Document:

Asset Purchase Agreement

 Exhibit 10.1 

 
  

 
 ASSET PURCHASE AGREEMENT

 DATED AS OF JULY 13, 2011 
 BETWEEN 
 LODGEWORKS, L.P., 

SIERRA SUITES FRANCHISE, L.P., 
 THE SELLERS SET FORTH ON EXHIBIT A 
 AND 

HYATT CORPORATION 
  

 
  

 ASSET PURCHASE AGREEMENT 

This ASSET PURCHASE AGREEMENT, dated as of the 13th day of July, 2011 (this “Agreement”), is made among LodgeWorks, L.P., a Kansas limited
partnership (“LodgeWorks”), Sierra Suites Franchise, L.P., a Kansas limited partnership (the “Franchisor”), and the entities set forth on Exhibit A, all Kansas limited partnerships (each, a
“Seller” and collectively, “Sellers”; LodgeWorks, Franchisor and Sellers are collectively referred to as the “Selling Parties”); and Hyatt Corporation, a Delaware corporation
(“Purchaser”). 
 ARTICLE 1 

PURCHASE AND SALE; 
 PAYMENT OF CONSIDERATION 
  

	1.1	Purchase and Sale. Subject to the terms and on the conditions set forth in this Agreement, the Selling Parties agree to sell and convey and Purchaser agrees to
purchase the assets listed on Appendix 1.1(A), Appendix 1.1(B), and Appendix 1.1(C) (collectively, the “Assets”) in exchange for payment of the Purchase Price. For avoidance of doubt, the Selling Parties
are retaining the Excluded Assets. In consideration of the payment of $802,000,000 (the “Purchase Price”) by Purchaser to the Selling Parties, and other good and valuable consideration received by each of the parties hereto,
the Selling Parties agree to sell, assign, transfer and convey the Assets to Purchaser or one or more of its designees, and Purchaser agrees to, or to cause one or more of its designees to, purchase the Assets, in multiple Closings, in accordance
with the terms and conditions set forth herein. 

  

	1.2	The Deposit. Within ten days after receipt of a fully-executed version of this Agreement, Purchaser will place the Deposit with the Escrow Agent. The Escrow
Agent will hold the Deposit in an interest-bearing account in accordance with the terms and conditions of the Escrow Agreement. All interest accruing on such sums will become a part of the Deposit and will be distributed as part of the Deposit in
accordance with the terms of this Agreement. If Purchaser elects to continue this Agreement pursuant to Section 2.1(a) prior to the Inspection Period End Date, the Deposit becomes non-refundable and upon the Primary Closing will be
credited against the Purchase Price. 

  

	1.3	 Payment of the Purchase Price. Upon the Primary Closing, the Deposit will be credited to the Purchase Price for the Assets conveyed to Purchaser
by the Selling Parties at the Primary Closing. The balance of the portion of the Purchase Price payable for the Assets conveyed at the Primary Closing will be paid by Purchaser to the Selling Parties by wire transfer of immediately available funds
to the Escrow Agent at the Primary Closing. The Escrow Agent will disburse to the Selling Parties the portion of the Purchase Price payable for the Assets conveyed at the Primary Closing less the portion of the Holdback Escrow Amount allocable to
the Assets being conveyed at the Primary Closing. The portion of the Purchase Price and the portion of the Holdback Escrow Amount allocated to the Delayed Closing Hotels and the Hotel Sierra® King of Prussia will not be delivered by Purchaser to the Escrow Agent or paid to the applicable Seller until the Closing on those Assets occurs. Similarly, the
portion of the Purchase Price and the portion of the 

  
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Holdback Escrow Amount allocated to the Profit Component of Hotel
Sierra® Merrifield will not be paid until Completion of the Hotel Sierra® Merrifield. 

  

	1.4	The Escrow. The Holdback Escrow Amount will be deposited with the Escrow Agent in conjunction with the purchase of the Assets and in proportion to the Assets
that are purchased. 

  

	1.5	Independent Contract Consideration. Contemporaneously with the execution and delivery of this Agreement, Purchaser has delivered to the Selling Parties and the
Selling Parties hereby acknowledge the receipt of funds in the amount of One Hundred Dollars ($100), which amount the parties bargained for and agreed to as consideration for Purchaser’s right to inspect and purchase the Assets pursuant to this
Agreement and for the Selling Parties’ execution, delivery and performance of this Agreement. This consideration is in addition to and independent of any other consideration or payment provided in this Agreement, is nonrefundable, and is fully
earned and will be retained by the Selling Parties upon execution of this Agreement, notwithstanding any other provision of this Agreement. 

 ARTICLE 2 
 INSPECTION PERIOD; TITLE 

 

	2.1	Inspection Period. 

  

	 	(a)	 Purchaser will have the right to enter upon the Properties and the LodgeWorks Property to perform, at Purchaser’s expense, such economic,
surveying, engineering, topographic and marketing tests, studies and investigations, including environmental studies, as Purchaser may deem appropriate, provided Purchaser gives Sellers’ Representative at least one business day notice prior to
entering onto each Property. Upon execution of this Agreement, Sellers will provide to Purchaser all Phase I and Phase II environmental studies, engineering, asbestos, soil, fire inspection and ADA reports that Sellers have previously performed or
received with respect to the Properties and the LodgeWorks Property. In the event that the Purchaser’s Phase I environmental study of the Properties raises sufficient issues to necessitate the performance of Phase II or Phase III studies,
Purchaser will have the right to perform such studies on the relevant Properties. The cost of any new Phase II or Phase III studies of the Properties will be shared equally by the affected Seller and the Purchaser. At Purchaser’s discretion,
Purchaser may also complete additional investigations of the Properties, including UCC, lien, litigation, judgment and bankruptcy searches. If Purchaser does not notify Sellers’ Representative, in writing, prior to the expiration of the
Inspection Period that it elects to continue this Agreement and proceed to Closing, this Agreement will automatically terminate, and Purchaser will be released from any and all liability or obligation under this Agreement other than Purchaser’s
indemnification obligations given pursuant to the following sentence which will survive termination of this Agreement, and the Deposit will be immediately refunded to Purchaser. Purchaser will indemnify the Selling Parties for any loss, damage or
liabilities to the extent caused by 

  
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Purchaser’s acts at the Properties and the LodgeWorks Property in connection with exercising its rights under this Section 2.1(a). 

 

	 	(b)	The Selling Parties have provided Purchaser access to the following records and information concerning the Properties, the LodgeWorks Property, and the Third Party
Owned Hotels in the Selling Parties’ possession or control: (i) all existing architectural and engineering studies; (ii) all existing title insurance policies; (iii) all existing environmental audits, studies and reports;
(iv) all internal operating statements and audited financial statements for calendar years 2009 and 2010 (to the extent the respective Hotel was open during such period); (v) all operating and capital expenditure budgets for calendar year
2011; (vi) all Existing License Agreements; (vii) current property improvement plans, if any; (viii) list of all material permits and licenses; and (ix) list of all material operating and service contracts (collectively, with all
other documents reasonably requested by Purchaser hereunder, the “Due Diligence Documents”). The Purchaser will promptly provide the Selling Parties with a complete list that identifies any additional records and information
concerning the Properties, the LodgeWorks Property, and the Third Party Owned Hotels in the Selling Parties’ possession or control that the Purchaser has not been previously provided. Upon receipt of Purchaser’s request for additional
information, the Selling Parties will promptly make available to Purchaser, its agents, auditors, engineers, attorneys, and other designees for inspection copies of such requested records and information. None of the Selling Parties will be
obligated to create, generate, or order new documents to satisfy Purchaser’s requests. For purposes of this Section, the posting of Due Diligence Documents and any other records and information on the Selling Parties’ extranet site and the
delivery of the access code therefor, constitute delivery. Purchaser may, at its sole cost and expense, update and recertify any of the Surveys (the “Updated Surveys”). Purchaser will have the right to review the Updated
Surveys for a period of not less than ten (10) days after the Updated Surveys are available and the Inspection Period will be extended if necessary. The Selling Parties shall, as promptly as practicable, furnish to the Purchaser such financial
and other information with respect to the Selling Parties that would be required for the Purchaser to satisfy its obligations pursuant to Rule 3-05 and Article 11 of Regulation S-X under the Securities Act of 1933, as amended, with respect to the
Assets, including the calculation of the significance conditions referred to in Rule 3-05(b)(2), which the Purchaser may make available to its agents, auditors, engineers, attorneys, and other designees as set forth in this Section 2.1(b).

  

	 	(c)	 Purchaser (i) at its expense, may cause an examination of title, the Surveys and Updated Surveys to the Properties to be made, (ii) promptly
upon request provide the Sellers with copies of all title reports, Updated Surveys, environmental reports, engineering studies and any other third party generated Property-related due diligence data ordered by Purchaser, and (iii) prior to the
expiration of the Inspection Period, will notify Sellers of any defects in title and the Surveys or Updated Surveys, as the case may be, shown by such examination that Purchaser is unwilling to accept. If such defects consist of mortgages, deeds of
trust, 

  
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mechanics’ liens, tax liens or other liens or charges in a fixed sum or capable of computation as a fixed sum (“Monetary Defects”) or results from anything done by any Seller after
the Inspection Period End Date without Purchaser’s consent, Sellers will pay and discharge (in which event, the Escrow Agent is authorized to pay and discharge at Closing) all such obligations at or prior to Closing such that all such defects
are removed; provided that if such defects relate to the Leasehold Properties Seller will only be required to pay and discharge such obligations as they relate to the leasehold interest. Within ten days after Purchaser so notifies Sellers, Sellers
will notify Purchaser whether Sellers are willing to cure any defects that are not Monetary Defects. If the Sellers do not elect to cure such objectionable title and/or survey issues that are not Monetary Defects for any of the Properties
transferred at the Primary Closing, Purchaser may terminate this Agreement. If Sellers do not elect to cure such objectionable title and/or survey issues that are not Monetary Defects for any of the Properties transferred at any Closing after the
Primary Closing, the Purchaser may refuse to purchase such Properties, but may not terminate this Agreement. All title and survey exceptions other than those that are to be paid or cured as provided above, those first disclosed by the Title Company
after the date of Purchaser’s title examination for a Property, and those objected to by Purchaser prior to the Inspection Period End Date will be deemed Permitted Title Exceptions. Further, any title exception which is waived by Purchaser will
be a Permitted Title Exception. 

  

	 	(d)	During the Inspection Period, upon notice to Purchaser, the Selling Parties may update any of their respective Disclosure Schedules and the Development Pipeline
information in Exhibit D; provided that Selling Parties deliver such updates and any related underlying documents to Purchaser during the Inspection Period; provided further, Purchaser will have not less than ten days to review such documents
before the Inspection Period End Date. Prior to the expiration of the Inspection Period, the Selling Parties and Purchaser will agree to the final forms of the Appendices, Exhibits and Schedules as the same may be amended pursuant to the terms of
this Agreement. 

  

	 	(e)	All exhibits, schedules, agreements, certificates, the LodgeWorks Lease with SA L.P. and other documents required to be delivered pursuant to the provisions of this
Agreement for which a form is not attached hereto will be reasonably satisfactory in form, scope and substance to Purchaser and the Selling Parties on or before ten days prior to the expiration of the Inspection Period. 

 

	2.2	Conveyance of Title. At Closing, Sellers will convey and transfer to Purchaser good and marketable fee simple title to the Real Property (other than the
Leasehold Properties) and good and marketable leasehold title to the Leasehold Properties. Evidence of delivery of such marketable title will be the issuance to Purchaser or its designee at Closing of ALTA owner’s policies and leasehold
policies of title insurance covering all of the Real Property in the aggregate amount of the Purchase Price allocated to the Properties subject only to the Permitted Title Exceptions in the forms reasonably required by Purchaser (collectively, the
“Title Policies”). 

  
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	2.3	Access. During the Inspection Period, the Selling Parties will, and will cause their officers, directors, employees, auditors and agents, to provide the
Purchaser and its accountants, counsel, environmental consultants and other authorized representatives full access, during reasonable hours and under reasonable circumstances, to any and all of their premises, employees, officers, properties,
Contracts, commitments, books, records and other information, and the Selling Parties will furnish to the Purchaser and its authorized representatives, promptly upon request therefor, any and all financial, technical and operating data and other
information pertaining to the Assets and otherwise fully cooperate with the conduct of due diligence by the Purchaser and its representatives. 

 ARTICLE 3 
 PURCHASER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

 The representations, warranties, and covenants of the Purchaser are set forth in Appendix 3. 

ARTICLE 4 

SELLERS’ REPRESENTATIONS, WARRANTIES AND COVENANTS 
 The representations, warranties, and covenants of the Sellers are set forth in Appendix 4. 
 ARTICLE 5 
 LODGEWORKS’ REPRESENTATIONS, WARRANTIES AND COVENANTS

 The representations, warranties, and covenants of LodgeWorks are set forth in Appendix 5. 

ARTICLE 6 

FRANCHISOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS 

The representations, warranties, and covenants of Franchisor are set forth in Appendix 6. 

ARTICLE 7 

CONDITIONS AND ADDITIONAL COVENANTS 
  

	7.1	Conditions to Closing. The following conditions are precedent to Purchaser’s obligation to purchase the Assets and only apply at the Primary Closing unless
expressly stated otherwise (the “Conditions Precedent”): 

  

	 	(a)	Title Insurance. As of the Primary Closing Date or any subsequent Closing Date, as applicable, the Title Company will have issued or will have irrevocably
committed to issue the Title Policies subject only to Permitted Title Exceptions. 

  

	 	(b)	 Condition of Assets. Except for the Hotels Under Construction, at the Primary Closing and each subsequent Closing, the Property and the Tangible
Personal Property will be in substantially the same condition at Closing as they are as of the date hereof, reasonable wear and tear excepted. Except for the Excluded Assets, neither Seller nor LodgeWorks will have removed or caused or permitted

  
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to be removed any part or portion of the Tangible Personal Property unless the same is replaced, prior to Closing, with similar items of at least equal quality and condition and acceptable to
Purchaser. 

  

	 	(c)	 Utilities. Except for the Hotel Sierra® Merrifield project, all of the Utilities will be installed in and operating at the Properties; provided that the Utilities with respect to the Hotel Sierra® King of Prussia will be installed in and operating at such Property at the Closing of such Hotel which will occur in
accordance with the provisions of Appendix 7. 

  

	 	(d)	Deliveries Complete. During the Inspection Period, the Selling Parties will have delivered to Purchaser true and complete copies of the Due Diligence Documents
as required under Section 2.1(b) of this Agreement. 

  

	 	(e)	Non-Solicitation. Dr. Rolf E. Ruhfus will enter into a Non-Solicitation Agreement with Purchaser at Closing in the form of Exhibit E.

  

	 	(f)	Non-Competition. LodgeWorks will enter into Non-Competition Agreement with Purchaser at Closing in the form of Exhibit M. 

 

	 	(g)	Estoppel Certificates. 

  

	 	(i)	At least ten days prior to the Primary Closing Date, Seller will have delivered original estoppel certificates duly executed by counterparties to the Tenant Leases and
Land Leases (including, without limitation, the Ground Leases). Such estoppel certificates (the “Estoppel Certificates”) will be in form reasonably acceptable to Purchaser and will not disclose any defaults, offsets or
credits, bankruptcy or terms or conditions that vary from the terms disclosed in the Leases or contracts delivered to Purchaser. 

  

	 	(ii)	 LodgeWorks will use commercially reasonable efforts to receive and deliver original estoppel certificates duly executed by any owners associations
having jurisdiction over the properties. Such estoppel certificates (the “Owners Association Estoppel Certificates”) will be substantially in form reasonably acceptable to Purchaser and will not disclose any defaults, offsets
or credits, bankruptcy or terms or conditions that vary from the terms disclosed in the Leases or contracts delivered to Purchaser. If any of the Owners Association Estoppel Certificates have not been delivered by such counterparties as of the date
that is ten days prior to the Primary Closing Date, then Seller will deliver an estoppel certificate at the respective Closing executed by Seller in such forms as are reasonably acceptable to Purchaser and will also provide Purchaser an
indemnification, not subject to the limitations in Appendix 10.3, for any loss resulting from defaults, offsets or credits, bankruptcy or terms or conditions that vary from the terms disclosed in the Leases or contracts to which the estoppel
certificates relate which losses would not have 

  
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occurred if a duly executed Owners Association Estoppel Certificate would have been delivered. 

  

	 	(h)	Proceedings. From the Inspection Period End Date until the Primary Closing Date and any subsequent Closing Date, there will be no undisclosed litigation or
administrative agency or other governmental proceeding, pending or threatened, against or involving the Assets, which would prevent the sale of the Assets. For purposes of this Section 7.1(h) and Section 7.1(i), a matter will
be deemed “undisclosed” if it was not disclosed in the Disclosure Schedules during the Inspection Period. 

  

	 	(i)	No Violations. From the Inspection Period End Date until the Primary Closing Date and any subsequent Closing Date, there will be no undisclosed current
violations of any applicable local, state, regional and/or federal orders, ordinances, laws, statutes, rules or regulations (any of the foregoing, “Laws”), including without limitation any Environmental Laws, and no
undisclosed current failure to obtain any required permits, certificates or approvals which after Closing would prevent the Purchaser from operating the respective Property or Properties. 

 

	 	(j)	No Default. From the Inspection Period End Date until the Closing Date, no event will have occurred and be continuing which would constitute a default or event
of default under any Assumed Contract which after Closing would prevent the Purchaser from operating the Properties. 

  

	 	(k)	Representations, Warranties and Covenants. From the Inspection Period End Date until the Primary Closing Date and each subsequent Closing Date, each Selling
Party will have performed in all material respects each and every covenant required to be performed by such Selling Party under this Agreement and each of Selling Parties’ representations and warranties set forth in this Agreement will be true
and complete as of the applicable Closing Date. All materials furnished by the Selling Parties to Purchaser will be true and complete. Except as permitted pursuant to this Agreement, there will be no amendments, alterations or modifications thereof
that have not been furnished to Purchaser before the Inspection Period End Date, and no Selling Party will be aware of any other information that would make such information and documents furnished to Purchaser misleading in any material respect as
of the applicable Closing Date. 

  

	 	(l)	Purchaser’s Board of Directors Approval. The Purchaser’s Board of Directors will have approved the purchase of the Assets. 

The Conditions Precedent are intended solely for the benefit of Purchaser. At the time of the Primary Closing, if any of the Conditions Precedent is not
timely satisfied, Purchaser will have the right in its sole discretion to either terminate this Agreement or waive in writing the Condition Precedent and proceed with the Closing. At the time of any subsequent Closing, if any of the Conditions
Precedent is not timely satisfied, Purchaser will have the right in its sole discretion to either: (i) if the failure of the condition is monetary in nature, demand that the failed 

  
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condition be cured by the applicable Selling Party by the payment of money within 10 days of such demand, but in the event of a dispute, the applicable Selling Party may post a bond for the full
amount pending resolution of the dispute; (ii) if the failure of the condition cannot be cured and is not of a monetary nature, negotiate in good faith with the applicable Selling Party for an adjustment to the applicable portion of the
Purchase Price; or (iii) defer the Closing until the condition is satisfied (which may include specific performance as provided in Section 9.1(b)). Except as specifically provided for herein, termination of this Agreement by any party is
not permitted at any time for any reason after the Primary Closing. 
  

	7.2	Selling Parties’ Conditions. The following conditions are precedent to the Selling Parties’ obligation to sell the Assets at the Primary Closing and
each subsequent Closing (the “Selling Parties’ Conditions”): 

  

	 	(a)	Deposit of Funds. Purchaser will have deposited the applicable portion of the Purchase Price into escrow, as adjusted for prorations and costs provided for in
this Agreement. 

  

	 	(b)	Deliveries Complete. Purchaser will have delivered to Escrow Agent the documents listed in Appendix 8 of this Agreement. 

 

	 	(c)	Representations, Warranties and Covenants. Purchaser will have performed in all material respects each and every covenant required to be performed by Purchaser
under this Agreement, and all of Purchaser’s representations and warranties set forth in this Agreement will be true and complete in all material respects as of the applicable Closing Date. 

 

	 	(d)	Proceedings. There will be no injunction, court order, or administrative agency or other governmental proceeding, pending or threatened, that would prevent the
sale of the Assets. 

 The Selling Parties’ Conditions are intended solely for the benefit of the Selling Parties. If any of
the Selling Parties’ Conditions are not timely satisfied, any Selling Party will have the right in its sole discretion either to terminate this Agreement or waive in writing the applicable Selling Party’s Condition and proceed with the
Closing. 
  

	7.3	Additional Covenants. 

  

	 	(a)	 Liquor License. LodgeWorks, Sellers, and Purchaser will or will cause their affiliates to use commercially reasonable efforts, which efforts
will commence upon execution of this Agreement, at the sole cost of Purchaser, to obtain all governmental approvals to transfer any liquor license used in connection with the operation of the Properties to Purchaser as soon as reasonably possible.
Sellers and LodgeWorks will cooperate, and will cause their affiliates to cooperate, with Purchaser, to the extent not prohibited by applicable Law, in endeavoring to allow Purchaser or its designee to use the existing liquor licenses for the
Properties to operate the facilities in the Properties presently serving liquor until Purchaser obtains the transfer of the existing liquor licenses or new liquor licenses; provided that, Purchaser will indemnify and hold harmless the Selling
Parties against any 

  
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liability which may arise by reason of Purchaser’s service of alcoholic beverages or use of the existing liquor licenses for the Properties while the same are held by Sellers from and after
Closing. To the extent not prohibited by applicable law, Sellers will execute all documents necessary to effectuate the transfer of such existing liquor licenses and will enter into one or more agreements (each an, “Alcoholic Beverage
Services Agreement”) with Purchaser or its designees, in the form of Exhibit J attached hereto, which will permit Purchaser or its designees to have use of each such existing liquor license from the Closing Date until the earlier
of (a) Purchaser’s receipt of a replacement liquor license (which Purchaser agrees to make diligent efforts to procure), or (b) six months after the Closing Date, except that this six month period will be extended for an additional
reasonable period of time (not to exceed one year) to the extent Purchaser is continuing to use commercially reasonable efforts to obtain a replacement liquor license, but due to circumstances beyond the control of Purchaser, such license cannot be
obtained within the six month period. 

  

	 	(b)	Employees. 

  

	 	(i)	Termination and Rehiring of Employees. Purchaser will or will cause its affiliate to offer employment to any Employees as Purchaser deems appropriate in its sole
discretion. LodgeWorks will terminate the employment of any Employees that accept employment with Purchaser, effective as of the Primary Closing Date. The Employees who accept such offers of employment are referred to collectively herein as the
“Rehired Employees.” The employment of the Rehired Employees will be on such terms as Purchaser (or its affiliate) deems appropriate consistent with Purchaser’s standard policies and practices, but all Rehired Employees
will receive service credit with Purchaser dating back to their original hire date as set forth in LodgeWorks’ records and will receive a credit with Purchaser for all paid time off that they have accrued with LodgeWorks and not taken as of
Closing for which Purchaser is compensated. Purchaser will receive a credit to the Purchase Price from the Selling Parties for the value of the aggregate of such paid time off for the Rehired Employees that is assumed by Purchaser, to the extent
permitted by state laws. 

  

	 	(ii)	Payments. LodgeWorks will continue to process and pay all claims for employee benefits to all Employees and the qualified beneficiaries of such Employees under
Seller Employee Plans to the extent the services underlying such claims are provided prior to the Primary Closing Date and are covered under the applicable Seller Employee Plans, except to the extent Purchaser receives a credit for such employee
benefits. LodgeWorks will be responsible for any severance payments and any liability with respect to any person due to such person’s status prior to Closing as an Employee. 

  
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	 	(c)	Property Development. LodgeWorks has expended capital (and will continue to expend capital until the Primary Closing) on property development projects relating
to the acquisition and development of certain properties (“Development Pipeline”) all as set forth on Exhibit D (which Exhibit may be updated by LodgeWorks before the Primary Closing). 

 

	 	(d)	Hotels Under Construction. Additional covenants related to the Hotels Under Construction are set forth in Appendix 7. 

 

	 	(e)	Hotel Management Agreements and Existing License Agreements. At the applicable Closing, the applicable Selling Party will transfer to Purchaser or its designee
all rights of such Selling Party in the Hotel Management Agreements and Existing License Agreements set forth in Exhibit H with respect to the Hotels and the Third Party Owned Hotels, at no cost to Purchaser, provided that:

  

	 	(i)	The applicable Selling Party will transfer to Purchaser (or its designee) all of such Selling Party’s interest in all Existing License Agreements between a Selling
Party and Purchaser (or an affiliate of Purchaser) with respect to any Hotels or Third Party Owned Hotels. Purchaser will waive any termination fees or costs associated with the transfer of any Existing License Agreements with Purchaser, as licensor
or franchisor, existing as of the date hereof. 

  

	 	(ii)	 LodgeWorks will assign its interest in the Hotel Management Agreement with respect to the Hotel
Sierra® Alpharetta, GA to Purchaser (or its designee) which assignment will only be effective until such hotel
is sold by LodgeWorks. 

  

	 	(f)	Lease. At the applicable Closing, the applicable Sellers will assign and Purchaser or its designee will assume such Sellers’ rights in the Leases described
in Exhibit H with respect to the Properties that are the subject of such Closing, including the Ground Leases, the Restaurant Lease, the Van Leases and the Garage Leases. 

 

	 	(g)	LodgeWorks Lease. At the Primary Closing, Purchaser and SA, L.P., an affiliate of LodgeWorks and the fee owner of the LodgeWorks Property, will enter into the
LodgeWorks Lease, the form of which will be agreed to at least ten days prior to the Inspection Period End Date. 

  

	 	(h)	Contracts. From the Inspection Period End Date until the applicable Closing Date or earlier termination of this Agreement, but not including the Hotels Under
Construction, the Sellers will not, without Purchaser’s prior written consent, which will not be unreasonably withheld, delayed, or conditioned, (i) amend, extend, renew or terminate any existing Tenant Lease, Land Lease, Material
Contract, Approval, Hotel Management Agreement or Existing License Agreement, nor (ii) enter into any new written contract that has a value greater than $10,000 per year, Tenant Lease, Land Lease, Equipment Lease, Approval, or License
Agreement. 

  
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	 	(i)	Notices of Certain Events. The Selling Parties will promptly notify the Purchaser of: 

 

	 	(i)	any change or event that, individually or in the aggregate, has had or could reasonably be expected to result in any representation or warranty of any of the Selling
Parties hereunder being inaccurate in any material respect; 

  

	 	(ii)	any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated
hereby; 

  

	 	(iii)	any notice or other communication from any Governmental Body in connection with the transactions contemplated hereby; 

 

	 	(iv)	any action, suit, claim, investigation (other than regular, routine investigations under applicable Law, workers compensation claims, claims under benefit plans, or
health insurance claims) or proceeding commenced or, to the Knowledge of the Selling Parties, threatened against, relating to or involving or otherwise affecting the Selling Parties; and 

 

	 	(v)	(A) the damage or destruction by fire of any Asset or part thereof, (B) or other casualty of any Asset or part thereof having a book value of $5,000 or more or
(C) any Asset or part thereof becoming the subject of any proceeding (or, to the Knowledge of the Selling Parties, any threatened proceeding) for the taking thereof or of any right relating thereto by condemnation, eminent domain or other
similar governmental action. 

  

	 	(j)	No Solicitation of Transactions. None of the Selling Parties nor any of their respective officers, directors, managers, agents or advisors will directly or
indirectly in any manner (a) entertain, solicit or encourage, (b) furnish or cause to be furnished any information to any Persons (other than the Purchaser and its officers, directors, managers, agents and advisors) in connection with, or
(c) negotiate or otherwise pursue, any proposal or discussions for or in connection with any equity or debt investment in the Selling Parties, or any possible sale of the Selling Parties or any of the Assets, no matter how structured (an
“Alternative Transaction”). The Selling Parties will immediately notify the Purchaser in writing of (i) the receipt of any inquiry or proposal regarding any Alternative Transaction or any requests for any information
relating to the Selling Parties including all relevant terms or for access to the properties, books or records of the Selling Parties, by any Person which has informed the Selling Parties that such Person or entity is considering making, or has
made, an Alternative Transaction, and (ii) the terms of any such Alternative Transaction. In the event such inquiry or proposal is in writing, the Selling Parties will deliver to the Purchaser a copy of such inquiry or proposal together with
such written notice. 

  
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	 	(k)	Pre-Closing Interim Operation. 

  

	 	(i)	Operating in Ordinary Course. The Selling Parties covenant that between the date hereof and the Closing Date, the Selling Parties will (A) operate the
Business in a manner consistent with prior practice; (B) maintain the books of account and records in a manner consistent with prior practice; (C) use all commercially reasonable efforts to preserve intact the Business; (D) maintain
the quality and condition of the Real Property and Tangible Personal Property in the same or better quality and condition as they are as of the date hereof; (E) keep available the services of the Business and preserve their relationships with
suppliers and others having business dealings with them; (F) perform all obligations of such Selling Party under all Leases, Approvals, Contracts, Hotel Management Agreements and Existing License Agreements; (G) maintain the inventories of
FF&E, Supplies, F&B and Retail Merchandise at levels maintained in the ordinary course of business; (H) use commercially reasonable efforts to maintain staffing at the Hotels at levels maintained in the ordinary course of business;
(I) perform maintenance and repairs for the Property and Tangible Personal Property in the ordinary course of business; and (J) maintain insurance coverages consistent with Purchaser’s policies for its owned hotels. LodgeWorks will
continue to take guest room reservations and to book functions and meetings and otherwise to promote the business of the Properties, in a manner consistent with prior practice. 

 

	 	(ii)	Representations and Warranties. Each of the parties hereto will refrain from taking any action which knowingly violates or could reasonably be expected to
violate any representation or warranty contained in this Agreement. 

  

	 	(iii)	No Substantial Changes. From and after the Inspection Period End Date to the Closing Date, the Selling Parties will not, without the prior written consent of
Purchaser, (A) except for the Hotels Under Construction, make, cause to be made, or permit to be made any material physical change to the Assets or (B) sell or otherwise dispose of any of the Assets (except inventory in the ordinary course
of Business). 

  

	 	(l)	Assumed Contracts. Purchaser will assume and perform the Assumed Contracts as of the Primary Closing Date or any subsequent Closing Date, as applicable.
Purchaser will also assume the liability for and honor any Gift Certificates – Promotional and Gift Certificates - Purchased. 

  

	 	(m)	Title Policies for Hotels Under Construction. The parties will cooperate with the Title Company to determine exception language that is reasonably acceptable to
the Purchaser to cover the Hotels Under Construction. 

  

	 	(n)	 Post Closing Audit and Reporting. Sellers acknowledge that audited financial statements and operating reports and statements pertaining to the
net operating 

  
 12 

	 	
income (including, without limitation, rental revenue, repairs and maintenance expenses, utilities, payroll, real estate taxes, insurance, management fees, etc.) of the Properties for one prior
calendar year of operation and the portion of the calendar year in which the Closing occurs up to the Closing Date may be required to be filed by Purchaser with the Securities and Exchange Commission after the Closing. Accordingly, the Sellers agree
to provide Purchaser and its representatives with access to Sellers’ books and records after the Closing upon reasonable advance notice in order to conduct the required audit, all at Purchaser’s expense. 

 

	 	(o)	Post Closing Claims. After the Primary Closing or any subsequent Closing, in the event that any Selling Party has a claim against a vendor with which Hyatt does
business, and such claim was an Excluded Asset, the Selling Parties will cooperate with Hyatt to minimize damage to Hyatt in the pursuit of such claims; provided however, the Selling Parties are not obligated to abandon or not pursue such claims.

  

	 	(p)	Due Diligence Documents. Without warranting the accuracy of Due Diligence Documents prepared by third parties, no Due Diligence Document provided by the Selling
Parties contains any untrue material information and the Due Diligence Documents do not omit any material information or document necessary to make the Due Diligence Documents not misleading.

 

	 	(q)	Updates. The Selling Parties will promptly update and supplement the Sellers’ Disclosure Schedules, the Franchisor’s Disclosure Schedules, and
LodgeWorks’ Disclosure Schedules and the Exhibits attached to this Agreement, as necessary to reflect any material changes to the matters set forth in the Disclosure Schedules and the Exhibits from the date hereof through each Closing.

 ARTICLE 8 
 CLOSING 
  

	8.1	 Primary Closing. Closing hereunder will be held and delivery of all items to be made at the respective Closing (except as otherwise expressly
provided) will be made at the offices of Escrow Agent on or before 11:00 a.m. Central on the applicable Closing Date and may be conducted via telephone or email. The Primary Closing for all of the Assets other than the Delayed Closing Hotels and the
Hotel Sierra® King of Prussia will occur on either August 31, 2011, or the last business day of another
month on or before October 31, 2011, as specified in a notice from Purchaser to the Selling Parties (provided such notice will be delivered no later than 14 days prior to such indicated Closing Date) but in no event later than October 31,
2011, or such other date as reasonably agreed to by the parties (the “Primary Closing Date”). 

  

	8.2	 Delayed Closing Hotels. The Closing Date for the Delayed Closing Hotels, which will occur on a month end date and on or after the Primary
Closing Date, will be as follows: (a) HSS Burlington will close on November 1, 2011, effective October 31, 2011; (b) Hotel Sierra San Ramon will close on or after January 1, 2012, effective December 31,

  
 13 

	 	
2011; and (c) Hotel Sierra Branchburg will close on March 1, 2012, effective February 29, 2012. The Purchase Price allocable to the Delayed Closing Hotels is set forth on Schedule
8.2. On the Primary Closing Date, the undated Seller’s Closing Documents related to the Delayed Closing Hotels will be placed into escrow with the Escrow Agent pursuant to the Escrow Agreement. During the time between the Primary Closing Date
and the applicable Closing Date for such Delayed Closing Hotel: 

  

	 	(a)	All profit and loss and all risk of loss will remain with the applicable Seller subject to the provisions of Section 9.1; 

 

	 	(b)	All management fees will accrue to Purchaser; 

  

	 	(c)	The applicable Seller will pay all taxes, insurance, loan payments, and any breakage fee, and 

 

	 	(d)	The representations and warranties of the applicable Sellers related to the Delayed Closing Hotels set forth in this Agreement will be true and complete.

  

	8.3	Hotel Sierra® King of Prussia Closing. The Closing Date for the Hotel Sierra® King of Prussia may occur after the Primary Closing Date in accordance with
the provisions of Appendix 7. 

  

	8.4	Closing Costs. 

  

	 	(a)	Except as provided below, all escrow fees, filing fees, transfer fees, recording fees, transfer, sales or other similar taxes due with respect to the transfer of each
Property or Asset will be paid (i) one half by the Selling Parties and (ii) one half by the Purchaser. 

  

	 	(b)	All fees and costs associated with the satisfaction, discharge and/or termination of Sellers’ financing will be paid by Sellers. 

 

	 	(c)	The costs for obtaining new Title Policies will be paid by the Purchaser. The costs of any mortgage registration tax or mortgage recording fees with respect to
Purchaser’s financing will be paid by the Purchaser. 

  

	 	(d)	The costs for obtaining the Updated Surveys and environmental reports are set forth in Article 2. 

 

	 	(e)	All fees and costs associated with the assignment of the Leases will be paid by the Selling Parties. 

 

	 	(f)	All fees and costs of obtaining all consents (both of affiliates and third parties), penalties, fees or expenses required or incurred in connection with the transfer of
the acquired Assets will be the responsibility of the Selling Parties, including, without limitation, any breakage, defeasance or unwind costs associated with existing debt or obligations resulting from termination of any existing Hotel Management
Agreement, Existing License Agreement or similar agreements. 

  
 14 

	 	(g)	All other fees, costs and expenses not expressly addressed in this Section 8.2 or elsewhere in this Agreement will be allocated between the Selling Parties
and Purchaser in accordance with applicable local custom for similar transactions. 

  

	8.5	Tax Allocation. Exhibit C contains the agreed allocation of the Purchase Price for the various Assets as of the Agreement Date, which allocation may be
adjusted in accordance with the provisions of Section 2.1(d). The Selling Parties and Purchaser agree to prepare their respective Internal Revenue Service Forms 8594 with respect to the sale of the Assets in a manner that is consistent
with the Purchase Price allocation contained in Exhibit C, as may be adjusted. 

 ARTICLE 9

 RISK OF LOSS 
  

	9.1	Risk of Loss. The risk of any loss or damage to the Assets prior to the Closing will remain upon the Selling Parties. In the event any Property is damaged,
destroyed, or condemned prior to the applicable Closing Date. This Agreement will remain in full force and effect and Purchaser will acquire the Assets upon the terms and conditions set forth herein. The applicable Seller will assign to Purchaser
any proceeds of insurance (including rental interruption and business interruption insurance) awards and the Purchase Price will be reduced by the amount of the applicable Seller’s deductible, the amount of insurance proceeds retained by a
Selling Party and, in the case of uninsured loss, the cost of repair. In the event of a condemnation, the Seller will assign the Purchaser the condemnation award. 

 ARTICLE 10 
 The indemnification provisions are set forth in Appendix
10 and are incorporated by reference herein as if fully set forth. 
 ARTICLE 11 

MISCELLANEOUS PROVISIONS 
  

	11.1	Completeness; Modification. This Agreement and the documents and instruments to be executed pursuant to the terms hereof constitute the entire agreement between
the parties hereto with respect to the transactions contemplated hereby and supersede all prior discussions, understandings, agreements and negotiations between the parties hereto. This Agreement may be modified only by a written instrument duly
executed by the parties hereto. 

  

	11.2	Assignments. Purchaser may assign its rights hereunder to any affiliate of it without the consent of the Selling Parties. No such assignment will relieve
Purchaser of any of its obligations and liabilities hereunder. Selling Parties may not assign their rights hereunder without the consent of Purchaser. 

  

	11.3	Termination; Remedies. 

  

	 	(a)	Termination. The parties may terminate this Agreement as provided below: 

  
 15 

	 	(i)	The Purchaser and the Sellers’ Representative may terminate this Agreement by mutual written consent at any time prior to the Primary Closing.

  

	 	(ii)	The Purchaser may terminate this Agreement by giving written notice to the Sellers’ Representative at any time prior to the Inspection Period End Date.

  

	 	(iii)	The Purchaser may terminate this Agreement after the Inspection Period End Date prior to the Primary Closing in the event any of the Sellers, LodgeWorks, or the
Franchisor are in material breach of any representation, warranty, covenant or closing condition contained in this Agreement and such breach has not been cured within 30 days after notice of such breach. 

 

	 	(iv)	The Sellers’ Representative may terminate this Agreement by giving written notice to Purchaser at any time prior to the Primary Closing in the event Purchaser is
in material breach of any representation, warranty, covenant or closing condition contained in this Agreement and such breach has not been cured within 30 days after notice of such breach. 

 

	 	(v)	The Purchaser may terminate this Agreement on or after January 1, 2012, if the Primary Closing Date did not occur on or prior to the close of business (Central
Time) on December 30, 2011; provided that Purchaser is not in material breach of any of its representations, warranties or covenants contained in this Agreement; and provided further, that Purchaser will not be entitled to terminate this
Agreement if Purchaser’s willful or knowing breach of this Agreement has prevented the consummation of the transactions contemplated hereby. 

  

	 	(vi)	The Sellers’ Representative may terminate this Agreement on or after January 1, 2012, by giving written notice to Purchaser if the Primary Closing Date did
not occur on or before the close of business (Central Time) on December 30, 2011; provided that none of the Selling Parties are in material breach of any of their respective representations, warranties or covenants contained in this Agreement;
and provided, further, that the Sellers’ Representative will not be entitled to terminate this Agreement if the willful or knowing breach of this Agreement by any of the Selling Parties has prevented the consummation of the transactions
contemplated hereby. 

  

	 	(b)	Remedies. 

