Document:

PURCHASE CONTRACT BETWEEN INTEREST OWNERS, SUNBELT-TALLAHASSEE AND APPLE SEVEN

 Exhibit 10.52 
 Hotel: Tallahassee, FL (FI) 
 PURCHASE CONTRACT 
 between 
 Larry Blumberg

 Watson & Downs Investments, L.L.C., 
 Robert Hayne Hollis, III 
 Richard Blumberg 
 Barry Kraselsky 
 Helen B. Lifland

 (“INTEREST OWNERS”), 
 SUNBELT – TALLAHASSEE, L.L.C. 
 (“COMPANY”), 
 AND 
 APPLE SEVEN HOSPITALITY
OWNERSHIP, INC. 
 (“BUYER”) 
 Dated: January 16, 2007 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.
	 ARTICLE I
	  	DEFINED TERMS	  	S-1
			
	 1.1
	  	 Definitions
	  	S-1
			
	 ARTICLE II
	  	PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; EARNEST MONEY DEPOSIT	  	10
			
	 2.1
	  	 Purchase and Sale
	  	10
	 2.2
	  	 Purchase Price
	  	10
	 2.3
	  	 Allocation
	  	10
	 2.4
	  	 Payment
	  	10
	 2.5
	  	 Escrow Amount and Use of Escrow Account
	  	10
	 2.6
	  	 Earnest Money Deposit
	  	11
			
	 ARTICLE III
	  	Review Period	  	11
			
	 3.1
	  	 Review Period
	  	11
	 3.2
	  	 Due Diligence Examination
	  	13
	 3.3
	  	 Restoration and Indemnity
	  	13
	 3.4
	  	 Exhibits
	  	14
			
	 ARTICLE IV
	  	SURVEY AND TITLE APPROVAL	  	14
			
	 4.1
	  	 Survey
	  	14
	 4.2
	  	 Title
	  	14
	 4.3
	  	 Survey or Title Objections
	  	15
			
	 ARTICLE V
	  	MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT	  	15
			
	 ARTICLE VI
	  	BROKERS	  	16
			
	 ARTICLE VII
	  	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	16
			
	 7.1
	  	 Representations, Warranties and Covenants of Interest Owners
	  	16
	 7.2
	  	 Representations, warranties and covenants of Buyer
	  	27
	 7.3
	  	 Survival
	  	28
			
	 ARTICLE VIII
	  	ADDITIONAL COVENANTS	  	28
			
	 8.1
	  	 Subsequent Developments
	  	28
	 8.2
	  	 Operations
	  	28
	 8.3
	  	 Third Party Consents
	  	30
	 8.4
	  	 Employees
	  	30

  

 i 

					
	 8.5
	  	 Estoppel Certificates
	  	30
	 8.6
	  	 Access to Financial Information
	  	31
	 8.7
	  	 Bulk Sales
	  	31
	 8.8
	  	 Indemnification
	  	31
	 8.9
	  	 Limitations on Liability of Interest Owners
	  	34
	 8.10
	  	 Contingent Claims for Reserves
	  	34
	 8.11
	  	 Tax Matters
	  	35
			
	 ARTICLE IX
	  	CONDITIONS FOR CLOSING	  	35
			
	 9.1
	  	 Buyer’s Conditions for Closing
	  	35
	 9.2
	  	 Interest Owner’s Conditions for Closing
	  	36
			
	 ARTICLE X
	  	CLOSING AND CONVEYANCE	  	37
			
	 10.1
	  	 Closing
	  	37
	 10.2
	  	 Interest Owners’ Deliveries
	  	37
	 10.3
	  	 Buyer’s Deliveries
	  	38
	 10.4
	  	 Tax Matters
	  	38
			
	 ARTICLE XI
	  	COSTS	  	40
			
	 11.1
	  	 Interest Owner’s Costs
	  	40
	 11.2
	  	 Buyer’s Costs
	  	40
			
	 ARTICLE XII
	  	ADJUSTMENTS	  	41
			
	 12.1
	  	 Adjustments
	  	41
	 12.2
	  	 Reconciliation and Final Payment
	  	42
	 12.3
	  	 Employees
	  	43
			
	 ARTICLE XIII
	  	CASUALTY AND CONDEMNATION	  	43
			
	 13.1
	  	 Risk of Loss; Notice
	  	43
	 13.2
	  	 Buyer’s Termination Right
	  	43
	 13.3
	  	 Procedure for Closing
	  	44
			
	 ARTICLE XIV
	  	DEFAULT REMEDIES	  	44
			
	 14.1
	  	 Buyer Default
	  	44
	 14.2
	  	 Interest Owner/Company Default
	  	44
	 14.3
	  	 Attorney’s Fees
	  	44
			
	 ARTICLE XV
	  	NOTICES	  	45
			
	 ARTICLE XVI
	  	MISCELLANEOUS	  	46
			
	 16.1
	  	 Performance
	  	46

  

 ii 

					
	 16.2
	  	 Binding Effect; Assignment
	  	46
	 16.3
	  	 Entire Agreement
	  	46
	 16.4
	  	 Governing Law
	  	46
	 16.5
	  	 Captions
	  	46
	 16.6
	  	 Confidentiality
	  	46
	 16.7
	  	 Closing Documents
	  	46
	 16.8
	  	 Counterparts
	  	47
	 16.9
	  	 Severability
	  	47
	 16.10
	  	 Interpretation
	  	47
	 16.11
	  	 Intentionally Omitted
	  	47
	 16.12
	  	 Further Acts
	  	47
	 16.13
	  	 Joint and Several Obligations
	  	47
			
	 ARTICLE XVII
	  	SUPPLEMENTAL PROVISIONS	  	47

 SCHEDULES: 
  

			
	 Schedule 1
	  	Hotel Specific Data
	 Schedule 2
	  	Supplemental Provisions
	 Schedule 2.5
	  	PIP Improvements
	 Schedule 7.1(j)
	  	Litigation
	 Schedule 7.1(l)
	  	Condemnation Proceedings
	 Schedule 7.1(m)
	  	Leases
	 Schedule 7.1(n)
	  	Trade Marks and Trade Names
	 Schedule 7.1(p)(iv)
	  	Tax Returns
	 Schedule 7.1(q)
	  	Insurance
	 Schedule 7.1(r)
	  	Agreements

 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
	  	(Intentionally Omitted)
	 Exhibit H
	  	(Intentionally Omitted)
	 Exhibit I
	  	New Management Agreement
	 Exhibit J
	  	Allocation of Purchase Price

  

 iii 

 PURCHASE CONTRACT 
 This PURCHASE CONTRACT (this “Contract”) is made and entered into as of the date set forth in Item 1 of Schedule 1 by
and between the persons and entities set forth in Item 2(a) of Schedule 1 (each, an “Interest Owner” and, collectively, the “Interest Owners”), with an address c/o Larry Blumberg &
Associates, Inc., 2733 Ross Clark Circle, P.O. Box 5566, Dothan, Alabama 36302; the entity set forth in Item 2(b) of Schedule 1 (the “Company”), with its principal office c/o Larry Blumberg & Associates,
Inc., 2733 Ross Clark Circle, P.O. Box 5566, Dothan, Alabama 36302; and APPLE SEVEN 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. The Company is the fee simple or leasehold owner of the hotel property identified in Item 3 of Schedule 1 attached hereto and incorporated herein by reference. 
 B. The Interest Owners are the sole owners of one hundred percent (100%) of the limited liability company interests or stock, as applicable, in the
Company. 
 C. Buyer desires to purchase from the Interest Owners, and the Interest Owners desire to sell to Buyer, all of Interest
Owner’s interests in the Company 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 Agreement shall have the meanings set forth below unless the context otherwise requires: 
 “Additional Deposit” shall mean $100,000. 
 “Affiliate” shall mean, with
respect to the Company, any Interest Owner 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 the Company,
any Interest Owner 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 

  

					
		  	S-1	  	Purchase Contract

 
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. 
 “Agreement” means any agreement, contract, obligation, promise or undertaking (whether written or oral and
whether express or implied) that is or purports to be legally binding. 
 “Appurtenances” shall mean all rights, titles, and
interests of the Company 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. 
 “Assumed Loan” shall mean the loan, if any, identified in Item 10 of Schedule 1; if no loan is so identified, the term “Assumed Loan” shall be disregarded for purposes of this Contract.

 “Brand” shall mean the hotel brand or franchise identified in Item 5 of Schedule 1 and under which the
Hotel operates. 
 “Business Day” shall mean any day other than a Saturday, Sunday or legal holiday in the Commonwealth of
Virginia, the State of Florida or the state in which the Hotel is located. 
 “Closing” shall mean the closing of the
purchase and sale of the Interests pursuant to this Contract. 
 “Closing Date” shall have the meaning set forth in
Section 10.1. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Company Intellectual Property” shall have the meaning set forth in Section 7.1(n). 
 “Contemplated Transactions” shall mean all of the transactions contemplated by this Contract and the Exhibits hereto. 
 “Contract” shall mean this Purchase Contract, as amended from time to time pursuant to the terms hereof. 
 “Contracts, Plans and Specs” shall mean all construction and other contracts, plans, drawings, specifications, surveys, soil reports,
engineering reports, inspection reports, and other technical descriptions and reports. 
 “Deposits” shall mean, to the
extent assignable, all prepaid rents and deposits (including, without limitation, any reserves for capital repairs and/or improvements), including, but not limited to, refundable security deposits and rental deposits and all other deposits for
advance 

  

 2 

 
reservations, banquets or future services, made in connection with the use or occupancy of the Improvements, all reserves for replacement of FF&E,
reserves for real property taxes and insurance and utility deposits, credit for which shall be given to the Interest Owners to the extent hereinafter provided. 
 “Due Diligence Examination” shall have the meaning set forth in Section 3.2. 
 “Earnest Money Deposit” shall have the meaning given in Section 2.6. 
 “Effective
Date” shall mean the date this Contract is fully executed by all of the parties hereto, and an original of the executed document (which may be in the form of counterparts, in which case the last counterpart) is deposited with the Title
Company. 
 “Employee Plan” means, with respect to an employer, all “employee benefit plans” as defined by
Section 3(3) of ERISA, all specified fringe benefit plans as defined in Section 6039D of the Code, and all other bonus, incentive compensation, deferred compensation, profit sharing, stock option, stock appreciation right, stock bonus,
stock purchase, employee stock ownership, savings, severance, change in control, supplemental unemployment, layoff, salary continuation, retirement, pension, health, life insurance, disability, accident, group insurance, vacation, holiday, sick
leave, fringe benefit or welfare plan, and any other employee compensation or benefit plan, agreement, policy, practice, commitment, contract or understanding (whether qualified or nonqualified, currently effective or terminated, written or
unwritten) and any trust, escrow or other agreement related thereto that (i) is maintained or contributed to by any such employer or any ERISA Affiliate or has been maintained or contributed to in the last six (6) years by any such
employer or any ERISA Affiliate, or with respect to which any such employer or any ERISA Affiliate has or may have any liability, and (ii) provides benefits, or describes policies or procedures applicable to any current or former director,
officer, employee or service provider of any such employer or any ERISA Affiliate, or the dependents of any thereof, regardless of how (or whether) liabilities for the provision of benefits are accrued or assets are acquired or dedicated with
respect to the funding thereof. 
 “Environment” means soil, land surface or subsurface strata, surface waters (including
navigable waters and ocean waters), groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life and any other environmental medium or natural resource. 
 “Environmental Requirements” shall have the meaning set forth in Section 7.1(v)(iii). 
 “ERISA” means the Employee Retirement Income Security Act of 1974. 
 “ERISA Affiliate” means, with respect to an employer, any other corporation or trade or business controlled by, controlling or under
common control with such employer (within the meaning of Section 414 of the Code, or Sections 4001(a)(14) or 4001(b) of ERISA). 
  

 3 

 “Escrow Account” means a separate account established and controlled by Buyer for the
purpose of holding and disbursing the Escrow Amount in accordance with Section 2.5 hereof, which account Buyer, for its convenience, may use and commingle escrow amounts from other purchase contracts between Buyer and Affiliates of the
Company executed simultaneously or of even date herewith. 
 “Escrow Amount” means that sum of money withheld from the
Purchase Price and retained in the Escrow Account by Buyer, such amount to equal one hundred fifty percent (150%) of the following obligations of the Company: (i) the total amount of accounts payable for the Hotel attributable to the
period before the Closing Date and (ii) the costs of completing those certain improvements listed on the attached Schedule 2.5, if any, required by Franchisor to be made pursuant to Franchisor’s existing PIP. The estimated portion
of the Escrow Amount to be withheld under this Contract for the items mentioned in clause (ii) above is set forth in Schedule 1. 
 “Escrow Agent” shall mean LandAmerica American Title Company, the Person serving as escrow agent for purposes of the Earnest Money Deposit. 
 “Exception Documents” shall have the meaning set forth in Section 4.2. 
 “Existing Franchise Agreement” shall mean the franchise agreement identified in Item 9 of Schedule 1. 
 “Existing Management Agreement” shall mean the management agreement identified in Item 7 of Schedule 1. 
 “Existing Manager” shall mean LBAM-Investor Group, L.L.C., an Alabama limited liability company and an Affiliate of the Company. 
 “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 the Company pursuant to an FF&E Lease), 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. 
  

 4 

 “FF&E Leases” shall mean all leases of any FF&E and other contracts permitting
the use of any FF&E at the Improvements. 
 “Franchisor” shall mean the franchisor identified in Item 8 of
Schedule 1; if no franchisor is so identified, the term “Franchisor” shall be disregarded for purposes of this Contract. 
 “Governmental Body” means any (i) nation, state, county, city, town, borough, village, district or other jurisdiction; (ii) federal, state, local, municipal, foreign or other government; (iii) governmental or
quasi–governmental authority of any nature (including any agency, branch, department, board, commission, court, tribunal or other entity exercising governmental or quasi–governmental powers); (iv) multinational organization or body;
(v) body exercising, or entitled or purporting to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power; or (vi) any official of any of the foregoing. 
 “Hazardous Material” shall have the meaning set forth in Section 7.1(v)(iii). 
 “Hotel” shall mean the hotel located on the Land, including all Improvements and Personal Property associated therewith, known generally
by the name and/or identification set forth in Item 3(a) of Schedule 1. 
 “Hotel Contracts” shall have
the meaning given in Section 7.1(v)(i). 
 “Hotel Financial Statements” shall have the meaning set forth in
Section 3.1(b). 
 “Improvements” shall mean all buildings, structures, fixtures, parking areas and other
improvements to the Land, including, without limitation, all improvements and amenities described in Item 3 of Schedule 1 and all related facilities. 
 “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 Earnest
Money Deposit” shall have the meaning given in Section 2.6. 
 “Interest” shall mean the limited
liability company interest or corporate stock, as applicable, owned by each Interest Owner in the Company, and “Interests” shall mean all of such limited liability company interests or corporate stock. 
 “Interest Lien” shall mean any claim, lien, pledge, charge, security interest, equitable interest, option, warrant, right of first
refusal, restriction on use, voting, transfer, receipt of income or other attribute of ownership, or other encumbrance of any kind, affecting any Interest. 
 “Land” shall mean the real property described in Exhibit A, which is attached hereto and incorporated herein by reference, together with all rights (including without limitation all air rights
and development rights), alleys, streets, strips, gores, waters, privileges, appurtenances, 

  

 5 

 
advantages and easements belonging thereto or in any way appertaining thereto, and all other Appurtenances. 
 “Leased Premises” shall have the meaning set forth in Section 7.1(m). 
 “Leases” shall mean all leases, occupancy agreements, “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). 
 “Legal Requirement” means any federal, state, local, municipal, foreign, international, multinational or other constitution, law, ordinance, principle of common law, code, regulation, rule, order, injunction, judgment,
decree, ruling, assessment or arbitration award of any Governmental Body or arbitrator. 
 “Lender” shall mean the lender
identified in Item 11 of Schedule 1; if no such lender is so identified, the term “Lender” shall be disregarded for purposes of this Contract. 
 “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. 
 “New
Franchise Agreement” shall mean the franchise agreement to be entered into by the Company and the Franchisor at the Closing. 
 “New Management Agreement” shall mean the management agreement to be entered into by the Company and the New Manager at the Closing, in the form of the agreement attached hereto as Exhibit I. 
 “New Manager” shall mean LBAM-Investor Group, L.L.C., an Alabama limited liability company and an Affiliate of the Company as of the
date of this Contract. 
 “Organizational Documents” means (a) the articles or certificate of incorporation and the
bylaws of a corporation; (b) the partnership agreement and the certificate of partnership of a partnership; (c) the articles of organization or certificate of formation and any operating or limited liability company agreement of a limited
liability company; (d) any charter or similar 

  

 6 

 
document adopted or filed in connection with the creation, formation, or organization of a Person, and (e) any amendment to any of the foregoing.

