Document:

Executive Agreement

 Exhibit 10.3 
 EXECUTION VERSION 
 EXECUTIVE AGREEMENT 

THIS EXECUTIVE AGREEMENT (this “Agreement”) is dated as of May 31, 2011, by and among PrinceRidge Holdings LP (the
“Company”), an indirect subsidiary of Institutional Financial Markets, Inc. (the “Parent”), Parent, John Costas (the “Executive”) and, solely with respect to Section 3.5(a), IFMI, LLC, a majority-owned subsidiary
of Parent (“IFMI”) (each a “Party” and, collectively, the “Parties”). 
 WHEREAS, IFMI, the
Company and PrinceRidge Partners LLC entered into a Contribution Agreement dated as of April 19, 2011 (the “Contribution Agreement”); 
 WHEREAS, the Company wishes that the Executive act as its Chairman, and the Executive wishes to provide such services, on the terms set forth below, effective as of the Interim Closing Date (as defined in
the Contribution Agreement) (such date the “Effective Date”); 
 NOW THEREFORE, the parties hereto agree as follows:

 1. Term. Subject to the terms and conditions set forth herein, the Executive hereby agrees to provide services to the Company and the
Company agrees to compensate the Executive for an initial term commencing as of the Effective Date and continuing through December 31, 2013, unless sooner terminated in accordance with the provisions of Section 4 or Section 5, with
such arrangement to continue for successive one-year periods in accordance with the terms of this Agreement (subject to termination as aforesaid) unless either party notifies the other party of non-renewal in writing prior to three (3) months
before the expiration of the initial term and each annual renewal, as applicable. (The period during which the Executive provides services hereunder being hereinafter referred to as the “Term.”) This Agreement shall be binding on the
Parties as of the date hereof; provided, however, that in the event that the Interim Closing (as defined in the Contribution Agreement) does not occur or the Contribution Agreement is terminated, this Agreement shall terminate without
any further obligation of the Parties and shall be null and void. 
 2. Duties. During the Term, the Executive shall serve as the
Company’s Chairman, reporting directly to the Board of Managers of PrinceRidge Partners LLC (the “General Partner”). The Executive shall faithfully perform for the Company the duties customarily attendant to Executive’s position
of said office and shall perform such other duties of an executive, managerial or administrative nature as shall be reasonably specified and reasonably designated from time to time by the Board of Managers of the General Partner (the
“Board”). The Executive’s main duties shall include (i) acting as the most senior member of the Board, (ii) having direct charge of, and providing authority over, all of the day-to-day business and affairs of the Company,
and (iii) delegating responsibilities to other senior managers or executives of the Company as he deems necessary or appropriate. In addition, Executive shall (i) give periodic reports to the Board of Directors of the Parent,
(ii) make himself available, as reasonably requested from time to time, to attend (either in person or by teleconference) the meetings of the Board of Directors of the Parent and investor presentations and calls of Parent, and
(iii) provide 

 
services, as may be reasonably requested from time to time by IFMI and agreed to by Executive, to IFMI’s other capital markets businesses, and perform any other duties for the Parent, or its
affiliates and subsidiaries, as may be mutually agreed to from time to time by the Executive and either the CEO or the Board of Directors of the Parent (collectively, the “IFMI Duties”). 

3. Compensation. 
 3.1 Guaranteed Payment. The Company shall pay the Executive a guaranteed payment at the rate of $200,000.00 per annum for the period beginning on the Effective Date through December 31, 2011
(the “Guaranteed Payment”), payable in equal monthly installments. For each year thereafter, the Executive’s Guaranteed Payment shall equal the sum of: (a) $200,000 and (b) the amount of the Initial Annual Allocation (as
herein determined), if any, for the immediately preceding calendar year. (Any such amount shall constitute the “Guaranteed Payment” as of the time of the calculation.) For United States federal, state and local tax purposes, each
Guaranteed Payment shall be treated and reported by the Company and the Partners as a “guaranteed payment” within the meaning of Section 707(c) of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury
Regulations promulgated thereunder. 
 3.2 Initial Annual Allocation. The Executive shall be entitled to an annual
allocation from the Company equal to 20% of Adjusted Profit, up to a maximum of $800,000 (the “Initial Annual Allocation”). For purposes hereof, (a) for each fiscal year beginning after December 31, 2011, “Adjusted
Profit” means an amount equal to (i) net profit of the Company in such fiscal year as determined in accordance with generally accepted accounting principles in the United States, less (ii) an amount (the “Retained Earnings
Amount”) equal to the Retained Earnings Percentage multiplied by $62,801,000, plus (iii) equity compensation expense relating to awards under the Amended and Restated Cohen Brothers, LLC 2009 Equity Award Plan (the “2009 Plan”)
included in the determination of net profit under clause (a)(i) above, and (b) for the fiscal year ending December 31, 2011, “Adjusted Profit” means an amount equal to (i) net profit of the Company for the period from the
Effective Date to and including December 31, 2011 as determined in accordance with generally accepted accounting principles in the United States, less (ii) the Retained Earnings Amount multiplied by a fraction, (x) the numerator of
which is the number of days from the Effective Date to and including December 31, 2011, and (y) the denominator of which is 365, plus (iii) equity compensation expense relating to awards under the 2009 Plan included in the
determination of net profit under clause (b)(i) above. For purposes hereof, the “Retained Earnings Percentage” means the percentage equal to 5% plus the 3-month LIBOR rate, expressed as a percentage, as published in the Wall Street Journal
(or, if such rate is not published in the Wall Street Journal, then such rate as determined by the Company in good faith based upon another reputable source) as of the last business day of such fiscal year. The Initial Annual Allocation shall be
payable in cash within 75 days after the end of such fiscal year (the “Initial Annual Allocation Payment Date”). For a period of sixty (60) days following the Initial Annual Allocation Payment Date, the Executive shall have the
opportunity to purchase additional units (the value of which shall not exceed the Initial Annual Allocation) representing a partnership interest of the Company (“Units”) at a price equal to the then-current book value of the Company;
provided, however, that if the ownership interest of Parent and its affiliates in the Company is below 51% or if the purchase of Units in connection with the Initial Annual 

  
 2 

 
Allocation and the Supplemental Annual Allocation (defined below) will dilute the ownership interest of Parent and its affiliates in the Company below 51%, the purchase of the additional Units
shall require the advance written approval of (1) Parent, if there are three IFMI Managers on the Board, or (2) the Board, if there are less than three IFMI Managers on the Board at such time. 

3.3 Supplemental Annual Allocation. In addition to any amounts payable under Section 3.2, Executive shall
be entitled to an annual allocation from the Company equal to 8 1/3% of Post-Initial Allocation Profit (the “Supplemental Annual Allocation”). For purposes hereof, “Post-Initial Allocation Profit” means an amount, determined in accordance with
generally accepted accounting principles as in effect from time to time, equal to (a) net profit of the Company in a fiscal year as determined in accordance with generally accepted accounting principles in the United States, less
(b) without duplication of amounts netted in the foregoing clause (a), the aggregate amount of “Initial Annual Allocations” paid to Executive under Section 3.2 hereof and paid to up to two other executives of the Company
(determined by the Board in its discretion) in accordance with provisions of executive agreements or other arrangements that are substantially the same as set forth in Section 3.2 hereof, plus (c) if agreed by the Company, restructuring
charges attributable to the transactions contemplated by the Contribution Agreement, plus (d) equity compensation expense relating to awards under the 2009 Plan included in the determination of net profit under clause (a) above. The
Supplemental Annual Allocation shall be payable in cash within 75 days after the end of such fiscal year (the “Supplemental Annual Allocation Payment Date”). For a period of sixty (60) days following the Supplemental Annual Allocation
Payment Date, the Executive shall have the opportunity to purchase additional Units (the value of which shall not exceed the Supplemental Annual Allocation) at a price equal to the then-current book value of the Company; provided, however, that if
the ownership interest of Parent and its affiliates in the Company is below 51% or if the purchase of Units in connection with the Initial Annual Allocation and the Supplemental Annual Allocation will dilute the ownership interest of Parent and its
affiliates in the Company below 51%, the purchase of the additional Units shall require the advance written approval of (1) Parent, if there are three IFMI Managers on the Board, or (2) the Board, if there are less than three IFMI Managers
on the Board at such time. 
 3.4 Discretionary IFMI Performance Bonus. In connection with any IFMI Duties that
may be mutually agreed to from time to time, the Board of Directors of the Parent may, in its sole discretion, award Executive an annual bonus in an amount and on such terms to be determined by the Board (“IFMI Performance Bonus”). Any
IFMI Performance Bonus to be awarded to Executive shall be approved by the Compensation Committee of the Board of Directors of the Parent. 
 3.5 Equity Incentive Compensation. 
 (a) Effective as of the date hereof,
Executive shall receive 424,371 shares of restricted common stock of the Parent (the “Restricted Common Stock”) under the Parent’s equity compensation plan (the “Parent Equity Plan”), which shall be issued as set forth in an
award document pursuant to the Parent Equity Plan. The Restricted Common Stock shall vest as follows: 60% on December 31, 2012, and 40% on December 31, 2013. Except as otherwise specifically provided in this Agreement, all unvested
Restricted Common Stock shall be forfeited 

  
 3 

 by the Executive if the Executive is not providing services to the Company or its affiliates at any time on
or prior to December 31, 2013; provided, however, that if Executive’s services with the Company ends pursuant to Section 5.2(b) hereof prior to January 1, 2013, the unvested Restricted Common Stock shall be immediately forfeited
and IFMI shall issue to Executive the number of units in IFMI equal to the number of shares of Restricted Common Stock at such time (the “IFMI Units”); provided, further, that if Executive’s services arrangement with the Company
hereunder ends pursuant to Section 5.2(b) hereof on or after January 1, 2013, any remaining unvested Restricted Common Stock shall be immediately vested. Notwithstanding anything to the contrary herein or in IFMI’s Amended and
Restated Limited Liability Company Agreement, as may be amended from time to time (the “Operating Agreement”), Executive shall not, prior to January 1, 2013, exercise his right pursuant to Section 12.2(a) of the Operating
Agreement to require IFMI to redeem all or a portion of the IFMI Units (the “Redemption Right”). As of the date hereof, the Exchange Ratio (as defined in the Operating Agreement) for determining the number of shares of Parent common stock
that Executive may receive in exchange for the IFMI Units in connection with an exercise of the Redemption Right is 1.0. The Exchange Ratio is subject to adjustment upon the occurrence of certain events as set forth in the Operating Agreement. IFMI
and Parent shall not amend the Operating Agreement to alter the Exchange Ratio or amend Section 12.2 of the Operating Agreement, in each case in a manner that has an adverse effect on Executive. Executive shall not make an election under
Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to the unvested Restricted Common Stock; in the event that Executive does make such election, the unvested Restricted Common Stock shall be
forfeited immediately and the award in Section 3.5(a) shall be deemed null and void ab initio. 
 (b) Effective as
of the date hereof, Executive shall receive a number of restricted profit and equity units of the Company that will equal 2.5% of the outstanding Units (the “Restricted Units”) under the Company’s equity compensation plan (the
“Company Equity Plan”), which shall be issued as set forth in an award document pursuant to the Company Equity Plan. The Restricted Units shall vest 40% on December 31, 2012, 20% on December 31, 2013, 20% on December 31,
2014 and 20% on December 31, 2015. Except as otherwise specifically provided in this Agreement, all unvested Restricted Units shall be forfeited by the Executive if the Executive is not providing services to the Company or its affiliates
pursuant to this Agreement at any time on or prior to December 31, 2015; provided, however, that if Executive’s services with the Company end pursuant to Section 5.2(b) hereof, any remaining unvested Restricted Units shall be
immediately vested. 
 3.6 Benefits-In General. The Executive shall be permitted during the Term to participate in any
group life, hospitalization or disability insurance plans, health programs, retirement plans, fringe benefit programs and other benefits that may be available to other senior executives of the Company generally, in each case to the extent that the
Executive is eligible under the terms of such plans or programs. 
 3.7 Vacation. The Executive shall be entitled to
vacation of no less than 20 business days per year, to be credited in accordance with ordinary Company policies. 

  
 4 

 3.8 Expenses-In General. The Company shall pay or reimburse the Executive for all
ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by the Executive during the Term in the performance of the Executive’s services under this Agreement, in accordance with the
Company’s policies regarding such reimbursements. 
 3.9 Priority Allocations Of Company Income and Gain In Respect of
Initial Annual Allocations and Supplemental Annual Allocations. Notwithstanding anything in the LP Agreement to the contrary and prior to the allocation to any Partner (including the Executive in his capacity as a Partner) of any Net Income, Net
Loss, Capital Net Income, Capital Net Loss and/or, otherwise, any income (gross or net), gain, loss and/or deduction of the Company for any fiscal year (or other period) of the Company under the LP Agreement (and/or applicable law): (a) the
Executive shall be specially allocated, and the Company shall specially allocate to the Executive, an amount of Company gross income and/or gain for such fiscal year (or other period) (“Company Income”) equal to the sum of the
Executive’s Initial Annual Allocation (if any) for such fiscal year (or other period), the Executive’s Supplemental Annual Allocation (if any) for such fiscal year (or other period) and any Unallocated Amount for such fiscal year (or other
period) (such sum, the “Special Allocation Amount” for such fiscal year (or other period)); and (b) if the Special Allocation Amount for such fiscal year (or other period) exceeds the Company’s Company Income for such fiscal year
(or other period), then any such excess shall constitute the “Unallocated Amount” for the immediately succeeding fiscal year (or other period) (including for purposes of this Section 3.9). Notwithstanding anything in the LP Agreement
to the contrary, the Company’s Net Income, Net Loss, Capital Net Income, Capital Net Loss and/or, otherwise, any income (gross or net), gain, loss and/or deduction of the Company for any fiscal year (or other period) of the Company allocable
(or to be allocated) to the Partners (including the Executive in his capacity as a Partner) pursuant to the LP Agreement (and/or applicable law) for such fiscal year (or other period) shall be computed without regard to any Company Income so
specially allocated to the Executive pursuant to this Section 3.9. All capitalized terms referred to in this Section 3.9 shall have the meaning set forth in the LP Agreement. 

4. Termination upon Death or Disability. If the Executive dies during the Term, the Term shall terminate as of the date of death,
and the obligations of the Company to or with respect to the Executive shall terminate in their entirety upon such date except as otherwise provided under this Section 4. If the Executive is unable to perform substantially and continuously the
duties assigned to him due to a disability as defined for purposes of the Company’s long-term disability plan then in effect, or, if no such plan is in effect, by virtue of ill health or other disability for more than 180 consecutive or
non-consecutive days out of any consecutive 12-month period, the Company shall have the right, to the extent permitted by law, to terminate the services arrangement hereunder upon notice in writing to the Executive. Upon termination of the services
arrangement hereunder due to death or disability, (i) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall be entitled to receive any Guaranteed Payment and other benefits (including
any allocations for a fiscal year completed before termination of this Agreement and the services arrangement hereunder but not yet paid (the “Prior Year Allocations”)) earned and accrued under this Agreement prior to the date of
termination, as well as any allocations (the “Partial Year Allocations”) under Sections 3.2 

  
 5 

 
and 3.3 of this Agreement for any portion of a fiscal year completed before termination and earned and accrued but not yet paid under this Agreement prior to the termination of the services
arrangement hereunder (and reimbursement under this Agreement for expenses actually incurred prior to the termination of this Agreement and the services arrangement hereunder); (ii) the Executive (or the Executive’s estate or beneficiaries
in the case of the death of the Executive) shall be entitled to receive a single-sum payment equal to the Guaranteed Payments that would have been paid to him for the remainder of the year in which the termination occurs; (iii) the Executive
(or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall receive a single-sum payment equal to the sum of (x) the Initial Annual Allocation and (y) the Supplemental Annual Allocation earned by the
Executive, if any, in the fiscal year preceding the date of termination (which amount shall be annualized to the extent the termination occurs prior to the completion of a full fiscal year) multiplied by a fraction (x) the numerator of which is
the number of days in the fiscal year preceding the termination and (y) the denominator of which is 365 and (iv) the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive) shall have no
further rights to any other compensation or benefits hereunder, or any other rights hereunder (but, for the avoidance of doubt, shall receive such disability and death benefits as may be provided under the Company’s plans and arrangements in
accordance with their terms). Unless the payment is required to be delayed pursuant to Section 7.15(b) below, the cash amounts payable pursuant to clauses (i), (ii) and (iii) above shall be paid to the Executive (or the
Executive’s estate or beneficiaries in the case of the death of the Executive) within 60 days following the date of his termination of the services arrangement hereunder on account of death or disability. Other than the Partial Year Allocations
and Prior Year Allocations, all payments under this Section 4 shall be considered a guaranteed payment from the Company. 
 5. Certain
Terminations of the Services Arrangement; Certain Benefits. 
  

	 	5.1	Termination by the Company for Cause; Termination by the Executive without Good Reason. 

(a) For purposes of this Agreement, “Cause” shall mean the Executive’s: 

(i) commission of, and indictment (that is not quashed within 90 days) for or formal admission to any crime of moral turpitude,
dishonesty, breach of trust or unethical business conduct, or any crime involving the Company (other than routine traffic violations); provided that such crime has a material adverse effect on the business or reputation of the Company; 

(ii) indictment (that is not quashed within 90 days) for or formal admission to a felony, except for a felony under state law that is
(A) solely related to the operation of a motor vehicle or boat, and (B) of the lowest class or degree of felony in a state that so classifies felonies (for purposes of clarification, the exception set forth in this clause shall not apply
with respect to a felony for which Executive is indicted in a state that does not classify felonies); 
 (iii) engagement in
fraud, misappropriation or embezzlement that has a material adverse effect on the business or reputation of the Company; 

  
 6 

 (iv) continued failure to materially adhere to written policies and practices of the
Company and/or the General Partner; or 
 (v) material breach of any of the provisions of Section 6; 

provided, that the Company shall not be permitted to terminate this Agreement and the services arrangement hereunder for Cause except (x) on written
notice of the Company’s intent to terminate for Cause (which shall include reasonable detail of the specific event constituting Cause) given to the Executive at any time not more than 60 calendar days following the occurrence of any of the
events described in clause (iii) through (v) above (or, if later, the Company’s knowledge thereof), and (y) if the Executive has been provided with an opportunity (with counsel of his choice) to contest the proposed reason(s) of
Cause set forth in the notice at meeting of the Board. Notwithstanding the foregoing, in the event that the Company provides written notice to the Executive that Cause exists as a result of the occurrence of the events described in clause
(iv) or (v), the Executive shall have 30 calendar days from the date of such notice to cure any such event that is reasonably curable and, if the Executive does so to the reasonable satisfaction of the Company, such event shall not constitute
Cause hereunder. 
 (b) The Company may terminate this Agreement and the services arrangement hereunder for Cause, and the
Executive may terminate this Agreement and the services arrangement hereunder on at least 30 days’ written notice given to the Company. If the Company terminates this Agreement and the services arrangement hereunder for Cause, or the Executive
terminates this Agreement and the services arrangement hereunder and the termination by the Executive is not for Good Reason in accordance with Section 5.2, (i) the Executive shall receive the Guaranteed Payment and other benefits
(including any Prior Year Allocations), as well as the Partial Year Allocations (and reimbursement under this Agreement for expenses actually incurred prior to the termination of this Agreement and the services arrangement hereunder); and
(ii) the Executive shall have no further rights to any other compensation, benefits or bonuses under this Agreement on or after the termination the services arrangement hereunder. Unless the payment is required to be delayed pursuant to
Section 7.15(b) below, the cash amounts payable to the Executive under this Section 5.1(b) shall be paid to the Executive in a single-sum payment within 60 days following the date of the termination of his service arrangement with the
Company pursuant to this Section 5.1(b). 
 Other than the Partial Year Allocations and Prior Year Allocations, all payments under this
Section 5.1 shall be considered guaranteed payments from the Company. 
  

	 	5.2	Termination by the Company without Cause; Termination by the Executive for Good Reason. 

(a) For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to by the Executive, 

(i) (a) the material reduction of the Executive’s title, authority, duties or responsibilities (other than IFMI Duties), or
(b) the assignment to the Executive of duties materially inconsistent with the Executive’s position or positions with the Company (including his role as a member of the Board); 

  
 7 

 (ii) a reduction in the annual Guaranteed Payment of the Executive below the amount
calculated in accordance with Section 3.1 of this Agreement or any modification of the Guaranteed Payment formula, Initial Annual Allocation formula or Supplemental Annual Allocation formula without Executive’s written consent; 

(iii) the Company’s material breach of this Agreement; or 

(iv) Executive is required to relocate his office more than 30 miles outside of the Borough of Manhattan, New York. 

Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of termination on account thereof (specifying a
termination date no later than 30 days from the date of such notice) is given no later than 30 days after the time at which the event or condition purportedly giving rise to Good Reason first occurs or arises and (ii) if there exists (without
regard to this clause (ii)) an event or condition that constitutes Good Reason, the Company shall have 30 days from the date notice of such a termination is given to cure such event or condition and, if the Company does so, such event or condition
shall not constitute Good Reason hereunder. 
 (b) The Company may terminate this Agreement and the services arrangement
hereunder and the Executive may terminate this Agreement and the services arrangement hereunder at any time for any reason or no reason. If the Company terminates the services arrangement hereunder and the termination is not covered by
Section 4 or 5.1 or the Executive terminates the services arrangement hereunder for Good Reason: 
 (i) the Executive
shall receive a single-sum payment equal to accrued but unpaid Guaranteed Payments and other benefits (including any Prior Year Allocations), as well as the Partial Year Allocations (and reimbursement under this Agreement for expenses actually
incurred prior to the termination of the services arrangement hereunder); 
 (ii) the Executive shall receive a single-sum
payment of an amount equal to 3.0 times (a) the average of the Guaranteed Payment amounts paid to Executive over the three calendar years prior to the date of termination, (b) if less than three years have elapsed between the date of this
Agreement and the date of termination, the highest Guaranteed Payment paid to Executive in any calendar year prior to the date of Termination, or (c) if less than 12 months have elapsed from the date of this Agreement to the date of
termination, the highest Guaranteed Payment received in any month times 12; and 
 (iii) the Executive shall receive a
single-sum payment equal to the sum of (x) the Initial Annual Allocation and (y) the Supplemental Annual Allocation earned by the Executive, if any, in the fiscal year preceding the date of termination (which amount shall be annualized to
the extent the termination occurs prior to the completion of a full fiscal year) multiplied by a fraction (x) the numerator of which is the number of days in the fiscal year preceding the termination and (y) the denominator of which is
365. 
 Unless the payment is required to be delayed pursuant to Section 7.15(b) below, the cash amounts payable to the Executive under
this Section 5.2(b) shall be paid to the Executive within 60 days following the date of his termination his services arrangement with the Company hereunder pursuant to this Section 5.2(b). 

  
 8 

 Other than the Partial Year Allocations and Prior Year Allocations, all payments under this Section 5.2
shall be considered guaranteed payments from the Company. 
 5.3 Change of Control. Without duplication of the
foregoing, upon a “Change of Control” (as defined below) (a) while the Executive is providing services to the Company or an affiliate pursuant to this Agreement, or (b) that occurs between the period commencing on the date of the
Contribution Agreement and ending on the Interim Closing Date (but only if the Interim Closing occurs), all outstanding unvested equity-based awards received or, in the case of a Change of Control prior to the Interim Closing Date, to be received
pursuant to Sections 3.5(a) and (b) of this Agreement, shall fully vest and shall become immediately exercisable, as applicable. Only with respect to a Change of Control transaction that is first announced after the nine-month anniversary of
the date hereof, there will be a transition period (“Transition Period”) which will begin on the date of the Change of Control and end on the first anniversary of such Change of Control. If the Executive terminates the services arrangement
with the Company hereunder within the six-month period following the Transition Period, such termination shall be deemed a termination by the Executive for Good Reason covered by Section 5.2. 

