Document:

Exhibit 10.47

Dallas, TX (HGI)

PURCHASE CONTRACT

between

DALLAS LODGING, LLC (“SELLER”)

AND

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

Dated: November 1, 2011

i

TABLE OF
CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 1

 	
  

 	
 DEFINED TERMS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1

 	
  

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 2

 	
  

 	
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;
 EARNEST MONEY DEPOSIT

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
  

 	
 Purchase and
 Sale

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
  

 	
 Purchase
 Price

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.3

 	
  

 	
 Allocation

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.4

 	
  

 	
 Payment

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.5

 	
  

 	
 Earnest
 Money Deposit

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 3

 	
  

 	
 REVIEW PERIOD

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
  

 	
 Review
 Period

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
  

 	
 Due
 Diligence Examination

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
  

 	
 Restoration

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 4

 	
  

 	
 SURVEY AND TITLE APPROVAL

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
  

 	
 Survey

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.2

 	
  

 	
 Title

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.3

 	
  

 	
 Survey or
 Title Objections

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 5

 	
  

 	
 MANAGEMENT AGREEMENT AND FRANCHISE
 AGREEMENT

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 6

 	
  

 	
 BROKERS

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 7

 	
  

 	
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
  

 	
 Seller’s
 Representations, Warranties and Covenants

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
  

 	
 Buyer’s
 Representations, Warranties and Covenants

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
  

 	
 Survival

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 8

 	
  

 	
 ADDITIONAL COVENANTS

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
  

 	
 Subsequent
 Developments

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.2

 	
  

 	
 Construction
 of Hotel

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.3

 	
  

 	
 Plans and
 Specifications

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.4

 	
  

 	
 Commencement
 of Construction; Substantial Completion

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.5

 	
  

 	
 Inspections

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.6

 	
  

 	
 Punch List

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.7

 	
  

 	
 Pre-Opening
 Program

 	
  

 	
 18

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.8

 	
  

 	
 Construction
 Warranty

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.9

 	
  

 	
 Other
 Obligations of Seller Before Closing

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.10

 	
  

 	
 Third Party
 Consents

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.11

 	
  

 	
 Access to
 Financial Information

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.12

 	
  

 	
 Bulk Sales

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.13

 	
  

 	
 Indemnification

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.14

 	
  

 	
 Escrow Funds

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.15

 	
  

 	
 Liquor
 License

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.16

 	
  

 	
 Mechanics’
 Lien Protection

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 9

 	
  

 	
 CONDITIONS FOR CLOSING

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1

 	
  

 	
 Buyer’s
 Conditions for Closing

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.2

 	
  

 	
 Seller’s
 Conditions for Closing

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 10

 	
  

 	
 CLOSING AND CONVEYANCE

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1

 	
  

 	
 Closing

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.2

 	
  

 	
 Deliveries
 of Seller

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.3

 	
  

 	
 Buyer’s
 Deliveries

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 11

 	
  

 	
 COSTS

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1

 	
  

 	
 Seller’s
 Costs

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.2

 	
  

 	
 Buyer’s
 Costs

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 12

 	
  

 	
 ADJUSTMENTS

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.1

 	
  

 	
 Adjustments

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.2

 	
  

 	
 Reconciliation
 and Final Payment

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.3

 	
  

 	
 Employees

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 13

 	
  

 	
 CASUALTY AND CONDEMNATION

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.1

 	
  

 	
 Risk of
 Loss; Notice

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.2

 	
  

 	
 Buyer’s
 Termination Right

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.3

 	
  

 	
 Procedure
 for Closing

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 14

 	
  

 	
 DEFAULT REMEDIES

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.1

 	
  

 	
 Buyer
 Default

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.2

 	
  

 	
 Seller
 Default

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.3

 	
  

 	
 Attorney’s
 Fees

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 15

 	
  

 	
 NOTICES

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 16

 	
  

 	
 MISCELLANEOUS

 	
  

 	
 33

 

iii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.1

 	
  

 	
 Performance

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.2

 	
  

 	
 Binding
 Effect; Assignment

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.3

 	
  

 	
 Entire
 Agreement

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.4

 	
  

 	
 Governing
 Law

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.5

 	
  

 	
 Captions

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.6

 	
  

 	
 Confidentiality

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.7

 	
  

 	
 Closing
 Documents

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.8

 	
  

 	
 Counterparts

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.9

 	
  

 	
 Severability

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.10

 	
  

 	
 Interpretation

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.11

 	
  

 	
 (Intentionally
 Omitted)

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.12

 	
  

 	
 Further Acts

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.13

 	
  

 	
 Joint and
 Several Obligations

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.14

 	
  

 	
 [Notice of
 Proposed Listing

 	
  

 	
 34

 

SCHEDULES:

	
  

 	
  

 
	
 EXHIBITS:

 	
  

 
	
  

 	
  

 
	
 Exhibit A

 	
 Legal Description

 
	
 Exhibit B

 	
 List of
 FF&E

 
	
 Exhibit C

 	
 List of
 Hotel Contracts

 
	
 Exhibit D

 	
 Consents and
 Approvals

 
	
 Exhibit E

 	
 Environmental
 Reports

 
	
 Exhibit F

 	
 Claims or
 Litigation Pending

 
	
 Exhibit G

 	
 Escrow
 Agreement

 
	
 Exhibit H

 	
 Construction
 Warranty

 

iv

PURCHASE CONTRACT

          This
PURCHASE CONTRACT (this “Contract”)
is made and entered into as of November 1, 2011, by and between DALLAS LODGING,
LLC, a Texas limited liability company (“Seller”)
with a principal office at 1135 Kinwest Parkway #150, Irving, Texas 75063, and
APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with its
principal office at 814 East Main Street, Richmond, Virginia 23219, or its
affiliates or assigns (“Buyer”).

RECITALS

          A. Seller is the fee simple owner of the land
located in the City of Dallas, County of Dallas, Texas, identified in on Exhibit
A attached hereto and incorporated herein by reference. Seller intends to
construct a hotel on such land containing 165 guestrooms to be operated as a
Hilton Garden Inn hotel. 

          B. Buyer is desirous of purchasing such land
and the hotel to be constructed thereon from Seller upon completion of the
hotel, and Seller is desirous of selling such land and hotel to Buyer, for the
purchase price and upon terms and conditions hereinafter set forth. 

AGREEMENT:

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

ARTICLE 1

DEFINED TERMS

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

          “Additional
Deposit” shall mean $50,000. 

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

          “Appurtenances”
shall mean all rights, titles, and interests of Seller appurtenant to the Land
and Improvements, including, but not limited to, (i) all easements, rights of
way, rights of ingress and egress, tenements, hereditaments, privileges, and
appurtenances in any way belonging to the Land or Improvements, (ii) any land
lying in the bed of any alley, highway, street, road or avenue, open or
proposed, in front of or abutting or adjoining the Land, (iii) any strips or
gores of real estate adjacent to the Land, and (iv) the use of all alleys,
easements and rights-of-way, if any, abutting, adjacent, contiguous to or adjoining
the Land. 

1

          “Architect”
shall mean the architect for the Hotel, Ron Smith of Mayse & Associates,
Inc., 14850 Quorum Drive, #201, Dallas, Texas 75254 

          “Brand”
shall mean Hilton Garden Inn, the hotel brand or franchise under which the
Hotel will operate. 

          “Business
Day” shall mean any day other than a Saturday, Sunday or legal holiday in
the State of Texas. 

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

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

          “Construction
Warranty” shall have the meaning set forth in Section 8.8. 

          “Contractor”
shall mean the contractor for the Hotel, Mike Patel of Sagestar Development
& Construction, LLC, 1135 Kinwest Parkway, #150, Irving, Texas 75063. 

          “Contracts,
Plans and Specs” shall mean all construction and other contracts, plans,
drawings, specifications, surveys, soil reports, engineering reports,
inspection reports, and other technical descriptions and reports in the
possession or control of Seller at the time of mutual acceptance of this
Agreement and those created during the term of this Contract. 

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

          “Deposits”
shall mean, to the extent assignable, all prepaid rents and deposits,
refundable security deposits and rental deposits, and all other deposits for
advance reservations, banquets or future services, made in connection with the
use or occupancy of the Improvements; provided, however, that to the extent
Seller has not received or does not hold all of the prepaid rents and/or
deposits attributable to the Leases related to the Property, Buyer shall be
entitled to a credit against the cash portion of the Purchase Price allocable
to the Property in an amount equal to the amount of the prepaid rents and/or
deposits attributable to the Leases transferred at the Closing of such
Property, and provided further, that “Deposits” shall exclude (i) reserves for
real property taxes and insurance, in each case, to the extent pro rated on the
settlement statement such that Buyer receives a credit for (a) taxes and
premiums in respect of any period prior to Closing and (b) the amount of
deductibles and other self-insurance and all other potential liabilities and
claims in respect of any period prior to Closing, and (ii) utility deposits. 

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

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

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

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

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

2

          “Escrow
Funds” shall have the meaning set forth in Section 8.14. 

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

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

          “Existing
Management Agreement” shall mean that certain management agreement between the
Seller and Newcrest Management, LLC (the “Existing Manager”). 

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

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

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

          “Force
Majeure” shall mean any delay or hindrance in or the prevention from the
performance of any act by reason of an act of God, strikes, lockouts, labor
troubles, inability to procure materials, failure of power, restrictive
governmental laws or regulations, riots, insurrection, war or other reason of a
like nature not the fault of the party delayed in performing work or doing
acts. 

          “Franchise
Agreement” shall mean the franchise license agreement, in form reasonably
acceptable to Buyer, between Franchisor and Buyer. 

          “Franchisor”
shall mean Hilton Inns Franchise LLC or its affiliate. 

          “Hotel”
shall mean the hotel to be constructed on the Land, including all Improvements
and Personal Property associated therewith, to be known generally as the
“Hilton Garden Inn Dallas”, located at 1601 Cedar Springs Road, Dallas, Texas
75202. 

3

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

          “Improvements”
shall mean all buildings, structures, fixtures, parking areas and other
improvements now existing or to be constructed on the Land, and all related
facilities. 

          “Indemnified
Party” shall have the meaning set forth in Section 8.13(c)(i). 

          “Indemnifying
Party” shall have the meaning set forth in Section 8.13(c)(i). 

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

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

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

          “Legal
Action” shall have the meaning set forth in Section 8.13(c)(ii). 

          “Legal
Requirements” shall mean any and all statutes, laws, ordinances, zoning and
other codes, rules, regulations and requirements of any governmental authority
applicable to the Property or any of the parties to this Contract. 

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

          “Liquor
Licenses” shall have the meaning set forth in Section 8.15. 

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

          “Manager”
shall mean the management company chosen by Buyer to operate the Hotel from and
after Closing. 

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

4

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

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

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

          “Plans
and Specifications” shall have the meaning set forth in Section 8.3. 

          “Pre-Opening
Costs” shall have the meaning set forth in Section 8.7. 

          “Pre-Opening
Program” shall have the meaning set forth in Section 8.7. 

          “Post-Closing
Agreement” shall have the meaning set forth in Section 8.14. 

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

          “Punch
List Items” shall mean such items (i) as are reasonably necessary or
appropriate to fully complete the construction, equipping and furnishing of the
Hotel in accordance with this Contract and (ii) that, unless otherwise agreed
by Buyer in its sole discretion, (a) individually and in the aggregate do not and
will not prohibit, cause a delay in or otherwise adversely affect, under
applicable Legal Requirements, the Franchise Agreement or otherwise, the
opening of the Hotel for business to the public or the continued occupancy and
operation of the Hotel as contemplated under the Brand and (b) may be corrected
or completed, subject to delays caused by Force Majeure, within not more than
sixty (60) days. 

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

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

          “Records”
shall mean all books, records, promotional material, tenant data, guest history
information (other than any such information owned exclusively by the
Franchisor), marketing and leasing material and forms (including but not
limited to any such records, data, information, material and forms in the form
of computerized files located at the Hotel), market studies prepared in
connection with Seller’s current annual plan and other materials, information,
data, legal or other documents or records (including, without limitation, all
documentation relating to any litigation or other proceedings, all zoning
and/or land use notices, relating to or affecting the Property, all business
plans and projections and all studies, plans, budgets and contracts related to
the development, construction and/or operation of the Hotel) owned by Seller
and/or in a 

5

Seller’s possession or
control, or to which a Seller has access or may obtain from the Franchisor,
that are used in or relating to the Property and/or the operation of the Hotel,
including the Land, the Improvements or the FF&E, and proforma budgets and
projections and construction budgets and contracts related to the development
and construction of the Hotel and a list of the general contractors, architects
and engineers providing goods and/or services in connection with the
construction of the Hotel, all construction warranties and guaranties in effect
at Closing and copies of the final plans and specifications for the Hotel. 

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

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

          “SEC”
shall have the meaning set forth in Section 8.11. 

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

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

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

          “Substantial
Completion,” including variations thereof such as “Substantially Complete”
and “Substantially Completed” shall mean:
(i) the Architect and the Contractor have issued a certificate of
substantial completion in form and substance satisfactory to Buyer certifying
that the Hotel has been constructed substantially in accordance with the Plans
and Specifications and the Legal Requirements, (ii) at least a temporary
certificate of occupancy authorizing the opening of the Hotel for business to
the public and for operation under the Brand has been issued by the local
governing authority and is in full force and effect, (iii) all other final and
unconditional consents, approvals, licenses and operating permits necessary or
appropriate for the Hotel to open for business to the public and to operate
under the Brand have been issued by and obtained from all applicable
governmental and regulatory authorities, subject to Punch List Items; (iv) the
Hotel is fully furnished, fitted and equipped and ready to open for business to
the public and operate under the Brand, subject to Punch List Items; (iii) all
contractors, subcontractors, suppliers, mechanics, materialmen and other
persons or entities providing labor or materials for the construction and
development of the Hotel shall have been paid in full (or adequate provision
for payment of such persons or entities has been made to Buyer’s satisfaction),
subject to Punch List Items and (iv) the Franchisor has approved the
completion, furnishing and equipping of the Hotel and is prepared to commence
(or authorize the commencement of) operation of the Hotel, and all of the other
conditions set forth in the Franchise Agreement have been satisfied, subject to
Punch List Items. 

          “Supplies”
shall mean all merchandise, supplies, inventory and other items used for the
operation and maintenance of guest rooms, restaurants, lounges, swimming pools,
health clubs, spas, business centers, meeting rooms and other common areas and
recreational areas located within or relating to the Improvements, including,
without limitation, all food and beverage (alcoholic and non-alcoholic)
inventory, office supplies and stationery, advertising and promotional
materials, china, glasses, silver/flatware, towels, linen and bedding (all of
which shall be 2-par level for all suites or rooms in the Hotel), guest
cleaning, paper and other supplies, 

6

upholstery material,
carpets, rugs, furniture, engineers’ supplies, paint and painters’ supplies,
employee uniforms, and all cleaning and maintenance supplies, including those
used in connection with the swimming pools, indoor and/or outdoor sports
facilities, health clubs, spas, fitness centers, restaurants, business centers,
meeting rooms and other common areas and recreational areas. 

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

          “Third
Party Consents” shall have the meaning set forth in Section 8.10. 

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

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

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

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

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

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

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

7

ARTICLE 2

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT.

          2.1
Purchase and Sale. Seller agrees to sell
and convey to Buyer or its Affiliates and/or assigns, and Buyer or its assigns
agrees to purchase from Seller, the Property, in consideration of the Purchase
Price and upon the terms and conditions hereof. All of the Property shall be
conveyed, assigned, and transferred to Buyer at Closing, free and clear of all
mortgages, liens, encumbrances, licenses, franchises (other than any hotel
franchises assumed by Buyer), concession agreements, security interests, prior
assignments or conveyances, conditions, restrictions, rights-of-way, easements,
encroachments, claims and other matters affecting title or possession, except
for the Permitted Exceptions and FF&E Leases.

          2.2
Purchase Price. Buyer agrees to pay, and
Seller agrees to accept, as consideration for the conveyance of the Property,
subject to the adjustments provided for in this Contract, the amount of
TWENTY-SEVEN MILLION THREE HUNDRED THOUSAND and No/100 Dollars ($27,300,000.00)
(the “Purchase Price”); provided,
however, that if the actual cost of construction of the Hotel is less than
$24,655,196.00, the purchase price shall be reduced by an amount equal to
twenty percent (20%) of the difference between such actual construction costs
and $24,655,196.00 (the “Purchase Price”).

          2.3
Allocation. Buyer and Seller shall
attempt to agree on an allocation of the Purchase Price among Real Property,
tangible Personal Property and intangible property related to the Property. In
the event Buyer and Sellers do not agree, each party shall be free to allocate
the Purchase Price to such items as they deem appropriate, subject to and in
accordance with applicable laws.

          2.4
Payment. The portion of the
Purchase Price, less: (a) the Earnest Money Deposit and interest earned
thereon, if any, which Buyer elects to have applied against the Purchase Price
(as provided below) and (b) the Escrow Funds, shall be paid to Seller in cash,
certified funds or wire transfer, at the Closing of the Property. At the
Closing, the Earnest Money Deposit, together with interest earned thereon, if
any, shall, at Buyer’s election, be returned to Buyer or shall be paid over to
Seller by Escrow Agent to be applied to the portion of the Purchase Price on
behalf of Buyer, and the Escrow Funds shall be deposited into an escrow account
pursuant to the Post-Closing Agreement as contemplated by Section 8.14.