 “Pending Claims” shall have the meaning set forth in Section 7.1(v)(ii). 
 “Permitted Exceptions” shall have the meaning set forth in Section 4.3. 
 “Person” means an individual or any entity, including a corporation, partnership, joint venture, limited liability company, trust,
estate or other unincorporated association, whether or not a legal entity. 
 “Personal Property” shall mean, collectively,
all of the Property other than the Real Property. 
 “PIP” shall mean a product improvement plan for the Hotel, as required
by the Franchisor. 
 “Post-Closing Claims” shall have the meaning given in Section 8.10(a). 
 “Post-Closing Claim Period” shall have the meaning given in Section 8.10(a). 
 “Post-Closing Reserves” shall have the meaning given in Section 8.10(a). 
 “Pre-Closing Tax Period” shall have the meaning given in Section 10.4(a). 
 “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 the Company related
to any of the foregoing and (ii) any and all of the following that relate to or affect in any way the design, construction, ownership, use, occupancy, leasing, maintenance, service or operation of the Real Property, FF&E, Supplies, Leases,
Deposits or Records: Service Contracts, Warranties currently in effect, Licenses, Tradenames, Contracts, Plans and Specs and FF&E Lease. 
 “Property Lien” means any deed of trust or mortgage, lien, security interest, easement, right of way, encroachment, lease, purchase contract, option to purchase, right of first refusal, servitude, restrictive covenant,
limitation on use or other encumbrance or title defect of any kind. 
 “Purchase Price” shall have the meaning set forth in
Section 2.2. 
 “Real Property” shall mean, collectively, all Land and Improvements with respect to the Hotel.

 “Records” shall mean all books, records, promotional material, tenant data, guest history information (other than any
such information owned exclusively by the Franchisor), marketing 

  

 7 

 
and leasing material and forms (including but not limited to any such records, data, information, material and forms in the form of computerized files
located at the Hotel), market studies prepared in connection with the Company’s current annual plan and other materials, information, data, legal or other documents or records (including, without limitation, all documentation relating to any
litigation or other proceedings, 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 development, construction and/or operation of
the Hotel, and all Tax Returns and work papers and filings related to Taxes for the current tax year and the previous three (3) tax years) owned by the Company and/or in the Company’s possession or control, or to which the Company has
access or may obtain from the Existing Manager or the Franchisor, 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 the Company shall furnish to Buyer (and the
term “Records” shall include) a list of the general contractors, architects and engineers providing goods and/or services in connection with the construction of the Hotel, all construction warranties and guaranties currently in effect and
copies of the final plans and specifications for the Hotel, it being understood that the Company may not have in its possession all change orders and other modifications to the original plans and specifications. 
 “Release” shall have the meaning set forth in Section 7.1(v)(iii). 
 “Review Period” shall have the meaning set forth in Section 3.1. 
 “SEC” shall have the meaning set forth in Section 8.6. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Seller Liens” shall have the meaning set forth in Section 4.3. 
 “Service Contracts” shall mean contracts or agreements, such as maintenance, supply, service or utility contracts. 
 “Straddle Period” shall have the meaning given in Section 10.4(b). 
 “Supplemental Provisions” shall have the meaning set forth in Article XVII. 
 “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, 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 

  

 8 

 
connection with the swimming pools, indoor and/or outdoor sports facilities, health 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. 
 “Tax” or “Taxes” means any income, gross receipts, license, payroll,
employment, excise, severance, stamp, occupation, premium, property, environmental, windfall profit, customs, vehicle, airplane, boat, vessel or other title or registration, capital stock, franchise, employees’ income withholding, foreign or
domestic withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, value added, alternative, add-on minimum and other tax, fee, assessment, levy, tariff, charge or duty of any kind whatsoever and
any interest, penalty, addition or additional amount thereon imposed, assessed or collected by or under the authority of any Governmental Body or payable under any tax-sharing agreement or any other Contract, including any interest, penalty, or
addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person. 
 “Tax Return” means any return (including any information return), report, statement, schedule, notice, form, declaration, claim for refund or other document or information filed with or submitted to,
or required to be filed with or submitted to, any Governmental Body in connection with the determination, assessment, collection or payment of any Tax or in connection with the administration, implementation or enforcement of or compliance with any
Legal Requirement relating to any Tax. 
 “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 all 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 remain in full force and effect after the acquisition of the Interests by Buyer). 
 “Utility
Reservations” shall mean the Company’s interest in the right to receive and continuously consume (including, without limitation, from and after Closing) water service, 

  

 9 

 
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. 
 “Warranties” shall mean all warranties, guaranties, indemnities and claims, currently in effect, for the benefit of the Company 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 the Company related thereto. 
 ARTICLE II 
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; 
 EARNEST MONEY DEPOSIT 
 2.1 Purchase and Sale. Each Interest Owner agrees to sell and convey to Buyer or its Affiliates and/or assigns, and Buyer or its assigns agrees to
purchase from the Interest Owners, all of the Interests, in consideration of the Purchase Price, subject to and upon the terms and conditions hereof. All of the Interests shall be conveyed, assigned, and transferred to Buyer at Closing, free and
clear of all Interest Liens. 
 2.2 Purchase Price. Buyer agrees to pay, and the Interest Owners agree to accept, as consideration for
the conveyance of all of the Interests, subject to the adjustments provided for in this Contract, the amount set forth in Item 12 of Schedule 1 (the “Purchase Price”), less the outstanding principal balance of the
Assumed Loan, if any, as of the Closing Date. 
 2.3 Allocation. The Purchase Price shall be allocated among the Interest Owners in
accordance with their percentage interest in the Company as set forth in Item 2(a) of Schedule 1. 
 2.4 Payment.
The Purchase Price, plus any positive adjustments under Section 12.1, less (i) the Earnest Money Deposit and interest earned thereon, if any, which Buyer elects to have applied against the Purchase Price (as provided below),
(ii) the principal balance of any Assumed Loan, (iii) the Escrow Amount, (iv) the Post-Closing Reserves and (v) any negative adjustments under Section 12.1, shall be paid to the Interest Owners in cash, certified
funds or wire transfer, at the Closing of the purchase and sale of the Interests. 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 the Interest Owners by Escrow Agent to be applied to the Purchase Price on behalf of Buyer. 
 2.5 Escrow Amount and Use of Escrow
Account. Buyer shall withhold the Escrow Amount from the Purchase Price due at Closing, which Escrow Amount shall be deposited into 

  

 10 

 
the Escrow Account. Funds held in the Escrow Account shall be applied to pay (i) accounts payable for the Hotel attributable to the period before the
Closing and (ii) the cost of the improvements listed on Schedule 2.5, if any, which are required by the Franchisor under its existing project improvement plan. As invoices for accounts payable or PIP expenditures are received by the New
Manager or the Company, such invoices shall be submitted to Buyer, with a copy to Interest Owners, and Buyer shall release from the Escrow Account sums sufficient to pay all such invoices. If the Escrow Amount is insufficient to pay all of such
accounts payable and PIP expenditures, the Interest Owners shall pay such excess amount to Buyer promptly after Buyer or the Company submits an invoice therefor. Upon completion of the PIP and payment of all costs therefor and upon Buyer’s
receipt of a certificate from Interest Owners certifying that all accounts payable attributable to the period before the Closing have been paid, all remaining funds in the Escrow Account shall be released to the Interest Owners. 
 2.6 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. The Initial Deposit and the Additional Deposit (if any), 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. 
 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 thirty (30) days after the Effective Date,
unless a longer period of time is otherwise provided for in this Contract and except as otherwise agreed to by the parties hereto (the “Review Period”), to evaluate the legal, title, survey, construction, engineering, physical
condition, structural, mechanical, environmental, zoning, economic, permit status, franchise status, 

  

 11 

 
marketing and economic data, financial statements and information, property statements, franchise agreements, loan documents and other documents and
information related to the Property and the business of the Hotel, including any and all documents to which Buyer may be come obligated with respect to the Assumed Loan, if any. Within two (2) Business Days following the Effective Date, the
Company, at the sole cost and expense of the Interest Owners, will deliver to Buyer (or make available at the Hotel) for Buyer’s review, to the extent not previously delivered to Buyer, true, correct and complete copies of the following,
together with all amendments, modifications, renewals or extensions thereof: 
 (a) All Warranties currently in effect and
Licenses relating to the Hotel or any part thereof; 
 (b) Income and expense statements and budgets for the Hotel, for the
current year to date and all prior years in which the Hotel was operational (the “Hotel Financial Statements”), provided that the Company also agrees to provide to Buyer’s auditors 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, which the Company has in its possession or control. Buyer acknowledges that the Contracts, Plans and Specs in the Company’s possession may not include all change orders and other
modifications made during the course of construction of the Hotel, but in such case the Company will cause the general contractor for the Hotel to furnish copies of such change orders and other modifications upon Buyer’s request at any time
during the Review Period; 
 (e) All FF&E Leases, Services Contracts, Leases and, if applicable, a schedule of such Leases
of space in the Hotel, and all agreements for real estate commissions, brokerage fees, finder’s fees or other compensation payable by the Company in connection therewith; and 
 (f) All notices received from governmental authorities in connection with the Hotel for the current year and each of the three
(3) calendar years prior to the current year 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. 
  

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 The Company 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 the Company’s corporate offices, and the Company agrees to provide Buyer copies of all other reasonably requested information that is relevant to the
management, operation, use, occupancy or leasing of or title to the Hotel and the plans and specifications for development of the Hotel. 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 the Company, in which event: (i) the Initial 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 the Company to Buyer shall be returned promptly to the Company, and (iv) the 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. Upon expiration of the Review Period, Buyer may not terminate this Contract and receive a refund of the Earnest
Money Deposit for any reason except the failure of any of the conditions set forth in Section 9.1. 
 Buyer acknowledges and
agrees that certain of the items requested to be delivered to Buyer in this Section 3.1 have been delivered to and received by Buyer. The Company agrees to cooperate with Buyer and to provide any documents or instruments described herein
which have not been delivered by the Company for Buyer’s due diligence and review. 
 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 reasonable 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 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 advance (not less than 24 hours) notice to the Company unless otherwise agreed to by Buyer and the Company (the “Due
Diligence Examination”). The Company shall have the right to have its representative present during Buyer’s physical inspections of the Property, provided that failure of the Company 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 or the Existing Management Agreement or
the Existing Franchise Agreement. Buyer may not conduct a Phase II environmental site assessment or any other invasive environmental procedure without the prior written consent of the Company. 
 3.3 Restoration and Indemnity. 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, if closing does not occur, shall 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 

  

 13 

 
studies. Buyer further hereby indemnifies and holds the Company and the Interest Owners harmless from and against any damage, personal injury or death caused
by or arising from any action or omission by Buyer, its agents or employees in the examination and study of the Property. 
 3.4
Exhibits. Buyer shall have until the end of the Review Period to review and approve the information on the Exhibits to this Purchase Contract. In the event Buyer does not approve any such Exhibit or the information contained therein, Buyer
shall be entitled to terminate this Contract by notice to the Company, and the Initial 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. 
 ARTICLE IV 
 SURVEY AND TITLE APPROVAL 
 4.1
Survey. The Company and the Interest Owners, at the Interest Owners’ sole cost and expense, prior to the execution hereof have delivered to Buyer, true, correct and complete copies of the most recent survey of the Real Property. In the
event that an update of the survey or a new survey (such updated or new survey being referred to as the “Survey”) are desired by Buyer, then Buyer shall be responsible for all costs related thereto. 
 4.2 Title. The Company, at the Interest Owners’ sole cost and expense, prior to the execution hereof have delivered to Buyer, within two
(2) Business Days after the execution in full of this Contract, the Company’s existing title insurance policy, including copies of all documents referred to therein, for the Real Property. Buyer’s obligations under this Contract are
conditioned upon Buyer being able to obtain (i) a Commitment for Title Insurance (the “Title Commitment”) issued by LandAmerica American Title Company, 8201 Preston Road, Suite 280, Dallas, Texas 75225, Attention: David Long
(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 Property Liens and pursuant to which the Title Company agrees to issue 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, contiguity, Fairway 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, plats, surveys and Property Liens affecting the Real Property. Buyer shall promptly provide the Company with a copy of the Title Commitment issued by the Title Company. 
  

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 4.3 Survey or Title Objections. If Buyer discovers any title or survey matter which is
objectionable to Buyer, Buyer may provide the Company and the Interest Owners with written notice of its objection to same within fifteen (15) Business Days after Buyer’s receipt of both the Survey and the Title Commitment, together with
copies of all exceptions noted therein (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 the Company and the Interest Owners on or before the expiration of the Title Review Period, the Company and the Interest Owners shall elect either to
attempt to cure, at the Interest Owners’ sole cost and expense, or not cure any such item by written notice sent to Buyer within five (5) days after receipt by the Company and the Interest Owners of notice from Buyer, and if the Company
and the Interest Owners commit in writing to attempt to cure any such item, the Company and the Interest Owners shall be given until the Closing Date to cure any such defect. In the event the Company and the Interest Owners shall fail to cure a
defect which they have 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 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 Survey or the Title Commitment
or which are apparent by physical inspection of the Property and which are not objected to by Buyer as set forth above (other than exceptions and title defects arising after the Title Review Period and other than those standard exceptions which are
ordinarily and customarily omitted in the state in which the Hotel is located, so long as the Company and/or the Interest Owners, as the case may be, provide, at the Interest Owners’ sole cost and expense, the appropriate owner’s
affidavit, gap indemnity or other documentation reasonably required by the Title Company for such omission) and the deed of trust securing the Assumed Loan, if any, are hereinafter referred to as the “Permitted Exceptions.” In no
event shall Permitted Exceptions include mortgages or other documents evidencing or securing indebtedness (other than the recorded instruments securing the Assumed Loan, if any), or any mechanics’ or materialmen’s lens or any claims or
potential claims therefor covering the Property or any portion thereof (“Seller Liens”), each of which shall be paid in full by the Interest Owners, at the Interest Owners’ sole cost and expense, and released at Closing, except
for the deed of trust securing the Assumed Loan, if any. 
 ARTICLE V 
 MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT 
 The Company has entered into the
Existing Management Agreement and the Existing Franchise Agreement for the operation and management of the Hotel. At the Closing, subject to the approval of the Franchisor, (i) the Company and the Existing Manager shall terminate the Existing
Management Agreement, (ii) the Company and the Franchisor shall terminate the Existing Franchise Agreement, (iii) the Company and the New Manager shall enter into the New Management Agreement and (iv) the Company and the Franchisor
shall enter into the New Franchise Agreement. The Interest Owners shall be solely responsible for all claims and 

  

 15 

 
liabilities arising under the Existing Management Agreement and the Existing Franchise Agreement, whether accruing before or after the Closing. The Company
and the Interest Owners shall obtain the Existing Manager’s consent to the termination of the Existing Management Agreement, and the Company and the Interest Owners shall cause the New Manager to enter into the New Management Agreement. Before
the Closing, the Company and Buyer shall request the Franchisor to approve the transfer of the Interests to Buyer, the termination of the Existing Management Agreement, the execution of the New Management Agreement and the execution of the New
Franchise Agreement. The Company and the Interest Owners shall use their best efforts to promptly provide all information required by the Franchisor in connection with the foregoing request for approval, and the Company, the Interest Owners and
Buyer shall diligently pursue obtaining the Franchisor’s approval. The Interest Owners understand that Buyer expects the New Franchise Agreement to be upon financial terms and conditions no less favorable to the Company than the Existing
Franchise Agreement. 
 ARTICLE VI 
 BROKERS 
 Each Interest Owner, the Company and Buyer 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. Each Interest Owner agrees to save and hold harmless Buyer from any and all losses, damages, liabilities, costs and expenses (including, without
limitation, attorneys’ fees) involving claims made by any agent, broker, or other person by or through the acts of any Interest Owner or the Company, as the case may be, in connection with the Contemplated Transactions. Buyer agrees to save and
hold harmless each Interest Owner and the Company from any and all losses, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees) involving claims made by any agent, broker, or other person by or through the
acts of Buyer in connection with the Contemplated Transactions. 
 ARTICLE VII 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 7.1 Representations, Warranties
and Covenants of Interest Owners. Each Interest Owner represents, warrants and covenants to Buyer as follows: 
 (a)
Organization and Existence of the Company. The Company is a limited liability company or corporation duly organized or incorporated and validly existing under the laws of the state indicated in Item 2(b) of Schedule 1, and
the Company has the full power and authority to own all of its property and assets and to carry on its business as presently conducted. The Company is not required to qualify to transact business in any jurisdiction other than the state is which it
is organized or incorporated. The copies of the Company’s Organizational Documents that the Company has delivered to Buyer or delivers to Buyer during the Review Period are or will be true, correct and complete copies of the Organizational
Documents of the Company as in effect as of the date hereof and have not been amended or supplemented further. 