For purposes of this Agreement, “Change of Control” shall mean the occurrence of any of the following on or after the date hereof: 

(i) any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), but excluding Executive, Daniel G. Cohen, any Family Member of Executive or Daniel G. Cohen, the Company, IFMI, LLC, any entity or person controlling, controlled by or under common control with
Executive, Daniel G. Cohen, any Family Member of Executive or Daniel G. Cohen, the Company, IFMI, LLC, any employee benefit plan of the Company or any such entity, and any “group” (as such term is used in Section 13(d)(3) of the
Exchange Act) of which any of the foregoing persons or entities is a member), is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of Parent representing 50% or
more of either (A) the combined voting power of Parent’s then outstanding securities or (B) the then outstanding Common Stock of Parent (in either such case other than as a result of an acquisition of securities directly from Parent,
IFMI, LLC or the Company); provided, however, that, in no event shall a Change of Control be deemed to have occurred upon a public offering of the Common Stock under the Securities Act of 1933, as amended (for purposes hereof, “Family
Member” means (I) a person’s spouse, parent, sibling and descendants (whether natural or adopted), (II) any family limited partnership, limited liability company or other entity wholly owned, directly or indirectly, by such person
and/or such person’s spouse, parent, sibling and/or descendants (whether natural or adopted), and (III) any estate or trust for the benefit of such person and/or such person’s spouse, parent, sibling and/or descendants (whether natural or
adopted)); or 
 (ii) any consolidation or merger of Parent where the stockholders of Parent, immediately prior to the
consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the 

  
 9 

 
Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the entity issuing cash or securities in the
consolidation or merger (or of its ultimate parent entity, if any); 
 (iii) there shall occur (A) any sale, lease,
exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of Parent, other than a sale or disposition by Parent of all or
substantially all of Parent’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by “persons” (as defined above) who beneficially hold shares of Common Stock of Parent, as
applicable, immediately prior to such sale or (B) the approval by stockholders of Parent of any plan or proposal for the liquidation or dissolution of Parent, as applicable; or 

(iv) the members of the Board of Directors of Parent at the beginning of any consecutive 24-calendar-month period (the “Incumbent
Directors”) cease for any reason other than due to death to constitute at least a majority of the members of the Board of Directors of Parent; provided that any director whose election, or nomination for election by the Parent’s
stockholders, was approved by a vote of at least a majority of the members of the Board of Directors of Parent then still in office who were members of the Board of Directors of Parent at the beginning of such 24-calendar-month period, shall be
deemed to be an Incumbent Director; provided, however, that, following the Final Closing Date (as defined in the Contribution Agreement), each of the foregoing shall constitute a Change of Control for purposes hereof if and only if at the time of
any such occurrence the Company is directly or indirectly a subsidiary of Parent and the results of operations of the Company are consolidated in Parent’s financial statements in accordance with generally accepted accounting principles as in
effect from time to time. 
 5.4 Parachutes. If any amount payable to or other benefit receivable by the Executive
pursuant to this Agreement would be deemed to constitute a Parachute Payment (as defined below), alone or when added to any other amount payable or paid to or other benefit receivable or received by the Executive which is deemed to constitute a
Parachute Payment (whether or not under an existing plan, arrangement or other agreement), and would result in the imposition on the Executive of an excise tax under Section 4999 of the Code, then the Parachute Payments shall be reduced (but
not below zero) so that the maximum amount of the Parachute Payments (after reduction) shall be one dollar ($1.00) less than the amount which would cause the Parachute Payments to be subject to the excise tax imposed by Section 4999 of the
Code. Any such reduction shall be made by first reducing severance benefits (if any). Notwithstanding the foregoing, if the reduction of Parachute Payments under this Section 5.4 would be equal to or greater than $50,000, then there shall be no
such reduction and the full amount of the Parachute Payment shall be payable. “Parachute Payment” shall mean a “parachute payment” as defined in Section 280G of the Code. The calculation under this Section 5.4 shall be
as determined by the Company’s independent accountants. 
 5.5 Execution of Release. The Executive acknowledges
that, if required by the Company prior to making the payments and benefits set forth in this Section 5 (other than accrued but unpaid Guaranteed Payments and other benefits), all such payments and benefits are subject to his execution of a
commercially reasonable mutual release containing a release from 

  
 10 

 
liability by (a) the Executive of the Released Parties, and (b) the Released Parties of the Executive, his estate and his heirs. “Released Parties” shall mean the Company, the
General Partner, IFMI, the Parent, and their respective affiliates, successors, subsidiaries, related entities, divisions, partnerships, joint ventures predecessors or assigns, and each of their respective past and present officers, directors,
partners, executives, managers, owners, employees, trustees, agents, attorneys, insurers, representatives, employee benefit plans or programs (and the trustees, administrators, fiduciaries, sponsors and insurers of such plans or programs), and each
and all of their successors and assigns and any other persons acting by, through, under or in concert with any of the aforementioned persons or entities. If Executive fails to execute such release, or such release does not become irrevocable within
60 days following the date of the termination of the Executive’s services arrangement with the Company hereunder, all such payments and benefits set forth in this Section 5 shall be forfeited. 

5.6 Exculpation. 
 (a) The Executive shall not be liable to any Member or Partner or to the Company, PrinceRidge Partners LLC (the “LLC”) or their Affiliates for any action or inaction, unless such action or
inaction arises out of, or is attributable to, the gross negligence, willful misconduct or fraud of the Executive and such action is materially injurious to the financial condition or business reputation of the Business, nor shall the Executive be
liable to any Member or Partner or to the Company, the LLC or their Affiliates for any action or inaction of any broker or agent of the Company, the LLC or their Affiliates selected by such Executive; provided, that such broker or agent was
selected, engaged or retained by such Executive in accordance with reasonable care. Any Executive may consult with counsel, accountants, investment bankers, financial advisers, appraisers and other specialized, reputable, professional consultants or
advisers in respect of the affairs of the Company, the LLC or their Affiliates and be fully protected and justified in any action or inaction which is taken in accordance with the advice or opinion of such persons; provided, that such persons
shall have been selected in accordance with reasonable care. All capitalized terms used but not defined in this Agreement shall have the meanings given to such terms in the LP Agreement or the LLC Agreement (each as defined below), as applicable.

 (b) Notwithstanding any of the foregoing to the contrary, the provisions of this Section 5.6 shall not be construed so
as to relieve (or attempt to relieve) the Executive of any liability to the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but the provisions of this Section 5.6 shall be
construed so as to effectuate the provisions of this Section 5.6 to the fullest extent permitted by law. 
 5.7
Indemnification. 
 (a) To the fullest extent permitted by applicable law, as it presently exists or may hereafter be
amended, the Parent shall indemnify the Executive against any actual or threatened action, suit or proceeding, whether civil or criminal, administrative or investigative, against Executive or in which Executive is otherwise involved in arising by
reason of performing any IFMI Duties or acting in any capacity on behalf of the Parent or any of its affiliates or subsidiaries (other than the Company, the General Partner or any of their respective subsidiaries), and shall pay the expenses,
including reasonable attorneys’ fees, incurred by 

  
 11 

 
Executive in defending any such action, suit or proceeding in advance of its final disposition. The provisions of this Section 5.7(a) shall in no way limit, and shall be in addition to,
Executive’s rights to indemnification and advancement of expenses provided under the Company’s partnership documents. The Executive will at all relevant times be covered under any contract of directors and officers liability insurance of
the Parent and the Parent shall at all times during which Executive is performing any of the IFMI Duties maintain commercially reasonable levels of directors and officers liability insurance. The Executive’s right to indemnification shall apply
as provided herein notwithstanding the availability of any indemnification rights Executive may have from other sources. 
 (b)
The Executive shall, in accordance with this Section 5.7(b), be indemnified and held harmless by the Company, the LLC and their controlled Affiliates from and against any and all Indemnification Obligations (as defined below) arising from any
and all claims, demands, actions, suits or proceedings (civil, criminal, administrative or investigative), actual or threatened, in which such Executive may be involved, as a party or otherwise, by reason of such Executive’s service to or on
behalf of, or management of the affairs of, the Company, the LLC and their Affiliates, or rendering of advice or consultation with respect thereto, or which relate to the Company, the LLC or their Affiliates or any of their properties, business or
affairs; provided, that such Indemnification Obligation resulted from the action or inaction of such Executive that did not constitute gross negligence, willful misconduct or fraud which, in each such case, was materially injurious to the
financial condition or business reputation of the Business and provided, further, that the Executive shall not be entitled to indemnification hereunder for any acts, omissions or transactions for which an officer or director of a
Delaware corporation may not be relieved of liability under the Delaware General Corporation Law. The Company, the LLC and their controlled Affiliates shall also indemnify and hold harmless the Executive from and against any Indemnification
Obligation suffered or sustained by the Executive by reason of any action or inaction of any broker or agent of the Company selected by such Executive; provided, however, that such broker or agent was selected, engaged or retained by
such Executive in accordance with reasonable care. The termination of a proceeding by judgment, order, settlement, conviction or upon a plea of nolo contendere, or its equivalent, shall not, of itself, create a presumption that such
Indemnification Obligation resulted from the gross negligence, willful misconduct or fraud, or lack of reasonable care, of the Executive or that the act, omission or transaction was one for which an officer or director of a Delaware corporation may
not be relieved of liability under the Delaware General Corporation Law. Subject to Section 14.15 of the LLC Agreement and Section 14.15 of the LP Agreement, expenses (including legal and other professional fees and disbursements) incurred
in connection with this Section 5.7(b) shall be paid by the Company as and when incurred by the Executive. “Indemnification Obligations” means costs, losses, claims, damages, liabilities, expenses (including reasonable legal and other
professional fees and disbursements), judgments, fines, settlements and other amounts, collectively. 
 (c) The indemnification
provided by this Section 5.7(b) (i) shall not be deemed to be exclusive of any other rights to which the Executive may be entitled under any agreement, or as a matter of law, or otherwise, both as to action in the Executive’s official
capacity and to action in another capacity, (ii) shall continue after the Executive has ceased to have an official capacity with respect to the Company, the LLC or their Affiliates for acts or omissions that

  
 12 

 
occurred during such official capacity or otherwise when acting at the request of the Company, the LLC or their Affiliates, and (iii) shall inure to the benefit of the heirs, successors and
assigns of such Executive. 
 (d) Notwithstanding any of the foregoing to the contrary, the provisions of this
Section 5.7(b) shall not be construed so as to provide for the indemnification of the Executive for any liability to the extent (but only to the extent) that such indemnification would be in violation of applicable law or that such liability
may not be waived, modified or limited under applicable law, but the provisions of this Section 5.7(b) shall be construed so as to effectuate the provisions of this Section 5.7(b) to the fullest extent permitted by law. 

5.8 Termination of the Services Arrangement Pursuant to the Termination and Separation Agreement. The Company, IFMI, and the
General Partner have entered into a Termination and Separation Agreement. Pursuant to the Termination and Separation Agreement, in the event of a Termination and Separation Event (as defined in the Termination and Separation Agreement), this
Agreement, and Executive’s services arrangement hereunder, shall terminate effective as of the date hereof. In such instance, Executive shall be entitled only to the Guaranteed Payments under Section 3.1 and Benefits under Section 3.6
from the date hereof through the Termination Date (as defined in the Termination and Separation Agreement) and Executive shall not be entitled to any other compensation, benefits, bonuses, allocations or equity incentive compensation of any kind.
For the avoidance of doubt, Executive shall not be entitled to any compensation, benefits, bonuses or allocations under Sections 3.2, 3.3, 3.4, 3.7, 4.0, 5.1(b), 5.2(b), 5.3, 5.4 and the covenants set forth Section 6.2 shall not apply. In
addition, Executive shall immediately forfeit any and all rights to the Restricted Common Stock and Restricted Units pursuant to Section 3.5. 
 6. Covenants of the Executive. 
 6.1 Confidentiality. The Executive
acknowledges that (i) the primary business of the Company is currently its capital markets business (sales and trading of securities as well as investment banking) and that the Company may engage in additional or different areas of business
during Executive’s services arrangement with the Company hereunder (all of which are collectively referred to as the “Business”); (ii) the Company is one of a limited number of persons who have such a business; (iii) the
Company’s Business is, in part, national and international in scope; (iv) the Executive’s work for the Company has given and will continue to give him access to the confidential affairs and proprietary information of the Company;
(v) the covenants and agreements of the Executive contained in this Section 6 are essential to the business and goodwill of the Company; and (vi) the Company would not have entered into this Agreement but for the covenants and
agreements set forth in this Section 6. Accordingly, the Executive covenants and agrees during and after the period of the Executive’s services arrangement with the Company and its affiliates, the Executive (x) shall keep secret and
retain in strictest confidence all confidential matters relating to the Company’s Business and the business of any of its affiliates and to the Company and any of its affiliates, learned by the Executive heretofore or hereafter directly or
indirectly from the Company or any of its affiliates (the “Confidential Company Information”), and (y) shall not disclose such Confidential Company Information to anyone outside of the Company unless (i) the disclosure is done
with the Company’s or such affiliate’s, as applicable, express written consent, (ii) the Confidential 

  
 13 

 
Company Information is at the time of receipt or thereafter becomes publicly known through no wrongful act of the Executive or is received from a third party not under an obligation to keep such
information confidential and without breach of this Agreement, (iii) the disclosure is required to be made pursuant to an order of any court or government agency, subpoena or legal process; (iv) the disclosure is made to officers or
directors of the Company or its affiliates (and/or the officers and directors of such affiliates), and to auditors, counsel, and other professional advisors to the Company or its affiliates, or (v) the disclosure is made by a court or
arbitrator in connection with any litigation or dispute between the Company and the Executive. Unless prohibited by law, regulation or order of a court or other governmental or regulatory body, the Executive shall as promptly as reasonably
practicable supply the Company with a copy of any legal process delivered to the Executive requesting Confidential Company Information. Prior to any disclosure of Confidential Company Information, unless prohibited by law, regulation or order of a
court or other governmental or regulatory body, the Executive shall notify the Company and shall cooperate and not object to the Company seeking an order protecting the confidentiality of such information. 

6.2 Noncompetition/Nonsolicitation. 
 (a) For a period of three months following the end of the Term (the “Noncompetition Period”), in either case regardless of the reason the Term of this Agreement and the services arrangement
hereunder ends (including, but not limited to, nonrenewal of this Agreement by either Executive or the Company), Executive shall not, directly or indirectly, engage or participate in, or become employed by, or affiliated with, or render advisory or
any other services to, any person or business entity or organization, of whatever form, that competes with the Company or any of its affiliates in any country in which the Company or any of its affiliates operates. 

(b) For a period of 12 months following the end of the Term, regardless of the reason the Term of this Agreement and the services
arrangement hereunder ends (including, but not limited to, nonrenewal of this Agreement by either Executive or the Company), Executive shall not, directly or indirectly, (i) solicit, induce, cause or otherwise attempt to solicit, induce or
cause any person who is employed or engaged by the Company, Parent or their respective affiliates or subsidiaries (collectively, the “Company Affiliates”) to (A) end his or her employment or engagement with any of the Company
Affiliates, (B) accept employment or other engagement with any person or entity other than any of the Company Affiliates, or (C) in any manner interfere with the business of the Company Affiliates, or (ii) hire any person who was an
employee of any of the Company Affiliates at the time of such termination or within the six-month period prior to such termination (provided, that this clause (ii) shall not apply to any employee who has been terminated by any of the Company
Affiliates). 
 (c) During the Noncompetition Period, regardless of the reason the Term of this Agreement and the services
arrangement hereunder ends (including, but not limited to, nonrenewal of this Agreement by either Executive or the Company), Executive shall not, directly or indirectly, solicit, induce, direct or do any act or thing which may interfere with or
adversely affect the relationship of any of the Company Affiliates with any person or entity who was a material customer or client of such entities or with whom such entities were actively seeking to form a business relationship either at the time
of the termination of Executive’s employment or 

  
 14 

 
within the six-month period immediately preceding such termination, or otherwise induce or attempt to induce any such person or entity to cease doing business, reduce or otherwise limit its
business with any of the Company Affiliates. For purposes hereof, “material customer or client” means a customer or client that is one of the 25 largest customers or clients of such entity. 

Executive specifically acknowledges that the temporal and geographical limitations hereof, in view of the nature of the Company’s Business (as
defined herein), are reasonable and necessary to protect the Company’s legitimate business interests. 
 6.3 Rights and
Remedies upon Breach. The Executive acknowledges and agrees that any breach by him of any of the provisions of Sections 6.1 and 6.2 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages
would not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to commit a breach of, any of the provisions of Sections 6.1 or 6.2, the Company and its affiliates, in addition to, and not in lieu of, any other rights and
remedies available to the Company and its affiliates under law or in equity (including, without limitation, the recovery of damages), shall have the right and remedy to have the Restrictive Covenants specifically enforced by any court having equity
jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants. 
 6.4 Outside Activities. Section 13.09 of the Fourth Amended and Restated Limited
Partnership Agreement of the Company shall not apply to Executive. 
 7. Other Provisions. 

7.1 Severability. The Executive acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in
connection with this Agreement and (ii) the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects. If it is determined that any of the provisions of this Agreement, including, without limitation, any
of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the provisions of this Agreement shall not thereby be affected and shall be given full effect, without regard to the invalid portions. 

7.2 Duration and Scope of Covenants. If any court or other decision-maker of competent jurisdiction determines that any of the
Executive’s covenants contained in this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form, such provision shall then be enforceable and shall be
enforced. 
 7.3 Enforceability; Jurisdiction; Arbitration. Any controversy or claim arising out of or relating to this
Agreement, the breach of this Agreement (other than a controversy or claim arising under Section 6, to the extent necessary for the Company (or its affiliates, where applicable) to avail itself of the rights and remedies referred to in
Section 6.3) and /or your services arrangement hereunder with the Company in general that are not resolved by the 

  
 15 

 
Executive and the Company (or its affiliates, where applicable) shall be submitted to arbitration in New York, New York in accordance with the law of the State of New York and the Employment
Arbitration Rules and Mediation Procedures of the American Arbitration Association or, if applicable, in accordance with the rules and procedures of the Financial Industry Regulatory Authority. The determination of the arbitrator(s) shall be
conclusive and binding on the Company (or its affiliates, where applicable) and the Executive and judgment may be entered on the arbitrator(s)’ award in any court having jurisdiction. 

7.4 Notices. Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered
personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail, postage prepaid. Any such notice shall be deemed given when so delivered personally, telegraphed, telexed or sent by facsimile
transmission or, if mailed, five days after the date of deposit in the United States mails as follows: 
  

	(i)	If to the Company, to: 

 PrinceRidge Holdings LP

 1633 Broadway, 28th Floor 
 New York,
NY 10019 
 Attention: General Counsel 

Or such other address that may be designated by the Company from time to time, 
 With copy to: 
 Institutional Financial Markets, Inc. 

2929 Arch Street, 17th Floor 
 Philadelphia, PA
19104 
 Attention: General Counsel 
  

	(ii)	If to the Parent, to: 

 Institutional Financial
Markets, Inc. 
 2929 Arch Street, 17th Floor 
 Philadelphia, PA 19104 
 Attention: General Counsel 

Or such other address that may be designated by the Company from time to time, 

 

	(iii)	If to IFMI, to: 

 IFMI, LLC 

2929 Arch Street, 17th Floor 
 Philadelphia, PA
19104 
 Attention: General Counsel 

  
 16 

 Or such other address that may be designated by the Company from time to time, 

 

	(iv)	If to the Executive, to: 

 John Costas

 53 Lower Cross Road 
 Greenwich, CT
06831 
 Any such person may by notice given in accordance with this Section 7.4 to the other parties hereto designate another address or
person for receipt by such person of notices hereunder. 
 7.5 Communications with the Press. Subject to
Section 4.12 of the LP Agreement (as defined herein), the Executive shall have the right to handle communications with the press regarding the Company; provided that such communications are truthful, accurate and consistent and protect the
Company’s proprietary or confidential information and honor the Company’s contractual obligations prohibiting disclosure of certain information; provided further that the Executive may not criticize, ridicule or make any statement that
disparages or is derogatory of the Company or any of its affiliates. 
 7.6 Entire Agreement. This Agreement contains the
entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto. 
 7.7 Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the parties or, in
the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power
or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. 

7.8 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
 7.9 Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs (in the case of the Executive) and assigns. No rights or
obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing
entity, or the sale or liquidation of all or substantially all of the assets of the Company; provided, however , that the assignee or transferee is the successor to all or substantially all of the assets of the Company and such assignee or
transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law. 

  
 17 

 7.10 Withholding. The Parent shall be entitled to withhold from any payments or
deemed payments made by Parent any amount of tax withholding it determines to be required by law. 
 7.11 Binding Effect.
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors, permitted assigns, heirs, executors and legal representatives. 
 7.12 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts
together shall constitute one and the same instrument. Each counterpart may consist of two copies hereof each signed by one of the parties hereto. 
 7.13 Survival. Anything contained in this Agreement to the contrary notwithstanding, the provisions of Sections 4, 5 and 6 and any other provisions of this Agreement expressly imposing obligations
that survive termination of Executive’s services arrangement hereunder, and the other provisions of this Section 7 to the extent necessary to effectuate the survival of such provisions, shall survive termination of this Agreement and any
termination of the Executive’s services arrangement hereunder. 
 7.14 Existing Agreements. The Executive represents
to the Company that he is not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding which might prohibit him from executing this Agreement or limit his ability to fulfill
his responsibilities hereunder. 
 7.15 Section 409A. 

(a) Interpretation. Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of
section 409A of the Code, to the extent applicable, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code. Accordingly, all provisions herein, or incorporated by reference, shall be construed and
interpreted to comply with section 409A. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the
earliest time thereafter when such sanctions will not be imposed. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment. In no event may the Executive, directly or indirectly,
designate the calendar year of payment. 
 (b) Payment Delay. Notwithstanding any provision to the contrary in this
Agreement, if on the date of the termination of Executive’s services arrangement hereunder, the Executive is a “specified employee” (as such term is defined in section 409A(a)(2)(B)(i) of the Code and its corresponding regulations) as
determined by the Board (or its delegate) in its sole discretion in accordance with its “specified employee” determination policy, then all cash severance payments payable to the Executive under this Agreement that are deemed as deferred
compensation subject to the requirements of section 409A of the Code shall be postponed for a period of six months following the Executive’s “separation from service” with the Company (or any successor thereto). The postponed amounts
shall be paid to the Executive in a lump sum 

  
 18 

 
within 30 days after the date that is 6 months following the Executive’s “separation from service” with the Company (or any successor thereto). If the Executive dies during such
six-month period and prior to payment of the postponed cash amounts hereunder, the amounts delayed on account of section 409A of the Code shall be paid to the personal representative of the Executive’s estate within 60 days after
Executive’s death. If any of the cash payments payable pursuant to this Agreement are delayed due to the requirements of section 409A of the Code, there shall be added to such payments interest during the deferral period at an annualized rate
of interest equal to 5%. 
 (c) Reimbursements. All reimbursements provided under this Agreement shall be made or
provided in accordance with the requirements of section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses actually incurred during the Executive’s lifetime (or during a short period of time
specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of all eligible expense
will be made on or before the last day of the taxable year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to the liquidation or exchange for another benefit. Any tax gross up payments to
be made hereunder shall be made not later than the end of the Executive’s taxable year next following the Executive’s taxable year in which the related taxes are remitted to the taxing authority. 

7.16 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 7.17 Supplementary Agreement. For purposes of the Fourth Amended and Restated Limited Liability Company Agreement of
PrinceRidge Partners LLC (the “LLC Agreement”) and the Fourth Amended and Restated Limited Partnership Agreement of the Company (the “LP Agreement”), this Agreement shall be treated as a Supplementary Agreement (as defined
thereunder). 
 7.18 LP/LLC Agreements. For the avoidance of doubt, the amounts due to Executive hereunder shall not be
subject to reduction based on amounts to which Parent or other partners or members of PrinceRidge Holdings LP or PrinceRidge Partners LLC are entitled pursuant to the LP Agreement or the LLC Agreement or any other agreement by, among or including
the parties hereto. 
 [Signature page follows] 

  
 19 

 IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written. 
  

			
	PRINCERIDGE HOLDINGS LP
	By:	 	 /s/ Daniel G. Cohen

	Name:	 	Daniel G. Cohen
	Title:	 	Vice Chairman

  

			
	INSTITUTIONAL FINANCIAL MARKETS, INC.
	By:	 	 /s/ Daniel G. Cohen

	Name:	 	Daniel G. Cohen
	Title:	 	Chief Executive Officer and Chief Investment Officer

  

			
	IFMI, LLC (only with respect to Section 3.5(a))
	By:	 	 /s/ Daniel G. Cohen

	Name:	 	Daniel G. Cohen
	Title:	 	Chief Executive Officer and Chief Investment Officer

 PRINCERIDGE PARTNERS LLC (only with respect to Sections 5.6 and 5.7) 

			
	By:	 	 /s/ Daniel G. Cohen

	Name:	 	Daniel G. Cohen
	Title:	 	Vice Chairman

  

			
	EXECUTIVE
	Signed:	 	 /s/ John P. Costas

	Name:	 	John P. Costas

 [Signature Page to John Costas Executive Agreement]Exhibit 10.1

 Exhibit 10.1 
 PURCHASE AND SALE AGREEMENT 
 BY AND BETWEEN 

STARWOOD CHICAGO CITY CENTER REALTY LLC, 
 a Delaware limited liability company 
 AS SELLER 

AND 
 CHSP
CHICAGO LLC, 
 a Delaware limited liability company 
 AS PURCHASER 
 DATED AS OF MAY 4, 2011 

FOR THE 
 W
CHICAGO CITY CENTER 
 172 WEST ADAMS STREET, CHICAGO, ILLINOIS 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS
	  	 	1	  
	 1.1
	  	 Definitions
	  	 	1	  
		
	 ARTICLE II THE PROPERTY AND LIABILITIES
	  	 	11	  
	 2.1
	  	 Description of the Property
	  	 	11	  
	 2.2
	  	 Excluded Property
	  	 	13	  
	 2.3
	  	 Assumed Liabilities
	  	 	14	  
	 2.4
	  	 Retained Liabilities
	  	 	15	  
		
	 ARTICLE III PURCHASE PRICE
	  	 	15	  
	 3.1
	  	 Purchase Price
	  	 	15	  
	 3.2
	  	 Earnest Money
	  	 	15	  
	 3.3
	  	 Payment of Purchase Price
	  	 	16	  
		
	 ARTICLE IV CONTINGENCIES
	  	 	16	  
	 4.1
	  	 Due Diligence
	  	 	16	  
	 4.2
	  	 Board Approval
	  	 	18	  
		
	 ARTICLE V TITLE TO THE PROPERTY
	  	 	19	  
	 5.1
	  	 Title Commitment
	  	 	19	  
	 5.2
	  	 Survey
	  	 	19	  
	 5.3
	  	 Exceptions to Title
	  	 	19	  
	 5.4
	  	 Title Policy
	  	 	21	  
	 5.5
	  	 Conveyance of the Property
	  	 	21	  
	 5.6
	  	 Liability under Deed
	  	 	21	  
		
	 ARTICLE VI CONDITION OF THE PROPERTY
	  	 	21	  
	 6.1
	  	 PROPERTY SOLD “AS IS”
	  	 	21	  
	 6.2
	  	 LIMITATION ON REPRESENTATIONS AND WARRANTIES
	  	 	22	  
	 6.3
	  	 RELIANCE ON DUE DILIGENCE
	  	 	22	  
	 6.4
	  	 RELEASE OF SELLER FOR VIOLATIONS OF APPLICABLE LAW
	  	 	23	  
	 6.5
	  	 SURVIVAL
	  	 	23	  
		
	 ARTICLE VII REPRESENTATIONS AND WARRANTIES
	  	 	23	  
	 7.1
	  	 Seller’s Representations and Warranties
	  	 	23	  
	 7.2
	  	 Purchaser’s Representations and Warranties
	  	 	26	  
		
