Document:

Exhibit 10.36

 Exhibit 10.36 
 SANTA CLARITA RI AND SANTA CLARITA FI 
 AGREEMENT OF PURCHASE AND SALE 
 BY THIS AGREEMENT OF PURCHASE AND SALE (this “Agreement”), and for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto declare, covenant and agree as follows: 
 1. DEFINITIONS. 
 The following terms are hereby defined as set forth below for purposes of this Agreement and shall be given such meanings wherever appearing in this
Agreement unless the context requires otherwise, and subject to such further qualifications as are expressly set forth hereafter: 
  

			
	Seller:	 	
		
		 	RT CLARITA, L.P.
		 	A Delaware limited partnership
		 	Attention: Sam Friedman
		 	401 Keyser Avenue
		 	Natchitoches, LA 71457
		 	Telephone: (318) 352-8238
		 	Facsimile: (318) 352-8276
		 	Email: Sam.Friedman@dimdev.com
		
	Buyer:	 	
		
		 	APPLE NINE HOSPITALITY OWNERSHIP, INC.,
		 	A Virginia corporation
		 	Attention: Sam Reynolds
		 	814 E. Main Street
		 	Richmond, VA 23219
		 	Telephone: 804-344-8121
		 	Facsimile: 804-727-6354
		 	Email: SReynolds@applereit.com
		
	Escrow Agent:	 	LAND AMERICA AMERICAN TITLE COMPANY—1951
		 	Debby S. Moore
		 	Escrow Officer / Commercial Closer
		 	2505 N. Plano Road, Ste. 3100
		 	Richardson, Texas 75082
		 	Telephone: 214-570-0200 X 103
		 	Facsimile: 214-570-0210
		 	E-Mail: dmoore@landam.com
		 	Escrow Number:
                            (“Escrow”)

  

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	Effective Date of	 	
	this Agreement:	 	August 29, 2008
		
	Opening of	 	
	Escrow:	 	The date upon which this Agreement has been fully executed by Buyer and Seller.
		
	Review Period:	 	The period commencing on the Opening of Escrow and expiring forty-five (45) days thereafter at 5:00 p.m. c.s.t.
		
	Closing Date:	 	Fifteen (15) days after the expiration of the Review Period, or the date upon which the Existing Loan can be assumed, whichever is later; provided, however, the outside closing date
shall be December 31, 2008. “Closing” shall mean the recordation of the Special Warranty Deed for each Hotels described in Section 5.1(a) in the official records of Los Angeles, California.
		
	Properties:	 	The properties which is subject to this Agreement and which Seller agrees to sell and Buyer agrees to purchase is as follows:
		
		 	 a. All of those certain real properties situated at 25320 The Old Road, Santa Clarita, California 91381 and 25340 The Old Road, Santa Clarita, California 91381,
the legal descriptions of which is attached hereto as Exhibit “A” and incorporated herein by reference, all hereditaments, privileges, tenements and appurtenances thereto, including any and all rights under covenants,
easements, conditions, restrictions and other usage agreements and all open or proposed highways, streets, roads, avenues, alleys, easements, strips, gores and rights-of-way in, on, across, in front of, contiguous to, abutting or adjoining the
Properties and all water rights (if any) and all trees, bushes and other flora now or on the Closing Date affixed thereto or thereon (the “Real Properties”);

		
		 	 b. All buildings, improvements, fixtures and appurtenances (the “Improvements”) situated in, on or about the Real Properties, including, but not
limited to, the 90 room hotel known as the “Residence Inn Santa Clarita Valencia” and the 66 room hotel known as the “Fairfield Inn Santa Clarita Valencia” (collectively, the “Hotels”);

		
		 	 c. All of Seller’s right, title and interest in and to the inventory located at the Improvements, including, but not limited to, all

  

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		 	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 Hotels), 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 (collectively “Inventory”) to operate the Hotels;
		
		 	 d. All of the “FF&E”, which shall include all tangible personal property and fixtures of any kind (other than personal property (i) owned by
guests of the Hotels 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 Real Properties or Improvements as of the date hereof (or
acquired by Seller and so employed prior to Closing), including, but not limited to, all furniture, fixtures, equipment, signs and related personal property; all heating, lighting, plumbing, drainage, electrical, air conditioning, and other
mechanical fixtures and equipment and systems; all elevators, and related motors and electrical equipment and systems; all hot water heaters, furnaces, heating controls, motors and equipment, all shelving and partitions, all ventilating equipment,
and all disposal equipment; all spa, health club and fitness equipment; all equipment used in connection with the use and/or maintenance of the guestrooms, restaurants, lounges, business centers, meeting rooms, swimming pools, indoor and/or outdoor
sports facilities and other common areas and recreational areas; all carpet, drapes, beds, furniture, televisions and other furnishings; all stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen equipment and utensils, tables,
chairs, plates and other dishes, glasses, silverware, serving pieces and other restaurant and bar equipment, apparatus and utensils. A current list of FF&E is attached hereto as Exhibit B (collectively, “FF&E”),
Notwithstanding anything contained herein to the contrary, Seller shall, at its sole cost and expense, pay off any financing (whether lease financing or purchase money financing) of any motor vehicles at Closing;

		
		 	 e. All of Seller’s right, title and interest in and to all assignable service contracts, leases, contracts and other agreements in

  

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		 	effect with respect to the ownership and operation or maintenance of the Real Properties, Improvements and FF&E (“Operating Agreements”). A current list of Operating Agreements
is attached hereto as Exhibit C;
		
		 	 f. All of Seller’s right, title and interest in and to room and other reservations with respect to the Improvements and relating to any period from and
after 12:01 a.m. on the Closing Date; and

		
		 	 g. To the extent assignable, all of Seller’s right, title and interest, if any, in and to (i) all governmental permits, licenses, certifications and
authorizations, including, without limitation, certificates of occupancy, relating to the construction, use or operation of the Hotels, to the extent that the same are assignable by Seller; (ii) all unexpired warranties and guaranties relating
to the Real Properties, Improvements and FF&E; (iii) all architectural or engineering plans, drawings and specifications, surveys and soils, environmental and geologic reports pertaining to the Real Properties in Seller’s possession or
control; and (iv) telephone numbers, Properties Management System Guest History Electronic Data during Seller’s ownership of the Properties, sales contracts for future business and for the past 12 months business, sales client contract
information lists, and other business records (collectively, the “Warranties and Intangibles”).

		
		 	Notwithstanding any provision in this Agreement to the contrary, the term “Properties” shall not include (i) any non-assignable Operating Agreements, (ii) any
non-assignable Warranties and Intangibles, (iii) any cash on hand (excluding cash described in Section 5.3) or in accounts or cash equivalents, (iv) any security, vendor or other deposits of any type or nature, including, but not
limited to, deposits for utilities, lender escrows or under Operating Agreements but specifically excluding guest deposits for room reservations post Closing, (v) any notes, accounts receivable and vendor receivables due Seller in connection
with the operation of the Hotels on or before the Closing Date, (vi) the Management Agreement with Dimension Development Company, Inc., and (vii) any accounts payable, operating expenses, costs and other charges incurred for periods prior
to the Closing Date.
		
	Existing Loan:	 	That certain loan in the original principal amount of $11,100,000 as evidenced by a promissory note from Seller, as maker, in favor of Lehman Brothers Bank, FSB (“Lender”) dated
January 28, 2003, secured by the Properties pursuant to that certain Deed of Trust dated January 28, 2003 and recorded in the Los Angeles County, California records.

  

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 2. PURCHASE PROVISIONS. 
 2.1 Agreement and Properties. Seller hereby agrees to sell, transfer and convey to Buyer, and Buyer hereby agrees to purchase and acquire from
Seller, the Properties, all upon and subject to the terms, conditions and provisions set forth in this Agreement. 
 2.2 Purchase
Price. The purchase price for the Properties shall be Twenty-five Million and No/100ths Dollars ($25,000,000.00) (the “Purchase Price”) (allocated between the Hotels as $16,000,000 for the Residence Inn and $9,000,000 for the Fairfield
Inn), payable as follows: 
 (a) Two Hundred Fifty Thousand and No/100ths ($250,000.00) Dollars in cash or immediately available funds (the
“Initial Deposit”) deposited by Buyer with the Escrow Agent in an interest bearing account within two (2) business days following the Opening of Escrow; 
 (b) At the end of the Review Period, Buyer shall deposit an additional Two Hundred Fifty Thousand and No/100ths ($250,000.00) Dollars in cash or immediately available funds (the “Additional Deposit”) with
Escrow Agent; and 
 (c) the balance of the Purchase Price, less the then outstanding principal balance of the Existing Loan immediately
prior to Closing, in cash or immediately available funds deposited with the Escrow Agent on or before the Closing Date. 
 2.3 Earnest
Money Deposit. Prior to the expiration of the Review Period, the Initial Deposit, together with interest earned thereon shall be fully refundable in accordance with the procedures set forth in Section 3.6 below. From and after the
expiration of the Review Period, the Initial Deposit and the Additional Deposit (collectively, the “Earnest Money Deposit”) shall apply to the Purchase Price and shall be nonrefundable to Buyer; provided, however, that if: 
 a. Buyer terminates this Agreement on or before the expiration of the Review Period in accordance with the provisions of Section 3.1; or 

b. Buyer terminates this Agreement on or before the expiration of the Review Period in accordance with the provisions of Section 3.6; or

 c. Buyer terminates this Agreement pursuant to the provisions of Section 6.1 in the event of a Seller default; or 
 d. Buyer terminates this Agreement pursuant to the provisions of Section 8 in the event of a condemnation or casualty; or 
 e. Buyer terminates the Escrow pursuant to the provisions of Section 5.12, 
  

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 then the Earnest Money Deposit shall promptly be refunded to Buyer, this Agreement shall terminate and the parties shall
have no further rights or obligations hereunder except as expressly provided for herein. Escrow Agent shall invest the Earnest Money Deposit in insured money market accounts, certificates of deposit or United States Treasury Bills, provided that
such investments are federally issued or insured. 
 2.4 Purchase Price Allocation. Buyer and Seller shall attempt to agree on the
allocation of the Purchase Price during the Review Period. If the parties are unable to agree on an allocation, each party may assign its own allocation of the Purchase Price. Any transfer tax declaration required to be filed or recorded at Closing
shall contain Buyer’s allocation of the Purchase Price. 
 2.5 Existing Loan. At Closing, Buyer shall assume the Existing Loan at
its sole cost and expense; provided, however, Seller shall cooperate with Buyer in its efforts to assume the Existing Loan and Seller shall be responsible for its own attorneys’ fees incurred in connection with the assumption including any
costs necessitated by Seller’s negotiation of the assumption documents or structure. 
 3. PROPERTY TITLE AND CONDITION.

 3.1 Preliminary Title Report. 
 (a) Within two (2) days following the Opening of Escrow, Seller shall provide Buyer a copy of its existing title insurance policy, exception documents and survey, and within twelve (12) days following the Opening of Escrow, Buyer
will have prepared a Preliminary Title Report/Commitment for owners title insurance for the Properties showing all liens, encumbrances and other matters affecting the title to the Properties (the “Title Report”) and will provide a copy
thereof together with legible copies of the documents shown as title exceptions or requirements therein to Seller. Buyer shall have ten (10) days following receipt of the Title Report to object, in Buyer’s sole and absolute discretion, to
any other items contained in the Title Report. Buyer shall have until the end of the Review Period to object to any items contained in the Survey (as that term is defined in Section 3.2). Should Buyer object to any provisions contained therein,
Seller shall, within five (5) days of the receipt of any such objections, advise Buyer of which title objections it will cure. Thereafter, prior to the later of five (5) days following (x) the expiration of the Review Period or
(y) receipt of Seller’s title response notice, Buyer may either: (i) reject the Title Report and the Survey, in which case this Agreement is terminated, the parties will have no further rights or obligations hereunder (except those
which specifically survive the termination of this Agreement) and the Initial Deposit shall be immediately refunded to Buyer without further instruction; or (ii) Buyer can choose to accept the Title Report and Survey by the placement of the
Additional Deposit, which signifies acceptance of the Title Report and Survey. Any cure of title objections which Seller has elected to undertake shall be completed no later than five (5) days prior to the Closing Date. If such cure has not
been completed by such time, Buyer may at such time either: (i) reject the Title Report and the Survey, in which case this Agreement is terminated, the parties will have no further rights or obligations hereunder (except those which
specifically survive the termination of this Agreement) and the Earnest Money Deposit shall be immediately refunded to Buyer without further instruction; or (ii) Buyer can choose to accept the Title Report and Survey. 
  