  

 16 

 
The Company is not a general or limited partner of, or a party to any joint venture with, any other entity and does not, directly or indirectly, own any
interest in any other Person. 
 (b) Authorization and Validity. Each Interest Owner and the Company have the power and
authority to execute and deliver this Contract and the other agreements contemplated hereby and to consummate the Contemplated Transactions. This Contract has been duly executed and delivered by and constitutes a valid and binding agreement of the
Company, each Interest Owner, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws. The execution and delivery hereof by the Company and each Interest Owner and the consummation by the Company and
each Interest Owner of such transactions have been fully authorized by the Company and each Interest Owner. 
 (c)
Ownership of Interests. The Interest Owners are the owners of all of the Interests, each owning the percentage set forth in Item 2(a) of Schedule 1, and have good and valid title thereto, with no restrictions on, or any
agreements with respect to, voting rights or any other incidents of ownership thereof, except as set forth in the Company’s Organizational Documents. The Interests represent one hundred percent (100%) of the record and beneficial interests
in the Company and all other right, title and interest in and to the equity of the Company. The Interest Owners have the absolute right to sell and transfer all of the Interests to Buyer free and clear of all Interest Liens. Each Interest Owner
acquired its Interest in compliance with all applicable laws. On consummation of the Contemplated Transactions, in accordance with the terms hereof, Buyer will acquire good and marketable title to the Interests free and clear of all Interest Liens.

 (d) Related Party Transactions. No Interest Owner has any direct or indirect interest in any property used by, or
relating to, the Company, except through the ownership of its Interest. 
 (e) Non-Contravention. The execution and
delivery by each Interest Owner and the Company of this Contract and the other agreements contemplated hereby do not, and the consummation by each Interest Owner and the Company of the transactions contemplated hereby or thereby will not
(i) violate any provision of the any Organizational Documents of any Interest Owner or the Company, (ii) violate, or result with the passage of time in a violation of, any provision of, or result in the acceleration of or entitle any party
to accelerate any obligation under, or result in the creation or imposition of any Property Lien upon, any of the property of any Interest Owner or the Company pursuant to any provision of any mortgage, deed of trust, lease, agreement, license or
instrument to which any Interest Owner or the Company is a party or to which any of them is subject (collectively, the “Restrictive Documents”) except to the extent consents, waivers, satisfactions or terminations therefor
will be delivered on or before Closing, (iii) constitute an event permitting termination of any mortgage, deed of trust, lease, agreement, license or instrument to which any Interest Owner or the Company is a party, except for those Restrictive
Documents which represent obligations to be satisfied or for which consents to assignment or waivers of termination will be delivered on or before Closing or (iv) violate any 

  

 17 

 
judgment, order, writ, injunction, decree, regulation or rule of any court or governmental authority applicable to any Interest Owner or the Company or the
assets of any of them. 
 (f) Consents and Approvals. No consent, approval, notification, authorization or order of, or
declaration, filing or registration with, any governmental agency, is required to be obtained or made by the Company or any Interest Owner in connection with the consummation by the Company and each Interest Owner of the Contemplated Transactions.

 (g) Financial Statements. The Company’s financial statements for the fiscal years 2004 through 2006 (the
“Company Financial Statements”), copies of which have been delivered to Buyer or will be delivered to Buyer during the Review Period, (i) were prepared in accordance with the books and records of the Company in the ordinary
course of its business, consistently applied, (ii) are correct, complete and accurate and (iii) fairly present the assets, liabilities and financial position of the Company as of the date thereof and the results of operations, cash flows
and changes in its financial position for the period then ended. 
 (h) Absence of Certain Changes or Events. There has
not been since the date of the Company Financial Statements: 
 (i) any material adverse change in the business, financial
condition, assets, liabilities, income or prospects of the business of the Company; 
 (ii) any damage, destruction and other
casualty loss (whether or not covered by insurance) having a material adverse effect on the financial condition, assets, liabilities, income or prospects of the business of the Company; 
 (iii) any change in the accounting methods followed by the Company; 
 (iv) any acquisition or proposed acquisition by the Company of real property or, except in the ordinary course of business, any other
property; 
 (v) any distributions to members or shareholders (whether in cash or property) other than cash on hand or in bank
accounts due to be withdrawn by or distributed to the Interest Owners prior to Closing; or 
 (vi) any increase in any manner
of the compensation of any employees employed at the Hotel or any payment or agreement to pay any pension or retirement allowance to any partner or employee at the Hotel, nor has the Company entered into or amended any employment agreement or any
Employee Plan of the Company or any other arrangement with or for the benefit of any partner, employee or other person, except for annual reviews and merit increases occurring in the ordinary course of the Company’s business and disclosed in
writing to Buyer during the Review Period. 
  

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 (i) No Undisclosed Liabilities. The Company does not have, as of the date of this
Contract, any debts, liabilities or obligations, whether accrued, absolute, contingent or otherwise, that are material to the financial condition, assets, liabilities, income or prospects of the business of the Company except as set forth in the
Company Financial Statements. 
 (j) Litigation. Except for the items listed on Schedule 7.1(j), there are no
actions, suits, claims, investigations or proceedings (legal, administrative or arbitrative) pending or, to the knowledge of any of the Interest Owners or the Company, threatened against any of the Interest Owners or the Company, whether at law or
in equity and whether civil or criminal in nature, before or by any federal, state, municipal or other court, arbitrator, governmental department, commission, agency or instrumentality, domestic or foreign. There are no judgments, decrees or orders
of any such court, arbitrator, governmental department, commission, agency or instrumentality outstanding against any of the Interest Owners or the Company, (i) which relate to the Company or any Interest Owner and which have or could
reasonably be expected to have an adverse effect on the financial condition, assets, liabilities, income or prospects of the business of the Company, or (ii) which seek specifically to prohibit, restrict or delay consummation of the
transactions contemplated hereby or fulfillment of any of the conditions of this Contract. 
 (k) Title to Properties.
The Company has good and marketable title to all of the Property (whether real, fee or leasehold, personal or mixed, tangible or intangible) and as reflected on the Company Financial Statement and enjoys quiet possession of all such properties and
interests, free and clear of all mortgages and other encumbrances (except for Permitted Exceptions, current taxes and liens which arise by operation of law with respect to obligations not yet due and payable). The Property includes all real estate,
intangible assets and physical assets of the Company and all of the property reasonably required to own and operate the Hotel as presently operated and in accordance with the Existing Franchise Agreement. 
 (l) Condition of Hotel. The Hotel is in good and sufficient repair and operating condition, normal wear and tear excepted. No
governmental agency, or other person having authority over any of the Hotel, has served any notice on any Interest Owner or the Company requiring repairs, alterations or corrections of any existing condition on the Hotel. Except as set forth in
Schedule 7.1(l), there are no pending or, to the knowledge of the Company or any Interest Owner, threatened proceedings for condemnation or the exercise of the right of eminent domain as to any part of the Hotel or for limiting or denying any
right of access thereto. None of the Interest Owners or the Company has any knowledge of any special taxes or assessments relating to any part of the Hotel or any planned public improvements that may result in a special assessment against any part
of the Hotel. 
 (m) Lease of Real and Personal Property. Schedule 7.1(m) sets forth a list of (a) all
leases pursuant to which the Company leases, as lessee, real property (the “Leased Premises”), (b) all leases pursuant to which the Company leases, as lessor, real property, (c) all leases pursuant to which the Company
leases, as lessee, personal property and (d) all prepaid 

  

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expenses, rents and security deposits paid by or to the Company with respect to any of the foregoing leases. The Company has performed all material
obligations required to be performed by it to date under all leases set forth in Schedule 7.1(m) and is not in default nor, to the best knowledge of the Company and any Interest Owner, alleged to be in default in any material respect under
any thereof. To the best knowledge of [the Company and any Interest Owner, there exists no default, or any event which upon the giving of notice or passage of time would give rise to any default, in the performance of any obligation to be performed
by any other party to any of such leases. Immediately after the Closing, Buyer will possess all right, title and interest of each Interest Owner and the Company will continue to possess its right, title and interest, as the case may be, in and to
the leases set forth in Schedule 7.1(m) . 
 (n) Trade Names, Trade Marks, Etc. Subject to the terms of the
Existing Franchise Agreement with respect to trade names, trademarks and service marks licensed thereunder, the Company owns or has the right to use all trade marks, trade names and/or business names used or useful in the business of the Company
(the “Company Intellectual Property”). There are no claims or proceedings pending or, to the knowledge of the Interest Owners or the Company, threatened against the Company asserting that its use of any Company Intellectual Property
infringes the rights of any other person. None of the Interest Owners or the Company has knowledge of any use by the Company that may, with notice or passage of time, give rise to such a claim. The Company has not licensed or otherwise assigned any
Company Intellectual Property to any third party, and there are no existing infringing uses of the Company Intellectual Property by any third parties. Other than the terms of the Existing Franchise Agreement, there are no restrictions or other
obligations of the Company with respect to the ownership or use of the Company Intellectual Property. The trade marks, trade names, service marks and/or business names described on Schedule 7.1(n) include all of the Company Intellectual
Property. 
 (o) Governmental Authorization and Compliance with Laws. To the best knowledge of the Company and the
Interest Owners, (i) the business of the Company has been operated in compliance with all laws, orders, regulations, policies and guidelines of all governmental entities (including, without limitation, those relating to building codes and
zoning, environmental and safety matters), (ii) the Company has all permits, certificates, licenses, approvals and other authorizations required in connection with the operation of its business as now conducted, such licenses, permits and
approvals are in full force and effect, and there is no reason to believe that any such license, permit or approval will be recalled, and (iii) each Interest Owner and the Company have complied in all material respects with all applicable laws,
regulations and restrictions relating to the business of the Company, including without limitation laws, regulations and restrictions relating to the Employee Plans of the Company. 
 (p) Taxes. 
 (i) Tax Status. If the Company is a limited liability company, the Company has been treated as a partnership for Tax purposes at all times during its 

  

 20 

 
existence. If the Company is a corporation, the Company made an S election under Section 1362 of the Code upon its formation and, at the time of making
such election and at all times thereafter, it qualified as a “small business corporation” within the meaning of Section 1361(b) of the Code. 
 (ii) Tax Returns. Each Interest Owner and the Company have filed all Tax Returns that they were required to file under applicable laws and regulations. All such Tax Returns were correct and complete in all
respects and were prepared in substantial compliance with all applicable laws and regulations. All Taxes due and owing by each Interest Owner and the Company (if any), whether or not shown on any Tax Return, have been paid. Neither the Company nor
any of the Interest Owners currently is the beneficiary of any extension of time within which to file any Tax Return. No claim has ever been made by an authority in a jurisdiction where Company or any of the Interest Owners does not file Tax Returns
that Company or any of the Interest Owners is or may be subject to taxation by that jurisdiction. There are no liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of the Company or upon any Interest of any of the
Interest Owners. 
 (iii) Withholding. The Company withheld and paid all Taxes required to have been withheld and paid
in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party 
 (iv) No Expected Assessments. No Interest Owner or manager or officer (or employee responsible for Tax matters) of the Company expects any authority to assess any additional Taxes for any period for which Tax Returns have been filed.
No foreign, federal, state, or local tax audits or administrative or judicial Tax proceedings are pending or being conducted with respect to the Company or any of the Interest Owners with respect to any item of income, gain, loss, deduction, or
credit from the Company. Neither the Company nor any of the Interest Owners has received from any foreign, federal, state, or local taxing authority (including jurisdictions where the Company or the Interest Owners have not filed Tax Returns) any
(i) notice indicating an intent to open an audit or other review, (ii) request for information related to Tax matters, or (iii) notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any
taxing authority against the Company or any of the Interest Owners with respect to any item of income, gain, loss, deduction, or credit from the Company. Schedule 7.1(p)(iv) attached hereto lists all federal, state, local, and foreign income
Tax Returns filed with respect to the Company or any Interest Owner for taxable periods ended on or after December 31, 2001, indicates those Tax Returns that have been audited, and indicates those Tax Returns that currently are the subject of
audit. The Company has delivered to Buyer correct and complete copies of all federal income Tax Returns, examination reports, and statements of deficiencies assessed against or agreed to by the Company or the Interest Owner filed or received since
December 31, 2001; provided, however, that an Interest Owner is required to deliver such information only for a Tax 

  

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Return for which there has been a notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any taxing authority
against the Interest Owner with respect to any item of income, gain, loss, deduction, or credit from the Company. 
 (v) No
Extension of Statute of Limitations. Neither the Company nor any of the Interest Owners has waived any statute of limitations in respect of Taxes or agreed to any extension of time with respect to any Tax assessment or deficiency with respect to
any item of income, gain, loss, deduction, or credit from the Company. 
 (vi) Post Closing Inclusion of Income.
Neither the Company nor any of the Interest Owners will be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any:

 (A) change in method of accounting for a taxable period ending on or prior to the Closing Date; 
 (B) “closing agreement” as described in Code § 7121 (or any corresponding or similar provision of state, local, or foreign
income Tax law); 
 (C) installment sale or open transaction disposition made on or prior to the Closing Date; or 

(D) prepaid amount received on or prior to the Closing Date. 
 (q) Insurance. Schedule 7.1(q) is a true and complete list, showing company, type and amount of coverage, of all insurance
policies carried by the Company for the benefit of the Company or third parties. To the best of the knowledge of the Interest Owners and the Company, the Company is not in default with respect to any provision of any of its insurance policies and
has not failed to give any notice or present any claim thereunder in due or timely fashion or as required by any of such insurance policies which would result in failure to recover in full under such policies. To the best of the knowledge of the
Interest Owners and the Company, the Company has complied with the insurance requirements of all leases and other Agreements to which it is a party. 
 (r) Certain Agreements. Except as listed on Schedule 7.1(r), the Company has no presently existing Agreements, mortgages, leases or profit sharing, savings, consultant, deferred compensation, retirement,
pension or other Employee Plans or benefit arrangements. No Interest Owner has any interest in any of the Property other than the interest of a member or shareholder under the provisions of the Company’s Organizational Documents. All leases,
Agreements, licenses or instruments to which the Company is a party or by which any of its 

  

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assets or properties are bound or affected are in full force and effect and binding obligations of the parties thereto. No event or condition has occurred or
exists, or is alleged by any of the other parties thereto to have occurred or existed, which constitutes, or with lapse of time or giving of notice or both might constitute, default or a basis for acceleration of any obligations, force majeure or
other claim of excusable delay or non-performance thereunder or in respect thereof, whether on the part of the Company or any other party. The Company is not a party to any Agreement or any arrangement (whether or not in writing) with any of
Interest Owners. 
 (s) Full Disclosure. To the best knowledge of the Company and the Interest Owners, no statement
contained in any document, certificate or other writing furnished or to be furnished by the Company or any of the Interest Owners to Buyer pursuant to the provisions of this Contract contains or shall contain any untrue statement of a material fact
or shall omit to state any material fact necessary, in the light of the circumstances under which it was made, to make the statements therein not misleading. 
 (t) FIRPTA. No Interest Owner is a foreign corporation, foreign partnership, foreign trust or foreign estate (as those items are
defined in the Code and Income Tax Regulations). 
 (u) Bankruptcy. Neither the Company nor any Interest Owner is
insolvent or the subject of any bankruptcy proceeding, receivership proceeding or other insolvency, dissolution, reorganization or similar proceeding. 
 (v) Representations as to the Hotel, Etc. 
 (i) Property Agreements. A complete
list of all FF&E Leases, Service Contracts and Leases used in or otherwise relating to the operation and business of the Hotel is attached hereto as Exhibit C (collectively, the “Hotel Contracts”). There are no leases,
license agreements, leasing agent’s agreements, equipment leases, building service agreements, maintenance contracts, suppliers contracts, warranty contracts, operating agreements, or other Agreements (i) to which the Company is a party or
an assignee, or (ii) 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. The Service Contracts, Leases, Warranties and FF&E Leases disclosed on Exhibit C are in full force and effect, and no 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, or any interest therein or in the Company, other than Buyer. 
 (ii) Pending Claims. Except for any items listed on Schedule 7.1(j), there are no claims, demands, litigation, proceedings
or governmental investigations pending or, to the Interest Owners’ knowledge, threatened related to the business or assets of the Hotel, (ii) any special assessments or extraordinary taxes except as set forth 

  

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in the Title Commitment and (iii) any pending or threatened condemnation or eminent domain proceeding 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 Property 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 the knowledge of the
Company or any Interest Owner, 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 Property Lien on the Hotel (collectively, the
“Pending Claims”). 
 (iii) Environmental. With respect to environmental matters, except as otherwise
disclosed in the environmental reports and documents identified in Exhibit E, (i) to the Company’s and each of the Interest Owner’s knowledge, 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, (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, gas-fired maintenance equipment 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, to the knowledge of the Company and each of the Interest Owners, threatened, and (v) there are no reports or other
documentation regarding the environmental condition of the Real Property in the possession of the Company, any Interest Owner or their Affiliates, consultants, contractors or agents except for those which have been or during the Review Period will
be delivered to Buyer. Buyer acknowledges that the Property is located in a high humidity belt of the southern United States and that mold and mildew are common. The Company has treated, and until Closing will treat, the Property for mold and mildew
as needed in the ordinary course of business to protect the health of guests and employees of the Hotel and so as to comply with applicable law. 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 

  

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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, 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. 
 (iv) Title and Liens. The Company has
good and marketable fee simple absolute title to the Real Property (or, if so indicated in Item 4 of Schedule 1, leasehold title to the Land pursuant to the ground lease described therein and fee simple absolute title to the
Improvements during the term of such ground lease), subject only to the Permitted Exceptions. Except for the FF&E subject to the FF&E Leases and any applicable Permitted Exceptions, the Company has good and marketable title to the Personal
Property, free and clear of all encumbrances except for the Permitted Exceptions, and there are no other encumbrances or other rights pending or of which the Company or any Interest Owner has received notice or which are otherwise known to the
Company or any Interest Owner related to any other Personal Property. 
 (v) Utilities. All appropriate utilities,
including sanitary and storm sewers, water, gas, telephone, cable and electricity, are currently sufficient and available to service the Hotel and all installation, connection or “tap-on”, usage and similar fees have been paid. 