	 ARTICLE VIII COVENANTS
	  	 	28	  
	 8.1
	  	 Confidentiality
	  	 	28	  
	 8.2
	  	 Conduct of the Business
	  	 	29	  
	 8.3
	  	 Licenses and Permits
	  	 	29	  
	 8.4
	  	 Employees
	  	 	30	  
	 8.5
	  	 Bookings
	  	 	30	  
	 8.6
	  	 Tax Contests
	  	 	30	  

  
 i 

							
	 8.7
	  	 Notices and Filings
	  	 	31	  
	 8.8
	  	 Access to Information
	  	 	31	  
	 8.9
	  	 Privacy Laws
	  	 	32	  
	 8.10
	  	 Further Assurances
	  	 	32	  
		
	 ARTICLE IX CLOSING CONDITIONS
	  	 	32	  
	 9.1
	  	 Mutual Closing Conditions
	  	 	32	  
	 9.2
	  	 Purchaser Closing Conditions
	  	 	33	  
	 9.3
	  	 Seller Closing Conditions
	  	 	34	  
	 9.4
	  	 Frustration of Closing Conditions
	  	 	34	  
		
	 ARTICLE X CLOSING
	  	 	34	  
	 10.1
	  	 Closing Date
	  	 	34	  
	 10.2
	  	 Closing Escrow
	  	 	35	  
	 10.3
	  	 Closing Deliveries
	  	 	35	  
	 10.4
	  	 Possession
	  	 	37	  
		
	 ARTICLE XI PRORATIONS AND EXPENSES
	  	 	37	  
	 11.1
	  	 Closing Statement
	  	 	37	  
	 11.2
	  	 Prorations
	  	 	37	  
	 11.3
	  	 Accounts Receivable
	  	 	40	  
	 11.4
	  	 Transaction Costs
	  	 	40	  
		
	 ARTICLE XII TRANSITION PROCEDURES
	  	 	41	  
	 12.1
	  	 Safe Deposit Boxes
	  	 	41	  
	 12.2
	  	 Baggage
	  	 	42	  
	 12.3
	  	 IT Systems
	  	 	42	  
	 12.4
	  	 Removal of Starwood Proprietary Property
	  	 	42	  
	 12.5
	  	 Notice to Employees
	  	 	42	  
	 12.6
	  	 Notice to Guests
	  	 	43	  
		
	 ARTICLE XIII DEFAULT AND REMEDIES
	  	 	43	  
	 13.1
	  	 Seller’s Default
	  	 	43	  
	 13.2
	  	 Seller’s Right to Cure
	  	 	43	  
	 13.3
	  	 Purchaser’s Default
	  	 	43	  
	 13.4
	  	 LIQUIDATED DAMAGES
	  	 	44	  
		
	 ARTICLE XIV RISK OF LOSS
	  	 	44	  
	 14.1
	  	 Casualty
	  	 	44	  
	 14.2
	  	 Condemnation
	  	 	45	  
		
	 ARTICLE XV SURVIVAL, INDEMNIFICATION AND RELEASE
	  	 	45	  
	 15.1
	  	 Survival
	  	 	45	  
	 15.2
	  	 Indemnification by Seller
	  	 	46	  
	 15.3
	  	 Indemnification by Purchaser
	  	 	46	  
	 15.4
	  	 Limitations on Indemnification Obligations
	  	 	46	  
	 15.5
	  	 Indemnification Procedure
	  	 	48	  

  
 ii 

							
	 15.6
	  	 Exclusive Remedy for Indemnification Loss
	  	 	48	  
		
	 ARTICLE XVI MISCELLANEOUS PROVISIONS
	  	 	49	  
	 16.1
	  	 Notices
	  	 	49	  
	 16.2
	  	 No Recordation
	  	 	51	  
	 16.3
	  	 Time is of the Essence
	  	 	51	  
	 16.4
	  	 Assignment
	  	 	51	  
	 16.5
	  	 Successors and Assigns
	  	 	51	  
	 16.6
	  	 Third Party Beneficiaries
	  	 	51	  
	 16.7
	  	 GOVERNING LAW
	  	 	51	  
	 16.8
	  	 Rules of Construction
	  	 	52	  
	 16.9
	  	 Severability
	  	 	52	  
	 16.10
	  	 JURISDICTION AND VENUE
	  	 	52	  
	 16.11
	  	 WAIVER OF TRIAL BY JURY
	  	 	53	  
	 16.12
	  	 Prevailing Party
	  	 	53	  
	 16.13
	  	 Incorporation of Recitals, Exhibits and Schedules
	  	 	53	  
	 16.14
	  	 Updates of Schedules
	  	 	53	  
	 16.15
	  	 Entire Agreement
	  	 	53	  
	 16.16
	  	 Amendments, Waivers and Termination of Agreement
	  	 	53	  
	 16.17
	  	 Not an Offer
	  	 	54	  
	 16.18
	  	 Execution of Agreement
	  	 	54	  
	 16.19
	  	 Right to Audit
	  	 	54	  

  
 iii

 LIST OF EXHIBITS 

 

			
	Exhibit A	  	Form of Earnest Money Escrow Agreement
	Exhibit B	  	Form of Seller Closing Certificate
	Exhibit C	  	Form of Deed
	Exhibit D	  	Form of Bill of Sale
	Exhibit E	  	Form of Assignment and Assumption of Leases, Contracts, Licenses and Permits
	Exhibit F	  	Form of Purchaser Closing Certificate

  
 iv 

 LIST OF SCHEDULES 

 

			
	 Schedule 2.1.1
	  	Legal Description of the Land
	 Schedule 2.1.13
	  	Intellectual Property
	 Schedule 2.2.6
	  	Excluded IT Systems
	 Schedule 7.1.3
	  	Consents and Approvals; No Conflicts
	 Schedule 7.1.4
	  	Title to Personal Property
	 Schedule 7.1.6
	  	Compliance with Applicable Law
	 Schedule 7.1.7
	  	Litigation
	 Schedule 7.1.9
	  	Taxes
	 Schedule 7.1.10
	  	Licenses and Permits
	 Schedule 7.1.11
	  	Tenant Leases
	 Schedule 7.1.12
	  	Material Contracts
	 Schedule 7.1.16
	  	Insurance

  
 v 

 EXECUTION VERSION 
 PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE
AGREEMENT (this “Agreement”) is made and entered into as of this 4th day of May, 2011 (the “Effective Date”), by and between STARWOOD CHICAGO CITY CENTER REALTY LLC, a Delaware limited liability company
(“Seller”), and CHSP CHICAGO LLC, a Delaware limited liability company (“Purchaser”). Seller and Purchaser are sometimes referred to herein individually as a “Party”, and collectively as the
“Parties”. 
 WHEREAS, Seller is the owner of the hotel facility located at 172 West Adams Street,
Chicago, Illinois 60603, and commonly known as W Chicago City Center (the “Hotel”), as more specifically described in this Agreement. 
 WHEREAS, Seller desires to sell the Hotel to Purchaser, and Purchaser desires to purchase the Hotel from Seller, on the terms set forth in this Agreement. 

WHEREAS, a Starwood Entity (as defined herein) will manage the Hotel for Purchaser after the Closing (as defined herein) pursuant
to the New Management Agreement (as defined herein) to be entered into at the Closing. 
 NOW, THEREFORE, in
consideration of the mutual covenants set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE I 

DEFINITIONS 
 1.1
Definitions. In addition to the terms defined above in the introduction and recitals to this Agreement, the following terms when used in this Agreement shall have the meanings set forth in this Section 1.1. 

“Accounts Receivable” means all amounts which Seller is entitled to receive from the Business which are not paid as of
the Closing, including, without limitation, charges for the use or occupancy of any guest, conference or banquet rooms or other facilities at the Hotel, any restaurant, bar or banquet services, or any other goods or services provided by or on behalf
of Seller at the Hotel, but expressly excluding all (i) credit card charges, checks and other instruments which have been submitted for payment as of the Closing, and (ii) items of income otherwise prorated pursuant to Section 11.2 or
11.3.1. 
 “Accrued PTO” means the amount of salaries and wages which the Employees are entitled to receive
(including all employment taxes with respect thereto) for any personal time off for holiday or sick days accrued by such Employees as of the time in question (computed at the rate of the salaries and wages earned by such Employees as of the time in
question), but expressly excluding any Accrued Vacation Pay. 
 “Accrued Vacation Pay” means the amount of
salaries and wages which the Employees are entitled to receive (including all employment taxes with respect thereto) for any personal time off for vacation accrued by such Employees as of the time in question (computed at the rate of the salaries
and wages earned by such Employees as of the time in question), but expressly excluding any Accrued PTO. 

 “Accrued Vacation Pay Schedule” has the meaning set forth in
Section 8.4.3. 
 “Affiliate” means, with respect to the Person in question, any other Person that,
directly or indirectly, (i) owns or controls fifty percent (50%) or more of the outstanding voting and/or equity interests of such Person, or (ii) controls, is controlled by or is under common control with, the Person in question. For
the purposes of this definition, the term “control” and its derivations means having the power, directly or indirectly, to direct the management, policies or general conduct of business of the Person in question, whether by the ownership
of voting securities, contract or otherwise. 
 “Aging Receivables” has the meaning set forth in
Section 11.3.2. 
 “Anti-Terrorism Laws” means Executive Order 13224 issued by the President of the United
States, the USA PATRIOT Act, and all other Applicable Law addressing or in any way relating to terrorist acts and acts of war. 

“Applicable Law” means (i) all statutes, laws, common law, rules, regulations, ordinances, codes or other legal
requirements of any Governmental Authority, stock exchange, board of fire underwriters and similar quasi governmental authority, and (ii) any judgment, injunction, order or other similar requirement of any court or other adjudicatory authority,
in effect at the time in question and in each case to the extent the Person or property in question is subject to the same. 

“Assigned Operating Agreements” has the meaning set forth in Section 2.1.10. 

“Assumed Liabilities” has the meaning set forth in Section 2.3. 

“Bookings” has the meaning set forth in Section 2.1.17. 

“Books and Records” has the meaning set forth in Section 2.1.14. 

“Broker” means Eastdil Secured Broker Services, Inc., a Delaware corporation. 

“Business” means the lodging business and all activities related thereto conducted at the Hotel, including, without
limitation, (i) the rental of any guest, conference or banquet rooms or other facilities at the Hotel, (ii) the operation of any restaurant, bar or banquet services, together with all other goods and services provided at the Hotel,
(iii) the rental of any commercial or retail space to tenants at the Hotel, (iv) the maintenance and repair of the Real Property and tangible Personal Property, (v) the employment of the Employees, and (vi) the payment of Taxes.

 “Business Day” means any day other than a Saturday, Sunday or any federal legal holiday. 

“Casualty” has the meaning set forth in Section 14.1. 

  
 2 

 “Closing” has the meaning set forth in Section 10.1. 

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

“Closing Escrow” has the meaning set forth in Section 10.2. 

“Closing Escrow Agreement” has the meaning set forth in Section 10.2. 

“Closing Statement” has the meaning set forth in Section 11.1. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations, rulings and guidance
issued by the Internal Revenue Service. 
 “Compensation” means, with respect to any Employee, all salary and
wages which such Employee is entitled to receive at the time in question, together with all employment taxes with respect thereto, including, without limitation, any withholding and employer contributions required under Applicable Law, including,
without limitation, any health, welfare and other benefits provided to such Employee under any Seller Employee Plans, and employer contributions to, and amounts paid or accrued under, any Seller Employee Plans for the benefit of such Employee, but
expressly excluding (i) SIP Incentive Pay and PMIP Incentive Pay; (ii) Accrued PTO and (iii) Accrued Vacation Pay. 
 “Condemnation” has the meaning set forth in Section 14.2. 

“Confidential Information” has the meaning set forth in Section 8.1.1. 

“Confidentiality Agreement” means that certain Confidentiality and Access Agreement – W City Center between
Starwood and Chesapeake Lodging Trust (an Affiliate of Purchaser) dated December 8, 2010. 

“Contracts” means, collectively, the Equipment Leases and the Assigned Operating Agreements. 

“Cut-Off Time” has the meaning set forth in Section 11.2. 

“Data Room Web Site” has the meaning set forth in Section 4.1.3. 

“Deed” has the meaning set forth in Section 10.3.1(b). 

“Deposit” has the meaning set forth in Section 3.2.1. 

“Due Diligence Contingency” has the meaning set forth in Section 4.1.1. 

“Due Diligence Period” has the meaning set forth in Section 4.1.1. 

“Earnest Money” means, at the time in question, the amounts then deposited with Escrow Agent in respect of the Deposit,
together with all interest and any other amounts earned thereon. 
 “Earnest Money Escrow Agreement” has the
meaning set forth in Section 3.2.1. 

  
 3 

 “Employees” means, at the time in question, all persons employed full time
or part time at the Hotel by any Starwood Entity. 
 “Employer” means the employer of the Employees.

 “Environmental Claims” means all claims for reimbursement, remediation, abatement, removal, clean up,
contribution, personal injury, property damage or damage to natural resources made by any Governmental Authority or other Person arising from or in connection with the (i) presence or actual or potential spill, leak, emission, discharge or
release of any Hazardous Substances over, on, in, under or from the Property, or (ii) violation of any Environmental Laws with respect to the Property. 
 “Environmental Laws” means any Applicable Laws which regulate the manufacture, generation, formulation, processing, use, treatment, handling, storage, disposal, distribution or
transportation, or an actual or potential spill, leak, emission, discharge or release of any Hazardous Substances, pollution, contamination or radiation into any water, soil, sediment, air or other environmental media, including, without limitation,
(i) the Comprehensive Environmental Response, Compensation and Liability Act, (ii) the Resource Conservation and Recovery Act, (iii) the Federal Water Pollution Control Act, (iv) the Toxic Substances Control Act, (v) the
Clean Water Act, (vi) the Clean Air Act, and (vii) the Hazardous Materials Transportation Act, and similar state and local laws, as amended as of the time in question. 

“Environmental Liabilities” means all liabilities and obligations under any Environmental Laws arising from or in
connection with the Property, including, without limitation, any obligations to manage, control, contain, remove, remedy, respond to, clean up or abate any actual or potential spill, leak, emission, discharge or release of any Hazardous Substances,
pollution, contamination or radiation into any water, soil, sediment, air or other environmental media. 
 “Equipment
Leases” has the meaning set forth in Section 2.1.9. 
 “ERISA” means the Employee Retirement
Income Security Act, as amended from time to time, and any regulations, rulings and guidance issued pursuant thereto. 

“Escrow Agent” means Chicago Title Insurance Company, through its offices at 171 North Clark Street, 04CI, Chicago, IL
60601-3294, Attention: Cindy Malone. 
 “Excluded IT Systems” has the meaning set forth in Section 2.2.

 “Excluded Property” has the meaning set forth in Section 2.2. 

“Existing Survey” means that certain ALTA/ACSM Survey prepared by National Survey Service, Inc., last revised on
January 23, 1996, as Project No. N-119860. 
 “F&B” has the meaning set forth in Section 2.1.6.

 “FF&E” has the meaning set forth in Section 2.1.3. 

  
 4 

 “Governmental Authority” means any federal, state or local government or
other political subdivision thereof, including, without limitation, any Person exercising executive, legislative, judicial, regulatory or administrative governmental powers or functions, in each case to the extent the same has jurisdiction over the
Person or property in question. 
 “Guest Ledger” means all charges accrued to the open accounts of any guests
or customers at the Hotel as of the Cut-Off Time for the use or occupancy of any guest, conference or banquet rooms or other facilities at the Hotel, any restaurant, bar or banquet services, or any other goods or services provided by or on behalf of
Seller or Operating Tenant at the Hotel. 
 “Hazardous Substances” means any hazardous or toxic substances,
materials or waste, whether in solid, semisolid, liquid or gaseous form, including, without limitation, asbestos, petroleum or petroleum by products and polychlorinated biphenyls. 

“Hotel Guest Data and Information” means all guest or customer profiles, contact information (e.g., addresses, phone
numbers, facsimile numbers and email addresses), histories, preferences and any other guest or customer information in any database of Starwood or its Affiliates, whether obtained or derived by Starwood, Seller, Operating Tenant or their Affiliates
from: (a) guests or customers of the Hotel or any facility associated with the Hotel; (b) guests or customers of any other hotel or lodging property (including any condominium or interval ownership properties) owned, leased, operated,
licensed or franchised by a Starwood Entity, or any facility associated with such hotels or other properties (including restaurants, golf courses and spas); or (c) any other sources and databases, including Starwood brand websites, Starwood
central reservations database, operational data base (ODS), Starwood Preferred Guest Program, Starwood Vacation Ownership, Starwood Integrated Property System, and the STARS Direct Program. 

“Improvements” has the meaning set forth in Section 2.1.2. 

“Indemnification Claim” has the meaning set forth in Section 15.5.1. 

“Indemnification Deductible” has the meaning set forth in Section 15.4.2. 

“Indemnification Loss” means, with respect to any Indemnitee, any actual (and not contingent) liability, damage, loss,
cost or expense, including, without limitation, reasonable attorneys fees and expenses and court costs, incurred by such Indemnitee as a result of the act, omission or occurrence in question. 

“Indemnitee” has the meaning set forth in Section 15.5.1. 

“Indemnitor” has the meaning set forth in Section 15.5.1. 

“Inspections” has the meaning set forth in Section 4.1.2. 

“Intellectual Property” has the meaning set forth in Section 2.1.13. 

“Inventoried Baggage” has the meaning set forth in Section 12.2. 

  
 5 

 “Inventoried Safe Deposit Boxes” has the meaning set forth in
Section 12.1. 
 “IT Systems” has the meaning set forth in Section 2.1.5. 

“Knowledge” means (i) with respect to Seller, the actual knowledge of Cynthia Potter and Michael Cassidy, without
any duty of inquiry or investigation, and expressly excluding the knowledge of any other shareholder, partner, member, trustee, beneficiary, director, officer, manager, employee, agent or representative of Seller or any of its Affiliates, and
(ii) with respect to Purchaser, (A) the actual knowledge of D. Rick Adams and Graham Wootten, and expressly excluding the knowledge of any other shareholder, partner, member, trustee, beneficiary, director, officer, manager, employee,
agent or representative of Purchaser or any of its Affiliates, (B) any matter disclosed in any exhibits or schedules to this Agreement, (C) any matter disclosed in any Seller Due Diligence Materials or any other documents or materials
provided by any Starwood Entity to Purchaser prior to Closing, and (D) any matter disclosed by the Inspections or in the Purchaser Due Diligence Reports. For the purposes of this definition, the term “actual knowledge” means, with
respect to any person, the conscious awareness of such person at the time in question, and expressly excludes any constructive or implied knowledge of such person. 
 “Land” has the meaning set forth in Section 2.1.1. 

“Letter of Intent” means that certain letter of intent, dated March 4, 2011, as amended by that certain letter
agreement dated April 1, 2011, between Starwood and Chesapeake Lodging Trust (an Affiliate of Purchaser) outlining the general terms of the transaction described in this Agreement. 

“Liability” means any liability, obligation, damage, loss, diminution in value, cost or expense of any kind or nature
whatsoever, whether accrued or unaccrued, actual or contingent, known or unknown, foreseen or unforeseen. 
 “Licenses
and Permits” has the meaning set forth in Section 2.1.12. 
 “Liquor Licenses” means any licenses
and permits required for the sale and service of alcoholic beverages at the Hotel. 
 “Liquor-Related Licenses”
means any licenses and permits which are required by Applicable Law to be connected to, and in the same name as the holder of, any Liquor Licenses for the Hotel, such as hotel and retail food establishment licenses. 

“Manager” means W Hotel Management Inc., a Delaware corporation. 

“Material Casualty” has the meaning set forth in Section 14.1.1. 

“Material Condemnation” has the meaning set forth in Section 14.2.1. 

“Material Contract” means any Contract requiring aggregate annual payments in excess of Eighteen Thousand and 00/100
Dollars ($18,000.00) for any year during the term of such Contract after the Closing. 

  
 6 

 “Multiemployer Plan” has the meaning set forth in Section 3(37) of
ERISA. 
 “Mutual Closing Conditions” has the meaning set forth in Section 9.1.1. 

“National/Regional Operating Agreements” has the meaning set forth in Section 2.2.3. 

“New Management Agreement” means that certain Operating Agreement to be entered into by and between Manager, as
operator, and CHSP TRS Chicago LLC (an Affiliate of Purchaser), as owner, as of the Closing Date, pursuant to which Manager will operate the Hotel after the Closing. 
 “New Survey Defect” has the meaning set forth in Section 5.3.3. 
 “New Title and Survey Election Notice” has the meaning set forth in Section 5.3.3. 
 “New Title and Survey Objection Notice” has the meaning set forth in Section 5.3.3. 
 “New Title and Survey Response Notice” has the meaning set forth in Section 5.3.3. 
 “New Title Exception” has the meaning set forth in Section 5.3.3. 
 “Notice” has the meaning set forth in Section 16.1.1. 

“Operating Agreements” means all maintenance, repair, improvement, service and supply contracts, booking and reservation
agreements, credit card service agreements, and all other agreements for goods or services which are held by or on behalf of Seller or Operating Tenant in connection with the Business, other than the Tenant Leases, Equipment Leases, Union Contracts,
and Licenses and Permits, together with all deposits made or held by or on behalf of Seller or Operating Tenant thereunder. 

“Operating Lease” means that certain lease between Seller, as landlord, and Operating Tenant, as tenant, with respect to
the Hotel. 
 “Operating Tenant” means Starwood, as tenant under the Operating Lease. 

“Ordinary Course of Business” means the ordinary course of business consistent with Seller’s and Operating
Tenant’s past custom and practice for the Business, taking into account the facts and circumstances in existence from time to time. 
 “Permitted Exceptions” has the meaning set forth in Section 5.3.2. 
 “Person” means any natural person, corporation, general or limited partnership, limited liability company, association, joint venture, trust, estate, Governmental Authority or other legal
entity, in each case whether in its own or a representative capacity. 
 “Personal Property” means the Property
other than the Real Property. 

  
 7 

 “PMIP Incentive Pay” means bonus and/or incentive compensation payable to
eligible managers employed at the Hotel as of the Closing Date payable in the 2012 calendar year that is based on the performance of the Hotel in the 2011 calendar year in accordance with Employers’ policies and procedures for calculating and
paying such bonus and/or incentive compensation. 
 “Plans and Specifications” has the meaning set forth in
Section 2.1.15. 
 “Post Due Diligence Disclosure” has the meaning set forth in Section 16.14.

 “Property” has the meaning set forth in Section 2.1. 

“Property Condition Liabilities” has the meaning set forth in Section 2.3. 

“Prorations” has the meaning set forth in Section 11.2. 

“Purchase Price” has the meaning set forth in Section 3.1. 

“Purchaser Closing Condition Failure” has the meaning set forth in Section 13.2. 

“Purchaser Closing Conditions” has the meaning set forth in Section 9.2. 

“Purchaser Closing Deliveries” has the meaning set forth in Section 10.3.2. 

“Purchaser Default” has the meaning set forth in Section 13.3. 

“Purchaser Documents” has the meaning set forth in Section 7.2.2. 

“Purchaser Due Diligence Reports” has the meaning set forth in Section 4.1.4. 

“Purchaser Indemnitees” means Purchaser, CHSP TRS Chicago LLC, Chesapeake Lodging Trust and Chesapeake Lodging, L.P. and
their respective Affiliates, and each of their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, permitted assigns, legal representatives, heirs and devisees of each of the
foregoing. 
 “Purchaser’s Inspectors” has the meaning set forth in Section 4.1.2. 

“Real Property” has the meaning set forth in Section 2.1.2. 

“REIT Letter” means that certain Owner’s Unit Protection Letter to be executed by Purchaser, CHSP TRS Chicago LLC
(an Affiliate of Purchaser) and Starwood, and delivered to and acknowledged by the Unite Here Union, as of the Closing Date, pursuant to which Purchaser, CHSP TRS Chicago LLC and Starwood agree to certain matters involving the Unite Here Union Union
Contract. 
 “Retail Merchandise” has the meaning set forth in Section 2.1.7. 

“Retained Liabilities” has the meaning set forth in Section 2.4. 

“Seller Board Approval” has the meaning set forth in Section 4.2.1. 

  
 8 

 “Seller Board Approval Notice” has the meaning set forth in
Section 4.2.1. 
 “Seller Board Approval Period” has the meaning set forth in Section 4.2.1.

 “Seller Closing Conditions” has the meaning set forth in Section 9.3. 

“Seller Closing Deliveries” has the meaning set forth in Section 10.3.1. 

“Seller Cure Period” has the meaning set forth in Section 13.2. 

“Seller Default” has the meaning set forth in Section 13.1. 

“Seller Documents” has the meaning set forth in Section 7.1.2. 

“Seller Due Diligence Materials” has the meaning set forth in Section 4.1.3(a). 

“Seller Employee Plans” means all plans and programs maintained by or on behalf of Employer for the health, welfare or
benefit of any Employees and/or their respective spouses, dependents or other qualified beneficiaries, including, without limitation, any employee plans maintained pursuant to Section 401(k) of the Code. 

“Seller Indemnitees” means Seller, Starwood, Operating Tenant, Manager, Employer and their respective Affiliates, and
each of their respective shareholders, members, partners, trustees, beneficiaries, directors, officers and employees, and the successors, permitted assigns, legal representatives, heirs and devisees of each of the foregoing. 

“Seller’s Possession” means in the physical possession of any officer or employee of any Starwood Entity who has
primary responsibility for the Business; provided, however, that any reference in this Agreement to Seller’s Possession of any documents or materials expressly excludes the possession of any such documents or materials that (i) are legally
privileged or constitute attorney work product, (ii) are subject to a confidentiality agreement or to Applicable Law prohibiting their disclosure by any Starwood Entity, or (iii) constitute confidential internal assessments, reports,
studies, memoranda, notes or other correspondence prepared by or on behalf of any officer or employee of any Starwood Entity. 

“SIP Incentive Pay” means the quarterly bonus and/or incentive compensation accrued or payable to eligible sales
personnel employed at the Hotel as of the Closing Date based on sales achieved during the applicable quarter in accordance with Employer’s policies and procedures for calculating and paying such bonus and/or incentive compensation.

 “Starwood” means Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation. 

