Document:

Exhibit 10.1

ADVISORY AGREEMENT

BETWEEN

APPLE REIT TEN, INC.

AND

APPLE TEN ADVISORS, INC.

          THIS
ADVISORY AGREEMENT, dated as of ___________ ______, 2010, is between APPLE REIT
TEN, INC., a Virginia corporation (the “Company”), and APPLE TEN ADVISORS,
INC., a Virginia corporation (the “Advisor”). 

RECITALS

          A.
The purpose of the Company is to invest primarily in hotels, residential
apartment communities and other income-producing real estate in selected
metropolitan areas of the United States. The Company intends to qualify as a
real estate investment trust pursuant to Sections 856 through 860 of the
Internal Revenue Code of 1986, as amended. 

          B.
The Company desires to engage the Advisor to provide information, advice,
assistance and facilities to the Company and to have the Advisor undertake the
duties and responsibilities hereinafter set forth, all subject to the
supervision of the Company’s Board of Directors, on the terms and conditions
set forth herein. In consideration therefor, the Company desires to pay the
Advisor certain fees as herein set forth. 

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

          1.
Definitions. For purposes of this Agreement, the following terms shall
have the meanings set forth below. 

	
  

 	
  

 
	
  

 	
           (a)
 “Affiliate” means (i) any Person directly or indirectly controlling,
 controlled by or under common control with another Person, (ii) any Person owning
 or controlling 10% or more of the outstanding voting securities or beneficial
 interests of such other Person, (iii) any officer, director, trustee or
 general partner of such Person and (iv) if such other Person is an officer,
 director, trustee or partner of another entity, then the entity for which
 that Person acts in any such capacity. “Affiliated” means being an Affiliate
 of a specified Person. 

 
	
  

 	
  

 
	
  

 	
           (b)
 “Articles of Incorporation” means the Company’s Articles of Incorporation
 filed with the Virginia State Corporation Commission, including all
 amendments, restatements or modifications thereof. 

 

	
  

 	
  

 
	
  

 	
           (c)
 “Asset Management Fee” means the fee payable to the Advisor for its services
 hereunder. Such fee will be paid pursuant and subject to Section 11 of this
 Agreement. 

 
	
  

 	
  

 
	
  

 	
           (d)
 “Average Invested Assets” for any period means the average of the aggregate
 book value of the assets of the Company invested, directly or indirectly, in
 equity interests in and loans secured by real estate, before reserves for
 depreciation or bad debts or other similar non-cash reserves, computed by
 taking the average of such values at the end of each month during such
 period. 

 
	
  

 	
  

 
	
  

 	
           (e)
 “Board of Directors” means the Company’s Board of Directors as of any
 particular time. 

 
	
  

 	
  

 
	
  

 	
           (f)
 “Bylaws” means the Company’s Bylaws, including all amendments, restatements
 or modifications thereof. 

 
	
  

 	
  

 
	
  

 	
           (g)
 “Calendar Year” means the year ended December 31st and any portion thereof
 treated by the Internal Revenue Service as a reporting period for the
 Company. 

 
	
  

 	
  

 
	
  

 	
           (h)
 “Code” means the Internal Revenue Code of 1986, as amended from time to time,
 including successor statutes thereto. 

 
	
  

 	
  

 
	
  

 	
           (i)
 “Company Net Income” for any period means the total revenues of the Company
 for such period, less expenses applicable to such period other than additions
 to reserves for depreciation or bad debts or other similar non-cash reserves.
 “Company Net Income,” for purposes of calculating Operating Expenses in
 Section 15 of this Agreement, does not include the gain from the sale of the
 Company’s assets. 

 
	
  

 	
  

 
	
  

 	
           (j)
 “Directors” means, as of any particular time, the directors of the Company
 holding office at such time. 

 
	
  

 	
  

 
	
  

 	
           (k)
 “Modified Net Income” means net income (computed in accordance with generally
 accepted accounting principles) excluding gains (or losses) from debt
 restructuring and sales of property, plus depreciation of real property, and
 after adjustments for significant non-recurring items and unconsolidated
 partnerships and joint ventures. Adjustments for unconsolidated partnerships
 and joint ventures will be calculated to reflect modified net income on the
 same basis.

 
	
  

 	
  

 
	
  

 	
           (l)
 “Offering” means the public offering of the Company’s Units. 

 
	
  

 	
  

 
	
  

 	
           (m)
 “Operating Expenses” means all operating, general and administrative expenses
 of the Company as determined under generally accepted accounting principles
 (including regular compensation payable to the Advisor), excluding, however,
 the following:

 

	
  

 	
  

 
	
  

 	
           (i)
 expenses of raising capital; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 interest payments; 

 

2

	
  

 	
  

 
	
  

 	
           (iii)
 taxes; 

 
	
  

 	
  

 
	
  

 	
           (iv)
 non-cash expenditures, such as depreciation, amortization and bad debt; 

 
	
  

 	
  

 
	
  

 	
           (v)
 reserves; 

 
	
  

 	
  

 
	
  

 	
           (vi)
 incentive fees paid to the Advisor, if any; and 

 
	
  

 	
  

 
	
  

 	
           (vii)
 costs related directly to asset acquisition, operation or disposition. 

 

	
  

 	
  

 
	
  

 	
           (n)
 “Organizational and Offering Expenses” means all expenses incurred in
 connection with the formation and registration of the Company and in
 qualifying and marketing the Units under applicable federal and state law,
 and any other expenses actually incurred and directly related to the
 qualification, registration, offer and sale of the Units, including such
 expenses as (i) all marketing expenses and payments made to broker-dealers as
 compensation or reimbursement for all costs of reviewing the Offering,
 including due diligence investigations and fees and expenses of their
 attorneys, accountants and other experts; (ii) registration fees, filing fees
 and taxes; (iii) the costs of printing, amending, supplementing and
 distributing the registration statement and Prospectus; (iv) the costs of
 obtaining regulatory clearances of, and printing and distributing, sales
 materials used in connection with the offer and sale of the Units; (v) the
 costs related to investor and broker-dealer sales meetings concerning the
 Offering; and (vi) accounting and legal fees incurred in connection with any
 of the foregoing. 

 
	
  

 	
  

 
	
  

 	
           (o)
 “Person” includes an individual, corporation, partnership, joint venture,
 association, company, trust, bank or other entity, or government and any
 agency and political subdivision of a government. 