(vi) Licenses. The Property has a valid certificate of occupancy for its current use as a hotel and, to the knowledge of the
Company and each of the Interest Owners, complies with all applicable Licenses and Legal Requirements including, without limitation, those regarding zoning, land use, building, fire, health, safety, environmental, subdivision, water quality,
sanitation controls and the Americans with Disabilities Act, and similar rules and regulations relating and/or applicable to the ownership, use and operation of the Property as it is now operated. The Company has received all Licenses required or
needed for the lawful conduct, occupancy and operation of the business of the Hotel, and each License is in full force and effect, and will be received and in full force and effect as of the Closing. No Licenses necessary for the lawful conduct,
occupancy or operation of the business of the Hotel requires any approval of a Governmental Body for transfer of Interests except as set forth in Exhibit D. 
  

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 (vii) Hotel Financial Statements. The Company has delivered to Buyer copies of all
(i) Hotel Financial Statements, (ii) operating statements prepared by the Existing Manager or the Company for the Hotel, and (iii) monthly financial statements prepared by the Existing Manager or the Company for the Hotel. Each of
such statements is complete and accurate in all material respects and, except in the case of budgets prepared in advance of the applicable operating period to which such budgets relate, fairly presents the financial condition and results of
operations of the Hotel for the respective periods represented thereby. The Company has relied upon the Hotel 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 other than the Hotel Financial Statements provided to Buyer. 
 (viii) Employees. All employees employed at the Hotel are the employees of the Company, and, after the Closing, such employees shall be employees solely of the New Manager. No Employee Plans of the Company in
effect before the Closing shall be maintained or contributed to by the Company on or after the Closing, and the Company and the Interest Owners specifically agree that (i) on or before the Closing, all such Employee Plans shall be either
terminated or assumed by a Person or Persons other than the Company and (ii) after the Closing, the Company shall have no responsibility for compliance of any such Employee Plan with any applicable law or regulations or for payment of any
contributions, fees, premiums, expenses or penalties with regard to any such Employee Plan. There are no (w) unions organized at the Hotel, (x) 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, (y) collective bargaining or other labor agreements to which the Company or the Existing Manager or the Hotel is bound with respect to any employees employed at
the Hotel, or (z) Employee Plans of the Company that are either a multiemployer plan as defined in Section 3(37) of ERISA or an employee pension benefit plan subject to Title IV of ERISA. 
 (ix) Operations. The Hotel has at all times been operated by Existing Manager in accordance with all applicable laws, rules,
regulations, ordinances and codes. 
 (x) Management Agreement and Franchise Agreement. The Company has furnished to
Buyer true and complete copies of the Existing Management Agreement and the Existing Franchise Agreement, which constitute the entire agreement of the parties with respect to the subject matter thereof and which have not been amended or supplemented
in any respect except as provided in Item 7 of Schedule 1 and Item 9 of Schedule 1, respectively. 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 the Company is a party or which are binding upon the Property, except for the Existing Management Agreement and the Existing Franchise Agreement. The Improvements comply with,
and the Hotel is being operated 

  

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in accordance with, all requirements of the 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 or the Franchisor, subject to the applicable supplemental provisions, if any, set forth in Schedule 2 attached hereto. The Existing
Management Agreement and the Existing Franchise Agreement are in full force and effect. 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. 
 (xi) Construction of Hotel.

 (i) The Hotel has been constructed in a good and workmanlike manner without encroachments and in accordance in all
material respects with the Contracts, Plans and Specs (as revised by work order or other approval of the Company during construction), and all building permits and certificates of occupancy therefor and all applicable zoning, platting, subdivision,
health, safety and similar laws, rules, regulations, ordinances and codes. The Franchisor inspected and approved the Hotel upon substantial completion and authorized the opening thereof, and any punchlist items required by the Franchisor to be
completed after the opening were completed as required by the Franchisor. 
 (ii) The Personal Property is in good condition
and operating order, normal wear and tear excepted. 
 (iii) All necessary easements for ingress and egress, drainage,
signage and utilities serving the Hotel have been dedicated to the public or conveyed to the appropriate utility or to the Company. 
 (w) Hart Scott Rodino Filing. All of the assets owned by or in which the Company or any of its Affiliates have a interest are hotels or motels, related improvements such as golf, swimming, tennis, restaurant, health club or parking
facilities (but excluding ski facilities), and assets incidental to the ownership and operation of hotels or motels (e.g., prepaid taxes or insurance, management contracts and licenses to use trademarks associated with the hotel or motel being
acquired), as contemplated by the regulations promulgated under the Hart Scott Rodino Act, except that the Company and its Affiliates each may own other assets but the aggregate value thereof is less than $50,000,000. 
 7.2 Representations, warranties and covenants of Buyer. Buyer represents, warrants and covenants: 
 (a) Authority. Buyer is a corporation duly incorporated, validly existing and in good standing in the Commonwealth of Virginia.
Buyer has received or will have received by the applicable Closing Date all necessary consents of the Board of Directors of Buyer and is fully 

  

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authorized 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, subject to the effect of bankruptcy and other laws applicable to creditors generally and to equitable
principles. 
 (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 one year (i.e., 12 months) expiring on the first
anniversary date of the Closing; provided, however, that the representations and warranties set forth in Section 7.1(p) and Section 7.1(v)(viii) shall survive Closing for a period ending on the later of (i) three
(3) years following the date on which the Company files its Tax Return for the tax period ended December 31, 2006 or (ii) the expiration of any applicable statute of limitations that may be extended. 
 ARTICLE VIII 
 ADDITIONAL COVENANTS

 8.1 Subsequent Developments. After the date of this Contract and until the Closing Date, the Company shall keep Buyer fully
informed of all subsequent developments (“Subsequent Developments”) which would cause any of the representations or warranties of the Company or the Interest Owners 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, the Company 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 the Existing Management Agreement and
the Existing Franchise Agreement, and the Interest Owners shall cause the Company to comply, and perform all such obligations: 
 (a) Continue to maintain the Property generally in accordance with past practices and pursuant to and in compliance with the Existing Management Agreement and the Existing Franchise Agreement, including, without limitation, (i) using
best efforts to keep available the services of all present employees at the Hotel and to preserve its relations with guests, suppliers and other parties doing business with the Company with respect to the Hotel, (ii) accepting booking contracts
for the use of the Hotel’s facilities retaining such bookings in accordance with the terms of the Existing Management Agreement and the Existing Franchise 

  

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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 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 or the Company; 
 (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
good state of repair and condition, 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 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, and comply with all Legal Requirements 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 Property Lien (other than a
Permitted Exception) on, the Property or any portion thereof; 
 (i) Not allow any License 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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 (j) Not incur any indebtedness other than trade payables in the ordinary course; and

 (k) Not take any other action other than in the ordinary course of business consistent with past practice. 
 The Company shall promptly furnish to Buyer copies of all new, amended or extended FF&E Leases, Service Contracts, Leases and other contracts or
agreements (other than routine hotel room bookings entered into in the ordinary course of business) relating to the Hotel and entered into by the Company or the Existing Manager prior to Closing. Buyer shall have the right to extend the Review
Period for a period of five (5) Business Days in order to review any of the foregoing that are not received by Buyer at least five (5) Business Days prior to the expiration of the Review Period. Without first obtaining the written approval
of Buyer, which approval shall not be unreasonably withheld, the Company shall not, and the Interest Owners shall not permit the Company to, 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 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, Interest Owners, at their expense unless otherwise provided in Section 11.2,
shall (i) obtain the consent of the Lender, if any, to the Contemplated Transactions, (ii) obtain any and all other third party consents and approvals (x) required in order to transfer all of the Interests to Buyer or (y) which,
if not obtained, would materially adversely affect the operation of the Hotel or the value of the Company, including, without limitation, all consents and approvals referred to on Exhibit D and (iii) 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. Upon reasonable prior notice to the Company by Buyer, Buyer and its employees, representatives and agents shall have the right to
communicate with the Company’s staff, 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, at any
time before Closing. 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 the Property or the Franchise Agreement. 
 8.5 Estoppel Certificates. It shall be a condition to Buyer’s obligations under this Contract that the Company obtain, and the Interest
Owners shall cause the Company to 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) and (ii) each lessor under each FF&E Lease
for the Hotel identified by Buyer as a material FF&E Lease, the estoppel certificates substantially in the forms provided by Buyer to the Company during the Review Period, and deliver to Buyer not less than five (5) days before the Closing.

  

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 8.6 Access to Financial Information. Buyer’s representatives shall have access to, and the
Company and the Interest Owners and their 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. Each
Interest Owner shall also provide to Buyer’s representative a signed representation letter in form and substance reasonably acceptable to Buyer sufficient to enable an independent public accountant to render an opinion on the financial
statements related to the Hotel. The provisions of this Section shall survive Closing or termination of this Contract. 
 8.7 Bulk
Sales. The Interest Owners, at their expense, 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, each Interest Owner hereby agrees to indemnify, defend and hold harmless Buyer and, if the Closing occurs hereunder, the Company and their 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 the
Company, or any of the Property by a creditor of the Company or any Interest Owner, including any claims based on or alleging a violation of any bulk sales act or other similar laws; 
 (ii) the breach of any representation, warranty, covenant or agreement of the Company or any Interest Owner contained in this Contract;

 (iii) any liability or obligation of the Company assumed or incurred prior to the Closing Date; 
 (iv) any claim made or asserted by any employee of the Company or of the Existing Manager arising out of the transfer of any Interest
and/or the termination of such employee’s employment as a result of the transactions contemplated hereby; 
  

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 (v) the conduct and operation by or on behalf of the Company of the Hotel or the
ownership, use or operation of the Property prior to Closing; and 
 (vi) any liability, including without limitation any
contributions, fees, premiums, expenses or penalties, with regard to any Employee Plan of the Company or any other Employee Plan covering employees at the Hotel. 
 The indemnification under this Section 8.8(a) shall terminate and be of no further force and effect, as to the matters described in clauses (i) through (v) above, on and after the first
anniversary date of the Closing; provided, however, that (A) to the extent any of the representations and warranties survive for a longer period pursuant to Section 7.3, the foregoing indemnification relating to such representations
and warranties shall terminate and be of no further force and effect on and after the expiration of such longer period and (B) the indemnification shall not terminate as to claims asserted in writing by Buyer or the Company before such first
anniversary date or longer period, as the case may be. Any other indemnification by Interest Owners under this Agreement (except for the indemnification as to matters described in clause (vi) above) also shall terminate and be of further force
and effect on and after the first anniversary date of the Closing, except as to claims asserted in writing by Buyer or the Company before such anniversary date. 
 (b) Indemnification of the Interest Owners. Without in any way limiting or diminishing the warranties, representations or
agreements herein contained or the rights or remedies available to the Interest Owners for a breach hereof, Buyer hereby agrees, with respect to this Contract, to indemnify, defend and hold harmless the Interest Owners 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; 
 (ii) the conduct and operation by the Company of its business at the Hotel after the Closing; and

 (iii) the failure of the Company after the Closing to pay any rent or otherwise comply with its obligations under the
ground lease, if any, identified in Item 4 of Schedule 1. 
 The indemnification under this Section 8.8(b)
shall terminate and be of no further force and effect on and after the first anniversary date of the Closing except as to claims asserted in writing by an Interest Owner before such date. 
 (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 

  

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(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 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, delayed or 

  

 33 

 
conditioned. 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 Indemnified 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 the Indemnifying Party’s 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 Buyer or its respective assets, employees, Affiliates or business, or relief which Buyer reasonably believes
could establish a custom or precedent which will be adverse to the best interests of its continuing business. 
 8.9 Limitations on
Liability of Interest Owners. Notwithstanding anything contained herein to the contrary, the liability of each Interest Owner with respect to its representations, warranties, covenants and indemnifications contained in this Contract shall be
limited to a percentage of the total liability of the Interest Owners with respect thereto equal to such Interest Owner’s percentage interest in the Company. 
 8.10 Contingent Reserve for Claims. Contingent reserves shall be established for the purposes and in the amounts specified below: 
 (a) Notwithstanding anything contained in this Contract to the contrary, at the Closing, Buyer shall be entitled to hold in reserve from
the Purchase Price the sum of One Hundred Thousand Dollars ($100,000) (the “Post-Closing Reserve”) to pay for any Post-Closing Claims (as hereinafter defined) under this Contract, as such sum may be reduced as hereinafter provided.
For purposes of this Section 8.10, “Post-Closing Claims” shall mean any post-closing claim by Buyer under this Contract, including (i) all claims under Section 8.8(a) hereof, (ii) all adjustments under Article
XII thereof and (iii) all other obligations of the Interest Owners thereunder that survive Closing, but only if such claim is asserted by Buyer within six (6) months after the Closing under this Purchase Contract (the “Post-Closing
Claim Period”). Except to the extent any Post-Closing Claims remain outstanding, any funds remaining in the Post-Closing 

  

 34 

 
Reserve shall be paid to the Interest Owners upon the expiration of the Post-Closing Claim Period. 
 (b) Nothing contained in this Section 8.10 shall limit the personal liability of the Interest Owners for post-closing claims under
this Purchase Contract to the extent the same may exceed in the aggregate the Post-Closing Reserve or to the extent the same may be asserted by Buyer after any applicable Post-Closing Claim Period, subject to any other limitations and conditions set
forth in this Contract. 
 8.11 Tax Matters. Without the prior written consent of Buyer, neither the Company nor any of the Interest
Owners shall make or change any election, change an annual accounting period, adopt or change any accounting method, file any amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment relating to the Company, surrender
any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax claim or assessment relating to the Company, or take any other similar action relating to the filing of any Tax Return or the
payment of any Tax, if such election, adoption, change, amendment, agreement, settlement, surrender, consent or other action would have the effect of increasing the Tax liability of the Company for any period ending after the Closing Date or
decreasing any Tax attribute of the Company existing on the Closing Date. 
 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 representations and
warranties of the Company and each Interest Owner 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) Buyer shall have received all of the instruments listed in Section 10.2. 
 (c) The Company and each Interest Owner shall have performed, observed and complied in all material respects with all of the covenants,
agreements, closing requirements 

  

 35 

 
and conditions required by this Contract to be performed, observed and complied with by the Company and each Interest Owner, as and when required hereunder.

 (d) The Lender, if any, shall have consented to the Contemplated Transactions upon terms and conditions satisfactory to
Buyer, and all other Third Party Consents in form and substance satisfactory to Buyer shall have been obtained and furnished to Buyer. 
 (e) The Existing Management Agreement and the Existing Franchise Agreement shall have been terminated. The New Manager and the Company shall have entered into the New Management Agreement. The Franchisor and the
Company shall have entered into the New Franchise Agreement on terms and conditions acceptable to Buyer in its sole discretion and in any event upon financial terms that are no less favorable than the Existing Franchise Agreement. 
 (f) The Company shall have no employees and shall neither maintain nor have an obligation to contribute to any Employee Plan. 

9.2 Interest Owner’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to the Interest Owner’s right
to cancel this Contract during the Review Period, the duties and obligations of the Interest Owners 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 the Interest Owners, the Interest Owners shall have the right at their option to declare this Contract terminated and null and void, in which case the remaining 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. 
 (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) The Interest Owners 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) Buyer shall have received the consents of the Franchisor to the termination of the Existing Management Agreement and the Existing
Franchise Agreement. 
  