  

	 	(i)	 In the event the Primary Closing does not occur because of a breach or default under this Agreement by Purchaser, the Deposit will be paid to and
retained by the Selling Parties as liquidated damages and as the Selling Parties’ sole remedy for such breach or default. The parties have agreed 

  
 16 

	 	
that the Selling Parties’ actual damages in such event would be extremely difficult or impracticable to determine. THEREFORE, BY PLACING THEIR INITIALS BELOW, THE PARTIES ACKNOWLEDGE THAT
THE DEPOSIT HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF THE SELLING PARTIES’ DAMAGES AND AS THE SELLING PARTIES’ EXCLUSIVE REMEDY AGAINST BUYER, AT LAW OR IN EQUITY, IN THE EVENT THE SALE OF THE
PROPERTY TO BE CONVEYED AT THE PRIMARY CLOSING IS NOT CONSUMMATED BY REASON OF A BREACH OR DEFAULT UNDER THIS AGREEMENT BY PURCHASER. 

  

			
	 INITIALS:
	    	Buyer         MSH            
		
		    	Sellers’ Representative         RRB            

		
		    	Franchisor         BAI            

  

	 	(ii)	In the event a Delayed Closing does not occur because of a breach or default under this Agreement by Purchaser that results in a failure to consummate a Delayed
Closing, the Seller may elect to terminate this Agreement solely as to the Property subject to the failed Delayed Closing by delivery of notice of termination to Purchaser. The affected Seller will be entitled to exercise any and all remedies
available at law or in equity, singly or in any combination, with respect to the enforcement of the obligations and liabilities of the Purchaser under this Agreement. 

 

	 	(iii)	 In the event of a breach or default under this Agreement by any Selling Party that results in a failure to consummate the Primary Closing, Purchaser
may elect to (A) terminate this Agreement by delivery of notice of termination to Sellers’ Representative, the Deposit plus interest accrued thereon will be returned to Purchaser and Purchaser may recover Purchaser’s Costs, as defined
in Section 11.3(b)(vi); or (B) continue this Agreement pending Purchaser’s action for specific performance hereunder, which action shall provide for any damages, as well as costs and attorneys’ fees, associated with such
failure of performance. In connection with the exercise of such action for specific performance, Purchaser may file lis pendens on the Properties which are to be conveyed at the Primary Closing. “Purchaser’s
Costs” shall mean all out-of-pocket costs and expenses incurred by Purchaser in the negotiation, execution, performance, permitted actions or due diligence review under or in connection with this Agreement. Purchaser will be entitled to
exercise any and all remedies available at law or in equity, singly or in any combination, with respect to the enforcement of the obligations and liabilities of the Selling Parties under this Agreement (including breach of a representation or
warranty under this Agreement) which are to survive each Closing or in any Closing Document, but all remedies at law are 

  
 17 

	 	
subject to the limitations and thresholds contained in the indemnification provisions set forth in Appendix 10. 

 

	 	(iv)	In the event a Delayed Closing does not occur because of a breach or default under this Agreement by the affected Seller that results in a failure to consummate a
Delayed Closing, Purchaser may (A) waive the default and close; (B) defer the Closing and continue this Agreement pending Purchaser’s action for specific performance hereunder, which action shall provide for any damages, as well as
costs and attorneys’ fees, associated with such failure of performance; or (C) if the default or failure to close is caused by a failure of a Condition Precedent, take the actions described in Section 7.1. Purchaser will be entitled
to exercise any and all remedies available at law or in equity, singly or in any combination, with respect to the enforcement of the obligations and liabilities of the Selling Parties under this Agreement (including breach of a representation or
warranty under this Agreement) which are to survive the Closing or in any Closing Document, but all remedies at law are subject to the limitations and thresholds contained in the indemnification provisions set forth in Appendix 10.

  

	 	(v)	In connection with the exercise of such action for specific performance by Purchaser pursuant to Sections 11.3(b)(iv) and (v) above, Purchaser may
file lis pendens on the affected Property. “Purchaser’s Costs” shall mean for the Primary Closing only all out-of-pocket costs and expenses incurred by Purchaser in the negotiation, execution, performance,
permitted actions or due diligence review under or in connection with this Agreement. For the Delayed Closing, Purchaser’s Costs shall mean only the additional fees and costs incurred to enforce specific performance against the Escrow Agent
holding the applicable Seller’s Closing Documents. 

  

	11.4	The Selling Parties’ Representative. 

  

	 	(a)	By the execution and delivery hereof, including counterparts hereof, each of the Sellers, LodgeWorks, and Franchisor hereby irrevocably constitute and appoint
LodgeWorks as the true and lawful agent and attorney-in-fact (the “Sellers’ Representative”) of Sellers, LodgeWorks, and/or Franchisor with full powers of substitution to act in the name, place and stead of Sellers,
LodgeWorks, and/or Franchisor with respect to the performance on behalf of Sellers, LodgeWorks, and/or Franchisor under the terms and provisions hereof and to do or refrain from doing all such further acts and things, and to execute all such
documents, as the Sellers’ Representative may deem necessary or appropriate in connection with any transaction contemplated hereunder, including the power to: 

 

	 	(i)	act for Sellers, LodgeWorks, and/or Franchisor with respect to all indemnification matters referred to herein, including the right to compromise or settle any such
claim on behalf of Sellers, LodgeWorks, and Franchisor; 

  
 18 

	 	(ii)	amend or waive any provision hereof (including any condition to Closing) in any manner that does not differentiate among Sellers, LodgeWorks, and/or Franchisor;

  

	 	(iii)	employ, obtain and rely upon the advice of legal counsel, accountants and other professional advisors as the Sellers’ Representative, in the sole discretion
thereof, deems necessary or advisable in the performance of the duties of the Sellers’ Representative; 

  

	 	(iv)	receive and provide a receipt for any portion of the Purchase Price or any other payment due from the Purchaser to Sellers, LodgeWorks, and/or Franchisor pursuant to
this Agreement; 

  

	 	(v)	act for Sellers, LodgeWorks, and/or Franchisor with respect to all Purchase Price matters and all Purchase Price adjustment matters referred to herein;

  

	 	(vi)	incur any expenses, liquidate and withhold assets received on behalf of Sellers, LodgeWorks, and/or Franchisor prior to their distribution to Sellers, LodgeWorks,
and/or Franchisor to the extent of any amount that the Sellers’ Representative deems necessary for payment of or as a reserve against expenses, and pay such expenses or deposit the same in an interest-bearing bank account established for such
purpose; 

  

	 	(vii)	receive all notices, communications and deliveries hereunder on behalf of Sellers, LodgeWorks, and/or Franchisor; and 

 

	 	(viii)	do or refrain from doing any further act or deed on behalf of Sellers, LodgeWorks, and/or Franchisor that the Sellers’ Representative deems necessary or
appropriate, in the sole discretion of the Sellers’ Representative, relating to the subject matter hereof as and completely as Sellers, LodgeWorks, and Franchisor could do if personally present and acting and as though any reference to Sellers,
LodgeWorks, and Franchisor herein was a reference to the Sellers’ Representative. 

  

	 	(b)	 The appointment of the Sellers’ Representative will be deemed coupled with an interest and will be irrevocable, and any other Person may
conclusively and absolutely rely, without inquiry, upon any action of the Sellers’ Representative as the act of Sellers, LodgeWorks, and Franchisor in all matters referred to herein. Sellers, LodgeWorks, and Franchisor hereby ratify and confirm
that the Sellers’ Representative will do or cause to be done by virtue of the Sellers’ Representative’s appointment as Sellers’ Representative of Sellers, LodgeWorks, and Franchisor. The Sellers’ Representative will act for
Sellers, LodgeWorks, and Franchisor on all of the matters set forth herein in the manner the Sellers’ Representative believes to be in the best interest of Sellers, LodgeWorks, and Franchisor, but the Sellers’ Representative will not be
responsible to Sellers, LodgeWorks or Franchisor for any loss or damage Sellers, LodgeWorks, and/or 

  
 19 

	 	
Franchisor may suffer by reason of the performance by the Sellers’ Representative of the Sellers’ Representative’s duties hereunder, other than loss or damage arising from willful
misconduct or gross negligence in the performance of the Sellers’ Representative’s duties hereunder. 

  

	 	(c)	Sellers, LodgeWorks, and Franchisor hereby expressly acknowledge and agree that the Sellers’ Representative is authorized to act on behalf of Sellers, LodgeWorks,
and Franchisor notwithstanding any dispute or disagreement, and that any Person will be entitled to rely on any and all action taken by the Sellers’ Representative hereunder without liability to, or obligation to inquire of, Sellers,
LodgeWorks, or Franchisor. In the event the Sellers’ Representative resigns or ceases to function in such capacity for any reason whatsoever, then the successor Sellers’ Representative will be the Person that Sellers, LodgeWorks, and
Franchisor appoint; provided, however, that in the event for any reason no successor has been appointed within 30 days following such resignation or cessation, then Sellers, LodgeWorks, or Franchisor will have the right to petition a court of
competent jurisdiction for appointment of a successor Sellers’ Representative. Sellers, LodgeWorks, and Franchisor will indemnify and hold the Sellers’ Representative harmless from and against any and all liabilities, losses, costs,
damages and expenses (including attorneys’ fees) reasonably incurred or suffered as a result of the performance of the Sellers’ Representative’s duties hereunder, except for willful misconduct or gross negligence.

  

	 	(d)	To the extent that the Sellers’ Representative incurs any cost, obligation, or liability (“Costs”) pursuant to the fulfillment of his
duties under this Section 11.4, such Costs, if any, will be reimbursed by Sellers and Franchisor. 

  

	11.5	Successors and Assigns. The benefits and burdens of this Agreement will inure to the benefit of and bind Purchaser, Sellers, LodgeWorks, and Franchisor and their
permitted successors and assigns. 

  

	11.6	Days. If any action is required to be performed, or if any notice, consent or other communication is given, other than on a business day, such performance will
be deemed to be required, and such notice, consent or other communication will be deemed to be given, on the next business day. Unless otherwise specified herein, all references herein to a “day” or “days” will refer to calendar
days and not business days. 

  

	11.7	Governing Law. This Agreement and all documents referred to herein will be governed by and construed and interpreted in accordance with the laws of the State of
Delaware; provided, however, as to any Property matter related to title, liens or similar local law matter, the law of the location of the Property will apply. The exclusive venue for all disputes will be Wilmington, Delaware.

  

	11.8	 CONSENT TO JURISDICTION. SUBJECT TO THE PROVISIONS OF SECTION 11.19, ANY ACTION ARISING OUT OF THIS AGREEMENT MUST BE COMMENCED BY
PURCHASER OR THE SELLING PARTIES IN THE STATE COURTS OF THE STATE OF DELAWARE AND THE UNITED STATES DISTRICT 

  
 20 

	 	
COURT FOR THE DISTRICT OF DELAWARE SITTING IN EITHER CASE IN WILMINGTON DELAWARE. EACH PARTY HEREBY CONSENTS TO THE JURISDICTION OF THE ABOVE COURTS IN ANY SUCH ACTION AND TO THE LAYING OF VENUE
IN THE STATE COURTS OF THE STATE OF DELAWARE AND THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE. ANY PROCESS IN ANY SUCH ACTION WILL BE DULY SERVED IF DELIVERED BY A REPUTABLE OVERNIGHT DELIVERY SERVICE TO THE PARTIES AT THEIR
RESPECTIVE ADDRESS DESCRIBED IN SECTION 11.12 HEREOF. 

  

	11.9	Counterparts. To facilitate execution, this Agreement may be executed in as many counterparts as may be required. It will not be necessary that the signature on
behalf of more than one party hereto appear on each counterpart hereof. All counterparts hereof will collectively constitute a single agreement. This Agreement may be transmitted and/or manually-signed signatures delivered by facsimile or
electronically mailed portable document format (PDF). The effectiveness of any such signature will, subject to applicable Law, have the same force and effect as originals and will be binding on all parties to this Agreement.

  

	11.10	Severability. If any term, covenant or condition of this Agreement, or the application thereof to any Person or circumstance, will to any extent be invalid or
unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to other persons or circumstances, will not be affected thereby provided the parties realize the material benefits of this Agreement, and each
term, covenant or condition of this Agreement will be valid and enforceable to the fullest extent permitted by law. 

  

	11.11	Costs. Regardless of whether the Primary or Delayed Closing occurs hereunder, and except as otherwise expressly provided herein, each party hereto will be
responsible for its own costs in connection with this Agreement and the transactions contemplated hereby including without limitation fees of attorneys, engineers and accountants. 

 

	11.12	Notices. All notices, requests, demands and other communications hereunder will be in writing and will be delivered by hand, transmitted by facsimile
transmission, sent prepaid by Federal Express (or a comparable overnight delivery service) or other express courier at the addresses and with such copies as designated below and will be deemed to have been given upon (i) hand delivery,
(ii) one business day after being deposited with Federal Express or comparable overnight delivery service, or (iii) transmission by facsimile during regular business hours, with facsimile transmittal confirmation and with a confirming copy
sent by any other manner permitted under this Section. 

  

			
	 If to Purchaser:
	  	 Hyatt Corporation
 71 South
Wacker Drive
 Chicago, Illinois 60606

		  	 Attn: Global Head Real Estate and Development
 Facsimile No.: (312) 780-5282

  
 21 

			
	 With a copy to:
	  	 Hyatt Hotels Corporation
 71
South Wacker Drive
 Chicago, Illinois 60606

		  	 Attn: General Counsel

Facsimile No.: (312) 780-5282

		
	 With a copy to:
	  	 DLA Piper LLP (US)
 555
Mission Street, Suite 2400
 San Francisco, California 94105

		  	 Attention: Stephen A. Cowan, Esq.
 Telephone: (415) 615-6000
 Facsimile: (415) 659-7500

		  	Email: stephen.cowan@dlapiper.com
		
	If to any	  	LodgeWorks, L.P.
	 Selling Party:
	  	8100 E. 22nd Street, Building 500
		  	Wichita, Kansas 67226
		  	Attention: Roy R. Baker
		  	Telephone: (316) 681-5107
		  	Facsimile: (316) 681-5112
		  	Email: roy.baker@lodgeworks.com
		
	 With a copy to:
	  	 Harvey R. Sorensen, Esq.

Foulston Siefkin LLP
 1551 N. Waterfront Parkway,
Suite 100

		  	 Wichita, Kansas 67206

Telephone: (316) 291-9774
 Facsimile: (316)
267-6345

		  	Email: hsorensen@foulston.com
		
		  	and
		
		  	John R. Morse, Esq.
		  	 1159 Junonia Street

Sanibel, Florida 33957
 Telephone: (239)
395-0106

		  	 Facsimile: (239) 395-0674

Email: john.morse@lodgeworks.com

		
	If to the Escrow	  	First American Title Insurance Company
	 Agent or Title
	  	30 North LaSalle Street, Suite 2700
	 Company:
	  	Chicago, Illinois 60602
		  	Attention: John E. Beckstedt, Jr.
		  	Telephone: (312) 917-7233
		  	Facsimile: (312) 553-0480
		  	Email: jbeckstedt@firstam.com

  
 22 

 Or to such other address as the intended recipient may have specified in a notice to the
other party. Any party hereto may change its address or designate different or other persons or entities to receive copies by notifying the other party and the Escrow Agent in a manner described in this Section. 

 

	11.13	Incorporation by Reference. All of the Exhibits, Schedules, and Appendices attached hereto are by this reference incorporated herein and made a part hereof.

  

	11.14	Further Assurances. The Selling Parties and Purchaser covenant and agree to sign, execute and deliver, or cause to be signed, executed and delivered, and to do
or make, or cause to be done or made, upon the written request of the other party, any and all agreements, instruments, papers, deeds, acts or things, supplemental, confirmatory or otherwise, as may be reasonably required by either party hereto for
the purpose of or in connection with consummating the transactions described herein. 

  

	11.15	No Partnership. This Agreement does not and will not be construed to create a partnership, joint venture or any other relationship between the parties hereto
except the relationship of the Selling Parties and Purchaser specifically established hereby. 

  

	11.16	Time of Essence. Time is of the essence with respect to every provision hereof. 

 

	11.17	Confidentiality. Purchaser, the Selling Parties and their representatives, including any professionals representing Purchaser and Sellers, LodgeWorks, and
Franchisor, will keep the existence or material business terms of this Agreement strictly confidential, except to the extent disclosure is compelled by law, and then only to the extent of such compulsion. 

 

	11.18	Publicity. The parties agree that except as required by law, no party will contact or conduct negotiations with public officials, make any public pronouncements,
issue press releases or otherwise furnish information regarding the business terms of this Agreement to a third party without obtaining the prior written consent of all parties. No party, or its employees with knowledge of the transactions
contemplated herein, will trade in the securities of any affiliate of Purchaser until a public announcement of the transactions contemplated by this Agreement has been made public. Notwithstanding anything in Section 11.17 and
Section 11.18 to the contrary, Purchaser will have the right to report any information relating to this transaction required to be reported (i) to any governmental entity, (ii) in connection with tax reporting information filed
by Purchaser with the governmental entity, or (iii) as may be required by any other governmental regulatory entity, without obtaining the Selling Parties’ consent. 

 

	11.19	Alternative Dispute Resolution. 

  

	 	(a)	Generally. 

  

	 	(i)	 All disputes between the Selling Parties and Purchaser regarding the rights, duties or obligations of such parties under this Agreement (an
“Arbitration Dispute”) shall be resolved by binding arbitration held in Wilmington, Delaware. The arbitration shall constitute the exclusive means for the resolution of any such controversy, dispute or claim,

  
 23 

	 	
including whether such controversy, dispute or claim is subject to these arbitration provisions and to jurisdiction of the arbitrator. The Parties waive their rights to commence any legal
proceedings against each other to enforce these arbitration provisions or confirm or contest the arbitrator’s award in any court or jurisdiction other than the United States District Court for the District of Delaware sitting in Wilmington,
Delaware (the “Court”). Pending appointment of the arbitrator as provided herein, the Court is empowered to issue temporary relief and/or provisional remedies. The Parties may not commence any lawsuit with respect to any Arbitration
Dispute except as expressly permitted by this Section. 

  

	 	(ii)	An arbitration may be commenced by either party notifying the other party that an Arbitration Dispute must be resolved by the arbitration procedure described herein.
The date of delivery of such notice shall be referred to herein as “Notice Date”. The arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association, as amended by the terms of
this Section. 

  

	 	(b)	Appointment of Arbitrator. The arbitration shall be conducted by a single arbitrator, who shall be a recognized expert in the hospitality industry, which
individual shall be a licensed attorney and shall have at least 10 years experience representing clients in connection with the acquisition, development and/or owning of hotel properties, who does not have a conflict of interest with any party, and
who shall be agreed upon by the parties hereto within 25 days after the Notice Date. If the parties are unable to agree upon such an arbitrator, then the arbitration will be administered by the American Arbitration Association and an arbitrator with
the same qualifications will be selected under the Association’s procedure. The arbitrator will be asked to set the matter for hearing within 90 days after the appointment of the arbitrator and try any and all issues and to render a decision
upon them. Except as expressly set forth in this Section 11.19, the arbitrator shall determine the manner in which the arbitration hearing is conducted, including the timing and presentation of evidence and argument, and all other questions
that may arise with respect to the arbitration proceedings. The costs of the arbitration initially shall be borne equally by the parties, subject to any reallocation of such costs by the arbitrator in connection with subparagraph (g) below.

  

	 	(c)	 Discovery/Procedures. After the appointment of the arbitrator, the parties shall have the right to take depositions and to obtain discovery
consistent with the Federal Rules of Civil Procedure by other means regarding the subject matter of the arbitration as if the matter were pending in the U.S. District Court sitting in Wilmington, Delaware. The arbitrator may, for good cause shown,
limit the nature and extent of such discovery and establish or modify the schedule relating to any discovery requests or applications relating thereto. The arbitrator shall have the power to decide all other procedural issues, including the
following: the date, time and place of any hearing; the form, timing, and subject matter of any pre-hearing documents to be submitted by the parties; and any evidentiary or 

  
 24 

	 	
procedural issues that may arise at or in connection with any arbitration hearing. All discovery conducted in connection with an Arbitration Dispute shall be subject to the confidentiality
provisions set forth in Section 11.17. 

  

	 	(d)	Manner of Arbitration Hearing. At least five days prior to the arbitrator’s hearing as to any dispute to be resolved under Section 11.19, all Parties
shall submit to the arbitrator a written brief explaining their position on the applicable Arbitration Dispute. 

  

	 	(e)	Relief; Binding. The arbitrator shall, within 30 days after closing the hearing record, issue an award disposing of all of the controversies, disputes and claims
of the parties that are the subject of the arbitration. The arbitrator shall issue his decision to both parties through their respective counsel or representatives. Except as otherwise provided in this Section 11.19 and its subparagraphs, any
award rendered by the arbitrator shall be final, and judgment may be entered by the Court under the provisions of the Federal Arbitration Act, 9 U.S.C. § 1 et seq. 

 

	 	(f)	Waiver of Jury Trial. Each party hereby expressly waives any and all rights to a jury trial in any action or proceeding referenced in this Section 11.19.

  

	 	(g)	Arbitrator’s and Attorneys’ Fees. The arbitrator shall have the discretion to award attorney’s fees and costs and the arbitrator fees and costs
incurred in such arbitration or proceeding to the prevailing party, but shall have no obligation or be under any requirement to do so. 

  

	 	(h)	Confidentiality. Purchaser, the Selling Parties and their representatives, including any professionals representing Purchaser and Sellers, LodgeWorks, and
Franchisor, will keep all information disclosed in the arbitration, all the controversies, disputes and claims of the parties that are the subject of the arbitration, and all of the results and findings of the arbitration confidential, except to the
extent disclosure is compelled by law, and then only to the extent of such compulsion. 

  

	11.20	1031 Exchange. 

  

	 	(a)	Purchaser will, upon request of any Seller, cooperate in effecting one or more tax-deferred like kind exchanges under Internal Revenue Code Section 1031 (an
“Exchange”) in connection with the transaction contemplated by this Agreement. 

  

	 	(b)	Sellers each acknowledge that Purchaser is acquiring some or all of the Assets in a transaction intended by Purchaser to qualify as an Exchange.

  

	 	(c)	 In connection with any Exchange, the party for whose benefit the exchange is being made (the “Disposing Party”) will assign this
Agreement or portions thereof to one or more qualified intermediaries (“QIs”) to complete the Exchange(s). All parties agree that, at the applicable Closing, they will, if required, sign a form acknowledging their consent to
the assignment of this Agreement or portions thereof to the appropriate QIs. The other parties to the Exchange (the “Acquiring  

  
 25 

	 	
Parties”) each further agree to cooperate with the Disposing Party to effect such Exchange(s), provided that the Acquiring Parties incur no additional expense or liability, and
further provided that, after the applicable Closing, all parties shall remain liable for all their respective covenants, representations, and warranties that will survive the applicable Closing, despite the assignment of the Agreement to the
appropriate QIs. 

  

	 	(d)	Purchaser and the appropriate Sellers grant to all limited partners of the Sellers, and the Selling Parties (acting for and on behalf of the limited partners of the
Sellers) the option to acquire the Option Hotels by a cash purchase or by tender of like kind property in a like kind exchange, either before or after the scheduled Closing of the specific Hotel, (but not later than 180 days thereafter) all of the
then owner’s right, title, and interest in and to (whether the Purchaser after the applicable Closing or appropriate Seller) the Hotel identified as Sierra Suites King of Prussia, Sierra Suites Merrifield, Sierra Suites Bellevue, and/or Sierra
Suites Redmond (the “Option Hotels”) for the Purchase Price per Hotel set forth on Exhibit C on the same general terms and conditions as provided herein. In order to have an effective Exchange, the structure of such transaction may require
the distribution and exchange of undivided interests in the Properties, temporary title thereto in a QI or a limited partner, and other steps necessary to satisfy tax requirements; and Purchaser and the Selling Parties agree to cooperate in
completing these steps. 

  

	11.21	Brokers/Intermediaries. Purchaser hereby agrees to indemnify and hold harmless the Selling Parties from and against any loss, liability, damage, cost, claim or
expense incurred by reason of any claim for a brokerage or finder’s fee or commission payable or alleged to be payable to any other broker, finder or other intermediary, based on any agreement or act of Purchaser. The Selling Parties hereby
agree to indemnify and hold harmless Purchaser from and against any loss, liability, damage, cost, claim or expense incurred by reason of any claim for a brokerage or finder’s fee or commission payable or alleged to be payable to any broker,
finder or other intermediary, based on any agreement or act of the Selling Parties. The provisions of this paragraph will survive the Closing. 

 ARTICLE 12 
 RULES OF CONSTRUCTION 

 

	12.1	Rules of Construction. The following rules will apply to the construction and interpretation of this Agreement: 

 

	 	(a)	All references herein to particular articles, sections, subsections, clauses or exhibits are references to articles, sections, subsections, clauses or exhibits of this
Agreement. 

  

	 	(b)	Headings contained herein are solely for convenience of reference and will not constitute a part of this Agreement nor will they affect its meaning, construction or
effect. 

  
 26 

	 	(c)	Each party hereto and its counsel have reviewed and revised (or requested revisions of) this Agreement, and, therefore, any usual rules of construction requiring that
ambiguities are to be resolved against a particular party will not be applicable in the construction and interpretation of this Agreement or any exhibits hereto. 

 

	 	(d)	Any reference to a “business day” means Monday through Friday, United States federal and bank holidays excepted. 

 

	 	(e)	Wherever the word “including” is used in this Agreement, it will be deemed to be followed by the words “without limitation.”

 [The remainder of the page is intentionally left blank] 

  
 27 

 IN WITNESS WHEREOF, the Selling Parties and Purchaser, intending to be legally bound, have
caused this Agreement to be executed in their names by their respective duly-authorized representatives. 
  

							
	THE SELLING PARTIES:
	
	LODGEWORKS, L.P.
		
	By:	 	LodgeWorks Corporation, its general partner
			
		 	By:	 	 /s/ B. Anthony Isaac

		 		 	Name:	 	B. Anthony Isaac
		 		 	Title:	 	President
	
	SIERRA SUITES FRANCHISE, L.P.
		
	By:	 	LodgeWorks Corporation, its general partner
			
		 	By:	 	 /s/ B. Anthony Isaac

		 		 	Name:	 	B. Anthony Isaac
		 		 	Title:	 	President
	
	LONG BEACH SIERRA ASSOCIATES, L.P.
		
	By:	 	Long Beach Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	NAPA SIERRA ASSOCIATES, L.P.
		
	By:	 	Napa Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

  
 28 

 
							
	SAVANNAH SIERRA ASSOCIATES, L.P.
		
	By:	 	Savannah Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	WOODLANDS HOTEL ASSOCIATES, L.P.
		
	By:	 	Woodland Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	MADISON HOTEL ASSOCIATES, L.P.
		
	By:	 	Madison Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	BURLINGTON HOTELWORKS ASSOCIATES, L.P.
		
	By:	 	Burlington HotelWorks Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

  
 29 

 
							
	 PLYMOUTH MEETING HOTELWORKS
 ASSOCIATES, L.P.

		
	By:	 	Plymouth Meeting HotelWorks Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	BELLEVUE SIERRA ASSOCIATES, L.P.
		
	By:	 	Bellevue Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	BRANCHBURG SIERRA ASSOCIATES, L.P.
		
	By:	 	Branchburg Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	CHARLOTTE HOTEL ASSOCIATES, L.P.
		
	By:	 	Charlotte Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

  
 30 

 
							
	DULLES SIERRA ASSOCIATES, L.P.
		
	By:	 	Dulles Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	FISHKILL SIERRA ASSOCIATES, L.P.
		
	By:	 	Fishkill Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	GREEN BAY HOTEL ASSOCIATES, LLC
		
	By:	 	LodgeWorks, L.P., its Manager
			
		 	By:	 	LodgeWorks Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	MORRISVILLE HOTEL ASSOCIATES, L.P.
		
	By:	 	Morrisville Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

  
 31 

 
							
	PARSIPPANY LODGING ASSOCIATES, L.P.
		
	By:	 	Parsippany Lodging Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	RANCHO CORDOVA HOTEL ASSOCIATES, LLC
		
	By:	 	LodgeWorks, L.P., its Manager
			
		 	By:	 	LodgeWorks Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	REDMOND HOTEL ASSOCIATES, L.P.
		
	By:	 	Redmond Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	RICHMOND HOTEL ASSOCIATES, L.P.
		
	By:	 	Richmond Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

  
 32 

 
							
	SAN JOSE HOTEL ASSOCIATES, L.P.
		
	By:	 	San Jose Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	SAN RAMON LODGING ASSOCIATES, L.P.
		
	By:	 	San Ramon Lodging Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	SANTA CLARA SIERRA ASSOCIATES, L.P.
		
	By:	 	Santa Clara Sierra Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	SHELTON HOTEL ASSOCIATES, L.P.
		
	By:	 	Shelton Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

  
 33 

 
							
	KING OF PRUSSIA HOTEL ASSOCIATES, L.P.
		
	By:	 	King of Prussia Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer
	
	MERRIFIELD HOTEL ASSOCIATES, L.P.
		
	By:	 	Merrifield Hotel Corporation, its general partner
			
		 	By:	 	 /s/ Roy R. Baker

		 		 	Name:	 	Roy R. Baker
		 		 	Title:	 	Senior Vice President-Finance and Treasurer

							
	
	PURCHASER:
	
	HYATT CORPORATION
		
	By:	 	 /s/ Mark S. Hoplamazian

	Name:	 	Mark S. Hoplamazian
	Title:	 	President and Chief Executive Officer

  
 34 

 The Title Company executes this Agreement for the purposes of acknowledging its agreement to
serve as Escrow Agent for the initial deposit in accordance with the terms of this Agreement. 
  

			
	First American Title Insurance Company
		
	By:	 	 /s/ Adriene Taylor

	Name:	 	Adriene Taylor
	Title:	 	Escrow Assistant

  
 35 

 List of Exhibits, Appendices, and Disclosure Schedules 

Appendices: 
  

			
	Appendix 1	  	Definitions
		
	Appendix 1.1(A)	  	Sellers’ Assets
		
	Appendix 1.1(B)	  	LodgeWorks’ Assets
		
	Appendix 1.1(C)	  	Franchisor’s Assets
		
	Appendix 3	  	Purchaser’s Representations, Warranties, and Covenants
		
	Appendix 4	  	Sellers’ Representations, Warranties, and Covenants
		
	Appendix 5	  	LodgeWorks’ Representations, Warranties, and Covenants
		
	Appendix 6	  	Franchisor’s Representations, Warranties, and Covenants
		
	Appendix 7	  	Additional Covenants Related to Hotels Under Construction
		
	Appendix 8	  	Economic Adjustments and Closing Deliveries
		
	Appendix 10	  	Liability of Purchaser; Indemnification by the Selling Parties; Termination Rights
		
	Exhibits:	  	
		
	Exhibit A	  	List of Sellers and Hotels
		
	Exhibit B	  	Escrow Agreement
		
	Exhibit C	  	Purchase Price Summary
		
	Exhibit D	  	Development Pipeline
		
	Exhibit E	  	Non-Solicitation Agreement
		
	Exhibit F	  	Legal Descriptions of Land
		
	Exhibit G	  	Form of Assignment and Assumption Agreement
		
	Exhibit H	  	Assumed Contracts
		
	Exhibit I	  	Form of Bill of Sale and Assignment
		
	Exhibit J	  	Form of Alcoholic Beverage Services Agreement

  
 36 

			
	Exhibit K	  	Form of Assignment of Intellectual Property
		
	Exhibit L	  	Form of Assignment of Ground Lease Agreement
		
	Exhibit M	  	Form of Non-Competition Agreement
		
	Schedules:	  	
		
	Schedule III	  	Excluded FF&E
		
	Schedule IV	  	Intellectual Property
		
	Schedule 4.4	  	Structural and Mechanical Defects
		
	Schedule 4.7	  	Sellers’ Material Contracts
		
	Schedule 4.16	  	Leases
		
	Schedule 4.21	  	Hotel Management Agreements – Not Assigned
		
	Schedule 5.4	  	Structural and Mechanical Defects
		
	Schedule 5.7	  	LodgeWorks’ Material Contracts
		
	Schedule 5.10	  	LodgeWorks’ Benefit Plans
		
	Schedule 5.11	  	Labor Relations
		
	Schedule 6.7	  	Franchisor’s Intellectual Property
		
	Schedule 6.7(b)	  	Intellectual Property Exceptions/Assignments
		
	Schedule 7.1(a)	  	Hotel Sierra Merrifield Transfer Price Calculation
		
	Schedule 7.1(b)	  	Hotel Sierra King of Prussia Transfer Price Calculation
		
	Schedule 8.2	  	Delayed Closing Hotels

  
 37 

 APPENDIX 1 
 DEFINITIONS 
 Definitions. The following terms will have the indicated meanings:

 “2011 Annual Bonus Plan” has the meaning set forth in Appendix 8.1(b)(i). 

“Accounts Receivable” means with respect to each of the Hotels, all amounts which the applicable Seller is
entitled to receive from the Business which are not paid as of the applicable Closing, including, without limitation, charges for the use or occupancy of any guest, conference or banquet rooms or other facilities at the Hotel prior to the applicable
Closing, any restaurant, bar or banquet services, or any other goods or services provided by or on behalf of Seller at the Hotel prior to the applicable Closing, but expressly excluding all (a) credit card charges, checks and other instruments
which Seller has submitted for payment as of the applicable Closing, and (b) items of income otherwise prorated pursuant to Appendix 8.1. 
 “Agreement Date” means the date written in the preamble of this Agreement. 
 “Alcoholic Beverage Services Agreement” has the meaning set forth in Section 7.3(a). 
 “Alternative Transaction” has the meaning set forth in Section 7.3(k). 
 “Anti-Terrorism Laws” means Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other applicable laws addressing or in any way relating
to terrorist acts and acts of war. 
 “Approvals” has the meaning set forth in Appendix 1.1(A).

 “Assets” has the meaning set forth in Section 1.1. 

“Assignment and Assumption Agreement” means one or more Assignment and Assumption Agreements, dated as of the
Closing Date by and between the Selling Parties and Purchaser or its designees, whereby the Selling Parties assign and Purchaser or its designees assume all of the Selling Parties’ right, title and interest in, to and under all licenses,
contracts, permits and agreements affecting the Properties that Purchaser has expressly agreed to assume in writing on or before the Closing Date. 
 “Assignment of Ground Lease” has the meaning set forth in Appendix 8.2(b). 
 “Assignment of Intellectual Property” means an Assignment of Intangible Property dated as of the Closing Date for the Primary Closing by and between Selling Parties and Purchaser
or its designee, whereby Selling Parties assign and Purchaser or its designee assume all of Selling Parties’ right, title and interest in, to and under Intellectual Property. 

“Assignment of Leases” means one or more Assignments of Leases, dated as of the applicable Closing by and between
the applicable Seller and Purchaser or its designee whereby the applicable Seller assigns and Purchaser or its designees assume all of the Sellers’ right, title 

  
 38 

 
and interest in, to and under all Leases that Purchaser has expressly agreed to assume in writing on or before the applicable Closing. 

“Assumed Contracts” means those assignable contracts and agreements listed and described on Exhibit H
relating to the upkeep, repair, maintenance, operation or development of the Real Property, Hotels, Tangible Personal Property or Intangible Personal Property, which will extend beyond the Closing. 

“Benefit Plan” means, with respect to any Person, (a) each written plan, fund, program, agreement, or
arrangement that is at any time sponsored or maintained for employee benefits or for the remuneration, direct or indirect, of the employees, former employees, directors, managers, officers, or the dependents of any of them, including each deferred
compensation, bonus, incentive compensation, pension, retirement, stock purchase, stock option and other equity compensation plan, “welfare” plan (within the meaning of Section 3(1) of ERISA, determined without regard to whether such
plan is subject to ERISA), and (b) each “pension” plan (within the meaning of Section 3(2) of ERISA, determined without regard to whether such plan is subject to ERISA). 

“Books and Records” has the meaning set forth in Appendix 1.1(A). 

“Business” means the lodging business and all activities related thereto conducted at the Hotels, including,
without limitation, (a) the rental of any guest, conference or banquet rooms or other facilities at the Hotels, (b) the operation of any restaurant, bar or banquet services, together with all other goods and services provided at the
Hotels, and (c) the rental of any commercial or retail space to tenants at the Hotels. 

“Closing” means each closing of the sale and acquisition of the Assets pursuant to this
Agreement, which will include the Primary Closing, each Closing with respect to the Delayed Closing Hotels and the Closing with respect to the Hotel Sierra® King of Prussia. 
 “Closing
Date” means the date on which the Closing occurs with respect to an Asset. 
 “Closing
Documents” means all of the documents delivered by the parties hereto at or with respect to Closing including, without limitation, the Deeds, Assignments of Ground Lease, Bills of Sale, Assignment and Assumption Agreements, Assignment
of Leases, Estoppel Certificates, Assignment of Intangible Property, LodgeWorks Lease, Escrow Agreement, FIRPTA Certificates, Representation and Warranty Certificates, Non-Competition Agreement, Non-Solicitation Agreement, and Alcoholic Beverage
Services Agreement. 
 “Closing Statement” has the meaning set forth in Appendix 3.1(a).

 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations,
rulings and guidance issued by the Internal Revenue Service. 
 “Completion” has the meaning set forth
in subsection (d) of Appendix 7. 
 “Conditions Precedent” has the meaning set forth in
Article 7. 

  
 39 

 “Cost Reimbursement Component” has the meaning set forth in
Appendix 7.1(b). 
 “Costs” has the meaning set forth in Section 11.4(d). 

“Cut-Off Time” has the meaning set forth in Appendix 3.1(b). 

“Deed” has the meaning set forth in Appendix 8.2(a). 

“Delayed Closings” means the Closings for the Delayed Closing Hotels as described in Section 8.2.

 “Delayed Closing Hotels” means the Hyatt Summerfield Suites hotel Burlington, MA,
the Hotel Sierra® San Ramon, CA hotel, and the Hotel Sierra® Branchburg, NJ hotel. 

“Deposit” means Ten Million Dollars ($10,000,000), in immediately available funds, to be deposited with Escrow
Agent pursuant to Section 2.1 hereof. 
 “Development Pipeline” has the meaning set forth in
Section 7.3(c). 
 “Disclosure Schedules” means the Sellers’ Disclosure Schedules,
LodgeWorks’ Disclosure Schedules, and Franchisor’s Disclosure Schedules. 
 “Due Diligence
Documents” has the meaning set forth in Section 2.1(b). 
 “Employees” means,
at the time in question, all persons employed full-time or part-time by LodgeWorks. 
 “Employment
Agreements” means any and all employment agreements, written or oral, between LodgeWorks or its managing agent and any Employee. 
 “Environmental Laws” means any federal, state or local environmental laws, ordinances, rules, regulations, administrative or judicial orders, or any other environmental
requirements. 
 “Equipment Leases” has the meaning set forth in subsection (l) of Appendix
1.1(A). 
 “Escrow Agent” means First American Title Insurance Company having an office at 30 North
LaSalle Street, Suite 2700, Chicago, Illinois 60602. 
 “Escrow Agreement” means the escrow agreement
attached hereto as Exhibit B among the Selling Parties, the Purchaser and Escrow Agent to be executed as of the Primary Closing Date. 
 “Estoppel Certificates” has the meaning set forth in Section 7.1(g). 

  
 40 

 “Excluded Assets” means: 

(a) all cash (other than Petty Cash to the extent Purchaser elects to purchase the same), bank accounts and money invested
with financial institutions and other liquid assets of the Selling Parties including the marketing funds; 
 (b) any interest in the Aloft® Austin, TX hotel (including any
water damage claim), the Aloft® Tulsa, OK hotel, the Hampton
Inn® Poughkeepsie, NY hotel, the Hawthorn Suites® Arlington DFW South, TX hotel, the Hilton Garden Inn® Albany, NY hotel, and the Hotel
Sierra® Alpharetta, GA hotel; 

(c) any interest in and to any refund of Property or any other Taxes (hereinafter defined) relating to the Properties or
their operations for the period on or before the applicable Closing Date; 
 (d) all credits, claims for refund,
prepaid expenses, deferred charges, escrow accounts, advance payments, security or other deposits, including recoverable deposits, and prepaid items (and, in each case, security interests relating thereto) arising from or in connection with, or
related to, the Properties, its contracts or assets; 
 (e) all claims or rights of the Selling Parties against
anyone arising on or before the Closing Date; 
 (f) all insurance policies owned by any Seller and all rights,
claims, proceeds and causes of action of any Seller under insurance policies and all rights in the nature of insurance, indemnification or contribution relating to such Seller or its Property, except as otherwise provided in this Agreement;

 (g) all of the Selling Parties’ rights under this Agreement and any other agreement to sell assets (not
pursuant to or in violation of this Agreement) of the Selling Parties now existing or in the future and all cash and non-cash consideration payable or deliverable to the Selling Parties pursuant to the terms and provisions hereof and thereof;

 (h) all non-transferable software, LodgeWorks developed software, and accounting systems; 

(i) all personal memorabilia in the LodgeWorks’ headquarters building and other offices; 

(j) LodgeWorks’ personal property located in the LodgeWorks’ headquarters building in Wichita, Kansas; and

 (k) all items listed on Schedule II. 

