Document:

BRIDGE CREDIT AGREEMENT 

Dated as of November
10, 2006 

        SNAP-ON
INCORPORATED, a Delaware corporation (the “Borrower”), the banks,
financial institutions and other institutional lenders (the “Initial
Lenders”) listed on the signature pages hereof, CITIGROUP GLOBAL MARKETS INC., as
sole lead arranger and book manager, and CITIBANK, N.A. (“Citibank”), as
administrative agent (the “Agent”) for the Lenders (as hereinafter
defined), agree as follows: 

ARTICLE I 

DEFINITIONS AND
ACCOUNTING TERMS 

        SECTION
1.01. Certain Defined Terms. 

        As
used in this Agreement, the following terms shall have the following meanings (such
meanings to be equally applicable to both the singular and plural forms of the terms
defined): 

	 	        “Acquisition”
means the consummation of the transactions contemplated by that certain Stock and Asset
Purchase Agreement dated as of October 20, 2006 between ProQuest Company, a Delaware
corporation, and the Borrower. 

	 	        “Advance”
means an advance by a Lender to the Borrower as part of a Borrowing and refers to a Base
Rate Advance or a Eurodollar Rate Advance (each of which shall be a
“Type” of Advance). 

	 	        “Affiliate”
means, as to any Person, any other Person that, directly or indirectly, controls, is
controlled by or is under common control with such Person or is a director or officer of
such Person. For purposes of this definition, the term “control” (including the
terms “controlling”, “controlled by” and “under common control
with”) of a Person means the possession, direct or indirect, of the power to vote 5%
or more of the Voting Stock of such Person or to direct or cause the direction of the
management and policies of such Person, whether through the ownership of Voting Stock, by
contract or otherwise. 

	 	        “Agent’s
Account” means the account of the Agent maintained by the Agent at Citibank at
its office at 388 Greenwich Street, New York, New York 10013, Account No. 36852248,
Attention: Bank Loan Syndications or such other account of the Agent as is designated in
writing from time to time by the Agent to the Borrower and the Lenders for such purpose. 

	 	        “Applicable
Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar
Lending Office in the case of a Eurodollar Rate Advance. 

	 	        “Applicable
Margin” means (a) for Base Rate Advances, 0% per annum and (b) for Eurodollar
Rate Advances, as of any date, a percentage per annum determined by reference to the
Public Debt Rating in effect on such date as set forth below: 

	

	Public Debt Rating

S&P/Moody’s
	Applicable Margin for

Eurodollar Rate Advances

	Level 1	 
	AA- or Aa2 or above	0.150%
	

	Level 2
	A+ or A1	0.140%
	

	Level 3
	A or A2	0.180%
	

	Level 4
	A- or A3	0.215%
	

	Level 5
	BBB+ or Baa1	0.375%
	

	Level 6
	Lower than Level 5	0.550%
	

	 	        “Applicable
Percentage” means, as of any date, a percentage per annum determined by reference
to the Public Debt Rating in effect on such date as set forth below: 

	

	Public Debt Rating

S&P/Moody’s
	Applicable

Percentage

	Level 1	 
	AA- or Aa2 or above	0.050%
	

	Level 2
	A+ or A1	0.060%
	

	Level 3
	A or A2	0.070%
	

	Level 4
	A- or A3	0.085%
	

	Level 5
	BBB+ or Baa1	0.125%
	

	Level 6
	Lower than Level 5	0.150%
	

	 	        “Applicable
Utilization Fee” means, as of any date that the aggregate Advances exceed 33% of
the aggregate Commitments, a percentage per annum determined by reference to the Public
Debt Rating in effect on such date as set forth below: 

	

	Public Debt Rating

S&P/Moody’s
	Applicable

Utilization Fee

	Level 1	 
	AA- or Aa2 or above	0.050%
	

	Level 2
	A+ or A1	0.100%
	

	Level 3
	A or A2	0.100%
	

	Level 4
	A- or A3	0.100%
	

	Level 5
	BBB+ or Baa1	0.125%
	

	Level 6
	Lower than Level 5	0.150%
	

	 	        “Assignment
and Acceptance” means an assignment and acceptance entered into by a Lender and
an Eligible Assignee, and accepted by the Agent, in substantially the form of
Exhibit C hereto. 

	 	        “Base
Rate” means a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall at all times be equal to the highest of: 

2 

		    (a)              the
rate of interest announced publicly by Citibank in New York,                New York,
from time to time, as Citibank’s base rate;  

		    (b)               the
sum (adjusted to the nearest 1/4 of 1% or, if there is no nearest 1/4 of 1%,
               to the next higher 1/4 of 1%) of (i) 1⁄2 of 1% per annum, plus               (ii) the
rate obtained by dividing (A) the latest three-week moving                average of
secondary market morning offering rates in the United States for
               three-month certificates of deposit of major United States money market
banks,                such three-week moving average (adjusted to the basis of a year of
360 days)                being determined weekly on each Monday (or, if such day is not a
Business Day,                on the next succeeding Business Day) for the three-week
period ending on the                previous Friday by Citibank on the basis of such
rates reported by certificate                of deposit dealers to and published by the
Federal Reserve Bank of New York                or, if such publication shall be
suspended or terminated, on the basis of                quotations for such rates
received by Citibank from three New York                certificate of deposit
dealers of recognized standing selected by Citibank, by                (B) a
percentage equal to 100% minus the average of the daily percentages
               specified during such three-week period by the Board of Governors of the
Federal                Reserve System (or any successor) for determining the maximum
reserve                requirement (including, but not limited to, any emergency,
supplemental or other                marginal reserve requirement) for Citibank with
respect to liabilities                consisting of or including (among other
liabilities) three-month U.S. dollar                non-personal time deposits in the
United States, plus (iii) the                average during such three-week
period of the annual assessment rates estimated                by Citibank for
determining the then current annual assessment payable by                Citibank to the
Federal Deposit Insurance Corporation (or any successor) for                insuring U.S.
dollar deposits of Citibank in the United States; and  

		    (c)                   1⁄2 of
one percent per annum above the Federal Funds Rate.  

	 	        “Base
Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(i).  

	 	        “Borrowing”
means a borrowing consisting of simultaneous Advances of the same Type made by each of the
Lenders pursuant to Section 2.01. 

	 	        “Business
Day” means a day of the year on which banks are not required or authorized by law
to close in New York City and, if the applicable Business Day relates to any
Eurodollar Rate Advances, on which dealings are carried on in the London interbank market. 

	 	        “Commitment”
means as to any Lender (a) the amount set forth opposite such Lender’s name on
Schedule I hereto or (b) if such Lender has entered into any Assignment and
Acceptance, the amount set forth for such Lender in the Register maintained by the Agent
pursuant to Section 8.07(d), as such amount may be reduced pursuant to
Section 2.05. 

	 	        “Confidential
Information” means information that the Borrower furnishes (or is furnished on
behalf of the Borrower) to the Agent or any Lender, but does not include any such
information that is or becomes generally available to the public or that is or becomes
available to the Agent or such Lender from a source other than the Borrower (or a Person
furnishing information on behalf of the Borrower) that is not, to the knowledge of the
Agent or such Lender, acting in violation of a confidentiality agreement with the
Borrower. 

	 	        “Consolidated”refers
to the consolidation of accounts in accordance with GAAP.  

	 	        “Convert”,
“Conversion” and “Converted” each refers to a conversion
of Advances of one Type into Advances of the other Type pursuant to Section 2.08 or
2.09. 

3 

	 	        “Debt”of
any Person means, without duplication (other than, for purposes of Section 6.01(d), any
of the following owed to the Borrower or any of its wholly-owned Subsidiaries), (a) all
indebtedness of such Person for borrowed money, (b) all obligations of such Person
for the deferred purchase price of property or services (other than (i) trade and similar
accounts payables that (x) are not overdue by more than 120 days incurred in the ordinary
course of such Person’s business or (y) are being contested in good faith by
appropriate proceedings and as to which appropriate reserves are being maintained, (ii)
accrued expenses arising in the ordinary course of business, employee compensation and
pension obligations and other obligations arising from employee benefit agreements and
programs, (iii) earn-outs and holdbacks and (iv) customer advances), (c) all
obligations of such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all obligations of such Person created or arising under any
conditional sale or other title retention agreement with respect to property acquired by
such Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such property),
(e) all obligations of such Person as lessee under leases that have been or should
be, in accordance with GAAP, recorded as capital leases, (f) all obligations,
contingent or otherwise, of such Person in respect of acceptances, letters of credit or
similar extensions of credit, (g) all net obligations of such Person in respect of
Hedge Agreements, (h) all Debt of others referred to in clauses (a) through (g)
above or clause (i) below guaranteed directly or indirectly in any manner by such
Person, or in effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Debt or to advance or supply funds for the
payment or purchase of such Debt, (2) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of enabling
the debtor to make payment of such Debt or to assure the holder of such Debt against
loss, (3) to supply funds to or in any other manner invest in the debtor (including
any agreement to pay for property or services irrespective of whether such property is
received or such services are rendered) or (4) otherwise to assure a creditor
against loss, providedthat, if the guaranty or other agreement provides for
limited recourse to such Person for such Debt, it shall be taken into account only to the
extent of such recourse, and (i) all Debt referred to in clauses (a) through (h) above
secured by (or for which the holder of such Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on property (including, without limitation,
accounts and contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Debt, provided that, if such
Person has not assumed or become liable for the payment of such Debt, it shall be taken
into account only to the extent of the book value or fair market value, whichever is
greater, of the property subject to such Lien; provided, further, however,
that the term “Debt”shall not include obligations incurred in connection with a
Permitted Receivables Financing.  

	 	        “Default”
means any Event of Default or any event that would constitute an Event of Default but for
the requirement that notice be given or time elapse or both. 

	 	        “Disclosed
Litigation” has the meaning specified in Section 3.01(b).  

	 	        “Domestic
Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” opposite its name on Schedule I
hereto or in the Assignment and Acceptance pursuant to which it became a Lender, or such
other office of such Lender as such Lender may from time to time specify to the Borrower
and the Agent. 

	 	        “Effective
Date” has the meaning specified in Section 3.01.  

	 	        “Eligible
Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; and
(iii) any other Person approved by the Agent and, unless an Event of Default has
occurred and is continuing at the time any assignment is effected in accordance with
Section 8.07, the Borrower, such approval not to be unreasonably withheld or delayed;
provided, however, that neither the Borrower nor an Affiliate of the
Borrower shall qualify as an Eligible Assignee. 

	 	        “Environmental
Action” means any action, suit, demand, demand letter, claim, notice of
non-compliance or violation, notice of liability or potential liability, investigation,
proceeding, consent order or consent agreement relating in any way to any Environmental
Law, Environmental Permit or Hazardous Materials or arising from alleged injury or threat
of injury to health, safety or the environment, including, without limitation, (a) by
any governmental or regulatory authority for enforcement, cleanup, removal, response,
remedial or other actions or damages and (b) by any governmental or regulatory
authority or any third party for damages, contribution, indemnification, cost recovery,
compensation or injunctive relief. 

4 

	 	        “Environmental
Law” means any federal, state, local or foreign statute, law, ordinance, rule,
regulation, code, order, judgment, decree or judicial or agency interpretation, policy or
guidance relating to pollution or protection of the environment, health, safety or natural
resources, including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 

	 	        “Environmental
Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law. 

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

	 	        “ERISA
Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the Borrower’s controlled group, or under common control with the Borrower,
within the meaning of Section 414 of the Internal Revenue Code. 

	 	        “ERISA
Event” means (a) (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice
requirement with respect to such event has been waived by the PBGC, or (ii) the
requirements of subsection (1) of Section 4043(b) of ERISA (without regard to subsection
(2) of such Section) are met with a contributing sponsor, as defined in Section
4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11),
(12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to
such Plan within the following 30 days; (b) the application for a minimum funding
waiver with respect to a Plan; (c) the provision by the administrator of any Plan of
a notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a facility of the
Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of
ERISA; (e) the withdrawal by the Borrower or any ERISA Affiliate from a Multiple
Employer Plan during a plan year for which it was a substantial employer, as defined in
Section 4001(a)(2) of ERISA; (f)  the conditions for the imposition of a lien
under Section 302(f) of ERISA shall have been met with respect to any Plan;
(g) the adoption of an amendment to a Plan requiring the provision of security to
such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC
of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the
occurrence of any event or condition described in Section 4042 of ERISA that
constitutes grounds for the termination of, or the appointment of a trustee to administer,
a Plan. 

	 	        “Eurocurrency
Liabilities” has the meaning assigned to that term in Regulation D of the
Board of Governors of the Federal Reserve System, as in effect from time to time. 

	 	        “Eurodollar
Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Eurodollar Lending Office” opposite its name on
Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a
Lender (or, if no such office is specified, its Domestic Lending Office), or such other
office of such Lender as such Lender may from time to time specify to the Borrower and the
Agent. 

	 	        “Eurodollar
Rate” means, for any Interest Period for each Eurodollar Rate Advance comprising
part of the same Borrowing, an interest rate per annum equal to the rate per annum
obtained by dividing (a) the rate per annum (rounded upward to the nearest whole multiple
of 1/100 of 1% per annum) appearing on Moneyline Telerate Service Page 3750 (or any
successor page) as the London interbank offered rate for deposits in U.S. dollars at
approximately 11:00 A.M. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period or, if for any reason such
rate is not available, the average (rounded upward to the nearest whole multiple of
1/100 of 1% per annum, if such average is not such a multiple) of the rate per annum at
which deposits in U.S. dollars is offered by the principal office of each of the Reference
Banks in London, England to prime banks in the London interbank market at 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period in an amount
substantially equal to such Reference Bank’s Eurodollar Rate Advance comprising part
of such Borrowing to be outstanding during such Interest Period and for a period equal to
such Interest Period by (b) a percentage equal to 100% minus the Eurodollar Rate
Reserve Percentage for such Interest Period. If the Moneyline Telerate Service Page 3750
(or any successor page) is unavailable, the Eurodollar Rate for any Interest Period for
each Eurodollar Rate Advance comprising part of the same Borrowing shall be determined by
the Agent on the basis of applicable rates furnished to and received by the Agent from the
Reference Banks two Business Days before the first day of such Interest Period,
subject, however, to the provisions of Section 2.08. 

5 

	 	        “Eurodollar
Rate Advance” means an Advance that bears interest as provided in Section 2.07(a)(ii).  

	 	        “Eurodollar
Rate Reserve Percentage” for any Interest Period for all Eurodollar Rate Advances
comprising part of the same Borrowing means the reserve percentage applicable two Business
Days before the first day of such Interest Period under regulations issued from time to
time by the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member bank of the Federal
Reserve System in New York City with respect to liabilities or assets consisting of
or including Eurocurrency Liabilities (or with respect to any other category of
liabilities that includes deposits by reference to which the interest rate on Eurodollar
Rate Advances is determined) having a term equal to such Interest Period. 

	 	        “Events
of Default” has the meaning specified in Section 6.01.  

	 	        “Federal
Funds Rate” means, for any period, a fluctuating interest rate per annum equal
for each day during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds
brokers, as published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is
not so published for any day that is a Business Day, the average of the quotations for
such day on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it. 

	 	        “GAAP”has
the meaning specified in Section 1.03.  

	 	        “Hazardous
Materials” means (a) petroleum and petroleum products, byproducts or breakdown
products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls
and radon gas and (b) any other chemicals, materials or substances designated, classified
or regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law. 

	 	        “Hedge
Agreements” means interest rate swap, cap or collar agreements, interest rate
future or option contracts, currency swap agreements, currency future or option contracts
and other similar agreements. 

	 	        “Interest
Period” means, for each Eurodollar Rate Advance comprising part of the same
Borrowing, the period commencing on the date of such Eurodollar Rate Advance or the date
of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending on
the last day of the period selected by the Borrower pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the Borrower pursuant
to the provisions below. The duration of each such Interest Period shall be one, two,
three or six months as the Borrower may, upon notice received by the Agent not later than
11:00 A.M. (New York City time) on the third Business Day prior to the first day
of such Interest Period, select; provided, however, that: 

6 

		    (a)                   the
Borrower may not select any Interest Period that ends after the Termination
               Date;  

		    (b)                   Interest
Periods commencing on the same date for Eurodollar Rate Advances
               comprising part of the same Borrowing shall be of the same duration;  

		    (c)                   whenever
the last day of any Interest Period would otherwise occur on a day                other
than a Business Day, the last day of such Interest Period shall be
               extended to occur on the next succeeding Business Day, provided, however,
that, if such extension would cause the last day of such                Interest Period
to occur in the next following calendar month, the last day of                such
Interest Period shall occur on the next preceding Business Day; and  

		    (d)                   whenever
the first day of any Interest Period occurs on a day of an initial
               calendar month for which there is no numerically corresponding day in the
               calendar month that succeeds such initial calendar month by the number of
months                equal to the number of months in such Interest Period, such
Interest Period                shall end on the last Business Day of such succeeding
calendar month.  

	 	        “Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated and rulings issued thereunder. 

	 	        “Lenders”means
the Initial Lenders and each Person that shall become a party hereto pursuant to Section 8.07.  

	 	        “Lien”
means any lien, security interest or other charge or encumbrance of any kind, or any other
type of preferential arrangement, including, without limitation, the lien or retained
security title of a conditional vendor (excluding operating leases) and any easement,
right of way or other encumbrance on title to real property. 

	 	        “Material
Adverse Change” means any material adverse change in the business, condition
(financial or otherwise), operations, performance or properties of the Borrower or the
Borrower and its Subsidiaries taken as a whole. 

	 	        “Material
Adverse Effect” means a material adverse effect on (a) the business,
condition (financial or otherwise), operations, performance or properties of the Borrower
or the Borrower and its Subsidiaries taken as a whole, (b) the rights and remedies of
the Agent or any Lender under this Agreement or any Note or (c) the ability of the
Borrower to perform its obligations under this Agreement or any Note. 

	 	        “Material
Subsidiary” means any Subsidiary of the Borrower having, as of the end of the
Borrower’s most recently completed fiscal year, (a) assets with a value of not less
than 5% of the total value of the assets of the Borrower and its Subsidiaries, taken as a
whole, or (b) gross revenue of not less than 5% of the total (gross) revenue of the
Borrower and its Subsidiaries, taken as a whole. 

	 	        “Multiemployer
Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA,
to which the Borrower or any ERISA Affiliate is making or accruing an obligation to make
contributions, or has within any of the preceding five plan years made or accrued an
obligation to make contributions. 

	 	        “Multiple
Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and at least one Person other than the Borrower and the
ERISA Affiliates or (b) was so maintained and in respect of which the Borrower or any
ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event
such plan has been or were to be terminated. 

7 

	 	        “Net
Cash Proceeds” means, with respect to the incurrence or issuance of any debt or
the sale or issuance of any equity interests by the Borrower or any of its Subsidiaries,
the aggregate amount of cash received from time to time (whether as initial consideration
or through payment or disposition of deferred consideration but only as and when received)
by or on behalf of such Person in connection with such transaction after deducting
therefrom only (without duplication) (a) reasonable and customary brokerage
commissions, underwriting fees and discounts, legal and accounting fees, filing fees,
finder’s fees and other similar fees and commissions and expenses and (b) the
amount of taxes payable in connection with or as a result of such transaction. 

	 	        “Note”
means a promissory note of the Borrower payable to the order of any Lender, delivered
pursuant to a request made under Section 2.16 in substantially the form of
Exhibit A hereto, evidencing the aggregate indebtedness of the Borrower to such
Lender resulting from the Advances made by such Lender. 

	 	        “Notice
of Borrowing” has the meaning specified in Section 2.02(a).  

	 	        “PBGC”means
the Pension Benefit Guaranty Corporation (or any successor).  

	 	        “Permitted
Liens” means such of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding shall have been commenced: (a) Liens for
taxes, assessments and governmental charges or levies to the extent not required to be
paid under Section 5.01(b) hereof; (b) Liens imposed by law, such as
materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s
Liens and other similar Liens arising in the ordinary course of business securing
obligations that are either (i) not overdue for a period of more than 45 days or (ii) are
being contested in good faith and by proper proceedings and as to which appropriate
reserves are being maintained; (c) pledges or deposits to secure obligations under
workers’ compensation laws or similar legislation or to secure public or statutory
obligations; and (d) easements, rights of way and other encumbrances on title to real
property that do not render title to the property encumbered thereby unmarketable or
materially adversely affect the use of such property for its present purposes. 

	 	        “Permitted
Receivables Financing” means any financing pursuant to which the Borrower or any
Subsidiary or Subsidiaries of the Borrower may sell, convey or otherwise transfer to a
Receivables Subsidiary or any other Person, or grant a security interest in, any accounts
receivable, general intangibles, chattel paper or other financial assets (and related
rights and assets) of the Borrower or such Subsidiary or Subsidiaries, provided
that such financing shall be with limited or no recourse to the Borrower and its
Subsidiaries (other than the Receivables Subsidiary) except to the extent customary (in
the reasonable judgment of the Borrower) for such transactions. 

	 	        “Person”
means an individual, partnership, corporation (including a business trust), joint stock
company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof. 

	 	        “Plan”means
a Single Employer Plan or a Multiple Employer Plan.  

	 	        “Receivables
Subsidiary” means a bankruptcy remote, special purpose wholly owned Subsidiary of
the Borrower (or another wholly-owned Subsidiary of the Borrower) formed in connection
with a Permitted Receivables Financing. 

	 	        “Reference
Banks” means Citibank and JPMorgan Chase Bank, N.A.  

	 	        “Register”has
the meaning specified in Section 8.07(d).  

8 

	 	        “Related
Person” means each of the following: (a) the Borrower, (b) any Subsidiary of the
Borrower or (c) any employee benefit plan of the Borrower or of any Subsidiary of the
Borrower or any Person organized, appointed or established by the Borrower for or pursuant
to the terms of any such plan. 

	 	        “Required
Lenders” means at any time Lenders owed at least a majority in interest of the
then aggregate unpaid principal amount of the Advances owing to Lenders, or, if no such
principal amount is then outstanding, Lenders having at least a majority in interest of
the Commitments. 

	 	        “Single
Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the
Borrower or any ERISA Affiliate and no Person other than the Borrower and the ERISA
Affiliates or (b) was so maintained and in respect of which the Borrower or any ERISA
Affiliate could have liability under Section 4069 of ERISA in the event such plan has
been or were to be terminated. 

	 	        “Subsidiary”
of any Person means any corporation, partnership, joint venture, limited liability
company, trust or estate of which (or in which) more than 50% of (a) the issued and
outstanding capital stock having ordinary voting power to elect a majority of the Board of
Directors of such corporation (irrespective of whether at the time capital stock of any
other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of such
limited liability company, partnership or joint venture or (c) the beneficial
interest in such trust or estate is at the time directly or indirectly owned or controlled
by such Person, by such Person and one or more of its other Subsidiaries or by one or more
of such Person’s other Subsidiaries; it being understood that Snap-On Credit LLC,
which is 50% owned by the Borrower, shall not be deemed to be a “Subsidiary” of
the Borrower for purposes of this Agreement. 

	 	        “Termination
Date” means the earlier of (a) May 9, 2007 and (b) the date of termination in
whole of the Commitments pursuant to Section 2.05 or 6.01. 

	 	        “Voting
Stock” means capital stock issued by a corporation, or equivalent interests in
any other Person, the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar functions)
of such Person, even if the right so to vote has been suspended by the happening of such a
contingency. 

        SECTION
1.02. Computation of Time Periods. In this Agreement in the computation of periods
of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each
mean “to but excluding”. 

        SECTION
1.03. Accounting Terms. All accounting terms not specifically defined herein shall
be construed in accordance with generally accepted accounting principles consistent with
those applied in the preparation of the financial statements referred to in
Section 4.01(e) (“GAAP”). 

ARTICLE II 

AMOUNTS AND TERMS OF
THE ADVANCES 

        SECTION
2.01. The Advances. Each Lender severally agrees, on the terms and conditions
hereinafter set forth, to make Advances to the Borrower from time to time on any Business
Day during the period from the Effective Date until the Termination Date in an aggregate
amount not to exceed at any time outstanding such Lender’s Commitment. Each Borrowing
shall be in an aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in
excess thereof and shall consist of Advances of the same Type made on the same day by the
Lenders ratably according to their respective Commitments. Within the limits of each
Lender’s Commitment, the Borrower may borrow under this Section 2.01, prepay pursuant
to Section 2.10 and reborrow under this Section 2.01. 

9 

        SECTION
2.02. Making the Advances. (a) Each Borrowing shall be made on notice, given not
later than (x) 11:00 A.M. (New York City time) on the third Business Day
prior to the date of the proposed Borrowing in the case of a Borrowing consisting of
Eurodollar Rate Advances or (y) 11:00 A.M. (New York City time) on the date of the
proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the
Borrower to the Agent, which shall give to each Lender prompt notice thereof by
telecopier. Each such notice of a Borrowing (a “Notice of Borrowing”)
shall be by telephone, confirmed immediately in writing, or telecopier in substantially
the form of Exhibit B hereto, specifying therein the requested (i) date of such
Borrowing, (ii) Type of Advances comprising such Borrowing, (iii) aggregate
amount of such Borrowing, and (iv) in the case of a Borrowing consisting of
Eurodollar Rate Advances, initial Interest Period for each such Advance. Each Lender
shall, before 12:00 noon (New York City time) on the date of such Borrowing make
available for the account of its Applicable Lending Office to the Agent at the applicable
Agent’s Account, in same day funds, such Lender’s ratable portion of such
Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the
applicable conditions set forth in Article III, the Agent will make such funds
available to the Borrower at the Agent’s address referred to in Section 8.02(a). 

        (b)             Anything
in subsection (a) above to the contrary notwithstanding,           (i) the
Borrower may not select Eurodollar Rate Advances for any Borrowing           if the
aggregate amount of such Borrowing is less than $10,000,000 or if the
          obligation of the Lenders to make Eurodollar Rate Advances shall then be
          suspended pursuant to Section 2.08 or 2.12 and (ii) the Eurodollar
          Rate Advances may not be outstanding as part of more than six separate
          Borrowings.  

        (c)               Each
Notice of Borrowing shall be irrevocable and binding on the Borrower. In           the
case of any Borrowing that the related Notice of Borrowing specifies is to           be
comprised of Eurodollar Rate Advances, the Borrower shall indemnify each           Lender
against any loss, cost or expense incurred by such Lender as a result of           any
failure to fulfill on or before the date specified in such Notice of           Borrowing
for such Borrowing the applicable conditions set forth in           Article III,
including, without limitation, any loss (including loss of           anticipated
profits), cost or expense incurred by reason of the liquidation or           reemployment
of deposits or other funds acquired by such Lender to fund the           Advance to be
made by such Lender as part of such Borrowing when such Advance,           as a result of
such failure, is not made on such date.  

        (d)               Unless
the Agent shall have received notice from a Lender prior to the time of           any
Borrowing that such Lender will not make available to the Agent such           Lender’s
ratable portion of such Borrowing, the Agent may assume that such           Lender has
made such portion available to the Agent on the date of such           Borrowing in
accordance with subsection (a) of this Section 2.02 and           the Agent
may, in reliance upon such assumption, make available to the Borrower           on such
date a corresponding amount. If and to the extent that such Lender shall           not
have so made such ratable portion available to the Agent, such Lender and           the
Borrower severally agree to repay to the Agent forthwith on demand such
          corresponding amount together with interest thereon, for each day from the date
          such amount is made available to the Borrower until the date such amount is
          repaid to the Agent, at (i) in the case of the Borrower, the interest rate
          applicable at the time to Advances comprising such Borrowing and (ii) in
          the case of such Lender, the Federal Funds Rate. If such Lender shall repay to
          the Agent such corresponding amount, such amount so repaid shall constitute
such           Lender’s Advance as part of such Borrowing for purposes of this
Agreement.  

        (e)              The
failure of any Lender to make the Advance to be made by it as part of any
          Borrowing shall not relieve any other Lender of its obligation, if any,
          hereunder to make its Advance on the date of such Borrowing, but no Lender
shall           be responsible for the failure of any other Lender to make the Advance to
be           made by such other Lender on the date of any Borrowing.  

        SECTION
2.03. [Intentionally Omitted]. 

        SECTION
2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the Agent for
the account of each Lender a facility fee on the aggregate amount of such Lender’s
Commitment from the Effective Date in the case of each Initial Lender and from the later
of the Effective Date and the effective date specified in the Assignment and Acceptance
pursuant to which it became a Lender in the case of each other Lender until the
Termination Date at a rate per annum equal to the Applicable Percentage in effect from
time to time, payable in arrears quarterly on the last day of each March, June, September
and December, commencing December 31, 2006, and on the Termination Date. 

10 

        (b)     Agent’s
Fees. The Borrower shall pay to the Agent for its own           account such fees as
may from time to time be agreed between the Borrower and           the Agent.  

        SECTION
2.05. Termination or Reduction of the Commitments. (a) Optional. The
Borrower shall have the right, upon at least three Business Days’ notice to the
Agent, to terminate in whole or reduce ratably in part the unused portions of the
respective Commitments of the Lenders, provided that each partial reduction shall
be in the aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess
thereof. 

        (b)     Mandatory.
The aggregate Commitments of the Lenders shall be           automatically and permanently
ratably reduced on the date and by the amount of           the receipt by the Borrower or
any of its Subsidiaries of Net Cash Proceeds from           (i) from issuance of equity
interests in a private placement or an underwritten           public offering or (ii) the
incurrence or issuance of debt for borrowed money           having a maturity of more
than 270 days in the capital markets.  

        SECTION
2.06. Repayment of Advances. The Borrower shall repay to the Agent for the ratable
account of the Lenders on the Termination Date the aggregate principal amount of the
Advances then outstanding. 

        SECTION
2.07. Interest on Advances. (a) Scheduled Interest. The Borrower shall pay
interest on the unpaid principal amount of each Advance owing to each Lender from the date
of such Advance until such principal amount shall be paid in full, at the following rates
per annum: 

	 	        (i)    Base
Rate Advances. During such periods as such Advance is a Base Rate
               Advance, a rate per annum equal at all times to the sum of (x) the
Base                Rate in effect from time to time plus (y) the Applicable
Margin in                effect from time to time plus (z) the Applicable
Utilization Fee in                effect from time to time, payable in arrears quarterly
on the last day of each                March, June, September and December during such
periods and on the date such                Base Rate Advance shall be Converted or paid
in full.  

	 	        (ii)     Eurodollar
Rate Advances. During such periods as such Advance is a                Eurodollar
Rate Advance, a rate per annum equal at all times during each                Interest
Period for such Advance to the sum of (x) the Eurodollar Rate for
               such Interest Period for such Advance plus (y) the Applicable
Margin                in effect from time to time plus (z) the Applicable
Utilization Fee in                effect from time to time, payable in arrears on the
last day of such Interest                Period and, if such Interest Period has a
duration of more than three months, on                each day that occurs during such
Interest Period every three months from the                first day of such Interest
Period and on the date such Eurodollar Rate Advance                shall be Converted or
paid in full.  