 
	
  

 	
  

 
	
  

 	
           (p)
 “Property” or “Properties” means partial or entire equity interests,
 including equity participation interests such as general partnership
 interests and joint venture interests, owned by the Company in real property
 as described in the Prospectus. 

 
	
  

 	
  

 
	
  

 	
           (q)
 “Prospectus” has the meaning given to that term by Section 2(10) of the
 Securities Act of 1933, as amended, and as used herein, the term means the
 Prospectus of the Company pursuant to which the Units are offered to the
 public. 

 
	
  

 	
  

 
	
  

 	
           (r)
 “Return Ratio” means, for any period, the ratio of Modified Net Income to
 Total Contributions. 

 
	
  

 	
  

 
	
  

 	
           (s)
 “Shareholders” means the holders of record of the Company’s Units. 

 
	
  

 	
  

 
	
  

 	
           (t)
 “Total Contributions” means the gross offering proceeds which have been
 received by the Company from time to time from the sale or sales of the
 Units. Total Contributions shall be calculated to reflect the average of the
 daily amounts during the period in question of the gross offering proceeds
 which have been received by the Company from time to time from the sales of
 Units, to extent such Units are issued and such sales have actually been
 closed. 

 

3

	
  

 	
  

 
	
  

 	
           (u)
 “Units” means the Units of the Company. Each Unit consists of one Common
 Share and one Series A preferred share of the Company. 

 

          2.
Duties of the Advisor. Subject to the terms of the Articles of
Incorporation, the Bylaws, and the supervision of the Board of Directors, the
Advisor, at its own cost and expense, unless otherwise set forth herein, on
behalf of the Company, shall: 

	
  

 	
  

 
	
  

 	
           (a)
 serve as the Company’s investment advisor and consultant in connection with
 policy and investment decisions to be made by the Board of Directors, furnish
 reports to the Board of Directors, and provide research, economic and
 statistical data in connection with the acquisition, financing, refinancing,
 holding, leasing and disposition of Properties and other investments of the
 Company; 

 
	
  

 	
  

 
	
  

 	
           (b)
 administer the day-to-day operations of the Company and perform or supervise
 the various administrative functions reasonably necessary for the management
 of the Company; 

 
	
  

 	
  

 
	
  

 	
           (c)
 investigate, select and, on behalf of the Company, engage and conduct business
 with (including, but not limited to, entering into contracts in the name of
 the Advisor or the Company) consultants, accountants, correspondents,
 lenders, servicers, technical advisors, attorneys, brokers, underwriters,
 corporate fiduciaries, escrow agents, depositaries, custodians, agents for
 collection, insurers, insurance agents, banks, builders, developers, property
 owners, mortgagors, and other mortgage and investment participants, any and
 all agents for any of the foregoing, including Affiliates of the Advisor, and
 Persons acting in any other capacity deemed by the Board of Directors
 necessary or desirable for the performance of any of the foregoing services; 

 
	
  

 	
  

 
	
  

 	
           (d)
 act as attorney-in-fact or agent in acquiring, financing, refinancing, leasing
 and disposing of Properties and other investments, in disbursing and
 collecting funds of the Company, in paying the debts and fulfilling the
 obligations of the Company and in handling, prosecuting and settling any
 claims of the Company, including the foreclosure or other enforcement of any
 mortgage or other lien securing Properties or other investments, and exercise
 its own discretion in doing so; provided that any fees and costs payable to
 independent Persons incurred by the Advisor in connection with the foregoing
 shall be the responsibility of the Company; 

 
	
  

 	
  

 
	
  

 	
           (e)
 negotiate on behalf of the Company with banks or other lenders for loans to
 be made to the Company, and negotiate on behalf of the Company with
 investment banking firms and broker-dealers or negotiate private sales of the
 securities of the Company or obtain loans for the Company, but in no event in
 such a way so that the Advisor shall be acting as broker-dealer or
 underwriter; and provided, further, that any fees and costs payable to third
 parties incurred by the Advisor in connection with the foregoing shall be the
 responsibility of the Company; 

 
	
  

 	
  

 
	
  

 	
           (f)
 invest or reinvest any money of the Company, as directed by the Board of
 Directors or subject to such discretionary powers as the Board of Directors
 may from time to time delegate; 

 

4

	
  

 	
  

 
	
  

 	
           (g)
 if requested by the Company, provide appraisal reports on any real property
 that is, or is proposed to be, acquired by the Company for investment; 

 
	
  

 	
  

 
	
  

 	
           (h)
 at any time reasonably requested by the Board of Directors (but not more than
 monthly) make reports of its performance of services to the Company; 

 
	
  

 	
  

 
	
  

 	
           (i)
 communicate on behalf of the Company with the Shareholders of the Company as
 required to satisfy the continuous reporting and other requirements of any
 governmental bodies or agencies to the Shareholders and third parties and to
 maintain effective relations with the Shareholders; 

 
	
  

 	
  

 
	
  

 	
           (j)
 counsel the Company in connection with policy decisions to be made by the
 Board of Directors; 

 
	
  

 	
  

 
	
  

 	
           (k)
 provide the executive and administrative personnel and services required in
 rendering the foregoing services to the Company; and 

 
	
  

 	
  

 
	
  

 	
           (l)
 perform such other services as may be required from time to time for
 management and other activities relating to the assets of the Company as the
 Advisor shall deem appropriate under the particular circumstances. 

 

          3.
Commitments. In order to meet the investment requirements of the
Company, but only as determined by the Board of Directors, or any authorized
committee thereof, from time to time, the Advisor agrees at the direction of
the Board of Directors or any such committee to issue on behalf of the Company
commitments on such terms as are established by the Board of Directors or any
such committee, for the acquiring of Properties or other assets. 

          4.
Duties of the Board of Directors. In order for the Advisor to fulfill
its duties, the Board of Directors shall, to the extent it deems proper,
provide the Advisor with full information concerning the Company, its
capitalization and investment policies and the intentions of the Board of
Directors with respect to future investments. The Company shall furnish the
Advisor with a copy of all audited financial statements, a signed copy of each
report prepared by independent accountants, and such other information with
regard to its affairs as the Advisor may from time to time reasonably request. 