          2.5
Earnest Money Deposit.

                              (a)
Within three (3) Business Days after the full execution and delivery of this
Contract, Buyer shall deposit the sum of Fifty Thousand and No/100 Dollars
($50,000.00) in cash, certified bank check or by wire transfer of immediately
available funds (the “Initial Deposit”)
with the Title Company, as escrow agent (“Escrow
Agent”), which sum shall be held by Escrow Agent as earnest
money. If, pursuant to the provisions of Section 3.1 of this Contract, Buyer
elects to terminate this Contract at any time prior to the expiration of the
Review Period, then the Escrow Agent shall return the Earnest Money Deposit to
Buyer promptly upon written notice to that effect from Buyer. If Buyer does not
elect to terminate this Contract on or before the expiration of the Review
Period, Buyer shall, within three (3) Business Days after the 

8

expiration of
the Review Period deposit the Additional Deposit with the Escrow Agent. The
Initial Deposit and the Additional Deposit, and all interest accrued thereon,
shall hereinafter be referred to as the “Earnest
Money Deposit.”

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

ARTICLE 3

REVIEW PERIOD

          3.1
Review Period. Buyer shall have a
period through 6:00 p.m. Eastern Time on the date that is the later of (a) one
hundred five (105) days following the date of this Contract or (b) forty-five
(45) days following the date Seller obtains and notifies Buyer that it has
received a commitment for construction financing for the Hotel, unless a longer
period of time is otherwise provided for in this Contract and except as
otherwise agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey,
construction, physical condition, structural, mechanical, environmental,
economic, permit status, franchise status, financial and other documents and
information related to the Property. Within two (2) Business Days following the
date of this Contract, Seller, at Seller’s sole cost and expense, will deliver
to Buyer for Buyer’s review, to the extent not previously delivered to Buyer
and to the extent available, true, correct and complete copies of the
following, together with all amendments, modifications, renewals or extensions
thereof:

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

                              (b)
To the extent available and applicable, income and expense statements and
budgets for the Hotel, for the current year to date and each of the three (3)
prior fiscal years (the “Financial
Statements”), and the Seller shall provide to Buyer copies of
all income and expense statements generated by the Seller or any third party
that relate to the operations of the Hotel and that contain information not
included in the financial statements, if any, provided to Buyer by the Manager,
provided that Sellers also agree to provide to Buyer’s auditors and
representatives all financial and other information necessary or appropriate
for preparation of audited financial statements for Buyer and/or its Affiliates
as provided in Section 8.11, below;

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

                              (d)
Engineering, mechanical, architectural and construction plans, drawings, specifications
and contracts, payment and performance bonds, title policies, reports and
commitments, zoning information and marketing and economic data relating to the
Land or 

9

the Hotel and
the construction, development, installation and equipping thereof, as well as
copies of all environmental reports and information, topographical, boundary or
“as built” surveys, engineering reports, subsurface studies and other
Contracts, Plans and Specs relating to or affecting the Hotel. If the Hotel is
purchased by Buyer, all such documents and information relating to the Hotel
shall thereupon be and become the property of Buyer without payment of any
additional consideration therefor; and

                              (e)
All FF&E Leases, Service Contracts, Leases and, if applicable, a schedule
of such Leases of space in the Hotel, and all agreements, if any, for real
estate commissions, brokerage fees, finder’s fees or other compensation payable
by Seller in connection therewith; and 

                              (f)
All notices received from governmental authorities in connection with the Land
for the current year and each of the two(2) calendar years prior to the current
year and all other notices received from governmental authorities received at
any time that relate to any noncompliance or violation of law that has not been
corrected.

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

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

          3.3
Restoration. Buyer covenants and
agrees not to damage or destroy any portion of the Property in conducting its
examinations and studies of the Property during the Due Diligence 

10

Examination
and, if closing does not occur, shall repair any portion of the Property
damaged by the conduct of Buyer, its agents or employees, to substantially the
condition such portion(s) of the Property were in immediately prior to such
examinations or studies.

ARTICLE 4

SURVEY AND TITLE APPROVAL

          4.1
Survey. Seller has delivered to
Buyer true, correct and complete copies of the most recent surveys of the Real
Property. In the event that an update of a survey or a new survey (such updated
or new surveys being referred to as the “Surveys”)
are desired by Buyer, then Buyer shall be responsible for all costs related
thereto; provided, however, Seller shall provide, at its sole cost and expense,
an as-built survey when the Hotel is substantially complete.

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

          4.3
Survey or Title Objections. If Buyer discovers any
title or survey matter which is objectionable to Buyer, Buyer may provide Seller
with written notice of its objection to same within ninety (90) days after
receipt of each Title Commitment (including all Exception Documents) and the
applicable Survey (the “Title Review
Period”). If Buyer fails to so object in writing to any such matter
set forth in the Survey or Title Commitment, it shall be conclusively assumed
that Buyer has approved same, except as otherwise provided in Section 9.1. If
Buyer disapproves any condition of title, survey or other matters by written
objection to Seller on or before the expiration of the Title Review Period,
Seller shall elect either to attempt to cure or not cure any such item by
written notice sent to Buyer within five (5) days after Seller’s receipt of
notice from Buyer, and if Seller commits in writing to attempt to cure any such
item, then Seller shall be given until the Closing Date to cure any such
defect. In the event Seller shall fail to cure a defect which Seller has
committed in writing to cure prior to Closing, or if a new title defect arises after
the date of Buyer’s Title Commitment or Survey, as applicable, but prior to
Closing, then Buyer may elect, in Buyer’s sole and absolute discretion: (i) to
waive such 

11

objection and
proceed to Closing, or (ii) to terminate this Contract and receive a return of
the Earnest Money Deposit, and any interest thereon. The items shown on the
Title Commitment which are not objected to by Buyer as set forth above (other
than exceptions and title defects arising after the title Review Period and
other than those standard exceptions which are ordinarily and customarily
omitted in the state in which the Hotel is located, so long as Seller provides
the appropriate owner’s affidavit, gap indemnity or other documentation
reasonably required by the Title Company for such omission) and all Leases
showing on the Title Commitment are hereinafter referred to as the “Permitted Exceptions.” In no event
shall Permitted Exceptions include liens, or documents evidencing liens,
securing any indebtedness or any mechanics’ or materialmen’s liens or any
claims or potential claims therefor covering the Property or any portion
thereof or vehicle, equipment or FF&E liens or other financing(“Seller Liens”), each of which shall be
paid in full by Seller and released at Closing. Notwithstanding anything
contained in this Contract to the contrary, if a vehicle, equipment or FF&E
lease or other financing cannot be released at Closing, Seller shall credit
Buyer at Closing with the amount necessary to fully pay off such lease or financing
over its term.

ARTICLE 5

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT

          At
or prior to the Closing, Seller shall terminate any Existing Management
Agreement and the Existing Franchise Agreement and Seller shall be solely
responsible for all claims and liabilities arising thereunder on, prior to or
following the Closing Date. As a condition to Closing, Buyer shall enter into
the Franchise Agreement, effective as of the Closing Date, containing terms and
conditions acceptable to Buyer (including, without limitation, such terms and
conditions as may be required to accommodate Buyer’s and/or Buyer’s Affiliates’
REIT structure). Seller shall be responsible for paying all costs related to
the termination of the Existing Management Agreement and shall indemnify and
hold Buyer harmless from and against any and all claims from any persons
claiming under any management agreement other than the management agreement
entered into between Buyer and Manager. Seller shall be responsible for paying
all reasonable and actual costs of the Franchisor related to the termination of
the Existing Franchise Agreement including, without limitation, any key money
or other development incentives. Seller shall negotiate a one-time free right
of transfer in the Existing Franchise Agreement which shall permit Buyer to
obtain a new Franchise Agreement at no cost to Buyer (other than Buyer’s costs
of review). In the event Seller is unable to secure this one-time free right of
transfer, Seller shall reimburse Buyer at Closing for any franchise/application
fees imposed by Franchisor on Buyer. Seller shall use best efforts to promptly
provide all information required by the Franchisor in connection with the New
Franchise Agreement, and Seller and Buyer shall diligently pursue obtaining
each the same. 

ARTICLE 6

BROKERS

          Seller
and Buyer each represents and warrants to the other that, except for Hotel
Assets Group, for whom Seller shall be solely responsible for its compensation
pursuant to a separate agreement between Seller and Hotel Assets Group, it has
not engaged any broker, finder or other party in connection with the
transaction contemplated by this Contract. Buyer and Sellers each agree to save
and hold the other harmless from any and all losses, damages, liabilities,
costs and 

12

expenses
(including, without limitation, attorneys’ fees) involving claims made by any
other agent, broker, or other person by or through the acts of Buyer or
Sellers, respectively, in connection with this transaction.

ARTICLE 7

REPRESENTATIONS, WARRANTIES AND COVENANTS

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

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

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

                              (c)
Bankruptcy. None of Seller, or, to Seller’s knowledge, any of its or
their partners or members, is insolvent or the subject of any bankruptcy
proceeding, receivership proceeding or other insolvency, dissolution,
reorganization or similar proceeding.

                              (d)
Property Agreements. The assets constituting the Property to be conveyed
to Buyer hereunder shall constitute all of the property and assets to be used
in connection with the operation and business of the Hotel. There are no, and
as of the Closing there shall be no, leases, license agreements, leasing
agent’s agreements, equipment leases, building service agreements, maintenance
contracts, suppliers contracts, warranty contracts, operating agreements, or
other agreements (i) to which Seller is a party or an assignee, or (ii) binding
upon the Property, relating to the ownership, occupancy, operation, management
or maintenance of the Real Property, FF&E, Supplies or Tradenames, except
for those Service Contracts, Leases, Warranties and FF&E Leases to which
Seller becomes a party with the approval of Buyer or which Buyer may enter into
before the Closing. As of the Closing, any Service Contracts, Leases,
Warranties and FF&E Leases to which Seller has become a party with the
approval of Buyer shall be in full force and effect, and no default shall have
occurred and be continuing thereunder and no circumstances shall exist which,
with the giving of notice, the lapse of time or both, would constitute such a
default. No party has, and as of the Closing no party shall have, any right or
option to acquire the Property or any portion thereof, other than Buyer.

13

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

                              (f)
Environmental. With respect to environmental matters, to Seller’s
knowledge and except as otherwise disclosed in the environmental reports and
documents identified in Exhibit E, (i) there has been no Release or
threat of Release of Hazardous Materials in, on, under, to, from or in the area
of the Real Property, except as disclosed in the reports and documents set
forth on Exhibit E attached hereto and incorporated herein by reference,
(ii) no portion of the Property is being used for the treatment, storage,
disposal or other handling of Hazardous Materials or machinery containing
Hazardous Materials other than standard amounts of cleaning supplies and
chlorine for the swimming pool, all of which are stored on the Property in
strict accordance with applicable Environmental Requirements and do not exceed
limits permitted under applicable laws, including without limitation
Environmental Requirements, (iii) no underground storage tanks are currently
located on or in the Real Property or any portion thereof, (iv) no
environmental investigation, administrative order, notification, consent order,
litigation, claim, judgment or settlement with respect to the Property or any
portion thereof is pending or threatened in writing, (v) there is not currently
and, to Seller’s actual knowledge, never has been any mold, fungal or other
microbial growth in or on the Real Property, or existing conditions within
buildings, structures or mechanical equipment serving such buildings or structures,
that could reasonably be expected to result in material liability or material
costs or expenses to remediate the mold, fungal or microbial growth, or to
remedy such conditions that could reasonably be expected to result in such
growth, and (vi) except as disclosed on Exhibit E, there are no reports
or other documentation regarding the environmental condition of the Real
Property in the possession of Seller or Seller’s Affiliates, consultants,
contractors or agents. As used in this Contract: “Hazardous Materials” means (1) “hazardous wastes” as
defined by the Resource Conservation and Recovery Act of 1976, as amended from
time to time (“RCRA”), (2) “hazardous substances” as defined by the
Comprehensive Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C. 9601 et seq.), as amended by the Superfund Amendment
and Reauthorization Act of 1986 and as otherwise amended from time to time (“CERCLA”); (3) “toxic substances” as
defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”), (4) “hazardous materials” as
defined by the Hazardous Materials Transportation Act, as amended from time to
time (“HMTA”), (5)
asbestos, oil or 

14

other
petroleum products, radioactive materials, urea formaldehyde foam insulation, radon
gas and transformers or other equipment that contains dielectric fluid
containing polychlorinated biphenyls and (6) any substance whose presence is
detrimental or hazardous to health or the environment, including, without
limitation, microbial or fungal matter or mold, or is otherwise regulated by
federal, state and local environmental laws (including, without limitation,
RCRA, CERCLA, TSCA, HMTA), rules, regulations and orders, regulating, relating
to or imposing liability or standards of conduct concerning any Hazardous
Materials or environmental, health or safety compliance (collectively, “Environmental Requirements”). As used
in this Contract: “Release”
means spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping or disposing.

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

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

                              (i)
Licenses, Permits and Approvals. Seller has not received any written
notice, and Seller has no knowledge that the Property fails to materially comply
with all applicable licenses, permits and approvals and federal, state or local
statutes, laws, ordinances, rules, regulations, requirements and codes
including, without limitation, those regarding zoning, land use, building fire,
health, safety, environmental, subdivision, water quality, sanitation controls
and the Americans with Disabilities Act, and similar rules and regulations
relating and/or applicable to the ownership, use and operation of the Property
as it is now operated. Seller has received or will, prior to Closing receive,
all licenses, permits and approvals required or needed for the lawful conduct,
occupancy and operation of the business of the Hotel, and each license and
permit is or will be in full force and effect, and will be received and in full
force and effect as of the Closing. Subject to Section 8.10 below, no licenses,
permits or approvals necessary for the lawful conduct, occupancy or operation
of the business of the Hotel, to Seller’s knowledge requires any approval of a
governmental authority for transfer of the Property.

                              (j)
Financial Statements. Seller has delivered copies for the two (2) years
prior and the current year to date, of any (i) Financial Statements for the
Hotel, (ii) operating statements prepared by the Existing Manager for the
Hotel, and (iii) monthly financial statements prepared by the Existing Manager
for the Hotel, if applicable (“Audits”). Each of such statements, if available,
is to Seller’s knowledge, complete and accurate in all material respects and,
except in the case of budgets prepared in advance of the applicable operating
period to which such budgets relate, fairly presents the results of operations
of the Hotel for the respective periods represented thereby. Seller has relied
upon the Financial Statements and 

15

Audits in
connection with its ownership and operation of the Hotel, and there are no
other independent audits or financial statements prepared by third parties
relating to the operation of the Hotel other than the Financial Statements and
Audits prepared by or on behalf of the Existing Manager, all of which have been
provided to Buyer.

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

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

                              (m)
Existing Management and Franchise Agreements. Seller has furnished to
Buyer true and complete copies of the Existing Management Agreement and the
Existing Franchise Agreement, which constitutes the entire agreement of the
parties with respect to the subject matter thereof and which have not been
amended or supplemented in any respect. There are no other management
agreements, franchise agreements, license agreements or similar agreements for
the operation or management of the Hotel or relating to the Brand, to which
Seller is a party or which are binding upon the Property, except for any
Existing Management Agreement and the Existing Franchise Agreement. The Improvements
comply with, and the Hotel is being operated in accordance with, all
requirements of the Existing Franchise Agreement and all other requirements of
the Franchisor, including all “brand standard” requirements of the Franchisor.
The Existing Franchise Agreement is in full force and effect, and shall remain
in full force and effect until the termination of the Existing Franchise
Agreement at Closing, as provided in Article V hereof. No default has occurred
and is continuing under any Existing Management Agreement or the Existing
Franchise Agreement, and no circumstances exist which, with the giving of
notice, the lapse of time or both, would constitute such a default.

                              (n)
Architect and Contractor. The Franchisor has approved the Architect to
design the Hotel and the Contractor to serve as the general contractor for the
construction of the Hotel.

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

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

16

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

          7.3
Survival. All of the representations and warranties are true, correct
and complete in all material respects as of the date hereof and the statements
set forth therein (without qualification or limitation as to a party’s
knowledge thereof except as expressly provided for in this Article VII) shall
be true, correct and complete in all material respects as of the Closing Date.
All of the representations and warranties made herein shall survive Closing for
a period of one (1) year and shall not be deemed to merge into or be waived by
any Seller’s Deed or any other closing documents.

ARTICLE 8

ADDITIONAL COVENANTS

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

          8.2
Construction of Hotel. Subject to the terms and
conditions of this Contract, Seller shall (i) construct the Hotel on the Land
(a) in a good, workmanlike and diligent manner, (b) in accordance with
development standards for comparable projects, (c) in compliance in all
material respects with the Plans and Specifications approved by Franchisor and
with all Legal Requirements and (d) in accordance with all requirements of the
Franchise Agreement and (ii) cause the Hotel to be fully equipped with the
FF&E and otherwise fully furnished and stocked with merchandise, supplies,
inventory and other Personal Property as required by the Franchise Agreement,
including, without limitation, linens, bath towels and other supplies at least
at a 2-par level for all suites or rooms of the Hotel, in each case such that
the Hotel can be opened for business to the public and operated to full
capacity under the Brand. All expenses of constructing, equipping and
furnishing the Hotel in accordance with this Contract shall be the sole
responsibility of Seller, and Buyer shall have no obligation whatsoever to
adjust the Purchase Price or pay any additional costs as a result of unforeseen
events or circumstances affecting the cost of constructing, equipping or
furnishing the Hotel.

          8.3
Plans and Specifications. Seller represents and
warrants to Buyer that (i) the plans and specifications that Seller has
delivered to Buyer for its review before the date of this Contract and/or
during the Review Period are and shall be a true and complete copy of the plans
and specifications for the construction of the Hotel, (ii) such plans and
specifications have not been amended or supplemented in any material respect
and (iii) such plans and specifications have been prepared by or otherwise
approved by the Franchisor. Seller shall obtain the approval of the Franchisor
and Buyer with respect to all material changes to such plans and specifications
after the date hereof. Such plans and specifications and all revisions thereto,
as approved by the the Franchisor and Buyer, shall constitute the “Plans and
Specifications” for purposes of this Contract.