“Existing License Agreements” means the license agreements, pursuant to which Sellers operate certain Hotels
under a certain brand or franchise. 
 “F&B” has the meaning set forth in Appendix 1.1(A).

 “FF&E” means all tangible property and fixtures (which are not part of the Real Property) of any
kind attached to or located upon, or ordered for future use as, the Hotels as of the date hereof (or acquired by any Seller and so employed prior to Closing) including, but not limited to, all furniture, fixtures, equipment, signs; all heating,
lighting, plumbing, drainage, 

  
 41 

 
electrical, air conditioning, and other mechanical fixtures and equipment and systems; all copy machines, computers, software, facsimile machines and other office equipment; all elevators,
escalators, and related motors and electrical equipment and systems; all hot water heaters, furnaces, heating controls, motors and boiler pressure systems and equipment; all shelving and partitions; all ventilating equipment, and all incinerating
and disposal equipment; all tennis, pool and health club and fitness equipment and furnishings; all vans, automobiles and other motor vehicles; all carpets, drapes, beds, furniture, furnishings, televisions, telephones and similar property; 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; all
audiovisual equipment, banquet equipment and laundry equipment; exclusive of (a) any personal property leased under the Equipment Leases, (b) items belonging to guests and tenants under the rooms agreements, and (c) the items, if any,
listed on Schedule III. 
 “Financial Statements” has the meaning set forth in Appendix
4.13. 
 “FIRPTA Certificate” means the affidavit of a Seller under Section 1445 of the
Internal Revenue Code certifying that such Seller is not a foreign corporation, foreign seller, foreign limited liability company, foreign trust, foreign estate or foreign Person (as those terms are defined in the Internal Revenue Code and the
Income Tax Regulations), in form and substance satisfactory to Purchaser. 
 “Franchisor’s Disclosure
Schedules” has the meaning set forth in Appendix 6. 
 “Garage Leases” means
those certain leases set forth on Schedule 4.16 and entered into by each of Long Beach Sierra Associates, L.P., Napa Sierra Associates, L.P., Santa Clara Sierra Associates, L.P., and Savannah Sierra Associates, L.P., as lessees, in which such
Sellers lease garage or parking spaces as described therein. 
 “Gift Certificates – Purchased”
means a certificate for the use of property, goods, or services for which the holder has paid value. 
 “Gift
Certificates – Promotional” means a certificate for the use of property, goods, or services for which the holder has not paid value. 
 “Governmental Body” means any federal, state, municipal or other governmental department, commission, board, bureau, agency, court or instrumentality having competent jurisdiction.

 “Ground Lease” means the following ground leases: (1) the Lease between DDR
Urban, LP, as ground lessor, and Long Beach Sierra Associates, L.P., as lessee, with respect to the Avia Hotel Long Beach; and (2) the Ground Lease between Short Pump Town Center, LLC, as ground lessor, and Richmond Hotel Associates, L.P., as
lessee, with respect to the Hotel Sierra® Richmond hotel. 

“Guest Ledger” means all charges accrued to the open accounts of any guests or customers at the Hotels as of the
Cut-Off Time for the use or occupancy of any guest, conference 

  
 42 

 
or banquet rooms or other facilities at the Hotels, any restaurant, bar or banquet services, or any other goods or services provided by or on behalf of Sellers at the Hotels. 

“Hazardous Substances” means any substance or material whose presence, nature, quantity or intensity of
existence, use, manufacture, disposal, transportation, spill, release or effect, either by itself or in combination with other materials, is: (1) potentially injurious to the public health, safety or welfare, the environment or any Property,
(2) regulated, monitored or defined as a hazardous or toxic substance or waste by any Governmental Body, or (3) a basis for liability of the owner of any Property to any Governmental Body or third party. 

“Holdback Escrow Amount” means the amount equal to three percent (3%) of the portion of the Purchase Price
of the Assets that are purchased at each Closing and which will be deposited with the Escrow Agent upon each separate closing before any of the Purchase Price allocable to the Assets is disbursed. 

“Hotels” means the hotels (together with their related amenities) listed in Appendix 1.1(A).

 “Hotel Management Agreements” means the management agreements between LodgeWorks and the Sellers to
manage the Hotels and the management agreements by which LodgeWorks manages the Third Party Owned Hotels. 

“Hotels Under Construction” means Hotel Sierra® King of Prussia, PA hotel and Hotel Sierra® Merrifield, VA hotel. 

“Improvements” has the meaning set forth in Appendix 1.1(A). 

“Indemnification Claim” has the meaning set forth in Appendix 10.5(b). 

“Indemnified Party” has the meaning set forth in Appendix 10.5(b). 

“Indemnifying Party” has the meaning set forth in Appendix 10.5(b). 

“Inspection Period” means a period commencing on the Agreement Date and continuing until 5:00 PM Central Time 75
days after the Agreement Date. 
 “Inspection Period End Date” means the last day of the Inspection
Period or the day of the Primary Closing, if earlier than the last day of the Inspection Period. 
 “Intangible
Personal Property” means all intangible personal property owned or possessed by any Selling Party and used in connection with the ownership, operation, leasing, occupancy or maintenance of the Hotels or Real Property (other than the
Excluded Assets and the Existing License Agreements) including, without limitation, the Approvals, Sellers’ interest in any Leases or Assumed Contracts that Purchaser or its designees assume, Sellers’ interest in any construction,
equipment, service or other types of guarantees and warranties, general intangibles, business records, plans, specifications and drawings, surveys, all other licenses which are transferable, permits and approvals with respect to the construction,
ownership, operation, leasing, occupancy or maintenance of the Properties, any unpaid award for taking by 

  
 43 

 
condemnation or any damage to the Land by reason of a change of grade or location of or access to any street or highway, excluding the Excluded Assets which will be maintained and/or distributed
to Sellers prior to the Closing Date, all records, substantive correspondence and other documents related to any right to occupy any of the Real Property (including any computer software or hardware representing any Selling Parties’
electronically maintained files concerning the foregoing), all security deposits under the Leases and any and all guaranties of the Leases, any warranty and guaranty rights, and rights under utility contracts or other agreements (including, without
limitation, the Selling Parties’ rights under the Assumed Contracts, as defined below), all books and records, names under or by which the Hotels or Real Property have been operated, all goodwill in any way associated with the Hotels or Real
Property, each as they relate to the ownership, use, operation or maintenance of the Hotels or Properties. 

“Intellectual Property” means all right, title and interest in or relating to intellectual property, whether
protected, created or arising under the laws of the United States or any other jurisdiction, including all tangible and intangible rights related thereto and arising therefrom, in connection with: (i) all patents and applications therefor,
including all continuations, divisionals, and continuations-in-part thereof and patents issuing thereon, along with all reissues, reexaminations and extensions thereof; (ii) all trademarks, service marks, trade names, service names, brand
names, trade dress rights, logos, corporate names, trade styles, logos and other source or business identifiers and general intangibles of a like nature, together with the goodwill associated with any of the foregoing, along with all applications,
registrations, renewals and extensions thereof including those set forth on Schedule IV; (iii) all Internet domain names; (iv) all copyrights and all mask work, database and design rights, whether or not registered or published, all
registrations and recordations thereof and all applications in connection therewith, along with all reversions, extensions and renewals thereof; (v) trade secrets; (vi) all other intellectual property and industrial property rights arising
from or relating to all software, information, designs, formulae, algorithms, procedures, methods, techniques, ideas, know-how, research and development, technical data, programs, subroutines, tools, materials, specifications, processes, inventions
(whether patentable or unpatentable and whether or not reduced to practice), apparatus, creations, improvements, works of authorship and other similar materials, and all recordings, graphs, drawings, reports, analyses, and other writings, and other
tangible embodiments of the foregoing, in any form whether or not specifically listed herein, and all related technology, that are used in, incorporated in, embodied in, displayed by or relate to, or are used in connection with the foregoing; and
(vii) all Material Contracts granting any right relating to or under the foregoing, excluding the Excluded Assets. 

“Inventory” or “Inventories” has the meaning set forth in Section 1.1(k).

 “IT Systems” has the meaning set forth in subsection (g) of Appendix 1.1(A). 

“Knowledge” means, with respect to any the Selling Parties, the actual knowledge of B. Anthony Isaac, Roy R.
Baker, Don R. Marvin, John R. Morse, and John W. Cantele, including a duty of inquiry of each Hotel general manager; and, with respect to Purchaser, the actual knowledge of Steve Haggerty and Brian Karaba. 

“Land” has the meaning set forth in Appendix 1.1(A). 

  
 44 

 “Land Lease” means any lease of real property or other occupancy
agreement relating to any Property pursuant to which any Seller is the lessee including the Ground Leases and the Garage Leases. 
 “Laws” has the meaning set forth in Section 7.1(i). 
 “Leasehold Properties” means the Hotel and the leasehold interests in the Real Property associated with Avia® Long Beach, CA and Hotel
Sierra® Richmond, VA. 
 “Leases” means any lease or occupancy agreement associated with the Assets in which a Selling Party is a party as a lessor or lessee, including the Ground Leases, the Tenant
Leases, the Equipment Leases, the Van Leases and the Garage Leases. 
 “LodgeWorks’ Disclosure
Schedules” has the meaning set forth in Appendix 5. 
 “LodgeWorks Lease” means that
certain office lease between Purchaser, as tenant, and SA, L.P., an affiliate of LodgeWorks, as landlord, for the lease of a portion of the LodgeWorks Property. 

“LodgeWorks Property” means the certain real property in Wichita, Kansas on which LodgeWorks
headquarters building is located, commonly known as Building 500, 8100 E. 22nd Street North, Wichita, Kansas. 
 “Loss; Losses” has the
meaning set forth in Appendix 10.2. 
 “Material Adverse Effect” means any state of facts, change,
event, effect, or occurrence that is likely to be materially adverse to the financial condition, results of operations, Properties or Assets of the Selling Parties when evaluated on a Property by Property basis (with respect to LodgeWorks or
Franchisor, when evaluated on the basis of its respective assets taken as a whole), excluding any change in general economic, business or political conditions affecting the United States lodging industry as a whole. 

“Material Contract” means any contract, sub-contract, agreement, lease, license, commitment, or any other
instrument, arrangement, or understanding of any kind, whether written or oral, and whether express or implied that has an annual value in excess of $20,000 or does not expire in one year or less, and all Hotel Management Agreements, and Existing
License Agreements. 
 “Non-Competition Agreement” means that certain non-competition agreement to be
entered into between Purchaser and LodgeWorks on the Primary Closing Date in the form set forth on Exhibit M. 

“Non-Solicitation Agreements” means that certain non-solicitation agreement to be entered into between Purchaser
and Dr. Rolf E. Ruhfus on the Primary Closing Date in the form set forth on Exhibit E. 
 “Operating
Agreements” has the meaning set forth in Appendix 1.1(A). 

  
 45 

 “Owners Association Estoppel Certificates” has
the meaning set forth in Section 7.1(g)(ii). 
 “Permitted Title Exceptions” means: (a) the
rights of tenants under Tenant Leases as tenants only with no rights of first refusal or option to purchase; (b) the lien of all ad valorem real estate taxes and assessments not yet due and payable as of the date of Closing, subject to
adjustment as herein provided; (c) local, state and federal laws, ordinances or governmental regulations, including but not limited to, building and zoning laws, ordinances and regulations, now or hereafter in effect relating to the Property;
(d) items shown on the Title Policies; and (e) general and specific plans and planned development permits, and, in any case, not objected to by Purchaser or waived or deemed waived by Purchaser in accordance with Section 2.1(c)
and those exceptions to title to the Real Property that are satisfactory to Purchaser as determined pursuant to Section 2.1(c). 
 “Person” means any individual, corporation, partnership, joint venture, limited liability company, trust, unincorporated organization or Governmental Body. 

“Plans and Specifications” means the plans and specifications with respect to a Property, approved by Purchaser.

 “Primary Closing” has the meaning set forth in Section 8.1. 

“Primary Closing Date” has the meaning set forth in Section 8.1. 

“Profit Component” – has the meaning set forth in Appendix 7.1(b). 

“Property” or “Properties” means with respect to each Hotel, the Hotel and the Real
Property associated with such Hotel. 
 “Property Taxes” has the meaning set forth in Appendix
8.1(b)(i). 
 “Purchase Price” is as set forth on Exhibit C. 

“Purchased Accounts Receivable” has the meaning set forth in Appendix 1.1(A). 

“Purchaser Indemnified Parties” has the meaning set forth in Appendix 10.2. 

“Purchaser Liability Cap” means an amount not to exceed $5,000,000 in the aggregate for any claims for
indemnification made by a Selling Party on or before the date that is twelve (12) months after the final Closing Date, which amount shall be reduced to $3,000,000 in the aggregate for any claims for indemnification made by a Selling Party prior
to the date that is eighteen (18) months after the final Closing Date, excluding claims arising under Section 2.1 and Section 11.3(b)(ii). 
 “Real Property” means the Land and the Improvements. 

“Rehired Employees” has the meaning set forth in Section 7.3(b)(i). 

  
 46 

 “Representation and Warranty Certificate” means a certificate of the
certifying party stating that all of the representations and warranties made in this Agreement by such party are true and complete in all material respects as of the date hereof and as of the Closing Date as if then made, and the certifying party
has performed all of its covenants and other obligations under this Agreement in all material respects. 

“Requirements” – has the meaning set forth in Appendix 7. 

“Reservation Deposits” – has the meaning set forth in Appendix 1.1(A). 

“Reservations” – has the meaning set forth in Appendix 1.1(A). 

“Restaurant Lease” means that certain Lease dated February 28, 2011 between King of
Prussia Hotel Associates, L.P., as landlord, and Crab Addison, Inc., as tenant, with respect to the lease of certain premises at the Hotel Sierra® King of Prussia for the operation of a restaurant. 
 “Retail Merchandise” – has the meaning set forth in Appendix 1.1(A)(i). 
 “Seller Employee Plans” means all plans and programs maintained by or on behalf of Employer for the health, welfare or benefit of any Employees and/or their respective spouses,
dependents or other qualified beneficiaries, including, without limitation, the Seller 401(k) Plan. 
 “Selling
Parties’ Conditions” has the meaning set forth in Section 7.2. 
 “Sellers’
Disclosure Schedules” has the meaning set forth in Appendix 4. 
 “Sellers’
Representative” means LodgeWorks, L.P. 
 “Supplies” has the meaning set forth in
Appendix 1.1(A). 
 “Surveys” has the meanings set forth in Section 2.1(b).

 “Survival Period” has the meaning set forth in Appendix 10.1. 

“Tangible Personal Property” means all tangible items of personal property, other than the Excluded Assets, used
in or requisite to the use, ownership, operation or maintenance of the Real Property or Hotels including, but not limited to all FF&E situated on, attached to, or used in the operation of the Hotels, the Supplies, F&B and Retail Merchandise.

 “Tenant Leases” has the meaning set forth in Appendix 1.1(A). 

“Third Party Owned Hotels” means Hyatt Summerfield Suites hotel, Bridgewater, NJ, owned by HHLP Bridgewater
Associates, LLC; Hyatt Summerfield Suites hotel, Charlotte, NC, owned by HHLP Charlotte Associates, LLC; Hyatt Summerfield Suites hotel, Pleasant Hill, CA, owned by HHLP Pleasant Hill Associates, LLC; Hyatt Summerfield Suites hotel, Pleasanton, CA,
owned by HHLP Pleasanton Associates, LLC; Hyatt Summerfield Suites hotel, Scottsdale, AZ, owned by HHLP Scottsdale Associates, LLC; the Sandy, UT Hyatt Summerfield Suites hotel owned by Sandy HSS Group, L.C.; the Salt Lake City, UT Hyatt Place hotel
owned by 

  
 47 

 
Boyer Gateway Hotel, L.C.; and the Pittsburgh, PA, Hyatt Place hotel owned by Continental/Rockbridge North Shore Hotel, L.P. 

“Title Company” means First American Title Insurance Company having an office at 30 North LaSalle Street, Suite
2700, Chicago, Illinois 60602. 
 “Title Policy” means one or more policies of title insurance with
appropriate and customary endorsements issued to Purchaser or its designees by the Title Company, dated as of the Closing Date, pursuant to which the Title Company insures Purchaser’s or its designees’ ownership of fee simple or leasehold
title, as the case may be, to the Real Property forming the Properties (including the marketability thereof) subject only to Permitted Title Exceptions. The aggregate amount of the Title Policies will equal the Purchase Price, and each Title Policy
will be acceptable in all respects in form and substance to Purchaser. 
 “Trade Payables” has the
meaning set forth in Appendix 8.1(b)(viii). 
 “Updated Surveys” has the meaning set forth in
Section 2.1(b). 
 “Utilities” means public sanitary and storm sewers, natural gas,
telephone, public water facilities, electrical facilities and all other utility facilities and services necessary for the operation and occupancy of the Properties as a hotel. 
 “Van Leases” means the van leases described in Schedule 4.16 in which certain Sellers lease the vehicles described therein. 

“Warranties” has the meaning set forth in Appendix 1.1(A). 

  
 48 

 APPENDIX 1.1(A) 

SELLERS’ ASSETS 
 The Sellers agree to sell and convey and Purchaser agrees to purchase the following assets owned by Sellers: 
  

	 	(a)	Hotels. The following hotels, as listed below (together with their related amenities) (the “Hotels”): 

Avia® Long Beach, CA 
 Avia® Napa, CA 
 Avia® Savannah, GA 

Avia® The Woodlands, TX 
 Hyatt Place Madison, WI

 Hyatt Summerfield Suites (“HSS”) Burlington, MA 

HSS Plymouth Meeting, PA 
 Hotel Sierra® Bellevue, WA 

Hotel Sierra® Branchburg, NJ 
 Hotel
Sierra® Charlotte City Center, NC 

Hotel Sierra® Dulles / Sterling, VA 

Hotel Sierra® Fishkill, NY 
 Hotel
Sierra® Green Bay, WI 

Hotel Sierra® Morrisville, NC 
 Hotel
Sierra® Parsippany, NJ 

Hotel Sierra® Rancho Cordova, CA 

Hotel Sierra® Redmond, WA 
 Hotel
Sierra® Richmond, VA 

Hotel Sierra® San Jose, CA 
 Hotel
Sierra® San Ramon, CA 

Hotel Sierra® Santa Clara, CA 
 Hotel
Sierra® Shelton, CT 
 Hotel Sierra® King of Prussia, PA (under construction) 

Hotel Sierra® Merrifield, VA (under construction) 
  

	 	(b)	 Land. The parcels of real estate on which the Hotels are located (except for the Land on which Avia® Long Beach and Hotel Sierra® Richmond are located), more particularly described on Exhibit F, which will be provided by the Title Company, together with all easements, rights,
privileges, remainders, reversions and appurtenances thereunto belonging or in any way appertaining, and all of the estate, right, title, interest, claim or demand whatsoever of any Seller therein, in the streets and ways adjacent thereto and in the
beds thereof, either at law or in equity, in possession or expectancy, now or hereafter acquired (the “Land”); 

  

	 	(c)	 Leasehold. The leasehold interest and Ground Leases associated with Avia® Long Beach and Hotel Sierra®
Richmond; 

  
 49 

	 	(d)	Improvements. All buildings, improvements, fixtures and other items of real estate located on the Land, including, without limitation, all apparatus, installed
equipment and appliances used in connection with the ownership, use, operation or maintenance of the Land (the “Improvements”); 

  

	 	(e)	FF&E. All FF&E, other than the Supplies, IT Systems, F&B, Retail Merchandise, Books and Records and Plans and Specifications;

  

	 	(f)	Supplies. All china, glassware and silverware, linens, uniforms, engineering, maintenance, cleaning and housekeeping supplies, matches and ashtrays, soap and
other toiletries, stationery, menus, directories and other printed materials, and all other similar supplies and materials, which are located at the Hotels or ordered for future use at the Hotels as of the Closing (the
“Supplies”), subject to depletions, replacement and additions in the ordinary course of operating the Hotels (provided that Sellers will maintain its normal replenishment and replacement expenditures for such inventories
until the Closing); 

  

	 	(g)	IT Systems. All equipment, supplies, transferable licenses and embedded software required to operate the Franchisor’s reservation system, the property
management system, point-of-sales system, telephone system, wireless or cabled Internet service system, accounting and statistical back office system, fire-life safety system, surveillance system, time clock system and other systems used in the
marketing or operations of the Hotels, all of which include requisite cabling, user manuals, warranty certificates, software and any written and any electronic books and records produced by the IT systems, excluding any Seller’s interest in any
Material Contracts applicable to a particular system that is not assumable (the “IT Systems”); 

  

	 	(h)	Food and Beverage. All food and beverages (alcoholic, when permitted to be owned by the Sellers, and non-alcoholic) which are located at the Hotels (whether
opened or unopened), or ordered for future use at the Hotels as of the Closing, including, without limitation, all food and beverages located in the guest rooms, but expressly excluding any alcoholic beverages to the extent the sale or transfer of
the same is not permitted under applicable Law (the “F&B”); 

  

	 	(i)	Retail Merchandise. All merchandise located at the Hotels and held for sale to guests and customers of the Hotels, or ordered for future sale at the Hotels as of
the Closing, including, without limitation, the inventory held for sale in any gift shop, pro shop or newsstand operated by Seller or any affiliate of Seller at the Hotels, but expressly excluding the F&B (the “Retail
Merchandise”); 

  

	 	(j)	Tangible Personal Property. All of Seller’s right, title and interest in and to all other Tangible Personal Property, other than the Excluded Assets;

  

	 	(k)	 Tenant Leases. All leases, subleases, licenses, concessions and similar agreements, together with all amendments thereof and supplements
thereto, granting to any other person the right to use or occupy any portion of the Real 

  
 50 

	 	
Property, other than the Reservations, together with all security deposits held by the Seller thereunder, to the extent the same and such security deposits are transferable or the parties obtain
any consent necessary to effectuate such a transfer (the “Tenant Leases”), including the Restaurant Lease; 

  

	 	(l)	Equipment Leases. All leases and purchase money security agreements, together with all amendments thereof and supplements thereto, for any equipment, machinery,
vehicles, furniture or other personal property located at the Hotels which are held by Seller or by an affiliate of Seller and used primarily in the Business (including, without limitation, the Van Leases), together with all deposits made by Seller
thereunder, to the extent the same and such deposits are transferable or the parties obtain any consent necessary to effectuate such a transfer (the “Equipment Leases”); 

 

	 	(m)	Operating Agreements. All maintenance, service and supply contracts, booking and reservation agreements, credit card service agreements, and all other similar
agreements, together with all amendments thereof and supplements thereto, for goods or services which are held by Seller or by an affiliate of Seller in connection with the Business, other than the Tenant Leases, Equipment Leases, and Approvals,
together with all deposits made or held by the Seller thereunder, to the extent the same and such deposits are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the “Operating
Agreements”); 

  

	 	(n)	Approvals. All transferable licenses, permits, consents, authorizations, approvals, registrations and certificates issued by any Governmental Body which are held
by Seller or by an affiliate of Seller with respect to the Real Property or Hotels, including, without limitation, the construction, use or occupancy of the Hotels or the Business, together with any deposits made by Seller thereunder, to the maximum
extent the same and such deposits are transferable or the Parties obtain any consent necessary to effectuate such a transfer (the “Approvals”); 

 

	 	(o)	Books and Records. All books and records located at the Hotels which relate to the Hotels or the Business, which will include copies of any financial statements
for each Hotel, exclusive of (i) Sellers’ income tax and accounting records, and (ii) any other materials that Sellers are not entitled to transfer or deliver to Purchaser under any contract (the “Books and
Records”); 

  

	 	(p)	Plans and Specifications. All plans and specifications, blue prints, architectural plans, engineering diagrams and similar items located at the Hotels or in the
possession of a Selling Party which relate to the Hotels (the “Plans and Specifications”); 

  

	 	(q)	Warranties. All warranties and guaranties held by Seller with respect to any Improvements or Personal Property (the “Warranties”);

  

	 	(r)	 Bookings. All of the advance reservations and bookings for guest, conference and banquet rooms or other facilities at the Hotels, as the same
may be amended, 

  
 51 

	 	
canceled and renewed (the “Reservations”) and advance deposits made in respect thereof (the “Reservation Deposits”); 

 

	 	(s)	Certain Accounts Receivable. All Accounts Receivable included in the Guest Ledger as set forth in Section 8.1(c)(i) (collectively, the
“Purchased Accounts Receivable”); and 

  

	 	(t)	Condemnation/Casualty Proceeds. All awards, compensation or proceeds payable in respect of a condemnation or casualty to the extent assigned to Purchaser
pursuant to Section 9.1; 

  

	 	(u)	Assumed Contracts. Sellers’ right, title, and interest in any Assumed Contract; 

 

	 	(v)	Management Agreements and Existing License Agreements. Sellers’ right, title, and interest in any Hotel Management Agreements and Existing License
Agreements set forth on Exhibit H; and 

  

	 	(w)	Intangible Personal Property. Sellers’ right, title and interest in and to any other Intangible Personal Property. 

  
 52 

 APPENDIX 1.1(B) 

LODGEWORKS’ ASSETS 
 LodgeWorks agrees to sell and convey and Purchaser agrees to purchase the following Assets owned by LodgeWorks: 
  

	 	(a)	All LodgeWorks-owned Tangible Personal Property located in the United States, including the Tangible Personal Property located in the LodgeWorks Property;

  

	 	(b)	LodgeWorks’ right, title, and interest in any Hotel Management Agreements and Existing License Agreements for the Hotels set forth on Exhibit H;

  

	 	(c)	LodgeWorks’ right, title and interest in the Hotel Management Agreements and license agreements for the Third Party Owned Hotels, and any other Assumed Contract as
set forth on Exhibit H; 

  

	 	(d)	 LodgeWorks’ right, title, and interest in all Development Agreements for Hotel Sierra® Merrifield and, to the extent any Development Pipeline project becomes a Property, such Development Pipeline project, all as set forth on Exhibit H;

  

	 	(e)	To the extent in the possession or control of LodgeWorks, any Books and Records; 

 

	 	(f)	To the extent in the possession or control of LodgeWorks, the Reservations and Reservation Deposits; 

 

	 	(g)	 To the extent in the possession or control of LodgeWorks or its affiliates, all Warranties, including, without limitation, all Warranties related to
Hotel Sierra® King of Prussia, Hotel Sierra® Merrifield, the Delayed Closing Hotels, and any other Hotel; and 

  

	 	(h)	All of LodgeWorks’ right, title and interest in and to all Intangible Personal Property. 

 

	 	(i)	The intellectual property, contracts, fees, and any supporting documents and files for the Development Pipeline projects listed on Exhibit D and all of LodgeWorks’
right, title, and interest, if any, in the Development Pipeline. 

  
 53 

 APPENDIX 1.1(C) 

FRANCHISOR’S ASSETS 
 Franchisor agrees to sell and convey and Purchaser agrees to purchase the following Assets owned by Franchisor: 
  

	 	(a)	 All rights to the registered service marks Avia and Hotel Sierra® and all related Intellectual Property rights; 

  

	 	(b)	Franchisor’s right, title, and interest in any Existing License Agreements and any other Assumed Contract set forth on Exhibit H. 

 

	 	(c)	Franchisor’s rights in the Assumed Contracts. 

  
 54 

 APPENDIX 3 
 PURCHASER’S REPRESENTATIONS, WARRANTIES AND COVENANTS 
  

	3.1	Identity and Power. 

  

	 	(a)	Purchaser has all requisite power and all governmental licenses, authorizations, consents and approvals necessary to execute and deliver this Agreement and any document
or instrument required to be executed and delivered on behalf of Purchaser hereunder, to perform its obligations under this Agreement and any such other documents or instruments, and to consummate the transactions contemplated hereby.

  

	 	(b)	Purchaser is a corporation duly organized and validly existing under the laws of the State of Delaware, and has all requisite power and authority under the laws of
Delaware and under its charter documents to enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Purchaser is in good standing as a corporation in the State of Delaware.

  

	3.2	Authorization, No Violations and Notices. 

  

	 	(a)	The execution, delivery and performance of this Agreement by Purchaser, and the consummation of the transactions contemplated hereby, have been duly authorized, adopted
and approved by Purchaser as necessary. No other proceedings are necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed by Purchaser and is a valid and binding obligation enforceable
against Purchaser in accordance with its terms. 

  

	 	(b)	Neither the execution, delivery, or performance by Purchaser of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance by
Purchaser with any of the provisions hereof, will: 

  

	 	(i)	result in the termination of, accelerate the performance required by, or result in a right of termination or acceleration, or the creation of any lien, security
interest, charge, or encumbrance upon Purchaser or any assets of Purchaser, under any of the terms, conditions, or provisions of, the organizational documents of Purchaser, or the licenses, leases, agreements, or other instruments, or obligations to
which Purchaser is a party, or by which Purchaser may be bound, or to which Purchaser may be subject; or 

  

	 	(ii)	to Purchaser’s knowledge, violate any judgment, ruling, order, writ, injunction, decree, statute, rule, or regulation applicable to Purchaser.

  

	3.3	Noncontravention. The execution and delivery of this Agreement and the performance by Purchaser of its obligations hereunder do not and will not contravene, or
constitute a default under, any provisions of applicable law or regulation, or any agreement, judgment, injunction, order, decree or other instrument binding upon Purchaser. 

  
 55 

	3.4	No Brokers. Purchaser has not engaged the services of any real estate agent, broker, finder or any other Person or entity for any brokerage or finder’s fee,
commission or other amount with respect to the transaction described herein. 

  

	3.5	No Violation of Anti-Terrorism Laws. None of Purchaser’s property or interests is subject to being “blocked” under any Anti-Terrorism Laws, and
neither Purchaser nor, to Purchaser’s Knowledge, any person holding any direct or indirect interest in Purchaser is in violation of any Anti-Terrorism Laws. 

  
 56 

 APPENDIX 4 
 SELLERS’ REPRESENTATIONS, WARRANTIES AND COVENANTS 
 To induce
Purchaser to enter into this Agreement and to purchase the Properties, subject to the matters disclosed in Schedule 4.1 through Schedule 4.27 (collectively, the “Sellers’ Disclosure Schedules”), each Seller
hereby makes the representations, warranties and covenants set forth in this Appendix 4, solely with respect to the Assets owned by it, each of which are true and complete, and will be true and complete as of the Inspection Period End Date
and each Closing, and upon each of which the Sellers acknowledge and agree that Purchaser is entitled to rely and has relied upon. The Sellers’ Disclosure Schedules set forth items of disclosure with specific reference to the particular Section
or subsection of this Agreement to which the information in the Sellers’ Disclosure Schedules relates; provided, however, that any information set forth in one section of the Sellers’ Disclosure Schedules will be deemed to apply to each
other Section or subsection of this Agreement to which its relevance is reasonably apparent on the face of such disclosure; provided, further, that, notwithstanding anything in this Agreement to the contrary, (a) reference to any dollar amounts
in any representation or warranty will not be deemed to indicate that such amount is material with respect to or otherwise under any provision under this Agreement, and (b) the inclusion of an item in the Sellers’ Disclosure Schedules as
an exception to a representation or warranty will not be deemed an admission that such item represents a material exception or material fact, event or circumstance. Prior to the Inspection Period End Date, upon notice to Purchaser, the Sellers may
update the Sellers’ Disclosure Schedules at any time subject to the provisions of Section 2.1(d). After the Inspection Period End Date, upon notice to Purchaser, Sellers’ may update the Sellers’ Disclosure Schedules but
only so long as the item disclosed was first discovered after the Inspection Period End Date. To the extent that prior to Closing Purchaser has Knowledge that any of the representations or warranties contained in this Appendix 4 have been
breached and Purchaser elects to proceed with Closing, Purchaser will be deemed to have waived such breach. 
  

	4.1	Identity and Power. 

  

	 	(a)	Each Seller has all requisite powers and all governmental licenses, authorizations, consents and approvals necessary to carry on its business as now conducted, to
execute and deliver this Agreement and any document or instrument required to be executed and delivered on behalf of it hereunder, to perform its obligations under this Agreement and any such other documents or instruments, and to consummate the
transactions contemplated hereby; and 

  

	 	(b)	Each Seller is duly organized and validly existing under the laws of Kansas, and has all requisite power and authority under the laws of Kansas and under its charter
documents to conduct its business and enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. Each Seller has duly qualified and is in good standing in the state in which any Property owned
by it is located. 

  
 57 

	4.2	Authorization; No Violations and Notices. 

  

	 	(a)	The execution, delivery and performance of this Agreement by Sellers, and the consummation of the transactions contemplated hereby, have been duly authorized, adopted
and approved by Sellers, as necessary. No other proceedings are necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed by Sellers and is a valid and binding obligation enforceable
against Sellers in accordance with its terms. There are no actions or proceedings pending or threatened to liquidate, reorganize, place in bankruptcy or dissolve any Seller, and no Seller is contemplating such action. 

 

	 	(b)	Neither the execution, delivery, or performance by any Seller of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance by such
Seller with any of the provisions hereof, will: 

  

	 	(i)	violate, conflict with, result in a breach of any provision of, constitute a default (or an event, which, with the passage of time, the giving of notice, or both, would
constitute a default except such mortgages or security documents with respect to a financing transaction that will be paid off at Closing) under, result in the termination of, accelerate the performance required by, or result in a right of
termination or acceleration, or the creation of any lien, security interest, charge, or encumbrance upon any of the Properties or assets of any Seller, under any of the terms, conditions, or provisions of its organizational documents, as applicable,
licenses, leases, agreements, or other instruments, or obligation to which Seller is a party, or by which Seller may be bound, or to which any Seller, any Property or any other Assets may be subject; 

 

	 	(ii)	to Seller’s Knowledge, violate any judgment, ruling, order, writ, injunction or decree applicable to any Seller, or the Properties, or any of Sellers’ other
assets; or 

  

	 	(iii)	to Sellers’ Knowledge, violate any statute, rule, or regulation applicable to any Seller, or the Properties or any of Sellers’ other assets.

  

	 	(c)	Each Seller has conducted no business other than the ownership and operation of its respective Hotel. 

 

	4.3	Litigation With Respect to Sellers. There is no action, suit, claim or proceeding pending or, to Sellers’ Knowledge, threatened against or affecting any
Seller relating to the Assets or any part of or interest in any Property before any Governmental Body which could create a Material Adverse Effect. 

  

	4.4	 Property. As of the date of this Agreement, Sellers have no Knowledge of any title defects to the Properties (i) not reflected in their
existing title insurance policies, (ii) not of public record, or (iii) any zoning or other land use restrictions affecting the Real Property; in each case, that could have a Material Adverse Effect. The applicable Seller has no Knowledge
of any title defects to its respective Property that pre-date the existing 

  
 58 

	 	
title insurance policies and were not listed on the existing title insurance policies. Except for the Hotels Under Construction, on the Closing Date, the Properties will be free and clear of all
liens and encumbrances, except for the Permitted Title Exceptions. Sellers have marketable title to the Properties and the right to convey the same. Sellers are the fee simple owners of the Real Property (except the Leasehold Properties) and are the
leasehold owners of the Leasehold Properties. To Sellers’ Knowledge and except for the Hotels Under Construction and except as set forth on Schedule 4.4, the Properties are in good order and condition, and Sellers have no Knowledge of
any structural or mechanical problems or conditions affecting the Hotels that would cost more than $250,000 to repair. 

  

	4.5	Compliance with Existing Laws. Sellers have no Knowledge of any existing violation of any provision of any applicable building, zoning, subdivision,
environmental or other governmental ordinance, resolution, statute, rule, order or regulation including but not limited to those of environmental agencies or insurance boards of underwriters, with respect to the ownership, operation, use,
maintenance or condition of the Assets or any part thereof, or requiring any repairs or alterations other than those that have been made prior to the date hereof, that would cost more than $250,000 to repair. 

 

	4.6	Organizational Documents. To Sellers’ Knowledge, no fact or circumstance has occurred which, by itself or with the passage of time or the giving of notice
or both, would constitute a material default under any of the Sellers’ organizational documents. 

  

	4.7	Contracts. The Material Contracts listed on Schedule 4.7 are all of the Material Contracts currently in effect and have been made available to the
Purchaser. The Sellers’ Material Contracts and the Assumed Contracts are legal, valid, binding and enforceable in accordance with their respective terms with respect to the Sellers, and, to the Knowledge of the Sellers, each other party
thereto, subject in each case to applicable bankruptcy, insolvency and other similar laws affecting the enforceability of creditors’ rights generally, general equitable principles and the discretion of courts in granting equitable remedies.
There is no existing default or breach of the Sellers under any Material Contract (or event or condition that, with notice or lapse of time or both, could constitute a default or breach) and to the Knowledge of the Sellers, there is no such default
(or event or condition that, with notice or lapse of time or both, could constitute a default or breach) with respect to any other party to any Material Contract. Except as set forth on Schedule 4.7 the Sellers are not participating in any
discussions or negotiations regarding any material modification of or amendment to any Material Contract or entry in any new Material Contract applicable to the Assets. 

 

	4.8	Warranties and Guaranties. Sellers will not release or modify any warranties or guarantees, if any, of manufacturers, suppliers and installers relating to the
Improvements and the Tangible Personal Property or any part thereof, except with the prior written consent of Purchaser, which consent will not be unreasonably withheld or delayed. 

 

	4.9	Insurance. All of Sellers’ insurance policies are valid and in full force and effect, and Sellers will pay all future premiums for such policies up to the
Closing Date (and any replacements thereof) on or before the due date therefor. 

  
 59 

	4.10	Employees. None of the Sellers have any employees. 

  

	4.11	Benefit Plans. The Sellers do not have and have never had any Benefit Plans. 

 

	4.12	Condemnation Proceedings; Roadways. Sellers have not received written notice of, and have no Knowledge of, any condemnation or eminent domain proceeding pending
or threatened against any Property or any part thereof. Sellers have no Knowledge of any change or proposed change in the route, grade or width of, or otherwise affecting, any street or road adjacent to or serving the Real Property.

  

	4.13	Financial Information. Sellers have provided to Purchaser financial information regarding the Properties and the business operations of the Hotels, including
profit and loss statements, occupancy reports and net income statements for years 2009 through 2010 and the period January 1, 2011 through April 30, 2011 (the “Financial Statements”). All of the foregoing
information has been prepared in conformity with generally accepted accounting principles, and present fairly the results of operations by Sellers of the Hotels, subject, in the case of unaudited financial statements, to normal year-end audit
adjustments, accruals and footnotes. 

  

	4.14	Hazardous Substances. Except for matters disclosed in written environmental reports and statements previously delivered by Sellers to Purchaser, and except for
supplies used in the ordinary course of the operations of the Hotels and in accordance with all applicable Laws, Sellers have no Knowledge of (a) the presence of any Hazardous Substances on or at any Property, or any portion thereof;
(b) any spills, releases, discharges, or disposal of Hazardous Substances that have occurred or are presently occurring on or onto any Property, or any portion thereof; (c) the presence of any PCB transformers serving, or stored on, any
Property, or any portion thereof; (d) any failure to comply with any applicable local, state and federal environmental laws, regulations, ordinances and administrative and judicial orders relating to the generation, recycling, reuse, sale,
storage, handling, transport and disposal of any Hazardous Substances; (e) no Seller or, to any Seller’s knowledge, any third party has installed or removed any storage tank on, from, or in connection with the Properties except for
removals in compliance with applicable Laws; and (f) there are no storage tanks (whether existing or abandoned) located on, under or about any of the Properties. To Sellers’ Knowledge, there are no violations of any Environmental Laws or
regulations respecting the Properties or the Hotels. 