        (b)     Default
Interest. Upon the occurrence and during the continuance of an                Event
of Default, the Borrower shall pay interest on (i) the unpaid
               principal amount of each Advance owing to each Lender, payable in arrears
on the                dates referred to in clause (a)(i) or (a)(ii) above, at a rate
per annum                equal at all times to 2% per annum above the rate per annum
required to be paid                on such Advance pursuant to clause (a)(i) or
(a)(ii) above and (ii) to                the fullest extent permitted by law, the
amount of any interest, fee or other                amount payable hereunder that is not
paid when due, from the date such amount                shall be due until such amount
shall be paid in full, payable in arrears on the                date such amount shall be
paid in full and on demand, at a rate per annum equal                at all times to 2%
per annum above the rate per annum required to be paid on                Base Rate
Advances pursuant to clause (a)(i) above.  

        SECTION
2.08. Interest Rate Determination. (a) The Agent shall give prompt notice to the
Borrower and the Lenders of the applicable interest rate determined by the Agent for
purposes of Section 2.07(a)(i) or (ii), and the rate, if any, furnished by each
Reference Bank for the purpose of determining the interest rate under
Section 2.07(a)(ii). 

        (b)                    If,
with respect to any Eurodollar Rate Advances, the Required Lenders notify
               the Agent that (i) they are unable to obtain matching deposits in the
               London inter-bank market at or about 11:00 A.M. (London time) on the
second                Business Day before the making of a Borrowing in sufficient amounts
to fund                their respective Advances as a part of such Borrowing during its
Interest Period                or (ii) the Eurodollar Rate for any Interest Period
for such Advances will                not adequately reflect the cost to such Required
Lenders of making, funding or                maintaining their respective Eurodollar Rate
Advances for such Interest Period,                the Agent shall forthwith so notify the
Borrower and the Lenders, whereupon                (A) the Borrower will, on the
last day of the then existing Interest Period                therefor, either (x) prepay
such Advances or (y) Convert such Advances into Base                Rate Advances and (B) the
obligation of the Lenders to make, or to Convert                Advances into, Eurodollar
Rate Advances shall be suspended until the Agent shall                notify the Borrower
and the Lenders that the circumstances causing such                suspension no longer
exist.  

11 

    (c)                If
the Borrower shall fail to select the duration of any Interest Period for any
               Eurodollar Rate Advances in accordance with the provisions contained in
the                definition of “Interest Period” in Section 1.01, the
Agent will                forthwith so notify the Borrower and the Lenders and such
Advances will                automatically, on the last day of the then existing Interest
Period therefor, be                continued as Eurodollar Rate Advances having an
interest period of one month.  

    (d)                On
the date on which the aggregate unpaid principal amount of Eurodollar Rate
               Advances comprising any Borrowing shall be reduced, by payment or
prepayment or                otherwise, to less than $10,000,000, such Advances shall
automatically Convert                into Base Rate Advances.  

    (e)                Upon
the occurrence and during the continuance of any Event of Default,                (i) each
Eurodollar Rate Advance will automatically, on the last day of the                then
existing Interest Period therefor be Converted into Base Rate Advances and
               (ii) the obligation of the Lenders to make, or to Convert Advances
into,                Eurodollar Rate Advances shall be suspended.  

    (f)                If
Moneyline Telerate Service Page 3750 is unavailable and fewer than two
               Reference Banks furnish timely information to the Agent for determining
the                Eurodollar Rate for any Eurodollar Rate Advances,  

	 	        (i)              the
Agent shall forthwith notify the Borrower and the Lenders that the interest
               rate cannot be determined for such Eurodollar Rate Advances,  

	 	        (ii)                 each
such Advance will automatically, on the last day of the then existing
               Interest Period therefor, be prepaid by the Borrower or be automatically
               Converted into a Base Rate Advance (or if such Advance is then a Base Rate
               Advance, will continue as a Base Rate Advance), and  

	 	        (iii)                    the
obligation of the Lenders to make Eurodollar Rate Advances or to Convert
               Advances into Eurodollar Rate Advances shall be suspended until the Agent
shall                notify the Borrower and the Lenders that the circumstances causing
such                suspension no longer exist.  

        SECTION
2.09. Optional Conversion of Advances. The Borrower may on any Business Day, upon
notice given to the Agent not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the date of the proposed Conversion and subject to the
provisions of Sections 2.08 and 2.12, Convert all or a portion of Advances of one
Type comprising the same Borrowing into Advances of the other Type; provided,
however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances
shall be made only on the last day of an Interest Period for such Eurodollar Rate
Advances, any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in
an amount not less than the minimum amount specified in Section 2.02(b) and no
Conversion of any Advances shall result in more separate Borrowings than permitted under
Section 2.02(b). Each such notice of a Conversion shall, within the restrictions
specified above, specify (i) the date of such Conversion, (ii) the Advances to
be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest Period for each such Advance. Each notice of Conversion
shall be irrevocable and binding on the Borrower. 

        SECTION
2.10. Prepayments of Advances. (a) Optional. The Borrower may, upon
notice at least two Business Days’ prior to the date of such prepayment, in the case
of Eurodollar Rate Advances, and not later than 11:00 A.M. (New York City time) on the
date of such prepayment, in the case of Base Rate Advances, to the Agent stating the
proposed date and aggregate principal amount of the prepayment, and if such notice is
given the Borrower shall, prepay the outstanding principal amount of the Advances
comprising part of the same Borrowing in whole or ratably in part without premium or
penalty, together with accrued interest to the date of such prepayment on the principal
amount prepaid; provided, however, that (x) each partial prepayment shall be
in an aggregate principal amount of $10,000,000 or an integral multiple of $1,000,000 in
excess thereof and (y) in the event of any such prepayment of a Eurodollar Rate
Advance, the Borrower shall be obligated to reimburse the Lenders in respect thereof
pursuant to Section 8.04(c). 

12 

        (b)     Mandatory
Prepayments. (i) The Borrower shall, within two (2) Business           Days after the
receipt thereof, and in the amount of the receipt by the Borrower           or any of its
Subsidiaries of Net Cash Proceeds from (A) the issuance of equity           interests in
a private placement or an underwritten public offering or (B) the           incurrence or
issuance of debt for borrowed money having a maturity of more than           270 days in
the capital markets, repay the Advances comprising part of the same           Borrowing
ratably in an aggregate amount equal to the amount of such Net Cash           Proceeds.  

        (ii)               Each
prepayment made pursuant to this Section 2.10(b) shall be made together           with
any interest accrued to the date of such prepayment on the principal           amounts
prepaid and, in the case of any prepayment of a Eurodollar Rate Advance           on a
date other than the last day of an Interest Period or at its maturity, any
          additional amounts which the Borrower shall be obligated to reimburse to the
          Lenders in respect thereof pursuant to Section 8.04(c). The Agent shall give
          prompt notice of any prepayment required under this Section 2.10(b) to the
          Borrower and the Lenders.  

        SECTION
2.11. Increased Costs. (a) If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation or (ii) the compliance
with any guideline or request issued by any central bank or other governmental authority
including, without limitation, any agency of the European Union or similar monetary or
multinational authority after the date hereof (whether or not having the force of law),
there shall be any increase in the cost to any Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Advances (excluding for purposes of this Section
2.11 any such increased costs resulting from (i) Taxes or Other Taxes (as to which Section
2.14 shall govern) and (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or by the foreign jurisdiction or state under
the laws of which such Lender is organized or is otherwise subject to tax), then the
Borrower shall from time to time, upon demand by such Lender (with a copy of such demand
to the Agent), pay to the Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost, provided that the
Borrower shall not be required to pay any such additional amounts to the extent such
additional amounts accrued prior to the date that is six months prior to the date of such
notice. A certificate in reasonable detail as to the amount of such increased cost,
submitted to the Borrower and the Agent by such Lender contemporaneously with the demand
for payment, shall be conclusive and binding for all purposes, absent manifest error. 

        (b)              If
any Lender determines that compliance with any law or regulation or any
          guideline or request from any central bank or other governmental authority
          (whether or not having the force of law) affects or would affect the amount of
          capital required or expected to be maintained by such Lender or any corporation
          controlling such Lender and that the amount of such capital is increased by or
          based upon the existence of such Lender’s commitment to lend hereunder and
          other commitments of this type, then, upon demand by such Lender (with a copy
of           such demand to the Agent), the Borrower shall pay to the Agent for the
account           of such Lender, from time to time as specified by such Lender,
additional           amounts sufficient to compensate such Lender or such corporation in
the light of           such circumstances, to the extent that such Lender reasonably
determines such           increase in capital to be allocable to the existence of such
Lender’s           commitment to lend hereunder. A certificate in reasonable detail
as to such           amounts submitted to the Borrower and the Agent by such Lender
contemporaneously           with the demand for payment shall be conclusive and binding
for all purposes,           absent manifest error.  

        SECTION
2.12. Illegality. Notwithstanding any other provision of this Agreement, if any
Lender shall notify the Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for any Lender or its Eurodollar
Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or to
fund or maintain Eurodollar Rate Advances hereunder, (a) each Eurodollar Rate Advance
will automatically, upon such demand, be Converted into a Base Rate Advance and
(b) the obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no longer exist. 

        SECTION
2.13. Payments and Computations. (a) The Borrower shall make each payment
hereunder, without set-off or counterclaim, not later than 11:00 A.M. (New York
City time) on the day when due in U.S. dollars to the Agent at the applicable Agent’s
Account in same day funds. The Agent will promptly thereafter cause to be distributed like
funds relating to the payment of principal or interest or facility fees ratably (other
than amounts payable pursuant to Section 2.03, 2.11, 2.14 or 8.04(c)) to the Lenders
for the account of their respective Applicable Lending Offices, and like funds relating to
the payment of any other amount payable to any Lender to such Lender for the account of
its Applicable Lending Office, in each case to be applied in accordance with the terms of
this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the
information contained therein in the Register pursuant to Section 8.07(c), from and
after the effective date specified in such Assignment and Acceptance, the Agent shall make
all payments hereunder and under the Notes in respect of the interest assigned thereby to
the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall
make all appropriate adjustments in such payments for periods prior to such effective date
directly between themselves. 

13 

        (b)             The
Borrower hereby authorizes each Lender, if and to the extent payment owed to
          such Lender is not made when due hereunder or under the Note held by such
          Lender, to charge from time to time against any or all of the Borrower’s
          accounts with such Lender any amount so due. Each Lender that charges an
account           of the Borrower in accordance with this Section agrees to promptly so
notify the           Borrower, provided that the failure to give such notice shall
not affect           the validity of such charge.  

        (c)             All
computations of interest based on the Base Rate shall be made by the Agent           on
the basis of a year of 365 or 366 days, as the case may be, all computations           of
interest based on the Eurodollar Rate or the Federal Funds Rate and of           facility
fees shall be made by the Agent on the basis of a year of 360 days, in           each
case for the actual number of days (including the first day but excluding           the
last day) occurring in the period for which such interest or facility fees           are
payable. Each determination by the Agent of an interest rate hereunder shall           be
conclusive and binding for all purposes, absent manifest error.  

        (d)             Whenever
any payment hereunder or under the Notes shall be stated to be due on a           day
other than a Business Day, such payment shall be made on the next succeeding
          Business Day, and such extension of time shall in such case be included in the
          computation of payment of interest or facility fee, as the case may be; provided,
however, that, if such extension would cause payment of           interest on or
principal of Eurodollar Rate Advances to be made in the next           following calendar
month, such payment shall be made on the next preceding           Business Day.  

        (e)             Unless
the Agent shall have received notice from the Borrower prior to the date           on
which any payment is due to the Lenders hereunder that the Borrower will not
          make such payment in full, the Agent may assume that the Borrower has made such
          payment in full to the Agent on such date and the Agent may, in reliance upon
          such assumption, cause to be distributed to each Lender on such due date an
          amount equal to the amount then due such Lender. If and to the extent the
          Borrower shall not have so made such payment in full to the Agent, each Lender
          shall repay to the Agent forthwith on demand such amount distributed to such
          Lender together with interest thereon, for each day from the date such amount
is           distributed to such Lender until the date such Lender repays such amount to
the           Agent, at the Federal Funds Rate.  

        SECTION
2.14. Taxes. (a) Any and all payments by the Borrower hereunder or under the Notes
shall be made, in accordance with Section 2.13, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case of
each Lender and the Agent, taxes imposed on its overall net income, and franchise taxes
imposed on it in lieu of net income taxes, by the jurisdictions in which such Lender or
the Agent (as the case may be) is otherwise subject to tax (all such non-excluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being hereinafter referred to as “Taxes”).
If the Borrower shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder or under any Note to any Lender or the Agent, (i) the sum payable
shall be increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 2.14)
such Lender or the Agent (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law. 

14 

        (b)            In
addition, the Borrower shall pay any present or future stamp or documentary
          taxes or any other excise or property taxes, charges or similar levies that
          arise from any payment made hereunder or under the Notes or from the execution,
          delivery or registration of, performing under, or otherwise with respect to,
          this Agreement or the Notes (hereinafter referred to as “Other
          Taxes”).  

        (c)            The
Borrower shall indemnify each Lender and the Agent for and hold it harmless
          against the full amount of Taxes or Other Taxes (including, without limitation,
          taxes of any kind imposed by any jurisdiction on amounts payable under this
          Section 2.14) imposed on or paid by such Lender or the Agent (as the case
          may be) and any liability (including penalties, interest and expenses not
          incurred by reason of gross negligence or willful misconduct on the part of
such           Lender or the Agent) arising therefrom or with respect thereto. This
          indemnification shall be made within 30 days from the date such Lender or the
          Agent (as the case may be) makes written demand therefor.  

        (d)            Within
30 days after the date of any payment of Taxes, the Borrower shall           furnish to
the Agent, at its address referred to in Section 8.02(a), the           original or
a certified copy of a receipt evidencing such payment. In the case           of any
payment hereunder or under the Notes by or on behalf of the Borrower           through an
account or branch outside the United States or by or on behalf of the           Borrower
by a payor that is not a United States person, if the Borrower           determines that
no Taxes are payable in respect thereof, the Borrower shall           furnish, or shall
cause such payor to furnish, to the Agent, at such address, an           opinion of
counsel as requested by and acceptable to the Agent stating that such           payment
is exempt from Taxes. For purposes of this subsection (d) and subsection           (e),
the terms “United States” and “United States           person” shall
have the meanings specified in Section 7701 of the           Internal Revenue Code.  

        (e)            Each
Lender organized under the laws of a jurisdiction outside the United           States, on
or prior to the date of its execution and delivery of this Agreement           in the
case of each Initial Lender and on the date of the Assignment and           Acceptance
pursuant to which it becomes a Lender in the case of each other           Lender, and
from time to time thereafter as requested in writing by the Borrower           (but only
so long as such Lender remains lawfully able to do so), shall provide           each of
the Agent and the Borrower with two original Internal Revenue Service           forms W-8BEN
or W-8ECI, as appropriate, or any successor or other form           prescribed by the
Internal Revenue Service, certifying that such Lender is           exempt from or
entitled to a reduced rate of United States withholding tax on           payments
pursuant to this Agreement or the Notes. If the form provided by a           Lender at
the time such Lender first becomes a party to this Agreement indicates           a United
States interest withholding tax rate in excess of zero, withholding tax           at such
rate shall be considered excluded from Taxes unless and until such           Lender
provides the appropriate forms certifying that a lesser rate applies,           whereupon
withholding tax at such lesser rate only shall be considered excluded           from
Taxes for periods governed by such form; provided, however, that, if           at
the date of the Assignment and Acceptance pursuant to which a Lender assignee
          becomes a party to this Agreement, the Lender assignor was entitled to payments
          under subsection (a) in respect of United States withholding tax with
          respect to interest paid at such date, then, to such extent, the term Taxes
          shall include (in addition to withholding taxes that may be imposed in the
          future or other amounts otherwise includable in Taxes) United States
withholding           tax, if any, applicable with respect to the Lender assignee on such
date. In           addition, each Lender agrees that from time to time after the
Effective Date,           when a change in circumstances renders the previous
certification obsolete or           inaccurate in any material respect, it will deliver
to the Borrower and the           Agent two new accurate and complete original signed
copies of Internal Revenue           Service Form W-8BEN or W-8ECI, as the case may be,
and such other forms as may           be required in order to confirm or establish the
entitlement of such Lender to a           continued exemption from or reduction in United
States withholding tax with           respect to payments under this Agreement or any
Note, unless any change in           treaty, law or regulation has occurred after the
date such Lender becomes a           party hereunder which renders all such forms
inapplicable or which would prevent           such Lender from duly completing and
delivering any such form with respect to it           and such Lender so advises the
Borrower and the Agent. If any form or document           referred to in this subsection (e)
requires the disclosure of information,           other than information necessary to
compute the tax payable and information           required on the date hereof by Internal
Revenue Service form W-8BEN or           W-8ECI, that the Lender reasonably
considers to be confidential, the Lender           shall give notice thereof to the
Borrower and shall not be obligated to include           in such form or document such
confidential information.  

        (f)            For
any period with respect to which a Lender has failed to provide the Borrower
          with the appropriate form described in Section 2.14(e) (otherthan if
such failure is due to a change in law occurring subsequent to           the date on
which a form originally was required to be provided, or if such form           otherwise
is not required under subsection (e) above), such Lender shall           not be
entitled to indemnification under Section 2.14(a) or (c) with           respect to
Taxes imposed by the United States by reason of such failure; provided, however,
that should a Lender become subject to Taxes           because of its failure to deliver
a form required hereunder, the Borrower shall           take such steps as the Lender
shall reasonably request to assist the Lender to           recover such Taxes.  

15 

        (g)              Any
Lender claiming any additional amounts payable pursuant to this           Section 2.14
agrees to use reasonable efforts (consistent with its internal           policy and legal
and regulatory restrictions) to change the jurisdiction of its           Eurodollar
Lending Office if the making of such a change would avoid the need           for, or
reduce the amount of, any such additional amounts that may thereafter           accrue
and would not, in the reasonable judgment of such Lender, be otherwise
          disadvantageous to such Lender.  

        SECTION
2.15. Sharing of Payments, Etc. If any Lender shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Advances owing to it (other than pursuant to Section 2.11, 2.14 or
8.04(c)) in excess of its ratable share of payments on account of the Advances obtained by
all the Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Advances owing to them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter recovered
from such purchasing Lender, such purchase from each Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of such
recovery together with an amount equal to such Lender’s ratable share (according to
the proportion of (i) the amount of such Lender’s required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any interest or
other amount paid or payable by the purchasing Lender in respect of the total amount so
recovered. The Borrower agrees that any Lender so purchasing a participation from another
Lender pursuant to this Section 2.15 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of the Borrower in the
amount of such participation. 

        SECTION
2.16. Evidence of Debt. (a) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Advance owing to such Lender from time to time, including the amounts
of principal and interest payable and paid to such Lender from time to time hereunder in
respect of Advances. The Borrower agrees that upon notice by any Lender to the Borrower
(with a copy of such notice to the Agent) to the effect that a Note is required or
appropriate in order for such Lender to evidence (whether for purposes of a permitted
pledge, enforcement or otherwise) the Advances owing to, or to be made by, such Lender,
the Borrower shall promptly execute and deliver to such Lender a Note payable to the order
of such Lender in a principal amount up to the Commitment of such Lender. 

        (b)              The
Register maintained by the Agent pursuant to Section 8.07(d) shall include a
          control account, and a subsidiary account for each Lender, in which accounts
          (taken together) shall be recorded (i) the date and amount of each Borrowing
          made hereunder, the Type of Advances comprising such Borrowing and, if
          appropriate, the Interest Period applicable thereto, (ii) the terms of each
          Assignment and Acceptance delivered to and accepted by it, (iii) the amount of
          any principal or interest due and payable or to become due and payable from the
          Borrower to each Lender hereunder and (iv) the amount of any sum received by
the           Agent from the Borrower hereunder and each Lender’s share thereof.  

        (c)              Entries
made in good faith by the Agent in the Register pursuant to subsection           (b)
above, and by each Lender in its account or accounts pursuant to subsection           (a)
above, shall be primafacie evidence of the amount of           principal
and interest due and payable or to become due and payable from the           Borrower to,
in the case of the Register, each Lender and, in the case of such           account or
accounts, such Lender, under this Agreement, absent manifest error; provided, however,
that the failure of the Agent or such Lender to           make an entry, or any finding
that an entry is incorrect, in the Register or           such account or accounts shall
not limit or otherwise affect the obligations of           the Borrower under this
Agreement.  

        SECTION
2.17. Use of Proceeds. The proceeds of the Advances shall be available (and the
Borrower agrees that it shall use such proceeds) solely for general corporate purposes of
the Borrower and its Subsidiaries, including, without limitation, the payment of cash
consideration required to consummate the Acquisition and to pay costs and expenses related
thereto. 

16 

ARTICLE III 

CONDITIONS TO
EFFECTIVENESS AND LENDING 

        SECTION
3.01. Conditions Precedent to Effectiveness of Section 2.01. Section 2.01 of this
Agreement shall become effective on and as of the first date (the “Effective
Date”) on which the following conditions precedent have been satisfied: 

	 	        (a)                There
shall have occurred no Material Adverse Change since December 31, 2005.  

	 	        (b)                There
shall exist no action, suit, investigation, litigation or proceeding
               affecting the Borrower or any of its Subsidiaries pending or threatened
before                any court, governmental agency or arbitrator that (i) would be
reasonably                likely to have a Material Adverse Effect other than the matters
described on                Schedule 3.01(b) hereto (the “Disclosed Litigation”)
or (ii) purports to affect the legality, validity                or enforceability
of this Agreement or any Note or the consummation of the                transactions
contemplated hereby, and there shall have been no adverse change in                the
status, or financial effect on the Borrower or any of its Subsidiaries, of
               the Disclosed Litigation from that described on Schedule 3.01(b)
hereto.  

	 	        (c)                Nothing
shall have come to the attention of the Lenders during the course of                their
due diligence investigation to lead them to believe that the information
               provided to the Lenders prior to the date hereof was or has become
misleading,                incorrect or incomplete in any material respect; without
limiting the generality                of the foregoing, the Lenders shall have been
given such access to the                management, records, books of account, contracts
and properties of the Borrower                and its Subsidiaries as they shall have
reasonably requested.  

	 	        (d)                All
governmental and third party consents and approvals necessary in connection
               with the transactions contemplated hereby shall have been obtained
(without the                imposition of any conditions that are not acceptable to the
Lenders) and shall                remain in effect, and no law or regulation shall be
applicable in the reasonable                judgment of the Lenders that restrains,
prevents or imposes materially adverse                conditions upon the transactions
contemplated hereby.  

	 	        (e)                The
Borrower shall have notified each Lender and the Agent in writing as to the
               proposed Effective Date.  

	 	        (f)                The
Borrower shall have paid all accrued fees and expenses of the Agent and the
               Lenders (including the accrued fees and expenses of counsel to the Agent
to the                extent invoiced prior to the Effective Date).  

	 	        (g)                On
the Effective Date, the following statements shall be true and the Agent
               shall have received for the account of each Lender a certificate signed by
a                duly authorized officer of the Borrower, dated the Effective Date,
stating that:  

	 	        (i)                The
representations and warranties contained in Section 4.01 are correct on
               and as of the Effective Date, and  

	 	        (ii)               No
event has occurred and is continuing that constitutes a Default.  

	 	        (h)                  The
Agent shall have received on or before the Effective Date the following,
               each dated such day, in form and substance satisfactory to the Agent and
(except                for the Notes) in sufficient copies for each Lender:  

	 	        (i)                  The
Notes to the order of the Lenders to the extent requested by any Lender
               pursuant to Section 2.16.  

17 

	 	        (ii)                   Certified
copies of the resolutions of the Board of Directors of the Borrower
               approving this Agreement and the Notes, and of all documents evidencing
other                necessary corporate action and governmental approvals, if any, with
respect to                this Agreement and the Notes.  

	 	        (iii)                   A
certificate of the Secretary or an Assistant Secretary of the Borrower
               certifying the names and true signatures of the officers of the Borrower
               authorized to sign this Agreement and the Notes and the other documents to
be                delivered hereunder.  

	 	        (iv)                  A
favorable opinion of Susan F. Marrinan, General Counsel of the Borrower, and a
               favorable opinion of Foley & Lardner, counsel to the Borrower,
substantially                in the form of Exhibit D-1 and Exhibit D-2 hereto,
respectively, and as to                such other matters as any Lender through the Agent
may reasonably request.  

	 	        (v)                   A
favorable opinion of Shearman & Sterling LLP, counsel for the Agent,
               in form and substance satisfactory to the Agent.  

        SECTION
3.02. Conditions Precedent to Each Borrowing. The obligation of each Lender to make
an Advance on the occasion of each Borrowing shall be subject to the conditions precedent
that the Effective Date shall have occurred and on the date of such Borrowing (a) the
following statements shall be true (and each of the giving of the applicable Notice of
Borrowing and the acceptance by the Borrower of the proceeds of such Borrowing shall
constitute a representation and warranty by the Borrower that on the date of such
Borrowing such statements are true): 

	 	        (i)                  the
representations and warranties contained in Section 4.01 (except the
               representations set forth in the last sentence of subsection (e)
thereof                and in subsection (f)(i) thereof) are correct on and as of
such date,                before and after giving effect to such Borrowing and to the
application of the                proceeds therefrom, as though made on and as of such
date,  

	 	        (ii)                 no
event has occurred and is continuing, or would result from such Borrowing or
               from the application of the proceeds therefrom, that constitutes a
Default, and  

	 	        (iii)                   after
giving effect to such Borrowing, the aggregate amount of the                Borrower’s
Debt (not including other transactions relating to Snap-on                Credit LLC)
from any bank or financial institution or under any commercial paper
               facility or debt securities or securitization program outstanding will not
               exceed $700,000,000 or, if greater, the amount authorized by resolutions
of the                Board of Directors in effect on the date of such Borrowing;  

and (b) the Agent shall have
received such other approvals, opinions or documents as any Lender through the Agent may
reasonably request. 

        SECTION
3.03. Determinations Under Section 3.01. For purposes of determining compliance
with the conditions specified in Section 3.01, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with each document or other matter
required thereunder to be consented to or approved by or acceptable or satisfactory to the
Lenders unless an officer of the Agent responsible for the transactions contemplated by
this Agreement shall have received notice from such Lender prior to the date that the
Borrower, by notice to the Lenders, designates as the proposed Effective Date, specifying
its objection thereto. The Agent shall promptly notify the Lenders and the Borrower of the
occurrence of the Effective Date. 

ARTICLE IV 

REPRESENTATIONS AND
WARRANTIES 

18 

        SECTION
4.01.  Representations and Warranties of the Borrower.  The Borrower represents and
warrants as follows: 

	 	        (a)                   The
Borrower is a corporation duly organized, validly existing and in good
               standing under the laws of the State of Delaware.  

	 	        (b)                   The
execution, delivery and performance by the Borrower of this Agreement and
               the Notes to be delivered by it, and the consummation of the transactions
               contemplated hereby, are within the Borrower’s corporate powers, have
been                duly authorized by all necessary corporate action, and do not
contravene                (i) the Borrower’s charter or by-laws or (ii) law
or any                contractual restriction binding on or affecting the Borrower.  

	 	        (c)                   No
authorization or approval or other action by, and no notice to or filing
               with, any governmental authority or regulatory body or any other third
party is                required as a condition to the due execution, delivery and
performance by the                Borrower of this Agreement or the Notes to be delivered
by it.  

	 	        (d)                   This
Agreement has been, and each of the Notes to be delivered by it when
               delivered hereunder will have been, duly executed and delivered by the
Borrower.                This Agreement is, and each of the Notes when delivered
hereunder will be, the                legal, valid and binding obligation of the Borrower
enforceable against the                Borrower in accordance with their respective
terms.  

	 	        (e)                   The
Consolidated balance sheet of the Borrower and its Subsidiaries as at
               December 31, 2005, and the related Consolidated statements of income and
cash                flows of the Borrower and its Subsidiaries for the fiscal year then
ended,                accompanied by an opinion of Deloitte & Touche LLP, independent
public                accountants, and the Consolidated balance sheet of the Borrower and
its                Subsidiaries as at September 30, 2006, and the related Consolidated
statements                of income and cash flows of the Borrower and its Subsidiaries
for the nine                months then ended, duly certified by the chief financial
officer of the                Borrower, copies of which have been furnished to each
Lender, fairly present,                subject, in the case of said balance sheet as at
September 30, 2006, and said                statements of income and cash flows for the
nine months then ended, to the                absence of footnotes and to year-end audit
adjustments, the Consolidated                financial condition of the Borrower and its
Subsidiaries as at such dates and                the Consolidated results of the
operations of the Borrower and its Subsidiaries                for the periods ended on
such dates, all in accordance with generally accepted                accounting
principles consistently applied. Since December 31, 2005, there has                been
no Material Adverse Change.  

	 	        (f)                 There
is no pending or threatened action, suit, investigation, litigation or
               proceeding, including, without limitation, any Environmental Action,
affecting                the Borrower or any of its Subsidiaries before any court,
governmental agency or                arbitrator that (i) would be reasonably likely
to have a Material Adverse                Effect (other than the Disclosed Litigation) or
(ii) purports to affect the                legality, validity or enforceability of
this Agreement or any Note or the                consummation of the transactions
contemplated hereby, and there has been no                materially adverse change in
the status, or financial effect on the Borrower or                any of its
Subsidiaries, of the Disclosed Litigation from that described on                Schedule 3.01(b)
hereto.  

	 	        (g)                   The
Borrower is not engaged in the business of extending credit for the purpose
               of purchasing or carrying margin stock (within the meaning of Regulation U
               issued by the Board of Governors of the Federal Reserve System), and no
proceeds                of any Advance will be used to purchase or carry any margin stock
or to extend                credit to others for the purpose of purchasing or carrying
any margin stock.  

	 	        (h)                   The
Borrower is not an “investment company”, or a company                “controlled” by
an “investment company”, within the meaning                of the Investment
Company Act of 1940, as amended.  

ARTICLE V 

COVENANTS OF THE
BORROWER 

19 

        SECTION
 5.01.  Affirmative  Covenants.  So long as any  Advance  shall  remain  unpaid or any
Lender  shall have any Commitment hereunder, the Borrower will: 

	 	        (a)       Compliance
with Laws, Etc. Comply, and cause each of its Material                Subsidiaries to
comply, with all applicable laws, rules, regulations and orders,                such
compliance to include, without limitation, compliance with ERISA and
               Environmental Laws the violation of which would have a Material Adverse
Effect.  

