Document:

Exhibit 10.5 -- Purchase contract dated June 5, 2008

 Exhibit 10.5 
 Tucson, AZ (Hilton Garden Inn) 
 PURCHASE CONTRACT 
 between 
 VALENCIA TUCSON, L.L.C.
(“SELLER”) 
 AND 
 APPLE NINE HOSPITALITY OWNERSHIP, INC. (“BUYER”) 
 Dated: June 5, 2008 

 PURCHASE CONTRACT 
 This PURCHASE CONTRACT (this “Contract”) is made and entered into as of June 5, 2008, by and between VALENCIA TUCSON,
L.L.C., a Kansas limited liability company (“Seller”) with a principal office at 10985 Cody, Suite 220, Overland Park, KS 66210 and APPLE NINE HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with its principal office at
814 East Main Street, Richmond, Virginia 23219, or its affiliates or assigns (“Buyer”). 
 RECITALS 

A. Seller is the fee simple owner of that certain 125-room hotel property commonly known as the Hilton Garden Inn Tucson Airport, located at 6575 S.
Country Club Road, Tucson, Arizona 85706 (the “Hotel”) identified in on Exhibit A attached hereto and incorporated by reference. 
 B. Buyer is desirous of purchasing the Hotel from Seller, and Seller is desirous of selling the Hotel to Buyer, for the purchase price and upon terms and conditions hereinafter set forth. 
 AGREEMENT: 
 NOW, THEREFORE, in
consideration of the foregoing Recitals, the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I 
 DEFINED TERMS

 1.1 Definitions. The following capitalized terms when used in this Contract shall have the meanings set forth below unless the
context otherwise requires: 
 “Additional Deposit” shall mean $150,000. 
 “Affiliate” shall mean, with respect to Seller or Buyer, any other person or entity directly or indirectly controlling (including but
not limited to all directors and officers), controlled by or under direct or indirect common control with Seller or Buyer, as applicable. For purposes of the foregoing, a person or entity shall be deemed to control another person or entity if it
possesses, directly or indirectly, the power to direct or cause direction of the management and policies of such other person or entity, whether through the ownership of voting securities, by contract or otherwise. 
 “Appurtenances” shall mean all rights, titles, and interests of a Seller appurtenant to the Land and Improvements, including, but not
limited to, (i) all easements, rights of way, rights of ingress and egress, tenements, hereditaments, privileges, and appurtenances in any way belonging to the Land or Improvements, (ii) any land lying in the bed of any alley, highway,
street, road or avenue, open or proposed, in front of or abutting or adjoining the Land, (iii) any strips or gores of real estate adjacent to the Land, and (iv) the use of all alleys, easements and rights-of-way, if any, abutting,
adjacent, contiguous to or adjoining the Land. 
  

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 “Brand” shall mean Hilton Garden Inn, the hotel brand or franchise under which the Hotel
operates. 
 “Business Day” shall mean any day other than a Saturday, Sunday or legal holiday in the Commonwealth of
Virginia. 
 “Closing” shall mean the closing of the purchase and sale of the Property pursuant to this Contract.

 “Closing Date” shall have the meaning set forth in Section 10.1. 
 “Contracts, Plans and Specs” shall mean all construction and other contracts, plans, drawings, specifications, surveys, soil reports,
engineering reports, inspection reports, and other technical descriptions and reports. 
 “Deed” shall have the meaning set
forth in Section 10.2(a). 
 “Deposits” shall mean, to the extent assignable, all prepaid rents and deposits
(including, without limitation, any reserves for replacement of FF&E and for capital repairs and/or improvements), refundable security deposits and rental deposits, and all other deposits for advance reservations, banquets or future services,
made in connection with the use or occupancy of the Improvements; provided, however, that to the extent Seller has not received or does not hold all of the prepaid rents and/or deposits attributable to the Leases related to the Property, Buyer shall
be entitled to a credit against the cash portion of the Purchase Price allocable to the Property in an amount equal to the amount of the prepaid rents and/or deposits attributable to the Leases transferred at the Closing of such Property, and
provided further, that “Deposits” shall exclude (i) reserves for real property taxes and insurance, in each case, to the extent pro rated on the settlement statement such that Buyer receives a credit for (a) taxes and premiums in
respect of any period prior to Closing and (b) the amount of deductibles and other self-insurance and all other potential liabilities and claims in respect of any period prior to Closing, and (ii) utility deposits. 
 “Due Diligence Examination” shall have the meaning set forth in Section 3.2. 
 “Earnest Money Deposit” shall have the meaning set forth in Section 2.6(a). 
 “Environmental Requirements” shall have the meaning set forth in Section 7.1(f) 
 “Escrow Agent” shall have the meaning set forth in Section 2.6(a). 
 “Escrow Agreement” shall have the meaning set forth in Section 2.6(b). 
 “Exception Documents” shall have the meaning set forth in Section 4.2. 
 “Existing Franchise Agreement” shall mean that certain franchise license agreement between the Seller and the Franchisor, granting to
Seller a franchise to operate the Hotel under the Brand. 
  

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 “Existing Management Agreement” shall mean that certain management agreement between the
Seller and the Existing Manager for the operation and management of the Hotel. 
 “Existing Manager” shall mean Tucson SW
Hotel Partners, L.P. 
 “FF&E” shall mean all tangible personal property and fixtures of any kind (other than personal
property (i) owned by guests of the Hotel or (ii) leased by Seller pursuant to an FF&E Lease) attached to, or located upon and used in connection with the ownership, maintenance, use or operation of the Land or Improvements as of the
date hereof (or acquired by Seller and so employed prior to Closing), including, but not limited to, all furniture, fixtures, equipment, signs and related personal property; all heating, lighting, plumbing, drainage, electrical, air conditioning,
and other mechanical fixtures and equipment and systems; all elevators, and related motors and electrical equipment and systems; all hot water heaters, furnaces, heating controls, motors and equipment, all shelving and partitions, all ventilating
equipment, and all disposal equipment; all spa, health club and fitness equipment; all equipment used in connection with the use and/or maintenance of the guestrooms, restaurants, lounges, business centers, meeting rooms, swimming pools, indoor
and/or outdoor sports facilities and other common areas and recreational areas; all carpet, drapes, beds, furniture, televisions and other furnishings; all stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen equipment and
utensils, tables, chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils. A current list of FF&E is attached hereto as Exhibit B. 
 “FF&E Leases” shall mean all leases of any FF&E and other contracts permitting the use of any FF&E at the Improvements that
are assumed by Buyer. 
 “Financial Statements” shall have the meaning set forth in Section 3.1(b). 
 “Franchisor” shall mean Hilton Hotels Corp. 
 “Hotel Contracts” shall have the meaning set forth in Section 10.2(d). 
 “Improvements” shall mean all buildings, structures, fixtures, parking areas and other improvements to the Land, and all related facilities. 
 “Indemnification Agreement” shall have the meaning set forth in Article XVII. 
 “Indemnified Party” shall have the meaning set forth in Section 8.8(c)(i). 
 “Indemnifying
Party” shall have the meaning set forth in Section 8.8(c)(i). 
 “Initial Deposit” shall have the meaning set
forth in Section 2.6(a). 
 “Land” shall mean, collectively, a fee simple absolute interest in the real property more
fully described in Exhibit A, which is attached hereto and incorporated herein by reference, together with all rights (including without limitation all air rights and development rights), alleys, streets, strips, gores, waters, privileges,
appurtenances, advantages and easements belonging thereto or in any way appertaining thereto. 
  

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 “Leases” shall mean all leases, franchises, licenses, occupancy agreements,
“trade-out” agreements, advance bookings, convention reservations, or other agreements demising space in, providing for the use or occupancy of, or otherwise similarly affecting or relating to the use or occupancy of, the Improvements or
Land, together with all amendments, modifications, renewals and extensions thereof, and all guaranties by third parties of the obligations of the tenants, licensees, franchisees, concessionaires or other entities thereunder. 
 “Legal Action” shall have the meaning set forth in Section 8.8(c)(ii). 
 “Licenses” shall mean all permits, licenses, franchises, utility reservations, certificates of occupancy, and other documents issued by
any federal, state, or municipal authority or by any private party related to the development, construction, use, occupancy, operation or maintenance of the Hotel, including, without limitation, all licenses, approvals and rights (including any and
all existing waivers of any brand standard) necessary or appropriate for the operation of the Hotel under the Brand. 
 “Liquor
Licenses” shall have the meaning set forth in Section 8.10. 
 “Manager” shall mean the management company
selected by Buyer to manage the Hotel. 
 “New Franchise Agreement” shall mean the franchise license agreement to be entered
into between Buyer and the Franchisor, granting to Buyer a franchise to operate the Hotel under the Brand on and after the Closing Date. 
 “New Management Agreement” means the management agreement to be entered into between Buyer and the Manager for the operation and management of the Hotel on and after the Closing Date. 
 “Other Property” shall have the meaning set forth in Section 16.14. 
 “Pending Claims” shall have the meaning set forth in Section 7.1(e). 
 “Permitted Exceptions” shall have the meaning set forth in Section 4.3. 
 “Personal Property” shall mean, collectively, all of the Property other than the Real Property. 
 “PIP” shall mean a product improvement plan for any Hotel, as required by the Existing Manager or the Franchisor, if any. 
 “Post-Closing Agreement” shall have the meaning set forth in Section 8.9. 
 “Property” shall mean, collectively, (i) all of the following with respect to the Hotel: the Land, Improvements, Appurtenances,
FF&E, Supplies, Leases, Deposits, Records, Service Contracts, Warranties, Licenses, FF&E Leases, Contracts, Plans and Specs, Tradenames, Utility Reservations, as well as all other real, personal or intangible property of Seller related to
any of the foregoing and (ii) any and all of the following that relate to or affect in any way the design, construction, ownership, use, occupancy, leasing, maintenance, service or operation of the Real Property, FF&E, Supplies, Leases,
Deposits or Records: Service Contracts, Warranties, Licenses, Tradenames, Contracts, Plans and Specs and FF&E Lease. 
  

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 “Purchase Price” shall have the meaning set forth in Section 2.2. 
 “Real Property” shall mean, collectively, all Land, Improvements and Appurtenances with respect to the Hotel. 
 “Records” shall mean all books, records, promotional material, tenant data, guest history information (other than any such information
owned exclusively by the Existing Manager), marketing 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 Seller’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) owned by Seller and/or in
Seller’s possession or control, or to which Seller has access or may obtain from the Existing Manager, 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
proforma budgets and projections and construction budgets and contracts related to the development and construction of the Hotel and 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 in effect at Closing and copies of the final plans and specifications for the Hotel. 
 “Release” shall have the meaning set forth in Section 7.1(f). 
 “Review
Period” shall have the meaning set forth in Section 3.1. 
 “SEC” shall have the meaning set forth in
Section 8.6. 
 “Seller Liens” shall have the meaning set forth in Section 4.3. 
 “Seller Parties” shall have the meaning set forth in Section 7.1(e). 
 “Service Contracts” shall mean contracts or agreements, such as maintenance, supply, service or utility contracts. 
 “Supplies” shall mean all merchandise, supplies, inventory and other items used for the operation and maintenance of guest rooms,
restaurants, lounges, swimming pools, health clubs, spas, business centers, meeting rooms and other common areas and recreational areas located within or relating to the Improvements, including, without limitation, all food and beverage (alcoholic
and non-alcoholic) inventory, office supplies and stationery, advertising and promotional materials, china, glasses, silver/flatware, towels, linen and bedding (all of which shall be 2-par level for all suites or rooms in the Hotel), guest cleaning,
paper and other supplies, upholstery material, carpets, rugs, furniture, engineers’ supplies, paint and painters’ supplies, employee uniforms, and all cleaning and maintenance supplies, including those used in connection with the swimming
pools, indoor and/or outdoor sports facilities, health clubs, spas, fitness centers, restaurants, business centers, meeting rooms and other common areas and recreational areas. 
  

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 “Survey” shall have the meaning set forth in Section 4.1. 
 “Third Party Consents” shall have the meaning set forth in Section 8.3. 
 “Title Commitment” shall have the meaning set forth in Section 4.2. 
 “Title Company” shall have the meaning set forth in Section 4.2. 
 “Title Policy” shall have the meaning set forth in Section 4.2. 
 “Title Review Period” shall have the meaning set forth in Section 4.3. 
 “Tradenames” shall mean all telephone exchanges and numbers, trade names, trade styles, trade marks, and other identifying material, and
all variations thereof, together with all related goodwill (it being understood and agreed that the name of the hotel chain to which the Hotel is affiliated by franchise, license or management agreement is a protected name or registered service mark
of such hotel chain and cannot be transferred to Buyer by this Contract, provided that all such franchise, license, management and other agreements granting a right to use the name of such hotel chain or any other trademark or trade name and all
waivers of any brand standard shall be assigned to Buyer. 
 “Utility Reservations” shall mean Seller’s interest in the
right to receive immediately on and after Closing and continuously consume thereafter water service, sanitary and storm sewer service, electrical service, gas service and telephone service on and for the Land and Improvements in capacities that are
adequate continuously to use and operate the Improvements for the purposes for which they were intended, including, but not limited to (i) any right to the present and future use of wastewater, drainage, water and other utility facilities to
the extent such use benefits the Real Property, (ii) any reservations of or commitments covering any such use in the future, and (iii) any wastewater capacity reservations relating to the Real Property. Buyer shall be responsible for any
requests or documents to transfer the Utility Reservations, at Buyer’s sole cost and expense. 
 “Warranties” shall
mean all warranties, guaranties, indemnities and claims for the benefit of Seller with respect to the Hotel, the Property or any portion thereof, including, without limitation, all warranties and guaranties of the development, construction,
completion, installation, equipping and furnishing of the Hotel, and all indemnities, bonds and claims of Seller related thereto. 
 ARTICLE II 
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; 
 EARNEST MONEY DEPOSIT 
 2.1 Purchase and Sale. Seller agrees to sell and
convey to Buyer or its Affiliates and/or assigns, and Buyer or its assigns agrees to purchase from Seller, the Property, in consideration of the Purchase Price and upon the terms and conditions hereof. All of the 

  

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Property shall be conveyed, assigned, and transferred to Buyer at Closing, free and clear of all mortgages, liens, encumbrances, licenses, franchises (other
than any hotel franchises assumed by Buyer), concession agreements, security interests, prior assignments or conveyances, conditions, restrictions, rights-of-way, easements, encroachments, claims and other matters affecting title or possession,
except for the Permitted Exceptions. 
 2.2 Intentionally Deleted. 
 2.3 Purchase Price. Buyer agrees to pay, and Seller agrees to accept, as consideration for the conveyance of the Property, subject to the
adjustments provided for in this Contract, the amount of Eighteen Million Three Hundred Seventy-five Thousand and No/100 Dollars ($18,375,000.00) (the “Purchase Price”). 
 2.4 Allocation. Buyer and Seller shall attempt to agree, prior to the expiration of the Review Period, on an allocation of the Purchase Price
among Real Property, tangible Personal Property and intangible property related to the Property. In the event Buyer and Seller do not agree, each party shall be free to allocate the Purchase Price to such items as they deem appropriate, subject to
and in accordance with applicable laws; provided, however, any value affidavits required to be filed in connection with recording of the Deed (as defined below) shall contain Buyer’s allocation. 
 2.5 Payment. The portion of the Purchase Price, less the Earnest Money Deposit and interest earned thereon, if any, which Buyer elects to have
applied against the Purchase Price (as provided below), less the Escrow Funds, shall be paid to Seller in cash, certified funds or wire transfer, at the Closing of the Property. At the Closing, the Earnest Money Deposit, together with interest
earned thereon, if any, shall, at Buyer’s election, be returned to Buyer or shall be paid over to Seller by Escrow Agent to be applied to the portion of the Purchase Price on behalf of Buyer, and the Escrow Funds shall be deposited into an
escrow account pursuant to the Post-Closing Agreement as contemplated by Section 8.9. 
 2.6 Earnest Money Deposit. 

(a) Upon the full execution and delivery of this Contract, Buyer shall deposit the sum of One Hundred Fifty Thousand and No/100 Dollars ($150,000.00)
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, 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 

  

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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 forty-five (45) days after
the date of this Contract, unless a longer period of time is otherwise provided for in this Contract and except as otherwise agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey,
construction, physical condition, structural, mechanical, environmental, economic, permit status, franchise status, financial and other documents and information related to the Property. Within five (5) Business Days following the date of this
Contract, Seller, at Seller’s sole cost and expense, 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 which are in Seller’s or the Existing Manager’s possession or control: 
 (a) All Warranties 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 (the “Financial Statements”), and Seller shall provide to Buyer copies of all income and expense statements generated by Seller or any third party that relate to the operations of the Hotel
and that contain information not included in the financial statements, if any, provided to Buyer by the Existing Manager, provided that Seller also agrees to provide to Buyer’s auditors and representatives, at no cost to Seller, 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 (all if available); 
 (d) Engineering, mechanical, architectural and construction plans, drawings, specifications and contracts, payment and performance bonds, title policies,
reports and commitments, zoning information and marketing and economic data relating to the Hotel and the construction, development, installation and equipping thereof, as well as copies of all environmental reports and information, topographical,
boundary or “as built” surveys, engineering reports, subsurface studies and other Contracts, Plans and Specs relating to or affecting the Hotel. If the Hotel is purchased by Buyer, all such documents and information relating to the Hotel
shall thereupon be and become the property of Buyer without payment of any additional consideration therefor; 
 (e) All FF&E Leases,
Services Contracts, Leases and, if applicable, a schedule of such Leases of space in the Hotel; 
  

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 (f) All notices received from governmental authorities in connection with the Hotel and all other notices
received from governmental authorities received at any time that relate to any noncompliance or violation of law that has not been corrected. 
 Seller shall, upon request of Buyer, make available to Buyer and Buyer’s representatives and agents, for inspection and copying during normal business hours, Records located at Seller’s corporate offices, and Seller agrees to
provide Buyer copies of all other reasonably requested information that is relevant to the management, operation, use, occupancy or leasing of or title to the applicable Hotel and the plans specifications for development of the Hotel. At any time
during the Review Period, Buyer may, in its sole and absolute discretion, elect not to proceed with the purchase of the Property for any reason whatsoever by giving written notice thereof to Seller, in which event: (i) the Earnest Money Deposit
shall be promptly returned by Escrow Agent to Buyer together with all accrued interest, if any, (ii) this Contract shall be terminated automatically, (iii) all materials supplied by Seller to Buyer shall be returned promptly to Seller, and
(iv) both parties will be relieved of all other rights, obligations and liabilities hereunder, except for the parties’ obligations pursuant to Sections 3.3 and 16.6 below. 
 3.2 Due Diligence Examination. At any time during the Review Period, and thereafter through Closing of the Property, Buyer and/or its
representatives and agents shall have the right to enter upon the Property at all 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 and Phase II environmental site assessments), inspections of construction and other inspections and other studies as Buyer deems reasonable and necessary or
appropriate to evaluate the Property, subject to providing reasonable advance notice to Seller unless otherwise agreed to by Buyer and Seller (the “Due Diligence Examination”). Seller shall have the right to have its
representative present during Buyer’s physical inspections of its Property, provided that failure of Seller to do so shall not prevent Buyer from exercising its due diligence, review and inspection rights hereunder. Buyer agrees to exercise
reasonable care when visiting the Property, in a manner which shall not materially adversely affect the operation of the Property and Buyer agrees to indemnify Seller for any and all damages and claims arising as a result of Buyer’s Due
Diligence Examination. 
 3.3 Restoration. Buyer covenants and agrees not to damage or destroy any portion of the Property in
conducting its examinations and studies of the Property during the Due Diligence Examination and, 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 studies. 
 3.4 Seller Exhibits. Buyer
shall have until the end of the Review Period to review and approve the information on Exhibits B, C, D, E and F. In the event Buyer does not approve any such Exhibit or the information contained therein, Buyer shall be entitled to terminate this
Contract prior to the expiration of the Review Period by notice to Seller and the Earnest Money Deposit shall be returned to Buyer with all interest thereon and both parties shall be relieved of all rights, obligations and liabilities hereunder
except for the parties’ obligations pursuant to Sections 3.3 and 16.6. 
  

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 ARTICLE IV 
 SURVEY AND TITLE APPROVAL 
 4.1 Survey. Seller has delivered to Buyer true, correct and
complete copies of the most recent surveys of the Real Property in Seller’s possession or control. In the event that an update of the survey or a new survey (such updated or new surveys being referred to as the “Survey”)
are desired by Buyer, then Buyer shall be responsible for all costs related thereto. 
 4.2 Title. Seller has delivered to Buyer its
existing title insurance policy, including copies of all documents referred to therein, for the Real Property in Seller’s possession or control. Buyer’s obligations under this Contract are conditioned upon Buyer being able to obtain for
the Property (i) a Commitment for Title Insurance (each, a “Title Commitment”) issued by LandAmerica American Title Company, Attn: Debby Moore, 2505 N. Plano Road, Ste. 3100, Richardson, Texas 75082 (the
“Title Company”), for the most recent standard form of owner’s policy of title insurance in the state in which the Real Property is located, covering the Real Property, setting forth the current status of the title to
the Real Property, showing all liens, claims, encumbrances, easements, rights of way, encroachments, reservations, restrictions and any other matters affecting the Real Property and pursuant to which the Title Company agrees to issue to Buyer at
Closing an Owner’s Policy of Title Insurance on the most recent form of ALTA (where available) owner’s policy available in the state in which the Land is located, with extended coverage and, to the extent applicable and available in such
state, comprehensive, access, single tax parcel, 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, lien instruments, leases, plats, surveys, reservations,
restrictions, and easements affecting the Real Property. If requested by Seller, Buyer shall promptly provide Seller with a copy of the Title Commitment issued by the Title Company. Buyer shall pay all costs associated with the issuance of the Title
Policy and any endorsements requested by Buyer. 
 4.3 Survey or Title Objections. If Buyer discovers any title or survey matter which
is objectionable to Buyer, Buyer may provide Seller with written notice of its objection to same within twenty (20) days after receipt of each Title Commitment (including all Exception Documents) and the applicable Survey but in no event later
than the expiration of the Review Period (the “Title Review Period”). If Buyer fails to so object in writing to any such matter set forth in the Survey or Title Commitment, it shall be conclusively assumed that Buyer has
approved same. If Buyer disapproves any condition of title, survey or other matters by written objection to Seller on or before the expiration of the Title Review Period, Seller shall elect either to attempt to cure or not cure any such item by
written notice sent to Buyer within five (5) days after its receipt of notice from Buyer, and if Seller commits in writing to attempt to cure any such item, then Seller shall be given until the Closing Date to cure any such defect. In the event
Seller shall fail to cure a defect which Seller has committed in writing to cure prior to Closing, or if a new title defect arises after the date of Buyer’s Title Commitment or Survey, as applicable, but prior to Closing, then Buyer may elect,
in Buyer’s sole and absolute discretion and as its sole and exclusive remedy: (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 Title Commitment which are not objected to by Buyer as set forth above (other 

  

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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 applicable Hotel is located, so long as Seller provides the appropriate owner’s affidavit, gap indemnity or other documentation reasonably required by the Title Company for such omission) are hereinafter referred to as
the “Permitted Exceptions.” In no event shall Permitted Exceptions include liens, or documents evidencing liens, securing any indebtedness, any mechanics’ or materialmen’s liens 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 Seller and released at Closing. 
 ARTICLE V 
 MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT 
 At or prior to the Closing, Seller shall terminate the Existing Management Agreement and the Existing Franchise Agreement, and Seller shall be solely
responsible for all claims and liabilities arising thereunder on, prior to or following the Closing Date. As a condition to Closing, Buyer shall enter into the New Management Agreement and the New Franchise Agreement, effective as of the Closing
Date, containing terms and conditions acceptable to Buyer (including, without limitation, such terms and conditions as may be required to accommodate Buyer’s and/or Buyer’s Affiliates’ REIT structure). Seller shall be responsible for
paying all costs related to the termination of the Existing Management Agreement. Buyer shall use good faith and diligent efforts to obtain the New Franchise Agreement. Buyer shall be responsible for paying all reasonable and actual costs of the
Franchisor related to the termination of the Existing Franchise Agreement; provided, however, Seller shall be responsible for any key money repayment required by the Franchisor. Seller shall use best efforts to promptly provide all information
required by the Franchisor in connection with the New Franchise Agreement, and Seller and Buyer shall diligently pursue obtaining each the same. In the event Seller, despite using diligent and good faith efforts, is unable to obtain the release and
termination of the Existing Franchise Agreement and any guaranty related thereto at no cost to Seller and/or guarantor (other than Seller’s attorneys’ fees), then Seller shall have the option to terminate this Contract upon reasonable
prior written notice to Buyer, in which event Buyer shall be entitled to the return of its Earnest Money Deposit. 
 ARTICLE VI

 BROKERS 
 Seller and
Buyer each represents and warrants to the other that except for Scott Greimsmann of Greimsmann Realty, Inc. for who’s commission Seller shall be responsible pursuant to a separate written agreement, it has not engaged any broker, finder or
other party in connection with the transaction contemplated by this Contract. Buyer and Seller each agree to save and hold the other harmless from any and all losses, damages, liabilities, costs and expenses (including, without limitation,
attorneys’ fees) involving claims made by any other agent, broker, or other person by or through the acts of Buyer or Seller, respectively, in connection with this transaction. 
  