 36 

 ARTICLE X 
 CLOSING AND CONVEYANCE 
 10.1 Closing. Unless otherwise agreed by Buyer and the Interest
Owners, the Closing on the Property shall occur on a date selected by Buyer that is not later than fifteen (15) Business Days after expiration of the Review Period, provided that all conditions to Closing hereunder have been satisfied. Buyer
will provide Interest Owners at least five (5) days prior written notice of the Closing Date selected by Buyer. 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 the Interest Owners, is referred to in this Contract as the “Closing Date” for the Property. The Closing shall be held at 10:00 a.m. at the offices of the Title Company, or as otherwise determined by Buyer and the Interest
Owners. 
 10.2 Interest Owners’ Deliveries. At Closing, the Interest Owners or the Company, as applicable, shall deliver to
Buyer the following, and, as appropriate, all instruments shall be properly executed and conveyance instruments shall 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 the Interest Owners prior to such Closing). 
 (a) An assignment or assignments duly
executed and acknowledged transferring to Buyer all of the Interests, free and clear of Interest Liens, in form and substance acceptable to Buyer; 
 (b) Resignations of all officers, managers, directors and other agents of the Company; 
 (c)
The original Organizational Documents of the Company, including the articles of organization or articles of incorporation certified by the appropriate official of the state in which the Company is organized or incorporated, and a certificate issued
by such official that the Company is in valid existence and good standing as of the Closing Date; 
 (d) Certified copies of
resolutions and/or other evidence reasonably satisfactory to Buyer that the person or persons executing the closing documents on behalf of the Company and the Interest Owners have full right, power and authority to do so, along with a certificate of
good standing of each Interest Owner that is an entity from the state in which Interest Owner is organized or incorporated; 
 (e) To the extent not previously delivered to and in the possession of Buyer, all Contracts, Plans and Specs, all Warranties and all keys for the Hotel (which keys shall be properly tagged for identification); 
 (f) A closing statement to evidence the parties’ agreement regarding the allocations, pro-rations and hold-backs relating to the
Property, the payment of closing costs as allocated hereunder, and any resulting adjustment of the Purchase Price; 
  

 37 

 (g) Evidence satisfactory to Buyer of the termination of the Existing Management
Agreement and the Existing Franchise Agreement and execution and delivery by the New Manager of the New Management Agreement; 
 (h) 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 for issuance of an
Owner’s Policy of Title Insurance to the Company insuring good and marketable fee simple absolute title (or leasehold title if so identified in Item 4 of Schedule 1) to the Real Property constituting part of the Property,
subject only to the Permitted Exceptions in the amount of the Purchase Price, together with an nonimputation endorsement; and 
 (i) Such other instruments as are contemplated by this Contract to be executed or delivered by the Company or any Interest Owner, or reasonably required by Buyer or the Title Company, or customarily executed in the jurisdiction in which the
Hotel is located, to effectuate the assignment of all of the Interests to Buyer and the other Contemplated Transactions, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles, and interests in the Company
and the Company will own good and marketable fee simple title to the Land and the Hotel in accordance with this Contract. 
 10.3
Buyer’s Deliveries. On or prior to the Closing Date, Buyer shall pay the Interest Owners the Purchase Price, as adjusted pursuant to this Contract, and shall deliver or cause to be delivered to the Interest Owners the following
agreements, documents and other items, which shall be in form and substance reasonably satisfactory to the Interest Owners: 
 (a) a closing statement to evidence the parties’ agreement regarding the allocations, pro-rations and hold-backs relating to the Property, the payment of closing costs as allocated hereunder, and any resulting adjustment of the
Purchase Price; and 
 (b) such additional documents as might be reasonably requested by the Interest Owners to evidence
Buyer’s authority to consummate the purchase of the Interests from the Interest Owners. 
 10.4 Tax Matters. The following
provisions shall govern the allocation of responsibility as between Buyer and Sellers for certain tax matters following the Closing Date: 
 (a) Tax Indemnification. Each of the Interest Owners shall indemnify Buyer, and hold it harmless from and against (without duplication), any loss, claim, liability, expense, or other damage attributable to
(i) all Taxes (or the non-payment thereof) of the Company for all taxable periods ending on or before the Closing Date and the portion through the end of the Closing Date for any taxable period that includes (but does not end on) the Closing
Date (“Pre-Closing Tax Period”), and (ii) any and all Taxes of any person (other than the Company) imposed on the Company as a transferee or successor, by contract or pursuant to any law, rule, or regulation, which Taxes relate
to an event or transaction occurring before the Closing. 
  

 38 

 (b) Straddle Period. In the case of any taxable period that includes (but does not
end on) the Closing Date (a “Straddle Period”), the amount of any Taxes based on or measured by income or receipts of the Company for the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of the
close of business on the Closing Date (and for such purpose, the taxable period of any partnership or other pass-through entity in which the Company holds a beneficial interest shall be deemed to terminate at such time) and the amount of other Taxes
of the Company for a Straddle Period that relates to the Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction the numerator of which is the number of days in the taxable period
ending on the Closing Date and the denominator of which is the number of days in such Straddle Period. 
 (c)
Responsibility for Filing Tax Returns. Buyer shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Company that are filed after the Closing Date. Buyer shall permit the Interest Owners to review and
comment on each such Tax Return described in the preceding sentence prior to filing. 
 (d) Cooperation on Tax Matters.

 (i) Buyer, the Company, and the Interest Owners shall cooperate fully, as and to the extent reasonably requested by the
other Party, in connection with the filing of Tax Returns pursuant to this section and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the other Party’s request) the
provision of records and information that are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material
provided hereunder. The Interest Owners agree (A) to retain all books and records with respect to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date until the expiration of the statute of
limitations (and, to the extent notified by Buyer or the Company or Interest Owners, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and (B) to
give Buyer reasonable written notice prior to transferring, destroying or discarding any such books and records and, if Buyer so requests, the Interest Owners shall allow Buyer to take possession of such books and records. 
 (ii) Buyer, the Company, and the Interest Owners further agree, upon request, to use their best efforts to obtain any certificate or other
document from any governmental authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including, but not limited to, with respect to the transactions contemplated hereby). 
  

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 (iii) Buyer, the Company, and the Interest Owners further agree, upon request, to provide
the other Party with all information that either Party may be required to report pursuant to Code §6043 and all Treasury Regulations promulgated thereunder. 
 (e) Survival. The provisions of this Section 10.4 shall survive the Closing for a period ending on the later of
(i) three (3) years following the date on which the Company files its Tax Return for the tax period ended December 31, 2006 or (ii) the expiration of any applicable statute of limitations that may be extended. 
 ARTICLE XI 
 COSTS 
 All Closing costs shall be paid as set forth below: 
 11.1 Interest Owner’s Costs. Interest Owners shall be responsible for all transfer, recordation, sales, use, income, bulk transfer taxes or like taxes in connection with the sale of the Interests hereunder and for all sales and
use, hotel occupancy and other taxes of the Company or the Hotel for the period prior to Closing. Interest Owners shall be responsible for all costs related to the termination of the Existing Management Agreement and the Existing Franchise
Agreement. Interest Owners shall also be responsible for the costs and expenses of their and the Company’s attorneys, accountants, appraisers and other professionals, consultants and representatives. Interest Owners shall also be responsible
for payment of all prepayment penalties, premiums and other charges or amounts payable in connection with the pay-off of any Property Liens encumbering the Property, other than Property Lien securing the Assumed Loan, if any. Interest Owners shall
be responsible for all costs to complete all PIP improvements required by the Franchisor to the extent provided in Schedule 2. 
 11.2
Buyer’s Costs. In connection with the purchase of the Interests 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. Buyer shall be responsible for costs related to the execution of the New Franchise Agreement. Buyer shall also be responsible for assumption and legal fees in connection with
the approval by the Lender, if any, of Buyer’s purchase of the Interests, and for any renovation costs to the extent provided in Schedule 2. The Company and the Interest Owners shall use commercially reasonable efforts, and shall fully
cooperate with Buyer, to obtain the approval of the Lender, if any, of Buyer’s purchase of the Interests. 
  

 40 

 ARTICLE XII 
 ADJUSTMENTS 
 12.1 Adjustments. Unless otherwise provided herein, at Closing, adjustments
between the parties shall be made as of 12:01 a.m. on the Closing Date (the “Cutoff Time”), with the income and expenses accrued prior to the Closing Date being allocated to the Interest Owners and the income and expenses accruing
on and after the Closing Date being allocated to Buyer, as if the Contemplated Transactions were a transfer of the Hotel rather than a transfer of the Interests, all as set forth below. Subject to the foregoing and except as otherwise expressly
provided herein, all apportionments and adjustments shall be made on an accrual basis in accordance with the Uniform System of Accounts for the Lodging Industry (9th Revised Edition) published by the American Hotel & Lodging Association. 
 (a) Taxes. All real estate taxes, personal property taxes, or any other taxes and special assessments (special or otherwise) of any nature upon 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 tax bills or assessment statements for such calendar year are available, such amounts shall be estimated on the
basis of the best available information for such taxes and assessments that will be due and payable on the Hotel for the calendar year in which Closing occurs. 
 (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 the Interest Owners. Charges accruing after the Cutoff Time shall be allocated to Buyer. 
 (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 the Interest Owners as of the Cutoff Time. 
 (d) Accounts. The Interest Owners shall be entitled to retain the Hotel’s working capital account and to withdraw all funds contained therein as of the Cutoff Time. The Interest Owners shall receive a
credit in the amount of the aggregate balance as of the Cutoff Time in the FF&E reserve account and escrow accounts (including all PIP accounts and all amounts held in tax and insurance escrow accounts), plus the amount of all utility deposits,
petty cash, cash in cash registers and cash in vending machines, all of which accounts and cash shall remain with the Company after the Closing. All other accounts, reserves and escrows, if any, held by the Company or by the Existing Manager, any
Lender or any other Person on the Company’s behalf shall remain the property of the Company and be credited to Buyer, without additional charge to Buyer and without Buyer being required to fund the same. 
 (e) Room Revenues. All revenues from guest room rentals and other suite revenues for the period before the Closing Date shall be
allocated to the Interest Owners, and all 

  

 41 

 
such revenues for the period after the Closing Date shall be allocated to the Buyer. All such revenues for the night in which the Cutoff Time occurs shall be
credited to the Interest Owners, but the Interest Owners shall provide the Buyer credit at Closing equal to the reasonable expenses to be incurred to clean such guests’ rooms. 
 (f) Employee Costs. Except as provided in (e) above, all wages and other costs for housekeeping and Hotel personnel shall be
prorated between Buyer and the Interest Owners as of the Cutoff Time. 
 (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. Accounts receivable and credit card claims as of the Cutoff Time shall be transferred to the Interest
Owners and shall not be a credit to the Interest Owners at Closing. The Interest Owners and Buyer agree, and Buyer shall instruct the New Manager, that the monies received from debtors owing such accounts receivable balances after Closing shall be
payable to the Interest Owners. 
 (i) Accounts Payable. Any indebtedness, accounts payable, liabilities or obligations
of any kind or nature related to the Company or the Property for the periods prior to the Cutoff Time shall be allocated to the Interest Owners, 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 the Interest Owners 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 be credited to the Interest Owners, 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 the Interest Owners and Buyer at Closing. 
 (k) Interest on Assumed Loan. In the case of an Assumed Loan, if any, the accrued and unpaid interest thereon shall be prorated as of the Cutoff Time. 
 12.2 Reconciliation and Final Payment. The Interest Owners and Buyer shall reasonably cooperate after Closing to make a final determination of the
allocations and prorations required under this Contract within sixty (60) days after the Closing Date. 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. 
  

 42 

 12.3 Employees. Unless Buyer expressly agrees otherwise, none of the employees of the Company
shall become employees of Buyer as of the Closing Date; instead, such employees shall be terminated by the Company and shall be rehired as employees of the New Manager with all seniority, wages and benefits of each employee transferring with each
employee to the New Manager. Neither the Company nor the Interest Owners shall 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 parties having agreed that a mass layoff, as that term is defined in 29 U.S.C., Section 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, health care continuation 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 not in any way become the legal obligation of Buyer or the Company but shall be charged to the Interest Owners for the purposes of the adjustments to be made as of
the Cutoff Time, and neither the Company nor Buyer shall have any liability therefor, nor shall either the Company or Buyer be liable for any contributions, fees, premiums, expenses, penalties or other payments required as a result of such
employees’ employment by the Company and/or coverage under any Employee Plan of the Company before the Closing. All liability for wages, salaries and benefits of the employees accruing in respect of and attributable to the period from and after
the Cutoff Time shall be charged to the New Manager and reimbursed by the Company to the New Manager to the extent required under the New Management Agreement. 
 ARTICLE XIII 
 CASUALTY AND CONDEMNATION 
 13.1 Risk of Loss; Notice. Prior to Closing and the sale of the Interests to Buyer in accordance with this Contract, all risk of loss to the
Property (whether by casualty, condemnation or otherwise) shall be borne by the Interest Owners. 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) the
Company receives notice that a governmental authority has initiated or threatened to initiate a condemnation proceeding affecting the Hotel, the Interest Owners 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 sale of the Interests 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 the Company of its election within twenty (20) days after the date the Interest Owners have delivered to 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 

  

 43 

 
obligation or liability to the other under this Contract. In the context of condemnation, “substantial” shall mean condemnation of such portion of
the Hotel (or access thereto) as could, in Buyer’s reasonable judgment, render use of the remainder impractical or unfeasible for the uses herein contemplated, 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, all insurance proceeds or condemnation awards which the Company has received as a result of the same,
plus an amount equal to the insurance deductible shall be paid or credited to Buyer, and all insurance proceeds and condemnation awards payable as a result of the same shall be paid or credited to Buyer, in which event the Closing shall occur
without replacing or repairing such damage. In the case of damage or casualty, at Buyer’s election, the Property shall be repaired and restored to its condition immediately prior to such damage or casualty, and all excess insurance proceeds
shall be credited to Buyer. 
 ARTICLE XIV 
 DEFAULT REMEDIES 
 14.1 Buyer Default. If Buyer defaults under this Contract after the Review
Period, and such default continues for ten (10) days following written notice from the Company (provided no notice shall extend the time for Closing), then at the election of a majority of the Interest Owners 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 Interest Owners as the sole and exclusive remedy of the Interest Owners and the Company
hereunder, as liquidated damages for Buyer’s default or failure to close, and both Buyer and the Interest Owners shall thereupon be released from all obligations hereunder. 
 14.2 Interest Owner/Company Default. If any Interest Owner or (before the Closing) the Company defaults under this Contract, and such default
continues for ten (10) days following written notice from Buyer, Buyer may elect, as Buyer’s sole and exclusive remedy, either (i) to terminate this Contract by written notice to the Company delivered 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, and thereafter both the Buyer and the Interest Owners 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 the Company delivered at any time prior to the completion of such cure, in which event the Buyer
shall have the right to an action against the Interest Owners and/or the Company for damages, specific performance and all other rights and remedies available at law or in equity. 
 14.3 Attorney’s Fees. Anything to the contrary herein notwithstanding, if it shall be necessary for either the Buyer or the Interest Owners
to employ an attorney to enforce its rights 

  

 44 

 
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. 
 ARTICLE XV 
 NOTICES 
 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: 
  

			
	 If to Buyer:
	  	 Apple Seven Hospitality Ownership, Inc.
 814 East Main
Street
 Richmond, Virginia 23219
 Attention: Justin G. Knight,
President
 Fax No.: (804) 727-6350

		
	 with a copy to:
	  	 Apple Seven Hospitality Ownership, Inc.
 814 East Main
Street
 Richmond, Virginia 23219
 Attention: Legal
Dept.
 Fax No.: (804) 727-6349

		
	 If to the Company,
 the Interest Owners:
	  	 Managing Member or President identified in Item 2(c) of Schedule 1
 c/o Larry Blumberg & Associates, Inc.
 2733 Ross Clark Circle
 P.O. Box 5566, Dothan, Alabama 36302
 Attn: Barry Kraselsky
 Fax No.: (334) 671-1356

		
	 with a copy to:
	  	 Johnston, Hinesley, Flowers, Clenney & Turner, P.C.
 Post Office Box 2246 (36302)
 291 North Oates Street
 Dothan, Alabama 36303
 Attn: William W. Hinesley
 Fax
No.: (334) 793-6603

  

 45 

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

 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. 
 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 the parties hereto with respect to the subject matter hereof. No modification of this Contract shall be binding unless signed by the parties hereto. 
 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 Commonwealth of Virginia (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, none of Buyer, any Interest Owner or the Company shall 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 those Persons necessary for a party to meet its obligations hereunder, including their respective legal counsel, consultants and agents, the
Existing Manager, the New Manager, the Franchisor, the Lender (if any) and the Title Company and except as necessitated by Buyer’s Due Diligence Examination and/or shadow management, unless both Buyer and the Company agree in writing 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. 
 16.7 Closing Documents. To the extent any
Closing documents are not attached hereto at the time of execution of this Contract, Buyer and the Company shall negotiate in good faith with respect to the form and content of such Closing documents prior to Closing. 
  