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 (b) If any amended Title Reports are issued from the same title company after the expiration of the
Review Period, Buyer shall have until five (5) business days following receipt of the same to review the amendment and to accept or reject any new matters set forth on Schedule B—Section 2 (Exceptions) to the amended Title Report which do
not arise from the act or omission to act on the part of Buyer or its agents (the “New Exception(s)”) and shall be deemed to have accepted the New Exception(s) unless written notice of rejection is given to Seller on or before the
expiration of said five (5) business days. If any New Exception(s)is rejected by Buyer and Seller does not, within five (5) business days after Buyer’s rejection of the New Exception, agree to remove the New Exception, Buyer may
either: (i) reject the Title Report and the Survey, in which case this Agreement is terminated, the parties will have no further rights or obligations hereunder (except those which specifically survive the termination of this Agreement) and the
Initial Deposit shall be immediately refunded to Buyer without further instruction; or (ii) Buyer can choose to accept the Title Report and Survey by the placement of the Additional Deposit, which signifies acceptance of the Title Report and
Survey. 
 (c) In the event that Buyer accepts the Title Report, those matters listed on Schedule B, Section 2 (Exceptions to Title) of
Title Report shall be the “Permitted Exceptions”. In no event shall Permitted Exceptions include liens, or documents evidencing liens, securing any indebtedness, any mechanics’ or materialmen’s liens or any claims or potential
claims therefor covering the Properties or any portion thereof (“Seller Liens”), each of which shall be paid in full by Seller and released at Closing. 
 (d) Seller shall reasonably cooperate with Buyer to cause unacceptable matters to be removed from the Title Report, provided, however, that Seller shall have no obligation to expend money or obtain any endorsements in
order to remove any title exceptions. Seller shall, however, cause any consensual monetary liens, if any, affecting the Properties to be removed as of the Closing. 
 3.2 Survey. Within five (5) days following the Opening of Escrow, Buyer, at its sole cost and expense, will order an ALTA/ASCM survey to be prepared by a duly registered land surveyor or civil engineer
certified to Buyer and to Escrow Agent and in form acceptable to Escrow Agent to issue its owners policy of title insurance (the “Survey”). 
 3.3 Information. Within five (5) calendar days following the Opening of Escrow, Seller shall provide Buyer with access to the information described on the attached Exhibit “B”
(collectively, “Review Materials”). 
 3.4 Operating Agreements. Within five (5) calendar days following the Opening of
Escrow, Seller shall provide to Buyer as part of the Review Materials, a copy of the Operating Agreements. Within ten (10) business days following receipt of the Operating 

  

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Agreements, Buyer shall provide written notice to Seller of any Operating Agreements to which Buyer objects (the “Objectionable Agreements”);
provided that Buyer may not object to any Operating Agreement that may be terminated upon thirty (30) or fewer days notice without penalty or termination fee. Within five (5) days following notice of the Objectionable Agreements from
Buyer, Seller may (i) agree to terminate such Objectionable Agreements on or before the Closing Date, in which case this Agreement shall continue in full force and effect, or (ii) not agree to terminate such Objectionable Agreements, in
which case Buyer shall have the right to terminate this Agreement and the Initial Deposit shall be immediately refunded to Buyer without further instruction. At Closing, Buyer shall assume and become responsible for all of the liabilities and
obligations which arise post Closing under all of the Operating Agreements which Buyer has assumed, so long as Seller provided to Buyer a copy of such Operating Agreement pursuant to the provisions of Section 3.3 above. 
 3.5 Franchise Agreements. Each of the Hotels is operated by Seller pursuant to that certain Franchise License Agreement dated
(i) June 29, 2001, in the case of the Residence Inn and (ii) June 29, 2001, in the case of the Fairfield Inn, (the “Existing Franchise Agreements”). Within ten (10) days following the Opening of Escrow, for each
Hotel Buyer shall apply to Licensor for a new license agreement (with an effective date no earlier than the Closing Date) to replace the Existing Franchise Agreements for the unexpired term thereof. Buyer shall be responsible for the costs of such
application and any and all transfer fees and costs payable to the Licensor in connection with the application and review for the new licenses. 
 3.6 Review Period. During the Review Period, Buyer or its agents shall have the right to enter upon the Properties to conduct surveys, hydrological, topographical, traffic, feasibility and engineering studies and reports, to conduct
tests (but not borings without the prior written consent of Seller, which consent shall not be unreasonably withheld) and environmental analyses of the soils and water, to investigate the availability and quality of access and utilities to the
Properties, and to otherwise inspect the general condition of the Properties, the cost of which shall be borne exclusively by Buyer. Buyer agrees to indemnify and hold Seller harmless from any liabilities incurred as a result of such entrance by
Buyer or its agents upon the Properties (except and excluding liability for lost business or lost employees, or resulting from Seller’s gross negligence or intentional misconduct). Buyer shall obtain or cause its consultants to obtain, at
Buyer’s sole cost and expense prior to commencement of any investigative activities on the Properties, a policy of commercial general liability insurance with limits of not less than $2 million covering any and all liability of Buyer and Seller
with respect to or arising out of Buyer’s investigative activities. Without limiting the generality of the foregoing, Buyer agrees to restore the Real Properties and Improvements to its former condition. The foregoing indemnity and obligation
to restore shall survive the Closing or any termination of this Agreement. Buyer may also review the effect of all zoning, land use, environmental building and construction laws and regulations restricting or regulating or otherwise affecting the
use, occupancy or enjoyment of the Properties. Buyer shall have until the expiration of the Review Period to accept or reject, in Buyer’s sole and absolute discretion, the Review Materials and the general condition and feasibility of the
Properties. In the event that the Buyer rejects the Properties on or before to the expiration of the Review Period, the Initial Deposit shall be immediately refunded to Buyer without further instruction and the parties shall have no further rights
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except as expressly provided for herein. Should Buyer fail to make the Additional Deposit called for under Section 2.2 (b) at the expiration of the
Review Period without issuing notice of its intent to terminate the contract, the agreement is terminated and the parties shall have no further rights or obligations hereunder, with the Initial Deposit being forwarded to Seller. 
 3.7 Interviews. During the Review Period, Seller shall permit Buyer and its agents to interview, as part of its due diligence regarding the
Properties (and not in connection with employment), Seller’s employees and such other persons as reasonably requested by Buyer, provided, however, that (i) such interviews shall cause minimal disruption in Seller’s business and
(ii) Buyer shall provide Seller with actual written facsimile notice, at 318-352-8276 no less than forty eight hours prior to the intended date of the interview. Notwithstanding anything contained herein to the contrary, the General Manager and
the Director of Sales (collectively, the “Retained Employees”) may be offered positions with Seller or its affiliates, and Buyer cannot interview or employ the Retained Employees without Seller’s written consent. 
 4. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AND BUYER. 
 4.1 Seller’s Representations, Warranties and Covenants. Seller represents, warrants, covenants and agrees as follows: 
 (a) Organization and Power. Seller is a limited partnership, duly organized and validly existing under the laws of the State of Delaware, qualified to do business in the state in which the Real Properties is
located, and has all requisite powers to carry on its business as now conducted and to enter into and perform its obligations hereunder and under any document or instrument required to be executed and delivered on behalf of Seller hereunder.

 (b) Authorization and Execution. This Agreement has been duly authorized by all necessary action on the part of Seller, has been
duly executed and delivered by Seller, constitutes the valid and binding agreement of Seller and is enforceable in accordance with its terms. 
 (c) Litigation. There is no material action, suit or proceeding pending or, to the knowledge of Seller, threatened against Seller or affecting the Properties in any court, before any arbitrator or before or by any governmental agency
that is not fully covered by insurance in amounts sufficient to satisfy all claims and costs related thereto. 
 (d) Compliance with
Applicable Laws. Seller has not received written notice and has no knowledge of: (i) any material violations of any laws, statutes, ordinances, regulations or other requirements of any governmental agency in connection with the Properties
(including, except as disclosed in the Review Materials, any laws related to hazardous materials); or (ii) any operation or use of the Properties in material violation of any applicable law, statute, ordinance, rule, regulation, order or
determination of any governmental authority. 
  

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 (e) Condemnation. Seller has not received any written notice from any governmental authority
regarding, and has no knowledge of, any pending or threatened condemnation, eminent domain or similar proceeding. 
 (f) Financial
Statements. The financial statements are true and correct in all material respects and have been prepared on a basis of accounting that has been consistently applied in accordance with generally accepted accounting principles (“GAAP”)
or with such accounting adjustments to GAAP as are generally acceptable in the real estate industry. Seller has delivered copies of all prior and current (i) Financial Statements for the Hotels, (ii) operating statements prepared by the
Manager for the Hotels, and (iii) monthly financial statements prepared by the Manager for the Hotels which have been requested by Buyer. Each of such statements is, to Seller’s knowledge, complete and accurate in all material respects
and, except in the case of budgets or proformas (which Buyer agrees it has not relied on in making the decision to purchase the Properties) prepared in advance of the applicable operating period to which such budgets relate, fairly presents the
results of operations of the Hotels for the respective periods represented thereby. Seller has relied upon the Financial Statements in connection with its ownership and operation of the Hotels during Seller’s ownership, and there are no
independent audits or financial statements prepared by third parties relating to the operation of the Hotels other than the Financial Statements prepared by or on behalf of the Manager, all of which have been provided to Buyer. 
 (g) Taxes. During Seller’s ownership of the Properties, all federal, state and local tax requirements relating to the Properties and its
operations have, to Seller’s knowledge, been complied with and, to Seller’s knowledge, all taxes due and payable in respect of the Hotels and its operation up through the Closing shall have been paid (except as prorated herein). Seller has
no knowledge of any unassessed tax deficiency or liability, interest or penalties pending or threatened against the Properties. 
 (h)
Intentionally Deleted. 
 (i) Inventory. As of the Closing Date, there will be a minimum of two (2) turns of bed linens
for each guest room and a one-week supply of normal inventory of food necessary to operate the Hotels. 
 (j) Employees. Seller is not
a party to any contract with a labor union. All employees employed at the Hotels are the employees of the Seller. There are, to Seller’s knowledge, no (i) unions organized at the Hotels, (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 Hotels, or (iii) collective bargaining or other labor agreements to which the Manager or the Hotels is bound
with respect to any employees employed at the Hotels. 
 (k) Hazardous Materials. Seller has not, during its possession of the Hotels,
used, stored, disposed of or released (or authorized the use, storage, disposal or release by a third party) toxic substances in or on the Hotels, except for in compliance with environmental laws and except for materials and supplies in the usual
and customary amounts used in the ordinary course of a Hotels business in accordance with customary industry practices and procedures. 
  

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 (l) Options to Purchase. There are no options to purchase, rights of first refusal or other
similar agreements with respect to the Properties which will survive Closing which give anyone the right to purchase the Properties or any part thereof. There are no contracts or agreements which affect the Properties, except as set forth herein.

 (m) Certificates of Occupancy. Certificates of Occupancy for all buildings and other improvements have been duly issued and all
Improvements may be legally occupied in accordance with their present occupancy. The Properties is zoned properly for the present uses made thereof. 
 (n) Franchise Compliance. Seller has furnished to Buyer true and complete copies of that certain management agreement between Seller and Dimension Development Company dated May 8, 2001 (the “Existing
Management Agreement”) and the Existing Franchise Agreements, 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 Hotels or relating to the Brand, to which Seller is a party or which are binding upon the Properties, except for the
Existing Management Agreement and the Existing Franchise Agreements. The Existing Management Agreement and the Existing Franchise Agreements are in full force and effect, and shall remain in full force and effect until the termination of the
Existing Management Agreement and the Existing Franchise Agreements at Closing, as provided in Section 14 hereof. 
 (o)
Agreements. The Seller will deliver to Buyer, within five (5) days of the Effective Date, written copies of all Operating Agreements, including without limitation, all non-recorded licenses, covenants or restrictions building plans,
equipment leases, furniture leases, construction and maintenance contracts, architects agreements, leases, service agreements, supply contracts, management agreements, and kiosk or other agreements affecting the ownership, operation, occupancy or
maintenance of the Properties on or before the commencement of the Review Period; and 
 (p) Sufficiency of Certain Items: The
Properties, on the Closing Date, shall contain not less than 
 (a) sufficient furniture, furnishings, televisions, carpets, drapes, rugs,
floor covering, mattresses, pillows, bed spreads, and the like, to furnish each guest room, so that each guest room is fully furnished; and 
 (b) two (2) sets of towels, wash cloths and bed linens, so that there are two (2) sets of towels, wash cloths and linens in the usual number for each guest room and an extra equal set on the shelves (or in the laundry), together
with a sufficient supply of paper goods, soaps, cleaning supplies and other supplies and materials reasonably adequate for the current operation of the Properties. 
  

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 (q) Operation. Seller will continue to operate the Properties in good faith prior to Closing, and
use its best efforts to solicit and secure future business at the hotel. From and after the date hereof through the Closing on the Properties, Seller shall comply with the Existing Management Agreement and the Existing Franchise Agreements 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: 
 (i) Continue to maintain the Properties generally in accordance with past practices of Seller and pursuant to and in compliance with the Existing Management Agreement and the Existing Franchise Agreements, including,
without limitation, (i) using reasonable efforts to keep available the services of all present employees at the Hotels and to preserve its relations with guests, suppliers and other parties doing business with Seller with respect to the Hotels,
(ii) accepting booking contracts for the use of the Hotels’s facilities retaining such bookings in accordance with the terms of the Existing Management Agreement and the Existing Franchise Agreements, (iii) maintaining the current
level of advertising and other promotional activities for the Hotels’s facilities, (iv) maintaining the present level of insurance with respect to the Hotels in full force and effect until the Closing Date for the Hotels and
(v) remaining in compliance in all material respects with all current Licenses. However, nothing herein shall be interpreted to require Seller to expend capital funds unless an item is broken and needs to be replaced; 
 (ii) Keep, observe, and perform in all material respects all its obligations under and pursuant to the Operating Agreement, the Existing
Management Agreement, the Existing Franchise Agreements and all other applicable contractual arrangements relating to the Hotels; 
 (iii) Not cause or permit the removal of FF&E from the Hotels except for the purpose of discarding worn and valueless items that have been replaced with FF&E of equal or better quality; timely make all repairs and maintenance, to
keep all FF&E and all other Personal Properties and all Real Properties in good operating condition; keep and maintain the Hotels in a good state of repair and condition, reasonable and ordinary wear and tear excepted; and not commit waste of
any portion of the Hotels; 
 (iv) Maintain the levels and quality of the Personal Properties generally at the levels and
quality existing on the date hereof and keep merchandise, supplies and inventory adequately stocked, consistent with good business practice, as if the sale of the Hotels hereunder were not to occur, including, without limitation, maintaining linens
and bath towels at least at a 2-par level for all suites or rooms of the Hotels; 
  

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 (v) Advise Buyer promptly of any litigation, arbitration, or administrative hearing
before any court or governmental agency concerning or affecting the Hotels which is instituted or threatened after the date of this Contract or if any representation or warranty contained in this Contract shall become false; 
 (vi) 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; 
 (vii) Pay or cause to be paid all taxes, assessments and
other impositions levied or assessed on the Hotels 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 Hotels; 
 (viii) 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 Properties or any portion thereof; and 
 (ix) Not allow any permit, receipt, license,
franchise or right currently in existence with respect to the operation, use, occupancy or maintenance of the Hotels to expire, be canceled or otherwise terminated. 
 Seller shall promptly furnish to Buyer copies of all new, amended or extended Operating Agreements (other than routine hotel room bookings entered into in the ordinary course of business) relating to the Hotels and
entered into by the Existing Manager prior to Closing; provided, however, that in the case of any of the foregoing entered into by the Existing Manager on its own behalf, only to the extent Seller has knowledge thereof or a copy of which is
obtainable from the Existing Manager. Buyer shall have the right to extend the Review Period for a period of five (5) Business Days in order to review any of the foregoing that are not received by Buyer at least five (5) Business Days
prior to the expiration of the Review Period. Seller shall not, without first obtaining the written approval of Buyer, which approval shall not be unreasonably withheld, enter into any new Operating Agreements or other contracts or agreements
related to the Hotels, 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. 
 If after the Opening of Escrow, but before Closing, Seller learns of facts or circumstances which make any of the foregoing representations or warranties materially
inaccurate, Seller shall notify Buyer in writing of such facts or circumstances within three (3) business days after learning of the same but prior to the Closing and Buyer may elect, within three (3) business days after receipt of
Seller’s notice but prior to the Closing, to terminate this Agreement by giving written notice to Seller and Escrow Agent. If Buyer fails to deliver such a termination notice, then Buyer shall be deemed to have: (i) waived its right to
terminate this Agreement, (ii) elected to acquire the Properties on the terms set forth in this Agreement and (iii) waived all remedies at law or in equity with respect to any inaccuracy in the representations or warranties resulting from
the facts or circumstance disclosed by Seller in its notice to Buyer. 
  