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 ARTICLE VII 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 7.1 Seller’s Representations, Warranties and
Covenants. Seller hereby represents, warrants and covenants to Buyer as follows: 
 (a) Authority; No Conflicts. Seller is a
limited liability company duly formed, validly existing and in good standing in the State of Kansas. Seller has obtained all necessary consents to enter into and perform this Contract and is fully authorized to enter into and perform this Contract
and to complete the transactions contemplated by this Contract. No consent or approval of any person, entity or governmental authority is required for the execution, delivery or performance by Seller of this Contract, except as set forth in
Exhibit D, and this Contract is hereby binding and enforceable against Seller. Neither the execution nor the performance of, or compliance with, this Contract by Seller has resulted, or will result, in any violation of, or default under, or
acceleration of, any obligation under any existing corporate charter, certificate of incorporation, bylaw, articles of organization, limited liability company agreement or regulations, partnership agreement or other organizational documents and
under any, mortgage indenture, lien agreement, promissory note, contract, or permit, or any judgment, decree, order, restrictive covenant, statute, rule or regulation, applicable to Seller or to the Hotel. 
 (b) FIRPTA. Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those items are defined in the Internal
Revenue Code and Income Tax Regulations). 
 (c) Bankruptcy. None of Seller, nor to Seller’s knowledge, any of its partners or
members, is insolvent or the subject of any bankruptcy proceeding, receivership proceeding or other insolvency, dissolution, reorganization or similar proceeding. 
 (d) Property Agreements. A complete list of all FF&E Leases, Service Contracts and Leases (other than those entered into by the Existing Manager on its own behalf) used in or otherwise relating to the
operation and business of the Hotel is attached hereto as Exhibit C-1, and, to Seller’s knowledge, a complete list of all other 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-2. The assets constituting the Property to be conveyed to Buyer hereunder constitute all of the property and assets of Seller used in connection with the operation and business of the Hotel. There are
no leases, license agreements, leasing agent’s agreements, equipment leases, building service agreements, maintenance contracts, suppliers contracts, warranty contracts, operating agreements, or other agreements (i) to which Seller is a
party or an assignee, or (ii) to Seller’s knowledge, binding upon the Hotel, relating to the ownership, occupancy, operation, management or maintenance of the Real Property, FF&E, Supplies or Tradenames, except for those Service
Contracts, Leases, Warranties and FF&E Leases disclosed on Exhibit C or to be delivered to Buyer pursuant to Section 3.1. The Service Contracts, Leases, Warranties and FF&E Leases disclosed on Exhibit C or to be delivered
to Buyer pursuant to Section 3.1 are in full force and effect, and no default has occurred and is continuing thereunder and no circumstances exist which, with the giving of notice, the lapse of time or both, would constitute such a default. No
party has any right or option to acquire the Hotel or any portion thereof, other than Buyer. 
  

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 (e) Pending Claims. To the knowledge of Seller without independent investigation, there are no:
(i) claims, demands, litigation, proceedings or governmental investigations pending or threatened against Seller, the Existing Manager or any Affiliate of any of them (collectively, “Seller Parties”) or related to the
business or assets of the Hotel, except as set forth on Exhibit F attached hereto and incorporated herein by reference, (ii) special assessments or extraordinary taxes except as set forth in the Title Commitment or (iii) pending or
threatened condemnation or eminent domain proceedings which would affect the Property or any part thereof. There are no: pending 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 (collectively, the “Pending Claims”). 
 (f) Environmental. To the knowledge of Seller without independent investigation, with respect to environmental matters, (i) there has been no Release or threat of Release of Hazardous Materials in, on, under, to, from or in the
area of the Real Property, except as disclosed in the reports and documents set forth on Exhibit E attached hereto and incorporated herein by reference, (ii) no portion of the Property is being used for the treatment, storage, disposal
or other handling of Hazardous Materials or machinery containing Hazardous Materials other than standard amounts of cleaning supplies and chlorine for the swimming pool, all of which are stored on the Property in strict accordance with applicable
Environmental Requirements and do not exceed limits permitted under applicable laws, including without limitation Environmental Requirements, (iii) no underground storage tanks are currently located on or in the Real Property or any portion
thereof, (iv) no environmental investigation, administrative order, notification, consent order, litigation, claim, judgment or settlement with respect to the Property or any portion thereof is pending or threatened, and (v) except as
disclosed on Exhibit E, there are no reports or other documentation regarding the environmental condition of the Real Property in the possession of Seller or Seller’s Affiliates, consultants, contractors or agents. As used in this
Contract: “Hazardous Materials” means (1) “hazardous wastes” as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time (“RCRA”), (2) “hazardous
substances” as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.), as amended by the Superfund Amendment and Reauthorization Act of 1986 and as otherwise amended from time
to time (“CERCLA”); (3) “toxic substances” as defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”), (4) “hazardous materials” as defined by
the Hazardous Materials Transportation Act, as amended from time to time (“HMTA”), (5) asbestos, oil or other petroleum products, radioactive materials, urea formaldehyde foam insulation, radon gas and transformers or
other equipment that contains dielectric fluid containing polychlorinated biphenyls and (6) any substance whose presence is detrimental or hazardous to health or the environment, including, without limitation, microbial or fungal matter or
mold, or is otherwise regulated by federal, state and local environmental laws (including, without limitation, RCRA, CERCLA, TSCA, HMTA), rules, regulations and orders, regulating, relating to or imposing liability or standards of conduct concerning
any Hazardous Materials or environmental, health or safety compliance (collectively, “Environmental Requirements”). As used in this Contract: “Release” means spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing. 
  

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 (g) Title and Liens. To the knowledge of Seller without independent investigation, except for
Seller Liens to be released at Closing, Seller has good and marketable fee simple absolute title to the Real Property, subject only to the Permitted Exceptions. Except for the FF&E subject to the FF&E Leases and any applicable Permitted
Exceptions, Seller has good and marketable title to the Personal Property, free and clear of all liens, claims, encumbrances or other rights whatsoever (other than the Seller Liens to be released at Closing), and there are no other liens, claims,
encumbrances or other rights pending or of which any Seller Party has received notice or which are otherwise known to any Seller Party related to any other Personal Property. 
 (h) Utilities. To the knowledge of Seller without independent investigation, all appropriate utilities, including sanitary and storm sewers,
water, gas, telephone, cable and electricity, are, to Seller’s knowledge, currently sufficient and available to service the Hotel and all installation, connection or “tap-on”, usage and similar fees have been paid. 
 (i) Licenses, Permits and Approvals. Seller has not received any written notice that the Property fails to comply with all applicable licenses,
permits and approvals and federal, state or local statutes, laws, ordinances, rules, regulations, requirements and codes including, without limitation, those regarding zoning, land use, building, fire, health, safety, environmental, subdivision,
water quality, sanitation controls and the Americans with Disabilities Act, and similar rules and regulations relating and/or applicable to the ownership, use and operation of the Property as it is now operated. Seller has received all licenses,
permits and approvals required or needed for the lawful conduct, occupancy and operation of the business of the Hotel, and each license and permit is in full force and effect, and will be received and in full force and effect as of the Closing. No
licenses, permits or approvals necessary for the lawful conduct, occupancy or operation of the business of the Hotel, to Seller’s knowledge requires any approval of a governmental authority for transfer of the Property except as set forth in
Exhibit D. 
 (j) Financial Statements. Seller has delivered copies of all prior (if any) and current (i) Financial
Statements for the Hotel, (ii) operating statements prepared by the Existing Manager for the Hotel, and (iii) monthly financial statements prepared by the Existing Manager for the Hotel. Each of such statements is, to Seller’s
knowledge, 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 results of operations of the Hotel for the
respective periods represented thereby. Seller has relied upon the Financial Statements in connection with its ownership and operation of the Hotel, and there are no independent audits or financial statements prepared by third parties relating to
the operation of the Hotel other than the Financial Statements prepared by or on behalf of the Existing Manager, all of which have been provided to Buyer. 
 (k) Employees. To the knowledge of Seller without independent investigation, all employees employed at the Hotel are the employees of the Existing Manager. 

  

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There are, to Seller’s knowledge, no (i) unions organized at the Hotel, (ii) union organizing attempts, strikes, organized work stoppages or
slow downs, or any other labor disputes pending or threatened with respect to any of the employees at the Hotel, or (iii) collective bargaining or other labor agreements to which Seller or the Existing Manager or the Hotel is bound with respect
to any employees employed at the Hotel. 
 (l) Operations. The Hotel has at all times been operated by Existing Manager. 

(m) Existing Management and Franchise Agreements. Seller has furnished to Buyer true and complete copies of the Existing Management Agreement
and the Existing Franchise Agreement, which constitutes the entire agreement of the parties with respect to the subject matter thereof and which have not been amended or supplemented in any respect. There are no other management agreements,
franchise agreements, license agreements or similar agreements for the operation or management of the Hotel or relating to the Brand, to which Seller is a party or which are binding upon the Property, except for the Existing Management Agreement and
the Existing Franchise Agreement. To the knowledge of Seller without independent investigation, no default has occurred and is continuing under the Existing Management Agreement or the Existing Franchise Agreement, and no circumstances exist which,
with the giving of notice, the lapse of time or both, would constitute such a default. 
 (n) Construction of Hotel. 
 (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, and all building permits and certificates of occupancy therefor. 
 (ii) The Personal Property
is in good condition and operating order. 
 (iii) Necessary easements for ingress and egress, drainage, signage and utilities
serving the Hotel have either been dedicated to the public, conveyed to the appropriate utility or will be conveyed to Buyer along with the Property. 
 7.2 Buyer’s Representations, Warranties and Covenants. Buyer represents, warrants and covenants: 
 (a) Authority. Buyer is a corporation duly formed, validly existing and in good standing in the Commonwealth of Virginia. Buyer has received or will have received by the applicable Closing Date all necessary authorization of the
Board of Directors of Buyer to complete the transactions contemplated by this Contract. No other consent or approval of any person, entity or governmental authority is required for the execution, delivery or performance by Buyer of this Contract,
and this Contract is hereby binding and enforceable against Buyer. 
  

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 (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 nine (9) months and shall not be deemed to merge into
or be waived by the Deed or any other closing documents until the expiration of said nine-month period. 
 ARTICLE VIII 
 ADDITIONAL COVENANTS 
 8.1
Subsequent Developments. After the date of this Contract and until the Closing Date, Seller shall use best efforts to keep Buyer fully informed of all subsequent developments of which Seller has knowledge (“Subsequent
Developments”) which would cause any of Seller’s representations or warranties contained in this Contract to be no longer accurate in any material respect. 
 8.2 Operations. From and after the date hereof through the Closing on the Property, Seller shall comply with the Existing Management Agreement and
the Existing Franchise Agreement and keep the same in full force and effect and shall perform and comply with all of the following subject to and in accordance with the terms of such agreements: 
 (a) Continue to maintain the Property generally in accordance with past practices of Seller and pursuant to and in compliance with the Existing Management
Agreement and the Existing Franchise Agreement, including, without limitation, (i) using reasonable efforts to keep available the services of all present employees at the Hotel and to preserve its relations with guests, suppliers and other
parties doing business with Seller with respect to the Hotel, (ii) 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 Agreement, (iii) maintaining the current level of advertising and other promotional activities for the Hotel’s facilities, (iv) maintaining the present level of insurance with respect to the Hotel in full force and effect
until the Closing Date for the Hotel and (v) remaining in compliance in all material respects with all current Licenses; 
 (b) Keep,
observe, and perform in all material respects all its obligations under and pursuant to the Leases, the Service Contracts, the FF&E Leases, the Existing Management Agreement, the Existing Franchise Agreement, the Contracts, Plans and Specs, the
Warranties and all other applicable contractual arrangements relating to the Hotel; 
 (c) Not cause or permit the removal of FF&E from
the Hotel except for the purpose of discarding worn and valueless items that have been replaced with FF&E of equal or better quality or except for the removal of ADP or proprietary software that belongs to Seller or the Existing Manager; timely
make all repairs and maintenance, to keep all FF&E and all other 

  

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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 of Seller contained in this Contract; 
 (g) Pay or cause to be
paid all taxes and assessments levied or assessed on the Hotel or any part thereof prior to the delinquency date, and comply, in all material respects, with all federal, state, and municipal laws, ordinances, regulations and orders relating to the
Hotel; 
 (h) Not sell or assign, or enter into any agreement to sell or assign, or create or permit to exist any lien or encumbrance (other
than a Permitted Exception or one that Seller shall be responsible for or bond off at Closing) on, the Property or any portion thereof; and 
 (i) Not allow any permit, receipt, license, franchise or right currently in existence with respect to the operation, use, occupancy or maintenance of the Hotel to expire, be canceled or otherwise terminated. 
 Seller 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 Existing Manager prior to Closing; provided, however, that in the case of any of the foregoing entered
into by the Existing Manager on its own behalf, only to the extent Seller has knowledge thereof or a copy of which is obtainable from the Existing Manager. Seller shall not, without first obtaining the written approval of Buyer, which approval shall
not be unreasonably withheld, enter into any new FF&E Leases, Service Contracts, Leases or other contracts or agreements related to the Hotel, or extend any existing such agreements, unless such agreements (x) can be terminated, without
penalty, upon thirty (30) days’ prior notice or (y) will expire prior to the Closing Date. 
 8.3 Third Party Consents.
Prior to the Closing Date, Seller shall use best efforts to obtain all third party consents and approvals (excluding Franchisor approvals) (all of such consents and approvals being referred to collectively as, the “Third Party
Consents”). 
  

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 8.4 Employees. Upon reasonable prior notice to Seller by Buyer, Buyer and its employees,
representatives and agents shall have the right to communicate with Seller’s staff, and, subject to the approval of the Existing Manager, the Hotel staff and the Existing Manager’s staff, including without limitation the general manager,
the director of sales, the engineering staff and other key management employees of the Hotel, 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 any Property or the Existing Management Agreements. 
 8.5 Estoppel Certificates. To the extent
applicable, Seller shall obtain from (i) each tenant under any Lease affecting the Hotel (but not from current or prospective occupants of hotel rooms and suites within the Hotel) and (ii) each lessor under any 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 Seller during the Review Period, and deliver to Buyer not less than five (5) days before the Closing. 
 8.6 Access to Financial Information. Buyer’s representatives shall have access to, and Seller and its Affiliates shall cooperate with Buyer
at no cost to Seller or the Existing Manager and furnish upon request, all financial and other information relating to the Hotel’s operations to the extent necessary to enable Buyer’s representatives to prepare audited financial statements
in conformity with Regulation S-X of the Securities and Exchange Commission (the “SEC”) and other applicable rules and regulations of the SEC and to enable them to prepare a registration statement, report or disclosure
statement for filing with the SEC on behalf of Buyer or its Affiliates, whether before or after Closing and regardless of whether such information is included in the Records to be transferred to Buyer hereunder. Seller shall also provide to
Buyer’s representative a signed representation letter in form and substance reasonably acceptable to Seller sufficient to enable an independent public accountant to render an opinion on the financial statements related to each Hotel. Buyer will
reimburse Seller for costs reasonably incurred by Seller to comply with the requirements of the preceding sentence. The provisions of this Section shall survive Closing or termination of this Contract. 
 8.7 Bulk Sales. At Seller’s risk and expense, Seller shall take all steps necessary to comply with the requirements of a transferor under all
bulk transfer laws, if any, that are applicable to the transactions contemplated by this Contract. 
 8.8 Indemnification. If the
transactions contemplated by this Contract are consummated as provided herein: 
 (a) Indemnification of Buyer. Without in any way
limiting or diminishing the warranties, representations or agreements herein contained or the rights or remedies available to Buyer for a breach hereof, Seller hereby agrees to indemnify, defend and hold harmless Buyer and its respective designees,
successors and assigns from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable attorneys’ fees) of every kind, nature and description in existence before, on or after Closing, whether known or
unknown, absolute or continent, joint or several, arising out of or relating to: 
 (i) any claim made or asserted against
Buyer or any of the Property by a creditor of Seller, including any claims based on or alleging a violation of any bulk sales act or other similar laws; 
  

 18 

 (ii) the breach of any representation, warranty, covenant or agreement of Seller
contained in this Contract; 
 (iii) any liability or obligation of Seller not expressly assumed by Buyer pursuant to this
Contract; 
 (iv) any claim made or asserted by an employee of Seller arising out of Seller’s decision to sell the
Property; and 
 (v) the conduct and operation by or on behalf of Seller of its Hotel or the ownership, use or operation of
its Property prior to Closing. 
 (b) Indemnification of Seller. Without in any way limiting or diminishing the warranties,
representations or agreements herein contained or the rights or remedies available to Seller for a breach hereof, Buyer hereby agrees, with respect to this Contract, to indemnify, defend and hold harmless Seller from and against all losses,
judgments, liabilities, claims, damages or expenses (including reasonable attorneys’ fees) of every kind, nature and description in existence before, on or after Closing, whether known or unknown, absolute or contingent, joint or several,
arising out of or relating to: 
 (i) the breach of any representation, warranty, covenant or agreement of Buyer contained in
this Contract; 
 (ii) the conduct and operation by Buyer of its business at the Hotel after the Closing and any claim made by
a Hotel employee caused by Buyer’s improper actions hereunder; and 
 (iii) any liability or obligation of Buyer
expressly assumed by Buyer at Closing. 
 (c) Indemnification Procedure for Claims of Third Parties. Indemnification, with respect to
claims resulting from the assertion of liability by those not parties to this Contract (including governmental claims for penalties, fines and assessments), shall be subject to the following terms and conditions: 
 (i) The party seeking indemnification (the “Indemnified Party”) shall give prompt written notice to the party or
parties from which it is seeking indemnification (the “Indemnifying Party”) of any assertion of liability by a third party which might give rise to a claim for indemnification based on the foregoing provisions of this Section 8.8,
which notice shall state the nature and basis of the assertion and the amount thereof, to the extent known; provided, however, that no delay on the part of the Indemnified Party in giving notice shall relieve the Indemnifying Party of any obligation
to indemnify unless (and then solely to the extent that) the Indemnifying Party is prejudiced by such delay. 
  

 19 

 (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 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 books and records of Seller 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 

  

 20 

 
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 Escrow Funds. To provide for the
timely payment of any post-closing claims by Buyer against Seller hereunder, at Closing, Seller shall deposit an amount equal to One Hundred Twenty-five Thousand and No/100 Dollars ($125,000.00) (the “Escrow Funds”) which
shall be withheld from the Purchase Price payable to Seller and shall be deposited for a period of nine (9) months in an escrow account with the Title Company pursuant to an escrow agreement reasonably satisfactory in form and substance to
Buyer and Seller (the “Post-Closing Agreement”), which escrow and Post-Closing Agreement shall be established and entered into at Closing and shall be a condition to Buyer’s obligations under this Contract. If no claims
have been asserted by Buyer against Seller, or all such claims have been satisfied, within such 9-month period, the Escrow Funds deposited by Seller shall be released to Seller. 
 8.10 Liquor Licenses. If permitted under the laws of the jurisdiction in which the Hotel is located, the Manager shall execute and file any and
all necessary forms, applications and other documents (and Seller shall cooperate with the Manager in filing such forms, applications and other documents) with the appropriate liquor and alcoholic beverage authorities prior to Closing so that the
Liquor Licenses remain in full force and effect upon completion of Closing. Seller shall, if not prohibited by applicable law, allow Buyer or Manager to use Seller’s Liquor Licenses until Buyer or Manager obtains its own. In such event, Buyer
shall indemnify Seller for any damages or claims related to Buyer’s or Manager’s use of the Liquor Licenses and Seller shall have the right to offset any amounts owed Seller for such damages or claims from the Escrowed Funds. 

ARTICLE IX 
 CONDITIONS FOR
CLOSING 
 9.1 Buyer’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to Buyer’s
right to cancel this Contract during the Review Period, the duties and obligations of Buyer to proceed to Closing under the terms and provisions of this Contract are and shall be expressly subject to strict compliance with, and satisfaction or
waiver of, each of the conditions and contingencies set forth in this Section 9.1, each of which shall be deemed material to this Contract. In the event of the failure of any of the conditions set forth in this Section 9.1 or of any other
condition to Buyer’s obligations provided for in this Contract, which condition is not waived in writing by Buyer, Buyer shall have the right at its option to declare this Contract terminated, in which case the Earnest Money Deposit and any
interest thereon shall be immediately returned to Buyer and each of the parties shall be relieved from further liability to the other, except as otherwise expressly provided herein, with respect to this Contract. 
 (a) All of Seller’s representations and warranties contained in or made pursuant to this Contract shall be true and correct in all material respects
as if made again on the Closing Date. 
  