 46 

 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. 
 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 the Interest Owners 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 Intentionally
Omitted. 
 16.12 Further Acts. In addition to the acts, instruments and agreements recited herein and contemplated to be
performed, executed and delivered by Buyer and the Interest Owners, Buyer and the Interest Owners 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. 
 16.13 Joint and Several Obligations. If any Interest Owner 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 such Interest Owner under this Contract. 
 ARTICLE XVII 
 SUPPLEMENTAL PROVISIONS 
 All of the
terms, conditions, representations, warranties, covenants and other provisions, if any, set forth in the supplemental provisions attached hereto as Schedule 2 (the “Supplemental Provisions”) are hereby incorporated into this
Contract and shall be considered a part hereof. In the event of any conflict or inconsistency between the Supplemental Provisions and the other provisions of this Contract, the Supplemental Provisions shall control. 
 [Signatures Begin on Following Page] 
  

 47 

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

	
	INTEREST OWNERS:
	
	/s/ Larry Blumberg
	Larry Blumberg
	
	/s/ John H. Watson
	 Watson & Downs Investments, L.L.C.
 By: John
H. Watson, Its Manager

	
	/s/ Robert Hayne Hollis, III
	Robert Hayne Hollis, III
	
	/s/ Richard Blumberg
	Richard Blumberg
	
	/s/ Barry Kraselsky
	Barry Kraselsky
	
	/s/ Helen B. Lifland
	Helen B. Lifland
	
	COMPANY:
	
	 SUNBELT – TALLAHASSEE, L.L.C., a
 Florida Limited
Liability Company

			
		
	By:	 	/s/ Larry Blumberg
	Name:	 	Larry Blumberg
	Title:	 	Its Manager

  

 48 

			
	BUYER:
	
	APPLE SEVEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation
		
	By:	 	/s/ Justin G. Knight
	Name:	 	Justin G. Knight
	Title:	 	Vice President

  

 49 

 SCHEDULE 1 
 HOTEL SPECIFIC DATA 
 1. Date of Purchase Contract: January 16, 2007 
 2. (a) Interest Owners: 
  

					
	 Interest Owner
	  	Percentage Interest	 	Tax
Identification No.
	 Larry Blumberg
	  	20.00%	 	
	 Richard Blumberg
	  	12.50%	 	
	 Helen B. Lifland
	  	  5.00%	 	
	 Watson & Downs Investments, L.L.C.
	  	25.00%	 	
	 Hayne Hollis
	  	25.00%	 	
	 Barry Kraselsky
	  	12.50%	 	

 (b) Company: Sunbelt-Tallahassee, L.L.C., a Florida Limited Liability Company 

3. Description of Hotel: 
  

	 	(a)	Name/Identification of Hotel: Tallahassee Fairfield Inn by Marriott 

  

	 	(b)	Number of Rooms: 79 

  

	 	(c)	Other Improvements/Amenities: Indoor heated swimming pool, whirlpool, exercise room, wireless high speed internet access 

 4. Ground Lease: N/A 
 5. Hotel Brand/Franchise: Fairfield
Inn & Suites by Marriott 
 6. Manager: LBAM – Investor Group, L.L.C. 
 7. Existing Management Agreement: Management Agreement between LBAM-Investor Group, L.L.C. and the Company dated May 31, 2001 
  

					
		  	1	  	 Purchase Contract
 Schedule 1 – Hotel Specific Data

 8. Franchisor: Marriott International, Inc. 
 9. Existing Franchise Agreement: Franchise Agreement between Sunbelt-Tallahassee, L.L.C. and Marriott International, Inc. dated October 23, 1995 
 10. Assumed Loan: $3,530,071.11 as of October 2, 2006 
 11.
Lender:     Wachovia Securities 
 NC 1075 
 8739 Research Drive 
 Charlotte, NC 28262-1075 
 Loan Number 31-0100039 
 12. Purchase Price: Six Million Six Hundred Forty-six Thousand Six Hundred Twenty and no/100 Dollars ($6,646,620.00) 
 13. Escrow Amount: $0.00 
  

			
	 Accounts Payable
	  	$0.00
	 Marriott Life Safety
	  	  0.00
	 Product
	  	  0.00
	 50%
	  	  0.00
		  	 
	 Total
	  	$0.00

  

					
		  	2	  	 Purchase Contract
 Schedule 1 – Hotel Specific Data

 SCHEDULE 2 
 SUPPLEMENTAL PROVISIONS 
 1. Liquor Licenses. The Interest Owners represent and warrant
that (i) the brand standard requirements of the Franchisor do not require the sale or complimentary service of alcoholic beverages at the Hotel, (ii) alcoholic beverages are not sold or otherwise served at the Hotel, and, (ii) the
Hotel as currently operated and in order to comply with the brand standard requirements of the Franchisor does not require any license, permit or other authorization of governmental authorities related to the sale or service of alcoholic beverages
and (iii) the Hotel, the Company and the Manager are in compliance in all material respects with all applicable laws and regulations relating to the sale or service of alcoholic beverages. 
 2. Allocation of Purchase Price. The Company, the Interest Owners and Buyer agree that the Purchase Price shall be allocated in the manner set
forth in Exhibit J attached hereto and that such parties shall file all Tax Returns (including amended returns and claims for refund) and information reports in a manner consistent with such allocation. 
  

					
		  	1	  	 Purchase Contract
 Schedule 2 – Supplemental Provisions

 SCHEDULE 2.5 
 PIP IMPROVEMENTS 
 N/A 
  

					
		  	1	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE 7.1(j) 
 LITIGATION 
 None 
  

					
		  	2	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE 7.1(l) 
 CONDEMNATION PROCEEDINGS 
 None 
  

					
		  	3	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE 7.1(m) 
 LEASES 
 None 
  

					
		  	4	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE 7.1(n) 
 TRADE MARKS and TRADE NAMES 
 Fairfield Inn by Marriott 
 Tallahassee, Florida 
  

					
		  	5	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE 7.1 (p)(iv) 
 TAX RETURNS 
 2003 through 2005 
 Federal Income Tax Returns 
 See Attached Schedule of Tax Returns

 e-mailed to Sam Reynolds 
 October 2, 2006 
 None of these returns were audited or under audit 
  

					
		  	6	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE OF TAX RETURNS 
  

															
	 Property
	  	 Entity
	  	2005	  	2004	  	2003
	  	  	Federal	  	State	  	Federal	  	State	  	Federal	  	State
	 Fairfield Inn & Suites Columbus
	  	Sunbelt – Columbus, LLC	  	X	  	AL/GA	  	X	  	AL/GA	  	X	  	AL/GA
	 Fairfield Inn Dothan
	  	Blumberg - Dothan Motel, LLC	  	X	  	AL	  	X	  	AL	  	X	  	AL
	 Fairfield Inn Tallahassee
	  	Sunbelt-Tallahassee, LLC	  	X	  	FL	  	X	  	FL	  	X	  	FL
	 Courtyard Lakeland
	  	Sunbelt – Lakeland, LLC	  	X	  	FL	  	X	  	FL	  	X	  	FL

  

					
		  	7	  	 Purchase Contract
 Exhibit A – Legal Description

 SCHEDULE 7.1(q) 
 INSURANCE 
 See Attached Certificate of Insurance 
  

					
		  	8	  	 Purchase Contract
 Exhibit A – Legal Description

 IMPORTANT 
 If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). 
 If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer
rights to the certificate holder in lieu of such endorsement(s). 
 DISCLAIMER 
 The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and
the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. 
 ACORD 25-S
(2001/08) 2 of 3             #M277228 
  

					
		  	9	  	 Purchase Contract
 Exhibit A - Legal Description

 DESCRIPTIONS (Continued from Page 1) 
 Marriott -12260 Morris Bridge Road, Temple Terrace, FL 33637 
  

	2.	Sunbelt -Tallahassee, LLC dba Tallahassee Fairfield Inn by Marriott 

 3211 North Monroe Street, Tallahassee, FL 32303. 
  

	3.	Sunbelt -Columbus, LLC dba Columbus Fairfield Inn & Suites by Marriott 

 4510E Armour Road, Columbus, GA 31909 
  

	4.	Blumberg - Dothan Motel, LLC dba Dothan Fairfield Inn by Marriott 

 3038 Ross Clark Circle, Dothan, AL 36301 
 Business Income is Actual Loss Sustained. 
 AMS 25.3 (2001/08) 3 of 3             #M277228 
  

					
		  	10	  	 Purchase Contract
 Exhibit A - Legal Description

 EXHIBIT A  
 LEGAL DESCRIPTION 
  

					
		 	 R990070259
 RECORDED IN
 PUBLIC RECORDS LEON CNTY FL
 BOOK: R2291          PAGE: 00613      
 AUG 30 1999 11:19 AM
 DAVE LANG, CLERK OF COURTS
	  	Illegible

 Part of Lots 445, 446 and 447 of the Supplementary Map of the Plantation of the Florida Pecan Endowment
Company, a subdivision as per map or plat thereof recorded in Plat Book 1, page 4 of the Public Records of Leon County, Florida, and being more particularly described as follows: 
 Begin at a re-rod marking the Northeast corner of Lot 447 of the Supplementary Map of the Plantation of the Florida Pecan Endowment Company, a subdivision as per map or plat thereof, recorded in Plat Book 1, Page
4, of the Public Records of Leon County, Florida, and thence run South 00 degrees 09 minutes 40 seconds East along the Easterly boundary of said Lot 447 a distance of 191.05 feet to a concrete monument on the Northerly right-of-way boundary of U. S. Highway No. 27 (State Road No.
63), said concrete monument lying on a curve concave to the Southwesterly, thence run Northwesterly along said
right-of-way boundary and along said curve with a radius of 5779.65 feet, thru a central angle of 03 degrees 43 minutes 05 seconds for an arc distance of 375.05 feet, the chord of said arc being North 58 degrees 58 minutes 25 seconds West 374.98
feet to a concrete monument, thence run North 19 degrees 57 minutes 01 seconds East 585.93 feet, thence run South 72 degrees 28 minutes 11 seconds East 125.06 feet to a concrete monument, thence run South 00 degrees 09 minutes 40 seconds East along
the Easterly boundary of Lots 445 and 446 of said Supplementary Map of the Plantation of the Florida Pecan
Endowment a distance of 515.61 feet to the POINT OF BEGINNING. Situate, lying and being in Section 15, Township 1 North, Range 1 West, Leon County, Florida. 
  

					
		  	11	  	 Purchase Contract
 Exhibit A - Legal Description

 EXHIBIT B 
 LIST OF FF&E 
  

							
	 AREA
	  	 ITEM
	  	 DESCRIPTION
	  	 QUANTITY

	 LOBBY/BREAKFAST
	  	Sofa	  	Upholstered	  	1
		  	Chairs	  	Upholstered	  	2
		  		  	Upholstered	  	2
		  		  	Breakfast	  	28
		  	Tables	  	Breakfast Tables	  	10
		  		  	Cocktail Table	  	1
		  		  	End Tables	  	3
		  	Television	  	25” Phillips	  	1
		  	Booster Chairs	  		  	2
		  	High Chairs	  		  	2
		  	Drapes	  		  	3
				
	 KITCHEN
	  	Refrigerator	  	True Model T23	  	2
		  	Freezer	  	True Model T23	  	2
		  	Microwave	  	Amana	  	1
		  	Ice Machine	  	Manitowoc Series 320	  	1
		  	Coffee Makers	  	Douwe Egbert	  	1
		  	Toasters	  	Hobart	  	1
				
	 GM OFFICE
	  	Desk	  	1 desk	  	1
		  	Desk Chair	  	1 desk chair	  	1
		  	Other Chairs	  	2 arm chairs	  	2
		  	Bookcases	  	1 bookcase	  	1
		  	Computer	  	Dell Laptop	  	1
				
	 BACK OFFICE
	  	Chairs	  		  	1
		  	Computer	  	Fosse terminals	  	2
		  	Copier	  		  	1
		  	Timeclock Computer	  		  	1

  

					
		  	1	  	 Purchase Contract
 Exhibit B – List of FF&E

							
		  	Drop Safe	  		  	1
				
	 FRONT DESK
	  	Computers	  	2 computers – Fosse Terminals	  	2
		  	Telephone Switchboard	  	1 Mitel super console 1000	  	1
		  	Adding Machine	  	Three	  	3
		  	Safe Deposit Boxes	  	17 safe deposit boxes	  	17
		  	Fax Machine	  	One	  	1
		  	Security Equipment (all)	  	Monitors	  	1
		  		  	Cameras	  	5
		  		  	DVR	  	1
		  	TDD Equipment	  		  	1
		  	Key Card Equipment	  	Tesa HT20I	  	1
				
	 BUSINESS CENTER
	  	Computer	  	Dell	  	1
		  	Printer	  	HP	  	1
		  	Desk	  		  	1
		  	Desk Chair	  		  	1
				
	 LAUNDRY/LINEN STORAGE
	  	Washer	  	Unimac	  	1
		  	Dryers	  	Speed Queen	  	2
		  	Metro Carts	  		  	4
		  	Dirty Linen Carts	  		  	2
		  	Clean Linen Carts	  		  	2
		  	Linen Storage Shelves	  	Built-in	  	3
		  	Room Attendant Carts	  	Rubbermaid	  	6
		  	Vacuum Cleaners	  		  	8
		  	Rollaways	  		  	2
		  	Ozone Machine	  		  	2
		  	Wheelchair	  		  	1
		  	Cribs	  		  	4
		  	Extra Microwaves	  		  	4
		  	Extra Mini Refrigerators	  		  	4
		  	Extra Irons	  		  	6
		  	Extra Clock Radios	  		  	3

  

					
		  	2	  	 Purchase Contract
 Exhibit B – List of FF&E

							
		  	Extra Hairdryers	  		  	3
		  	Extra Coffee Makers	  		  	6
		  	Extra Telephones	  		  	6
				
	 MAINTENANCE SHOP
	  	Power Drill	  		  	1
		  	Furniture Dolly	  		  	1
		  	Shop Vac	  		  	1
		  	Steam Machine	  		  	1
		  	PM Cart	  		  	1
		  	Pressure Washer	  		  	1
		  	Back Up TV’s	  	PHILLIPS	  	2
		  	Back Up HVAC’s	  	GE	  	2
				
	 SWIMMING POOL AREA
	  	Lounge Chairs	  		  	8
		  	Straight Chairs	  		  	14
		  	Tables	  		  	2
		  	Umbrellas	  		  	2
		  	Ash/Trash Receptacles	  		  	2
				
	 EXERCISE ROOM
	  	Television	  		  	1
		  	Television Swivel	  		  	1
		  	Treadmill	  		  	2
		  	Bicycle	  		  	1
		  	Stair Climber	  		  	1
		  	Towel Rack & Hamper	  		  	1
				
	 CORRIDORS
	  	Tables	  		  	1
		  	Lamps	  		  	1
		  	Mirrors/Artwork	  		  	1
		  	Ice Machines	  	Manitowoc	  	3
		  	Luggage Carts	  		  	2

  

					
		  	3	  	 Purchase Contract
 Exhibit B – List of FF&E

							
				
	 GUESTROOMS
	  	Furniture	  	King Bedskirt / Scarf	  	60
		  		  	Double Bedskirt / Scarf	  	100
		  		  	Nightstand Medium Cherry	  	48
		  		  	Chair Task	  	79
		  		  	Headboard Double Medium Cherry	  	80
		  		  	Headboard King Medium Cherry	  	39
		  		  	Boxspring Double	  	81
		  		  	Mattress Double	  	81
		  		  	Boxspring King	  	78
		  		  	Mattress King	  	39
		  		  	Bedbase Double Brown	  	80
		  		  	Bedbase King Brown	  	39
		  		  	Bedframe Double/Queen	  	4
		  		  	Bedframe Queen/King	  	3
		  		  	Luggage Rack	  	79
		  		  	Nightstand 16" wide Medium Cherry	  	68
		  		  	Desk Medium Cherry	  	74
		  		  	Desk ADA	  	5
		  		  	Lounge Chair - Suite	  	12
		  		  	Table Coffee	  	12
		  		  	Chair Lounge	  	67
		  		  	Ottoman	  	67
		  		  	Nightstand 20” wide Medium Cherry	  	6
		  		  	Dresser Medium Cherry	  	76
		  		  	Sofa Bed	  	12
		  		  	Amoire Medium Cherry	  	12
		  		  	Mirror Vanity Framed	  	79
		  		  	Artwork	  	189
		  		  	TV - 25”	  	82
		  		  	Remote Control	  	86
		  		  	Swivel Mount	  	81
		  		  	Shower Curtain Almond 72x72	  	81
		  		  	Shower Curtain Hooks Clear Plastic	  	81
		  		  	Curved Shower Rod	  	79