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 If after the Closing Buyer learns of facts or circumstances which existed prior to the Closing, but were not discovered
until after the Closing, which facts or circumstances made any of the foregoing representations or warranties materially inaccurate as of the Closing Date, then Buyer shall have all remedies at law or in equity against Seller with respect to any
inaccuracy in the representations or warranties, unless such facts or circumstances could not have been reasonably discharged by Seller. 
 Any
representations or warranties made herein to Seller’s knowledge shall be deemed to be based only upon the actual knowledge of Allan V. Rose or Sam Friedman, without imputation as to constructive knowledge. As used in this Agreement, the term
“knowledge” or “actual knowledge” shall mean only that nothing is known by or has come to Seller’s attention which would be inconsistent with or violative of the representations. In the event that Buyer discovers prior to
the Closing Date that any representation or warranty of Seller set forth in this Agreement is untrue or inaccurate as of the Closing Date but nevertheless elects to close the purchase of the Properties, Buyer shall conclusively be deemed to have
waived any claim it may otherwise have against Seller predicated on such untrue or inaccurate warranty. 
 (r) Access to Financial
Information. Buyer’s representatives shall have access to, and Seller and its Affiliates shall cooperate with Buyer and furnish upon request by making available at Seller’s offices or at the Properties, all financial and other
information (including the last 3 years’ financial statements), if in our possession, relating to the Hotels’s operations to the extent necessary to enable Buyer’s representatives to prepare audited financial statements in conformity
with Regulation S-X of the Securities and Exchange Commission (the “SEC”) and other applicable rules and regulations of the SEC and to enable them to prepare a registration statement, report or disclosure statement for filing
with the SEC on behalf of Buyer or its Affiliates, whether before or after Closing and regardless of whether such information is included in the Records to be transferred to Buyer hereunder. Seller shall also provide to Buyer’s representative a
signed representation letter in form and substance reasonably acceptable to Seller sufficient to enable an independent public accountant to render an opinion on the financial statements related to each Hotels. 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 letters. The
provisions of this Section shall survive Closing or termination of this Agreement. 
 4.2 Buyer’s Representations and Warranties.
Buyer represents, warrants and agrees that: 
 (a) Organization and Power. Buyer is a corporation duly organized, validly existing and
in good standing under the laws of the State of Virginia and has all requisite powers to carry on its business as now conducted and to enter into and perform its obligations hereunder and under any document or instrument required to be executed and
delivered on behalf of Buyer hereunder. 
  

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 (b) Authorization and Execution. This Agreement has been duly authorized by all necessary action
on the part of the Buyer, has been duly executed and delivered by the Buyer, constitutes the valid and binding agreement of Buyer and is enforceable in accordance with its terms. There is no other person or entity who has an ownership interest in
the Properties or whose consent is required in connection with Buyer’s performance of its obligations hereunder. 
 (c)
Litigation. To the knowledge of Buyer, there is no action, suit or proceeding pending or threatened against or affecting Buyer in any court, before any arbitrator or before or by any governmental agency. 
 4.3 Additional Acknowledgments. 
 4.3.1 Except as expressly set forth in this Agreement: (a) Buyer acknowledges that no person acting on behalf of Seller is authorized to make, and by execution and/or closing, Buyer acknowledges that no such person has made, any
representation, warranty, guaranty or promise, whether oral or written; (b) Seller hereby disclaims all representations and warranties, express or implied or otherwise arising by operation of law, arising out of or with respect to the execution
of this Agreement, any aspect, status, condition, or element of the Properties, including, without limitation, any and all implied warranties of merchantability and/or fitness for a particular purpose; and (c) Buyer is and shall be purchasing
the Properties in its “AS IS, WHERE IS CONDITION WITH ALL FAULTS” and Seller shall have no liability to Buyer with respect to the condition of the Properties under common law, or any federal, state or local law or regulation. 

4.3.2 Buyer covenants and agrees that prior to the expiration of the Review Period, Buyer will have: (a) performed its own due diligence
examination with respect to all matters affecting the Properties, including, but not limited to, those contained in or within the scope of, Seller’s representations and warranties in this Agreement; and (b) thoroughly investigated to its
full satisfaction, any and all other matters or rights included in this sale, together with any underlying encumbrances, covenants or restrictions pertaining to the Properties. Buyer is satisfied with respect to the probable risk, worth and
potential of the Properties and Buyer has relied upon its own judgment and decision in entering into and consummating this purchase and sale. Except as contained in Section 4.1 above, Buyer acknowledges that Seller has made no
representations or warranties, either express or implied, regarding the presence of any Hazardous Materials (as defined below) in, on or under the Hotels. By proceeding with this transaction following the expiration of the Review Period, Buyer will
be deemed to have made its own independent investigation of the Hotels with regard to the presence or absence of Hazardous Materials as Buyer deems appropriate. As used herein, the term “Hazardous Material(s)” includes,
without limitation, (A) any materials, substances or wastes which are toxic, ignitable, corrosive, reactive, or otherwise hazardous or potentially hazardous, and which are regulated by any local governmental authority, any agency of any state
or county 

  

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in which any of the Hotels is located, or any agency of the United States government, (B) any other material, substance, or waste which is defined or
regulated as a hazardous material, extremely hazardous material, hazardous waste or toxic substance pursuant to any laws, rules, regulations or orders of the United States government, or any state or county in which any of the Hotels is located,
(C) asbestos, (D) petroleum and petroleum based products, (E) formaldehyde, (F) polychlorinated biphenyls (PCBs), (G) radon, and (H) freon and other chlorofluorocarbons 
 4.3.3 Buyer acknowledges and agrees that Seller does not represent or warrant the accuracy, sufficiency or completeness of any documents, reports, and
information prepared or furnished by third parties, including, but not limited to, the Review Materials, and all other information provided to Buyer regarding the Properties, whether written or verbal (collectively, “Documents and
Information”). Buyer covenants and agrees to make its own independent investigation and verification of the accuracy, sufficiency and completeness of the Documents and Information. Buyer acknowledges that the Documents and Information do not
predict the degree to which the business to be conducted on the Real Properties and Improvements may succeed, if at all. Buyer agrees that it shall not attempt to assert any liability upon Seller for furnishing any Documents or Information to Buyer.

 4.3.4 Buyer understands the speculative nature of operating the business to be conducted on the Real Properties and Improvements and that
Seller in no way guarantees whether the business to be conducted on the Real Properties and Improvements may succeed or whether Buyer will recover any amounts invested in the business to be conducted on the Real Properties and Improvements.

 4.4 Survival. Each and every representation, warranty and agreement of Seller and Buyer shall (i) be true as of the date
hereof and the Closing Date; (ii) survive the Closing Date and the passage of title pursuant to this Agreement for a period of six months; and (iii) be considered material and any breach thereof shall be an event of default and shall
entitle the damaged party to utilize any and all remedies available under this Agreement. 
 4.5 Indemnity 
 4.5.1 By Seller. From and after the Closing, Seller shall indemnify and hold Buyer harmless from and be liable to Buyer for, any and all damages,
liabilities, costs and expenses (collectively “Losses”) sustained by Buyer (including, without limitation, all reasonable legal fees and costs), resulting from or attributable to (a) Seller’s ownership, use, maintenance and
operation of the Properties prior to the Closing Date and (b) all accounts payable, operating expenses, costs and other charges incurred for periods prior to the Closing Date. 
 4.5.2 By Buyer. From and after the Closing, Buyer shall indemnify and hold Seller harmless from and be liable to Seller for, any and all damages,
liabilities, costs and expenses (collectively “Losses”) sustained by Seller (including, without limitation, all reasonable legal fees and costs), resulting from or attributable to (a) Buyer’s ownership, use, maintenance and
operation of the Properties on and after the Closing Date and (b) all accounts payable, operating expenses, costs and other charges incurred for periods on and after the Closing Date. 
  

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 4.5.3 Defense of Claim. In case any claim, demand or deficiency (a “Claim”) is asserted
or any action is commenced or notice is given of any administrative or other proceeding against a party hereto (“Indemnified Party”) in respect of which indemnity properly sought against the other party (“Indemnitor”) pursuant to
this Agreement, Indemnified Party shall give prompt notice thereof in writing to Indemnitor. Within 30 days after receipt of such notice (or prior to such earlier date as any answer in any administrative or other proceeding is due), Indemnitor may
give Indemnified Party written notice of its election to conduct the defense of such Claim at its own expense (and any separate counsel engaged by Indemnified Party shall be at its expense). If Indemnitor has given Indemnified Party such notice of
election to conduct the defense, Indemnified Party shall nevertheless have the right to participate in the defense thereof, but such participation shall be solely at its expense. If Indemnitor shall not notify Indemnified Party in writing (within
the time hereinabove provided) of its election to conduct the defense of such Claim, Indemnified Party may (but need not) conduct (at the expense of Indemnitor) the defense of any Claim. The party assuming the defense of a Claim hereunder (the
“Defending Party”) shall notify the other party of its intention to settle, compromise or satisfy any such Claim and may make such settlement, compromise or satisfaction unless such other party (the “Assuming Party”) shall notify
the Defending Party in writing (within 30 days after receipt of such notice of intention to settle, compromise or satisfy) of its election to assume (at its sole expense) the defense of any such Claim and promptly thereafter take appropriate action
to implement such defense. The Assuming Party shall indemnify the Defending Party and hold it harmless against any losses in excess of the amount of losses the Defending Party would have incurred if the proposed settlement had been agreed to.
Indemnified Party shall cooperate with Indemnitor in any defense, at Indemnitor’s cost, and Indemnified Party shall provide reasonable access to, and copies of, records requested by Indemnitor and shall provide the reasonable assistance of
Indemnified Party’s employees in connection with any defense. 
 5. CLOSE OF ESCROW AND ACTIONS OF THE PARTIES. Subject to the
performance of all obligations of the parties hereunder, Escrow shall close on or before the Closing Date. Any deed, bill of sale, or assignment for transfer of the Properties to Buyer shall be submitted to Buyer in final form for review and
reasonable approval no later than ten (10) days prior to the Closing Date. All moneys and documents required to be delivered shall be deposited in Escrow no later than 3:00 p.m. Pacific Coast time on the Closing Date. 
 5.1 Seller Deposits. Seller shall deposit (or cause to be deposited) the following: 
 (a) For each Property, a Special Warranty Deed subject to the Permitted Exceptions, and an Affidavit of Property Value. 
 (b) Proof of the existence of Seller and the authority of the person signing on its behalf reasonably acceptable to Escrow Agent to cause it to issue
its extended owner’s policy of title insurance for the Real Properties insuring Buyer following close of Escrow. 
  

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 (c) For each Property, a Bill of Sale for the FF&E and Inventory and an endorsed title for the motor
vehicle (if any). 
 (d) For each Property, an Assignment and Assumption Agreement conveying all of Seller’s right, title and interest
in and to the Operating Agreements and Warranties and Intangibles which are assignable. 
 (e) All keys, books, records, files, logs,
registration books (including guest ledgers), sales client contact and revenue history, and all other materials in Seller’s possession or control which are necessary to maintain continuity of operation of the Hotels. 
 (f) A list of all employees by name, indicating each such employee’s salary or wage and applicable benefits. Other than the Retained Employees,
Seller shall terminate all employees on, and no employment contracts with employees shall exist as of, the Closing Date and Seller will pay any and all accrued and earned severance payments or benefits and accrued vacation and other benefits that
have accrued or may be payable to such employees on or before 12:01 a.m. on the Closing Date. 
 (g) A certification of non-foreign status
in substantially the form contemplated under Section 1445(a) of the Internal Revenue Code. 
 (h) Termination of the Existing
Management Agreement executed by Seller and Manager. 
 (i) Possession of the Properties, 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. 
 (j) Such other documents as may reasonably be required by Buyer, its counsel, or Escrow Agent, to consummate the transaction which is the subject matter
of this Agreement. 
 5.2 Buyer Deposits. Buyer shall deposit (or cause to be deposited) the following: 
 (a) Cash or certified funds in the amount set forth in the approved Settlement Sheet of Escrow Agent. 
 (b) For each Property, an Affidavit of Property Value. 
  

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 (c) For each Property, an Assignment and Assumption Agreement referenced in Section 5.1(d).

 (d) Evidence satisfactory to Seller, in its reasonable discretion, that (i) Marriott, under the franchise agreement to which Seller
is a party, has fully and unconditionally released Seller, and any guarantors from any and all loss, cost, liability, or expense (other than franchise or license fees accrued up to and through the Closing Date) under such franchise for any
termination or cancellation fee payable by Seller thereunder and for any post-closing obligations assumed by Buyer and its affiliates pursuant to the replacement franchise agreement and associated guaranty agreement, and (ii) the franchise
agreement has been terminated effective as of the Closing Date by reason of Buyer having entered into a replacement franchise agreement with respect thereto. Seller shall reasonably cooperate with Buyer during the Review Period if and to the extent
Buyer wishes to enter into any such replacement franchise agreement with Marriott. Notwithstanding anything contained in this Agreement to the contrary, a failure to obtain a release of Seller and/or a replacement franchise agreement shall not be a
default by Buyer hereunder, rather, it shall be a failure of a condition to both parties’ obligation to close which will entitle the party to whom the condition belongs (i.e., the release belongs to Seller; the replacement franchise belongs to
Buyer) only to terminate this Contract whereupon the Earnest Money Deposit shall be returned to Buyer. 
 (e) Such other documents as may
reasonably be required by Seller, its counsel, or Escrow Agent to consummate the transaction which is the subject matter of this Agreement. 
 5.3 Prorations. Except as may be otherwise expressly provided herein, all revenues, income
and expenses (including utility expenses and credit card adjustments) of the Properties with respect to the period prior to 12:01 a.m. on the Closing Date (but only including 50% of that night’s room revenues) shall be for the account of
Seller; and 50% of that night’s room revenues plus all revenues, income and expenses of the Properties with respect to the period after 12:01 a.m. on the Closing Date (including all deposits or advances related to advance bookings or
reservations exclusive of interest earned thereon through the Closing Date) for periods from and after the Closing Date) shall be for the account of Buyer. Seller shall deliver to Buyer the cash on hand at the Hotels on the Closing Date (except that
cash which constitutes Seller’s 50% share of the room revenues). Only real property taxes and assessments and personal property taxes will be prorated inside of Escrow on the settlement statement; all other prorations shall be made outside of
Escrow, in accordance with local custom in Los Angeles County, California, as reflected in a separately executed proration statement, shall be allocated, reconciled and paid by check or wire transfer directly between the parties as soon as
practicable on or after the Closing Date and may include, but not be limited to, income items such as revenues (prepaid or otherwise) from room, beverage, telephone and other similar charges, and expense (prepaid or otherwise) items such as
utilities and amounts under Operating Agreements. If real property taxes and assessments to be assumed by Buyer are unavailable on the Closing Date, a re-adjustment of such taxes and assessments assumed by Buyer shall be made within thirty
(30) days after the Closing or if longer, as soon as such taxes and assessments and charges or expenses assumed by Buyer are available. Should the sale occur after June 30th, 