  

	4.15	Existing License Agreements. The Existing License Agreements are valid and in full force and effect as of the date hereof and will remain so until the Closing.
Until the Closing, Sellers will not be in default thereunder (with or without the giving of any required notice and/or lapse of time). 

  

	4.16	 Leases. The Leases listed on Schedule 4.16 are all of the Leases currently in effect. True and complete copies of the Leases have
previously been delivered to Purchaser. The Leases are, and will at Closing be, in full force and effect, and, to Sellers’ Knowledge, there is no default under such Leases except as security for indebtedness. Such Leases are, or will be at
Closing, freely assignable by Sellers, and Sellers will have obtained all 

  
 60 

	 	
consents of any third party necessary to assign such Leases to Purchaser. Sellers have not assigned any of their respective interests in the Leases except as security for indebtedness. Except as
set forth in the Tenant Leases, there are now no, and at Closing there will be no, free rent credits, operating expense abatements, rebates, allowances or termination rights under the Tenant Leases, and no tenant has delivered a notice to Seller
indicating an intent to terminate a Tenant Lease before the end of the term. Seller has completed all tenant improvements required under the terms of the Tenant Leases, except as described on Schedule 4.16. Sellers have delivered to Buyer all
outstanding proposals, term sheets, letters of intent or other commitments relating to the leasing and occupancy of the Properties as of the date hereof, and Seller has not negotiated regarding the leasing of the Properties within the period of 60
days prior to the Agreement Date with any prospective tenants except as described on Schedule 4.16. Seller is not aware of any bankruptcy, insolvency or similar proceeding affecting any other parties to the Leases. 

 

	4.17	Sufficiency of Certain Items. Except for the Hotels Under Construction, each Property includes: 

 

	 	(a)	a sufficient amount of furniture, furnishings, color television sets, carpets, drapes, rugs, floor coverings, mattresses, pillows, bedspreads and the like, of requisite
quality and condition, to furnish each guest room in accordance with standards applicable to each Hotel brand on the Agreement Date; and 

  

	 	(b)	a sufficient amount of towels, wash cloths and bed linens together with a sufficient supply of paper goods, soaps, cleaning supplies and other such supplies and
materials, as are reasonably adequate for the current operation of the Hotels and as are required by each Hotel’s brand standards. 

  

	4.18	Taxes. To Sellers’ Knowledge, each Seller has complied in all material respects with all applicable laws relating to the payment of taxes.

  

	4.19	Brokerage Commission. The Sellers have not engaged or employed any real estate agent, broker, finder, or investment banker or incurred any liability for any
investment banking fees, financial advisory fees, brokerage fees, finders’ fees, commission or other amount in connection with the transactions contemplated in this Agreement. 

 

	4.20	Due Diligence Documents. Sellers have delivered to Buyer true and complete copies of the Due Diligence Documents. 

 

	4.21	 Hotel Management and Existing License Agreements. There are no Hotel Management Agreements, with respect to the Hotels, or Existing License
Agreements that will not be assigned to Purchaser. There is no default under any Hotel Management Agreements or Existing License Agreements. The Hotel Management Agreements and Existing License Agreements set forth on Schedule 4.21 are, and
will at Closing be, in full force and effect. Such agreements are, or will be at Closing, freely assignable by the Selling Parties, and the Selling Parties will have obtained all consents of any third party necessary to assign such agreements to
Purchaser. Sellers have not assigned any of their respective interests 

  
 61 

	 	
in the Hotel Management Agreements or Existing License Agreements set forth in Schedule 4.21 other than for security purposes. 

 

	4.22	Personal Property. The Sellers have good and valid title to all Tangible and Intangible Personal Property that will be conveyed at Closing, which will be free
and clear of all liens and encumbrances as of the Closing. From the Agreement Date until the applicable Closing, no Sellers will sell any Tangible Personal Property other than in the ordinary course of the Business or any Intangible Personal
Property. 

  

	4.23	Special Assessments. Except as disclosed on the Title Reports, the Sellers have received no written notice that any of the Real Property (or any portion thereof)
is subject to, or affected by, an actual, pending or proposed special assessment, levy or imposition of any kind or nature for any public improvements. 

  

	4.24	Foreign Person. Each Seller is a “United States person” (as defined in Section 7701(a)(30)(B) or (C) of the Code) for the purposes of the
provisions of Section 1445(a) of the Code. 

  

	4.25	No Violation of Anti-Terrorism Laws. None of Sellers’ property or interests is subject to being “blocked” under any
 Anti-Terrorism Laws, and
neither Seller nor, to Seller’s Knowledge, any Person holding any direct or indirect interest in Seller is in violation of any Anti-Terrorism Laws. 

  
 62 

 APPENDIX 5 
 LODGEWORKS’ REPRESENTATIONS AND WARRANTIES 
 To induce Purchaser to
enter into this Agreement and to purchase the Properties, subject to the matters disclosed in Schedule 5.1 through Schedule 5.13 (collectively, the “LodgeWorks’ Disclosure Schedules”), LodgeWorks hereby
makes the representations, warranties and covenants set forth in this Appendix 5, each of which are true and complete, and will be true and complete as of the Inspection Period End Date and each Closing, and upon each of which LodgeWorks
acknowledges and agrees that Purchaser is entitled to rely and has relied upon. The LodgeWorks’ Disclosure Schedules set forth items of disclosure with specific reference to the particular Section or subsection of this Agreement to which the
information in the LodgeWorks’ Disclosure Schedules relates; provided, however, that any information set forth in one section of the LodgeWorks’ Disclosure Schedules will be deemed to apply to each other Section or subsection of this
Agreement to which its relevance is reasonably apparent on the face of such disclosure; provided, further, that, notwithstanding anything in this Agreement to the contrary, (a) reference to any dollar amounts in any representation or warranty
will not be deemed to indicate that such amount is material with respect to or otherwise under any provision under this Agreement and (b) the inclusion of an item in the LodgeWorks’ Disclosure Schedules as an exception to a representation
or warranty will not be deemed an admission that such item represents a material exception or material fact, event or circumstance. Prior to the Inspection Period End Date, upon notice to Purchaser, LodgeWorks may update the LodgeWorks’
Disclosure Schedules at any time subject to the provisions of Section 2.1(d). After the Inspection Period End Date, upon notice to Purchaser, LodgeWorks may update the LodgeWorks’ Disclosure Schedules but only so long as the item
disclosed was first discovered after the Inspection Period End Date. To the extent that prior to Closing Purchaser has Knowledge that any of the representations or warranties contained in this Appendix 5 have been breached and Purchaser
elects to proceed with Closing, Purchaser will be deemed to have waived such breach. 
  

	5.1	Identity and Power. 

  

	 	(a)	LodgeWorks has all requisite power and all governmental licenses, authorizations, consents and approvals necessary to carry on its business as now conducted, to execute
and deliver this Agreement and any document or instrument required to be executed and delivered on behalf of it hereunder, to perform its obligations under this Agreement and any such other documents or instruments, and to consummate the
transactions contemplated hereby; and 

  

	 	(b)	LodgeWorks is duly organized and validly existing under the laws of Kansas, and has all requisite power and authority under the laws of Kansas and under its charter
documents to conduct its business and enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. LodgeWorks has duly qualified and is in good standing in the state in which any Property
managed by it is located. 

  
 63 

	5.2	Authorization; No Violations and Notices. 

  

	 	(a)	The execution, delivery and performance of this Agreement by LodgeWorks, and the consummation of the transactions contemplated hereby, have been duly authorized,
adopted and approved by LodgeWorks, as necessary. No other proceedings are necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed by LodgeWorks and is a valid and binding obligation
enforceable against LodgeWorks in accordance with its terms. There are no actions or proceedings pending or threatened to liquidate, reorganize, place in bankruptcy or dissolve LodgeWorks, and LodgeWorks is contemplating no such action.

  

	 	(b)	Neither the execution, delivery, or performance by LodgeWorks of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance by
LodgeWorks with any of the provisions hereof, will: 

  

	 	(i)	violate, conflict with, result in a breach of any provision of, constitute a default (or an event, which, with the passage of time, the giving of notice, or both, would
constitute a default, except such mortgages or security documents with respect to a financing transaction that will be paid off at Closing) under, result in the termination of, accelerate the performance required by, or result in a right of
termination or acceleration, or the creation of any lien, security interest, charge, or encumbrance upon any of the assets of LodgeWorks, under any of the terms, conditions, or provisions of its organizational documents, as applicable, licenses,
leases, agreements, or other instruments, or obligation to which LodgeWorks is a party, or by which LodgeWorks may be bound, or to which LodgeWorks may be subject; 

 

	 	(ii)	to LodgeWorks’ Knowledge, violate any judgment, ruling, order, writ, injunction or decree applicable to LodgeWorks or LodgeWorks’ other assets; or

  

	 	(iii)	to LodgeWorks’ Knowledge, violate any statute, rule, or regulation applicable to LodgeWorks or LodgeWorks’ other assets. 

 

	5.3	Litigation With Respect to LodgeWorks. There is no action, suit, claim or proceeding pending or, to LodgeWorks’ Knowledge, threatened against or affecting
LodgeWorks relating to the Assets, or any part of or interest in any Property before any Governmental Body which could create a Material Adverse Effect. 

  

	5.4	 Property. As of the date of this Agreement, LodgeWorks has no Knowledge of any material title defects to the Properties not reflected in their
existing title insurance policies or any zoning or other land use restrictions affecting the Real Property that could have a Material Adverse Effect. LodgeWorks has no Knowledge of any title defects to the LodgeWorks’ Property that pre-date the
existing title insurance policies and were not listed on the existing title insurance policies. To LodgeWorks’ Knowledge and except 

  
 64 

	 	
for the Hotels Under Construction, and except as set forth on Schedule 5.4, the Properties are in good order and condition, and neither Sellers nor LodgeWorks have Knowledge of any
structural or mechanical problems or conditions affecting the Hotels that would have a Material Adverse Effect. 

  

	5.5	Compliance with Existing Laws. Except for the Hotels Under Construction, LodgeWorks has no Knowledge of any existing violation of any provision of any applicable
building, zoning, subdivision, environmental or other governmental ordinance, resolution, statute, rule, order or regulation including but not limited to those of environmental agencies or insurance boards of underwriters, with respect to the
ownership, operation, use, maintenance or condition of the Properties or any part thereof, or requiring any repairs or alterations other than those that have been made prior to the date hereof. 

 

	5.6	Organizational Documents. To LodgeWorks’ Knowledge, no fact or circumstance has occurred which, by itself or with the passage of time or the giving of
notice or both, would constitute a material default under LodgeWorks’ organizational documents. 

  

	5.7	Material Contracts. True and complete copies of all Material Contracts of LodgeWorks have been made available to the Purchaser. LodgeWorks’ Material
Contracts and the Assumed Contracts are legal, valid, binding and enforceable in accordance with their respective terms with respect to LodgeWorks, and, to the Knowledge of LodgeWorks, each other party thereto, subject in each case to applicable
bankruptcy, insolvency and other similar laws affecting the enforceability of creditors’ rights generally, general equitable principles and the discretion of courts in granting equitable remedies. There is no existing default or breach of
LodgeWorks under any Material Contract (or event or condition that, with notice or lapse of time or both could constitute a default or breach) and to the Knowledge of LodgeWorks, there is no such default (or event or condition that, with notice or
lapse of time or both, could constitute a default or breach) with respect to any third party to any Material Contract. Except as set forth on Schedule 5.7, LodgeWorks is not participating in any discussions or negotiations regarding any
material modification of or amendment to any Material Contract or entry in any new Material Contract applicable to the Assets. 

  

	5.8	Warranties and Guaranties. LodgeWorks will not release or modify any warranties or guarantees, if any, of manufacturers, suppliers and installers relating to the
Improvements and the Tangible Personal Property or any part thereof, except with the prior written consent of Purchaser, which consent will not be unreasonably withheld or delayed. 

 

	5.9	Insurance. All of LodgeWorks’ Insurance Policies are valid and in full force and effect, and LodgeWorks will pay all future premiums for such policies up to
the Closing Date (and any replacements thereof) on or before the due date therefor. 

  

	5.10	Benefit Plans. 

  

	 	(a)	 Schedule 5.10 contains a true and complete list of each of LodgeWorks’ Benefit Plans. LodgeWorks does not intend to nor has it committed to
establish or enter 

  
 65 

	 	
into any new Benefit Plan, or to modify any Benefit Plan (except to conform any such Benefit Plan to the requirements of any applicable laws) prior to the Primary Closing.

  

	 	(b)	With respect to each Benefit Plan identified on Schedule 5.10, LodgeWorks has delivered or made available to the Purchaser true and complete copies of the
plan documents and any amendments thereto (or, in the event the plan is not written, a written description thereof), any related trust or other funding vehicle, any reports or summaries required under ERISA or the Internal Revenue Code.

  

	 	(c)	No Benefit Plan is or was subject to Title IV of ERISA or Section 412 of the Code, and no Benefit Plan or ERISA Affiliate Plan is or was a “multiemployer
pension plan” (as defined in Section 3(37) of ERISA) or subject to Section 302 of ERISA. 

  

	 	(d)	No Benefit Plan or ERISA Affiliate Plan is or was a “multiple employer welfare arrangement” (as defined in Section 3(40) of ERISA).

  

	 	(e)	Each Benefit Plan has been established, qualified, invested, operated and administered in all respects in accordance with its terms and in compliance with all
applicable laws, including ERISA and the Internal Revenue Code. LodgeWorks has not incurred, and no fact exists that reasonably could be expected to result in any liability to LodgeWorks with respect to any Benefit Plan (other than to pay premiums,
contributions or benefits in the ordinary course). 

  

	 	(f)	There is no pending or threatened complaint, claim (other than a routine claim for benefits), proceeding, examination, audit, investigation or other proceeding or
action of any kind with respect to any Benefit Plan, and there exists no state of facts that reasonably could be expected to give rise to any such claim, investigation, examination, audit or other proceeding. 

 

	5.11	Labor Relations. Except as set forth on Schedule 5.11: 

  

	 	(a)	LodgeWorks has not ever been nor is it currently a party to any collective bargaining agreement, contract or legally binding commitment to any trade union or employee
organization or group in respect of or affecting employees and is not subject to any union organization effort; 

  

	 	(b)	LodgeWorks’ employees are not represented by a labor organization or group that was either certified or voluntarily recognized by any labor relations board
(including the NLRB) or certified or voluntarily recognized by any other governmental entity; 

  

	 	(c)	LodgeWorks is not engaged in any labor negotiations; 

  

	 	(d)	 to the Knowledge of LodgeWorks, no representation election petition or application for certification has been filed or is pending with the NLRB or any
other governmental entity involving or relating to the employees of LodgeWorks, 

  
 66 

	 	
and to the Knowledge of LodgeWorks, no union organizing campaign or other attempt to organize or establish a labor union, employee organization or labor organization or group involving employees
of LodgeWorks has occurred, is in progress or is threatened; 

  

	 	(e)	to the Knowledge of LodgeWorks, none of its employees has engaged in any unfair labor practice and LodgeWorks is not aware of any pending or threatened labor board
proceeding of any kind, including any such proceeding against LodgeWorks or any trade union, labor union, employee organization or labor organization representing LodgeWorks’ employees; 

 

	 	(f)	to the Knowledge of LodgeWorks, no grievance, application, arbitration, demand or proceeding, whether or not filed pursuant to a collective bargaining agreement
involving any Employees, has been filed or is pending or has been threatened; 

  

	 	(g)	no labor dispute, walk out, strike, slowdown, hand billing, picketing, work stoppage (sympathetic or otherwise), or other “concerted action” involving the
employees of LodgeWorks has occurred, is in progress or, to the Knowledge of LodgeWorks, has been threatened; 

  

	 	(h)	no breach of contract or denial of fair representation claim has been filed or is pending or, to the Knowledge of LodgeWorks, threatened against LodgeWorks or any trade
union, labor union, employee organization or labor organization representing LodgeWorks’ employees; 

  

	 	(i)	no claim, complaint, charge or investigation for unpaid wages, bonuses, commissions, employment withholding taxes, penalties, overtime, vacation pay or other
compensation, benefits, child labor or record keeping violations has been filed or is pending or, to the Knowledge of LodgeWorks, threatened under any federal, state, local or foreign Law relating to or involving LodgeWorks;

  

	 	(j)	no discrimination, pay equity, retaliation or reprisal claim, complaint, charge or investigation has been filed or is pending or, to the Knowledge of LodgeWorks,
threatened against LodgeWorks under any federal, state, local or foreign Law; 

  

	 	(k)	no citation or order has been issued by OSHA against LodgeWorks and no notice of contest, claim, complaint, charge, prosecution, investigation, or other administrative
enforcement proceeding involving LodgeWorks has been filed or is pending or, to the Knowledge of LodgeWorks, threatened against LodgeWorks under any federal, state, local or foreign Law relating to occupational safety and health;

  

	 	(l)	LodgeWorks has maintained and currently maintains adequate insurance as required by applicable Law with respect to workers’ compensation claims, workplace safety
complaints, and unemployment benefits claims; 

  
 67 

	 	(m)	no investigation or citation of LodgeWorks has occurred and no enforcement proceeding has been initiated or is pending or, to the Knowledge of LodgeWorks, threatened
under federal or foreign immigration Law; and 

  

	 	(n)	no wrongful discharge, retaliation, libel, slander, personal injury or other claim, complaint, charge or investigation that arises out of the employment relationship or
the termination of the employment relationship between LodgeWorks and any of its employees has been filed or is pending or, to the Knowledge of LodgeWorks, threatened against LodgeWorks or any of the Sellers under any applicable Law.

  

	5.12	Condemnation Proceedings; Roadways. LodgeWorks has not received written notice of any condemnation or eminent domain proceeding pending or threatened against any
Property or any part thereof. LodgeWorks has no Knowledge of any change or proposed change in the route, grade or width of, or otherwise affecting, any street or road adjacent to or serving the Real Property. 

 

	5.13	Brokerage Commission. LodgeWorks has not employed any broker, finder or investment banker or incurred any liability for any investment banking fees, financial
advisory fees, brokerage fees or finders’ fees in connection with the transactions contemplated in this Agreement. 

  

	5.14	Due Diligence Documents. LodgeWorks has delivered to Buyer true and complete copies of the Due Diligence Documents. 

  
 68 

 APPENDIX 6 
 FRANCHISOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS 
 To induce
Purchaser to enter into this Agreement and to purchase the Properties, subject to the matters disclosed in Schedule 6.1 through Schedule 6.10 (collectively, the “Franchisor’s Disclosure Schedules”),
Franchisor hereby makes the representations, warranties and covenants set forth in this Appendix 6, each of which are true and complete, and will be true and complete as of the Inspection Period End Date and each Closing, and upon each of
which Franchisor acknowledges and agrees that Purchaser is entitled to rely and has relied upon. The Franchisor’s Disclosure Schedules set forth items of disclosure with specific reference to the particular Section or subsection of this
Agreement to which the information in the Franchisor’s Disclosure Schedules relates; provided, however, that any information set forth in one section of the Franchisor’s Disclosure Schedules will be deemed to apply to each other Section or
subsection of this Agreement to which its relevance is reasonably apparent on the face of such disclosure; provided, further, that, notwithstanding anything in this Agreement to the contrary, (a) reference to any dollar amounts in any
representation or warranty will not be deemed to indicate that such amount is material with respect to or otherwise under any provision under this Agreement and (b) the inclusion of an item in the Franchisor’s Disclosure Schedules as an
exception to a representation or warranty will not be deemed an admission that such item represents a material exception or material fact, event or circumstance. Prior to the Inspection Period End Date, upon notice to Purchaser, Franchisor may
update the Franchisor’s Disclosure Schedules at any time subject to the provisions of Section 2.1(d). After the Inspection Period End Date, upon notice to Purchaser, Franchisor may update the Franchisor’s Disclosure Schedules
but only so long as the item disclosed was first discovered after the Inspection Period End Date. To the extent that prior to Closing Purchaser has Knowledge that any of the representations or warranties contained in this Appendix 6 have been
breached and Purchaser elects to proceed with Closing, Purchaser will be deemed to have waived such breach. 
  

	6.1	Identity and Power. 

  

	 	(a)	Franchisor has all requisite power and all governmental licenses, authorizations, consents and approvals necessary to carry on its business as now conducted, to execute
and deliver this Agreement and any document or instrument required to be executed and delivered on behalf of it hereunder, to perform its obligations under this Agreement and any such other documents or instruments and to consummate the transactions
contemplated hereby; and 

  

	 	(b)	Franchisor is duly organized and validly existing under the laws of Kansas, and has all requisite power and authority under the laws of Kansas and under its charter
documents to conduct its business and enter into and perform its obligations under this Agreement and to consummate the transactions contemplated hereby. 

  
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	6.2	Authorization, No Violations and Notices. 

  

	 	(a)	The execution, delivery and performance of this Agreement by Franchisor, and the consummation of the transactions contemplated hereby, have been duly authorized,
adopted and approved by Franchisor as necessary. No other proceedings are necessary to authorize this Agreement and the transactions contemplated hereby. This Agreement has been duly executed by Franchisor and is a valid and binding obligation
enforceable against Franchisor in accordance with its terms. There are no actions or proceedings pending or threatened to liquidate, reorganize, place in bankruptcy or dissolve Franchisor, and Franchisor is contemplating no such action.

  

	 	(b)	Neither the execution, delivery, or performance by Franchisor of this Agreement, nor the consummation of the transactions contemplated hereby, nor compliance by
Franchisor with any of the provisions hereof, will: 

  

	 	(i)	violate, conflict with, result in a breach of any provision of, constitute a default (or an event, which, with the passage of time, the giving of notice, or both, would
constitute a default, except such mortgages or security documents with respect to a financing transaction that will be paid off at Closing) under, result in the termination of, accelerate the performance required by, or result in a right of
termination or acceleration, or the creation of any lien, security interest, charge, or encumbrance upon any of the assets of Franchisor, under any of the terms, conditions, or provisions of its organizational documents, as applicable, licenses,
leases, agreements, or other instruments, or obligation to which Franchisor is a party, or by which Franchisor may be bound, or to which Franchisor may be subject; 

 

	 	(ii)	violate any judgment, ruling, order, writ, injunction or decree applicable to Franchisor; or 

 

	 	(iii)	to Franchisor’s Knowledge, violate any statute, rule, or regulation applicable to Franchisor. 

 

	6.3	Litigation With Respect to Franchisor. There is no action, suit, claim or proceeding pending or, to Franchisor’s Knowledge, threatened against or affecting
Franchisor relating to the Assets or any part of or interest in any Property before any Governmental Body which could create a Material Adverse Effect. 

  

	6.4	Organizational Documents. To Franchisor’s Knowledge, no fact or circumstance has occurred which, by itself or with the passage of time or the giving of
notice or both, would constitute a material default under any of Franchisor’s organizational documents and no fact or circumstance has occurred which, by itself or with the passage of time or the giving of notice or both, would constitute a
material default under Franchisor’s organizational documents. 

  

	6.5	Employees. Franchisor has no employees. 

  
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	6.6	Benefit Plans. Franchisor does not have and has never had any Benefit Plans. 

 

	6.7	Intellectual Property. 

  

	 	(a)	Schedule 6.7 contains a true and complete list of all of Franchisor’s Intellectual Property. Each item of Franchisor’s Intellectual Property is
valid and subsisting, in good standing and recorded in the name of the Franchisor. All necessary registration, maintenance and renewal fees are not currently past due in connection with Franchisor’s Intellectual Property for which a
registration has been issued, and all necessary documents, recordations and certifications in connection with the Franchisor’s Intellectual Property for which a registration has issued have been filed with the relevant patent, copyright,
trademark or other authorities in the United States that are sufficient, for the purpose of maintaining the registration of such Franchisor’s Intellectual Property. None of the Franchisor’s Intellectual Property for which a
registration has issued or for which an application for registration is pending is currently the subject of a final rejection with the relevant patent, copyright trademark or other authorities in the United States or foreign jurisdiction, as the
case may be. Except as set forth in Schedule 6.7, to the Knowledge of the Franchisor, no Person has challenged the validity or enforceability of any of the Franchisor’s Intellectual Property as currently used by the Franchisor or
the Franchisor’s rights in and thereto. Except as set forth in Schedule 6.7, the Franchisor’s Intellectual Property does not contain, embody, use nor require the Intellectual Property of any Person other than that of the
Franchisor. 

  

	 	(b)	The Franchisor has marketable title to, or has licenses to, each material item of Franchisor’s Intellectual Property, free and clear of any Lien. Except as
disclosed on Schedule 6.7(b), the Franchisor is entitled to the exclusive and uninterrupted rights in and to the Intellectual Property owned by it without payment of any royalty or other fees to any Person and is entitled to bring actions for
infringement or other violation of such Intellectual Property. The Franchisor has diligently protected its legal rights in and to the exclusive and uninterrupted use of the Franchisor’s Intellectual Property owned by it. Except as
disclosed in Schedule 6.7(b) and with respect to the Properties, the Franchisor has not assigned, transferred, or licensed to any Person any of the Franchisor’s Intellectual Property, or any rights therein, in whole or in part, which, in
the case of a license, is not revocable or terminable at the discretion of the Franchisor, without penalty or termination fees. 

  

	 	(c)	To the Knowledge of the Franchisor, its Intellectual Property has not infringed or misappropriated and does not infringe or misappropriate the Intellectual Property of
any other Person as currently used by the Franchisor. 

  

	6.8	Existing License Agreements. The Existing License Agreements are valid and in full force and effect as of the date hereof and will remain so until the Closing.
Until the Closing, Franchisor will not be in default thereunder (with or without the giving of any required notice and/or lapse of time). 

  
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	6.9	Taxes. To the Franchisor’s Knowledge, Franchisor has complied in all material respects with all applicable laws relating to the payment of taxes.

  

	6.10	Brokerage Commission. Franchisor has not employed any broker, finder or investment banker or incurred any liability for any investment banking fees, financial
advisory fees, brokerage fees or finders’ fees in connection with the transactions contemplated in this Agreement. 

  

	6.11	Due Diligence Documents. Franchisor has delivered to Buyer true and complete copies of the Due Diligence Documents. 

  
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 APPENDIX 7 
 HOTELS UNDER CONSTRUCTION 
  

	7.1	Hotels Under Construction. 

  

	 	(a)	Hotel Sierra® King of Prussia hotel. 

  

	 	(i)	 For the Hotel
Sierra® King of Prussia hotel under construction, LodgeWorks and the applicable Seller will complete the
construction according to the existing plans and specifications and pursuant to the Design/Build Agreement and Project Addendum between LodgeWorks and the general contractor for the applicable Hotel providing for the construction of the applicable
Hotel (collectively, the “Design/Build Agreement”) and will convey the property free and clear of any construction related or financing liens. The Purchase Price allocated for this Hotel will consist of (i) the
“Cost Reimbursement Component,” and (ii) the “Profit Component” as reflected on Schedule 7.1(b) (as updated by this Seller from time to time through the Delayed Closing Date for this Hotel).

  

	 	(ii)	The Delayed Closing for this Hotel will occur on the date which is ten (10) business days following: (i) issuance of the temporary certificate of occupancy
for this Hotel, and (ii) receipt of the Certificate of Substantial Completion for this Hotel pursuant to the terms of the Design/Build Agreement for this Hotel; provided, however, the Delayed Closing for this Hotel must occur on or before the
opening of this Hotel for business to the public. Until the Delayed Closing, all risk of casualty loss remains with the applicable Seller and all expenses incurred by such Seller in finishing construction and equipping of this Hotel will be paid by
the applicable Seller (subject to the provisions of subsections (a)(iii) and (a)(iv) below). The development budget and transfer price calculation as of June 21, 2011 is set forth on Schedule 7.1(b). 

 

	 	(iii)	The parties acknowledge that the sale of this Hotel may take place following the acquisition of the other Assets, depending upon when the Primary Closing occurs. At the
Delayed Closing for this Hotel, Purchaser will deposit with the Escrow Agent an amount equal to the Cost Reimbursement Component as reflected on Schedule 7.1(b) (as updated by this Seller from time to time through the Delayed Closing Date for
this Hotel) and the amount necessary to pay off in full the first mortgage loan secured by this Hotel (to the extent not included in the Cost Reimbursement Component), and the Escrow Agent will (a) pay off in full the first mortgage lender for
this Hotel, Westdeutsche ImmobilienBank AG; and (b) pay to the applicable Seller the Cost Reimbursement Component (or remaining portion thereof, as applicable, after the pay-off of the first mortgage loan to the extent any portion of such loan
is included in such Component). 

  
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	 	(iv)	At the Delayed Closing for the Hotel Sierra King of Prussia hotel, Purchaser will deposit with the Escrow Agent the Purchase Price allocated to this Hotel for the
account of the applicable Seller, less the amount disbursed as provided in subsection (a)(iii) above. The Escrow Agent will apply these funds first, for all remaining unpaid costs under the development budget, such as construction costs, FF&E
purchases, and other items, in accordance with the terms of the Design/Build Agreement and in the manner provided in the Escrow Agreement; second, to any monetary title defects remaining outstanding at the Delayed Closing; and third, the remainder
to the applicable Seller. 

  

	 	(v)	Purchaser will use its commercially reasonable efforts to timely achieve Final Completion (as defined in the Design/Build Agreement). 

 

	 	(vi)	On the Release Date (as defined below), Purchaser will deposit with the Escrow Agent the remaining portion of the Purchase Price allocated to this Hotel (which
constitutes the Profit Component for this Hotel, reconciled as of such Release Date for any overage or underage in the final development costs for this Hotel), less the portion of the Holdback Escrow Amount allocated to this Hotel (such net amount
being the “Net Profit Component”, and deliver to the Escrow Agent the portion of the Holdback Escrow Amount allocated to this Hotel. In addition, at the Release Date the Escrow Agent will pay the Net Profit Component to the
applicable Seller. 

  

	 	(vii)	For the purposes of this Appendix, the applicable Seller and Purchaser agree that Purchaser will use as its standard (the “Release Standard”)
for approving the “final payment” under the Design/Build Agreement to the general contractor for the applicable Hotel and the release to the applicable Seller of the portion of the Purchase Price allocated to the Hotel (less the applicable
Holdback Escrow Amount), the “Conditions Precedent to Final Advance” set forth in Section 3.5 of the Loan Agreement (the “Loan Agreement”) between the applicable Seller (as Borrower) and Westdeutsche
ImmobilienBank AG (as Lender) with respect to the applicable Hotel, which section provides as follows (all capitalized terms in the following shall have the meanings set forth in the Loan Agreement): 

“Section 3.5. Conditions Precedent to Final Advance. The obligation of Lender under this Agreement to make the Final
Advance is subject to the fulfillment of each and every of the following conditions: 
 “(a) General
Advance Conditions Satisfied. Each and every of the General Advance Conditions shall be satisfied. 

  
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 “(b) Construction Completed. The Inspecting Architect/Engineer
certifies to Lender that the Completion of Construction has occurred. 
 “(c) Certificate of Occupancy.
Lender shall have received a permanent unconditional certificate of occupancy or its equivalent issued for the Improvements by the appropriate Governmental Authority confirming Completion of Construction. 

“(d) Release of Liens. Lender shall have received from Borrower all Required Lien Waivers. 

“(e) As-Built Survey. Lender shall have received the As-Built Survey certified to Lender. 

“(f) As-Built Plans and Specifications. The Inspecting Architect/Engineer on behalf of Lender shall have
received the As-Built Plans and Specifications.” 
 The parties acknowledge that each and every of the General Advance
Conditions (as referenced above) have now been satisfied and construction of this Hotel has been commenced. 
  

	 	(viii)	For the purposes of this Appendix, the term “Release Date” shall mean ten (10) business days following the date that the applicable Hotel
shall have achieved Final Completion pursuant to the Design/Build Agreement and the Release Standard (as defined above) has been achieved for the applicable Hotel. 

 

	 	(b)	Hotel Sierra® Merrifield hotel. 

  

	 	(i)	 For the Hotel Sierra® Merrifield hotel under construction, LodgeWorks will deliver the property (as partially constructed) at the Primary Closing
and Purchaser will complete construction and opening of the hotel for its own account and at its own expense. The Purchase Price for such Hotel will consist of (i) the “Cost Reimbursement Component,” and (ii) the “Profit
Component” as reflected on Schedule 7.1(b) (as updated by Sellers from time to time through the Closing Date for this Hotel). At the Closing for this Hotel, Purchaser shall deposit with the Escrow Agent an amount equal to the Cost Reimbursement
Amount as reflected on Schedule 7.1(b) (as updated by Sellers from time to time through the Closing Date for this Hotel). In addition, at the Closing for this Hotel Escrow Agent will pay off in full the first mortgage lender for this Hotel,
Westdeutsche ImmobilienBank AG, and the remainder of the previously deposited Cost Reimbursement Component will be paid to the applicable Seller. On the Closing Date for this Hotel, the risk of casualty loss will transfer to the

  
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Purchaser. At the Release Date for this Hotel, Purchaser shall deposit with the Escrow Agent an amount equal to the Profit Component and the Escrow Agent will pay to the applicable Seller such
amount, less the portion of the Holdback Escrow Amount allocated to this Hotel, and the portion of the Holdback Escrow Amount allocated to this Hotel will be retained by the Escrow Agent and held in accordance with the terms of the Escrow Agreement.
For the purposes of this provision, the applicable Seller and Purchaser agree that Purchaser will use the Release Standard as the standard for approving the payment to the applicable Seller of the “Profit Component” for this Hotel (less
the applicable Holdback Escrow Amount). 

  

	 	(ii)	After the Closing for the Hotel Sierra Merrifield hotel, Purchaser will fund for its own account all remaining unpaid costs under the development budget, such as
construction costs, FF&E purchases, etc. in accordance with the terms of the Design/Build Agreement applicable to this Hotel, as and when required thereunder. 

  
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 APPENDIX 8 
 ECONOMIC ADJUSTMENTS AND CLOSING DELIVERIES 
  

	8.1	Apportionments and Other Economic Adjustments 

  

	 	(a)	Closing Statement. No later than the business day prior to the applicable Closing, the parties, through their respective employees, agents or representatives,
jointly will make such examinations, audits and inventories of the Hotels. Based upon such examinations and audits, the parties jointly will prepare prior to each Closing a closing statement (the “Closing Statement”), which
will set forth their best estimate of the amounts of the items to be adjusted and prorated under this Agreement. The Closing Statement will be approved and executed by the parties at such Closing, and such adjustments and prorations will be final
with respect to the items set forth in the Closing Statement, except to the extent any such items will be reprorated after such Closing as expressly set forth in Appendix 8.1(e) below. 

 

	 	(b)	Items to be Apportioned. The following will be prorated and apportioned between the appropriate Selling Party and Purchaser as of 11:59 PM local time
(“Cut-Off Time”) at the Asset location on the Closing Date, except as otherwise expressly provided to the contrary below: 

  

	 	(i)	Property Taxes. Real estate taxes, ad valorem taxes, personal property taxes, special assessments, sewer rents and taxes, and any other governmental tax or
charge levied or assessed against the Assets (collectively, the “Property Taxes”), will be apportioned on the basis of the respective periods for which each is assessed or imposed. If the Closing Date will occur before an
assessment is made or a tax rate is fixed for the tax period in which the Closing occurs, the apportionment of such Property Taxes will be calculated on the basis of the prior year’s Property Taxes; provided, however, that after the Closing,
Seller and Purchaser will reprorate the Property Taxes and pay any deficiency in the original proration to the other party promptly upon receipt of the actual bill for the relevant taxable period. 

 

	 	(ii)	Utilities. The Utilities will be apportioned after Closing based on the utility bills for the period that includes that Closing Date. Purchaser will reimburse
Sellers for any utility deposits made by Sellers and where applicable post a replacement bond. Seller will reimburse Purchaser for any utility bills paid by Purchaser to the extent the same relate to the period prior to the Closing Date.

  

	 	(iii)	Approvals. All amounts prepaid, accrued or due and payable under any Approvals transferred to Purchaser will be prorated. 

 

	 	(iv)	 Licenses. Prepaid fees or other charges for transferable Existing License Agreements agreed to be assumed by Purchaser, if any, will be

  
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apportioned on the basis of the fiscal period covered by such license, but all amounts refundable under unassigned or unassignable licenses will remain the property of Sellers.

  

	 	(v)	Contracts and Leases. Amounts paid or payable under the Assumed Contracts (other than with respect to Utilities) and the income or expense associated with the
Tenant Leases, Land Leases (including the Ground Leases and Garage Leases) and Equipment Leases (including the Van Leases) assumed by Purchaser or its designees will be apportioned between the appropriate Selling Party and the Purchaser on the basis
of the period covered by such payments. Purchaser will receive a credit for all deposits held by Sellers under the Assumed Contracts, Tenant Leases, Land Leases and Equipment Leases (together with any interest thereon) which are not transferred to
Purchaser. Sellers will receive a credit for all deposits made by such Seller under the Assumed Contracts, Tenant Leases Land Leases and Equipment Leases (together with any interest thereon to the extent any such deposit is held by the applicable
counterparty in an interest bearing account) which are transferred to Purchaser or remain on deposit for the benefit of Purchaser. 

  

	 	(vi)	Restaurants, Bars, Meeting Rooms, and Parking. Sellers will close out the transactions in the restaurants and bars, meeting rooms, and parking lots in the Hotels
as of the regular closing time for such restaurants and bars, meeting rooms, and parking lots during the night in which the Cut-Off Time occurs and retain all monies collected as of such closing, and Purchaser will be entitled to any monies
collected from the restaurants and bars thereafter. 

  

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

 

	 	(viii)	 Trade Payables. Except to the extent an adjustment or proration is made under another subsection of this Appendix 8.1(b),
(A) Sellers will pay in full when due all amounts payable to vendors or other suppliers of goods or services for the Business (the “Trade Payables”) which are due and payable as of the applicable Closing Date for which
goods or services have been delivered to the Hotels prior to the applicable Closing, and (B) Purchaser will receive a credit for the amount of such Trade Payables which have accrued, but are not yet due and payable as of the Closing Date, and
Purchaser will pay all such Trade Payables accrued as of the Closing Date when such Trade Payables become due and payable; provided, however, Seller and Purchaser will reprorate the amount of credit for any Trade Payables and pay any deficiency in
the original 

  
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proration to the other party promptly upon receipt of the actual bill for such goods or services. 

  

	 	(ix)	Cash. Seller will receive a credit for all cash on hand or on deposit in any house bank at the Hotels which will remain on deposit for the benefit of Purchaser.

  

	 	(x)	Bookings. Purchaser will receive a credit for all prepaid deposits for Bookings scheduled to occur on or after the Closing Date, except to the extent such
deposits are transferred to Purchaser. 

  

	 	(xi)	Sales Taxes. All sales, use and occupancy taxes, if any, due or to become due in connection with revenues from the Properties apportioned or allocated to Sellers
will be paid by Sellers, and all sales, use and occupancy taxes due or to become due in connection with revenues apportioned or allocated to Purchaser will be paid by Purchaser. Sellers and Purchaser will each indemnify the other from and against
any liability for unpaid sales, use or occupancy tax resulting from the indemnifying party’s failure to make the payments required under this Section. 

 

	 	(xii)	2011 Annual Bonus Plan. LodgeWorks provides its employees with an annual bonus plan (the “2011 Annual Bonus Plan”). Hyatt will continue the 2011 Annual
Bonus Plan for the remainder of 2011. The 2011 Annual Bonus Plan requires two payments; the first on August 15, 2011 and the second between February 15, 2012 and March 15, 2012. The first payment will be made by LodgeWorks on
August 15, 2011. The second payment will be made by Hyatt between February 15, 2012 and March 15, 2012. LodgeWorks and Hyatt will prorate the cost of the 2011 Annual Bonus Plan based on the Closing Date. 

