Hilton owned by Deer Valley Hotel Investors II, LLC

 

		3.	Happy Valley-Hampton Inn and Suites by Hilton owned by Deer Valley Lodging Investors, LLC

 

		4.	Phoenix AZ-Courtyard by Marriott owned by Phoenix Southwest Lodging Investors I, LLC

 

		5.	Omaha NE-Hampton Inn and Suites by Hilton owned by Omaha Downtown Lodging Investors IV, LLC

    	I-2Exhibit 10.66

 

LIMITED LIABILITY COMPANY AGREEMENT

 

of

 

CRIPPLE CREEK ENERGY, LLC

 

between

 

EASTERN COLORADO HOLDINGS, LLC,

 

as the Common Member,

 

and

 

APPLE TEN VENTURES SERVICES, INC.,

 

as the Preferred Member

 

Dated as of June 6, 2013

 

IN RELIANCE UPON CERTAIN EXEMPTIONS FROM
REGISTRATION AND QUALIFICATION, THE LIMITED LIABILITY COMPANY INTERESTS DESCRIBED IN AND ISSUED PURSUANT TO THIS AGREEMENT HAVE
NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES ACT OF ANY STATE OR THE DISTRICT OF COLUMBIA.
ACCORDINGLY, NO SUCH LIMITED LIABILITY COMPANY INTEREST MAY BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF THIS AGREEMENT.

    	 

    	

    

TABLE OF CONTENTS

 

	 	 	Page
	ARTICLE 1 DEFINITIONS	1
	1.1	Definitions	1
	1.2	Terms Generally	12
	ARTICLE 2 THE COMPANY AND ITS BUSINESS	12
	2.1	Company Name	12
	2.2	Term	12
	2.3	Filing of Amendments to the Certificate of Formation	12
	2.4	Purpose	13
	2.5	Principal Office; Registered Agent	13
	2.6	Names and Addresses of the Members	13
	2.7	Duties of Manager	13
	2.8	Representations by the Members	14
	2.9	Representations by the Common Member	15
	2.10	Representations by the Preferred Member	18
	2.11	Classes of Interests; Certificates	19
	2.12	Tax Classification	20
	ARTICLE 3 MANAGEMENT OF COMPANY BUSINESS	21
	3.1	Management and Control	21
	3.2	Operating Restrictions	22
	3.3	Waiver of Fiduciary Duties; Only Contractual Duties Herein Control	23
	3.4	Subsidiaries	24
	ARTICLE 4 RIGHTS AND DUTIES OF MEMBERS	24
	4.1	Other Activities of the Members	24
	4.2	Investment Opportunities	25
	4.3	Manager and Member Exculpation; Indemnification	25
	4.4	Title to Company Assets	26
	4.5	Designation of Tax Matters Member	26
	ARTICLE 5 BOOKS AND RECORDS; ANNUAL REPORTS; EXPENSES AND OTHER MATTERS	26
	5.1	Books of Account	26
	5.2	Availability of Books of Account	26
	5.3	Annual Reports and Statements; Tax Reports; Notices	26
	5.4	Accounting Expenses	27

    	i

    	

    

	5.5	Members’
    Expenses	27
	ARTICLE 6 CAPITAL CONTRIBUTIONS, LOANS AND LIABILITIES	28
	6.1	Capital Contributions of the Common Member	28
	6.2	Capital Contributions of the Preferred Member	28
	6.3	Capital of the Company	30
	6.4	Security Interest	30
	ARTICLE 7 CAPITAL ACCOUNTS, PROFITS AND LOSSES AND ALLOCATIONS	30
	7.1	Capital Accounts	30
	7.2	Profits and Losses	30
	ARTICLE 8 APPLICATIONS AND DISTRIBUTIONS; REDEMPTION	32
	8.1	Distributions	32
	8.2	Overhead Reimbursement	33
	8.3	Equity Distributions to the Common Member	33
	8.4	Redemption of Preferred Member’s Interest	33
	8.5	Extension of Outside Redemption Date	34
	ARTICLE 9 TRANSFER OF COMPANY INTERESTS	34
	9.1	Restrictions on Transfers	34
	9.2	Assignment Binding on Company	34
	9.3	Substituted Members	35
	9.4	Acceptance of Prior Acts	35
	9.5	Additional Limitations	35
	ARTICLE 10 DISSOLUTION OF THE COMPANY; WINDING UP AND DISTRIBUTION OF ASSETS	36
	10.1	Dissolution	36
	10.2	Winding Up	36
	10.3	Distribution of Assets	37
	ARTICLE 11 AMENDMENTS	37
	11.1	Amendments	37
	11.2	Additional Members	37
	ARTICLE 12 MISCELLANEOUS	38
	12.1	Further Assurances	38
	12.2	Notices	38
	12.3	Exculpation	38
	12.4	Headings and Captions	38
	12.5	Variance of Pronouns	38

    	ii

    	

    

	12.6	Counterparts	38
	12.7	Governing Law	39
	12.8	Consent to Jurisdiction	39
	12.9	Partition	39
	12.10	Invalidity	39
	12.11	Successors and Assigns	39
	12.12	Entire Agreement	39
	12.13	Waivers	39
	12.14	Confidentiality	40
	12.15	No Third Party Beneficiaries	40
	12.16	Construction of Documents	41

 

Exhibit A – Common Member Interest
Certificate

    	iii

    	

    

LIMITED LIABILITY COMPANY AGREEMENT

OF

CRIPPLE CREEK ENERGY, LLC

 

This LIMITED LIABILITY COMPANY AGREEMENT
of CRIPPLE CREEK ENERGY, LLC, a Delaware limited liability company (the “Company”), dated as of June 6, 2013,
is made by and between EASTERN COLORADO HOLDINGS, LLC, a Delaware limited liability company (together with its permitted successors
and assigns, the “Common Member”), and APPLE Ten Ventures Services, Inc., a Virginia corporation (together with
its permitted successors and assigns, the “Preferred Member”).

 

R E C I T A L S

 

WHEREAS, the Company was formed under the
Act pursuant to the Certificate of Formation of the Company, dated as of May 28, 2013, which was filed with the Secretary of State
of the State of Delaware on May 28, 2013;

 

WHEREAS, the Common Member and the Preferred
Member desire to adopt this Agreement as the limited liability company agreement of the Company as set forth below.

 

NOW, THEREFORE, in order to carry out the
intentions expressed above and in consideration of the mutual agreements hereinafter contained, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Common Member and the Preferred Member hereby agree as follows:

 

ARTICLE
1

 

DEFINITIONS

 

1.1 Definitions. As
used in this Agreement, the following terms shall have the meanings set forth below, which meanings shall be applicable equally
to the singular and plural of the terms defined:

 

“Accrual Period” means
the period from and including a Scheduled Distribution Date to but excluding the next Scheduled Distribution Date, except that
the first Accrual Period shall be the period from and including the Effective Date to but excluding the first Scheduled Distribution
Date thereafter.

 

“Act” means the Delaware
Limited Liability Company Act as set forth in Delaware Code Title 6 §18-101 through §18-1109, as amended from time to
time.

 

“Affiliate” means, with
respect to any Person, any other Person that directly or indirectly through one or more intermediaries Controls or is Controlled
by or is under common Control with such Person.

 

“Agreement” means this
Limited Liability Company Agreement of the Company, as it may hereafter be amended, supplemented or otherwise modified from time
to time.

    	 

    	

    

“Annual Financial Statements”
has the meaning set forth in Section 5.3(a).

 

“Approved Replacement Manager”
means any entity Controlled by the natural persons agreed upon by the Members as of the Effective Date.

 

“Assets” means, with respect
to a Person, all right, title and interest of such Person in and to all or any portion of the assets of such Person and any property
(real, personal, tangible or intangible) or estate acquired in exchange therefor or in connection therewith.

 

“Assignee” means any Person
to whom a limited liability company interest in the Company has been Transferred in a Transfer expressly permitted hereunder and
who has not been admitted as a Substituted Member.

 

“Assignment Agreement”
means that certain Contribution and Distribution Agreement, to be entered into by and among the Company, the Common Member and
others in substantially the form agreed to by the Members as of the Effective Date.

 

“Bankruptcy” means, with
respect to any Person, (i) if such Person (A) commences a voluntary case or other proceeding or files any petition seeking liquidation,
reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter
in effect or seeks the appointment of a custodian, trustee, receiver, liquidator or other similar official of it or any substantial
part of its property, (B) consents to the institution of, or fails to contest in a timely and appropriate manner, any proceeding
or petition described in clause (A), (C) applies for or consents to the appointment of a custodian, trustee, receiver, liquidator
or other similar official for itself or any of its Subsidiaries or for a substantial part of its Assets, (D) files an answer admitting
the material allegations of a petition filed against it in any such proceeding, (E) makes a general assignment for the benefit
of creditors, (F) takes any action for the purpose of effecting any of the foregoing or (G) admits in writing its inability to
pay its debts as they become due; or (ii) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (A) liquidation, reorganization or other relief in respect of such Person or any of its Subsidiaries or any such Person’s
debts, or any substantial part of any such Person’s Assets, under any federal, state or foreign bankruptcy, insolvency or
other similar law now or hereafter in effect or (B) the appointment of a custodian, trustee, receiver, liquidator or other similar
official for such Person or any of its Subsidiaries or for a substantial part of any such Person’s Assets, and in any such
case, such proceeding or petition shall remain undismissed for a period of sixty (60) days or an order or decree approving or ordering
any of the foregoing shall be entered.

 

“Book Value” means, with
respect to any Asset of the Company, its adjusted basis for federal income tax purposes, except that the initial Book Value of
any Asset contributed by a Member to the Company shall be an amount equal to the agreed gross fair market value of such Asset,
and such Book Value shall thereafter be adjusted in a manner consistent with Treasury Regulations Section 1.704‐l(b)(2)(iv)(g)
for revaluations pursuant to Section 7.1(b) and for the Depreciation taken into account with respect to such Asset.

 

“Business Day” means any
day other than (i) a Saturday or Sunday and (ii) a day on which federally insured depositary institutions in the Venue State or
the State of New York are authorized or obligated by law, governmental decree or executive order to be closed.

    	2

    	

    

“Capital Account” when
used in respect of any Member means the Capital Account maintained for such Member in accordance with Section 7.1, as said
Capital Account may be increased or decreased from time to time pursuant to the terms of Section 7.1. The Preferred Member
shall not have a Capital Account in the Company with respect to the Preferred Member Interest.

 

“Capital Contribution”
when used with respect to any Member means the aggregate amount of capital contributed to the Company by such Member in accordance
with Article 6.

 

“Certificate” has the
meaning set forth in Section 2.11(c).

 

“Certificate of Formation”
means the Certificate of Formation of the Company, dated as of, and filed with the Secretary of State of the State of Delaware
on May 28, 2013, as the same may hereafter be amended and/or restated from time to time.

 

“Code” means the Internal
Revenue Code of 1986, as amended, and the regulations promulgated thereunder, or any corresponding provision(s) of succeeding law
and/or regulation.

 

“Commitment” has the meaning
set forth in Section 6.2(a).

 

“Common Member” has the
meaning set forth in the Preamble.

 

“Common Member Interest”
has the meaning set forth in Section 2.11(a).

 

“Company” means Cripple
Creek Energy, LLC, a Delaware limited liability company, as said company from time to time hereafter may be constituted.

 

“Confidential Information”
has the meaning set forth in Section 12.14.

 

“Contract” means any agreement,
instrument or other undertaking (whether written or oral) to which a Person is a party or by which it or any of its properties
or Assets is bound.

 

“Control” means, when
used with respect to any Person, the power to direct the management and policies of such Person, directly or through one or more
intermediaries, whether through the ownership of voting securities, by contract or otherwise, and the terms “Controlling”
and “Controlled” have meanings correlative to the foregoing.

 

“Current Pay Preferred Return”
means, with respect to any Accrual Period, an amount equal to the product of (i) the weighted average outstanding Unrecovered Capital
of the Preferred Member during such period multiplied by (ii) the Current Pay Preferred Return Rate for such Accrual Period,
multiplied by (iii) a fraction the numerator of which is the number of days in such Accrual Period and the denominator of
which is 365; it being understood that the Current Pay Preferred Return on any particular portion of the Preferred Member’s
Unrecovered Capital shall only accrue from the date on which such portion of the Preferred Member’s Unrecovered Capital was
funded or capitalized.

 

“Current Pay Preferred Return Rate”
means, for any Accrual Period, a rate equal to ten percent (10.00%) per annum, cumulative to the extent not paid on a Scheduled
Distribution Date provided, however, that upon the occurrence and during the continuance of an Event of Default,
the Current Pay Preferred Return Rate shall be immediately increased during such period to a rate

    	3

    	

    

equal
to twelve percent (12.00%) per annum, cumulative to the extent not paid on a Scheduled Distribution Date until such time as such
Event of Default has been cured, at which time the Current Pay Preferred Return Rate shall return to the rate otherwise set forth
in this definition.

 

“Deferred Pay Preferred Return”
means, with respect to any Accrual Period, an amount equal to the product of (i) the weighted average outstanding Unrecovered Capital
of the Preferred Member during such period multiplied by (ii) the Deferred Pay Preferred Return Rate for such Accrual Period,
multiplied by (iii) a fraction the numerator of which is the number of days in such Accrual Period and the denominator of
which is 365; it being understood that the Deferred Pay Preferred Return on any particular portion of the Preferred Member’s
Unrecovered Capital shall only accrue from the date on which it was funded or capitalized.

 

“Deferred Pay Preferred Return Rate”
means, for any Accrual Period, a rate equal to four percent (4.00%) per annum.

 

“Depreciation” means with
respect to any Asset of the Company in any Fiscal Year, all non‐cash deductions allowable under the Code, including all deductions
attributable to depreciation or cost recovery with respect to such Assets, including any improvements made thereto and any tangible
personal property located therein, or amortization of the cost of any intangible property or other Assets acquired by the Company,
which have a useful life exceeding one year; provided, however, that with respect to any of the Company’s Assets
the tax basis of which differs from its Book Value, Depreciation shall be an amount which bears the same ratio to such Book Value
as the depreciation, amortization or other cost recovery deduction for such period with respect to such Asset for federal income
tax purposes bears to its adjusted tax basis as of the beginning of such Fiscal Year; provided, however, that if
the federal income tax depreciation, amortization or other cost recovery deduction for such Fiscal Year is zero, Depreciation shall
be determined using any reasonable method selected by the Common Member.