  

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and the property be re-assessed due to the sale contemplated herein for the tax year in which Closing occurs, a re-adjustment shall occur, and the figures
from the re-assessment shall form the basis for the pro-ration amount. Notwithstanding the immediately preceding sentence, if a re-assessment occurs for future tax periods (i.e., for any period from and after Closing), no re-adjustment shall occur.
The parties agree to cooperate in good faith in effecting such a final reconciliation and each party shall promptly pay (or reimburse the other party for) any expense item that is chargeable to the former party and shall promptly remit any income
item to the other party if entitled thereto. In the event any adjustments pursuant to this Section 5.3 are, subsequent to Closing, found to be erroneous, then either party hereto is entitled to additional monies and shall invoice the
other party for such additional amounts as may be owing, and such amount shall be paid promptly by the other party upon receipt of the invoice. Such invoice shall be accompanied by reasonable substantiating evidence. 
 The provisions of this Section 5.3 shall survive the delivery of the Deed. 
 5.4 Title Insurance. At the close of Escrow, Buyer shall have obtained an extended Owner’s policy of title insurance, in the amount of the
Purchase Price, insuring Buyer that Buyer has acquired good and marketable fee simple title to the Properties in the amount of the Purchase Price, subject only to the Permitted Exceptions. Buyer shall be responsible for any premium attributable to
the standard coverage and Buyer shall be responsible for any premium attributable to extended coverage and any costs associated therewith and all endorsements. 
 5.5 General. All payments shall be in United States currency, wire transferred funds or certified funds. Buyer and Seller shall execute and deliver any additional documents required under this Agreement or
necessary to complete the transactions contemplated by this Agreement as provided herein, both prior to and following close of Escrow. Possession of and risk of loss in connection with the Properties shall be transferred by Seller to Buyer at close
of Escrow. Escrow Agent shall close Escrow when it is in a position to issue its title insurance policy as required for the Properties and to otherwise perform under this Agreement. 
 5.6 Further Contracts, Leases and Agreements. From the date hereof, until the earlier of the Closing or the termination of this Agreement, Seller
will operate the Hotels in accordance with the following provisions: 
 (a) Seller shall not, without the prior written consent of Buyer,
operate the Hotels and hold the Properties otherwise than in a manner consistent with past practices and the ordinary course of business; 
 (b) Seller shall not dispose of any Hotels furniture, fixtures or FF&E other than in the ordinary course of business or sell, assign, or create any right, title or interest in the Properties; and 
 (c) Seller shall not, without the prior written consent of Buyer, enter into any further contracts, leases or agreements relating to the Properties, or
extend, renew or amend existing contracts and agreements, other than in the ordinary course of business and only if the same is terminable upon 30 days notice without penalty or termination fee of any kind. 
  

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 For purposes of this Agreement, the term “ordinary course of business” means the ordinary course of business
consistent with the past custom and practice of the Seller (including with respect to quantity, quality and frequency.) 
 5.7 Bulk
Sale. To the extent such laws are applicable to the transactions contemplated herein, Buyer and Seller waive compliance with the uniform commercial code provisions of the laws of any jurisdiction regarding bulk transfers, and Seller covenants
and agrees to pay and discharge when due, unless contested by appropriate proceedings, all creditors and all liabilities of Seller pertaining to the Properties. 
 5.8 Closing Costs. In addition to any other costs or expenses set forth in this Agreement, Seller shall pay the real estate commission, the fees and costs of Seller’s counsel and consultants, any sales,
transfer, recordation and/or mansion taxes, and one-half of Escrow Agent’s escrow fee. In addition to any other costs or expenses set forth in this Agreement, Buyer shall pay one-half of Escrow Agent’s escrow fee, all costs for the
owner’s title policy and all endorsements thereto, all costs incurred in connection with its financing arrangements including any loan assumption fee, if any, all costs and expenses incurred by Buyer and its representatives in inspecting or
evaluating the Properties and the fees and costs of Buyer’s counsel and consultants. 
 5.9 Recordation of Deed. The recording of
the Deeds in the official records of Los Angeles County, California shall be deemed to evidence full performance and discharge of every agreement and obligation on the part of Seller hereunder, except those which are herein specifically stated to
survive the Closing or which are specifically stated in any other closing document to survive the delivery thereof. 
 5.10 Liquor
License. Seller will cooperate in all reasonable respects (which shall include, without limitation, supplying information known to Seller and execution of such documents as may be legally required) with Buyer in connection with the application
for a new liquor license by Buyer (the “Liquor Application”) to the extent reasonably necessary. Buyer shall diligently and in good faith proceed with the Liquor Application. If prior to the Closing Buyer is unable to obtain
a new liquor license or a temporary permit to operate pending issuance of a new liquor license or to receive assurances that it can continue to use the existing liquor license following the Closing, then, Seller shall, at no expense to Seller,
provide reasonable assistance to Buyer in negotiating an interim arrangement (the “Interim Arrangement”) whereby Seller shall assist in the operation of the liquor concessions at the Hotels on behalf of Buyer pending the
issuance of the liquor license or a temporary permit to operate to Buyer. In such event, Buyer shall indemnify, defend and hold Seller harmless from and against any and all claims, liabilities, costs and expenses (including, without limitation,
reasonable attorneys’ fees and costs) arising in connection with such operation and provide such insurance coverage against any and all liability relating to operation of the liquor concessions at the Hotels as Seller may reasonably require.

  

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 5.11 Escrow Funds. To provide for the timely payment of any post-closing claims by Buyer against
Seller hereunder, at Closing, Seller shall deposit an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00) (the “Escrow Funds”) per property which shall be withheld from the Purchase Price payable to Seller and
shall be deposited for a period of six 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 six month period, the Escrow Funds deposited by Seller shall be released to Seller. This escrow provision being further subject to that certain agreement dated as of even date herewith, a copy of which is attached hereto.

 5.12 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 5.12, 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 5.12 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. 
 (b) Buyer shall have received all of the instruments and conveyances listed in Section 5.1.

 (c) Seller shall have performed, observed and complied in all material respects with all of the covenants, agreements, closing
requirements and conditions required by this Contract to be performed, observed and complied with by Seller, as and when required hereunder. 
 (d) All Liquor Licenses shall be in full force and effect and shall remain in full force and effect following Closing and shall have been or shall be transferred to, or new Liquor Licenses issued to, the Manager or an Affiliate thereof
approved by Buyer within ninety (90) days of Closing, and Buyer shall have received satisfactory evidence thereof. 
 (e) Third Party
Consents in form and substance satisfactory to Buyer shall have been obtained and furnished to Buyer. 
  

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 (f) The Escrow Funds shall have been deposited in the escrow account pursuant to the Post-Closing
Agreement and the parties thereto shall have entered into the Post-Closing Agreement. 
 (g) The Existing Management Agreement shall have
been terminated. 
 (h) Buyer and the Franchisor shall have executed and delivered the New Franchise Agreement, in each case upon terms and
conditions acceptable to Buyer in its sole and absolute discretion. 
 (i) The Existing Loan shall have been assumed by Buyer. Provided this
Contract has not been terminated, Buyer, with cooperation from Seller, shall commence the assumption process assuming the outstanding balance and further agreeing to pay all of the fees and costs required by said lender for the Existing Loan as soon
as reasonably practicable after the expiration of the Review Period. Should the lender’s consent be delayed beyond the date proposed for the date of Closing, the Closing Date shall be extended until five business days beyond the date on
which the lender grants such approval, not to exceed an additional 30 days. If the approval is denied or the extended deadline reached, Buyer’s recourse shall be only to cancel this Agreement and obtain a full return of its Earnest Money,
including any additional Earnest Money deposited after the end of the Due Diligence Period. 
 5.13 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 5.13, 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 5.13, 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 paid to Seller and each of the parties shall be relieved from further liability to the other, except as otherwise expressly provided herein. The conditions are:

 (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 5.2. 
 (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. 
  

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 (d) The Existing Loan shall have been assumed by Buyer. Provided this Contract has not been terminated,
Buyer, with cooperation from Seller, shall commence the assumption process assuming the outstanding balance and further agreeing to pay all of the fees and costs required by said lender for the Existing Loan as soon as reasonably practicable after
the expiration of the Review Period. Provided this Contract has not been terminated, Buyer, with cooperation from Seller, shall commence the assumption process assuming the outstanding balance and further agreeing to pay all of the fees and
costs required by said lender for the Existing Loan as soon as reasonably practicable after the expiration of the Review Period. Should the lender’s consent be delayed beyond the date proposed for the date of Closing, the Closing Date
shall be extended until five business days beyond the date on which the lender grants such approval, not to exceed an additional 30 days. If the approval is denied or the extended deadline reached, Seller’s recourse shall be only to cancel
this Agreement whereupon Buyer shall receive a full return of its Earnest Money, including any additional Earnest Money deposited after the end of the Due Diligence Period. 
 5.14 Cure Rights. Notwithstanding Sections 5.12 or 5.13 to the contrary, neither party will exercise its right to terminate this Contract in
accordance with 5.12 or 5.13 above, as applicable, without first giving the other party five (5) business days’ (or longer in the notifying party’s discretion) notice and opportunity to satisfy the failed condition(s). If, after such
notice and cure period the condition remains unsatisfied, this Section 5.14 will be of no further force and effect and this Contract shall be interpreted as if this Section was never included. 
 6. DEFAULT. 
 6.1 Seller
Default. In the event that, on or before the Close of Escrow, Seller breaches any warranty or representation contained herein or at any time fails to comply with or perform any of the conditions, covenants, agreements or obligations to be
performed by Seller hereunder (“Seller Breach”), then Buyer may elect, upon giving written notice to Seller (i) to terminate this transaction and Escrow, in which event Buyer shall receive a refund of the Earnest Money Deposit
(together with all interest thereon), and Seller shall reimburse Buyer for Buyer’s reasonable and actual out of pocket expenses incurred by Buyer not to exceed $50,000 or (ii) to treat this Agreement as being in full force and effect in
which event Buyer shall have the right to an action against Seller for specific performance and the costs (including reasonable attorneys’ fees) for prosecuting such action. 
 6.2 Buyer Default. In the event that, on or before the Close of Escrow, Buyer breaches any warranty or representation contained herein or at any
time fails to comply with or perform any of the conditions, covenants, agreements or obligations to be performed by Buyer hereunder, then Seller, as its exclusive and sole remedy for such breach or failure shall be entitled to retain the Earnest
Money Deposit as full liquidated damages therefor. The parties acknowledge that it is impossible to more precisely estimate the specific damage which would be suffered by Seller in the event of such breach or failure by Buyer, and the parties
expressly acknowledge and intend that this provision is a provision for liquidated damages and not a penalty provision. 
  

 -24- 

 7. COMMISSIONS. Each party represents and warrants to the other that the party has not dealt with
any real estate brokers or salesmen, finders or other persons or entities of any kind or nature who may make a claim for a commission in connection with this transaction, and each party shall indemnify and hold harmless the other from and against
any and all liability, responsibility, claims, losses, damages, costs, expenses and attorneys’ fees of any kind or nature incurred or sustained by the other party as a result of the claim of any person or entity for a commission or finders fee
resulting from the activities or actions of the party. This paragraph shall survive the close of Escrow or termination of this Agreement. 
 8. INSURANCE/CASUALTY/CONDEMNATION. Seller agrees that it will keep the Properties insured against casualty until the Closing Date under its existing insurance policies or replacement policies with the same coverage as existing at
the date of execution hereof. Such policies shall be terminated by Seller at the Closing Date. In the event that, prior to the Closing Date, all or any portion of the Properties shall be destroyed by fire or other casualty, or taken by condemnation
or exercise of the right of eminent domain, or if proceedings therefor shall be instituted or threatened and the amount of any such damage or condemnation exceeds $100,000 per property, then Buyer may, within ten (10) days of its receipt of
notice of such event, elect to terminate this Agreement by written notice to Seller and Escrow Agent. If the damage or condemnation is equal to or less than $100,000 per property or if the damage or condemnation exceeds $100,000 per property but
Buyer does not terminate this Agreement, then the parties shall proceed to close the transaction contemplated hereby, in which event any insurance or condemnation proceeds (excluding rental loss proceeds attributable to the period prior to the
Closing Date) shall inure to the benefit of Buyer and shall be assigned by Seller to Buyer at close of Escrow. In the event the parties proceed to close the transaction contemplated hereby, Seller shall pay any required deductible applicable to such
insurance coverage, or the Purchase Price shall be reduced by the amount of any such deductible. 
 9. GENERAL. 
 9.1 Successor Benefits; Nominee. This Agreement shall be binding upon and inure to the benefit of the heirs, successors, assigns and legally
appointed representatives of the parties hereto except as specifically provided herein to the contrary. Except for an assignment by Buyer in whole or in part to an affiliate of Buyer or entity wholly owned by Buyer or an affiliate of Buyer or an
assignment in connection with the execution of the provisions of Section 14, Buyer shall not be entitled to assign its interest under this Agreement without Seller’s prior written consent, which consent shall not be unreasonably withheld