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

 (c) Seller shall have performed, observed and complied in all material respects with all of the covenants, agreements, closing
requirements and conditions required by this Contract to be performed, observed and complied with by Seller, as and when required hereunder. 
 (d) All Liquor Licenses shall be in full force and effect and shall remain in full force and effect following Closing and shall have been or shall be transferred to, or new Liquor Licenses issued to, the Manager or an Affiliate thereof
approved by Buyer at or as of Closing, and Buyer shall have received satisfactory evidence thereof. 
 (e) Third Party Consents in form and
substance satisfactory to Buyer shall have been obtained and furnished to Buyer. 
 (f) The Escrow Funds shall have been deposited in the
escrow account pursuant to the Post-Closing Agreement and the parties thereto shall have entered into the Post-Closing Agreement. 
 (g) The
Existing Management Agreement and the Existing Franchise Agreement and any related guarantys shall have been terminated. 
 (h) Buyer and the
Manager shall have executed and delivered the New Management Agreement and Buyer and the Franchisor shall have executed and delivered the New Franchise Agreement, in each case upon terms and conditions acceptable to Buyer in its sole and absolute
discretion. 
 9.2 Seller’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to Seller’s
right to cancel this Contract during the Review Period, the duties and obligations of Seller to proceed to Closing under the terms and provisions of this Contract are and shall be expressly subject to strict compliance with, and satisfaction or
waiver of, each of the conditions and contingencies set forth in this Section 9.2, each of which shall be deemed material to this Contract. In the event of the failure of any of the conditions set forth in this Section 9.2, which condition
is not waived in writing by Seller, Seller shall have the right at its option to declare this Contract terminated and null and void, in which case the remaining Earnest Money Deposit and any interest thereon shall be 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) Seller shall have received all of the money, instruments and conveyances listed in Section 10.3. 
  

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 (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. 
 ARTICLE X 
 CLOSING AND CONVEYANCE 
 10.1 Closing. Unless otherwise agreed by Buyer and Seller, the Closing on the Property shall occur on a date selected by Buyer that is not later
than thirty (30) business days after expiration of the Review Period provided that all conditions to Closing by Buyer hereunder have been satisfied. Buyer will provide Seller 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 Seller, 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 Seller. 
 10.2 Deliveries of Seller. At Closing, Seller shall deliver to Buyer the following, and, as appropriate, all instruments shall be properly executed and conveyance instruments to be acknowledged in recordable form (the terms,
provisions and conditions of all instruments not attached hereto as Exhibits shall be mutually agreed upon by Buyer and Seller prior to such Closing): 
 (a) Deed. A Special Warranty Deed conveying to Buyer fee simple title to the Real Property, subject only to the Permitted Exceptions (the “Deed”). 
 (b) Bills of Sale. Bills of sale to Buyer and/or its designated Lessee, conveying title to the tangible Personal Property (other than the
alcoholic beverage inventories, which, at Buyer’s election, shall be transferred by Seller to the Manager as holder of the Liquor Licenses required for operation of the Hotel). 
 (c) Existing Management and Franchise Agreements. The termination of the Existing Management Agreement and the Existing Franchise Agreement.

 (d) General Assignments. Assignments of all of Seller’s right, title and interest in and to all FF&E Leases, Service
Contracts and Leases identified on Exhibit C hereto (the “Hotel Contracts”). If, prior to the expiration of the Review Period Buyer has not objected to a Hotel Contract that is not terminable upon 30 days prior written
notice, Buyer shall assume such contracts. The assignment shall also be a general assignment and shall provide for the assignment of all of Seller’s right, title and interest in all Records, Warranties, Licenses, Tradenames, Contracts, Plans
and Specs and all other intangible Personal Property applicable to the Hotel. 
 (e) FIRPTA; 1099. A FIRPTA Affidavit or
Transferor’s Certificate of Non-Foreign Status as required by Section 1445 of the Internal Revenue Code and an IRS Form 1099. 
 (f) Title Company Documents. All affidavits, gap indemnity agreements and other documents reasonably required by the Title Company. At Buyer’s sole expense, Buyer 

  

 23 

 
shall have obtained an irrevocable commitment directly from the Title Company (or in the event the Title Company is not willing to issue said irrevocable
commitment, then from such other national title company as may be selected by either Buyer or Seller) for issuance of an Owner’s Policy of Title Insurance to Buyer insuring good and marketable fee simple absolute title to the Real Property
constituting part of the Property, subject only to the Permitted Exceptions in the amount of the Purchase Price. 
 (g) Possession;
Estoppel Certificates. Possession of the Property, subject only to rights of guests in possession and tenants pursuant to written leases included in the Leases, and estoppel certificates from tenants under Leases and the lessors under FF&E
Leases in form and substance acceptable to Buyer. 
 (h) Vehicle Titles. The necessary certificates of titles duly endorsed for
transfer together with any required affidavits and other documentation necessary for the transfer of title or assignment of leases from Seller to Buyer of the one van used in connection with the Hotel’s operations. 
 (i) Authority Documents. Certified copy of resolutions of the Board of Directors of Seller authorizing the sale of the Property contemplated by
this Contract, and/or other evidence reasonably satisfactory to Buyer and the Title Company that the person or persons executing the closing documents on behalf of Seller have full right, power and authority to do so, along with a certificate of
good standing of Seller from the State in which the Property is located. 
 (j) Miscellaneous. Such other instruments as are
contemplated by this Contract to be executed or delivered by Seller, reasonably required by Buyer or the Title Company, or customarily executed in the jurisdiction in which the Hotel is located, to effectuate the conveyance of property similar to
the Hotel, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles, and interests of Seller related to the Hotel and Seller will no longer have any rights, titles, or interests in and to the Hotel. 

(k) Plans, Keys, Records, Etc. To the extent not previously delivered to and in the possession of Buyer, all Contracts, Plans and Specs, all
keys for the Hotel (which keys shall be properly tagged for identification), all Records, including, without limitation, all Warranties, Licenses, Leases, FF&E Leases and Service Contracts for the Hotel. 
 (l) Closing Statements. Seller’s Closing Statement, and a certificate confirming the truth of Seller’s representations and warranties
hereunder as of the Closing Date. 
 10.3 Buyer’s Deliveries. At Closing of the Hotel, Buyer shall deliver the following:

 (a) Purchase Price. The balance of the Purchase Price, adjusted for the adjustments provided for in Section 12.1, below, and
less any sums to be deducted therefrom as provided in Section 2.4. 
 (b) Authority Documents. Certified copy of resolutions of
the Board of Directors of Buyer authorizing the purchase of the Hotel contemplated by this Contract, and/or other evidence satisfactory to Seller and the Title Company that the person or persons executing the closing documents on behalf of Buyer
have full right, power and authority to do so. 
  

 24 

 (c) Miscellaneous. Such other instruments as are contemplated by this Contract to be executed or
delivered by Buyer, reasonably required by Seller or the Title Company, or customarily executed in the jurisdiction in which the Hotel is located, to effectuate the conveyance of property similar to the Hotel, with the effect that, after the
Closing, Buyer will have succeeded to all of the rights, titles, and interests of Seller related to the Hotel and Seller will no longer have any rights, titles, or interests in and to the Hotel. 
 (d) Closing Statements. Buyer’s Closing Statement, and a certificate confirming the truth of Buyer’s representations and warranties
hereunder as of the Closing Date. 
 ARTICLE XI 
 COSTS 
 All Closing costs shall be paid as set forth below: 
 11.1 Seller’s Costs. In connection with the sale of the Property contemplated under this Contract, Seller shall be responsible for all
transfer and recordation taxes, including, without limitation, all transfer, mansion, sales, use or bulk transfer taxes or like taxes on or in connection with the transfer of the Real Property (including the Deed), in each case except as otherwise
provided in Section 12, and all accrued taxes of Seller prior to Closing and income, sales and use taxes and other such taxes of Seller attributable to the sale of the Property to Buyer. Seller shall be responsible for all costs related to the
termination of the Existing Management Agreement as provided in Article V as well as costs and expenses of its attorneys, accountants, appraisers and other professionals, consultants and representatives. Seller shall also be responsible for payment
of all prepayment penalties and other amounts payable in connection with the pay-off of any liens and/or indebtedness encumbering the Property. 
 11.2 Buyer’s Costs. In connection with the purchase of the Property contemplated under this Contract, Buyer shall be responsible for the costs and expenses of its attorneys, accountants and other professionals, consultants and
representatives. Buyer shall also be responsible for the costs and expenses in connection with the preparation of any environmental report, any update to the survey and the costs and expenses of preparation of the title insurance commitment and the
issuance of the title insurance policy contemplated by Article IV and the per page recording charges and clerk’s fee for the Deed (if applicable). Buyer shall be responsible for any fees for the performance of the property improvement plan
(PIP) review and report by the Franchisor, the cost of completing the PIP items. 
 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 Seller and the income and expenses accruing on and after the Closing Date being allocated to Buyer, all as set forth below. All of such adjustments and allocations shall be made in cash at Closing and shall be collected through and/or
adjusted in accordance with the terms of the Existing Management 

  

 25 

 
Agreement. Except as otherwise expressly provided herein, all apportionments and adjustments shall be made on an accrual basis in accordance with generally
accepted accounting principles. Buyer and Seller shall request that the Manager and Existing Manager jointly determine the apportionments, allocations, prorations and adjustments as of the Cutoff Time. 
 (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 day before the
Closing Date for services prior thereto, which charges shall be allocated to Seller. Charges accruing on and after Closing shall be allocated to Buyer. If elected by Seller, Seller shall be given credit, and Buyer shall be charged, for any utility
deposits transferred to and received by Buyer at Closing. 
 (c) Income/Charges. All rents, income and charges receivable or payable
under any Leases and Hotel Contracts applicable to the Property, and any deposits, prepayments and receipts thereunder, shall be prorated between Buyer and Seller as of the Cutoff Time. 
 (d) Accounts. All working capital accounts, reserve accounts and escrow accounts (including all FF&E accounts, all PIP accounts, Franchisor
escrows, but excluding amounts held in tax and insurance escrow accounts and utility deposits to the extent excluded from the definition of Deposits) shall become the property of Buyer but Seller shall receive a credit therefor at Closing.

 (e) Guest Ledger. Subject to (f) below, all accounts receivable of registered guests at the Hotel who have not checked out and
were occupying rooms as of the Cutoff Time, shall be prorated as provided herein. 
 (f) Room Rentals. All receipts from guest room
rentals and other suite revenues for the night in which the Cutoff Time occurs shall belong to Seller, but Seller shall provide Buyer credit at Closing equal to the reasonable expenses to be incurred by Buyer to clean such guests’ rooms.

 (g) Advance Deposits. All prepaid rentals, room rental deposits, and all other deposits for advance registration, banquets or
future services to be provided on and after the Closing Date shall be credited to Buyer. 
 (h) Accounts Receivable. To the extent not
apportioned at Closing and subject to (e) and (f) above, all accounts receivable and credit card claims as of the Cutoff Time shall remain the property of Seller, and Seller and Buyer agree that the monies received from debtors owing such
accounts receivable balances after Closing, unless otherwise provided in the New Management Agreement, shall be applied as expressly provided in such remittance, or if not specified then to the Seller’s outstanding invoices to such account
debtors in chronological 

  

 26 

 
order beginning with the oldest invoices, and thereafter after Seller’s invoices are paid in full, to Buyer’s account. Buyer agrees to cooperate
reasonably with Seller, at no cost to Buyer, in Seller’s collecting any of Seller’s accounts receivable. 
 (i) Accounts
Payable. To the extent not apportioned at Closing, any indebtedness, accounts payable, liabilities or obligations of any kind or nature related to Seller or the Property for the periods prior to and including the Closing Date shall be retained
by Seller and promptly allocated to Seller and evidence thereof shall be provided to Buyer, and Buyer shall not be or become liable therefor, except as expressly assumed by Buyer pursuant to this Contract, and invoices received in the ordinary
course of business prior to Closing shall be allocated to Seller at Closing. 
 (j) Restaurants, Bars, Machines, Other Income. All
monies received in connection with bar, restaurant, banquet and similar and other services at the Hotel (other than amounts due from any guest and included in room rentals) prior to the close of business for each such operation for the night in
which the Cutoff Time occurs shall belong to Seller, and all other receipts and revenues (not previously described in this Section 12.1) from the operation of any department of the Hotel shall be prorated between Seller and Buyer at Closing.

 12.2 Reconciliation and Final Payment. Seller and Buyer shall reasonably cooperate after Closing to make a final determination of
the allocations and prorations required under this Contract within one hundred eighty (180) 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. 

12.3 Employees. Unless Buyer or the Manager expressly agrees otherwise, none of the employees of the Hotel shall become employees of Buyer, as
of the Closing Date; instead, such employees shall become employees of the Manager. Seller shall not give notice under any applicable federal or state plant closing or similar act, including, if applicable, the Worker Adjustment and Retraining
Notification Provisions of 29 U.S.C., Section 2102, the parties having agreed that a mass layoff, as that term is defined in 29 U.S.C., 2101(a)(3), will not have occurred. Any liability for payment of all wages, salaries and benefits,
including, without limitation, accrued vacation pay, sick leave, bonuses, pension benefits, COBRA rights, and other benefits accrued or earned by and due to employees at the Hotel through the Cutoff Time, together with F.I.C.A., unemployment and
other taxes and benefits due with respect to such employees for such period, shall be charged Seller’s obligation to pay outside of Closing. This obligation shall survive Closing. All liability for wages, salaries and benefits of the employees
accruing in respect of and attributable to the period from and after Closing shall be charged to Buyer, in accordance with the New Management Agreement. To the extent applicable, all such allocations and charges shall be adjusted in accordance with
the provisions of the Existing Management Agreement. 
  

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 ARTICLE XIII 
 CASUALTY AND CONDEMNATION 
 13.1 Risk of Loss; Notice. Prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, all risk of loss to the Property (whether by casualty, condemnation or otherwise) shall be borne by Seller. In the event that (a) any loss or damage to the Hotel shall occur
prior to the Closing Date as a result of fire or other casualty, or (b) Seller receives notice that a governmental authority has initiated or threatened to initiate a condemnation proceeding affecting the Hotel, Seller shall give Buyer
immediate written notice of such loss, damage or condemnation proceeding (which notice shall include a certification of (i) the amounts of insurance coverages in effect with respect to the loss or damage and (ii) if known, the amount of
the award to be received in such condemnation). 
 13.2 Buyer’s Termination Right. If, prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, (a) any condemnation proceeding shall be pending against a substantial portion of the Hotel or (b) there is any substantial casualty loss or damage to the Hotel, Buyer
shall have the option to terminate this Contract, provided Buyer delivers written notice to Seller of its election within twenty (20) days after the date Seller has delivered Buyer written notice of any such loss, damage or condemnation as
provided above, and in such event, the Earnest Money Deposit, and any interest thereon, shall be delivered to Buyer and thereafter, except as expressly set forth herein, no party shall have any further obligation or liability to the other under this
Contract. In the context of condemnation, “substantial” shall mean condemnation of such portion of a Hotel (or access thereto) as could, in Buyer’s reasonable judgment, render use of the remainder impractical or unfeasible for the
uses herein contemplated, and, in the context of casualty loss or damage, “substantial” shall mean a loss or damage in excess of Two Hundred Thousand and No/100 Dollars ($200,000.00) in value. 
 13.3 Procedure for Closing. If Buyer shall not timely elect to terminate this Contract under Section 13.2 above, or if the loss, damage or
condemnation is not substantial, Seller agrees to pay to Buyer at the Closing all insurance proceeds or condemnation awards which Seller has received as a result of the same, plus an amount equal to the insurance deductible, and assign to Buyer all
insurance proceeds and condemnation awards payable as a result of the same, in which event the Closing shall occur without Seller replacing or repairing such damage. 
 ARTICLE XIV 
 DEFAULT REMEDIES 
 4.1 Buyer Default. If Buyer defaults under this Contract after the Review Period, and such default continues for thirty (30) days following
written notice from Seller (provided no notice shall extend the time for Closing), then at Seller’s election by written notice to Buyer, this Contract shall be terminated and of no effect, in which event the Earnest Money Deposit, including any
interest thereon, shall be paid to and retained by the Seller as Seller’s sole and exclusive remedy hereunder, and as liquidated damages for Buyer’s default or failure to close, and both Buyer and Seller shall thereupon be released from
all obligations hereunder. 
 14.2 Seller Default. If Seller defaults under this Contract, and such default continues for thirty
(30) days following written notice from Buyer, Buyer may elect, as Buyer’s sole and 

  

 28 

 
exclusive remedy, either (i) to terminate this Contract by written notice to Seller delivered to that Seller at any time prior to the completion of such
cure, in which event the Earnest Money Deposit, including any interest thereon, shall be returned to the Buyer, together with an amount to compensate Buyer for its actual out of pocket diligence costs and expenses (not to exceed $15,000) and
thereafter both the Buyer and Seller shall thereupon be released from all obligations with respect to this Contract, except as otherwise expressly provided herein; or (ii) to treat this Contract as being in full force and effect by written
notice to Seller delivered to Seller at any time prior to the completion of such cure, in which event the Buyer shall have the right to an action against the defaulting Seller for damages and/or specific performance. 
 14.3 Attorney’s Fees. Anything to the contrary herein notwithstanding, if it shall be necessary for either the Buyer or Seller to employ an
attorney to enforce its rights pursuant to this Contract because of the default of the other party, and the non-defaulting party is successful in enforcing such rights, then the defaulting party shall reimburse the non-defaulting party for the
non-defaulting party’s reasonable attorneys’ fees, costs and expenses. 
 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 Nine Hospitality Ownership, Inc.
 814 E. Main
Street
 Richmond, Virginia 23219
 Attention: Nelson
Knight
 Fax No.: (804) 344-8129

		
	with a copy to:	  	 Apple Nine Hospitality Ownership, Inc.
 814 E. Main
Street
 Richmond, Virginia 23219
 Attention: Legal
Dept.
 Fax No.: (804) 344-8129

  

 29 

			
	If to Seller:	  	 Valencia Tucson, L.L.C.
 c/o Sunway Hotel
Group
 10985 Cody, Suite 220
 Overland Park, Kansas
66210
 Attention: Donald E. Culbertson
 Fax No.: (913) 345-2444

		
	with a copy to:	  	 Shughart Thomson & Kilroy, P.C.
 120 W.
12th Street
 Kansas City, Missouri 64105
 Attn: Michael B. Shteamer
 Fax No.: (816) 374-0509

 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 Buyer and Seller with respect to the subject matter hereof. No modification of this Contract shall be binding unless signed by both Buyer and Seller. 
 16.4 Governing Law. The validity, construction, interpretation and performance of this Contract shall in all ways be governed and determined in
accordance with the laws of Arizona (without regard to conflicts of law principles). 
 16.5 Captions. The captions used in this
Contract have been inserted only for purposes of convenience and the same shall not be construed or interpreted so as to limit or define the intent or the scope of any part of this Contract. 
 16.6 Confidentiality. Except as either party may reasonably determine is required by law (including without limitation laws and regulations
applicable to Buyer or its Affiliates who may be public companies): (i) prior to Closing, Buyer and Seller shall not disclose the existence of this Contract or their respective intentions to purchase and sell the Property or generate or
participate in any publicity or press release regarding this transaction, except to Buyer’s and Seller’s legal counsel and lender, Buyer’s consultants and agents, the Manager, the Existing Manager, the Franchisor and the Title Company
and except as necessitated by Buyer’s Due Diligence Examination and/or shadow management, unless both Buyer and Seller agree in writing and as necessary to effectuate the transactions contemplated hereby and (ii) following Closing, the
parties shall coordinate any public disclosure or release of information related to the 

  

 30 

 
transactions contemplated by this Contract, and no such disclosure or release shall be made without the prior written consent of Buyer, and no press release
shall be made without the prior written approval of Buyer and Seller. 
 16.7 Closing Documents. To the extent any Closing documents
are not attached hereto at the time of execution of this Contract, Buyer and Seller shall negotiate in good faith with respect to the form and content of such Closing documents prior to Closing. 
 16.8 Counterparts. This Contract may be executed in counterparts by the parties hereto, and by facsimile signature, and each shall be considered
an original and all of which shall constitute one and the same agreement. 
 16.9 Severability. If any provision of this Contract
shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid or unenforceable, such judgment shall not affect, impair or invalidate the remainder of this Contract but shall be confined in its operation to the provision or
provisions hereof directly involved in the controversy in which such judgment shall have been rendered, and this Contract shall be construed as if such provision had never existed, unless such construction would operate as an undue hardship on
Seller or Buyer or would constitute a substantial deviation from the general intent of the parties as reflected in this Contract. 
 16.10
Interpretation. For purposes of construing the provisions of this Contract, the singular shall be deemed to include the plural and vice versa and the use of any gender shall include the use of any other gender, as the context may
require. 
 16.11 Time. Where performance, the giving of notice, or other act is required to occur within “X” days from and
after or following a date certain, and the “Xth” day occurs on a day other than a business day, then the date for performance, notice or other act shall automatically be extended until the next business day. 
 16.12 Further Acts. In addition to the acts, deeds, instruments and agreements recited herein and contemplated to be performed, executed and
delivered by Buyer and Seller, Buyer and Seller shall perform, execute and deliver or cause to be performed, executed and delivered at the Closing or after the Closing, any and all further acts, deeds, instruments and agreements and provide such
further assurances as the other party or the Title Company may reasonably require to consummate the transaction contemplated hereunder. 
 16.13 Joint and Several Obligations. If Seller consists of more than one person or entity, each such person or entity shall be jointly and severally liable with respect to the obligations of Seller under this Contract. 
 [Signatures Begin on Following Page] 
  

 31 

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

			
	SELLER:
	
	VALENCIA TUCSON, L.L.C., a Kansas limited liability company
		
	By:	 	 /s/ Donald E. Culbertson

	Name:	 	Donald E. Culbertson
	Title:	 	Managing Member
	
	BUYER:
	
	APPLE NINE HOSPITALITY OWNERSHIP, INC., a Virginia corporation
		
	By:	 	 /s/ Justin G. Knight

	Name:	 	Justin G. Knight
	Title:	 	President

  

 32 

 EXHIBIT “A” 
 LEGAL DESCRIPTION OF LAND 

 EXHIBIT B 
 LIST OF FF&E 
 To be provided by Seller within 10 business days 

 EXHIBIT C 
 LIST OF HOTEL CONTRACTS 
 EXHIBIT C-1 – Seller’s Hotel Contracts 
 To be provided by Seller and approved by Buyer during the Review Period 
 EXHIBIT C-2 – Other Hotel Contracts 
 To be provided by Seller and approved by Buyer during the Review Period 

 EXHIBIT D 
 CONSENTS AND APPROVALS 
 A. Consents Under Hotel Contracts 
 To be provided by Seller and approved by Buyer during the Review Period 
 B. Consents Under Other Contracts 
 To be provided by Seller and approved by Buyer during the Review Period 
 C. Governmental Approvals and Consents 
 To be provided by
Seller and approved by Buyer during the Review Period 

 EXHIBIT E 
 ENVIRONMENTAL REPORTS 
 To be provided by Seller within 5 business days 