 

“Effective Date” means
the date of this Agreement set forth in the Preamble.

 

“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control with the Company within the meaning of Section 414(b)
or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

“Event of Default” means
the occurrence of any of the following events:

 

(1) any failure (regardless of the
availability of funds) of the Company to distribute on any Scheduled Distribution Date the aggregate unpaid Current Pay Preferred
Return for all Accrual Periods ending on or prior to that Scheduled Distribution Date;

 

(2) any failure (regardless of the
availability of funds) of the Company to make any other payments to the Preferred Member in respect of the Preferred Member Interest,
in the amounts and at the times required in this Agreement;

    	4

    	

    

(3) the failure (regardless of the
availability of funds) of the Company to redeem or cause to be redeemed the Preferred Member’s Interest in full, and to pay
in full the Redemption Price, on the Outside Redemption Date;

 

(4) if any representation or warranty
made by the Common Member in Sections 2.8 or 2.9 of this Agreement or any other representation made by the Common
Member in any other Transaction Document shall be untrue in any material respect when made and the Preferred Member has delivered
to the Common Member written notice of same; provided that if it is within the control of the Common Member or its Affiliates
to render such representation or warranty true by taking action and the same can reasonably be done within thirty (30) days following
such notice, then the same shall not be an Event of Default hereunder if such representation or warranty is rendered true within
such 30-day period;

 

(5) if a Bankruptcy occurs with
respect to the Company or the Common Member;

 

(6) if the Company fails to comply
with any of the restrictions set forth in Section 3.2 of this Agreement and such failure shall continue for a period of
forty-five (45) days after the Common Member receives notice thereof from Preferred Member;

 

(7) if the Company or any Subsidiary
defaults under any Contract that constitutes a Material Contract without reference to any other Contract and such default continues
beyond the passage of any applicable cure period with respect thereto, provided that neither a good faith dispute concerning
a Material Contract nor the exercise of any termination rights by the Company or any Subsidiary under any Material Contract will
constitute a default;

 

(8) any judgment or order for the
payment of money in excess of $1,000,000 in the aggregate (net of independent third-party insurance as to which the insurance carrier
does not dispute the coverage of such payment) shall be rendered against the Company or any of its Subsidiaries, and either (i)
enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be a period of
ten (10) consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise,
shall not be in effect;

 

(9) any provision of any Transaction
Document (and any Lien created pursuant thereto in favor of the Preferred Member) shall for any reason cease to be valid and binding
on, or enforceable against, the Common Member, the Company or any of the Company’s Subsidiaries, as applicable, or any such
Person shall so state in writing, seek to terminate its obligations thereunder, which failure to be valid and binding on, or enforceable
against such Person, would be materially prejudicial to the rights of the Preferred Member hereunder or thereunder;

 

(10) (A) there shall occur a permanent
cessation of a substantial part of the business of the Company and its Subsidiaries, taken as a whole, and such cessation materially
and adversely affects the Company’s and its Subsidiaries’ (taken as whole) capacity to continue its business on a profitable
basis, (B) the Company or any of its Subsidiaries shall suffer the permanent loss or revocation of any material license or

    	5

    	

    

permit now held or hereafter acquired
which is necessary to the continued or lawful operation of its business or (C) the Company and/or its Subsidiaries shall be permanently
enjoined, restrained or in any other way prevented by a court, governmental or administrative order from conducting all or any
material part of its business, taken as a whole; or

 

(11) (A) the Permitted Common Member
Owners shall, collectively, cease to, directly or indirectly, own and Control greater than fifty percent (50%) of the Common Member
or (B) the Common Member shall cease to own one hundred percent (100%) of the Common Member Interest.

 

“Extended Outside Redemption Date”
has the meaning set forth in Section 8.6.

 

“Fiduciary Duty” has the
meaning set forth in Section 3.3.

 

“Financial Statements”
has the meaning set forth in Section 5.3(b).

 

“Fiscal Year” means the
fiscal year of the Company, which is the calendar year, except that the first “Fiscal Year” means the period from the
Effective Date until December 31, 2013 and, upon termination of the Company, “Fiscal Year” means the period from the
end of the last preceding Fiscal Year to the date of termination.

 

“Funding Notice” has the
meaning set forth in Section 6.2(d).

 

“Governmental Authority”
means any court, board, agency, commission, office or authority of any nature whatsoever of or for any governmental unit (federal,
state, county, district, municipal, city or otherwise), whether now or hereafter in existence.

 

“Guaranty” means that
certain Guaranty, dated as of the date hereof, by the Common Member in favor of the Preferred Member.

 

“Indebtedness” of a Person,
at a particular date, means the sum (without duplication) at such date of (a) indebtedness or liability for borrowed money; (b)
obligations evidenced by bonds, debentures, notes, or other similar instruments; (c) obligations for the deferred purchase price
of property or services (including trade obligations); (d) obligations under letters of credit; (e) obligations under acceptance
facilities; (f) all guaranties, endorsements (other than for collection or deposit in the ordinary course of business), and other
contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any Person or otherwise to assure
a creditor against loss; and (g) obligations secured by any Liens voluntarily granted on such Person’s property, whether
or not the obligation have been assumed by such Person.

 

“Initial Capital Contribution”
has the meaning set forth in Section 6.2(a).

 

“Initial Outside Redemption Date”
means June 1, 2014.

 

“Interest” means, with
respect to any Member, the entire limited liability company interest of that Member in the Company, including the right of such
Member to any and all benefits to which a Member may be entitled as provided in this Agreement, together with the obligations of
such Member to comply with all the terms and provisions of this Agreement.

    	6

    	

    

“Interim Financial Statements”
has the meaning set forth in Section 5.3(b).

 

“Investment”
means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase
or other acquisition of less than all of the capital stock or other securities of another Person, or (b) a loan, advance or capital
contribution to, guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other Person.

 

“IRS” means the Internal
Revenue Service and any successor agency or entity thereto.

 

“Legal Requirements” means
all governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities
affecting the Company or any of its Subsidiaries or any of their respective Assets (whether now or hereafter enacted and in force).

 

“Lien” means any mortgage,
deed of trust, lien (statutory or other), pledge, hypothecation, assignment, preference, priority, security interest, or any other
encumbrance or charge on or affecting a Person’s Assets or any portion thereof, or any interest therein (including, without
limitation, any conditional sale or other title retention agreement, any sale-leaseback, any financing lease having substantially
the same economic effect as any of the foregoing, the filing of any financing statement or similar instrument under the Uniform
Commercial Code or comparable law of any other jurisdiction, domestic or foreign, and mechanics’, materialmen’s and
other similar liens and encumbrances), but excluding any royalty, overriding royalty, net profits interest, carried interest, farm
out, farm in, back in or other interests used in the oil and gas industry which are or create any preference, charge, priority
or other encumbrance on or in connection with an oil and gas leasehold interest that do not result in a Material Adverse Effect.

 

“List” means the Specially
Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury, and/or
any other similar list maintained by the Office of Foreign Assets Control pursuant to any authorizing statute, executive order
or regulation.

 

“Losses” has the meaning
set forth in Section 7.2.

 

“Manager” has the meaning
set forth in Section 3.1(a).

 

“Material Adverse Effect”
means a material adverse effect on (i) the financial performance, prospects or value of the Assets of the Company and its Subsidiaries
taken as a whole, (ii) the financial position or results of operations or business of the Company and its Subsidiaries taken as
a whole, or (iii) the ability of the Preferred Member to enforce any of its material rights under the Transaction Documents.

 

“Material Contract” means
each of the following written or oral contracts, obligations, understandings, commitments, leases, instruments, purchase orders,
bids or other agreements that are binding on the Company or any of its Subsidiaries or their respective Assets:

 

(i) each agreement
for the lease of oil and/or gas or other personal property, in each case from or to third parties providing for lease payments,
the remaining unpaid

    	7

    	

    

balance of which is in excess of $500,000
or $1,000,000 in the aggregate for all such agreements;

 

(ii) each agreement
pursuant to which any third party is indebted to the Company or its Subsidiaries and the remaining unpaid balance of such indebtedness
is in excess of $500,000 or $1,000,000 in the aggregate for all such agreements;

 

(iii) each agreement
establishing a partnership or joint venture involving obligations by the Company or its Subsidiaries in excess of $500,000 or $1,000,000
in the aggregate for all such agreements;

 

(iv) any license
agreement that requires annual payments in excess of $500,000 or $1,000,000 in the aggregate for all such agreements, other than
with respect to commercially available software products under standard end-user, shrink wrap, click-to-accept or similar object
code license agreements;

 

(v) each written
agreement pursuant to which the Company or any of its Subsidiaries has created, incurred, assumed or guaranteed Indebtedness, the
outstanding amount of which is more than $500,000 or $1,000,000 in the aggregate for all such agreements;

 

(vi) each agreement
that prohibits the Company or any of its Subsidiaries from conducting its business as has been historically conducted or as is
proposed to be conducted;

 

(vii) each agreement
for the employment of any individual on a consulting, full-time or part-time basis providing base annual compensation in excess
of $500,000 during any 12-month period; and

 

(viii) any
executory agreement (or group of related agreements) for the purchase of raw materials, products, machinery, equipment or other
personal property, or for the furnishing or receipt of services, either the performance of which extends over a period of more
than one year or involves consideration in excess of $500,000 annually.

 

“Member” means each of
the Common Member, the Preferred Member and any additional Persons hereafter admitted as a member of the Company in accordance
with the provisions of this Agreement, for so long as such Person shall be a member of the Company and any transferee of such Person
permitted hereunder and admitted as a member of the Company in accordance with Section 9.3, and “Members”
shall mean such Persons, collectively.

 

“Member-Funded
Debt” means any non-recourse debt of the Company that is loaned or guaranteed by any Member and/or is treated as
member non-recourse debt with respect to a member under Treasury Regulations Section 1.704-2(b)(4).

 

“Minimum Gain” means an
amount equal to the excess of the principal amount of debt for which no Member is liable (the “non-recourse debt”)
over the adjusted basis of the Company’s Assets which represents the minimum taxable gain that would be recognized by the
Company if the non-recourse debt were foreclosed upon and the Company’s Assets were transferred to the creditor in satisfaction
thereof, and which is referred to as “Company minimum

    	8

    	

    

gain”
in Treasury Regulations Section 1.704-2(b)(2). A Member’s share of Minimum Gain shall be determined pursuant to Treasury
Regulations Section 1.704-2.

 

“Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Company or any
ERISA Affiliate makes or is obligated to make contributions, or during the preceding five (5) plan years, has made or been obligated
to make contributions.

 

“Option Agreements” means
each of the agreements identified by the Common Member in writing delivered to the Preferred Member on the Effective Date.

 

“Organizational Document”
means with respect to any Person (i) in the case of a corporation, such Person’s certificate of incorporation and by-laws,
and any shareholder agreement, voting trust or similar arrangement applicable to any of such Person’s authorized shares of
capital stock or the holders thereof, (ii) in the case of a limited partnership, such Person’s certificate of limited partnership,
limited partnership agreement and any voting trusts or similar arrangements applicable to its partners or any of its partnership
interests, (iii) in the case of a limited liability company, such Person’s certificate of formation or certificate of organization,
limited liability company agreement and any other document affecting the rights or duties of managers or holders of limited liability
company interests or (iv) in the case of any other legal entity, such Person’s organizational documents and all other documents
establishing or affecting the duties or rights of holders of equity interests in such Person.

 

“Outside Redemption Date”
means the Initial Outside Redemption Date unless extended pursuant to Section 8.5, in which case the Outside Redemption
Date shall mean the Extended Outside Redemption Date, subject to the Preferred Member’s rights under Section 6.2(g).

 

“Overhead Reimbursement”
means an amount equal to $250,000 per month to be paid beginning on the Effective Date and on each Scheduled Distribution Date
thereafter.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), including a Multiemployer
Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Company or any ERISA Affiliate or to which the
Company or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan
described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five (5) plan years.

 

“Percentage Interest”
means, with respect to any Common Member, the amount of Capital Contributions (excluding Preferred Capital Contributions) made
by such Member over the amount of Capital Contributions (excluding Preferred Capital Contributions) made by all of the Common Members.
The Preferred Member will hold a Percentage Interest equal to zero with respect to the Preferred Member Interest.

 

“Permitted Common Member Owners”
means the person agreed to in writing by the Members on the Effective Date and such person’s immediate family members and/or
trusts established for the benefit of any one or more of the foregoing, and entities owned or Controlled by any one or more of
the foregoing.

    	9

    	

    

“Permitted Debt” means:

 

(i) ordinary and customary trade
payables incurred in connection with the business of the Company and its Subsidiaries;

 

(iii) written indemnities entered
into in the ordinary course of business and on customary terms and conditions in connection with the acquisition of goods or services,
or in connection with the execution of leases or amendments thereto;

 

(iii) obligations of the Company
and its Subsidiaries under oil and gas leases;

 

(iv) obligations of the Company
and its Subsidiaries under vendor financing arrangements entered into in the ordinary course of business; and

 

(v) purchase money debt and capital
lease obligations entered into by the Company and/or its Subsidiaries in the ordinary course of business;

 

in each case on terms consistent with commercially
reasonable industry practices.

 

“Permitted Investments”
means:

 

(i) Investments held by
the Company or any of its Subsidiaries in the form of cash equivalents or short-term marketable debt securities;

 

(ii) Investments consisting
of loans and advances to officers and employees of the Company and its Subsidiaries in the ordinary course of business, not to
exceed $25,000 in the aggregate amount outstanding at any one time;

 

(iii) Investments of the
Company or any of its Subsidiaries in any wholly-owned Subsidiary of the Company; and

 

(iv) Investments consisting
of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the
ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss.