	 	        (b)    Payment
of Taxes, Etc. Pay and discharge, and cause each of its Material
               Subsidiaries to pay and discharge, before the same shall become
delinquent,                (i) all taxes, assessments and governmental charges or
levies imposed upon                it or upon its property and (ii) all lawful
claims that, if unpaid, would                by law become a Lien upon its property
(other than Liens of the type described                in clause (b) of the definition of
“Permitted Liens”); provided, however, that neither the Borrower
nor any of its                Material Subsidiaries shall be required to pay or discharge
any such tax,                assessment, charge or claim that is being contested in good
faith and by proper                proceedings and as to which appropriate reserves are
being maintained, unless                and until any Lien resulting therefrom attaches
to its property and becomes                enforceable against its other creditors.  

	 	        (c)    Maintenance
of Insurance. Maintain, and cause each of its Material                Subsidiaries to
maintain, insurance with responsible and reputable insurance                companies or
associations in such amounts and covering such risks as is usually                carried
by companies engaged in similar businesses and owning similar properties
               in the same general areas in which the Borrower or such Subsidiary
operates; provided, however, that the Borrower and its Subsidiaries may
               self-insure to the same extent as other companies engaged in similar
businesses                and owning similar properties in the same general areas in
which the Borrower or                such Subsidiary operates and to the extent
consistent with prudent business                practice.  

	 	        (d)    Preservation
of Corporate Existence, Etc. Preserve and maintain, and                cause each of
its Material Subsidiaries to preserve and maintain, its corporate
               existence, rights (charter and statutory) and franchises; provided,
however, that the Borrower and such Subsidiaries may consummate any
               transaction permitted under Section 5.02(b) and provided further that
neither the Borrower nor any of its Material Subsidiaries                shall be
required to preserve any right or franchise if the Board of Directors                of
the Borrower or such Subsidiary shall determine that the preservation thereof
               is no longer desirable in the conduct of the business of the Borrower or
such                Subsidiary, as the case may be, and that the loss thereof is not
disadvantageous                in any material respect to the Borrower, such Subsidiary
or the Lenders.  

	 	        (e)    Visitation
Rights. At any reasonable time and from time to time and, so                long as
no Default has occurred and is continuing, upon reasonable notice,                permit
the Agent or any of the Lenders or any agents or representatives thereof,
               to examine and make copies of and abstracts from the records and books of
               account of, and visit the properties of, the Borrower and any of its
Material                Subsidiaries, and to discuss the affairs, finances and accounts
of the Borrower                and any of its Material Subsidiaries with any of their
officers or directors and                with their independent certified public
accountants.  

	 	        (f)    Keeping
of Books. Keep, and cause each of its Material Subsidiaries to                keep,
proper books of record and account, in which full and correct entries
               shall be made of all financial transactions and the assets and business of
the                Borrower and each such Subsidiary in accordance with generally
accepted                accounting principles in effect from time to time.  

	 	        (g)    Maintenance
of Properties, Etc. Maintain and preserve, and cause each of                its
Material Subsidiaries to maintain and preserve, all of its properties that
               are used or useful in the conduct of its business in good working order
and                condition, ordinary wear and tear excepted.  

20 

	 	        (h)    Transactions
with Affiliates. Conduct, and cause each of its Material                Subsidiaries
to conduct, all transactions otherwise permitted under this                Agreement with
any of their Affiliates other than the Borrower or a wholly-owned
               Subsidiary of the Borrower on terms that are fair and reasonable and no
less                favorable to the Borrower or such Subsidiary than it would obtain in
a                comparable arm’s-length transaction with a Person not an Affiliate,
               provided that the Borrower and its Subsidiaries may transact business with
               Snap-On Credit LLC on a basis consistent with past practice.  

	 	        (i)    Reporting
Requirements. Furnish to the Agent:  

	 	        (i)                   as
soon as available and in any event within 60 days after the end of each of
               the first three quarters of each fiscal year of the Borrower, the
Consolidated                balance sheet of the Borrower and its Subsidiaries as of the
end of such quarter                and Consolidated statements of income and cash flows
of the Borrower and its                Subsidiaries for the period commencing at the end
of the previous fiscal year                and ending with the end of such quarter, duly
certified (subject to the absence                of footnotes and to year-end audit
adjustments) by the chief financial officer                or treasurer of the Borrower
as having been prepared in accordance with                generally accepted accounting
principles and certificates of the chief financial                officer or treasurer of
the Borrower as to compliance with the terms of this                Agreement and setting
forth in reasonable detail the calculations necessary to                demonstrate
compliance with Section 5.03, provided that in the event                of
any change in GAAP used in the preparation of such financial statements, the
               Borrower shall also provide, if necessary for the determination of
compliance                with Section 5.03, a statement of reconciliation
conforming such financial                statements to GAAP;  

	 	        (ii)                    as
soon as available and in any event within 120 days after the end of each
               fiscal year of the Borrower, a copy of the annual audit report for such
year for                the Borrower and its Subsidiaries, containing the Consolidated
balance sheet of                the Borrower and its Subsidiaries as of the end of such
fiscal year and                Consolidated statements of income and cash flows of the
Borrower and its                Subsidiaries for such fiscal year, in each case
accompanied by an opinion                acceptable to the Required Lenders by Deloitte
& Touche LLP or other                independent public accountants acceptable to the
Required Lenders and                certificates of the chief financial officer or
treasurer of the Borrower as to                compliance with the terms of this
Agreement and setting forth in reasonable                detail the calculations
necessary to demonstrate compliance with                Section 5.03, provided that
in the event of any change in GAAP used                in the preparation of such
financial statements, the Borrower shall also                provide, if necessary for
the determination of compliance with Section 5.03, a                statement of
reconciliation conforming such financial statements to GAAP;  

	 	        (iii)                  as
soon as possible and in any event within five Business Days after an
               executive office of the Borrower knows or should have known of the
occurrence of                each Default continuing on the date of such statement, a
statement of the chief                financial officer or treasurer of the Borrower
setting forth details of such                Default and the action that the Borrower has
taken and proposes to take with                respect thereto;  

	 	        (iv)                  promptly
after the sending or filing thereof, copies of all reports that the
               Borrower sends to any of its securityholders as such, and copies of all
reports                on Forms 10-K, 10-Q and 8-K (or their equivalents) and
registration statements                (other than the exhibits thereto) that the
Borrower or any Subsidiary files with                the Securities and Exchange
Commission or any national securities exchange;  

	 	        (v)                   promptly
after the commencement thereof, notice of all actions and proceedings
               before any court, governmental agency or arbitrator affecting the Borrower
or                any of its Subsidiaries of the type described in Section 4.01(f);  

	 	        (vi)                   promptly
after the adoption thereof, notice of the increased amount of the                Borrower’s
Debt (not including other transactions relating to Snap-on                Credit LLC)
from any bank or financial institution or under any commercial paper
               facility or debt securities or securitization program authorized to be
               outstanding, together with certified copies of the resolutions of the
Board of                Directors of the Borrower approving such increase; and  

21 

	 	        (vii)                   such
other information respecting the Borrower or any of its Subsidiaries as any
               Lender through the Agent may from time to time reasonably request.  

        SECTION
 5.02.  Negative  Covenants.  So long as any  Advance  shall  remain  unpaid  or any
 Lender  shall  have any Commitment hereunder, the Borrower will not: 

          		    (a)    
               Liens, Etc. Create or suffer to exist, or permit any of its Material
               Subsidiaries to create or suffer to exist, any Lien on or with respect to any of
               its properties, whether now owned or hereafter acquired, or assign, or permit
               any of its Material Subsidiaries to assign, any right to receive income, other
               than: 

               

	 	        (i)    
     Permitted Liens, 

	 	        (ii)                   purchase
money Liens upon or in any real property or equipment acquired or held                by
the Borrower or any Material Subsidiary in the ordinary course of business to
               secure the purchase price of such property or equipment or to secure Debt
               incurred solely for the purpose of financing the acquisition of such
property or                equipment, or Liens existing on such property or equipment at
the time of its                acquisition (other than any such Liens created in
contemplation of such                acquisition that were not incurred to finance the
acquisition of such property)                or extensions, renewals or replacements of
any of the foregoing for the same or                a lesser amount, provided, however,
that no such Lien shall extend                to or cover any properties of any character
other than the real property or                equipment being acquired (and related
property), and no such extension, renewal                or replacement shall extend to
or cover any properties not theretofore subject                to the Lien being
extended, renewed or replaced, providedfurther               that the
aggregate principal amount of the indebtedness secured by the Liens
               referred to in this clause (ii) shall not exceed $50,000,000,  

	 	        (iii)                   the
Liens existing on the Effective Date and described on Schedule 5.02(a)
               hereto,  

	 	        (iv)                   Liens
on (or assignments of) property of a Person existing at the time such
               Person is merged into or consolidated with the Borrower or any Material
               Subsidiary of the Borrower or becomes a Material Subsidiary of the
Borrower; provided that such Liens or assignments were not created in
contemplation                of such merger, consolidation or acquisition and do not
extend to any assets                other than those of the Person so merged into or
consolidated with the Borrower                or such Subsidiary or acquired by the
Borrower or such Subsidiary,  

	 	        (v)                   other
Liens or assignments securing Debt and other obligations in an aggregate
               principal amount not to exceed $50,000,000 at any time outstanding,  

	 	        (vi)                    Liens
or assignments arising in connection with a Permitted Receivables
               Financing,  

	 	        (vii)                   the
replacement, extension or renewal of any Lien or assignment permitted by
               clause (iii) or (iv) above upon or in the same property theretofore
subject                thereto or the replacement, extension or renewal (without increase
in the amount                or change in any direct or contingent obligor) of the Debt
or other obligation                secured thereby, and  

	 	        (viii)                  Liens
on proceeds of any of the assets permitted to be the subject of any Lien
               or assignment permitted by this Section 5.02(a).  

22 

	 	        (b)    Mergers,
Etc. Merge or consolidate with or into, or convey, transfer,                lease or
otherwise dispose of (whether in one transaction or in a series of
               transactions) all or substantially all of its assets (whether now owned or
               hereafter acquired) to, any Person, or permit any of its Material
Subsidiaries                to do so, except that (i) any Material Subsidiary of the
Borrower may merge or                consolidate with or into, or transfer, convey or
dispose of assets to, any other                Subsidiary of the Borrower, (ii) any
Material Subsidiary of the Borrower may                merge into or transfer, convey or
dispose of assets to the Borrower and (iii)                the Borrower may merge into a
wholly owned Subsidiary of the Borrower that has                no material assets or
liabilities for the sole purpose of changing the state of                incorporation of
the Borrower if the surviving corporation shall expressly                assume the
liabilities of the Borrower under this Agreement and the Notes, provided, in each
case, that no Default shall have occurred and be                continuing at the time of
such proposed transaction or would result therefrom                and provided,
further, that the foregoing shall not restrict the                Borrower or its
Material Subsidiaries in respect of dispositions of inventory or                obsolete
equipment in the ordinary course of business or in respect of any
               Permitted Receivables Financing.  

	 	        (c)    Accounting
Changes. Make or permit, or permit any of its Material                Subsidiaries to
make or permit, any change in accounting policies or reporting                practices,
except as required or permitted by generally accepted accounting
               principles.  

	 	        (d)    Change
in Nature of Business. Make, or permit any of its Material
               Subsidiaries to make, any material change in the nature of the business of
the                Borrower and its Subsidiaries taken as a whole as carried on at the
date hereof.  

        SECTION
5.03. Financial Covenant. So long as any Advance shall remain unpaid or any Lender
shall have any Commitment hereunder, the Borrower will maintain a ratio of Consolidated
Debt to the sum of Consolidated Debt plus shareholders’ equity of not greater than
0.60:1.00. 

ARTICLE VI 

EVENTS OF DEFAULT 

        SECTION
 6.01.  Events  of  Default.  If any of the  following  events  ("Events  of  Default")
 shall  occur  and be continuing: 

	 	        (a)                   The
Borrower shall fail to pay any principal of any Advance when the same
               becomes due and payable; or the Borrower shall fail to pay any interest on
any                Advance or make any other payment of fees or other amounts payable
under this                Agreement or any Note within three Business Days after the same
becomes due and                payable; or  

	 	        (b)                   Any
representation or warranty made by the Borrower herein or by the Borrower
               (or any of its officers) in connection with this Agreement shall prove to
have                been incorrect in any material respect when made; or  

	 	        (c)                   (i) The
Borrower shall fail to perform or observe any term, covenant or                agreement
contained in Section 5.01(d), (e) or (i), 5.02 or 5.03, or                (ii) the
Borrower shall fail to perform or observe any other term, covenant                or
agreement contained in this Agreement on its part to be performed or observed
               if such failure shall remain unremedied for 30 days after written notice
thereof                shall have been given to the Borrower by the Agent or any Lender;
or  

	 	        (d)                   The
Borrower or any of its Subsidiaries shall fail to pay any principal of or
               premium or interest on any Debt that is outstanding in a principal or net
amount                of at least $50,000,000 in the aggregate (but excluding Debt
outstanding                hereunder) of the Borrower or such Subsidiary (as the case may
be), when the                same becomes due and payable (whether by scheduled maturity,
required                prepayment, acceleration, demand or otherwise), and such failure
shall continue                after the applicable grace period, if any, specified in the
agreement or                instrument relating to such Debt; or any other event shall
occur or condition                shall exist under any agreement or instrument relating
to any such Debt and                shall continue after the applicable grace period, if
any, specified in such                agreement or instrument, if the effect of such
event or condition is to                accelerate, or to permit the acceleration of, the
maturity of such Debt; or any                such Debt shall be declared to be due and
payable, or required to be prepaid or                redeemed (other than by a regularly
scheduled required prepayment or                redemption), purchased or defeased, or an
offer to prepay, redeem, purchase or                defease such Debt shall be required
to be made, in each case prior to the stated                maturity thereof; or  

23 

	 	        (e)                 The
Borrower or any of its Material Subsidiaries shall generally not pay its
               debts as such debts become due, or shall admit in writing its inability to
pay                its debts generally, or shall make a general assignment for the
benefit of                creditors; or any proceeding shall be instituted by or against
the Borrower or                any of its Material Subsidiaries seeking to adjudicate it
a bankrupt or                insolvent, or seeking liquidation, winding up,
reorganization, arrangement,                adjustment, protection, relief, or
composition of it or its debts under any law                relating to bankruptcy,
insolvency or reorganization or relief of debtors, or                seeking the entry of
an order for relief or the appointment of a receiver,                trustee, custodian
or other similar official for it or for any substantial part                of its
property and, in the case of any such proceeding instituted against it
               (but not instituted by it), either such proceeding shall remain
undismissed or                unstayed for a period of 60 days, or any of the actions
sought in such                proceeding (including, without limitation, the entry of an
order for relief                against, or the appointment of a receiver, trustee,
custodian or other similar                official for, it or for any substantial part of
its property) shall occur; or                the Borrower or any of its Material
Subsidiaries shall take any corporate action                to authorize any of the
actions set forth above in this subsection (e); or  

	 	        (f)                 Judgments
or orders for the payment of money in excess of $50,000,000 in the
               aggregate shall be rendered against the Borrower or any of its Material
               Subsidiaries with respect to which (i) enforcement proceedings shall
have                been commenced by any creditor upon such judgments or orders or (ii) there
               shall be any period of 10 consecutive days during which a stay of
enforcement of                such judgments or orders, by reason of a pending appeal or
otherwise, shall not                be in effect; provided, however, that
any such judgment or order                shall not be an Event of Default or included in
the calculation of the aggregate                amount of judgments or orders under this
Section 6.01(f) if and for so long                as (i) the amount of such
judgment or order is covered by a valid and                binding policy of insurance
between the defendant and the insurer covering                payment thereof and (ii) such
insurer, which shall be rated at least                “A” by A.M. Best Company,
has been notified of, and has not disputed                the claim made for payment of,
the amount of such judgment or order; or  

	 	        (g)                 Any
non-monetary judgment or order shall be rendered against the Borrower or any
               of its Subsidiaries that would be reasonably expected to have a Material
Adverse                Effect, and there shall be any period of 10 consecutive days
during which a stay                of enforcement of such judgment or order, by reason of
a pending appeal or                otherwise, shall not be in effect; or  

	 	        (h)                 (i) Any
Person or two or more Persons acting in concert (other than any                Related
Person) shall have acquired beneficial ownership (within the meaning of
               Rule 13d-3 of the Securities and Exchange Commission under the
Securities                Exchange Act of 1934), directly or indirectly, of Voting Stock
of the Borrower                (or other securities convertible into such Voting Stock)
representing 30% or                more of the combined voting power of all Voting Stock
of the Borrower; or                (ii) during any period of up to 12 consecutive
calendar months, commencing                after the date of this Agreement, individuals
who at the beginning of such                12-month period were directors of the
Borrower shall cease for any reason to                constitute a majority of the board
of directors of the Borrower (except to the                extent that individuals who at
the beginning of such 12-month period were                replaced by individuals (x) elected
by a majority of the remaining members                of the board of directors of the
Borrower or (y) nominated for election by                a majority of the remaining
members of the board of directors of the Borrower                and thereafter elected
as directors by the shareholders of the Borrower); or  

	 	        (i)                 The
Borrower or any of its ERISA Affiliates shall incur, or shall be reasonably
               likely to incur liability in excess of $50,000,000 in the aggregate as a
result                of one or more of the following: (i) the occurrence of any
ERISA Event;                (ii) the partial or complete withdrawal of the Borrower
or any of its ERISA                Affiliates from a Multiemployer Plan; or (iii) the
reorganization or                termination of a Multiemployer Plan;  

24 

then, and in any such event, the
Agent (i) shall at the request, or may with the consent, of the Required Lenders, by
notice to the Borrower, declare the obligation of each Lender to make Advances to be
terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the Borrower,
declare the Advances, all interest thereon and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Advances, all such interest and
all such amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly waived by
the Borrower; provided, however, that in the event of an actual or deemed
entry of an order for relief with respect to the Borrower under the Federal Bankruptcy
Code, (A) the obligation of each Lender to make Advances shall automatically be
terminated and (B) the Advances, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by the Borrower. 

ARTICLE VII 

THE AGENT 

        SECTION
7.01. Authorization and Action. Each Lender hereby appoints and authorizes the
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under this Agreement as are delegated to the Agent by the terms hereof,
together with such powers and discretion as are reasonably incidental thereto. As to any
matters not expressly provided for by this Agreement (including, without limitation,
enforcement or collection of the Notes), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, and such instructions shall be binding upon all Lenders and all
holders of Notes; provided, however, that the Agent shall not be required to
take any action that exposes the Agent to personal liability or that is contrary to this
Agreement or applicable law. The Agent agrees to give to each Lender prompt notice of each
notice given to it by the Borrower pursuant to the terms of this Agreement. 

        SECTION
7.02. Agent’s Reliance, Etc. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken
by it or them under or in connection with this Agreement, except for its or their own
gross negligence or willful misconduct. Without limitation of the generality of the
foregoing, the Agent: (i) may treat the Lender that made any Advance as the holder of
the Debt resulting therefrom until the Agent receives and accepts an Assignment and
Acceptance entered into by such Lender, as assignor, and an Eligible Assignee, as
assignee, as provided in Section 8.07; (ii) may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants or experts;
(iii) makes no warranty or representation to any Lender and shall not be responsible
to any Lender for any statements, warranties or representations (whether written or oral)
made in or in connection with this Agreement; (iv) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms, covenants
or conditions of this Agreement on the part of the Borrower or to inspect the property
(including the books and records) of the Borrower; (v) shall not be responsible to
any Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document furnished
pursuant hereto; and (vi) shall incur no liability under or in respect of this
Agreement by acting upon any notice, consent, certificate or other instrument or writing
(which may be by telecopier or telegram) believed by it to be genuine and signed or sent
by the proper party or parties. 

        SECTION
7.03. Citibank and Affiliates. With respect to its Commitment, the Advances made by
it and the Note issued to it, Citibank shall have the same rights and powers under this
Agreement as any other Lender and may exercise the same as though it were not the Agent;
and the term “Lender” or “Lenders” shall, unless otherwise expressly
indicated, include Citibank in its individual capacity. Citibank and its Affiliates may
accept deposits from, lend money to, act as trustee under indentures of, accept investment
banking engagements from and generally engage in any kind of business with, the Borrower,
any of its Subsidiaries and any Person who may do business with or own securities of the
Borrower or any such Subsidiary, all as if Citibank were not the Agent and without any
duty to account therefor to the Lenders. The Agent shall have no duty to disclose any
information obtained or received by it or any of its Affiliates relating to the Borrower
or any of its Subsidiaries to the extent such information was obtained or received in any
capacity other than as Agent. In the event that Citibank or any of its Affiliates shall be
or become an indenture trustee under the Trust Indenture Act of 1939 (as amended, the
“Trust Indenture Act”) in respect of any securities issued or guaranteed
by the Borrower, the parties hereto acknowledge and agree that any payment or property
received in satisfaction of or in respect of any obligation of the Borrower hereunder by
or on behalf of Citibank in its capacity as the Agent for the benefit of any Lender under
this Agreement or any Note (other than Citibank or an Affiliate of Citibank) and which is
applied in accordance with this Agreement shall be deemed to be exempt from the
requirements of Section 311 of the Trust Indenture Act pursuant to Section 311(b)(3) of
the Trust Indenture Act. 

25 

        SECTION
7.04. Lender Credit Decision. Each Lender acknowledges that it has, independently
and without reliance upon the Agent or any other Lender and based on the financial
statements referred to in Section 4.01 and such other documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without reliance
upon the Agent or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under this Agreement. 

        SECTION
7.05. Indemnification. The Lenders agree to indemnify the Agent (to the extent not
reimbursed by the Borrower), ratably according to the respective principal amounts of the
Advances then owed to each of them (or if no Advances are at the time outstanding, ratably
according to the respective amounts of their Commitments), from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against the Agent in any way relating to or arising out of this
Agreement or any action taken or omitted by the Agent under this Agreement (collectively,
the “Indemnified Costs”), provided that no Lender shall be liable
for any portion of the Indemnified Costs resulting from the Agent’s gross negligence
or willful misconduct. Without limitation of the foregoing, each Lender agrees to
reimburse the Agent promptly upon demand for its ratable share of any out-of-pocket
expenses (including reasonable counsel fees) incurred by the Agent in connection with the
preparation, execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal advice in
respect of rights or responsibilities under, this Agreement, to the extent that the Agent
is not reimbursed for such expenses by the Borrower. In the case of any investigation,
litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05
applies whether any such investigation, litigation or proceeding is brought by the Agent,
any Lender or a third party. 

        SECTION
7.06. Successor Agent. The Agent may resign at any time by giving written notice
thereof to the Lenders and the Borrower and may be removed at any time with or without
cause by the Required Lenders. Upon any such resignation or removal, the Required Lenders
shall have the right to appoint a successor Agent with the consent, not to be unreasonably
withheld or delayed, of the Borrower so long as no Default has occurred and is continuing.
If no successor Agent shall have been so appointed by the Required Lenders, and shall have
accepted such appointment, within 30 days after the retiring Agent’s giving of notice
of resignation or the Required Lenders’ removal of the retiring Agent, then the
retiring Agent may, on behalf of the Lenders and with the consent, not to be unreasonably
withheld or delayed, of the Borrower so long as no Default has occurred and is continuing,
appoint a successor Agent, which shall be a commercial bank organized under the laws of
the United States of America or of any State thereof and having a combined capital and
surplus of at least $500,000,000. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, discretion, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and obligations under
this Agreement. After any retiring Agent’s resignation or removal hereunder as Agent,
the provisions of this Article VII shall inure to its benefit as to any actions taken
or omitted to be taken by it while it was Agent under this Agreement. 

        SECTION
7.07. Other Agents. Each Lender hereby acknowledges that the syndication agent has
no liability hereunder other than in its capacity as a Lender. 

26 

ARTICLE VIII 

MISCELLANEOUS 

        SECTION
8.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or
the Notes, nor consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Required Lenders, and then
such waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that no amendment,
waiver or consent shall, unless in writing and signed by all the Lenders, do any of the
following: (a) waive any of the conditions specified in Section 3.01,
(b) increase the Commitments of the Lenders or subject the Lenders to any additional
obligations, (c) reduce the principal of, or interest on, the Advances or any fees or
other amounts payable hereunder, (d) postpone any date fixed for any payment of
principal of, or interest on, the Advances or any fees or other amounts payable hereunder,
(e) change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Advances, or the number of Lenders, that shall be required for the Lenders
or any of them to take any action hereunder or (f) amend this Section 8.01; and
provided further that no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Lenders required above to take such
action, affect the rights or duties of the Agent under this Agreement or any Note. 

        SECTION
8.02. Notices, Etc. (a) All notices and other communications provided for hereunder
shall be (x) in writing (including telecopier or telegraphic communication) and sent by
reputable overnight courier, telecopied, telegraphed or delivered or (y) as and to the
extent set forth in Section 8.02(b) and in the proviso to this Section 8.02(a), if to the
Borrower, at its address at 2801 80th Street, Kenosha, Wisconsin 53143,
Attention: Martin M. Ellen, Senior Vice President and Chief Financial Officer, and Jeffrey
F. Kostrzewa, Director Treasury Operations and Finance, with copies to 2801
80th Street, Kenosha, Wisconsin 53143, Attention: Susan F. Marrinan, General
Counsel; if to any Initial Lender, at its Domestic Lending Office specified opposite its
name on Schedule I hereto; if to any other Lender, at its Domestic Lending Office
specified in the Assignment and Acceptance pursuant to which it became a Lender; and if to
the Agent, at its address at Two Penns Way, New Castle, Delaware 19720, Attention: Bank
Loan Syndications Department; or, as to the Borrower or the Agent, at such other address
as shall be designated by such party in a written notice to the other parties and, as to
each other party, at such other address as shall be designated by such party in a written
notice to the Borrower and the Agent, provided that materials required to be
delivered pursuant to Section 5.01(i)(i), (ii) or (iv) shall be delivered to the Agent as
specified in Section 8.02(b) or as otherwise specified to the Borrower by the Agent. All
such notices and communications shall, when mailed, telecopied, telegraphed or e-mailed,
be effective when deposited in the mails, telecopied, delivered to the telegraph company
or confirmed by e-mail, respectively, except that notices and communications to the Agent
pursuant to Article II, III or VII shall not be effective until received by the
Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed and
delivered hereunder shall be effective as delivery of a manually executed counterpart
thereof. 

        (b)             So
long as Citibank or any of its Affiliates is the Agent, notwithstanding
          anything to the contrary herein, materials required to be delivered pursuant to
          Section 5.01(i)(i), (ii) and (iv) shall be delivered to the Agent in an
          electronic medium in a format acceptable to the Agent and the Lenders by e-mail
          at oploanswebadmin@citigroup.com. The Borrower agrees that the Agent may make
          such materials, as well as any other written information, documents,
instruments           and other material relating to the Borrower, any of its
Subsidiaries or any           other materials or matters relating to this Agreement, the
Notes or any of the           transactions contemplated hereby (collectively, the
          “Communications”) available to the Lenders by posting such
          Communications on Intralinks or a substantially similar electronic system (the
          “Platform”). The Borrower acknowledges that (i) the
          distribution of material through an electronic medium is not necessarily secure
          and that there are confidentiality and other risks associated with such
          distribution, (ii) the Platform is provided “as is” and “as
          available” and (iii) neither the Agent nor any of its Affiliates warrants
          the accuracy, adequacy or completeness of the Communications or the Platform
and           each expressly disclaims liability for errors or omissions in the
Communications           or the Platform. No warranty of any kind, express, implied or
statutory,           including, without limitation, any warranty of merchantability,
fitness for a           particular purpose, non-infringement of third party rights or
freedom from           viruses or other code defects, is made by the Agent or any of its
Affiliates in           connection with the Platform.  

        (c)             Each
Lender agrees that any notice to it (as provided in the next sentence) (a           “Notice”)
specifying that any Communications have been posted           to the Platform shall
constitute effective delivery of such information,           documents or other materials
to such Lender for purposes of this Agreement; provided that if requested by any
Lender the Agent shall deliver a copy           of the Communications to such Lender by
email or telecopier. Each Lender agrees           (i) to notify the Agent in writing of
such Lender’s e-mail address to which           a Notice may be sent by electronic
transmission (including by electronic           communication) on or before the date such
Lender becomes a party to this           Agreement (and from time to time thereafter to
ensure that the Agent has on           record an effective e-mail address for such
Lender) and (ii) that any Notice may           be sent to such e-mail address.  

27 

        SECTION
8.03. No Waiver; Remedies. No failure on the part of any Lender or the Agent to
exercise, and no delay in exercising, any right hereunder or under any Note shall operate
as a waiver thereof; nor shall any single or partial exercise of any such right preclude
any other or further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by law. 

        SECTION
8.04. Costs and Expenses. (a) The Borrower agrees to pay promptly (and in any event
within 10 days) after demand all costs and expenses of the Agent in connection with the
preparation, execution, delivery, administration, modification and amendment of this
Agreement, the Notes and the other documents to be delivered hereunder, including, without
limitation, (A) all due diligence, syndication (including printing, distribution and
bank meetings), transportation, computer, duplication, appraisal, consultant, and audit
expenses and (B) the reasonable fees and expenses of counsel for the Agent with
respect thereto and with respect to advising the Agent as to its rights and
responsibilities under this Agreement. The Borrower further agrees to pay on demand all
costs and expenses of the Agent and the Lenders, if any (including, without limitation,
reasonable counsel fees and expenses), in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the Notes and the other
documents to be delivered hereunder, including, without limitation, reasonable fees and
expenses of counsel for the Agent and each Lender in connection with the enforcement of
rights under this Section 8.04(a). 

        (b)             The
Borrower agrees to indemnify and hold harmless the Agent and each Lender and
          each of their Affiliates and their officers, directors, employees, agents and
          advisors (each, an “Indemnified Party”) from and against any
          and all claims, damages, losses, liabilities and expenses (including, without
          limitation, reasonable fees and expenses of counsel) incurred by or asserted or
          awarded against any Indemnified Party, in each case arising out of or in
          connection with or by reason of (including, without limitation, in connection
          with any investigation, litigation or proceeding or preparation of a defense in
          connection therewith) (i) the Notes, this Agreement, any of the
          transactions contemplated herein or the actual or proposed use of the proceeds
          of the Advances or (ii) the actual or alleged presence of Hazardous
          Materials on any property of the Borrower or any of its Subsidiaries, except to
          the extent (x) such claim, damage, loss, liability or expense resulted from
such           Indemnified Party’s gross negligence or willful misconduct, (y) such
claim,           damage, loss, liability or expense arises from a litigation or
proceeding among           Lenders or (z) except to the extent payable under Section
8.04(a), such claim,           damage loss, liability or expense arises in connection
with the preparation,           execution, delivery, administration, modification or
amendment of this           Agreement. In the case of an investigation, litigation or
other proceeding to           which the indemnity in this Section 8.04(b) applies, such
indemnity shall be           effective whether or not such investigation, litigation or
proceeding is brought           by the Borrower, its directors, shareholders or creditors
or an Indemnified           Party or any other Person or any Indemnified Party is
otherwise a party thereto           and whether or not the transactions contemplated
hereby are consummated. The           Borrower also agrees not to assert any claim for
special, indirect,           consequential or punitive damages against the Agent, any
Lender, any of their           Affiliates, or any of their respective directors,
officers, employees, attorneys           and agents, on any theory of liability, arising
out of or otherwise relating to           the Notes, this Agreement, any of the
transactions contemplated herein or the           actual or proposed use of the proceeds
of the Advances.  