 9.2 Time of Essence. Time shall be considered of the essence in this Agreement. 
  

 -25- 

 9.3 Severability. If any provision in this Agreement or any application thereof shall be invalid
or unenforceable, the remainder of this Agreement and any other application of such provision shall not be affected thereby and shall not be rendered invalid or unenforceable. 
 9.4 Notices. Any notice, consent, request or other communication required or permitted to be given hereunder shall be in writing, shall be:
(a) personally delivered; (b) delivered by Federal Express or other comparable overnight delivery service; (c) electronically transmitted via facsimile or email to the contact information detailed above; or (d) transmitted by
United States certified mail, return receipt requested with postage prepaid, and shall be addressed to the addresses first set forth above, or such other addresses as may be designated hereafter by either party. Unless otherwise specified, all
notices and other communications shall be deemed to have been duly given on the first to occur of actual receipt of the same or: (i) the date of delivery if personally delivered; (ii) one (1) business day after depositing the same
with the delivery service if by overnight delivery service; and (iii) three (3) business days following posting if transmitted by mail. 
 9.5 Work Product. Effective upon and in the event of a termination of this Agreement for any reason, Buyer shall return all materials and information given to it by Seller or any of their consultants during the Escrow, in the same
condition as delivered to Buyer. 
 9.6 Legal Expenses. In the event that a party employs attorney(s) to enforce the provisions of
this Agreement, the non-prevailing party agrees to pay the prevailing party’s reasonable attorney fees and all expenses reasonably incurred at, before or after trial and on appeal, whether or not taxable as costs, or in any bankruptcy
proceeding. 
 9.7 Amendment and Waiver. The parties hereto may by mutual agreement amend this Agreement in any respect, provided that
any such amendment shall be in writing, signed by both parties. The waiver of any condition under this Agreement shall not constitute a future waiver of said condition or any other condition. 
 9.8 Headings; Construction and Governing Law. The headings of the paragraphs herein are for the convenience of the parties only and shall not
affect the meanings or interpretations of the contents thereof. The laws of the State of California (without giving effect to its choice of law principles) shall govern the validity, performance, interpretation and enforcement of this Agreement.
Each party hereby consents to the jurisdiction and venue of any court of competent jurisdiction in San Jose, California. 
 9.9 Entire
Agreement. The entire agreement between Buyer and Seller is expressed herein. 
 9.10 Counterparts. This Agreement may be executed
in any number of counterparts and each such executed counterpart shall constitute one and the same agreement. 
 9.11 Further
Assurances. In addition to the respective obligations required to be performed under this Agreement, Seller and Buyer shall each perform, at the close of Escrow 

  

 -26- 

 
or from time to time thereafter, such other acts, and shall execute, acknowledge and/or deliver such other instruments, documents and other materials, as may
be reasonably required in order to consummate the transaction described in this Agreement. It is understood and agreed, inter alia, that the foregoing provisions shall not be deemed to require either party to perform any of the obligations of the
other. 
 9.12 Escrow Instructions. Without requiring separate signatures, Seller and Buyer hereby adopt the standard printed terms of
the escrow instructions now used by Escrow Agent, provided, however, that: 
 (a) any conflict between the printed form of escrow
instructions and the express terms of this Agreement shall be resolved in favor of the express terms of this Agreement; 
 (b) the following
provisions shall be deemed deleted from the printed form of escrow instructions, whether or not crossed out or otherwise obliterated by the Escrow Agent: 
 1. any provision granting the Escrow Agent a lien on the Properties or any portion thereof with respect to any amount owed by any party to the Escrow Agent as such or in consideration of its issuance, as insurer, of
the title policy; 
 2. any provision purporting to indemnify the Escrow Agent with respect to any liability which it may incur as a result
of its intentional or negligent acts or omissions while serving as Escrow Agent (including, without limitation, acts or omissions of an insurer); 
 3. any provision purporting to provide for a notice of default or other failure to perform or a cancellation of the transactions, including, but not limited to, any “13 day” cancellation notices; and 
 4. any provision under which the Escrow Agent is entitled to a fee for its service as such if this Agreement is terminated at or prior to the Closing.

 10. TAX REPORTING. Escrow Agent, as the party responsible for closing the transaction contemplated hereby within the meaning of
Section 6045(e)(2)(A) of the Internal Revenue Code of 1986, as amended (“the Code”), shall file all necessary information, reports, returns, and statements (collectively, the “Reports”) regarding the transaction required by
the Code including, but not limited to, the reports required pursuant to Section 6045 of the Code. Escrow Agent further agrees to indemnify and hold Buyer, Seller, and their respective attorneys and brokers harmless from and against any and all
claims, costs, liabilities, penalties, or expenses resulting from Escrow Agent’s failure to file the reports Escrow Agent is required to file pursuant to this Section 10. 
  

 -27- 

 11. CONFIDENTIALITY. All of the confidential information exchanged between Buyer and Seller is
confidential and is to be kept confidential by the parties, who may, however, disclose same, on a “need-to-know” basis, to their directors, officers, prospective investors and partners, employees, agents, advisors, attorneys, accountants,
consultants, bankers and financial advisors. Before disclosing any such information to such representatives or authorizing them to receive any such information, each party shall instruct them to keep that information confidential in the same manner.
Except with respect to any financial information provided by one party to the other, the foregoing provisions of this Article shall terminate at Closing if Buyer does in fact purchase the Properties. The term confidential information is all
information provided by a party except information available in public records, information that is or becomes generally available to the public because of release by the respective party or information that must be released under applicable law or
a valid, final judicial or administrative order. Notwithstanding the foregoing to the contrary, Seller acknowledges that Buyer’s ultimate parent is a publicly-held company subject to reporting requirements under the Securities Act of 1933 and
the Securities Exchange Act of 1944. Accordingly, nothing contained herein shall prevent Buyer from disclosing information related to the subject matter of this Agreement in accordance with federal securities laws, rules and regulations. 

12. WARN ACT. Unless Buyer or the Manager expressly agrees otherwise, none of the employees of the Hotels shall become employees of Buyer, as
of the Closing Date; instead, such employees shall become employees of a third party leasing company retained by the Manager. Seller shall not give notice under any applicable federal or state plant closing or similar act, including, if applicable,
the Worker Adjustment and Retraining Notification Provisions of 29 U.S.C., Section 2102, the parties having agreed that a mass layoff, as that term is defined in 29 U.S.C., 2101(a)(3), will not have occurred. Any liability for payment of all
wages, salaries and benefits, including, without limitation, accrued vacation pay, sick leave, bonuses, pension benefits, COBRA rights, and other benefits accrued or earned by and due to employees at the Hotels through the Cutoff Time, together with
F.I.C.A., unemployment and other taxes and benefits due with respect to such employees for such period, shall be charged to Seller, in accordance with the Existing Management Agreement, for the purposes of the adjustments to be made as of Closing.
All liability for wages, salaries and benefits of the employees accruing in respect of and attributable to the period from and after Closing shall be charged to Buyer, in accordance with the New Management Agreement. To the extent applicable, all
such allocations and charges shall be adjusted in accordance with the provisions of the Existing Management Agreement. 
 13.
EXCHANGE. Buyer or Seller may, at their respective option, exchange one or more properties for the Properties in order to effectuate a tax-free exchange under Section 1031 of the United States Internal Revenue Code of 1986, as amended.
The non-exchanging party agrees to reasonably cooperate in effectuating such exchange provided that: (i) the effectuation of any such exchange shall not impose any additional financial obligations or potential liability upon them or require
them to take title to any property other than the Properties; (ii) the effectuation of any such exchange shall not extend the closing date or constitute a condition precedent of any obligations hereunder nor shall the failure or termination of
any replacement property contract of Seller give rise to any right of Seller to terminate this Agreement; and (iii)

  

 -28- 

 
the exchanging party hereby agrees to indemnify and hold the other party harmless from and defend them against any and all liabilities, claims, costs and
expenses arising out of or resulting from their involvement with such exchange. Additionally, Seller may distribute the Properties out to its individual members so that the members can take advantage of IRC Section 1031 exchange provisions
individually; provided, however, Seller shall be responsible for all costs, including any additional escrow or closing fees charged by the Title Company, resulting from such distributions; and provided, further, that any Closing documents to be
executed by Seller shall be executed by Seller and either, Allan V. Rose, individually, or each of the constituent partners or members of Seller. 
 14. FRANCHISE AND MANAGEMENT. 
 14.01 Franchise Agreement. Seller has entered into the Existing Franchise Agreements
with Marriott International, Inc. or an affiliate thereof (the “Franchisor”) governing the use of the Hotels as Residence Inn by Marriott and Fairfield Inn, as applicable, (the “Brand”). At the Closing, Buyer and the Franchisor
shall enter into a new franchise agreement for each Property, effective as of the Closing Date, replacing the Existing Franchise Agreements and containing terms and conditions acceptable to Buyer. Buyer shall be responsible for the payment and
completion of any Franchisor mandated product improvement plan. If Buyer pays the cost for the product improvement plan report (the “PIP Fee”), then, in the event this Contract is terminated and Closing does not occur (other than by reason
of Buyer’s default), Seller shall reimburse Buyer for the PIP Fee. Seller and the Franchisor shall terminate the Existing Franchise Agreements, as of the Closing Date, and Buyer shall be solely responsible for all claims and liabilities arising
thereunder. Seller and Buyer shall use all commercially reasonable efforts to obtain a release of Seller and any other guarantors as described in Section 5.2(d) above. Buyer agrees to apply for and use reasonable efforts, and Seller shall
cooperate with Buyer, to obtain the new franchise agreement, together with the assignment to Buyer of all waivers of any brand standard necessary or appropriate for the operation of the Hotels under the Brand. It shall be a condition to Closing for
Buyer and Seller that the Franchisor provide the foregoing consent; provided, however, that Buyer shall not be entitled, as a condition to Closing, to require amendments to the Existing Franchise Agreements (or to require a new franchise agreement
(the “New Franchise Agreement”)) that contains economic terms more favorable to the owner or franchisee than the economic terms of the Existing Franchise Agreements or that differ in any other material respect from the form of franchise
agreement which Buyer and Franchisor have negotiated previously as their standard form of franchise agreement (to the extent such standard forms are applicable under the circumstances). Buyer shall be responsible for all costs related to the
termination of the Existing Franchise Agreements and the execution of a new franchise agreement, including but not limited to, the payment of license, application, transfer and similar fees thereunder. Seller shall use best efforts to promptly
provide all information required by the Franchisor in connection with each such new franchise agreement, and Seller and Buyer shall diligently pursue obtaining each the same. 
 14.02 Management Agreement. The Hotels are currently managed by Dimension Development Company, Inc. (“Manager”) pursuant to that certain
agreement dated May 8, 2001 (the “Existing Management Agreement”) between Seller and Manager. Seller, at its sole cost and expense, shall terminate the Existing Management Agreement at Closing. 
  

 -29- 

 14.03 Other Purchase Agreement. Concurrently with the execution of this Agreement, Buyer is
entering into a purchase contract (the “Hampton Contract”) with RT Clarita Two, L.P., a Delaware limited partnership (the “Hampton Seller”) for the purchase of the Hampton Inn Los Angeles/Santa Clarita hotel located at 5259 The
Old Road, Santa Clarita, CA 91381. Buyer and Seller acknowledge and agree that the closings under this Agreement and the Hampton Contract must occur within a reasonable timeframe from one another, if not simultaneously, that a default by either
party under this Agreement that remains uncured in accordance with the terms of this Agreement shall entitle the non-defaulting party to terminate the Hampton Contract on notice to the other, and that a default by either party under the Hampton
Contract shall entitle the non-defaulting party to terminate this Agreement on notice to the other. In addition, in the event of any occurrence or exercise of any right which results in the termination of the Hampton Contract prior to Closing,
either party shall have the right to terminate this Agreement upon notice to the other, in which event, unless such termination resulted from Buyer’s default, the Deposit shall be paid to Buyer. Notwithstanding the foregoing, in the event of
termination of this Agreement and the Hampton Contract as a result of Buyer’s default under one, but not both, of such Agreements, the selling party shall only be entitled to retain the Deposit for the Agreement under which Buyer shall have
defaulted. Notwithstanding the foregoing, in the event of a default by Seller, under one, but not both, of such Agreements, Buyer shall be entitled to either (i) terminate both this Agreement and the Hampton Contract, or (ii) pursue
specific performance of both this Agreement and the Hampton Contract. 
 IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of
the Opening of Escrow. 
 [See attached signature pages] 
  

 -30- 

					
	SELLER:
	
	RT CLARITA, L.P., a Delaware limited partnership
	
	BY: Clarita Hotel Corp., its General Partner
			
		 	By:	 	 /s/    Sam Friedman

		 		 	Sam Friedman, Vice President
	
	Date: August 29, 2008

  

 -31- 

					
	BUYER:
	
	Apple Nine Hospitality Ownership, Inc., a Virginia corporation
			
		 	By:	 	 /s/    Justin G. Knight

		 	Name:	 	Justin G. Knight
		 	Title:	 	President
	
	Date: August 29, 2008

  

 -32-Exhibit 10.37

 Exhibit 10.37 
 Hotel: Beaumont Residence Inn 
 PURCHASE CONTRACT 
 between 
 RI BEAUMONT PROPERTY, L.P.
(“SELLER”) 
 AND 
 APPLE NINE HOSPITALITY OWNERSHIP, INC. 
 (“BUYER”) 
 AND 
 joined in by 
 W.I. REALTY I, L.P., d/b/a 
 WESTERN INTERNATIONAL 
 (“WESTERN”) 
 Dated:
September 11, 2008 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.
	ARTICLE I	  	 DEFINED TERMS
	  	1
			
	 1.1
	  	Definitions	  	1
			
	ARTICLE II	  	 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 III	  	 REVIEW PERIOD
	  	9
			
	 3.1
	  	Review Period	  	9
			
	 3.2
	  	Due Diligence Examination	  	10
			
	 3.3
	  	Restoration	  	10
			
	ARTICLE IV	  	 SURVEY AND TITLE APPROVAL
	  	10
			
	 4.1
	  	Survey	  	10
			
	 4.2
	  	Title	  	10
			
	 4.3
	  	Survey or Title Objections	  	11
			
	ARTICLE V	  	 ASSIGNMENT OF FRANCHISE AGREEMENT
	  	12
			
	ARTICLE VI	  	 COMMISSIONS
	  	12
			
	ARTICLE VII	  	 REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	13
			
	 7.1
	  	Seller’s and Western’s Representations, Warranties and Covenants	  	13
			
	 7.2
	  	Buyer’s Representations, Warranties and Covenants	  	16
			
	 7.3
	  	Survival	  	16
			
	ARTICLE VIII	  	 ADDITIONAL COVENANTS
	  	16
			
	 8.1
	  	Subsequent Developments	  	16
			
	 8.2
	  	Intentionally Deleted	  	17
			
	 8.3
	  	Plans and Specifications	  	17
			
	 8.4
	  	Intentionally Deleted	  	17
			
	 8.5
	  	Inspections	  	17
			
	 8.6
	  	Punch List	  	17
			
	 8.7
	  	Intentionally Deleted	  	17
			
	 8.8
	  	Construction Warranty	  	17
			
	 8.9
	  	Other Obligations of Seller Before Closing	  	17
			
	 8.10
	  	Third Party Consents	  	18
			
	 8.11
	  	Access to Financial Information	  	18
			
	 8.12
	  	Bulk Sales	  	19
			
	 8.13
	  	Indemnification	  	19
			
	 8.14
	  	Section 1031 Exchange	  	21

					
			