  

					
		  	4	  	 Purchase Contract
 Exhibit B – List of FF&E

							
		  		  	Refrigerator Minibar Black/Grey	  	12
		  	HVAC	  	HVAC	  	79
		  	Lighting	  	Desk Lamp/Shade/Bulb	  	79
		  		  	End Table Lamp/Shade/Bulb	  	12
		  		  	Floor Lamp/Shade/Bulb	  	79
		  		  	Vanity Light	  	79
		  		  	Double Nightstand Lamp	  	40
		  		  	Single Nightstand Lamp	  	78
		  		  	Ceiling Fixture	  	79
		  	Small Appliances	  	Coffee Makers	  	79
		  		  	Iron	  	79
		  		  	Ironing Board	  	79
		  		  	Clock Radio	  	79
		  		  	Telephone	  	158
		  		  	Hairdryer	  	79
		  		  	Drapes: Side Panels, Sheer, Blackout, Fabric Cornice	  	79
				
	 MISCELLANEOUS
	  	Breakroom	  	Table	  	2
		  		  	Chairs	  	9
		  		  	Refrigerator	  	1
		  		  	Microwave	  	1
		  		  	Water Cooler	  	1
		  		  	Lockers	  	30
		  	Exterior	  	Ash/Trash	  	3
		  	Signage	  	Interior - package per Marriott Standards	  	1
		  		  	Exterior - 1 pylon, 2 building	  	3

  

					
		  	5	  	 Purchase Contract
 Exhibit B – List of FF&E

 EXHIBIT D 
 CONSENTS AND APPROVALS 
 Franchisor – Marriott International, Inc. 
 Lender – Wachovia Securities 
  

 1 

 EXHIBIT E 
 ENVIRONMENTAL REPORTS 
 Previously sent electronically on October 2, 2006 to 

Samuel F. Reynolds 
 Apple REIT Companies

 e-mail: sreynolds@applereit.com 
  

 1 

 EXHIBIT F 
 CLAIMS OR LITIGATION PENDING 
 None 
  

 1 

 EXHIBIT G 
 (Intentionally Omitted) 
  

 1 

 EXHIBIT H 
 (Intentionally Omitted) 

 EXHIBIT I 
 NEW MANAGEMENT AGREEMENT 
  

 2 

 EXHIBIT J 
 ALLOCATION OF PURCHASE PRICE 
 The purchase price of $ 6,646,620 will be allocated as follows: 
  

					
	 Class 1
	  	Land	  	$            
	 Class 2
	  	Building & Improvements	  	$            
	 Class 3
	  	Equipment & Personal Property	  	$            

  

 3Employment Agreement, dated as of January 25, 2007

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT, dated as of January 25, 2007, is between
WYETH, a Delaware corporation (the “Company”), and Robert Essner (the “Executive”). 
 W I T N E S S E T H : 
 WHEREAS, the Company desires to secure the continued services of the Executive as Chairman of its Board of Directors and Chief Executive Officer and the Executive desires to serve the Company in such capacities and, in connection therewith,
the Company and the Executive desire to enter into this agreement (the “Agreement”) to, among other things, set forth the terms of such continued employment; 
 WHEREAS, the Company further desires to secure the Executive’s assistance following the Executive’s termination of employment with litigation
or regulatory matters; and 
 WHEREAS the Company also further desires to secure an agreement from the Executive to refrain from competing
with the Company following his termination of employment. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants contained
herein and for other good and valuable consideration, the Company and the Executive hereby agree as follows: 
 1. Agreement to Employ;
Employment Period. Upon the terms and subject to the conditions of this Agreement, the Company hereby agrees to continue to employ the Executive, and the Executive hereby accepts such employment, for the period commencing the date hereof (the
“Commencement Date”) until such employment terminates in accordance with Section 5. The period during which the Executive is employed pursuant to this Agreement shall be referred to as the “Employment Period.”

 2. Position and Responsibilities. During the Employment Period, the Executive will serve as Chairman of the Board of Directors and
Chief Executive Officer of the Company, with such duties and responsibilities as are customarily assigned to individuals serving in such position and such other duties and responsibilities consistent therewith as may be specified by the Board of
Directors of the Company (the “Board”) from time to time. During the Employment Period, the Executive will devote all of his skill, knowledge and working time to the performance of his duties and responsibilities hereunder, except
for (i) reasonable vacation time and absence for sickness or similar disability and (ii) to the extent that 

 
it does not interfere with the performance of the Executive’s duties hereunder, (A) such reasonable time as may be devoted to service on
boards of directors and the fulfillment of civic responsibilities and (B) such reasonable time as may be necessary from time to time for personal financial matters. 
 3. Compensation and Incentives. 
 (a)
Base Salary. As compensation for the services performed by the Executive hereunder, during the Employment Period the Executive will be paid an annual base salary of $1,662,000. The Board or an authorized committee thereof will review the
Executive’s base salary at the same time it reviews the base salary of the Company’s other senior executives and, in the discretion of the Board or such authorized committee, may increase (but not decrease) such base salary from time to
time (as in effect from time to time, the “Base Salary”). Payment of the Base Salary payable under this Section 3(a) shall be deferred to the extent that the Executive so elects and as permitted under the terms of any deferred
compensation or savings plan that may be maintained or established by the Company. 
 (b) Annual Incentive Bonus. During the
Employment Period, the Executive will participate in the Company’s annual bonus plan as in effect from time to time for the Company’s senior executives (the “Executive Incentive Plan”), on a basis consistent with his
position within the Company. 
 (c) Long-Term Incentives. During the Employment Period, the Executive will participate in all
stock-based or other long-term incentive plans or programs as in effect from time to time for the Company’s senior executives (the “Equity Plans”), on a basis consistent with his position within the Company. 
 4. Benefits; Perquisites, Etc. 
 (a)
Benefits. During the Employment Period, the Executive will be provided all employee and senior executive benefits (other than severance benefits), including life, medical, dental and disability insurance, in accordance with the programs of
the Company then generally available to its senior executives, as the same may be amended and in effect from time to time. During the Employment Period, subject to generally applicable eligibility requirements, the Executive will also be entitled to
participate in all of the Company’s tax-qualified and non-qualified profit sharing, pension, retirement, supplemental retirement (e.g., SERP, excess and restoration plans), deferred compensation and savings plans and vacation policies then
generally available to its senior executives, as the same may be amended and in effect from time to time, on a basis consistent with the Executive’s then current period of service, compensation and position. 

 (b) Perquisites. During the Employment Period, the Executive will be entitled to participate in
all perquisite programs generally available from time to time to senior executives of the Company on the terms and conditions then prevailing under such programs. 
 (c) Business Expenses. The Company will reimburse the Executive for reasonable travel, lodging and meal expenses incurred by him in connection with his performance of services hereunder upon submission of
information required to be submitted under the Company’s policy for reimbursement of such business expenses. 
 5. Termination of
Employment. 
 (a) Termination as a result of Death or Disability. The Executive’s employment with the Company shall terminate
upon his death and the Company may terminate the Executive’s employment as a result of the Executive’s Disability (as defined below). In the event that the Executive’s employment terminates as a result of the Executive’s death or
Disability, the Executive shall only be entitled to the payments and benefits provided for in Section 5(f)(i) and Section 5(f)(ii). For purposes of this Agreement, “Disability” shall mean permanent and total disability as
such term is defined under Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), without regard to whether the Executive is subject to the Code. Any question as to the existence of the Executive’s
Disability upon which the Executive and the Company cannot agree shall be determined by a qualified independent physician selected by the Executive (or, if the Executive is unable to make such selection, such selection shall be made by any adult
member of the Executive’s immediate family or the Executive’s legal representative), and approved by the Company, said approval not to be unreasonably withheld. The determination of such physician shall be submitted in writing to the
Company and to the Executive and shall be final and conclusive for all purposes of this Agreement. 
 (b) Termination by the Company for
Cause. The Company may terminate the Executive’s employment for Cause. In the event of such a termination of employment, the Executive shall only be entitled to the payments and benefits provided for in Section 5(f)(i). For purposes of
this Agreement, “Cause” shall mean (i) the conviction of, or plea of guilty or nolo contendere to, a felony or (ii) the willful engaging by the Executive in gross misconduct that is materially and
demonstrably injurious to the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the members of the Board (excluding Executive to the extent that Executive serves on the Board) at a meeting of the Board called and held for such purpose (after reasonable notice to Executive and
an opportunity for the Executive, together with the Executive’s counsel, to be 

 
heard before the Board), finding that, in the good-faith opinion of the Board, the Executive was guilty of conduct set forth above in this Section 5(b)
and specifying the particulars thereof in detail. 
 (c) Termination Without Cause. The Company may terminate the Executive’s
employment hereunder Without Cause. In the event of such a termination of employment, the Executive shall only be entitled to the payments and benefits provided for in Section 5(f)(i), 5(f)(ii) and, subject to the terms and conditions set forth
therein, to the termination benefits described in Section 5(f)(iii). A termination “Without Cause” means a termination of the Executive’s employment by the Company other than as a result of death, Disability, Cause or
Retirement (as defined in Section 5(e)). 
 (d) Termination by the Executive. The Executive may terminate his employment with or
without Good Reason (as defined below). In the event of a termination by the Executive of his employment with Good Reason, the Executive shall only be entitled to the payments and benefits provided for in Section 5(f)(i) and 5(f)(ii) and,
subject to the terms and conditions set forth therein, to the termination benefits described in Section 5(f)(iii). In the event of a termination by the Executive of his employment without Good Reason, the Executive shall only be entitled to the
payments and benefits provided for in Section 5(f)(i) and 5(f)(ii). For the purpose of this Agreement, “Good Reason” shall mean the occurrence, without Executive’s written consent, of any of the following circumstances
unless such circumstances are cured prior to the date specified as the Date of Termination in the Notice of Termination given in respect thereof: 
 (i) the assignment to the Executive of any duties inconsistent with the Executive’s status as Chief Executive Officer of the Company or its subsidiaries, the Executive’s removal from his position as Chief
Executive Officer, or a substantial diminution in the nature or status of the Executive’s responsibilities; provided that, solely with respect to the events or circumstances provided in this clause (i), the Executive must provide the
Notice of Termination not later than 180 days following the date he had actual knowledge of the event constituting Good Reason; 
 (ii) a reduction by the Company in Executive’s Base Salary; 
 (iii) the relocation of the Executive’s
place of business to a location that increases the Executive’s commute by more than 35 miles compared to the Executive’s commute as in effect immediately prior to the date of such relocation; 
 (iv) the failure by the Company to pay to the Executive any portion of any installment of deferred compensation under any deferred
compensation program of the Company in which the Executive participated within seven days of the date such compensation is due; 

 (v) the failure of the Company to obtain a satisfactory agreement from any successor to
assume and agree to perform this Agreement, as contemplated in Section 11 hereof; or 
 (vi) any other material breach of
this Agreement by the Company. 
 (e) Retirement. Unless otherwise agreed to by the Executive and the Company, any termination of the
Executive’s employment by the Company or by the Executive after the Executive’s 65th birthday shall be
deemed a retirement hereunder (“Retirement”). In the event of such termination of employment, the Executive shall only be entitled to the payments and benefits provided for in Section 5(f)(i) and Section 5(f)(ii).

 (f) Payments Upon Terminations. 
 (i) All Terminations. Following any termination of the Executive’s employment hereunder (by the Executive or by the Company), the Company will pay the Executive his full Base Salary through the Date of
Termination and accrued but unpaid annual vacation (except that in the case of a termination for Cause, the Company shall only pay for accrued vacation time to the extent required by law). The Executive shall also retain all of his rights to
benefits provided for under the terms of the employee and executive benefit plans of the Company in which the Executive is a participant in accordance with and subject to the terms of such plans as in effect from time to time. 
 (ii) All Terminations Other Than For Cause. In the case of any termination of employment other than a termination for Cause, the
Executive shall be entitled to (A) payment of any earned but unpaid annual bonus for the year preceding the year in which termination occurs, (B) payment of a pro-rated annual bonus for the calendar year that includes the
Date of Termination, in an amount determined by the Compensation and Benefits Committee of the Board of Directors to represent the annual bonus the Executive would have received under the Executive Incentive Plan for such year had he remained
employed through the date such bonus would have been paid, multiplied by a fraction, the numerator of which is the number corresponding to the month in which the Date of Termination occurs and the denominator of which is 12, payable when such
bonuses are otherwise paid to the Company’s senior-most executives, (C) vesting of all outstanding time-based equity awards and, in the case of performance-based equity awards, vesting or payment, as the case may be if, to the
extent and when 

 
applicable performance targets are met, (D) retiree benefits payable in accordance with Company policy as in effect from time to time, including,
without limitation, retiree medical coverage and life insurance benefits, and (E) until the earlier to occur of (x) the Executive’s death and (y) the end of the Restriction Period (as defined in Section 6 and subject
to the Executive’s compliance with the terms of Sections 6, 7 and 8) and as consideration therefor, the Company shall provide the Executive the following: (1) reasonable home and personal security; (2) an office
commensurate with his status as former Chairman and Chief Executive Officer and continued secretarial support; (3) continued use of Company owned or leased aircraft, such usage not to interfere with the Company’s business need for
such aircraft and not to exceed 75 hours in any year (such hour usage to be determined regardless of the number of passengers in the aircraft during such usage); and (4) access to a Company-provided car and driver for personal use on an
occasional basis. If, as of the Date of Termination, the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(1) of the Code and the regulations thereunder, and the provision of any of the foregoing benefits
prior to the six month anniversary of the Date of Termination could result in adverse tax consequences to the Executive under Section 409A, the parties shall cooperate to restructure such benefits so that they are provided in a manner that
complies with Section 409A and that preserves to the maximum extent possible the intended economic benefit. 
 (iii)
Without Cause/For Good Reason. In the event of a termination of the Executive’s employment by the Company Without Cause or a termination by the Executive of his employment with Good Reason, subject to entering into a release of claims in
the form attached as Exhibit A, (A) the Company will pay to the Executive in a single lump sum an amount equal to two times the sum of (1) the Executive’s then-current Base Salary and (2) the average of the highest three annual
bonuses earned by the Executive under the Executive Incentive Plan in respect of each of the five (5) prior bonus years (exclusive of any special or prorated bonuses) immediately before the year of such termination and (B) the Company
shall for purposes of the Wyeth Supplemental Executive Retirement Plan and the Wyeth Executive Retirement Plan credit the Executive with two years’ additional service and age, such that under the terms of each such plan, the Executive shall be
treated as having continued in the employ of the Company through the second anniversary of his termination of employment by the Company Without Cause or a termination by the Executive of his employment with Good Reason. Accordingly, the assumptions
to be used in calculating Executive’s benefit under such plans are: (x) the Executive has continued in the employ of the Company for an additional two years after the Date of Termination, and (y) the Executive has earned annually from
the Date of 