        (c)             If
any payment of principal of, or Conversion of, any Eurodollar Rate Advance is
          made by the Borrower to or for the account of a Lender other than on the last
          day of the Interest Period for such Advance, as a result of a payment or
          Conversion pursuant to Section 2.08(d) or (e), 2.10 or 2.12, acceleration
          of the maturity of the Notes pursuant to Section 6.01 or for any other
          reason, or by an Eligible Assignee to a Lender other than on the last day of
the           Interest Period for such Advance upon an assignment of rights and
obligations           under this Agreement pursuant to Section 8.07 as a result of a
demand by           the Borrower pursuant to Section 8.07(a), the Borrower shall,
upon demand           by such Lender (with a copy of such demand to the Agent), pay to
the Agent for           the account of such Lender any amounts required to compensate
such Lender for           any additional losses, costs or expenses that it may reasonably
incur as a           result of such payment or Conversion, including, without limitation,
any loss           (including loss of anticipated profits), cost or expense incurred by
reason of           the liquidation or reemployment of deposits or other funds acquired
by any           Lender to fund or maintain such Advance.  

28 

        (d)              Without
prejudice to the survival of any other agreement of the Borrower           hereunder, the
agreements and obligations of the Borrower contained in           Sections 2.11,
2.14 and 8.04 shall survive the payment in full of           principal, interest and all
other amounts payable hereunder and under the Notes.  

        SECTION
8.05. Right of Set-off. Upon (i) the occurrence and during the continuance of
any Event of Default and (ii) the making of the request or the granting of the
consent specified by Section 6.01 to authorize the Agent to declare the Notes due and
payable pursuant to the provisions of Section 6.01, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by
such Lender or such Affiliate (but not including any insurance premiums) to or for the
credit or the account of the Borrower against any and all of the obligations of the
Borrower now or hereafter existing under this Agreement and the Note held by such Lender,
whether or not such Lender shall have made any demand under this Agreement or such Note
and although such obligations may be unmatured. Each Lender agrees promptly to notify the
Borrower after any such set-off and application, provided that the failure to give
such notice shall not affect the validity of such set-off and application. The rights of
each Lender and its Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such Lender and its
Affiliates may have. 

        SECTION
8.06. Binding Effect. This Agreement shall become effective (other than
Section 2.01, which shall only become effective upon satisfaction of the conditions
precedent set forth in Section 3.01) when it shall have been executed by the Borrower
and the Agent and when the Agent shall have been notified by each Initial Lender that such
Initial Lender has executed it and thereafter shall be binding upon and inure to the
benefit of the Borrower, the Agent and each Lender and their respective successors and
assigns, except that the Borrower shall not have the right to assign its rights hereunder
or any interest herein without the prior written consent of the Lenders. 

        SECTION
8.07. Assignments and Participations. (a) Each Lender may and, if demanded by the
Borrower (so long as no Default shall have occurred and be continuing and following a
demand by such Lender pursuant to Section 2.11 or 2.14 or a notice given by such
Lender pursuant to Section 2.12) upon at least five Business Days’ notice to such
Lender and the Agent, will assign to one or more Persons all or a portion of its rights
and obligations under this Agreement (including, without limitation, all or a portion of
its Commitment, the Advances owing to it and the Note or Notes held by it);
provided, however, that (i) each such assignment shall be of a
constant, and not a varying, percentage of all rights and obligations under this
Agreement, (ii) except in the case of an assignment to a Person that, immediately
prior to such assignment, was a Lender or an assignment of all of a Lender’s rights
and obligations under this Agreement, the amount of the Commitment of the assigning Lender
being assigned pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be less than
$10,000,000 or an integral multiple of $1,000,000 in excess thereof, (iii) each such
assignment shall be to an Eligible Assignee, (iv) each such assignment made as a result of
a demand by the Borrower pursuant to this Section 8.07(a) shall be arranged by the
Borrower after consultation with the Agent and shall be either an assignment of all of the
rights and obligations of the assigning Lender under this Agreement or an assignment of a
portion of such rights and obligations made concurrently with another such assignment or
other such assignments that together cover all of the rights and obligations of the
assigning Lender under this Agreement, (v) no Lender shall be obligated to make any
such assignment as a result of a demand by the Borrower pursuant to this
Section 8.07(a) unless and until such Lender shall have received one or more payments
from either the Borrower or one or more Eligible Assignees in an aggregate amount at least
equal to the aggregate outstanding principal amount of the Advances owing to such Lender,
together with accrued interest thereon to the date of payment of such principal amount and
all other amounts payable to such Lender under this Agreement, and (vi) the parties
to each such assignment shall execute and deliver to the Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance, together with any Note subject to
such assignment and a processing and recordation fee of $3,500. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified in each
Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto and,
to the extent that rights and obligations hereunder have been assigned to it pursuant to
such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and
(y) the Lender assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish
its rights and be released from its obligations under this Agreement (and, in the case of
an Assignment and Acceptance covering all or the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto). 

29 

        (b)              By
executing and delivering an Assignment and Acceptance, the Lender assignor
          thereunder and the assignee thereunder confirm to and agree with each other and
          the other parties hereto as follows: (i) other than as provided in such
          Assignment and Acceptance, such assigning Lender makes no representation or
          warranty and assumes no responsibility with respect to any statements,
          warranties or representations made in or in connection with this Agreement or
          the execution, legality, validity, enforceability, genuineness, sufficiency or
          value of this Agreement or any other instrument or document furnished pursuant
          hereto; (ii) such assigning Lender makes no representation or warranty and
          assumes no responsibility with respect to the financial condition of the
          Borrower or the performance or observance by the Borrower of any of its
          obligations under this Agreement or any other instrument or document furnished
          pursuant hereto; (iii) such assignee confirms that it has received a copy
          of this Agreement, together with copies of the financial statements referred to
          in Section 4.01 and such other documents and information as it has deemed
          appropriate to make its own credit analysis and decision to enter into such
          Assignment and Acceptance; (iv) such assignee will, independently and
          without reliance upon the Agent, such assigning Lender or any other Lender and
          based on such documents and information as it shall deem appropriate at the
          time, continue to make its own credit decisions in taking or not taking action
          under this Agreement; (v) such assignee confirms that it is an Eligible
          Assignee; (vi) such assignee appoints and authorizes the Agent to take
such           action as agent on its behalf and to exercise such powers and discretion
under           this Agreement as are delegated to the Agent by the terms hereof,
together with           such powers and discretion as are reasonably incidental thereto;
and           (vii) such assignee agrees that it will perform in accordance with
their           terms all of the obligations that by the terms of this Agreement are
required to           be performed by it as a Lender.  

        (c)             Upon
its receipt of an Assignment and Acceptance executed by an assigning Lender           and
an assignee representing that it is an Eligible Assignee, together with any
          Note or Notes subject to such assignment, the Agent shall, if such Assignment
          and Acceptance has been completed and is in substantially the form of
          Exhibit C hereto, (i) accept such Assignment and Acceptance,
          (ii) record the information contained therein in the Register and
          (iii) give prompt notice thereof to the Borrower.  

        (d)             The
Agent shall maintain at its address referred to in Section 8.02 a copy           of
each Assignment and Acceptance delivered to and accepted by it and a register
          for the recordation of the names and addresses of the Lenders and the
Commitment           of, and principal amount of the Advances owing to, each Lender from
time to time           (the “Register”). The entries in the Register
shall be           conclusive and binding for all purposes, absent manifest error, and
the           Borrower, the Agent and the Lenders may treat each Person whose name is
recorded           in the Register as a Lender hereunder for all purposes of this
Agreement. The           Register shall be available for inspection by the Borrower or
any Lender at any           reasonable time and from time to time upon reasonable prior
notice.  

        (e)             Each
Lender may sell participations to one or more banks or other entities           (other
than the Borrower or any of its Affiliates) in or to all or a portion of           its
rights and obligations under this Agreement (including, without limitation,           all
or a portion of its Commitment, the Advances owing to it and any Note or           Notes
held by it); provided, however, that (i) such           Lender’s
obligations under this Agreement (including, without limitation,           its Commitment
to the Borrower hereunder) shall remain unchanged, (ii) such           Lender shall
remain solely responsible to the other parties hereto for the           performance of
such obligations, (iii) such Lender shall remain the holder           of any such
Note for all purposes of this Agreement, (iv) the Borrower, the           Agent and
the other Lenders shall continue to deal solely and directly with such           Lender
in connection with such Lender’s rights and obligations under this
          Agreement and (v) no participant under any such participation shall have
          any right to approve any amendment or waiver of any provision of this Agreement
          or any Note, or any consent to any departure by the Borrower therefrom, except
          to the extent that such amendment, waiver or consent would reduce the principal
          of, or interest on, the Notes or any fees or other amounts payable hereunder,
in           each case to the extent subject to such participation, or postpone any date
          fixed for any payment of principal of, or interest on, the Notes or any fees or
          other amounts payable hereunder, in each case to the extent subject to such
          participation. The Borrower agrees that each participant shall be entitled to
          the benefits of Sections 2.11, 2.14 and 8.04(b) and (c) to the same extent as
if           it were a Lender and had acquired its interest by assignment pursuant to
this           Section 8.07; provided that no participant shall be entitled to
receive           any greater amount pursuant to any such section than the transferor
Lender would           have been entitled to receive in respect of the amount of the
participation           transferred by such transferor Lender to such participant had no
such           participation occurred.  

30 

        (f)              Any
Lender may, in connection with any assignment or participation or proposed
          assignment or participation pursuant to this Section 8.07, disclose to the
          assignee or participant or proposed assignee or participant, any information
          relating to the Borrower furnished to such Lender by or on behalf of the
          Borrower; provided that, prior to any such disclosure, the assignee or
          participant or proposed assignee or participant shall agree to preserve the
          confidentiality of any Confidential Information relating to the Borrower
          received by it from such Lender.  

        (g)              Notwithstanding
anything to the contrary contained herein, any Lender (a           “Granting Bank”)
may grant to any of its Affiliates (a           “Funding Agent”),
identified as such in writing from time to           time by the Granting Bank to the
Agent and the Borrower, the option to provide           to the Borrower all or any part
of any Advance that such Granting Bank would           otherwise be obligated to make to
the Borrower pursuant to this Agreement; provided that (i) nothing herein shall
constitute a commitment by any           Funding Agent to make any Advance, (ii) if a
Funding Agent elects not to           exercise such option or otherwise fails to provide
all or any part of such           Advance, the Granting Bank shall be obligated, as a
principal and not as a           surety, to make such Advance pursuant to the terms
hereof. The making of an           Advance by a Funding Agent hereunder shall utilize the
Commitment of the           Granting Bank to the same extent, and as if, such Advance
were made by such           Granting Bank. Each party hereto hereby agrees that no
Funding Bank shall be           liable for any indemnity or similar payment obligation
under this Agreement (all           liability for which shall remain with the Granting
Bank). Notwithstanding the           foregoing, neither any such grant made hereunder nor
the holding of interest           hereunder by any Funding Agent shall increase any of
the Borrower’s           obligations and/or liabilities (including without
limitation tax liabilities and           other indemnities) which the Borrower has but
for such grant or holding of           interest (“Funding Agent Liabilities”)
and the Granting Bank           shall hold the Borrower harmless and indemnify the
Borrower from and against any           and all Funding Agent Liabilities. Each party
hereto agrees that the Granting           Bank shall, for all purposes, including any
amendment, waiver or modification of           this Agreement, the Notes, or any document
related thereto, remain the lender of           record hereunder.  

        (h)              Notwithstanding
any other provision set forth in this Agreement, any Lender may           at any time
create a security interest in all or any portion of its rights under           this
Agreement (including, without limitation, the Advances owing to it and any           Note
or Notes held by it) in favor of any Federal Reserve Bank in accordance           with
Regulation A of the Board of Governors of the Federal Reserve System.  

        SECTION
8.08. Confidentiality. The Agent and the Lenders shall maintain the confidentiality
of the Confidential Information. Neither the Agent nor any Lender shall disclose any
Confidential Information to any other Person without the consent of the Borrower, other
than (a) to the Agent’s or such Lender’s Affiliates and their officers,
directors, employees, agents and advisors and, as contemplated by Section 8.07(f), to
actual or prospective assignees and participants (it being understood that such disclosure
shall be made solely in connection with the transactions contemplated hereby and the
Persons to whom such disclosure is made will be informed of the confidential nature of
such Confidential Information and instructed to keep such Confidential Information
confidential on substantially the same terms as provided herein), (b) as required by
any law, rule or regulation or judicial process, and (c) as requested or required by
any state, federal or foreign authority or examiner regulating banks or banking;
provided, however, that with respect to disclosures pursuant to clauses (b)
and (c) of this Section, unless prohibited by law or applicable court order, each Lender
and the Agent shall attempt to notify the Borrower of any request by any governmental
agency or representative thereof or other Person for disclosure of Confidential
Information after receipt of such request, and if reasonable, practicable and permissible,
before disclosure of such Confidential Information. 

        SECTION
8.09. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York. 

        SECTION
8.10. Execution in Counterparts. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature
page to this Agreement by telecopier shall be effective as delivery of a manually executed
counterpart of this Agreement. 

31 

        SECTION
8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of
any New York State court or federal court of the United States of America sitting in
New York City, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or the Notes, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be
heard and determined in any such New York State court or, to the extent permitted by
law, in such federal court. The Borrower hereby irrevocably consents to the service of
process in any action or proceeding in such courts by the mailing thereof by any parties
hereto by registered or certified mail, postage prepaid, with an additional notice by
telecopier or by reputable overnight delivery service, to the Borrower at its address
specified pursuant to Section 8.02. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that any party may otherwise have to bring any
action or proceeding relating to this Agreement or the Notes in the courts of any
jurisdiction. 

        (b)              Each
of the parties hereto irrevocably and unconditionally waives, to the           fullest
extent it may legally and effectively do so, any objection that it may           now or
hereafter have to the laying of venue of any suit, action or proceeding           arising
out of or relating to this Agreement or the Notes in any New York           State or
federal court. Each of the parties hereto hereby irrevocably waives, to           the
fullest extent permitted by law, the defense of an inconvenient forum to the
          maintenance of such action or proceeding in any such court.  

        SECTION
8.12. Patriot Act Notice. Each Lender and the Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements of the
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26, 2001 (the
“Patriot Act”), it is required to obtain, verify and record information that
identifies the Borrower, which information includes the name and address of the Borrower
and other information that will allow such Lender or the Agent, as applicable, to identify
the Borrower in accordance with the Patriot Act. The Borrower shall provide such
information and take such actions as are reasonably requested by the Agent or any Lenders
in order to assist the Agent and the Lenders in maintaining compliance with the Patriot
Act. 

        SECTION
8.12. Waiver of Jury Trial. Each of the Borrower, the Agent and the Lenders hereby
irrevocably waives all right to trial by jury in any action, proceeding or counterclaim
(whether based on contract, tort or otherwise) arising out of or relating to this
Agreement or the Notes or the actions of the Agent or any Lender in the negotiation,
administration, performance or enforcement thereof. 

32 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 

		SNAP-ON INCORPORATED
	
 	By:  /s/ Martin M. Ellen
		        Title:  Senior Vice President - Finance
	
 	THE AGENT
	
 	CITIBANK, N.A.,
		   as Agent
	
 	By:  /s/ Anish Shah
		Title:  Vice President
	
 	INITIAL LENDERS
	
 	CITIBANK, N.A.,
	
 	By:  /s/ Anish Shah
		Title:  Vice President
	
 	JPMORGAN CHASE BANK, N.A.
	
 	By:  /s/ Michael B. Kelly
		Title:  Vice President

33AGREEMENT OF PURCHASE AND SALE

MOTELS OF AMERICA LLC, Seller

and

SUPERTEL LIMITED PARTNERSHIP, Purchaser

Dated: As of November 10, 2006

 

	
 

	
 

	
 

 

 

TABLE OF CONTENTS

 

Page

 

 

	

ARTICLE 1

	

PURCHASE AND SALE OF THE PROPERTY

	
 

	
1.1

	
Property

	

1

	
1.2

	
Excepted Items

	

2

	

ARTICLE 2

	

PURCHASE PRICE

	
 

	
2.1

	
Purchase Price

	

2

	
2.2

	
Escrow Agent

	

3

	
2.3

	
Allocation of Purchase Price

	

3

	

ARTICLE 3

	

TITLE AND SURVEY

	
 

	
3.1

	
Permitted Encumbrances

	

3

	
3.2

	
Title

	

4

	
3.3

	
Objections

	

4

	
3.4

	
Discharge of Liens

	

5

	
3.5

	
Title Insurance Costs

	

6

	

ARTICLE 4

	

CLOSING DATE

	
 

	
4.1

	
Closing

	

6

	

ARTICLE 5

	

DUE DILIGENCE

	
 

	
5.1

	
Review Period

	

6

	
5.2

	
Inspection of Real Estate

	

7

	
5.3

	
Insurance

	

7

	
5.4

	
Normal Business Hours

	

7

	
5.5

	
Risk of Loss

	

7

	
5.6

	
Termination During Review Period

	

8

	
5.7

	
Return of Deposit

	

8

	
5.8

	
Return of Records; Tests

	

8

	
5.9

	
No Exclusion

	

8

	

ARTICLE 6

	

SELLER’S REPRESENTATIONS, WARRANTIES AND AGREEMENTS

	
 

	
6.1

	
Representations and Warranties

	

8

	
6.2

	
Accuracy and Survival - Seller

	

11

				

 

 

	
 

	
-i-

	
 

 

 

TABLE OF CONTENTS

(continued)

Page

 

 

	
6.3

	
Limitation on Damages

	

12

	

ARTICLE 7

	

PURCHASER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

	
 

	
7.1

	
Purchaser’s Duty of Review

	

12

	
7.2

	
Warranties and Representations

	

12

	
7.3

	
Accuracy and Survival - Purchaser

	

13

	
7.4

	
Covenants of Purchaser

	

13

	

ARTICLE 8

	

DEFAULTS; FAILURE TO PERFORM; LIQUIDATED DAMAGES

	
 

	
8.1

	
PURCHASER’S DEFAULT

	

14

	
8.2

	
Seller’s Default

	

14

	
8.3

	
Survival

	

14

	

ARTICLE 9

	

CLOSING DOCUMENTS

	
 

	
9.1

	
Seller’s Documents

	

15

	
9.2

	
Purchaser’s Documents

	

16

	

ARTICLE 10

	

RISK OF LOSS

	
 

	
10.1

	
Casualty

	

17

	
10.2

	
Improvements

	

17

	
10.3

	
Condemnation

	

18

	

ARTICLE 11

	

CONDITION “AS IS”; NO FURTHER REPRESENTATIONS

	
 

	
11.1

	
“As Is”

	

18

	

ARTICLE 12

	

ASSIGNMENT OF CERTAIN CONTRACTS, LICENSES AND PERMITS

	
 

	
12.1

	
Permits and Licenses

	

19

	
12.2

	
Assumption of Contracts

	

19

	

ARTICLE 13

	

OPERATIONS PRIOR TO CLOSING

	
 

	
13.1

	
Operation

	

19

	
13.2

	
Maintenance

	

20

	
13.3

	
Insurance

	

20

	
13.4

	
New Agreements

	

20

				

 

 

	
 

	
-ii-

	
 

 

 

TABLE OF CONTENTS

(continued)

Page

 

 

	
13.5

	
New Reservations

	

20

	
13.6

	
Permits and Licenses

	

20

	
13.7

	
Transition

	

20

	
13.8

	
Unpaid Bills

	

21

	

ARTICLE 14

	

INVENTORY OF PERSONAL PROPERTY

	
 

	
14.1

	
Inventory Prior to Closing

	

21

	

ARTICLE 15

	

PRORATIONS; ADJUSTMENTS, POST-CLOSING ESCROW; COSTS

	
 

	
15.1

	
Prorations

	

21

	
15.2

	
Adjustments

	

26

	
15.3

	
Closing Statement

	

26

	
15.4

	
Costs

	

26

	
15.5

	
Special Assessments

	

26

	

ARTICLE 16

	

BROKERAGE

	
 

	
16.1

	
Broker

	

26

	

ARTICLE 17

	

THE DEPOSIT - ESCROW

	
 

	
17.1

	
Escrow Agent

	

27

	

ARTICLE 18

	

MERGER OF UNDERSTANDINGS

	
 

	
18.1

	
Merger

	

29

	

ARTICLE 19

	

MISCELLANEOUS

	
 

	
19.1

	
Recordation

	

29

	
19.2

	
Insufficient Funds

	

29

	
19.3

	
Entire Agreement

	

29

	
19.4

	
Waiver

	

30

	
19.5

	
Assignment

	

30

	
19.6

	
Captions

	

30

	
19.7

	
Parties in Interest

	

30

	
19.8

	
Notices

	

30

	
19.9

	
Choice of Law

	

32

				

 

 

	
 

	
-iii-

	
 

 

 

TABLE OF CONTENTS

(continued)

Page

 

 

	
19.10

	
Survival

	

32

	
19.11

	
Construction

	

32

	
19.12

	
Attorneys’ Fees

	

32

	
19.13

	
Time of the Essence

	

32

	
19.14

	
Reporting Requirements

	

32

	
19.15

	
Counterparts

	

33

	
19.16

	
Enforceability

	

33

	
19.17

	
Amendment

	

33

	
19.18

	
Incorporation of Exhibits

	

33

	

ARTICLE 20

	

CONFIDENTIALITY

	
 

	
20.1

	
Confidentiality

	

33

	
20.2

	
Exclusions

	

34

	
20.3

	
Survival

	

35

	

ARTICLE 21

	

DEFINITIONS

	
 

	
21.1

	
Definitions

	

35

				

 

 

	
 

	
-iv-

	
 

 

 

AGREEMENT OF PURCHASE AND SALE

THIS AGREEMENT, made as of the 10th day of November, 2006, by and between MOTELS OF AMERICA LLC (“MOA”), a Delaware limited liability company having an address at 156 East 56th Street, New York, New York 10019 (“Seller”) and SUPERTEL LIMITED PARTNERSHIP, a Virginia Limited Partnership, having an address at 309 N. 5th Street, Norfolk, Nebraska 68701 (“Purchaser”).

W I T N E S S E T H :

ARTICLE 1

 

PURCHASE AND SALE OF THE PROPERTY

1.1Property. Seller hereby agrees to sell to Purchaser and Purchaser agrees to purchase from Seller, upon the terms and conditions set forth in this Agreement, all of Seller’s right, title and interest in the Land, Improvements, Personal Property, Warranties and Guaranties, Assumed Contracts, Permits and Licenses, Inventory, Reservations and Intangible Property (all as such terms are hereinafter defined) relating to each of those certain five (5) motel properties identified generally by name and address on Exhibit A attached hereto and made a part hereof (individually, a “Property” and collectively, the “Property”) which Property is more particularly described as
follows:

1.1.1           Land. Those certain tracts or parcel of land described on Exhibits A-1 through A-5, attached hereto and made a part hereof, together with the Appurtenant Easements (collectively, the “Land”).

1.1.2           Improvements. The Improvements (the Land and Improvements, collectively, the “Real Estate”).

1.1.3           Personal Property. The Personal Property and all replacements, substitutions and additions of and to the Personal Property, including, without limitation, those items set forth on Exhibits B-1 through B-5 attached hereto and made a part hereof (the Land, Improvements and Personal Property relating to each Property, a “Hotel” and collectively, the “Hotels”).

1.1.4           Warranties and Guaranties. Seller’s interest, if any and to the extent assignable, in, to and under all unexpired warranties, guaranties, indemnities and sureties, which are 

 

related to the use or operation of the Hotels (the “Warranties and Guaranties”).

1.1.5           Assumed Contracts. The Assumed Contracts relating to the use or operation of the Hotels.

1.1.6           Permits and Licenses. The Permits and Licenses, to the extent assignable, relating to the use or operation of the Hotels.

1.1.7           Inventory. Opened or unopened supplies and other depletable or usable goods and merchandise customarily held in inventory in connection with the use or operation of the Hotels, including, paper goods, brochures, office supplies, food, beverages, merchandise, china, glassware, flatware, linens, uniforms, towels, deodorizers, detergents, chemicals, soaps, gasoline, fuel oil, and all other guest supplies (including guest room amenities) located at the Hotels (collectively, the “Inventory”).

1.1.8           Reservations. All guest room and other reservations and bookings for dates on or after Closing, as hereinafter defined, as the same may be amended, canceled and renewed (the “Reservations”).

1.1.9           Intangible. Except as otherwise provided in this Agreement, Seller’s interest, if any and to the extent assignable, in and to all intangible property owned by Seller and used in connection with the use or operation of the Hotels (collectively, the “Intangible Property”).

1.2        Excepted Items. Notwithstanding anything to the contrary contained in this Agreement, the Excepted Items are not included in this sale or in the definition of Property.

ARTICLE 2

 

PURCHASE PRICE

2.1        Purchase Price. The Purchase Price for the Property is TWENTY-FOUR MILLION and 00/100 ($24,000,000.00) DOLLARS, payable as follows:

2.1.1           FIVE HUNDRED THOUSAND and 00/100 ($500,000.00) DOLLARS (the “Deposit”) upon the execution and delivery of this Agreement by wire transfer of immediately available federal funds to (or by check, subject to collection, 

 

- 2 -

 

payable to the order of) Escrow Agent, as hereinafter defined; and

2.1.2           TWENTY-THREE MILLION FIVE HUNDRED THOUSAND and 00/100 ($23,500,000.00) DOLLARS upon Closing, by wire transfer of immediately available federal funds to an account designated by MOA.

2.2              Escrow Agent. The Deposit shall be held in escrow (and disbursed) by the Escrow Agent together with interest thereon, if any, pursuant to the provisions of ARTICLE 17 hereof. At Closing, Purchaser and Seller shall execute and deliver mutually acceptable escrow instructions to the Escrow Agent consistent with the provisions of this Agreement.

2.3        Allocation of Purchase Price. Seller and Purchaser shall, prior to Closing, use good faith efforts to agree upon the allocation of the Purchase Price among the real and personal property included within the Property and the values so agreed upon shall be reflected in the documentary fee, recording tax, transfer tax and sales tax, if any, paid or payable at Closing.

ARTICLE 3

 

TITLE AND SURVEY

3.1        Permitted Encumbrances. The Property shall be transferred at Closing subject to each and all of the following (the “Permitted Encumbrances”):

3.1.1           Covenants and Restrictions. All covenants, restrictions, easements, reservations and agreements of record set forth on Exhibit C attached hereto and made a part hereof and all other covenants, restrictions, easements, reservations and agreements of record, if any, provided such other covenants, restrictions, easements, reservations and agreements do not materially adversely affect the use of any Hotel as a motel/hotel.

3.1.2           Applicable Laws. Any and all present and future zoning restrictions, regulations, requirements, laws, ordinances, resolutions and orders of any city, county, town or village in which the Property lies and of all boards, bureaus, commissions, departments and bodies of any municipal, county, state or federal sovereign or other governmental authority now or hereafter having or acquiring jurisdiction of the Property or the use and improvement thereof.

 

- 3 -

 

3.1.3           Surveys. Such state of facts as shown on those surveys described on Exhibit D, attached hereto and made a part hereof, and any other state of facts which a current accurate survey of any Hotel would show, provided that such other state of facts would not materially adversely affect the use of a Hotel as a motel/hotel.

3.1.4           Physical Inspection. Any state of facts a physical inspection of the Hotels would show.

3.1.5           Real Estate Taxes. Real estate taxes, water and sewer charges and other taxes for the fiscal year in which the Closing occurs.

	
 

	
3.1.6

	
Utility Companies. Rights of utility companies, if any.

3.1.7           Leases. The leases set forth on Exhibit E attached hereto and made a part hereof (the “Leases”).

3.2        Title. At Closing, Seller agrees to convey to Purchaser, and Purchaser agrees to accept, title to the Real Estate in such form as (a) LandAmerica Lawyers Title Corp., having an office at 1850 North Central Avenue, Suite 300, Phoenix, Arizona 85004 or (b) any other national title insurance company doing business in the States where the Property is located (the “Title Company”) would be willing to insure, subject only to the Permitted Encumbrances. Purchaser will deliver to Seller’s attorneys promptly after the receipt thereof, a commitment for title insurance (the “Commitment”) with
respect to each Property from the Title Company, together with copies of all title reports, certificates, updates, UCC searches and surveys obtained by Purchaser in connection therewith.