	 8.15
	  	Liquor Licenses	  	21
			
	 8.16
	  	Manager	  	22
			
	ARTICLE IX	  	 CONDITIONS FOR CLOSING
	  	22
			
	 9.1
	  	Buyer’s Conditions for Closing	  	22
			
	 9.2
	  	Seller’s Conditions for Closing	  	23
			
	ARTICLE X	  	 CLOSING AND CONVEYANCE
	  	24
			
	 10.1
	  	Closing	  	24
			
	 10.2
	  	Seller’s and Western’s Deliveries	  	24
			
	 10.3
	  	Buyer’s Deliveries	  	25
			
	ARTICLE XI	  	 COSTS
	  	26
			
	 11.1
	  	Seller’s Costs	  	26
			
	 11.2
	  	Buyer’s Costs	  	26
			
	ARTICLE XII	  	 ADJUSTMENTS
	  	26
			
	 12.1
	  	Adjustments	  	26
			
	 12.2
	  	Reconciliation and Final Payment	  	27
			
	 12.3
	  	Employees	  	27
			
	ARTICLE XIII	  	 CASUALTY AND CONDEMNATION
	  	28
			
	 13.1
	  	Risk of Loss; Notice	  	28
			
	 13.2
	  	Buyer’s Termination Right	  	28
			
	 13.3
	  	Procedure for Closing	  	28
			
	ARTICLE XIV	  	 DEFAULT REMEDIES
	  	29
			
	 14.1
	  	Buyer Default	  	29
			
	 14.2
	  	Seller Default	  	29
			
	 14.3
	  	Attorney’s Fees	  	29
			
	ARTICLE XV	  	 NOTICES
	  	30
			
	ARTICLE XVI	  	 MISCELLANEOUS
	  	31
			
	 16.1
	  	Performance	  	31
			
	 16.2
	  	Binding Effect; Assignment	  	31
			
	 16.3
	  	Entire Agreement	  	31
			
	 16.4
	  	Governing Law	  	31
			
	 16.5
	  	Captions	  	31
			
	 16.6
	  	Confidentiality	  	31
			
	 16.7
	  	Closing Documents	  	31
			
	 16.8
	  	Counterparts	  	31
			
	 16.9
	  	Severability	  	31
			
	 16.10
	  	Interpretation	  	32
			
	 16.11
	  	(Intentionally Omitted)	  	32
			
	 16.12
	  	Further Acts	  	32
			
	 16.13
	  	Joint and Several Obligations	  	32
			
	 16.14
	  	Notice of Proposed Listing	  	32

  

 ii 

					
			
	 16.15
	  	Title to Property	  	32
			
	ARTICLE XVII	  	 JOINDER BY WESTERN
	  	32

  

			
	 EXHIBITS:
	  	
		
	Exhibit A	  	Legal Description
	Exhibit B	  	(Intentionally Omitted)
	Exhibit C	  	(Intentionally Omitted)
	Exhibit D	  	(Intentionally Omitted)
	Exhibit E	  	Environmental Reports
	Exhibit F	  	(Intentionally Omitted)
	Exhibit G	  	Escrow Agreement
	Exhibit H	  	Construction Warranty
	Exhibit I	  	(Intentionally Omitted)
	Exhibit J	  	Management Agreement

  

 iii 

 PURCHASE CONTRACT 
 This PURCHASE CONTRACT (this “Contract”) is made and entered into as of September 11, 2008, by and between RI BEAUMONT PROPERTY, L.P., a
Texas limited partnership (“Seller”), with its principal office at c/o Western International, 13647 Montfort Drive, Dallas, Texas 75240, and APPLE NINE HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with its principal office at 814
East Main Street, Richmond, Virginia 23219, or its affiliates or assigns (“Buyer”) and, to the extent provided herein, joined in by W. I. REALTY I, L.P., d/b/a WESTERN INTERNATIONAL, a Texas limited partnership (“Western”), with
its principal office at 13647 Montfort Drive, Dallas, Texas 75240. 
 RECITALS 
 A. Seller is the fee simple owner of the 133-room Residence Inn by Marriott hotel and the land upon which hotel is located, in Beaumont, Texas and
identified in Exhibit A attached hereto and incorporated herein by reference. 
 B. Buyer is desirous of purchasing the land and hotel
and Seller is desirous of selling the the 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 I 
 DEFINED TERMS 
 1.1 Definitions. The following capitalized terms when used in this Agreement shall have the meanings set forth below unless the context otherwise requires: 
 “Additional Deposit” shall mean $0.00 
 “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. 
 “Architect” shall mean the architect for the Hotel, Mayse & Associates, Inc. 
 “Brand”
shall mean Residence Inn by Marriott, 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 Commonwealth of Virginia or 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, EBCO General
Contractor, Ltd. 
 “Contracts, Plans and Specs” shall mean the Plans and Specifications and all other contracts, plans,
drawings, specifications, surveys, soil reports, engineering reports, inspection reports, and other technical descriptions and reports. 
 “Deed” shall have the meaning set forth in Section 10.2(a). 
 “Deposits” shall mean, to the
extent assignable, all prepaid rents and deposits (including, without limitation, any reserves for replacement of FF&E and for capital repairs and/or improvements), including, but not limited to, 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). 
 “Effective Time” shall have the meaning set forth in Section 10.1. 
  

 2 

 “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). 
 “Exception Documents” shall have the meaning set forth in Section 4.2. 
 “FF&E” shall mean all tangible personal property and fixtures of any kind (other than personal property (i) owned by guests of
the Hotel, (ii) leased by Seller pursuant to an FF&E Lease or (iii) constituting personal property owned by the Manager) 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. 
 “Force Majeure” shall mean (i) strikes, lockouts or labor disputes, (ii) the inability
through no fault of Seller to obtain labor or materials or reasonable substitutes therefor, (iii) acts of God and adverse weather conditions, (iv) enemy or hostile governmental action or acts of terrorism, (v) governmental
restrictions such as embargoes, (vi) civil commotion, (vii) fire or other casualty or (viii) other conditions similar to those enumerated above that are beyond the reasonable control of Seller, but in each case excluding any such
events or conditions that merely result in increased costs to Seller. 
 “Franchise Agreement” shall mean the franchise
agreement dated as of August, 9, 2007, between Seller and the Franchisor. 
 “Franchisor” shall mean Marriott International,
Inc. 
 “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 “Residence Inn by Marriott Beaumont.” 
 “Hotel Contracts”
shall have the meaning set forth in Section 10.2(c). 
  

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 “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). 
 “Knowledge” or “known to” or similar statements shall mean, with reference to
Seller or Western, the actual knowledge of Michael Mahoney, B. Gene Carter or Mark Van Amerongen, and the knowledge after reasonable inquiry by Seller and Western of the general manager of the Hotel and regional manager of the Franchisor.

 “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” shall mean the management agreement to be entered into by Buyer and the Manager in the form of the management
agreement attached hereto as Exhibit J. 
 “Manager” shall mean Texas Western Management Partners, L.P., a Texas
limited partnership. 
 “Pending Claims” shall have the meaning set forth in Section 7.1(e). 
  

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 “Other Property” shall have the meaning set forth in Section 16.14. 
 “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. 
 “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. 
 “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. 
 “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
Seller’s possession or control, or to which 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, 

  

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the Improvements or the FF&E, but excluding information as to the costs incurred in the construction of the Hotel and the installation of FF&E,
Seller’s partnership tax returns, financial information, business plans and projections prepared for internal partnership disclosure or informational purposes and partner’s K-1, provided that Seller shall furnish to Buyer (and the term
“Records” shall include) a list of the general contractors, architects and engineers providing goods and/or services in connection with the construction of the Hotel, all construction warranties and guaranties 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 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 

  

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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. 
 “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. 
 “Western Indemnification Agreement” shall have the meaning set forth in Article XVII. 
  

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 ARTICLE II 
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; 
 EARNEST MONEY DEPOSIT 
 2.1 Purchase and Sale. Seller agrees to sell and convey to Buyer or its Affiliates and/or assigns, and Buyer or its assigns agrees to purchase
from Seller, the Property, in consideration of the Purchase Price and upon the terms and conditions hereof. All of the Property shall be conveyed, assigned, and transferred to Buyer at Closing, free and clear of all mortgages, liens, encumbrances,
licenses, franchises (other than any hotel franchises assumed by Buyer), concession agreements, security interests, prior assignments or conveyances, conditions, restrictions, rights-of-way, easements, encroachments, claims and other matters
affecting title or possession, except for the Permitted Exceptions. 
 2.2 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 Sixteen Million Nine Hundred Thousand and No/100 Dollars ($16,900,000.00) (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 Seller do not agree, each party shall be free to allocate the Purchase Price to such items as they deem appropriate, subject to and in accordance with
applicable laws. 
 2.4 Payment. The portion of the Purchase Price, less the Earnest Money Deposit and interest earned thereon, if
any, which Buyer elects to have applied against the Purchase Price (as provided below) 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 Purchase Price on behalf of Buyer. 
 2.5 Earnest Money Deposit. 
 (a)
Within two (2) Business Days following the full execution and delivery of this Contract, Buyer shall deposit the sum of One Hundred Thousand and No/100 Dollars ($100,000.00) in cash, certified bank check or by wire transfer of immediately
available funds (together with all interest earned thereon, the “Earnest Money Deposit”) with the Title Company (“Escrow Agent”). If, pursuant to the provisions of Section 3.1 of this Contract, Buyer elects to terminate this
Contract at any time prior to the expiration of the Review Period, then the Escrow Agent shall return the Earnest Money Deposit to Buyer promptly upon written notice to that effect from Buyer. If Buyer does not elect to terminate this Contract on or
before the expiration of the Review Period, Buyer shall, within three (3) Business Days after the expiration of the Review Period deposit the Additional Deposit with the Escrow Agent. The Initial Deposit and the Additional Deposit, and all
interest accrued thereon, shall hereinafter be referred to as the “Earnest Money Deposit.” 
  

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 (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. Buyer’s Federal Tax Identification Number is
26-1379528. Seller’s Federal Tax Identification Number is 26-0667416. 
 ARTICLE III 
 REVIEW PERIOD 
 3.1 Review
Period. Buyer shall have a period through 6:00 p.m. Eastern Time on the date that is twenty-five (25) days after the date of this Contract, unless a longer period of time is otherwise provided for in this Contract and except as otherwise
agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey, construction, physical condition, structural, mechanical, environmental, economic, permit status, franchise status, financial and other documents
and information related to the Property. Within two (2) Business Days following the date of this Contract, Seller, at Seller’s sole cost and expense, will deliver to Buyer (or make available at the Hotel) for Buyer’s review, to the
extent not previously delivered to Buyer, true, correct and complete copies of the following, together with all amendments, modifications, renewals or extensions thereof: 
 (a) All real estate and personal property tax statements with respect to the Land and notices of appraised value for the Real Property for the current year (if available) and each of the two (2) calendar years
prior to the current year; 
 (b) Engineering, mechanical, architectural and construction plans, drawings, specifications and contracts
(except that Seller may redact any information in contracts for the construction of the Hotel or the purchase of FF&E regarding the costs thereof), 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; 
 (c) All agreements for real estate commissions, brokerage
fees, finder’s fees or other compensation payable by Seller in connection therewith; and 
 (d) All notices received by Seller 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 by Seller from governmental authorities at any time that relate to any
noncompliance or violation of law that has not been corrected. 
  

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 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 Hotel and the plans and specifications for development of the Hotel. At any time during the Review Period, Buyer may, in its sole and absolute discretion, elect not to proceed with the purchase of the
Property for any reason whatsoever by giving written notice thereof to 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 and from time to
time, from and after the date hereof 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 advance (not less than 24 hours) 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 the 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 or the Franchise Agreement. 
 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 IV 
 SURVEY AND TITLE APPROVAL 
 4.1 Survey. Within two days after execution
of this Contract by Buyer and Seller, Seller shall deliver to Buyer true, correct and complete copies of the most recent survey of the Land. In the event that an update of the survey or a new survey (such updated or new survey being referred to as
the “Survey”) is desired by Buyer, then Buyer shall be responsible for all costs related thereto. 
 4.2 Title. Within two
days after execution of this Contract by Buyer and Seller, Seller shall deliver to Buyer Seller’s existing title insurance commitment, including copies of all documents referred to therein, for the Real Property. Buyer’s obligations under
this Contract are conditioned upon Buyer being able to obtain (i) a Commitment for Title Insurance (the “Title 

  

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Commitment”) issued by LandAmerica American Title Company, Attn: Debby Moore, 2505 N. Plano Road, Ste. 3100, Richardson, Texas 75082 (the “Title
Company”), for the most recent standard form of owner’s policy of title insurance in the state in which the Real Property is located, covering the Real Property, setting forth the current status of the title to the Real Property, showing
all liens, claims, encumbrances, easements, rights of way, encroachments, reservations, restrictions and any other matters affecting the Real Property and pursuant to which the Title Company agrees to issue to Buyer at Closing an Owner’s Policy
of Title Insurance on the most recent form of ALTA owner’s policy available in the state in which the Land is located (or if an ALTA form of policy is not issued in such state, the form customarily issued in such state) and, to the extent
applicable and available in such state, extended coverage, comprehensive, access, single tax parcel, contiguity, Fairway and such other endorsements as may be required by Buyer (collectively, the “Title Policy”); and (ii) true,
complete, legible and, where applicable, recorded copies of all documents and instruments (the “Exception Documents”) referred to or identified in the Title Commitment, including, but not limited to, all deeds, lien instruments, leases,
plats, surveys, reservations, restrictions, and easements affecting the Real Property. If requested by Seller, Buyer shall promptly provide Seller with a copy of the Title Commitment issued by the Title Company. 
 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 before the expiration of the 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(i). If Buyer disapproves any condition of title, survey or other matters by written objection to Seller on or before the expiration of the 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, 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 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 (i) exceptions and title defects arising after the Review Period, (ii) 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
(iii) as provided in Section 9.1(j)) 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 (“Seller Liens”), each of which shall be paid in full by Seller and released at Closing. 
  