 EXHIBIT F 
 CLAIMS OR LITIGATION PENDING 
 To be provided by Seller within 10 business days 

 EXHIBIT G 
 ESCROW AGREEMENT 
 THIS ESCROW AGREEMENT (this “Agreement”) made the
     day of             , 2008 by and among VALENCIA TUCSON, L.L.C., a Kansas limited liability company (“Seller”), APPLE NINE
HOSPITALITY OWNERSHIP, INC. a Virginia corporation, or its assigns (“Buyer”), and LANDAMERICA AMERICAN TITLE COMPANY (“Escrow Agent”). 
 R E C I T A L S 
 WHEREAS, pursuant to the provisions of Section 2.6 of that certain Purchase
Contract dated                     , 2008 (the “Contract”) between Seller and Buyer (the “Parties”), the
Parties have requested Escrow Agent to hold in escrow in accordance with the provisions, upon the terms, and subject to the conditions, of this Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and 
 WHEREAS, the Deposit shall be delivered to Escrow Agent in accordance with the terms of the Contract and this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Parties hereto agree as follows: 
 1. Seller and Buyer hereby appoint Escrow Agent to serve as escrow agent hereunder, and the Escrow Agent agrees to act as escrow agent hereunder in
accordance with the provisions, upon the terms and subject to the conditions of this Agreement. The Escrow Agent hereby acknowledges receipt of the Deposit. Escrow Agent shall invest the Deposit as directed by Buyer. 
 2. Subject to the rights and obligations to transfer, deliver or otherwise dispose of the Deposit, Escrow Agent shall keep the Deposit in Escrow
Agent’s possession pursuant to this Agreement. 
 3. A. Buyer shall be entitled to an immediate return of the Deposit at any time prior
to the expiration of the Review Period (as defined in Section 3.1 of the Contract) by providing written notice to Escrow Agent stating that Buyer has elected to terminate the Contract pursuant to Section 3.1. 
 B. If at any time after the expiration of the Review Period, Buyer claims entitlement to all or any portion of the Deposit, Buyer shall give written
notice to Escrow Agent stating that Seller has defaulted in the performance of its obligations under the Contract beyond the applicable grace period, if any, or that Buyer is otherwise entitled to the return of the 

  

 -i- 

 
Deposit or applicable portion thereof and shall direct Escrow Agent to return the Deposit or applicable portion thereof to Buyer (the
“Buyer’s Notice”). Escrow Agent shall promptly deliver a copy of Buyer’s Notice to Seller. Seller shall have three (3) business days after receipt of the copy of Buyer’s Notice to deliver written notice to
Escrow Agent and Buyer objecting to the release of the Deposit or applicable portion thereof to Buyer (“Seller’s Objection Notice”). If Escrow Agent does not receive a timely Seller’s Objection Notice, Escrow Agent
shall release the Deposit or applicable portion thereof to Buyer. If Escrow Agent does receive a timely Seller’s Objection Notice, Escrow Agent shall release the Deposit or applicable portion thereof only upon receipt of, and in accordance
with, written instructions signed by Seller and Buyer, or the final order of a court of competent jurisdiction. 
 C. If, at any time after
the expiration of the Review Period, Seller claims entitlement to the Deposit or applicable portion thereof, Seller shall give written notice to Escrow Agent stating that Buyer has defaulted in the performance of its obligations under the Contract,
and shall direct Escrow Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s Notice”). Escrow Agent shall promptly deliver a copy of Seller’s Notice to Buyer. Buyer shall have three
(3) business days after receipt of the copy of Seller’s Notice to deliver written notice to Escrow Agent and Seller objecting to the release of the Deposit or applicable portion thereof to Seller (“Buyer’s Objection
Notice”). If Escrow Agent does not receive a timely Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable portion thereof to Seller. If Escrow Agent does receive a timely Seller’s Objection Notice,
Escrow Agent shall release the Deposit or applicable portion thereof only upon receipt of, and in accordance with, written instructions signed by Buyer and Seller, or the final order of a court of competent jurisdiction. 
 4. In the performance of its duties hereunder, Escrow Agent shall be entitled to rely upon any document, instrument or signature purporting to be genuine
and purporting to be signed by and of the Parties or their successors unless Escrow Agent has actual knowledge to the contrary. Escrow Agent may assume that any person purporting to give any notice or instructions in accordance with the provisions
hereof has been duly authorized to do so. 
 5. A. Escrow Agent shall not be liable for any error of judgment, or any action taken or omitted
to be taken hereunder, except in the case of Escrow Agent’s willful, bad faith misconduct or negligence, nor shall Escrow Agent be liable for the conduct or misconduct of any employee, agent or attorney thereof. Escrow Agent shall be entitled
to consult with counsel of its choosing and shall not be liable for any action suffered or omitted in accordance with the advice of such counsel. 
 B. In addition to the indemnities provided below, Escrow Agent shall not be liable for, and each of the Parties jointly and severally hereby indemnify and agree to save harmless and reimburse Escrow Agent from and against all loss, cost,
liability, damage and expense, including outside counsel fees in connection with its acceptance of, or the performance of its duties and obligations under, this Agreement, including the costs and expenses of defending against any claim arising
hereunder unless the same are caused by the willful, bad faith misconduct or negligence of Escrow Agent. 
  

 -ii- 

 C. Escrow Agent shall not be bound or in any way affected by any notice of any modification or
cancellation of this Agreement, or of any fact or circumstance affecting or alleged to affect rights or liabilities hereunder other than as is herein set forth, or affecting or alleged to affect the rights and liabilities of any other person, unless
notice of the same is delivered to Escrow Agent in writing, signed by the proper parties to Escrow Agent’s satisfaction and, in the case of modification, unless such modification shall be approved by Escrow Agent in writing. 
 6. A. Escrow Agent and any successor escrow agent, as the case may be, may resign his or its duties and be discharged from all obligations hereunder at
any time upon giving five (5) days’ prior written notice to each of the Parties hereto. The Parties hereto will thereupon jointly designate a successor escrow agent hereunder within said five (5) day period to whom the Deposit shall
be delivered. In default of such a joint designation of a successor escrow agent, Escrow Agent shall retain the Deposit as custodian thereof until otherwise directed by the Parties hereto, jointly, or until the Deposit is released in accordance with
clause (B) below, in each case, without liability or responsibility. 
 B. Anything in this Agreement to the contrary notwithstanding,
(i) Escrow Agent, on notice to the Parties hereto, may take such other steps as the Escrow Agent may elect in order to terminate its duties as Escrow Agent hereunder, including, but not limited to, the deposit of the Deposit with a court of
competent jurisdiction in the Commonwealth of Virginia and the commencement of an action of interpleaders, and (ii) in the event of litigation between any of the Parties with respect to the Deposit, Escrow Agent may deposit the Deposit with the
court in which said litigation is pending and, in any such event, Escrow Agent shall be relieved and discharged from any liability or responsibility to the Parties hereto. Escrow Agent shall not be under any obligation to take any legal action in
connection with this Agreement or its enforcement or to appear in, prosecute or defend any action or legal proceeding which, in the opinion of Escrow Agent, would or might involve Escrow Agent in any cost, expense, loss, damage or liability, unless
and as often as requested, Escrow Agent shall be furnished with security and indemnity satisfactory to Escrow Agent against all such costs, expenses (including attorney’s fees), losses, damages and liabilities. 
 7. All notices required herein shall be deemed to have been validly given, as applicable: (i) if given by telecopy, when the telecopy is transmitted
to the party’s telecopy number specified below and confirmation of complete receipt is received by the transmitting party during normal business hours or on the next business day if not confirmed during normal business hours, (ii) if hand
delivered to a party against receipted copy, when the copy of the notice is receipted or rejected, (iii) if given by certified mail, return receipt requested, postage prepaid, two (2) business days after it is posted with the U.S. Postal
Service at the address of the party specified below or (iv) on the next delivery day after such notices are sent by recognized and reputable commercial overnight delivery service marked for next day delivery, return receipt requested or
similarly acknowledged: 
  

					
		 	 (i)     If addressed to Seller, to:
  
 Valencia Tucson, L.L.C.
 c/o Sunway Hotel Group
 10985 Cody,
Suite 220
 Overland Park, Kansas 66210
 Attention: Donald E. Culbertson
 Fax No.: (913) 345-2444
	 	

  

 -iii- 

					
		 	 with a copy to:
  
 Shughart Thomson & Kilroy, P.C.
 120 W. 12th Street
 Kansas City, Missouri 64105
 Attn: Michael B. Shteamer
 Fax No.: (816) 374-0509
  
 (ii)    If addressed to Buyer,
to:
  
 Apple Nine Hospitality Ownership, Inc.
 814 E. Main Street
 Richmond, Virginia 23219
 Attn: Sam
Reynolds
 Fax No.: (804) 344-8129
  
 with a copy to:
  
 Apple Nine Hospitality Ownership, Inc.
 814 E. Main Street
 Richmond, Virginia 23219
 Attn: Legal Dept.
 Fax No.:
(804) 727-6349
  
 (iii)  If
addressed to Escrow Agent, to:
  
 LandAmerica Dallas National Division
 2505 N. Plano Road, Ste. 3100
 Richardson, Texas 75082
 Attn: Debby
Moore
 Fax No.: (214) 570-0210
	 	

 or such other address or addresses as may be expressly designated by any party by notice given in accordance with
the foregoing provisions and actually received by the party to whom addressed. 
 8. This Agreement may be executed in any number of
counterparts each of which shall be deemed an original and all of which, together, shall constitute one and the same Agreement. 
  

 -iv- 

 9. The covenants, conditions and agreements contained in this Agreement shall bind and inure to the
benefit of each of the Parties hereto and their respective successors and assigns. 
 IN WITNESS WHEREOF the Parties have executed this
Agreement as of the day and year first above written. 
  

			
	SELLER:
	
	VALENCIA TUCSON, L.L.C.
		
	By:	 	  

	Name:	 	  

	
	BUYER:
	
	APPLE NINE HOSPITALITY OWNERSHIP, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ESCROW AGENT:
	
	LANDAMERICA AMERICAN TITLE COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 -v-Credit Agreement dated July 2, 2008

 EXHIBIT 10.1 
  

			
	RBS CITIZENS, NATIONAL ASSOCIATION	  	CREDIT AGREEMENT

 This Credit Agreement is made this
2nd day of July, 2008, by and between the following parties: 
 RBS Citizens, National Association (the “Bank”), a national banking association having a principal place of business at 28 State Street, Boston, Massachusetts 02109; and 
 Cybex International, Inc. (the “Borrower”), a New York corporation duly organized and having a principal place of business at 10 Trotter
Drive, Medway, Massachusetts 02053; 
 in consideration of the mutual covenants and benefits to be derived herefrom. 
 W I T N E S S E T H: 
 SECTION 1. DEFINITIONS AND RULES OF INTERPRETATION 
 1.1
Definitions. All capitalized terms used in this Agreement, any Related Agreement (as hereinafter defined) or in any certificate, report or other document made or delivered pursuant to this Agreement (unless otherwise defined therein)
shall have the meanings assigned to them below. 
 Account means account #1303352505 maintained by the Bank in the name of the Borrower. 

Accounts and Accounts Receivable include, without limitation, “accounts” and “accounts receivable” as such terms are defined in the
Uniform Commercial Code. 
 Advance and Advances means the loans made by the Bank to the Borrower pursuant to the Revolving Credit Facility.

 Affiliate means any person, corporation or other entity which directly or indirectly controls, or is controlled by, or is under common control with
the Borrower or any Subsidiary. 
 Agreement means this Credit Agreement, as it may be amended, modified, supplemented or restated from time to time.

 Applicable Margin means (i) with respect to the Revolving Credit Facility, for any LIBOR Rate Loans and any LIBOR Advantage Rate Loans, plus
one and one-quarter (1.25%) percent per annum, and for any Prime Rate Loans, less one (1.00%) percent per annum, and (ii) with respect to the Unused Fee, one quarter of one (.25%) percent per annum. 
 Bank shall have the meaning given such term in the Preamble of this Agreement. 
 Borrower shall have the meaning given such term in the Preamble of this Agreement. 

 Business Day means: 
 (a) any day which is neither a Saturday or Sunday nor a legal holiday on which commercial banks are authorized or required to be closed in Boston, Massachusetts; 
 (b) when such term is used to describe a day on which a borrowing, payment, prepaying, or repaying is to be made in respect of any LIBOR Rate Loan or any
LIBOR Advantage Rate Loan, any day which is: (i) neither a Saturday or Sunday nor a legal holiday on which commercial banks are authorized or required to be closed in New York City; and (ii) a London Banking Day; and 
 (c) when such term is used to describe a day on which an interest rate determination is to be made in respect of any LIBOR Rate Loan or any LIBOR
Advantage Rate Loan, any day which is a London Banking Day. 
 Capital Assets means assets that in accordance with GAAP are required or permitted to
be depreciated on a balance sheet. 
 Capital Expenditures means, for any period, the aggregate amount of all expenditures for the acquisition,
construction, improvement, replacement or purchase of Capital Assets and Intangible Assets, including, but not limited to, expenditures under Capital Leases. 
 Capital Leases means capital leases, conditional sales contracts and other title retention agreements relating to the purchase or acquisition of Capital Assets. 
 Cash Taxes means all Income Tax liabilities incurred and paid by the Borrower during the applicable period. 
 Collateral shall have the meaning ascribed thereto in the Security Agreement. 
 Control shall be deemed to exist if any person,
entity or corporation, or combination thereof shall have possession, directly or indirectly, of the power to direct the management or policies of the Borrower and shall be deemed to include UM Holdings Ltd. and its Affiliates, and any person or
group which acquires, directly or indirectly, a greater percentage of the voting stock of the Borrower than UM Holdings Ltd. and its Affiliates hold at such time. 
 Current Maturity of Long-Term Debt (“CMLTD”) means the current maturity of long-term Indebtedness paid during the applicable period, including, but not limited to, amounts required to be paid during such period under
Capital Leases. 
 Cybex UK means Cybex International UK Limited, a United Kingdom corporation, with a principal place of business at Oak Tree House,
Atherstone Road, Measham, Derbyshire, DE12 7EL England. 
 Debt Service Coverage Ratio means, during the applicable period, that quotient equal to
(A) the aggregate of (i) EBITDA, minus (ii) Dividends or S-distributions, minus (iii) unfinanced Capital Expenditures; divided by (B) the sum of (i) Interest and (ii) Current Maturity of Long-Term Debt and
(iii) Cash Taxes; that is, 
  

					
		  	 EBITDA - Dividends - unfinanced Cap X
	  	
		  	Interest + CMLTD + Cash Taxes	  	

 Default shall have the meaning given such term in Section 9 of this Agreement. 
 Default Rate shall have the meaning given such term in Section 3.4 hereof. 
 Dividends means, for the applicable period, the aggregate of all amounts paid (without duplication) as dividends, distributions or owner withdrawals, and includes any purchase, redemption or other retirement of
any shares or other ownership interest directly or indirectly through a Subsidiary or otherwise and includes return of capital to shareholders, partners or members. 
 Domestic Eligible Receivables means such of the Borrower’s Eligible Receivables which are owed by account debtors whose principal place of business is in the United States. 
 EBITDA (“EBITDA”) means, for the applicable period, for the Borrower and its Subsidiaries on a consolidated basis, an amount
equal to Net Income for such period 
 plus: (a) the following to the extent deducted in calculating such Net Income: 

(i) consolidated interest charges for such period, 
 (ii) the provision for federal, state, provincial, local and foreign income taxes payable by the Borrower and its Subsidiaries for such period, 
 (iii) the amount of depreciation and amortization expense deducted in determining such Net Income, 
 (iv) non-cash charges for stock based compensation, and 
 (v) non-cash extraordinary and unusual or non-recurring writedowns or writeoffs 
 minus (b) any
extraordinary , unusual, non-recurring or non-operating gains; 
 all calculated for the Borrower and its Subsidiaries in accordance
with GAAP on a consolidated basis. 
 Eligible Inventory means that portion of Borrower’s Inventory comprised of raw materials and finished goods
and products (excluding work in process) valued at the lower of cost or market value, excluding (i) the Borrower’s Inventory located at: (a) any location outside of the United States or any public warehouse for which the Bank has not
been furnished an inventory agreement in a form reasonably acceptable to the Bank, (b) any fulfillment house or (c) with any co-packers or (ii) Inventory comprised of manuals, packaging materials or promotional items, and less any
amounts reserved for by the Borrower (excluding reserves relating to excluded inventory categories) on its most recent financial statements. 
 Eligible
Receivables means such of the Borrower’s Accounts and Accounts Receivable as arise in the ordinary course of the Borrower’s business for goods sold and/or services rendered by the Borrower, which Accounts and Accounts Receivable have
been determined by the Bank to be satisfactory and have been earned by performance and are owed to the Borrower by such of the 

 
Borrower’s trade customers as the Bank determines to be satisfactory, in the Bank’s sole reasonable discretion in each instance. Eligible
Receivable shall not include the following Accounts and Accounts Receivable: 
 (a) any which is evidenced by promissory notes or chattel
paper (unless otherwise agreed to by the Bank in its sole and absolute discretion); 
 (b) any which is owed by employees or Affiliates of
the Borrower; 
 (c) any which is more than sixty (60) days old as measured from due date; 
 (d) [Intentionally Omitted.]; 
 (e) any
which arises out of any sale made on a “bill and hold,” dating, bonded, or delayed shipping basis; 
 (f) any as to which the
account debtor holds or is entitled to any claim, counterclaim, set off, or chargeback, or which constitutes retainage; 
 (g) any which is
subject to a lien in favor of any person or entity other than the Bank; 
 (h) any amount which in the aggregate exceeds $300,000 which is
owed by the United States federal government unless properly perfected with an assignment of claims in accordance with applicable law; 
 (i)
any on which the Bank does not have a properly perfected first security interest; 
 (j) any which are due from any single account debtor if
more than fifty percent (50%) of the aggregate amount of all Accounts Receivable owing from such account debtor is more than sixty (60) days old as measured from due date; and 
 (k) any which the Bank in its reasonable discretion considers unacceptable for any reason. 
 Events of Default shall have the meaning given such term in Section 9 of this Agreement. 
 Foreign Eligible
Receivables means such of the Borrower’s Eligible Receivables which are owed by account debtors whose principal place of business is not in the United States. 
 Funding Date means the      day of July, 2008. 
 Generally Accepted Accounting
Principles (“GAAP”) means generally accepted accounting principles in the United States of America, as from time to time in effect; provided, however, that for purposes of compliance with this Agreement and the related
definitions, GAAP means such principles as in effect on the date of the preparation and delivery of the financial statements described in Section 6.1 and consistently followed, without giving effect to any subsequent changes other than changes
consented to in writing by the Bank. 

 Guarantor means Cybex UK and any other Person who may become a Guarantor of the Borrower’s obligations to the
Bank. 
 Guaranty shall have the meaning given such term in Section 3.9 of this Agreement. 
 Hedging Contracts means, interest rate swap agreements, interest rate cap agreements and interest rate collar agreements, or any other agreements or arrangements
entered into between the Borrower and the Bank and designed to protect the Borrower against fluctuations in interest rates or currency exchange rates. 
 Hedging Obligations means, with respect to the Borrower, all liabilities of the Borrower to the Bank under Hedging Contracts. 
 Indebtedness means all obligations that in accordance with GAAP should be classified as liabilities upon a balance sheet or to which reference should be made by the footnotes thereto. 
 Indemnified Person shall have the meaning given that term in Section 10.6 of this Agreement. 
 Intangible Assets means the sum of Indebtedness due from Affiliates, Subsidiaries, officers, directors, employees or shareholders and related parties, plus assets that in accordance with GAAP are properly
classifiable as intangible assets, including, but not limited to, goodwill, franchises, licenses, patents, trademarks, trade names and copyrights. 
 Interest Payment Date means: (a) as to any Prime Rate Loan, the first Business Day of the calendar
month which follows the date such Prime Rate Loan, as applicable, was advanced by the Bank and on the like day of each calendar month thereafter; (b) as to any LIBOR Advantage Rate Loan, initially, the 2nd day of August, 2008, and thereafter the numerically corresponding date of each month, provided that if a month does not contain a day that numerically corresponds to the date of the
Interest Payment Date, the Interest Payment Day shall be last day of such month; and (c) as to any LIBOR Rate Loan with an Interest Period of three months or less, the last Business Day of such Interest Period, and as to any LIBOR Rate Loan
having an Interest Period longer than three months, each Business Day which is three months (or a whole multiple thereof) after the first day of such Interest Period, and the last day of such Interest Period, provided that if a month does not
contain a day that numerically corresponds to the date of the Interest Payment Date, the Interest Payment Date shall be the last Business Day of such month. 
 Interest Period means: 
 for any Prime Rate Loan, consecutive periods of one (1) day each; 
 for any LIBOR Advantage Rate Loan (Interest Periods for which may also be referred to as “LA Interest Periods”), initially, the period
commencing as of the date of this Agreement (the “Start Date”) and ending on the numerically corresponding date one month later and thereafter each corresponding period ending on the day of such month that numerically corresponds to
the Start Date, and if an Interest Period is to end in a month for which there is no day which numerically corresponds to the Start Date, the Interest Period will end on the last Business Day of such month; notwithstanding the date of commencement
of any LA Interest Period, interest shall only begin to accrue as of the date the initial LIBOR Advantage Rate Loan was made; 

 for any LIBOR Rate Loan (Interest Periods for which may also be referred to as “LIBOR Interest
Periods”), 
 (i) initially, the period beginning on (and including) the date on which such LIBOR Rate Loan is made or continued as,
or converted into, a LIBOR Rate Loan pursuant to Section 3.1 and ending on (but excluding) the day which numerically corresponds to such date one, two, three, six or twelve months thereafter (or, if such month has no numerically corresponding
day, on the last Business Day of such month), in each case as the Borrower may select in its notice pursuant to Section 3.1; and 
 (ii)
thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such LIBOR Rate Loan and ending one, two, three, six, nine or twelve months thereafter as selected by the Borrower by irrevocable notice to the
Bank pursuant to Section 3.1; 
 provided, however, that: 
 (a) the Borrower shall not be permitted to select Interest Periods for Advances made pursuant to the Revolving Credit Facility to be in effect at any one time which have expiration dates occurring on more than three
(3) different dates; 
 (b) Interest Periods commencing on the same date for LIBOR Rate Loans or LIBOR Advantage Rate Loans comprising
part of the same Advance under this Agreement shall be of the same duration; 
 (c) Interest Periods for LIBOR Rate Loans in connection with
which Borrower has or may incur Hedging Obligations with the Bank shall be of the same duration as the relevant periods set under such Hedging Obligation; 
 (d) if such Interest Period would otherwise end on a day which is not a Business Day, such Interest Period shall end on the next following Business Day unless such day falls in the next calendar month, in which case
such Interest Period shall end on the first preceding Business Day; and 
 (e) no Interest Period may end later than the Revolving Credit
Termination Date. 
 Internal Revenue Code means the Internal Revenue Code of 1986, as amended from time to time. 
 Inventory means all goods now owned or hereinafter acquired and intended for sale, including raw materials, work-in-process and finished goods, which would, in
accordance with GAAP, be classified as inventory. 
 L/C Notice shall have the meaning assigned to it in Section 2.8(a). 
 Letters of Credit shall mean Letters of Credit issued for the account of the Borrower in accordance with the provisions of Section 2.8. 