 

“Permitted Liens” means:

 

(i) obligations of the Company and
its Subsidiaries under oil and gas leases;

 

(ii) Liens arising as a result of
vendor financing arrangements permitted hereunder, provided that any such Liens attach only to the property being financed pursuant
to such transactions;

 

(ii) Liens arising as a result of
purchase money debt and capital lease obligations entered into by the Company and/or its Subsidiaries in connection with its business,
provided that any such Liens attach only to the property being financed pursuant to such transactions;

 

(iv) Liens for taxes and other impositions
not yet delinquent; and

    	10

    	

    

(v) mechanics’, materialmen’s
and other similar liens and encumbrances arising in connection with the business of the Company;

 

in each case that do not materially interfere
with the ordinary conduct of the Company or any of its Subsidiaries, or materially impair the value, use, or marketability of the
Assets subject to such Liens.

 

“Person” means any individual,
partnership, corporation, limited liability company, trust or other legal entity.

 

“Plan”
means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established or contributed to
by the Company or any of its Subsidiaries.

 

“Pledge and Security Agreement”
means that certain Pledge and Security Agreement, dated as of the date hereof, by the Common Member in favor of the Preferred Member,
as such agreement may be amended, modified or supplemented from time to time.

 

“Preferred Capital Contributions”
has the meaning set forth in Section 6.2(a).

 

“Preferred Member” has
the meaning set forth in the Preamble.

 

“Preferred Member Interest”
has the meaning set forth in Section 2.11(a).

 

“Profits” has the meaning
set forth in Section 7.2.

 

“Redemption Price” means,
as of any date, an amount equal to the sum of (i) the Unrecovered Capital as of such date plus (ii) the accrued and unpaid
Current Pay Preferred Return and Deferred Pay Preferred Return as of such date plus (iii) any other amounts then due or
payable to the Preferred Member hereunder or under the other Transaction Documents.

 

“Related Parties” has
the meaning set forth in Section 12.14.

 

“Scheduled Distribution Date”
means, for any calendar month, the first day of such month or, if such day is not a Business Day, the immediately succeeding Business
Day.

 

“Subsidiary” means any
entity in which the Company holds any ownership interest, whether directly or through one or more other Persons.

 

“Substituted Member” means
any Person admitted to the Company as a Member pursuant to the provisions of Section 9.3.

 

“Tax Matters Member” has
the meaning set forth in Section 4.5.

 

“Transaction Documents”
means, collectively, this Agreement, the Guaranty and the Pledge and Security Agreement.

 

“Transfer” means, as a
noun, any voluntary or involuntary transfer, sale, assignment, substitution, exchange or other disposition whether by operation
of law or otherwise and, as a verb, to, voluntarily or involuntary, transfer, sell, assign, substitute, exchange or dispose of,
whether by operation of law or otherwise.

    	11

    	

    

“Treasury Regulations”
means the regulations promulgated under the Code, as such regulations are in effect on the date hereof.

 

“UCC” has the meaning
set forth in Section 2.11(b).

 

“Unrecovered Capital”
means, as of any date, with respect to the Preferred Member an amount (but not less than zero) equal to the excess of (a) the sum
of (x) the aggregate amount of the Preferred Capital Contributions theretofore made by the Preferred Member pursuant to Article
6 plus (y) any Deferred Pay Preferred Return that is added to the Unrecovered Capital pursuant to Section 8.1(b), over
(b) the aggregate amount theretofore distributed to the Preferred Member as a return of capital (including any payment of capitalized
Deferred Pay Preferred Return, but excluding any payment of Current Pay Preferred Return) pursuant to Article 8.

 

“Venue Court” has the meaning
set forth in Section 12.8.

 

“Venue State” means the state
agreed to in writing between the Members on the Effective Date.

 

1.2
Terms Generally. For all purposes of this Agreement, except as otherwise expressly provided or unless the context
otherwise requires:

 

(a)
the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision;

 

(b)
the words “including” and “include” and other words of similar import shall be deemed
to be followed by the phrase “without limitation”; and

 

(c)
references herein to an Article or a Section are to one of the Articles or Sections of this Agreement.

 

ARTICLE
2

THE COMPANY AND ITS BUSINESS

 

2.1
Company Name. The business of the Company shall be conducted under the name of “Cripple Creek Energy, LLC”
in the State of Delaware and under such name or such assumed names as the Manager deems necessary or appropriate to comply with
the requirements of any other jurisdiction in which the Company may be required to qualify.

 

2.2
Term. The term of the Company commenced with the filing of the Certificate of Formation with the Secretary of State
of the State of Delaware on May 28, 2013 and shall continue in full force and effect perpetually unless the Company is dissolved
as hereinafter provided.

 

2.3
Filing of Amendments to the Certificate of Formation. Each of the Members hereby agrees to execute and file any required
amendments to the Certificate of Formation and to do or cause to be done all other acts requisite for the continuation of the Company
as a limited

    	12

    	

    

liability
company pursuant to the laws of the State of Delaware or any other applicable law, as shall be determined by the Manager.

 

2.4
Purpose.

 

(a)
The Company is formed solely for the purpose of acquiring, owning, managing, operating, developing, drilling, disposing
and otherwise dealing with, whether directly or indirectly through its Subsidiaries, oil and gas leasehold acreage and working
interests, producing and selling oil, gas and other minerals and hedging such production, and engaging in any and all activities
necessary or incidental to the foregoing.

 

(b)
Neither the Company nor any Member is, or will be, by virtue of executing this Agreement, responsible or liable for any
indebtedness or obligation of any other Member incurred or arising either before or after the Effective Date, except that the Company
only (and not any Member) has those responsibilities, liabilities, indebtedness, and obligations that the Company expressly assumes
as of the Effective Date or incurs after the Effective Date, in each case in accordance with the terms of this Agreement.

 

2.5
Principal Office; Registered Agent. The principal office of the Company will be located at the address designated
by the Members in writing on the Effective Date. The Company may change its place of business to such location or locations as
may at any time or from time to time be proposed by the Manager. The mailing address of the Company will be designated in writing
by the Members on the Effective Date, or such other address as may be selected from time to time by the Manager. The Company shall
maintain a registered office at Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware, 19801. The name and address
of the Company’s registered agent is The Corporation Trust Company, 1209 Orange Street, Wilmington, Delaware, 19801.

 

2.6
Names and Addresses of the Members. All notices and communications required or permitted under this Agreement must
be in writing addressed as indicated by the Members in writing as of the Effective Date, and any communication or delivery hereunder
will be deemed to have been duly delivered upon the earliest of: (a) actual receipt by the Member to be notified; (b) the date
shown as received on the return notice if sent by U.S. certified mail, postage prepaid, return receipt requested; (c) if by e-mail,
upon actual receipt of such e-mail and, to the extent applicable, satisfaction of the requirements as set forth in the following
sentence; or (d) the date shown on the notice of delivery if delivered by Federal Express overnight delivery (or other reputable
overnight delivery service). Any notice that is given by email and that includes any attachments to such email must also comply
with the following: (i) a separate copy of such email without attachments must also be delivered to the addressees to be notified,
and (ii) a copy of any attachments must be made available to each such addressee on an ftp site with the instructions on how to
access such site included in the email notice. Either Member may, upon written notice to the other Member, change the address(es)
and person(s) to whom such communications are to be directed.

 

2.7
Duties of Manager. The Manager shall execute, deliver and file any other certificates (and any amendments and/or
restatements thereof) necessary for the Company to qualify to do business in any jurisdiction in which the Company may wish to
conduct business. Any actions taken by the Manager, the Common Member or any representative of the Common Member in connection
with the execution, delivery or filing of the Certificate of Formation

    	13

    	

    

with the Secretary of State of the State
of Delaware or the qualification of the Company or its Subsidiaries to do business or any other action relating thereto is hereby
ratified, confirmed and approved by the Members as having been authorized by the Company.

 

2.8
Representations by the Members. Each Member represents, warrants and agrees to and for the benefit of each other
Member that, as of the Effective Date:

 

(a)
it is a corporation, limited liability company or partnership, as the case may be, duly organized or formed and validly
existing and in good standing under the laws of the state of its organization or formation; it has all requisite corporate, limited
liability company or partnership power and authority to enter into this Agreement and each other Transaction Document to which
it is a party and to perform its obligations hereunder and thereunder;

 

(b)
the execution, delivery and performance of this Agreement and each other Transaction Document to which it is a party has
been duly authorized by all necessary corporate, limited liability company or partnership action;

 

(c)
its execution and delivery of this Agreement and each other Transaction Document to which it is a party do not and will
not conflict with or violate any of the provisions of its Organizational Documents, any other material agreement to which it is
a party, or any Legal Requirements to which it is subject or by which it or its Assets are bound;

 

(d)
there is no action, suit or proceeding pending against such Member or, to its knowledge, threatened in any court or by or
before any other Governmental Authority that would materially and adversely affect such Member’s ability to perform its obligations
under this Agreement or any other Transaction Document to which it is a party;

 

(e)
this Agreement and each other Transaction Document to which it is a party is a binding agreement on the part of such Member
enforceable against such Member in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting creditors’ rights;

 

(f)
(i) each Person owning a 10% or greater interest in such Member (A) is not currently identified on the List,
and (B) is not a Person 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 (ii) such Member has implemented procedures, and will consistently apply those procedures, to ensure the foregoing representations
and warranties remain true and correct at all times. This Section 2.8(f) shall not apply to any Person to the extent that
such person’s interest in such Member is through either (x) a Person (other than an individual) whose securities are listed
on a national securities exchange, or quoted on an automated quotation system, in the United States, or a wholly-owned subsidiary
of such a Person or (y) an “employee pension benefit plan” or “pension plan” as defined in Section 3(2)
of ERISA;

 

(g)
it complies with all applicable requirements of law relating to money laundering, anti-terrorism, trade embargos and economic
sanctions, now or hereafter in effect and shall promptly notify the other Member in writing if any of the foregoing representations,

    	14

    	

    

warranties or covenants are no longer true
or have been breached or if such Member has actual knowledge that they may no longer be true or have been breached; and

 

(h)
except for the finder’s fee to be paid to the parties identified to the Preferred Member in writing by the Common
Members as of the Effective Date, there are no brokerage commissions or finders’ fees (or any basis therefor) resulting from
any action taken by such Member or any Person acting or purporting to act on their behalf upon entering into this Agreement.

 

2.9
Representations by the Common Member. As a material inducement to the Preferred Member executing and delivering this
Agreement and each of the other Transaction Documents to which it is a party, the Common Member hereby makes the following additional
representations and warranties:

 

(a)
(i) as of the date of this Agreement, it is directly owned 100% by Permitted Common Member Owners and (ii) as of any date
after the date of this Agreement, it is, directly or indirectly, more than fifty percent (50%) owned and Controlled by Permitted
Common Member Owners;

 

(b)
it owns 100% of the Common Member Interest in the Company, free and clear of all Liens whatsoever;

 

(c)
it has provided the Preferred Member with a true and correct copy of each Option Agreements and, upon the assignment of
the Option Agreements to the Company pursuant to the Assignment Agreement, the Company shall own the interest of the purchaser
under the Option Agreements, free and clear of all Liens other than Permitted Liens;

 

(d)
(i) the Company and each of its Subsidiaries is a corporation, limited liability company or partnership, as the case may be, duly
organized or formed and validly existing and in good standing under the laws of the state of its organization or formation; (ii)
the Company has all requisite limited liability company power and authority to perform its obligations hereunder; (iii) the Company
and each of its Subsidiaries is duly qualified and is licensed and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business requires such qualification or licenses, except in the
case of clause (iii) where the failure to do so would not reasonably be expected to have a Material Adverse Effect;

 

(e)
(i) as of the date of this Agreement, there is no action, suit or proceeding pending against the Company or any the Company’s
Subsidiaries or, to the Common Member’s knowledge, threatened in any court or by or before any other Governmental Authority,
and (ii) as of any date after the date of this Agreement, there is no action, suit or proceeding pending against the Company or
any the Company’s Subsidiaries or, to the Common Member’s knowledge, threatened in any court or by or before any other
Governmental Authority, which, if determined adversely to the Company or any of the Company’s Subsidiaries, would reasonably
be expected to have a Material Adverse Effect;

 

(f)
(i) as of the date of this Agreement, the Company has not engaged in any business and (ii) as of any date after the date
of this Agreement, the Company has not engaged in any business other than acquiring, owning, managing, operating, developing, drilling,

    	15

    	

    

disposing and otherwise dealing with, whether
directly or indirectly through its Subsidiaries, oil and gas leasehold acreage and working interests, producing and selling oil,
gas and other minerals and hedging such production, and engaging in activities necessary or incidental to the foregoing;

 

(g)
as of the date of this Agreement, the Company has no liabilities or obligations and is not a party to or bound by any Contract
other than this Agreement and upon the assignment of the Option Agreements to the Company pursuant to the Assignment Agreement,
the Assignment Agreement and each of the Option Agreements;

 

(h)
(i) as of the date of this Agreement, the Company has not incurred any Indebtedness and (ii) as of any date after the date of this
Agreement, neither the Company nor any of its Subsidiaries has incurred any Indebtedness other than Permitted Debt;

 

(i)
(i) as of the date of this Agreement, the Company has no Assets (including any direct or indirect equity interests in any
other Person) and (ii) as of any date after the date of this Agreement, none of the Assets of the Company or any of its Subsidiaries
is subject to any Liens other than Permitted Liens;

 

(j)
neither the Company nor any of its Subsidiaries, nor the Common Member, is an “employee benefit plan” as defined
in Section 3(3) of ERISA, subject to Title I of ERISA, and none of the Assets of the Company or any of its Subsidiaries or the
Common Member constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R.
Section 2510.3-101;

 

(k)
neither the Company nor any of its ERISA Affiliates currently sponsors, maintains, or has any obligation to contribute to
any Pension Plan, nor has the Company or any of its ERISA Affiliates sponsored, maintained, or had the obligation to contribute
to any Pension Plan in the past;

 