“Starwood Entity” means Starwood, Seller, Operating Tenant or any of their respective Affiliates. 

“Starwood Proprietary Marks” has the meaning set forth in Section 2.2.2. 

“Starwood Proprietary Property” has the meaning set forth in Section 2.2.2. 

  
 9 

 “Supplies” has the meaning set forth in Section 2.1.4. 

“Survey Defects” has the meaning set forth in Section 5.3.1. 

“Survival Period” has the meaning set forth in Section 15.1.1. 

“Taxes” means any federal, state, local or foreign, real property, personal property, sales, use, room, occupancy, ad
valorem or similar taxes, assessments, levies, charges or fees imposed by any Governmental Authority on any Starwood Entity with respect to the Property or the Business, including, without limitation, any interest, penalty or fine with respect
thereto, but expressly excluding any (i) federal, state, local or foreign income, capital gain, gross receipts, capital stock, franchise, profits, estate, gift or generation skipping tax, or (ii) transfer, documentary stamp, recording or
similar tax, levy, charge or fee incurred with respect to the transaction described in this Agreement. 
 “Tenant
Leases” has the meaning set forth in Section 2.1.8. 
 “Third-Party Claim” means, (i) with
respect to any Seller Indemnitee, any claim, demand, lawsuit, arbitration or other legal or administrative action or proceeding against such Seller Indemnitee by any Person which is not Purchaser or an Affiliate of Purchaser, and (ii) with
respect to any Purchaser Indemnitee, any claim, demand, lawsuit, arbitration or other legal or administrative action or proceeding against such Purchaser Indemnitee by any Person which is not Seller or an Affiliate of Seller. 

“Title and Survey Side Letter” has the meaning set forth in Section 5.3.1. 

“Title Commitment” has the meaning set forth in Section 5.1. 

“Title Company” means Chicago Title Insurance Company, through its offices at 171 North Clark Street, 04CI, Chicago, IL
60601-3294, Attention: Cindy Malone. 
 “Title Exceptions” has the meaning set forth in Section 5.3.1.

 “Title Policy” has the meaning set forth in Section 5.4. 

“Trade Payables” has the meaning set forth in Section 11.2.13. 

“Union Contracts” has the meaning set forth in Section 2.1.11. 

“Unite Here Union” has the meaning set forth in Section 2.1.11. 

“Unpermitted Exceptions” has the meaning set forth in Section 5.3.1. 

“Updated Survey” means that certain ALTA/ACSM Survey prepared by National Survey Service, Inc., last revised on
April 12, 2011, as Survey No. N-128530. 
 “Warranties” has the meaning set forth in Section 2.1.16.

  
 10 

 ARTICLE II 
 THE PROPERTY AND LIABILITIES 
 2.1 Description of the Property. Subject to
the terms set forth in this Agreement, at the Closing, Seller shall (and shall cause Operating Tenant to) sell, convey, transfer, assign and deliver to Purchaser, and Purchaser shall purchase and accept from Seller and Operating Tenant, all right,
title and interest of Seller and Operating Tenant, as the case may be, in and to the property and assets set forth in this Section 2.1, but expressly excluding the Excluded Property (collectively, the “Property”): 

2.1.1. Land. The land described in Schedule 2.1.1, together with all appurtenant easements and any other rights and
interests appurtenant thereto (the “Land”); 
 2.1.2. Improvements. All buildings, structures and other
improvements located on or affixed to the Land and all fixtures on the Land which constitute real property under Applicable Law (the “Improvements”; the Land and the Improvements are referred to collectively herein as the
“Real Property”); 
 2.1.3. FF&E. All fixtures (other than those which constitute Improvements),
furniture, furnishings, equipment, machinery, tools, vehicles, appliances, art work and other items of tangible personal property which are located at the Hotel and used exclusively in the Business, or ordered for future use at the Hotel as of the
Closing, other than the Supplies, IT Systems, F&B, Retail Merchandise, Books and Records and Plans and Specifications (the “FF&E”); 
 2.1.4. Supplies. All china, glassware and silverware, linens, uniforms, engineering, maintenance, cleaning and housekeeping supplies, matches and ashtrays, soap and other toiletries, stationery,
menus, directories and other printed materials, and all other similar supplies and materials, which are located at the Hotel or ordered for future use at the Hotel as of the Closing (the “Supplies”); 

2.1.5. IT Systems. All computer hardware, telecommunications and information technology systems located at the Hotel, and all
computer software used at the Hotel (subject to the terms of the applicable license agreement), to the extent the same are transferable or the Parties obtain any consent necessary to effectuate such a transfer, but expressly excluding the Excluded
IT Systems (the “IT Systems”); 
 2.1.6. Food and Beverage. All food and beverages (alcoholic and non
alcoholic) which are located at the Hotel (whether opened or unopened), or ordered for future use at the Hotel as of the Closing, including, without limitation, all food and beverages located in the guest rooms, but expressly excluding any alcoholic
beverages to the extent the sale or transfer of the same is not permitted under Applicable Law (the “F&B”); 
 2.1.7. Retail Merchandise. All merchandise located at the Hotel and held for sale to guests and customers of the Hotel, or ordered for future sale at the Hotel as of the Closing, including, without
limitation, the inventory held for sale in any gift shop, pro shop or newsstand operated by or on behalf of Seller or Operating Tenant at the Hotel, but expressly excluding the F&B (the “Retail Merchandise”); 

  
 11 

 2.1.8. Tenant Leases. All leases, subleases, licenses, concessions and similar
agreements granting to any other Person the right to use or occupy any portion of the Real Property, other than the Bookings, together with all security deposits held by or on behalf of Seller or Operating Tenant thereunder, to the extent the same
and such security deposits are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the “Tenant Leases”); 
 2.1.9. Equipment Leases. All leases and purchase money security agreements for any equipment, machinery, vehicles, furniture or other personal property located at the Hotel which are held by or on
behalf of Seller or Operating Tenant and used exclusively in the Business, together with all deposits made by or on behalf of Seller or Operating Tenant thereunder, to the extent the same and such deposits are transferable or the Parties obtain any
consent necessary to effectuate such a transfer (the “Equipment Leases”); 
 2.1.10. Assigned Operating
Agreements. All Operating Agreements other than the National/Regional Operating Agreements, to the extent the same and the deposits held thereunder are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the
“Assigned Operating Agreements”). Notwithstanding the foregoing, Purchaser acknowledges that (i) certain Operating Agreements are in the name of Western Host, Inc., an Illinois corporation that is an Affiliate of Seller,
(ii) such Operating Agreements will continue to be utilized in the Business at the Hotel after Closing, and Purchaser or its Affiliate shall be responsible for all costs and expenses related thereto, pursuant and subject to the terms of the New
Management Agreement, and (iii) such Operating Agreements shall be deemed assumed by Purchaser at the time that the Liquor Licenses and Liquor-Related Licenses held by Western Host, Inc. are transferred to Purchaser or its Affiliate or new
Liquor Licenses and Liquor Related Licenses are issued to Purchaser or its Affiliate; 
 2.1.11. Union Contracts.
(i) That certain Agreement dated September 1, 2006 (or any replacement thereof entered into after the Effective Date) with the Chicago Joint Executive Board of the Unite Here, Local 1 and Unite Here, Local 450 (the “Unite Here
Union”) and (ii) that certain Collective Bargaining Agreement, dated July 1, 2007, with the International Union of Operating Engineers, of Chicago, Illinois and Vicinity, Local No. 399 (collectively, the “Union
Contracts”); 
 2.1.12. Licenses and Permits. All licenses, permits, consents, authorizations, approvals,
registrations and certificates issued by any Governmental Authority (other than the Liquor Licenses and Liquor-Related Licenses, which are to remain in the name of the holder of such licenses as of the Effective Date pursuant to the terms of the New
Management Agreement) which are held by or on behalf of Seller or Operating Tenant with respect to the Hotel, including, without limitation, the construction, use or occupancy of the Hotel or the Business, together with any deposits made by or on
behalf of Seller or Operating Tenant thereunder, to the extent the same and such deposits are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the “Licenses and Permits”); 

  
 12 

 2.1.13. Intellectual Property. All trademarks, trade names, service marks and other
intellectual property rights set forth in Schedule 2.1.13 (the “Intellectual Property”); 
 2.1.14.
Books and Records. All books and records located at the Hotel which relate exclusively to the Hotel or the Business, but expressly excluding (a) all Hotel Guest Data and Information, and (b) all documents and other materials which
(i) are legally privileged or constitute attorney work product, (ii) are subject to an Applicable Law or a confidentiality agreement prohibiting their disclosure by any Starwood Entity, or (iii) constitute confidential internal
assessments, reports, studies, memoranda, notes or other correspondence prepared by or on behalf of any officer or employee of any Starwood Entity, including, without limitation, all (A) internal financial analyses, appraisals, tax returns,
financial statements, (B) corporate or other entity governance records, (C) Employee personnel files, (D) any work papers, memoranda, analysis, correspondence and similar documents and materials prepared by or for any Starwood Entity
in connection with the transaction described in this Agreement (the “Books and Records”); 
 2.1.15. Plans
and Specifications. All plans and specifications, blue prints, architectural plans, engineering diagrams and similar items located at the Hotel or in Seller’s or Operating Tenant’s possession which relate exclusively to the Hotel, to
the extent the same are transferable (the “Plans and Specifications”); 
 2.1.16. Warranties. All
warranties and guaranties held by Seller or Operating Tenant with respect to any Improvements or Personal Property, to the extent the same are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the
“Warranties”); 
 2.1.17. Bookings. All bookings and reservations for guest, conference and banquet
rooms or other facilities at the Hotel as of the Closing, together with all deposits held by or on behalf of Seller or Operating Tenant with respect thereto (the “Bookings”); and 

2.1.18. Accounts Receivable. All Accounts Receivable (including the Guest Ledger) as set forth in Section 11.3. 

2.2 Excluded Property. Notwithstanding anything to the contrary in Section 2.1, the property, assets, rights and interests set forth
in this Section 2.2 (the “Excluded Property”) shall not be transferred, assigned or conveyed to Purchaser, and shall be excluded from the Property: 
 2.2.1. Cash. Except (i) for deposits expressly included in Section 2.1 and (ii) to the extent that Seller has received a credit for all cash on hand or deposit in any house bank at
the Hotel pursuant to Section 11.2.14, all cash on hand or on deposit in any house bank, operating account or other account or reserve maintained in connection with the Business, together with any and all credit card charges, checks and other
instruments which any Starwood Entity has submitted for payment as of the Closing; 

  
 13 

 2.2.2. Starwood Proprietary Property. All (i) trademarks, trade names, service
marks, symbols, logos and other intellectual property rights held by any Starwood Entity, except as set forth in Schedule 2.1.13 (the “Starwood Proprietary Marks”); (ii) signs and other fixtures and personal property at
the Hotel which bear any of the Starwood Proprietary Marks; (iii) Starwood Entity internal management, operational, employee and similar manuals, handbooks and publications; and (iv) Starwood Entity centralized systems and programs used in
connection with the Business, including, without limitation, the (A) sales and marketing, (B) Starwood Preferred Guest program, and (C) purchasing, systems and programs (collectively, “Starwood Proprietary Property”).
Notwithstanding the foregoing, it is contemplated that after Closing certain of the Starwood Proprietary Property will continue to be utilized in the Business at the Hotel pursuant to and subject to the terms of the New Management Agreement;

 2.2.3. National/Regional Operating Agreements. All Operating Agreements pursuant to which goods, services, licenses or
other items are provided to other hotels which are owned, leased or operated by any Starwood Entity, in addition to the Hotel (the “National/Regional Operating Agreements”). Notwithstanding the foregoing, it is contemplated that
after Closing certain of the National/Regional Operating Agreements will continue to be utilized in the Business at the Hotel pursuant to and subject to the terms of the New Management Agreement; 

2.2.4. Third-Party Property. Any fixtures, personal property or intellectual property owned by (i) the lessor under any
Equipment Leases (subject to Purchaser’s rights under the Equipment Leases following the Closing), (ii) the supplier, vendor, licensor or other party under any Operating Agreements or Licenses and Permits, (iii) the tenant under any
Tenant Leases, (iv) any Employees, or (v) any guests or customers of the Hotel; 
 2.2.5. Hotel Guest Data and
Information. All Hotel Guest Data and Information. Notwithstanding the foregoing, it is contemplated that after Closing certain of the Hotel Guest Data and Information will continue to be utilized in the Business at the Hotel pursuant to and
subject to the terms of the New Management Agreement; 
 2.2.6. Excluded IT Systems. The computer hardware,
telecommunications and information technology systems, and computer software set forth in Schedule 2.2.6 (the “Excluded IT Systems”). Notwithstanding the foregoing, it is contemplated that after Closing certain of the
Excluded IT Systems will continue to be utilized in the Business at the Hotel pursuant to and subject to the terms of the New Management Agreement; and 
 2.2.7. Operating Lease. The Operating Lease, which shall be terminated by Seller and Operating Tenant at Closing at Seller’s sole cost and expense, and Seller shall provide the Title Company
evidence of such termination that is sufficient for the Title Company to remove any recorded documents pertaining to the Operating Lease from the Title Policy. 
 2.3 Assumed Liabilities. At Closing, Purchaser shall assume (i) all Liabilities arising from, relating to or in connection with the Property, the Hotel, or the Business arising or
accruing from and after the Closing Date and (ii) subject to Seller’s express representations and warranties in Section 7.1, all Liabilities with respect to the condition of the Property (regardless of whether such condition existed
prior to or exists after the Closing Date), including, without limitation, the design, construction, engineering, maintenance and repair or environmental condition of the Property, whether arising prior to or after the Closing Date (the
“Property Condition Liabilities”), but expressly excluding the Retained Liabilities (collectively, the “Assumed Liabilities”). The rights and obligations of the Parties under this Section 2.3 shall survive the
Closing. 

  
 14 

 2.4 Retained Liabilities. At Closing, Seller shall retain all Liabilities for (i) any
claim for personal injury to or property damage suffered by a Person (other than any Purchaser Indemnitee) including any such personal injury or property damage resulting from the condition of the Property, which injury or damage occurred prior to
the Closing Date and is based on any event which occurred at the Hotel during the period of Seller’s or Operating Tenant’s ownership of the Property, including, without limitation, the litigation disclosed on Schedule 7.1.7,
(ii) any Liabilities with respect to the Operating Lease, and (iii) all other Liabilities arising from, relating to or in connection with the Property, the Hotel or the Business arising or accruing prior to the Closing Date, other than
(A) the Property Condition Liabilities and (B) Liabilities for which Purchaser has received a credit under Section 11.2 (collectively, the “Retained Liabilities”). The rights and obligations of the Parties under this
Section 2.4 shall survive the Closing. 
 ARTICLE III 

PURCHASE PRICE 
 3.1
Purchase Price. The purchase price for the Property is One Hundred Twenty-Eight Million Eight Hundred Thousand and 00/100 Dollars ($128,800,000.00) (the “Purchase Price”), which shall be adjusted at Closing for the
Prorations pursuant to Section 11.2, the Accounts Receivable pursuant to Section 11.3, and as otherwise expressly provided in this Agreement. 
 3.2 Earnest Money. 
 3.2.1. Deposit of Earnest Money.
Purchaser shall deposit with Escrow Agent the amount of Ten Million and 00/100 Dollars ($10,000,000.00) (the “Deposit”) within two (2) Business Days after the execution and delivery of this Agreement by the Parties. The Deposit
shall be held by Escrow Agent in escrow as earnest money pursuant to the escrow agreement in the form attached hereto as Exhibit A, to be entered into among Seller, Purchaser and Escrow Agent (the “Earnest Money Escrow
Agreement”), and delivered to Escrow Agent concurrently with the Deposit. If the Purchaser terminates this Agreement pursuant to the Due Diligence Contingency in accordance with Section 4.1.1, the Deposit shall be refunded to Purchaser
in accordance with Section 3.2.4. If Purchaser does not terminate this Agreement pursuant to the Due Diligence Contingency, the Deposit shall be non refundable to Purchaser, except as otherwise expressly provided in this Agreement. 

3.2.2. Investment of Earnest Money. The Deposit shall be invested in accordance with the Earnest Money Escrow Agreement upon
Purchaser’s delivery of the Deposit. 
 3.2.3. Disbursement of Earnest Money to Seller. At Closing, Purchaser shall
cause Escrow Agent to disburse the Earnest Money to Seller, and Purchaser shall receive a credit against the Purchase Price in the amount of the Earnest Money disbursed to Seller. If this Agreement is terminated for any reason and Purchaser is not
entitled to a refund of the Earnest Money under an express provision of this Agreement, then Purchaser shall provide written notice to Escrow Agent directing Escrow Agent to disburse the Earnest Money to Seller no later than two (2) Business
Days after such termination. This Section 3.2.3 shall survive the termination of this Agreement. 

  
 15 

 3.2.4. Refund of Earnest Money to Purchaser. If this Agreement is terminated and
Purchaser is entitled to a refund of the Earnest Money (whether pursuant to the Due Diligence Contingency in accordance with Section 4.1.1 or any other express provision of this Agreement), then Seller shall provide written notice to Escrow
Agent directing Escrow Agent to disburse the Earnest Money to Purchaser; provided, however, that Seller shall not be required to provide such notice until the later of: (i) two (2) Business Days after Purchaser’s satisfaction of its
obligations under Sections 4.1.3(b) and 4.1.4, or (ii) if any event has occurred or circumstance exists which would entitle any Seller Indemnitee to indemnification pursuant to Section 4.1.5, then two (2) Business Days after the
resolution of such Indemnification Claim in accordance with Section 15.5, provided, further, that if such Indemnification Claim is resolved in favor of any Seller Indemnitee, then Seller shall have the right to direct Escrow Agent to disburse
to Seller the Earnest Money or any portion thereof which is necessary to satisfy such Indemnification Claim. This Section 3.2.4 shall survive the termination of this Agreement. 
 3.3 Payment of Purchase Price. 
 3.3.1. Payment at Closing.
At Closing, Purchaser shall pay to Seller an amount equal to the Purchase Price (as adjusted pursuant to Section 3.1), less the Earnest Money disbursed to Seller. Purchaser shall cause the wire transfer of funds to be received by Seller
no later than 3:00 p.m. (Eastern Time) on the Closing Date. If Seller receives the wire transfer of funds from Purchaser after 3:00 p.m. (Eastern Time) and is unable to reinvest such funds on the Closing Date, then as a condition to the completion
of the Closing, Purchaser shall pay interest on the amount of such funds from the Closing Date until the next Business Day at the “prime rate” charged by Seller’s bank. 

3.3.2. Method of Payment. All amounts to be paid by Purchaser to Seller pursuant to this Agreement shall be paid by wire transfer
of immediately available U.S. federal funds. 
 ARTICLE IV 

CONTINGENCIES 
 4.1
Due Diligence. 
 4.1.1. Due Diligence Contingency. Purchaser shall have a period from the date of the Letter
of Intent until 5:00 p.m. (Eastern Time) on April 15, 2011 (the “Due Diligence Period”), to perform its due diligence review of the Property and all matters related thereto which Purchaser deems advisable, including, without
limitation, any engineering, environmental, title, survey, financial, operational and legal compliance matters relating to the Property. If Purchaser, in its sole discretion, is not satisfied with the results of its due diligence review of the
Property for any reason, Purchaser shall have the right to terminate this Agreement by providing written notice to Seller prior to the expiration of the Due Diligence Period (the “Due Diligence Contingency”). If Purchaser terminates
this Agreement pursuant to the Due Diligence Contingency in accordance with this Section 4.1.1, then the Earnest Money shall be refunded to 

  
 16 

 
Purchaser in accordance with Section 3.2.4, and the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination. If
Purchaser does not terminate this Agreement pursuant to the Due Diligence Contingency in accordance with this Section 4.1.1, Purchaser shall be deemed to have waived its rights to terminate this Agreement pursuant to the Due Diligence
Contingency. 
 4.1.2. Due Diligence Inspections. Purchaser shall have the right to perform such examinations, tests,
investigations and studies of the Property (the “Inspections”) as Purchaser reasonably deems advisable, in accordance with this Section 4.1.2. Purchaser may conduct the Inspections with its officers, employees, contractors,
consultants, agents or representatives (“Purchaser’s Inspectors”); provided, however, that Purchaser shall cause the Purchaser’s Inspectors to comply with the provisions regarding Confidential Information set forth in
Section 8.1. Seller shall provide reasonable access to the Property for Purchaser’s Inspectors to perform the Inspections; provided, however, that (i) Purchaser shall provide Seller with at least twenty four (24) hours prior
notice of each of the Inspections; (ii) Purchaser’s Inspectors shall be accompanied by an employee, agent or representative of Seller; (iii) the Inspections shall be conducted by Purchaser’s Inspectors on a Business Day between
10:00 a.m. and 5:00 p.m. (local time); (iv) Purchaser’s Inspectors shall not perform any drilling, coring or other invasive testing, without Seller’s prior written consent, which consent may be withheld in Seller’s sole
discretion; (v) Purchaser’s right to perform the Inspections shall be subject to the rights of tenants, guests and customers at the Hotel; and (vi) the Inspections shall not unreasonably interfere with the Business, and
Purchaser’s Inspectors shall comply with Seller’s requests with respect to the Inspections to minimize such interference. 
 4.1.3. Seller’s Due Diligence Materials. 
 (a)
Purchaser acknowledges its receipt of the due diligence materials set forth on the secure web site located at “http:\\dox.eastdilsecured.com” established by Broker (the “Data Room Web Site”). Seller shall provide to
Purchaser promptly upon request by Purchaser, or make available to Purchaser at the Hotel for review and copying by Purchaser, such additional due diligence materials in Seller’s Possession relating to the Property which are reasonably
requested by Purchaser, and Purchaser agrees to acknowledge in writing, upon Seller’s request, the receipt of any due diligence documents or materials delivered to Purchaser. (All documents and materials provided by Seller to Purchaser pursuant
to the Letter of Intent, the Confidentiality Agreement or this Agreement (including, without limitation, any and all documents and materials set forth on the Data Room Web Site), together with any copies or reproductions of such documents or
materials, or any summaries, abstracts, compilations or other analyses made by or for Purchaser based on the information in such documents or materials, are referred to collectively herein as the “Seller Due Diligence Materials”.)

 (b) If this Agreement is terminated, Purchaser promptly shall (1) return all original Seller Due
Diligence Materials provided to Purchaser, and destroy all other Seller Due Diligence Materials, (2) cause all Persons to whom Purchaser has provided any Seller Due Diligence Materials to return any original Seller Due Diligence Materials to
Purchaser, and destroy all other Seller Due Diligence Materials, and (3) certify to Seller that all original Seller Due Diligence Materials have been returned to Seller and all other Seller Due Diligence Materials have been destroyed.

  
 17 

 4.1.4. Purchaser’s Due Diligence Reports. If this Agreement is terminated,
Purchaser shall provide a copy to Seller of all final studies, reports and assessments prepared by any Person for or on behalf of Purchaser (other than any internal studies, reports and assessments or other privileged information prepared by any of
Purchaser’s employees, attorneys or accountants) in connection with the Inspections (the “Purchaser Due Diligence Reports”). If requested by Seller, Purchaser shall use commercially reasonable efforts to obtain an original of
any such Purchaser Due Diligence Reports for Seller, together with a reliance letter in favor of Seller from the Person who prepared such Purchaser Due Diligence Reports; provided, however, that Seller shall pay for any fees, costs or expenses
charged by such Person for such original Purchaser Due Diligence Reports and/or reliance letters. 
 4.1.5. Release and
Indemnification. Purchaser (for itself and all Purchaser Indemnitees) hereby releases the Seller Indemnitees for any Indemnification Loss incurred by any Purchaser Indemnitee arising from or in connection with the Inspections (including, without
limitation, any liens placed on the Property or any other property owned by a Person other than Purchaser (including any Excluded Property) as a result of such Inspections), except to the extent resulting from Seller’s gross negligence or
willful misconduct. Purchaser shall defend, indemnify and hold harmless the Seller Indemnitees in accordance with ARTICLE XV from and against any Indemnification Loss incurred by any Seller Indemnitee arising from or in connection with the
Inspections, except to the extent resulting from Seller’s gross negligence or willful misconduct. At Seller’s request, Purchaser, at its cost and expense, shall repair any damage to the Property or any other property owned by a Person
other than Purchaser (including any Excluded Property) arising from or in connection with the Inspections, and restore the Property or such other third party property (including any Excluded Property) to the same condition as existed prior to such
Inspections, or replace the Property or such third party property with property (including any Excluded Property) of the same quantity and quality. This Section 4.1.5 shall survive the termination of this Agreement. 

4.1.6. Insurance. Prior to commencing any Inspections, Purchaser shall provide to Seller a certificate of insurance, in form and
substance reasonably satisfactory to Seller, evidencing that Purchaser maintains (i) commercial general liability insurance in an amount no less than Five Million and 00/100 Dollars ($5,000,000.00), with an insurance company with a Best’s
rating of no less than A/VIII, insuring Purchaser against its indemnification obligations under Section 4.1.5, and naming Seller and such other Persons designated by Seller as an additional insured thereunder, and (ii) worker’s
compensation insurance in amount, form and substance required under Applicable Law. Purchaser’s maintenance of such insurance policies shall not release or limit Purchaser’s indemnification obligations under Section 4.1.5. 

4.2 Board Approval. 
 4.2.1. Seller’s Board Approval. Purchaser acknowledges and agrees that Seller’s obligations under this Agreement shall be subject to Seller’s obtaining the approval of Seller’s
board of directors or trustees (as the case may be) or a duly authorized executive committee (the “Seller Board Approval”). Seller shall provide written notice to Purchaser promptly upon obtaining the Seller Board Approval (the
“Seller Board Approval Notice”). If Seller does not provide the Seller Board Approval Notice to Purchaser within ten (10) Business Days after the expiration of the Due Diligence Period (the “Seller Board Approval
Period”), Seller shall be 

  
 18 

 
deemed not to have obtained the Seller Board Approval, and Seller and Purchaser each shall have the right to terminate this Agreement after the expiration of the Seller Board Approval Period by
providing written notice to the other Party, in which case the Earnest Money shall be refunded to Purchaser in accordance with Section 3.2.4, and the Parties shall have no further rights or obligations under this Agreement, except those which
expressly survive such termination. Notwithstanding the foregoing, if Seller provides the Seller Board Approval Notice to Purchaser after the expiration of the Seller Board Approval Period and prior to the termination of this Agreement by Purchaser
pursuant to this Section 4.2.1, then this contingency shall be deemed to be satisfied, and neither Seller nor Purchaser thereafter shall have the right to terminate this Agreement pursuant to this Section 4.2.1. 