 Leverage Ratio means, as of the applicable measurement date, the ratio of Total Funded Debt to EBITDA. 

LIBOR Advantage Rate means relative to any LA Interest Period, the offered rate for delivery in two London Banking Days of deposits of U.S. Dollars which the
British Bankers’ Association fixes as its LIBOR rate as of 11:00 a.m. London time on the day on which the LA Interest Period commences. If the first day of any LA Interest Period is not a day which is both a (i) Business Day, and
(ii) a London Banking Day, the LIBOR Advantage Rate shall be determined in reference to the next preceding day which is both a Business Day and a London Banking Day. If for any reason the LIBOR Advantage Rate is unavailable and/or the Bank is
unable to determine the LIBOR Advantage Rate for any LA Interest Period, the Bank may, at its discretion, either: (a) select a replacement index based on the authentic means of quotations, if any, of the interbank offered rate by first class
banks in London or New York with comparable maturities or (b) accrue interest at a rate equal to the Bank’s Prime Rate as of the first day of any LA Interest Period for which the LIBOR Advantage Rate is unavailable or can not be
determined. 
 LIBOR Advantage Rate Loan means any loan or Advance the rate of interest applicable to which is based upon the LIBOR Advantage Rate.

 LIBOR Breakage Fee shall have the meaning given such term in Section 3.7(b) of this Agreement. 
 LIBOR Lending Rate means, relative to any LIBOR Rate Loan to be made, continued or maintained as, or converted into, a LIBOR Rate Loan for any Interest Period, a
rate per annum determined pursuant to the following formula: 
  

							
	 LIBOR Lending Rate
	 	=	 	LIBOR RATE	  	
		 		 	(1.00 - LIBOR Reserve Percentage)	  	

 LIBOR Rate means relative to any Interest Period for LIBOR Rate Loans, the offered rate for deposits of
U.S. Dollars in an amount approximately equal to the amount of the requested LIBOR Rate Loan for a term coextensive with the designated Interest Period which the British Bankers’ Association fixes as its LIBOR rate as of 11:00 a.m. London time
on the day which is two (2) London Banking Days prior to the beginning of such Interest Period. 
 LIBOR Rate Loan means any loan or Advance the
rate of interest applicable to which is based upon the LIBOR Rate. 
 LIBOR-Reference Banks Lending Rate means, relative to a LIBOR-Reference Banks
Rate Loan for any Interest Period, a rate per annum determined pursuant to the following formula: 
  

									
		 	 LIBOR-Reference Banks Lending Rate
	 	=	 	 LIBOR-Reference Banks Rate
	  	
		 		 		 	(100 - LIBOR Reserve Percentage)	  	

 LIBOR-Reference Banks Loan means the Loan for any period(s) when the rate of interest applicable to the
Loan is calculated by reference to the LIBOR-Reference Banks Rate. 

 LIBOR-Reference Banks Rate means relative to any Interest Period for LIBOR-Reference Banks Loans, the rate for
which deposits in U.S. Dollars are offered by the Reference Banks to prime banks in the London interbank market in an amount approximately equal to the amount requested LIBOR-Reference Banks Loan at approximately 11:00 a.m., London time on the day
that is two London Banking Days prior to the beginning of such Interest Period. The Bank will request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such quotations are provided, the
rate for such date will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for such date will be the arithmetic mean of the rates quoted by major banks in New York City selected by the Bank, at
approximately 11:00 a.m. New York City time for loans in U.S. Dollars to leading European banks for such Interest Period and in an amount approximately equal to the amount requested LIBOR-Reference Banks Loan. 
 LIBOR Reserve Percentage means, relative to any day of any LIBOR Interest Period, the maximum aggregate (without duplication) of the rates (expressed as a decimal
fraction) of reserve requirements (including all basic, emergency, supplemental, marginal and other reserves and taking into account any transitional adjustments or other scheduled changes in reserve requirements) under any regulations of the Board
of Governors of the Federal Reserve System (the “Board”) or other governmental authority having jurisdiction with respect thereto as issued from time to time and then applicable to assets or liabilities consisting of
“Eurocurrency Liabilities”, as currently defined in Regulation D of the Board, having a term approximately equal or comparable to such LIBOR Interest Period. 
 Loan or Loans means any Advances made pursuant to the Revolving Credit Facility. 
 Loan Request shall have the
meaning given that term in Section 3.1(a) of this Agreement. 
 London Banking Day means a day on which dealings in US dollar deposits are
transacted in the London interbank market. 
 Material Adverse Effect means any event or occurrence which has a material adverse effect on the
business, assets, financial condition, operations or prospects of the Borrower and its Subsidiaries, taken as a whole. 
 Maximum Availability shall
have the meaning given such term in Section 2.1(b) hereof. 
 Net Income means net income as determined in accordance with GAAP. 
 Note means the Revolving Credit Note. 
 Notice of Rate
Selection shall have the meaning given that term in Section 3.1(b) of this Agreement. 
 Permitted Liens shall have the meaning given that
term in Section 4.11 of this Agreement. 
 Person shall mean any individual, partnership, joint venture, firm, corporation, limited liability
company, association, trust or other entity or enterprise (whether or not incorporated). 

 Prime Rate means a fluctuating rate of interest per annum equal to that rate per annum announced by RBS Citizens,
National Association or any successor, from time to time, as being its corporate base rate, base rate or prime rate of interest, with a change in the Prime Rate to take effect simultaneously with each change in such announced rate. It is understood
that such announced corporate base rate, base rate or prime rate is merely a reference rate, not necessarily the lowest rate, which serves as the basis upon which effective rates of interest are calculated for obligations making reference thereto.

 Prime Rate Loan means any loan or Advance the rate of interest applicable to which is based upon the Prime Rate. 
 Reference Banks means four major banks in the London interbank market. 
 Release shall have the meaning given that term in Section 10.6 of this Agreement. 
 Related Agreements means the various
documents, instruments and agreements delivered by the Borrower to the Bank in connection with the establishment of the Loan. 
 Revolving Credit
Facility shall have the meaning given that term in Section 2.1(a) of this Agreement. 
 Revolving Credit Facility Limit shall mean Fifteen
Million Dollars ($15,000,000.00). 
 Revolving Credit Loans means revolving credit Advances made or to be made by the Bank to the Borrower pursuant to
Section 2 hereof. 
 Revolving Credit Note means the promissory Revolving Credit Note executed and delivered by the Borrower, which evidences the
Revolving Credit Facility as provided in Section 2.1 of this Agreement. 
 Revolving Credit Termination Date means July 2, 2011. 
 Security Agreement shall have the meaning given such term in Section 3.9 of this Agreement. 
 Solvent means (a) the fair value of the property of the subject person or entity, exceeds its/their total liabilities (including probable liability in respect of contingent liabilities), (b) the
present fair saleable value of the assets of such person or entity is not less than the amount that will be required to pay its probable liability on its debts as they become absolute and matured, (c) such person or entity does not intend to,
and does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature, and (d) such person or entity is not engaged, and is not about to engage, in business or a transaction for which its
property would constitute an unreasonably small capital. 
 Start Date shall have the meaning given such term in the text of the definition
“Interest Period” in Section 1.1 of this Agreement. 
 Subordinated Debt means Indebtedness of Borrower subordinated in writing in a
manner approved by the Bank to the prior payment, in full, of the Note. 

 Subsidiary means any corporation, person or entity, a majority of whose outstanding shares or other ownership
interests having ordinary voting powers, shall at any time be owned or Controlled by the Borrower or one or more of its Subsidiaries. 
 Taxes means
all taxes, charges, fees, duties, levies or other assessments, including income, gross receipts, net proceeds, ad valorem, turnover, real and personal property (tangible and intangible), sales, use, franchise, excise, value added, stamp, leasing,
lease, user, transfer, fuel, excess profits, occupational, interest equalization, windfall profits, severance, employee’s income withholding, unemployment and social security taxes, which are imposed by any governmental authority, and such item
shall include any interest, penalties or additions to tax attributable thereto, but excluding taxes imposed on or measured by the Bank’s net income or receipts. 
 Total Assets means total assets determined in accordance with GAAP. 
 Total Funded Debt shall mean the
aggregate of all amounts outstanding under any Capital Leases, the Revolving Credit Facility, and any other bank debt. 
 Total Liabilities means
total Indebtedness determined in accordance with GAAP. 
 Unfinanced Capital Expenditures means Capital Expenditures minus long term Indebtedness
incurred in connection with such Capital Expenditures. 
 Uniform Commercial Code (“UCC”) means the Uniform Commercial Code as in
effect in Massachusetts (Massachusetts General Laws, Chapter 106, §§1-101, et seq.). 
 1.2 Accounting Terms. All
terms of an accounting character shall have the meanings assigned thereto by GAAP applied on a basis consistent with the financial statements referred to in Section 6.1 of this Agreement, modified to the extent, but only to the extent, that
such meanings are specifically modified herein. 
 1.3 Rules of Interpretation. The following rules of interpretation shall
govern this Agreement: 
 (i) A reference to any document or agreement shall include such document or agreement as amended, modified or
supplemented from time to time in accordance with its terms and the terms of this Agreement. 
 (ii) The singular includes the plural and the
plural includes the singular. 
 (iii) A reference to any law includes any amendment or modification to such law. 
 (iv) A reference to any person includes its permitted successors and permitted assigns. 
 (v) The words “include”, “includes” and “including” are not limiting. 

 (vi) All terms not specifically defined herein or by GAAP, which terms are defined in the Uniform
Commercial Code as in effect in the Commonwealth of Massachusetts, have the meanings assigned to them therein. 
 (vii) The words
“herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement as a whole and not to any particular section or subdivision of this Agreement. 
 SECTION 2. THE REVOLVING CREDIT FACILITY 
 2.1 The Revolving Credit Facility. 
 (a) Pursuant to the terms of this Agreement and upon the satisfaction of the
conditions precedent and referred to in Section 5 hereof, the Bank hereby establishes a revolving line of credit (the “Revolving Credit Facility”) in the Borrower’s favor pursuant to which the Borrower may borrow from the
Bank advances for working capital purposes, letters of credit and general corporate purposes as set forth herein not to exceed the Revolving Credit Facility Limit, less in each instance the aggregate amount of any Letters of Credit issued for the
benefit of the Borrower. The Borrower may request Advances in an aggregate amount not to exceed the lesser of the Revolving Credit Facility Limit and the Maximum Availability (as defined below). All Loans made by the Bank under this Agreement, and
all of the Borrower’s other liabilities to the Bank under or pursuant to this Agreement, are payable on the Revolving Credit Termination Date. If any Advances are made during the period from the date hereof through the Revolving Credit
Termination Date, unless an Event of Default occurs, the Borrower may borrow, repay and reborrow in accordance with this Agreement. All loans made by the Bank under this Agreement, and all of the Borrower’s other liabilities to the Bank under
or pursuant to this Agreement, are payable on the Revolving Credit Termination Date. 
 (b) As used herein, the term “Maximum
Availability” refers at any time to the lesser of (i) or (ii), below: 
  

	 	(i)	up to (A) Fifteen Million Dollars ($15,000,000.00); minus (B) the sum of the aggregate amounts then undrawn on all outstanding letters of credit, acceptances, or any other
accommodations issued or incurred by the Bank for the account and/or the benefit of the Borrower. 

  

	 	(ii)	up to (A) eighty five percent (85%) of Domestic Eligible Receivables; plus (B) fifty percent (50%) of Foreign Eligible Receivables; plus (C) fifty percent
(50%) of the value of Borrower’s Eligible Inventory; minus (D) the sum of the aggregate amounts then undrawn on all outstanding letters of credit, acceptances, or any other accommodations issued or incurred by the Bank for the account
and/or the benefit of the Borrower. 

 (c) The Revolving Credit Facility is established for the purpose of financing the
Borrower’s working capital, letters of credit and general business needs, and Advances under the Revolving Credit Facility shall be evidenced by the Revolving Credit Note, which shall be in substantially the form of Exhibit A annexed
hereto. 

 2.2 Advances. The Revolving Credit Facility shall be evidenced by, among other things, the
Revolving Credit Note, and interest on each Advance made pursuant to the Revolving Credit Facility shall be paid in arrears. Interest on each Advance made pursuant to the Revolving Credit Facility shall accrue as set forth in Section 2.3 below
and shall be paid in arrears. All unpaid principal amounts due under all Advances, plus accrued interest and costs thereon, shall be paid in full and satisfied on the Revolving Credit Termination Date. Requests for Advances shall be made pursuant to
Section 3.1 of this Agreement. 
 2.3 Interest on Advances. Except as otherwise provided in Section 3.4, the
outstanding principal balance of each Advance made pursuant to the Revolving Credit Facility shall bear interest based upon either the Prime Rate, the LIBOR Rate or the LIBOR Advantage Rate at a per annum rate during each Interest Period at the rate
selected by the Borrower from the interest rate options provided below: 
 (a) To the extent that all or any portion of an Advance bears
interest during an Interest Period by reference to the Prime Rate, as may be selected by the Borrower in accordance with Section 3.1 hereof, such Advance shall bear interest during such Interest Period at a per annum rate equal to the Prime
Rate less the Applicable Margin. 
 (b) To the extent that all or any portion of an Advance bears interest during a LIBOR Interest Period by
reference to the LIBOR Rate, as may be selected by the Borrower in accordance with Section 3.1 hereof, such Advance shall bear interest during such LIBOR Interest Period at a per annum rate equal to the aggregate of the LIBOR Rate as then in
effect, plus the Applicable Margin. 
 (c) To the extent that all or any portion of an Advance bears interest during an LA Interest Period by
reference to the LIBOR Advantage Rate, as may be selected by the Borrower in accordance with Section 3.1 hereof, such Advance shall bear interest during such LA Interest Period at a per annum rate equal to the aggregate of the LIBOR Advantage
Rate as then in effect, plus the Applicable Margin. 
 2.4 Payments of Principal and Interest. Interest accruing on Advances
made under the Revolving Credit Note shall be payable in arrears on each Interest Payment Date. If not sooner paid, all principal and all accrued and unpaid interest shall be due and payable on the Revolving Credit Termination Date. 
 2.5 Mandatory Prepayment. If, at any time, the aggregate principal amount of all Advances made and outstanding under the Revolving Credit
Facility shall exceed the Maximum Availability, the Borrower shall immediately prepay so much of the outstanding principal balance, together with accrued interest on the portion of principal so prepaid, as shall be necessary in order that the unpaid
principal balance of all Revolving Credit Loans outstanding under the Revolving Credit Facility, after giving effect to such prepayments, shall not be in excess of the Maximum Availability. Any such prepayment will, at the option of the Bank, be
applied first to the payment of all costs and expenses incurred by the Bank and arising out of this Agreement, the Revolving Credit Note or any Related Agreement and which has not been paid or reimbursed to the Bank, second to accrued interest to
the date of the 

 
prepayment, and third to the outstanding principal under the Revolving Credit Facility. The making of loans, Advances and credits by the Bank in excess of
availability is for the benefit of the Borrower and does not affect the obligations of the Borrower hereunder. The making of any such loans, Advances, and credits in excess of the Revolving Credit Facility Limit, on any one occasion shall not
obligate the Bank to make any such loans, credits, or Advances on any other occasion nor to permit such loans, credits, or Advances to remain outstanding. 
 2.6 Advances in Excess of Availability. The making of loans, advances and credits by the Bank in excess of availability is for the benefit of the Borrower and does not affect the obligations of the
Borrower hereunder; such loans constitute Indebtedness. The making of any such loans, advances, and credits in excess of the Maximum Availability on any one occasion shall not obligate the Bank to make any such loans, credits, or advances on any
other occasion nor to permit such loans, credits, or advances to remain outstanding.  
 2.7 Risks of Value of Accounts
and of Inventory. The Bank’s reference to a given asset of the Borrower for monitoring concerning the Bank’s making of loans, credits, and advances under the Revolving Credit Facility shall not be deemed a determination by the Bank
relative to the actual value of the asset in question. All risks concerning the creditworthiness of all Accounts and Inventory of the Borrower are and remain upon the Borrower. Reference by the Bank to a particular Account for monitoring purposes
shall not obligate the Bank to rely upon any other Accounts owed by the same account debtor to be acceptable for borrowing nor to continue to rely upon that Account. 
 2.8 Letters of Credit. 
 (a) Subject to the terms of this Agreement, so long as there has not
theretofore occurred and be continuing an Event of Default, the Borrower may request that the Bank issue Letters of Credit on the Borrower’s account for purposes reasonably acceptable to the Bank, provided that the sum of the outstanding
Letters of Credit and the aggregate principal amount of all Advances outstanding under the Revolving Credit Facility shall not exceed the Maximum Availability. Any and all Letters of Credit issued by the Bank in favor of the Borrower and outstanding
on the date of this Agreement shall be deemed to be Letters of Credit issued and outstanding under this Agreement. The Borrower may request that the Bank issue a Letter of Credit by written notice (the “L/C Notice”) given to the
Bank not less than two (2) Business Days prior to the proposed date of issuance of such Letter of Credit. The L/C Notice shall specify the proposed date of issuance and the beneficiary and amount of such Letter of Credit, and shall be
accompanied by a letter of credit application completed to the satisfaction of, and with such amendments and modifications as may be deemed necessary by, the Bank. 
 (b) The Borrower hereby agrees to reimburse the Bank for all draws made under such Letters of Credit, plus interest and costs including attorneys’ fees. Each Letter of Credit request shall be accompanied by an
application completed by the Borrower to the satisfaction of the Bank whereby the Borrower will agree, among other things, to reimburse the Bank for any draws made with respect to such Letters of Credit, plus all interest and costs. Any unpaid
reimbursement obligations may, at the Bank’s discretion, be repaid by an Advance under the Revolving Credit Facility hereunder. 

 (c) Each such Letter of Credit issued by the Bank shall expire no later than thirty (30) days prior
to the Revolving Credit Termination Date and shall be subject to the Uniform Customs Practice for Documentary Credits ICC Pub. No. 500 and International Standby Practices (ISP 98) promulgated by the Institute of International Banking
Law & Practice. Upon the occurrence and continuance of an Event of Default or in the event that any Letters of Credit are outstanding within thirty (30) days of the Revolving Credit Termination Date, the Borrower shall, at the
Bank’s request, provide the Bank with cash collateral to secure the Borrower’s reimbursement obligations in an amount equal to the face amount of all such outstanding Letters of Credit, plus ten percent (10.0%). 
 (d) In connection with the issuance of any Letter of Credit, the Borrower shall pay to the Bank at the time of issuance, in full and for the entire term
of the Letter of Credit, a “Letter of Credit Fee” equal to one percent (1.00%) of the maximum drawing amount of such Letter of Credit, as well as all other normal and customary fees charged by Bank generally in connection with
the issuance, amendment, extension and transfer of letters of credit. The Borrower hereby authorizes and directs the Bank, in Bank’s sole discretion (provided, however, Bank shall have no obligation to do so) to pay all such fees and costs as
the same become due and payable and to treat the same as an Advance pursuant to this Agreement. 
 (e) The Bank shall be entitled to rely on
any letter of credit, draft, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex, or teletype message, statement or order or other document believed by it to be genuine and correct and to have
been signed, sent or made by the proper person or persons and upon the advice and statements of legal counsel, independent accountants and other experts as selected by the Bank. It is understood and agreed that the Bank shall not have any liability
for, and that the Borrower assume all responsibility for: (a) the genuineness of any signature; (b) the form, correctness, validity, sufficiency, genuineness, falsification and legal effect of any draft, certification or other document
required by a Letter of Credit or the authority of the person signing the same; (c) the failure of any instrument to bear any reference or adequate reference to a Letter of Credit or the failure of any persons to note the amount of any
instrument on the reverse of a Letter of Credit or to surrender a Letter of Credit or otherwise to comply with the terms and conditions of a Letter of Credit; (d) the good faith or acts of any person other than the Bank and its agents and
employees; (e) the existence, form, sufficiency or breach of or default under any agreement or instrument of any nature whatsoever; (f) any delay in giving or failure to give any notice, demand or protest; and (g) any error, omission,
delay in or non-delivery of any notice or other communication, however sent. The determination as to whether the required documents are presented prior to the expiration of a Letter of Credit and whether such other documents are in proper and
sufficient form for compliance with a Letter of Credit shall be made by the Bank in its sole discretion, which determination shall be conclusive and binding upon the Borrower. It is agreed that the Bank may honor, as complying with the terms of the
Letters of Credit and this Agreement, any documents otherwise in order and signed or issued by the beneficiary thereof. Any action, inaction or omission on the part of the Bank under or in connection with the Letters of Credit or any related
instruments or documents, if in good faith and in conformity with such laws, regulations or commercial or banking customs as the Bank may reasonably deem to be applicable, shall be binding upon the Borrower, shall not place the Bank under any
liability to the Borrower, and shall not affect, impair or prevent the vesting of any of the Bank’s rights or powers hereunder or the Borrower’ obligation to make full reimbursement. The Borrower’s 

 
obligations for all Letters of Credit issued on its account shall be absolute and unconditional under any and all circumstances irrespective of the
occurrence of any Event of Default or any condition precedent whatsoever or any setoff, counterclaim or defense to payment which the Borrower may have or have had against the Bank or any beneficiary under a Letter of Credit issued by the Bank on the
Borrower’s account. The Borrower further agrees that any action taken or omitted by the Bank under or in connection with any letter of credit issued on account of the Borrower and any related drafts and documents shall, absent the Bank’s
gross negligence or willful misconduct, be binding upon the Borrower and shall not result in any liability on the part of the Bank. 
 2.9
Unused Fee. The Borrower shall pay to the Bank a fee (the “Unused Fee”) on all unused amounts on the Revolving Credit Facility. The Unused Fee shall be computed by multiplying (x) the Applicable Margin
(determined as set forth for computation of the Unused Fee set forth in Section 1.1 hereof) by (y) the Revolving Credit Facility Limit, less the aggregate of the: (i) average daily balance of Advances outstanding on the Revolving
Credit Facility during the preceding quarter, plus (ii) the average of all outstanding Letters of Credit for such quarter. The Unused Fee shall be payable quarterly in arrears commencing on October 1, 2008 and on the first day of each
successive quarter thereafter and upon the Revolving Credit Termination Date, with the Unused Fee being in consideration of the Advances made hereunder and being deemed earned as incurred. 
 2.10 Master SWAP Agreements. At any time and from time to time after the date of this Agreement, absent the occurrence of an Event of
Default, the Borrower may enter into one or more Hedging Contracts and incur Hedging Obligations by, in each such instance, executing and delivering to the Bank an International SWAP Dealers Association, Inc. Master Agreement (each, a
“Master Swap Agreement”), thereby fixing the interest rate payable on portions the proceeds of the Revolving Credit Facility. Provided that a Master Swap Agreement contains language permitting termination of the same by either
party, the maturity date of such Master Swap Agreement may be later than the Revolving Credit Termination Date, otherwise, such Master Swap Agreement must mature on or before the Revolving Credit Termination Date. 
 SECTION 3. GENERAL PROVISIONS RELATING TO THE LOANS 
 3.1 Loan Requests, Selection of Interest Rates, and Rate Conversions. 
 (a) The Borrower shall
give the Bank written notice of a request for an Advance (each a “Loan Request”) under the Revolving Credit Facility on any Business Day, such notice being in the form of Exhibit B annexed hereto (or telephonic notice
immediately confirmed in a writing in the form of Exhibit B hereto). The Loan Request for each Advance requested hereunder shall be given (a) no later than 10:00 a.m. (Boston time) on the proposed Advance date for any Prime Rate
Loan, and (b) no later than 10:00 a.m. (New York time) at least two (2) Business Days prior to the proposed Advance (nor more than five (5) Business Days before the proposed Advance) for any LIBOR Rate Loan or LIBOR Advantage Rate
Loan. Each such Loan Request shall specify (i) the principal amount of the Advance requested, (ii) the proposed interest rate applicable to such Advance, and (iii) if any such Advance is a LIBOR Rate Loan, the LIBOR Interest Period
applicable for such Advance. LIBOR Rate Loans shall be made in a minimum amount of $100,000.00 and integral multiples of $10,000.00. Each Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to accept the
Advance requested from the Bank, on the terms and subject to the conditions of this 