 

	 	(xiii)	Compensation. Seller will pay directly to the Employees all Compensation due to such Employees through the date immediately prior to the Closing Date when due,
and Purchaser will not receive a credit for any Compensation. 

  

	 	(xiv)	Other Adjustments and Prorations. All other items of income and expense as are customarily adjusted or prorated upon the sale and purchase of a hotel property
similar to the Properties will be adjusted and prorated between Seller and Purchaser accordingly. 

  

	 	(c)	Accounts Receivables. 

  

	 	(i)	 Guest Ledger. At the applicable Closing, Sellers will receive a credit in an amount equal to all amounts charged to the Guest Ledger for all
room nights up to the night during which the Cut-Off Time occurs (other than any restaurant or bar charges on the Guest Ledger which will be prorated in accordance with Appendix 8.1(b)(ii) below), and Purchaser will be entitled to retain all
deposits made and amounts collected with respect to 

  
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such Guest Ledger. All room revenue for the night during which the Cut-Off Time occurs will be split equally between the applicable Seller and the Purchaser. 

 

	 	(ii)	Accounts Receivable (Other than Guest Ledger). Seller will retain the right to collect all Accounts Receivable (other than the Guest Ledger which is addressed in
Appendix 8.1(b)(i) above), and Purchaser will not receive a credit for such Accounts Receivable. Purchaser will cooperate with Seller in collecting the Accounts Receivable, at no cost or expense to Purchaser. If any such Accounts Receivable
are paid to Purchaser after the applicable Closing, Purchaser will remit such payments to Seller, in the same form as received. 

  

	 	(iii)	Other Revenue. All revenue, not otherwise allocated in this Agreement, from the day during which the Cut-Off Time occurs will be split equally between the
applicable Seller and the Purchaser. 

  

	 	(d)	Reconciliation and Final Payment; Intent of Section. Sellers and Purchaser will cooperate after Closing to make a final determination of the prorations and
adjustments required hereunder as soon as reasonably practicable, but in no event later than 90 days after the Closing Date (except with respect to any item which is not determinable within such time frame, as to which the time period will be
extended until such item is determinable). Upon the final reconciliation of the prorations and adjustments under this Section, the party which owes the other party any sums hereunder will pay such party such sums within ten days after the
reconciliation thereof. It is the intent of the parties that all items herein which are subject to apportionment will, except as otherwise specifically provided in this Section, result in Sellers receiving all of the economic benefits and burdens of
the Properties with respect to the period prior to the Closing Date, and Purchaser receiving all of the economic benefits and burdens of the Properties with respect to the period from and after the Closing Date. 

 

	 	(e)	Management Agreements. All fees earned under any terminated Hotel Management Agreements will accrue to LodgeWorks. All Hotel Management Agreements that are
Assumed Contracts will be prorated between LodgeWorks and the Purchaser as of the Closing Date on a daily basis. 

  

	 	(f)	Condominium Association Fees. Amounts paid or payable with respect to condominium association dues, common area maintenance expenses or other fees in connection
with the Hotels will be apportioned between the appropriate Selling Party and the Purchaser on the basis of the period covered by such payments. 

  

	8.2	Sellers’ Deliveries. At Closing, Sellers will deliver (or cause to be delivered) to Purchaser or the Escrow Agent all of the following instruments, each of
which will have been duly executed and, where applicable, acknowledged and will be dated as of the Closing Date: 

  
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	 	(a)	For each of the Properties, except for the Leasehold Properties, a special warranty deed, or other customary form of deed with covenants only against grantor’s
acts, conveying fee simple title of the Real Property to Purchaser or its designee, in form reasonably acceptable to Sellers, Purchaser and Title Company (“Deed”); 

 

	 	(b)	For each Leasehold Property, document conveying good and marketable indefeasible leasehold title to the Leasehold Properties (“Assignment of Ground
Lease”); 

  

	 	(c)	An Assignment and Assumption Agreement for each of the Properties; 

  

	 	(d)	An Assignment of Leases for each of the Properties; 

  

	 	(e)	The Estoppel Certificates, as required under Section 7.1(g); 

  

	 	(f)	The Assignment of Intellectual Property Agreement; 

  

	 	(g)	The Alcoholic Beverage Services Agreement; 

  

	 	(h)	A FIRPTA Certificate for each Seller; 

  

	 	(i)	True and complete copies of all Warranties; 

  

	 	(j)	The Representation and Warranty Certificate; 

  

	 	(k)	The Closing Statement; 

  

	 	(l)	Notices to tenants in form reasonably acceptable to Purchaser; 

  

	 	(m)	A certificate or registration of title for any owned vehicle or other Tangible Personal Property included in the Assets which requires such certification or
registration, duly executed, conveying such vehicle or such other Tangible Personal Property to Purchaser; 

  

	 	(n)	Appropriate consent of Sellers authorizing (i) the execution of any documents to be executed and delivered by Sellers prior to, at or otherwise in connection with
Closing and in connection with the transactions contemplated by this Agreement, and (ii) the performance by Sellers of their obligations hereunder and under such documents; 

 

	 	(o)	 For the Hotel
Sierra® Merrifield hotel, Sellers will deliver support for all costs incurred to date and assignment of all
contracts; 

  

	 	(p)	One or more bills of sale conveying Sellers’ interest in the Intangible Personal Property and Tangible Personal Property for each Property in the Properties.

  

	 	(q)	The lien waivers and other documents described in Appendix 7; 

  
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	 	(r)	Any real estate transfer tax declarations or similar documents required under applicable law in connection with the conveyance of the Properties;

  

	 	(s)	All originals (or copies if originals are not available) of the Ground Leases, Leases, Equipment Leases, Operating Agreements, Approvals, Books and Records and
Warranties, keys and lock combinations in Seller’s possession, which will be located at the Hotels on the applicable Closing Date; 

  

	 	(t)	Such agreements, affidavits or other documents as may be reasonably required by the Title Company from the Sellers to issue the Title Policies (including, without
limitation, affidavits from Sellers in form and substance reasonably acceptable to the Title Company for the purpose of issuing the Title Policies without an exception for any materialmen’s or broker’s lien and/or to insure the period
between the applicable Closing Date and the date of recording of the applicable Deed); and 

  

	 	(u)	Any other document or instrument reasonably requested by Purchaser or the Title Company or required herein. 

 

	8.3	LodgeWorks’ Deliveries. At Closing, LodgeWorks will deliver (or cause to be delivered) to Purchaser or the Escrow Agent all of the following instruments,
each of which will have been duly executed and, where applicable, acknowledged and will be dated as of the Closing Date: 

  

	 	(a)	The LodgeWorks Office Lease, in the event Purchaser, in its sole and absolute discretion elects to lease the LodgeWorks Property; 

 

	 	(b)	An Assignment and Assumption Agreement of Development Agreements with respect to the Sierra King of Prussia, Sierra Merrifield and, to the extent Purchaser elects to
assume any Development Projects, such Development Projects; 

  

	 	(c)	Consents to the Assignment and Assumption Agreement of the Development Agreements described in subsection (b) above from the counterparties to such Development
Agreements, including, without limitation, the architects of such Hotels or projects; 

  

	 	(d)	Consents to the assignment of the Hotel Management Agreements and Existing License Agreements to the extent they are required under the terms of such agreements;

  

	 	(e)	The Non-Competition Agreement; 

  

	 	(f)	The Representation and Warranty Certificate; 

  

	 	(g)	The Closing Statement; 

  
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	 	(h)	Appropriate consent of LodgeWorks authorizing (i) the execution of any documents to be executed and delivered by LodgeWorks prior to, at or otherwise in connection
with Closing and in connection with the transactions contemplated by this Agreement, and (ii) the performance by LodgeWorks of its obligations hereunder and under such documents; 

 

	 	(i)	One or more bills of sale or assignments conveying LodgeWorks’ interest in the Assets; and 

 

	 	(j)	Any other document or instrument reasonably requested by Purchaser or the Title Company or required herein. 

 

	8.4	Franchisor’s Deliveries. At Closing, Franchisor will deliver (or cause to be delivered) to Purchaser or the Escrow Agent all of the following instruments,
each of which will have been duly executed and, where applicable, acknowledged and will be dated as of the Closing Date: 

  

	 	(a)	An Assignment and Assumption Agreement with respect to any Existing License Agreements listed on Exhibit H to which Franchisor is a party;

  

	 	(b)	The Representation and Warranty Certificate; 

  

	 	(c)	Appropriate consent of Franchisor authorizing (i) the execution of any documents to be executed and delivered by Franchisor prior to, at or otherwise in connection
with Closing and in connection with the transactions contemplated by this Agreement, and (ii) the performance by Franchisor of its obligations hereunder and under such documents; 

 

	 	(d)	One or more bills of sale or assignments conveying Franchisor’s interest in the Franchisor’s interest in the Assets; 

 

	 	(e)	An Assignment of the Intellectual Property; 

  

	 	(f)	The Closing Statement; and 

  

	 	(g)	Any other document or instrument reasonably requested by Purchaser or the Title Company or required herein. 

 

	8.5	Purchaser’s Deliveries. At Closing, Purchaser or its designees will pay or deliver to the Selling Parties, or the Escrow Agent the following:

  

	 	(a)	The Purchase Price, paid in accordance with the provisions set forth in this Agreement; 

 

	 	(b)	The Representation and Warranty Certificate; 

  

	 	(c)	The Assignment and Assumption Agreements for each of the Selling Parties; 

  
 83 

	 	(d)	The LodgeWorks Lease; 

  

	 	(e)	Non-Competition Agreement; 

  

	 	(f)	Non-Solicitation Agreement; 

  

	 	(g)	Closing Statement 

  

	 	(h)	The Assignment of Leases for each of the Sellers; 

  

	 	(i)	Alcoholic Beverage Services Agreement; 

  

	 	(j)	Appropriate consent of Purchaser, authorizing (i) the execution of any documents to be executed and delivered by Purchaser prior to, at or otherwise in connection
with Closing and in connection with the transactions contemplated by this Agreement, and (ii) the performance by Purchaser of its obligations hereunder and under such documents; 

 

	 	(k)	Termination or transfer, at Purchaser’s sole discretion, of all Existing License Agreements for any Hotels or Third Party Owned Hotels licensed as a
“Hyatt” without any termination fees or costs that would otherwise be due as a result of the consummation of the transaction pursuant to this Agreement; and 

 

	 	(l)	Any other document or instrument reasonably requested by the Selling Parties or the Title Company or required hereby. 

 

	8.6	Safe Deposit Boxes and Baggage. 

  

	 	(a)	Safe Deposit Boxes. On or prior to the Closing Date, Sellers will give written notices to those persons who have deposited items in any safe deposit boxes
(excluding in-room safes), advising them of the sale of the Hotels to Purchaser and requesting the removal or verification of their contents in such safe deposit boxes on the Closing Date. All such removals or verifications on the Closing Date will
be under the supervision of Sellers’ and Purchaser’s respective representatives. All contents which are to remain in the safe deposit boxes will be recorded. Any such contents so verified or recorded and thereafter remaining in the hands
of Purchaser will be the responsibility of Purchaser. 

  

	 	(b)	Baggage. On the Closing Date, representatives of Purchaser and Sellers will take an inventory of all baggage, valises and trunks checked or left in the care of
Sellers at the Hotels. From and after the Closing Date, Purchaser will be responsible for all baggage listed in said inventory. 

  

	 	(c)	 Lease of IT Systems. With respect to the IT Systems, Seller will cooperate with Purchaser in obtaining any consents or approvals necessary for
the non-exclusive lease of such IT Systems by Purchaser, or a new license for such IT Systems (as the case may be). Such consents or approvals or the new license will be obtained

  
 84 

	 	
at least 10 days before the Inspection Period End Date. It is anticipated that both the Selling Parties and Purchaser will utilize the IT Systems after Closing. 

  
 85 

 APPENDIX 10 
 INDEMNIFICATION BY THE SELLING PARTIES; REMEDIES 
  

	10.1	Survival of Representations and Warranties. The representations and warranties of the parties contained in this Agreement and any certificate or other instrument
delivered pursuant hereto will survive the Closing through and including the 18 month anniversary of the applicable Closing Date (the “Survival Period”). The Survival Period will not extend past 18 months for any Asset. Any
obligations to indemnify and hold harmless will not terminate with respect to any Losses as to which the Person to be indemnified will have given notice to the Indemnifying Party in accordance with Section 10.3 before the termination of
the applicable Survival Period. 

  

	10.2	The Selling Parties’ Indemnification. Subject to Section 10.1, the Selling Parties hereby agree to indemnify and hold Purchaser and its
Affiliates and their respective directors, officers, employees, stockholders, members, partners, agents, attorneys, representatives, successors and assigns (collectively, the “Purchaser Indemnified Parties”) harmless from and
against, and pay to the applicable Purchaser Indemnified Parties the amount of, any and all losses, liabilities, claims, obligations, deficiencies, demands, judgments, damages (including incidental and consequential damages), interest, fines,
claims, suits, actions, causes of action, assessments, costs and expenses (including costs of investigation and defense and attorneys’ and other professionals’ fees), or any diminution in value, whether or not involving a third party claim
(individually, a “Loss” and, collectively, “Losses”): 

  

	 	(a)	based upon, attributable to, or resulting from, the failure of any of the representations or warranties made by any Seller to be true and complete as of the date
hereof; and 

  

	 	(b)	based upon, attributable to, or resulting from, the breach of any covenant or other agreement on the part of any Seller, LodgeWorks or Franchisor under this Agreement.

  

	10.3	Indemnification Limitations. 

  

	 	(a)	The Selling Parties will have no obligation to indemnify the Purchaser until the Loss from all such claims exceeds a $250,000 deductible, determined on a per Property
basis. LodgeWorks will have no obligation to indemnify the Purchaser until the Loss from all LodgeWorks related claims exceeds $250,000 deductible. Franchisor will have no obligation to indemnify the Purchaser until the Loss from all such claims
exceeds $250,000 deductible. Notwithstanding the foregoing, claims against LodgeWorks, as manager of the Properties, will be allocated to the applicable Property’s deductible, and no Property will be eligible for more than one $250,000
deductible. The liability of the Selling Parties, collectively, to indemnify the Purchaser will not exceed the Holdback Escrow Amount. The Holdback Escrow Amount is Purchaser’s exclusive remedy for any indemnity claim. 

  
 86 

	 	(b)	The aggregate liability of the Purchaser to indemnify the Selling Parties for a breach of any representation, warranty, or covenant contained herein, but excluding the
indemnification under Section 2.1 and the liquidated damages in Section 11.3(b), may not exceed the Purchaser Liability Cap. 

  

	10.4	Indemnification Procedures. 

  

	 	(a)	A claim for indemnification for any matter not involving a third party claim may be asserted by notice to the party or parties from whom indemnification is sought and
the Escrow Agent, in accordance with the terms of the Escrow Agreement and Section 11.19. 

  

	 	(b)	In the event of a legal proceeding or that any claim or demand is asserted by any third party in respect of which payment may be sought under Section 10.2
hereof (“Indemnification Claim”), the Purchaser Indemnified Parties or Seller Indemnified Parties, as applicable (hereinafter, the “Indemnified Party”) will promptly cause written notice of the
assertion of any Indemnification Claim of which it has knowledge which is covered by this indemnity to be forwarded to the Indemnifying Party or representative thereof (hereinafter, the “Indemnifying Party”) and, if the claim
is against the Selling Parties, the Escrow Agent. The failure of the Indemnified Party to give reasonably prompt notice of any Indemnification Claim will not release, waive or otherwise affect the Indemnifying Party’s obligations with respect
thereto except to the extent that the Indemnifying Party can demonstrate actual loss and prejudice as a result of such failure. The Indemnifying Party will have the right, at its sole expense, to be represented by counsel of its choice, which must
be reasonably satisfactory to the Indemnified Party, and to defend against, negotiate, settle or otherwise deal with any Indemnification Claim which relates to any Losses indemnified against by it hereunder. Provided however, that all Purchaser
Indemnification Claims will be paid exclusively from the Holdback Escrow Amount and paid pursuant to the claims procedure set forth in the Escrow Agreement. 

 

	 	(c)	 If the Indemnifying Party elects to defend against, negotiate, settle or otherwise deal with any Indemnification Claim which relates to any Losses
indemnified against by it hereunder, it will within five days (or sooner, if the nature of the Indemnification Claim so requires) notify the Indemnified Party of its intent to do so. If the Indemnifying Party elects not to defend against, negotiate,
settle or otherwise deal with any Indemnification Claim which relates to any Losses indemnified against by it hereunder, fails to notify the Indemnified Party of its election as herein provided or contests its obligation to indemnify the Indemnified
Party for such Losses under this Agreement, the Indemnified Party may defend against, negotiate, settle or otherwise deal with such Indemnification Claim. If the Indemnified Party defends any Indemnification Claim, then the Indemnifying Party will
reimburse the Indemnified Party for the expenses of defending such Indemnification Claim upon submission of periodic bills. If the Indemnifying Party will assume the defense of any Indemnification Claim, the Indemnified Party may participate, at his
or its own expense, in the defense of such 

  
 87 

	 	
Indemnification Claim; provided, however, that such Indemnified Party will be entitled to participate in any such defense with separate counsel at the expense of the Indemnifying Party if
(i) so requested by the Indemnifying Party to participate or (ii) in the reasonable opinion of counsel to the Indemnified Party a conflict or potential conflict exists between the Indemnified Party and the Indemnifying Party that would
make such separate representation advisable; and provided, further, that the Indemnifying Party will not be required to pay for more than one such counsel (plus any appropriate local counsel) for all Indemnified Parties in connection with any
Indemnification Claim. For the avoidance of doubt, the Selling Parties costs of defense will not be paid from the Holdback Escrow Amount. 

  

	 	(d)	The Parties hereto agree to reasonably cooperate with each other in connection with the defense, negotiation or settlement of any such Indemnification Claim involving a
third party. Notwithstanding anything in this Appendix 10.4 to the contrary, neither the Indemnifying Party nor the Indemnified Party will, without the written consent of the other party, settle or compromise any Indemnification Claim or
permit a default or consent to entry of any judgment unless the claimant and such party provide to such other party an unqualified release from all liability in respect of the Indemnification Claim. If the Indemnifying Party makes any payment on any
Indemnification Claim, the Indemnifying Party will be subrogated, to the extent of such payment, to all rights and remedies of the Indemnified Party to any insurance benefits or other claims of the Indemnified Party with respect to such
Indemnification Claim. 

  

	 	(e)	After any final decision, judgment or award will have been rendered by and the expiration of the time in which to appeal therefrom, or a settlement will have been
consummated, or the Indemnified Party and the Indemnifying Party will have arrived at a mutually binding agreement with respect to an Indemnification Claim hereunder, the Indemnified Party will forward to the Indemnifying Party notice of any sums
due and owing by the Indemnifying Party pursuant to this Agreement with respect to such matter and the Indemnifying Party will be required to pay all of such remaining sums so due and owing to the Indemnified Party by wire transfer of immediately
available funds within five business days after the date of such notice. Provided however, that for Purchaser Indemnified Claims the exclusive remedy is the Holdback Escrow Amount and the claims procedure set forth in the Escrow Agreement will
govern the payment of Purchaser Indemnified Claims. 

  
 88EX-10.1

 Exhibit 10.1 
 LEASE 
 BY AND BETWEEN 

WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY, 
 AS LANDLORD, AND 
 rue21, inc., 

AS TENANT 

 INDEX TO LEASE PROVISIONS 

 

					
	 ARTICLE I - Incorporation of Preambles-Certain Definitions

			
		 	1.1	 	Incorporation of Preambles
			
		 	1.2	 	Certain Definitions
	
	 ARTICLE II - Lease of Premises; Approvals; Delivery of Expansion Building; Contingency

			
		 	2.1	 	Premises
			
		 	2.2	 	Approvals
			
		 	2.3	 	Delivery of Expansion Building
			
		 	2.4	 	Contingency
	
	 ARTICLE III - Term and Extensions

			
		 	3.1	 	Initial Term
			
		 	3.2	 	Lease Year
			
		 	3.3	 	Extensions
			
		 	3.4	 	Rent Commencement Date
			
		 	3.5	 	Rent Commencement Date Agreement
	
	 ARTICLE IV - Rent

			
		 	4.1	 	Base Rent
			
		 	4.2	 	Partial Month Rent
			
		 	4.3	 	Terms of Payment
			
		 	4.4	 	Additional Rent
			
		 	4.5	 	Rent
			
		 	4.6	 	Deferment of Rent
	
	 ARTICLE V - Absolute Net Lease

	
	 ARTICLE VI - Use

	
	 ARTICLE VII - Subletting and Assignment

			
		 	7.1	 	Subletting and Assignment
			
		 	7.2	 	Limits on Assignees

					
			
		 	7.3	 	Assignment by Landlord
	
	 ARTICLE VIII - Quiet Enjoyment - Landlord’s Warranty

	
	 ARTICLE IX - Alterations

			
		 	9.1	 	Tenant’s Alterations
			
		 	9.2	 	Method of Alterations
	
	 ARTICLE X - Tenant’s Property

			
		 	10.1	 	Installation Removal
			
		 	10.2	 	Required Removal
			
		 	10.3	 	Title at Termination
	
	 ARTICLE XI - Lien or Encumbrance

			
		 	11.1	 	No Liens
			
		 	11.2	 	No Consent to Work Lien or Encumbrance
	
	 ARTICLE XII - Repairs and Maintenance

			
		 	12.1	 	Duty to Repair
			
		 	12.2	 	Definition and Standard of Repair
			
		 	12.3	 	No Obligation to Repair
	
	 ARTICLE XIII - Requirements of Law

	
	 ARTICLE XIV - Damage or Destruction

			
		 	14.1	 	Tenant’s Obligation to Rebuild
			
		 	14.2	 	Approval of Plans and Specifications
			
		 	14.3	 	Payment from Escrow
			
		 	14.4	 	Failure to Reconstruct; Termination
			
		 	14.5	 	Force Majeure
			
		 	14.6	 	No Abatement of Rent
			
		 	14.7	 	Default in Payment of Rent
			
		 	14.8	 	Landlord’s Mortgage
	
	 ARTICLE XV - Insurance

			
		 	15.1	 	Tenant’s Property Insurance
			
		 	15.2	 	Boiler Insurance

					
			
		 	15.3	 	Public Liability Insurance
			
		 	15.4	 	Worker’s Compensation. Employers Liability Insurance
			
		 	15.5	 	Business Interruption
			
		 	15.6	 	Insurance on Tenant’s Property
			
		 	15.7	 	No Separate Insurance
			
		 	15.8	 	Conduct of Business
			
		 	15.9	 	Requirements of Policies
			
		 	15.10	 	Release, Waiver of Subrogation
	
	 ARTICLE XVI - Indemnification of Landlord

	
	 ARTICLE XVII - Condemnation

			
		 	17.1	 	Authority
			
		 	17.2	 	Taking
			
		 	17.3	 	Termination
			
		 	17.4	 	Restoration
	
	 ARTICLE XVIII - Warranties and Representations

			
		 	18.1	 	Landlord Warranties
			
		 	18.2	 	Tenant Warranties
	
	 ARTICLE XIX - Default

			
		 	19.1	 	Events of Default
			
		 	19.2	 	Landlord’s Rights Upon Tenant’s Default
			
		 	19.3	 	Re-letting
			
		 	19.4	 	Damages Upon Termination
	
	 ARTICLE XX - Signs

	
	 ARTICLE XXI - Taxes and Other Liens

			
		 	21.1	 	Impositions
			
		 	21.2	 	Tax on Tenant Additions
			
		 	21.3	 	Exceptions
			
		 	21.4	 	Proof of Payment
			
		 	21.5	 	Refunds

					
			
		 	21.6	 	Protest
			
		 	21.7	 	Requirements of Mortgage
	
	 ARTICLE XXII - Utilities

			
		 	22.1	 	Payment of Charges
			
		 	22.2	 	Provision of Services
	
	 ARTICLE XXIII - Holding Over

	
	 ARTICLE XXIV - Notice

			
		 	24.1	 	Notice Address
			
		 	24.2	 	Service of Notice
	
	 ARTICLE XXV - Subordination

			
		 	25.1	 	Lease Subordinate
			
		 	25.2	 	Subordination, Self-Operative: Subordination Agreement. Non-disturbance
			
		 	25.3	 	Attornment
			
		 	25.4	 	Attornment to Successor
	
	 ARTICLE XXVI - Landlord’s Access to the Premises

	
	 ARTICLE XXVII - Environmental Compliance

			
		 	27.1	 	Definitions
			
		 	27.2	 	Compliance
	
	 ARTICLE XXVIII - Late Rent

	
	 ARTICLE XXVIX - Estoppel Certificates

	
	 ARTICLE XXX - Reports

	
	 ARTICLE XXXI - Provisions of General Application

	
	 Exhibit A - Real Property Description for Initial Facility

	
	 Exhibit B- Site Plan

	
	 Exhibit C - Three Springs Industrial and Business Park Declarations of Covenants, Conditions and
Regulations

 LEASE 

THIS LEASE (hereinafter sometimes referred to as this “Lease” or this “Agreement”), made this
8th day of July, 2011, and effective on the Expansion
Building Delivery Date, as hereinafter defined (the “Effective Date”), by and between West Virginia Economic Development Authority, a West Virginia public corporation and government instrumentality, having its principal office at 160
Association Drive, Charleston, West Virginia, 25311-1217 (hereinafter referred to as “Landlord”), and rue21, inc., a Delaware corporation, having its principal office at 800 Commonwealth Drive, Warrendale, PA 15086 (hereinafter referred to
as “Tenant”); 
 WITNESSETH THAT: 
 WHEREAS, Tenant desires to lease from Landlord upon the terms and conditions set out herein, the real property described in Exhibit A and illustrated in Exhibit B (the “Site Plan”) located in
the City of Weirton, County of Brooke, State of West Virginia, and 
 WHEREAS, Landlord is willing to purchase and improve said
real property and to lease said real property to Tenant upon the terms and conditions set out herein; 
 NOW, THEREFORE, for and
in consideration of the foregoing preambles, of the mutual promises and covenants contained herein, of Ten Dollars ($10.00) cash in hand paid by Tenant to Landlord, and other good and valuable consideration, the receipt and sufficiency of all of
which is hereby acknowledged by both Landlord and Tenant, Landlord and Tenant hereby agree as follows: 
 ARTICLE I 

Incorporation of Preambles-Certain Definitions 
 1.1 Incorporation of Preambles. The foregoing preambles are hereby incorporated into this Lease as a part hereof by this reference thereto. 

1.2 Certain Definitions. Reference is made in this Article 1.2 to certain defined terms used herein which are defined in the Articles
referred to opposite each such term, as follows: 
  

			
	“Agreement”	 	Preambles
	“Base Rent”	 	Paragraph 4.1
	“Construction Schedule”	 	Paragraph 18.1(i)
	“Declarations”	 	Article VI
	“Details”	 	Paragraph 18.l(i)
	“Expansion Building Delivery Date”	 	Article II
	“Environmental Laws”	 	Paragraph 27.1(a)
	“Force Majeure”	 	Paragraph 14.5
	“Developer”	 	Article II
	“Impositions”	 	Paragraph 21.1
	“Improvements”	 	Article II
	“Initial Term”	 	Paragraph 3.1
	“Landlord”	 	Preambles
	“Laws”	 	Article XIII
	“Lease”	 	Preambles
	“Lease Year”	 	Paragraph 3.2
	“Phase I Report”	 	Paragraph 18.1(d)
	“Premises”	 	Article II
	“Prime Rate”	 	Paragraph 19.3(c)
	“Regulated Substance”	 	Paragraph 27.1(b)

			
	“Rent”	 	Paragraph 4.5
	“Rent Commencement Date”	 	Paragraph 3.4
	“Site Plan”	 	Preambles, Article II
	“Substantial Completion”	 	Article II
	“Tenant”	 	Preambles
	“Tenant’s Building”	 	Article II
	“Tenant’s Property”	 	Article X
	“Term”	 	Paragraph 3.3

 ARTICLE II 
 Lease of Premises; Approvals; Delivery of Expansion Building; Contingency. 
 2.1
Premises. Landlord, for and in consideration of the rent to be paid and of the covenants and agreements herein contained to be kept and performed by Tenant, does hereby exclusively lease and demise to Tenant, and Tenant does hereby exclusively hire
from Landlord, the real property being located in the City of Weirton, County of Brooke and State of West Virginia described in Exhibit A and illustrated on Exhibit B, together with all improvements thereon, which shall include (1) an existing
building containing 189,905 square feet (the “Existing Building”), and (2) a building addition containing approximately 185,000 square feet (the “Expansion Building”) and related attachments, fixtures, utilities, driveway
and parking areas being constructed by Triangle Development Corporation, a West Virginia corporation (“Developer”), and all fixtures and accessory improvements thereon, including all roadway, parking areas and landscaped areas located
thereon (collectively, such Existing Building, Expansion Building, fixtures and improvements are hereinafter referred to as the “Improvements”) together with all easements, rights, privileges and amenities otherwise appurtenant to such
real property (herein called the “Premises”). Said Premises and Improvements are indicated upon the site plan attached hereto as Exhibit “B” (the “Site Plan”). Both the Expansion Building and Existing Building shall be
collectively referred to as “Tenant’s Building”. Tenant is also leasing from Landlord a parcel on which will be constructed a 100-space truck trailer parking lot (“Truck Lot”) pursuant to a separate lease agreement of even
date herewith (“Truck Lot Lease”). 
 2.2 Approvals. Landlord shall be solely responsible, at Landlord’s cost and
expense, for obtaining and maintaining all permits, approvals, zoning, variances or other matters (collectively, the “Approvals”) that may be required by the applicable governmental agencies, bureau departments or any other governmental
entity (a “Governmental Authority”) for the use and operation of the Premises for warehouse, office and freight movement use (excluding occupational licenses and other licenses required for Tenant’s particular use of the Premises).
Tenant shall cooperate with Landlord in Landlord’s obtaining of the Approvals. Landlord warrants and represents that such use is allowed by law as of the date hereof. 

2.3 Delivery of Expansion Building. Landlord and Developer are parties to (i) that a certain Purchase Agreement
dated July 8th, 2011 (“Purchase Agreement”)
for the acquisition of the Expansion Building by Landlord upon the terms, provisions and conditions contained in said Purchase Agreement. Landlord shall deliver to Tenant the Expansion Building on the day of Closing, as defined under and in
accordance with the Purchase Agreement (“Expansion Building Delivery Date”). 
 Landlord warrants and represents that
as of the Expansion Building Delivery Date, each component of the Expansion Building will be in good condition and repair and structurally sound (which condition includes, without limitation, that the Expansion Building roof will be leak-free and
not in need, or in imminent need, of repair and that the plumbing, electrical, heating, ventilation and air-conditioning (“HVAC”) systems will be in new operating condition and repair and not in need, or imminent need, of repair), and
Landlord shall assign to Tenant all warranties and contracts relating to the Improvements. 

 2.4. Contingency. Landlord acknowledges that Tenant’s business operations at the
Premises are expressly contingent upon the availability of the use and operation of the Truck Lot for a period coterminous with this Lease. Accordingly, the parties agree that this Lease is expressly conditioned upon (i) Landlord entering in
the Truck Lot Lease with Tenant that will permit Tenant to immediately improve, occupy and use the Truck Lot for the storage of tractor trailers for Tenant’s business for a period coterminous with this Lease (including any corresponding renewal
options), and (ii) Tenant obtaining all permits, licenses and other required approvals from governmental entities or other parties that may be necessary for construction and operation of the Truck Lot (“Permit Contingency”). If the
foregoing conditions have not been satisfied by Closing, as defined in the Purchase Agreement (“Deadline Date”), then at any time thereafter Tenant may terminate this Lease by giving seven (7) days’ written notice to Landlord.
Should this Lease be terminated pursuant to this Section 2.4., neither party shall have any further rights or obligations hereunder, and neither party shall have any liability to the other party on account of any costs incurred in connection
with this Lease. The Permit Contingency is conditioned upon Tenant diligently pursuing all such permits, licenses and other required approvals, and Landlord shall assist Tenant in obtaining the same. Additionally, Landlord shall be entitled to
reasonable extensions of the Deadline Date to assist obtaining such permits or approvals required to meet the Permit Contingency. Tenant shall provide Landlord written notification of satisfaction the Permit Contingency and the waiver thereof by
Tenant, within 5 days of such event. 
 ARTICLE III 
 Term and Extensions 
 3.1 Initial Term. The initial term (“Initial
Term”) of this Lease shall commence on the Expansion Building Delivery Date and continue for fifteen (15) Lease Years. In the event that Landlord is not able to deliver the Expansion Building to Tenant under the terms of this Lease by
May 1, 2012 (“Drop Dead Date”), then Tenant shall have the have the right to either cancel this Lease or defer the Effective Date of this Lease from month-to-month upon written notification thereof to Landlord; provided, that a
cancellation of this Lease under the terms of this Section 3.1 shall not effect, in any way, Landlord’s and Tenant’s current and continuing obligations under the Old Lease, as hereinafter defined. The Drop Dead Date shall be extended
commensurately with any extension of Closing Completion under the Purchase Agreement and extended commensurately in accordance with any joint decision of Tenant and Landlord to terminate the Purchase Agreement and proceed with completion of the
Expansion Building under and pursuant to the provisions of Section 15.3.10 of the Purchase Agreement. 
 3.2 Lease Year.
The first Lease Year during the Term shall be the twelve (12) calendar month period commencing on the Expansion Building Delivery Date and terminating on the last day of the twelfth (12th) full calendar month following the Expansion
Building Delivery Date (December 31). Each subsequent Lease Year during the Term shall commence on the day immediately following the last day of the preceding Lease Year and shall continue for a period of twelve (12) full calendar months.

 3.3 Extensions. Provided that Tenant is not in default in any condition of this Lease beyond any applicable cure period, at
the time of expiration of the then existing Term of this Lease, Landlord hereby grants to Tenant the option to extend the Term for Two (2) additional periods of Five (5) years, each exercisable by Tenant’s written notice to Landlord
of such exercise given not less than twelve (12) months prior to the expiration of the Initial Term hereof, or of the then existing option period, as the case may be, on the same terms and conditions as applied during the Initial Term, except
the Base Rent. During each such extension period, the Base Rent shall be increased for each such five-year extension period by an amount of three percent (3%) over the Base Rent paid by Tenant at the end of the prior period. Should Tenant fail
to exercise any prior extension option offered hereunder, all subsequent extension options shall be deemed waived as well. Tenant shall have no other renewal rights hereunder. The Initial Term of this Lease, plus all options to extend validly
exercised by Tenant as provided in this Article III, are herein collectively referred to as the “Term.” 

 3.4 Rent Commencement Date. As used herein the term “Rent Commencement Date” shall
be the Expansion Building Delivery Date. 
 3.5 Rent Commencement Date Agreement. When the Rent Commencement Date has been
determined, Landlord and Tenant shall execute a memorandum which shall expressly confirm the Base Rent, Rent Commencement Date, Lease Year, the expiration date of the Initial Term, that Closing, as defined in the Purchase Agreement, of the Expansion
Building has been achieved, that ratifies and affirms all of the terms and provisions of this Lease, and that affirms the Lease remains in full force and effect. 
 3.6 Termination of Old Lease. Effective at midnight on the date immediately preceding the Expansion Building Delivery Date (the “Old Lease Termination Date”), the instrument dated June 28,
1999 (as such may have been amended), wherein Landlord leased to Tenant’s predecessor-in-interest the Existing Building (the “Old Lease”), shall be hereby terminated. Tenant agrees to pay all rent and other sums due under the Old
Lease in accordance with its terms thereof until the Old Lease Termination Date. Landlord and Tenant hereby each relinquish, release, and waive any and all claims of any kind whatsoever arising under or in connection with the Old Lease accruing
subsequent to the Old Lease Termination Date. 
 ARTICLE IV 

Rent 
 4.1 Base
Rent. The Base Rent for the Initial Term shall be $1,400,000 per year, payable monthly in advance in the sum of $116,666.67, plus $79.20 per year, payable monthly in advance in the sum of $6.60 for each $1,000 of the Purchase Price (excepting
reductions made pursuant to Sections 6.4 and 6.5 of the Purchase Agreement which shall be credited as set forth below) in excess of $8,100,000, rounded up to the nearest $1,000. The final Base Rent amount will be determined and set forth in the Rent
Commencement Date Agreement as set forth in Section 3.5 of this Lease. Any Purchase Price reductions made in accordance with Sections 6.4 or 6.5 of the Purchase Agreement shall be applied to reduce Tenant’s first accruing Base Rent due
hereunder. For purposes of illustration, assuming a Purchase Price of $8,100,000, if the Tenant Entry Date (as defined in the Purchase Agreement) is delayed 30 days, Tenant’s first monthly Base Rent payment shall be $56,666.67 ($116,666.67
– [30 x $2,000]). 
 4.2 Partial Month Rent. If the Rent Commencement Date shall be other than the first day of a calendar
month, Base Rent shall be pro-rated for the period until the first day of the following month by taking the amount of monthly Base Rent divided by the number of days in the month and multiplying that amount times the number of days between the Rent
Commencement Date and the first day of the following month. 
 4.3 Terms of Payment. All Rent and other payments to be made by
Tenant to Landlord hereunder shall be made payable to Landlord in current legal tender of the United States of America and sent to Landlord at the place to which notice to Landlord is required to be sent hereunder unless Landlord shall direct
otherwise by notice to Tenant. Extensions, indulgences, or changes by Landlord upon any occasion in the mode or time of payment of Rent or any other payment to be made by Tenant to Landlord hereunder shall not be construed as any continuing waiver
or change, or as requiring or allowing in the future any similar change or indulgence. All Rent shall be payable as stated without notice or demand. 
 4.4 Additional Rent. All amounts other than Base Rent which Tenant is required to pay or discharge pursuant to this Lease including, but not limited to, charges for taxes, fees, including without
limitation the City of Weirton, West Virginia fire service fee, insurance, utilities, maintenance of the Premises and any penalties for late payment of Base Rent shall constitute Additional Rent. 

4.5 Rent. Rent shall mean Base Rent, Additional Rent and all other sums payable hereunder by Tenant. 

 ARTICLE V 
 Absolute Net Lease 
 It is the intent of Landlord and Tenant that the Rent to be
paid to Landlord by Tenant be absolutely net to Landlord so that this Lease shall yield net to Landlord without abatement, set-off or deduction therefrom the rent as hereinabove provided, to be paid during the Term of this Lease or any extensions
hereof, and, that all costs, expenses, assessments, fees and impositions of every kind or nature whatsoever relating to the Premises which may arise or become due during the Term of this Lease or any extensions hereof be paid by Tenant, and Landlord
be indemnified and saved harmless by Tenant from and against the same. Tenant hereby assumes and agrees to perform all duties and obligations with relation to the Premises, as well as the use, operation, and maintenance thereof even though such
duties and obligations would otherwise be construed to be those of the Landlord. Nothing herein contained, however, shall be deemed to require Tenant to pay or discharge any liens or mortgages of any character whatever which may be placed upon the
Premises by the affirmative act of Landlord or against Landlord’s interest in the Premises. 
 ARTICLE VI 

Use 
 The
Premises shall be occupied and used by Tenant for the sole purpose of conducting therein the business of warehousing, distributing and selling clothing, shoes, accessories, cosmetics, novelties, candy and other retail consumer goods. Tenant shall
use and occupy the Premises in accordance with all governmental laws, statutes, orders, ordinances, rules and regulations of any governmental authority with jurisdiction affecting the Premises from time to time, including, without limitation,
applicable zoning ordinances. Tenant agrees to comply with all deed restrictions applicable to the Premises, in particular, Tenant shall at all times comply with that certain Declaration of Covenants, Conditions and Restrictions for the Three
Springs Business Industrial Park, of record in the Office of the Clerk of the County Commission of Brooke County, West Virginia in Deed Book No. 276, at page 455, as amended from time to time (the “Declarations”). Tenant shall not
use, or allow the Premises to be used, for any purpose other than as specified herein and shall not use or permit the Premises to be used for any unlawful, disreputable or immoral purpose or in any way that will injure the reputation of the
Premises, detract from its value, or result in violation of any certificate of occupancy applicable to the Premises, or endanger the Premises or unnecessarily increase the applicable insurance premiums payable with respect thereto, or permit the
Premises to be occupied in whole or in part by any other person other than Tenant, its agents, servants, employees and invitees, except as otherwise provided herein. 
 ARTICLE VII 
 Subletting and Assignment 

7.1 Subletting and Assignment. Tenant shall not assign this Lease or sublet all or any part of the Premises without the prior written
consent of Landlord which consent shall not be unreasonably withheld. In the event of any assignment or subletting, Tenant shall nevertheless at all times remain fully responsible and liable for the payment of Rent and for compliance with all of its
other obligations under the terms, provisions and covenants of this Lease unless relieved therefrom by Landlord and Tenant’s assignee shall assume in writing and agree to keep and perform all of the terms of this Lease on the part of Tenant to
be kept and performed and shall be and become jointly and severally liable with Tenant for the keeping and performing thereof. In addition, Tenant shall have the right to transfer and assign this Lease without Landlord’s consent to any parent,
subsidiary or affiliated company of Tenant, with Tenant remaining fully responsible and liable for the performance of all the terms of this Lease, including without limitation the payment of Rent. For purposes of this Article, a leasehold mortgage
shall be deemed an assignment. Notwithstanding anything to the contrary in this Lease, Tenant shall have the right to sell or transfer its stock or assets or merge with another entity without Landlord’s consent. 