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 ARTICLE V 
 ASSIGNMENT OF FRANCHISE AGREEMENT 
 Seller has entered into the Franchise Agreement governing the use
of the Brand for the Hotel. At the Closing, Seller shall assign its interest in the Franchise Agreement to Buyer, and Buyer’s shall assume Seller’s obligations thereunder arising or required to be performed on and after the Closing Date,
subject to the consent of Franchisor to such assignment and assumption and subject to such amendments thereto as may be required or otherwise agreed to by Buyer (including, without limitation, such amendments as may be required to accommodate
Buyer’s and/or Buyer’s Affiliates’ REIT structure). Notwithstanding the foregoing, at Buyer’s option, in lieu of Seller’s assigning to Buyer Seller’s interest in the Franchise Agreement, Buyer and the Franchisor may
enter into a new franchise agreement, effective as of the Closing Date, replacing the existing Franchise Agreement and containing terms and conditions acceptable to Buyer. In such case, Seller and the Franchisor shall terminate the existing
Franchise Agreement, as of the Closing Date, and Seller shall be solely responsible for all claims and liabilities arising thereunder. Buyer agrees to apply for and use reasonable efforts, and Seller shall cooperate with Buyer, to obtain the
Franchisor’s written consent to the assignment to Buyer of the Franchise Agreement (or to a new franchise agreement, as the case may be), together with the assignment to Buyer of all waivers of any brand standard necessary or appropriate for
the operation of the Hotel under the Brand. It shall be a condition to Closing for Buyer and Seller that the Franchisor provide the foregoing consent; provided, however, that Buyer shall not be entitled, as a condition to Closing, to require
amendments to the Franchise Agreement (or to require a new franchise agreement) that contains economic terms more favorable to the owner or franchisee than the economic terms of the existing Franchise Agreement or that differ in any other material
respect from the form of franchise agreement which Buyer and Franchisor have negotiated previously as their standard form of franchise agreement (to the extent such standard forms are applicable under the circumstances). Seller and Buyer shall each
be responsible for paying for one half of all costs (other than Buyer’s attorney’s fees and extraordinary costs resulting from Buyer’s and/or Buyer’s Affiliates’ REIT structure, which shall be paid by Buyer) related to the
assignment and amendment of the Franchise Agreement (or to the termination of the Franchise Agreement and the execution of a new franchise agreement), including but not limited to, the payment of license, application, transfer and similar fees
thereunder, provided that Seller shall pay all costs and fees of its attorneys and consultants and all costs associated with any releases or other provisions requested by or for the benefit of Seller, in each case, incurred in connection with such
assignment and/or termination and execution of any new franchise agreement. Seller shall use best efforts to promptly provide all information required by the Franchisor in connection with each such assignment and amendment (or in connection with a
new franchise agreement), and Seller and Buyer shall diligently pursue obtaining each the same. 
 ARTICLE VI 
 COMMISSIONS 
 Seller and Buyer each
represents and warrants to the other that it has not engaged any broker, finder or other party in connection with the transaction contemplated by this Contract, other than Western who is representing Seller. Seller agrees to pay, pursuant to a
separate agreement between Seller and Western, a real estate sales commission if, as and when the Closing occurs. Buyer and Seller each agree to save and hold the other harmless from any and 

  

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all losses, damages, liabilities, costs and expenses (including, without limitation, attorneys’ fees) involving claims made by any other agent, broker,
or other person by or through the acts of Buyer or Seller, respectively, in connection with this transaction. 
 ARTICLE VII

 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 7.1 Seller’s and Western’s Representations, Warranties and Covenants. Seller hereby represents, warrants and covenants to Buyer and, with respect to representations, warranties and covenants made by
Western or made jointly by Seller and Western, Seller and Western hereby jointly and severally represent, warrant and covenant, in each case, as follows: 
 (a) Authority; No Conflicts. Seller is a limited partnership duly formed and validly existing in the State of Texas. Western is a limited partnership duly formed and validly existing in the State of Texas. Each
of Seller and Western 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 or Western of this Contract, and this Contract is hereby binding and enforceable against Seller and Western. Neither the execution nor
the performance of, or compliance with, this Contract by Seller or Western 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, Western or to the Hotel. 
 (b) FIRPTA. Seller
is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those items are defined in the Internal Revenue Code and Income Tax Regulations). 
 (c) Bankruptcy. Neither Seller, Western nor, 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

  

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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. 
 (e) Pending Claims. Seller has not received any written notice of: (i) any claims, demands, litigation, proceedings or governmental
investigations pending or threatened against Seller, Western the Manager or any Affiliate of any of them (collectively, “Seller Parties”) or related to the Property, (ii) any special assessments or extraordinary taxes except as set
forth in the Title Commitment, and (iii) any pending or threatened condemnation or eminent domain proceeding which would affect the Property or any part thereof. There are no: pending arbitration proceedings or unsatisfied arbitration awards,
or judicial proceedings or orders respecting awards, which might become a lien on the Property or any portion thereof, 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 Property or might become a lien on the Property (collectively, the “Pending Claims”). 
 (f) Environmental. With respect to environmental matters, to Seller’s knowledge and except as disclosed in Exhibit E or in any “Phase
One” environmental assessment report obtained by Buyer with respect to the Real Property during the Review Period, (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, (ii) no portion of the Real 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 to be constructed on the Land, all of which shall be stored on the Property in strict accordance with applicable Environmental Requirements and shall 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, (v) there is not currently and never has been any mold, fungal or other microbial growth in or on the Real Property, or
conditions within buildings, structures or mechanical equipment serving such buildings, 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) there are no reports or other documentation regarding the environmental condition of the Real Property in the possession of Seller or Seller’s Affiliates,
consultants, contractors or agents . As used in this Contract: “Hazardous Materials” means (1) “hazardous wastes” as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time
(“RCRA”), (2) “hazardous substances” as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.), as amended by the Superfund Amendment and
Reauthorization Act of 1986 and as otherwise amended from time to time (“CERCLA”); (3) “toxic substances” as defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”),
(4) “hazardous materials” as defined by the Hazardous Materials Transportation Act, as amended from time to time (“HMTA”), (5) asbestos, oil or other petroleum products, radioactive materials, urea formaldehyde foam
insulation, radon gas and transformers or other equipment that contains dielectric fluid containing polychlorinated 

  

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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, at the
Closing Seller shall have 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 shall be 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 available at the
boundaries of the Land and Seller is entitled to connect the Hotel thereto, and upon connection to the Hotel and payment of all connection or “tap-on,” usage and similar fees to be paid by Seller, such utilities shall be sufficient and
available to service the Hotel. 
 (i) Licenses, Permits and Approvals. The Real Property complies with, and upon construction of the
Hotel the Real Property shall 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 contemplated to be operated. Seller has received, or by the Closing shall have received, all licenses, permits and approvals required or needed for the lawful conduct, occupancy and operation of the business of the Hotel, and each
license and permit will be received and in full force and effect as of the Closing. No licenses, permits or approvals necessary for the lawful conduct, occupancy or operation of the business of the Hotel shall require any approval of a governmental
authority for transfer of the Property. 
 (j) 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. 
 (k) Construction of the Hotel. Seller has
(i) constructed 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) caused the Hotel to be fully equipped with the FF&E and otherwise fully furnished and
stocked with merchandise, supplies, inventory 

  

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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 remains 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. 
 (l) (Intentionally Omitted). 
 (m) Management Agreement and Franchise Agreement. There are no 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, other than the Franchise Agreement. 
 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 Closing Date all necessary consents of the Board of Directors of Buyer and is fully authorized to complete the transactions contemplated by this Contract. No other consent or approval of any person, entity or governmental
authority is required for the execution, delivery or performance by Buyer of this Contract, and this Contract is hereby binding and enforceable against Buyer. 
 (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 two (2) years and shall not be deemed to merge into or be waived by any Seller’s Deed or any other closing documents. 
 ARTICLE VIII 
 ADDITIONAL COVENANTS

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

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 8.2 Intentionally Deleted. 
 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. 
 8.4 Intentionally Deleted. 
 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. Because the Hotel has been recently completed, 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 fifty percent (50%) 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 Closing. 
 8.7 Intentionally Deleted. 
 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 perform and comply with all of the following: 
 (a) Advise Buyer
promptly of any litigation, arbitration, or administrative hearing before any court or governmental agency concerning or affecting the Property which is instituted or threatened after the date of this Contract or if any representation or warranty
contained in this Contract shall become false; 
  

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 (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; 

(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, operation, use, occupancy or maintenance of the Property 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 Seller’s 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”); provided, however, the consents required under Article V shall be handled as provided therein.

 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 to the extent necessary to enable Buyer’s representatives to prepare audited financial statements in conformity with Regulation S-X of the
Securities and Exchange Commission (the “SEC”) and other applicable rules and regulations of the SEC and to enable them to prepare a registration statement, report or disclosure statement for filing with the SEC on behalf of Buyer or its
Affiliates, whether before or after Closing and regardless of whether such information is included in the Records to be transferred to Buyer hereunder. Seller shall also provide to Buyer’s representative a signed representation letter in form
and substance reasonably acceptable to Seller sufficient to enable an independent public accountant to render an opinion on the financial statements related to 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. 
  

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 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 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 breach of any representation, warranty, covenant or agreement of Seller contained in this Contract; 
 (iii) any liability or obligation of Seller not expressly assumed by Buyer pursuant to this Contract; 
 (iv) any claim made or asserted by an employee of Seller arising out of Seller’s decision to sell the Property; and 
 (v) the conduct and operation by or on behalf of Seller of 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 breach of any representation, warranty, covenant or agreement of Buyer contained in this Contract; 
 (ii) the conduct and operation by Buyer of its business at the Hotel after the Closing; and 
  

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

 (c) Indemnification Procedure for Claims of Third Parties. Indemnification, with respect to claims resulting from the assertion of
liability by those not parties to this Contract (including governmental claims for penalties, fines and assessments), shall be subject to the following terms and conditions: 
 (i) The party seeking indemnification (the “Indemnified Party”) shall give prompt written notice to the party or parties from
which it is seeking indemnification (the “Indemnifying Party”) of any assertion of liability by a third party which might give rise to a claim for indemnification based on the foregoing provisions of this Section 8.13, 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 

  

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Indemnified Party, such approval not to be unreasonably withheld, delayed or conditioned. If the defense of the Legal Action is handled by the Indemnified
Party under the provisions of this subsection, the Indemnifying Party shall pay all legal and other expenses reasonably incurred by the Indemnified Party in conducting such defense. 
 (iv) In any Legal Action initiated by a third party and defended by the Indemnified Party (w) the Indemnified Party shall have the
right to be represented by advisory counsel and accountants, at its own expense, (x) the Indemnifying Party shall keep the Indemnified Party fully informed as to the status of such Legal Action at all stages thereof, whether or not the
Indemnified Party is represented by its own counsel, (y) the Indemnifying Party shall make available to the Indemnified Party and its attorneys, accounts and other representatives, all books and records of Seller relating to such Legal Action
and (z) the parties shall render to each other such assistance as may be reasonably required in order to ensure the proper and adequate defense of such Legal Action. 
 (v) In any Legal Action initiated by a third party and defended by the Indemnifying Party, the Indemnifying Party shall not make
settlement of any claim 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 Section 1031-Exchange. Seller and Buyer may elect to effect a tax-deferred exchange transaction
satisfying the requirements of Section 1031 of the Internal Revenue Code, as amended. Seller and Buyer each agree to reasonably cooperate with each other in facilitating Seller’s or Buyer’s, as the case may be, satisfaction of the
requirements for such tax-deferred exchange; provided, however, (i) in no event shall the cooperating party incur any liability in connection with the other’s tax-deferred exchange; (ii) although Seller or Buyer may assign this
Contract to a qualified intermediary in connection with the tax-deferred exchange, Seller or Buyer, as the case may be, shall not be released or relieved of its obligation to perform in accordance with the terms of this Contract; (iii) the
cooperating party shall not be required to incur any additional cost or expense including, but not limited to, attorneys’ fees, in connection with or attributable to the tax-deferred exchange, it being understood and agreed that the cooperating
party shall be indemnified and held harmless by the exchanging party from and against any and all of such additional costs and expenses and (iv) no delay in Closing shall result from Seller’s or Buyer’s tax-deferred exchange.

 8.15 Liquor Licenses. As a condition to Buyer’s obligations under this Contract, (i) the Manager or an Affiliate thereof
approved by Buyer shall have or shall have obtained all liquor licenses and alcoholic beverage licenses 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 Licenses, (ii) if permitted under the laws of the jurisdiction in which the Hotel is located, the Manager shall execute and file
any and all necessary forms, applications and other documents (and Seller shall cooperate with the Manager in filing such forms, applications and other documents) with the appropriate liquor and alcoholic beverage authorities prior to Closing so
that the Liquor Licenses remain in full force and effect upon completion of Closing. 
  

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 8.16 Manager. Inasmuch as the Manager is an Affiliate of Seller, Seller shall cause the Manager to
enter into the Management Agreement at the Closing and to comply with any other provisions of this Contract relating to the Manager. 
 ARTICLE IX 
 CONDITIONS FOR CLOSING 
 9.1 Buyer’s Conditions for Closing. Unless otherwise waived in writing, and without prejudice to Buyer’s right to cancel this Contract during the Review Period, the duties and obligations of Buyer to
proceed to Closing under the terms and provisions of this Contract are and shall be expressly subject to strict compliance with, and satisfaction or waiver of, each of the conditions and contingencies set forth in this Section 9.1, each of
which shall be deemed material to this Contract. In the event of the failure of any of the conditions set forth in this Section 9.1 or of any other condition to Buyer’s obligations provided for in this Contract, which condition is not
waived in writing by Buyer, Buyer shall have the right at its option to declare this Contract terminated, in which case the Earnest Money Deposit and any interest thereon shall be immediately returned to Buyer and each of the parties shall be
relieved from further liability to the other, except as otherwise expressly provided herein, with respect to this Contract. 
 (a) All of
Seller’s representations and warranties contained in or made pursuant to this Contract shall be true and correct in all material respects as if made again on the Closing Date. 
 (b) Buyer shall have received all of the instruments and conveyances listed in Section 10.2. 
 (c) Seller shall have performed, observed and complied in all material respects with all of the covenants, agreements, closing requirements and
conditions required by this Contract to be performed, observed and complied with by Seller, as and when required hereunder. 
 (d) All Liquor
Licenses shall be in full force and effect and shall remain in full force and effect following Closing and shall have been or shall be transferred to, or new Liquor Licenses issued to, Manager or an Affiliate thereof approved by Buyer at or as of
Closing, and Buyer shall have received satisfactory evidence thereof. 
 (e) Third Party Consents in form and substance satisfactory to Buyer
shall have been obtained and furnished to Buyer. 
 (f) (Intentionally Omitted) 
 (g) The Hotel shall be Substantially Completed. 
 (h) Seller’s interest in the Franchise Agreement shall have been assigned to Buyer (or Buyer and the Franchisor shall have entered into a new franchise agreement), as provided in Article V, and the Franchise Agreement as so assigned
(or the new franchise agreement) shall be in full force and effect. 
  

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 (i) Buyer shall have obtained an as-built plat of survey of the Property as 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 and adversely affect the use, operation or value of the Property. 
 (j) 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. 
 (k) Buyer and the Manager shall have entered into the Management Agreement in substantially the form attached hereto as Exhibit J. 
 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.