17

          8.4
Commencement of Construction; Substantial Completion. Upon the closing of
Seller’s construction financing, Seller and Buyer shall determine the
commencement date for construction of the Hotel (the “Construction Commencement
Date”) which Construction Commencement Date shall be not later than thirty (30)
days after Seller’s construction financing closing. Seller and Buyer shall
document the Construction Commencement Date by executing a Construction
Commencement Certificate and such Construction Commencement Certificate shall
be attached to and its terms shall be incorporated into this Agreement. Seller
shall thereafter diligently pursue construction of the Hotel in accordance with
this Contract and shall cause the Contractor to Substantially Complete the
Hotel no later than twenty-four (24) months after the Construction Commencement
Date (the “Scheduled Completion Date”), subject only to delays caused by Force
Majeure. Seller shall promptly notify Buyer of each event or condition of Force
Majeure and the anticipated delay caused thereby. Notwithstanding anything
contained in this Contract to the contrary, including, without limitation,
Section 14.2 below (unless Seller’s breach results in a delay in the
construction of the Hotel), in the event of any delay of the Substantial
Completion Date beyond the Scheduled Completion Date (other than resulting from
Force Majeure of which Seller previously notified Buyer), Seller shall pay
Buyer delay damages in the amount of $20,000.00 for each full week (which
amount shall be prorated for periods shorter than one week) following the
Scheduled Completion Date until the Hotel is Substantially Complete.

          8.5
Inspections. Buyer shall have the
right to inspect the Property to monitor and observe the development and
construction of the Hotel. All such inspections shall require reasonable prior
notice to Seller and shall be conducted in a manner that will minimize any
interference with the development and construction of the Hotel. Buyer shall
indemnify, defend and hold Seller harmless from and against any and all
expenses, costs and liabilities (including but not limited to reasonable
attorneys’ fees) for damage or injury to persons or property arising out of or
relating to its entry onto the Land for any such inspections.

          8.6 Punch
List. Upon notification from
the Contractor that the Hotel is Substantially Completed and ready for
inspection, Seller shall prepare a “punch list” with the assistance of the
Architect and the Franchisor. Seller acknowledges that final acceptance of the
work on the Hotel shall be made only with the approval of Buyer and the
Franchisor. The costs of completing the Punch List Items that are not completed
as of the date of Closing, as reasonably estimated by the Seller with the
approval of Buyer, such approval not to be unreasonably withheld, plus
twenty-five percent (25%) of such costs, shall be retained by the Title Company
from the Purchase Price and shall be disbursed to Seller only upon Buyer’s
reasonable determination that all of the Punch List Items have been
satisfactorily completed. Seller shall correct or complete all Punch List
Items, or cause the same to be corrected or completed, at Seller’s expense,
with all diligence and in any event within sixty (60) days after Substantial
Completion of the Hotel; provided, however, if such Punch List Items can not reasonably
be completed within such sixty (60) day period, and Seller is diligently
pursuing completion of such Punch List Items during such sixty (60) day period,
then Seller shall have an additional thirty (30) day period to complete the
Punch List Items.

          8.7 Pre-Opening Program. It is contemplated that
certain activities must be undertaken prior to the Closing Date so that the
Hotel can function in an orderly and businesslike manner at the Effective Time
(“Pre-Opening Program”), which Pre-Opening Program shall be developed by Buyer
and Buyer’s proposed manager. Seller shall cooperate in good faith with and be
responsible for the costs of the Pre-Opening Program and shall provide the
Franchisor and Buyer 

18

reasonable
access to the Property at least sixty (60) days in advance of the Closing in
order to conduct their activities related to the Pre-Opening Program; provided
that the Pre-Opening Program shall not be permitted to interfere with or delay
the activities of Seller in completing the Hotel. Seller shall pay in a timely
manner all costs associated with the Pre-Opening Program or otherwise related
to the pre-opening operations of the Property up to but not including the
Effective Time, regardless of when such costs are payable (the “Pre-Opening Costs”).

          The
Pre-Opening Program shall consist of the following:

                    a)
Completion of Hilton Database not less than ninety (90) days prior to the
Effective Time;

                    b)
Completion of website;

                    c)
Fully staff Hotel team; 

                    d)
Completion of Request For Proposal based on availability for following year;
and

                    e)
Order all supplies to open Hotel.

          8.8
Construction Warranty. At the Closing, Seller
shall assign to Buyer all construction warranties with respect to the Hotel,
which assignment shall be in form and substance reasonably satisfactory to
Buyer, including a warranty by the Contractor, for the period ending not sooner
than one (1) year after the date the Hotel is Substantially Completed, in the
form of the warranty attached hereto as Exhibit H (the “Construction
Warranty”).

          8.9
Other Obligations of Seller Before Closing. From and after the date
hereof through the Closing on the Property Seller shall comply with the
Existing Management Agreement and the Existing Franchise Agreement and keep the
same in full force and effect and shall perform and comply with all of the
following subject to and in accordance with the terms of such agreements:

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

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

                              (c)
Pay or cause to be paid all taxes, assessments and other impositions levied or
assessed on the Property or any part thereof prior to the delinquency date, and
comply with all federal, state, and municipal laws, ordinances, regulations and
orders relating to the Property;

19

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

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

                              (f)
Seller shall not, without first obtaining the written approval of Buyer, which
approval shall not be unreasonably withheld, enter into any FF&E Leases,
Service Contracts, Leases or other contracts or agreements related to the
Hotel, or extend any existing such agreements, unless such agreements (x) can
be terminated, without penalty, upon thirty (30) days’ prior notice or (y) will
expire prior to the Closing Date.

          8.10
Third Party Consents. Prior to the Closing
Date, Seller shall, at its expense, (i) obtain any and all third party consents
and approvals (x) required in order to transfer the Hotel to Buyer, or (y)
which, if not obtained, would materially adversely affect the operation of the
Hotel and (ii) use best efforts to obtain all other third party consents and
approvals (all of such consents and approvals in (i) and (ii) above being
referred to collectively as, the “Third
Party Consents”).

          8.11
Access to Financial Information. Buyer’s representatives
shall have access to, and Seller and its affiliates shall cooperate with Buyer
and furnish upon request, all financial and other information relating to the
Hotel’s operations to the extent available and necessary to enable Buyer’s
representatives to prepare audited financial statements in conformity with
Regulation S-X of the Securities and Exchange Commission (the “SEC”) and other applicable rules and
regulations of the SEC and to enable them to prepare a registration statement,
report or disclosure statement for filing with the SEC on behalf of Buyer or
its Affiliates, whether before or after Closing and regardless of whether such
information is included in the Records to be transferred to Buyer hereunder.
Seller shall also provide to Buyer’s representative a signed representation
letter in form and substance reasonably acceptable to Seller sufficient to
enable an independent public accountant to render an opinion on the financial
statements related to the Hotel. Buyer will reimburse Seller for costs
reasonably incurred by Seller to comply with the requirements of the preceding
sentence to the extent that Seller is required to incur costs not in the
ordinary course of business for third parties to provide such representation
letter. The provisions of this Section shall survive Closing or termination of
this Contract.

          8.12
Bulk Sales. At Seller’s risk and
expense, Seller shall take all steps necessary to comply with the requirements
of a transferor under all bulk transfer laws, if any, that are applicable to
the transactions contemplated by this Contract.

          8.13
Indemnification. If the transactions
contemplated by this Contract are consummated as provided herein:

                              (a)
Indemnification of Buyer. Without in any way limiting or diminishing the
warranties, representations or agreements herein contained or the rights or
remedies available to Buyer for a breach hereof, Seller hereby agrees to
indemnify, defend and 

20

hold harmless
Buyer and its respective designees, successors and assigns from and against all
losses, judgments, liabilities, claims, damages or expenses (including
reasonable attorneys’ fees) of every kind, nature and description in existence
before, on or after Closing, whether known or unknown, absolute or continent,
joint or several, arising out of or relating to:

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

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

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

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

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

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

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

                                        (ii)
the conduct and operation by Buyer of its business at the Hotel after the
Closing; and

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

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

                                        (i)
The party seeking indemnification (the “Indemnified
Party”) shall give prompt written notice to the party or parties
from which it is seeking indemnification (the “Indemnifying Party”) of any
assertion of liability by a third party which 

21

might give
rise to a claim for indemnification based on the foregoing provisions of this
Section 8.13, which notice shall state the nature and basis of the assertion
and the amount thereof, to the extent known; provided, however, that no delay
on the part of the Indemnified Party in giving notice shall relieve the
Indemnifying Party of any obligation to indemnify unless (and then solely to
the extent that) the Indemnifying Party is prejudiced by such delay.

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

                                        (iii)
Notwithstanding the provisions of the previous subsection of this Contract,
until the Indemnifying Party shall have assumed the defense of the Legal
Action, the defense shall be handled by the Indemnified Party. Furthermore, (x)
if the Indemnified Party shall have reasonably concluded that there are likely
to be defenses available to it that are different from or in addition to those
available to the Indemnifying Party; (y) if the Legal Action involves other
than money damages and seeks injunctive or other equitable relief; or (z) if a
judgment against Buyer, as the Indemnified Party, in the Legal Action will, in
the good faith opinion of Buyer, establish a custom or precedent which will be
adverse to the best interest of the continuing business of the Hotel, the
Indemnifying Party, shall not be entitled to assume the defense of the Legal
Action and the defense shall be handled by the Indemnified Party, provided
that, in the case of clause (z), the Indemnifying Party shall have the right to
approve legal counsel selected by the Indemnified Party, such approval not to
be unreasonably withheld, delayed or conditioned. If the defense of the Legal
Action is handled by the Indemnified Party under the provisions of this
subsection, the Indemnifying Party shall pay all legal and other expenses
reasonably incurred by the Indemnified Party in conducting such defense.

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

22

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

          8.14
Escrow Funds. To provide for the
timely payment of any post-closing claims by Buyer against Seller hereunder, at
Closing, the Seller shall deposit an amount equal to Three Hundred Thousand and
No/100 Dollars ($300,000.00) (the “Escrow
Funds”) shall be withheld from the Purchase Price payable to a
Seller and shall be deposited for a period of nine (9) months in an escrow
account with the Title Company pursuant to an escrow agreement reasonably
satisfactory in form and substance to Buyer and Seller (the “Post-Closing Agreement”), which escrow
and Post-Closing Agreement shall be established and entered into at Closing and
shall be a condition to Buyer’s obligations under this Contract. If no claims
have been asserted by Buyer against Seller, or all such claims have been satisfied,
within such nine month period, the Escrow Funds deposited by the Seller shall
be released to the Seller.

          8.15
Liquor License. If required by the
Franchisor, the Manager or an Affiliate thereof approved by Buyer, shall have
or shall have obtained all liquor licenses and alcoholic beverage licenses or
banquet licenses, as appropriate and necessary or desirable to operate any
restaurants, bars and lounges to be located within the Hotel (collectively, the
“Liquor Licenses”) and, in
the case of an Affiliate of the Manager, the Hotel shall have the right to use
such Liquor License, (ii) if permitted under the laws of the jurisdiction in
which the Hotel is located, to the extent practicable the Manager shall execute
and file any and all necessary forms, applications and other documents (and
Seller and Buyer shall cooperate with the Manager in filing such forms,
applications and other documents) with the appropriate liquor and alcoholic
beverage authorities prior to Closing so that the Liquor Licenses remain in
full force and effect upon completion of Closing.

          8.16
Mechanics’ Lien Protection. As further inducement
for Buyer’s entering into this Contract and as a condition to Buyer’s
obligation to close hereunder, Seller shall provide all information necessary
for the Title Company to issue to Buyer at Closing a title policy that
affirmatively insures Buyer against materialmen, mechanics, contractors and
vendor liens, including, but not limited to, a list of all vendors and contractors
providing goods and services in connection with the construction of the Hotel,
a list of all amounts paid and amounts due such vendors and contractors, lien
waivers from the General Contractor and all subcontractors and indemnity
agreements as may be required by the Title Company.

ARTICLE 9

CONDITIONS FOR CLOSING

          9.1
Buyer’s Conditions for Closing. Unless otherwise waived
in writing, and without prejudice to Buyer’s right to cancel this Contract
during the Review Period, the duties and obligations of Buyer to proceed to
Closing under the terms and provisions of this Contract are 

23

and shall be
expressly subject to strict compliance with, and satisfaction or waiver of,
each of the conditions and contingencies set forth in this Section 9.1, each of
which shall be deemed material to this Contract. In the event of the failure of
any of the conditions set forth in this Section 9.1 or of any other condition
to Buyer’s obligations provided for in this Contract, which condition is not waived
in writing by Buyer, Buyer shall have the right at its option to declare this
Contract terminated, in which case the Earnest Money Deposit and any interest
thereon shall be immediately returned to Buyer and each of the parties shall be
relieved from further liability to the other, except as otherwise expressly
provided herein, with respect to this Contract.

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

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

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

                              (d)
All Liquor Licenses shall be in full force and effect and shall remain in full
force and effect following the Closing and shall have been or shall be
transferred to, or new Liquor Licenses shall be issued to, Manager or an
Affiliate thereof approved by Buyer at or as of Closing, and Buyer shall have
received satisfactory evidence thereof. If necessary, the Existing Manager
shall remain in a temporary and limited capacity until the Liquor License can
be transferred, or a new Liquor License can be issued to the Manager or an
Affiliate.

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

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

                              (g)
The Hotel shall be Substantially Completed.

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

                              (i)
The Franchisor shall have executed and delivered the Franchise Agreement upon
terms and conditions acceptable to Buyer in its sole and absolute discretion;
provided, however, such contingency is conditioned upon Buyer providing Seller
with evidence 

24

of Buyer’s
submission of a franchise application to Franchisor not later than ninety (90)
days prior to Closing.

                              (j)
Buyer shall have obtained an as-built plat of survey of the Property completed,
dated within 30 days of the Closing Date and prepared in compliance with the
then-current ALTA/ACSM standards for urban properties, and such plat of survey
shall not disclose any encroachments, boundary line discrepancies or other
survey matters that, in Buyer’s reasonable judgment, would materially adversely
affect the use, operation of value of the Property.

                              (k)
Buyer shall have obtained an ALTA owner’s title insurance policy (or, if an
ALTA form of policy is not customarily issued in the state in which the Real
Property is located, in the form customarily issued in such state), issued by
the Title Company pursuant to the Title Commitment, insuring Buyer’s fee simple
ownership in the Real Property (i) with an effective date as of the Closing
Date, (ii) with no exceptions for filed or unfiled mechanics’ and materialmen’s
liens, (iii) with no exceptions for encroachments or other matters of survey
unless approved by Buyer and (iv) with no other exceptions to title other than
the Permitted Exceptions.

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

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

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

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

                              (d)
Within sixty (60) days after the date of this Contract, Seller shall have
received a commitment for financing of the construction of the Hotel, which
commitment shall be acceptable to Seller in its sole but reasonable discretion.
In the event this condition is not satisfied, either Seller or Buyer may
terminate this Contract, or with written notice to Buyer, 

25

Seller may
extend such sixty (60) day period by an additional thirty (30) day period for
purposes of obtaining such a commitment. Seller shall provide Buyer with
written notice on or before the expiration of such 60-day period indicating
whether Buyer has obtained such commitment for financing.

ARTICLE 10

CLOSING AND CONVEYANCE

          10.1
Closing. Unless otherwise agreed
by Buyer and Seller, the Closing on the Property shall occur on the date on
which the Hotel opens for business to the public in accordance with the
Franchise Agreement, or as soon as practical thereafter, but in no event later
than fifteen (15) business days after Substantial Completion of the Hotel,
provided that all conditions to Closing by Buyer hereunder have been satisfied.
Buyer will provide Seller at least five (5) days prior written notice of the
Closing Date selected by Buyer. The date on which the Closing is to occur as
provided in this Section 10.1, or such other date as may be agreed upon by
Buyer and Seller, is referred to in this Contract as the “Closing Date” for the Property. The
Closing shall be held at 10:00 a.m. at the offices of the Title Company, or as
otherwise determined by Buyer and Seller. Regardless of the Closing Date, the
Closing shall be effective as of 12:01 a.m. on the date which is the later of
(i) the Substantial Completion Date or (ii) the date on which the Hotel opens
for business to the public in accordance with the Franchise Agreement (the
“Effective Time”).

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

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

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

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

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

26

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

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

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

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

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

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

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

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

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

27

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

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

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

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

ARTICLE 11

COSTS

          All
Closing costs shall be paid as set forth below:

          11.1
Seller’s Costs. In connection with the
sale of the Property contemplated under this Contract, Seller shall be
responsible for all transfer and recordation taxes, including, without
limitation, all transfer, sales, use and bulk transfer taxes or like taxes on
or in connection with the transfer of the Real Property and the Personal
Property constituting part of the Property pursuant to the Bill of Sale, in
each case except as otherwise provided in Section 12, and all accrued taxes of
Seller prior to Closing and income, sales and use taxes and other such taxes of
Seller attributable to the sale of the Property to Buyer. Seller shall be
responsible for all costs related to the termination of any existing management
agreement and the Existing Franchise Agreement as provided in Article V. Seller
shall also be responsible for any fees for the performance of the property
improvement plan review and report by the Franchisor, as well as costs and
expenses of its attorneys, accountants, appraisers and other professionals,
consultants and representatives. Seller shall also be responsible for payment
of all prepayment penalties and other amounts payable in connection with the
pay-off of any liens and/or indebtedness encumbering the Property. Seller shall
also be responsible for all Pre-Opening Costs to the extent provided in Section
8.7. Seller shall pay the sales/use taxes attributed to the transfer of the
personal property.

          11.2
Buyer’s Costs. In connection with the
purchase of the Property contemplated under this Contract, Buyer shall be
responsible for the costs and expenses of its attorneys, accountants and other
professionals, consultants and representatives. Buyer shall also be responsible
for the costs and expenses in connection with the preparation of any
environmental report, any update to the survey and the costs and expenses of
preparation of the title insurance

28

commitment and
the issuance of the title insurance policy contemplated by Article IV and the
per page recording charges for the Deed (if applicable). 