(l)
neither the Company nor any of its Subsidiaries currently sponsors, maintains, or has any obligation to contribute to any
Plan that provides health, accident, or life insurance benefits to any former director, employee, or consultant of the Company
or any of its Subsidiaries or to the spouse or dependents of such former director, employee, or consultant, other than in accordance
with Section 4980B of the Code, nor has the Company or any of its Subsidiaries sponsored, maintained, or had the obligation to
contribute to any such Plan in the past;

 

(m)
to the knowledge of the Common Member, each Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Code, and other Federal or state Legal Requirements. Each Plan that is intended to qualify under Section 401(a) of
the Code has received a determination letter from the IRS to the effect that such Plan is qualified under Section 401(a) of the
Code and the trust related thereto has been determined by the IRS to be exempt from federal income tax under Section 501(a) of
the Code, or an application for such a letter is currently being processed by the IRS with respect thereto. To the knowledge of
the Common Member, nothing has occurred that would prevent, or cause the loss of, such qualification. The Company and each Subsidiary
has made all required contributions to each Plan on a timely basis;

    	16

    	

    

(n)
there are no pending or, to the knowledge of the Common Member, threatened claims, actions, or lawsuits, or action by any
Governmental Authority, with respect to any Plan that are material to either the Company or the applicable Plan. There has been
no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan;

 

(o)
neither the Company nor any of its Subsidiaries has committed or engaged in any unfair labor practice (as defined in the
National Labor Relations Act of 1947 and the regulations thereunder, in each case, as amended). There is (i) no unfair labor practice
complaint pending or, to the knowledge of the Common Member, threatened against the Company or any of its Subsidiaries before the
National Labor Relations Board and no grievance or arbitration proceeding arising out of or under collective bargaining agreements
is so pending or threatened, (ii) no strike, labor dispute, slowdown or stoppage pending or, to the knowledge of the Common Member,
threatened against the Company or any of its Subsidiaries, (iii) no union representation exists with respect to the employees of
the Company or its Subsidiaries and, to the knowledge of the Common Member, no union organizing activities are taking place, (iv)
no employment contract, deferred compensation agreement, bonus plan, incentive plan, profit sharing plan, retirement agreement
or other employee compensation agreement exists with any employee of the Company or any of its Subsidiaries. Each of the Company
and its Subsidiaries is in compliance in all material respects with all federal, state or other applicable laws respecting employment
and employment practices, terms and conditions of employment and wages and hours. None of the Company or its Subsidiaries is a
party to any collective bargaining agreement;

 

(p)
with respect to the Financial Statements delivered by the Common Member to the Preferred Member on or prior to any particular
date, (i) such Financial Statements fairly present, in all material respects, the financial position of the Company and its Subsidiaries,
as of the respective dates thereof, and the results of operations thereof, as of the respective dates or for the respective periods
set forth therein, all in conformity with generally accepted accounting principles consistently applied during the periods involved,
except as otherwise set forth in the notes thereto and subject, in the case of the Interim Financial Statements, to normal year-end
adjustments and the lack of footnotes, and (ii) as of the dates of the Financial Statements, neither the Company nor any of its
Subsidiaries had a known obligation, indebtedness or liability (whether accrued, absolute, contingent or otherwise, and whether
due or to become due), which was not reflected or reserved against in the balance sheets which are part of the Financial Statements,
except for those incurred in the ordinary course of business and which are fully reflected on the books of account of the Company
or its Subsidiaries, as applicable, or which, individually or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect;

 

(q)
the Company and each of its Subsidiaries is in compliance with all Legal Requirements applicable to it or to its Assets, except
in such instances in which (i) such Legal Requirement is being contested in good faith by appropriate proceedings diligently conducted
or (ii) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect;

 

(r)
the Company has not entered into this Agreement or the other Transaction Documents with the intent to hinder, delay or defraud
its creditors;

    	17

    	

    

(s)
the properties, business and operations of the Company and its Subsidiaries are, as of the date of this Agreement or will as soon
as reasonably practicable after the date of this Agreement be at all times, insured with financially sound and reputable insurance
companies that are not Affiliates of the Manager or any Member, in such amounts, with such deductibles and covering such risks
as, to the knowledge of the Common Member, are customarily carried by companies engaged in similar businesses and owning similar
properties in localities where the Company and such Subsidiaries operate;

 

(t)
no report, certificate or other written information furnished by or on behalf of the Company in connection with any Transaction
Document contains any material misstatement of fact or omits to state any material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made, not materially misleading;

 

(u)
the Company and each of its Subsidiaries possess as of the date of this Agreement, or will as soon as reasonably practicable after
the date of this Agreement possess, and will thereafter maintain, all permits, consents, approvals, franchises and licenses required
and rights to all trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to conduct the business
as proposed to be conducted in compliance with all Legal Requirements, except where the failure to possess such any such item would
not reasonably be expected to have a Material Adverse Effect;

 

(v)
except for payments by the Company of distributions, fees or salaries to the Manager or Members in accordance with the terms
of this Agreement and the other Transaction Documents, the Company has not entered into any transaction with the Manager, the Common
Member or any of their respective Affiliates, except for (i) the Assignment Agreement and (ii) such transactions which, as of the
effective date thereof, are on terms which are no less favorable (taking into consideration all appropriate factors) to the Company
or its applicable Subsidiary than those that would be available on an arm’s-length basis with third parties and are otherwise
consistent with commercially reasonable industry practice;

 

(w)
(i) no form of general solicitation or general advertising was used by the Company or any of its representatives in connection
with the offer or sale of the Interests to the Members, and (ii) assuming the accuracy of the representations and warranties made
by the Preferred Member hereunder, no registration of the Interests pursuant to the provisions of any federal or state securities
laws will be required for the offer, sale or issuance of the Interests to the Members pursuant to this Agreement; and

 

(x)
as of the date of this Agreement and before giving effect to the Assignment Agreement, the Company is not a party to any
Material Contracts.

 

2.10
Representations by the Preferred Member. As a material inducement to the Common Member executing and delivering this
Agreement and each of the other Transaction Documents to which it is a party, the Preferred Member hereby makes the following additional
representations and warranties:

 

(a)
it is, directly or indirectly, 100% owned and Controlled by APPLE Ten Ventures Services, Inc.;

    	18

    	

    

(b)
it owns 100% of the Preferred Member Interest in the Company, free and clear of all Liens whatsoever;

 

(c)
it has been advised to engage and has engaged its own counsel (whether in-house or external) and such other advisers as
such Member deems necessary and appropriate; by reason of its business or financial experience, or by reason of the business or
financial experience of such Member’s own attorneys, accountants and financial advisors who are not Affiliates of the Company
or any other Member and who are not compensated, directly or indirectly, by the Company or any other Member or any Affiliate thereof,
it is capable of evaluating the risks and merits of an investment in the Company and of protecting its own interests in connection
with this investment (nothing in this Agreement shall be construed to allow any Member to rely upon the counsel acting for another
Member or to create an attorney-client relationship between such counsel and such other Member);

 

(d)
it is an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act
of 1933, as amended) and a “qualified purchaser” (as defined in the Investment Company Act of 1940, as amended), and
it is acquiring its Interest for investment purposes for its own account only and not with a view to or for sale in connection
with any distribution of all or any part of its Interest;

 

(e)
it is financially able to bear the economic risk of an investment in the Company, including the total loss thereof; and

 

(f)
no Person has at any time expressly or impliedly represented, guaranteed, or warranted to it that it may freely transfer
its Interest, that a percentage of profit and/or amount or type of consideration will be realized as a result of an investment
in the Company, that cash distributions from Company operations or otherwise will be made to the Members by any specific date or
will be made at all, or that any specific tax benefits will accrue as a result of an investment in the Company.

 

2.11
Classes of Interests; Certificates.

 

(a)
The Company has two classes of Interests outstanding and authorized
for issuance: (i) the “Common Interest” (the “Common Member Interest”) and (ii) the “Preferred
Interest” (the “Preferred Member Interest”).

 

(b)
The Common Member Interest shall constitute and shall remain a “security” within the meaning of (i) Section
8-102(a)(15) of the Uniform Commercial Code as in effect from time to time in the State of Delaware and (ii) the Uniform Commercial
Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof
as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the
American Bar Association on February 14, 1995. Notwithstanding any provision of this Agreement to the contrary, to the extent that
any provision of this Agreement is inconsistent with any non-waivable provision of Article 8 of the Uniform Commercial Code as
in effect in the State of Delaware (the “UCC”), such provision of Article 8 of the UCC shall be controlling.

 

(c)
The Preferred Member Interest shall not be certificated. The Common Member Interest shall be evidenced by a certificate
in the name of the holder thereof substantially in the

    	19

    	

    

form of Exhibit B hereto (a “Certificate”).
Without any further act, vote or approval of any Member, the Company shall issue a new Certificate in place of any Certificate
previously issued if the holder of the limited liability company interests in the Company represented by such Certificate, as reflected
on the books and records of the Company:

 

(1)
makes proof by affidavit, in form and substance satisfactory to the Company, that such previously issued Certificate has
been lost, stolen or destroyed;

 

(2)
requests the issuance of a new Certificate before the Company has notice that such previously issued Certificate has been
acquired by a purchaser for value in good faith and without notice of an adverse claim;

 

(3)
if requested by the Company, delivers to the Company a bond, in form and substance satisfactory to the Company, with such
surety or sureties as the Company may direct, to indemnify the Company against any claim that may be made on account of the alleged
loss, destruction or theft of the previously issued Certificate; and

 

(4)
satisfies any other reasonable requirements imposed by the Company.

 

Upon a Member’s transfer
in accordance with the provisions of this Agreement of any or all limited liability company interests in the Company represented
by a Certificate, the transferee of such limited liability company interests in the Company shall deliver such Certificate to the
Company for cancellation (executed by such transferee on the reverse side thereof), and the Company shall thereupon issue a new
Certificate to such transferee for the percentage of limited liability company interests in the Company being transferred and,
if applicable, cause to be issued to such Member a new Certificate for that percentage of limited liability company interests in
the Company that were represented by the canceled Certificate and that are not being transferred.

 

2.12
Tax Classification. It is the intent of the Members that each of the Company and all of its Subsidiaries shall always
be operated in a manner consistent with its treatment as a “partnership” or a “disregarded entity” for
federal, state and local income and franchise tax purposes. In accordance therewith, (a) no Member shall file any election with
any taxing authority to have the Company or any Subsidiary treated otherwise, and (b) each Member hereby represents, covenants,
and warrants that it shall not maintain a position inconsistent with such treatment. The Common Member agrees that, except as otherwise
required by applicable law, it: (i) will not cause or permit the Company or any Subsidiary to elect (A) to be excluded from the
provisions of Subchapter K of the Code, if applicable, or (B) to be treated as a corporation or an association taxable as a corporation
for any tax purposes; (ii) will cause the Company and each Subsidiary to make any election reasonably determined to be necessary
or appropriate in order to ensure the treatment of the Company and each Subsidiary as a partnership or as a disregarded entity
for all tax purposes; (iii) will cause the Company and each Subsidiary to file any required tax returns in a manner consistent
with its treatment as a partnership or as a disregarded entity for tax purposes; and (iv) has not taken, and will not take, any
action that would be inconsistent with the treatment of the Company and each Subsidiary as a partnership or as a disregarded entity
for such purposes.

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ARTICLE 3

 

MANAGEMENT OF COMPANY BUSINESS

 

3.1
Management and Control.

 

(a)
Subject only to the limitations hereafter set forth, the management of the Company and its business will rest exclusively
with one (1) individual (the “Manager”), who will have all the rights and powers of the Company whether derived
pursuant to the Act, the Certificate of Formation, this Agreement or conferred by law or are necessary, advisable or convenient
in connection with the management of the business of the Company.

 

(b)
Until removed or replaced in accordance with the terms hereof, the Common Member will be the sole Manager. Except as otherwise
provided in this Agreement or to the extent prohibited by applicable law, the Manager will (i) manage and control the Company and
the Company’s business and affairs and will use reasonable efforts to carry out the business of the Company as set forth
in this Agreement and (ii) have the ability to conduct the Company’s business in a manner as determined in the Manager’s
sole discretion, consistent with Section 2.4, and be empowered to bind the Company. The Manager will hold office until such
Manager’s successor is appointed. It is not a requirement that a Manager be a Member. In the event the Manager resigns, then
the Common Member shall have the sole right to appoint a replacement Manager, provided that any replacement other than an
Approved Replacement Manager shall require the prior written consent of the Preferred Member, subject to Section 6.2(h).
In addition, at any time and from time to time, the Common Member shall have the power to remove and replace the Manager by delivering
written notice of such removal to the other Member, provided that any replacement other than an Approved Replacement Manager
shall require the prior written consent of the Preferred Member, subject to Section 6.2(h).

 

(c)
Except as expressly provided in this Agreement or in the case of a Member acting as Manager, the Members will have no authority
to act for or on behalf of the Company or to control the business of the Company. The Manager will, on request of the Members,
provide copies of business plans, budgets and other information prepared by the Manager in the ordinary course of the Manager’s
operation of the Company. The Members agree to execute and deliver such instruments as might be required from time to time in the
conduct of the Company’s business.

 

(d)
The Manager will cause the Company and each of its Subsidiaries to do or cause to be done all things necessary to preserve,
renew and keep in full force and effect its existence and to comply in with all Legal Requirements applicable to the Company and
its Subsidiaries, except where the failure to do so would not reasonably be expected to have a Material Adverse Effect.

 

(e)
In connection with the conduct of the business of the Company, the Manager may, subject to Section 3.2(g), from time
to time engage one or more Persons that are Affiliates of the Manager or the Common Member to perform services on behalf of the
Company and/or its Subsidiaries, the costs of which shall be paid by the Company and/or its Subsidiaries and is not included as
part of the Overhead Reimbursement.