ARTICLE V 

TITLE TO THE PROPERTY 

5.1 Title Commitment. Purchaser acknowledges its receipt of a commitment for an ALTA owner’s title insurance policy from the Title
Company for the Real Property dated March 2, 2011, as file number 1401 008819779 D2 (the “Title Commitment”), together with a copy of all documents referenced therein obtained from the Title Company. 

5.2 Survey. Purchaser acknowledges its receipt of the Existing Survey and the Updated Survey. 

5.3 Exceptions to Title. 
 5.3.1. Unpermitted Exceptions. If Purchaser objects to any (a) liens, encumbrances or other exceptions to title (the “Title Exceptions”) disclosed in the Title Commitment, or
(b) encroachments by improvements on adjoining properties onto or over the Land, any encroachments of the Improvements onto or over adjoining properties, setback lines or easements (to the extent in violation thereof) or other survey defects
(the “Survey Defects”) disclosed in the Existing Survey or the Updated Survey, Purchaser shall confer with the Title Company and Seller to attempt to agree on which shall constitute “unpermitted exceptions” to title to the
Real Property (the “Unpermitted Exceptions”) prior to the expiration of the Due Diligence Period; provided, however, that (i) the rights and interests of customers and guests at the Hotel to occupy rooms on a transient license
basis, (ii) the rights of tenants under the Tenant Leases, as tenants only, pursuant to the Tenant Leases, and (iii) all liens and encumbrances caused or created by any Purchaser Indemnitee shall in no event constitute Unpermitted
Exceptions. Notwithstanding the foregoing, Seller agrees that the following shall constitute Unpermitted Exceptions: (i) any mortgages, deeds of trust or other security interests for any financing incurred by Seller which is not assumed by
Purchaser under this Agreement, (ii) Taxes which constitute Title Exceptions which would be delinquent if unpaid at Closing; provided, however, that if any such Taxes are payable in installments, such obligation shall apply only to the extent
such installments would be delinquent if unpaid at Closing, and (iii) any other Title Exceptions objected to by Purchaser which may be removed in accordance with its terms by payment of a liquidated amount which in the aggregate do not exceed
Ten Thousand and 00/100 Dollars ($10,000.00). If the Parties agree on which Title Exceptions and Survey Defects shall constitute the Unpermitted Exceptions, the Parties shall enter into a side letter agreement with the Title Company setting forth
which Title Exceptions and Survey Defects shall constitute the 

  
 19 

 
Unpermitted Exceptions (the “Title and Survey Side Letter”). If the Parties cannot agree on which Title Exceptions and Survey Defects shall constitute the Unpermitted Exceptions,
Purchaser’s sole and exclusive remedy shall be to terminate this Agreement pursuant to the Due Diligence Contingency. 

5.3.2. Permitted Exceptions. Except as provided in Section 5.3.3 below, all Title Exceptions and Survey Defects other than
those expressly set forth in the Title and Survey Side Letter or in Section 5.3.1 shall constitute “permitted exceptions” to title to the Real Property (the “Permitted Exceptions”). 

5.3.3. Updated Title Commitment or Survey. If any update of the Title Commitment delivered to Purchaser after the expiration of
the Due Diligence Period discloses any Title Exception which is not disclosed in a Title Commitment provided to Purchaser prior to the expiration of the Due Diligence Period (a “New Title Exception”), or any update of the Existing
Survey or the Updated Survey delivered to Purchaser after the expiration of the Due Diligence Period discloses any Survey Defect which is not disclosed in the Existing Survey or the Updated Survey (a “New Survey Defect”), and
(i) Purchaser otherwise did not have Knowledge of such New Title Exception or New Survey Defect prior to the expiration of the Due Diligence Period, (ii) such New Title Exception or New Survey Defect would have an adverse effect on the
ownership of the Property or operation of the Hotel after the Closing, and (iii) such New Title Exception or New Survey Defect was not caused by Purchaser or any Person on behalf of Purchaser, then Purchaser shall have the right to request
Seller to remove or cure such New Title Exception or New Survey Defect at or prior to Closing by providing written notice to Seller within the earlier of: (A) five (5) Business Days after receiving such update of the Title Commitment or
update of the Updated Survey, or (B) the Closing (the “New Title and Survey Objection Notice”). If Purchaser provides a New Title and Survey Objection Notice to Seller, Seller may elect, by providing written notice (the
“New Title and Survey Election Notice”) to Purchaser within the earlier of five (5) Business Days after Seller’s receipt of such New Title and Survey Objection Notice or the Closing, (1) to accept such New Title
Exception or New Survey Defect as an additional Unpermitted Exception to be removed or cured at or prior to Closing, or (2) not to remove or cure such New Title Exception or New Survey Defect. If Seller does not provide a New Title and Survey
Election Notice to Purchaser within such time period, then Seller shall be deemed to have elected not to remove or cure such New Title Exception or New Survey Defect as an Unpermitted Exception pursuant to clause (2) of the preceding sentence.
If Seller elects or is deemed to have elected not to remove or cure a New Title Exception or New Survey Defect, then Purchaser shall have the right to elect, by providing written notice (the “New Title and Survey Response Notice”)
to Seller within the earlier of ten (10) Business Days after Purchaser’s receipt of the New Title and Survey Election Notice or the Closing to (I) terminate this Agreement, in which case the Earnest Money shall be refunded to
Purchaser in accordance with Section 3.2.4, and the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination, or (II) proceed to Closing pursuant to this Agreement and
accept title to the Real Property subject to such New Title Exception or New Survey Defect which thereafter shall be deemed to constitute a Permitted Exception, without any credit against the Purchase Price for such New Title Exception or New Survey
Defect. If Purchaser does not provide a New Title and Survey Response Notice to Seller within such time period, Purchaser shall be deemed to have elected to proceed to Closing pursuant to clause (II) of the preceding sentence. 

  
 20 

 5.3.4. Removal of Unpermitted Exceptions. Seller shall have no obligation to cure any
Title Exceptions or Survey Defects other than the Unpermitted Exceptions as set forth in the Title and Survey Side Letter or any New Title and Survey Election Notice. Seller may cure any Unpermitted Exception by removing such Unpermitted Exception
from title or causing the Title Company to commit to remove or insure over such Unpermitted Exception in the Title Policy at any time prior to or at Closing. If the Title Company does not agree to remove or insure over any Unpermitted Exception in
the Title Policy, but another nationally recognized title insurance company is willing to issue the Title Policy without such Unpermitted Exception in the Title Policy, then Seller shall have the right to obtain, and Purchaser shall accept, a Title
Policy from such other title insurance company which otherwise shall satisfy the requirements of Section 5.4, in which case the term “Title Company” shall be deemed to refer to such other title insurance company for all purposes in
this Agreement. 
 5.3.5. Extension of Closing Date. If Seller determines that it will be unable to remove or cure any
Unpermitted Exceptions prior to Closing, Seller shall have the right, but not the obligation, to postpone the Closing one time for up to thirty (30) days by providing written notice to Purchaser no later than three (3) Business Days prior
to the then scheduled closing date. 
 5.4 Title Policy. At Closing, Seller shall use commercially reasonable efforts to cause the
Title Company to issue an owner’s title insurance policy to Purchaser (which may be in the form of a mark up of the Title Commitment or the issuance of a pro forma policy issued by the Title Company) in accordance with the Title Commitment,
insuring Purchaser’s title to the Real Property as of the Closing Date, subject to the Permitted Exceptions (the “Title Policy”). 
 5.5 Conveyance of the Property. At Closing, Seller shall convey the Real Property subject to (i) all Permitted Exceptions, and (ii) all Unpermitted Exceptions which are cured by
causing the Title Company to remove or insure over such Unpermitted Exceptions in the Title Policy, but which otherwise are not removed from title. 
 5.6 Liability under Deed. Purchaser agrees that if Purchaser has any right or claim against Seller pursuant to the Deed delivered by Seller to Purchaser, Purchaser shall exhaust all of its
rights and remedies against the Title Company pursuant to the Title Policy prior to bringing any claim or action against Seller in respect of such warranties. This Section 5.6 shall survive the Closing. 

ARTICLE VI 

CONDITION OF THE PROPERTY 

6.1 PROPERTY SOLD “AS IS”. PURCHASER ACKNOWLEDGES AND AGREES THAT (A) THE PURCHASE OF THE PROPERTY SHALL BE ON AN “AS
IS”, “WHERE IS”, “WITH ALL FAULTS” BASIS, SUBJECT TO ORDINARY WEAR AND TEAR FROM THE EFFECTIVE DATE UNTIL CLOSING, AND (B) EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER SELLER NOR ANY OTHER STARWOOD ENTITY
HAS ANY OBLIGATION TO REPAIR ANY DAMAGE TO OR DEFECT IN THE PROPERTY, REPLACE ANY OF THE PROPERTY OR OTHERWISE REMEDY ANY MATTER AFFECTING THE CONDITION OF THE PROPERTY. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 6.1 SHALL OBLIGATE
PURCHASER TO CLOSE THE TRANSACTIONS CONTEMPLATED IN THIS AGREEMENT IF ANY OF THE PURCHASER CLOSING CONDITIONS ARE NOT SATISFIED AT THE CLOSING. 

  
 21 

 6.2 LIMITATION ON REPRESENTATIONS AND WARRANTIES. PURCHASER ACKNOWLEDGES AND AGREES THAT,
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER SELLER, STARWOOD, MANAGER, OPERATING TENANT, EMPLOYER OR ANY OF THEIR AFFILIATES, NOR ANY OF THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, TRUSTEES, BENEFICIARIES, DIRECTORS,
OFFICERS, MANAGERS, EMPLOYEES, ATTORNEYS, ACCOUNTANTS, CONTRACTORS, CONSULTANTS, AGENTS OR REPRESENTATIVES, NOR ANY PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING, HAVE MADE ANY REPRESENTATION, WARRANTY, GUARANTY, PROMISE, PROJECTION OR
PREDICTION WHATSOEVER WITH RESPECT TO THE PROPERTY OR THE BUSINESS, WRITTEN OR ORAL, EXPRESS OR IMPLIED, ARISING BY OPERATION OF LAW OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR
ANY REPRESENTATION OR WARRANTY AS TO (A) THE CONDITION, SAFETY, QUANTITY, QUALITY, USE, OCCUPANCY OR OPERATION OF THE PROPERTY, (B) THE PAST, PRESENT OR FUTURE REVENUES OR EXPENSES WITH RESPECT TO THE PROPERTY OR THE BUSINESS, (C) THE
COMPLIANCE OF THE PROPERTY OR THE BUSINESS WITH ANY ZONING REQUIREMENTS, BUILDING CODES OR OTHER APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, THE AMERICANS WITH DISABILITIES ACT OF 1990, (D) THE ACCURACY OF ANY ENVIRONMENTAL REPORTS OR OTHER
DATA OR INFORMATION SET FORTH IN THE SELLER DUE DILIGENCE MATERIALS PROVIDED TO PURCHASER WHICH WERE PREPARED FOR OR ON BEHALF OF SELLER, OR (E) ANY OTHER MATTER RELATING TO SELLER, THE PROPERTY OR THE BUSINESS. 

6.3 RELIANCE ON DUE DILIGENCE. PURCHASER ACKNOWLEDGES AND AGREES THAT: 

(A) PURCHASER SHALL HAVE HAD THE OPPORTUNITY TO CONDUCT ALL DUE DILIGENCE INSPECTIONS OF THE PROPERTY AND THE BUSINESS AS OF THE
EXPIRATION OF THE DUE DILIGENCE PERIOD, INCLUDING REVIEWING ALL SELLER DUE DILIGENCE MATERIALS AND OBTAINING ALL INFORMATION WHICH IT DEEMS NECESSARY TO MAKE AN INFORMED DECISION AS TO WHETHER IT SHOULD PROCEED WITH THE PURCHASE OF THE PROPERTY AND
THE BUSINESS; 
 (B) PURCHASER SHALL BE DEEMED TO BE SATISFIED WITH THE RESULTS OF ITS DUE DILIGENCE REVIEW OF THE PROPERTY AND
THE BUSINESS UPON THE EXPIRATION OF THE DUE DILIGENCE PERIOD; 
 (C) PURCHASER WILL BE RELYING ONLY ON ITS DUE DILIGENCE
INSPECTIONS OF THE PROPERTY, ITS REVIEW OF THE SELLER DUE DILIGENCE MATERIALS AND THE REPRESENTATIONS, WARRANTIES AND COVENANTS EXPRESSLY MADE BY SELLER OR ANY AFFILIATE THEREOF IN THIS AGREEMENT IN PURCHASING THE PROPERTY; AND 

  
 22 

 (D) PURCHASER WILL NOT BE RELYING ON ANY STATEMENT MADE OR INFORMATION PROVIDED TO PURCHASER
BY SELLER (EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY MADE BY SELLER IN THIS AGREEMENT) OR ANY OTHER STARWOOD ENTITY, OR ANY OF THEIR RESPECTIVE SHAREHOLDERS, MEMBERS, PARTNERS, TRUSTEES, BENEFICIARIES, DIRECTORS, MANAGERS, OFFICERS,
EMPLOYEES, ATTORNEYS, ACCOUNTANTS, CONTRACTORS, CONSULTANTS, AGENTS OR REPRESENTATIVES, OR ANY PERSON PURPORTING TO REPRESENT ANY OF THE FOREGOING. 
 6.4 RELEASE OF SELLER FOR VIOLATIONS OF APPLICABLE LAW. NOTWITHSTANDING ANY INDEMNIFICATION OBLIGATION OF SELLER UNDER THIS AGREEMENT, PURCHASER (FOR ITSELF AND ALL PURCHASER INDEMNITEES)
DOES HEREBY FOREVER RELEASE AND DISCHARGE THE SELLER INDEMNITEES FROM ANY AND ALL VIOLATIONS OF APPLICABLE LAW INCLUDING, WITHOUT LIMITATION VIOLATIONS OF THE AMERICANS WITH DISABILITIES ACT OF 1990 AND ALL ENVIRONMENTAL CLAIMS AND ENVIRONMENTAL
LIABILITIES, WHETHER NOW KNOWN OR UNKNOWN TO PURCHASER; PROVIDED, HOWEVER, THAT SUCH RELEASE AND DISCHARGE SHALL NOT APPLY TO ANY INDEMNIFICATION OBLIGATION OF SELLER TO THE EXTENT RESULTING FROM A BREACH OF SELLER’S REPRESENTATIONS OR
WARRANTIES SET FORTH IN SECTION 7.1.6 OR 7.1.10 OR TO SELLER’S INDEMNIFICATION OBLIGATIONS WITH RESPECT TO THE RETAINED LIABILITIES. PURCHASER COVENANTS AND AGREES NOT TO SUE SELLER AND THE SELLER INDEMNITEES AND RELEASES SELLER AND THE SELLER
INDEMNITEES OF AND FROM AND WAIVES ANY CLAIM OR CAUSE OF ACTION, INCLUDING, WITHOUT LIMITATION, ANY STRICT LIABILITY CLAIM OR CAUSE OF ACTION OR CONTRACTUAL AND/OR STATUTORY ACTIONS FOR CONTRIBUTION OR INDEMNITY, THAT PURCHASER MAY HAVE AGAINST
SELLER OR ANY OF THE SELLER INDEMNITEES UNDER ANY ENVIRONMENTAL LAWS, NOW EXISTING OR HEREAFTER ENACTED OR PROMULGATED, RELATING TO ENVIRONMENTAL CLAIMS, ENVIRONMENTAL LIABILITIES, ENVIRONMENTAL MATTERS OR ENVIRONMENTAL CONDITIONS, IN, ON, UNDER,
ABOUT OR MIGRATING FROM OR ONTO THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE ENVIRONMENTAL LAWS, OR BY VIRTUE OF ANY COMMON LAW RIGHT, NOW EXISTING OR HEREAFTER CREATED, RELATED TO ENVIRONMENTAL CLAIMS, ENVIRONMENTAL LIABILITIES, ENVIRONMENTAL
MATTERS OR ENVIRONMENTAL CONDITIONS IN, ON, UNDER, ABOUT OR MIGRATING FROM OR ONTO THE PROPERTY. 
 6.5 SURVIVAL. THIS ARTICLE VI
SHALL SURVIVE THE CLOSING. 

  
 23 

 ARTICLE VII 
 REPRESENTATIONS AND WARRANTIES 
 7.1 Seller’s Representations and
Warranties. To induce Purchaser to enter into this Agreement and to consummate the transaction described in this Agreement, Seller hereby makes the express representations and warranties in this Section 7.1, upon which Seller
acknowledges and agrees that Purchaser is entitled to rely. 
 7.1.1. Organization and Power. Seller is duly incorporated
or formed (as the case may be), validly existing, in good standing in the jurisdiction of its incorporation or formation, and is qualified to do business in the jurisdiction in which the Property is located, and has all requisite power and authority
to own the Property and conduct the Business as currently owned and conducted. 
 7.1.2. Authority and Binding
Obligation. Subject to the Seller Board Approval, (i) Seller has full power and authority to execute and deliver this Agreement and all other documents to be executed and delivered by Seller pursuant to this Agreement (the “Seller
Documents”), and to perform all obligations of Seller under each of the Seller Documents, (ii) the execution and delivery by the signer on behalf of Seller of each of the Seller Documents, and the performance by Seller of its
obligations under each of the Seller Documents, has been duly and validly authorized by all necessary action by Seller, and (iii) each of the Seller Documents, when executed and delivered, will constitute the legal, valid and binding
obligations of Seller enforceable against Seller in accordance with its terms, except to the extent Purchaser itself is in default thereunder. 
 7.1.3. Consents and Approvals; No Conflicts. Subject to the Seller Board Approval, the approval of the appropriate Governmental Authorities in connection with the transfer of the Licenses and
Permits, and the recordation of any Seller Documents as appropriate, and except as disclosed in Schedule 7.1.3, (i) no filing with, and no permit, authorization, consent or approval of, any Governmental Authority or other Person is
necessary for execution or delivery by Seller of any of the Seller Documents, or the performance by Seller of any of its obligations under any of the Seller Documents or the consummation by Seller of the transaction described in this Agreement,
except to the extent the failure to obtain such permit, authorization, consent or approval would not have a material adverse effect on the Property, the Business, or Seller’s ability to consummate the transaction described in this Agreement,
and (ii) neither the execution and delivery by Seller of any of the Seller Documents, nor the performance by Seller of any of its obligations under any of the Seller Documents, nor the consummation by Seller of the transaction described in this
Agreement, will: (A) violate any provision of Seller’s organizational or governing documents; (B) violate any Applicable Law to which Seller or the Property is subject; (C) result in a violation or breach of, or constitute a
default under any of the Material Contracts, except to the extent such violation, breach or default would not have a material adverse effect on the Property, the Business, or Seller’s ability to consummate the transaction described in this
Agreement, or (D) result in the creation or imposition of any lien or encumbrance on the Property or any portion thereof. 

7.1.4. Title to Personal Property. Except as set forth in Schedule 7.1.4, Seller and Operating Tenant collectively have
good and valid title to all tangible Personal Property, which shall be free and clear of all liens and encumbrances as of the Closing except for the Equipment Leases which shall be subject only to the ownership interest of the lessor thereunder.

 7.1.5. Condemnation. Neither Seller nor Operating Tenant has received any written notice of any pending condemnation
proceeding or other proceeding in eminent domain, and to Seller’s Knowledge, no such condemnation proceeding or eminent domain proceeding is threatened affecting the Property or any portion thereof. 

  
 24 

 7.1.6. Compliance with Applicable Law. Except as set forth in Schedule 7.1.6,
neither Seller nor Operating Tenant has received any written notice of a violation of any Applicable Law with respect to the Property which has not been cured or dismissed. 
 7.1.7. Litigation. Except as set forth in Schedule 7.1.7, neither Seller nor Operating Tenant has (i) been served with any court filing in any litigation with respect to the Property or
the Business in which Seller or Operating Tenant is named a party which has not been resolved, settled or dismissed, or (ii) received written notice of any claim, charge or complaint from any Governmental Authority or other Person pursuant to
any administrative, arbitration or similar adjudicatory proceeding with respect to the Property or the Business which has not been resolved, settled or dismissed. 
 7.1.8. Employees. 
 (a) Union Contracts. Except for
the Union Contracts, neither Seller nor Operating Tenant is a party to any collective bargaining agreement with any labor union with respect to the Employees. Seller has delivered, or caused to be delivered, to Purchaser a true, correct and complete
copy of each of the Union Contracts. 
 (b) Employment Agreements. Except for the Union Contracts, no
Starwood Entity is a party to any written employment or compensation agreements with any of the Employees, other than Employer’s standard offer letters for at-will employment. 

(c) Multiemployer Plans. The sale of the Hotel pursuant to this Agreement does not trigger any withdrawal liability
under any Multiemployer Plans for the benefit of the Employees under the Union Contracts. 
 7.1.9. Taxes. Except as
disclosed in Schedule 7.1.9, (i) all Taxes which would be delinquent if unpaid will be paid in full or prorated at Closing as part of the Prorations pursuant to Section 11.2; provided, however, that if any Taxes are payable in
installments, such representation and warranty shall apply only to such installments which would be delinquent if unpaid at Closing, (ii) Seller has not received any written notice for an audit of any Taxes which has not been resolved or
completed, and (iii) Seller is not currently contesting any Taxes. 
 7.1.10. Licenses and Permits. Seller has made
available to Purchaser a true and complete copy of the Licenses and Permits. Except as set forth in Schedule 7.1.10, Seller has not received any written notice from any Governmental Authority or other Person of (i) any violation,
suspension, revocation or non renewal of any Licenses and Permits with respect to the Property or the Business that has not been cured or dismissed, or (ii) any failure by Seller to obtain any Licenses and Permits required for the Property or
the Business that has not been cured or dismissed. 
 7.1.11. Tenant Leases. Schedule 7.1.11 sets forth a correct
and complete list of the Tenant Leases, and Seller has made available to Purchaser a true and complete copy of the Tenant Leases. Except as set forth in Schedule 7.1.11, (i) neither Seller nor Operating Tenant has given or received any
written notice of any breach or default under any of the Tenant Leases which has not been cured and (ii) to Seller’s Knowledge, the Tenant Leases have not been terminated and remain in effect. 

  
 25 

 7.1.12. Material Contracts. Schedule 7.1.12 sets forth a correct and complete
list of the Material Contracts, and Seller has made available to Purchaser a true and complete copy of the Material Contracts. Except as set forth on Schedule 7.1.12, (i) neither Seller nor Operating Tenant has given or received any
written notice of any breach or default under any of the Material Contracts which has not been cured and (ii) to Seller’s Knowledge, the Material Contracts have not been terminated and remain in effect. 

7.1.13. Management Agreements. Seller is not a party to any management or franchise agreements with respect to the Hotel.

 7.1.14. Finders and Investment Brokers. Except for the Broker, Seller has not dealt with any Person who has acted,
directly or indirectly, as a broker, finder, financial adviser or in such other capacity for or on behalf of Seller in connection with the transaction described by this Agreement in a manner which would entitle such Person to any fee or commission
in connection with this Agreement or the transaction described in this Agreement. 
 7.1.15. Foreign Person. Seller is a
“United States person” (as defined in Section 7701(a)(30)(B) or (C) of the Code) for the purposes of the provisions of Section 1445(a) of the Code. 
 7.1.16. Insurance. Schedule 7.1.16 sets forth a correct and complete list of each insurance policy maintained by Seller with respect to the Property and the Business as of the Effective Date.

 7.1.17. Bankruptcy. Seller has not filed any petition in bankruptcy or other insolvency proceedings or proceedings for
reorganization of Seller or for the appointment of a receiver or trustee for all or any substantial part of the Property, nor has Seller made any assignment for the benefit of its creditors or filed a petition for an arrangement, or entered into an
arrangement with creditors or filed a petition for an arrangement with creditors or otherwise admitted in writing its inability to pay its debt as they become due. 
 Notwithstanding the foregoing, if Purchaser has Knowledge of a breach of any representation or warranty made by Seller in this Agreement prior to (i) the expiration of the Due Diligence Period, and
Purchaser nevertheless elects not to terminate this Agreement pursuant to the Due Diligence Contingency, or (ii) Closing, and Purchaser nevertheless proceeds to close the transaction described in this Agreement, such representation or warranty
by Seller shall be deemed to be qualified or modified to reflect Purchaser’s Knowledge of such breach. 
 7.2 Purchaser’s
Representations and Warranties. To induce Seller to enter into this Agreement and to consummate the transaction described in this Agreement, Purchaser hereby makes the representations and warranties in this Section 7.2, upon which
Purchaser acknowledges and agrees that Seller is entitled to rely. 

  
 26 

 7.2.1. Organization and Power. Purchaser is duly incorporated or formed (as the case
may be), validly existing and in good standing under the laws of the State of Delaware, and has all requisite power and authority to own, lease and operate its properties and to carry on its business as currently being conducted. 