 7.2 Limits on Assignees. Notwithstanding anything to the contrary contained in this Lease,
Tenant shall not, without the prior written consent of Landlord (which Landlord may grant or withhold in its sole discretion and which consent, in each instance to be effective, must expressly state Landlord is aware that the subject assignee or
subtenant, as the case may be, is a tax-exempt entity) assign all or any part of its interest in this Lease or sublet all or any part of the Premises, or in any other manner grant any right to use, occupy or otherwise “lease” (within the
meaning of Internal Revenue Code of 1986, Section 168(h), as amended (“Section 168(h)”)) all or any part of the Premises, to any “tax-exempt entity,” as defined in Section 168(h), to the extent that the aggregate
portion of the Premises sublet, assigned, used, occupied or “leased” by all such tax-exempt entities shall be more than 35% of the Premises. Tenant agrees that any assignment of lease or subletting made in violation of the foregoing
sentence will be deemed initially void, and acknowledges that, notwithstanding such voiding, Landlord may incur damages as a result of such violations, and Tenant agrees to indemnify Landlord from any such damages. 

7.3 Assignment by Landlord. Landlord shall have the right to transfer all or any part of Landlord’s interest in the Lease and the
Premises without the consent or approval of Tenant, which transfer shall work an absolute release of Landlord’s liabilities and obligations hereunder arising after the date of such assignment; provided, however, that prior to any such transfer,
Landlord and Tenant shall amend Article XX of this Lease to cause any real property taxes assessed against the Premises and Tenant’s Building after such transfer to be paid by Landlord’s transferee. 

ARTICLE VII 

Quiet Enjoyment-Landlord’s Warranty 
 Landlord covenants and agrees with Tenant that so long as Tenant keeps and performs all of the covenants and conditions to be kept and performed by Tenant hereunder, Tenant shall have quiet, undisturbed
and continued possession of the Premises free from any claims by any persons claiming under, by or through Landlord. 
 ARTICLE
IX 
 Alterations 
 9.1 Tenant’s Alterations. Tenant shall have the right, at its sole cost and expense, either at the commencement of or during the Term of this Lease or any extension thereof to make such alterations
in and/or additions to the Premises, including without limiting the generality of the foregoing, alterations in the water, gas and electrical wiring systems as may be necessary to fit the same for Tenant’s business upon first delivering to
Landlord written plans and specifications for all such work and obtaining the written approval of Landlord, which approval shall not be unreasonably withheld, as to the materials to be used and the manner of making such alterations and/or additions.
Upon the termination of this Lease, Tenant shall not be required to remove any of the original Improvements still in existence or any subsequent alterations or improvements, or to restore the Premises to its original condition. At such time, such
Improvements and alterations permanently affixed (excluding Tenant’s Property as defined in Article X) as are not already the property of Landlord shall become the property of Landlord. Tenant shall have the right to make nonstructural
alterations to the Premises without Landlord’s consent, subject to the covenants and conditions set forth in Exhibit C, as the same may be amended, and to any rules or regulations adopted pursuant thereto. 

9.2 Method of Alterations. All alterations, additions and improvements made by Tenant shall be done in a good and workmanlike manner
without impairing the structural soundness of the Premises and without lessening the value thereof. All such work shall be performed in accordance with all applicable laws, ordinances, rules, and regulations and requirements of all governmental
authorities having jurisdiction over the Premises. Before commencing any work, Tenant shall obtain or cause to be obtained, workers’ compensation and employer’s liability insurance covering all persons employed in connection with the work
and with respect to whom death or bodily injury claims could be asserted against Landlord and/or Tenant, and general liability insurance insuring Landlord and Tenant against any liability that may be incurred as a result of any work done by Tenant
in, to or upon the Premises. A certificate of insurance or copy of said policy shall be delivered to Landlord upon written request. Tenant shall procure and pay for all permits, 

 
licenses and authorizations required in connection with any such alteration, addition or improvement, and Landlord agrees to cooperate with Tenant, at Tenant’s expense, in procuring such
permits, licenses and authorizations. 
 ARTICLE X 
 Tenant’s Property 
 10.1 Installation Removal. Tenant may, at its sole cost
and expense, install any trade fixtures, equipment, and other personal property of a temporary or permanent nature used in connection with its business on the Premises (“Tenant’s Property”), and Tenant shall have the right at any time
during the Term of this Lease or any extensions hereof or upon expiration or earlier termination of the Lease or any extensions hereof, provided Tenant is not in default of any of the terms of this Lease, beyond any applicable cure period, to remove
any and all such trade fixtures, equipment, and other personal property that it may have stored or installed upon the Premises; provided, however, that in the event of such removal, Tenant shall repair any damage caused by the removal of such trade
fixtures, equipment, and other personal property and restore the Premises substantially to the same condition, ordinary wear and tear excepted, in which they were at the time Tenant took possession. 

10.2 Required Removal. In case Tenant shall decide not to remove any part of its trade fixtures, equipment, or other personal property
upon expiration or earlier termination of this Lease, Tenant shall notify Landlord in writing not fewer than ninety (90) days prior to the expiration of the Term of this Lease or any extensions hereof, specifying those items of trade fixtures,
equipment, or other personal property that Tenant has decided not to remove. If, within thirty (30) days after service of such notice, Landlord shall request Tenant to remove any of said trade fixtures, equipment, or other personal property,
Tenant shall, at its own expense, at or before the expiration of the Term of this Lease or any extension hereof, remove said trade fixtures, equipment, and other personal property and, except for minor cosmetic damage by reason of such removal,
restore the Premises to good order and condition. Tenant will pay all costs and expenses incurred by Landlord in removing, sorting, or disposing of Tenant’s trade fixtures, equipment, and other personal property and repairing all damage to the
Premises caused by removal of Tenant’s trade fixtures, equipment, or other personal property which Tenant has failed to remove despite Landlord’s request therefor. Any of Tenant’s trade fixtures, equipment, and other personal property
not removed by Tenant upon the expiration or earlier termination of this Lease or any extensions hereof shall be considered abandoned by Tenant and may be appropriated, sold, destroyed, or otherwise disposed of by Landlord without liability or
obligation on Landlord’s part to pay or account for same. 
 10.3 Title at Termination. At the expiration or earlier
termination of this Lease or any extensions hereof, all remaining Improvements shall become and remain the property of Landlord, free and clear of any claim or interest of Tenant or anyone claiming thereunder. At the request of Landlord, Tenant
will, at such time, execute, acknowledge, and deliver to Landlord a bill of sale or other appropriate conveyance document evidencing the transfer to Landlord of all right, title and interest of Tenant in and to the remaining Improvements.

 ARTICLE XI 
 Lien or Encumbrance 
 11.1 No Liens. Tenant will pay or cause to be paid all
charges for all work done, including without limitation all labor and materials for all repairs, alterations, and additions, to or upon the Premises during the Term of this Lease or any extensions hereof and will not suffer or permit any
mechanic’s, materialman’s, or similar liens for labor or materials furnished to the Premises during the Term of this lease or any extensions hereof to be filed against the Premises; and if any such lien shall be filed for work contracted
directly by Tenant, Tenant will either pay the same or procure the discharge thereof by giving security or in such other manner as may be required or permitted by law within thirty (30) days after receipt of notice of such filing or within such
shorter time period as may be required by law. Tenant shall have the right, however, at its sole cost and expense, in its name or in the name of Landlord or in the name of both, to contest any such lien, provided the existence of such lien pending
such contest shall not jeopardize Landlord’s 

 
interest in the Premises. Tenant shall indemnify Landlord against, and save Landlord harmless from, any and all loss, damage, claims, liabilities, judgments, interest, costs, expenses, and
reasonable attorney’s fees arising out of the filing of any such lien. 
 11.2 No Consent to Work Lien or Encumbrance.
Nothing contained herein shall constitute any consent or request by Landlord, express or implied, to or for the performance of any labor or services or the furnishing of any materials or other property in respect of the Premises nor as giving Tenant
any right, power, or authority to contract for or permit the performance of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any claim against Landlord or the Premises in
respect thereto. Nothing in this Lease shall be construed as empowering Tenant to encumber or cause to be encumbered the title or interest of Landlord in the Premises in any manner whatsoever. 

ARTICLE XII 

Repairs and Maintenance 
 12.1 Duty to Repair. During the Term of the Lease, Tenant shall, at its sole cost and expense, keep the Premises and the adjoining sidewalks, curbs, and passageways, if required by governmental authority,
free from unlawful obstructions, and will keep the Premises in as good condition and repair as they were upon commencement of the Term of this Lease, normal wear and tear excepted, and will make all necessary repairs and perform commercially prudent
maintenance thereto, interior and exterior, structural and non-structural, ordinary and extraordinary, and foreseen and unforeseen, including but not limited to, maintenance, and repair of, roofing, siding, the plumbing, electrical wiring, air
conditioning and heating equipment, maintenance of the parking area, painting of the walls of the Improvements, and repair of all glass and casualty damage. Tenant shall, prior to making any repair of a structural nature, deliver to Landlord written
plans and specifications for all such work and obtaining the written approval of Landlord as to the materials to be used and the manner of making such repairs. Landlord shall not unreasonably withhold or delay its approval of said repairs proposed
to be made by Tenant. All repairs shall conform to the Declarations. 
 12.2 Definition and Standard of Repair. The term
“repairs” shall include all necessary replacements, renewals, alterations, additions, and betterments. The necessity for and adequacy of repairs to the Improvements shall be measured by the standard which is appropriate for buildings of
similar construction and class, provided that Tenant shall in any event make all repairs necessary to avoid any structural damage or injury to any of the Improvements. All repairs made by Tenant shall be equal in quality and class to the original
work, shall meet the same requirements as are set out in paragraph 9.2 of this Lease to the extent necessary and shall be made in a good and workmanlike manner and in compliance with all applicable permits and authorizations and building and zoning
laws and with all other laws, rules, regulations, and ordinances governing such work. Tenant will perform all necessary shoring of foundations and walls of any of the Improvements and every other act or thing for the safety and preservation thereof
which may be necessary by reason of any excavation or other building operation by Tenant upon any adjoining property or street, alley or passageway. Tenant will not commit any waste of the Premises. 

12.3 No Obligation to Repair. Landlord shall not under any circumstances be required to furnish any services or facilities or to make any
repairs, replacements or alterations of any nature or description in or to the Premises whether ordinary or extraordinary, structural or non-structural, foreseen or unforeseen, or to make any expenditure whatsoever in connection with this Lease or
to maintain the Premises in any way. Tenant hereby waives the right to make repairs at the expense of Landlord pursuant to any law in effect at the time of the execution of this Lease or thereafter enacted, and assumes the full and sole
responsibility for the condition, operation, repair, replacement, maintenance, and management of the Premises. Landlord covenants to cooperate with Tenant in processing claims with respect to matters covered by any insurance. 

 ARTICLE XIII 
 Requirements of Law 
 After Landlord has substantially completed the Improvements,
and Tenant has occupied same without objection, Tenant shall, at its expense, comply with, or cause to be complied with, all insurance requirements, and all laws, statutes, ordinances and regulations of federal, state, county and, municipal
authorities including, but not limited to, the Americans with Disabilities Act (collectively, “Laws”) which shall impose any duty with respect to the physical condition of the Premises including, but not limited to, a duty to construct
additional improvements or modify the Improvements or with respect to the conduct of Tenant’s business therein. Tenant shall have the right at Tenant’s own expense, to object to and appeal from any administrative or judicial decision
requiring compliance and Landlord shall cooperate at Tenant’s expense with any such appeal and/or objection by Tenant. In the event compliance shall require improvements or alterations to the Premises, then, Tenant shall, at Tenant’s sole
expense, construct such improvements in accordance with the provisions for Tenant’s alterations contained in Article IX of this Lease. 
 ARTICLE XIV 
 Damage or Destruction 

14.1 Tenant’s Obligation to Rebuild. In the event of damage to or destruction of the Improvements during the Term of this Lease by
fire, the elements, or other casualty for which the insurance carried pursuant to Article XV of this Lease entitled “Insurance” is payable, said insurance proceeds shall be paid into an escrow account with Landlord’s first mortgage
lender or a bank selected by Landlord and agreed to by Tenant. The insurance proceeds shall be used by Tenant for the prompt reconstruction or repair, as the case may be, of the Improvements. Tenant shall rebuild or repair the same in such manner
that the Improvements as so rebuilt or repaired shall be of the same condition as they were prior to such damage or destruction, and shall have same rebuilt or repaired and ready for occupancy within twelve (12) months from the time the
insurance proceeds come available, subject to Force Majeure. If the insurance proceeds exceed the cost of repair or restoration, Tenant shall receive said excess upon completion of such repair or restoration. 

14.2 Approval of Plans and Specifications. In the event of a loss hereunder, Tenant shall submit to Landlord the plans and specification
for reconstruction or repair for Landlord’s approval. Landlord shall have a fifteen (15) day period within which to review and approve or disapprove the plans and specifications. 

14.3 Payment from Escrow. Amounts shall be paid out from said escrow account established pursuant to Section 14.1 from time to time
upon the certification of Tenant’s architect that said amount is being applied to the payment of the reconstruction or repair at a reasonable cost therefor and that the disbursement then requested, plus all previous disbursements and the amount
of any applicable “deductible” do not exceed the cost of the repair or restoration already completed and paid for, and that the balance in said escrow account is sufficient to pay for the estimated cost of completing the repair or
restoration. If the insurance proceeds shall be less than the cost of repair or restoration, Tenant shall pay the excess cost. 

14.4 Failure to Reconstruct; Termination. In case of Tenant’s failure to enter into the reconstruction or repair of the Improvements
within six (6) months from the date of payment of such insurance proceeds, subject to force majeure, and to prosecute said reconstruction or repair with such dispatch as may be necessary to complete the same within twelve
(12) months after payment of such insurance proceeds, then the amount so collected, or the balance thereof remaining in the escrow account, shall be paid to Landlord and Landlord may terminate the Lease and retain such amounts as liquidated
damages resulting from Tenant’s failure hereunder. Tenant shall have the right to terminate the Term if less than two (2) years remain in the Term at the time of any such casualty, and in such event Tenant shall have no obligation to
rebuild the Improvements, Landlord shall have the sole and exclusive right to adjust the loss with the insurance carriers and all insurance proceeds shall be paid to and retained by Landlord. 

14.5 Force Majeure. “Force majeure” shall mean events beyond the control of the parties, including, without limitation, fire,
flood, tornado, or earthquake, war, riot, insurrection, strike, lockout, 

 
boycott or embargo, acts of God, unavoidable casualties, labor disputes, and unusual delays in transportation, unavailability of materials, adverse weather conditions not reasonably
anticipatable. Any party who asserts the occurrence of force majeure shall give written notice as soon as reasonably practicable after the commencement of a delay caused by an event of force majeure, and any party making claim therefor shall give a
supplemental notice of the period of time such delay caused by an event of force majeure is expected to last. However, force majeure with respect to the Expansion Building Delivery Date and Substantial Completion of the Expansion Building as they
affect paragraphs 3.4 and 4.6 of this Lease shall be defined to only include flood, fire, tornado, insurrection, earthquake or war. 
 14.6 No Abatement of Rent. Notwithstanding any contrary law, Rent shall not be suspended or abated as a result of such damage or destruction, and restoration or rebuilding. 

14.7 Default in Payment of Rent. If, at any time after such insurance proceeds come into possession of Tenant or are placed in escrow
pursuant to this Article after destruction or damage by casualty, Tenant is in default beyond any applicable cure period of any Rent or other charges payable under this Lease, then Landlord shall be entitled to so much of said proceeds as may be
necessary to pay and discharge any such Rent or other charges of which Tenant is in default, whenever and as often as any such default shall occur. Tenant shall forthwith reimburse such escrow account by depositing therein any amount so paid out on
account of Tenant’s default. Nothing herein contained, however, shall be construed as permitting Tenant to default in the payment of Rent or other charges herein stipulated to be paid or in the performance of any other covenants of this Lease,
and Landlord may, at its option, proceed against Tenant for the collection of such Rent or other charges in default and recover and take possession of the Premises in accordance with the provisions of this Lease without prejudice to Landlord’s
right to the benefit of such insurance money as security for Tenant’s performance under the terms of this Lease. 
 14.8
Landlord’s Mortgage. All provisions herein contained relative to the disposition of payments from insurance companies are subject to the requirement that, if any mortgagee who holds a mortgage on the Premises elects, in accordance with the
terms of such mortgage, to require such insurance proceeds be paid to the mortgagee on account of the mortgage, then such payment shall be made, but in such event, Landlord must create the complete fund in the manner set forth in this Article to
assure and complete the payment for the work of reconstruction or repair. 
 ARTICLE XV 

Insurance 
 15.1
Tenant’s Property Insurance. Tenant shall, throughout the Term of this Lease, at Tenant’s sole cost and expense, provide and keep in force for the benefit of Landlord and Tenant, insurance against loss or destruction of or damage or injury
to any Improvements now or hereafter erected on the Premises resulting from fire or from any hazard included in the so-called extended coverage endorsement (including plate glass insurance, increased cost of construction endorsement, sprinkler
leakage, collapse and vandalism and malicious mischief, also known as “All Risks of Physical Loss Coverage”). In addition to the foregoing, Tenant shall, at Tenant’s sole cost and expense, provide and keep in force for the benefit of
Landlord and Tenant, throughout the Term of this Lease, flood insurance, only if the Premises are located within the “Federal Flood Plain Area” of the United States, as well as insurance against loss or damage or injury or destruction of
any Improvements now or hereafter erected on the Premises resulting from water or earthquake damage. Tenant shall provide and keep in full force all such insurance in an amount sufficient to prevent Landlord or Tenant from becoming a co-insurer
under the terms of the applicable policy, but in no event less than the full replacement cost of the Improvements, including the fixtures and equipment appurtenant thereto and used in connection with the Premises. Such replacement cost shall be
determined annually by a method required by the insurer(s). The deductible under each of said policies shall be an amount not greater than Fifty Thousand Dollars ($50,000.00). Such insurance policies to be provided for and kept in force by Tenant
shall provide that the loss, if any, be payable to Landlord and Tenant, as their-respective interests may appear, except as herein provided, and such insurance policies may exclude foundations, excavation and the usual items customarily excluded in
such insurance policies, and that the proceeds thereof shall be used to repair or replace the damage sustained by the casualty. Landlord may require mat the interest of any mortgagee under a fee mortgage covering the Premises, be protected by proper

 
endorsements to any such policies of insurance, and that duplicate originals of such policies of insurance be delivered to such mortgagee. 

15.2 Boiler Insurance. If necessary, Tenant shall also provide and maintain insurance, at Tenant’s cost and expense throughout the
Term of this Lease, for loss or damage by explosion of steam boilers, pressure vessels, air conditioning systems or similar apparatus to be now or hereafter installed on the Premises, to the extent applicable. Said insurance shall be on a Boiler and
Machinery Broad Form Policy on a repair and replacement basis, with Use and Occupancy coverage for at least one hundred twenty (120) days. 
 15.3 Public Liability Insurance. During the Term, at Tenant’s sole cost and expense, Tenant shall maintain in full force and effect broad form commercial or comprehensive general liability insurance,
including blanket contractual liability coverage specifically endorsed to provide coverage for the obligations assumed by Tenant pursuant to the Lease against claims and liability for personal injury, bodily injury, death or property damage
occurring on, in or about the Premises, with limits of liability of not less than Three Million Dollars ($3,000,000.00) arising out of any one occurrence or annual aggregate. Tenant shall cause such insurance policy or policies to name Landlord,
and/or any successor Landlord and Landlord’s mortgagee as additional insureds, as their interests may appear. 
 15.4
Workers’ Compensation. Employer’s Liability Insurance. Tenant shall also provide and maintain, at Tenant’s sole cost and expense throughout the Term of this Lease, workers’ compensation insurance with statutory limits of
liability and employer’s liability insurance with limits of liability of not less than Five Hundred Thousand Dollars ($500,000.00) in respect of any work or other operations done or performed on or about the Premises. 

15.5 Insurance on Tenant’s Property. It is understood and agreed that Tenant may self-insure with respect to any damage to or
destruction of Tenant’s Property. 
 15.6 No Separate Insurance. Tenant shall not take out separate insurance concurrent in
form or contributing in the event of loss with that required herein to be furnished by Tenant unless Landlord is included therein as an additional insured, and as loss payee with loss payable as set out herein. Tenant shall immediately notify
Landlord whenever any such separate insurance is taken out and shall deliver the policy or policies or duplicates thereof, or certificates evidencing the same, as provided herein. 

15.7 Conduct of Business. Tenant shall comply with all requirements of said insurance policies and shall not conduct or allow to be
conducted business or other activities or fail to maintain or take other actions with regard to the Premises in such a manner as will result in a decrease in the recovery thereunder. Any insurance proceeds payable by reason of any insured loss
pursuant to this Article XV shall, subject to the rights of the holders of any mortgagee upon the Premises, be used exclusively for the purpose of restoring and rebuilding the Premises. Subject to the foregoing, Tenant shall have the sole right to
adjust with the insurance carriers the amount of the loss upon any such policies, and Landlord shall, at Tenant’s cost and expense, cooperate fully with Tenant in order to obtain the largest possible insurance recovery and shall execute any and
all consents and other instruments and take all other actions necessary or desirable in order to effectuate the same and to cause such proceeds to be paid; provided, however, that in the event of a termination pursuant to the provisions of this
Lease, Landlord shall have the right to adjust the amount of the loss with the insurance carriers. 
 15.9 Requirements of
Policies. 
 (a) All policies required to be carried pursuant to this Article XV: 

(i) shall be written and signed by solvent and responsible insurance companies authorized to do business in the
jurisdiction wherein the Premises are located, with a rating, reasonably acceptable to and approved by Landlord and its Mortgagee. 

 (ii) shall contain an agreement by the insurer that such policy or policies
shall not be canceled or non-renewed without at least thirty (30) days prior written notice to Landlord and Tenant; 
 (iii) may be carried under so-called blanket policies, provided that the protection afforded thereunder as to the Premises shall be not less than that which would have been afforded under separate policy
or policies relating only to the Premises and provided, however, any such policy of blanket insurance shall specify therein, or Tenant shall furnish Landlord a written statement from the insurer under such policy so specifying, the amount of the
total insurance allocated to the Premises, which account shall be not less than the amount required herein and any such policy shall comply in all respects with the requirements set out in this Article. 

(iv) may be carried under a combination of primary insurance and umbrella coverage; and; 

(v) shall be primary insurance by the party obligated under Article XV, which will not call upon any other insurance
effected or procured by the other party for defense, contribution or payment. 
 (b) Tenant retains full responsibility for
payment of all deductibles under each policy provided for hereunder. 
 (c) Annually, Tenant will promptly furnish certificates
evidencing that the insurance required pursuant to this Article XV is in full force and effect. If the certificates of insurance do not provide for fifteen (15) days prior written notice of cancellation or non-renewal to Landlord and
Landlord’s mortgagee, Tenant shall no later than five (5) days prior to termination by cancellation or non-renewal provide to Landlord and its mortgagee paid receipts evidencing continuation or renewal of insurance. 

(d) If Tenant shall fail or refuse to effect or maintain any of said insurance, Landlord may, but shall have no obligation to do so,
effect or maintain said insurance and the amount of money so paid, with interest at the Prime Rate, shall be payable by Tenant to Landlord as Additional Rent immediately due and payable hereunder. 

15.10 Release, Waiver of Subrogation. Tenant hereby releases Landlord and Landlord’s respective officers, directors, employees and
agents, from liability or responsibility for any loss or damage in, about, or to the Premises (including, without limitation, loss or damage to Tenant’s personal property, or Tenant’s business, loss arising from any act or neglect of
co-tenants or other occupants of the Premises) and this release shall apply notwithstanding the fault or negligence of Landlord or anyone for whom Landlord may be responsible. The aforesaid policies shall contain an endorsement recognizing this
release and waiving all rights of subrogation by the respective property and liability insurance carriers. 
 ARTICLE XVI

 Indemnification of Landlord 
 Unless caused by the acts, omissions or negligence of Landlord, its agents, servants or employees, Tenant will defend, indemnify, and hold harmless Landlord from and against any and all liabilities,
claims, losses, damages, actions, judgments, costs, and expenses (including without limitation reasonable attorney’s fees and expenses) of every kind imposed upon or asserted against Landlord or Landlord’s title in the Premises arising by
reason of or in connection with (a) Tenant’s default under this Lease and the ownership by Tenant of the interest created in this Lease or Tenant’s possession, use, occupancy, or control of the Premises; (b) any accident, injury
to or death of persons, or loss of or damage to property occurring on or about the Premises or adjoining public passageways; (c) the possession, operation, use, misuse, maintenance, or repair of the Premises; (d) any damage to the
environment and any property and persons injured thereby; or (e) any failure on the part of Tenant to perform or comply with any of the terms of this Lease. If Tenant fails to defend any action seeking to impose any such liability, Tenant will
pay Landlord all reasonable costs, 

 
expenses, and attorney’s fees incurred by Landlord in effecting such defense, in addition to any other sums which Landlord may be called upon to pay by reason of the entry of a judgment
against Landlord in the litigation in which such claim is asserted. Landlord shall not be responsible for the loss of or damage to property or injury to or death of persons occurring in or about the Premises by reason of any existing or future
condition, defect, matter, or thing in the Premises, or the property of which the Premises are a part, or for the acts, omissions, or negligence of other persons or tenants in and about the Premises; and Tenant agrees to defend, indemnify, and hold
Landlord harmless from and against all claims and liability for same except such as are determined to have been caused by the acts, omissions or negligence of Landlord, its agents, servants or employees. Wherever Tenant has a duty hereunder to
defend, indemnify and hold Landlord harmless, Landlord shall (a) give Tenant prompt notice of such claim, (b) grant Tenant sole authority to settle or defend such claim and (c) cooperate with Tenant in any reasonable manner in the
defense of such claim. 
 ARTICLE XVII 
 Condemnation 
 17.1 Authority. If eminent domain proceedings are instituted by any
entity having powers of eminent domain, Landlord shall have the exclusive right and authority to act in said proceedings, although Tenant may participate in such proceedings at its expense if it so desires. 

17.2 Taking. Subject to the rights of Tenant hereinafter set forth, Tenant hereby irrevocably assigns to Landlord any award or payment to
which Tenant may become entitled by reason of any taking of the Premises, or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any law or by reason of the temporary requisition of the use or occupancy of the
Premises or any part thereof by any governmental authority, whether same shall be paid or payable in respect of Tenant’s leasehold interest hereunder or otherwise, but nothing in this Lease shall impair Tenant’s right to any award or
payment on account of Tenant’s trade fixtures, equipment, and other tangible property, moving expenses, loss of business, and the like, if available, to the extent Tenant shall have a right to a separate claim therefor against the appropriate
governmental authority, but in no event, shall any separate claim be based upon the value of Tenant’s leasehold interest. To the extent of such right, Tenant shall not be deemed to have assigned the same to Landlord, and Tenant shall be
entitled to participate in any such proceedings described in this section at Tenant’s sole expense. 
 17.3 Termination. If
all or substantially all of the Premises shall be taken in or by such proceedings, or if Landlord shall convey all or substantially all of the Premises under the threat of the exercise of the power of eminent domain, and if Tenant determines in good
faith and exercising reasonable judgment that the remaining portion of Premises is no longer suitable to operate thereon the business then being operated, Tenant shall, within sixty (60) days after receipt of notice of any such taking, give
written notice to Landlord of its intention to terminate this Lease as of the day preceding the date of the vesting of title to the Premises or portion thereof in the condemning authority, and all Rent and other amounts payable by Tenant hereunder
shall be apportioned as of the date of such vesting. 
 17.4 Restoration. If less than all or less than substantially all of the
Premises shall be taken by condemnation or other eminent domain proceedings, or if the use or occupancy of the Premises or any part thereof shall be temporarily requisitioned by any governmental authority, civil or military, then this Lease shall
continue in full force and effect with an equitable abatement or reduction of Rent or other amounts payable by Tenant hereunder, in light of such taking or requisition. In the event of any such lesser taking, Landlord shall promptly make payment to
Tenant out of the award, payment, or compensation received by Landlord, and Tenant shall use said funds, in the same manner as insurance proceeds are used to repair casualty damage hereunder, to promptly repair any damage caused by any such taking
or requisition such that, after completion of such repair, the Premises shall be as nearly as possible in a condition as good as the condition thereof immediately prior to such taking or requisition, ordinary wear and tear excepted, provided that
Tenant shall not be obligated to expend an amount therefor in excess of the proceeds received by Tenant from Landlord. Any proceeds remaining hereunder shall be retained by Landlord. 

 ARTICLE VIII 
 Warranties and 
 Representations 

18.1 Landlord Warranties. Landlord hereby represents and warrants to Tenant as follows: 

(a) Landlord is a West Virginia public corporation which is duly organized and is in good standing under the laws of the State of West
Virginia. Landlord has full power and authority to enter into, deliver and perform this Lease and to consummate the transactions contemplated hereby, and this Lease and all documents to be delivered to Tenant pursuant to this Lease are, or at the
time of delivery will be, duly executed and delivered by Landlord and duly authorized by all necessary corporate action, and are the legal, valid and binding obligations of Landlord, enforceable in accordance with their respective terms. 

(b) The execution of this Lease and all documents to be delivered by Landlord to Tenant in connection herewith, and the consummation of
the transactions contemplated hereunder will not violate or conflict with or constitute a breach of or default under any provisions of the Bylaws of Landlord, any other material agreement to which the Landlord is a party, or any law concerning the
Premises. 
 (c) Landlord is not aware of any pending or threatened litigation, legal proceeding, arbitration, assessment,
governmental investigation or other proceeding against Landlord which would materially affect its ability to perform its obligations pursuant to the terms of this Lease. 
 (d) Developer has obtained a Phase I environmental site assessment for the Premises performed by CEC Engineering, Inc. dated as of June 2011 (the “Phase I Report”), and which shall be updated as
of the Expansion Building Delivery Date, a copy of which will be provided to Tenant. No condition in this Phase I Report shall render the Improvements unfit for the use by the Tenant contemplated in Article VI above. If Tenant does not object to the
environmental condition of the Premises or request additional environmental testing in writing within ten (10) days after delivery of this Phase I Report, as updated, Tenant shall be deemed to have approved the environmental condition of the
Premises. 
 (e) Landlord shall cause all reasonable measures to be taken to contain, remove or remediate any discharge of
Regulated Substances at Tenant’s Building or on the Premises in compliance with all applicable environmental laws, so long as such discharge was not caused by Tenant or its directors, officers, employees, contractors, subcontractors, agents,
invitees or other representatives. 
 (f) As of the Rent Commencement Date, Landlord shall own fee simple title to the Premises,
and the Premises shall not be subject to any lien, deed of trust, mortgage, purchase option, right of first refusal or other similar encumbering instrument which has the potential to extinguish Tenant’s leasehold interest under this Lease,
except to the extent of the Declarations. Landlord shall put Tenant in complete and exclusive possession of the Premises as of the Rent Commencement Date. 
 (g) Tenant shall be the third-party beneficiary or Landlord’s assignee of any and all warranties received from the Developer for the materials and equipment used in the construction of the
Improvements to the extent provided by the Purchase Agreement. In particular, the roof for the Expansion Building shall have a twenty (20) year limited warranty from the manufacturer as assigned by Developer. 

(i) Pursuant to the terms of the Purchase Agreement, Landlord has required Developer not to create any liens or encumbrances whatsoever
upon the Premises or the Improvements without the prior written consent of the Landlord, except for a leasehold deed of trust lien or security agreement granted by Developer solely to finance construction of the Improvements in an amount that shall
not exceed the fair market value of the Improvements, as completed. As of the Rent Commencement Date, Landlord shall provide the Improvements and the Premises to Tenant free from all mechanic’s, laborer’s and materialman’s liens, or
with any remaining liens properly bonded pursuant to West Virginia law. 
 (j) At its own risk and expense, Tenant shall have
the right to cause its contractors to enter upon the Expansion Premises as of the Expansion Building Delivery Date to install the trade fixtures of the Tenant 

 
in the Improvements, and as of the Expansion Building Delivery Date, the Tenant’s contractors shall have all reasonable rights of access to the Improvements necessary to perform the
installation work for these trade fixtures; provided, however, that the installation of these trade fixtures by Tenant’s contractors shall not unreasonably interfere with the completion of the construction of the Expansion Building on the
Premises and the surfacing of the parking areas for the Improvements by Developer. Prior to the Expansion Building Delivery Date, Tenant shall provide Landlord with written evidence that Landlord and Developer are named as additional insureds on
liability insurance to be maintained by Tenant at its own expense with such coverages, limits of liability, term and carriers as are provided in Article XV above. In addition, Tenant shall provide satisfactory evidence to the Landlord that
Tenant’s contractors have registered with the West Virginia Workers’ Compensation Fund and have provided all workers’ compensation coverage as required by West Virginia law. 

(k) On the Expansion Building Delivery Date, the Premises shall be connected to the electric and gas utilities serving the municipality
in which the Premises are located, and to the water and sewer systems of such municipality. Landlord shall not take or permit any person claiming under Landlord to take any action which shall interrupt or interfere with any electric, gas, water or
sewage service to the Premises. 
 18.2 Tenant Warranties. Tenant hereby represents and warrants to Landlord as follows:

 (a) Tenant is a Delaware corporation which has duly qualified to conduct business in and is in good standing under the laws
of the State of West Virginia. Tenant has full power and authority to enter into, deliver and perform this Lease and to consummate the transactions contemplated hereby, and this Lease and all documents to be delivered to Landlord pursuant to this
Lease are, or at the time of delivery will be, duly executed and delivered by Tenant and duly authorized by all necessary corporate action, and are the legal, valid and binding obligations of Tenant, enforceable in accordance with their respective
terms. 
 (b) The execution of this Lease and all documents to be delivered by Tenant to Landlord in connection herewith, and
the consummation of the transactions contemplated hereunder will not violate or conflict with or constitute a breach of or default under any provisions of the Articles of Incorporation or the Bylaws of Tenant, any other material agreement to which
the Tenant is a party, or any law concerning the Premises. 
 (c) Tenant is not aware of any pending or threatened litigation,
legal proceeding, arbitration, assessment, governmental investigation or other proceeding against Tenant which would materially affect its ability to perform its obligations pursuant to the terms of this Lease. 

(d) Tenant shall pay all fees, charges or assessments for all utilities to the Premises and the Improvements for utility services
consumed from the Rent Commencement Date until expiration of the Term of this Lease or any holding over thereafter, and shall indemnify, defend and hold Landlord harmless from any and all such charges. 

(e) Tenant shall operate the Improvements and occupy the Premises in compliance with the Declarations. 

ARTICLE XIX 

Default 
 19.1
Events of Default. Each of the following shall be deemed a default by Tenant: 
 (a) Tenant’s failure to pay Rent when such
becomes due as provided in Articles IV and V and/or any other charges or payments herein reserved, included or agreed to be treated or collected as Rent and/or any other charge, expense or cost herein agreed to be paid by Tenant, provided that
Landlord shall have first given Tenant ten (10) days’ prior written notice and opportunity to cure the same, with no cure having been made within such ten (10) day period; or 

 (b) Tenant’s failure to perform its following obligations and responsibilities under
this Lease: (1) the failure of Tenant to pay all costs, expenses, assessments, fees and impositions of every kind relating to the Premises during the Term of this Lease and to indemnify Landlord therefrom as provided in Article V; (2) the
failure of Tenant to perform all duties and obligations with regard to the Premises as well as the use, operation and maintenance thereof as provided under Article V; (3) the use of the Premises for anything other than a warehousing and
distribution facility for clothing, footwear, accessories, cosmetics, novelties, candy and other retail and consumer goods, including their sale at the Premises, as provided in Article VI; (4) the failure of Tenant to comply with the
Declarations or to otherwise utilize the Premises for any unlawful, disreputable purpose, or to endanger the Premises or allow the Premises to be occupied by any person other than Tenant in violation of Article VI; (5) the subletting or
assignment of this Lease in violation of Article VII; (6) the failure of Tenant to abide by Article IX in making alterations, additions and improvements to the Premises; (7) the failure of Tenant to install and remove trade fixtures,
equipment and other personal property at the Premises in compliance with Article X; (8) the failure of Tenant to keep the Premises free from any liens and encumbrances as required by Article XI; (9) the failure of Tenant to repair and
maintain the Premises as required by Article XII; (10) the failure of Tenant to comply with all insurance requirements, laws, statutes, ordinances and regulations as required by Article XIII; (11) the failure of Tenant to repair,
reconstruct and restore the Premises as required by Article XIV; (12) the failure of Tenant to maintain insurance coverage in the manner provided in Article XV; (13) the failure of Tenant to indemnify the Landlord as provided under Article
XVI; (14) the failure of Tenant to abide by the condemnation procedure set forth in Article XVII; (15) the failure of Tenant to comply with the signage requirements of Article XX; (16) the failure of the Tenant to subordinate its
interest in this Lease and to attorn to any successor to the Landlord as provided in Article XXV; (17) the failure of Tenant to grant Landlord access to the Premises as provided in Article XXVI; (18) the failure of Tenant to comply with
its environmental obligations as provided in Article XXVII; (19) the failure of Tenant to provide estoppel certificates to the Landlord as provided in Article XXIX; (20) the failure of Tenant to provide balance sheets or financial
statements and employment reports to Landlord as required by Article XXX; and any such default shall continue for thirty (30) days after written notice from Landlord, or within a reasonable time thereafter if the default is of such a nature
that it cannot be cured within such thirty (30) day period, and Tenant does not thereafter complete the same in good faith and with reasonable diligence, any other terms, conditions or covenants of this Lease to be observed by Tenant; or

 (c) The adjudication of Tenant as a bankrupt or insolvent; or the making by Tenant of a general assignment for the benefit of
creditors; or the appointment of a receiver in equity for Tenant’s Property, provided such appointment is not released, bonded according to law or otherwise provided for by indemnity within sixty (60) days after written notice thereof
first given to Tenant, within a reasonable time after the occurrence thereof; or the appointment of a trustee, custodian or receiver for Tenant’s Property in a reorganization, arrangement or other bankruptcy proceeding; or Tenant’s filing
of a voluntary or involuntary petition in bankruptcy or for a bankruptcy organization, liquidation or arrangement; or Tenant’s filing of an answer admitting bankruptcy or agreeing to a bankruptcy reorganization, liquidation or arrangement.