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3.2
Operating Restrictions. Without the consent of both the Common Member and the Preferred Member (which consent, with
respect only Section 3.2(e) for the sale of any material Asset, will not be unreasonably withheld, conditioned or delayed),
the Company shall not, nor permit any of its Subsidiaries to, do any of the following:

 

(a)
incur any Indebtedness other than Permitted Debt;

 

(b)
grant or permit any Liens on any of its Assets other than Permitted Liens;

 

(c)
engage in any business other than acquiring, owning, managing, operating, developing, drilling, disposing and otherwise
dealing with, whether directly or indirectly through its Subsidiaries, oil and gas leasehold acreage and working interests, producing
and selling oil, gas and other minerals and hedging such production, and engaging in activities necessary or incidental to the
foregoing;

 

(d)
issue any equity interests (including any securities convertible into equity interests), other than any issuance of equity
interests where (i) such equity interests rank junior in priority to the Preferred Member Interest and are pledged to the Preferred
Member on the same terms and conditions as in the Pledge and Security Agreement and (ii) following such issuance, the Common Member
continues to Control more than 50% of the Common Member Interest;

 

(e)
consolidate or merge with or into any other Person or sell any material Asset, except for mergers, or consolidations or sales that
are solely between or among the Company and/or its Subsidiaries; provided that (i) in any merger between a Subsidiary and the Company,
the Company must be the continuing or surviving Person, and (ii) in any merger between the Company’s Subsidiaries where one
of such Subsidiaries is wholly owned by the Company and the other such Subsidiary is not wholly owned by the Company, the wholly-owned
Subsidiary must continue or survive the merger as a wholly-owned Subsidiary of the Company;

 

(f)
(i) create or permit to exist any Subsidiary unless the Company owns not less than 100% of the equity interests of such
Subsidiary or (ii) make any Investments other than Permitted Investments;

 

(g)
enter into any transaction with the Manager, the Common Member or any of their respective Affiliates unless such transaction,
as of the effective date thereof, is on terms which are no less favorable (taking into consideration all appropriate factors) to
the Company or its applicable Subsidiary than those that would be available on an arm’s-length basis with third parties and
are otherwise consistent with commercially reasonable industry practice;

 

(h)
(i) enter into any Contract (other than this Agreement and the other Transaction Documents) that prohibits the Company from
paying all or any portion of the Current Pay Preferred Return or any other payments due in respect of the Preferred Member Interest
or that otherwise conflicts with the terms of this Agreement or (ii) agree to enter into any such Contract;

 

(i)
enter into any Contract whereby it shall sell or transfer any property, real or personal, used or useful in its business,
whether now owned or hereinafter acquired, and

    	22

    	

    

thereafter rent or lease such property or
other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred;

 

(j)
pay any management or similar fees to the Common Member or any of its Affiliates (other than distributions or payments otherwise
required or permitted hereunder), or enter into any Contract providing for such payments;

 

(k)
make any material change in accounting treatment or reporting practices, except as required by generally accepted accounting
principles, or change its Fiscal Year, except to change the Fiscal Year of a Subsidiary to conform its Fiscal Year to that of the
Company;

 

(l)
redeem or repurchase (or pay to or set aside payment for a sinking fund established for such purposes), or pay or declare
any dividends or other distributions with respect to any equity interest of the Company or any its Subsidiaries other than the
Preferred Member Interest, except to the extent expressly permitted or required hereunder and except for dividends or other distributions
from a Subsidiary to the Company or another Subsidiary;

 

(m)
compensate its executive officers, managers, directors, or any relative or family member thereof, whether by means of salary,
bonus, profit sharing, options, dividends or any other means other than as provided in the Company’s annual budget;

 

(n)
fail to maintain with financially sound and reputable insurance companies that are not Affiliates of the Manager or any
Member, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by
Persons engaged in the same or similar business, of such types and in such amounts (after giving effect to any self-insurance compatible
with the following standards) as are customarily carried under similar circumstances by such other Persons and otherwise mutually
acceptable to the Preferred Member and the Common Member. All such policies shall (i) name the Preferred Member and the Common
Member as additional insured under an endorsement satisfactory to the Preferred Member and the Common Member, and (ii) provide
for 30 days’ written notice to the Preferred Member and the Common Member before such policy is altered or canceled. All
of the insurance policies required hereby shall be evidenced by one or more certificates of insurance delivered to the Preferred
Member and the Common Member on the date of this Agreement and at such other times as the Preferred Member or the Common Member
may separately request from time to time;

 

(o)
fail to comply with all Legal Requirements, and all orders, writs, injunctions and decrees applicable to it or to its business
or Assets, except in such instances in which (i) such Legal Requirement or order, writ, injunction or decree is being contested
in good faith by appropriate proceedings diligently conducted; or (ii) the failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect; or

 

(p)
dissolve or liquidate the Company.

 

3.3
Waiver of Fiduciary Duties; Only Contractual Duties Herein Control.

 

(a)
To the fullest extent permitted by applicable law, and in reliance on, inter alia, Section 18-2017 of the
Act, each Member hereby expressly waives any fiduciary duty and any

    	23

    	

    

implied duties that might be owed to such
Member, the Company or any Subsidiary by the Manger, the Common Member or any other Member.

 

(b)
Wherever in this Agreement the Manager or any Member is permitted or required to make a decision or determination or take
an action, then unless otherwise expressly provided herein, the Manager or such Member, as applicable, may make that decision or
determination, or take such action or omit to take such action, in its sole and absolute discretion.

 

3.4
Subsidiaries. Subject to Section 3.2, the Manager, on behalf of the Company, may form at any time one or more
Subsidiaries to hold title to all or any portion of the Company’s Assets or to otherwise conduct the business of the Company.
Any and all references herein to the Company or the Manager causing or directing any action on behalf of a Subsidiary shall be
deemed to refer to the Company causing (or the Manager causing the Company to cause), in its capacity as the member, partner, manager,
shareholder or other equity owner of such Subsidiary, such action to be taken for and on behalf of such Subsidiary. Any and all
references herein to the Manager causing the Company to do something shall be construed to mean causing either the Company or a
Subsidiary to take such action, as determined by the Manager in its discretion, subject to the terms and conditions of Section
3.2. Any action to be taken by any such Subsidiary shall be construed as an action taken by the Company and shall be subject
to the same rights and limitations granted to and imposed on the Members under this Agreement.

 

ARTICLE 4

 

RIGHTS AND
DUTIES OF MEMBERS

 

4.1
Other Activities of the Members.

 

(a)
Except as otherwise provided in this Agreement (including but not limited to Section 3.3), the Manager and each Member
may engage or invest in any other activity or venture, whether or not competitive with the Company and/or any Subsidiary, or possess
any interest therein independently or with others, (ii) none of the Members, the Manager, the Company, any Subsidiary or any other
Person employed by, related to or in any way affiliated with any Member, the Manager, the Company or any Subsidiary shall have
any duty or obligation to disclose or offer to the Company, any Subsidiary or any Member, or obtain for the benefit of the Company,
any Subsidiary or the Members, any other activity or venture or interest therein, and (iii) none of the Company, any Subsidiary,
any Member, the creditors of the Company or any Subsidiary or any other Person having any interest in the Company or any Subsidiary
shall have (A) any claim, right or cause of action against any Member or any other Person employed by, related to or in any way
affiliated with, any Member by reason of any direct or indirect investment or other participation, whether active or passive, in
any such activity or venture or interest therein, or (B) any right to any such activity or venture or interest therein or the income
or profits derived therefrom. The Company renounces, on behalf of the Company and/or any Subsidiary, any interest or expectancy
of the Company in, or in being offered an opportunity to participate in, or right to be informed of, any corporate opportunity,
including any potential transaction, investment, or business opportunity in which the Company and/or any Subsidiary could otherwise
have any expectancy or interest.

 

(b)
Except as otherwise provided in this Agreement (including but not limited to Section 3.3), the fact that the Manager,
a Member, an Affiliate of a Member, or any officer,

    	24

    	

    

director, employee, member, partner, shareholder,
subsidiary, parent company, consultant or agent of such Member or such Affiliate, is directly or indirectly interested in or connected
with any Person employed by the Company or any Subsidiary to render or perform a service, or from or to whom the Company or any
Subsidiary may buy or sell any property or have other business dealings, does not prohibit, limit or restrict the right of the
Common Member to cause the Company and/or any Subsidiary to employ, hire, engage or otherwise retain that Person at competitive
rates of compensation, and neither the Company or any Subsidiary nor any of the other Members has any right in or to any income
or profits derived therefrom.

 

4.2
Manager and Member Exculpation; Indemnification.

 

(a)
Except as otherwise expressly set forth in this Agreement, neither the Manager nor any Member nor any of such Member’s
Affiliates shall be liable, responsible or accountable in damages to the Company or any Subsidiary, any third party or to any other
Member for (i) any act, omission, alleged act or alleged omission performed within the scope of the authority conferred on the
Manager or the Member by this Agreement except for fraud, gross negligence, willful misconduct or knowing violation of law of the
Manager or Member in carrying out its obligations hereunder, (ii) the Manager or Member’s performance of, or failure to perform,
any act on the reasonable reliance on advice of legal counsel to the Company or any Subsidiary or (iii) the negligence, dishonesty
or bad faith of any agent, consultant or broker of the Company or any Subsidiary selected, engaged or retained in good faith and
with reasonable prudence; provided, however, the foregoing is not intended to exculpate the Company, the Manager
or the Member for acts in breach of the terms and conditions of this Agreement, including breaches by such Person of any applicable
Fiduciary Duty.

 

(b)
In any threatened, pending or completed action, suit or proceeding brought by an unaffiliated third party, the Company shall
indemnify and defend the Manager and the Member and/or such Member’s Affiliates against all damages, penalties, costs, and
expenses of any kind or nature whatsoever (including reasonable attorneys’ fees, costs of investigation, fines, judgments
and amounts paid in settlement, actually incurred by the Manager or the Member and/or such Member’s Affiliates in connection
with the action, suit or proceeding) by virtue of its status as the Manager or Member or an Affiliate of the Member or in any of
its capacities provided for hereunder, other than liabilities and losses resulting from the Manager or the Member’s acts
or omissions for which such Person is not excused from liability by virtue of Section 4.2(a). If any such Manager, Member
or Affiliate receives actual notice of any claim or the commencement of any claim that could give rise to an obligation on the
part of the Company to defend and indemnify such Person, such Person shall promptly give the Company written notice thereof; provided,
that the failure to promptly notify the Company will not relieve the Company of any liability that it may have to any such Person,
except, and solely to the extent, that the Company demonstrates that such failure actually damages the Company or materially prejudices
the Company’s ability to defend against such claim.

 

4.3
Title to Company Assets. No Member, individually or collectively, will have any ownership interest in the Assets
of the Company or any of its Subsidiaries or any portion thereof. If, for any reason, legal title to any such Asset is held in
the name of a Member or an Affiliate of a Member, such Person will hold such Asset solely for the use and benefit of the Company
or its applicable Subsidiary, as the case may be, in accordance with this Agreement. The Assets of the Company and its Subsidiaries
will be recorded as the property of the Company

    	25

    	

    

or such Subsidiary on its books and records, irrespective of the name in which legal title
to such Assets is held.

 

4.4
Designation of Tax Matters Member. For any period during which the Company or any Subsidiary is treated as a “partnership”
for federal income tax purposes, the Common Member is hereby designated as the “tax matters partner” of the Company
and any Subsidiary, as provided in the regulations promulgated under Section 6231 of the Code (the “Tax Matters Member”).
Each Member shall execute, certify, acknowledge, deliver, swear to, file and record all documents necessary or appropriate to evidence
its approval of this designation. Each Member reserves all rights under applicable law, including the right to retain independent
counsel of its choice at its expense. The Company shall indemnify the Tax Matters Member for, and hold it harmless against, any
claims made against it in its capacity as Tax Matters Member in accordance with, and subject to the limitations in, Section
4.2. Nothing in this Section 4.5 limits the ability of any Member to take any action in its individual capacity relating
to the Company that is left to the determination of an individual Member under Section 6222 to 6231 of the Code or any similar
provision of state or local law. Expenses incurred by the Tax Matters Member shall be borne by the Company, subject, however, to
the limitations in Section 4.2. Such expenses shall include, without limitation, fees of attorneys and other tax professionals,
accountants, appraisers and experts, filing fees and reasonable out-of-pocket costs and expenses. Any decisions made by the Tax
Matters Member, including, without limitation, whether or not to settle or contest any tax matter, whether or not to extend the
period of limitations for the assessment or collection of any tax and the choice of forum for such contest shall be made in the
Tax Matters Member’s sole discretion.

 

ARTICLE 5

BOOKS AND RECORDS;
ANNUAL REPORTS; EXPENSES AND OTHER MATTERS

 

5.1
Books of Account. At all times during the continuance of the Company, the Manager shall keep or cause to be kept
true and complete books of account in which shall be entered fully and accurately each transaction of the Company. Such books shall
be kept on the basis of the Fiscal Year in accordance with the accrual method of accounting, and shall reflect all Company transactions
in accordance with generally accepted accounting principles.

 

5.2
Availability of Books of Account. All of the books of account referred to in Section 5.1, together with an
executed copy of this Agreement and the Certificate of Formation, and any amendments thereto, shall at all times be maintained
at the Company’s principal place of business or such other location within the Venue State as the Manager may propose, and
upon reasonable notice to the Manager, shall be open to the inspection and examination of each other Member or its representatives
during reasonable business hours.

 

5.3
Annual Reports and Statements; Tax Reports; Notices.

 

(a)
For each Fiscal Year, the Manager shall send to each Member, within sixty (60) days after the end of such Fiscal Year, a
compilation annual report of the Company and its Subsidiaries (on a consolidated basis) and within one hundred twenty (120) days
an audited consolidated annual balance sheet, profit and loss statement and a statement of changes in financial position, and a
statement showing distributions to the Members, all prepared in

    	26

    	

    

accordance with generally accepted accounting
principles consistently applied (such financial statements, the “Annual Financial Statements”.

 

(b)
For each calendar quarter, the Manager shall send to each Member, within sixty (60) days after the end of such quarter,
quarterly financial statements of the Company its Subsidiaries (on a consolidated basis) including a quarterly unaudited consolidated
balance sheet, profit and loss statement and a statement of changes in financial position, and a statement showing distributions
to the Members, all prepared in accordance with generally accepted accounting principles consistently applied (such financial statements,
the “Interim Financial Statements” and, together with the Annual Financial Statements, the “Financial
Statements”).