3.3        Objections. If any Commitment, any amendments or supplements thereto, or any title reports, certificates, updates, UCC searches or surveys (collectively, the “Search Items”), discloses any lien or encumbrances on (or defect in the Seller’s title to) the Real Estate, other than the Permitted Encumbrances, to which Purchaser objects, Purchaser shall notify Seller in writing of such objection (the “Objection Notice”) in detail within five (5) business days after receipt by Purchaser of any such Search Item. If Purchaser fails to timely give an Objection Notice, Purchaser shall be deemed to have approved all matters to which Purchaser may have objected in such Objection Notice if given timely. If Purchaser timely gives the
Objection Notice, Seller shall have the right, but not the obligation, to indicate which matters, if any, identified in the Objection Notice will be addressed (and the manner in which such matters will be addressed) by Closing by giving written notice thereof (“Seller’s Response”) to Purchaser within three (3) business days after receipt by Seller of an Objection Notice. Seller’s failure to give timely Seller’s Response shall be deemed to constitute Seller’s election not to address any of the matters set forth in the Objection Notice. If Seller 

 

- 4 -

 

elects to address any such matter it shall do so in a manner reasonably acceptable to Purchaser. If Seller elects (or is deemed to have elected) not to address any such matter, or having elected to do so fails to address any such matter in a manner reasonably acceptable to Purchaser, then Purchaser shall have the options set forth in subparagraph (ii) below of this paragraph 3.3. Seller shall have and be entitled to a reasonable adjournment of the Closing (not to exceed sixty (60) days), within which to address such objections, and it is mutually agreed and covenanted that any matter shown in any Search Item, not set forth in an Objection Notice is waived as an objection to title and shall be deemed included within the Permitted Encumbrances as if set forth in Section 3.1. Notwithstanding anything to the contrary, Seller shall have no obligation to remove any such matters to
which Purchaser objects in an Objection Notice if the expense to Seller to remove such matters exceeds (a) FIFTY THOUSAND and 00/100 ($50,000.00) DOLLARS in the aggregate with respect to a Property and (b) TWO HUNDRED FIFTY THOUSAND and 00/100 ($250,000.00) DOLLARS in the aggregate with respect to all the Property, except that Seller shall cause the Title Company to agree to omit from any policy of title insurance to be issued to Purchaser at Closing, pursuant to the Commitment, any mortgage liens encumbering a Property, including, without limitation, the mortgage liens held by iStar Financial, Inc. and Alpha Capital LLC (collectively, the “Liens to be Discharged”). Other than the Liens to be Discharged, if Seller (i) is unable or unwilling to remove any such matters aggregating more than FIFTY THOUSAND and 00/100 ($50,000.00) DOLLARS with respect to a Property or TWO HUNDRED FIFTY THOUSAND and 00/100 ($250,000.00) DOLLARS for all the Property or fails to cause the Title Insurance Company to remove same from Purchaser’s title insurance policy or (ii) is unable to convey the Property as herein agreed to be conveyed, Purchaser shall have the option of either (1) waiving Purchaser’s objection to such matters and proceeding with the Closing and accepting title subject to such matters without any abatement or reduction to the Purchase Price; or (2) rejecting the title and receiving a return of the Deposit, whereupon all liability and obligations hereunder shall terminate, except those expressly stated to survive termination hereof, and this Agreement and all rights of Purchaser herein and to the Property shall become null and void. Without limiting the generality of the foregoing, Seller shall not be obligated to bring any action or proceeding to remove any matters to which Purchaser objects in an Objection Notice.

3.4        Discharge of Liens. Any lien or encumbrance or apparent lien or encumbrance appearing of record against the Property which can be discharged by the payment of money, shall not be an objection to title provided Seller allows to Purchaser, as an adjustment to the Purchase Price at the time of Closing, the amount thereof. A lien or encumbrance, dischargeable by satisfaction, shall not be deemed an objection to title if at the time of the Closing Seller shall cause to be delivered either (a) a duly executed and acknowledged satisfaction along with the filing fee or (b) a payoff letter and the appropriate funds
to satisfy the lien or encumbrance, both of which shall be in form satisfactory to and delivered to the Title Insurance Company at the Closing sufficient to cause the Title Insurance Company to delete such lien or encumbrance from any policy of title insurance to be issued to Purchaser. Seller shall have the right to apply the proceeds of the sale to the satisfaction of the lien or encumbrance, but shall 

 

- 5 -

 

not be under any obligation to do so, except as expressly required under the terms of this Agreement. Notwithstanding anything to the contrary contained within this ARTICLE 3, no matter shall be an objection to title if the Title Company is willing to insure the Property without exception therefor or affirmatively insure against collection out of the Property by reason thereof.

3.5        Title Insurance Costs. Purchaser shall pay at Closing all costs incurred in connection with Purchaser obtaining (a) any policy of title insurance issued by the Title Company to Purchaser, (b) any endorsements thereto and (c) any surveys of the Property.

ARTICLE 4

 

CLOSING DATE

4.1        Closing. The closing of title under this Agreement (the “Closing”) shall take place on or before the earlier of (a) twenty (20) days after written notice from Purchaser and (b) January 10, 2007 (the “Closing Date”) (unless otherwise agreed by the parties hereto) and shall be conducted by an escrow closing through the Title Company. In furtherance of such Closing, Seller and Purchaser shall each deposit, in escrow, with the Title Company, all monies, closing documents and other items required to consummate the Closing pursuant to this Agreement at least one (1) business day prior to the
Closing Date in order to assure that the Purchase Price be paid by wire transfer on the Closing Date. Seller and Purchaser shall endeavor, in good faith, to compile and calculate all required prorations and adjustments, and to prepare (or cause the Title Company to prepare) a settlement statement no later than one (1) business day prior to the Closing Date.

ARTICLE 5

 

DUE DILIGENCE 

5.1        Review Period. Purchaser shall have a period (the “Review Period”) beginning on the date of this Agreement and expiring on December 10, 2006 to conduct and complete (subject to the provisions hereinafter set forth in this ARTICLE 5, at Purchaser’s sole costs and expense, (a) a physical examination of the Property, (b) a review of Seller’s books and records for the preceding three (3) years relating to the Property, (c) a review of the Permitted Encumbrances and Surveys, (d) a Phase I and, if deemed necessary, a Phase II Environmental Inspection of the Property, (e) a review of all zoning and building codes of each governmental authority having jurisdiction over the property, and (f) such other reviews and inspections as Purchaser shall deem necessary or desirable to determine if the Property is satisfactory to Purchaser in all respects.

 

- 6 -

 

5.2        Inspection of Real Estate. Purchaser shall have the right to inspect the Property to satisfy itself that the Property, as of the date of such inspection, is in good operating condition and repair. Such inspection may include performing environmental, engineering and other noninvasive tests at Purchaser’s discretion, upon notice to and approval by Seller, such approval not to be unreasonably withheld. Purchaser acknowledges that Seller makes no representation or warranty with respect to the foregoing or in any manner in connection with the condition or operation of the Property, except as specifically set forth in this Agreement. Purchaser shall bear the cost of all inspections and any repairs necessary by reason of such inspections referred to in
this paragraph. 

5.3        Insurance. Prior to any entry or inspection in, on or with respect to the Property, Purchaser shall (a) procure (and thereafter maintain at all times prior to Closing), at its sole cost and expense, a policy of commercial general liability insurance in customary form (which shall provide coverage of Purchaser’s indemnification obligations under this Agreement to the extent reasonably available) regarding Purchaser’s entry and inspection in, on and with respect to the Property, contemplated under this Agreement, issued by an insurance company having a Best’s rating of not less than A- in an amount equal to not less than ONE MILLION and 00/100
($1,000,000.00) DOLLARS, naming Seller as an additional insured and providing that the insurer shall endeavor to notify the insured and Seller not less than thirty (30) days in advance of any cancellation of such policy, and (b) provide Seller with a valid certificate of insurance reflecting that such insurance is in full force and effect and provides coverage on a basis which satisfies all of the requirements of this paragraph.

5.4        Normal Business Hours. Purchaser shall conduct any inspections only during normal business hours, unless otherwise agreed in writing by Seller. Seller shall have the right to impose reasonable conditions on performance of any inspections (including, without limitation, reasonable schedule modifications) so as to minimize disturbances at the Property. Purchaser shall require all personnel involved in any inspections to sign in with Seller’s property management personnel (or such party or parties at the Property designated by Seller), when entering the Property and to sign out when leaving the Property, if applicable, and in all cases to contact Seller’s property management personnel (or a designated representative of Seller) to arrange for
entry. Purchaser shall not contact any employees, contractors, vendors or suppliers of Seller without giving prior notice to and obtaining specific approval from Seller.

5.5        Risk of Loss. Purchaser expressly assumes the risk of loss or injury to Purchaser or to its representatives from entering the Property or performing inspections in, on or with respect to the Property. Purchaser hereby agrees to indemnify, defend and hold harmless Seller, its affiliates, directors, officers, employees, attorneys and agents, and their respective successors and assigns, from and against any claim and any actual damages, liability, cost and expense (including reasonable attorneys’ fees) for personal injury or property damage arising out of, in connection with 

 

- 7 -

 

or resulting from any entry or inspection by Purchaser or its representatives in, on or with respect to the Property.

5.6              Termination During Review Period. Should Purchaser determine in Purchaser’s sole discretion, that a Property is not satisfactory to Purchaser for any reason whatsoever, Purchaser shall have the right, at its election, exercised prior to the expiration of the Review Period (time being of the essence), to terminate this Agreement by written notification of such election to Seller (“Termination Notice”). Failure to deliver timely the Termination Notice shall be deemed to constitute an election to proceed to Closing of the Property in all respects.

5.7        Return of Deposit. Upon termination of this Agreement under this ARTICLE 5, Purchaser shall be entitled to the return of the Deposit, upon return of which neither Purchaser nor Seller shall have any further liability hereunder.

5.8        Return of Records; Tests. If Purchaser elects to terminate this Agreement, or otherwise fails to purchase the Property for any reason by the Closing Date, Purchaser shall, within thirty (30) days after the termination of this Agreement, deliver to Seller the results and all copies of all plans, studies, inspections or tests of the Property made by Purchaser in connection with its inspection and evaluation of the Property, including all information provided to Purchaser by Seller.

5.9        No Exclusion. Purchaser acknowledges and agrees that Seller’s obligation herein is to sell all, and not less than all, of the Property as a portfolio of five (5) properties. Accordingly, Purchaser expressly acknowledges that Seller shall have no obligation to sell, and Purchaser shall have no right hereunder to purchase, any of the Property constituting less than all of the Property, as herein contemplated. 

ARTICLE 6

 

SELLER’S REPRESENTATIONS, WARRANTIES AND AGREEMENTS

6.1        Representations and Warranties. Seller represents, warrants and agrees that the following facts and conditions exist on the date of execution hereof by Seller and shall exist as of Closing, subject to any limitations set forth in this ARTICLE 6, and, if applicable, covenants as follows:

6.1.1           Organization. Seller is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware, authorized to transact business in the states in which each Property is located, with full power to enter into and perform this Agreement and to sell, convey, assign and transfer the Property.

6.1.2           Authorization and Non-Contravention. Seller has all requisite corporate power and authority to perform 

 

- 8 -

 

Seller’s obligations under this Agreement and the execution, delivery, and performance of this Agreement by Seller has been duly and validly authorized by all officers or directors whose approval is required under the organizational documentation of Seller. Each person executing and delivering this Agreement and all documents to be executed and delivered in regard to the consummation of the transaction herein has due and proper authority to execute and deliver those documents. This Agreement and all documents executed and delivered by Seller in connection with the transaction herein shall constitute legal, valid and binding obligation of Seller, enforceable against Seller in accordance with their terms. No consent or approval of any person, firm, lender, corporation or governmental authority is required to be obtained by Seller in order for Seller to enter into this Agreement or to perform
Seller’s obligations under this Agreement.

6.1.3           Litigation. Other than actions disclosed on Exhibit F attached hereto and made a part hereof, to the Knowledge of Seller, there are no legal actions, litigations or other proceedings of any type affecting the Property which will materially adversely affect the Purchaser upon consummation of the Closing hereunder.

6.1.4           Contracts. The Contracts identified in Exhibit G constitute all Contracts (other than Contracts otherwise disclosed in this Agreement or the Exhibits hereto) relating to the use and operation of the Hotels; it being understood that if any other Contracts are in force and effect the same shall not be deemed a breach of the foregoing if such Contract is either accepted by Purchaser or terminated by Seller, at Seller’s own cost and expense, prior to Closing.

6.1.5           FIRPTA. Seller is not a “foreign person” for purposes of the withholding rules of the Federal Deficit Reduction Act of 1984 (including Section 1445 of the Internal Revenue Code of 1954) or FIRPTA. Seller will furnish at closing the certification required by such Section of the Code regarding its status as a “foreign person.”

6.1.6           Condemnation. There are no pending (and to the Knowledge of Seller, Seller has received no written notice from any Governmental Authority threatening) condemnation or other similar proceeding affecting any Hotel or any portion thereof.

 

- 9 -

 

6.1.7           Leases. Other than the Leases, there are no leases affecting any of the Property. None of the Property or any of the equipment used in conjunction with the Property is leased from any third party.

6.1.8           Financial Statements. Seller has previously furnished to Purchaser (a) the audited balance sheet of Seller as of February 28, 2004 and February 28, 2003 and the audited balance sheet for the Property as of February 28, 2006 and the related statements of operations, comprehensive income (loss), members’ equity and cash flows for Seller for each of the years ended February 28, 2004 and February 28, 2003 and for the Property for the year ended February 28, 2006, together with the appropriate notes to such financial statements and the audit report thereon and (b) the unaudited balance
sheet of Seller as of February 28, 2005, and the unaudited balance sheet of Seller as of February 28, 2006, and the related statements of operations, comprehensive income (loss), members’ equity and cash flows for the period then ended, together with the appropriate notes to such financial statements (collectively, the “Financial Statements”). Such Financial Statements have been prepared in conformity with GAAP consistently applied and such Financial Statements fairly present, in all material respects, the financial condition, results of operations and cash flow of Seller as of their respective dates and for the respective periods covered thereby.

6.1.9           Compliance with SEC Reporting Requirements. For a period of time commencing on the date of this Agreement and continuing through the first anniversary of the Closing Date, Seller shall, or shall cause Seller’s property manager (the “Property Manager”), as applicable, from time-to-time, upon reasonable advance written notice from Purchaser, and at Purchaser’s sole cost and expense, provide Purchaser and its representatives with reasonable access to all of Seller’s information and documentation relating to the Property, provided the same shall then be in Seller’s (or a representative or affiliate of Seller’s) possession, which information is relevant and reasonably necessary, in the opinion of the
outside accountants of Purchaser, to enable Purchaser and Purchaser’s outside accountants to file financial statements, pro formas and any and all other information in compliance (at Purchaser’s cost) with any and all of (a) Rule 3-5 or 3-14 of Regulation S-X of the SEC; (b) any other rule issued by the SEC and applicable to Purchaser or its subsidiaries; and (c) any registration statement, 

 

- 10 -

424(b) prospectus, report or disclosure statement filed with the SEC by or on behalf of Purchaser. Seller shall reasonably cooperate with Purchaser to cause any SEC audit requirements to be completed and delivered to Purchaser within a reasonable time period to insure that all SEC filing requirements are met, and Purchaser shall reimburse Seller for all reasonable out-of-pocket, third-party costs and expenses paid to third parties by Seller in connection therewith. Seller shall also authorize, and shall cause the Property Manager to authorize, as applicable any attorneys who have represented Seller or the Property Manager, as applicable, in material litigation pertaining to or affecting the Property to respond, at Purchaser’s expense, to inquiries from Purchaser’s representatives, attorneys and independent accounting firm. Seller shall also provide and/or shall cause the Property Manager,
as applicable, to provide to Purchaser’s independent accounting firm a signed representation letter which would be sufficient to enable an independent public accountant to render an opinion on the financial statements related to the Property.

6.1.10        Employee Matters. Seller has no employment agreements, or any agreements that contain any severance or termination pay liabilities, or any obligations for any bonus, deferred compensation, or similar amounts with any of Seller’s on-site employees. Seller has no on-site employee with respect to whom there is any accrued or potential liability for sick leave or vacation pay for periods up to the Closing Date.

6.1.11        Environmental. To Seller’s knowledge, no notice has been serve on Seller from any Governmental Authority claiming any violation of or requiring compliance with any Environmental Laws.

6.2        Accuracy and Survival - Seller. All of the representations and warranties of Seller (a) are true and correct in all material respects and (b) do not contain untrue statements of a material fact or omit any material fact that would make the representations and warranties misleading in any material respect. The representations and warranties of Seller shall survive the Closing, and continue in full force and effect for a period of twelve (12) months from Closing.

	
 

	
6.3

	
Limitation on Damages.

6.3.1           Notwithstanding anything to the contrary contained in this Agreement (a) upon the consummation of the Closing, Purchaser shall be deemed to have waived any misrepresentation or breach of warranty by Seller under this 

 

- 11 -

 

Agreement of which Purchaser was aware at Closing, whether Purchaser became aware of such misrepresentation or breach of warranty through Purchaser’s own due diligence, by reason of a notice from Seller or otherwise, and (b) no claims may be asserted by Purchaser against Seller for misrepresentation or breach of warranty under Section 6.1 of this Agreement until the aggregate dollar amount of such claims exceeds the sum of FIFTY THOUSAND and 00/100 ($50,000.00) DOLLARS and then to the full extent of such aggregate amount in excess of FIFTY THOUSAND and 00/100 ($50,000.00) DOLLARS up to a maximum of ONE MILLION and 00/100 ($1,000,000.00)
DOLLARS.

6.3.2           All claims asserted by Purchaser in accordance with ARTICLE 6 of this Agreement shall be in writing and shall specify in detail the basis for such claims and the amount claimed.

ARTICLE 7

 

PURCHASER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

7.1        Purchaser’s Duty of Review. Purchaser is entering into this Agreement in reliance on its own knowledge and familiarity with the hotel industry, and its inspection of the Property. Purchaser is not relying on any representation of Seller, its officers, shareholders or agents, except as expressly made by Seller in this Agreement or the Exhibits attached to this Agreement.

7.2        Warranties and Representations. Purchaser represents, warrants and agrees that the following facts and conditions exist on the date of execution hereof and shall exist at Closing:

7.2.1           Organization. Purchaser has been duly organized and validly existing and in good standing under the laws of the state of its formation and has the requisite power and authority to own its properties and to transact the business in which it is engaged. Purchaser has taken all necessary action to authorize the execution, delivery and performance of this Agreement and all of the documents executed and delivered by Purchaser in connection with the transaction described herein. This Agreement and all such documents shall constitute legal, valid and binding obligations of Purchaser enforceable against Purchaser in accordance with their terms.

 

- 12 -

 

7.2.2           Authority. Purchaser has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and no approvals or consents of any persons other than Purchaser are required in connection with this Agreement. The execution of this Agreement and consummation of the transactions contemplated hereby will not result in or continue any default or event that, with notice or lapse of time or both, would be a default, breach or violation of the organizational instruments or laws governing Purchaser or any lease, license, promissory note, conditional sales contract, commitment, indenture, mortgage, deed of trust, or other agreement, instrument, or arrangement to which Purchaser is a party or by which
Purchaser is a party or by which Purchaser is bound.

7.3        Accuracy and Survival - Purchaser. All of the representations and warranties of Purchaser are true and correct in all material respects and do not contain untrue statements of a material fact or omit any material fact that would make the representations and warranties misleading in any material respect. The representations and warranties herein contained shall survive the closing and shall continue in full force and effect for a period of twelve (12) months from Closing.

7.4        Covenants of Purchaser. Purchaser covenants to accept and assume as of the Closing all obligations of Seller (a) with respect to the Reservations, (b) under the Assumed Contracts and (c) under the Leases. Purchaser shall execute at Closing assumption agreements with respect to the Reservations, the Intangible Property, the Assumed Contracts and the Leases in form and substance reasonably acceptable to both parties. Purchaser shall not be deemed for any purpose to have assumed any liabilities of Sellers except as expressly provided
herein. Wherever it is provided in this Agreement that Purchaser shall assume any obligation of Seller, such assumption shall be effective only from and after Closing, and such assumption shall not require Purchaser to assume, nor shall Purchaser assume, any liabilities or obligations of Seller’s relating to or arising from Sellers’ performance of, or failure to perform, any of the terms of the assumed obligation required to be performed prior to Closing.

ARTICLE 8

 

DEFAULTS; FAILURE TO PERFORM; LIQUIDATED DAMAGES

8.1        PURCHASER’S DEFAULT. IN THE EVENT (a) ALL OF THE CONDITIONS TO THIS AGREEMENT SHALL HAVE BEEN SATISFIED OR WAIVED: (b) SELLER SHALL HAVE FULLY PERFORMED OR TENDERED PERFORMANCE OF ITS OBLIGATIONS HEREUNDER; (c) PURCHASER SHALL FAIL TO PERFORM ITS OBLIGATION HEREUNDER; AND (d) THE CLOSING SHALL FAIL TO OCCUR SOLELY AS A RESULT OF PURCHASER’S DEFAULT HEREUNDER, THEN, AS 

 

- 13 -

 

SELLER’S SOLE AND EXCLUSIVE REMEDY FOR PURCHASER’S FAILURE TO CLOSE, THE ENTIRE AMOUNT OF THE DEPOSIT (PLUS ALL INTEREST ACCRUED THEREON IF ANY) SHALL BE IMMEDIATELY PAID TO SELLER. PURCHASER AND SELLER HEREBY ACKNOWLEDGE AND AGREE THAT SELLER’S DAMAGES WOULD BE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THE AMOUNT OF THE DEPOSIT (PLUS ALL INTEREST ACCRUED THEREON IF ANY) IS THE PARTIES’ BEST AND MOST ACCURATE ESTIMATE OF DAMAGES SELLER WOULD SUFFER IN THE EVENT THE TRANSACTION PROVIDED FOR IN THIS AGREEMENT FAILS TO CLOSE. PURCHASER AND SELLER AGREE THAT SELLER’S RIGHT TO RETAIN THE DEPOSIT (PLUS ALL INTEREST ACCRUED THEREON IF ANY) SHALL BE THE SOLE AND EXCLUSIVE REMEDY OF SELLER IN THE EVENT OF BREACH OF THIS AGREEMENT BY PURCHASER AS PROVIDED ABOVE.

8.2        Seller’s Default. If Seller, through no fault of Purchaser, fails to perform its obligations hereunder and Closing does not occur as a result thereof, Purchaser may, as its sole remedy, at its option, either: (a) terminate this Agreement and receive a refund of the Deposit (together with interest, if any, thereon) and a reimbursement by Seller of Purchaser’s out-of-pocket costs and expenses incurred in connection with this Agreement up to, but not to exceed, ONE HUNDRED THOUSAND and 00/100 ($100,000.00) DOLLARS, whereupon the obligations of the parties hereto, other than those expressly set forth to survive termination
hereof, shall terminate, or (b) seek an action for specific performance under this Agreement, except that the state of title and survey shall be accepted “as is.” In no event whatsoever shall Purchaser be entitled to collect any damages from Seller.

8.3        Survival. The provisions of ARTICLE 8 shall survive the Closing or other termination of this Agreement.

ARTICLE 9

 

CLOSING DOCUMENTS

9.1        Seller’s Documents. At the Closing (and as a condition to Purchaser’s obligation to close title hereunder), Seller shall deliver or cause to be delivered to Purchaser the following:

9.1.1           A special or limited warranty deed as customarily provided on a state-by-state basis (the “Deed”), duly executed and acknowledged by Seller, sufficient to transfer and convey to Purchaser the Real Estate.

9.1.2           A bill of sale (the “Bill of Sale”), without representation or warranty by Seller, but free and clear of all liens, duly executed and acknowledged by Seller, sufficient to transfer to 

 

- 14 -

 

Purchaser all Seller’s right, title and interest in and to the Personal Property.

9.1.3           A certificate stating that Seller is not a “Foreign Person” within the meaning of IRC Section 1445(f)(3).

	
 

	
9.1.4

	
Original copies of the Leases, if available.

	
 

	
9.1.5

	
An Assignment of the Leases, executed by Seller.

9.1.6           Originals, or if not available, copies of the Assumed Contracts.

9.1.7           Originals, or if not available, copies of the Permits and Licenses.

9.1.8           An Assignment of Reservations, Intangible Property (including, without limitation, any telephone numbers used in connection with the operation of each Property), Assumed Contracts and Permits and Licenses, executed by Seller.

9.1.9           Evidence of Seller’s power and authority to enter into the subject transaction and evidence of the signatories’ authority to sign on behalf of Seller.

9.1.10        A letter addressed to Escrow Agent directing Escrow Agent to deliver the Deposit (together with interest, if any, thereon) to Seller and releasing Escrow Agent from any and all liability in connection with the subject transaction.

9.1.11        A certificate duly executed by Seller confirming that as of the Closing all of the representations and warranties made by Seller in ARTICLE 6 of this Agreement are true and correct in all material respects (or if any such representation or warranty is no longer true and correct in any material respect as of the Closing, stating the nature of the inaccuracy), which certificate shall survive Closing for a period of twelve (12) months.

9.1.12        A Non-Compete Agreement executed by MOA Hospitality, Inc. and Paul F. Wallace substantially in the form of Exhibit H attached hereto and made a part hereof.

9.1.13        Unless waived by Purchaser, (a) a letter or certificate from the landlord under that certain Commercial Lease, dated January 19, 2001, between Trans-Care, Inc., as Lessor, and MOA Hospitality, Inc., as Lessee (the “Commercial Lease”), 

 

- 15 -

 

stating that the Commercial Lease is in full force and effect, that Tenant is not in default thereunder in any material respect and consenting to an assignment of the Lessee’s interest thereunder to Purchaser and (b) an assignment from MOA Hospitality, Inc. to Purchaser in recordable form sufficient to assign the tenant’s interest under the Commercial Lease to Purchaser.

9.1.14        Such other instruments and documents as may be reasonably required to consummate the transaction herein contemplated.

9.2        Purchaser’s Documents. At the Closing (and as a condition to Seller’s obligation to close title hereunder), Purchaser shall deliver or cause to be delivered to Seller the following:

9.2.1           The balance of the Purchase Price as provided in ARTICLE 2 hereof.

9.2.2           Evidence of Purchaser’s power and authority to enter into the subject transaction and evidence of the signatories’ authority to sign on behalf of Purchaser.

9.2.3           A letter addressed to Escrow Agent directing Escrow Agent to deliver the Deposit (together with interest, if any, thereon) to Seller and releasing Escrow Agent from any and all liability in connection with the subject transaction. 

9.2.4           An Assumption of Reservations, Intangible Property, Assumed Contracts and Permits and Licenses executed by Purchaser.

9.2.5           An Assumption of the Leases, executed by Purchaser.

9.2.6           Such other instruments and documents as may be reasonably required to consummate the transaction herein contemplated.

ARTICLE 10

 

RISK OF LOSS

10.1     Casualty. The risk of loss or damage to the Property by fire or other casualty, until the Closing, is assumed by Seller but without any liability or obligation of Seller to repair same except Seller, at Seller’s sole option, shall have the right to repair or replace such loss or damage to the Property. If Seller elects (such election to be 

 

- 16 -

 

made within twenty (20) days after Seller shall have actual knowledge of such damage) to make such repair or replacement, this Agreement shall continue in full force and effect, and Seller shall be entitled to reasonable adjournments of the Closing hereunder, not to exceed one hundred eighty (180) days in the aggregate, for such purpose. If Seller does not elect to repair or replace any such loss or damage, the following shall control:

10.2     Improvements. If the Improvements on more than two (2) motel/hotels comprising the Property shall be materially damaged or destroyed by fire, storm or other casualty before the Closing, Purchaser shall have the right to terminate this Agreement by written notice to Seller given within seven (7) business days after expiration of the period during which Seller may elect to make repairs or Seller’s notice to Purchaser that it does not elect to make such repairs, if sooner, entitling Purchaser to receive a refund of the Deposit, whereupon the obligations of the parties hereto, other than those expressly set forth to survive termination hereof, shall terminate. If Purchaser shall not elect to terminate this Agreement or if said destruction is immaterial, or if said
destruction shall occur at, only two (2) or less of the Properties, this Agreement shall continue in full force and effect without any modification or abatement of the Purchase Price, and Purchaser shall be entitled to receive an absolute assignment (without representation or warranty by or recourse against Seller) from Seller of any interest Seller may have otherwise had in the proceeds of any insurance on the Property (including any rent loss or business interruption insurance proceeds allocable to the period from and after the Closing) except for any expense theretofore incurred by Seller for restoration or safety in connection therewith which sum shall be reimbursed by Purchaser to Seller at the Closing.

10.3     Condemnation. If notice of any action, suit or proceeding shall be given after the date hereof but prior to the Closing for the purpose of taking in eminent domain or condemning any material part of the Property at more than two (2) Property, then Purchaser and Seller shall each have the right to terminate this Agreement by written notice to the other party given within fourteen (14) days after receiving notice of such condemnation or taking. Upon such termination, Purchaser shall receive a refund of the Deposit whereupon the obligations of the parties hereto, other than those expressly set forth to survive termination hereof, shall terminate and the proceeds resulting from such condemnation or taking shall be paid to Seller. If neither Purchaser or Seller elects to
terminate this Agreement as above provided or if the taking or condemnation is of an immaterial part of the Property, or if the taking concerns only two (2) or less of the Properties) Property, or in the event of a change of legal grade, the award with respect to such condemnation, taking or change, except for any expense theretofore incurred by Seller for restoration or safety in connection therewith which sum shall be reimbursed by Purchaser to Seller at the Closing, shall be assigned (without representation or warranty by or recourse against Seller) to Purchaser without further consideration, and this Agreement shall continue in full force and effect without any modification or abatement of the Purchase Price or any liability or obligation on the part of Seller by reason of such taking, and the definition of “Property” shall be accordingly 

 

- 17 -

 

amended. Any taking of any portion of an Improvement shall be considered “material” for purposes of this Section 10.3.

ARTICLE 11

 

CONDITION “AS IS”; NO FURTHER REPRESENTATIONS

11.1            “As Is”. Purchaser represents and warrants that it has inspected the Property or caused an inspection thereof to be made on Purchaser’s behalf and is thoroughly acquainted with its condition, and it is agreed and understood that neither Seller nor any person purporting to act for Seller has made or now makes any representations or warranties as to the physical condition (including, without limitation, the presence of any Hazardous Material or any condition which would violate any laws regarding environmental matters), layout, leases, footage, rents, income, expense, operation or any other matter or thing affecting or relating to the Property or to this Agreement, except as specifically set forth in this Agreement
and that no party hereto is relying on any statement, representation or warranty made by any other which is not embodied in this Agreement. Purchaser hereby expressly acknowledges that Seller has not made any representation or warranty which is not expressly set forth in this Agreement (or upon Closing, in the documents executed by Seller and delivered to Purchaser in connection with the Closing hereunder), and Purchaser further agrees to take and accept the Property “As Is,” with all faults and in its condition at the Closing subject to any rights of Purchaser arising by reason of any representation or warranty expressly made by Seller in this Agreement. Purchaser agrees that Seller is not liable or bound in any manner by any financial statements or written agreements or statements or representations of any broker which have been made any real estate brokers’ “set-ups” or information pertaining to the Property or any other matter or thing furnished by any real estate broker,
agent, or other person unless the same are specifically stated herein. This ARTICLE 11 shall survive the Closing.

ARTICLE 12

 

ASSIGNMENT OF CERTAIN CONTRACTS, LICENSES AND PERMITS

12.1     Permits and Licenses. Seller shall cooperate with Purchaser (a) in the orderly assignment of all assignable Permits and Licenses identified on Exhibit I and (b) in the application and approval process for all Permits and Licenses which are not assignable and which must be replaced with new permits and licenses from the Governmental Authorities to Purchaser, provided, however, that all transfer fees and costs associated with (i) the assignment of the Permits and Licenses;
(ii) the replacement thereof with new permits and licenses; and (iii) the transfer of the Certificate of Occupancy shall be borne by Purchaser. At Closing, Seller shall assign all Permits and Licenses which are legally assignable to Purchaser, and Purchaser shall assume all prospective obligations under said assigned Permits and Licenses arising from facts or circumstances occurring on or after Closing.