 
Termination to the date of Executive’s assumed continued employment pursuant to clause (x) above the same compensation, as such term is defined in
the applicable plan document, Executive earned in the twelve (12) months preceding the Date of Termination. The payment provided for in Section 5(f)(iii)(A) shall be made promptly following the Date of Termination; provided that if,
as of the Date of Termination, the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(1) of the Code and the regulations thereunder, to the extent required thereunder, no such amounts shall be paid any
earlier than the first business day after the six-month anniversary of the Date of Termination. The benefits provided for in Section 5(f)(iii)(B) shall be paid in accordance with the Executive’s elections for payment of benefits under the
Wyeth Supplemental Executive Retirement Plan or the Wyeth Executive Retirement Plan, as applicable. 
 (g) Date of Termination. As
used in this Agreement, the term “Date of Termination” means (i) if the Executive’s employment is terminated by his death, the date of his death, (ii) if the Executive’s employment is terminated by the Company for
Cause, the date specified in the Notice of Termination, (iii) if the Executive terminates his employment without Good Reason or either party terminates the Executive’s employment in a Retirement, the date specified in the Notice of
Termination (which shall be no less than 90 days following the date of delivery of such Notice), and (iv) if the Executive’s employment is terminated by the Company Without Cause, as a result of the Executive’s Disability or by the
Executive with Good Reason, the date specified in the Notice of Termination (which shall be no less than 20 days and no more than 40 days following the date of delivery of such notice); provided that, during any period between the date of
delivery of the Notice of Termination and the Date of Termination, the Company may, in its discretion, remove the Executive from his director and executive officer positions with the Company and its subsidiaries and affiliates and relieve him of any
or all of his active duties, and any such action shall not serve as a basis for the Executive to terminate his employment for Good Reason. 
 (h) Notice of Termination. Any termination by the Company pursuant to Section 5(a), 5(b) or 5(c), or by Executive pursuant to Section 5(d), shall be communicated by a written Notice of Termination addressed to the other
party or parties to this Agreement. “Notice of Termination” shall mean a notice stating that the Executive’s employment hereunder has been or will be terminated, indicating the specific termination provisions in this Agreement
relied upon and setting forth in reasonable detail the facts and circumstances claimed to provide a basis for such termination of employment. In the event of a Notice of Termination delivered by the Company pursuant to Section 5(b) or the
Executive pursuant to Section 5(d), if the recipient of the Notice of Termination cures the circumstances giving rise to such notice within the time period provided for in Section 5(b) or Section 5(d), as 

 
the case may be, the party delivering such notice may rescind the Notice of Termination and, in the absence of such rescission, such notice shall be deemed a
Notice of Termination by the Company without Cause, or by the Executive without Good Reason, as the case may be. 
 (i) Resignation from
Board Memberships. Effective as of any Date of Termination under Section 5 or otherwise as of the date of the Executive’s termination of employment, the Executive shall (unless otherwise requested by the Board) resign, in writing, from
membership on the Board and the board of directors of any subsidiary or affiliate of the Company. 
 (j) No Obligation to Mitigate
Damages; No Offset. The Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise. No amounts paid to or earned by Executive following his
termination of employment with the Company shall reduce or be set off against any amounts payable to Executive under this Agreement. 
 6.
Non-Competition. During the period of the Executive’s employment with the Company or any of its subsidiaries or affiliates and thereafter during the five year period following any termination of the Executive’s employment (the
“Restriction Period”), the Executive shall not engage directly or indirectly in, become employed by, serve as an agent or consultant to, or become a partner, principal or stockholder of any partnership, corporation or other entity
that directly or indirectly competes with the business of the Company or any of its subsidiaries in any county within the United States or any comparable geographical area outside the United States in which the Company or any of its subsidiaries is
then engaged in such business; provided that the Executive’s passive ownership of less than 1% of the outstanding voting shares of any publicly held company, which otherwise would be prohibited under this Section 6, shall not
constitute competition with the Company. 
 7. Litigation Assistance. During the Restriction Period, the Executive agrees to provide
reasonable assistance to the Company and its counsel in regard to any regulatory matters or litigation pending at the time of termination of employment or subsequently initiated involving matters of which Executive has particular knowledge as a
result of Executive’s employment with the Company; provided that the Executive shall not be obligated pursuant to this Section 7 to provide assistance that would unreasonably interfere with the Executive’s business or personal
activities. Such assistance shall include, but is not limited to, answering any inquiries the Company may have or receive regarding the execution of Executive’s past duties at the Company, acting as a resource person in matters relevant to his
knowledge and experience with the Company, providing information and answers in response to interrogatories or other discovery, giving sworn 

 
statements and testifying in arbitrations, depositions and/or trials, and Executive committing to make himself available, upon reasonable notice, to meet
with the Company and its attorneys to adequately prepare for any and all proceedings associated with pending or threatened litigation or arbitration involving the Company. Executive shall not receive any additional compensation for rendering such
assistance. In the event that travel or other expenses are incurred by Executive in connection with such assistance or in the event his deposition is required, the reasonable travel costs and out-of-pocket expenses in connection therewith shall be
reimbursed by the Company. 
 8. Non-Solicitation, Confidentiality. During the period of the Executive’s employment, and
thereafter during the Restriction Period, the Executive shall not, directly or indirectly, (i) solicit or encourage any employee of the Company to leave the employment of the Company or (ii) solicit or otherwise attempt to establish for
himself or any other person, firm or entity any business relationship, respecting any business that is one of the businesses conducted by the Company or reasonably related thereto, with any person, firm or entity which, at any time during the
twelve-month period preceding the date of the Executive’s termination of employment, was a significant customer, client or distributor of the Company (in each case, excluding any end-user of a Company product (e.g. retail customer or client))
or any of its subsidiaries, except during the Executive’s employment with and on behalf of the Company. 
 At no time (whether during
the period of the Executive’s employment or at any time thereafter), shall the Executive, without the prior written consent of the Company, use, divulge, disclose or make accessible to any other person, firm, partnership, corporation or other
entity, any Confidential Information pertaining to the business of the Company or any of its affiliates, except (i) while employed by the Company, in the business of and for the benefit of the Company, or (ii) when required to do so by a
court of competent jurisdiction, by any governmental agency having supervisory authority over the business of the Company, or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order the Executive to
divulge, disclose or make accessible such information. For purposes of this Agreement, “Confidential Information” shall mean any trade secret or other non-public information concerning the financial data, strategic business plans,
product development (or other proprietary product data), customer lists, marketing plans and other non-public, proprietary and confidential information of the Company or its affiliates, that, in any case, is not otherwise available to the public
(other than by the Executive’s breach of the terms hereof) or known to persons in the industry generally. 
 9. Return of Documents
and Company Property. In the event of the termination of the Executive’s employment for any reason, the Executive will 

 
promptly deliver to the Company all non-personal documents and data of any nature and in whatever medium pertaining to the Executive’s employment with
the Company, or any of its subsidiaries or affiliates, (for which purpose, the Executive’s rolodex or other address book shall be considered personal) or any other property of the Company or any of its subsidiaries or affiliates and he will not
take with him any such property, documents or data of any description or any reproduction thereof, or any documents containing or pertaining to any Confidential Information. 
 10. Enforcement of Covenants. 
 (a)
Injunctive Relief. Executive acknowledges and agrees that the covenants, obligations and agreements of the Executive contained in Sections 6 and 8 relate to special, unique and extraordinary matters and that a violation of any of the terms of
such covenants, obligations or agreements will cause the Company irreparable injury for which adequate remedies are not available at law. Therefore, the Executive agrees that the Company will be entitled to an injunction, restraining order or such
other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain the Executive from committing any violation of the covenants, obligations or agreements referred to in
this Section 10(a). These injunctive remedies are cumulative and in addition to any other rights and remedies the Company may have. The Company and the Executive hereby irrevocably submit to the exclusive jurisdiction of the courts of the State
of the city of the Company’s headquarters and the Federal courts of the United States of America, in each case located in (or located nearest to) the city of the Company’s headquarters, solely in respect of the injunctive remedies set
forth in this Section 10(a) and the interpretation and enforcement of Sections 6, 8 and 10 solely insofar as such interpretation and enforcement relate to an application for injunctive relief in accordance with the provisions of this
Section 10(a), and the parties hereto hereby irrevocably agree that (i) the sole and exclusive appropriate venue for any suit or proceeding relating solely to such injunctive relief shall be in such a court, (ii) all claims with
respect to any application solely for such injunctive relief shall be heard and determined exclusively in such a court, (iii) any such court shall have exclusive jurisdiction over the person of such parties and over the subject matter of
any dispute relating to an application solely for such injunctive relief, and (iv) each hereby waives any and all objections and defenses based on forum, venue or personal or subject matter jurisdiction as they may relate to an application
solely for such injunctive relief in a suit or proceeding brought before such a court in accordance with the provisions of this Section 10(a). 
 (b) Forfeiture of Payments. Executive agrees that receipt of severance pay under Section 5(f)(iii) and the provision of the perquisites set forth in Section 5(f)(ii)(E) are conditioned upon
Executive’s compliance with Sections 6, 7 and 8. 

 
Executive further agrees that in the event of his failure to comply with the provisions of Sections 6, 7 and 8, (i) the Company shall be entitled
to discontinue further severance payments under Section 5(f)(iii) and (ii) the Company shall be entitled to recover from the Executive any payments made to the Executive under Section 5(f)(iii). The foregoing shall be in
addition to any other remedies or rights the Company may have at law or at equity as a result of the Executive’s failure to observe such provisions. 
 (c) Certain Acknowledgments. The Executive acknowledges and agrees that (i) the Executive has had and will have a prominent role in the management of the business, and the development of the
goodwill, of the Company and its subsidiaries and will establish and develop relations and contacts with the principal customers and suppliers of the Company and its subsidiaries in the United States of America and the rest of the world, all of
which constitute valuable goodwill of, and could be used by the Executive to compete unfairly with, the Company and its subsidiaries, (ii) in the course of his employment with the Company, the Executive will obtain Confidential
Information and trade secrets concerning the business and operations of the Company and its subsidiaries and affiliates in the United States of America and the rest of the world that could be used to compete unfairly with the Company and its
subsidiaries, (iii) the covenants and restrictions contained in this Agreement are intended to protect the legitimate interests of the Company and its affiliates in their respective goodwill, trade secrets and other Confidential
Information, (iv) the Executive desires to be bound by such covenants and restrictions, (v) such covenants are a material inducement for the Company to enter into this Agreement, and (vi) his economic means and
circumstances are such that the provisions of this Agreement, including the restrictive covenants in this Agreement, will not prevent him from providing for himself and his family on a basis satisfactory to him and them. 
 (d) Blue Pencil. It is the desire of the parties to this Agreement that the provisions of Sections 6 through 10, in particular, be interpreted and
enforced to the greatest extent possible (and consistent with Section 14(f)). 
 11. Assumption of Agreement. The Company will
require any successor (by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by agreement in form and substance reasonably satisfactory to the Executive, to expressly assume and
agree to perform the obligations of the Company under this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 
 12. Indemnification. The Company agrees that it shall indemnify and hold harmless the Executive to the fullest extent permitted by Delaware law
from and against any and all liabilities, costs and claims, and all expenses actually and 

 
reasonably incurred in connection therewith, including without limitation all costs and expenses actually and reasonably incurred in defense of litigation,
including attorneys’ fees, arising out of the employment of the Executive hereunder. Costs and expenses reasonably incurred by the Executive in defense of any such litigation, including attorneys’ fees, shall be paid by the Company in
advance of the final disposition of such litigation promptly upon receipt by the Company of (i) a written request for payment, (ii) appropriate documentation evidencing the incurrence, amount and nature of the costs and
expenses for which payment is being sought, and (iii) an undertaking adequate under Delaware law made by or on behalf of Executive to repay the amounts so paid if it shall ultimately be determined that Executive is not entitled to be
indemnified by the Company under this Agreement. The Company will insure the Executive, for the duration of his employment and service as a member of the Board, and thereafter, in respect of his acts and omissions occurring during such employment
and Board membership, under a contract of directors and officers liability insurance to the same extent as such insurance insures members of the Board with respect to services to the Company its affiliates or subsidiaries. 
 13. Entire Agreement. (a) Except as otherwise expressly provided or referred to herein, this Agreement constitutes the entire agreement among
the parties hereto with respect to the subject matter hereof, and all promises, representations, understandings, arrangements and prior agreements relating to such subject matter (including those made to or with the Executive by any other person or
entity) are merged herein and superseded in their entirety hereby. In the event of any inconsistency between the terms of this Agreement and any plan, program, practice or other agreement of the Company in which the Executive is a participant or a
party as of the Commencement Date, this Agreement will control unless the Executive and the Company otherwise agree in writing. 
 (b) For
the period commencing on a “Change in Control” within the meaning of the Severance Agreement, dated as of February 18, 1998, between the Company and the Executive or as defined in the Severance Agreement, dated as of August 8,
2006, between the Company and the Executive or any then-applicable successor agreement (the “Severance Agreement”) and ending on the third anniversary thereof, the Severance Agreement shall apply and supersede this Agreement except
that the Company shall be required to provide the benefits described in Section 5(f)(ii)(E) until the earlier to occur of (x) the Executive’s death and (y) the end of the Restriction Period (as defined in this Agreement)
following any termination of employment other than a termination under the Severance Agreement for Cause (as defined in the Severance Agreement), subject to the Executive’s compliance with the terms of Sections 6, 7 and 8 of this Agreement,
which shall be deemed incorporated into the Severance Agreement. 

 14. Miscellaneous. 
 (a) Binding Effect. This Agreement shall be binding on and inure to the benefit of the Company and its successors and permitted assigns. This Agreement shall also be binding on and inure to the benefit of the
Executive and his heirs, executors, administrators and legal representatives. If the Executive dies before all amounts payable to him hereunder have been paid, the unpaid amounts will be paid to his beneficiary designated by the Executive or, if
none (or otherwise not permitted), to his estate. 
 (b) Arbitration. Any dispute or controversy arising under or in connection with
this Agreement shall be settled exclusively by arbitration in accordance with the rules of the American Arbitration Association then in effect applicable to disputes involving employee and employer. Judgment may be entered on the arbitrator’s
award in any court having jurisdiction; provided that the Executive shall be entitled to seek specific performance of the Executive’s right to be paid until the Date of Termination during the pendency of any dispute or controversy
arising under or in connection with this Agreement. In the determination of the arbitrator’s award, the process shall follow the rules for “baseball arbitration”, as follows: each party to the dispute or controversy shall submit to
the arbitrator and exchange with each other, within the time agreed by the parties or prescribed by the arbitrator, written proposals, with each such party’s last, best offer for the amount of money damages they would offer or demand,
respectively, in settlement of all issues subject to the dispute or controversy. In rendering the award, the arbitrator shall be limited to selecting only one of the two proposals submitted by the parties, and the parties to such dispute or
controversy shall be required to accept the determination of the arbitrator, without rights to appeal such determination. In selecting the arbitrator, each of the Company and Executive would select one person to serve as arbitrator, who would have
to be accepted by the other party (such acceptance not to be unreasonably withheld). Once the two arbitrators had been selected, they would select a third arbitrator, who would have no affiliation to either of them or either party. And such third
arbitrator shall be the arbitrator who determines the claim presented for arbitration. 
 (c) Governing Law. This Agreement shall be
governed in all respects, including as to validity, interpretation and effect, by the internal laws of the State of New Jersey without giving effect to the conflict of laws rules thereof to the extent that the application of the law of another
jurisdiction would be required thereby, except that the validity, interpretation and effect of Section 12 (Indemnification) shall be governed by the laws of the State of Delaware. 
 (d) Taxes. The Company may withhold from any payments made under the Agreement all federal, state, city or other applicable taxes as shall be
required pursuant to any law, governmental regulation or ruling. 

 (e) Amendments. No provisions of this Agreement may be modified, waived or discharged unless such
modification, waiver or discharge is approved by the Board or a person authorized thereby and is agreed to in writing by the Executive and such officer as may be specifically directed by the Board. No waiver by any party hereto at any time of any
breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No waiver of any provision of this Agreement shall be implied from any course of dealing between or among the parties hereto or from any failure by any party hereto to assert its rights hereunder on any occasion or series of
occasions. 
 (f) Severability. It is the desire of the parties that the provisions of this Agreement shall be enforced to the fullest
extent permissible under applicable law. In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not be affected thereby. In the event that any of Sections 6, 7, 8, 9 or 10 is invalid, illegal or unenforceable in accordance with its terms, the Executive and the Company agree that such provisions shall be reformed to make
such sections enforceable, in a manner which provides the Company with the maximum rights permitted at law. 
 (g) Notices. Any notice
or other communication required or permitted to be delivered under this Agreement shall be (i) in writing, (ii) delivered personally, by courier service or by certified or registered mail, first-class postage prepaid and
return receipt requested, (iii) deemed to have been received on the date of delivery or on the third business day after the mailing thereof, and (iv) addressed as follows (or to such other address as the party entitled to
notice shall hereafter designate in accordance with the terms hereof): 
 (A) if to the Company, to it at: 
 Five Giralda Farms 
 Madison, New Jersey 07940 
 Attention: General Counsel 
 (B) if to Executive, to him at his last known home address as shown on the records of the Company. 
 (h) Survival. Sections 6 through and including 14 and, if Executive’s employment terminates in a manner giving rise to a payment under
Section 5(f), Section 5(f), shall survive the termination of the employment of Executive hereunder. 

 (i) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same instrument. 
 (j) Headings. The section and other headings
contained in this Agreement are for the convenience of the parties only and are not intended to be a part hereof or to affect the meaning or interpretation hereof. 
 (k) Assignment. Neither party may assign this Agreement without the consent of the other party except as provided herein except that the Company may assign this Agreement if it complies with Section 11.

 IN WITNESS WHEREOF, the Company has duly executed this Agreement by its authorized representative and the Executive has hereunto set his
hand, in each case effective as of the date hereof. 
  

			
	 WYETH

		
	By:	 	 /s/ Ivan Seidenberg
  

	Name:	 	Ivan Seidenberg
	Title:	 	Chairman, Compensation Committee of the Board of Directors
		
		 	 /s/ Robert Essner

		 	Robert Essner

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