 
Agreement. Each Advance shall be made available to the Borrower no later than 11:00 a.m. (Boston time) on the first day of the applicable Interest Period by
deposit to the account of the Borrower as shall have been specified in its Loan Request. If any Advance is made, the Bank may, at its option, record on the books and records of the Bank or endorse on a schedule attached to the Revolving Credit Note,
an appropriate notation evidencing any Advance, each repayment on account of the principal thereof and the amount of interest paid; and the Borrower authorizes the Bank to maintain such records or make such notations and agrees that the amount shown
on the books and records or on said schedule, as applicable, as outstanding from time to time shall constitute the amount owing to the Bank pursuant to this Agreement, absent manifest error. In the event the amount shown on the schedule conflicts
with the amount as due pursuant to the books and records of the Bank, the books and records of the Bank shall control the disposition of the conflict. 
 (b) In the case of an Advance of any Loan already made, the Borrower shall give the Bank written notice of an interest rate selection (each a “Notice of Rate Selection”) in the form of Exhibit
C annexed hereto) (or telephonic notice immediately confirmed in a writing in the form of Exhibit C annexed hereto) as follows: (i) for any Prime Rate Loan, no later than 10:00 a.m. (Boston time) on the day prior to the
last day of the Interest Period; and (ii) for any LIBOR Rate Loan or LIBOR Advantage Rate Loan, no later than 10:00 a.m. (New York time) two (2) Business Days prior to the last day of the Interest Period. Each such notice shall specify the
duration of the selected Interest Period. Each interest rate selection shall be irrevocable and binding on the Borrower. 
 (c) LIBOR
Advantage Rate Loans and LIBOR Rate Loans shall mature and become payable in full on the last day of the Interest Period relating to such LIBOR Advantage Rate Loans or LIBOR Rate Loans, as applicable. Upon maturity, a LIBOR Advantage Rate Loan
and/or a LIBOR Rate Loan may be continued for an additional Interest Period or may be converted to a Prime Rate Loan or other interest rate as may be selected by the Borrower from the options and in accordance with the terms of this Agreement.

 (d) By delivering a continuation/conversion notice to the Bank on or before 10:00 a.m., New York time, on a Business Day, the Borrower may
from time to time irrevocably elect, on not less than two (2) nor more than five (5) Business Days’ notice, that all, or any portion of any LIBOR Advantage Rate Loan or any LIBOR Rate Loan, in an aggregate minimum amount of
$100,000.00 and integral multiples of $10,000.00, be converted on the last day of an Interest Period into a LIBOR Advantage Rate Loan or LIBOR Rate Loan with a different Interest Period, or converted to a Prime Rate Loan, or continued on the last
day of an Interest Period as a LIBOR Advantage Rate Loan or LIBOR Rate Loan with a similar Interest Period, provided, however, that no portion of the outstanding principal amount of any LIBOR Rate Loans may be converted to LIBOR Rate Loans of
a different duration if such LIBOR Rate Loans relate to any Hedging Obligations or when any default or Event of Default has occurred and is continuing, and further provided that all accrued interest on the principal amount of any LIBOR Advantage
Rate Loan to be converted hereunder shall be paid in full. In the absence of delivery of a continuation/conversion notice with respect to any LIBOR Advantage Rate Loans or LIBOR Rate Loan at least two (2) Business Days before the last day of
the then current Interest Period with respect thereto, such LIBOR Advantage Rate Loan or LIBOR Rate Loan shall, on such last day, automatically convert to a loan that accrues interest by reference to the Prime Rate. 

 (e) Without in any way limiting the Borrower’s obligation to confirm in writing any telephonic
notice, the Bank may act without liability upon the basis of telephonic notice believed by the Bank in good faith to be from the Borrower prior to receipt of written confirmation. In each case, the Borrower waives the right to dispute the
Bank’s record of the terms of such telephonic notice of rate selection in the absence of manifest error. 
 3.2
Prepayments. 
 (a) The Borrower may prepay any Prime Rate Loan or any LIBOR Advantage Rate Loan, in whole or in part, at
any time, without penalty or premium. LIBOR Rate Loans may be prepaid subject to the terms and conditions of Section 3.7 below. 
 (b)
After the occurrence of an Event of Default, any fees with respect to such Loan(s) shall become due and payable in the same manner as though the Borrower had exercised such right of prepayment in connection with Section 3.2 of this Agreement.
Any prepayment hereunder will be applied first to the payment of all accrued interest to the date of the prepayment and the remainder to the outstanding principal. Further, in the case of any prepayments of a Loan which do not simply represent the
conversion of a LIBOR Rate Loan or LIBOR Advantage Rate Loan to a Prime Rate Loan, any amounts applied against principal shall be applied against scheduled installments of principal due thereon in the inverse order of maturity. 
 3.3 Late Charge. The Bank may collect a late charge not to exceed five percent (5.0%) of any installment of principal or interest on
any Loan, or of any other amount due to the Bank which is not paid or reimbursed by the Borrower within ten (10) days of the due date thereof to defray the cost and extra expense involved in handling such delinquent payment and the increased
risk of non-collection. In all events, the minimum late charge shall be $35.00. 
 3.4 Default Interest Rate. In the event the
payment of interest is not made within ten (10) days of any Interest Payment Date, or in the event all principal amounts due under the Revolving Credit Note have not been paid within ten (10) days of when due (including, without
limitation, the Revolving Credit Termination Date) the unpaid principal shall bear interest at a rate which is equal to two (2) percentage points per annum greater than the rate which would otherwise be in effect (the “Default
Rate”). If, at any time, the rate of interest, together with all amounts which constitute interest and which are reserved, charged or taken by Bank as compensation for fees, services or expenses incidental to the making, negotiating or
collection of any advance evidenced hereby, shall be deemed by any competent court of law, governmental agency or tribunal to exceed the maximum rate of interest permitted to be charged by the Bank to the Borrower, then, during such time as such
rate of interest would be deemed excessive, that portion of each sum paid attributable to that portion of such interest rate that exceeds the maximum rate of interest so permitted shall be deemed a voluntary prepayment of principal. 
 3.5 Computations. All computations of interest on the Loans shall, unless otherwise expressly provided herein, be made on the basis of a
three hundred sixty (360) day year and actual days elapsed. 
 3.6 Authorization to Charge Account. The Bank is authorized
to and may charge principal and interest and all other amounts due hereunder, under any Related Agreement and under the Revolving Credit Note to any account of the Borrower maintained at the Bank when and as it becomes due. 

 3.7 Voluntary Prepayment of LIBOR Rate Loans. 
 (a) LIBOR Rate Loans may be prepaid upon the terms and conditions set forth herein. For LIBOR Rate Loans in connection with which the Borrower has or may
incur Hedging Obligations, additional obligations may be associated with prepayment, in accordance with the terms and conditions of the applicable Hedging Contracts. The Borrower shall give the Bank, no later than 10:00 a.m., New York City time, at
least four (4) Business Days notice of any proposed prepayment of any LIBOR Rate Loans, specifying the proposed date of payment of such LIBOR Rate Loans, and the principal amount to be paid. Each partial prepayment of the principal amount of
LIBOR Rate Loans shall be in an integral multiple of $100,000.00 and accompanied by the payment of all charges outstanding on such LIBOR Rate Loans (including the LIBOR Breakage Fee) and of all accrued interest on the principal repaid to the date of
payment. 
 (b) Upon: (i) any default by Borrower in making any borrowing of, conversion into or continuation of any LIBOR Rate Loan
following Borrower’s delivery of a borrowing request or continuation/conversion notice hereunder or (ii) any prepayment of a LIBOR Rate Loan on any day that is not the last day of the relevant LIBOR Interest Period (regardless of the
source of such prepayment and whether voluntary, by acceleration or otherwise), the Borrower shall pay an amount (“LIBOR Breakage Fee”), as calculated by the Bank, equal to the amount of any losses, expenses and liabilities
(including without limitation any loss of margin and anticipated profits) that Bank may sustain as a result of such default or payment. The Borrower understands, agrees and acknowledges that: (i) the Bank does not have any obligation to
purchase, sell and/or match funds in connection with the use of the LIBOR Rate as a basis for calculating the rate of interest on a LIBOR Rate Loan, (ii) the LIBOR Rate may be used merely as a reference in determining such rate, and
(iii) the Borrower has accepted the LIBOR Rate as a reasonable and fair basis for calculating the LIBOR Breakage Fee and other funding losses incurred by the Bank. Borrower further agrees to pay the LIBOR Breakage Fee and other funding losses,
if any, whether or not the Bank elects to purchase, sell and/or match funds. 
 3.8 Miscellaneous LIBOR Rate Loan Terms.

 (a) If the Bank shall determine (which determination shall, upon notice thereof to the Borrower be conclusive and binding on the Borrower)
that the introduction of or any change in or in the interpretation of any law, rule, regulation or guideline, (whether or not having the force of law) makes it unlawful, or any central bank or other governmental authority asserts that it is
unlawful, for the Bank to make, continue or maintain any LIBOR Rate Loan as, or to convert any loan into, a LIBOR Rate Loan of a certain duration, the obligations of the Bank to make, continue, maintain or convert into any such LIBOR Rate Loans
shall, upon such determination, forthwith be suspended until the Bank shall notify the Borrower that the circumstances causing such suspension no longer exist, and all LIBOR Rate Loans of such type shall automatically convert into Prime Rate Loans
at the end of the then current LIBOR Interest Periods with respect thereto or sooner, if required by such law or assertion. 

 (b) In the event that Borrower shall have requested a LIBOR Rate Loan in accordance with Section 3.1
and the Bank, in its sole discretion, shall have determined that U.S. dollar deposits in the relevant amount and for the relevant LIBOR Interest Period are not available to the Bank in the London interbank market; or by reason of circumstances
affecting the Bank in the London interbank market, adequate and reasonable means do not exist for ascertaining the LIBOR Rate applicable to the relevant LIBOR Interest Period; or the LIBOR Rate no longer adequately and fairly reflects the
Bank’s cost of funding loans; upon notice from the Bank to the Borrower, the obligations of the Bank under Section 3.1 and Section 3.1 to make or continue any loans as, or to convert any loans into, LIBOR Rate Loans of such duration
shall forthwith be suspended until the Bank shall notify the Borrower that the circumstances causing such suspension no longer exist. 
 (c)
If, on or after the date hereof, the adoption of any applicable law, rule or regulation or guideline (whether or not having the force of law), or any change therein, or any change in the interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any request or directive (whether or not having the force of law) of any such authority, central bank or
comparable agency: (a) shall impose, modify or deem applicable any reserve, special deposit or similar requirement (including, without limitation, any such requirement imposed by the Board of Governors of the Federal Reserve System of the
United States) against assets of, deposits with or for the account of, or credit extended by, the Bank or shall impose on the Bank or on the London interbank market any other condition affecting its LIBOR Rate Loans or its obligation to make LIBOR
Rate Loans; or (b) shall impose on the Bank any other condition affecting its LIBOR Rate Loans or its obligation to make LIBOR Rate Loans, and the result of any of the foregoing is to increase the cost to the Bank of making or maintaining any
LIBOR Rate Loan, or to reduce the amount of any sum received or receivable by the Bank under this agreement with respect thereto, by an amount deemed by the Bank to be material, then, within ten (10) days after demand by the Bank, the Borrower
shall pay to the Bank such additional amount or amounts as will compensate the Bank for such increased cost or reduction. The Bank shall allocate the effect of such increased cost or reduction on a reasonable basis among its customers in good faith.

 (d) All payments by the Borrower of principal of, and interest on, LIBOR Rate Loans and all other amounts payable hereunder shall be made
free and clear of and without deduction for any present or future income, excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or other charges of any nature whatsoever imposed by any taxing authority, but excluding franchise
taxes and taxes imposed on or measured by the Bank’s net income or receipts (such non-excluded items being called “Taxes”). In the event that any withholding or deduction from any payment to be made by the Borrower hereunder is
required in respect of any Taxes pursuant to any applicable law, rule or regulation, then the Borrower will 
 (i) pay directly to the
relevant authority the full amount required to be so withheld or deducted; 
 (ii) promptly forward to the Bank an official receipt or other
documentation satisfactory to the Bank evidencing such payment to such authority; and 

 (iii) pay to the Bank such additional amount or amounts as is necessary to ensure that the net amount
actually received by the Bank will equal the full amount the Bank would have received had no such withholding or deduction been required. 
 Moreover, if any
Taxes are directly asserted against the Bank with respect to any payment received by the Bank hereunder, the Bank may pay such Taxes and the Borrower will promptly pay such additional amount (including any penalties, interest or expenses) as is
necessary in order that the net amount received by the Bank after the payment of such Taxes (including any Taxes on such additional amount) shall equal the amount the Bank would have received had not such Taxes been asserted. 
 If the Borrower fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to the Bank the required receipts or other required documentary
evidence, the Borrower shall indemnify the Bank for any incremental Taxes, interest or penalties that may become payable by the Bank as a result of any such failure. 
 3.9 Security. As security for all the obligations of Borrower to Bank under the Revolving Credit Note and this Agreement, (i) Borrower shall execute and deliver to Bank a certain Security Agreement
(the “Security Agreement”) by Borrower granting to Bank a first priority security interest in all Accounts Receivable and Inventory of the Borrower as more particularly set forth therein, and (ii) Guarantor shall execute and
deliver to Bank a certain Guaranty (the “Guaranty”) of the liabilities and obligations of the Borrower to the Bank. 
 SECTION 4. REPRESENTATIONS AND WARRANTIES 
 The Borrower hereby represents and warrants to the Bank (which
representations and warranties will survive the delivery of the Note and this Agreement and the making of any Advances and shall be deemed to be continuing until the Notes are fully paid and this Agreement is terminated) that: 
 4.1 Existence and Power. (a) The Borrower is and will continue to be, duly organized and validly existing and in good standing under
the state of its organization; (b) the Borrower has registered in all locations required under the laws of each jurisdiction (including, without limitation, the State of Minnesota and Commonwealth of Massachusetts) in which it does business;
(c) the Borrower is qualified and in good standing to do business in all other jurisdictions (including, without limitation, the State of Minnesota and Commonwealth of Massachusetts) in which the property owned, leased or operated by it or the
nature of the business conducted by it makes such qualification necessary; (d) the Borrower has the power to execute and deliver this Agreement, the Note, the Related Agreements and to borrow hereunder; and (e) the Borrower has all
requisite permits, authorizations and licenses, without unusual restrictions or limitations, to own, operate and lease its properties and to conduct the business in which it is presently engaged, all of which are in full force and effect.

 4.2 Authority. The making and performance by the Borrower of this Agreement, the Note and the Related Agreements has been
authorized by all necessary corporate action. The execution and delivery of this Agreement, the Note and the Related Agreements, the consummation of the transactions herein and therein contemplated, the fulfillment of or compliance with the terms
and provisions 

 
hereof and thereof, (a) are within its powers, (b) will not violate any provision of law or of their organizational documents, or (c) will not
result in the breach of, or constitute a default under, or result in the creation of any lien, charge or encumbrance upon any property or assets of the Borrower pursuant to any indenture or bank loan or credit agreement (other than those with the
Bank) or other agreement or instrument to which the Borrower is a party. No approval, authorization, consent or other order of or registration or filing (other than UCC financing statements) with any person, entity or governmental body is required
in connection with the making and performance of this Agreement, the Note or the Related Agreements. 
 4.3 Financial
Condition. The financial statements described in Schedule 4.3 hereto, heretofore delivered to the Bank, were prepared in conformity with GAAP and are correct and complete in all material respects and fairly present the financial
condition and the results of operations of the Borrower for the periods and as of the dates thereof. There are no direct or contingent liabilities not disclosed in such statements or in Schedule 4.3 hereto which in accordance with GAAP are
required to be disclosed. Since the date of the latest financial statements delivered to the Bank, there has been no material adverse change in the assets, liabilities, financial condition, business or prospects of the Borrower and except as
otherwise permitted herein, no Dividends have been declared or made to members nor have any shares or other ownership interest of Borrower of any class, been purchased or acquired in any manner. 
 4.4 Information Complete. Subject to any limitations stated therein or in connection therewith, all information furnished or to be
furnished by the Borrower pursuant to the terms hereof is, or will be at the time the same is furnished, accurate and complete in all material respects necessary in order to make the information furnished, in the light of the circumstances under
which such information is furnished, not misleading. 
 4.5 Statutory Compliance. The Borrower is in compliance with all
federal, state, county and municipal laws, ordinances, rules or regulations applicable to it, its property or the conduct of its business, including, without limitation, those pertaining to or concerning the employment of labor, employee benefits,
public health, safety and the environment, except for such failures to comply which do not, alone or in the aggregate, have a Material Adverse Effect. 
 4.6 Litigation. Except such as are disclosed in Schedule 4.6 hereto, there are no proceedings of a material nature by or before any private, public or governmental body, agency or authority and no
litigation is pending, or, so far as is known to the Borrower or any of its officers, threatened against it, which are likely to have a Material Adverse Effect. 
 4.7 Subsidiaries. The Borrower has no Subsidiaries other than those shown on Schedule 4.7 attached hereto, and the Borrower has not otherwise invested in the stock, common or preferred, or
invested in any other ownership interest of any corporation or other entity. 
 4.8 Events of Default. No Event of Default has
occurred and no event has occurred or is continuing which, pursuant to the provisions of Section 9, with the lapse of time and/or the giving of notice specified therein, would constitute an Event of Default. 
 4.9 Use of Proceeds. The Borrower shall use the proceeds of each Advance for working capital, letters of credit and general business needs.
No part of such Loan proceeds will be used, in whole or in part, for the purpose of (a) acquiring all or substantially all of the assets or stock of any person, entity or corporation, or (b) purchasing or carrying any “margin
stock” as such term is defined in Regulation U of the Board of Governors of the Federal Reserve System. 

 4.10 Validity. This Agreement, the Note and Related Agreements, upon the execution and
delivery thereof, will be legal, valid, binding and enforceable obligations of the Borrower in accordance with the terms of each. 
 4.11
Title to Property. The Borrower has good and marketable title to the Collateral subject to no mortgage, pledge, lien, security interest, encumbrance or other charge, except those, if any, set forth in Schedule 4.11 annexed hereto
(the “Permitted Liens”). 
 4.12 Business Name. The Borrower conducts its business solely in its own name
without the use of a trade name or the intervention of or through any other entity of any kind, other than as disclosed on Schedule 4.12 annexed hereto. 
 4.13 Locations. All books and records relating to the Borrower’s assets are located at the Borrower’s chief executive offices as set forth above and its other places and locations, where its
assets are located, are as set forth on Schedule 4.13 hereto. 
 4.14 Capitalization. The authorized capital stock of
the Borrower, common and preferred, is as set forth in the financial statements delivered by the Borrower to the Bank. All shares of the stock of the Borrower which are issued and outstanding (i) are validly issued, fully paid and nonassessable
and (ii) are free of preemptive rights. No person has any right to participate in, or receive any payment based on any amount relating to, the revenue, income, value or net worth of the Borrower or any component or portion thereof, or any
increase or decrease in any of the foregoing. 
 4.15 Sufficiency of Assets. All of the tangible assets and properties of the
Borrower, whether real or personal, owned or leased, utilized by the Borrower in the conduct of its business, have been well maintained and are in good operating condition and repair (with the exception of normal wear and tear), and are free from
defects other than such minor defects as do not interfere with the intended use thereof in the conduct of normal operations or adversely affect the resale value thereof. The Borrower owns, leases or has a permanent right to use all the assets,
properties, rights, know-how, key personnel, processes and ability which are required for or currently used in connection with the operation of its business as it is presently conducted. Such assets, properties and rights were sufficient to produce
the income for the most recent completed, fiscal year as shown on the financial statements previously submitted to the Bank. 
 4.16
Notices of Environmental Problems. Except as set forth in Schedule 4.16, the Borrower and any tenants of the Borrower have not given nor have they received, any notice that: (a) there has been a material release, or there is a
threat of a material release, of toxic substances or hazardous wastes from any real property owned or operated by the Borrower; (b) the Borrower or any tenants of the Borrower may be or is liable for the costs of cleaning up or responding to a
release of any toxic substances or hazardous wastes; or (c) any of such real property is subject to a lien for any liability arising from costs incurred in response to a release of toxic substances or hazardous wastes. 

 4.17 Intellectual Property. The Borrower owns or possesses adequate rights in all
intellectual property necessary for the conduct of its business as currently conducted. 
 4.18 Permits. The Borrower has
obtained all licenses, certificates, permits, franchises, rights, code approvals and private product approvals, whether federal, state, local or foreign, which are necessary or required for the lawful operation of the business of the Borrower as
presently conducted, and the Borrower and its affiliates are not in violation of any valid rights of others with respect to any of the foregoing, except for such failures to obtain or for such violations which do not, alone or in the aggregate, have
a Material Adverse Effect. 
 4.19 Insurance. The list on Schedule 4.19 annexed hereto contains an accurate and complete
listing of all policies of fire, liability, workers’ compensation, builders risk, title and other forms of insurance owned, held by or applicable to the Borrower (or its assets or business), and the Borrower has heretofore delivered to the Bank
a true and complete copy of all such policies, including all occurrence-based policies applicable to the Borrower (or its business). All such policies are in full force and effect, all premiums with respect thereto covering all periods up to and
including the date of this Agreement have been paid, and no notice of cancellation or termination has been received with respect to any such policy. Such policies are sufficient for compliance with (i) all requirements of law and (ii) all
contracts to which the Borrower is a party, and are valid, outstanding and enforceable policies. Such insurance policies provide types and amounts of insurance customarily obtained by businesses similar to the business of the Borrower. 