 

- 18 -

 

12.2     Assumption of Contracts. Purchaser shall assume at the Closing all Contracts (other than those identified on Exhibit G as Contracts to be terminated) (collectively, the “Assumed Contracts”). Seller will cancel, at its sole expense, the Contracts identified on Exhibit G as Contracts to be terminated, effective no later than Closing. At the Closing, Seller and Purchaser shall execute an assignment and assumption of contracts under which the Assumed Contracts shall be assigned to (and assumed by) Purchaser at no cost or expense to Purchaser. Seller shall use its best efforts to obtain, if necessary under the terms of
an Assumed Contract, the written consent of each other party thereto, all in form and substance reasonably satisfactory to Purchaser or as provided under such Contract. If Seller is unable to obtain such written consent, at the option of the Purchaser, such Contract shall be terminated by Seller, at Purchaser’s sole cost and expense.

ARTICLE 13

 

OPERATIONS PRIOR TO CLOSING

13.1     Operation. Seller shall continue to operate the Property prior to Closing in the usual and customary manner in which the Property has been operated up to the execution of this Agreement, in order to assure preservation of business relationships and goodwill, and shall maintain the inventories of supplies used in each Hotel at levels consistent with past practices for normal operation through the Closing.

13.2     Maintenance. Seller shall maintain the Property, or cause the Property to be maintained in the ordinary course consistent with past practices prior to the Closing, subject to normal wear and tear, and shall not remove, nor permit to be removed, any Personal Property, Improvement or any other component of the Property except as may be required for repair and maintenance and which will be returned or replaced with an item of like kind and character prior to the Closing.

13.3     Insurance. Seller shall maintain comprehensive casualty, workmen’s compensation, and general public liability insurance on the Property through and including the Closing.

13.4     New Agreements. Without the prior written consent of the Purchaser, which consent shall not be unreasonably withheld or delayed, the Seller will not on, or after the date hereof, enter into:

13.4.1        any leases in the nature of the Leases (other than renewals of the Leases substantially in the same form as currently exist); or

13.4.2        any new service, maintenance or other contracts in connection with the use and operation of any Hotel other than (a) renewals or replacements of those Contracts set forth on 

 

- 19 -

Exhibit G upon substantially the same terms and conditions as currently exist and (b) any other such contracts provided (i) such other contracts are cancelable upon thirty (30) days’ notice and (ii) with respect to each such other contract, none shall have an annual cost in excess of THIRTY THOUSAND and 00/100 ($30,000.00) DOLLARS; and

13.5            New Reservations. Without the prior written consent of the Purchaser, which consent shall not be unreasonably withheld or delayed, the Seller will not accept any Reservations on or after the date hereof other than in the ordinary course of business consistent with the manner in which such Reservations have been accepted prior to the date hereof.

13.6            Permits and Licenses. Seller shall keep in force all existing Permits and Licenses and to cause all those expiring prior to the Closing to be renewed. If any such Permits and Licenses shall be suspended or revoked, Seller shall promptly notify Purchaser in writing and shall take all measures necessary to cause the reinstatement of such Permits and Licenses without any additional limitation or condition.

13.7            Transition. Seller shall meet and cooperate with agents and representatives of Purchaser to effect an orderly transition of ownership and possession of the Property. Such meetings shall be held in a manner so as not to interfere with the orderly operation of the Property.

13.8            Unpaid Bills. Seller shall pay, when due, all bills and charges for all materials delivered to and services rendered to the Property prior to Closing.

ARTICLE 14

 

INVENTORY OF PERSONAL PROPERTY

13.9     Inventory Prior to Closing. Prior to Closing, Seller shall keep and maintain the Inventory and Personal Property at levels, which are customary under the standards for operation of each Property. At a minimum, the Inventory on the date of Closing shall include two and one-half par level sets of linens, including sheets and pillow cases and one par level set of blankets and bedspreads for each bed located in each Hotel; and terrycloth items, including towels, wash cloths and hand towels and one par level set of bath mats per room in each Hotel.

ARTICLE 14

 

PRORATIONS; ADJUSTMENTS, POST-CLOSING ESCROW; COSTS

14.1     Prorations. The following prorations shall be made between Purchaser and Seller as of Closing, computed as of 11:59 p.m. New York time of the date immediately preceding the Closing, in accordance, with standard industry practices:

 

- 20 -

 

14.1.1        Taxes and Assessments. Real and personal property taxes on the Property shall be prorated on the basis that Seller is responsible for (a) all of such occurring prior to the “Current Tax Period” (as defined below) and Seller’s portion of any assessments payable on account of the Current Tax Period; and (b) that portion of such taxes for the Current Tax Period determined on the basis of the number of days which have elapsed from the first day of the Current Tax Period to the day prior to Closing, inclusive, whether or not the same
shall be payable prior thereto. The phrase “Current Tax Period” refers to the fiscal year of the applicable taxing authority in which Closing occurs. In the event that as of Closing the actual tax bills for the year or years in question are not available and the amount of taxes to be prorated cannot be ascertained, then rates and assessed valuation of the previous year, with known changes, shall be used, and when the actual amount of taxes and assessments for the year or years in question shall be determinable, then such taxes and assessments will be prorated between the parties to reflect the actual amount of such taxes and assessments.

14.1.2        Utilities. Prior to Closing, Seller shall notify all utility companies servicing the Property of the anticipated change in ownership of the Property and request that all billings on or after Closing be made to Purchaser (or its designee) at an address designated by Purchaser. Utility meters will be read, to the extent that the utility company will do so and at a fee to be paid by Purchaser, during the afternoon hours on the day before Closing, with charges to that time by Seller and charges thereafter paid by Purchaser. Any prepaid utility service charges shall be adjusted on the Closing Statement (as hereinafter defined) of and paid for by Purchaser at Closing. Charges for utilities with meters which have not been read at Closing will be prorated
between Purchaser and Seller as of Closing based upon utility billings for any such charges for the period, and each party shall pay its pro rata share of such charges to the party requesting payment for same within ten (10) days from the date of any such request. Purchaser shall be responsible for paying, at Closing, all deposits required by any utility company in order to continue service at the Property for periods on or after Closing, and shall take any other action and make any other payments required to assume uninterrupted availability of utilities at the Property. At Purchaser’s election, if allowed by such utility company, all utility deposits made by Seller shall be credited to Purchaser by the utility company 

 

- 21 -

 

holding same if Purchaser pays Seller at Closing for same. If the Parties hereto are unable to obtain final meter readings as of Closing, then such expenses shall be estimated as of Closing based on the prior operating history of the Property.

14.1.3        Receivables. All revenues from the use and occupancy of the Property, including, without limitation, revenues from the rental of guest rooms, sales of food and beverages, rental of meeting and banquet rooms, telephone sales, paid television sales, the operation of laundries and vending machines, valet, garage and parking charges, travel agency indebtedness owed to Seller, any other contracts relating to the Property, and any funds due from credit card companies in connection therewith (collectively, “Hotel Revenues”) shall be prorated as of 11:59 p.m. New York time on the day prior to Closing. For a period of ninety (90) days after Closing, Purchaser shall use its reasonable, good faith efforts to collect all pre-Closing Hotel Revenues
and other pre-Closing receivables in the ordinary course of its business. Any Hotel Revenues or other receivables received by Purchaser and identified to be applicable to pre-Closing Hotel Revenues or receivables shall be forwarded to Seller. Any Hotel Revenues and other receivables received by Purchaser and identified to be applicable to post-Closing Hotel Revenues or receivables shall be retained by Purchaser. Any Hotel Revenues or other receivables received by Purchaser that cannot be identified as applicable to pre-Closing Hotel Revenues or receivables shall be applied first to post-Closing Hotel Revenues and receivables and then to pre-Closing Hotel Revenues and receivables. Purchaser shall remit any amount collected on Seller’s behalf on a monthly basis to Seller. After the expiration of such ninety (90) day period, Seller may use reasonable and customary efforts to collect any pre-Closing Hotel Revenue and other pre-Closing receivables. Half of the room Closing Guest Ledger (as hereinafter
defined), together with any Taxes (as hereinafter defined) allocable thereto for the night prior to Closing shall be credited to Seller and half shall be credited to Purchaser.

14.1.4        Accounts Payable. All accounts payable that are owing with respect to the Property on or before 11:59 p.m. New York time on the day prior to Closing shall be paid by Seller, and Seller agrees to indemnify, defend and hold Purchaser harmless from any liability or obligations with respect thereto. Seller shall provide Purchaser, at Closing, a list of all accounts payable expected to be payable after Closing, but allocable to periods 

 

- 22 -

 

prior to Closing and Seller shall make arrangement for payment of such amounts in a manner reasonably acceptable to Purchaser, which may include either providing a proration credit to Purchaser (in which case Purchaser shall pay, and indemnify Seller against non-payment of, such amounts payable). Purchaser shall furnish to Seller for payment any bills allocable to periods prior to Closing that are received after Closing. All accounts payable incurred with respect to the Property on or after Closing shall be paid by Purchaser, and Purchaser hereby agrees to indemnify, defend and hold Seller harmless from any liability or obligations with respect thereto. Purchaser and Seller shall each pay for half of any customary room cleaning charges incurred upon the date of Closing for rooms occupied the previous night. Seller shall pay for all charges for outside laundering, dry-cleaning and contract cleaning on
account of items used in connection with the operation of the Property before Closing, whether or not such items were returned by said date. Purchaser shall assume outstanding gift certificates, coupons and complimentary room nights or other services relating to the Property redeemable for dates after Closing, which items, as of the date hereof, are set forth in Exhibit J attached hereto and made a part hereof.

14.1.5        Cash on Hand. Purchaser shall pay Seller at Closing an amount equal to all cashier’s funds (consisting of various cash funds in the Hotel’s cash registers, petty cash boxes, administrative boxes and other cash holders) existing as of 11:59 p.m. New York time on the day prior to Closing and such cashier’s funds shall be part of the Property transferred to Purchaser at Closing.

14.1.6        Reservations. To the extent Reservations are reported in writing to Purchaser prior to Closing, Purchaser shall honor, for its account all pre-Closing Reservations confirmed for dates on or after Closing at the rates committed for in the ordinary course of business, or shall make other reasonable arrangements with other hotels of similar quality to accommodate all such Reservations for which the rates are committed. To the extent then known, Seller shall report such Reservations at least three (3) days prior to Closing. Purchaser hereby agrees to indemnify, defend and hold Seller harmless from and against any loss, liability, claims or damage due to Purchaser’s failure or refusal to honor any such Reservations or make other arrangements. Any
pre-Closing down payments made for confirmed Reservations for dates on or after Closing 

 

- 23 -

 

shall be paid or credited to Purchaser and Purchaser hereby agrees to indemnify, defend and hold Seller harmless from any liability or obligations with respect to deposits turned over to Purchaser or for which Purchaser received a credit against the Purchase Price at Closing. Any post-Closing down payment made on confirmed Reservations for dates on or after Closing received by Seller shall be forwarded to Purchaser immediately upon receipt.

14.1.7        Sales, Personal Property and Employment Taxes from Operation. Any sales tax (other than sales taxes arising from this transaction), personal property, use, bed, and employment taxes payable with respect to the operations of the Property (collectively, the “Taxes”) accrued as of 11:59 p.m. New York time on the day prior to Closing shall be paid by Seller as soon as the amount thereof can be determined; all taxes accruing thereafter shall be paid by Purchaser. Purchaser and Seller hereby agree to indemnify, defend and hold the other harmless from their respective failure to pay the Taxes due hereunder.

14.1.8        Sales Tax from this Transaction. Sales, use, excise or similar taxes (other than income taxes) that may be imposed by reason of this transaction shall be borne by Purchaser, and Purchaser agrees to indemnify, defend, and hold the Seller harmless from any failure to pay such taxes. This provision shall survive Closing.

14.1.9        Employee Wages and Benefits. Seller shall be solely responsible to cause and shall cash out by payment of all employee wages, salaries, gratuities, vacations, sick leaves, benefits and other payments, if any, in respect of operations of the Property through and including the day before Closing. Seller shall be responsible to cause the discharge of all obligations to the Employees for all sums owed to such Employees through and including the date immediately preceding Closing. Seller acknowledges that Purchaser or its agent may rehire the Employees in accordance herewith as new employees and without any successor liability or obligation relative to the Employees or any related benefits, vacation plans, sick leave plans or other benefits or policies
for periods prior to Closing.

14.1.10      Deposits. All refundable security deposits held by Seller for guest stays and functions to occur on or after Closing 

 

- 24 -

 

shall be credited or paid to Purchaser, and Purchaser hereby agrees to indemnify, defend, and hold Seller harmless with respect to any liability or obligation relating thereto.

14.1.11      Permits, Dues, Insurance. Fees paid for transferable permits and transferable hotel and trade association memberships shall be prorated as of 11:59 p.m. New York time on the day prior to Closing. Seller shall terminate all Seller’s insurance policies in respect of the Property as of Closing.

14.1.12      Postal Meters, Publications, Advertising. Postal meter rental and unused meter postage and trade publication subscriptions, advertising expenses, and credit information services shall be prorated as of 11:59 p.m. New York time on the day prior to Closing.

14.1.13      Miscellaneous. All other revenue and expenses of the Property customarily and appropriate to be apportioned shall be prorated and apportioned as of 11:59 p.m. New York time on the day prior to Closing.

14.2            Adjustments. Any revenue or expense amounts which cannot be ascertained with certainty as of Closing shall be prorated on the basis of the party’s reasonable estimate of such amounts and shall be subject to a final proration one hundred twenty (120) days after Closing as herein provided or as soon thereafter as the precise amounts can be ascertained. Either party owing money to the other based on any adjustments to the proration shall promptly pay such sum within ten (10) days after mutual agreement of the amount due. All prorations, unless otherwise provided herein, shall be on an accrual basis and based upon actual elapsed calendar days. Purchaser and Seller shall allow the other access to their respective books and
records to verify the prorations and adjustments provided in this Agreement.

14.3     Closing Statement. The parties shall cause a customary settlement or closing statement to be prepared (the “Closing Statement”) with respect to this ARTICLE 15 at least two (2) days before Closing and each party shall cause its designated representatives to assist Title Company in doing so.

14.4     Costs. Purchaser and Seller shall each pay at Closing one-half (1/2) of each and all of the following: (a) all Title Company escrow charges, (b) all transfer taxes, recordation taxes and documentary taxes which are payable upon the delivery and/or recording of each Deed or of any document contemplated by this Agreement and (c) the charges in connection with the recording of any instrument contemplated hereby. Purchaser shall be responsible for and shall pay (i) all sales
tax payable by reason of this transaction and (ii) all costs in connection with title insurance policies (including, without limitation, costs related to endorsements to the title policies) and surveys.

 

- 25 -

 

14.5     Special Assessments. If, at the date of Closing, the Property is affected by any special assessment, such special assessment shall be paid by Seller at or prior to Closing.

ARTICLE 15

 

BROKERAGE

15.1     Broker. Seller and Purchaser represent and warrant to each other that they have not dealt with any broker in connection with this transaction. Seller agrees to indemnify and hold Purchaser harmless from all loss, damage, costs and expenses (including reasonable attorneys’ fees and disbursements) that Purchaser may suffer as a result of any claim for a fee, commission or payment of any description brought by any person with whom Seller may have dealt in connection with this transaction. Purchaser agrees to indemnify and hold Seller harmless from all loss, damage, costs and expenses (including reasonable attorneys’ fees and disbursements) that Seller may suffer as a result of any claim for a fee, commission or payment of any description brought by any person
with whom Purchaser may have dealt in connection with this transaction. This ARTICLE 16 shall survive the Closing.

ARTICLE 16

 

THE DEPOSIT - ESCROW

	
 

	
16.1

	
Escrow Agent. 

16.1.1        The Deposit shall be delivered to LandAmerica Lawyers Title Corp. (“Escrow Agent”), 1850 North Central Avenue, Suite 300, Phoenix, Arizona 85004 (Attention: Kristin Brown) pursuant to this Agreement, and Escrow Agent shall hold the proceeds thereof in escrow and dispose of such sums only in accordance with the provisions of this Agreement.

16.1.2        Escrow Agent may place the Deposit in (a) certificates of deposit issued by a bank in Phoenix, Arizona, (b) money market funds in a bank with an office in Phoenix, Arizona or as otherwise approved in writing by Purchaser and Seller, (c) U.S. Treasury bills or other similar securities or (d) a segregated non-interest-bearing bank account in a bank with an office in Phoenix, Arizona. Any interest earned thereon shall be paid to the party entitled to receive the Deposit simultaneously with disbursement of the Deposit. The party receiving such interest shall pay any income taxes thereon.
At the Closing, the Deposit and the interest thereon, if any, shall be paid by Escrow Agent to Seller. If for any reason the Closing has not occurred, and 

 

- 26 -

 

either party makes a written demand upon Escrow Agent for payment of the Deposit stating the basis for such demand, Escrow Agent shall give written notice to the other party, of such demand alone, with a copy thereof. If Escrow Agent does not receive a written objection from the other party to the proposed payment within five (5)-days after the giving of such notice by Escrow Agent which objection states the basis therefor, Escrow Agent is hereby authorized to make such payment to the demanding party. If Escrow Agent does receive such written objection within such five (5) day period, or if for any other reason Escrow Agent in good faith shall elect not to make such payment, Escrow Agent shall continue to hold such amount until otherwise directed by written instructions from the parties to this Agreement or a final judgment or other proper order of a court and shall disburse said funds accordingly.
Escrow Agent shall send a copy of the objection to the original demanding party. However, Escrow Agent shall have the right at any time to deposit the escrowed proceeds and interest thereon, if any, with the clerk of a court in New York or with the clerk of the court in which any litigation between Seller and Purchaser is pending or in any other court which Escrow Agent may select in the New York metropolitan area in an action for interpleader, all costs thereof to be born by whichever of Seller or Purchaser is the losing party. Escrow Agent shall give written notice of such deposit to Seller and Purchaser. Upon such deposit or payment pursuant to this Agreement, Escrow Agent shall be relieved and discharged of all obligations and responsibilities hereunder.

16.1.3        The parties acknowledge that Escrow Agent is acting solely as a stakeholder at their request and for their convenience; that Escrow Agent shall not be deemed to be the agent of either of the parties; and that Escrow Agent shall not be liable to either party for any act or omission on its part unless taken or suffered in willful disregard of this Agreement. Escrow Agent may act upon any instrument or writing believed by Escrow Agent to be genuine and to be signed and presented by the proper party. Seller and Purchaser shall jointly and severally indemnify and hold Escrow Agent harmless from and against all costs, claims and expenses, including reasonable attorneys’ fees (including the value of same if Escrow Agent represents itself) incurred in connection with the
performance of Escrow Agent’s duties hereunder. Escrow Agent shall have no duties or responsibilities except those expressly set forth in this Agreement. Escrow Agent shall not be bound by any modification of this Agreement unless same is in writing, signed 

 

- 27 -

 

by Seller and Purchaser and delivered to Escrow Agent and if Escrow Agent’s duties are affected thereby, unless Escrow Agent shall have given prior written consent thereto. If Escrow Agent shall be uncertain as to its duties or rights hereunder or shall receive instructions from Purchaser or Seller which, in Escrow Agent’s opinion, are in conflict with any of the provisions hereof, Escrow Agent shall be entitled to hold or apply the Deposit, pursuant to Section 17.12 hereof, and may decline to take any other action.

ARTICLE 17

 

MERGER OF UNDERSTANDINGS

17.1     Merger. It is understood and agreed that all understandings and agreements heretofore had between the parties hereto are hereby merged into this Agreement which alone fully and completely expresses their agreement and that this Agreement is entered into after full investigation, neither party relying upon any statement or representations made by Seller or Purchaser or anyone else not embodied in this Agreement. This ARTICLE 18 shall survive the Closing and delivery of the Deed or other termination of this Agreement.

ARTICLE 18

 

MISCELLANEOUS

18.1            Recordation. Purchaser agrees that it shall not record this Agreement or any memorandum hereof, provided, however, the foregoing shall not preclude the Purchaser from filing or recording any lis pendens (or similar notice) in conjunction with the filing of an action for specific performance against Seller as may be permitted pursuant to Section 8.2(b) hereof. If Purchaser shall violate the provisions of the preceding sentence, Seller, at its sole option, may terminate this Agreement, receive as liquidated damages the Deposit, whereupon the obligations hereunder shall
terminate except those expressly stated to survive termination hereof, it being understood that actual damages sustained by Seller in the event of such a default are difficult, if not impossible, to ascertain. Notwithstanding whether or not Seller has received the Deposit, Purchaser shall cause all such recordings to be duly removed of record promptly, at its sole cost and expense. This Section 19.1 shall survive termination of this Agreement.

18.2     Insufficient Funds. If a payment made on account of the Purchase Price, whether the Deposit or otherwise, is by check, and if said check fails due collection, Purchaser shall be deemed in default hereunder, and Seller, at its sole option, may declare this Agreement terminated and may pursue its remedies against Purchaser upon said check and/or this Agreement or in any other manner permitted by law, such 

 

- 28 -

 

remedies being cumulative, but in no event shall Seller have any obligations to Purchaser hereunder.

18.3            Entire Agreement. This Agreement and the exhibits attached hereto embody the entire agreement existing between the parties in connection with this transaction, and there are no oral agreements between the parties relating to this transaction which are not expressly set forth herein. This Agreement may not be modified or, except as expressly provided to the contrary herein, canceled or terminated, except in a writing signed by all parties.

18.4     Waiver. Failure of either party to object to any act or omission on the part of the other party, no matter how long the same may continue, shall not be deemed to be a waiver by such party of any of its rights hereunder unless expressly provided to the contrary herein. No waiver by any party at any time, express or implied, of any breach of any provision of this Agreement shall be deemed a waiver of a breach of any other provision of this Agreement or a consent to any subsequent breach of the same or any other provision. If any action by any party shall require the consent or approval of another party, such consent or approval of such action on any one occasion shall not be deemed a consent to or approval of said action on any subsequent
occasion.

18.5     Assignment. Purchaser shall not have the right to assign its interest in this Agreement without obtaining the prior written consent of Seller, which consent may be withheld in Seller’s sole and absolute discretion. Notwithstanding the foregoing, Purchaser may assign its interest in this Agreement to an Affiliate, as hereinafter defined, of Purchaser, provided (a) Purchaser shall notify Seller of such assignment prior to Closing, (b) the assignee shall assume Purchaser’s obligations under this Agreement, (c) Purchaser
shall not be released from its obligations under this Agreement and (d) Purchaser shall deliver a duly executed copy of such assignment and assumption to Seller prior to Closing. Purchaser hereby agrees that any assignment by Purchaser in contravention of this provision shall be void and shall not relieve Purchaser of its obligations and liabilities hereunder. To the extent any assignment of Purchaser’s interest in this Agreement is consented to by Seller, the term “Purchaser,” as used in this Agreement, shall include such permitted assignee.

18.6      Captions. The captions, section numbers and article numbers appearing in this Agreement are inserted only as a matter of convenience and do not define, limit, construe or describe the scope or intent of such sections or articles of this Agreement. Furthermore, as used in this Agreement, any gender shall include any other gender, the singular shall include the plural, and the plural shall include the singular, wherever applicable.

18.7     Parties in Interest. No party other than Seller, Purchaser and their respective successors and permitted assigns shall have any rights to enforce or rely upon this Agreement. This Agreement is binding upon and made solely for the benefit of Seller, Purchaser and their respective successors and permitted assigns.

 

- 29 -

 

	
 

	
18.8

	
Notices

18.8.1        Except as expressly provided to the contrary in this Agreement, notices which must or may be given by any party hereto must be in writing and shall be deemed as given hereunder upon (a) actual receipt if by personal delivery to the addresses set forth below or, (b) if properly addressed, if sent by certified or registered mail, return receipt requested, two (2) business days after depositing such notice with postage prepaid at the rates and with the status certified or registered in a United States mailbox, (c) one (1) day after depositing such notice, with
proper payment or credit arrangement, in the custody of a nationally recognized overnight delivery service or (d) if by facsimile transmission (if printed confirmation of successful transmission is obtained from the sender’s telecopier and the same is confirmed telephonically by the sender), the date sent. Notice shall be deemed properly addressed if sent to the following addresses:

	
If to Seller:

	
Motels of America LLC and

Bond Street Associates, LLC

156 East 56th Street, Suite 1604

New York, NY 10019

Att: Paul F. Wallace

E-Mail: pwallace@broadstonegroup.net

Tele.:(212) 333-2100

Fax: (212) 957-2802

	
With a copy to:

	
McDermott, Will & Emery LLP

340 Madison Avenue

New York, NY 10017

Att.: Frank W. Cuiffo, Esq.

E-Mail: fcuiffo@mwe.com

Tele.: (212) 547-5388

Fax: (212) 547-5444

 

	
If to Purchaser:

	
Supertel Limited Partnership

309 N. 5th Street

Norfolk, NE 68701

Att.: Paul Schulte

Tele.: (402) 371-2520

Fax: (402) 371-4229

 

 

 

- 30 -

 

 

	
With a copy to:

	
McGrath North Mullin & Kratz, PC LLC

First National Tower, Suite 3700

1601 Dodge Street

Omaha, NE 68102

Att.: Robert G. Daily, Esq.

E-Mail: rdailey@mcgrathnorth.com

Tele.: (402) 341-3070

Fax.: (402) 341-0216

 

18.8.2        Except as set forth to the contrary herein, any party may designate, by notice in writing as above provided, a new or other address to which such notice or demand shall thereafter be so given, made or mailed.

18.8.3        The respective attorneys for the parties are hereby authorized (a) to give any notice which the party is required to give or may give under this Agreement; and (b) to agree to adjournments of Closing. It is understood that Seller’s counsel is McDermott Will & Emery LLP, and Purchaser’s Counsel is McGrath North Mullin & Kratz, PC LLC.

18.9            Choice of Law. This Agreement shall be governed by the laws of the State of New York, without cognizance to conflicts of law rules.

18.10          Survival. The provisions, representations, warranties, covenants and agreements of this Agreement shall not survive the Closing of the transaction contemplated hereby unless expressly stated herein to the contrary.

18.11          Construction. This Agreement has been executed after negotiation and the opportunity by both parties to have this Agreement reviewed and revised by legal counsel of their choice. None of the provisions of this Agreement shall be interpreted or construed against a party hereto solely by virtue of the fact that any such provision shall have been drafted by legal counsel representing such party.

18.12          Attorneys’ Fees. Should either party hereto institute any action or proceeding in court or through arbitration to enforce any provision hereof or for damages by reason of any alleged breach of any provision of this Agreement or for any other remedy, the prevailing party shall be entitled to receive from the losing party all reasonable attorneys’ fees and all court and/or arbitration costs in connection with said proceeding.

18.13         Time of the Essence. TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THE PURCHASER’S OBLIGATIONS UNDER THIS AGREEMENT.

 

- 31 -

 

18.14         Reporting Requirements. Seller and Purchaser shall comply with any and all reporting requirements applicable to the transaction which is the subject of this Agreement which are set forth in any law, statute, ordinance, rule, regulation, order or determination of any governmental authority. This Section 19.14 shall survive the Closing.

18.15          Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which together shall constitute one document.

18.16          Enforceability. If any portion of this Agreement is held to be unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

18.17          Amendment. This Agreement may be amended only by written agreement signed by both of the parties hereto.

18.18         Incorporation of Exhibits. All exhibits attached to this Agreement are incorporated into this Agreement by reference.

ARTICLE 19

 

CONFIDENTIALITY

19.1            Confidentiality. Notwithstanding anything to the contrary contained elsewhere herein, Purchaser hereby acknowledges that all information furnished by Seller to Purchaser or obtained by Purchaser in the course of Purchaser’s investigation of the Property, or in any way arising from or relating to any and all studies or entries upon the Property by Purchaser, its agents or representatives, shall be treated as confidential information and further, that if any such confidential information is disclosed to third parties, Seller may suffer damages and irreparable harm. In connection therewith, Purchaser hereby expressly understands, acknowledges, covenants and agrees (a) that Purchaser will not make any press release or other public disclosure (other than such disclosure as may be required in SEC filings required to be made by Purchaser) concerning this transaction and Purchaser will not disclose any of the contents or information contained in or obtained as a result of its due diligence or any other studies made in connection with Purchaser’s investigation of the Property, in any form whatsoever (including but not limited to, any oral information received by Purchaser during the course of Purchaser’s inspection of the Property), to any party other than (i) the Seller, the Seller’s employees, agents or representatives and the Purchaser’s agents, employees, representatives and consultants, without the prior express written consent of Seller (which consent shall not be unreasonably withheld); (ii) in response to lawful process or subpoena or other valid or enforceable order of a court of competent jurisdiction or as otherwise required to comply with laws; (iii) to Purchaser’s potential institutional lenders and their respective directors, officers, 

 

- 32 -

 

employees, agents and consultants; and (iv) to any permitted transferee or assignee of Purchaser and their respective directors, officers, employees and agents; (b) that in making any disclosure of such information as permitted hereunder, Purchaser will advise said parties of the confidentiality of such information and the potential of damage to Seller and the liability of Purchaser and such other party as a result of any disclosure of such information by said party; and (c) that Seller is relying on Purchaser’s covenant not to disclose any of the contents or information contained in any such review items or investigations to third parties (all of which is deemed to be confidential
information by the provisions of this section), and in the event this Agreement is terminated, Purchaser agrees to return to Seller all information, studies, and materials Purchaser or Purchaser’s agents, employees or consultants have obtained or commissioned with respect to the Property or the condition of the Property together with all documents Seller provided to Purchaser. Notwithstanding the foregoing, after Closing Purchaser may issue a press release in form and substance reasonably satisfactory to Seller and Purchaser with respect to this transaction.

19.2            Exclusions. Notwithstanding the forgoing, the following information shall not be considered confidential information subject to the provisions of Section 20.1:

(a)         information which is now part of or hereafter enters the public domain without a breach of this Agreement;

(b)        information known by Purchaser prior to the time of disclosure by Seller or independently developed by employees of Purchaser;

(c)         information which is approved for release by written authorization of Seller;

(d)        information which is disclosed to a third person by Seller, without similar restriction on such third person;

(e)         information required to be disclosed under court, agency or similar judicial or administrative order; or

(f)          information deemed appropriate by Purchaser to be disclosed to investors or pursuant to securities laws, rules or regulations, including, but not limited to, disclosures in any registration statements, reports or other filings with the SEC, press releases, the filing of this agreement and exhibits with any SEC filing, or information that discloses the execution of this Agreement, and the terms and closing of the transactions contemplated by this Agreement and financial 

 

- 33 -

 

statements and financial information with respect to the Property.

19.3            Survival. The provisions of this ARTICLE 20 shall survive the Termination of this Agreement.

ARTICLE 20

 

DEFINITIONS

20.1            Definitions. Wherever used in this Agreement, the following terms have the meanings set forth in this ARTICLE 2:

“Affiliate” shall mean any person controlling, controlled by or under common control with another person.