  

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 ARTICLE X 
 CLOSING AND CONVEYANCE 
 10.1 Closing. Unless otherwise agreed by Buyer and Seller, the
Closing on the Property shall occur on or before October 15, 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 Closing Date (the “Effective Time”).

 10.2 Seller’s and Western’s Deliveries. At Closing, Seller or Western, as applicable, 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 or Western, as applicable, prior to such Closing). 
 (a) Deed. A Special Warranty Deed conveying to
Buyer fee simple title to the Real Property, subject only to the Permitted Exceptions (the “Deed”). 
 (b) Bills of Sale.
Bills of sale to Buyer and/or its designated Lessee, conveying title to the tangible Personal Property (other than the alcoholic beverage inventories, which, at Buyer’s election, shall be transferred by Seller to the Manager as holder of the
Liquor Licenses required for operation of the Hotel). 
 (c) General Assignments. Assignments of all of Seller’s right, title and
interest in and to all FF&E Leases, Service Contracts and Leases (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, including Seller’s construction contract with the Contractor. 
 (d) 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. 
 (e) Title Company Documents. All affidavits, gap indemnity agreements and other documents
reasonably required by the Title Company. 
 (f) Possession; Estoppel Certificates. Possession of the Property. 
 (g) 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. 
  

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 (h) Authority Documents. Certified copy of resolutions of the partners 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. 
 (i) 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. 
 (j) 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. 
 (k) Closing Statements. Seller’s Closing Statement, and a certificate confirming the truth of Seller’s representations and warranties
hereunder as of the Closing Date. 
 (l) Western Indemnification Agreement. At Closing, Western shall deliver to Buyer the Western
Indemnification Agreement. 
 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. 
  

 25 

 ARTICLE XI 
 COSTS 
 All Closing costs shall be paid as set forth below: 
 11.1 Seller’s Costs. In connection with the sale of the Property contemplated under this Contract, Seller shall be responsible for all
transfer and recordation taxes, including, without limitation, all transfer, sales, use or bulk transfer taxes or like taxes on or in connection with the transfer of 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 its share of costs related to the assignment and amendment of the Franchise Agreement or the termination of the Franchise Agreement and the execution of a new franchise agreement as provided in Article V. Seller shall also be
responsible for the 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. 
 11.2 Buyer’s Costs. In connection with the purchase of the Property contemplated under this Contract, Buyer shall be responsible for the
costs and expenses of its attorneys, accountants and other professionals, consultants and representatives. Buyer shall also be responsible for the costs and expenses in connection with the preparation of any environmental report, any update to the
survey and the costs and expenses of preparation of the title insurance commitment and the issuance of the title insurance policy contemplated by Article IV and the per page recording charges for the Deed (if applicable). Buyer shall be responsible
for its share of costs related to the assignment and amendment of the Franchise Agreement or the termination of the Franchise Agreement and the execution of a new franchise agreement as provided in Article V. Seller shall also be responsible for
paying excess Pre-Opening Costs to the extent provided in Section 8.7 and the costs incurred after the Effective Time as provided in Section 12.1(e). 
 ARTICLE XII 
 ADJUSTMENTS 
 12.1 Adjustments. Unless otherwise provided herein, at Closing, adjustments between the parties of income and expenses related to the Property
shall be made as of the Effective Time, 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 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 

  

 26 

 
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
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) Accounts. All working capital accounts, reserve accounts and escrow accounts (including all FF&E 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. Notwithstanding the foregoing, at the Closing, Seller shall receive a credit in an amount equal to all such accounts funded by Seller
before the Closing Date, provided that (i) such accounts were required by the Franchisor or otherwise approved by Buyer (which approval shall not be unreasonably withheld), (ii) Seller shall not receive a credit for any account to the
extent the same is intended to cover Pre-Opening Costs for which Seller is responsible and which have not been paid as of the Closing and (iii) at Closing Buyer shall receive a credit for the working capital account in the amount of $25,000

 (d) Advance Deposits, etc. All income generated by the Hotel, including receipts from guest room or suite rentals, all prepaid
rentals, room rental deposits, and all other deposits for advance registration, banquets or services, attributable to the period before the Effective Time shall belong to Seller and shall not be prorated. All income generated by the Hotel, including
receipts from guest room or suite rentals, all prepaid rentals, room rental deposits, and all other deposits for advance registration, banquets or services, attributable to the period after the Effective Time, shall be credited to Buyer. 

(e) 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, 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 sixty (60) days after the Closing Date. Upon the final reconciliation of the allocations and prorations under this Section, the party which owes the other party any sums hereunder shall pay
such party such sums within ten (10) days after the reconciliation of such sums. The obligations to calculate such prorations, make such reconciliations and pay any such sums shall survive the Closing. 
 12.3 Employees. Unless Buyer expressly agrees otherwise, none of the employees of the Hotel shall become employees of Buyer, as of the Closing
Date; instead, such employees shall continue as employees of the Manager. Seller shall not give notice under any applicable 

  

 27 

 
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 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 Management Agreement. 
 ARTICLE XIII 
 CASUALTY AND CONDEMNATION 
 13.1 Risk of Loss; Notice. Prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, all risk of loss to the Property (whether by casualty, condemnation or otherwise) shall be borne by Seller. In the event that (a) any loss or damage to the Hotel shall occur
prior to the Closing Date as a result of fire or other casualty, or (b) Seller receives notice that a governmental authority has initiated or threatened to initiate a condemnation proceeding affecting the Hotel, Seller shall give Buyer
immediate written notice of such loss, damage or condemnation proceeding (which notice shall include a certification of (i) the amounts of insurance coverages in effect with respect to the loss or damage and (ii) if known, the amount of
the award to be received in such condemnation). 
 13.2 Buyer’s Termination Right. If, prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, (a) any condemnation proceeding shall be pending against a substantial portion of the Hotel or (b) there is any substantial casualty loss or damage to the Hotel, Buyer
shall have the option to terminate this Contract, provided Buyer delivers written notice to Seller of its election within twenty (20) days after the date Seller has delivered Buyer written notice of any such loss, damage or condemnation as
provided above, and in such event, the Earnest Money Deposit, and any interest thereon, shall be delivered to Buyer and thereafter, except as expressly set forth herein, no party shall have any further obligation or liability to the other under this
Contract. In the context of condemnation, “substantial” shall mean condemnation of such portion of the Hotel (or access thereto) as could, in Buyer’s reasonable judgment, render use of the remainder impractical or unfeasible for the
uses herein contemplated, and, in the context of casualty loss or damage, “substantial” shall mean a loss or damage in excess of One Hundred Thousand and No/100 Dollars ($100,000.00) in value. 
 13.3 Procedure for Closing. If Buyer shall not timely elect to terminate this Contract under Section 13.2 above, or if the loss, damage or
condemnation is not substantial, 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 

  

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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 XIV 
 DEFAULT REMEDIES 
 14.1 Buyer Default. If Buyer defaults under this
Contract after the Review Period, and such default continues for ten (10) days following written notice from Seller, then at Seller’s election by written notice to Buyer and as Seller’s sole and exclusive remedies on account of such
default, either (i) 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 as liquidated damages for
Buyer’s default or failure to close, and both Buyer and Seller shall thereupon be released from all obligations hereunder or (ii) Seller may treat this Contract as being in full force and effect and seek to specifically enforce
Buyer’s obligation to purchase the Property pursuant to the terms of this Contract. 
 14.2 Seller Default. If Seller defaults
under this Contract, and such default continues for ten (10) days following written notice from Buyer, Buyer may elect, as Buyer’s sole and exclusive remedy, either (i) to terminate this Contract by written notice to 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, 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 damages (excluding consequential damages based upon allegations that default by Seller under this Agreement negatively affected the purchase price under any
other contracts pursuant to which Buyer purchased property from Affiliates of Seller), specific performance and all other rights and remedies available at law or in equity. 
 14.3 Attorney’s Fees. Anything to the contrary herein notwithstanding, if it shall be necessary for either the Buyer or Seller to employ an
attorney to enforce its rights pursuant to this Contract because of the default of the other party, and the non-defaulting party is successful in enforcing such rights, then the defaulting party shall reimburse the non-defaulting party for the
non-defaulting party’s reasonable attorneys’ fees, costs and expenses. 
  

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

			
	If to Buyer:	  	c/o Apple REIT Nine, Inc.
		  	814 East Main Street
		  	Richmond, Virginia 23219
		  	Attention: Justin Knight
		  	Fax No.: (804) 344-8129
		
	with a copy to:	  	c/o Apple REIT Nine, Inc.
		  	814 East Main Street
		  	Richmond, Virginia 23219
		  	Attention: Dave Buckley
		  	Fax No.: (804) 727-6349
		
	If to Seller:	  	RI Beaumont Property, L.P.
		  	c/o Western International
		  	13647 Montfort Drive
		  	Dallas, Texas 75240
		  	Attention: Michael Mahoney and B. Gene Carter
		  	Fax No.: (972) 934-8698
		
	with a copy to:	  	Gardere Wynne Sewell LLP
		  	3000 Thanksgiving Tower
		  	1601 Elm Street
		  	Dallas, Texas 75201
		  	Attention: Kevin L. Kelley and Craig Baker, Esq.
		  	Fax No.: (214) 999-3503

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

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 ARTICLE XVI 
 MISCELLANEOUS 
 16.1 Performance. Time is of the essence in the performance and satisfaction
of each and every obligation and condition of this Contract. 
 16.2 Binding Effect; Assignment. This Contract shall be binding upon
and shall inure to the benefit of each of the parties hereto, their respective successors and assigns. 
 16.3 Entire Agreement. This
Contract and the Exhibits constitute the sole and entire agreement between Buyer and Seller with respect to the subject matter hereof. No modification of this Contract shall be binding unless signed by both Buyer and Seller. 
 16.4 Governing Law. The validity, construction, interpretation and performance of this Contract shall in all ways be governed and determined in
accordance with the laws of the Commonwealth of Virginia (without regard to conflicts of law principles). 
 16.5 Captions. The
captions used in this Contract have been inserted only for purposes of convenience and the same shall not be construed or interpreted so as to limit or define the intent or the scope of any part of this Contract. 
 16.6 Confidentiality. Except as either party may reasonably determine is required by law (including without limitation laws and regulations
applicable to Buyer or its Affiliates who may be public companies): (i) prior to Closing, 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 lenders, 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 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 

  

 31 

 
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 (other than an Affiliate in which neither Seller nor Western has any decision-making or management powers with respect to the sale or offering or listing for sale of such Affiliate’s property or properties)
proposes to list for sale any hotel property or properties owned, acquired, constructed or developed by Seller or its Affiliates and located within a ten (10)-mile radius of the Hotel (any such other hotel property being referred to as an
“Other Property”), Seller or Western 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.

 ARTICLE XVII 
 JOINDER
BY WESTERN 
 Western joins in this Contract and hereby covenants and agrees that 
 (i) Western is and shall be jointly and severally liable with Seller for the performance of all of Seller’s obligations and
liabilities under this Contract, including, without limitation, all of Seller’s obligations and liabilities that survive Closing, and Western shall indemnify, defend and hold Buyer harmless from and against any and all claims, liabilities,
obligations, damages and costs (including reasonable attorneys’ fees) arising from a default by the Contractor with respect to, or a failure by Contractor to perform or comply with, the Construction Warranty, provided that
(x) Western’s liability under this clause (i) shall not exceed One Million and No/100 Dollars ($1,000,000.00) and any costs of collection and attorneys’ fees and expenses, and (y) Western’s liability under this clause
(i) shall terminate on the date that is one (1) year after the Closing Date except as to claims asserted in writing within such one-year period; 
  

 32 

 (ii) In addition to, and not in limitation of Western’s obligations under clause
(i) of this Article XVII (and without the limitation of liability contained in the proviso of such clause (i)), Western shall indemnify and defend Buyer and its Affiliates and hold Buyer and its Affiliates harmless from and against all
liabilities, claims, costs, expenses and damages arising or resulting from any of the following: 
  

	 	(1)	Misapplication by Seller or Western, or any person or entity that controls or is controlled by Seller or Western (collectively, “Seller Entities”), of proceeds of
insurance, condemnation awards, Hotel rents, revenues and receipts and/or prepaid rentals and/or other deposits paid or payable in respect of any period prior to Closing; 

  

	 	(2)	Failure by any Seller Entity to pay taxes or other amounts payable in respect of any period prior to Closing that could result in a lien, security interest or other encumbrance
(other than Permitted Exceptions) on the Property; or 

  

	 	(3)	Fraud or material misrepresentation by Seller or Western including, without limitation, in the representations of Seller and Western contained in Section 7.1;

 (iii) Western’s obligations hereunder shall not be limited, diminished or impaired in any way by virtue
of any right or remedy Buyer may have against Seller under this Contract or by virtue of any other provision of this Contract; 
 (iv) Buyer shall not be obligated to proceed first against Seller before resorting to Western under this Article XVII for payment or performance; and 
 (v) Western shall not be entitled to assert as a defense to the enforceability of its covenants and agreements hereunder any defense of
Seller with respect to any liabilities or obligations of Seller to Buyer. 
 Indemnification claims and procedures with respect to
Western’s indemnification obligations under clause (ii) of this Article XVII shall be consistent with those provided for in Section 8.13(c) of this Contract. Seller shall cause Western to provide, and Western shall provide, at Closing
an indemnification agreement in form and substance satisfactory in form and substance to Buyer with respect to the foregoing indemnifications (the “Western Indemnification Agreement”), which shall be a condition to Buyer’s obligation
to close under this Contract. The covenants, agreements, representations and warranties of Western set forth in this Article XVII shall be continuing, and shall not be deemed to merge into or be waived by the Deed or other closing documents and
shall survive Closing on the Property. 
 [Signatures Begin on Following Page] 
  

 33 

  

 34 

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

					
	SELLER:
	
	RI BEAUMONT PROPERTY, L.P., a Texas limited partnership
		
	By:	 	RI BEAUMONT GP, L.L.C., a Texas limited liability company, its general partner
			
		 	By:	 	 /s/ Michael Mahoney

		 		 	Michael Mahoney
		 		 	Vice President
	
	BUYER:
	
	APPLE NINE HOSPITALITY OWNERSHIP, INC., a Virginia corporation
		
	By:	 	 /s/ Justin G. Knight

	Name:	 	 Justin G. Knight

	Title:	 	 President

	
	WESTERN:
	
	W.I. REALTY I, L.P., d/b/a
	WESTERN INTERNATIONAL, a
	Texas limited partnership
		
	By:	 	W.I. Realty, L.C., a Texas limited liability company, General Partner
			
		 	By:	 	 /s/ Michael Mahoney

		 		 	Michael Mahoney
		 		 	Vice President

  

 35

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