ARTICLE 12

ADJUSTMENTS

          12.1
Adjustments. Unless otherwise provided herein, at Closing, adjustments
between the parties of the income and expenses related to the Property shall be
made as of the Effective Time, all as set forth below. All of such adjustments
and allocations shall be made in cash at Closing and shall be collected through
and/or adjusted in accordance with the terms of the Existing Management
Agreement. Except as otherwise expressly provided herein, all apportionments
and adjustments shall be made on an accrual basis in accordance with generally
accepted accounting principles. 

                              (a)
Taxes. All real estate taxes, personal property taxes, or any other
taxes and special assessments (special or otherwise) of any nature upon the
Property levied, assessed or pending for the calendar year in which the Closing
occurs (including the period prior to Closing, regardless of when due and
payable) shall be prorated as of the Effective Time and, if no tax bills or
assessment statements for such calendar year are available, such amounts shall
be estimated on the basis of the best available information for such taxes and
assessments that will be due and payable on the Hotel for the calendar year in
which Closing occurs. 

                              (b)
Utilities. All suppliers of utilities shall be instructed to read meters
or otherwise determine the charges owing as of the Effective Time for services
prior thereto, which charges shall be allocated to Seller. Charges accruing
after the Effective Time shall be allocated to Buyer. If elected by Seller,
Seller shall be given credit, and Buyer shall be charged, for any utility
deposits transferred to and received by Buyer at Closing. 

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

                              (d)
Accounts. Petty cash, cash in cash registers and cash in vending
machines but excluding amounts held in tax and insurance escrow accounts and
utility deposits (to the extent excluded from the definition of Deposits) held
by or on behalf of Seller, the Manager or the Franchisor with respect to the
Hotel shall become the property of Buyer at Closing without Buyer being
required to fund the same. 

                              (e)
Advance Deposits, etc. All income generated by the Hotel, including
receipts from pre-paid guest room or suite rentals, all prepaid rentals, room
rental deposits, and all other deposits for advance registration, banquets or
services, if paid during the period before the Effective Time and applicable to
the period after the Effective Time, shall be credited to Buyer. 

                              (f)
Other Costs. All other costs attributable to the period before the
Effective Time, including the cost of property and liability insurance and all
Pre-Opening Costs, 

29

shall be
allocated to Seller (subject to the limitations provided in Section 8.7), and
all costs attributable to the period after the Effective Time shall be
allocated to Buyer. 

          12.2
Reconciliation and Final Payment. Seller and Buyer shall reasonably
cooperate after Closing to make a final determination of the allocations and
prorations required under this Contract within one hundred eighty (180) days
after the Closing Date. Upon the final reconciliation of the allocations and
prorations under this Section, the party which owes the other party any sums
hereunder shall pay such party such sums within ten (10) days after the
reconciliation of such sums. The obligations to calculate such prorations, make
such reconciliations and pay any such sums shall survive the Closing. 

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

ARTICLE 13

CASUALTY AND CONDEMNATION

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

          13.2
Buyer’s Termination Right. If, prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, (a) any
condemnation proceeding shall be pending against a substantial portion of the
Hotel or (b) there is any substantial casualty loss 

30

or damage to
the Hotel, Buyer shall have the option to terminate this Contract, provided
Buyer delivers written notice to Seller of its election within twenty (20) days
after the date Seller has delivered Buyer written notice of any such loss,
damage or condemnation as provided above, and in such event, the Earnest Money
Deposit, and any interest thereon, shall be delivered to Buyer and thereafter,
except as expressly set forth herein, no party shall have any further
obligation or liability to the other under this Contract. In the context of
condemnation, “substantial” shall mean condemnation of such portion of the
Hotel (or access thereto) as could, in Buyer’s reasonable judgment, render use
of the remainder impractical or unfeasible for the uses herein contemplated,
and, in the context of casualty loss or damage, “substantial” shall mean a loss
or damage in excess of Two Hundred Fifty Thousand and No/100 Dollars
($250,000.00) in value. 

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

ARTICLE 14

DEFAULT REMEDIES

          14.1
Buyer Default. If Buyer defaults under this Contract after the Review
Period, and such default continues for thirty (30) days following written
notice from Seller (provided no notice shall extend the time for Closing), then
at Seller’s election by written notice to Buyer, this Contract shall be
terminated and of no effect, in which event the Earnest Money Deposit,
including any interest thereon, shall be paid to and retained by the Seller as
Seller’s sole and exclusive remedy hereunder, and as liquidated damages for
Buyer’s default or failure to close, and both Buyer and Seller shall thereupon
be released from all obligations hereunder. 

          14.2
Seller Default. If Seller defaults under this Contract, and such default
continues for thirty (30) days following written notice from Buyer, Buyer may
elect, as Buyer’s sole and exclusive remedy, either (i) to terminate this
Contract by written notice to Seller delivered to Seller at any time prior to
the completion of such cure, in which event the Earnest Money Deposit,
including any interest thereon, shall be returned to the Buyer, Seller shall
reimburse Buyer for its out of pocket due diligence costs (not to exceed
$55,000) and thereafter both the Buyer and Seller shall thereupon be released
from all obligations with respect to this Contract, except as otherwise
expressly provided herein; or (ii) to treat this Contract as being in full
force and effect by written notice to Seller delivered to Seller at any time
prior to the completion of such cure, in which event the Buyer shall have the
right to an action against Seller for specific performance. 

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

31

in enforcing
such rights, then the defaulting party shall reimburse the non-defaulting party
for the non-defaulting party’s reasonable attorneys’ fees, costs and expenses. 

ARTICLE 15

NOTICES

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

	
  

 	
  

 	
  

 
	
  

 	
 If to Buyer:

 	
 Apple Ten
 Hospitality Ownership, Inc.

 
	
  

 	
  

 	
 814 E. Main
 Street

 
	
  

 	
  

 	
 Richmond,
 Virginia 23219

 
	
  

 	
  

 	
 Attention:
 Nelson Knight

 
	
  

 	
  

 	
 Fax No.:
 (804) 344-8129

 
	
  

 	
  

 	
 Email:
 nknight@applereit.com

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
 Apple REIT
 Ten, Inc.

 
	
  

 	
  

 	
 814 E. Main
 Street

 
	
  

 	
  

 	
 Richmond,
 Virginia 23219

 
	
  

 	
  

 	
 Attention:
 Legal Dept.

 
	
  

 	
  

 	
 Fax No.:
 (804) 344-8129

 
	
  

 	
  

 	
 Email:
 dbuckley@applereit.com

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Seller:

 	
 Dallas
 Lodging, LLC

 
	
  

 	
  

 	
 1135 Kinwest
 Parkway, Ste. 150

 
	
  

 	
  

 	
 Irving,
 Texas 75063

 
	
  

 	
  

 	
 Attention:
 Mehul Patel

 
	
  

 	
  

 	
 Fax No.
 (214) 260-3724

 
	
  

 	
  

 	
 Email: mike@sagestar.net

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
 Stites &
 Harbison, PLLC

 
	
  

 	
  

 	
 400 West
 Market Street, Suite 1800

 
	
  

 	
  

 	
 Louisville,
 KY 40202

 
	
  

 	
  

 	
 Attention:
 Jamie L. Cox, Esq.

 
	
  

 	
  

 	
 Fax No.
 (502) 779-8285

 
	
  

 	
  

 	
 Email: jcox@stites.com

 

32

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

ARTICLE 16

MISCELLANEOUS

          16.1
Performance. Time is of the essence in the performance and satisfaction
of each and every obligation and condition of this Contract. 

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

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

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

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

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

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

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

          16.9
Severability. If any provision of this Contract shall, for any reason,
be adjudged by any court of competent jurisdiction to be invalid or
unenforceable, such judgment shall not 

33

affect, impair
or invalidate the remainder of this Contract but shall be confined in its
operation to the provision or provisions hereof directly involved in the
controversy in which such judgment shall have been rendered, and this Contract
shall be construed as if such provision had never existed, unless such
construction would operate as an undue hardship on Seller or Buyer or would
constitute a substantial deviation from the general intent of the parties as
reflected in this Contract. 

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

          16.11
(Intentionally Omitted). 

          16.12
Further Acts. In addition to the acts, deeds, instruments and agreements
recited herein and contemplated to be performed, executed and delivered by Buyer
and Seller, Buyer and Seller shall perform, execute and deliver or cause to be
performed, executed and delivered at the Closing or after the Closing, any and
all further acts, deeds, instruments and agreements and provide such further
assurances as the other party or the Title Company may reasonably require to
consummate the transaction contemplated hereunder. 

          16.13
Joint and Several Obligations. If Seller consists of more than one
person or entity, each such person or entity shall be jointly and severally
liable with respect to the obligations of Seller under this Contract. 

          16.14
Notice of Proposed Listing. In the event that the sale of the Property
contemplated by this Contract is consummated, if at any time during the five
(5) year period commencing on the date of execution of this Contract by Buyer
and Seller, Seller or any of its Affiliates propose to list for sale any hotel
property or properties owned, acquired, constructed or developed by Sellers or
their Affiliates and located within a ten (10)-mile radius of any Hotel (any
such other hotel property being referred to as an “Other Property”), Sellers
shall promptly deliver to Buyer written notice thereof and Buyer shall have the
right to see and participate in the offering and/or otherwise make an offer to
purchase any such Other Property.  

[Signatures Begin on Following Page]

34

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC.,

 
	
  

 	
 a Virginia
 corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ David
 Buckley

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: David
 Buckley

 
	
  

 	
 Title: Vice
 President

 
	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 
	
  

 	
 DALLAS
 LODGING, LLC,

 
	
  

 	
 a Texas
 limited liability company

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Mehul
 Patel

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Mehul
 Patel

 
	
  

 	
 Title:
 Member

 

35

EXHIBIT “A”

LEGAL DESCRIPTION OF LAND

EXHIBIT C

LIST OF HOTEL CONTRACTS

EXHIBIT C-1 -
Seller’s Hotel Contracts 

To be provided
by Seller and approved by Buyer during the Review Period

EXHIBIT C-2 -
Other Hotel Contracts

To be provided
by Seller and approved by Buyer during the Review Period 

EXHIBIT D

CONSENTS AND APPROVALS 

          A.
Consents Under Hotel Contracts 

To be provided
by Seller and approved by Buyer during the Review Period

          B.
Consents Under Other Contracts

To be provided
by Seller and approved by Buyer during the Review Period

          C.
Governmental Approvals and Consents

To be provided
by Seller and approved by Buyer during the Review Period 

EXHIBIT E

ENVIRONMENTAL REPORTS

To be provided
by Seller and approved by Buyer during the Review Period 

EXHIBIT F

CLAIMS OR LITIGATION PENDING

To be provided
by Seller and approved by Buyer during the Review Period

EXHIBIT G

ESCROW AGREEMENT

          THIS
ESCROW AGREEMENT (this “Agreement”)
made the ___ day of _______, 2010 by and among _____________________, a
___________ ________________ (“Seller”),
APPLE TEN HOSPITALITY OWNERSHIP, INC. a Virginia corporation, or its assigns (“Buyer”), and CHICAGO TITLE COMPANY
(“Escrow Agent”).

R E C I T A L S 

          WHEREAS,
pursuant to the provisions of Section 2.5 of that certain Purchase Contract
dated November ___, 2011 (the “Contract”) between Seller and Buyer (the “Parties”), the Parties have requested
Escrow Agent to hold in escrow in accordance with the provisions, upon the
terms, and subject to the conditions, of this Agreement, the Earnest Money
Deposit as defined in the Contract (the “Deposit”);
and 

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

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

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

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

                    3.
A. Buyer shall be entitled to an immediate return of the Deposit at any time
prior to the expiration of the Review Period (as defined in Section 3.1 of the
Contract) by providing written notice to Escrow Agent stating that Buyer has
elected to terminate the Contract pursuant to Section 3.1. 

                              B.
If at any time after the expiration of the Review Period, Buyer claims entitlement
to all or any portion of the Deposit, Buyer shall give written notice to Escrow
Agent stating that Seller has defaulted in the performance of its obligations
under the Contract beyond the applicable grace period, if any, or that Buyer is
otherwise entitled to the return of the Deposit or applicable portion thereof and
shall direct Escrow Agent to return the Deposit or applicable portion thereof
to Buyer (the “Buyer’s Notice”).
Escrow Agent shall promptly deliver a copy of Buyer’s Notice to Seller. Seller
shall have three (3) business days after receipt of the copy of Buyer’s Notice
to deliver written notice to Escrow Agent and Buyer objecting to the release of
the Deposit or applicable portion thereof to Buyer (“Seller’s Objection Notice”). 

2

If Escrow
Agent does not receive a timely Seller’s Objection Notice, Escrow Agent shall
release the Deposit or applicable portion thereof to Buyer. If Escrow Agent
does receive a timely Seller’s Objection Notice, Escrow Agent shall release the
Deposit or applicable portion thereof only upon receipt of, and in accordance
with, written instructions signed by Seller and Buyer, or the final order of a
court of competent jurisdiction. 

                              C.
If, at any time after the expiration of the Review Period, Seller claims
entitlement to the Deposit or applicable portion thereof, Seller shall give
written notice to Escrow Agent stating that Buyer has defaulted in the
performance of its obligations under the Contract, and shall direct Escrow
Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s Notice”). Escrow Agent shall
promptly deliver a copy of Seller’s Notice to Buyer. Buyer shall have three (3)
business days after receipt of the copy of Seller’s Notice to deliver written
notice to Escrow Agent and Seller objecting to the release of the Deposit or
applicable portion thereof to Seller (“Buyer’s
Objection Notice”). If Escrow Agent does not receive a timely
Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable
portion thereof to Seller. If Escrow Agent does receive a timely Seller’s
Objection Notice, Escrow Agent shall release the Deposit or applicable portion
thereof only upon receipt of, and in accordance with, written instructions
signed by Buyer and Seller, or the final order of a court of competent
jurisdiction. 

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

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

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

                              C.
Escrow Agent shall not be bound or in any way affected by any notice of any
modification or cancellation of this Agreement, or of any fact or circumstance
affecting or alleged to affect rights or liabilities hereunder other than as is
herein set forth, or affecting or alleged to affect the rights and liabilities
of any other person, unless notice of the same is delivered to Escrow Agent in
writing, signed by the proper parties to Escrow Agent’s

3

satisfaction
and, in the case of modification, unless such modification shall be approved by
Escrow Agent in writing. 

                    6.
A. Escrow Agent and any successor escrow agent, as the case may be, may resign
his or its duties and be discharged from all obligations hereunder at any time
upon giving five (5) days’ prior written notice to each of the Parties hereto.
The Parties hereto will thereupon jointly designate a successor escrow agent
hereunder within said five (5) day period to whom the Deposit shall be
delivered. In default of such a joint designation of a successor escrow agent,
Escrow Agent shall retain the Deposit as custodian thereof until otherwise
directed by the Parties hereto, jointly, or until the Deposit is released in
accordance with clause (B) below, in each case, without liability or
responsibility. 

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

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 If addressed
 to Seller, to:

 
	
  

 
	
  

 	
  

 	
  

 	
 Dallas
 Lodging, LLC

 
	
  

 	
  

 	
  

 	
 1135 Kinwest
 Parkway, Suite 150

 
	
  

 	
  

 	
  

 	
 Irving,
 Texas 75063

 
	
  

 	
  

 	
  

 	
 Attention:
 Mehul Patel

 
	
  

 	
  

 	
  

 	
 Fax No.
 (214) 260-3724

 
	
  

 	
  

 	
  

 	
 Email: mike@sagestar.net

 

4

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Stites &
 Harbison, PLLC

 
	
  

 	
  

 	
  

 	
 400 West
 Market Street, Suite 1800

 
	
  

 	
  

 	
  

 	
 Louisville,
 KY 40202

 
	
  

 	
  

 	
  

 	
 Attention:
 Jamie L. Cox

 
	
  

 	
  

 	
  

 	
 Fax No.
 (502) 779-8285

 
	
  

 	
  

 	
  

 	
 Email: jcox@stites.com

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 If addressed
 to Buyer, to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Apple Ten
 Hospitality Ownership, Inc.

 
	
  

 	
  

 	
  

 	
 814 E. Main
 Street

 
	
  

 	
  

 	
  

 	
 Richmond,
 Virginia 23219

 
	
  

 	
  

 	
  

 	
 Attn: Nelson
 Knight

 
	
  

 	
  

 	
  

 	
 Fax No.:
 (804) 344-8129

 
	
  

 	
  

 	
  

 	
 Email: nknight@applereit.com

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 with a copy
 to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Apple REIT
 Ten, Inc.

 
	
  

 	
  

 	
  

 	
 814 E. Main
 Street

 
	
  

 	
  

 	
  

 	
 Richmond,
 Virginia 23219

 
	
  

 	
  

 	
  

 	
 Attn: Legal
 Dept.

 
	
  

 	
  

 	
  

 	
 Fax No.:
 (804) 727-6349

 
	
  

 	
  

 	
  

 	
 Email:
 dbuckley@applereit.com

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

 	
 If addressed
 to Escrow Agent, to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Chicago
 Title Company

 
	
  

 	
  

 	
  

 	
 5501 LBJ
 Freeway, Ste. 200

 
	
  

 	
  

 	
  

 	
 Dallas,
 Texas 75240

 
	
  

 	
  

 	
  

 	
 Attn: Debby
 Moore

 
	
  

 	
  

 	
  

 	
 Fax No.:
 (214) 570-0210

 
	
  

 	
  

 	
  

 	
 Email: debby.moore@cttdallas.com

 

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

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

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

5

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 
	
  

 	
 DALLAS
 LODGING, LLC

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC.

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 
	
  

 	
 ESCROW AGENT:

 
	
  

 	
  

 
	
  

 	
 CHICAGO
 TITLE COMPANY

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 

6

EXHIBIT H

CONSTRUCTION WARRANTY

          The
Contractor hereby warrants to Seller and Buyer that all materials and equipment
furnished with respect to the Property are new and the work performed by the
Contractor with respect to the Property is of good and workmanlike quality,
free from faults and defects, and in conformance with all contract documents.
Work not conforming to these requirements, including substitutions not properly
approved and authorized, may be considered defective. The foregoing warranty
excludes remedy for damage or defect caused by abuse, modifications not
executed by the Contractor, improper or insufficient maintenance, improper
operation, or normal wear and tear and normal usage. If required by Seller or
Buyer, the Contractor shall furnish satisfactory evidence as to the kind and
quality of materials and equipment. 