 

(c)
In addition, during any period in which the Company is treated as a “partnership” for federal income tax purposes,
the Manager shall send to each Member all completed IRS Schedule K-1’s no later than March 31st of each year.

 

(d)
The Company shall cause the Company’s independent accountants to prepare (under the oversight of the Manager), on
an accrual basis, all federal, state and local tax returns required to be filed by the Company and its Subsidiaries, and shall
cause each Subsidiary to file all such returns and other reports that it is required by law to file. The Company shall prepare
or cause to be prepared all required returns as if the Company and the Subsidiaries named in the return were each a partnership
or a disregarded entity for federal tax purposes.

 

(e)
The Manager shall give prompt written notice to each Member of any litigation or governmental proceedings pending or threatened
(in writing) against the Company or any Subsidiary which, if determined adversely to such Person, could reasonably be expected
to have a Material Adverse Effect.

 

5.4
Accounting Expenses. All out‐of‐pocket expenses payable in connection with the keeping of the books and
records of the Company and the preparation of financial statements and federal and local tax and information returns required to
implement the provisions of this Agreement or required by any Governmental Authority with jurisdiction over the Company shall be
borne by the Company as an ordinary expense of its business and will not be part of the Overhead Reimbursement.

 

5.5
Members’ Expenses.

 

(a)
On the Effective Date, the Company will reimburse each Member for the reasonable out-of-pocket costs and expenses (including
reasonable legal fees and disbursements of external counsel) incurred by such Member in connection with the negotiation of this
Agreement and the other Transaction Documents.

 

(b)
The Company covenants and agrees to reimburse the Preferred Member, within ten (10) Business Days following receipt of written
notice from the Preferred Member, for all reasonable out-of-pocket expenses incurred by the Preferred Member in connection with
enforcing any obligations of or collecting any payments due from the Company under this Agreement.

    	27

    	

    

ARTICLE 6

 

CAPITAL CONTRIBUTIONS,

LOANS AND LIABILITIES

 

6.1
Capital Contributions of the Common Member. On the Effective Date, the Common Member funded the amount of $100 as
a capital contribution to the Company and owns 100% of the Common Member Interest of the Company. The Common Member shall be entitled,
but shall not be obligated, to from time to time fund additional capital contributions to the Company for any purpose, and any
such capital contributions made by the Common Member shall be made in exchange for additional Common Member Interest.

 

6.2
Capital Contributions of the Preferred Member.

 

(a)
The Preferred Member hereby commits to fund up to $100,000,000 (the “Commitment”) of capital contributions
to the Company pursuant to the terms of this Section 6.2. All capital contributions made by the Preferred Member pursuant
to this Section 6.2 (the “Preferred Capital Contributions”) shall be made in exchange for additional
Preferred Member Interest.

 

(b)
Subject to the terms and conditions set forth in this Section 6.2, the Manager, on behalf of the Company, shall be
entitled to request the Preferred Member to fund, and the Preferred Member shall fund, Preferred Capital Contributions to the Company
in the manner set forth in Section 6.2(e), in the amount of up to $80,000,000 in the aggregate commencing on the date of
this Agreement, and of up to the entire $100,000,000 commencing on July 1, 2013, until the Outside Redemption Date. If any Preferred
Capital Contributions are funded, then such funding shall permanently reduce the amount of the Preferred Member’s Commitment,
even if such Preferred Capital Contributions are subsequently returned to the Preferred Member. The Commitment shall not be reduced
in the event the Deferred Pay Preferred Return is capitalized into Unrecovered Capital.

 

(c)
Subject to the satisfaction or waiver by the Preferred Member of the conditions set forth in clauses (2) through (5) of
Section 6.2(d), the Preferred Member shall fund $80,000,000 of Preferred Capital Contributions to the Company on June 6,
2013 (the “Initial Capital Contribution”). The Members acknowledge and agree that, simultaneously with the funding
of the Initial Capital Contribution to the Company pursuant to this Section 6.2(c), the Option Agreements shall be assigned
to the Company and the Company shall immediately reimburse the assignor of the Option Agreements for any purchase deposits funded
by the assignor or its Affiliates with respect to such Option Agreements all as contemplated by the Assignment Agreement.

 

(d)
The obligation of the Preferred Member to fund Preferred Capital Contributions (other than Preferred Capital Contributions
to be funded by the Preferred Member pursuant to Section 6.2(c) above) shall be subject to the satisfaction or waiver by
the Preferred Member of each of the following conditions:

 

(1)
the Manager shall have delivered (except for the Initial Capital Contribution) written notice (each, a “Funding
Notice”) to the Preferred Member setting forth the amount of the Preferred Capital Contributions being requested, the
date on

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which such Preferred Capital
Contributions must be funded which date must be no less than five (5) Business Days following the date of such notice) and the
proposed use of proceeds for such Preferred Capital Contributions;

 

(2)
no Event of Default shall have occurred and be continuing as of the date of the Funding Notice or the date on which the
Preferred Capital Contributions are due;

 

(3)
each of the representations and warranties of the Common Member in this Agreement and the other Transaction Documents shall
be true, complete and correct in all material respects as of the date of the Funding Notice and the date on which the Preferred
Capital Contributions are due;

 

(4)
the Common Member shall have delivered to the Preferred Member a certificate of one of the Common Member’s officers,
certifying on behalf of the Common Member that the conditions set forth in clauses (2) and (3) of this Section 6.2(d) have
been satisfied as of the date of such certificate.

 

(e)
Following the satisfaction or waiver by the Preferred Member of the conditions set forth in Section 6.2(c) or Section
6.2(d), as applicable, the Preferred Member shall deliver to the Company, by wire transfer of immediately available funds,
an amount equal to the requested Preferred Capital Contributions on the date on which the requested Preferred Capital Contributions
are due.

 

(f)
The Manager, on behalf of the Company, shall have the right at any time to terminate the Commitment of the Preferred Member
by delivering written notice thereof to the Preferred Member.

 

(g)
Upon the occurrence and during the continuance of an Event of Default, the Preferred Member shall have the right (but not
the obligation) to:

 

(1)
terminate its Commitment, by delivering written notice thereof to the Common Member;

 

(2)
exercise its rights under the Guaranty and the Pledge and Security Agreement, including the right to foreclose on the Common
Member Interest pledged to the Preferred Member pursuant to the terms thereof; and/or

 

(3)
accelerate the Outside Redemption Date by delivering written notice thereof to the Common Member.

 

(h)
If any Event of Default shall occur and be continuing, the Preferred Member may elect to proceed to protect and enforce
its rights under this Agreement and the other Transaction Documents by exercising such remedies as are available to the Preferred
Member under applicable law, either by suit in equity or by action at law, or both, whether for specific performance of any covenant
or other agreement contained in this Agreement or the other Transaction Documents or in aid of the exercise of any power granted
in this Agreement or the other Transaction Documents. No remedy conferred upon the Preferred Member in this Agreement or the Transaction
Documents is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition
to every other remedy

    	29

    	

    

conferred herein or now or hereafter existing
at law or in equity or by statute or otherwise. At such time that the exercise of such remedies results in the Common Member and
any of its Affiliates owning no membership interest in the Company, the Preferred Member shall have the right to remove the Manager
and appoint a replacement Manager, who shall serve until his or her resignation or earlier removal.

 

6.3
Capital of the Company. Except as expressly provided for in this Agreement, no Member shall be entitled to withdraw
or receive any interest or other return on, or return of, all or any part of its Capital Contribution, or to receive any of the
Company’s Assets (other than cash) in return for its Capital Contribution. No Member shall be entitled to make a Capital
Contribution to the Company except as expressly authorized or required by this Agreement.

 

6.4
Negative Pledge. The Company shall not grant, incur, or permit to exist any mortgage or security interest in the
oil and gas rights to be acquired by the Company or any of its Subsidiaries with the proceeds of the Preferred Capital Contributions,
other than Permitted Liens. The Company agrees that the Preferred Member may file a notice of such restrictions of record in the
form agreed to by the Members in writing on the Effective Date at any time after any assignment or other conveyance of such oil
and gas rights in favor of the Company is recorded in the appropriate county and state.

 

ARTICLE 7

 

CAPITAL ACCOUNTS,
PROFITS

AND LOSSES AND ALLOCATIONS

 

7.1 Capital
Accounts.

 

(a)
The Company shall maintain a Capital Account for each Member in accordance with federal income tax accounting principles.
Each Member’s Capital Account as of the Effective Date will be equal to its Capital Contribution pursuant to Article 6.
Notwithstanding the foregoing, the Preferred Member shall not be treated as a partner in a partnership for federal, state or local
income tax purposes, and shall not have a capital account in the Company with respect to the Preferred Member Interest.

 

(b)
The Capital Account of each Member shall be increased by the amount of any cash subsequently contributed to the capital
of the Company by such Member pursuant to Article 6. In all respects, the Member’s Capital Accounts shall be determined
in accordance with the detailed capital accounting rules set forth in Treasury Regulations Section 1.704–1(b)(2)(iv) and
shall be adjusted upon the occurrence of certain events as provided in Treasury Regulations Section 1.704–1(b)(2)(iv)(f).

 

(c)
A transferee of all (or a portion) of an Interest shall succeed to the Capital Account (or portion of the Capital Account)
attributable to the transferred Interest.

 

7.2
Profits and Losses.

 

(a)
The profits and losses of the Company (“Profits” and “Losses”) shall be the net income
or net loss (including capital gains and losses), respectively, of the Company determined for each Fiscal Year in accordance with
the accounting method followed for

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federal income tax purposes except that in
computing Profits and Losses, all depreciation and cost recovery deductions shall be deemed equal to Depreciation and gains or
losses shall be determined by reference to Book Value rather than tax basis.

 

(b)
Whenever a proportionate part of the Profits or Losses is allocated to a Member, every item of income, gain, loss, deduction
or credit entering into the computation of such Profits or Losses or arising from the transactions with respect to which such Profits
or Losses were realized shall be credited or charged, as the case may be, to such Member in the same proportion; provided,
however, that “recapture income”, if any, shall be allocated to the Members who were allocated the corresponding
depreciation deductions.

 

(c)
If any Member transfers all or any part of its Interest during any Fiscal Year or its Interest is increased or decreased,
Profits and Losses attributable to such Interest for such Fiscal Year shall be apportioned between the transferor and transferee
or computed as to such Members, as the case may be, ratably on a daily basis, provided in all events that any apportionment
described above shall be permissible under the Code and applicable regulations thereunder.

 

(d)
For all purposes, including federal, state and local income tax purposes, Profits shall be allocated each year among all
the Members in proportion to their Percentage Interests.

 

(e)
For all purposes, including federal, state and local income tax purposes, Losses shall be allocated each year among all
the Members in proportion to their Percentage Interests.

 

(f)
Notwithstanding Sections 7.2(d) and (e) hereof,

 

(1)
For federal income tax purposes but not for purposes of crediting or charging Capital Accounts, depreciation or gain or
loss realized by the Company with respect to any property that was contributed to the Company or that was held by the Company at
a time when the Book Value of the Company’s Assets was adjusted pursuant to the second sentence of Section 7.1(b) shall,
in accordance with Section 704(c) of the Code and Treasury Regulation Section 1.704‐1(b)(2)(iv)(d) and (f), be allocated
among the Members in a manner which takes into account the differences between the adjusted basis for federal income tax purposes
to the Company of its interest in such property and the fair market value of such interest at the time of its contribution or revaluation.

 

(2)
If there is a net decrease in the Minimum Gain of the Company during a taxable year (including any Minimum Gain attributable
to Member-Funded Debt), each Member at the end of such year shall be allocated, prior to any other allocations required under
this Article 7, items of gross income for such year (and, if necessary, for subsequent years) in the amount and proportions
described in Treasury Regulation Sections 1.704-2(g) and 1.704-2(i)(4).

 

(3)
Notwithstanding the allocations provided for in Sections 7.2(d) and (e), no allocation of an item of loss
or deduction shall be made to a Member to the extent such allocation would cause or increase a deficit balance in such Member’s
Capital Account as of the end of the taxable year to which such allocation relates. If any Member receives an adjustment, allocation
or distribution that causes or increases such a deficit balance, taking into account the rules of Treasury Regulation Sections

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1.704-1(b)(2)(ii)(d)(4), (5) and (6),
such Member shall be allocated (after taking into account any allocations made pursuant to Section 7.2(f)(2)) items of income and
gain in an amount and manner to eliminate the Member’s Capital Account deficit attributable to such adjustment, allocation
or distribution as quickly as possible. For purposes of this Section 7.2(f)(3), there shall be excluded from a Member’s deficit
Capital Account balance at the end of a taxable year of the Company (a) such Member’s share, determined in accordance with
Section 704(b) of the Code and Treasury Regulation Section 1.704-2(g) of Minimum Gain (provided that in the case of
Minimum Gain attributable to Member-Funded Debt, such Minimum Gain shall be allocated to the Member or Members to whom such
debt is attributable pursuant to Treasury Regulation Section 1.704-2(i)) and (b) the amount, if any, that such Member is
obligated to restore to the Company under Treasury Regulation Section 1.704-1(b)(2)(ii)(c).

 

(4)
Notwithstanding the allocations provided for in subsection (1) of this Section 7.2(f) and Sections 7.2(d)
and (e), if there is a net increase in Minimum Gain of the Company during a taxable year of the Company that is attributable
to Member-Funded Debt then first Depreciation, to the extent the increase in such Minimum Gain is allocable to depreciable
property, and then a proportionate part of other deductions and expenditures described in Section 705(a)(2)(B) of the Code, shall
be allocated to the lending or guaranteeing Member (and to joint lenders or guarantors in proportion to their relative obligations),
provided that the total amount of deductions so allocated for any year shall not exceed the increase in Minimum Gain attributable
to such Member-Funded Debt in such year.

 

(5)
Any special allocation under Sections 7.2(f)(2) through (4) shall be taken into account in computing subsequent
allocations of Profits and Losses of any item applied to operating expenses and capital expenditures so that the net amount of
any items so allocated and the Profits, Losses and all items thereof allocated to each Member pursuant to this Article 7
shall, to the extent permissible under Sections 704(b) of the Code and the Treasury Regulations promulgated thereunder, be equal
to the net amount that would have been allocated to each Member pursuant to this Article 7 if such special allocation had
not occurred.