4.20 Employment and Labor Matters. The Borrower has and currently is conducting its business in full compliance with all laws relating
to employment and employment practices, terms and conditions of employment, wages and hours, affirmative action, and nondiscrimination in employment, except for such failures of compliance which do not, alone or in the aggregate, have a Material
Adverse Effect. 
 4.21 Taxes. 
 (a) The amounts provided as a liability on the financial statements for all Taxes are adequate to cover all unpaid liabilities for all Taxes, whether or not disputed, that have accrued with respect to or are
applicable to the period ended on and including the date of this Agreement or to any years and periods prior thereto and for which the Borrower may be directly or contingently liable in its own right or as a transferee of the assets of, or successor
to, any person, including, without limitation, any liability arising under Treas. Reg. § 1.1502-6. The Borrower has not incurred any Taxes other than in the ordinary course of business for any taxable year for which the applicable statute
of limitations has not expired; there are no tax liens (other than liens for current Taxes not yet due and payable) upon the properties or assets of the Borrower. 
 (b) All federal, state, local and foreign income, corporation and other tax returns have been filed for Borrower, and all other filings in respect of Taxes have been made for Borrower, for all periods through and
including the date of this Agreement as required by applicable law. All Taxes shown as due on all such tax returns and other filings have been paid. 

 4.22 Material Contracts. The Borrower’s filings with the Securities &
Exchange Commission include as exhibits all material contracts and arrangements of a type required to be so filed. 
 4.23
Solvency. The Borrower and its Subsidiaries, on a consolidated basis, are, and will be, after the transaction contemplated by this Agreement and the Related Agreements, Solvent. 
 SECTION 5. CONDITIONS PRECEDENT 
 5.1 Initial Advances. Precedent to the effectiveness of this Agreement and to the establishment of the Loan and the initial Advance under the Note, the following documents, each in form and substance satisfactory to the Bank,
shall have been delivered to the Bank, and the following conditions shall have been satisfied: 
 (a) Proof of Action. The Bank shall
have received a certified copy of all action taken by the Borrower to authorize the execution and delivery of this Agreement, the Note, the Related Agreements and any and all other agreements and documents which have been or are to be executed and
delivered as part of the Loan. 
 (b) The Note, Related Agreements and Documents. The Borrower shall have executed and delivered to
the Bank this Agreement, the Note, the Related Agreements and such other documents as the Bank may reasonably request. The Guarantor shall have executed and delivered to the Bank the Guaranty. 
 (c) Approval of Bank and Bank Counsel. All legal matters incident to the transactions hereby contemplated shall be satisfactory to counsel for the
Bank. All Related Agreements shall have been reviewed and approved by the Bank. 
 (d) Authority and Enforceability Opinion. An
opinion of counsel to the Borrower shall be delivered to the Bank and counsel to the Bank relating to such matters as the Bank and the Bank’s counsel may determine, including without limitation, the following: 
 (i) This Agreement and all agreements and instruments of even or prior date herewith, to be delivered to the Bank by the Borrower in connection with the
Loan have been duly authorized, executed and delivered and are binding upon and enforceable against the Borrower; 
 (ii) This Agreement, the
Note, the Security Agreement, and the Related Agreements are enforceable in accordance with their terms and constitute valid liens on the collateral described therein, as security for the payment of the Borrower’s obligations to the Bank.

 (e) [Intentionally Omitted.]. 
 (f) Capital Structure, Other Indebtedness. The capital structure of the Borrower and the terms and conditions of all Indebtedness of the Borrower shall be acceptable to the Bank in its reasonable discretion. 

 (g) Additional Documents/Field Exam. The Borrower shall have executed and delivered to the Bank
such other certifications, agreements or instruments as the Bank may reasonably request to satisfy the terms and conditions of this Agreement, and to establish, protect or perfect the interest of the Bank in any collateral granted to secure the
payment and performance of the Borrower’s obligations hereunder and under the other Related Agreements. The Bank shall have conducted a field audit of the Borrower and the Borrower’s assets, which shall be, in all material respects,
satisfactory to the Bank. 
 5.2 Subsequent Advances. Without limiting any other provision of this Agreement every subsequent
Advance under the Loan shall be subject to the following conditions precedent that: 
 (a) No Default. There has then occurred no event
which is, or solely with passage of time, or giving of notice, or both, would be an Event of Default which is then continuing. 
 (b) No
Material Adverse Change. There has been no material adverse change (as determined solely by the Bank in its reasonable discretion) in the assets, liabilities, financial condition or business of the Borrower since the date of any financial
statements delivered to the Bank before or after the date of this Agreement. 
 (c) Representations and Warranties. That the
representations and warranties contained in Sections 4.1 through 4.23 are true and correct in all respects. Any request for an Advance shall be deemed a certification by the Borrower as to the truth and accuracy of the representations and warranties
contained in Sections 4.1 through 4.23 as of the date of such request. 
 SECTION 6. AFFIRMATIVE COVENANTS 
 Unless the Bank consents in writing, the Borrower covenants and agrees that, until payment in full of the Notes and the complete performance of all
obligations hereunder and under any Related Agreement, they shall: 
 6.1 Financial Statements. Deliver to the Bank: 

(a) monthly reports of the Borrower: within thirty (30) days after the close of each calendar month, the Borrower shall furnish the Bank
with: 
 (i) a statement, current as of the close of business on the last business day of the preceding calendar month, setting forth
(A) all receivables of the Borrower, showing separately those receivables which are less than 30, 60 and 90 days old from the due date, the value of each category of receivables, together with a description of all liens, claims, encumbrances,
setoffs, defenses and counterclaims with respect thereto, and, (B) all Inventory of the Borrower (including, without limitation, all Eligible Inventory) and the value thereof, together with a description of all liens, claims, encumbrances,
setoffs, defenses and counterclaims with respect thereto, both statements certified by an officer of the Borrower; and 

 (ii) a Borrowing Base Certificate certified by an officer of the Borrower in the form of Exhibit
D annexed hereto; 
 (b) quarterly reports of the Borrower: within forty five (45) days after the close of each of the
first three (3) fiscal quarters of each fiscal year of the Borrower, the Borrower shall furnish the Bank with: 
 (i) financial
statements, including a balance sheet as of the close of such quarter, and statements of income and retained earnings and cash flows for the period then ended, prepared by the Borrower and certified by an officer of the Borrower as accurate, true
and complete; 
 (ii) a management prepared compliance certificate (in form acceptable to the Bank) relative to the financial covenants set
forth in Section 8 hereof. 
 (c) annual financial reports of the Borrower: within one hundred twenty (120) days after the
close of its fiscal year, the Borrower shall furnish the Bank with the following: original, signed financial statements, including a balance sheet as of the close of such year and statements of income and retained earnings and cash flows for the
year then ended, accompanied by a report thereon, unqualified and audited in conformity with GAAP by a firm of independent certified public accountants reasonably acceptable to the Bank together with a management prepared compliance certificate (in
form reasonably acceptable to the Bank) relative to the financial covenants set forth in Section 8 hereof; and 
 (d) additional
information: no later than thirty (30) days after the Bank’s written request, such information (not otherwise required to be delivered by this Section 6.1) about the financial condition, business and operations of the Borrower, as
the Bank may, from time to time, reasonably request. 
 All financial statements delivered to the Bank shall be (if applicable) consolidated.

 6.2 Insurance. (a) Keep its properties insured against fire and other hazards (so called “All Risk” coverage)
in amounts and with companies reasonably satisfactory to the Bank to the same extent and covering such risks as is customary in the same or a similar business, but in no event in an amount less than the full insurable value thereof, which policies
shall name the Bank as loss payee and/or mortgagee, as its interest may appear, (b) maintain public liability coverage against claims for personal injuries or death, and (c) maintain all worker’s compensation, employment or similar
insurance as may be required by applicable law. Such All Risk property insurance coverage shall provide for a minimum of thirty (30) days’ written cancellation notice to the Bank. The Borrower further agrees to deliver copies of
certificates of insurance for all of the aforesaid insurance policies to the Bank, and, upon request, to provide the Bank with copies of the insurance policies. In the event of any loss or damage exceeding deductible amounts to any of the
Borrower’s assets, including any collateral securing the Note, the Borrower shall give immediate written notice to the Bank and to its insurers of such loss or damage and shall promptly file proofs of loss with said insurers. 
 6.3 Compliance with Laws; Payment of Taxes and Other Liens. Comply with all federal, state, county and municipal laws, rules, ordinances
and regulations applicable to the Borrower, its business or property, including without limitation, those pertaining to 

 
or concerning the employment of labor, employee benefits, public health, safety and the environment. The Borrower shall pay, or cause to be paid, all taxes,
assessments, governmental charges or levies, or claims for labor, supplies, rent and other obligations made against it or its property which, if unpaid, might become a lien or charge against it or its property, except liabilities being contested in
good faith and against which it shall maintain reserves in amount and in form (book, cash, bond or otherwise) reasonably satisfactory to the Bank. 
 6.4 State of Organization. Not change its state of organization without prior written consent of the Bank. It shall promptly give the Bank written notice of any change in any of such addresses. All business records, including
those pertaining to all accounts and contract rights, shall be kept the States of New York, Minnesota and Massachusetts, unless prior written notice of such change of location is furnished to the Bank. 
 6.5 Inspection. Allow the Bank by or through any of its officers, agents, attorneys, or accountants designated by it, for the purpose of
ascertaining whether or not each and every provision hereof and of any Related Agreement, instrument or document is being performed and for the purpose of examining assets and the records relating thereto, to enter its offices, and plants to examine
or inspect any of the properties, books and records or extracts therefrom and to make copies thereof and to discuss the affairs, finances and accounts thereof with it and its accountants, all at such reasonable times and as often as the Bank may
reasonably request. Notwithstanding the foregoing and without limiting same, the Bank shall be permitted to conduct on-site field exams, but, prior to the occurrence of an Event of Default, not more than twice per calendar year. 
 6.6 Litigation. Promptly advise the Bank of the commencement of or threat of litigation, including arbitration proceedings and any
proceedings before any governmental agency, which might have a Material Adverse Effect. 
 6.7 Notices of Environmental and Labor
Actions and Claims. Immediately notify the Bank in writing of (a) any enforcement, clean-up, removal or other action instituted or threatened by any federal, state, county or municipal authority or agency pursuant to any public health,
safety or environmental laws, rules, ordinances and regulations, (b) any and all claims made or threatened by any third party against the Borrower or any real property owned or operated by it relating either to the existence of, or damage, loss
or injury from any toxic substances or hazardous wastes or any other conditions constituting actual or potential violations of such laws, rules, ordinances or regulations and (c) any enforcement or compliance action, instituted or threatened or
claim made or threatened by any federal or state authority relating to the employment of labor or employee benefits, which, in any of the foregoing cases, would have a Material Adverse Effect. 
 6.8 Maintenance of Existence. Continue to conduct its business as presently conducted, maintain its existence and maintain its properties
in good repair, working order and operating condition. The Borrower shall immediately notify the Bank of any event causing material loss or unusual depreciation in the value of its business assets and the amount of same. 
 6.9 Performance. Comply with all terms and conditions of this Agreement, the Related Agreements and the Note and pay all debts before the
same shall become delinquent. 

 SECTION 7. NEGATIVE COVENANTS 
 Unless the Bank consents in writing, the Borrower covenants and agrees that, until (a) the expiration or termination of any obligation on the part
of the Bank to make an Advance and (b) payment in full of all of the Note and the complete performance of all obligations hereunder and under any Related Agreement, it shall not: 
 7.1 Encumbrances and Agreements Not to Pledge. 
 (a) Incur or permit to exist any lien, mortgage, security interest, pledge, charge or other encumbrance against any of the Collateral, whether now owned or hereafter acquired, except: (i) Permitted Liens as set
forth on Schedule 4.11 hereto and liens in favor of the Bank; (ii) pledges or deposits in connection with or to secure worker’s compensation and unemployment insurance; (iii) tax liens which are being contested in good faith;
(iv) purchase money security interests securing Indebtedness permitted pursuant to Section 7.2(c) below, and (v) liens, mortgages, security interests, pledges, charges or other encumbrances in favor of the Bank or specifically
permitted, in writing, by the Bank. 
 (b) Enter into or permit to exist any agreement, arrangement or understanding, either oral or in
writing, with any person or entity other than the Bank, which restricts or prohibits the Borrower from incurring or permitting to exist any lien, mortgage, security interest, pledge, charge or other encumbrance on all or any portion of the
Collateral. 
 7.2 Limitation on Indebtedness. Without the prior written consent of the Bank, create or incur any indebtedness
for borrowed money, become liable, either actually or contingently, in respect of letters of credit or banker’s acceptances or issue or sell any of its obligations, excluding, however, from the operation of this covenant: (a) the Note and
all other Indebtedness to the Bank; (b) other Permitted Indebtedness as set forth in Schedule 7.2 and any extensions or renewals thereof; (c) other Indebtedness up to an aggregate maximum of $10,000,000.00; (d) Indebtedness
incurred in the ordinary course of business, and (e) contingent liabilities constituting Indebtedness which are permitted pursuant to Section 7.4 below. 
 7.3 Disposition of Assets. Sell, lease, pledge, transfer or otherwise dispose of all or any of the Collateral (other than the disposition of inventory in the ordinary course of business as presently
conducted), whether now owned or hereafter acquired, except for Permitted Liens and liens or encumbrances required or permitted hereby or by any Related Agreement. 
 7.4 Contingent Liabilities. Assume, guarantee, endorse or otherwise become liable upon the obligations of any person, entity or corporation except by the endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of business, except for guarantys or other recourse provisions issued under the Borrower’s leasing program or private label consumer credit program, up to an aggregate maximum
liability of $10,000,000.00. 
 7.5 Consolidation, Merger, or Conversion. Merge, consolidate or convert with or into any other
corporation or entity; and, for the purposes of this Section 7.5, the acquisition of all or substantially all of the assets, together with the assumption of all or substantially all of the obligations and liabilities, of any corporation or
entity shall be deemed to be a consolidation with such corporation or entity; provided, that this Section 7.5 shall not restrict the ability of Borrower (a) to merge or consolidate with any of 

 
its Subsidiaries (other than Cybex UK), so long as the Borrower is the surviving entity; or (b) to acquire (whether by merger or acquisition of stock or
assets) the assets or business of a third party, so long as (i) the line of business of the person to be acquired is substantially the same line of business as the principal business of the Borrower, (ii) immediately before and immediately
after giving pro forma effect to such acquisition, no Event of Default shall have occurred and be continuing and the Borrower shall be in compliance with the financial covenants set forth in Section 8 hereto, and (iii) the value of the
acquisition is equal to or less than $5,000,000. 
 7.6 Loans, Advances, Investments. Purchase or otherwise acquire any shares,
ownership interest or obligations of, or make loans or advances to, or investments in, any individual, entity or corporation, except for investments in direct obligations of the United States of America or certificates of deposit (or similar
investments) issued by the Bank and except for loans issued in connection with the purchase of the Borrower’s products, up to an aggregate maximum amount at any one time outstanding of $3,000,000. 
 7.7 Acquisition of Shares of Borrower. Purchase, acquire, redeem or retire, or make any commitment to purchase, acquire, redeem or retire
any of the shares or other ownership interest of the Borrower, whether now or hereafter outstanding. 
 7.8 Dividends.
[Intentionally Omitted.] 
 7.9 Transactions with Subsidiaries and Affiliates. Enter into, or be a party to, any transaction
with any Subsidiary or Affiliate (including, without limitation, transactions involving the purchase, sale or exchange of property, the rendering of services or the sale of stock) except in the ordinary course of business and upon fair and
reasonable terms no less favorable than would be obtained in a comparable arm’s-length transaction with a person other than a Subsidiary or an Affiliate. 
 7.10 Change of Name or Location. Change its name or conduct its business under any trade name or style other than as hereinabove set forth or change its chief executive office, place of business or the
present location of its assets or records relating thereto from those addresses hereinabove set forth, unless first providing not less than 30 days prior written notice thereof to the Bank. 
 7.11 Subsidiaries. Acquire, form or dispose of any Subsidiary or acquire all or substantially all or any material portion of the shares or
other ownership interest or assets of any other person, entity or corporation. Any Subsidiary deemed to be material by the Bank shall, upon request of the Bank, execute and deliver a guaranty (in the form of the Guaranty) of the Borrower’s
liabilities and obligations to the Bank. 
 7.12 Structure, Tax Classification. Make or consent to a material change in its
capital structure or convert into any other type of entity, or change an election to be taxed under Subchapter C or Subchapter S, as applicable, of the Internal Revenue Code. 
 7.13 Management, Accounting Methods. Make or consent to a material change in the management of the Borrower or in the manner in which the
business of the Borrower is conducted or in its method of accounting. 

 7.14 Use of Property. Allow any business or activity to be conducted on real property owned
or occupied by it that uses, manufactures, treats, stores or disposes of any toxic substances or hazardous wastes which are prohibited or regulated under any public health, safety or environmental law, rule, ordinance or regulation or contrary to
the provisions of any insurance policy, except in compliance with all applicable laws, ordinances and regulations with respect thereto. 
 SECTION 8. FINANCIAL COVENANTS 
 Unless the Bank consents in writing, the Borrower covenants and agrees that, until
(a) the expiration or termination of any obligation on the part of the Bank to make an Advance and (b) payment in full of the Notes and the complete performance of all obligations hereunder and under any Related Agreement: 
 8.1 Calculation of Financial Covenants. The calculation of the financial covenants set forth in this Section 8 shall be measured
against the financial statements required to be delivered to the Bank pursuant to Section 6.1 of this Agreement. The initial measurement of the financial covenants set forth in Sections 8.2, 8.3 below shall be June 30, 2008.

 8.2 Debt Service Coverage Ratio. The Borrower shall not permit its Debt Service Coverage Ratio to be less than the ratio
of 1.20 to 1.0, such Debt Service Coverage Ratio being measured quarterly, on a trailing twelve (12) month basis, as of the final day of each fiscal quarter. 
 8.3 Leverage Ratio. The Borrower shall not permit its Leverage Ratio to exceed 3.00 to 1.00, such Leverage Ratio being measured quarterly, on a trailing twelve (12) month basis as of the final day
of each fiscal quarter of Borrower. 
 SECTION 9. EVENTS OF DEFAULT: REMEDIES 
 If any one or more of the following events (“Events of Default,” or, if giving of notice or the lapse of time or both is required, then,
prior to such notice and lapse of time, “Defaults”) shall occur: 
 9.1 (a) Failure to pay the principal of or
interest on the Note, or to pay any amounts due under any Hedging Contracts, when due, or to pay any amount when due relating to other Indebtedness owing by the Borrower to Bank, now existing or hereinafter incurred, whether direct or contingent
within five (5) Business Days of when due, or (b) any Related Agreement ceases to be in full force and effect or any party to any Related Agreement notifies the Bank that such party has no continuing obligation to pay or perform its
obligations thereunder in accordance with the terms of the applicable Related Agreement, or (c) failure by the Borrower to observe, perform or achieve any covenant contained in Sections 6, 7 or 8 hereof; 
 9.2 Failure by the Borrower to perform any other act, duty, obligation or other agreement of Borrower of a non-monetary nature contained in this
Agreement, the Note or such Related Agreement and not otherwise constituting an Event of Default hereunder and such failure continues for twenty (20) days after notice thereof (unless a shorter period of time is provided in such Loan Document,
in which event, such shorter time period shall apply); or 

 9.3 Any representation or warranty made by the Borrower herein or in any Related Agreement, or any
statement, certificate or other data furnished by the Borrower in connection herewith or with any Related Agreement, proves at any time to be incorrect in any material respect; or 
 9.4 A judgment or judgments for the payment of money in excess of $250,000.00 shall be rendered against the Borrower or any Subsidiary, and any
such judgment shall remain unsatisfied and in effect for any period of thirty (30) consecutive days without a stay of execution (but, with respect to a Subsidiary other than Cybex UK, only if such event would have a Material Adverse Effect on
Borrower); or 
 9.5 Any levy, seizure, attachment, garnishment, execution or similar process shall be issued or levied on any of the
Borrower’s or Subsidiary’s property and is not dismissed, bonded over or otherwise addressed in a manner satisfactory to the Bank within thirty (30) days thereof (but, with respect to a Subsidiary other than Cybex UK, only if such
event would have a Material Adverse Effect on Borrower); or 
 9.6 The Borrower or any Subsidiary shall (a) apply for or consent
to the appointment of a receiver, conservator, trustee or liquidator of all or a substantial part of any of its assets; (b) be unable, or admit in writing its inability, to pay its debts as they mature; (c) file or permit the filing of any
petition or case for arrangement, reorganization, or the like under any insolvency or bankruptcy law, or the adjudication of it as a bankrupt, or the making of an assignment for the benefit of creditors or the consenting to any form of arrangement
for the satisfaction, settlement or delay of debt or the appointment of a receiver for all or any part of its properties; or (d) take any action for the purpose of effecting any of the foregoing (but, with respect to a Subsidiary other than
Cybex UK, only if such event would have a Material Adverse Effect on Borrower); or 
 9.7 An order, judgment or decree shall be
entered, or a case shall be commenced, against the Borrower or any Subsidiary, without the application, approval or consent of the Borrower or such Subsidiary by or in any court of competent jurisdiction, approving a petition or permitting the
commencement of a case seeking reorganization or liquidation of the Borrower or such Subsidiary or appointing a receiver, trustee, conservator or liquidator of the Borrower or such Subsidiary with respect to all or a substantial part of its assets
and the Borrower or such Subsidiary, by any act, indicates its approval thereof, consent thereto, or acquiescence therein, and such order, judgment, decree or case shall continue unstayed and in effect for any period of sixty (60) consecutive
days (but, with respect to a Subsidiary other than Cybex UK, only if such event would have a Material Adverse Effect on Borrower); or 
 9.8 The Borrower or any Subsidiary shall dissolve or liquidate, or be dissolved or liquidated, or cease to legally exist, or merge, consolidate or convert, or be merged, consolidated or converted with or into any other corporation or
entity (but, with respect to a Subsidiary other than Cybex UK, only if such event would have a Material Adverse Effect on Borrower); or 
 9.9 The suspension of business for any reason other than strike, casualty or cause beyond the Borrower’s control and in the event of such suspension for cause beyond the Borrower’s control, failure to resume operations as
soon as reasonably possible; or 

 9.10 Participation in any illegal activity or in any activity, whether or not related to the
business of the Borrower, that may subject the assets of the Borrower to (i) a restraining order or any form of injunction issued by any federal or state court, or (ii) seizure, forfeiture or confiscation by any federal or state
governmental instrumentality; or 
 9.11 Failure by the Borrower or any Subsidiary to pay any other Indebtedness or obligation to a
Person other than the Bank in excess of $500,000.00, whether contingent or otherwise, which failure continues beyond any applicable grace or cure periods, or if any such other Indebtedness or obligation shall be accelerated unless the reason for
such acceleration is being contested in good faith and the Borrower has set aside funds or posted a bond to the reasonable satisfaction of the Bank sufficient to satisfy such contested amounts (but, with respect to a Subsidiary other than Cybex UK,
only if such event would have a Material Adverse Effect on Borrower); or 
 9.12 [Intentionally Omitted.] 
 then, and in any such event, the Bank may, by notice in writing to the Borrower, accelerate the Note, declare the then outstanding principal balance and
all interest accrued on the Note and the other Related Agreements and all applicable late and other charges and all other liabilities and obligations of the Borrower to the Bank to be, and they shall thereupon forthwith become, immediately due and
payable, without presentment or demand for payment, notice of non-payment, protest or any other notice or demand of any kind, all of which are expressly waived by the Borrower; provided, that upon the occurrence of any Event of Default described in
Section 9.6 or Section 9.7 above, all such amounts shall become immediately due and payable automatically and without the requirement of notice from the Bank. 
 If any one or more of the Events of Default specified in Sections 9.6 or 9.7 shall occur, any right of Borrower to obtain additional loans from Bank shall forthwith terminate and the Bank shall be relieved of all
further obligations to make any Advances to the Borrower pursuant to Section 2 without notice to the Borrower, and the Bank shall be relieved of all further obligations to issue, extend or renew letters of credit. If any other Event of Default
shall have occurred and be continuing, the Bank may by notice to the Borrower, terminate the unused portions of the Loan, and upon such notice being given such unused portions of the Loan shall terminate immediately and the Bank shall be relieved of
all further obligations to make any Advances, and the Bank also shall be relieved of all further obligations to issue, extend or renew letters of credit. 
 The Bank, or affiliates of the Bank, have, or may in the future, enter into financial arrangements with or extend financial accommodations in favor of the Borrower, Affiliates and/or Subsidiaries (each a
“Related Loan Facility” and collectively, the “Related Loan Facilities”). As a condition and in consideration of the Bank entering into the Revolving Credit Facility, Borrower agrees that the occurrence of any event
of default with respect to any of the Related Loan Facilities or with respect to any other liability and/or obligation which any of the Borrower, any Subsidiary of the Borrower or any Affiliate of the Borrower may have to the Bank, now existing or
hereafter arising, shall constitute an Event of Default hereunder whereupon, in addition to and without limiting any other rights and remedies of the Bank, the Bank, at Bank’s option, may, by notice in writing to the Borrower, terminate all
obligations to make any further Advances under the Revolving Credit Facility and all amounts due under the Revolving Credit Facility shall be immediately due and payable, without presentment or demand for payment, notice of non-payment, protest or
any other notice or demand of any kind, all of which are expressly waived by the Borrower, notwithstanding anything to the contrary contained in any of the Related Agreements. 