 19.2 Landlord’s Rights Upon Tenant’s Default. In the event of any default set forth in paragraph 19.1, Landlord, in
addition to any other rights or remedies it may have at law or in equity, may do any one or more of the following: 
 (a) elect
to terminate this Lease; or 
 (b) perform, on behalf and at the expense of Tenant (entering upon the Premises for such purpose,
if necessary), any obligation of Tenant under this Lease which Tenant has failed to perform and of which Landlord shall have given Tenant notice, the cost of which performance or liability by Landlord shall be deemed Additional Rent or incurred for
the account of Tenant and Tenant shall reimburse Landlord therefor or save Landlord harmless therefrom upon demand provided, however, that Landlord may not cure any such default described in this subparagraph prior to the expiration of the waiting
period established in paragraph 18.1, but only after notice to Tenant if the curing of such default prior to the expiration of said waiting period is reasonably necessary to protect the Premises or Landlord’s interest in the Premises, or to
prevent injury or damage to persons or property. If Tenant shall fail to reimburse Landlord upon demand for any 

 
amount paid for the account of Tenant hereunder, said amount shall be added to and become due as a part of the next payment of Rent due hereunder. Notwithstanding anything to the contrary
contained herein, in the case of emergency, notice required pursuant to this paragraph 19 may be given verbally or in any other reasonably due and sufficient manner having regard to the emergency and the attending circumstances. If any such notice
shall not be given in the manner described in Article XXIII of this lease entitled “Notice,” then as soon thereafter as practicable, such notice shall be followed up by notice given in the manner prescribed in said Article. No entry by
Landlord, in accordance with the provisions of this Article, shall be deemed to be an eviction of Tenant. Landlord’s performance of any such covenant shall neither subject Landlord to liability for any loss, inconvenience or damage to Tenant
nor be construed as a waiver of Tenant’s default or of any other right or remedy of Landlord in respect of such default, or as a waiver of any covenant, term or condition of this Lease; or 

(c) Immediately, using such force as may be reasonably necessary, re-enter upon the Premises, remove all persons and property therefrom,
and store such property in a public warehouse or elsewhere at the sole cost and for the account of Tenant, with reasonable notice but without resort to legal process, without being deemed guilty of trespass or becoming liable for any loss or damage
which may be occasioned thereby (except for any loss or damage resulting from or caused by the gross negligence or criminal act of Landlord or its employees, agents or contractors), and without such re-entry being deemed to terminate this Lease.

 19.3 Re-letting. In the event Landlord re-enters upon the Premises as provided in clause (c) of the foregoing paragraph
19.2, or takes possession of the Premises pursuant to legal proceedings or pursuant to any notice provided for by law, Landlord may in addition to all other rights and remedies provided at law or in equity: 

(a) Landlord may terminate this Lease and forthwith repossess the Premises and remove all persons or property therefrom and be entitled
to recover from Tenant, as damages, the sum of money equal to the total of (i) the reasonable cost of recovering the Premises, (ii) the accrued and unpaid rentals owed at the time of termination plus interest thereon from such due date at
Prime Rate, as hereinafter defined, plus 2%, (iii) the difference, if any, between the discounted net present value (at 8% discount rate) of the balance of the fixed annual minimum Base Rent for the remainder of the Term on the date of the
default and the fair market value of the Lease on the date of the default (which remedy is hereby acknowledged to be a fair estimation of Landlord’s damages and not an unenforceable penalty), and (iv) any other sum of money and damages
owed by Tenant to Landlord, without Landlord being obligated to wait until the expiration of the Term of this Lease; or 
 (b)
Landlord may terminate Tenant’s right of possession (but not this Lease) and may repossess the Premises without demand or notice of any kind to Tenant and without terminating this Lease in which event Landlord may, but shall be under no
obligation to do so, relet the same for the account of Tenant for such rent and upon such terms as shall be satisfactory to Landlord. For the purpose of such reletting, Landlord is authorized to make repairs, changes, alterations or additions to the
Premises to make same relettable, and (i) if Landlord shall be unable to relet the Premises, or (ii) if the same are relet and sufficient sums shall not be realized from such reletting (after paying: (a) the unpaid rentals due under
the Lease earned, but unpaid at the time of reletting plus interest thereon at the lesser of the Prime Rate or the maximum rate permitted by applicable law, (b) the cost of recovering possession, including Landlord’s reasonable
attorney’s fees, (c) all of the costs and expenses of reletting including decorations, repairs, changes, alterations and additions by Landlord, and (d) the expense of the collection of the Rent accruing therefrom) to satisfy the Rent
and all other charges provided for in this Lease to be paid by Tenant then Tenant shall pay to Landlord, as damages, the sum equal to the amount of the Rent and other expenses payable by Tenant for such period or periods, or if the Premises have
been relet, Tenant shall satisfy and pay any such deficiency upon demand therefor from time to time and Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this Article from time to time upon one or more
occasions without Landlord being obligated to wait until expiration of the Term of this Lease. Such reletting shall not be construed as an election on the part of Landlord to terminate this Lease unless a written notice of such intention be given to
Tenant by Landlord. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach if it has not been cured. Failure of Landlord to declare any default immediately
upon occurrence 

 
thereof or delay in taking any action in connection therewith shall not waive such default but Landlord shall have the right to declare any such default at any time thereafter. 

(c) In case of re entry, repossession or termination of this Lease, whether the same is the result of the institution of summary or other
proceedings or not, Tenant shall remain liable (in addition to accrued liabilities) to the extent legally permissible for: (i) (x) the Base Rent, and all other charges provided for herein until the date this Lease would have expired had
such termination, re entry or repossession not occurred; and (y) reasonable expenses to which Landlord may be put in re entering the Premises, repossessing the same, reletting the same (including attorney’s fees and disbursements,
marshal’s fees and broker’s fees, in so doing), and any expenses which Landlord may incur during the occupancy of any new tenant; minus (ii) the net proceeds of any re-letting. Tenant agrees to pay to Landlord the difference between
items (i) and (ii) hereinabove with respect to each month, at the end of such month. 
 (d) As used herein Prime Rate
shall mean the base rate on corporate loans at large U.S. money centers or commercial banks as published from time to time by the Wall Street Journal adjusted with each change in each published rate. 

19.4 Damages Upon Termination. In the event that Landlord at any time terminates this Lease for any default by Tenant, in addition to any
other remedies Landlord may have, Landlord may recover from Tenant (i) all damages Landlord may incur by reason of such default, including, without limitation, all repossession costs, brokerage commissions, court costs, reasonable
attorneys’ fees, alteration and repair costs, (ii) the accrued and unpaid rentals owed at the time of termination plus interest thereon from such due date at Prime Rate, plus 2%, (iii) the difference, if any, between the discounted
net present value (at 8% discount rate) of the balance of the fixed annual minimum Base Rent for the remainder of the Term on the date of the default and the fair market value of the Lease on the date of the default (which remedy is hereby
acknowledged to be a fair estimation of Landlord’s damages and not an unenforceable penalty), and (iv) any other sum of money and damages owed by Tenant to Landlord. All such amounts shall be immediately due and payable from Tenant to
Landlord. Landlord shall be obligated to mitigate its damages in connection with any such default. 
 ARTICLE XX 

Signs 
 Tenant
shall have the right to erect, at its expense and in accordance with all applicable laws, ordinances, rules and regulations, and the Declarations, in or on the Premises such sign or signs as it may desire. 

ARTICLE XXI 

Taxes and Other Liens 
 21.1 Impositions. Tenant shall pay, before any fine, penalty, interest, or cost may be added thereto for the nonpayment thereof, all taxes and assessments (Landlord is not subject to real property taxes
pursuant to the West Virginia Code), real property taxes, water and sewer charges, incinerator and fire fees, vault charges, license and permit fees, and other governmental levies and charges, general and special, ordinary, and extraordinary,
unforeseen as well as foreseen, of any kind and nature (collectively, “Impositions”) which may be charged, assessed, levied, imposed upon or become due and payable, during the Term of this Lease; provided, however, that if, by law, any
Imposition is payable or at the option of the taxpayer may be paid in installments (whether or not interest shall accrue on the unpaid balance thereof), Tenant may pay the same (and any accrued interest on the unpaid balance) in installments and
shall be required to pay only such installments as may become due during the Term of this Lease as the same respectively become due and before any fine, penalty, interest, or cost may be added thereto for nonpayment thereof; and provided further,
that any Imposition relating to a fiscal period of a taxing authority, a part of which period is included within the Term of this Lease and a part of which is included in a period of time before the commencement of the Term or after the termination
of this Lease, other than a termination of this Lease pursuant to Article 18, 

 
shall (whether or not such Imposition shall be assessed, levied, confirmed, imposed, or become a lien upon the Premises or shall become payable, during the Term of this Lease) be appropriately
pro rated between Landlord and Tenant. 
 21.2 Tax on Tenant Additions. Tenant shall pay all additional taxes levied, assessed
or becoming payable by reason of the improvements, alterations or additions to the Premises installed by Tenant at any time during the Term of this Lease. 
 21.3 Exceptions. Nothing in this Lease shall require Tenant to pay any franchise, corporate, estate, inheritance, succession, capital levy, stamp, transfer or similar tax of Landlord, or any income,
excess profits, revenue or similar tax or any other tax, assessment, charge, or levy upon the basic rent, or any other rents payable under this Lease, nor shall any tax, assessment, charge, or levy of the character described in this
Section 21.03 be deemed to be included within the term “Imposition”; provided, however, that if at any time under the laws of the State or any political subdivision thereof in which the Premises is located a future change in the
method of taxation or in the taxing authority, or for any other reason, a franchise, income, transit, profit or other tax or governmental imposition, however designated, shall be levied against Landlord in substitution in whole or in part for any
imposition, or in lieu of additions to or increases of said impositions then said franchise, income, transit, profit or other tax or governmental imposition shall be deemed to be included within the term “Imposition,” and Tenant shall pay
and discharge such Imposition in accordance with paragraph 21.1 in respect of the payment of Impositions, to the extent it would be payable if the Premises were the only property of Landlord subject to such Imposition. 

21.4 Proof of Payment. Tenant agrees to submit to Landlord official receipts evidencing payment of said Impositions at the place at which
rental payments are required to be made no more than ten (10) days before said Impositions or other charges would otherwise become delinquent. 
 21.5 Refunds. If Landlord shall receive a refund of any Imposition theretofore paid by Tenant pursuant to the provisions hereof, such refund, net of Landlord’s costs of recovery, shall be promptly
paid to Tenant. 
 21.6 Protest. If Tenant shall, in good faith, desire to contest the validity of such Impositions, Tenant
shall have the right to do so without being in default hereunder provided that Tenant shall give Landlord prompt written notice of Tenant’s intention to institute such legal proceedings as are appropriate, which proceedings shall be promptly
instituted and conducted in good faith and with due diligence; such proceedings shall suspend the collection of such Impositions, and the Premises shall not be in danger of being sold, forfeited, or lost; and if required by law Tenant shall furnish
Landlord the appropriate governmental agency with a bond made by a surety company qualified to do business in the State in which the Premises is located or shall pay cash to a recognized escrow agent in the County within which the Premises is
located in one and one-half (1-1/2) times the amount of such Impositions, conditioned to pay such Impositions when the validity thereof shall have been finally determined, which said written notice and security shall be given by Tenant to Landlord
or the appropriate governmental agency not fewer than ten (10) days before such Impositions proposed to be contested would otherwise become delinquent. Upon the conclusion of such contest, Landlord shall return to Tenant the security
hereinabove required to be deposited by Tenant, provided that Tenant shall first evidence payment of such Impositions. 
 21.7
Requirements of Mortgage. In the event the financing institution where Landlord has financing on the Premises, if any, shall require Landlord to prepay the Impositions in monthly installments of one-twelfth (1/12th) of the annual amount
thereof, then upon written notice and demand Tenant shall make to said institution monthly payments of one-twelfth (1/12th) of such Impositions. 
 ARTICLE XXII 
 Utilities 

22.1 Payment of Charges. Tenant shall, during the Term of this Lease or any extensions hereof, pay and discharge punctually as and when
the same shall become due and payable without penalty all water and sewer rents, rates, and charges, charges for removal of waste materials, and charges for water, steam, 

 
heat, gas, electricity, light, and power, and other service or services furnished to the Premises or the occupants thereof during the Term of this Lease or any extensions hereof, and shall
indemnify Landlord against any and all liability on such account. 
 22.2 Provision of Services. Landlord shall not be required
to furnish any services or facilities to the Premises and shall not be liable for any failure of water supply or electric current or of any service by any utility, nor for injury or damage to person (including death) or property caused by or
resulting from steam, gas, electricity, water; heat, or by rain or snow that may flow or leak from any part of the Premises or from any pipes, appliances, or plumbing works of the same or from the street or subsurface or from any other place, nor
for interference with light or other incorporeal hereditaments or easements, however caused, unless due to the affirmative acts or negligence of Landlord, its agents, servants or employees. Tenant hereby assumes the full and sole responsibility for
the condition, operation, repair, replacement, maintenance, and management of the Premises. 
 ARTICLE XXIII 

Holding Over 

If Tenant or anyone claiming under Tenant remains in possession of the Premises at the expiration of the Term, without having duly
exercised its right, if any, to extend or further extend the Term, such continuing possession shall create a month-to-month tenancy on the terms herein specified, if Rent in the amount of one hundred and twenty-five percent (125%) of the
immediately preceding monthly installment of Rent is paid by Tenant and accepted by Landlord. Such tenancy may be terminated at the end of any month thereafter by either party by giving at least thirty (30) days’ notice thereof to the
other party. 
 ARTICLE XXIV 
 Notice 
 24.1 Notice Address. Any notice or demand which either party hereto
either is required to or may desire to serve upon the other, must be in writing, and shall be sufficiently served if (i) personally delivered, (ii) sent by registered or certified mail, postage prepaid, or (iii) sent by commercial
overnight carrier, and addressed, in the instance of Landlord, to: 
 West Virginia Economic Development Authority 

160 Association Drive 
 Charleston, West Virginia 25311-1217 
 Attn: David A. Warner, Executive Director

 with a copy to: 
 Brian C. Helmick, Esquire 
 SPILMAN THOMAS & BATTLE, PLLC 

300 Kanawha Boulevard, East 
 P.O. Box 273 
 Charleston, WV 25321-0273 

or any other address which Tenant may be notified of in writing by Landlord, and in the instance of Tenant, to: 

rue21, inc. 

800 Commonwealth Drive 
 Warrendale, PA 15086 
 Attention: Mr. Keith McDonough, SVP & CFO

 with a copy to: 
 rue21, inc. 
 800 Commonwealth Drive 

Warrendale, PA 15086 
 Attn: Stacy Siegal, Esq., General Counsel & Steven Lyman, Vice President 
 or such other
address which Landlord may be notified in writing by Tenant. 
 24.2 Service of Notice. Such notice shall be deemed to have been
served within three (3) days of the time of the mailing thereof or upon receipt in the event of personal service or overnight courier; provided, however, that should such notice pertain to the change of address to either of the parties hereto,
such notice shall be deemed to have been served upon receipt thereof by the party to whom such notice is given. 
 ARTICLE XXV

 Subordination 
 25.1 Lease Subordinate. So long as Tenant receives a non-disturbance agreement from the appropriate lessor, mortgagee or holder of a deed of trust, this Lease and all of Tenant’s right, title, and
interest in and under this Lease shall be subject, subordinated, and inferior to the lien of any and all ground leases, underlying leases, mortgages, and deeds of trust and to any and all terms, conditions, provisions, extensions, renewals or
modification of any such leases, mortgages, or deeds of trust which Landlord or any grantee or assignee of Landlord has placed or may place upon the Premises in the same manner and to the same extent as if this Lease had been executed subsequent to
the execution, delivery, and recording of such Lease, mortgage, or deed of trust. 
 25.2 Subordination. Self-Operative:
Subordination Agreement. Non-disturbance. The subordination of this Lease to any mortgage or deed of trust now or hereafter placed upon the Premises shall be automatic and self-operative and no further instrument or evidence of subordination shall
be necessary. Without limiting such automatic and self-operative subordination, however, Tenant shall, on demand, at any time, execute, acknowledge, and deliver to Landlord or any grantee or assignee of Landlord any and all instruments that may be
necessary or proper to evidence the subordination of this Lease and all rights hereunder to the lien of such mortgage or deed of trust. In any and all events, so long as Tenant is not in default under this Lease beyond any applicable cure period,
Tenant’s right of possession shall not be disturbed. 
 25.3 Attornment. Tenant covenants and agrees that, upon any
mortgage foreclosure or foreclosure under a deed of trust, it will attorn to any mortgagee, trustee, assignee, or any purchaser at any foreclosure sale as its Landlord, and this Lease shall continue in full force and effect as a direct Lease between
Tenant herein and such party upon all terms, conditions, and agreements set forth in this Lease. 
 25.4 Attornment to
Successor. In the event Landlord or any successor owner of the Premises shall transfer the Premises, which transfer may be freely effected by Landlord without the consent or approval of Tenant, Landlord or such successor owner, as the case may be,
shall thereupon be released from all future liabilities and obligations of Landlord under this Lease and all such future liabilities and obligations shall thereupon automatically be binding upon the new owner, and Tenant will attorn to any new owner
as its Landlord, and this Lease shall continue in full force and effect as a direct Lease between Tenant herein and such party upon all terms, conditions, and agreements set forth in this Lease. 

ARTICLE XXVI 

Landlord’s Access to the Premises 
 Landlord, or its agents or authorized representatives, shall have access to the Premises after reasonable notice at any time during normal business hours for the purposes of examining or inspecting the
condition of same. In the event of any emergency such as, but not limited to, a fire, flood, or severe 

 
windstorm, Landlord shall have free access to the Premises for the purpose of examining or inspecting damage done to them. Unless Tenant shall have given notice of its intention to exercise its
option to extend the Term of this Lease pursuant to Article II of this Lease entitled “Term and Extensions,” Landlord shall have the right, within twelve (12) months prior to expiration of this Lease or any extensions hereof, to show
the Premises to prospective tenants, upon reasonable advance notice during normal business hours. Landlord further reserves the right to show the Premises to prospective purchasers or their representatives any time during the Term of the Lease, upon
reasonable notice to Tenant during normal business hours. 
 ARTICLE XXVII 

Environmental Compliance 
 27.1 Definitions. For purposes of this Lease: 
 (a) the term “Environmental
Laws” shall mean and include the Resource Conservation and Recovery Act, as amended by the Hazardous and Solid Waste Amendments of 1984, the Comprehensive Environmental Response, Compensation and Liability Act, the Hazardous Materials
Transportation Act, the Toxic Substances Control Act, the Federal Insecticide, Fungicide and Rodenticide Act and all applicable state and local environmental laws, ordinances, rules, requirements, regulations and publications, as any of the
foregoing may have been or may be from time to time amended, supplemented or supplanted and any and all other federal, state or local laws, ordinances, rules, requirements, regulations and publications, now or hereafter existing, relating to the
preservation of the environment or the regulation or control of toxic or hazardous substances or materials; and 
 (b) the term
“Regulated Substance” shall mean and include any, each and all substances or materials now or hereafter regulated pursuant to any Environmental Laws, including, but not limited to, any such substance or material now or hereafter defined as
or deemed to be a “regulated substance,” “pesticide,” “hazardous substance” or “hazardous waste” or included in any similar or like classification or categorization thereunder. 

27.2 Compliance. Tenant shall: 
 (a) not cause or permit any Regulated Substance to be placed, held, located, released, transported or disposed on, under, at or from the Premises or to otherwise adversely affect the Premises in violation
of any Environmental Laws; 
 (b) at its own cost and expense contain at or remove from the Premises, or perform any other
necessary or desirable remedial action regarding, any Regulated Substance in any way affecting the Premises if, as and when such containment, removal or other remedial action is required under any Environmental Laws and, whether or not so required,
shall perform any containment, removal or remediation of any kind involving any Regulated Substance in any way affecting the Premises in compliance with the requirements of all Environmental Laws; 

(c) provide Landlord with written notice (and a copy as may be applicable) of any of the following within 20 days thereof:
(i) Tenant’s obtaining knowledge or notice of any kind of the presence, or any actual or threatened release, of any Regulated Substance in any way affecting the Premises; (ii) Tenant’s receipt or submission, or Tenant’s
obtaining knowledge or notice of any kind, of any report, citation, notice or other communication from or to any federal, state or local governmental or quasi-governmental authority regarding any Regulated Substance in any way affecting the
Premises; or (iii) Tenant’s obtaining knowledge or notice of any kind of the incurrence of any cost or expense by any federal, state or local governmental or quasi-governmental authority or any private party in connection with the
assessment, monitoring, containment, removal or remediation of any kind of any Regulated Substance in any way affecting the Premises, or of the filing or recording of any lien on the Premises or any portion thereof in connection with any such action
or Regulated Substance in any way affecting the Premises; and 
 (d) defend all actions against Landlord and its Mortgagee and
pay, protect, indemnify and save harmless Landlord and its Mortgagee from and against any and all liabilities, losses, damages, costs, 

 
expenses (including, without limitation, reasonable attorneys’ and consultant’s fees, response and clean-up costs, court costs, and litigation expenses), causes of action, suits, claims
demands or judgments of any nature relating to (i) the presence, disposal, release or threatened release of any Regulated Substance; (ii) any personal injury (including wrongful death) or property damage (real or personal) arising out of
or relating to any Regulated Substance; or (iii) any Environmental Laws, Regulated Substance or other environmental matters caused by Tenant, its agents, servants, employees or contractors. If at the expiration or other termination of this
Lease any response or clean up of a condition involving Regulated Substances is required by any federal, state or local governmental authority, Tenant shall remain solely responsible for such requirement and (his Lease shall remain in full force and
effect pursuant to the terms of Article XXIII until such response or clean up is completed to the satisfaction of the respective governmental authority. The indemnity contained in this Article XXVII shall survive the expiration or earlier
termination of this Lease, but shall be limited to the acts, omissions or negligence of Tenant, its agents, servants, employees or contractors. 
 ARTICLE XXVIII 
 Late Rent 

Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due hereunder will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any
mortgage or trust deed encumbering the Premises. Accordingly, if any installment of Rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five (5) days after written notice of non-payment,
Tenant shall pay to Landlord a late charge equal to the greater of 4% of such overdue amount or the late charge, penalty or interest imposed on Landlord by its Mortgagee as a result of any late payment made to such Mortgagee. The parties hereby
agree that such late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant’s default
with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted hereunder. 
 ARTICLE XXIX 
 Estoppel Certificates 

Tenant will promptly execute, acknowledge, and deliver to Landlord, upon request, a certificate of Tenant certifying that this Lease is
unmodified and is in full force and effect (or, if modified, that this Lease is in full force and effect, as modified, and stating the date of each instrument so modifying this Lease); the dates, if any, to which Rent and other charges payable
hereunder have been paid; and, whether, to the knowledge of Tenant, any default exists hereunder and, if so, the nature and period of existence thereof and what action Landlord is taking or proposes to take with respect thereto and whether notice
thereof has been given to Landlord and such other and further matters as may reasonably be requested by Landlord and any mortgagee of Landlord. If such certificate is required to be delivered by a corporation, the same shall be signed by the
President or a Vice President and the Secretary or an Assistant Secretary thereof, and if such certificate is required to be delivered by a partnership, the same shall be signed by a general partner thereof. Any certificate required under this
Article may be relied upon by a prospective purchaser, mortgagee, or other transferee of Landlord’s interest under this Lease. 
 ARTICLE XXX 
 Reports 

Tenant agrees to furnish to Landlord, within ninety (90) days after the end of each fiscal year during the term of this Lease;
provided, however, so long as Tenant is a corporation whose stock is traded on a public exchange, Tenant shall not be required to furnish Landlord with financial statements. Tenant shall provide the Landlord annually, by November 1, of each
year during the term of this Lease, a report 

 
showing the total number of permanent and part-time employees of the Tenant working at the Premises as of September 30 of that year and the aggregate total of gross wages paid to these
employees during the twelve month period ending September 30 of that same year. 
 ARTICLE XXXI 

Provisions of General Application 
 (a) The language in all parts of this Lease shall in all cases be construed as a whole and according to its fair meaning, and not strictly for or against either Landlord or Tenant, and the construction of
this Lease and any of its various provisions shall be unaffected by any argument or claim, whether or not justified, that it has been prepared, wholly or in substantial part, by or on behalf of Landlord or Tenant. 

(b) The Article headings in this Lease are for convenience only and are not a part of this Lease, and do not in any way limit or simplify
the terms and provisions of this Lease, nor should they be used to determine the intent of the parties. 
 (c) If any term,
covenant, condition or provision of this Lease, or the application thereof to any person or circumstances, shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby; and it is the intention of the parties hereto that if any provision of this Lease is capable of two constructions, one of which would
render the provision invalid, and the other which would render the provision valid, then the provision shall have the meaning which renders it valid; and each term, covenant, condition and provision of this Lease shall be valid and be enforced to
the fullest extent permitted by law. 
 (d) The failure of either party to seek redress for violation of, or to insist upon
strict performance of, any term, covenant, condition or provision contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. It is further agreed by and between the parties that no modification,
release, discharge or waiver of any provision of this Lease shall be of any force, effect or value unless in writing and signed by the Landlord and Tenant or their duly authorized agents. 

(e) This Lease shall be governed and construed in accordance with the laws of the State wherein the Premises are located. 

(f) This Lease shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of
Landlord, and the successors and assigns of Tenant. 
 (g) The parties will, at any time at the written request of either one,
promptly execute duplicate originals of an instrument, in readable form, which will constitute a short form of lease, setting forth a description of the Premises, the Term and any other portions hereof, except the rental provisions (unless required
by statute), as either party may request. All costs incurred in connection with recording the short form of lease shall be paid by Tenant. If a party fails or refuses to execute and acknowledge a short form of lease within fifteen (15) days
after notice of said request, the requesting party is authorized to, and is hereby appointed attorney-in-fact with full power and authority to execute and acknowledge said short form of lease on behalf of and in the name of the other Party.

 (h) Each of the parties hereto represents and warrants to the other that it has had no dealings with any broker or agent in
connection with this Lease and agrees to indemnify and hold harmless the other party from and against any and all claims, liabilities and expenses (including reasonable attorney’s fees) imposed upon, asserted or incurred by the other party as a
consequence of any breach of this representation. 
 (i) If, as a result of any breach or default in the performance of any of
the provisions of this Lease, Landlord or Tenant uses the services of an attorney in order to secure compliance with such provisions or recover damages therefor from the breaching party, and if the non-breaching party is the prevailing party in

 
any litigation resulting therefrom or settlement associated therewith, then the non-breaching party shall be entitled to recover from the breaching party any and all reasonable attorneys fees and
expenses incurred by the non-breaching party in connection with such litigation. 
 (j) This instrument contains the entire and
only agreement between the parties relating to the subject matter hereof, and no oral statements or representations or written matter not contained in this instrument shall have any force or effect. This Lease shall not be amended or modified in any
way except by a writing executed by both parties. 
 (k) Time is of the essence of this Lease and the performance of all
obligations hereunder. 
 (l) The relationship between the parties hereto is solely that of Landlord and Tenant, and nothing in
this Lease shall be construed as creating a partnership or joint venture between the parties hereto, it being the express intent of Landlord and Tenant that the business of Tenant on the Premises and elsewhere, and the good will thereof, shall be
and remain the sole property of Tenant. 
 (m) Throughout this Lease, wherever the context so requires, the singular shall
include the plural, and the masculine gender shall include the feminine and neuter genders. 
 (n) There shall be no merger of
this Lease or the leasehold estate created by this Lease with any other estate or interest in the Premises by reason of the fact of the same person, firm, corporation, or other entity acquiring or owning or holding, directly or indirectly, this
Lease or the leasehold interest created by this Lease or any interest in this Lease, and any such other estate or interest in the Premises or any part thereof, and no such merger shall occur unless and until all corporations, firms, and other
entities having an interest (including a security interest) in this Lease or the leasehold interest created by this Lease and any such other estate or interest in the Premises or any part thereof, shall join in a written instrument effecting such
merger and shall duly record the same. 
 IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed and
delivered in their respective names as of the date first above written, and Tenant has attached hereto a certified copy of its corporate resolution evidencing the authority of the person subscribing below to execute leases such as this Lease on its
behalf. 
  

							
		 	LANDLORD:	 	
			
		 		 	WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY, a West Virginia Public Corporation
				
		 		 		 	 /s/ David A. Warner

		 		 		 	By: DAVID A. WARNER,
		 		 		 	Its: Executive Director
				
		 	TENANT:	 		 	
			
		 		 	rue21, inc., a Delaware corporation
				
		 		 		 	 /s/ Keith McDonough

		 		 		 	By: KEITH MCDONOUGH
		 		 		 	Its: CFO & Senior Vice President

 EXHIBIT A 

 May 28, 1999 
 Project 98-443 
 Three Springs Industrial and Business Park 

Subdivision No. 4 
 Lot 1-A-1 
 ALL that certain tract or parcel of land situated in the City of Weirton, District of
Cross Creek, County of Brooke and State of West Virginia, bounded and described as follows, to-wit: 
 Beginning at a point on the westerly line
of Park Drive and on the property of the West Virginia Economic Development Authority: thence along the westerly line of Park Drive the following three courses and distances, to-wit: South 22°12’07” East, 370.38 feet to a point; thence
by the arc of a circular curve deflecting to the right in a southwardly direction having a radius of 421.00 feet, an arc distance of 238.68’ and a chord bearing and distance of South 5°57’37” East, 235.50 feet to a point; thence
South 10°16’54” West, 149.29 feet to a point on the westerly line of Park Drive and on the property of the West Virginia Economic Development Authority; thence departing from the westerly line of Park Drive and along the property of
West Virginia Economic Development Authority the following three courses and distances, to-wit: South 10°16’54” West, 99.14 feet to a point; thence by the arc of a circular curve deflecting to the right in a southwestwardly direction
having a radius of 50.00 feet, an arc distance of 72.54 feet and a chord bearing and distance of South 51°50’28” West, 66.34 feet to a point; thence North 86°35’58” West, 82.50 feet to a point on the property of Weirton
Steel Corporation; thence along the property of Weirton Steel Corporation the following three courses and distances, to-wit: North 86°35’58” West, 539.50 feet to a point; thence North 22°12’07” West, 555.50 feet to a
point; thence North 67°47’53” East, 377.90 feet to a point on the property of West Virginia Economic Development Authority; thence along the property of West Virginia Economic Development Authority North 67°47’53” East,
446.10 feet to a point at the place of beginning 
 CONTAINING 13.03 Acres. 

 EXHIBIT B 

 

 

 EXHIBIT C 

 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 

WEIRTON STEEL CORPORATION 
 THREE SPRINGS INDUSTRIAL AND BUSINESS PARK – PLAN NO. 1 
 BROOKE
COUNTY, WEST VIRGINIA 
  

			
	ARTICLE I:	    	PROPERTY SUBJECT TO THIS DECLARATION
	ARTICLE II:	    	GENERAL PROVISIONS
	ARTICLE III:	    	CONSTRUCTION IMPROVEMENTS
	ARTICLE IV:	    	REGULATION OF OPERATIONS AND USES
	ARTICLE V:	    	DEVELOPMENT STANDARDS
	ARTICLE VI.	    	RIGHTS, DUTIES AND RESPONSIBILITIES
	ARTICLE VII:	    	VARIANCES AND ADJUSTMENTS
	ARTICLE VIII:	    	PROVISIONS FOR MODIFICATION, AMENDMENT OR DELETION

 ARTICLE I: PROPERTY SUBJECT TO THIS DECLARATION 

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS, (hereinafter “Declaration”), made and entered into this 20th day of March,
1997, by and between WEIRTON STEEL CORPORATION, (hereinafter called “WSC”), and ALL PURCHASERS, THEIR RESPECTIVE HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS, of lots in the Three Springs Industrial
and Business Park – Plan No. 1, situate in Brooke County, West Virginia; 
 WHEREAS; WSC is the owner of a plan of lots
called “THREE SPRINGS INDUSTRIAL AND BUSINESS PARK – PLAN NO. l” situate in Brooke County, West Virginia, (hereinafter called “Plan No. 1”), which plan is recorded in the Office of the County
Clerk in and for the County of Brooke, State of West Virginia, Plat Book No. 3 at pages 55 and 55A; 
 WHEREAS, WSC intends to
convey Plan No. 1 to the WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY, (“WVEDA”); and 
 WHEREAS, Plan No. 1
is to be developed as a planned business and industrial park and WVEDA intends to lease, sell and convey lots in Plan No. 1, and it is WSC’s desire and intention to subject the real property in Plan No. 1 to certain covenants,

 conditions and restrictions herein contained as such covenants will bind and benefit each and all of the
tenants or lessees and purchasers of such lots, their respective heirs, executors, administrators, successors and assigns, and that all lots in Plan No. 1 shall be held, used, leased, sold and conveyed subject to the covenants set forth in this
Declaration to enhance and protect the value, desirability, and attractiveness of all such lots for the mutual benefit of all lot owners or lot lessees. 
 NOW THEREFORE, WSC declares that all lots in said Plan No. 1 will be leased or sold subject to the covenants herein contained and
all tenants or lessees and purchasers of lots in said Plan No. 1 for themselves, their heirs, executors, administrators, successors and assigns, by the lease or purchase of said lots, agree to be bound by the restrictive covenants herein
contained which shall be recorded in the Office of the County Clerk in and for the County of Brooke, State of West Virginia. 

ARTICLE II: GENERAL PROVISIONS 
 2.1 General Declaration. Plan No. 1 is subject to the conditions, covenants, restrictions, reservations, and easements herein contained to insure proper use and appropriate
development and improvement of each building site; to protect the owners of building sites against such improper use of surrounding building sites as will depreciate the value of their property; to guard against the erection of structures built of
improper or unsuitable materials; to insure adequate and reasonable development of all building sites; to encourage the erection of attractive improvements with appropriate locations on building sites; to prevent haphazard and inharmonious
improvement of building sites; to secure and maintain proper setbacks from streets and adequate free spaces between structures, and for the landscaping, planting, and maintenance of open spaces; to provide adequately for off-street parking and for
loading and storage of vehicles; to control through performance standards, the undesirable aspects of industrial operations; and in general, to provide for superior development, of Plan No. 1; to insure that the use of building sites shall not
affect adversely the interest of WSC and WVEDA or purchasers or lessees of building sites in Plan No.1; nor the health and safety of employees or workers therein; and will not be detrimental to the use or development of adjacent properties of the
general neighborhood. In the event 

 
the provisions of this Declaration conflict with local, state or federal requirements, the more stringent requirements in each case shall apply. 

2.2 Duration. The covenants herein contained in this Declaration shall run with the subject property for all
purposes and shall bind all parties and persons claiming under them until December 31, 2020, at which time said covenants shall be automatically extended for successive periods of ten (10) years, unless by a vote of the a majority of the
then owners of said lots, it is agreed to change or terminate said covenants in whole, or in part, provided that WSC gives its written consent to any such change or termination which consent may be arbitrarily withheld by WSC. 

2.3 Addition of Other Realty. WSC at any time during the pendency of this Declaration may add all or a portion of
any real property adjacent to Plan No. 1 now, or hereafter, owned by the WSC to the subject property, upon recording of a notice of addition of real property containing at least the provisions set forth in Section 2.4, the provisions of
this Declaration specified in said notice shall apply to such added real property in the same manner as if it were originally covered by this Declaration. Thereafter, to the extent that this Declaration is made applicable thereto, the rights,
powers, and responsibilities of WSC and the owners and occupants of lots within such added real property shall be the same as in the case of the real property described in Article 1. 

2.4 Notice of Addition to Land. The notice of addition of real property referred to in Section 2.3 shall
contain at least the following provisions: 
  

	 	a.	A reference to this Declaration stating the date of recording and the books of records of Brooke County, West Virginia where this Declaration is recorded;

  

	 	b.	A statement that the provisions of this Declaration, or some specified part thereof, shall apply to such added real property; 

 

	 	c.	 A legal description of such added real 

	 	
property; and 

  

	 	d.	Such other or different covenants, conditions, and restrictions as WSC shall, in its discretion, specify to regulate and control the use, occupancy, and improvement of
such added real property. 

 2.5 Respective Enforcement_Rights. Enforcement rights will be held only
by the WSC and WVEDA. If the parties hereto, or any of them, shall violate or attempt to violate, any of the covenants herein, WSC or WVEDA or both shall have the right to proceed at law or in equity to compel compliance with the terms hereof or to
prevent the violation or breach of any such terms. In addition to the foregoing right, WSC or WVEDA or both shall have the right, whenever there shall have been built on any lot any structure which is in violation of these restrictions, to enter
upon the property where such violation of these covenants, conditions, reservations and restrictions exists and summarily abate or remove the same at the expense of the owner, and any such entry and abatement or removal shall not be deemed a
trespass. WSC and/or WVEDA may assign their enforcement rights to an entity who may be engaged to manage the Three Springs Industrial and Business Park or an association of lot owners of Plan No. 1. 

Should WSC or WVEDA employ counsel to enforce any of the foregoing covenants, conditions, reservations or restrictions or re-entry by reason of such
breach, all costs incurred in such enforcement, including a reasonable fee for counsel, shall be paid by the owner of such lot or lots and WSC and WVEDA shall have a lien upon such lot or lots to secure payment of all such accounts. 

Should the owner fail, neglect, or refuse to satisfy and discharge any lien arising hereunder within thirty (30) days, WSC or WVEDA shall have the
right to interest on such liens at the rate of ten (10) percent per annum, and shall be entitled to receive all costs of collection, including a reasonable attorney’s fee. 
 The breach of any of the foregoing covenants, conditions, reservations or restrictions contained herein, shall not defeat 

 or render invalid the lien of any mortgage made in good faith for value as to any lot or lots or portions of
lots in Plan No. 1., but these covenants, conditions, reservations and restrictions shall be binding upon and effective against any such mortgagee or owner thereof whose title thereto or whose grantor’s title is or was acquired by
foreclosure, or otherwise. 
 No delay or omission on the part of either WSC or WVEDA in exercising any rights, power, or remedy herein
provided, in the event of any breach of the covenants, conditions, reservations or restrictions herein contained, shall be construed as a waiver thereof or acquiescence therein, and no right of action shall accrue nor shall any action be brought or
maintained by anyone whatsoever against WSC or WVEDA for or on account of its failure to bring any action on account of any breach of these covenants, conditions, reservations or restrictions, or for imposing restrictions herein which may be
unenforceable by WSC or WVEDA. 
 Each and every one of the covenants, restrictions, reservations, and servitudes contained herein shall be
considered to be an independent and separate covenant and agreement. 
 2.6 Effect of Invalidation. 

In the event any one or more of the foregoing covenants, conditions, reservations or restrictions shall be declared for any reason, by a
court of competent jurisdiction, to be null and void, such judgment or decree shall not in any manner whatsoever affect, modify, change, abrogate, or nullify any of the covenants, conditions, reservations and restrictions not so declared to be void,
but all of the remaining covenants, conditions, reservations and restrictions not so expressly held to be void shall continue unimpaired and in full force and effect. 
 ARTICLE III – CONSTRUCTION OF IMPROVEMENTS 
 3.1 Approval
of Plans Required. To assure architectural and landscaping integrity, no construction, grading, regrading, addition or alteration (except to the interior of a building), or change in use is permitted without the prior submission of plans to
WSC and WVEDA and the written approval of WSC and WVEDA as detailed in this Article. 

 Prior approval by WSC and WVEDA will be required of a user’s development plans and any contemplated
building alterations or additions. Development plans shall be submitted over the authorized signature of the owner or occupant, or both of the lot or the authorized agent thereof. Submitted development plans shall be in such form and shall contain
such information as may be required by the WSC and WVEDA but shall contain the following information at a minimum: 
  

	 	a.	A site development and grading plan of the lot showing the nature, kind, shape, composition and location of all main and accessory structures with respect to the
particular lot and with respect to the structures on adjoining lots. Front, rear and side setback lines must be designated on the site plan. 

  

	 	b.	A building elevation plan showing the height and bulk of structures; exterior building materials, colors and textures to be used, and the height and bulk of any
roof-mounted mechanical equipment. Any changes in approved plans must be similarly submitted to and approved by WSC and WVEDA. 