 

(g)
Any amounts paid by the Company to the Preferred Member in respect of the Current Pay Preferred Return or the Deferred Pay
Preferred Return shall be treated as the payment of interest on indebtedness for federal income tax purposes and shall be deducted
from allocations of Profits and Losses to all Members.

 

ARTICLE 8

 

APPLICATIONS
AND DISTRIBUTIONS; REDEMPTION

 

8.1 Distributions
of the Preferred Return.

 

(a)
On each Scheduled Distribution Date, the Manager shall cause the Company to distribute to the Preferred Member an amount
equal to any unpaid Current Pay Preferred Return, if any, for any Accrual Periods ending on or prior to such Scheduled Distribution
Date.

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(b)
The Company may elect, in its sole discretion, to make distributions to the Preferred Member of any unpaid Deferred Pay
Preferred Return. To the extent that the Deferred Pay Preferred Return for any Accrual Period is not paid on the following Scheduled
Distribution Date, such unpaid Deferred Pay Preferred Return shall be added to the amount of the Unrecovered Capital; provided
that in no event shall any capitalization of unpaid Deferred Pay Preferred Return reduce the amount of the Preferred Member’s
Commitment hereunder.

 

8.2
Overhead Reimbursement. On each Scheduled Distribution Date, only after the distribution to the Preferred Member
of all unpaid Current Pay Preferred Return pursuant to Section 8.1(a) and so long as no Event of Default has occurred and
is continuing, the Manager shall cause the Company to distribute an amount equal to the Overhead Reimbursement then due to the
Common Member.

 

8.3
Equity Distributions to the Common Member. After payment of any amounts then due and owing by the Company to the
Preferred Member pursuant to this Agreement, the Common Member shall be entitled to all income and profits from the business of
the Company. The Manager may, from time to time, cause the Company to make distributions to the Common Member, provided
that no distributions may be made by the Company to the Common Member pursuant to this Section 8.3 unless and until the
Preferred Member’s Interest in the Company has been redeemed in full and the Preferred Member has received the Redemption
Price. Notwithstanding the foregoing, the Company shall be entitled to make the payments and distributions to its Affiliates that
are contemplated by the Assignment Agreement, it being understood that the distribution to the Common Member contemplated by the
Assignment Agreement shall be treated as a reimbursement of preformation capital expenses pursuant to Treasury Regulations Section
1.707-4(d).

 

8.4
Redemption of Preferred Member’s Interest.

 

(a)
The Company shall redeem the Preferred Member’s Interest in the Company in full on the Outside Redemption Date by
paying to the Preferred Member the Redemption Price.

 

(b)
The Company shall have the right, at any time on or prior to the Outside Redemption Date, to redeem the Preferred Member’s
Interest in full (but not in part) by paying to the Preferred Member the Redemption Price (as calculated immediately prior to such
payment), provided that the Company shall have given at least five (5) Business Days prior written notice of such payment and redemption
in full. Upon any such redemption in full pursuant to this Section 8.4(b), the obligation of the Preferred Member to fund
the Commitment shall be terminated.

 

(c)
The Company shall have the right, at any time prior to the Outside Redemption Date, to return to the Preferred Member part
of its Unrecovered Capital, provided that (i) the Company shall have given at least five (5) Business Days prior written
notice of such payment and redemption in full and (ii) such repayment is accompanied by payment to the Preferred Member of all
accrued and unpaid Current Pay Preferred Return and Deferred Pay Preferred Return on the portion of the Unrecovered Capital being
returned.

 

(d)
Upon redemption of the Preferred Member’s Interest in full pursuant to the terms of this Agreement, such Member’s
Interest shall be deemed redeemed and no longer

    	33

    	

    

outstanding for all purposes hereunder and
the Preferred Member shall no longer be a Member of the Company and shall be deemed to have withdrawn from the Company. If the
Preferred Member’s Interest is redeemed in accordance with this Agreement, the Preferred Member shall deliver written confirmation
of such redemption promptly following the request of the Company or the Common Member.

 

8.5
Extension of Outside Redemption Date. Provided that no Event of Default exists as of the Initial Outside Redemption
Date, the Common Member shall have the right, at its option, to extend the Outside Redemption Date to June 1, 2015 (the “Extended
Outside Redemption Date”) by giving notice of the exercise of such option to the Preferred Member at least ten (10) Business
Days prior to the Initial Outside Redemption Date.

 

ARTICLE 9

 

TRANSFER OF
COMPANY INTERESTS

 

9.1
Restrictions on Transfers.

 

(a)
Except as expressly permitted in Section 9.1(b) below, neither Member may Transfer, or permit the Transfer of all
or any of its Interest to any Person and no Person owning any direct or indirect legal, beneficial or other interest in any Member
may Transfer, or permit the Transfer, of such interest, in each case without the other Member’s prior written consent.

 

(b)
The following Transfers shall be permitted (any such permitted transfers, “Permitted Transfers”):

 

(1)
Transfers of direct or indirect interests in the Common Member so long as the Common Member continues to be more than fifty
percent (50%) owned and Controlled, directly or indirectly, by one or more Permitted Common Member Owners;

 

(2)
Transfers of direct or indirect interests in the Preferred Member so long as the Preferred Member continues to be owned
and Controlled, directly or indirectly, by [                        
] and [                       ], remains liable to fund any unfunded portion of the Preferred
Member’s Commitment; and/or

 

(3) Transfers by the Preferred Member
of all or any portion of its Preferred Member Interest to Affiliates of APPLE Ten Ventures Services, Inc., so long as APPLE Ten
Ventures Services, Inc., remains liable to fund any unfunded portion of the Preferred Member’s Commitment.

 

9.2
Assignment Binding on Company. No Transfer of all or any part of the Interest of a Member otherwise permitted to
be made under this Agreement shall be binding upon the Company unless and until a duplicate original of the assignment agreement
or other instrument of transfer, duly executed and acknowledged by the assignor or transferor, has been delivered to the Company,
and such instrument evidences (i) the written acceptance by the assignee of all of the terms and provisions of this Agreement and
agreement to be bound as a Member hereunder, subject to compliance with this Article 9, (ii) the assignee’s confirmation
of the accuracy of each of the representations and warranties set forth in Sections 2.8, 2.9 and 2.10, as
applicable, and the

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assignee’s representation that such Transfer was made in accordance with all applicable
laws and regulations and (iii) the consent to the Transfer of the Interest required pursuant to Section 9.1, if any.

 

9.3
Substituted Members.

 

(a)
Any Member that Transfer all of its Interests pursuant to an assignment or assignments permitted under this Agreement shall
cease to be a Member of the Company except that unless and until a Substituted Member is admitted in its stead, the assigning Member
shall not cease to be a Member of the Company under the Act and shall retain the rights and powers of a member under the Act and
hereunder, provided that such assigning Member may, prior to the admission of a Substituted Member, Transfer its economic
interest in its Interest, to the extent otherwise permitted under this Article 9. Any Person who is an assignee of any portion
of the Interest of a Member pursuant to a Transfer satisfying the requirements of this Article 9 shall become a Substituted
Member only when (i) the Manager has entered such assignee as a Member on the books and records of the Company, which the Manager
is hereby directed to do upon satisfaction of such requirements, and (ii) such assignee has paid all of the Company’s reasonable
legal fees and filing costs in connection with the substitution as a member.

 

(b)
Any Person who is an assignee of any of the Interest of a Member pursuant to a Transfer satisfying the requirements of this
Article 9 but who does not become a Substituted Member and desires to make a further Transfer of any such Interest, shall
be subject to all the provisions of this Article 9 to the same extent and in the same manner as any Member desiring to make
a Transfer of its Interest.

 

9.4
Acceptance of Prior Acts. Any person who becomes a Member, by becoming a Member, accepts, ratifies and agrees to
be bound by all actions duly taken pursuant to the terms and provisions of this Agreement by the Company or any of its members
prior to the date such Person became a Member and, without limiting the generality of the foregoing, specifically ratifies and
approves all agreements and other instruments as may have been executed and delivered on behalf of the Company prior to said date
and which are in force and effect on said date.

 

9.5
Additional Limitations. Notwithstanding anything contained in this Agreement, no Transfer shall be made unless (i)
registration is not required under the Securities Act of 1933, as amended, in respect of such Transfer; (ii) such Transfer does
not violate any applicable federal or state securities or comparable laws; and (iii) such Transfer will not cause the Company to
be treated as a “publicly‐traded partnership” within the meaning of Section 7704 of the Code.

 

ARTICLE 10

 

DISSOLUTION
OF THE COMPANY;

WINDING UP
AND DISTRIBUTION OF ASSETS

 

10.1
Dissolution.

 

(a)
The Company shall be dissolved and its affairs shall be wound up only upon the first to occur of the following:

    	35

    	

    

(1)
the mutual written consent of the Common Member and the Preferred Member;

 

(2)
the entry of a decree of judicial dissolution under Section 18-802 of the Act; or

 

(3)
the termination of the legal existence of the last remaining Member of the Company or the occurrence of any other event
which terminates the continued membership of the last remaining Member in the Company unless the business of the Company is continued
in a manner permitted by this Agreement or the Act. Upon the occurrence of any event that causes the last remaining Member of the
Company to cease to be a Member of the Company, to the fullest extent permitted by law, the personal representative of such Member
is hereby authorized and directed to, and shall, within ninety (90) days after the occurrence of the event that terminated the
continued membership of such Member in the Company, agree in writing (i) to continue the Company and (ii) to the admission of the
personal representative or its nominee or designee, as the case may be, as a substitute Member of the Company, effective as of
the occurrence of the event that terminated the continued membership of the last remaining Member.

 

(b)
No Member shall have the right to (i) withdraw or resign as a Member of the Company, (ii) except as provided in Article
8, redeem or otherwise require redemption of its limited liability company interest in the Company or any part thereof or (iii)
to the fullest extent permitted by law, dissolve itself voluntarily.

 

(c)
Notwithstanding any other provision of this Agreement, the Bankruptcy of any of the Members shall not cause the Member to
cease to be a Member of the Company and upon the occurrence of such an event, the business of the Company shall continue without
dissolution.

 

(d)
Notwithstanding any other provision of this Agreement, each Member waives any right it might have to agree in writing to
dissolve the Company upon the Bankruptcy of any of the Members, or the occurrence of an event that causes any of the Members to
cease to be a Member of the Company.

 

10.2
Winding Up.

 

(a)
In the event of the dissolution of the Company pursuant to Section 10.1(a), the Manager may wind up the Company’s
affairs.

 

(b)
Upon dissolution of the Company and until the filing of a certificate of cancellation as provided in the Act, the Manager,
or a liquidating trustee, as the case may be, may, in the name of, and for and on behalf of, the Company, prosecute and defend
suits, whether civil, criminal or administrative, gradually settle and close the Company’s business, dispose of and convey
the Company’s property, discharge or make reasonable provision for the Company’s liabilities, and distribute to the
Members in accordance with Section 10.3 any remaining Assets of the Company, all without affecting the liability of the
Members and without imposing liability on any liquidating trustee.

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(c)
Upon the completion of winding up of the Company, the Manager, or a liquidating trustee, as the case may be, shall file
a certificate of cancellation in the Office of the Secretary of State of the State of Delaware as provided in the Act and any other
similar certificates of cancellation or termination required to discontinue its status as a legal entity or its authorization to
do business in Delaware or any other relevant jurisdiction. The existence of the Company as a separate legal entity shall continue
until the Secretary of State of the State of Delaware’s acceptance of the certificate of cancellation.

 

10.3
Distribution of Assets. Upon the winding up of the Company, the Company’s Assets shall be distributed in the
following order of priority:

 

(a)
first, to payment of creditors in satisfaction of liabilities of the Company;

 

(b)
second, to establish any reserves that the Manager deems reasonably necessary for contingent or unforeseen obligations
of the Company, such reserves to be held until the expiration of such period as the Manager deems advisable;

 

(c)
third, to the Preferred Member, who shall be entitled to receive a return of its Unrecovered Capital plus all accrued
but unpaid Current Pay Preferred Return and Deferred Pay Preferred Return thereon; and

 

(d)
fourth, to the Common Member.

 

ARTICLE 11

AMENDMENTS

 

11.1 Amendments.
Any amendment or supplement to this Agreement implemented solely to recognize substitution of any Member expressly permitted hereunder
or an assignment of any Interest made in full compliance with Article 9 may be made by the Common Member without the consent
or approval of any other Member. Any amendment or supplement to this Agreement implemented solely to (i) issue additional equity
interests in the Company in full compliance with Section 3.2(d), or (ii) elect a new manager in accordance with Section
3.1(b), may, in either such case, be made by the Common Member without the consent or approval of any other Member. In all
other cases, this Agreement may only be amended, supplemented or otherwise modified with the prior written consent of the Common
Member and the Preferred Member.

 

11.2
Additional Members. In addition to the requirements of Section 11.1, if this Agreement shall be amended for
the purpose of adding or substituting any Member, the amendment shall be signed by the Person to be added or substituted and by
the assigning Member, if any. In making any amendments, the Manager shall prepare and file for recordation such documents and certificates
as shall be required to be prepared and filed.

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ARTICLE
12

 

MISCELLANEOUS

 

12.1
Further Assurances. Each party to this Agreement agrees to execute, acknowledge, deliver, file and record such further
certificates, amendments, instruments and documents, and to do all such other acts and things, as may be required by law or as,
in the reasonable judgment of the Preferred Member or the Common Member may be necessary or advisable to carry out the intent and
purpose of this Agreement.

 

12.2
Notices. Unless otherwise specified in this Agreement, all notices, demands, elections, requests or other communications
that any party to this Agreement may desire or be required to give hereunder shall be in writing and shall be given by hand by
depositing the same in the United States mail, first class postage prepaid, certified mail, return receipt requested, or by a recognized
overnight courier service providing confirmation of delivery, to the addresses set forth in Section 2.6, or at such other
address as may be designated by the addressee thereof (which in the case of the Company, shall be designated by the Manager) upon
written notice to all of the Members. All notices given pursuant to this Section 12.2 shall be deemed to have been given
(i) if delivered by hand on the date of delivery or on the date delivery was refused by the addressee or (ii) if delivered by United
States mail or by overnight courier, on the date of delivery as established by the return receipt or courier service confirmation
(or the date on which the return receipt or courier service confirms that acceptance of delivery was refused by the addressee).