          5.
Advice. In addition to the services described in Section 2 above, the
Advisor shall consult with the Board of Directors and the officers of the
Company and shall furnish them with advice and recommendations with respect to
the acquiring of Properties or commitments therefor, or other investments of,
or investments considered by, the Company, and shall furnish advice and
recommendations with respect to other aspects of the business and affairs of
the Company. In order to facilitate the investment of the funds of the Company
and enable it to avail itself of investment opportunities as they arise, the
Advisor may from time to time be granted, but is not hereby granted, the power
and authority to make and dispose of investments and to make and terminate
commitments for investments, on behalf of and in the name of the Company,
without further or express authority from the Board of Directors; provided,
however that the Board of Directors shall have the power to revoke, suspend,
modify or limit such power and authority at any time or from time to time, but
not retroactively. Unless otherwise notified by the 

5

Board of
Directors, a representative of the Advisor shall attend all regular and special
meetings of the Board of Directors, and the Board of Directors shall notify the
Advisor of such meetings. 

          6.
Bank Accounts. The Advisor may establish and maintain one or more bank
accounts in the name of the Company and may collect and deposit into any such
account or accounts, and disburse from any such account or accounts, any money
on behalf of the Company, under such terms and conditions as the Board of
Directors may approve, provided that all such accounts shall be maintained in
such fashion as to make clear that the funds therein are the property of the
Company and not of the Advisor. The Advisor shall from time to time render
appropriate accountings of such collections and payments to the Board of
Directors and to the auditors of the Company. 

          7.
Investment Undertakings. The Advisor shall use its best efforts to assure
that (i) any mortgage securing a Property of the Company shall be and remain a
valid lien upon the mortgaged property according to its terms; (ii) the title
to any Property is insured by appropriate policies of title insurance; (iii)
any Property is duly insured against loss or damage by fire, with extended
coverage, and against such other insurable hazards and risks as is customary
and appropriate in the circumstances; and (iv) the policies from time to time
specified by the Board of Directors with regard to the protection of the
Company’s investments are carried out. Any and all fees and costs incurred by
the Advisor in performing such functions, whether payable to its Affiliates or
independent Persons shall be borne by the Company. 

          8.
Records; Confidentiality. The Advisor shall maintain appropriate records
of all its activities hereunder and make such records available for inspection
by the Board of Directors and by counsel, auditors and authorized agents of the
Company, at any time or from time to time during normal business hours. The
Advisor shall at all reasonable times have access to the books and records of
the Company. The Advisor shall keep confidential any and all information
obtained in connection with the services rendered hereunder and shall not
disclose any such information to nonaffiliated Persons except with the prior
consent of the Board. 

          9.
Limitation of Activities. Anything else in this Agreement to the
contrary notwithstanding: 

	
  

 	
  

 
	
  

 	
           (a)
 The Advisor shall refrain from taking any action which, in its sole judgment
 made in good faith, would adversely affect the status of the Company as a
 real estate investment trust as defined in the Code, subject the Company to
 regulation under the Investment Company Act of 1940, violate any law, rule or
 regulation or would otherwise not be permitted by the Articles of
 Incorporation or Bylaws of the Company, except if such action shall be
 ordered by the Board of Directors, in which case the Advisor shall notify
 promptly the Board of Directors of the Advisor’s judgment of the potential
 impact of such action and shall refrain from taking such action until it
 receives further clarification or instructions from the Board of Directors.
 Notwithstanding the foregoing, the Advisor and its stockholders, directors,
 officers and employees shall not be liable to the Company, or to the
 Company’s Board of Directors or Shareholders for any act or omission by the
 Advisor, or its stockholders, directors, officers or employees except as
 provided in Section 16 of this Agreement. 

 

6

	
  

 	
  

 
	
  

 	
           (b)
 In performing its duties and obligations under this Agreement, the Advisor
 shall abide by and comply with the provisions and policies set forth in the
 Articles of Incorporation and Bylaws. 

 

          10.
Relationship with Board of Directors. Employees of the Advisor may serve
as members of the Board of Directors or any committee thereof and as officers
of the Company, except that no employee of the Advisor who also is a Director
of the Company shall receive any compensation from the Company for serving as a
Director or officer other than for reasonable reimbursement for travel and
related expenses incurred in attending meetings of the Board of Directors or
any committee thereof. 

          11.
Fees. 

	
  

 	
  

 
	
  

 	
           (a)
 Asset Management Fee. The Company shall pay to the Advisor quarterly, for
 services rendered under this Agreement, an Asset Management Fee calculated as
 follows: The Asset Management Fee for any calendar year shall be an
 applicable percentage of the Total Contributions. The applicable percentage
 used to calculate such Asset Management Fee shall be based upon the Return
 Ratio, calculated on a per annum basis, for the preceding calendar year. The
 Asset Management Fee shall be as follows with respect to each calendar year:
 0.1% of Total Contributions if the Return Ratio for the calendar year or
 prorata for a partial year is 6.0% or less; 0.15% of Total Contributions if
 the Return Ratio for the calendar year or prorata for a partial year is more
 than 6.0% but not more than 8.0%; and 0.25% of Total Contributions if the
 Return Ratio for the calendar year or prorata for a partial year is above
 8.0%. If the Asset Management Fee is payable with respect to any calendar
 year or partial year, it shall be prorated based on the number of days
 elapsed during any such partial calendar year and paid quarterly. 

 
	
  

 	
  

 
	
  

 	
           (b)
 Payment of Asset Management Fee. The Advisor shall compute the compensation
 payable to it under Section 11(a) of this Agreement within 45 days of the end
 of each calendar quarter. A copy of the computations made by the Advisor to
 calculate its compensation shall thereafter promptly be delivered to the
 Board of Directors and, upon such delivery, payment of the compensation
 earned under Section 11(a) of this Agreement shown therein shall be due and
 payable within 60 days after the end of such calendar quarter. 