“Appurtenances” shall mean all of Seller’s right, title and interest in all rights of way, drives, rights in adjoining streets, sidewalks, alleyways, passages, curbs, berms and similar rights and areas used in connection with the Property; all development rights for the Land or Improvements, whether vested or not all planned unit development (PUD) plans and other development approvals for the Land and Improvements all appurtenant rights of lateral support and encroachment rights; and all leases of property off-site but used in connection with operation of the Improvements.

“Appurtenant Easements” shall mean all easements and licenses on or over land or improvements other than the Land and Improvements which benefit the Land or Improvements, including but not limited to all easements providing access to the Land from public streets, roads, courses, alleys and ways, all easements and licenses and agreements for location, maintenance, and replacement of off-premise signs of the business and utility service lines, the lands lying in the bed of any street adjacent to the Land and all easements for parking and storage on adjoining property.

“Assumed Contracts” shall have the meaning ascribed to such term in Section 12.2 hereof.

“Closing Guest Ledger” shall mean the transient guest room rentals for the night immediately preceding the Closing, receivable from registered guests of the Property who have not checked out and who are occupying rooms at 12:01 a.m. New York time on the Closing Date.

“Contracts” shall mean all contracts, agreements, rights and documents, and all amendments or modifications thereto, pertaining to or encumbering or affecting all or part of the Property to which Seller or any Hotel are a party, whether executed by Seller or in the name of a Property, or by which Seller or the Property are otherwise bound, or which does or with the passage of time will constitute an encumbrance on or limitation upon the Property or the use thereof or the conduct of the hotel therein, or may constitute 

 

- 34 -

 

a title defect, whether or not recorded in any recording offices, and including all amendments thereto and modifications thereof, including, without limitation: (a) certificates and warranties relating to the Personal Property, (b) all service, supply, utility, operating and maintenance documents with respect to the Property, (c) all documents affecting or related to the parking areas which are adjacent to, connected to or a part of the Property, (d) all documents relating to Appurtenances and Appurtenant Easements, (e) all conditional sales contracts or
leases for Personal Property, (f) transferable Permits and Licenses, (g) maintenance and service agreements for machinery or equipment on the Improvements or other Personal Property, (h) collective bargaining or other employment agreements, (i) options, ground leases, leases, occupancy agreements with respect to any property, real or personal, whether as grantor or grantee that relates or intended to be used exclusively in connection with the Property, (j) any management agreement relating to the operation of the Property and (k) leases of Personal
Property.

“Employees” shall mean all persons employed by Seller in connection with the management and operation of the Property during the pendency of this Agreement.

“Environmental Laws” shall mean any federal, state or local law, regulation or ordinance and any amendments thereto, permits, directives, and other requirements of Governmental Authorities relating to the environment (including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 to 9675), or to any Hazardous Materials.

“Excepted Items” shall mean the following property which is excluded from the definition of “Property” hereunder: (a) items owned by contractors and business entities and not used in operation of the Property, (b) cash in bank accounts, petty cash maintained at the Property, and checks and money orders to the extent Purchaser is not entitled to receive a credit therefor at Closing pursuant to this Agreement, (c) personal property owned by hotel guests or tenants under the Leases, (d) room reservation deposits of any kind or nature to the extent Purchaser is not entitled to receive a credit
therefor at Closing pursuant to this Agreement, (e) Receivables, (f) utility deposits, if any, of every type and nature, including any interest accrued thereon to the extent Seller does not receive a credit therefor at Closing, (g) accounts payable with respect to the Property, owing or accruing prior to the Closing and not expressly assumed by Purchaser in writing at Closing and (h) all other liabilities not expressly assumed by Purchaser in writing at Closing.

“Governmental Authorities” shall mean all federal, state, county, municipal and local governments, administrative agencies and quasi-governmental authorities having jurisdiction over the Property.

“Hazardous Materials” shall mean any substance which is or becomes defined as a “hazardous waste,” “hazardous substance” pollutant or contaminant under any Legal Requirements including, without limitation, the Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C. Section 9601 et seq.), as amended, 

 

- 35 -

 

and/or the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.), as amended, and/or the federal regulations such Acts; “Hazardous Materials” shall include, but is not limited to, petroleum products and asbestos.

“Improvements” shall mean all buildings, fixtures, betterments, improvements and structures erected or located on the Land and Appurtenant Easements at the date of this Agreement, including, without limitation, one hundred (100) hotel guest rooms and suites, or at any time between the date of this Agreement and the Closing in accordance herewith, including all machinery, equipment and fixtures owned by Seller and attached to such buildings and structures and used for operation or maintenance of the buildings and structures, all office facilities, lobby areas, meeting rooms, restaurants, lounges, bars, parking areas and driveway surfaces and curbs and drainage features, all landscaping, pool areas, if any, all utility lines and appurtenances and all signs and structural supports for signs.

“Knowledge of Seller” shall mean the actual knowledge of each of Paul F. Wallace and Kurt M. Mueller, both officers of MOA and the on-site property manager of each Property.

“Legal Requirements” shall mean all laws, codes. ordinances, rules, regulations, and requirements of all Governmental Authorities, existing, at the date of this Agreement or at any time between the date of this Agreement and the Closing, applicable to all or part of the Property or the ownership, operation. management. maintenance, development, improvements, repair, renovation, lease, sale, encumbering, transfer, use or manner of use of all or part of the property (including, without limitation, any law, code, ordinance, rule, regulation or requirement relating to Hazardous Substances).

“Permits and Licenses” shall mean all permits, licenses, entitlements, registrations, approvals certificates of occupancy, sales tax permits, and renewals thereof. Any liquor licenses or permits utilized in the operation of the business at the Property presently held by Seller or its affiliates. A list of such permits and licenses is attached hereto as Exhibit I and made part hereof.

“Personal Property” means all fixtures, furnishings, equipment, appliances, furniture, fixtures, trade fixtures, telephones, televisions, bedding, window treatments, safety equipment supplies, art, historic and/or other memorabilia and all other items of personalty which are now, or later may be, placed upon, attached to, or used in connection with the operation of the Property, regardless of whether enumerated herein, including, without limitation, furnaces, water heaters, boilers, plumbing and bathroom fixtures, piping, vehicles, mechanical systems, refrigeration, heating and air conditioning systems, sprinkler systems, washtubs, sinks, gas and electric fixtures, awnings, screens, ovens, stoves, kitchen appliances and fixtures, window shades, drapes, elevators, motors, cabinets, landscaping, uniforms, computers and computer equipment and related hardware (including, without limitation, front
and back house reservations and accounting systems), means to gain entry to all computers, databases and all other secured components of the 

 

- 36 -

 

Property, and all manuals, service or other information with respect to any of the Property held for use in connection with the Property. Except as disclosed herein (or on the Exhibits attached hereto), Seller does not lease any Personal Property used in connection with the Property but owns all such Personal Property.

“Real Estate” shall have the meaning ascribed to such term in Section 1.12 hereof.

“Receivables” means all accounts receivable of Seller as of the Closing arising from or related to the operation, management, use and occupancy of the Property prior to Closing, including one-half of the Closing Guest Ledger. Receivables shall include (but are not limited to) guest ledger receivables in the ordinary course of business and unpaid rents receivable under the Leases.

“Reservations” shall have the meaning ascribed to such item in Section 1.18 hereof.

END OF TEXT - SIGNATURE PAGE TO FOLLOW

- 37 -

 

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

SELLER:

MOTELS OF AMERICA LLC,

a Delaware Limited Liability Company

By: MOA INVESTOR CORP.,

its Managing Member

By: /s/ Lawrence Lopater

Name: Lawrence Lopater

Title: Vice President

PURCHASER:

SUPERTEL LIMITED PARTNERSHIP,

a Virginia Limited Partnership

	
 

	
By:

	
Supertel Hospitality REIT Trust,

its General Partner

	
 

	
By: 

	
/s/ Paul J. Schulte

Name: Paul J. Schulte

Title: President

The undersigned hereby acknowledges receipt of the Deposit and agrees to hold and dispose of the Deposit, and interest thereon, in accordance with the provisions of the foregoing Agreement.

ESCROW AGENT:

LANDAMERICA LAWYERS TITLE CORP.

By: 

Name:

Title:

 

LIST OF EXHIBITS

	
A

	
Property Address

	
A-1 through A-5

	
Land

	
B-1 through B-5

	
Personal Property

	
C

	
Title Encumbrances

	
D

	
Surveys

	
E

	
Leases

	
F

	
Litigation

	
G

	
Contracts

	
H

	
Non-Compete Agreement

	
I

	
Permits & Licenses

	
J

	
Gift Certificates

 

 

Exhibit A

	
MOTEL

	
ADDRESS

	
 

	
Comfort Inn

	
130 High Street
Ellsworth, Maine

 

	
 

	
Super 8

	
2935 Warm Springs
Columbus, Georgia

 

	
 

	
Super 8

	
2773 Elder
Boise, Idaho

 

	
 

	
Super 8

	
3089 South First Street
Terre Haute, Indiana

 

	
 

	
Super 8

	
South Gate Drive
Billings, Montana

 

 

1

 

Exhibit A

Property Addresses

	
 

	
•

	
2935 Warm Springs, Columbus, Georgia;

	
 

	
•

	
2773 Elder, Boise, Idaho;

	
 

	
•

	
3089 South First Street, Terre Haute, Indiana;

	
 

	
•

	
130 High Street, Ellsworth, Maine;

	
 

	
•

	
5400 South Gate Drive, Billings, Montana;

 

2

 

Exhibit A-1

2935 Warm Springs, Columbus, Georgia

 

Legal Description

 

Part of Land Lot 48 of the Eighth District of Muscogee County, Georgia, consisting of 1.169 acres and being more particularly described as Lot 20 on that replat of Part of Lot 2, Survey for The Jordan Company, dated April 17, 1984, and prepared by Moon, Meeks & Patrick, Inc., Civil Engineers, a copy of which is recorded in Plat Book 87, Page 68, in the Office of the Clerk of the Superior Court of Muscogee County, Georgia, to which plat reference is hereby made for a more particular location and dimensions of said lot.

The Property Identification Number(s) for the above described parcel(s) is as follows: 069-013004.

 

3

 

Exhibit A-2

2773 Elder, Boise, Idaho

 

Legal Description

 

A PORTION OF BLOCK 19 OF ELDER SUBDIVISION, ACCORDING TO THE PLAT THEREOF, FILED IN BOOK 13 OF PLATS AT PAGE 824, RECORDS OF ADA COUNTY, IDAHO, AND MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGINNING AT A BRASS CAP M ARKING THE SOUTHWEST CORNER OF THE SAID BLOCK 19 OF ELDER SUBDIVISION, ALSO SAID POINT BEING THE REAL POINT OF BEGINNING;

 

THENCE NORTH 00 DEGREE 05'58" WEST 300.29 FEET (FORMERLY 305.29 FEET) ALONG THE WESTERLY BOUNDARY OF THE SAID BLOCK 19 OF ELDER SUBDIVISION TO AN IRON PIN ON THE SOUTHERLY RIGHT-OF WAY LINE OF WEST ELDER STREET, AS FILED FOR RECORD IN THE OFFICE OF THE ADA COUNTY RECORDER, BOISE, IDAHO UNDER INSTRUMENT NO. 8408648;

 

THENCE NORTH 89 DEGREES 55'27" EAST 198.34 FEET (FORMERLY 199.85 FEET) ALONG THE SAID SOUTHERLY RIGHT-OF-WAY LINE OF WEST ELDER STREET TO AN IRON PIN;

 

THENCE LEAVING THE SAID SOUTHERLY RIGHT-OF-WAY LINE OF WEST ELDER STREET SOUTH 16 DEGREES 43'02" WEST 114.67 FEET (FORMERLY 119.89 FEET) ALONG A LINE NORTHWESTERLY OF AND PARALLEL TO THE NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH VISTA AVENUE, AS SHOWN ON THE STATE HIGHWAY PLANS OF INTERSTATE HIGHWAY I-84N (FORMERLY I-80N), FEDERAL AID PROJECT NO. 1-80N-2(15)50, AS FILED IN THE OFFICE OF THE DEPARTMENT OF TRANSPORTATION OF THE STATE OF IDAHO, TO AN IRON PIN;

 

THENCE SOUTH 72 DEGREES 14'23" EAST 129.45 FEET TO AN IRON PIN ON THE SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH VISTA AVENUE;

 

THENCE CONTINUING SOUTH 21 43'17" WEST 162.38 FEET ALONG THE SAID NORTHWESTERLY RIGHT-OF-WAY LINE FOR SOUTH VISTA AVENUE TO AN IRON PIN ON THE SOUTHERLY BOUNDARY OF THE SAID BLOCK 19 OF ELDER SUBDIVISION;

 

THENCE SOUTH 89 DEGREES 54'02" WEST 228.02 FEET ALONG THE SAID SOUTHERLY BOUNDARY OF BLOCK 19 OF ELDER SUBDIVISION TO THE POINT OF BEGINNING,

 

TOGETHER WITH AN EASEMENT FOR INGRESS-EGRESS OVER THE FOLLOWING DESCRIBED PROPERTY:

 

BEGINNING AT THE SOUTHWEST CORNER OF THE SAID BLOCK 19 OF ELDER SUBDIVISION;

 

4

 

THENCE NORTH 89 DEGREES 54'02" EAST 228.02 FEET ALONG THE SOUTHERLY BOUNDARY OF BLOCK 19 OF ELDER SUBDIVISION TO AN IRON PIN ON THE NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH VISTA AVENUE, AS SHOWN ON THE STATE HIGHWAY PLANS OF INTERSTATE I-84N (FORMERLY I-80N), FEDERAL AID PROJECT NO. I-80N-2(15)50, AS FILED IN THE OFFICE OF THE DEPARTMENT OF TRANSPORTATION OF THE STATE OF IDAHO,

 

THENCE NORTH 21 DEGREES 43'17" WEST 162.38 FEET ALONG THE SAID NORTHWESTERLY RIGHT-OF-WAY LINE FOR SOUTH VISTA AVENUE TO AN IRON PIN, ALSO SAID POINT BEING THE REAL POINT OF BEGINNING;

 

THENCE NORTH 72 DEGREES 14'23" WEST 43.00 FEET TO A POINT;

 

THENCE NORTH 62 DEGREES 55'30" EAST 59.56 FEET TO A POINT;

 

THENCE SOUTH 72 DEGREES 14'23" EAST 30.00 FEET ALONG A LINE NORTHEASTERLY OF AND PARALLEL TO THE SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH VISTA AVENUE TO A POINT ON THE SAID NORTHWESTERLY RIGHT-OF-WAY OF SOUTH VISTA AVENUE;

 

THENCE SOUTH 16 DEGREES 43'02" WEST 35.00 FEET ALONG THE SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH VISTA AVENUE TO A POINT;

 

THENCE NORTH 72 DEGREES 14'23" WEST 22.83 FEET ALONG A LINE NORTHEASTERLY OF AND PARALLEL TO THE SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF SOUTH VISTA AVENUE; THENCE SOUTH 62 DEGREES 55'30" WEST 9.93 FEET TO THE POINT OF BEGINNING.

 

5

 

Exhibit A-3

3089 South First Street, Terre Haute, Indiana

 

Legal Description

 

A part of the Northeast Quarter of the Northwest quarter of Section 4, Township 11 North, Range 9 West, described as follows: Beginning on the East line of said Northwest Quarter of said Section, 670 feet South from the Northeast comer of said Northwest Quarter of said Section; thence West 325 feet; thence South to the North line of Interstate Highway 1-70; thence Easterly along the North line of Interstate Highway 1-70 to a point which lies directly South of the point of beginning; and thence North along the East line of said Northwest Quarter of said Section to the point of beginning.

ALSO DESCRIBED PER SURVEY DATED OCTOBER 10, 1994 BY RONALD G. GEMLICH AS FOLLOWS:

A part of the Northeast Quarter of the Northwest Quarter of Section 4, Township 11 North, Range 9 West of the Second Principal Meridian, Vigo County, Indiana, being more particularly described as follows:

Beginning at a point on the East line of the said Northwest Quarter of Section 4, said point is South 0 degrees 00 minutes 00 seconds East 669.91 feet from the Northeast corner thereof; thence North 89 degrees 46 minutes 23 seconds West 324.90 feet; thence South 0 degrees, 03 minutes 24 seconds West 313.12 feet to the North right of way line of Interstate Highway thence along said North right of way line 25.29 feet along an curve to the left, ;,ki’av k a radius of 2719.76 feet, the chord of which is South 85 degrees 51 minutes 07 seconds’ East 25.29 feet; thence continuing along said North right of way line 307.42 feet along an curve ‘to the left, having a radius of 641.20 feet, the chord of which is North 80 degrees 08 minutes 48 seconds East 304.48 feet to the East line of the said Northwest Quarter of Section 4; thence along said East line North 0 degrees 00 minutes 00 seconds West 261.56 feet to the
point of beginning.

The above described parcel contains 2.251 acres or 98,062 sq. ft., more or less.

The Property Identification Number(s) for the above described parcel(s) is as follows: 19-090412-6003.

 

6

 

Exhibit A-4

130 High Street, Ellsworth, Maine

 

Legal Description

 

A certain lot or parcel of land, together with improvements thereon, situated in Ellsworth, Hancock County, Maine, bounded and described as follows:

 

Beginning at a railroad spike set In the easterly right of way line of U.S. Route 1 (High Street) at the northwest comer of land of Anderson described In deed recorded In Hancock County Registry of Deeds in Book 1685, Page 309; thence North 73° 33’20” East by and along the northerly bound of Anderson, aforesaid, 40 feet to a railroad spike; thence South 46° 15’35” East by and along the easterly bound of Anderson, aforesaid, 152.13 feet to a bolt set at the northeast comer of land of Coastal Auto Parts, Inc. described in deed recorded in Hancock County Registry of Deeds In Book 1544, Page 44; thence by a curve to the left with a radius of 1587.68 feet and the bound of land of Coastal Auto Parts, Inc., aforesaid, and land of B & B Properties described In deed recorded In Hancock County Registry of Deeds in Book 1789, Page 117, 229.64 feet to a point; thence North 59° 01’30”
East by and along land of B & B Properties, aforesaid, 139.46 feet to the right-of way line of land or formerly of Maine Central Railroad Company, thence by a curve to a right with a radius of 1465.68 feet by and along the right of way line of Maine Central Railroad Company, aforesaid, 580.64 feet to a point; thence by a curve to the right with a radius of 937.67 feet by and along the right of way line of land now or formerly of Maine Central Railroad Company, aforesaid, 318.73 feet to a point on the easterly side of U.S. Route I (High Street), which point bears South 150 44’150 East 13.18 feet from D.O.T. Monument Station 131 + 73.89; thence South 15° 44’ 15” East by and along the easterly right of way line of U.S. Route I (High Street), 513.65 feet to the point of beginning. 

Courses and distances according to survey by Herrick & Salsbury, Inc., dated April 25, 1990. 

	

 

	
PIN# 135 47

	
ACCT# CO138R

 

7

 

Exhibit A-5

5400 South Gate Drive, Billings, Montana

 

Legal Description

 

Lot 6, Block 3, of Southgate Subdivision, 1st Filing, in the City of Billings, Yellowstone County, Montana, according to the official plat on file in the office of the Clerk and Recording of said County, under Document No. 1134402.

PIN #A24756

5400 Southgate Drive, Billings, Montana

                                                                                                                                   8

Exhibit B-1

2935 Warm Springs, Columbus, Georgia;

 

Personal Property

	
FURNITURE & FIXTURES 

	
AS OF September 26, 2006

	
 

	
 

	
 

	
 

	
 

	
Guest Rooms Summary ( Guest Room Detailed Inventory Sheet Attached )

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Queen Rooms

	
44

	
 

	
 

	
 

	
DBL Queen Rooms

	
30

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
118

	
Queen Sets

	
 

	
 

	
120

	
Art

	
 

	
 

	
 

	
149

	
Wall Lamps

	
 

	
 

	
23

	
Floor Lamps

	
 

	
 

	
51

	
Arm Chairs

	
 

	
 

	
69

	
Desk Chair

	
 

	
 

	
28

	
Easy Chair

	
 

	
 

	
73

	
Desk

	
 

	
 

	
 

	
74

	
Credenza

	
 

	
 

	
 

	
67

	
N. Stand

	
 

	
 

	
 

	
74

	
Mirror Framed

	
 

	
 

	
73

	
Hair Dryer

	
 

	
 

	
 

	
73

	
C. Radio

	
 

	
 

	
 

	
74

	
TV

	
 

	
 

	
 

	
75

	
HVAC

	
 

	
 

	
 

	
73

	
IN-Rm Safe

	
 

	
 

	
74

	
Telephones

	
 

	
 

	
8

	
Micro fridge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lobby

	
 

	
 

	
 

	
 

	
1

	
table lamps

	
 

	
 

	
1

	
end tables

	
 

	
 

	
2

	
Chairs

	
 

	
 

	
 

	
1

	
large silk plants

	
 

	
 

	
3

	
misc. wall hangings

	
 

	
 

	
1

	
microwave

	
 

	
 

	
Vending Room

	
 

	
 

	
 

	
2

	
coin operated dryers

	
 

	
 

	
2

	
coin operated washers

	
 

	
1

	
Ice machine

	
 

	
 

	
2

	
tables

	
 

	
 

	
 

	
8

	
chairs

	
 

	
 

	
 

	
1

	
toaster

	
 

	
 

	
 

	
1

	
microwave

	
 

	
 

	
3

	
wood cupboards

	
 

	
 

	
1

	
pastry server

	
 

	
 

	
1

	
zenith TV

	
 

	
 

	
 

	
4

	
misc. wall hangings

	
 

	
 

 

 

9

 

 

	
Office and Front Desk

	
 

	
 

	
1

	
Mitel SX-200 phone system

	
 

	
1

	
American Express C/C imprinter

	
 

	
1

	
Muratec Copier/fax

	
 

	
 

	
2

	
sentry safe

	
 

	
 

	
1

	
Security W/ 5 monitors

	
 

	
1

	
ving card electronic key encoder

	
 

	
1

	
electronic labeler

	
 

	
 

	
1

	
first aid kit

	
 

	
 

	
1

	
desks

	
 

	
 

	
 

	
2

	
chairs

	
 

	
 

	
 

	
1

	
key cabinets

	
 

	
 

	
2

	
calculators

	
 

	
 

	
1

	
VCR

	
 

	
 

	
 

	
 

	
Property management System

	
 

	
Storage/Housekeeping/Laundry

	
 

	
3

	
rollaways

	
 

	
 

	
 

	
7

	
large housekeeping carts

	
 

	
1

	
washer

	
 

	
 

	
 

	
2

	
dryers

	
 

	
 

	
 

	
2

	
baby cribs

	
 

	
 

	
7

	
vacuums

	
 

	
 

	
 

	
1

	
Oasis station

	
 

	
 

	
1

	
sheet folder

	
 

	
 

	
2

	
mop bucket

	
 

	
 

	
5

	
laundry baskets

	
 

	
 

	
1

	
fans

	
 

	
 

	
 

	
1

	
wet vac

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Maintenance Room

	
 

	
 

	
 

	
1

	
Step Ladder

	
 

	
 

	
1

	
box exit light bulbs

	
 

	
 

	
1

	
water hose

	
 

	
 

	
1

	
extension ladder

	
 

	
 

	
1

	
dollies

	
 

	
 

	
 

	
1

	
Blower

	
 

	
 

	
 

	
1

	
miscellaneous maintenance supplies

	
 

	
1

	
tool box w/miscellaneous tools

	
 

	
1

	
miscellaneous paint and supplies

	
 

	
 

	
 

	
 

	
 

	
 

	
GM Office

	
 

	
 

	
 

	
1

	
Dell PC W/Printer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1

	
Caculator

	
 

	
 

	
 

	
1

	
Desk

	
 

	
 

	
 

	
1

	
Chairs

	
 

	
 

	
 

	
2

	
File Cabinets

	
 

	
 

	
1

	
HVAC

	
 

	
 

	
 

	
Hallways & Stairs

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
12

	
Fire Ext

	
 

	
 

	
 

 

 

10

 

 

	
6

	
Fire Hoses

	
 

	
 

	
3

	
HVAC Units

	
 

	
 

 

11

 

Exhibit B-2

2773 Elder, Boise, Idaho

Personal Property

	
Boise Super 8 Motel

	
 

	
 

	
 

	
Inventory and equipment list

	
 

	
 

	
 

	
Number of queen beds on property

	
154

	
Number of king beds on property

	
10

	
 

	
 

	
Laundry room:

	
 

	
 

	
 

	
Washing machines

	
 

	
Wascomat W 185

	
1

	
Speed Queen

	
1

	
 

	
 

	
Dryers

	
 

	
Huebsch Originator

	
1

	
Speed Queen

	
2

	
 

	
 

	
Maid carts

	
8

	
Vacuums

	
8

	
 

	
 

	
Misc. Office

	
 

	
 

	
 

	
CanoScan N6700 Scanner

	
 

	
HP Deskjet 5940 Printer

	
 

	
Sharp EL Calculator

	
 

	
Canon P Calculator - 3

	
 

	
IBM Think Centre/Monitor?keyboard?mouse

	
 

	
Lexmark T630 Printer – not working

	
 

	
E-Machine CPU

	
 

	
STAR DP8340 printer

	
 

	
Cannon A4pqi Copier

	
 

	
 

	
 

	
 

	
 

	
Breakfast and snack area:

	
 

	
Square tables - 2

	
 

	
Chairs - 6

	
 

	
TV - 2

	
 

	
Stack washer and dryers - 2

	
 

	
Large upright freezer

	
 

	
Refrigerator

	
 

	
Airports

	
 

	
Toasters - 2

	
 

	
Microwave - 1

	
 

 

12

 

 

	
Lobby:

	
 

	
 

	
 

	
Leather Love seat - 1

	
 

	
Wingback chairs - 2

	
 

	
Chair / Ottoman - 1

	
 

	
Breakfast tables - 5

	
 

	
Breakfast chairs - 15

	
 

	
Coffee table - 1

	
 

	
End tables - 2

	
 

	
Table lamps - 2

	
 

	
Antique buffet - 1

	
 

	
Wooden rolling cart - 1

	
 

	
Shelf with glass doors bookcase - 1

	
 

	
Computer desk Mission style - 1

	
 

	
Desk chair - 1

	
 

	
Guest computer – 1 Monitor, mouse

	
 

	
Lexmark printer - 1

	
 

	
Wooden bench - 1

	
 

	
 

	
 

	
Ice Machines

	
 

	
 

	
 

	
Manitowoc - 1

	
 

	
Hoshizaki - 1

	
 

	
 

	
 

	
Phone System

	
 

	
 

	
 

	
Mitel SX 200

	
 

	
 

	
 

	
Pool Area:

	
 

	
 

	
 

	
Pool Vac - 1

	
 

	
White chairs - 8

	
 

	
Table with umbrella - 1

	
 

	
Bench - 1

	
 

	
Life preserver - 1

	
 

	
Pool hook - 1

	
 

	
Misc. testing equipment and supplies

	
 

	
 

	
 

	
Maintenance:

	
 

	
 

	
 

	
Misc. hand power tools

	
 

	
Misc. landscape tools, rakes, shovels, brooms

	
 

	
Leaf blower

	
 

	
Power Washer 2500 PSI

	
 

	
Step Ladder

	
 

 

 

13

 

Exhibit B-3

3089 South First Street, Terre Haute, Indiana

Personal Property

	
Terre Haute Super 8

	
FURNITURE & FIXTURES 

	
AS OF September 26, 2006

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Guest Rooms Summary ( Guest Room Detailed Inventory Sheet Attached )

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
61

	
Queen Rooms

	
 

	
 

	
 

	
 

	
 

	
54

	
DBL Queen Rooms

	
 

	
 

	
 

	
 

	
 

	
2

	
King Rooms

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
168

	
Queen Sets

	
 

	
 

	
 

	
 

	
2

	
King Sets

	
 

	
 

	
 

	
 

	
 

	
170

	
Art

	
 

	
 

	
 

	
 

	
 

	
234

	
Wall Lamps

	
 

	
 

	
 

	
 

	
51

	
Floor Lamps

	
 

	
 

	
 

	
 

	
106

	
Arm Chairs

	
 

	
 

	
 

	
 

	
110

	
Desk Chairs

	
 

	
 

	
 

	
 

	
19

	
Easy Chair

	
 

	
 

	
 

	
 

	
117

	
Desk

	
 

	
 

	
 

	
 

	
 

	
119

	
Night Stand

	
 

	
 

	
 

	
 

	
117

	
Credenza

	
 

	
 

	
 

	
 

	
 

	
117

	
Mirrows Framed

	
 

	
 

	
 

	
 

	
117

	
Hair Dryer

	
 

	
 

	
 

	
 

	
 

	
117

	
Clock Radios

	
 

	
 

	
 

	
 

	
117

	
TV

	
 

	
 

	
 

	
 

	
 

	
117

	
HVAC

	
 

	
 

	
 

	
 

	
 

	
117

	
In-Room Safe

	
 

	
 

	
 

	
 

	
20

	
Micro Fridge

	
 

	
 

	
 

	
 

	
2

	
Sofa

	
 

	
 

	
 

	
 

	
 

	
2

	
Love Seat

	
 

	
 

	
 

	
 

	
 

	
117

	
Telephones

	
 

	
 

	
 

	
 

	
 

	
 

	
Lobby & Breakfast Area

	
 

	
 

	
 

	
2

	
small silk plants

	
 

	
 

	
 

	
 

	
2

	
large silk plants

	
 

	
 

	
 

	
 

	
3

	
luggage cart

	
 

	
 

	
 

	
 

	
6

	
misc. wall hangings

	
 

	
 

	
 

	
 

	
2

	
coin operated dryers

	
 

	
 

	
 

	
 

	
2

	
coin operted washers

	
 

	
 

	
 

	
 

	
2

	
Ice machine

	
 

	
 

	
 

	
 

	
15

	
tables

	
 

	
 

	
 

	
 

	
 

	
29

	
chairs

	
 

	
 

	
 

	
 

	
 

	
3

	
toaster

	
 

	
 

	
 

	
 

	
 

	
1

	
microwave

	
 

	
 

	
 

	
 

 

 

14

 

 

	
1

	
wood cupboards

	
18 feet of cupboard Space

	
 

	
 

	
1

	
pastry server

	
 

	
 

	
 

	
 

	
1

	
zenith tv

	
 

	
 

	
 

	
 

	
 

	
2

	
silk plants

	
 

	
 

	
 

	
 

	
 

	
4

	
Misc.Art Work

	
 

	
 

	
 

	
 

	
1

	
Mirrow

	
 

	
 

	
 

	
 

	
 

	
Office and Front Desk

	
 

	
 

	
 

	
 

	
1

	
Mitel SX 200

	
 