 

12.3
Exculpation. Subject to the qualifications below, the Preferred Member shall not enforce any liability or obligation
of the Common Member or the Company under this Agreement or the other Transaction Documents against any direct or indirect owner,
employee or officer of the Common Member. The provisions of this Section shall not, however, (a) constitute a waiver, release or
impairment of any obligation evidenced or secured by any of the Transaction Documents; (b) affect the validity or enforceability
of the Guaranty or the Pledge and Security Agreement or any of the rights and remedies of the Preferred Member against the Company
or the Common Member under this Agreement or the other Transaction Documents; (c) constitute a prohibition against the Preferred
Member pursuing its rights and remedies against the Company or the Common Member, as the case may be; or (d) constitute a waiver
of the right of the Preferred Member to enforce the liability and obligation of the Company, by money judgment or otherwise.

 

12.4
Headings and Captions. All headings and captions contained in this Agreement and in the table of contents hereto
are inserted for convenience only and shall not be deemed a part of this Agreement.

 

12.5 Variance of Pronouns.
All pronouns and all variations thereof shall be deemed to refer to the masculine, feminine or neuter, singular or plural, as
the identity of the Person may require.

 

12.6 Counterparts.
THIS AGREEMENT MAY BE EXECUTED IN TWO OR MORE COUNTERPARTS, EACH OF WHICH SHALL CONSTITUTE AN ORIGINAL AND ALL OF WHICH, WHEN
TAKEN TOGETHER, SHALL CONSTITUTE ONE AGREEMENT.

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12.7
Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

12.8
Consent to Jurisdiction. To the fullest extent permitted by law, each party hereto hereby irrevocably consents and
agrees, for the benefit of each party, that any legal action, suit or proceeding against it with respect to its obligations, liabilities
or any other matter under or arising out of or in connection with this Agreement and with respect to the enforcement, modification,
vacation or correction of an award rendered in an arbitration proceeding shall be brought in any city, state or federal court located
in the Venue State (a “Venue Court”), and hereby irrevocably accepts and submits to the exclusive jurisdiction
of each such Venue Court with respect to any such action, suit or proceeding. Each party hereto also hereby irrevocably consents
and agrees, for the benefit of each other party, that any legal action, suit or proceeding against it shall be brought in any Venue
Court, and hereby irrevocably accepts and submits to the exclusive jurisdiction of each such Venue Court with respect to any such
action, suit or proceeding. Each party hereto waives any objection which it may now or hereafter have to the laying of venue of
any of the aforesaid actions, suits or proceedings brought in any such Venue Court and hereby further waives and agrees not to
plead or claim in any such Venue Court that any such action, suit or proceeding brought therein has been brought in an inconvenient
forum. Each party agrees that (i) to the fullest extent permitted by law, service of process may be effectuated hereinafter by
mailing a copy of the summons and complaint or other pleading by certified mail, return receipt requested, at its address set forth
above and (ii) all notices that are required to be given hereunder may be given by the attorneys for the respective parties.

 

12.9
Partition. The Members hereby agree that no Member nor any successor‐in‐interest to any Member shall
have the right to have the property of the Company partitioned, or to file a complaint or institute any proceeding at law or in
equity to have the property of the Company partitioned, and each Member, on behalf of himself, his successors, representatives,
heirs and assigns, hereby waives any such right.

 

12.10
Invalidity. Every provision of this Agreement is intended to be severable. The invalidity and unenforceability of
any particular provision of this Agreement in any jurisdiction shall not affect the other provisions hereof, and this Agreement
shall be construed in all respects as if such invalid or unenforceable provision were omitted.

 

12.11
Successors and Assigns. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, executors, administrators, legal representatives, heirs and legal
assigns. No Person other than the parties hereto and their respective successors, executors, administrators, legal representatives,
heirs and permitted assigns shall have any rights or claims under this Agreement.

 

12.12
Entire Agreement. This Agreement supersedes all prior agreements among the parties with respect to the subject matter
hereof and together with the other Transaction Documents contains the entire Agreement among the parties with respect to such subject
matter.

 

12.13
Waivers. No waiver of any provision hereof by any party hereto shall be deemed a waiver by any other party nor shall
any such waiver by any party be deemed a continuing waiver of any matter by such party.

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12.14
Confidentiality.

 

(a) The
Preferred Member (i) agrees not to make any such public disclosures or statements to the press and (ii) agrees not to disclose
or permit the disclosure of any of the terms of this Agreement or of any other confidential, non‐public or proprietary information
relating to the Company or any of its Subsidiaries (collectively, “Confidential Information”), provided that
such disclosure described in clauses (i) and (ii) may be made by the Preferred Member (w) to its Affiliates and its and its Affiliates’
respective members, partners, officers, directors, employees, agents, advisors (including consultants, accountants, attorneys and
financial advisors), representatives, potential capital sources, potential lenders, and potential co-investors (and their representatives)
(collectively, the “Related Parties”) who need to know such information for the purpose of evaluating the transactions
described herein or who otherwise need to know such information (it being understood and agreed that such disclosing party will
advise such persons of their obligations concerning the confidentiality of all client affairs and information and shall instruct
such persons to maintain the confidentiality of such Confidential Information in accordance with the terms of this agreement as
applicable to Related Parties), (x) subject to the next paragraph, as requested or required pursuant to a subpoena, civil investigative
demand (or similar process), order, statute, rule or other legal or similar requirement promulgated or imposed by a court or by
a judicial, regulatory, self-regulatory (including stock exchange) or legislative body, organization, commission, agency or committee
or otherwise in connection with any judicial or administrative action or proceeding or to a regulatory authority (whether in a
report or pursuant to audit, examination, interrogatories or requests for information or documents or routine supervisory oversight),
(y) in connection with the Preferred Member’s reporting obligations under the Securities Exchange Act of 1934, as amended,
and the rules and regulations thereunder or (z) with the prior consent of the Common Member. For the purposes of this Agreement,
“Confidential Information” shall not include information which is or becomes generally known to the public through
no act or omission of a Member in violation of this Agreement.

 

(b) In
the event the Preferred Member shall receive a request to disclose any Confidential Information under a subpoena or order, the
Preferred Member shall (i) promptly notify the Common Member thereof, (ii) consult with the Common Member on the advisability of
taking steps to resist or narrow such request and (iii) if disclosure is required or deemed advisable, cooperate with the Common
Member in any attempt it may make to obtain an order or other assurance that confidential treatment will be accorded the Confidential
Information that is disclosed.

 

(c) Notwithstanding
anything in the foregoing or anything else contained in this Agreement or related documents to the contrary, a Member may disclose
to any and all persons, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of any transaction contemplated
herein and all materials of any kind (including opinions or other tax analyses) that are provided to the Member relating to such
U.S. tax treatment and U.S. tax structure.

 

12.15
No Third Party Beneficiaries. Except as provided in Section 4.2, this Agreement is not intended and shall
not be construed as granting any rights, benefits or privileges to any Person not a party to this Agreement. Without limiting the
generality of the foregoing, no creditor of the Company shall have any right whatsoever to require any Member to contribute capital
to the Company.

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12.16
Construction of Documents. The parties hereto acknowledge that they were represented by separate and independent
counsel in connection with the review, negotiation and drafting of this Agreement and that this Agreement shall not be subject
to the principle of construing its meaning against the party that drafted same.

 

[Signature Page Follows]

    	41

    	

    

SIGNATURE PAGE TO

LIMITED LIABILITY COMPANY
AGREEMENT

 

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

 

	 	 COMMON MEMBER:
	 	 	 
	 	EASTERN COLORADO HOLDINGS, LLC, a
	 	Delaware limited liability company
	 	 	 
	 	By:	/s/ Bob Kelly
	 		Name: Bob Kelly
	 		Title: Authorized Agent

    	 

    	

    

SIGNATURE PAGE TO

LIMITED LIABILITY COMPANY
AGREEMENT

 

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

 

	 	PREFERRED MEMBER:
	 	 	 
	 	APPLE TEN VENTURES SERVICES, INC., a Virginia corporation
	 	 	 
	 	By:	/s/ David Buckley
	 	 	Name: David Buckley
	 	 	Title: Vice President

    	 

    	

    

EXHIBIT A

 

Common Member Interest
Certificate

    	 

    	

    

CERTIFICATE
for COMMON MEMBER INTEREST

IN CRIPPLE CREEK ENERGY, LLC

 

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933 OR UNDER THE SECURITIES OR BLUE SKY LAWS
OF ANY STATE. THE HOLDER OF THIS CERTIFICATE, BY ITS ACCEPTANCE HEREOF, REPRESENTS THAT IT IS ACQUIRING THIS SECURITY FOR INVESTMENT
AND NOT WITH A VIEW TO ANY SALE OR DISTRIBUTION HEREOF. ANY TRANSFER OF THIS CERTIFICATE OR ANY LIMITED LIABILITY COMPANY INTEREST
REPRESENTED HEREBY IS SUBJECT TO THE TERMS AND CONDITIONS OF THE LIMITED LIABILITY COMPANY AGREEMENT (AS DEFINED BELOW).

 

	Certificate Number 001	Common Member Interest
	 	100% Percentage Interest

 

CRIPPLE CREEK ENERGY, LLC, a Delaware limited
liability company (the “Company”), hereby certifies that Eastern Colorado Holdings, LLC, a Delaware limited liability
company (together with any assignee of this Certificate, the “Holder”), is the registered owner of 100 percent of the
Common Member Interest and 100 percent of the Percentage Interests in the Company. The rights, powers, preferences, restrictions
and limitations of the limited liability company interests in the Company are set forth in, and this Certificate and the limited
liability company interests in the Company represented hereby are issued and shall in all respects be subject to the terms and
provisions of, the Limited Liability Company Agreement of the Company dated as of June 6, 2013, as the same may be further amended
or restated from time to time (the “Limited Liability Company Agreement”). By acceptance of this Certificate, and as
a condition to being entitled to any rights and/or benefits with respect to the limited liability company interests evidenced hereby,
the Holder is deemed to have agreed to comply with and be bound by all the terms and conditions of the Limited Liability Company
Agreement. The Company will furnish a copy of the Limited Liability Company Agreement to the Holder without charge upon written
request to the Company at its principal place of business. Transfer of any or all of the limited liability company interests in
the Company evidenced by this Certificate is subject to certain restrictions in the Limited Liability Company Agreement and can
be effected only after compliance with all of those restrictions and the presentation to the Company of the Certificate, accompanied
by an assignment in the form appearing on the reverse side of this Certificate, duly completed and executed by and on behalf of
the transferor in such Transfer, and an application for transfer in the form appearing on the reverse side of this Certificate,
duly completed and executed by and on behalf of the transferee in such Transfer.

 

Each limited liability company interest in
the Company shall constitute a “security” within the meaning of (i) Section 8-102(a)(15) of the Uniform Commercial
Code as in effect from time to time in the State of Delaware and (ii) the Uniform Commercial Code of any other applicable jurisdiction
that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and
the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995
(and each limited liability company interest in the Company shall be treated as such a “security” for all purposes,
including, without limitation perfection of the security interest therein under Article 8 of each applicable Uniform Commercial
Code).

 

This Certificate and the limited liability
company interests evidenced hereby shall be governed by and construed in accordance with the laws of the State of Delaware without
regard to principles of conflicts of laws.

 

IN WITNESS WHEREOF, the Company has caused
this Certificate to be executed as of the date set forth below.

 

	 	CRIPPLE CREEK ENERGY, LLC
	 	 	 
	 	By:	/s/ Bob Kelly
	 		 Name: Bob Kelly
	 		Title: Authorized Agent
	Dated:  June 6, 2013	 	 

			

 

    	 

    	

    

(REVERSE
SIDE OF CERTIFICATE)

 

ASSIGNMENT OF INTEREST

 

FOR VALUE RECEIVED, the undersigned hereby
sells, assigns and transfers unto _______________________ (print or typewrite name of transferee), __________________
(insert Social Security or other taxpayer identification number of transferee), the following specified percentage of limited liability
company interests in the Company: ______________ (identify the percentage interest being transferred) effective as of the date
specified in the Application for Transfer of Interests below, and irrevocably constitutes and appoints __________________________
and its authorized officers, as attorney-in-fact, to transfer the same on the books and records of the Company, with full power
of substitution in the premises.

 

	 	By:	_____________________
	 		Name:
	 		Title:
	 	 	 
	Dated:  __________________	 	 
	 	 	 
	Address: _________________	 	 

 

APPLICATION FOR TRANSFER OF INTERESTS

 

The undersigned applicant (the “Applicant”)
hereby (a) applies for a transfer of the percentage of limited liability company interests in the Company described above (the
“Transfer”) and applies to be admitted to the Company as a substitute member of the Company, (b) agrees to comply with
and be bound by all of the terms and provisions of the Limited Liability Company Agreement, (c) represents that the Transfer complies
with the terms and conditions of the Limited Liability Company Agreement, (d) represents that the Transfer does not violate any
applicable laws and regulations, and (e) agrees to execute and acknowledge such instruments (including, without limitation, a counterpart
of the Limited Liability Company Agreement), in form and substance satisfactory to the Company, as the Company reasonably deems
necessary or desirable to effect the Applicant’s admission to the Company as a substitute member of the Company and to confirm
the agreement of the Applicant to be bound by all the terms and provisions of the Limited Liability Company Agreement with respect
to the limited liability company interests in the Company described above. Initially capitalized terms used herein and not otherwise
defined herein are used as defined in the Limited Liability Company Agreement.

 

The Applicant directs that the foregoing
Transfer and the Applicant’s admission to the Company as a Substitute Member shall be effective as of ______________________________.

 

	Name of Transferee (Print)	 	 	 	
	________________________________________	 	 	 	 
	Dated: __________________________	 	Signature:	 	                                                                            
		 	 	 	(Transferee)
		 	Address:

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