 

          12.
Expenses. 

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 The Company shall pay directly or reimburse the Advisor for the following
 expenses in addition to the compensation provided for in this Agreement: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 all costs of personnel used by the Company (whether employed by the Company
 or another entity) and involved in the business of the Company; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 expenses incurred in connection with the initial investment of the funds of
 the Company, including all direct expenses incurred in connection with
 investigation and acquisition of Properties; 

 

7

	
  

 	
  

 
	
  

 	
           (iii)
 interest and other costs for borrowed money, including discounts, points and
 other similar fees; 

 
	
  

 	
  

 
	
  

 	
           (iv) taxes
 and assessments on income or property and taxes as an expense of doing
 business; 

 
	
  

 	
  

 
	
  

 	
           (v) fees and
 commissions, including finder’s fees and brokerage commissions with respect
 to the acquisition and disposition of assets of the Company, whether payable
 to an Affiliate of the Advisor or an unrelated Person, including, without
 limitation, costs of foreclosure, maintenance, repair and improvement of
 Property; 

 
	
  

 	
  

 
	
  

 	
           (vi) costs
 associated with insurance required in connection with the business of the
 Company or by the Board of Directors; 

 
	
  

 	
  

 
	
  

 	
           (vii)
 expenses of managing and operating real property owned by the Company,
 whether payable to an Affiliate of the Advisor or an unrelated Person; 

 
	
  

 	
  

 
	
  

 	
           (viii) fees
 and expenses of legal counsel for the Company; 

 
	
  

 	
  

 
	
  

 	
           (ix) fees
 and expenses of independent auditors and accountants for the Company; 

 
	
  

 	
  

 
	
  

 	
           (x) all
 expenses in connection with payments to the Board of Directors or any
 committee thereof and meetings of the Board of Directors or any committee
 thereof and Shareholders; 

 
	
  

 	
  

 
	
  

 	
           (xi)
 expenses associated with listing the Units on a national stock exchange or
 quoting the Units on the NASDAQ National Market System if requested by the
 Board of Directors, or with the issuance and distribution of any additional
 Units of the Company at any time, such as taxes, legal and accounting fees,
 listing and registration fees, and other expenses; 

 
	
  

 	
  

 
	
  

 	
           (xii)
 dividend and dividend distributions; 

 
	
  

 	
  

 
	
  

 	
           (xiii)
 expenses of organizing, revising, amending, converting, modifying or
 terminating the Company, the Articles of Incorporation or the Bylaws; and 

 
	
  

 	
  

 
	
  

 	
           (xiv)
 expenses of maintaining communications with Shareholders, including the cost
 of preparation, printing, and mailing annual reports and other Shareholder
 reports, proxy statements and other reports required by governmental
 entities; and 

 
	
  

 	
  

 
	
  

 	
           (xv) all
 costs and expenses associated with the office space used by employees
 involved in the business of the Company. 

 

8

                    Expenses
incurred by the Advisor on behalf of the Company and payable pursuant to this
Section, shall be reimbursed quarterly to the Advisor within 60 days after the
end of each quarter. The Advisor shall prepare a statement documenting the
expenses of the Company during each quarter, and shall deliver such statement
to the Company within 45 days after the end of each quarter. Notwithstanding
anything in this Agreement to the contrary, the Advisor may direct that
reimbursement amounts otherwise payable to it by the Company shall instead be
paid directly to such Person or Persons who or which are legally entitled
thereto. 

	
  

 	
  

 	
  

 
	
  

 	
           (b)
 Except as otherwise provided herein, the Advisor shall pay all expenses of
 performing its obligations under this Agreement, including, without
 limitation, the following expenses: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 employment expenses of the Advisor, including, but not limited to, salaries,
 wages, payroll taxes, costs of employee benefit plans, and temporary help
 expenses, except to the extent that such expenses are otherwise reimbursable
 pursuant to Section 12(a) of this Agreement or the Articles of Incorporation
 or Bylaws; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 audit fees and expenses of the Advisor; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 legal fees and other expenses of professional services to the Advisor; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 rent, telephone, utilities and other office expenses of the Advisor;

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (v)
 insurance of the Advisor; and

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (vi)
 all other administrative expenses of the Advisor. 

 

          13.
Limitation on the Advisor’s Investment Advice. Notwithstanding anything
to the contrary in this Agreement, the Advisor shall not be required to, and
shall not, advise the Company as to any investments in securities, except when,
and to the extent that, the Advisor and the Company specifically agree (i) that
such advice is desirable, and (ii) that such advice can be rendered
consistently with applicable legal requirements, including any applicable
provisions of relevant “investment advisor” laws. 

          14.
Other Services. Should the Board of Directors request that the Advisor
or any employee thereof render material services for the Company other than set
forth in Section 2, such services shall be separately compensated and shall not
be deemed to be services pursuant to the terms of this Agreement. 

          15.
Limitation on Operating Expenses. Within 120 days from the end of any
Calendar Year, the Advisor shall refund to the Company the amount, if any, by
which the Operating Expenses of the Company, excluding extraordinary
nonrecurring items and those items referred to in Section 14, during such
Calendar Year exceeded the greater of either of the following limitations: 

9

	
  

 	
  

 
	
  

 	
           (a)
 2% of the Average Invested Assets of the Company for such Calendar Year; or 

 
	
  

 	
  

 
	
  

 	
           (b)
 25% of the Company’s Company Net Income for such Calendar Year, determined in
 accordance with generally accepted accounting principles. 

 

                    The
Directors of the Company may determine that, because of unusual and
nonrecurring factors which they deem sufficient, a higher level of Operating
Expenses is justified for such Calendar Year. The Advisor shall be promptly
reimbursed for any payments made under this Section 15 if, in any succeeding
Calendar Year, the Operating Expenses of the Company are less than the
permitted level of Operating Expenses. 

          16.
Advisory Responsibility. The Advisor assumes no responsibility under
this Agreement other than to render the services called for hereunder in good
faith and with integrity, and shall not be responsible for any action of the
Company in following or declining to follow any advice or recommendation of the
Advisor. Neither the Advisor, its shareholders, directors, officers nor employees
nor any of its Affiliates, nor any Person contracting with the Advisor for
services and its shareholders, directors, officers and employees nor any of its
Affiliates shall be liable to the Company or its Shareholders, except by reason
of acts constituting gross negligence or willful misconduct. The Advisor hereby
agrees to look solely to the assets of the Company for satisfaction of all
claims against the Company, and in no event shall any Shareholder, Director,
officer or agent of the Company have any personal liability for the obligation
of the Company under this Agreement. 

          17.
Incorporation of the Articles of Incorporation and Bylaws. To the extent
the Articles of Incorporation and Bylaws impose obligations or restrictions on
the Advisor or grant the Advisor certain rights which are not set forth in this
Agreement, the Advisor shall abide by such obligations or restrictions and such
rights shall inure to the benefit of the Advisor with the same force and effect
as if they were set forth herein. 