7.2.2. Authority and Binding Obligation. (i) Purchaser has full power and authority to execute and deliver this Agreement and
all other documents to be executed and delivered by Purchaser pursuant to this Agreement (the “Purchaser Documents”), and to perform all obligations of Purchaser arising under each of the Purchaser Documents, (ii) the execution
and delivery by the signer on behalf of Purchaser of each of the Purchaser Documents, and the performance by Purchaser of its obligations under each of the Purchaser Documents, has been duly and validly authorized by all necessary action by
Purchaser, and (iii) each of the Purchaser Documents, when executed and delivered, will constitute the legal, valid and binding obligations of Purchaser enforceable against Purchaser in accordance with its terms, except to the extent Seller
itself is in default thereunder. 
 7.2.3. Consents and Approvals; No Conflicts. Subject to the recordation of the
Purchaser Documents, as appropriate, and the approval of the appropriate Governmental Authorities in connection with the transfer of the Licenses and Permits, (i) no filing with, and no permit, authorization, consent or approval of, any
Governmental Authority or other Person is necessary for the execution or delivery by Purchaser of any of the Purchaser Documents, the performance by Purchaser of any of its obligations under any of the Purchaser Documents, or the consummation by
Purchaser of the transaction described in this Agreement, and (ii) neither the execution and delivery by Purchaser of any of the Purchaser Documents, nor the performance by Purchaser of any of its obligations under any of the Purchaser
Documents, nor the consummation by Purchaser of the transaction described in this Agreement, will: (A) violate any provision of the organizational or governing documents of Purchaser; (B) violate any Applicable Law to which Purchaser is
subject; or (C) result in a violation or breach of or constitute a default under any material contract, agreement or other instrument or obligation to which Purchaser is a party or by which any of Purchaser’s properties are subject.

 7.2.4. Finders and Investment Brokers. Except for Broker, Purchaser has not dealt with any Person who has acted,
directly or indirectly, as a broker, finder, financial adviser or in such other capacity for or on behalf of Purchaser in connection with the transaction described by this Agreement in any manner which would entitle such Person to any fee or
commission in connection with this Agreement or the transaction described in this Agreement. 
 7.2.5. No Violation of
Anti-Terrorism Laws. None of Purchaser’s property or interests is subject to being “blocked” under any Anti-Terrorism Laws, and neither Purchaser nor any Person holding any direct or indirect interest in Purchaser is in violation
of any Anti-Terrorism Laws. 
 Notwithstanding the foregoing, if Seller has Knowledge prior to Closing of a breach of any
representation or warranty made by Purchaser in this Agreement and Seller nevertheless elects to close the transaction described in this Agreement, such representation or warranty by Purchaser shall be deemed to be qualified or modified to reflect
Seller’s Knowledge of such breach. 

  
 27 

 ARTICLE VIII 
 COVENANTS 
 8.1 Confidentiality. 

8.1.1. Disclosure of Confidential Information. Seller and Purchaser shall keep confidential and not make any public announcement
or disclose to any Person the existence or any terms of this Agreement or any information disclosed by the Inspections or in the Seller Due Diligence Materials, the Purchaser Due Diligence Reports or any other documents, materials, data or other
information with respect to the Property or the Business which is not generally known to the public (the “Confidential Information”). Notwithstanding the foregoing, Seller and Purchaser shall be permitted to (i) disclose any
Confidential Information to the extent required under Applicable Law, and (ii) disclose any Confidential Information to any Person on a “need to know” basis, such as their respective shareholders, partners, members, trustees,
beneficiaries, directors, officers, employees, attorneys, consultants, engineers, surveyors, lenders, investors, managers, franchisors and such other Persons whose assistance is required to consummate the transactions described in this Agreement;
provided, however, that Seller or Purchaser (as the case may be) shall (A) advise such Person of the confidential nature of such Confidential Information, and (B) use commercially reasonable efforts to cause such Person to maintain the
confidentiality of such Confidential Information. 
 8.1.2. Public Announcements. Notwithstanding Section 8.1.1, a
Party shall have the right to make a public announcement regarding the transaction described in this Agreement, provided that Seller and Purchaser shall approve the form and substance of any such public announcement, which approval shall not be
unreasonably withheld, conditioned or delayed, except if a Party is required to make a public announcement under Applicable Law, in which case no such approval by the other Party shall be required but such Party shall consult with the other Party
regarding the form and substance of such public announcement. 
 8.1.3. Communication with Governmental Authorities.
Without limiting the generality of the provisions in Section 8.1.1, Purchaser shall not, through its officers, employees, managers, contractors, consultants, agents, representatives or any other Person (including, without limitation,
Purchaser’s Inspectors), directly or indirectly, communicate with any Governmental Authority or any official, employee or representative thereof, involving any matter with respect to the Property or the Business prior to the expiration of the
Due Diligence Period. 
 8.1.4. Communication with Employees. Without limiting the generality of the provisions in
Section 8.1.1, Purchaser shall not, through its officers, employees, managers, contractors, consultants, agents, representatives or any other Person (including, without limitation, Purchaser’s Inspectors), directly or indirectly,
communicate with any Employees or any Person representing any Employees involving any matter with respect to the Property or the Business, the Employees or this Agreement, other than Cynthia Potter, without Seller’s prior written consent, which
consent may be withheld in Seller’s sole discretion, unless such communication is arranged by Seller. 

  
 28 

 8.1.5. Union Notification. Notwithstanding any other provision of this
Section 8.1 to the contrary, Seller shall have the right to notify the unions under the Union Contracts of the transaction contemplated by this Agreement (and a copy of this Agreement) to the extent required by the terms and conditions of the
Union Contracts. 
 8.2 Conduct of the Business. 
 8.2.1. Operation in Ordinary Course of Business. From the expiration of the Due Diligence Period until the Closing or earlier termination of this Agreement, except as otherwise provided in this
Agreement, Seller shall (and shall cause Operating Tenant to) conduct the Business in the Ordinary Course of Business, including, without limitation, (i) maintaining the inventories of FF&E, Supplies, F&B and Retail Merchandise at
levels maintained in the Ordinary Course of Business, (ii) performing maintenance and repairs for the Real Property and tangible Personal Property in the Ordinary Course of Business; and (iii) maintaining insurance coverages consistent
with Starwood’s risk management policies for its owned hotels. 
 8.2.2. Contracts. From the expiration of the Due
Diligence Period until the Closing or earlier termination of this Agreement, Seller shall not (and shall not permit Operating Tenant to), without Purchaser’s prior written consent which shall not be unreasonably withheld, conditioned or
delayed, (i) amend, extend, renew or terminate any existing Tenant Leases, Material Contracts or Licenses and Permits, except in the Ordinary Course of Business, or (ii) enter into any new Tenant Leases or Material Contracts, unless such
new Tenant Leases or Material Contracts are terminable by Purchaser without any termination fee upon not more than thirty (30) days notice. 
 8.3 Licenses and Permits. Purchaser shall be responsible for obtaining the transfer of all Licenses and Permits (to the extent transferable) or the issuance of new licenses and permits,
other than the Liquor Licenses, which shall remain in the name of a Starwood Entity subject to the terms of the New Management Agreement. Purchaser, at its cost and expense, shall submit all necessary applications and other materials to the
appropriate Governmental Authority and take such other actions to effect the transfer of Licenses and Permits or issuance of new licenses and permits as of the Closing, and Seller shall use commercially reasonable efforts (at no cost or expense to
Seller other than any de minimis cost or expense or any cost or expense which Purchaser agrees in writing to reimburse) to cooperate with Purchaser to cause the Licenses and Permits to be transferred or new licenses and permits to be issued to
Purchaser. Notwithstanding anything to the contrary in this Section 8.3, Purchaser shall not communicate, file any application or otherwise commence any procedure or proceeding with any Governmental Authority for the transfer of any Licenses or
Permits or issuance or new licenses and permits, or post any notices at the Hotel or publish any notices required for the transfer of the Licenses or Permits or issuance of new licenses and permits prior to the expiration of the Due Diligence
Period. If this Agreement is terminated and Purchaser has filed an application or otherwise commenced the processing of obtaining new licenses and permits, Purchaser shall withdraw all such applications and cease all other activities with respect to
such new licenses and permits. 

  
 29 

 8.4 Employees. 
 8.4.1. Retention of Employees. Purchaser acknowledges that the Closing shall not result in a termination of any of the Employees, and the terms of employment of such Employees shall be in
accordance with the New Management Agreement, including the maintenance of all existing seniorities and benefits. 
 8.4.2.
Compensation of Employees. The employment of the Employees following Closing shall be on the same terms of employment including, without limitation, salaries and wages, and with such health, welfare and other benefits as provided to such
Employees and their spouses, dependents and other qualified beneficiaries as applicable to Operated Brand Hotels (as defined in the New Management Agreement), and otherwise in accordance with the New Management Agreement. 

8.4.3. Accrued Vacation Pay. Seller shall deliver to Purchaser at Closing a schedule (the “Accrued Vacation Pay
Schedule”) listing the dollar amount of Accrued Vacation Pay for each Employee with a balance of the Accrued Vacation Pay as of the Closing Date. Seller shall fund to Manager, as operator, the balance of Accrued Vacation Pay as of the
Closing Date as set forth in the Accrued Vacation Pay Schedule. Manager, as operator, shall have access to such funds for payment as and when necessary under the New Management Agreement. Purchaser shall not receive a credit at Closing for any
Accrued Vacation Pay. 
 8.4.4. Survival. This Section 8.4 shall survive the Closing. 

8.5 Bookings. Purchaser shall honor all Bookings made prior to the Closing Date for any period on or after the Closing Date, including,
without limitation, any Bookings by any Person in redemption of any benefits accrued under the Starwood Preferred Guest program; provided, however, that Seller shall reimburse Purchaser for any room nights used by any Person in redemption of
benefits under the Starwood Preferred Guest program on or after the Closing Date in accordance with the terms for such reimbursement as provided in the Starwood Preferred Guest program upon submission of the redemption certificate or coupon and the
guest folio to Seller. This Section 8.5 shall survive the Closing. 
 8.6 Tax Contests. 

8.6.1. Taxable Period Terminating Prior to Closing Date. Seller and/or Operating Tenant, as the case may be, shall retain the
right to commence, continue and settle any proceeding to contest any Taxes for any taxable period which terminates prior to the Closing Date, and shall be entitled to any refunds or abatements of Taxes awarded in such proceedings. This
Section 8.6.1 shall survive the Closing. 
 8.6.2. Taxable Period Including the Closing Date. Seller and/or
Operating Tenant, as the case may be, shall have the right to commence, continue and settle any proceeding to contest any Taxes for any taxable period which includes the Closing Date. Notwithstanding the foregoing, if Purchaser desires to contest
any Taxes for such taxable period and Seller (or Operating Tenant) has not commenced any proceeding to contest any such Taxes for such taxable period, Purchaser shall provide written notice requesting that Seller or Operating Tenant, as the case may
be, contest such Taxes. If Seller or Operating Tenant, as the case may be, desires to contest such Taxes, Seller shall provide written notice to Purchaser within ten (10) Business 

  
 30 

 
Days after receipt of Purchaser’s request confirming that Seller or Operating Tenant, as the case may be, will contest such Taxes, in which case Seller or Operating Tenant, as the case may
be, shall proceed to contest such Taxes, and Purchaser shall not have the right to contest such Taxes. If Seller fails to provide such written notice confirming that Seller (or Operating Tenant) will contest such Taxes within such ten
(10) Business Day period, Purchaser shall have the right to contest such Taxes. Any refunds or abatements awarded in such proceedings shall be used first to reimburse the Party contesting such Taxes for the reasonable costs and expenses
incurred by such Party in contesting such Taxes, and the remainder of such refunds or abatements shall be prorated between Seller and Purchaser as of the Cut-Off Time, and the Party receiving such refunds or abatements promptly shall pay such
prorated amount due to the other Party. This Section 8.6.2 shall survive the Closing. 
 8.6.3. Taxable Period
Commencing After Closing Date. Purchaser shall have the right to commence, continue and settle any proceedings to contest Taxes for any taxable period which commences after the Closing Date, and shall be entitled to any refunds or abatements of
Taxes awarded in such proceedings. This Section 8.6.3 shall survive the Closing. 
 8.6.4. Cooperation. Seller and
Purchaser shall use commercially reasonable efforts to cooperate with the Party contesting the Taxes (at no cost or expense to the Party not contesting the Taxes other than any de minimis cost or expense or any cost or expense which the requesting
Party agrees in writing to reimburse) and to execute and deliver any documents and instruments reasonably requested by the Party contesting the Taxes in furtherance of the contest of such Taxes. This Section 8.6.4 shall survive the Closing.

 8.7 Notices and Filings. Seller and Purchaser shall use commercially reasonable efforts to cooperate with each other (at no
cost or expense to the Party whose cooperation is requested, other than any de minimis cost or expense or any cost or expense which the requesting Party agrees in writing to reimburse) to provide written notice to any Person under any Tenant Leases,
Contracts, Licenses and Permits, and to effect any registrations or filings with any Governmental Authority or other Person, regarding the change in ownership of the Property or the Business. This Section 8.7 shall survive the Closing.

 8.8 Access to Information. After the Closing, Purchaser shall provide to the officers, employees, agents and representatives of
any Seller Indemnitees reasonable access to (i) the Books and Records with respect to the Hotel, (ii) the Property, and (iii) the employees at the Hotel, for any purpose deemed reasonably necessary or advisable by Seller, including,
without limitation, to prepare any documents required to be filed by any Starwood Entity under Applicable Law or to investigate, evaluate and defend any claim, charge, audit, litigation or other proceeding made by any Person or insurance company
involving any Starwood Entity; provided, however, that (A) such Seller Indemnitees shall provide reasonable prior notice to Purchaser; (B) Purchaser shall not be required to provide such access during non business hours; (C) Purchaser
shall have the right to accompany the officer, employees, agents or representatives of such Seller Indemnitees in providing access to the Books and Records, the Property or the employees of Purchaser (or Purchaser’s manager) as provided in this
Section 8.8; and (D) Seller shall defend, indemnify and hold harmless the Purchaser Indemnitees in accordance with ARTICLE XV from and against any Indemnification Loss incurred by any Purchaser Indemnitees arising from any examinations,
tests, investigations or studies of the Property conducted by the Seller Indemnitees, its employees, agents or representatives pursuant to this Section 8.8. Purchaser, at its cost and expense, shall retain all Books and Records with respect to
the Hotel for a period of five (5) years after the Closing. This Section 8.8 shall survive the Closing. 

  
 31 

 8.9 Privacy Laws. To the extent Purchaser reviews, is given access to or otherwise obtains any
Hotel Guest Data and Information as part of the purchase of the Property and the Business, Purchaser shall at all times comply in all material respects with all Applicable Law concerning (i) the privacy and use of such Hotel Guest Data and
Information and the sharing of such information and data with third parties (including, without limitation, any restrictions with respect to Purchaser’s or any third party’s ability to use, transfer, store, sell, or share such information
and data), and (ii) the establishment of adequate security measures to protect such Hotel Guest Data and Information. This Section 8.9 shall survive the Closing. 
 8.10 Further Assurances. From the Effective Date until the Closing or earlier termination of this Agreement, Seller and Purchaser shall use commercially reasonable efforts to take, or cause
to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate the transaction described in this Agreement, including, without limitation, (i) obtaining all necessary consents, approvals and
authorizations required to be obtained from any Governmental Authority or other Person under this Agreement or Applicable Law, and (ii) effecting all registrations and filings required under this Agreement or Applicable Law. After the Closing,
Seller and Purchaser shall use commercially reasonable efforts (at no cost or expense to such Party, other than any de minimis cost or expense or any cost or expense which the requesting Party agrees in writing to reimburse) to further effect the
transaction contemplated in this Agreement. The immediately preceding sentence of this Section 8.10 shall survive the Closing. 
 ARTICLE IX 
 CLOSING CONDITIONS 

9.1 Mutual Closing Conditions. 
 9.1.1. Satisfaction of Mutual Closing Conditions. The respective obligations of Seller and Purchaser to close the transaction contemplated in this Agreement are subject to the satisfaction at or
prior to Closing of the following conditions precedent (the “Mutual Closing Conditions”): 
 (a)
Adverse Proceedings. No litigation or other court action shall have been commenced seeking to obtain an injunction or other relief from such court to enjoin the consummation of the transaction described in this Agreement, and no preliminary
or permanent injunction or other order, decree or ruling shall have been issued by a court of competent jurisdiction or by any Governmental Authority, that would make illegal or invalid or otherwise prevent the consummation of the transaction
described in this Agreement. 
 (b) Adverse Law. No Applicable Law shall have been enacted that would make
illegal or invalid or otherwise prevent the consummation of the transaction described in this Agreement. 

  
 32 

 9.1.2. Failure of Mutual Closing Condition. If any of the Mutual Closing Conditions
is not satisfied at Closing, then each Party shall have the right to terminate this Agreement by providing written notice to the other Party, in which case the Earnest Money shall be refunded to Purchaser in accordance with Section 3.2.4, and
the Parties shall have no further rights or obligations under this Agreement, except for those which expressly survive such termination. 

9.2 Purchaser Closing Conditions. 
 9.2.1. Satisfaction of Purchaser Closing Conditions. In addition to the Mutual Closing Conditions, Purchaser’s obligations to close the transactions described in this Agreement are subject to
the satisfaction at or prior to Closing of the following conditions precedent (the “Purchaser Closing Conditions”): 
 (a) Seller’s Deliveries. All of the Seller Closing Deliveries shall have been delivered to Purchaser or deposited with Escrow Agent in the Closing Escrow to be delivered to Purchaser at
Closing. 
 (b) Representations and Warranties. The representations or warranties of Seller in this
Agreement (as qualified by any schedules to this Agreement and any amendments or supplements to such schedules, other than a Post Due Diligence Disclosure) shall be true and correct as of the Closing (or as of such other date to which such
representation or warranty expressly is made), except to the extent any breach of such representations or warranties would not have a material adverse effect on the Purchaser’s ownership of the Property or the conduct of the Business upon
Closing or prevent Seller from consummating the transaction described in this Agreement. 
 (c) Covenants and
Obligations. The covenants and obligations of Seller in this Agreement shall have been performed in all material respects. 
 (d) Title Policy. The Title Company shall have committed to issue the Title Policy pursuant to Section 5.4, subject to the payment by Purchaser of any fees and expenses with respect to the
Title Commitment and Title Policy pursuant to Section 11.4.2(ii). 
 (e) Accrued Vacation Pay. On or
prior to the Closing Date Seller shall have deposited with Manager, as operator, an amount equal to the balance of the Accrued Vacation Pay as of the Closing Date as set forth in the Accrued Vacation Pay Schedule. 

9.2.2. Failure of Purchaser Closing Condition. Except as expressly provided in Section 9.4, if any of the Purchaser Closing
Conditions is not satisfied at Closing, then Purchaser shall have the right (i) subject to Seller’s right to cure under Section 13.2, to terminate this Agreement by providing written notice to Seller, in which case the Earnest Money
shall be refunded to Purchaser in accordance with Section 3.2.4, and the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination, or (ii) to waive any of the Purchaser
Closing Conditions at or prior to Closing. 

  
 33 

 9.3 Seller Closing Conditions. 

9.3.1. Satisfaction of Seller Closing Conditions. In addition to the Mutual Closing Conditions, Seller’s obligations to close
the transactions contemplated in this Agreement are subject to the satisfaction at or prior to Closing of the following conditions precedent (the “Seller Closing Conditions”): 

(a) Seller Board Approval. Seller shall have obtained the Seller Board Approval. 

(b) Receipt of the Purchase Price. Purchaser shall have (A) paid to Seller or deposited with Escrow Agent with
written direction to disburse the same to Seller, the Purchase Price (as adjusted pursuant to Section 3.1), and (B) delivered written direction to Escrow Agent to disburse the Earnest Money to Seller. 

(c) Purchaser’s Deliveries. All of the Purchaser Closing Deliveries shall have been delivered to Seller or
deposited with Escrow Agent in the Closing Escrow to be delivered to Seller at Closing. 
 (d) Representations
and Warranties. The representations and warranties of Purchaser in this Agreement shall be true and correct in all material respects as of the Closing (or as of such other date to which such representation or warranty expressly is made).

 (e) Initial Working Capital. Purchaser shall have deposited the Initial Working Capital (as defined in
the New Management Agreement) into the Operating Account (as defined in the New Management Agreement) on the Closing Date. 
 (f) Covenants and Obligations. The covenants and obligations of Purchaser in this Agreement shall have been performed in all material respects. 

9.3.2. Failure of Seller Closing Condition. Except as expressly provided in Section 9.4, if any of the Seller Closing
Conditions is not satisfied at Closing, then Seller shall have the right to (i) terminate this Agreement by providing written notice to Purchaser, in which case the Earnest Money shall be disbursed to Seller in accordance with
Section 3.2.3, and the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination, or (ii) waive any of the Seller Closing Conditions at or prior to Closing. 

9.4 Frustration of Closing Conditions. Seller and Purchaser may not rely on the failure of the Seller Closing Conditions or Purchaser
Closing Conditions, respectively, if such failure was caused by such Party’s failure to act in good faith or to use its commercially reasonable efforts to cause the Closing to occur. 

ARTICLE X 

CLOSING 
 10.1
Closing Date. The closing of the transaction described in this Agreement (the “Closing”) shall occur on May 10, 2011 (as such date may be postponed pursuant to Section 5.3.5, 13.2, 14.1.1 or 14.2.1), or such
other date as agreed to in writing between Seller and Purchaser (the date on which the Closing occurs is referred to herein as the “Closing Date”). The Closing shall be effected through the Closing Escrow pursuant to the Closing
Escrow Agreement as provided in Section 10.2. 

  
 34 

 10.2 Closing Escrow. The Closing shall take place by means of a so called “New York
style” escrow (the “Closing Escrow”), and, at or prior to the Closing, the Parties shall enter into a closing escrow agreement with the Escrow Agent with respect to the Closing Escrow in form and substance reasonably acceptable
to Seller, Purchaser and the Escrow Agent (the “Closing Escrow Agreement”) pursuant to which (i) the Purchase Price to be paid by Purchaser pursuant to Section 3.3 shall be deposited with Escrow Agent, (ii) all of the
documents required to be delivered by Seller and Purchaser at Closing pursuant to this Agreement shall be deposited with Escrow Agent, and (iii) at Closing, the Purchase Price (as adjusted pursuant to Section 3.1) and the Earnest Money
shall be disbursed to Seller and the documents deposited into the Closing Escrow shall be delivered to Seller and Purchaser (as the case may be) pursuant to the Closing Escrow Agreement. 
 10.3 Closing Deliveries. 
 10.3.1. Seller’s Deliveries.
At or prior to the Closing, Seller shall deliver or cause to be delivered to Purchaser or deposited with Escrow Agent in the Closing Escrow to be delivered to Purchaser at Closing, all of the (i) documents set forth in this Section 10.3.1,
each of which shall have been duly executed by Seller (and Operating Tenant, as applicable) and acknowledged (if required), and (ii) other items set forth in this Section 10.3.1 (the “Seller Closing Deliveries”), as
follows: 
 (a) A closing certificate in the form of Exhibit B, together with all exhibits thereto;

 (b) A special warranty deed (the “Deed”) in the form of Exhibit C, conveying the Real
Property to Purchaser, subject to the Permitted Exceptions; 
 (c) A Bill of Sale in the form of Exhibit
D, transferring the FF&E, Supplies, IT Systems, F&B, Retail Merchandise, Intellectual Property, Books and Records, Plans and Specifications, Warranties, Bookings and Accounts Receivable (other than the Aging Receivables) to Purchaser on
the terms set forth therein; 
 (d) An Assignment and Assumption of Leases, Contracts and Licenses and Permits in
the form of Exhibit E, assigning the Tenant Leases, Contracts and Licenses and Permits to Purchaser on the terms set forth therein; 
 (e) A certificate or registration of title for any owned vehicle or other Personal Property included in the Property which requires such certification or registration, duly executed, conveying such
vehicle or such other Personal Property to Purchaser; 
 (f) The New Management Agreement; 

(g) Such agreements, affidavits or other documents as may be reasonably required by the Title Company from Seller to issue
the Title Policy; 

  
 35 

 (h) Any real estate transfer tax declaration or similar documents required
under Applicable Law in connection with the conveyance of the Real Property; 
 (i) A FIRPTA affidavit in the
form set forth in the regulations under Section 1445 of the Code; 
 (j) To the extent not previously
delivered to Purchaser, all originals (or copies if originals are not available) of the Tenant Leases, Contracts, Licenses and Permits, Books and Records, keys and lock combinations in Seller’s Possession, which shall be located at the Hotel on
the Closing Date and deemed to be delivered to Purchaser upon delivery of possession of the Hotel; provided, however, that Seller shall have the right to (i) redact and reformat any Books and Records which include data or other information
pertaining to any other hotels owned, managed or franchised by Seller, Operating Tenant, Starwood or their Affiliates, and (ii) retain copies of any Books and Records delivered to Purchaser; 

(k) The Accrued Vacation Pay Schedule prepared pursuant to Section 8.4.3; 

(l) The Closing Statement prepared pursuant to Section 11.1; 

(m) Tax clearance certificates or other such evidence that Seller has complied with Chicago Municipal Code
Section 3-4-140, Section 5/902(d) of the Illinois Income Tax Act, and Section 120/5j of the Illinois Retailer’s Occupation Tax Act; provided, however, that if Seller is unable to obtain such tax clearance certificates or other
evidence, Seller shall defend, indemnify and hold harmless the Purchaser Indemnitees in accordance with ARTICLE XV from and against any Indemnification Loss incurred by any Purchaser Indemnitees arising from Seller’s failure to so comply, and
no such delivery of tax clearance certificates or other such evidence shall be required hereunder or otherwise constitute a Seller Closing Delivery or a Purchaser Closing Condition. The Seller’s indemnification obligations set forth in this
Section 10.3.1(m) shall survive the Closing but shall terminate immediately upon Seller’s delivery to Purchaser of a tax clearance certificate or other such evidence; 

(n) The REIT Letter executed by Starwood; and 

(o) Such other documents and instruments as may be reasonably requested by Purchaser in order to consummate the
transaction described in this Agreement. 
 10.3.2. Purchaser’s Deliveries. At the Closing, Purchaser shall deliver
or cause to be delivered to Seller or deposited with Escrow Agent in the Closing Escrow to be delivered to Seller all of the (i) documents set forth in this Section 10.3.2, each of which shall have been duly executed by Purchaser (and CHSP
TRS Chicago LLC, an Affiliate of Purchaser, as applicable) and acknowledged (if required), and (ii) other items set forth in this Section 10.3.2 (the “Purchaser Closing Deliveries”), as follows: 

(a) The Purchase Price (as adjusted pursuant to Section 3.1) to be paid by Purchaser; 

(b) A letter of direction to Escrow Agent directing Escrow Agent to disburse the Earnest Money to Seller; 

  
 36 

 (c) A closing certificate in the form of Exhibit F, together with all
exhibits thereto; 
 (d) Such documents and instruments that are required to be executed and delivered by
Purchaser under the New Management Agreement, including, without limitation, any guarantees and nondisturbance agreements; 
 (e) A counterpart of each of the documents and instruments to be delivered by Seller under Section 10.3.1 which require execution by Purchaser; 

(f) The REIT Letter; and 
 (g) Such other documents and instruments as may be reasonably requested by Seller or the Title Company in order to consummate the transaction described in this Agreement. 