          The
Contractor hereby guarantees to Seller and Buyer all work performed and
materials and equipment furnished with respect to the Property against defects
in materials and workmanship for a period of one year from the date of
substantial completion of the entire Property, or for a longer period if so
specified in the contract documents. 

          The
Contractor shall, within a reasonable time after receipt of written notice
thereof, and without reimbursement under the construction contract, make good
any defects in materials, equipment and workmanship which may develop within
periods for which said material, equipment and workmanship are guaranteed and
make good any damage to other work caused by the repairing of such defects. 

7Exhibit 10.48

Grapevine, TX (CY/TPS)

PURCHASE CONTRACT

between

GRAPEVINE EQUITY PARTNERS, LLC (“SELLER”)

AND

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

Dated: November 1, 2011

i

TABLE OF
CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 1

 	
  

 	
 DEFINED TERMS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1

 	
  

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 2

 	
  

 	
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;
 EARNEST MONEY DEPOSIT

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
  

 	
 Purchase and
 Sale

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
  

 	
 Purchase
 Price

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.3

 	
  

 	
 Allocation

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.4

 	
  

 	
 Payment

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.5

 	
  

 	
 Earnest
 Money Deposit

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 3

 	
  

 	
 REVIEW PERIOD

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
  

 	
 Review
 Period

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
  

 	
 Due
 Diligence Examination

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
  

 	
 Restoration

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 4

 	
  

 	
 SURVEY AND TITLE APPROVAL

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
  

 	
 Survey

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.2

 	
  

 	
 Title

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.3

 	
  

 	
 Survey or
 Title Objections

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 5

 	
  

 	
 MANAGEMENT AGREEMENT AND FRANCHISE
 AGREEMENT

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 6

 	
  

 	
 BROKERS

 	
  

 	
 12

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 7

 	
  

 	
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
  

 	
 Seller’s
 Representations, Warranties and Covenants

 	
  

 	
 13

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
  

 	
 Buyer’s
 Representations, Warranties and Covenants

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
  

 	
 Survival

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 8

 	
  

 	
 ADDITIONAL COVENANTS

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
  

 	
 Subsequent
 Developments

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.2

 	
  

 	
 Construction
 of Hotel

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.3

 	
  

 	
 Plans and
 Specifications

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.4

 	
  

 	
 Commencement
 of Construction; Substantial Completion

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.5

 	
  

 	
 Inspections

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.6

 	
  

 	
 Punch List

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.7

 	
  

 	
 Pre-Opening
 Program

 	
  

 	
 18

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.8

 	
  

 	
 Construction
 Warranty

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.9

 	
  

 	
 Other
 Obligations of Seller Before Closing

 	
  

 	
 19

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.10

 	
  

 	
 Third Party
 Consents

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.11

 	
  

 	
 Access to
 Financial Information

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.12

 	
  

 	
 Bulk Sales

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.13

 	
  

 	
 Indemnification

 	
  

 	
 20

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.14

 	
  

 	
 Escrow Funds

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.15

 	
  

 	
 Liquor
 License

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.16

 	
  

 	
 Mechanics’
 Lien Protection

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 9

 	
  

 	
 CONDITIONS FOR CLOSING

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1

 	
  

 	
 Buyer’s
 Conditions for Closing

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.2

 	
  

 	
 Seller’s
 Conditions for Closing

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 10

 	
  

 	
 CLOSING AND CONVEYANCE

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1

 	
  

 	
 Closing

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.2

 	
  

 	
 Deliveries
 of Seller

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.3

 	
  

 	
 Buyer’s
 Deliveries

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 11

 	
  

 	
 COSTS

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1

 	
  

 	
 Seller’s
 Costs

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.2

 	
  

 	
 Buyer’s
 Costs

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 12

 	
  

 	
 ADJUSTMENTS

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.1

 	
  

 	
 Adjustments

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.2

 	
  

 	
 Reconciliation
 and Final Payment

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.3

 	
  

 	
 Employees

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 13

 	
  

 	
 CASUALTY AND CONDEMNATION

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.1

 	
  

 	
 Risk of
 Loss; Notice

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.2

 	
  

 	
 Buyer’s
 Termination Right

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.3

 	
  

 	
 Procedure
 for Closing

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 14

 	
  

 	
 DEFAULT REMEDIES

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.1

 	
  

 	
 Buyer
 Default

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.2

 	
  

 	
 Seller
 Default

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.3

 	
  

 	
 Attorney’s
 Fees

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 15

 	
  

 	
 NOTICES

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE 16

 	
  

 	
 MISCELLANEOUS

 	
  

 	
 33

 

iii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.1

 	
  

 	
 Performance

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.2

 	
  

 	
 Binding
 Effect; Assignment

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.3

 	
  

 	
 Entire
 Agreement

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.4

 	
  

 	
 Governing
 Law

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.5

 	
  

 	
 Captions

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.6

 	
  

 	
 Confidentiality

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.7

 	
  

 	
 Closing
 Documents

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.8

 	
  

 	
 Counterparts

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.9

 	
  

 	
 Severability

 	
  

 	
 33

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.10

 	
  

 	
 Interpretation

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.11

 	
  

 	
 (Intentionally
 Omitted)

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.12

 	
  

 	
 Further Acts

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.13

 	
  

 	
 Joint and
 Several Obligations

 	
  

 	
 34

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.14

 	
  

 	
 [Notice of
 Proposed Listing

 	
  

 	
 34

 

SCHEDULES:

	
  

 	
  

 
	
 EXHIBITS:

 	
  

 
	
  

 	
  

 
	
 Exhibit A

 	
 Legal Description

 
	
 Exhibit B

 	
 List of
 FF&E

 
	
 Exhibit C

 	
 List of
 Hotel Contracts

 
	
 Exhibit D

 	
 Consents and
 Approvals

 
	
 Exhibit E

 	
 Environmental
 Reports

 
	
 Exhibit F

 	
 Claims or
 Litigation Pending

 
	
 Exhibit G

 	
 Escrow
 Agreement

 
	
 Exhibit H

 	
 Construction
 Warranty

 

iv

PURCHASE CONTRACT 

          This
PURCHASE CONTRACT (this “Contract”)
is made and entered into as of November 1, 2011, by and between GRAPEVINE
EQUITY PARTNERS, LLC, a Texas limited liability company (“Seller”) with a
principal office at 1135 Kinwest Parkway #150, Irving, Texas 75063, and APPLE
TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with its principal
office at 814 East Main Street, Richmond, Virginia 23219, or its affiliates or
assigns (“Buyer”).  

RECITALS

          A.
Seller is the fee simple owner of the land located in the City of Grapevine,
County of Tarrant, Texas, identified on Exhibit A attached hereto and
incorporated herein by reference. Seller intends to construct on such land a
Courtyard by Marriott Combo Hotel containing 180 guestrooms and a TownePlace
Suites by Marriott Combo Hotel containing 120 guestrooms.  

          B.
Buyer is desirous of purchasing such land and the hotels to be constructed
thereon from Seller upon completion of the hotels, and Seller is desirous of
selling such land and hotels to Buyer, for the purchase price and upon terms
and conditions hereinafter set forth. 

AGREEMENT:

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

ARTICLE 1

DEFINED TERMS

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

          “Additional
Deposit” shall mean $50,000. 

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

          “Appurtenances”
shall mean all rights, titles, and interests of Seller appurtenant to the Land
and Improvements, including, but not limited to, (i) all easements, rights of
way, rights of ingress and egress, tenements, hereditaments, privileges, and
appurtenances in any way belonging to the Land or Improvements, (ii) any land
lying in the bed of any alley, highway, street, road or avenue, open or
proposed, in front of or abutting or adjoining the Land, (iii) any 

1

strips or
gores of real estate adjacent to the Land, and (iv) the use of all alleys,
easements and rights-of-way, if any, abutting, adjacent, contiguous to or
adjoining the Land. 

          “Architect”
shall mean the architect for the Hotel, Dell Livingston, LLW Architects, Inc.,
803 Mount Moriah Rd., Ste 100b, Memphis, TN. 

          “Brand”
shall mean Courtyard by Marriott and TownePlace Suites by Marriott, the hotel
brands or franchises under which the Hotel will operate. “Business Day” shall
mean any day other than a Saturday, Sunday or legal holiday in the State of
Texas. 

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

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

          “Construction
Warranty” shall have the meaning set forth in Section 8.8. 

          “Contractor”
shall mean the contractor for the Hotel, Mike Patel of Sagestar Development
& Construction, LLC, 1135 Kinwest Parkway, #150, Irving, Texas 75063. 

          “Contracts,
Plans and Specs” shall mean all construction and other contracts, plans,
drawings, specifications, surveys, soil reports, engineering reports,
inspection reports, and other technical descriptions and reports in the
possession or control of Seller at the time of mutual acceptance of this
Agreement and those created during the term of this Contract. 

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

          “Deposits”
shall mean, to the extent assignable, all prepaid rents and deposits,
refundable security deposits and rental deposits, and all other deposits for
advance reservations, banquets or future services, made in connection with the
use or occupancy of the Improvements; provided, however, that to the extent
Seller has not received or does not hold all of the prepaid rents and/or
deposits attributable to the Leases related to the Property, Buyer shall be
entitled to a credit against the cash portion of the Purchase Price allocable
to the Property in an amount equal to the amount of the prepaid rents and/or
deposits attributable to the Leases transferred at the Closing of such
Property, and provided further, that “Deposits” shall exclude (i) reserves for
real property taxes and insurance, in each case, to the extent pro rated on the
settlement statement such that Buyer receives a credit for (a) taxes and
premiums in respect of any period prior to Closing and (b) the amount of
deductibles and other self-insurance and all other potential liabilities and
claims in respect of any period prior to Closing, and (ii) utility deposits. 

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

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

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

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

2

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

          “Escrow
Funds” shall have the meaning set forth in Section 8.14.

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

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

          “Existing
Management Agreement” shall mean that certain management agreement between
the Seller and Newcrest Management, LLC (the “Existing Manager”). 

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

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

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

          “Force
Majeure” shall mean any delay or hindrance in or the prevention from the
performance of any act by reason of an act of God, strikes, lockouts, labor troubles,
inability to procure materials, failure of power, restrictive governmental laws
or regulations, riots, insurrection, war or other reason of a like nature not
the fault of the party delayed in performing work or doing acts. 

          “Franchise
Agreement” shall mean the franchise license agreement, in form reasonably
acceptable to Buyer, between Franchisor and Buyer. 

          “Franchisor”
shall mean Marriott International, Inc. or its affiliate. 

3

          “Hotel”
shall mean, collectively, the hotels to be constructed on the Land, including
all Improvements and Personal Property associated therewith, to be known
generally as the “Courtyard by Marriott and TownePlace Suites by Marriott Combo
Hotel, Grapevine, TX”. 

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

          “Improvements”
shall mean all buildings, structures, fixtures, parking areas and other
improvements now existing or to be constructed on the Land, and all related
facilities. 

          “Indemnified
Party” shall have the meaning set forth in Section 8.13(c)(i). 

          “Indemnifying
Party” shall have the meaning set forth in Section 8.13(c)(i). 

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

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

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

          “Legal
Action” shall have the meaning set forth in Section 8.13(c)(ii). 

          “Legal
Requirements” shall mean any and all statutes, laws, ordinances, zoning and
other codes, rules, regulations and requirements of any governmental authority
applicable to the Property or any of the parties to this Contract. 

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

          “Liquor
Licenses” shall have the meaning set forth in Section 8.15. 

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

4

          “Manager”
shall mean the management company chosen by Buyer to operate the Hotel from and
after Closing. 

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

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

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

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

          “Plans
and Specifications” shall have the meaning set forth in Section 8.3. 

          “Pre-Opening
Costs” shall have the meaning set forth in Section 8.7. 

          “Pre-Opening
Program” shall have the meaning set forth in Section 8.7. 

          “Post-Closing
Agreement” shall have the meaning set forth in Section 8.14. 

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

          “Punch
List Items” shall mean such items (i) as are reasonably necessary or
appropriate to fully complete the construction, equipping and furnishing of the
Hotel in accordance with this Contract and (ii) that, unless otherwise agreed
by Buyer in its sole discretion, (a) individually and in the aggregate do not
and will not prohibit, cause a delay in or otherwise adversely affect, under
applicable Legal Requirements, the Franchise Agreement or otherwise, the opening
of the Hotel for business to the public or the continued occupancy and
operation of the Hotel as contemplated under the Brand and (b) may be corrected
or completed, subject to delays caused by Force Majeure, within not more than
sixty (60) days. 

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

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

          “Records”
shall mean all books, records, promotional material, tenant data, guest history
information (other than any such information owned exclusively by the
Franchisor), marketing and leasing material and forms (including but not
limited to any such records, data, information, material and forms in the form
of computerized files located at the Hotel), market studies 

5

prepared in
connection with Seller’s current annual plan and other materials, information,
data, legal or other documents or records (including, without limitation, all
documentation relating to any litigation or other proceedings, all zoning
and/or land use notices, relating to or affecting the Property, all business
plans and projections and all studies, plans, budgets and contracts related to
the development, construction and/or operation of the Hotel) owned by Seller
and/or in a Seller’s possession or control, or to which a Seller has access or
may obtain from the Franchisor, that are used in or relating to the Property
and/or the operation of the Hotel, including the Land, the Improvements or the
FF&E, and proforma budgets and projections and construction budgets and
contracts related to the development and construction of the Hotel and a list
of the general contractors, architects and engineers providing goods and/or
services in connection with the construction of the Hotel, all construction
warranties and guaranties in effect at Closing and copies of the final plans
and specifications for the Hotel. 

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

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

          “SEC”
shall have the meaning set forth in Section 8.11. 

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

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

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

          “Substantial
Completion,” including variations thereof such as “Substantially Complete”
and “Substantially Completed” shall mean: (i) the Architect and the Contractor
have issued a certificate of substantial completion in form and substance
satisfactory to Buyer certifying that the Hotel has been constructed
substantially in accordance with the Plans and Specifications and the Legal
Requirements, (ii) at least a temporary certificate of occupancy authorizing
the opening of the Hotel for business to the public and for operation under the
Brand has been issued by the local governing authority and is in full force and
effect, (iii) all other final and unconditional consents, approvals, licenses
and operating permits necessary or appropriate for the Hotel to open for
business to the public and to operate under the Brand have been issued by and
obtained from all applicable governmental and regulatory authorities, subject
to Punch List Items; (iv) the Hotel is fully furnished, fitted and equipped and
ready to open for business to the public and operate under the Brand, subject
to Punch List Items; (iii) all contractors, subcontractors, suppliers,
mechanics, materialmen and other persons or entities providing labor or
materials for the construction and development of the Hotel shall have been
paid in full (or adequate provision for payment of such persons or entities has
been made to Buyer’s satisfaction), subject to Punch List Items and (iv) the
Franchisor has approved the completion, furnishing and equipping of the Hotel
and is prepared to commence (or authorize the commencement of) operation of the
Hotel, and all of the other conditions set forth in the Franchise Agreement
have been satisfied, subject to Punch List Items. 

          “Supplies”
shall mean all merchandise, supplies, inventory and other items used for the
operation and maintenance of guest rooms, restaurants, lounges, swimming pools,
health clubs,

6

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

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

          “Third
Party Consents” shall have the meaning set forth in Section 8.10. 

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

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

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

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

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

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

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

7

ARTICLE 2

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT.

          2.1
Purchase and Sale. Seller agrees to sell and convey to Buyer or its
Affiliates and/or assigns, and Buyer or its assigns agrees to purchase from
Seller, the Property, in consideration of the Purchase Price and upon the terms
and conditions hereof. All of the Property shall be conveyed, assigned, and
transferred to Buyer at Closing, free and clear of all mortgages, liens,
encumbrances, licenses, franchises (other than any hotel franchises assumed by
Buyer), concession agreements, security interests, prior assignments or
conveyances, conditions, restrictions, rights-of-way, easements, encroachments,
claims and other matters affecting title or possession, except for the
Permitted Exceptions and FF&E Leases. 

          2.2
Purchase Price. Buyer agrees to pay, and Seller agrees to accept, as
consideration for the conveyance of the Property, subject to the adjustments
provided for in this Contract, the amount of FORTY-ONE MILLION SEVEN HUNDRED
THOUSAND and No/100 Dollars ($41,700,000.00); provided, however, that if the
actual cost of construction of the Hotel is less than $34,965,695.00, the
purchase price shall be reduced by an amount equal to twenty percent (20%) of
the difference between such actual construction costs and $34,965,695.00 (the “Purchase Price”). 

          2.3
Allocation. Buyer and Seller shall attempt to agree on an allocation of
the Purchase Price among Real Property, tangible Personal Property and
intangible property related to the Property. In the event Buyer and Sellers do
not agree, each party shall be free to allocate the Purchase Price to such
items as they deem appropriate, subject to and in accordance with applicable
laws. 

          2.4
Payment. The portion of the Purchase Price, less: (a) the Earnest Money
Deposit and interest earned thereon, if any, which Buyer elects to have applied
against the Purchase Price (as provided below) and (b) the Escrow Funds, shall
be paid to Seller in cash, certified funds or wire transfer, at the Closing of
the Property. At the Closing, the Earnest Money Deposit, together with interest
earned thereon, if any, shall, at Buyer’s election, be returned to Buyer or
shall be paid over to Seller by Escrow Agent to be applied to the portion of
the Purchase Price on behalf of Buyer, and the Escrow Funds shall be deposited
into an escrow account pursuant to the Post-Closing Agreement as contemplated
by Section 8.14. 