          18.
Fiduciary Duty and Indemnification. Subject to Section 16, the Advisor
shall have a fiduciary relationship to the Shareholders. However, the Company
shall indemnify the Advisor, to the fullest extent permitted by law, for its
liabilities and losses arising from the operations of the Company (including
its costs and expenses, including legal fees and expenses, incurred in
connection with investigating and defending itself against such liabilities and
losses) if the following conditions are met: 

	
  

 	
  

 
	
  

 	
           (a)
 the Directors have determined, in good faith, that the course of conduct
 which caused the liability or loss was undertaken in good faith within what
 the Advisor reasonably believed to be the scope of its employment or
 authority and for a purpose which it reasonably believed to be in the best
 interests of the Company; 

 
	
  

 	
  

 
	
  

 	
           (b)
 the Directors have determined, in good faith, that the liability or loss was
 not the result of willful misconduct, bad faith, reckless disregard of duties
 or violation of the criminal law on the part of the Advisor; and 

 
	
  

 	
  

 
	
  

 	
           (c)
 the indemnified amount is recoverable only out of the assets of the Company
 and not from the Shareholders. 

 

10

                    Notwithstanding
the foregoing, indemnification will not be allowed for any liability imposed by
judgment, and costs associated therewith, including attorneys’ fees, arising
from or out of a violation of state or federal securities laws associated with
the Offering of the Units unless (i) there has been a successful adjudication
on the merits of each count involving alleged securities laws violations as to
the particular indemnitee, or (ii) such claims have been dismissed with
prejudice on the merits by a court of competent jurisdiction as to the
particular indemnitee or (iii) a court of competent jurisdiction approves a
settlement of the claims against a particular indemnitee. 

          19.
Transactions between the Advisor and the Company. All transactions
between the Advisor and the Company shall require the approval by a majority of
the Directors and shall otherwise comply with the conflict of interest
provisions of the Bylaws. 

          20.
Relationship of Advisor and Company. The Company and the Advisor are not
partners or joint ventures with each other, and nothing herein shall be
construed to make them such partners or joint ventures or impose any liability
as such on either of them. 

          21.
Other Activities. Except as otherwise expressly provided herein, nothing
contained herein shall limit the right of the Advisor or any of its officers,
directors or employees, whether or not a Director, officer or employee of the
Company, to engage in other business activities or to render services of any
kind to any other Person even if such other business activities or services may
be in direct competition with the Company. 

          22.
Term; Termination of Agreement. 

	
  

 	
  

 
	
  

 	
           (a) This
 Agreement shall have an initial one year term ending [_______, 2011], and
 thereafter shall be renewed for additional one-year terms upon the consent of
 the Directors. 

 
	
  

 	
  

 
	
  

 	
           (b) Prior to
 any renewal of this Agreement, the Directors shall review (i) the performance
 of the Advisor hereunder to determine its compliance with the provisions of
 this Agreement, and (ii) the fees payable to the Advisor hereunder to
 determine whether they are reasonable in relation to the nature and quality
 of services performed. The findings of the Directors shall be recorded in the
 minutes of the Directors. 

 
	
  

 	
  

 
	
  

 	
           (c) This
 Agreement shall be terminable (i) without cause by the Advisor or (ii)
 without cause by a majority of the Directors, in each case upon 60 days’
 prior written notice to the non-terminating party. 

 
	
  

 	
  

 
	
  

 	
           (d) In the
 event of the termination of the Advisor, the Advisor will cooperate with the
 Company and take all reasonable steps requested to assist the Directors in
 making an orderly transition of the advisory function to another Person. 

 
	
  

 	
  

 
	
  

 	
           (e) At the
 sole option of a majority of the Directors, this Agreement may be terminated
 for cause by written notice of termination from the Company to the Advisor if
 any of the following events occur: 

 

11

	
  

 	
  

 
	
  

 	
           (i)
 if the Advisor shall violate or default in the performance of any material
 provision of this Agreement and, after written notice of such violation or
 default, shall not cure such violation or default within 30 days; 

 
	
  

 	
  

 
	
  

 	
           (ii)
 if the Advisor shall be adjudged bankrupt or insolvent by a court of
 competent jurisdiction, or an order shall be made by a court of competent
 jurisdiction for the appointment of a receiver, liquidator or trustee of the
 Advisor, or of all or substantially all of its property by reason of the
 foregoing, or approving any petition filed against the Advisor for
 reorganization, and such adjudication or order shall remain in force or
 unstayed for a period of 30 days; or 

 
	
  

 	
  

 
	
  

 	
           (iii)
 if the Advisor shall institute proceedings for voluntary bankruptcy or shall
 file a petition seeking reorganization under the federal bankruptcy laws, or
 for relief under any law for relief of debtors, or shall consent to the
 appointment of a receiver for itself or for all or substantially all of its
 property, or shall make a general assignment for the benefit of its
 creditors, or shall admit in writing its inability to pay its debts,
 generally, as they become due. 

 

	
  

 	
  

 
	
  

 	
           (f)
 Any notice of termination under this Section shall (except to the extent this
 Section requires a different notice period) be effective on the date
 specified in such notice, which may be the day on which such notice is given
 or any date thereafter. The Advisor agrees that if any of the events
 specified in subparagraph (ii) or (iii) of Section 22(e) shall occur, it
 shall give written notice thereof to the Board of Directors within 5 days
 after the occurrence of such event. 

 

          23.
Action Upon Termination. 

	
  

 	
  

 	
  

 
	
  

 	
           (a)
 From and after the effective date of termination of this Agreement pursuant
 to Section 22 hereof, the Advisor shall not be entitled to compensation for
 further services rendered hereunder, but shall be entitled to receive from
 the Company within 30 days after the effective date of such termination, an
 amount in cash equal to all earned but unpaid Asset Management Fees payable
 to the Advisor prior to the termination of this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b) Within a
 reasonable period of time, but in no event later than 30 days after the
 termination of this Agreement, the Advisor shall: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 pay over to the Company all money collected and held for the account of the
 Company pursuant to this Agreement, after deducting any accrued compensation
 and reimbursement for its expenses to which it is then entitled; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 deliver to the Board of Directors a full accounting, including a statement
 showing all payments collected by it and a statement of all money held by it,
 covering the period following the date of the last accounting furnished to
 the Board of Directors; and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 deliver to the Board of Directors all property and documents of the Company
 then in the custody of the Advisor. 