 SECTION 10. MISCELLANEOUS 
 10.1 Waivers. 
 (a) The
Borrower hereby waives presentment, demand, notice, protest, notice of acceptance of this Agreement, notices of advances made, credit extended, collateral received or delivered or other action taken in reliance hereon and all other demands and
notices of any description. With respect to this Agreement, the Related Agreements, the Note and any collateral now or hereafter securing the Note, the Borrower assents to any extension or postponement of the time of payment or any other indulgence,
to any substitution, exchange or release of any collateral now or hereafter securing the Note, to the addition or release of any party or person primarily or secondarily liable, to the acceptance of partial payments thereon and the settlement,
compromising or adjusting of any thereof, all in such manner and at such time or times as the Bank may deem advisable. The Bank shall have no duty as to the collection or protection of any collateral now or hereafter securing the Note or any income
thereon, nor as to the preservation of rights against prior parties, nor as to the preservation of any rights pertaining thereto beyond the safe custody thereof. The Bank may exercise its rights with respect to any collateral without resorting or
regard to other collateral now or hereafter securing the Note or sources of reimbursement for liability. The Bank shall not be deemed to have waived any of its rights upon or under any document or agreement relating to the liabilities of the
Borrower or any collateral now or hereafter securing any such liabilities unless such waiver be in writing and signed by the Bank. No delay or omission on the part of the Bank in exercising any right shall operate as a waiver of such right or any
other right. A waiver on any one occasion shall not be construed as a bar to or waiver of any right on any future occasion. The Bank may revoke any permission or waiver previously granted to the Borrower, such revocation shall be effective whether
given orally or in writing. All rights and remedies of the Bank with respect to this Agreement, the Related Agreements, the Note or any collateral now or hereafter securing the Note, whether evidenced hereby or by any other instrument or document,
shall be cumulative and may be exercised singularly or concurrently. 
 (b) WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN
CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT
THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BANK AND ANY BORROWER ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS
AGREEMENT, THE NOTE, THE RELATED AGREEMENTS OR THE TRANSACTIONS RELATED THERETO. 

 (c) The Borrower acknowledges that the transaction of which this Agreement is a part is a commercial
transaction. 
 10.2 Notices. All notices, requests or demands to or upon a party to this Agreement shall be given or made by
the other party hereto in writing, directed to the applicable party at the addresses indicated below or to such other addresses as such addressee may have designated in writing to the other party hereto. No other method of giving any notice, request
or demand is hereby precluded. 
  

			
	If to the Bank:	 	RBS Citizens, National Association
		 	28 State Street
		 	Boston, Massachusetts 02109
		 	Attn: Mr. David J. Bugbee
		
	With a copy to:	 	Seyfarth Shaw, LLP
		 	World Trade Center East
		 	Two Seaport Lane, 3rd Floor
		 	Boston, MA 02210-2028
		 	Attn: Christopher P. Chappell, Esquire
		
	If to the Borrower:	 	Cybex International, Inc.
		 	10 Trotter Drive
		 	Medway, Massachusetts 02053
		 	Attn: Mr. Arthur W. Hicks, Jr.
		
	With a copy to:	 	Archer & Greiner, P.C.
		 	One Centennial Square
		 	Haddonfield, New Jersey 08033
		 	Attention: James Carll, Esquire

 Except as otherwise provided herein, whenever it is provided herein that any notice, demand,
request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other parties, or whenever any of the parties desires to give or serve upon any other parties any communication with
respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be deemed to have been validly served, given or delivered (a) upon the earlier of actual receipt
or refusal of delivery, (b) upon transmission, when sent by telecopy or other similar facsimile transmission (with such telecopy or facsimile promptly confirmed by delivery of a copy as otherwise provided in this Section 10.2),
(c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid, or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the
address or facsimile number indicated in this Section 10.2 or to such other address (or facsimile number) as may be substituted by notice given as herein provided. The giving of any notice required hereunder may be waived in writing by the
party entitled to receive such notice. Failure or delay in delivering copies of any notice, demand, request, consent, approval, declaration or other communication to any party caused as a result of substitution of counsel or such party’s change
of address, telecopy or facsimile and such party’s failure to notify the parties hereto of such change shall in no way adversely affect the effectiveness of such notice, demand, request, consent, approval, declaration or other communication.

 10.3 Expenses; Additional Documents. The Borrower will pay all taxes levied or assessed
upon the principal sum of the Advances made against the Bank and all costs and expenses arising out of the preparation, collection and/or other enforcement of this Agreement, the Related Agreements, the Note, or of any collateral or security
interest now or hereafter granted to secure the Note or security interest or lien granted under any Related Agreement (including, without limitation, counsels’ reasonable fees). The Borrower shall reimburse the Bank upon demand for the costs of
any field exam and appraisal. The Borrower will, from time to time, at its expense, execute and deliver to the Bank all such other and further instruments and documents and take or cause to be taken all such other and future action as the Bank shall
request in order to effect and confirm or vest more securely all rights contemplated by this Agreement or any Related Agreement. 
 10.4
Pledge To The Federal Reserve. The Bank may at any time pledge all or any portion of its rights under this Agreement, the Note, or the Related Agreements to any of the twelve (12) Federal Reserve Banks organized under Section 4
of the Federal Reserve Act, 12 U.S.C. Section 341. No such pledge or enforcement thereof shall release the Bank from its obligations under any of the loan documents. 
 10.5 Replacement of Documents. Upon receipt of an affidavit of an officer of the Bank and indemnification as to the loss, theft, destruction or mutilation of the Note (or either of them) or any Related
Agreement which is not of public record, and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of the Note or other Related Agreement, the Borrower will issue, in lieu thereof, a replacement Note or other agreement
in the same principal amount thereof and otherwise of like tenor. 
 10.6 Indemnification. The Borrower shall indemnify,
defend, and hold the Bank and any employee, officer, or agent of the Bank (each, an “Indemnified Person”) harmless of and from any claim brought or threatened against any Indemnified Person by the Borrower, or any endorser of the
Note, or any other person (as well as from attorneys’ reasonable fees and expenses in connection therewith) on account of the Bank’s relationship with the Borrower, or any endorser of the Note (each of which may be defended, compromised,
settled, or pursued by the Indemnified Person with counsel of the Bank’s selection, but at the expense of the Borrower) other than any claim as to which a final determination is made in a judicial proceeding (in which the Bank and any other
Indemnified Person has had an opportunity to be heard), which determination includes a specific finding that the Indemnified Person seeking indemnification had breached this Agreement or acted in a grossly negligent manner or in actual bad faith.

 The Borrower agrees to defend, indemnify and hold harmless the Bank and any participants, successors or assigns of the Bank and the
officers, directors, employees, counsel and agents and each of them from and against any and all losses, claims, liabilities, asserted liabilities, costs and expenses, including, without limitation, costs of litigation and attorneys’ reasonable
fees incurred in connection with any and all claims or proceedings for bodily injury, property damage, abatement or remediation, environmental damage or impairment or any other injury or damage (including all foreseeable and unforeseeable
consequential damage) or any diminution in value of any collateral resulting from or relating, directly or indirectly, to (a) any release, spilling, leaking, migrating, 

 
discharging, escaping, leaching, dumping or disposing (hereinafter, a “Release”) into the environment of any toxic substances or hazardous
wastes (actual or threatened), a threatened Release, the existence or removal of any toxic substances or hazardous wastes on, into, from, through or under any real property owned or operated by the Borrower (whether or not such Release was caused by
the Borrower or any Affiliate, a tenant, subtenant, prior owner or tenant or any other person and whether or not the alleged liability is attributable to the handling, storage, generation, transportation or disposal of toxic substances or hazardous
wastes or the mere presence of such toxic substances or hazardous wastes) or (b) the breach or alleged breach by the Borrower of any federal, state or local law or regulation concerning public health, safety or the environment with respect to
any real property owned or operated by the Borrower and/or any business conducted thereon. It is acknowledged and agreed that the scope of this indemnity shall not include damages suffered by the Bank due solely to its own gross negligence or
willful misconduct, except that this indemnification shall not be applicable to any conditions resulting from a Release occurring through no fault of the Borrower following the Bank’s taking possession of the Borrower’s property.

 10.7 Lien and Set Off. The Borrower hereby grants to the Bank, a lien, security interest and right of setoff as security for
all liabilities and obligations to Bank, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of the Bank or any entity under
the control of RBS Citizens, National Association or in transit to any of them. The Bank may set off the same or any part thereof at any time without demand or notice and apply the same to any liability or obligation of the Borrower of the adequacy
of any other collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE THE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE NOTES, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS,
CREDITS OR OTHER PROPERTY OF THE BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLE WAIVED. 
 10.8 Payments. All
payments made by the Borrower to the Bank shall be in lawful money of the United States in immediately available funds. The Bank is authorized (but not required) to charge principal and interest and all other amounts due hereunder, under any Related
Agreement and under the Note to any account of the Borrower when and as it becomes due. 
 10.9 Governing Law. This Agreement,
the Related Agreements and the rights and obligations of the parties hereunder and thereunder shall be construed and interpreted in accordance with the laws of The Commonwealth of Massachusetts. The Borrower agrees that the execution of this
Agreement, the Note, and Related Agreements and the performance of the Borrower’s obligations hereunder and thereunder shall be deemed to have a situs in The Commonwealth of Massachusetts, and the Borrower shall be subject to the personal
jurisdiction of the courts of the Commonwealth of Massachusetts with respect to any action the Bank or its successors or assigns may commence hereunder or thereunder. Accordingly, the Borrower hereby specifically and irrevocably consents to the
jurisdiction of the courts of the Commonwealth of Massachusetts with respect to all matters concerning this Agreement, the Note, Related Agreements, or the enforcement of any of the foregoing. 
 10.10 Survival of Representations. All representations, warranties, covenants and agreements herein contained or made in writing in
connection with this Agreement shall survive the execution and delivery of the Note, shall continue in full force and effect until all amounts payable on account of the Note, the Related Agreements and this Agreement shall have been paid in full and
this Agreement has been terminated by the Bank. 

 10.11 Severability. If any provision of this Agreement shall to any extent be held invalid
or unenforceable, then only such provision shall be deemed ineffective and the remainder of this Agreement shall not be affected. 
 10.12
Integration; Modifications. This Agreement is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this Agreement and supercede all oral statements and prior writings, with respect
thereto. No modification or amendment hereof shall be effective unless the same shall be in writing and signed by the parties hereto. 
 10.13 Assignments. The Borrower may not assign any of its obligations hereunder or under any Related Agreement to any person without the prior written consent of the Bank. The Bank may, without notice to or consent of the
Borrower, or any other person, sell, assign, grant a participation in or otherwise dispose of all or any portion of the Note, this Agreement and the Related Agreements to one or more banks or other financial institutions. In connection therewith,
the Bank may disclose to a prospective purchaser, assignee, participant or transferee, any information possessed by the Bank relating to the Borrower, the Loans and the collateral securing same. 
 10.14 Participations. Bank shall have the unrestricted right at any time and from time to time, and without the consent or notice to
Borrower to grant to one or more institutions or other persons (each a “Participant”) participating interests in Bank’s obligations to lend hereunder and/or any or all of the Loans held by Bank hereunder (in each instance, a
“Participation”). In the event of any such grant by Bank of a participating interest to a Participant, whether or not upon notice to Borrower, Bank shall remain responsible for the performance of its obligations hereunder and
Borrower shall continue to deal solely and directly with Bank in connection with Bank’s rights and obligations hereunder. Bank shall furnish any information concerning Borrower in its possession from time to time to any prospective assignees
and Participants, provided that Bank shall require any such prospective assignee or Participant to maintain the confidentiality of such information. 
 10.15 Capital Adequacy; Increased Costs; Illegality. 
 (a) If the Bank shall have determined
that any law, treaty, governmental (or quasi-governmental) rule, regulation, guideline or order regarding capital adequacy, reserve requirements or similar requirements or compliance by the Bank with any request or directive regarding capital
adequacy, reserve requirements or similar requirements (whether or not having the force of law), in each case, adopted after the date hereof from any central bank or other governmental authority will increase or would have the effect of increasing
the amount of capital, reserves or other funds required to be maintained by the Bank and thereby reducing the rate of return on the Bank’s capital as a consequence of its obligations hereunder, then the Borrower shall from time to time upon ten
(10) days’ written demand by the Bank pay to the Bank, additional amounts sufficient to compensate the Bank for such reduction. A certificate as to the amount of that reduction and showing the basis of the computation thereof submitted by
the Bank to the Borrower shall, absent manifest error, be final, conclusive and binding for all purposes. The Bank shall allocate the effect of such reduction among its customers in good faith. 

 (b) If, due to either (i) the enactment of or any change in any law or regulation (or any change in
the interpretation thereof) or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), in each case adopted after the date hereof, there shall be any
increase in the cost to the Bank of agreeing to make or making, funding or maintaining any Advance, then the Borrower shall from time to time, upon ten (10) days’ written demand by the Bank pay to the Bank additional amounts sufficient to
compensate the Bank for such increased cost. A certificate as to the amount of such increased cost, submitted to the Borrower by the Bank, shall be conclusive and binding on Borrower for all purposes, absent manifest error. The Bank agrees that, as
promptly as practicable after it becomes aware of any circumstances referred to above which would result in any such increased cost, the Bank shall, to the extent not inconsistent with the Bank’s internal policies of general application, use
reasonable commercial efforts to minimize costs and expenses incurred by it and payable to it by Borrower pursuant to this Section 10.15. The Bank shall allocate such increased costs among its customers in good faith. 
 10.16 Transaction in Best Interests of Borrower; Consideration. The transaction evidenced by this Agreement, the Note and the Related
Agreements is in the best interests of the Borrower, its Subsidiaries and the creditors of such persons. 
 10.17 Advice of
Counsel. Each of the parties represents to each other party hereto that it has reviewed and discussed this Agreement with its counsel. 
 10.18 Counterparts. This Agreement may be executed in any number of separate counterparts, each of which shall collectively and separately constitute one agreement. 
 10.19 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Borrower, the Bank and their
respective successors and assigns. 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as a sealed
instrument as of the day and year first above written. 
  

							
	Witness	 		 	BORROWER
			
		 		 	Cybex International, Inc.
				
	 /s/ James H. Carll
	 		 	By:	 	 /s/ Arthur W. Hicks, Jr.

	Print Name: James H. Carll	 		 	Name:	 	Arthur W. Hicks, Jr.
		 		 	Title:	 	President
			
	Witness:	 		 	BANK
			
		 		 	RBS Citizens, National Association
				
	 /s/ Nanette Capine Halpiu
	 		 	By:	 	 /s/ David J. Bugbee

	Print Name: Nanette Capine Halpiu	 		 	Name:	 	David J. Bugbee
		 		 	Title:	 	Senior Vice President

 List of Schedules and Exhibits: 
  

			
	 Exhibit A -
	 	Form of Revolving Credit Note
	 Exhibit B -
	 	Form of Loan Request
	 Exhibit C -
	 	Notice of Rate Selection
	 Exhibit D -
	 	Form of Borrowing Base Certificate
		
	 Schedule 4.3 -
	 	Financial Statements
	 Schedule 4.6 -
	 	Litigation
	 Schedule 4.7 -
	 	Subsidiaries
	 Schedule 4.11 -
	 	Permitted Liens
	 Schedule 4.12 -
	 	Business Names
	 Schedule 4.13 -
	 	Locations
	 Schedule 4.16 -
	 	Notices of Environmental Problems
	 Schedule 4.19 -
	 	Insurance
	 Schedule 5.1(e) -
	 	Subordinated Debt
	 Schedule 7.2 -
	 	Permitted Indebtedness

 Exhibit A 
 Form of Revolving Credit Note 
 Please see attached. 

 Exhibit B 
 Form of Loan Request 
             
    , 200   
 RBS Citizens, National Association 
 28 State Street 
 Boston, Massachusetts 02109 
 Attention:                      
 RE: RBS Citizens, National Association/Cybex International, Inc. 
 Dear Sir: 
 This Loan Request is submitted by Cybex International, Inc. (the “Borrower”) to RBS Citizens, National Association (the
“Bank”) pursuant to that certain Credit Agreement dated July __, 2008 by and between the Borrower and the Bank (the “Credit Agreement”) in order to induce the Bank to make the Advance requested. Capitalized terms
not otherwise defined herein shall have the meaning given such term in the Credit Agreement. 
  

	(i)	This is a request for an Advance under the Revolving Credit Facility. 

  

	(ii)	The amount of Advance requested, for which Borrower is eligible to borrow, is
$                    . 

  

	(iii)	The requested Advance is to accrue interest (from the interest rate options as set forth in the Credit Agreement) as a: 

  

					
	Select one:	  	  
	  	Prime Rate Loan;
		  	  
	  	LIBOR Advantage Rate Loan; or
		  	  
	  	LIBOR Rate Loan

 and, in the case of a LIBOR Rate Loan, the applicable interest period is
                     months. 
  

	(iv)	Requested date on which Advance is to be made:                     .

  

	(v)	At the time of the Advance, the Borrower hereby certifies and warrants that it is in compliance with all covenants as provided for in the Credit Agreement. 

 Executed as an instrument under seal on this      day of
            , 200    . 
  

			
	BORROWER
	
	Cybex International, Inc.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Exhibit C 
 Notice of Rate Selection 
                  , 200   
 RBS
Citizens, National Association 
 28 State Street 
 Boston,
Massachusetts 02109 
 Attention:
                     
 RE: RBS
Citizens, National Association/Cybex International, Inc. 
 Dear Sir: 
 Reference is hereby made to a certain Credit Agreement dated July __, 2008 (the “Credit Agreement”) by and between RBS Citizens, National Association (the “Bank”) and Cybex
International, Inc. (the “Borrower”). Capitalized terms used herein which are not otherwise specifically defined shall have the same meaning herein as given such term in the Credit Agreement. 
  

	(i)	This Notice is given to the Bank to advise of the Borrower’s selection of an interest rate with respect to an Advance already made in the principal amount of
$                    
                     under the Revolving Credit Facility. 

  

	(ii)	Interest Rate selection: 

  

					
	Select one:	  	  
	  	LIBOR Advantage Rate Loan;
		  	  
	  	LIBOR Rate Loan; or
		  	  
	  	Prime Rate Loan

 and, in the case of a LIBOR Rate Loan, the applicable Interest Period is
                     months. 
  

	(iii)	Effective date of change:                     . 

Executed as an instrument under seal on this      day of
            , 200  . 
  

			
	BORROWER
	
	Cybex International, Inc.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Exhibit D 
 Form of Borrowing Base Certificate 

 SCHEDULE 4.3 
 Financial Statements 

 SCHEDULE 4.6 
 Litigation 
 None 

 SCHEDULE 4.7 
 Subsidiaries 
  

							
		 	Cybex Capital Corporation	    	New York	  	
				
		 	Cybex Fitness Gerate Vertriebs, GmbH	    	Germany	  	
				
		 	Cybex International UK Ltd.	    	United Kingdom	  	
				
		 	Cybex Hong Kong Limited	    	Hong Kong	  	

 SCHEDULE 4.11 
 Permitted Liens 
 See Attached 

 SCHEDULE 4.12 
 Business Name(s) 
 None 

 SCHEDULE 4.13 
 Locations 
 1975 24th Avenue SW, Owatonna, MN 
 320 Norwood Park South,
Norwood, MA 

 SCHEDULE 4.16 
 Notices of Environmental Problems 
 None 

 SCHEDULE 4.19 
 Insurance 
 See Attached 

 SCHEDULE 5.1(e) 
 Subordinated Debt 
 None 

 SCHEDULE 7.2 
 Permitted Indebtedness 
 Wachovia Bank, National Association 
 $3,000,000.00 Term Loan, Outstanding as of June 30, 2008 $0.00. Maturity Date January 1, 2014. 
 $7,000,000.00 Term Loan, Outstanding as of June 30, 2008 $4,665,961.00. Maturity Date March 1, 2013 
 Citizens
Bank of Massachusetts 
 $13,000,000.00 Real Estate Loan, Outstanding as June 30, 2008 $12,523,333.00. Maturity Date July 2, 2014. 

United Leasing — Capital Leases 
 Vertical Machine Outstanding
as June 30, 2008 $25,948.46. Maturity Date April 30, 2009. 
 Robotic Weld Cell Outstanding as of June 30, 2008 $22,250.84. Maturity Date
April 30, 2009. 
 2004 Ford Van Outstanding as of June 30, 2008 $4,984.29. Maturity Date May 22, 2009.

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