          2.5
Earnest Money Deposit. 

                              (a)
Within three (3) Business Days after the full execution and delivery of this
Contract, Buyer shall deposit the sum of Fifty Thousand and No/100 Dollars
($50,000.00) in cash, certified bank check or by wire transfer of immediately
available funds (the “Initial Deposit”)
with the Title Company, as escrow agent (“Escrow
Agent”), which sum shall be held by Escrow Agent as earnest
money. If, pursuant to the provisions of Section 3.1 of this Contract, Buyer
elects to terminate this Contract at any time prior to the expiration of the
Review

8

Period, then
the Escrow Agent shall return the Earnest Money Deposit to Buyer promptly upon
written notice to that effect from Buyer. If Buyer does not elect to terminate
this Contract on or before the expiration of the Review Period, Buyer shall,
within three (3) Business Days after the expiration of the Review Period
deposit the Additional Deposit with the Escrow Agent. The Initial Deposit and
the Additional Deposit, and all interest accrued thereon, shall hereinafter be
referred to as the “Earnest Money Deposit.”

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

ARTICLE 3

REVIEW PERIOD

          3.1
Review Period. Buyer shall have a period through 6:00 p.m. Eastern Time
on the date that is the later of (a) one hundred five (105) days following the
date of this Contract or (b) forty-five (45) days following the date Seller
obtains and notifies Buyer that it has received a commitment for construction financing
for the Hotel, unless a longer period of time is otherwise provided for in this
Contract and except as otherwise agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal,
title, survey, construction, physical condition, structural, mechanical,
environmental, economic, permit status, franchise status, financial and other
documents and information related to the Property. Within two (2) Business Days
following the date of this Contract, Seller, at Seller’s sole cost and expense,
will deliver to Buyer for Buyer’s review, to the extent not previously
delivered to Buyer and to the extent available, true, correct and complete
copies of the following, together with all amendments, modifications, renewals
or extensions thereof: 

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

                              (b)
To the extent available and applicable, income and expense statements and
budgets for the Hotel, for the current year to date and each of the three (3)
prior fiscal years (the “Financial
Statements”), and the Seller shall provide to Buyer copies of
all income and expense statements generated by the Seller or any third party
that relate to the operations of the Hotel and that contain information not
included in the financial statements, if any, provided to Buyer by the Manager,
provided that Sellers also agree to provide to Buyer’s auditors and
representatives all financial and other information necessary or appropriate
for preparation of audited financial statements for Buyer and/or its Affiliates
as provided in Section 8.11, below; 

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

9

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

                              (e)
All FF&E Leases, Service Contracts, Leases and, if applicable, a schedule
of such Leases of space in the Hotel, and all agreements, if any, for real
estate commissions, brokerage fees, finder’s fees or other compensation payable
by Seller in connection therewith; and 

                              (f)
All notices received from governmental authorities in connection with the Land
for the current year and each of the two(2) calendar years prior to the current
year and all other notices received from governmental authorities received at
any time that relate to any noncompliance or violation of law that has not been
corrected. 

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

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

10

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

ARTICLE 4

SURVEY AND TITLE APPROVAL

          4.1
Survey. Seller has delivered to Buyer true, correct and complete copies
of the most recent surveys of the Real Property. In the event that an update of
a survey or a new survey (such updated or new surveys being referred to as the
“Surveys”) are desired by Buyer, then Buyer shall be responsible for all costs
related thereto; provided, however, Seller shall provide, at its sole cost and
expense, an as-built survey when the Hotel is substantially complete.  

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

          4.3
Survey or Title Objections. If Buyer discovers any title or survey
matter which is objectionable to Buyer, Buyer may provide Seller with written
notice of its objection to same within ninety (90) days after receipt of each
Title Commitment (including all Exception Documents) and the applicable Survey
(the “Title Review Period”).
If Buyer fails to so object in writing to any such matter set forth in the
Survey or Title Commitment, it shall be conclusively assumed that Buyer has
approved same, except as otherwise provided in Section 9.1. If Buyer
disapproves any condition of title, survey or other matters by written
objection to Seller on or before the expiration of the Title Review Period,
Seller shall elect either to attempt to cure or not cure any such item by
written notice sent to Buyer within five (5) days after Seller’s receipt of
notice from Buyer, and if Seller commits in writing to attempt to cure any such
item, then Seller shall be given until the Closing Date to cure any such
defect. In the event Seller shall fail to cure a defect which Seller has
committed in writing to cure prior to Closing, or if a

11

new title
defect arises after the date of Buyer’s Title Commitment or Survey, as
applicable, but prior to Closing, then Buyer may elect, in Buyer’s sole and
absolute discretion: (i) to waive such objection and proceed to Closing, or
(ii) to terminate this Contract and receive a return of the Earnest Money
Deposit, and any interest thereon. The items shown on the Title Commitment
which are not objected to by Buyer as set forth above (other than exceptions
and title defects arising after the title Review Period and other than those
standard exceptions which are ordinarily and customarily omitted in the state
in which the Hotel is located, so long as Seller provides the appropriate
owner’s affidavit, gap indemnity or other documentation reasonably required by
the Title Company for such omission) and all Leases showing on the Title
Commitment are hereinafter referred to as the “Permitted Exceptions.”
In no event shall Permitted Exceptions include liens, or documents evidencing
liens, securing any indebtedness or any mechanics’ or materialmen’s liens or
any claims or potential claims therefor covering the Property or any portion
thereof or vehicle, equipment or FF&E liens or other financing(“Seller
Liens”), each of which shall be paid in full by Seller and
released at Closing. Notwithstanding anything contained in this Contract to the
contrary, if a vehicle, equipment or FF&E lease or other financing cannot
be released at Closing, Seller shall credit Buyer at Closing with the amount
necessary to fully pay off such lease or financing over its term.

ARTICLE 5

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT

          At
or prior to the Closing, Seller shall terminate any Existing Management
Agreement and the Existing Franchise Agreement and Seller shall be solely responsible
for all claims and liabilities arising thereunder on, prior to or following the
Closing Date. As a condition to Closing, Buyer shall enter into the Franchise
Agreement, effective as of the Closing Date, containing terms and conditions
acceptable to Buyer (including, without limitation, such terms and conditions
as may be required to accommodate Buyer’s and/or Buyer’s Affiliates’ REIT
structure). Seller shall be responsible for paying all costs related to the
termination of the Existing Management Agreement and shall indemnify and hold
Buyer harmless from and against any and all claims from any persons claiming
under any management agreement other than the management agreement entered into
between Buyer and Manager. Seller shall be responsible for paying all
reasonable and actual costs of the Franchisor related to the termination of the
Existing Franchise Agreement including, without limitation, any key money or
other development incentives. Seller shall negotiate a one-time free right of
transfer in the Existing Franchise Agreement which shall permit Buyer to obtain
a new Franchise Agreement at no cost to Buyer (other than Buyer’s costs of
review). In the event Seller is unable to secure this one-time free right of
transfer, Seller shall reimburse Buyer at Closing for any franchise/application
fees imposed by Franchisor on Buyer. Seller shall use best efforts to promptly
provide all information required by the Franchisor in connection with the New
Franchise Agreement, and Seller and Buyer shall diligently pursue obtaining
each the same. 

ARTICLE 6

BROKERS

          Seller
and Buyer each represents and warrants to the other that, except for Hotel
Assets Group, for whom Seller shall be solely responsible for its compensation
pursuant to a separate agreement between Seller and Hotel Assets Group, it has
not engaged any broker, finder or other 

12

party in
connection with the transaction contemplated by this Contract. Buyer and
Sellers each agree to save and hold the other harmless from any and all losses,
damages, liabilities, costs and expenses (including, without limitation,
attorneys’ fees) involving claims made by any other agent, broker, or other
person by or through the acts of Buyer or Sellers, respectively, in connection
with this transaction.

ARTICLE 7

REPRESENTATIONS, WARRANTIES AND COVENANTS

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

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

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

                              (c)
Bankruptcy. None of Seller, or, to Seller’s knowledge, any of its or
their partners or members, is insolvent or the subject of any bankruptcy
proceeding, receivership proceeding or other insolvency, dissolution,
reorganization or similar proceeding.

                              (d)
Property Agreements. The assets constituting the Property to be conveyed
to Buyer hereunder shall constitute all of the property and assets to be used
in connection with the operation and business of the Hotel. There are no, and
as of the Closing there shall be no, leases, license agreements, leasing
agent’s agreements, equipment leases, building service agreements, maintenance
contracts, suppliers contracts, warranty contracts, operating agreements, or
other agreements (i) to which Seller is a party or an assignee, or (ii) binding
upon the Property, relating to the ownership, occupancy, operation, management
or maintenance of the Real Property, FF&E, Supplies or Tradenames, except
for those Service Contracts, Leases, Warranties and FF&E Leases to which
Seller becomes a party with the approval of Buyer or which Buyer may enter into
before the Closing. As of the Closing, any Service Contracts, Leases,
Warranties and FF&E Leases to which Seller has become a party with the
approval of Buyer shall be in full force and effect, and no default shall have
occurred and be continuing thereunder and no circumstances shall exist which,
with the giving of notice, the lapse 

13

of time or
both, would constitute such a default. No party has, and as of the Closing no
party shall have, any right or option to acquire the Property or any portion
thereof, other than Buyer.

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

                              (f)
Environmental. With respect to environmental matters, to Seller’s
knowledge and except as otherwise disclosed in the environmental reports and
documents identified in Exhibit E, (i) there has been no Release or
threat of Release of Hazardous Materials in, on, under, to, from or in the area
of the Real Property, except as disclosed in the reports and documents set
forth on Exhibit E attached hereto and incorporated herein by reference,
(ii) no portion of the Property is being used for the treatment, storage,
disposal or other handling of Hazardous Materials or machinery containing
Hazardous Materials other than standard amounts of cleaning supplies and
chlorine for the swimming pool, all of which are stored on the Property in
strict accordance with applicable Environmental Requirements and do not exceed
limits permitted under applicable laws, including without limitation
Environmental Requirements, (iii) no underground storage tanks are currently
located on or in the Real Property or any portion thereof, (iv) no
environmental investigation, administrative order, notification, consent order,
litigation, claim, judgment or settlement with respect to the Property or any
portion thereof is pending or threatened in writing, (v) there is not currently
and, to Seller’s actual knowledge, never has been any mold, fungal or other
microbial growth in or on the Real Property, or existing conditions within
buildings, structures or mechanical equipment serving such buildings or
structures, that could reasonably be expected to result in material liability
or material costs or expenses to remediate the mold, fungal or microbial
growth, or to remedy such conditions that could reasonably be expected to
result in such growth, and (vi) except as disclosed on Exhibit E, there
are no reports or other documentation regarding the environmental condition of
the Real Property in the possession of Seller or Seller’s Affiliates,
consultants, contractors or agents. As used in this Contract: “Hazardous
Materials” means (1) “hazardous wastes” as defined by the
Resource Conservation and Recovery Act of 1976, as amended from time to time
(“RCRA”), (2) “hazardous substances” as defined by the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601 et
seq.), as amended by the Superfund Amendment and Reauthorization Act of
1986 and as otherwise amended from time to time 

14

(“CERCLA”);
(3) “toxic substances” as defined by the Toxic Substances Control Act, as
amended from time to time (“TSCA”), (4) “hazardous materials” as
defined by the Hazardous Materials Transportation Act, as amended from time to
time (“HMTA”),
(5) asbestos, oil or other petroleum products, radioactive materials, urea
formaldehyde foam insulation, radon gas and transformers or other equipment
that contains dielectric fluid containing polychlorinated biphenyls and (6) any
substance whose presence is detrimental or hazardous to health or the
environment, including, without limitation, microbial or fungal matter or mold,
or is otherwise regulated by federal, state and local environmental laws
(including, without limitation, RCRA, CERCLA, TSCA, HMTA), rules, regulations
and orders, regulating, relating to or imposing liability or standards of
conduct concerning any Hazardous Materials or environmental, health or safety
compliance (collectively, “Environmental Requirements”). As used
in this Contract: “Release” means spilling, leaking,
pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping or disposing.

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

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

                              (i)
Licenses, Permits and Approvals. Seller has not received any written
notice, and Seller has no knowledge that the Property fails to materially
comply with all applicable licenses, permits and approvals and federal, state
or local statutes, laws, ordinances, rules, regulations, requirements and codes
including, without limitation, those regarding zoning, land use, building fire,
health, safety, environmental, subdivision, water quality, sanitation controls
and the Americans with Disabilities Act, and similar rules and regulations
relating and/or applicable to the ownership, use and operation of the Property
as it is now operated. Seller has received or will, prior to Closing receive,
all licenses, permits and approvals required or needed for the lawful conduct,
occupancy and operation of the business of the Hotel, and each license and
permit is or will be in full force and effect, and will be received and in full
force and effect as of the Closing. Subject to Section 8.10 below, no licenses,
permits or approvals necessary for the lawful conduct, occupancy or operation
of the business of the Hotel, to Seller’s knowledge requires any approval of a
governmental authority for transfer of the Property.

                              (j)
Financial Statements. Seller has delivered copies for the two (2) years
prior and the current year to date, of any (i) Financial Statements for the
Hotel, (ii) operating statements prepared by the Existing Manager for the
Hotel, and (iii) monthly financial statements prepared by the Existing Manager
for the Hotel, if applicable (“Audits”). Each of such statements, if available,
is to Seller’s knowledge, complete and accurate in all material 

15

respects and,
except in the case of budgets prepared in advance of the applicable operating
period to which such budgets relate, fairly presents the results of operations
of the Hotel for the respective periods represented thereby. Seller has relied
upon the Financial Statements and Audits in connection with its ownership and
operation of the Hotel, and there are no other independent audits or financial
statements prepared by third parties relating to the operation of the Hotel
other than the Financial Statements and Audits prepared by or on behalf of the
Existing Manager, all of which have been provided to Buyer.

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

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

                              (m)
Existing Management and Franchise Agreements. Seller has furnished to
Buyer true and complete copies of the Existing Management Agreement and the
Existing Franchise Agreement, which constitutes the entire agreement of the
parties with respect to the subject matter thereof and which have not been
amended or supplemented in any respect. There are no other management
agreements, franchise agreements, license agreements or similar agreements for
the operation or management of the Hotel or relating to the Brand, to which
Seller is a party or which are binding upon the Property, except for any
Existing Management Agreement and the Existing Franchise Agreement. The
Improvements comply with, and the Hotel is being operated in accordance with,
all requirements of the Existing Franchise Agreement and all other requirements
of the Franchisor, including all “brand standard” requirements of the Franchisor.
The Existing Franchise Agreement is in full force and effect, and shall remain
in full force and effect until the termination of the Existing Franchise
Agreement at Closing, as provided in Article V hereof. No default has occurred
and is continuing under any Existing Management Agreement or the Existing
Franchise Agreement, and no circumstances exist which, with the giving of
notice, the lapse of time or both, would constitute such a default.

                              (n)
Architect and Contractor. The Franchisor has approved the Architect to
design the Hotel and the Contractor to serve as the general contractor for the
construction of the Hotel.

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

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

16

performance by
Buyer of this Contract, and this Contract is hereby binding and enforceable
against Buyer.

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

          7.3
Survival. All of the representations and warranties are true, correct
and complete in all material respects as of the date hereof and the statements
set forth therein (without qualification or limitation as to a party’s
knowledge thereof except as expressly provided for in this Article VII) shall
be true, correct and complete in all material respects as of the Closing Date.
All of the representations and warranties made herein shall survive Closing for
a period of one (1) year and shall not be deemed to merge into or be waived by
any Seller’s Deed or any other closing documents.

ARTICLE 8

ADDITIONAL COVENANTS

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

          8.2
Construction of Hotel. Subject to the terms and
conditions of this Contract, Seller shall (i) construct the Hotel on the Land
(a) in a good, workmanlike and diligent manner, (b) in accordance with development
standards for comparable projects, (c) in compliance in all material respects
with the Plans and Specifications approved by Franchisor and with all Legal
Requirements and (d) in accordance with all requirements of the Franchise
Agreement and (ii) cause the Hotel to be fully equipped with the FF&E and
otherwise fully furnished and stocked with merchandise, supplies, inventory and
other Personal Property as required by the Franchise Agreement, including,
without limitation, linens, bath towels and other supplies at least at a 2-par
level for all suites or rooms of the Hotel, in each case such that the Hotel
can be opened for business to the public and operated to full capacity under
the Brand. All expenses of constructing, equipping and furnishing the Hotel in
accordance with this Contract shall be the sole responsibility of Seller, and
Buyer shall have no obligation whatsoever to adjust the Purchase Price or pay
any additional costs as a result of unforeseen events or circumstances
affecting the cost of constructing, equipping or furnishing the Hotel.

          8.3
Plans and Specifications. Seller represents and
warrants to Buyer that (i) the plans and specifications that Seller has
delivered to Buyer for its review before the date of this Contract and/or
during the Review Period are and shall be a true and complete copy of the plans
and specifications for the construction of the Hotel, (ii) such plans and
specifications have not been amended or supplemented in any material respect
and (iii) such plans and specifications have been prepared by or otherwise
approved by the Franchisor. Seller shall obtain the approval of the Franchisor
and Buyer with respect to all material changes to such plans and specifications
after the date hereof. Such plans and specifications and all revisions thereto,
as approved by the 

17

the Franchisor
and Buyer, shall constitute the “Plans and Specifications” for purposes of this
Contract.