 

12

                    The
Advisor shall be entitled to receive, promptly after such 30-day period,
reimbursement for any additional expenses to which it is entitled (and for
which it has not been reimbursed under clause (i) of Section 23(b)). 

          24.
Assignment. This Agreement may be assigned by the Advisor with the
approval of a majority of the Board of Directors; provided, however, that such
approval shall not be required in the case of an assignment to a corporation,
association, trust or organization which may take over the assets and carry on
the affairs of the Advisor, provided that at the time of such assignment, such
successor organization shall be owned substantially by the Advisor or its
Affiliates and that an officer of the Advisor shall deliver to the Board of
Directors a statement in writing indicating the ownership structure of the
successor organization. Such an assignment shall bind the assignees hereunder
in the same manner as the Advisor is bound hereunder and the assignee shall be
entitled to any and all rights under this Agreement, including those set forth
in section 18. Upon assignment of this Agreement, the Advisor shall be
discharged from its future duties and shall not be entitled to any of the
rights granted under this Agreement. This Agreement shall not be assigned by
the Company without the consent of the Advisor, except in the case of an
assignment by the Company to a corporation or other organization which is a
successor to the Company, in which case such successor organization shall be
bound hereunder and by the terms of said assignment in the same manner as the
Company is bound hereunder. 

          25.
Bylaws. The execution and performance of this Agreement hereby is
expressly made subject to Article VIII of the Bylaws of the Company. 

          26.
Notices. Any notice, report or other communication required or permitted
to be given hereunder shall be in writing unless some other method of giving
such notice, report or other communication is accepted by the party to whom it
is given, and shall be given by being delivered to the addresses set forth
herein: 

	
  

 	
  

 
	
 To the Board
 of Directors or to the Company: 

 
	
  

 	
  

 
	
  

 	
 Apple REIT
 Ten, Inc.

 814 East Main Street

 Richmond, Virginia 23219

 Attn: Board of Directors

 
	
  

 	
  

 
	
 To the
 Advisor: 

 
	
  

 	
  

 
	
  

 	
 Apple Ten
 Advisors, Inc.

 814 East Main Street

 Richmond, Virginia 23219

 Attn: Glade M. Knight

 

Either party
may at any time give notice in writing to the other party of a change in its address
for the purposes of this Section. 

          27.
Modification. This Agreement shall not be changed, modified, amended,
terminated or discharged, in whole or in part, except by an instrument in
writing signed by both parties hereto, or their respective successors or
assigns. 

13

          28.
Shareholder Liability. No Shareholder of the Company shall be personally
liable for any of the obligations of the Company under this Agreement. 

          29.
Severability. The provisions of this Agreement are independent of and
severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or
others of them may be invalid or unenforceable in whole or in part. 

          30.
Binding. This Agreement shall bind any successors or permitted assigns
of the parties hereto as herein provided. 

          31.
Construction. The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the Commonwealth of Virginia. 

          32.
Entire Agreement. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter
hereof, and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof.
The express terms hereof control and supersede any course of performance and/or
usage of the trade inconsistent with any of the terms hereof. 

          33.
Indulgences, Not Waivers. Neither the failure nor any delay on the part
of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any
occurrence be construed as a waiver of such right, remedy, power or privilege
with respect to any other occurrence. No waiver shall be effective unless it is
in writing and is signed by the party asserted to have granted such waiver. 

          34.
Gender. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number,
singular or plural, and any other gender, masculine, feminine or neuter, as the
context requires. 

          35.
Titles Not to Affect Interpretation. The titles of sections and
subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the
construction or interpretation hereof. 

          36.
Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original as against any
party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding
when one or more counterparts hereof, individually or taken together, shall
bear the signatures of all of the parties reflected hereon as the signatories. 

14

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 APPLE REIT
 TEN, INC.

 	
  

 
	
  

 	
 a Virginia
 corporation

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
 Glade M.
 Knight, President

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 APPLE TEN
 ADVISORS, INC.,

 	
  

 
	
  

 	
 a Virginia
 corporation

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
 Glade M.
 Knight, President

 	
  

 

15Exhibit 10.2 

PROPERTY ACQUISITION/DISPOSITION

AGREEMENT

          THIS
AGREEMENT is made and entered into as of _____________ ________, 2010, by and
between Apple REIT Ten, Inc., a Virginia corporation (hereinafter referred to
as “Owner”), and Apple Suites Realty Group, Inc., a Virginia corporation
(hereinafter referred to as “Agent”). 

W I T N E S S E T H:

          WHEREAS,
Owner plans to conduct business as a “real estate investment trust,” and, in
connection therewith, plans to, from time to time, acquire and dispose of real
property, including particularly hotels, residential apartment communities and
other income-producing real estate in selected metropolitan areas of the United
States (hereinafter referred to individually as a “Property” and collectively
as the “Properties”); 

          WHEREAS,
Owner desires to use the services of Agent as a broker in connection with the
acquisition and disposition of the Properties on the terms set forth in this
Agreement; and 

          WHEREAS,
Owner and Agent desire to enter into this Agreement for the purposes herein
contained. 

          NOW,
THEREFORE, in consideration of the promises herein contained, and for other
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows: 

          1.
Engagement of Agent as Broker for the Properties. Owner hereby engages Agent as
a broker in connection with the purchase and sale of the Properties, upon the
conditions and for the term and compensation herein set forth. All or any
portion of the services being performed by Agent may be contracted or
subcontracted by Agent to another company, provided that such company agrees to
be bound by the terms of this Agreement. 

          2.
Term of Agreement; Renewal. This Agreement shall be valid for an initial term
of five (5) years ending ________ ________, 2015. Unless either party by
written notice sent to the other party at least sixty (60) days before the end
of any 5-year term hereof elects not to renew this Agreement, this Agreement
shall renew automatically for successive terms of five (5) years on the same
terms as contained herein. 