10.4 Possession. Seller shall deliver (and shall cause Operating Tenant to deliver) possession of the Real Property, subject to the
Permitted Exceptions, and the tangible Personal Property to Purchaser upon completion of the Closing. 
 ARTICLE XI

 PRORATIONS AND EXPENSES 
 11.1 Closing Statement. No later than the day prior to Closing, the Parties, through their respective employees, agents or representatives, jointly shall make such examinations, audits and
inventories of the Hotel as may be necessary to make the adjustments and prorations to the Purchase Price as set forth in Sections 11.2 and 11.3 or any other provisions of this Agreement. Based upon such examinations, audits and inventories, the
Parties jointly shall prepare prior to Closing a closing statement (the “Closing Statement”), which shall set forth their best estimate of the amounts of the items to be adjusted and prorated under this Agreement. The Closing
Statement shall be approved and executed by the Parties at Closing, and such adjustments and prorations shall be final with respect to the items set forth in the Closing Statement, except to the extent any such items shall be reprorated after the
Closing as expressly set forth in Section 11.2. 
 11.2 Prorations. The items of revenue and expense set forth in this
Section 11.2 shall be prorated between the Parties (the “Prorations”) as of 11:59 p.m. on the day preceding the Closing Date (the “Cut-Off Time”), or such other time expressly provided in this
Section 11.2, so that the Closing Date is a day of income and expense for Purchaser. 
 11.2.1. Taxes. All real
property, personal property, and similar Taxes shall be prorated as of the Cut-Off Time between Seller and Purchaser. If the amount of any such Taxes is not ascertainable on the Closing Date, the proration for such Taxes shall be based on the most
recent available bill; provided, however, that after the Closing, Seller and Purchaser shall reprorate the Taxes and pay any deficiency in the original proration to the other Party promptly upon receipt of the actual bill for the relevant taxable
period. This Section 11.2.1 shall survive the Closing. 

  
 37 

 11.2.2. Tenant Leases. Any rents and other amounts prepaid, accrued or due and
payable under the Tenant Leases shall be prorated as of the Cut-Off Time between Seller and Purchaser. Purchaser shall receive a credit for all assignable security deposits held by any Starwood Entity under the Tenant Leases which are not
transferred to Purchaser, and Purchaser thereafter shall be obligated to refund or apply such deposits in accordance with the terms of such Tenant Leases. Purchaser shall not receive a credit for any non assignable security deposits held by any
Starwood Entity which Seller shall return to the tenant under such Tenant Lease, and Purchaser shall obtain any replacement security deposit from such tenant. 
 11.2.3. Contracts. Any amounts prepaid, accrued or due and payable under the Contracts (other than for utilities which proration is addressed separately in Section 11.2.5) shall be prorated as
of the Cut-Off Time between Seller and Purchaser, with Seller being credited for amounts prepaid, and Purchaser being credited for amounts accrued and unpaid. Purchaser shall receive a credit for all deposits held by any Starwood Entity under the
Contracts (together with any interest thereon) which are not transferred to Purchaser, and Purchaser thereafter shall be obligated to refund or apply such deposits in accordance with the terms of such Contracts. Seller shall receive a credit for all
deposits made by any Starwood Entity under the Contracts (together with any interest thereon) which are transferred to Purchaser or remain on deposit for the benefit of Purchaser. 

11.2.4. Licenses and Permits. All amounts prepaid, accrued or due and payable under any Licenses and Permits transferred to
Purchaser shall be prorated as of the Cut-Off Time between Seller and Purchaser. Seller shall receive a credit for all deposits made by any Starwood Entity under the Licenses and Permits (together with any interest thereon) which are transferred to
Purchaser or which remain on deposit for the benefit of Purchaser. 
 11.2.5. Utilities. All utility services shall be
prorated as of the Cut-Off Time between Seller and Purchaser. The Parties shall use commercially reasonable efforts to obtain readings for all utilities as of the Cut-Off Time. If readings cannot be obtained as of the Closing Date, the cost of such
utilities shall be prorated between Seller and Purchaser by estimating such cost on the basis of the most recent bill for such service; provided, however, that after the Closing, the Parties shall reprorate the amount for such utilities and pay any
deficiency in the original proration to the other Party promptly upon receipt of the actual bill for the relevant billing period, which obligation shall survive the Closing. Seller shall receive a credit for all fuel stored at the Hotel based on the
amount paid for such fuel. Seller shall receive a credit for all deposits transferred to Purchaser or which remain on deposit for the benefit of Purchaser with respect to such utility contracts. 

11.2.6. Compensation. All Compensation that is earned by the Employees as of the Cut-Off Time for the payroll period that includes
the Closing Date shall be prorated as of the Cut-Off Time between Seller and Purchaser, and Purchaser shall pay all Compensation due to the Employees for such payroll period. 
 11.2.7. Accrued PTO. Purchaser shall receive a credit in an amount equal to one hundred percent (100%) of the Accrued PTO for any Employees; provided, however, Seller and Purchaser shall
reprorate the amount of the credit for Accrued PTO to reflect the actual amount of Accrued PTO paid by Purchaser to the Employees and pay any deficiency in the original proration to the other Party on the first (1st) anniversary of the Closing
Date. This Section 11.2.7 shall survive the Closing 

  
 38 

 11.2.8. Incentive Pay. The PMIP Incentive Pay and SIP Incentive Pay shall be prorated
as of the Cut-Off Time between Seller and Purchaser. For the PMIP Incentive Pay, such proration shall be based upon Seller’s forecasted performance of the Hotel (which forecast shall be based on the operating budget for 2011 that has been
agreed to by Seller and Purchaser), as of the Cut-Off Time, for the entire 2011 calendar year, and Seller and Purchaser shall reprorate the actual PMIP Incentive Pay and pay any deficiency in the original proration to the other Party promptly upon
the payment of the actual PMIP Incentive Pay to the Employees which is scheduled for March 2012. For the SIP Incentive Pay, such proration shall be based upon Seller’s forecasted sales performance of such Employees (which forecast shall be
based on the operating budget for 2011 that has been agreed to by Seller and Purchaser), as of the Cut-Off Time, for the quarter in which the Closing occurs, and Seller and Purchaser shall reprorate the actual SIP Incentive Pay and pay any
deficiency in the original proration to the other Party promptly upon the payment of the actual SIP Incentive Pay to the Employees during the following quarter, which reproration obligations shall survive the Closing. 

11.2.9. Bookings. Purchaser shall receive a credit for all prepaid deposits for Bookings scheduled to occur on or after the
Closing Date, except to the extent such deposits are transferred to Purchaser. 
 11.2.10. Retail Merchandise and
F&B. Seller shall receive a credit for all Retail Merchandise and unopened items of F&B (including, without limitation, all F&B in any “mini bars” in the guest rooms) based on Seller’s cost for such items. 

11.2.11. Restaurants and Bars. Seller shall close out the transactions in the restaurants and bars in the Hotel as of the regular
closing time for such restaurants and bars during the night in which the Cut-Off Time occurs and retain all monies collected as of such closing, and Purchaser shall be entitled to any monies collected from the restaurants and bars thereafter.

 11.2.12. Vending Machines. Seller shall remove all monies from all vending machines, laundry machines, pay telephones
and other coin operated equipment as of the Cut-Off Time and shall retain all monies collected therefrom as of the Cut-Off Time, and Purchaser shall be entitled to any monies collected therefrom after the Cut-Off Time. 

11.2.13. Trade Payables. Except to the extent an adjustment or proration is made under another subsection of this
Section 11.2, (i) Seller shall pay in full prior to the Closing all amounts payable to vendors or other suppliers of goods or services for the Business (the “Trade Payables”) which are due and payable as of the Closing
Date for which goods or services have been delivered to the Hotel prior to Closing, and (ii) Purchaser shall receive a credit for the amount of such Trade Payables which have accrued, but are not yet due and payable as of the Closing Date, and
Purchaser shall pay all such Trade Payables accrued as of the Closing Date when such Trade Payables become due and payable; provided, however, Seller and Purchaser shall reprorate the amount of credit for any Trade Payables and pay any deficiency in
the original proration to the other Party promptly upon receipt of the actual bill for such goods or services. Seller shall receive a credit for all advance payments or deposits made with respect to FF&E, Supplies, F&B and Retail Merchandise
ordered, but not delivered to the Hotel prior to the Closing Date, and Purchaser shall pay the amounts which become due and payable for such FF&E, Supplies, F&B and Retail Merchandise which were ordered prior to Closing. This
Section 11.2.13 shall survive the Closing. 

  
 39 

 11.2.14. Cash. Seller shall receive a credit for all cash on hand or on deposit in
any house bank at the Hotel which shall remain on deposit for the benefit of Purchaser. 
 11.2.15. Other Adjustments and
Prorations. All other items of income and expense as are customarily adjusted or prorated upon the sale and purchase of a hotel property similar to the Property shall be adjusted and prorated between Seller and Purchaser accordingly. 

11.3 Accounts Receivable. 
 11.3.1. Guest Ledger. At Closing, Seller shall receive a credit in an amount equal to: (i) all amounts charged to the Guest Ledger for all room nights up to (but not including) the night
during which the Cut-Off Time occurs, and (ii) one half ( 1/2) of all amounts charged to the Guest Ledger for the room night which includes the Cut-Off Time net of any occupancy or sales tax due with respect thereto (other than any restaurant or bar charges on the
Guest Ledger which shall be prorated in accordance with Section 11.2.11), and Purchaser shall be entitled to retain all deposits made and amounts collected with respect to such Guest Ledger. 

11.3.2. Accounts Receivable (Other than Guest Ledger). At Closing, Seller shall receive a credit for all Accounts Receivable
(other than the Guest Ledger which is addressed in Section 11.3.1) which are unpaid for less than ninety (90) days, and Purchaser shall be entitled to all amounts collected for such Accounts Receivable. Seller shall retain the right to
collect all Accounts Receivable that are unpaid for ninety (90) days or more (the “Aging Receivables”), and Purchaser shall not receive a credit for the Aging Receivables. Purchaser shall cooperate with Seller in collecting the
Aging Receivables, at no cost or expense to Purchaser other than any de minimis cost and expense or any cost or expense which Seller agrees in writing to reimburse. Any amounts received by either Party shall be applied first against the oldest
Accounts Receivable, including any Aging Receivables, outstanding for the Person paying such amounts. If any Aging Receivables are paid to Purchaser after the Closing, Purchaser shall pay to Seller an amount equal to such Aging Receivables within
ten (10) days after Purchaser’s receipt of such Aging Receivables, without any commission or deduction for Purchaser. 
 11.4
Transaction Costs. 
 11.4.1. Seller’s Transaction Costs. In addition to the other
costs and expenses to be paid by Seller set forth elsewhere in this Agreement, Seller shall pay for the following items in connection with this transaction: (i) the fees and expenses of removing or curing any Unpermitted Exceptions as required
under Section 5.3.4; (ii) the commission due to Broker; (iii) one half ( 1/2) of the fees and expenses for the Escrow Agent; (iv) the fees and expenses of its own attorneys, accountants and consultants; and (v) the State of Illinois and Cook County transfer taxes
payable in connection with the conveyance of the Real Property and the portion of the City of Chicago transfer tax required to be paid by sellers of real property in the City of Chicago that is payable in connection with the conveyance of the Real
Property. 

  
 40 

 11.4.2. Purchaser’s Transaction Costs. In addition to the
other costs and expenses to be paid by Purchaser as set forth elsewhere in this Agreement, Purchaser shall pay for the following items in connection with this transaction: (i) the fees and expenses incurred by Purchaser for Purchaser’s
Inspectors or otherwise in connection with the Inspections; (ii) the fees and expenses for the Title Commitment, Title Policy and the Updated Survey; (iii) any fees or expenses payable for the assignment, transfer or conveyance of any
Contracts, Licenses and Permits, IT Systems, Intellectual Property, Plans and Specifications and Warranties, and any fees payable to replace the goods or services provided under the National/Regional Operating Agreements (which are not assigned or
transferred to Purchaser); (iv) any mortgage tax, title insurance fees and expenses for any loan title insurance policies, recording charges or other amounts payable in connection with any financing obtained by Purchaser; (v) one half ( 1/2) of the fees and expenses for the Escrow Agent;
(vi) the fees and expenses of its own attorneys, accountants and consultants; (vii) any transfer, sales or similar tax and recording charges payable in connection with the conveyance of the Personal Property; (viii) the portion of the
City of Chicago transfer tax required to be paid by purchasers of real property in the City of Chicago that is payable in connection with the conveyance of the Real Property; and (ix) any recording charges payable in connection with the
conveyance of the Property. 
 11.4.3. Other Transaction Costs. All other fees, costs and expenses not expressly
addressed in this Section 11.4 or elsewhere in this Agreement shall be allocated between Seller and Purchaser in accordance with applicable local custom for similar transactions. 

ARTICLE XII 

TRANSITION PROCEDURES 

12.1 Safe Deposit Boxes. Prior to the Closing, Seller shall notify all guests or customers who are then using a safe deposit box at the
Hotel advising them of the pending change in management of the Hotel and requesting them to conduct an inventory and verify the contents of such safe deposit box. All inventories by such guests or customers shall be conducted under the joint
supervision of employees, agents or representatives of the Parties. Upon such inventory and verification, Seller shall deliver to Purchaser all keys, receipts and agreements for such safe deposit box (and thereafter such safe deposit box shall be
deemed an “Inventoried Safe Deposit Box”). If this Agreement is terminated after such inventory, Purchaser shall return all keys, receipts and agreements to Seller for such Inventoried Safe Deposit Boxes immediately upon such
termination. Upon Closing, Seller shall deliver to Purchaser all keys in Seller’s Possession for all safe deposit boxes not then in use, and a list of all safe deposit boxes which are then in use, but not yet inventoried by the depositor, with
the name and room number of such depositor. After the Closing, the Parties shall make appropriate arrangements for guests and customers at the Hotel to inventory and verify the contents of the non Inventoried Safe Deposit Boxes, and upon such
inventory and verification, Seller shall deliver to Purchaser all keys, receipt and agreements for such safe deposit box (and such safe deposit box thereafter shall constitute an Inventoried Safe Deposit Box). Purchaser shall be responsible for, and
shall indemnify and hold harmless the Seller Indemnitees in accordance with ARTICLE XV from and against any Indemnification Loss incurred by any Seller Indemnitees with respect to, any theft, loss or damage to the contents of any safe deposit box
from and after the time such safe deposit box is deemed an Inventoried Safe Deposit Box pursuant to this Section 12.1. Seller shall be responsible for, and shall indemnify and hold harmless the Purchaser Indemnitees in accordance with ARTICLE
XV from and against any Indemnification Loss incurred by any Purchaser Indemnitees with respect to, any theft, loss or damage to the contents of any safe deposit box prior to the time such safe deposit box is deemed an Inventoried Safe Deposit Box.

  
 41 

 12.2 Baggage. On the Closing Date, employees, agents or representatives of the Parties jointly
shall make a written inventory of all baggage, boxes and similar items checked in or left in the care of any Starwood Entity at the Hotel, and Seller shall deliver to Purchaser the keys to any secured area which such baggage and other items are
stored (and thereafter such baggage, boxes and other items inventoried shall be deemed the “Inventoried Baggage”). Purchaser shall be responsible for, and shall indemnify and hold harmless the Seller Indemnitees in accordance with
ARTICLE XV from and against any Indemnification Loss incurred by any Seller Indemnitees with respect to any theft, loss or damage to any Inventoried Baggage from and after the time of such inventory, and any other baggage, boxes or similar items
left in the care of Purchaser which was not inventoried by the Parties. Seller shall be responsible for, and shall indemnify and hold harmless the Purchaser Indemnitees in accordance with ARTICLE XV from and against any Indemnification Loss incurred
by any Purchaser Indemnitees with respect to any theft, loss or damage to any Inventoried Baggage prior to the time of such inventory, and any other baggage, boxes or similar items left in the care of any Starwood Entity which was not inventoried by
the Parties. 
 12.3 IT Systems. With respect to the IT Systems other than the Excluded IT Systems, Seller shall provide Purchaser
with a contact name and telephone number of the applicable licensor, vendor or supplier, and Purchaser shall (i) be responsible for obtaining any consents or approvals necessary for the assignment or transfer of such IT Systems from Seller to
Purchaser, or a new license for such IT Systems (as the case may be), and (ii) pay any fees or expenses charged by the licensor, vendor or supplier of such IT Systems in respect of such assignment or transfer or new license (as the case may
be). With respect to the Excluded IT Systems to be removed from the Hotel, no Starwood Entity shall have any obligation to replace such Excluded IT Systems except to the extent such Excluded IT Systems are required to be provided by Manager pursuant
to the New Management Agreement. If Purchaser replaces any of the Excluded IT Systems removed by Seller, Seller shall cooperate with Purchaser in all reasonable respects to transfer all data from such Excluded IT Systems which were removed to the
replacement systems installed by Purchaser, provided, however, that Seller makes no representation, warranty or guarantee whatsoever that the data on such Excluded IT Systems removed by Seller will be transferable or compatible with the replacement
systems installed by Purchaser. 
 12.4 Removal of Starwood Proprietary Property. From and after the Closing, the rights and
obligations of Manager and Purchaser with respect to any Starwood Proprietary Property and any other supplies and other personal property located at the Hotel, or any signs and fixtures identifying the Hotel, that bear any of the Starwood
Proprietary Marks shall be governed by the New Management Agreement. 
 12.5 Notice to Employees. At Closing, the Parties shall
make a joint announcement or communication to the Employees regarding their employment or termination of employment at the Hotel in accordance with Section 8.4 in form and substance reasonably acceptable to the Parties. 

  
 42 

 12.6 Notice to Guests. At Seller’s option, Seller shall send an announcement to all
guests and customers at the Hotel as of the Closing and all Persons who have Bookings as of the Closing informing such Persons of the change in ownership of the Hotel, in form and substance reasonably acceptable to Purchaser. 

ARTICLE XIII 
 DEFAULT AND REMEDIES 
 13.1 Seller’s Default. If, at or any time prior
to Closing, Seller fails to perform its covenants or obligations under this Agreement in any material respect (a “Seller Default”), then Purchaser, as its sole and exclusive remedies, may elect to (a) terminate this Agreement,
in which case the Earnest Money shall be refunded to Purchaser in accordance with Section 3.2.4, and the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination;
(b) proceed to Closing without any reduction in or setoff against the Purchase Price, in which case Purchaser shall be deemed to have waived such Seller Default; or (c) in the case of a Seller Default which is intentional with the purpose
of not consummating the transaction described in this Agreement, obtain a court order for specific performance. 
 13.2 Seller’s
Right to Cure. Notwithstanding anything to the contrary in this Agreement, Purchaser shall not have the right to exercise its remedies under clauses (a) or (c) of Section 13.1 for a Seller Default or Section 9.2.2 for a
failure of a Purchaser Closing Condition (a “Purchaser Closing Condition Failure”), unless Purchaser has provided written notice to Seller specifying in reasonable detail the nature of the Seller Default or Purchaser Closing
Condition Failure (as the case may be), and Seller has not cured such Seller Default or Purchaser Closing Condition Failure (as the case may be) within fifteen (15) Business Days after Seller’s receipt of such notice (the “Seller
Cure Period”), in which case the Closing shall be postponed until the date which is five (5) Business Days after the expiration of the Seller Cure Period. Seller shall have the right (but not the obligation) to cure any Seller Default
or Purchaser Closing Condition Failure by providing an indemnification to the Purchaser Indemnitees in accordance with ARTICLE XV from and against any Indemnification Loss incurred by any Purchaser Indemnitees as a result of the events or
circumstances on which such Seller Default or Purchaser Closing Condition Failure is based, in which case Section 15.2 shall be amended at Closing to provide for such indemnification by Seller, and Purchaser shall proceed to Closing without any
reduction in or setoff against the Purchase Price. 
 13.3 Purchaser’s Default. If (i) Purchaser has not deposited the
Deposit within the time period provided in, and otherwise in accordance with, Section 3.2.1, or (ii) at any time prior to Closing, Purchaser fails to perform any of its other covenants or obligations under this Agreement in any material
respect which breach or default is not caused by a Seller Default (a “Purchaser Default”), then Seller, as its sole and exclusive remedy, may elect to (A) terminate this Agreement by providing written notice to Purchaser, in
which case the Earnest Money shall be disbursed to Seller in accordance with Section 3.2.3, and the Parties shall have no further rights or obligations under this Agreement, except those which expressly survive such termination, or
(B) proceed to Closing pursuant to this Agreement, in which case Seller shall be deemed to have waived such Purchaser Default. 

  
 43 

 13.4 LIQUIDATED DAMAGES. THE PARTIES ACKNOWLEDGE AND AGREE THAT IF THIS AGREEMENT IS
TERMINATED PURSUANT TO SECTION 13.3 HEREOF, THE DAMAGES THAT SELLER WOULD SUSTAIN AS A RESULT OF SUCH TERMINATION WOULD BE IMPRACTICAL AND EXTREMELY DIFFICULT TO ASCERTAIN. ACCORDINGLY, THE PARTIES AGREE THAT SELLER SHALL RETAIN THE EARNEST MONEY AS
FULL AND COMPLETE LIQUIDATED DAMAGES (AND NOT AS A PENALTY) AS SELLER’S SOLE AND EXCLUSIVE REMEDY FOR SUCH TERMINATION; PROVIDED, HOWEVER, THAT IN ADDITION TO THE EARNEST MONEY, SELLER SHALL RETAIN ALL RIGHTS AND REMEDIES UNDER THIS AGREEMENT
WITH RESPECT TO THOSE OBLIGATIONS OF PURCHASER WHICH EXPRESSLY SURVIVE SUCH TERMINATION. 
 ARTICLE XIV 

RISK OF LOSS 
 14.1
Casualty. If, at any time after the Effective Date and prior to Closing or earlier termination of this Agreement, the Property or any portion thereof is damaged or destroyed by fire or any other casualty (a “Casualty”),
Seller shall give written notice of such Casualty to Purchaser promptly after the occurrence of such Casualty. 
 14.1.1.
Material Casualty. If the amount of the repair restoration of the Property required by a Casualty equals or exceeds Twelve Million Eight Hundred Thousand and 00/100 Dollars ($12,800,000.00) (a “Material Casualty”) and such
Material Casualty was not caused by Purchaser or Purchaser’s Inspectors, or their respective employees or agents, then Purchaser shall have the right to elect, by providing written notice to Seller within ten (10) days after
Purchaser’s receipt of Seller’s written notice of such Material Casualty, to (a) terminate this Agreement, in which case the Earnest Money shall be refunded to Purchaser in accordance with Section 3.2.4, and the Parties shall
have no further rights or obligations under this Agreement, except those which expressly survive such termination, or (b) proceed to Closing, without terminating this Agreement, in which case Seller shall (i) provide Purchaser with a
credit against the Purchase Price in an amount equal to the lesser of: (A) the applicable insurance deductible, and (B) and the reasonable estimated costs for the repair or restoration of the Property required by such Material Casualty,
and (ii) transfer and assign to Purchaser all of Seller’s right, title and interest in and to all proceeds from all casualty and lost profits insurance policies maintained by Seller with respect to the Property or the Business, except
those proceeds allocable to lost profits and costs incurred by Seller for the period prior to the Closing. If Purchaser fails to provide written notice of its election to Seller within such time period, then Purchaser shall be deemed to have elected
to proceed to Closing pursuant to clause (b) of the preceding sentence. If the Closing is scheduled to occur within Purchaser’s ten (10) day election period, the Closing Date shall be postponed until the date which is five
(5) Business Days after the expiration of such ten (10) day election period. 
 14.1.2. Non Material Casualty.
In the event of any (i) Casualty which is not a Material Casualty, or (ii) Material Casualty which is caused by Purchaser or Purchaser’s Inspectors, or their respective employees or agents, then Purchaser shall not have the right to
terminate this Agreement, but shall proceed to Closing, in which case Seller shall (A) provide Purchaser with a credit against the Purchase Price (except if such Casualty is caused by 

  
 44 

 
Purchaser or Purchaser’s Inspectors) in an amount equal to the lesser of: (1) the applicable insurance deductible, and (2) the reasonable estimated costs for the repair or
restoration required by such Casualty, and (B) transfer and assign to Purchaser all of Seller’s right, title and interest in and to all proceeds from all casualty and lost profits insurance policies maintained by Seller with respect to the
Hotel, except those proceeds allocable to any lost profits or costs incurred by Seller for the period prior to the Closing. 
 14.2
Condemnation. If, at any time after the Effective Date and prior to Closing or the earlier termination of this Agreement, any Governmental Authority commences any condemnation proceeding or other proceeding in eminent domain with respect
to all or any portion of the Real Property (a “Condemnation”), Seller shall give written notice of such Condemnation to Purchaser promptly after Seller receives notice of such Condemnation. 