          8.4
Commencement of Construction; Substantial Completion. Upon the closing of
Seller’s construction financing, Seller and Buyer shall determine the
commencement date for construction of the Hotel (the “Construction Commencement
Date”) which Construction Commencement Date shall be not later than thirty (30)
days after Seller’s construction financing closing. Seller and Buyer shall
document the Construction Commencement Date by executing a Construction
Commencement Certificate and such Construction Commencement Certificate shall
be attached to and its terms shall be incorporated into this Agreement. Seller
shall thereafter diligently pursue construction of the Hotel in accordance with
this Contract and shall cause the Contractor to Substantially Complete the
Hotel no later than twenty-four (24) months after the Construction Commencement
Date (the “Scheduled Completion Date”), subject only to delays caused by Force
Majeure. Seller shall promptly notify Buyer of each event or condition of Force
Majeure and the anticipated delay caused thereby. Notwithstanding anything
contained in this Contract to the contrary, including, without limitation,
Section 14.2 below (unless Seller’s breach results in a delay in the
construction of the Hotel), in the event of any delay of the Substantial
Completion Date beyond the Scheduled Completion Date (other than resulting from
Force Majeure of which Seller previously notified Buyer), Seller shall pay
Buyer delay damages in the amount of $20,000.00 for each full week (which
amount shall be prorated for periods shorter than one week) following the Scheduled
Completion Date until the Hotel is Substantially Complete.

          8.5
Inspections. Buyer shall have the
right to inspect the Property to monitor and observe the development and
construction of the Hotel. All such inspections shall require reasonable prior
notice to Seller and shall be conducted in a manner that will minimize any
interference with the development and construction of the Hotel. Buyer shall
indemnify, defend and hold Seller harmless from and against any and all
expenses, costs and liabilities (including but not limited to reasonable
attorneys’ fees) for damage or injury to persons or property arising out of or
relating to its entry onto the Land for any such inspections.

          8.6
Punch List. Upon notification from the
Contractor that the Hotel is Substantially Completed and ready for inspection,
Seller shall prepare a “punch list” with the assistance of the Architect and
the Franchisor. Seller acknowledges that final acceptance of the work on the
Hotel shall be made only with the approval of Buyer and the Franchisor. The
costs of completing the Punch List Items that are not completed as of the date
of Closing, as reasonably estimated by the Seller with the approval of Buyer,
such approval not to be unreasonably withheld, plus twenty-five percent (25%)
of such costs, shall be retained by the Title Company from the Purchase Price
and shall be disbursed to Seller only upon Buyer’s reasonable determination
that all of the Punch List Items have been satisfactorily completed. Seller
shall correct or complete all Punch List Items, or cause the same to be
corrected or completed, at Seller’s expense, with all diligence and in any
event within sixty (60) days after Substantial Completion of the Hotel;
provided, however, if such Punch List Items can not reasonably be completed
within such sixty (60) day period, and Seller is diligently pursuing completion
of such Punch List Items during such sixty (60) day period, then Seller shall
have an additional thirty (30) day period to complete the Punch List Items.

          8.7
Pre-Opening Program. It is contemplated that
certain activities must be undertaken prior to the Closing Date so that the
Hotel can function in an orderly and businesslike manner at the 

18

Effective Time
(“Pre-Opening Program”), which Pre-Opening Program shall be developed by Buyer
and Buyer’s proposed manager. Seller shall cooperate in good faith with and be
responsible for the costs of the Pre-Opening Program and shall provide the
Franchisor and Buyer reasonable access to the Property at least sixty (60) days
in advance of the Closing in order to conduct their activities related to the
Pre-Opening Program; provided that the Pre-Opening Program shall not be
permitted to interfere with or delay the activities of Seller in completing the
Hotel. Seller shall pay in a timely manner all costs associated with the
Pre-Opening Program or otherwise related to the pre-opening operations of the
Property up to but not including the Effective Time, regardless of when such costs
are payable (the “Pre-Opening Costs”).

          The
Pre-Opening Program shall consist of the following:

                    a)
Completion of Marriott Database not less than ninety (90) days prior to the
Effective Time;

                    b)
Completion of website;

                    c)
Fully staff Hotel team; 

                    d)
Completion of Request For Proposal based on availability for following year;
and

                    e)
Order all supplies to open Hotel.

          8.8
Construction Warranty. At the Closing, Seller
shall assign to Buyer all construction warranties with respect to the Hotel,
which assignment shall be in form and substance reasonably satisfactory to
Buyer, including a warranty by the Contractor, for the period ending not sooner
than one (1) year after the date the Hotel is Substantially Completed, in the
form of the warranty attached hereto as Exhibit H (the “Construction
Warranty”).

          8.9
Other Obligations of Seller Before Closing. From and after the date
hereof through the Closing on the Property Seller shall comply with the
Existing Management Agreement and the Existing Franchise Agreement and keep the
same in full force and effect and shall perform and comply with all of the
following subject to and in accordance with the terms of such agreements:

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

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

                              (c)
Pay or cause to be paid all taxes, assessments and other impositions levied or
assessed on the Property or any part thereof prior to the delinquency date, 

19

and comply
with all federal, state, and municipal laws, ordinances, regulations and orders
relating to the Property;

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

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

                              (f)
Seller shall not, without first obtaining the written approval of Buyer, which
approval shall not be unreasonably withheld, enter into any FF&E Leases,
Service Contracts, Leases or other contracts or agreements related to the
Hotel, or extend any existing such agreements, unless such agreements (x) can
be terminated, without penalty, upon thirty (30) days’ prior notice or (y) will
expire prior to the Closing Date.

          8.10
Third Party Consents. Prior to the Closing
Date, Seller shall, at its expense, (i) obtain any and all third party consents
and approvals (x) required in order to transfer the Hotel to Buyer, or (y)
which, if not obtained, would materially adversely affect the operation of the
Hotel and (ii) use best efforts to obtain all other third party consents and
approvals (all of such consents and approvals in (i) and (ii) above being referred
to collectively as, the “Third Party Consents”).

          8.11
Access to Financial Information. Buyer’s representatives
shall have access to, and Seller and its affiliates shall cooperate with Buyer
and furnish upon request, all financial and other information relating to the
Hotel’s operations to the extent available and necessary to enable Buyer’s
representatives to prepare audited financial statements in conformity with
Regulation S-X of the Securities and Exchange Commission (the “SEC”)
and other applicable rules and regulations of the SEC and to enable them to
prepare a registration statement, report or disclosure statement for filing
with the SEC on behalf of Buyer or its Affiliates, whether before or after
Closing and regardless of whether such information is included in the Records
to be transferred to Buyer hereunder. Seller shall also provide to Buyer’s
representative a signed representation letter in form and substance reasonably
acceptable to Seller sufficient to enable an independent public accountant to
render an opinion on the financial statements related to the Hotel. Buyer will
reimburse Seller for costs reasonably incurred by Seller to comply with the
requirements of the preceding sentence to the extent that Seller is required to
incur costs not in the ordinary course of business for third parties to provide
such representation letter. The provisions of this Section shall survive
Closing or termination of this Contract.

          8.12
Bulk Sales. At Seller’s risk and
expense, Seller shall take all steps necessary to comply with the requirements
of a transferor under all bulk transfer laws, if any, that are applicable to
the transactions contemplated by this Contract.

          8.13
Indemnification. If the transactions contemplated
by this Contract are consummated as provided herein:

20

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

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

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

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

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

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

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

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

                                        (ii)
the conduct and operation by Buyer of its business at the Hotel after the
Closing; and

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

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

21

                                        (i)
The party seeking indemnification (the “Indemnified Party”) shall give prompt
written notice to the party or parties from which it is seeking indemnification
(the “Indemnifying Party”) of any assertion of liability by a third party which
might give rise to a claim for indemnification based on the foregoing
provisions of this Section 8.13, which notice shall state the nature and basis
of the assertion and the amount thereof, to the extent known; provided,
however, that no delay on the part of the Indemnified Party in giving notice
shall relieve the Indemnifying Party of any obligation to indemnify unless (and
then solely to the extent that) the Indemnifying Party is prejudiced by such
delay.

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

                                        (iii)
Notwithstanding the provisions of the previous subsection of this Contract,
until the Indemnifying Party shall have assumed the defense of the Legal
Action, the defense shall be handled by the Indemnified Party. Furthermore, (x)
if the Indemnified Party shall have reasonably concluded that there are likely
to be defenses available to it that are different from or in addition to those
available to the Indemnifying Party; (y) if the Legal Action involves other
than money damages and seeks injunctive or other equitable relief; or (z) if a
judgment against Buyer, as the Indemnified Party, in the Legal Action will, in
the good faith opinion of Buyer, establish a custom or precedent which will be
adverse to the best interest of the continuing business of the Hotel, the
Indemnifying Party, shall not be entitled to assume the defense of the Legal
Action and the defense shall be handled by the Indemnified Party, provided
that, in the case of clause (z), the Indemnifying Party shall have the right to
approve legal counsel selected by the Indemnified Party, such approval not to
be unreasonably withheld, delayed or conditioned. If the defense of the Legal
Action is handled by the Indemnified Party under the provisions of this
subsection, the Indemnifying Party shall pay all legal and other expenses
reasonably incurred by the Indemnified Party in conducting such defense.

                                        (iv)
In any Legal Action initiated by a third party and defended by the Indemnified
Party (w) the Indemnified Party shall have the right to be represented by
advisory counsel and accountants, at its own expense, (x) the Indemnifying
Party shall keep the Indemnified Party fully informed as to the status of such
Legal Action at all stages thereof, whether or not the Indemnified Party is
represented by its own counsel, (y) the Indemnifying Party shall make available
to the Indemnified Party and its attorneys, accounts and other 

22

representatives,
all books and records of Seller relating to such Legal Action and (z) the
parties shall render to each other such assistance as may be reasonably required
in order to ensure the proper and adequate defense of such Legal Action.

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

          8.14
Escrow Funds. To provide for the
timely payment of any post-closing claims by Buyer against Seller hereunder, at
Closing, the Seller shall deposit an amount equal to Three Hundred Thousand and
No/100 Dollars ($300,000.00) (the “Escrow Funds”) shall be withheld from
the Purchase Price payable to a Seller and shall be deposited for a period of
nine (9) months in an escrow account with the Title Company pursuant to an
escrow agreement reasonably satisfactory in form and substance to Buyer and
Seller (the “Post-Closing Agreement”), which escrow and Post-Closing
Agreement shall be established and entered into at Closing and shall be a
condition to Buyer’s obligations under this Contract. If no claims have been
asserted by Buyer against Seller, or all such claims have been satisfied,
within such nine month period, the Escrow Funds deposited by the Seller shall
be released to the Seller.

          8.15
Liquor License. If required by the
Franchisor, the Manager or an Affiliate thereof approved by Buyer, shall have
or shall have obtained all liquor licenses and alcoholic beverage licenses or
banquet licenses, as appropriate and necessary or desirable to operate any
restaurants, bars and lounges to be located within the Hotel (collectively, the
“Liquor
Licenses”) and, in the case of an Affiliate of the Manager, the
Hotel shall have the right to use such Liquor License, (ii) if permitted under
the laws of the jurisdiction in which the Hotel is located, to the extent
practicable the Manager shall execute and file any and all necessary forms,
applications and other documents (and Seller and Buyer shall cooperate with the
Manager in filing such forms, applications and other documents) with the
appropriate liquor and alcoholic beverage authorities prior to Closing so that
the Liquor Licenses remain in full force and effect upon completion of Closing.

          8.16
Mechanics’ Lien Protection. As further inducement
for Buyer’s entering into this Contract and as a condition to Buyer’s
obligation to close hereunder, Seller shall provide all information necessary
for the Title Company to issue to Buyer at Closing a title policy that
affirmatively insures Buyer against materialmen, mechanics, contractors and
vendor liens, including, but not limited to, a list of all vendors and
contractors providing goods and services in connection with the construction of
the Hotel, a list of all amounts paid and amounts due such vendors and
contractors, lien waivers from the General Contractor and all subcontractors and
indemnity agreements as may be required by the Title Company.

ARTICLE 9

CONDITIONS FOR CLOSING

23

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

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

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

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

                              (d)
All Liquor Licenses shall be in full force and effect and shall remain in full
force and effect following the Closing and shall have been or shall be
transferred to, or new Liquor Licenses shall be issued to, Manager or an
Affiliate thereof approved by Buyer at or as of Closing, and Buyer shall have
received satisfactory evidence thereof. If necessary, the Existing Manager
shall remain in a temporary and limited capacity until the Liquor License can
be transferred, or a new Liquor License can be issued to the Manager or an
Affiliate.

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

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

                              (g)
The Hotel shall be Substantially Completed.

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

24

                              (i)
The Franchisor shall have executed and delivered the Franchise Agreement upon
terms and conditions acceptable to Buyer in its sole and absolute discretion;
provided, however, such contingency is conditioned upon Buyer providing Seller
with evidence of Buyer’s submission of a franchise application to Franchisor
not later than ninety (90) days prior to Closing.

                              (j)
Buyer shall have obtained an as-built plat of survey of the Property completed,
dated within 30 days of the Closing Date and prepared in compliance with the
then-current ALTA/ACSM standards for urban properties, and such plat of survey
shall not disclose any encroachments, boundary line discrepancies or other
survey matters that, in Buyer’s reasonable judgment, would materially adversely
affect the use, operation of value of the Property.

                              (k)
Buyer shall have obtained an ALTA owner’s title insurance policy (or, if an
ALTA form of policy is not customarily issued in the state in which the Real
Property is located, in the form customarily issued in such state), issued by
the Title Company pursuant to the Title Commitment, insuring Buyer’s fee simple
ownership in the Real Property (i) with an effective date as of the Closing
Date, (ii) with no exceptions for filed or unfiled mechanics’ and materialmen’s
liens, (iii) with no exceptions for encroachments or other matters of survey
unless approved by Buyer and (iv) with no other exceptions to title other than
the Permitted Exceptions.

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

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

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

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

25

                              (d)
Within sixty (60) days after the date of this Contract, Seller shall have
received a commitment for financing of the construction of the Hotel, which
commitment shall be acceptable to Seller in its sole but reasonable discretion.
In the event this condition is not satisfied, either Seller or Buyer may
terminate this Contract, or with written notice to Buyer, Seller may extend
such sixty (60) day period by an additional thirty (30) day period for purposes
of obtaining such a commitment. Seller shall provide Buyer with written notice
on or before the expiration of such 60-day period indicating whether Buyer has
obtained such commitment for financing.

ARTICLE 10

CLOSING AND CONVEYANCE

          10.1
Closing. Unless otherwise agreed
by Buyer and Seller, the Closing on the Property shall occur on the date on
which the Hotel opens for business to the public in accordance with the
Franchise Agreement, or as soon as practical thereafter, but in no event later
than fifteen (15) business days after Substantial Completion of the Hotel,
provided that all conditions to Closing by Buyer hereunder have been satisfied.
Buyer will provide Seller at least five (5) days prior written notice of the
Closing Date selected by Buyer. The date on which the Closing is to occur as
provided in this Section 10.1, or such other date as may be agreed upon by
Buyer and Seller, is referred to in this Contract as the “Closing Date” for the
Property. The Closing shall be held at 10:00 a.m. at the offices of the Title
Company, or as otherwise determined by Buyer and Seller. Regardless of the
Closing Date, the Closing shall be effective as of 12:01 a.m. on the date which
is the later of (i) the Substantial Completion Date or (ii) the date on which
the Hotel opens for business to the public in accordance with the Franchise
Agreement (the “Effective Time”).

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

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

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

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

                              (d)
General Assignments. Assignments of all of Seller’s right, title and
interest in and to all FF&E Leases, Service Contracts and Leases identified
on Exhibit C hereto (the “Hotel Contracts”). The assignment shall
also be a general assignment and shall 

26

provide for
the assignment of all of Seller’s right, title and interest in all Records,
Warranties, Licenses, Tradenames, Contracts, Plans and Specs and all other
intangible Personal Property applicable to the Hotel.

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

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

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

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

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

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

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

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

27

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

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

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

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

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

ARTICLE 11

COSTS

          All
Closing costs shall be paid as set forth below:

          11.1
Seller’s Costs. In connection with the
sale of the Property contemplated under this Contract, Seller shall be
responsible for all transfer and recordation taxes, including, without
limitation, all transfer, sales, use and bulk transfer taxes or like taxes on
or in connection with the transfer of the Real Property and the Personal
Property constituting part of the Property pursuant to the Bill of Sale, in
each case except as otherwise provided in Section 12, and all accrued taxes of
Seller prior to Closing and income, sales and use taxes and other such taxes of
Seller attributable to the sale of the Property to Buyer. Seller shall be
responsible for all costs related to the termination of any existing management
agreement and the Existing Franchise Agreement as provided in Article V. Seller
shall also be responsible for any fees for the performance of the property
improvement plan review and report by the Franchisor, as well as costs and
expenses of its attorneys, accountants, appraisers and other professionals,
consultants and representatives. Seller shall also be responsible for payment
of all prepayment penalties and other amounts payable in connection with the
pay-off of any liens and/or indebtedness encumbering the Property. Seller shall
also be responsible for all Pre-Opening Costs to the extent provided in Section
8.7. Seller shall pay the sales/use taxes attributed to the transfer of the
personal property.

          11.2
Buyer’s Costs. In connection with the
purchase of the Property contemplated under this Contract, Buyer shall be
responsible for the costs and expenses of its attorneys, accountants and other
professionals, consultants and representatives. Buyer shall also be responsible
for the costs and expenses in connection with the preparation of any
environmental report, any update to the survey and the costs and expenses of
preparation of the title insurance 

28

commitment and
the issuance of the title insurance policy contemplated by Article IV and the
per page recording charges for the Deed (if applicable).

ARTICLE 12

ADJUSTMENTS

          12.1
Adjustments. Unless otherwise
provided herein, at Closing, adjustments between the parties of the income and
expenses related to the Property shall be made as of the Effective Time, all as
set forth below. All of such adjustments and allocations shall be made in cash
at Closing and shall be collected through and/or adjusted in accordance with
the terms of the Existing Management Agreement. Except as otherwise expressly
provided herein, all apportionments and adjustments shall be made on an accrual
basis in accordance with generally accepted accounting principles.