          3.
Acceptance of Engagement. Agent hereby accepts its engagement as a broker for
the purchase and sale of the Properties and agrees to perform all services
necessary to effectuate such purchases and sales which are customarily provided
by commercial real estate brokers, and, without limitation, Agent agrees: 

                    a.
To supervise, on behalf of Owner, the preparation of contracts of purchase or
sale for each Property, on such terms as are specified by Owner or its duly
authorized representatives, and all other documents related thereto or required
to effectuate such purchase or sale; 

                    b.
To coordinate the activities of, and act as liaison between Owner and,
independent professionals connected with the purchase or sale of a Property,
including attorneys, accountants, investment bankers, appraisers, engineers,
inspectors, lenders, if any, and others; 

                    c.
To assist Owner and its authorized representatives in satisfying any conditions
precedent to the purchase or sale of a Property, which shall include
contracting on behalf of Owner with any third parties whose services are
required to close any such purchase or sale; 

                    d.
To represent Owner at the closing of the purchase or sale of a Property, to
coordinate the activities of professionals and other third persons connected
with such closing, and to supervise the compliance by Owner with all
requirements and customary actions associated with such purchase or sale,
including, without limitation, the obtaining of property title insurance, the
delivery and recordation of deeds and other instruments of conveyance, and the
delivery and recordation, as required, of any documents evidencing loans
obtained or made by Owner; 

                    e.
Generally to act on behalf of Owner in connection with such purchase or sale as
a commercial real estate broker would customarily act with respect to such
transaction, including the provision of such additional services as would
normally be provided by such a person. 

          4.
Indemnification. Owner hereby agrees to indemnify and hold harmless Agent
against and in respect of any loss, cost or expense (including reasonable
investigative expenses and attorneys’ fees), judgment, award, amount paid in
settlement, fine, penalty and liability of any and every kind incurred by or
asserted against Agent by reason of or in connection with the engagement of Agent
hereunder, the performance by Agent of the services described herein or the
occurrence or existence of any event or circumstance which results or is
alleged to have resulted in death or injury to any person or destruction of or
damage to any property and any suit, action or proceeding (whether threatened,
initiated or completed) by reason of the foregoing; provided, however, that no
such indemnification of Agent shall be made, and Agent shall indemnify and hold
Owner harmless against, and to the extent of, any loss that a court of
competent jurisdiction shall, by final adjudication, determine to have resulted
from willful misconduct, gross negligence or fraud by or on the part of Agent. 

          5.
Compensation of Agent. 

                    (a)
Owner shall pay to Agent a real estate commission in connection with each
purchase of a Property in an amount equal to two percent (2%) of the gross
purchase price of the Property (which does not include amounts budgeted for
repairs and improvements), in consideration of Agent (or any person with whom
Agent subcontracts or contracts hereunder) performing the services provided for
in this Agreement in connection with the purchase of the Property. In
consideration of Agent (or any person with whom Agent subcontracts or contracts
hereunder) performing the services provided for in this Agreement in connection
with the sale of a Property, Owner shall pay to Agent the following: a real
estate commission in connection with the sale of a Property in an amount equal
to two percent (2%) of the gross sales price of the Property, if, but only if,
the sales price of the Property exceeds the sum of (A) Owner’s cost for the
Property (consisting of the original purchase price plus all capitalized costs
and expenditures connected with the Property), without any reduction for
depreciation, and (B) ten percent (10%) of such cost. If the person from whom
Owner purchases or to whom Owner sells a Property pays any fee to Agent, such
amount shall decrease the amount of Owner’s obligation to Agent. Furthermore,
Agent shall not be entitled to any real estate commission in connection with a
sale of a Property by Owner to Agent or any Affiliate of Agent or the purchase
of a Property by Owner from Agent or any Affiliate of Agent, but Agent will, in
such case, be entitled to payment by Owner of its Direct Costs in such regard.
The fees and expenses provided for herein shall be payable if Owner sells or
purchases a property, sells shares in Owner or purchases shares in the owner of
a property, effects a merger of Owner with another entity, or undertakes any
other transaction, the purpose or effect of which is, in essence, to dispose of
or purchase some or all Properties. In any case other than an actual sale or
purchase of Properties, Owner and Agent shall in good faith agree upon an
allocation of purchase price to each Property which is effectively disposed of
or purchased. For purposes of this Agreement, person no. 1 is an “Affiliate” of

-2-

person
no. 2 if (1) person no. 1 directly or indirectly controls, is controlled by, or
is under common control with, person no. 2, (2) person no. 1 owns or controls
10% or more of the voting securities or beneficial interests of person no. 2,
or (3) person no. 1 is an executive officer, director, trustee or general
partner of person no. 2; further if person no. 1 is an Affiliate of person no.
2, then person no. 2 is an Affiliate of person no. 1. Notwithstanding anything
to the contrary in the definition of “Affiliate,” an Affiliate of the Agent
shall be deemed to include, without limitation, any real estate investment
trust or similar program (in addition to Owner) organized by or at the
direction of Mr. Glade M. Knight for so long as Mr. Knight remains a director
or executive officer of such program. For purposes of this Agreement, Direct
Costs shall mean costs incurred to third parties by the Agent on behalf of
Owner, not including any “mark-up” of such costs. 

                    (b)
In the event Owner purchases, sells, conveys or otherwise transfers a Property
within ninety (90) days after the expiration of this Agreement to a person or
persons with whom Agent on behalf of Owner has negotiated as a prospective
purchaser or buyer of a Property during the term of this Agreement, Agent shall
be deemed to have earned the compensation provided in Section 5(a) and such
compensation shall be due and payable to Agent pursuant to the terms of this
Agreement; provided, however, that (i) Agent substantially performs all of the
duties and obligations that it would otherwise have under this Agreement if the
Agreement had not terminated, and (ii) Agent has given written notice to Owner
of the name of such purchaser or buyer prior to the expiration of the term of
this Agreement. 

                    (c)
Notwithstanding anything to the contrary in this Agreement, Owner shall not be
deemed to have acquired a Property from Agent or an Affiliate if (1) Agent or
an Affiliate enters into a purchase contract for a Property and then assigns
the purchase contract to Owner for nominal or no consideration, or (2) Agent or
an Affiliate acquires a Property as an accommodation for Owner, and then
transfers the Property to Owner at a price substantially equal to that paid by
Agent or the Affiliate for the Property. In either such case, Agent shall be
entitled to a real estate commission as if the Property were acquired by Owner
from a non-Affiliated seller. 