14.2.1. Material Condemnation. If the Condemnation would (i) result in the permanent loss of more than ten percent
(10%) of the fair market value of the Land or Improvements, (ii) result in any permanent material reduction or restriction in access to the Land or Improvements, or (iii) have a permanent materially adverse effect on the Business as
conducted prior to such Condemnation (a “Material Condemnation”), then Purchaser shall have the right to elect, by providing written notice to Seller within ten (10) days after Purchaser’s receipt of Seller’s written
notice of such Material Condemnation, to (A) terminate this Agreement, in which case the Earnest Money shall be refunded to Purchaser in accordance with Section 3.2.4, and the Parties shall have no further rights or obligations under this
Agreement, except those which expressly survive such termination, or (B) proceed to Closing, without terminating this Agreement, in which case Seller shall assign to Purchaser all of Seller’s right, title and interest in all proceeds and
awards from such Material Condemnation. If Purchaser fails to provide written notice of its election to Seller within such time period, then Purchaser shall be deemed to have elected to proceed to Closing pursuant to clause (B) of the preceding
sentence. If the Closing is scheduled to occur within Purchaser’s ten (10) day election period, the Closing shall be postponed until the date which is five (5) Business Days after the expiration of such ten (10) day election
period. 
 14.2.2. Non-Material Condemnation. In the event of any Condemnation other than a Material Condemnation,
Purchaser shall not have the right to terminate this Agreement, but shall proceed to Closing, in which case Seller shall assign to Purchaser all of Seller’s right, title and interest in all proceeds and awards from such Condemnation.

 ARTICLE XV 
 SURVIVAL, INDEMNIFICATION AND RELEASE 
 15.1 Survival. Except as expressly
set forth in this Section 15.1, all representations, warranties, covenants, liabilities and obligations shall be deemed (i) if the Closing occurs, to merge in the Deed and not survive the Closing, or (ii) if this Agreement is
terminated, not to survive such termination. 

  
 45 

 15.1.1. Survival of Representations and Warranties. If this Agreement is terminated,
the representations and warranties in Sections 7.1.14, 7.2.4 and 7.2.5 shall survive such termination until the expiration of the applicable statute of limitations. If the Closing occurs, (i) the representations and warranties of Seller in
Sections 7.1.1, 7.1.2, 7.1.3, 7.1.8(c), 7.1.9, 7.1.14 and 7.1.15, and the representations and warranties of Purchaser in Section 7.2 shall survive the Closing until the expiration of the applicable statute of limitations, and (ii) all
other representations and warranties of Seller in Section 7.1 shall survive the Closing for a period commencing on the Closing Date and expiring at 5:00 p.m. (Eastern Time) on the date which is one (1) year after the Closing Date (the
period any representation or warranty survives termination or the Closing as set forth in this Section 15.1.1 is referred to herein as the “Survival Period”). 

15.1.2. Survival of Covenants and Obligations. If this Agreement is terminated, only those covenants and obligations to be
performed by the Parties under this Agreement which expressly survive the termination of this Agreement shall survive such termination. If the Closing occurs, only those covenants and obligations to be performed by the Parties under this Agreement
which expressly survive the Closing shall survive the Closing. 
 15.1.3. Survival of Indemnification. This ARTICLE XV
and all other rights and obligations of defense and indemnification as expressly set forth in this Agreement shall survive the Closing or termination of this Agreement. 
 15.2 Indemnification by Seller. Subject to the limitations set forth in ARTICLE VI, Sections 5.6, 15.1, 15.4, 15.5, 15.6, and any other express provision of in this Agreement, Seller shall
indemnify and hold harmless the Purchaser Indemnitees from and against any Indemnification Loss incurred by any Purchaser Indemnitee to the extent resulting from (i) the breach of any express representations or warranties of Seller in this
Agreement which expressly survives the Closing or termination of this Agreement (as the case may be), (ii) the breach by Seller of any of its covenants or obligations under this Agreement which expressly survives the Closing or termination of
this Agreement (as the case may be), and (iii) any Retained Liabilities. 
 15.3 Indemnification by Purchaser. Subject to the
limitations set forth in Sections 15.1, 15.4, 15.5 and 15.6, Purchaser shall indemnify and hold harmless the Seller Indemnitees from and against any Indemnification Loss incurred by any Seller Indemnitee to the extent resulting from (i) any
breach of any express representations or warranties of Purchaser in this Agreement which expressly survives the Closing or termination of this Agreement (as the case may be), (ii) any breach by Purchaser of any of its covenants or obligations
under this Agreement which expressly survives the Closing or termination of this Agreement (as the case may be), and (iii) any Assumed Liabilities. 
 15.4 Limitations on Indemnification Obligations. 
 15.4.1.
Failure to Provide Notice within Survival Period. Notwithstanding anything else to the contrary in this Agreement, an Indemnitee which is seeking defense or indemnification for a breach of any representations or warranties shall be entitled
to indemnification for such breach only if the Indemnitee has given written notice to the Indemnitor in accordance with Section 15.5.1 prior to the expiration of the applicable Survival Period. 

  
 46 

 15.4.2. Indemnification Deductible and Cap. Notwithstanding anything to the contrary
in this Agreement, neither Seller nor any other Starwood Entity shall be required to provide indemnification to the Purchaser Indemnitees pursuant to clause (i) of Section 15.2 to the extent that the aggregate amount of all Indemnification
Losses incurred by the Purchaser Indemnitees for which Purchaser otherwise would be entitled to indemnification under clause (i) of Section 15.2 (A) does not exceed Eight Hundred Thousand and 00/100 Dollars ($800,000.00) (the
“Indemnification Deductible”), or if such Indemnification Losses exceed the Indemnification Deductible, Purchaser shall not be entitled to defense or indemnification for any amount up to the Indemnification Deductible, or
(B) exceeds Five Million and 00/100 Dollars ($5,000,000.00). 
 15.4.3. Failure to Provide Timely Notice of
Indemnification Claim. Notwithstanding anything to the contrary in this Agreement, an Indemnitee shall not be entitled to defense or indemnification to the extent the Indemnitee’s failure to promptly notify the Indemnitor in accordance with
Section 15.5.1, (i) prejudices the Indemnitor’s ability to defend against any Third-Party Claim on which such Indemnification Claim is based, or (ii) increases the amount of Indemnification Loss incurred in respect of such
indemnification obligation of the Indemnitor. 
 15.4.4. Effect of Taxes, Insurance or Other Reimbursement.
Notwithstanding anything to the contrary in this Agreement, the amount of any Indemnification Loss for which indemnification is provided to an Indemnitee under this ARTICLE XV shall be net of any tax benefits realized or insurance proceeds received
by such Indemnitee in connection with the Indemnification Claim, or any other third party reimbursement. The Indemnitee shall use commercially reasonable efforts to realize any tax benefit, collect any insurance proceeds or obtain any third party
reimbursement with respect to such Indemnification Claim, and if such tax benefits, insurance proceeds or reimbursement are realized or obtained by the Indemnitee after the Indemnitor has paid any amount in respect of an Indemnification Loss to the
Indemnitee, the Indemnitee shall reimburse the amount realized or collected by the Indemnitee up to the amount received from the Indemnitor for such Indemnification Loss. 
 15.4.5. Negligence or Willful Misconduct of Indemnitee. Notwithstanding anything to the contrary in this Agreement, (i) a Purchaser Indemnitee shall not be entitled to defense or
indemnification to the extent the applicable Indemnification Loss results from the negligence or willful misconduct of, or breach of this Agreement by, any Purchaser Indemnitee, and (ii) a Seller Indemnitee shall not be entitled to defense or
indemnification to the extent the applicable Indemnification Loss results from the negligence or willful misconduct of, or breach of this Agreement by, any Seller Indemnitee. 
 15.4.6. WAIVER OF CERTAIN DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT OR UNDER APPLICABLE LAW, SELLER (FOR ITSELF AND ALL SELLER INDEMNITEES) AND PURCHASER (FOR ITSELF AND
ALL PURCHASER INDEMNITEES) HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE AND DISCLAIM ALL RIGHTS TO CLAIM OR SEEK ANY CONSEQUENTIAL, PUNITIVE, EXEMPLARY, STATUTORY OR TREBLE DAMAGES AND ACKNOWLEDGE AND AGREE THAT THE RIGHTS AND REMEDIES IN THIS
AGREEMENT WILL BE ADEQUATE IN ALL CIRCUMSTANCES FOR ANY CLAIMS THE PARTIES (OR ANY INDEMNITEE) MIGHT HAVE WITH RESPECT THERETO. 

  
 47 

 15.5 Indemnification Procedure 

15.5.1. Notice of Indemnification Claim. If any of the Seller Indemnitees or Purchaser Indemnitees (as the case may be) (each, an
“Indemnitee”) is entitled to defense or indemnification under Section 4.1.5, 8.8, 12.1, 12.2, 15.2 or 15.3 or any other express provision in this Agreement (each, an “Indemnification Claim”), the Party required
to provide defense or indemnification to such Indemnitee (the “Indemnitor”) shall not be obligated to defend, indemnify and hold harmless such Indemnitee unless and until such Indemnitee provides written notice to such Indemnitor
promptly after such Indemnitee has actual knowledge of any facts or circumstances on which such Indemnification Claim is based or a Third-Party Claim is made on which such Indemnification Claim is based, describing in reasonable detail such facts
and circumstances or Third-Party Claim with respect to such Indemnification Claim. 
 15.5.2. Resolution of Indemnification
Claim Not Involving Third-Party Claim. If the Indemnification Claim does not involve a Third-Party Claim and is disputed by the Indemnitor, the dispute shall be resolved by litigation or other means of alternative dispute resolution as the
Parties may agree in writing. 
 15.5.3. Resolution of Indemnification Claim Involving Third-Party Claim. If the
Indemnification Claim involves a Third-Party Claim, the Indemnitor shall have the right (but not the obligation) to assume the defense of such Third-Party Claim, at its cost and expense, and shall use good faith efforts consistent with prudent
business judgment to defend such Third-Party Claim, provided that (i) the counsel for the Indemnitor who shall conduct the defense of the Third-Party Claim shall be reasonably satisfactory to the Indemnitee (unless selected by Indemnitor’s
insurance company), (ii) the Indemnitee, at its cost and expense, may participate in, but shall not control, the defense of such Third-Party Claim, and (iii) the Indemnitor shall not enter into any settlement or other agreement which
requires any performance by the Indemnitee, other than the payment of money which shall be paid by the Indemnitor. The Indemnitee shall not enter into any settlement or other agreement with respect to the Indemnification Claim, without the
Indemnitor’s prior written consent, which consent may be withheld in Indemnitor’s sole discretion. If the Indemnitor elects not to assume the defense of such Third-Party Claim, the Indemnitee shall have the right to retain the defense of
such Third-Party Claim and shall use good faith efforts consistent with prudent business judgment to defend such Third-Party Claim in an effective and cost efficient manner. 
 15.5.4. Accrual of Indemnification Obligation. Notwithstanding anything to the contrary in this Agreement, the Indemnitee shall have no right to indemnification against the Indemnitor for any
Indemnification Claim which (i) does not involve a Third-Party Claim but is disputed by Indemnitor until such time as such dispute is resolved by written agreement or other means as the Parties otherwise may agree in writing, or (ii) which
involves a Third-Party Claim until such time as such Third-Party Claim is concluded, including any appeals with respect thereto; provided, however, that nothing in this Section 15.5.4 shall limit the Indemnitee’s rights to defense with
respect to such Indemnification Claim as otherwise set forth in this ARTICLE XV. 
 15.6 Exclusive Remedy for Indemnification
Loss. Except for claims based on fraud, the indemnification provisions in this ARTICLE XV shall be the sole and exclusive remedy of any Indemnitee with respect to any claim for Indemnification Loss arising from or in connection with this
Agreement. 

  
 48 

 ARTICLE XVI 
 MISCELLANEOUS PROVISIONS 
 16.1 Notices 

16.1.1. Method of Delivery. All notices, requests, demands and other communications required to be provided by any Party under
this Agreement (each, a “Notice”) shall be in writing and delivered, at the sending Party’s cost and expense, by (i) personal delivery, (ii) certified U.S. mail, with postage prepaid and return receipt requested,
(iii) overnight courier service, or (iv) facsimile transmission, with a verification copy sent on the same day by any of the methods set forth in clauses (i), (ii) or (iii), to the recipient Party at the following address or facsimile
number: 
 If to Seller: 
 Starwood Hotels & Resorts Worldwide, Inc. 
 1111 Westchester Avenue

 White Plains, New York 10604 
 Attn: General Counsel 
 Facsimile No.: (914) 640-8260 

And to: 

Starwood Hotels & Resorts Worldwide, Inc. 
 1111 Westchester Avenue 
 White Plains, New York 10604 

Attn: President, Global Development Group 
 Facsimile No.: (914) 640-8315 
 With a copy to: 

Latham & Watkins LLP 
 233 South Wacker Drive, Suite 5800 
 Chicago, Illinois 60606 

Attn: Gary E. Axelrod 
 Facsimile No.: (312) 993-9767 
 If to Purchaser: 

c/o Chesapeake Lodging Trust 
 1997 Annapolis Exchange Parkway, Suite 410 
 Annapolis, Maryland 21401 

Attn: D. Rick Adams 
 Facsimile No.: (410) 972-4180 

  
 49 

 With a copy to: 
 c/o Chesapeake Lodging Trust 
 1997 Annapolis Exchange Parkway, Suite 410

 Annapolis, Maryland 21401 
 Attn: Graham J. Wootten 
 Facsimile No.: (410) 972-4180 

16.1.2. Receipt of Notices. All Notices sent by a Party (or its counsel pursuant to Section 16.1.4) under this Agreement
shall be deemed to have been received by the Party to whom such Notice is sent upon (i) delivery to the address or facsimile number of the recipient Party, provided that such delivery is made prior to 5:00 p.m. (local time for the recipient
Party) on a Business Day, otherwise the following Business Day, or (ii) the attempted delivery of such Notice if (A) such recipient Party refuses delivery of such Notice, or (B) such recipient Party is no longer at such address or
facsimile number, and such recipient Party failed to provide the sending Party with its current address or facsimile number pursuant to Section 16.1.3. 
 16.1.3. Change of Address. The Parties and their respective counsel shall have the right to change their respective address and/or facsimile number for the purposes of this Section 16.1 by
providing a Notice of such change in address and/or facsimile number as required under this Section 16.1. Seller hereby provides Purchaser Notice that its address as of March 1, 2012 shall be the following: 

c/o Starwood Hotels & Resorts Worldwide, Inc. 
 333 Ludlow Street 
 Stamford, CT 06902 

Attn: General Counsel 
 And to: 
 Starwood Hotels & Resorts Worldwide, Inc. 

1111 Westchester Avenue 
 White Plains, New York 10604 
 Attn: President, Global Development Group

 Facsimile No.: (914) 640-8315 
 With a copy to: 
 Latham & Watkins LLP 

233 South Wacker Drive, Suite 5800 
 Chicago, Illinois 60606 
 Attn: Gary E. Axelrod 

Facsimile No.: (312) 993-9767 
 16.1.4. Delivery by Party’s Counsel. The Parties agree that the attorney for such Party shall have the authority to deliver Notices on such Party’s behalf to the other Party hereto.

  
 50 

 16.2 No Recordation. Neither Purchaser, any Affiliate of Purchaser, nor any Person acting by
or on behalf of Purchaser shall record this Agreement, or any memorandum or other notice of this Agreement, in any public records. Purchaser hereby grants a power of attorney to Seller (which power is coupled with an interest and shall be
irrevocable) to execute and record on behalf of Purchaser a memorandum or other notice removing this Agreement or any memorandum or other notice of this Agreement from the public records, or evidencing the termination of this Agreement. 

16.3 Time is of the Essence. Time is of the essence of this Agreement; provided, however, that notwithstanding anything to the contrary in
this Agreement, if the time period for the performance of any covenant or obligation, satisfaction of any condition or delivery of any Notice or item required under this Agreement shall expire on a day other than a Business Day, such time period
shall be extended automatically to the next Business Day. 
 16.4 Assignment. Purchaser shall not assign this Agreement or any
interest therein to any Person, without the prior written consent of Seller, which consent may be withheld in Seller’s sole discretion. Notwithstanding the foregoing, Purchaser shall have the right to designate any Affiliate as its nominee to
receive title to the Property, or assign all of its right, title and interest in this Agreement to any Affiliate of Purchaser by providing written notice to Seller no later than five (5) Business Days prior to the Closing; provided, however,
that (a) such Affiliate remains an Affiliate of Purchaser, (b) Purchaser shall not be released from any of its liabilities and obligations under this Agreement by reason of such designation or assignment, and (c) such designation or
assignment shall not be effective until Purchaser has provided Seller with a fully executed copy of such designation or assignment and assumption instrument, which shall (i) provide that Purchaser and such designee or assignee shall be jointly
and severally liable for all liabilities and obligations of Purchaser under this Agreement, (ii) provide that Purchaser and its designee or assignee agree to pay any additional transfer tax as a result of such designation or assignment,
(iii) include a representation and warranty in favor of Seller that all representations and warranties made by Purchaser in this Agreement are true and correct with respect to such designee or assignee as of the date of such designation or
assignment, and will be true and correct as of the Closing, and (iv) otherwise be in form and substance satisfactory to Seller. 
 16.5
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties, and their respective successors and permitted assigns. 
 16.6 Third Party Beneficiaries. This Agreement shall not confer any rights or remedies on any Person other than (i) the Parties and their respective successors and permitted assigns,
and (ii) any Indemnitee to the extent such Indemnitee is expressly provided any right of defense or indemnification in this Agreement. 

16.7 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY PRINCIPLES
REGARDING CONFLICT OF LAWS. 

  
 51 

 16.8 Rules of Construction. The following rules shall apply to the construction and
interpretation of this Agreement: 
 16.8.1. Singular words shall connote the plural as well as the singular, and plural words
shall connote the singular as well as the plural, and the masculine shall include the feminine and the neuter, as the context may require. 
 16.8.2. All references in this Agreement to particular articles, sections, subsections or clauses (whether in upper or lower case) are references to articles, sections, subsections or clauses of this
Agreement. All references in this Agreement to particular exhibits or schedules (whether in upper or lower case) are references to the exhibits and schedules attached to this Agreement, unless otherwise expressly stated or clearly apparent from the
context of such reference. 
 16.8.3. The headings in this Agreement are solely for convenience of reference and shall not
constitute a part of this Agreement nor shall they affect its meaning, construction or effect. 
 16.8.4. Each Party and its
counsel have reviewed and revised (or requested revisions of) this Agreement and have participated in the preparation of this Agreement, and therefore any rules of construction requiring that ambiguities are to be resolved against the Party which
drafted the Agreement or any exhibits hereto shall not be applicable in the construction and interpretation of this Agreement or any exhibits hereto. 
 16.8.5. The terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any similar terms shall refer to this Agreement, and not solely to the provision
in which such term is used. 
 16.8.6. The terms “include,” “including” and similar terms shall be construed
as if followed by the phrase “without limitation.” 
 16.8.7. The term “sole discretion” with respect to any
determination to be made a Party under this Agreement shall mean the sole and absolute discretion of such Party, without regard to any standard of reasonableness or other standard by which the determination of such Party might be challenged.

 16.9 Severability. If any term or provision of this Agreement is held to be or rendered invalid or unenforceable at any time in
any jurisdiction, such term or provision shall not affect the validity or enforceability of any other terms or provisions of this Agreement, or the validity or enforceability of such affected term or provision at any other time or in any other
jurisdiction. 
 16.10 JURISDICTION AND VENUE. ANY LITIGATION OR OTHER COURT PROCEEDING WITH RESPECT TO ANY MATTER ARISING FROM OR
IN CONNECTION WITH THIS AGREEMENT SHALL BE CONDUCTED IN THE NEW YORK STATE SUPREME COURT IN NEW YORK COUNTY OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN THE STATE OF NEW YORK, AND SELLER (FOR ITSELF AND ALL SELLER
INDEMNITEES) AND PURCHASER (FOR ITSELF AND ALL PURCHASER INDEMNITEES) HEREBY SUBMIT TO JURISDICTION AND CONSENT TO VENUE IN SUCH COURTS, AND WAIVE ANY DEFENSE BASED ON FORUM NON CONVENIENS. 

  
 52 

 16.11 WAIVER OF TRIAL BY JURY. EACH PARTY HEREBY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY
LITIGATION OR OTHER COURT PROCEEDING WITH RESPECT TO ANY MATTER ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT. 
 16.12 Prevailing
Party. If any litigation or other court action, arbitration or similar adjudicatory proceeding is commenced by any Party to enforce its rights under this Agreement against any other Party, all fees, costs and expenses, including, without
limitation, reasonable attorneys fees and court costs, incurred by the prevailing Party in such litigation, action, arbitration or proceeding shall be reimbursed by the losing Party; provided, that if a Party to such litigation, action, arbitration
or proceeding prevails in part, and loses in part, the court, arbitrator or other adjudicator presiding over such litigation, action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses incurred by such Party on an
equitable basis. 
 16.13 Incorporation of Recitals, Exhibits and Schedules. The recitals to this Agreement, and all exhibits and
schedules (as amended, modified and supplemented from time to time pursuant to Section 16.14) referred to in this Agreement are incorporated herein by such reference and made a part of this Agreement. Any matter disclosed in any schedule to
this Agreement shall be deemed to be incorporated in all other schedules to this Agreement. 
 16.14 Updates of Schedules.
Notwithstanding anything to the contrary in this Agreement, Seller shall have the right to amend and supplement any schedule, or provide a new schedule, to this Agreement from time to time without Purchaser’s consent to the extent that
(i) such schedule needs to be amended, supplemented, or provided to maintain the truth or accuracy of the applicable representation or warranty or the information disclosed therein, and (ii) Seller did not have Knowledge as of the
Effective Date of the matter being disclosed in such amendment, supplement, or new schedule. If Seller makes any amendment or supplement to the schedules, or provides a new schedule, after the expiration of the Due Diligence Period (a “Post
Due Diligence Disclosure”), then (A) such Post Due Diligence Disclosure shall constitute a Purchaser Closing Condition Failure if, and only if, the corresponding representation or warranty to which such Post Due Diligence Disclosure
relates would be untrue or incorrect in the absence of such Post Due Diligence Disclosure and would result in a material adverse effect on the Purchaser’s ownership of the Property or the conduct of the Business upon Closing, and (B) if
Purchaser proceeds to Closing notwithstanding such Post Due Diligence Disclosure, the corresponding representation or warranty to which such Post Due Diligence Disclosure relates shall be deemed qualified by such Post Due Diligence Disclosure for
the purposes of limiting the defense and indemnification obligations of Seller under this Agreement. 
 16.15 Entire Agreement.
This Agreement sets forth the entire understanding and agreement of the Parties hereto, and shall supersede the Letter of Intent and any other agreements and understandings (written or oral) between the Parties on or prior to the Effective Date with
respect to the transaction described in this Agreement. 
 16.16 Amendments, Waivers and Termination of Agreement. Except as set
forth in Section 16.14, no amendment or modification to any terms or provisions of this Agreement, waiver of any covenant, obligation, breach or default under this Agreement or termination of this Agreement (other than as expressly provided in
this Agreement), shall be valid unless in writing and executed and delivered by each of the Parties. 

  
 53 

 16.17 Not an Offer. The delivery by Seller of this Agreement executed by Seller shall not
constitute an offer to sell the Property, and Seller shall have no obligation to sell the Property to Purchaser, unless and until all Parties have executed and delivered this Agreement to all other Parties. 

16.18 Execution of Agreement. A Party may deliver executed signature pages to this Agreement by facsimile transmission to any other Party,
which facsimile copy shall be deemed to be an original executed signature page. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which counterparts together shall constitute one
agreement with the same effect as if the Parties had signed the same signature page. 
 16.19 Right to Audit. Subject to the
provisions of Section 8.1, Purchaser may, at its sole cost and expense, engage a third-party certified public accountant to perform audits of Seller’s books and records which relate exclusively to the Property, including the historical
financial statements of the Property, which audits shall include all disclosures required by generally accepted accounting principles and the Securities and Exchange Commission regulations, specifically in accordance with Section 3.05 of
Regulation S-X and all related rules and regulations thereof; provided, however, that (i) the completion of such audit shall not be a condition precedent to Purchaser’s obligation to close the transactions described in this Agreement, and
(ii) Purchaser shall promptly reimburse Seller for any reasonable out-of-pocket expenses incurred by Seller or any of its Affiliates in connection with such audit. Seller shall reasonably cooperate in connection with the performance of such
audits and shall provide all information reasonably requested by the accountants performing such audits with respect to the Property, at no cost or expense to Seller. In connection with such audits, Seller shall provide the accountants performing
such audits with representation letters reasonably acceptable to Seller and such accountants, at no cost or expense to the Seller. Purchaser may request that Starwood cause its own accountants to perform such audits, at Purchaser’s sole cost
and expense, in which case Purchaser shall enter into a separate engagement letter with such accountants pursuant to which Purchaser shall pay the costs of such audits. The covenant of Seller with respect to such audits as set forth in this
Section 16.19 shall survive Closing for a period of one (1) year. 
 [Remainder of page intentionally left blank;

 Signatures on following pages] 

  
 54 

 IN WITNESS WHEREOF, each Party has caused this Agreement to be executed and delivered
in its name by a duly authorized officer or representative. 
  

			
	SELLER:
	
	STARWOOD CHICAGO CITY CENTER REALTY LLC, a Delaware limited liability company
		
	By:	 	/s/ Todd Noonan
	Name:	 	Todd Noonan
	Title:	 	Sr. Vice President & Assistant Secretary
	
	PURCHASER:
	
	CHSP CHICAGO LLC, a Delaware limited liability company
		
	By:	 	/s/ D. Rick Adams
	Name:	 	D. Rick Adams
	Title:	 	Vice President

 JOINDER BY OPERATING TENANT: 

Operating Tenant joins in the execution of this Agreement for the sole purpose of conveying any Personal Property owned by Operating
Tenant with respect to the Hotel pursuant to the Seller Closing Deliveries to be executed and delivered by Operating Tenant pursuant to Section 10.3.1. 

 

			
	OPERATING TENANT:
	
	STARWOOD HOTELS & RESORTS WORLDWIDE, INC., a Maryland corporation
		
	By:	 	/s/ Todd Noonan
	Name:	 	Todd Noonan
	Title:	 	Sr. Vice President & Assistant Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]