                              (a)
Taxes. All real estate taxes, personal property taxes, or any other
taxes and special assessments (special or otherwise) of any nature upon the
Property levied, assessed or pending for the calendar year in which the Closing
occurs (including the period prior to Closing, regardless of when due and
payable) shall be prorated as of the Effective Time and, if no tax bills or
assessment statements for such calendar year are available, such amounts shall
be estimated on the basis of the best available information for such taxes and
assessments that will be due and payable on the Hotel for the calendar year in
which Closing occurs.

                              (b)
Utilities. All suppliers of utilities shall be instructed to read meters
or otherwise determine the charges owing as of the Effective Time for services
prior thereto, which charges shall be allocated to Seller. Charges accruing
after the Effective Time shall be allocated to Buyer. If elected by Seller,
Seller shall be given credit, and Buyer shall be charged, for any utility
deposits transferred to and received by Buyer at Closing.

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

                              (d)
Accounts. Petty cash, cash in cash registers and cash in vending
machines but excluding amounts held in tax and insurance escrow accounts and
utility deposits (to the extent excluded from the definition of Deposits) held
by or on behalf of Seller, the Manager or the Franchisor with respect to the
Hotel shall become the property of Buyer at Closing without Buyer being
required to fund the same.

                              (e)
Advance Deposits, etc. All income generated by the Hotel, including
receipts from pre-paid guest room or suite rentals, all prepaid rentals, room
rental deposits, and all other deposits for advance registration, banquets or
services, if paid during the period before the Effective Time and applicable to
the period after the Effective Time, shall be credited to Buyer.

                              (f)
Other Costs. All other costs attributable to the period before the
Effective Time, including the cost of property and liability insurance and all
Pre-Opening Costs, 

29

shall be
allocated to Seller (subject to the limitations provided in Section 8.7), and
all costs attributable to the period after the Effective Time shall be
allocated to Buyer.

          12.2
Reconciliation and Final Payment. Seller and Buyer shall
reasonably cooperate after Closing to make a final determination of the
allocations and prorations required under this Contract within one hundred
eighty (180) days after the Closing Date. Upon the final reconciliation of the
allocations and prorations under this Section, the party which owes the other
party any sums hereunder shall pay such party such sums within ten (10) days
after the reconciliation of such sums. The obligations to calculate such
prorations, make such reconciliations and pay any such sums shall survive the Closing.

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

ARTICLE 13

CASUALTY AND CONDEMNATION

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

          13.2
Buyer’s Termination Right. If, prior to Closing and
the delivery of possession of the Property to Buyer in accordance with this
Contract, (a) any condemnation proceeding shall be pending against a
substantial portion of the Hotel or (b) there is any substantial casualty loss 

30

or damage to
the Hotel, Buyer shall have the option to terminate this Contract, provided
Buyer delivers written notice to Seller of its election within twenty (20) days
after the date Seller has delivered Buyer written notice of any such loss,
damage or condemnation as provided above, and in such event, the Earnest Money
Deposit, and any interest thereon, shall be delivered to Buyer and thereafter,
except as expressly set forth herein, no party shall have any further
obligation or liability to the other under this Contract. In the context of
condemnation, “substantial” shall mean condemnation of such portion of the
Hotel (or access thereto) as could, in Buyer’s reasonable judgment, render use
of the remainder impractical or unfeasible for the uses herein contemplated,
and, in the context of casualty loss or damage, “substantial” shall mean a loss
or damage in excess of Two Hundred Fifty Thousand and No/100 Dollars
($250,000.00) in value.

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

ARTICLE 14

DEFAULT REMEDIES

          14.1
Buyer Default. If Buyer defaults under
this Contract after the Review Period, and such default continues for thirty
(30) days following written notice from Seller (provided no notice shall extend
the time for Closing), then at Seller’s election by written notice to Buyer,
this Contract shall be terminated and of no effect, in which event the Earnest
Money Deposit, including any interest thereon, shall be paid to and retained by
the Seller as Seller’s sole and exclusive remedy hereunder, and as liquidated
damages for Buyer’s default or failure to close, and both Buyer and Seller
shall thereupon be released from all obligations hereunder.

          14.2
Seller Default. If Seller defaults under
this Contract, and such default continues for thirty (30) days following
written notice from Buyer, Buyer may elect, as Buyer’s sole and exclusive
remedy, either (i) to terminate this Contract by written notice to Seller
delivered to Seller at any time prior to the completion of such cure, in which
event the Earnest Money Deposit, including any interest thereon, shall be
returned to the Buyer, Seller shall reimburse Buyer for its out of pocket due
diligence costs (not to exceed $55,000) and thereafter both the Buyer and
Seller shall thereupon be released from all obligations with respect to this
Contract, except as otherwise expressly provided herein; or (ii) to treat this
Contract as being in full force and effect by written notice to Seller
delivered to Seller at any time prior to the completion of such cure, in which
event the Buyer shall have the right to an action against Seller for specific
performance.

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

31

in enforcing
such rights, then the defaulting party shall reimburse the non-defaulting party
for the non-defaulting party’s reasonable attorneys’ fees, costs and expenses.

ARTICLE 15

NOTICES

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

	
  

 	
  

 	
  

 
	
  

 	
 If to Buyer:

 	
 Apple Ten
 Hospitality Ownership, Inc.

 814 E. Main Street

 Richmond, Virginia 23219

 Attention: Nelson Knight

 Fax No.: (804) 344-8129

 Email: nknight@applereit.com

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
 Apple REIT
 Ten, Inc.

 814 E. Main Street

 Richmond, Virginia 23219

 Attention: Legal Dept.

 Fax No.: (804) 344-8129

 Email: dbuckley@applereit.com

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Seller:

 	
 Grapevine
 Equity Partners, LLC

 1135 Kinwest Parkway, Ste. 150

 Irving, Texas 75063

 Attention: Mehul Patel

 Fax No. (214) 260-3724

 Email: mike@sagestar.net

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
 Stites &
 Harbison, PLLC

 400 West Market Street, Suite 1800

 Louisville, KY 40202

 Attention: Jamie L. Cox, Esq.

 Fax No. (502) 779-8285

 Email: jcox@stites.com

 

32

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

ARTICLE 16

MISCELLANEOUS

          16.1
Performance. Time is of the essence in the performance and satisfaction
of each and every obligation and condition of this Contract. 

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

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

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

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

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

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

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

          16.9
Severability. If any provision of this Contract shall, for any reason,
be adjudged by any court of competent jurisdiction to be invalid or
unenforceable, such judgment shall not 

33

affect, impair
or invalidate the remainder of this Contract but shall be confined in its
operation to the provision or provisions hereof directly involved in the
controversy in which such judgment shall have been rendered, and this Contract
shall be construed as if such provision had never existed, unless such
construction would operate as an undue hardship on Seller or Buyer or would
constitute a substantial deviation from the general intent of the parties as
reflected in this Contract. 

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

          16.11
(Intentionally Omitted). 

          16.12
Further Acts. In addition to the acts, deeds, instruments and agreements
recited herein and contemplated to be performed, executed and delivered by
Buyer and Seller, Buyer and Seller shall perform, execute and deliver or cause
to be performed, executed and delivered at the Closing or after the Closing,
any and all further acts, deeds, instruments and agreements and provide such
further assurances as the other party or the Title Company may reasonably
require to consummate the transaction contemplated hereunder. 

          16.13
Joint and Several Obligations. If Seller consists of more than one
person or entity, each such person or entity shall be jointly and severally
liable with respect to the obligations of Seller under this Contract. 

          16.14
Notice of Proposed Listing. In the event that the sale of the Property
contemplated by this Contract is consummated, if at any time during the five
(5) year period commencing on the date of execution of this Contract by Buyer
and Seller, Seller or any of its Affiliates propose to list for sale any hotel
property or properties owned, acquired, constructed or developed by Sellers or
their Affiliates and located within a ten (10)-mile radius of any Hotel (any
such other hotel property being referred to as an “Other Property”),
Sellers shall promptly deliver to Buyer written notice thereof and Buyer shall
have the right to see and participate in the offering and/or otherwise make an
offer to purchase any such Other Property. 

[Signatures Begin on Following Page]

34

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC.,
a Virginia corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ David
 Buckley

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: David
 Buckley

 
	
  

 	
 Title: Vice
 President

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 
	
  

 	
 GRAPEVINE
 EQUITY PARTNERS, LLC,
a Texas limited liability company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Mehul
 Patel

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: Mehul
 Patel

 
	
  

 	
 Title:
 Member

 

35

EXHIBIT “A”

LEGAL DESCRIPTION OF LAND

EXHIBIT C

LIST OF HOTEL CONTRACTS

EXHIBIT C-1 -
Seller’s Hotel Contracts 

To be provided
by Seller and approved by Buyer during the Review Period

EXHIBIT C-2 - Other
Hotel Contracts 

To be provided
by Seller and approved by Buyer during the Review Period 

EXHIBIT D

CONSENTS AND APPROVALS

          A.
Consents Under Hotel Contracts 

To be provided
by Seller and approved by Buyer during the Review Period 

          B.
Consents Under Other Contracts 

To be provided
by Seller and approved by Buyer during the Review Period 

          C.
Governmental Approvals and Consents 

To be provided
by Seller and approved by Buyer during the Review Period 

EXHIBIT E

ENVIRONMENTAL REPORTS

To be provided by Seller and approved by
Buyer during the Review Period

EXHIBIT F

CLAIMS OR LITIGATION PENDING

To be provided by Seller and approved by
Buyer during the Review Period

EXHIBIT G

ESCROW AGREEMENT

          THIS
ESCROW AGREEMENT (this “Agreement”)
made the ___ day of _______, 2011 by and among GRAPEVINE EQUITY PARTNERS, LLC,
a Texas limited liability company (“Seller”),
APPLE TEN HOSPITALITY OWNERSHIP, INC. a Virginia corporation, or its assigns (“Buyer”), and CHICAGO TITLE COMPANY
(“Escrow Agent”). 

R E C I T A L S

          WHEREAS,
pursuant to the provisions of Section 2.5 of that certain Purchase Contract
dated November ___, 2011 (the “Contract”) between Seller and Buyer (the “Parties”), the Parties have requested
Escrow Agent to hold in escrow in accordance with the provisions, upon the terms,
and subject to the conditions, of this Agreement, the Earnest Money Deposit as
defined in the Contract (the “Deposit”);
and 

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

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

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

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

                    3.
A. Buyer shall be entitled to an immediate return of the Deposit at any time
prior to the expiration of the Review Period (as defined in Section 3.1 of the
Contract) by providing written notice to Escrow Agent stating that Buyer has
elected to terminate the Contract pursuant to Section 3.1. 

                              B.
If at any time after the expiration of the Review Period, Buyer claims entitlement
to all or any portion of the Deposit, Buyer shall give written notice to Escrow
Agent stating that Seller has defaulted in the performance of its obligations
under the Contract beyond the applicable grace period, if any, or that Buyer is
otherwise entitled to the return of the Deposit or applicable portion thereof
and shall direct Escrow Agent to return the Deposit or applicable portion
thereof to Buyer (the “Buyer’s Notice”).
Escrow Agent shall promptly deliver a copy of Buyer’s Notice to Seller. Seller
shall have three (3) business days after receipt of the copy of Buyer’s Notice
to deliver written notice to Escrow Agent and Buyer objecting to the release of
the Deposit or applicable portion thereof to Buyer (“Seller’s Objection Notice”). 

2

If Escrow
Agent does not receive a timely Seller’s Objection Notice, Escrow Agent shall
release the Deposit or applicable portion thereof to Buyer. If Escrow Agent
does receive a timely Seller’s Objection Notice, Escrow Agent shall release the
Deposit or applicable portion thereof only upon receipt of, and in accordance
with, written instructions signed by Seller and Buyer, or the final order of a
court of competent jurisdiction. 

                              C.
If, at any time after the expiration of the Review Period, Seller claims
entitlement to the Deposit or applicable portion thereof, Seller shall give
written notice to Escrow Agent stating that Buyer has defaulted in the
performance of its obligations under the Contract, and shall direct Escrow
Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s Notice”). Escrow Agent shall
promptly deliver a copy of Seller’s Notice to Buyer. Buyer shall have three (3)
business days after receipt of the copy of Seller’s Notice to deliver written
notice to Escrow Agent and Seller objecting to the release of the Deposit or
applicable portion thereof to Seller (“Buyer’s
Objection Notice”). If Escrow Agent does not receive a timely
Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable
portion thereof to Seller. If Escrow Agent does receive a timely Seller’s
Objection Notice, Escrow Agent shall release the Deposit or applicable portion
thereof only upon receipt of, and in accordance with, written instructions
signed by Buyer and Seller, or the final order of a court of competent
jurisdiction. 

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

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

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

                              C.
Escrow Agent shall not be bound or in any way affected by any notice of any
modification or cancellation of this Agreement, or of any fact or circumstance
affecting or alleged to affect rights or liabilities hereunder other than as is
herein set forth, or affecting or alleged to affect the rights and liabilities
of any other person, unless notice of the same is delivered to Escrow Agent in
writing, signed by the proper parties to Escrow Agent’s 

3

satisfaction
and, in the case of modification, unless such modification shall be approved by
Escrow Agent in writing. 

                    6.
A. Escrow Agent and any successor escrow agent, as the case may be, may resign
his or its duties and be discharged from all obligations hereunder at any time
upon giving five (5) days’ prior written notice to each of the Parties hereto.
The Parties hereto will thereupon jointly designate a successor escrow agent
hereunder within said five (5) day period to whom the Deposit shall be
delivered. In default of such a joint designation of a successor escrow agent,
Escrow Agent shall retain the Deposit as custodian thereof until otherwise
directed by the Parties hereto, jointly, or until the Deposit is released in
accordance with clause (B) below, in each case, without liability or
responsibility. 

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

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

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If addressed
 to Seller, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Grapevine
 Equity Partners, LLC

 
	
  

 	
  

 	
 1135 Kinwest
 Parkway, Suite 150

 
	
  

 	
  

 	
 Irving,
 Texas 75063

 
	
  

 	
  

 	
 Attention:
 Mehul Patel

 
	
  

 	
  

 	
 Fax No.
 (214) 260-3724

 
	
  

 	
  

 	
 Email: mike@sagestar.net

 

4

          with
a copy to: 

	
  

 	
  

 	
  

 
	
  

 	
 Stites &
 Harbison, PLLC 

 	
  

 
	
  

 	
 400 West
 Market Street, Suite 1800

 	
  

 
	
  

 	
 Louisville,
 KY 40202

 	
  

 
	
  

 	
 Attention:
 Jamie L. Cox 

 	
  

 
	
  

 	
 Fax No.
 (502) 779-8285 

 	
  

 
	
  

 	
 Email: jcox@stites.com

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If addressed
 to Buyer, to: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Apple Ten
 Hospitality Ownership, Inc. 

 	
  

 
	
  

 	
  

 	
 814 E. Main
 Street

 	
  

 
	
  

 	
  

 	
  Richmond, Virginia 23219 

 	
  

 
	
  

 	
  

 	
 Attn: Nelson
 Knight 

 	
  

 
	
  

 	
  

 	
 Fax No.:
 (804) 344-8129 

 	
  

 
	
  

 	
  

 	
 Email: nknight@applereit.com

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 with a copy
 to: 

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 Apple REIT Ten, Inc. 

 	
  

 
	
  

 	
 814 E. Main Street 

 	
  

 
	
  

 	
 Richmond, Virginia 23219 

 	
  

 
	
  

 	
 Attn: Legal Dept. 

 	
  

 
	
  

 	
 Fax No.: (804) 727-6349 

 	
  

 
	
  

 	
 Email: dbuckley@applereit.com 

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 If addressed
 to Escrow Agent, to: 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Chicago
 Title Company 

 	
  

 
	
  

 	
  

 	
 5501 LBJ
 Freeway, Ste. 200 

 	
  

 
	
  

 	
  

 	
 Dallas,
 Texas 75240 

 	
  

 
	
  

 	
  

 	
 Attn: Debby
 Moore 

 	
  

 
	
  

 	
  

 	
 Fax No.:
 (214) 570-0210 

 	
  

 
	
  

 	
  

 	
 Email: debby.moore@cttdallas.com
 

 	
  

 

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

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

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

5

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 
	
  

 	
 GRAPEVINE
 EQUITY PARTNERS, LLC

 
	
  

 
	
  

 	
 By:

 	

 

 	
  

 
	
  

 	
 Name:

 	

 

 	
  

 
	
  

 	
 Title:

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC.

 
	
  

 
	
  

 	
 By:

 	

 

 	
  

 
	
  

 	
 Name:

 	

 

 	
  

 
	
  

 	
 Title:

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ESCROW AGENT:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CHICAGO
 TITLE COMPANY

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	

 

 	
  

 
	
  

 	
 Name:

 	

 

 	
  

 
	
  

 	
 Title:

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 

6

EXHIBIT H

CONSTRUCTION WARRANTY

          The
Contractor hereby warrants to Seller and Buyer that all materials and equipment
furnished with respect to the Property are new and the work performed by the
Contractor with respect to the Property is of good and workmanlike quality,
free from faults and defects, and in conformance with all contract documents.
Work not conforming to these requirements, including substitutions not properly
approved and authorized, may be considered defective. The foregoing warranty
excludes remedy for damage or defect caused by abuse, modifications not
executed by the Contractor, improper or insufficient maintenance, improper
operation, or normal wear and tear and normal usage. If required by Seller or
Buyer, the Contractor shall furnish satisfactory evidence as to the kind and
quality of materials and equipment. 

          The
Contractor hereby guarantees to Seller and Buyer all work performed and
materials and equipment furnished with respect to the Property against defects
in materials and workmanship for a period of one year from the date of
substantial completion of the entire Property, or for a longer period if so
specified in the contract documents. 

          The
Contractor shall, within a reasonable time after receipt of written notice
thereof, and without reimbursement under the construction contract, make good
any defects in materials, equipment and workmanship which may develop within
periods for which said material, equipment and workmanship are guaranteed and
make good any damage to other work caused by the repairing of such defects. 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00196-of-00352.parquet"}]]