	
 

	
 

	
 

	
1

	
wall-mounted clock

	
 

	
 

	
 

	
 

	
1

	
American Express C/C imprinter

	
 

	
 

	
 

	
1

	
Brother Printer/Fax/Cpoier

	
 

	
 

	
 

	
 

	
1

	
sentry safe

	
1

	
Royal Paper Shredder

	
 

	
1

	
ving card electronic key encoder

	
 

	
 

	
 

	
1

	
electronic labeler

	
1

	
US Robotics Credit Card Modem

	
1

	
first aid kit

	
1

	
Lexmark MFC 8440 Printer

	
1

	
desks

	
 

	
1

	
HP Media Center PC w/Monitor & Keyboard

	
2

	
chairs

	
 

	
1

	
Uniden Cordless Telephone

	
2

	
file cabinets - 

	
1

	
Phillips DVD Sound System

	
1

	
key cabinets

	
1

	
Small Bank Safe

	
 

	
2

	
calculators

	
1

	
Frigidaire 18 cu ft Fridge

	
1

	
VCR

	
 

	
4

	
Uniden 2 Way Radios

	
 

	
1

	
small table with chair

	
2

	
Regular Ironing Boards

	
 

	
3

	
TDD machine

	
4

	
Small Ironing Boards

	
 

	
1

	
PMS Motel1 & 2

	
6

	
Irons

	
 

	
 

	
 

	
miscellaneous office supplies

	
 

	
 

	
 

	
1

	
Dell PC W Printer

	
1

	
Dell PC w/monitor and Keyboard

	
Storage/Housekeeping/Laundry

	
 

	
 

	
 

	
4

	
rollaways

	
 

	
 

	
 

	
 

	
 

	
7

	
large housekeeping carts

	
1

	
Frigidaire 18 cu ft Fridge

	
1

	
Folding Table

	
 

	
 

	
 

	
 

	
2

	
washer

	
 

	
 

	
 

	
 

	
 

	
3

	
dryers

	
 

	
1

	
Upright Freezer

	
 

	
3

	
baby cribs

	
1

	
Chest Freezer

	
 

	
8

	
vacuums

	
 

	
 

	
 

	
 

	
 

	
1

	
Oasis station

	
 

	
 

	
 

	
 

	
1

	
sheet folder

	
 

	
 

	
 

	
 

	
1

	
mop bucket

	
 

	
 

	
 

	
 

	
8

	
laundry baskets

	
 

	
 

	
 

	
 

	
1

	
fans

	
 

	
 

	
 

	
 

	
 

	
1

	
hand held vacuum

	
 

	
 

	
 

	
 

	
2

	
sled chair

	
 

	
 

	
 

	
 

	
 

	
2

	
case of hangers

	
 

	
 

	
 

	
 

	
1

	
cases lampshades

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Maintenance Room

	
 

	
 

	
 

	
 

	
 

	
1

	
step ladder

	
1

	
2200 PSI Pressure Washer

	
1

	
shovel

	
 

	
1

	
Pick Axe

	
 

	
 

	
2

	
snow shovel

	
1

	
Leaf Rake

	
 

	
 

	
1

	
Grass rake

	
1

	
Hoover Carpet Extractor

	
 

 

 

15

 

 

	
2

	
water hose

	
1

	
Hose Cart

	
 

	
 

	
1

	
extension ladder

	
1

	
Carpet Dryer Blower

	
 

	
2

	
dollie

	
 

	
1

	
Room Odor Extractor

	
 

	
1

	
miscellaneous maintenance supplies

	
 

	
 

	
 

	
1

	
tool box w/miscellaneous tools

	
 

	
 

	
 

	
1

	
miscellaneous paint and supplies

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
GM Office

	
 

	
 

	
 

	
 

	
 

	
1

	
IBM Hard Drive

	
Motel 3

	
1

	
Mitel Superset 4025 Telephone

	
1

	
Monitor & Key Board

	
1

	
Dell PC w/Monitor & Keyboard

	
1

	
Printer

	
Dell AIO 942

	
1

	
Rechargable Wireless Mouse

	
1

	
Desk

	
 

	
1

	
Microfridge Electronic Safe

	
4

	
Chairs

	
 

	
1

	
Royal Paper Shredder

	
1

	
File Cabinets

	
1

	
Credenza

	
 

	
 

	
1

	
HVAC

	
 

	
1

	
End Table

	
 

	
 

	
1

	
Panasonic 27" TV

	
1

	
Wall Clock

	
 

	
Hallways & Stairs

	
 

	
1

	
Canon P100 Calculator

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
12

	
Fire Ext

	
 

	
 

	
 

	
 

	
 

	
5

	
HVAC Units

	
 

	
 

	
 

	
 

									

 

 

16

 

Exhibit B-4

130 High Street, Ellsworth, Maine

Personal Property

	
Ellsworth Comfort Inn

	
FURNITURE & FIXTURES 

	
AS OF September 26, 2006

	
 

	
 

	
 

	
 

	
Guest Rooms Summary ( Guest Room Detailed Inventory Sheet Attached )

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2

	
Queen Rooms

	
 

	
 

	
49

	
DBL Queen Rooms

	
 

	
 

	
12

	
King Rooms

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
102

	
Queen Sets

	
 

	
10

	
King Sets

	
 

	
 

	
126

	
Art

	
 

	
 

	
201

	
Wall Lamps

	
 

	
10

	
Floor Lamps

	
 

	
99

	
Arm Chairs

	
 

	
14

	
Desk Chair

	
 

	
11

	
Easy Chair

	
 

	
14

	
Desk 

	
 

	
 

	
49

	
Table 

	
 

	
 

	
77

	
N. Stand

	
 

	
 

	
63

	
Credenza

	
 

	
 

	
63

	
Mirror Framed

	
 

	
63

	
Mirror Full

	
 

	
 

	
63

	
Hair Dryer

	
 

	
 

	
63

	
C. Radio

	
 

	
 

	
63

	
TV

	
 

	
 

	
63

	
HVAC

	
 

	
 

	
63

	
Iron & Board

	
 

	
10

	
Micro Fridge

	
 

	
63

	
Telephones

	
 

	
Lobby

	
 

	
 

	
 

	
3

	
table lamps

	
 

	
3

	
end tables

	
 

	
2

	
large silk plants

	
 

	
1

	
luggage cart

	
 

	
3

	
misc. wall hangings

	
 

	
5

	
chairs

	
 

	
 

	
Vending Room

	
 

	
 

	
1

	
Ice machine

	
 

	
11

	
tables

	
 

	
 

	
22

	
chairs

	
 

	
 

	
1

	
toaster

	
 

	
 

 

 

17

 

 

	
1

	
microwave

	
 

	
3

	
wood cupboards

	
 

	
2

	
zenith tv

	
 

	
 

	
2

	
silk plants

	
 

	
 

	
4

	
misc. wall hangings

	
 

	
2

	
Refrigerators For Food Storage

	
 

	
 

	
 

	
 

	
Office and Front Desk

	
 

	
1

	
Mitel SX-50 phone system

	
1

	
nabanco system and verifone printer

	
1

	
wall-mounted clock

	
 

	
1

	
American Express C/C imprinter

	
1

	
Brother fax machine

	
 

	
1

	
salvin copier

	
 

	
1

	
sentry safe

	
 

	
1

	
Security W/ 5 monitors

	
1

	
ving card electronic key encoder

	
1

	
Dell- PC for controlling electronic reader board

	
1

	
Dell PC With Printer On GM desk

	
1

	
first aid kit

	
 

	
1

	
desks

	
 

	
 

	
2

	
chairs

	
 

	
 

	
1

	
file cabinets - 

	
 

	
1

	
key cabinets

	
 

	
2

	
calculators

	
 

	
1

	
VCR

	
 

	
 

	
1

	
small table with 2 chairs

	
1

	
TDD machine

	
 

	
1

	
Property management System w/2 stations

	
 

	
 

	
 

	
 

	
Storage/Housekeeping/Laundry

	
2

	
rollways

	
 

	
 

	
5

	
large housekeeping carts

	
1

	
washer

	
 

	
 

	
2

	
dryers

	
 

	
 

	
2

	
baby cribs

	
 

	
5

	
vacuums

	
 

	
 

	
1

	
Oasis station

	
 

	
1

	
sheet folder

	
 

	
1

	
mop bucket

	
 

	
4

	
laundry baskets

	
 

	
1

	
wet vac

	
 

	
 

	
1

	
step ladder

	
 

	
 

	
 

	
 

	
 

	
Maintenance Room

	
 

	
 

	
 

	
wheelbarrow

	
 

	
 

	
shovel

	
 

	
 

	
2

	
snow shovel

	
 

	
 

	
box exit light bulbs

	
 

	
2

	
water hose

	
 

	
 

	
soaker hoses

	
 

 

 

18

 

 

	
 

	
extension ladder

	
 

	
1

	
dolly

	
 

	
 

	
 

	
doors

	
 

	
 

	
 

	
electric weed eater

	
 

	
1

	
miscellaneous maintenance supplies

	
1

	
tool box w/miscellaneous tools

	
1

	
miscellaneous paint and supplies

	
 

	
 

	
 

	
 

	
Exercise Room

	
 

	
 

	
1

	
RCA TV

	
 

	
 

	
2

	
Life Cycle Pedal Units

	
1

	
Life Step

	
 

	
 

	
1

	
Hoist Fitness Weight Machine

	
1

	
HVAC

	
 

	
 

	
1

	
Crdenza

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Hallways & Stairs

	
 

	
 

	
 

	
 

	
 

	
 

	
6

	
Fire Ext

	
 

	
 

	
1

	
HVAC Units

	
 

 

 

19

 

Exhibit B-5

5400 South Gate Drive, Billings, Montana

Personal Property

	
Billings Super 8 Motel

	
 

	
Inventory and Misc. 

	
 

	
 

	
 

	
 

	
 

	
Number of queen bends on property

	
146

	
Number of king beds on property

	
8

	
 

	
 

	
Laundry room:

	
 

	
 

	
 

	
Washing Machines

	
 

	
MILNOR System 4

	
 

	
UNIMAC UV60PVQU 7001

	
 

	
 

	
 

	
Dryers

	
 

	
UNIMAC UTF57NRMF661 WD4 (2)

	
 

	
SPEED QUEEN (2)

	
 

	
 

	
 

	
Misc. laundry and housekeeping equipment:

	
 

	
 

	
 

	
Sensor Vacs - 8

	
 

	
Main Carts - 8

	
 

	
Mops and buckets

	
 

	
Maid Caddies - 12

	
 

	
 

	
 

	
Maintenance Equipment and Supplies

	
 

	
Misc. maintenance supplies

	
 

	
Commercial shampooer - 1

	
 

	
Bissal Carpet cleaner - 1

	
 

	
Step ladder 7 ft - 1

	
 

	
Small sprayer

	
 

	
Various misc. power and hand tools

	
 

	
Utility cart - 1

	
 

	
Shop vac - 1

	
 

	
Outside storage shed

	
 

	
 

	
 

	
Snack and breakfast area

	
 

	
Coin op washers - 2

	
 

	
Coin op stack drying - 2

	
 

	
Breakfast plastic display unit - 1

	
 

	
Juice dispenser

	
 

	
Breakfast tables - 6

	
 

	
Breakfast chairs - 22

	
 

	
Refrigerators - 2

	
 

	
Freezer – 1

	
 

 

 

20

 

 

	
 

	
 

 

	
Meeting room

	
 

	
Tables - 13

	
 

	
Chairs - 36

	
 

	
Chairs with arms - 6

	
 

	
Table cloths - 36

	
 

	
AV Cart - 1

	
 

	
Television - 1

	
 

	
Flip Boards - 1

	
 

	
 

	
 

	
Telephone System

	
 

	
Mitel 50

	
 

	
 

	
 

	
Lobby Area

	
 

	
Leather recliners - 2

	
 

	
Sofa - 1

	
 

	
Upholstered chairs - 2

	
 

	
Floor area rugs - 2

	
 

	
Antique oak wood table, round - 1

	
 

	
Oak Chairs - 4

	
 

	
Antique upright piano - 1

	
 

	
Antique side bar buffet - 1

	
 

	
End tables and lamps - 2

	
 

	
Coffee table square - 1

	
 

	
 

	
 

	
Managers office and front desk

	
 

	
Desks - 2

	
 

	
Office chair - 1

	
 

	
Printer – 4 in 1 - 1

	
 

	
Safe - 1

	
 

	
Lateral file cabinet - 1

	
 

	
Computer printers - 4

	
 

	
File cabinets - 3

	
 

	
Wall cabinets - 2

	
 

	
Copier - 1

	
 

	
Fax Machine - 1

	
 

	
Front Desk property management systems with 3 monitors and 3 file servers

	
 

	
Personal Computers for guests - 2

	
 

	
Adding machines - 3

	
 

	
Compact refrigerator/freezer - 1

	
 

	
 

	
 

	
Exercise Room

	
 

	
Treadmill - 1

	
 

	
Weight center - 1

	
 

 

 

21

 

 

	
Stair stepper - 1

	
 

	
Bicycle - 1

	
 

 

22

 

Exhibit C

 

Covenants & Restrictions

 

SITE SPECIFIC:

 

2935 Warm Springs, Columbus, Georgia

	
1.

	
Lack of Access to Columbus-Manchester Expressway, as disclosed by survey of Moon, Meeks & Patrick, Inc. dated April 17, 1984, recorded in Plat Book 87, page 68, Muscogee County, Georgia records.

	
2.

	
Easement for the installation and maintenance of one anchor and pole with wires, dated November 2, 1966 by Retro, Inc. to Georgia Power Company, recorded in Deed Book 1095, page 99, aforesaid records.

	
3.

	
Temporary Construction Easement left of Project Number H-8016(1) Construction Centerline Station 64 + 31.12 to left of Project Number M-8016(1) Construction Centerline Station 66 + 29.24. 

	
4.

	
Temporary Driveway Easement left of Project Number M-8016(1) Construction Centerline Station 64 + 91 to left of Project Number M-8016(1) Construction Centerline Station 65 + 31.

	
5.

	
Easement to Georgia Power Company dated March 6, 1985, recorded in Deed Book 2437, page 181, aforesaid records.

	
6.

	
Two Agreements (terminable by notice) between Harley H. Hoffman and Naegele Outdoor Advertising Co. pursuant to which two bill board signs are maintained on the Property, as referred to in the warranty Deed from Harley H. Hoffman to Columbus, Georgia Super 8 Motel, Inc., dated November 15, 1984, recorded in Deed Book 2385, page 269, aforesaid records.

2773 Elder, Boise, Idaho

	
1.

	
Covenants, conditions, restrictions and easements contained in Deed to the State of Idaho, conveying a portion of the property adjoining, recorded January 31, 1967 as Instrument No. 657186. 

	
2.

	
Covenants, conditions, restrictions and easements contained in Deed recorded October 11, 1973 as Instrument No. 863275.

	
3.

	
Easement containing certain terms, conditions and provisions affecting a portion of said premises and for the purposes stated herein in favor of Boise City, a Municipal corporation, recorded April 2, 1978 as Instrument No. 7816764.

	
4.

	
Avigation Easement containing certain terms, conditions and provisions affecting a portion of the premises and for the purposes stated herein in favor of Boise City, a municipal corporation recorded January 12, 1978, as Instrument No. 7801966.

 

23

 

3089 South First Street, Terre Haute, Indiana

	
1.

	
Limited access to United States Highway I-70 on south, established by deed dated July 11, 1961, executed to the State of Indiana, recorded September 11, 1964 in Deed Record 325, Page 542.

	
2.

	
Twelve foot water line easement off the East side of tract, granted to the Terre Haute Water Works Corporation by instrument dated January 20, 1963 and recorded April 7, 1964 in Deed Record 333, page 520.

	
3.

	
Right-of-Way of South First Street over 30 feet off the East side of tract, reserved 

by deed dated December 31, 1968, executed Honey Creek Corporation to Illiana Telecasting Corp., recorded December 31, 1968 in Deed Record 346, page 959-2.

	
4.

	
Sewer facilities rights in favor of Honey Creek Corporation, established by Agreement dated December 31, 1968, executed by Honey Creek Corporation and Harry J. Adams, Adams-Pontiac, Inc. and Adams Truck, Inc., recorded January 10, 1969 in Misc. Record 167, page 764-2. 

	
5.

	
Restrictive use provisions contained in Article XX of Lease dated October 13, 1967, executed by Honey Creek Square, Inc., as Landlord, to Honey-Creek Root Store Co., Inc. as Tenant, recorded December 11, 1967 in lease Record 5, page 244.

	
6.

	
Memorandum of Lease dated January 23, 2001 between Trans-Care Inc., as Landlord and MOA Hospitality, Inc. recorded on February 5, 2001 as Document No. I 20011612.

130 High Street, Ellsworth, Maine

	
1.

	
Easement to Maine Central Railroad Company and Northern Lights, Inc., dated April 16, 1987, and recorded in Book 1632, page 357.

	
2.

	
Reciprocal Easement Agreement by and between Econo Lodges Development Corporation and B&B Properties and rights of any person in and to an easement appurtenant across adjacent parcels, as set forth in the Reciprocal Easement Agreement recorded in Book 1900, page 425.

5400 South Gate Drive, Billings, Montana

	
1.

	
Instrument entitled “Waiver” recorded December 15, 1982 in Book 1242, under Document No. 1248950.

	
2.

	
Electrical Easement granted to The Montana Power Company dated February 19, 1993, in Book 1390, under Document No. 1671918 in the records of Yellowstone County, Montana.

	
3.

	
Instrument entitled “Amended Resolution”, filed November 10, 1993 under Document No. 1712649 in the records of Yellowstone County, Montana.

 

24

 

Exhibit D

 

Surveys

 

2935 Warm Springs, Columbus, Georgia

 

Survey prepared by Donaldson, Garret & Associates, Inc. (4875 Riverside Drive, Macon, GA 31210 Phone: (912) 474-5350) dated July 31, 1995. Drawing No.: 2414-95-C.

 

2773 Elder, Boise, Idaho

 

Survey prepared by Tealey’s Land Surveying (2501 Bogus Basin Rd., Boise, ID 83701 Phone: (208) 385-0636) dated March, 2003. Job No. 1326-1.

 

3089 South First Street, Terre Haute, Indiana

 

Survey prepared by Myers Engineering, Inc. (500 S. 9th Street, Suite C, Terre Haute, IN 47807 Phone: (812) 238-9731) dated March 6, 2003 and revised on June 17, 2003 and July 8, 2003. Drawing No.: TM03--170

 

130 High Street, Ellsworth, Maine

 

Survey prepared by Herrick & Salsbury Inc. (67 Franklin Street, Ellsworth, Maine 04605 Phone: (207) 667-7370) dated June 30, 2003. Job No.: 2557B.

 

5400 South Gate Drive, Billings, Montana

 

Survey prepared by Engineering, Inc. (1001 So. 24th Street West, Billings, MT 59108-1345 Phone: (406) 656-5255) dated March 28, 2003 and revised on June 20, 2003. Project No. 81094.03

 

 

25

 

Exhibit E

 

Installment Assessments

 

None

 

26

 

Exhibit F

 

Leases

 

	
2935 Warm Springs, Columbus, Georgia: 

	
None

	
2773 Elder, Boise, Idaho: 

	
None

3089 South First Street, Terre Haute, Indiana:

Lease dated January 23, 2001 between Trans-Care, Inc. and MOA Hospitality, Inc.

	
130 High Street, Ellsworth, Maine: 

	
None

	
5400 South Gate Drive, Billings, Montana: 

	
None

 

27

 

Exhibit G

 

Litigation

 

None

 

28

 

Exhibit H

 

Contracts

2935 Warm Springs, Columbus, Georgia

	
Name of Vendor

	
Service

	
Date of Agreement

	
Cost

	
Charter Business

	
Cable

	
7/3/03, amended 8/12/05

	
$700/month

	
Viacom (CBS)

	
Billboard

	
1/10/06

	
$1,050/month

	
City of Columbus

	
Lighting

	
2/1/00

	
$43/month

	
SVI

	
Pay Per View

	
________, 1997

	
10% Comm. of Total Sales/month

	
Georgia Logos

	
Highway Logo

	
7/10/05

	
$850/month

	
Wi-Fi

	
Internet Service

	
3/9/05

	
$98/month

 

2773 Elder, Boise, Idaho

	
Name of Vendor

	
Service

	
Date of Agreement

	
Cost

	
The Arc

	
Job coach

	
2/10/06

	
$3.35/room

	
Young Electric Sign

	
Maintenance Contract

	
7/28/05

	
$279.95/month

	
DOT Highway Signs

	
 

	
 

	
 

	
Elizabeth Younger Agency

	
Airport Signage & Advertising

	
5/31/06

	
$4,800/year

	
Otis Elevator

	
Elevator Contract

	
 

	
 

	
Dex Media

	
Yellow Page Advertising

	
01/2006

	
$116.30/month

	
Yellow Book

	
Yellow Page Advertising

	
 

	
 

	
Ikon Copier

	
Maintenance Contract

	
 

	
 

	
Pavement Specialties of Idaho, Inc.

	
Paving

	
4/06/06

	
$1,950

 

 

29

 

 

	
Allied Waste Systems

	
Trash Removal

	
8/14/06

	
 

	
Fire Technology

	
Fire Alarm Monitoring & Maintenance Contract

	
4/1/98

	
$35/month

	
Cableone

	
Cable TV

	
 

	
 

	
e-Communications

	
Wireless Internet

	
 

	
 

	
Electric Lightwave

	
Telephone service

	
 

	
 

	
American Telephone

	
Phone equipment maintenance contract

	
 

	
 

	
Steritech

	
Pest Control

	
 

	
 

	
Culligan

	
Water softner maintenance

	
 

	
 

	
Travelers Discount Guide

	
Coupon

	
 

	
 

	
Cendant Technical Support

	
Property Management System Warranty

	
 

	
 

	
Senske

	
Pest control for outside plants & Sprinkler Service

	
 

	
 

	
Ecolab

	
Pool chemicals

	
 

	
 

	
General Fire

	
Services Fire Extinguisher

	
Yearly or Monthly Service but No Contract

	
 

	
Curtis Clean Sweep

	
Monthly parking lot sweep; yearly snow removal

	
Yearly or Monthly Service but No Contract

	
 

	
Nulook Carpet Cleaning

	
Monthly carpet cleaning

	
Yearly or Monthly Service but No Contract

	
 

	
Fikes NW

	
Hallway air fresheners and refill, monthly

	
Yearly or Monthly Service but No Contract

	
 

 

 

30

 

 

3089 South First Street, Terre Haute, Indiana

	
Name of Vendor

	
Service

	
Date of Agreement

	
Cost

	
K&M Enterprises

	
Sign Pole Lease

	
5-1-06

	
$350/month

	
Indiana Logo Sign Group

	
Highway Logo Signs

	
6-1-04

	
$3,216/year

	
Time Warner 

	
Cable TV

	
11-15-04-

	
$1431.34/month

	
Jamax

	
Trash Pick Up

	
11-21-02

	
$227.80/month

	
Wi-Fi

	
Internet Service

	
8-18-06

	
$590/quarter

	
Lamar

	
Billboard

	
9-21-06

	
$1,215/month

	
Otis

	
Elevator

	
8-4-04

	
$146.85/month

	
Travelers Discount Guide

	
Coupon Book

	
1-03-06

	
$345/month

	
Trans-Care, Inc.

	
Truck Parking Lot Lease

	
1-31-01

	
$40,000 prepaid, amortized monthly

 

130 High Street, Ellsworth, Maine

	
Name of Vendor

	
Service

	
Date of Agreement

	
Cost

	
Adelphia

	
Cable TV

	
10-1-93

	
$1,023/month

	
Wi Fi

	
Internet Service

	
5-11-06

	
$189/quarter

	
Eastern Sprinkler Services Incorporated

	
Sprinkler Testing

	
1-26-06

	
$270/year

	
Dell

	
PMS

	
8-24-05

	
$355/month

	
Choice Hotels

	
Software for PMS

	
8/24/05

	
$481.69/month

 

5400 South Gate Drive, Billings, Montana

	
Name of Vendor

	
Service

	
Date of Agreement

	
Cost

 

 

31

 

 

	
Montana Motorist Info

	
Highway Exit Signs

	
9/11/02

	
$1,379.40

	
Olde Media

	
Outdoor Advertising Display Contract

	
3/28/04

	
$550

	
Travelers Discount Guide

	
Coupon

	
7/30/06

	
$330.42/month

	
e-Communication

	
Wireless Service & Support

	
5/4/05

	
$218/month

	
Bresnan Communication

	
Internet Access

	
6/20/05

	
$119.95/month

	
Bresnan Communication

	
Cable TV Service

	
9/2/99

	
$484.88/month

 

 

32

 

Exhibit I

 

Non-Compete Agreement

 

NON-COMPETITION AGREEMENT

THIS NON-COMPETITION AGREEMENT, dated ______________, 2006, is made by and between SUPERTEL LIMITED PARTNERSHIP, a Virginia limited partnership (“Supertel”), MOA HOSPITALITY INC., a Delaware corporation (“Company”), and PAUL F. WALLACE (“Principal“).

RECITALS:

•     Supertel has entered into an Agreement of Purchase and Sale (the “Purchase Agreement”) with Motels of America LLC (“MOA”), an affiliate of the Company, and Bond Street Associates LLC (“BSA” and together with MOA, the “Seller”), dated ________________, 2006, whereby Supertel has agreed to purchase from the Seller those certain motels identified by the street addresses on Exhibit A attached hereto and made a part hereof (collectively, “the Property” and individually, “a Property”).

•     The Principal is the indirect owner of a majority interest in the Company and MOA.

•     As an essential component of the consideration for Supertel to pay Seller the purchase price for the Property, Company has agreed that Company and the Principal will not compete against Supertel’s operation of the Property, and Company and the Principal are willing to agree to such a restriction, on the terms and conditions set forth herein.

W I T N E S S E T H :

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

•     Non-Competition. In accordance with the obligations and requirements of the Purchase Agreement, Company and the Principal agree that from the date of this Non-Competition Agreement until ___________, 20___ [five (5) years], within the “Trade Area” (as defined below) neither Company nor the Principal shall (a) engage in any capacity whatsoever in any business (whether as promoter, owner, officer, director, employee, partner, shareholder, member, lessee, lessor, lender, agent, consultant, broker, commission salesman or otherwise) of a type competitive, directly or indirectly, with Supertel’s operation of the Property, as limited service motels/hotels nor (b) have an interest in any corporation, partnership, joint venture or limited liability company (other than less than a ten (10%) percent interest in a publicly traded company) engaged in any business of a type competitive, directly or indirectly, with Supertel’s operation of the Property as limited service motels/hotels. For purposes of the foregoing, a long-stay or full service motel or hotel property shall not be deemed to be directly or indirectly competitive with Supertel’s operation of the Property. The Trade Area shall mean any area located within fifteen (15) miles of any borders of a Property.

•     Remedies. If either Company or the Principal fails to keep and perform its covenants under this Non-Competition Agreement, Supertel shall be entitled to specifically enforce the same by injunction in equity in addition to any other remedies which Supertel may 

 

33

 

have. If any portion of Section 1 above shall be invalid or unenforceable, such invalidity or unenforceability shall in no way be deemed or construed to affect in any way the enforceability of any other portion of Section 1 hereof. If any court in which Supertel seeks to have the provisions of this Non-Competition Agreement specifically enforced determines that the activities, time or geographical area hereinabove specified are too broad, such court may determine a reasonable activity, time or geographical area and shall specifically enforce this Non-Competition Agreement for such reasonable activity, time and geographical area.

•     Non-Waiver. The failure of either party to insist in any one or more instances upon performance of any of the terms or conditions of this Non-Competition Agreement shall not be construed as a waiver or a relinquishment of any right granted hereunder, or of the future performance of any such term, covenant or condition, but the obligations of either party with respect thereto shall continue in full force and effect.

•     Assignment. This Non-Competition Agreement shall not be assignable by either party and any purported assignment hereof shall be deemed invalid.

•     Entire Agreement. This Non-Competition Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings between the parties with respect to the subject matter hereof.

•     Applicable Law. This Non-Competition Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance with the laws of the State of Nebraska.

IN WITNESS WHEREOF, this Non-Competition Agreement has been executed by the parties as of the date first written above.

	
 

	
SUPERTEL LIMITED PARTNERSHIP,
a Virginia limited partnership 

	
 

	
By:    Supertel Hospitality REIT Trust
Title: General Partner

	
 

	
By:

	
 

	
Name:
Title:

	
 

	
MOA HOSPITALITY, INC., a Delaware corporation

	
 

	
By:

	
 

	
Name:
Title:

	
 

	

PAUL F. WALLACE

 

 

34

 

Exhibit J

 

Permits & Licenses

 

2935 Warm Springs, Columbus, Georgia

	
1.

	
Two (2) Boiler Permits issued by the Columbus Health Department dated 11/28/05.

	
2.

	
Sanitation Inspection dated 4/25/06 issued by the Georgia Department of Human Resources – Division of Public Health.

	
3.

	
Business license dated 4/28/06 issued by City of Columbus, Georgia.

	
4.

	
Sales & Use Permit issued by the State of Georgia effective 9/15/95.

	
5.

	
Tourist Accommodation Permit dated 7/1/06 issued by the Georgia Department of Human Resources.

	
6.

	
Certificate of Occupancy dated 12/31/85 issued by the City of Columbus. 

2773 Elder, Boise, Idaho

	
1.

	
Certificate of Occupancy issued 1/4/80.

3089 South First Street, Terre Haute, Indiana

	
1.

	
Registered Retail Merchant Certificate issued 6-30-99 by the Indiana Department of Revenue.

	
2.

	
Certificate of Inspection issued by the Indiana State Building Commissioner dated 6/30/04. 

	
3.

	
Operating Certificate issued 3-21-06 by the Division of Fire and Building Safety.

	
4.

	
Certificate of Occupancy dated 2-19-85 issued by Vigo County, Indiana

130 High Street, Ellsworth, Maine

	
1.

	
Permit Issued 3/20/96 to operate as a lodging establishment issued by the City of Ellsworth.

	
2.

	
Permit for Sleeping Rooms/Lodging Place issued 12/29/05 by the State of Maine.

	
3.

	
Certificate of Occupancy dated 10/5/93 issued by the City of Ellsworth. 

5400 South Gate Drive, Billings, Montana

	
1.

	
License issued 1/5/06 by the Montana Department of Public Health and Human Services for Public Accommodations.

	
2.

	
Certificate of Operation issued on 6/16/05 for Elevator Operation.

	
3.

	
Business Certificate issued 3/30/06 by the City of Billings.

	
4.

	
Certificate of Occupancy issued 10/3/89 by the City of Billings.

Exhibit K

 

Gift Certificates

None

 

 

35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]