          6.
Expenses. 

                    (a)
Owner shall pay directly or reimburse the Agent for the following
expenses in addition to the compensation provided for in this Agreement: 

	
  

 	
  

 
	
  

 	
           (i) all
 costs of personnel used by Owner (whether employed by Owner or another
 entity) and involved in the business of Owner; 

 
	
  

 	
  

 
	
  

 	
           (ii) expenses
 incurred in connection with the initial investment of the funds of Owner,
 including all direct expenses incurred in connection with investigation and
 acquisition of Properties; 

 
	
  

 	
  

 
	
  

 	
           (iii) interest
 and other costs for borrowed money, including discounts, points and other
 similar fees; 

 
	
  

 	
  

 
	
  

 	
           (iv) taxes
 and assessments on income or property and taxes as an expense of doing
 business; 

 
	
  

 	
  

 
	
  

 	
           (v) fees
 and commissions, including finder’s fees and brokerage commissions with
 respect to the acquisition and disposition of assets of Owner, whether
 payable to an Affiliate of the Agent or an unrelated person, including,
 without limitation, costs of foreclosure, maintenance, repair and improvement
 of Property; 

 

-3-

	
  

 	
  

 
	
  

 	
           (vi) costs
 associated with insurance required in connection with the business of Owner
 or by its Board of Directors; 

 
	
  

 	
  

 
	
  

 	
           (vii) expenses
 of managing and operating real property owned by Owner, whether payable to an
 Affiliate of the Agent or an unrelated person; 

 
	
  

 	
  

 
	
  

 	
           (viii) fees
 and expenses of legal counsel for Owner; 

 
	
  

 	
  

 
	
  

 	
           (ix) fees
 and expenses of independent auditors and accountants for Owner; 

 
	
  

 	
  

 
	
  

 	
           (x) all
 expenses in connection with payments to the Board of Directors or any
 committee thereof and meetings of the Board of Directors or any committee
 thereof and Shareholders; 

 
	
  

 	
  

 
	
  

 	
           (xi) expenses
 associated with listing the Units on a national stock exchange or quoting the
 Units on the NASDAQ National Market System if requested by the Board of
 Directors, or with the issuance and distribution of any additional Units of
 Owner at any time, such as taxes, legal and accounting fees, listing and
 registration fees, and other expenses; 

 
	
  

 	
  

 
	
  

 	
           (xii) dividend
 and dividend distributions; 

 
	
  

 	
  

 
	
  

 	
           (xiii) expenses
 of organizing, revising, amending, converting, modifying or terminating
 Owner, the Articles of Incorporation or the Bylaws; 

 
	
  

 	
  

 
	
  

 	
           (xiv) expenses
 of maintaining communications with Shareholders, including the cost of
 preparation, printing, and mailing annual reports and other Shareholder
 reports, proxy statements and other reports required by governmental
 entities; and 

 
	
  

 	
  

 
	
  

 	
           (xv) all
 costs and expenses associated with the office space used by employees
 involved in the business of Owner. 

 

                    Expenses
incurred by the Agent on behalf of Owner and payable pursuant to this Section,
shall be reimbursed quarterly to the Agent within 60 days after the end of each
quarter. The Agent shall prepare a statement documenting the expenses of Owner
during each quarter, and shall deliver such statement to Owner within 45 days
after the end of each quarter. Notwithstanding anything in this Agreement to
the contrary, the Agent may direct that reimbursement amounts otherwise payable
to it by the Owner shall instead be paid directly by Owner to such person or
persons who or which are legally entitled thereto. 

	
  

 	
  

 	
  

 
	
  

 	
           (b) Except
 as otherwise provided herein, the Agent shall pay all expenses of performing
 its obligations under this Agreement, including, without limitation, the
 following expenses: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) employment
 expenses of the Agent, including, but not limited to, salaries, wages,
 payroll taxes, costs of employee benefit plans, and temporary help expenses,
 except to the extent that such expenses are otherwise reimbursable pursuant
 to Section 6(a) of this Agreement or the Articles of Incorporation or Bylaws;
 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) audit
 fees and expenses of the Agent; 

 

-4-

	
  

 	
  

 
	
  

 	
           (iii) legal
 fees and other expenses of professional services to the Agent; 

 
	
  

 	
  

 
	
  

 	
           (iv) rent,
 telephone, utilities and other office expenses of the Agent; 

 
	
  

 	
  

 
	
  

 	
           (v) insurance
 of the Agent; and all other administrative expenses of the Agent. 

 

          7.
Power of Attorney. Owner hereby makes, constitutes and appoints Agent its true
and lawful attorney-in-fact, for it and in its name, place and stead and for
its use and benefit to sign, acknowledge and file all documents and agreements
(other than contracts for purchase or sale of a Property, promissory notes,
mortgages, deeds of trust or other documents or instruments which would bind
Owner to purchase or sell a Property, result or evidence the incurrence of debt
by Owner, or encumber a Property) necessary to perform or effect the duties and
obligations of Agent under the terms of this Agreement. The foregoing power of
attorney is a special power of attorney coupled with an interest. It shall
terminate when this Agreement terminates as provided herein. 

          8.
Relationship of Parties. The parties agree and acknowledge that Agent is and
shall operate as an independent contractor in performing its duties under this
Agreement, and shall not be deemed an employee of Owner. 

          9.
Entire Agreement. This Agreement represents the entire understanding between
the parties hereto with regard to the transactions described herein and may
only be amended by a written instrument signed by the party against whom
enforcement is sought. 

          10.
Governing Law. This Agreement shall be construed in accordance with and be
governed by the laws of the Commonwealth of Virginia without regard to
conflicts of law. 

          11.
Exclusion of Third Party Beneficiary. This Agreement is not intended for the
benefit of any person or entity who is not a party to this Agreement, and no
such person or entity shall have any rights in connection with this Agreement,
whether for enforcement or otherwise. 

-5-

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

	
  

 	
  

 	
  

 
	
  

 	
 OWNER:

 
	
  

 	
  

 	
  

 
	
  

 	
 APPLE REIT TEN, INC.,

 
	
  

 	
  

 	
 a Virginia corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
    President

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 AGENT:

 
	
  

 	
  

 	
  

 
	
  

 	
 APPLE SUITES REALTY GROUP,
 INC.,

 
	
  

 	
  

 	
 a Virginia corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
    President

 
	
  

 	
  

 	

 

 

-6-

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