  

	 	c.	A traffic circulation and building service plan showing the location of vehicular access onto the site, the number and location of all parking spaces and driveways on
the lot, and all truck loading spaces. 

  

	 	d.	A utility plan showing on-site utility alignments and storm drainage systems including any storm water detention or retention systems. 

 

	 	e.	A landscaping plan for the particular lot showing the location and nature of all landscaping, as well as provisions for other open space; paving, fences and walls
planned for the site; and the location of refuse or storage areas. 

  

	 	f.	A plan for the location of signs indicating the contemplated display of signs, including copy, type, color and materials of letters and method of

	 	
illumination. 

  

	 	g.	A lighting plan indicating the method(s) of exterior lighting. 

  

	 	h.	An architectural rendering of the proposed building. 

 These plans may be combined together to simplify the applicant’s submittal as long as the drawings are acceptable to WSC and WVEDA. The applicant shall submit seven (7) copies of all development
plans. 
 3.2 Basis for Approval. In reviewing plans submitted, WSC and WVEDA will be concerned with the safety
and convenience of traffic movement both within and outside the lot, its relationship to access streets, as well as to the harmonious and beneficial relationship of structures and uses on the lot with other lots in Plan No. 1. Approval will be
based, among other things, upon compliance with the Development Standards incorporated in Article V including: the adequacy of lot dimensions; adequacy of structural design, conformity and harmony of external design with neighboring
structures; effect of location and use of proposed improvements upon neighboring lots; proper facing of main elevation with respect to nearby streets; the adequacy of screening for mechanical, air-conditioning, or other roof-top installations; and
conformity of the plans to the purpose and general plan and intent of this Declaration. 
 Except as otherwise provided in this Declaration, WSC
and WVEDA shall have the right to disapprove any plans submitted hereunder on any reasonable grounds including, but not limited to the following: 
  

	 	a.	Failure to comply with any of the restrictions set forth in this Declaration; 

 

	 	b.	Failure to include information in such plans as may have been reasonably requested by WSC and WVEDA; 

 

	 	c.	Objection to the exterior design, the appearance of materials, or materials employed in any proposed structure; 

	 	d.	Objection on the ground of incompatibility of any proposed structure or use with existing structures or uses upon other lots, or other property in the vicinity of the
subject property; 

  

	 	e.	Objection to the location of any proposed structure with reference to other lots, or other property in the vicinity; 

 

	 	f.	Objection to the grading or landscaping plan for the lot; 

  

	 	g.	Objection to the color scheme, finish, proportions, styles of architecture, height, bulk, or appropriateness of any structure; 

 

	 	h.	Objection to the number or size of parking spaces, or to the design of the parking area; 

 

	 	i.	Any other matter that, in the judgment of WSC or WVEDA would render the proposed improvements or use inharmonious with the general plan for improvement of the subject
property or with improvements located upon other lots or other property in the vicinity. 

 3.3
Approval. WSC and WVEDA may approve plans as submitted, or as altered or amended, or may grant approval subject to specific conditions. Upon approval or conditional approval by WSC and WVEDA of any plans submitted, one copy of the
approved plans bearing a statement of WSC’s and WVEDA’s approval together with any conditions, shall be retained permanently by WSC, WVEDA and by the applicant. 
 3.4 Construction Without Approval. If any improvement shall be erected, placed, or maintained upon any lot, or any new use commenced upon any lot, other than in accordance with the approval
by WSC and WVEDA pursuant to the provisions of this Article III, such alteration, erection, placement, maintenance, or use shall be deemed to have been undertaken in violation of this Declaration, and upon written notice from WSC or WVEDA, any such
improvement so altered, erected, placed, maintained, or used upon any lot in violation of this Declaration shall be removed or 

 altered so as to conform to this Declaration, and any such use shall cease or be altered so as to conform to
this Declaration. Should such removal or alteration or cessation or amendment of use not be accomplished within thirty (30) days after receipt of such notice, then the party in breach of this Declaration shall be subject to the enforcement
procedures set forth in Article II. 
 3.5 Liability. WSC and WVEDA shall not be liable, for any
damage, loss, or prejudice suffered or claimed by any person on account of: 
  

	 	a.	The approval, conditional approval or disapproval of any plans, drawings, and specifications, whether, or not in any way defective; 

 

	 	b.	The construction of any improvement, or performance of any work, whether or not pursuant to approved plans, drawings, and specifications; or 

 

	 	c.	The development of any lot within the Three Springs Industrial and Business Park. 

 ARTICLE IV – REGULATION OF OPERATIONS AND USES 
 4.1
Permitted Uses. Plan No. 1 shall be utilized for general offices, research and development laboratories, light manufacturing and production, assembly, distribution or warehousing and related service and support facilities and for
no other purpose whatsoever. Personal and business services, ancillary to the business and industrial uses, shall also be permitted. Utilization of the property for distribution activities which include over-the-counter pick-up or sales to the
general public is prohibited unless an application therefore, setting forth the particular type of pick up or sales contemplated, the anticipated volumes and the location of the pick-up center or sales outlet on the property, is specifically
approved in writing by WSC and WVEDA. 
 4.2 Prohibited Uses. Uses which create objectionable attributes
including, but not limited to noise, odor, vibration, fumes, flare, heat, hazard, radiation or waste problems are 

 prohibited. Any use which is prohibited by federal, state or local law is prohibited. 

4.3 Reservation of Rights. WSC and WVEDA and their respective successors or assigns reserve the right in their sole
discretion to determine which specific uses are permitted and/or prohibited. 
 ARTICLE V – DEVELOPMENT STANDARDS

 5.1 Lot Coverage by Buildings. The erection of one or more detached buildings on any lot shall result
in the coverage of no more than to thirty three percent (33%) of the lot ground area upon initial development. The erection of additions to existing buildings or the erection of an additional building, shall result in the coverage of no more
than fifty percent (50%) of the lot ground area. 
 The area of a lot which may be covered by buildings is limited to assure the provision
of adequate surrounding space within the lot ground area for parking, service, and to maintain an attractively landscaped park-like setting in the Three Springs Industrial and Business Park. 

5.2 Floor Area Ratio (FAR). Total floor area ratio (“FAR”) shall not exceed 0.70. Total FAR is defined as
the ratio of total building gross floor area, excluding mezzanines used exclusively for material storage, to the total lot area, eg. if the total lot area is 10,000 square feet, total building gross floor area, not counting mezzanines used
exclusively for material storage, shall not exceed 7000 square feet. 
 5.3 Building Height Limitations. Building
height limits shall be described as occurring within a 45° angle of bulk plane or a maximum of sixty (60) feet above finished grade, whichever is more restrictive. Bulk plane shall be defined as an imaginary inclined plane rising over a lot,
drawn at a 45° angle from the vertical, the bottom side of which is coincidental with the lot line(s) of the lot, and which, together with a maximum height of sixty (60) feet above finished grade, delineates the maximum bulk of any
improvement which may be constructed on the lot. Additional height may be permitted if specifically approved in writing by WSC and WVEDA. The height of any roof over any 

 
Occupied floor shall not rise above this plane except that in the cases of buildings with special requirements, additional height may be permitted by WSC and WVEDA. Such special
requirements shall not include habitable space. 
 5.4 Construction Materials. To establish and maintain the character
and property values for all developed lots within Plan No. 1, quality materials must be utilized in the construction of all buildings. Building materials will be judged and approved by WSC and WVEDA on a case-by-case basis. Factors to be
considered by WSC and WVEDA include: the overall design of the building(s); its compatibility with existing and previously approved structures including scale, color, and texture of the building in harmony with the design of other existing or
approved structures; and, the overall objectives of quality development described elsewhere in these covenants. Plans that provide for metal-clad buildings will be approved only on the condition that such buildings are constructed so as not to have
the appearance of a pre-engineered metal building, are designed by an architect, and are specially approved in writing by WSC and WVEDA. 
 5.5 Temporary Buildings. No temporary buildings are permitted except those associated with construction; and only during the construction period. 

5.6 Building Setbacks (Yard Requirements) and Landscaping Buffer Strip. In order to maintain the desired physical character of
Three Springs Industrial and Busines Park, the placement of buildings must conform to the established minimum front, side and rear yard requirements in order to assure an aesthetically pleasing streetscape and to provide sufficient light and air for
all buildings. The following front, side and rear yard requirements apply to any lot to be utilized for the construction of one or more detached buildings. The minimum yard requirements established below must be satisfied by measuring the distance
from the exterior of the building wall or any building projection (whichever is closer to the property line) and the property line. 
  

	 	a.	 Minimum Front Setback from Streets: With no exceptions, a building front setback line will be established (40) forty feet from and parallel to any
street right-of-way line. The facade of any 

	 	
building, including integral covered porch or walkway, which faces the right-of-way may be built no closer than this building setback line. Only exposed walks, drives, parking areas or
landscaping will be permitted in the area between the right-of-way line and the front building setback line. 

  

	 	b.	Side Yards: A side yard of at least twenty-five (25) feet must be provided from the building to the side property line. When the side yard abuts a street, a side
yard of at least forty (40) feet must be provided from the building to the street right-of-way. Driveways located within side yard setbacks may be located no closer than ten (10) feet from the property line. 

 

	 	c.	Rear Yards: A rear yard of at least twenty-five (25) feet must be provided between the building and the rear property line. 

 

	 	d.	Landscaped Buffer Strip: A landscaped buffer strip must be provided around the perimeter of the lot(s) under one ownership. Measured from the property line, the
landscaped buffer strip must be fifteen (15) feet wide in the front yard, ten (10) feet wide at each side yard and ten (10) feet wide in the rear yard. In addition, a landscaped strip ten (10) feet wide must be provided around
the perimeter of the building(s). In addition to the specified general landscaping requirements defined in Section 5.6, within designated landscaped buffer strip areas, no more than fifteen percent (15%) of the area may be covered with a
non-vegetative treatment or decorative mulch, and no less than twenty-five percent (25%) of the area may be covered with shade and ornamental trees, specimen and flowering trees and shrubs, hedges and flower beds. 

5.7 Landscaping. The total ground area of the lot(s) not covered by buildings, parking areas, roadways, walkways, and service
areas is to be landscaped with suitable cover material 

 
and maintained in a neat and attractive condition at all times. Suitable landscape treatment may include the use of lawns, ground covers, shade and ornamental trees, specimen and flowering trees
and shrubs, hedges, decorative mulches, terraces, fountains, and pools. No more than fifteen percent (15%) of the landscaped area may be covered with a non-vegetative treatment or decorative mulch. Landscaping shall be completed within one year
after substantial completion of construction. 
 5.8 Off-Street Parking and Loading. No parking of any vehicle shall be
permitted upon any street or roadway within the Three Springs industrial and Business Park. It is the responsibility of the owners of lots in Plan No. 1 to provide adequate off-street parking for their employees, tenants, subtenants and
visitors on property under their ownership. 
  

	 	a.	Schedule of Off-Street Parking Requirements: Parking areas must be provided in compliance with the following minimum requirements. If parking requirements increase as a
result of a change in the use of a lot, additional off-street parking shall be provided so as to satisfy the federal, state and local requirements. 

  

	 	1.	Light Industrial/Manufacturing - Three spaces per each four (4) employees on the largest eight hour shift plus one (1) space for each company vehicle to be
parked or stored outside. 

  

	 	2.	Business/Professional - one (1) space for every three hundred (300) square feet gross floor area. 

 

	 	3.	General Business - One (1) space for each two hundred (200) square feet of gross floor area. 

 

	 	4.	Other Uses - The space provided for parking must satisfy generally accepted parking guidelines for that use and be approved by WSC and WVEDA in order to insure
compliance with federal, state and local guidelines. 

	 	5.	Truck Parking - One (1) off-street parking space shall be provided for each company-owned or operated truck, and shall be of such dimension to permit the
accommodation of the entire vehicle without encroachment on any aisle, passageway or driveway. 

  

	 	6.	Handicapped Parking Spaces - one (1) handicapped parking space shall be provided for each twenty-five (25) parking spaces provided for the first one hundred
(100) parking spaces, one (1) handicapped parking space shall be provided for each fifty (50) additional parking spaces for the next one hundred (100) parking spaces, and one (1) handicapped parking space shall be provided
for each one hundred (100) additional parking spaces for the next three hundred (300) parking spaces. Any parking spaces provided beyond five hundred (500) must provide such number of handicapped parking spaces as will comply with the
requirements of the Americans with Disabilities Act. 

  

	 	b.	Requirements for Parking Areas: Required off-street parking shall be provided on the lot or on a contiguous lot. Parking facilities may be provided within required side
or rear yard areas, but in no case shall such facilities be permitted to encroach on required landscaped buffer strips as defined in Section 5.6 (d). Front parking is permitted, but limited to executive or visitor parking.

  

	 	c.	 Surface Treatments: All areas used for driveway, loading, service and parking will be surfaced with an approved, all-weather, dust-free pavement. All
paved areas shall be appropriately drained so that storm water will not create erosion on the lot or drain onto adjacent lots. No site surface storm water runoff may be drained onto the public street surface. Asphalt paving shall be permitted for
roadways, parking areas and loading areas; but shall not be permitted for any pedestrian areas or 

	 	
walkways which must be constructed with concrete. 

  

	 	d.	Design Standards: Parking spaces shall measure at least nine (9) feet by twenty (20) feet or not less than one hundred eighty (180) square feet, exclusive of
access drives or aisles with the exception of handicapped spaces which shall measure nine (9) feet wide with a five (5) feet wide striped access aisle by twenty (20) feet. Each parking space provided shall be designated by durable
white or yellow paint in striped lines painted upon the paved surface measuring a minimum of four (4) inches wide and extending the length of the parking space. Striping must be maintained to keep parking lot designations identifiable.

 All off-street parking areas with more than twenty (20) required parking spaces shall be landscaped with a
minimum of one tree, two and one-half (2-1/2) inches DBH (diameter at breast height), for every ten (10) parking spaces. These trees shall be placed in such a fashion as to provide shade and screening of the parking area. No more than twenty
(20) parking spaces will be located in a row without the provision of a nine (9) foot by eighteen (18) foot landscaped island. 
 Parking area driveways shall be designed according to the following requirements for vehicular access to a street: 
  

			
	 Type of Drive Way
	  	 Minimum Width in Feet

	 Two directions
	  	24 (35 maximum)
	 One-way
	  	12 (17 maximum)

  

	 	e.	 Truck Loading: Adequate shipping and loading facilities will be located on those sides of buildings which do not front on streets or the primary
entrance facades of adjacent buildings. Loading areas shall be screened from lateral view by a structural wall of similar or complementary materials as the building or a landscaped screen measuring a minimum of ten (10) feet

	 	
wide and six (6) feet high having a double row of staggered evergreens or similar screen planting materials. The loading space will be not less than twelve (12) feet wide, and of
sufficient length to insure that no vehicle, during loading or unloading, will extend over any property line, sidewalk, or parking lot circulation lane. All truck maneuvering must take place on site. Access to each loading space shall be located
with appropriate means of vehicular access to a street in a manner that will least interfere with traffic. Any space allocated as a loading space or access drive shall not be used for the storage of goods or inoperable vehicles or be included as
part of the space necessary to satisfy the off-street parking area requirements. Truck loading and unloading facilities shall comply with federal, state and local requirements if any. 

5.9 Storage Areas. Outdoor storage of materials and equipment will be permitted only in areas which do not front on streets, and
only if enclosed or screened by a wall, planting or other suitable barrier, providing year-round visual screening. Tanks for the above-ground storage of liquids or gases will be permitted to the rear of the building only and must be screened from
view by an approved architecturally treated barrier constructed with approved materials. 
 5.10 Sign Standards. Signage
will be strictly regulated to facilitate the easy identification of the business or product of the owner or occupant, to maximize visual quality, and to promote an image consistent with the general purposes of conditions stated in this Declaration.

 All building identification signs must be approved by WSC and WVEDA. All signs must conform to sign criteria of Three Springs Industrial and
Business Park as amended from time to time. Billboards or similar advertising signs are not permitted except for temporary signs advertising a lot for sale or lease. These temporary signs used for advertising a lot for sale or lease may not exceed
twenty-four (24) square feet in area. 
 5.11 Mechanical or Other Equipment. All mechanical equipment including air
handling units, condensers, compressors, 

 
ventilators, chimneys, stacks, ductwork, vents and conductors erected, used and installed on the property, if visible outside of any building, must be screened from view in a manner approved by
WSC and WVEDA. Roof-mounted mechanical equipment which projects vertically more than eighteen (18) inches above the roof or roof parapet when viewed from street level, is to be screened by an enclosure, which is designed to conform with the
building. No mechanical equipment is to be mounted on the wall surface of a building. 
 Vents, louvers, flashings and framed openings in the
wall surface are to be painted consistent with the color scheme of the building. 
 No tower, dish or antenna for the transmission or the
reception of any signals including but not limited to electro-magnetic or laser radiation shall be erected, used or maintained on the lot, if visible outside of any building, whether attached to an improvement or self-standing, without prior written
approval of WSC and WVEDA. 
 5.12 Waste Disposal and Storage. Adequate space for refuse containers and the required
loading spaces must be provided as part of the site development. All outdoor waste storage and loading areas and associated screening must be indicated on the final site plan and landscape plan submitted for the approval of WSC and WVEDA.

  

	 	a.	All refuse, if stored outside the building, will not be allowed to accumulate, must be disposed of on a regular basis and must be kept in closed, fire resistant,
sanitary containers especially made for refuse storage. Such containers must be totally enclosed and screened from view from the street and from adjoining properties. Refuse containers, in and of themselves, will not be considered adequate screening
devices. Refuse containers shall not be stored in front of building(s). 

  

	 	b.	No burial of waste material will be permitted on the project site. 

	 	c.	No lagoons or open vessels for liquid waste storage are permitted. 

  

	 	d.	Radioactive waste storage outside of a building is not permitted. Open burning of refuse or waste is prohibited. 

 

	 	e.	Employee picnic or recreational areas, if any, must be provided with adequate refuse containers and emptied regularly. 

5.13 Fences and Walls. Erection of security fences of any type around the perimeter of a property will be prohibited. Limited
utility fencing to enclose hazardous, dangerous or secure areas may be approved provided they are designed to be in harmony with the surroundings, using landscaping or other suitable screening devices which utilize an approved architecturally
treated barrier constructed with approved materials. Architecturally treated barriers and materials used shall be approved by WSC and WVEDA. Architecturally compatible walls, proposed as a design device to give architectural continuity to the area,
may be used with the approval of WSC and WVEDA. Walls must be made of high quality materials compatible with the building exterior walls. 
 5.14 Exterior Lighting. In order to minimize the trespass of light onto adjacent streets and properties, only lighting fixtures utilizing shielded or screened lamps and designed to control glare by
having a light cutoff feature shall be used for exterior lighting. An overall site lighting plan indicating the placement of lights, type of fixtures and pole heights must be submitted for approval as hereinbefore specified. Wiring for exterior
lighting fixtures shall be installed underground. Lighting shall be compatible and harmonious throughout the site and shall be in keeping with the design and function of the building. Flood lighting is not permitted as a source of general area
illumination. 
 5.15 Site Utility Service. All on-site utility lines are to be placed underground. The primary or
secondary power service and telephone service to the building should be placed underground from the utility company’s facilities in the street or adjacent right of way. Ground-mounted power transformers

 
shall be located only in the side or rear yards and must be screened from view with appropriate vegetative cover. Natural or manufactured gas, including but not limited to, (propane, nitrogen,
etc.) piping is to be located underground. Gas metering equipment should not be located in the front yard and should be screened from view where allowed. 
 5.16 Maintenance of Buildings and Grounds. Building exteriors, grounds, pavements, improvements and appurtenances will be kept in a safe, clean, neat, wholesome and well-repaired condition.
Property owners, lessees or building managers shall comply in all respects with governmental statutes, ordinances and regulations, health, police and fire requirements. Trash, debris or used materials are not permitted to accumulate on the property.
Lawn and landscaping areas are to be kept cut and trimmed and free of obnoxious weeds and deleterious growth. 
 5.17 Mineral
Reservations. Mineral, coal, oil and gas rights will be restricted to avoid the possibility of undermining structures or of unsightly exploitation of underground resources. No derrick or other structure designed for use in boring for oil or gas
shall be erected, placed or permitted upon any part of such premises, nor shall any oil, natural gas, petroleum, asphaltum, or hydrocarbon projects or minerals of any kind be produced or extracted therefrom. 

5.18 Nuisances. No animals, including but not limited to, horses, cattle, swine, goats, poultry, or fowl shall be kept on any lot.
No weeds, underbrush, or other unsightly growths shall be permitted to grow or remain upon the lots, and no refuse pile or unsightly objects shall be allowed to be placed or suffered to remain anywhere thereon. No lot shall be used in whole or in
part for the storage of any property or thing that will cause such lot to appear in an unclean or untidy condition or that will be obnoxious to the eye; nor shall any substance, thing, or material be kept upon any lot that will emit foul or
obnoxious odors, or that will cause any noise that will or might disturb the peace, quiet, comfort, or serenity of the occupants of surrounding property. In the event that any owner of any lot in Plan No.1 shall fail or refuse to keep such lot free
from weeds, underbrush, or refuse piles or other unsightly growth or objects, then WSC or its assignee and/or WVEDA or its assignee may enter upon such lands and remove the same at the expense of

 
the owner, which such entry shall not be deemed a trespass, and in the event of such a removal a lien shall arise and be created in favor of WSC and WVEDA and against such lot for the full amount
chargeable to such lot, and such amount shall be due and payable within thirty (30) days after demand is made therefor. 

5.19 Storm Water Detention. Storm water management is to be provided for each developed site. Post developed peak runoff shall be
reduced to predevelopment peak rates for 2, 10, and 25-year storm events of 24-hour duration. Site generated storm water runoff shall be determined with “Soil Conservation Service” methodology using average 24-hour precipitation values
contained in Appendix B of the then current West Virginia Erosion and Sediment Control Handbook for Developing Areas. Maintenance of storm water management facilities shall be the responsibility of the property owner. In the event a
facility is not adequately maintained, WSC or its assignee and/or WVEDA or its assignee shall have the right to maintain said facility at the expense of the owner or occupant. WSC and WVEDA shall have a lien upon such lot or lots to secure payment
of all such accounts. 
 ARTICLE VI RIGHTS, DUTIES AND RESPONSIBILITIES 

Once all lots within Plan No. 1 have either been sold or leased, WVEDA shall no longer have any duties or responsibilities under this Declaration.

 ARTICLE VII: VARIANCES AND ADJUSTMENTS 
 In order to protect and enhance the continuing development of the Three Springs Industrial and Business Park, enforcement rights will be held only by WSC and WVEDA, as defined in Article II. Requests for
variances or adjustments to these restrictive covenants including, but not limited to, the permitted uses set forth in section 4.1 and the prohibited uses set forth in section 4.2 will be considered by WSC and WVEDA on a case-by-case basis and
granted by WSC and WVEDA at their sole discretion. Approval of any variance or adjustment shall not be deemed to change, or generally waive, the covenants or restrictions herein contained, or to serve as precedent for any proposed future variances
or adjustments which may be requested. 

 ARTICLE VIII: PROVISIONS FOR MODIFICATION, AMENDMENT OR DELETION 

These restrictive covenants may be modified, amended, or deleted at any time by WSC and WVEDA for the purpose of further insuring the development of Plan
No. 1 as an area of high standards. Such modification, amendment, or deletion shall be binding upon all future purchasers, their respective heirs, executors, administrators, successors and assigns; provided, however, that each such
modification, amendment or deletion must be consented to in writing by the then existing lot owners, their successors or assigns which are determined by WSC and WVEDA to be directly, pecuniarily and adversely affected by the proposed modification,
amendment or deletion. 

 IN WITNESS WHEREOF, WEIRTON STEEL CORPORATION has caused this instrument to be
executed by its President and Chief Executive Officer, duly attested by its Secretary and Vice President of Law, the day and year first above written. 
  

									
		 		 		 	WEIRTON STEEL CORPORATION
					
	By:	 	 

	 		 	By:	 	 

	Its	 	Secretary and Vice President of Law	 		 	Its	 	President and Chief Executive Officer

  

					
	STATE OF WEST VIRGINIA	  	)	    	
		  	)	    	ss:
	COUNTY OF BROOKE	  	)	    	

 On this, the 20th day of March, 1997, before me, the undersigned Notary Public, personally appeared
Richard K. Riederer, who acknowledged himself to be the President and Chief Executive Officer of Weirton Steel Corporation a Delaware corporation, and that he, as such President and Chief Executive Officer and authorized to do so, executed
the foregoing instrument for the purposes therein contained by signing the name of the Weirton Steel Corporation, by himself as President and Chief Executive Officer. 
 IN WITNESS WHEREOF, I have hereunto set my hand and official seal. 
  

			
	 

	Notary Public

 My Commission
Expires:                                       
  
  

			
		  	 

	 PREPARED BY:
 Virgil G.
Thompson, Esq.
	  	
	Weirton Steel Corporation	  	
	400 Three Springs Drive	  	
	Weirton, WV 26062	  	

 STATE OF WEST VIRGINIA, COUNTY OF BROOKE, to-wit: 

The foregoing paper writing was this day, March 20, 1997 at 3:49 p.m. presented for record in my office, and thereupon, together with
the certificate thereto annexed, is admitted to record. 
 Teste: Sylvia J. Benzo Clerk, Brooke County Court 

 AMENDMENT TO 

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 

WEIRTON STEEL CORPORATION 
 AND 
 WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY

 THREE SPRINGS INDUSTRIAL AND BUSINESS PARK- PLAN NO. 1 

BROOKE COUNTY, WEST VIRGINIA 
 THIS AMENDMENT to the Declaration of Covenants, Conditions and Restrictions, of Weirton Steel Corporation Three Springs Industrial and Business Park-Plan No. 1 in Brooke County, West Virginia
(“Amendment”), is made this 12th day of
February, 1999, by Weirton Steel Corporation (hereinafter “WSC”) and the West Virginia Economic Development Authority (hereinafter “WVEDA”). 
 W I T N E S S E T H: 
 WSC prior to June 19,1997 was the owner
of a plan of lots located in Weirton, Brooke County, West Virginia, known as Three Springs Industrial and Business Park- Plan No. 1 (“Plan No. 1”), which is recorded in the Office of the Clerk of the County Commission of
Brooke County, West Virginia in Plat Book No. 3 at pages 55 and 55A; 
 WSC has recorded a Declaration of Covenants,
Conditions and Restrictions dated March 20, 1997 (the “Declaration”), applicable to Plan No. 1, which Declaration is recorded in the 

 
Office of the Clerk of the County Commission of Brooke County, West Virginia, in Deed Book No. 276 at pages 455 to 476; 

WSC conveyed Plan No. 1 to WVEDA by Deed dated June 19, 1997 which is recorded in the Office of the Clerk of the County
Commission of Brooke County, West Virginia, in Deed Book No. 277 at page 467; 
 The Declaration provides that it may be
amended by the filing of an Amendment to the Declaration with the consent of WSC and WVEDA; 
 WSC and WVEDA wish to amend the
Declaration to address obligations of the owners of lots within Plan No. 1 upon any damage to or destruction of improvements on any such lot, and to impose a deadline for completion of construction of improvements on a lot in Plan No. 1.

  

	I.	RECITALS: The foregoing Recitals are incorporated in and made a part of this Amendment. 

 

	II.	AMENDMENT OF DECLARATION: The Declaration is amended as follows: 

  

	 	A.	ARTICLE III, CONSTRUCTION OF IMPROVEMENTS, Section 3.3 is amended as follows: 

 

	 	1.	The Section is renamed “Approval; Completion of Construction”; 

  

	 	2.	The following sentence is added at the end of the current Section 3.3: 

 Construction consistent with the approval or conditional approval granted must be completed within eighteen (18) months of receipt of the approval or conditional approval. 

	 	B.	ARTICLE V, DEVELOPMENT STANDARDS, is amended by the addition of a Section 5.20, reading as follows: 

 

	 	5.20	Damage to or Destruction of Improvements. If all or any portion of the improvements constructed or installed on any lot within Plan No. 1 shall be
damaged or destroyed in whole or in part, the owner of such lot shall be required to, in the owner’s sole discretion, either repair or replace the improvements to the level approved under Section 3.3, or to clear all such damage or
destruction from the lot and restore the lot to its preconstruction condition, so that the lot will not detract from the appearance and value of Plan No. 1. If the owner shall fail to commence such repair, replacement and/or clearing and
restoration within thirty (30) days of the damage or destruction (or such later time as shall be. approved by WVEDA), and diligently work to completion thereafter, WVEDA shall have the right to go onto and clear and restore, or complete the
clearing and restoration of, the lot in the manner herein described, and the owner of the lot shall reimburse WVEDA, within thirty (30) days of receipt of a bill therefor, for all costs and expenses incurred by WVEDA in performing such clearing
and restoration work on behalf of the owner. 

  

	II	RATIFICATION OF DECLARATION. In all other respects the Declaration is unchanged and ratified as binding and enforceable on Plan No. I including all owners, tenants and
lessees of lots in Plan No. 1. 

 IN WITNESS WHEREOF, WSC and WVEDA have each caused this Amendment to
be executed and filed on the day and year first above stated, by the officers hereinafter stated. 
  

									
	ATTEST:	 		 	WEIRTON STEEL CORPORATION
					
	By:	 	 

	 		 	By:	 	 

					
	Its:	 	 Manager Economic Development
	 		 	Its:	 	Vice President of Law
				
		 		 		 	WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY
	By:	 	 

	 		 	By:	 	 

					
	Its:	 	 DEPUTY DIRECTOR
	 		 	Its:	 	Executive Director

			
	STATE OF WEST VIRGINIA	  	)
		  	)
	COUNTY OF BROOKE	  	)

 I, Cynthia A. Conchel, a Notary Public in and for the County and State aforesaid, do
hereby certify that WILLIAM R. KIEFER, as Vice President of Law, who signed the above writing bearing date, the
12th day of February, 1999, on behalf of WEIRTON STEEL
CORPORATION, a Delaware corporation, and acknowledged the said writing to be the act and deed of said corporation. 
 Given under my hand this 12th day of February, 1999. 
 My commission expires: October 12, 2004 

 

					
	 STATE OF WEST VIRGINIA
  

COUNTY OF Kanawha
	  	 )
 )

)
	  	

	  	  
	  	  

 I, Deborah J. Orcutt, a Notary Public in and for the County and State aforesaid, do
hereby certify that DAVID A. WARNER, as Executive Director, who signed the above writing bearing date, the
17th day of February, 1999, on behalf of WEST VIRGINIA
ECONOMIC DEVELOPMENT AUTHORITY, a West Virginia public corporation, and acknowledged the said writing to be the act and deed of said corporation. 
 Given under my hand this 17th day of February, 1999. 
 My commission expires: April 23, 2007 

 

			
	 Prepared by:

Virgil Thompson, Esq.
 Weirton Steel
Corporation
 400 Three Springs Drive

Weirton, WV 26062
	  	 

	  
	  
	  
	  

 STATE OF WEST VIRGINIA, COUNTY OF BROOKE, to-wit: 

The foregoing paper writing was this day, February 18, 1999 at 3:02 p.m. presented for record in my office, and thereupon, together
with the certificate thereto annexed, is admitted to record. 
 Teste: Sylvia J. Benzo Clerk, Brooke County Court

 AMENDMENT NO. 2 

TO 

DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS 

WEIRTON STEEL CORPORATION 
 AND 
 WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY

 THREE SPRINGS INDUSTRIAL AND BUSINESS PARK-PLAN NO. 1 

BROOKE COUNTY WEST VIRGINIA 
 THIS AMENDMENT NO. 2 to the Declaration of Covenants, Conditions and Restrictions of Weirton Steel Corporation, Three Springs Industrial and Business Park-Plan No. 1 in Brooke County, West Virginia
(“Amendment 2”), is made as of this 1st day of May, 2003, Weirton Steel Corporation (hereinafter(“WSC”) and the West Virginia Economic Development Authority (hereinafter “WVEDA”). 

WITNESSETH: 
 WSC prior to June 19, 1997 was the owner of a plan of lots located in Weirton, Brooke County, West Virginia, known as Three Springs Industrial and Business Park-Plan. No. 1 (“Plan
No. 1”), which is recorded in the Office of the Clerk of the County Commission of Brooke County, West Virginia in Plat Book No.3 at pages 55 and 55A; 
 WSC has recorded a Declaration of Covenants, Conditions and Restrictions dated March 20, 1997 (the “Declaration”), applicable to Plan No. 1, which Declaration is recorded in the

 
Office of the Clerk of the County Commission of Brooke County, West Virginia, in Deed Book No. 276 at pages 455 to 476; 

WSC conveyed Plan No. 1 to WVEDA by Deed dated June 19, 1997 which is recorded in the Office of the Clerk of the County
Commission of Brooke County, West Virginia, in Deed Book No. 277 at page 467; 
 The Declaration provides that it may be
amended by the filing of an amendment to the Declaration with the consent of WSC and WVEDA and the first amendment to the Declaration (“Amendment”) dated February 12, 1999 was filed and recorded in the Office of the Clerk of
the County Commission of Brooke County, West Virginia in Deed Book No. 283 at page 221; 
 The Declaration provides that
realty adjacent to Plan No. 1 owned or hereafter owned by WSC may be added to Plan No. 1 and subject to the Declaration upon the recording of a “Notice of Addition to Land” as required by Section 2.4 of the Declaration and a
Notice of Addition to Land” dated September 23, 1999 was filed and recorded in the Office of the Clerk of the County Commission of Brooke County, West Virginia in Deed Book No. 285 at page 220 (“Notice of Addition”);
and 
 WSC and WVEDA wish to further amend the Declaration to address additional prohibited uses within Plan No. 1 and land
added by the Notice of Addition and to address certain other matters: 
 1. RECITALS: The foregoing Recitals are incorporated in
and made a part of this Amendment. 

 2. AMENDMENT OF DECLARATION: The Declaration is amended as follows: 

A. ARTICLE IV, REGULATION OF OPERATIONS AND USES, Section 4.2 captioned: “PROHIBITED USES” is amended as follows:

  

	 	1.	The following sentences are added at the end of the current Section 4.2: 

 Notwithstanding the fact that certain video lottery machines or other gambling, gaming or lottery devices may not be prohibited by federal, state or local law, video lottery machines of any kind or nature
whatsoever or any other gambling, gaming or lottery devices are not permitted to be installed or used within Plan No. 1 or land added by the Notice of Addition by any current or future property owner. The installation and or use of video
lottery machines of any kind or nature whatsoever or any other gambling, gaming or lottery devices is strictly prohibited within Plan No. 1 or land added by the Notice of Addition. 

 

	 	2.	The following are additional uses which are strictly prohibited within Plan No.l or land added by the Notice of Addition: 

 

	 	a.	Adult Entertainment Establishment: defined as any theater, magazine store, book store, nude model studio, sexual encounter center, escort service, adult cabaret, adult
motel or other establishment which at any time displays motion pictures, video tapes, books, magazines or other forms of live entertainment of a sexual nature or content, including, but not limited to, the display of any motion
picture, video tape, book, magazine, dancing or any other form of live “entertainment” which is “X-rated”, has been judged to be pornographic or obscene, depicts any live or simulated sex act. The prohibition herein shall not
apply to pay per view or cable shown within a hotel room. 

  

	 	b.	Any refining, smelting or mining operation. 

  

	 	c.	Trailer court. 

  

	 	d.	Junkyard. 

  

	 	e.	Car wash. 

  

	 	f.	Shooting gallery. 

  

	 	g.	Permanent outdoor flea market. 

  

	 	h.	Head Shop. 

  

	 	i.	Drug rehabilitation center or “halfway” house. 

  

	 	j.	Massage parlor. 

  

	 	k.	Residential mental health facilities 

  

	 	l.	Multi-tenant-self storage facilities 

 B. ARTICLE VII, VARIANCES AND ADJUSTMENTS, is amended as follows: 

 

	 	1.	The following sentence is added at the end of Article VII, captioned, “Variances and Adjustments”. 

Requests for variances or adjustments may be granted by WSC and WVEDA without the consent of the then existing lot owners, their
successors or assigns, or their mortgagees of property within Plan No. 1 or land added by the Notice of Addition, and/or, without the consent of any other person or party. During the five (5) years following the date of this Amendment 2, WVEDA
and WSC shall be permitted to grant only one (l) variance to allow a hotel as a permitted use. In addition, for a period of five (5) years following the granting of a variance allowing a hotel as a permitted use, WVEDA and WSC shall not grant
any additional variance allowing an additional hotel as a permitted use. 
 3. RATIFICATION OF DECLARATION. In all other
respects the Declaration including the Amendment and the Notice of Addition is unchanged and ratified as binding and enforceable on Plan No. 1 and the land added by the Notice of Addition including all owners, tenants and lessees of lots in
Plan No. 1 and the land added by the Notice of Addition. 
 IN WITNESS WHEREOF, WSC and WVEDA have each caused this
Amendment No. 2 to be executed and filed on the day and year first above stated, by the officers hereinafter stated. 
  

							
	ATTEST:	 	WEIRTON STEEL CORPORATION
				
	By:	 	

	 	By:	 	

	Name:	 	William R. Kiefer	 	Name:	 	John H. Walker
	Its:	 	Secretary	 	Its:	 	President and Chief Executive Officer
		 		 		 	
			
		 		 	 WEST VIRGINIA ECONOMIC
 DEVELOPMENT AUTHORITY

				
	By:	 	

	 	By:	 	

	Name:	 	DAVID FONTALBERT	 	Name:	 	David A. Warner
	Its:	 	ASSOCIATE DIRECTOR	 	Its:	 	Executive Director

					
	 STATE OF WEST VIRGINIA
	 	 	)	  
		 	 	)	  
	 COUNTY OF BROOKE
	 	 	)	  

 I, SUSAN B. KERNEN, a Notary
Public in and for the County and State aforesaid, do hereby certify that John H. Walker, as President and Chief Executive Officer, who signed the above writing bearing date, the 1st day of May, 2003, on behalf of Weirton Steel Corporation, a
Delaware corporation, and acknowledged the said writing to be the act and deed of said corporation. 
  

					
	 Given under my hand this
1st day of May, 2003
	 		 	
			
	 My commission expires: May 26, 2009
	 		 	

	  
 STATE OF WEST VIRGINIA
	 	)	 
		 	)	 
	COUNTY OF KANAWHA	 	)	 

 I, Beverly S. Dolin, a Notary Public in and for the County and State aforesaid, do hereby certify
that David A. Warner, as Executive Director, who signed the above writing bearing date, the 1st day of May, 2003, on behalf of West Virginia Economic Development Authority, a West Virginia public corporation, and acknowledged the said writing
to be the act and deed of said corporation. 
 Given under my hand this 2nd day of
May, 2003. 
 My commission expires: April 23, 2007 

 

			
	 Prepared by:
 Virgil Thompson,
Esq.
 Weirton Steel Corporation
 400
Three Springs Drive
 Weirton, WV 26062
	  	

 STATE OF WEST VIRGINIA, COUNTY OF BROOKE, to-wit: 

The foregoing paper writing was this day, May 6, 2003 at 4:17 p.m. 

Presented for record in my office, and thereupon, together with the certificate hereto annexed, is admitted to record. 

Teste:

 Clerk, Brooke County Clerk 

 64-5653 
 AMENDMENT NO. 3 
 TO 

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 

WEIRTON STEEL CORPORATION 
 AND 
 WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY

 THREE SPRINGS INDUSTRIAL AND BUSINESS PARK-PLAN NO.1 

BROOKE COUNTY, WEST VIRGINIA 
 THIS AMENDMENT NO. 3 to the Declaration of Covenants, Conditions and Restrictions of Weirton Steel Corporation, Three Springs Industrial and Business Park-Plan No. 1 in Brooke County, West Virginia
(“Amendment No. 3”), is made this second day of January, 2008, by Weirton Steel Corporation Liquidating Trust, as successor to the chapter 11 debtor; Weirton Steel Corporation, a Delaware corporation, (hereinafter
“WSC”) and the West Virginia Economic Development Authority (hereinafter “WVEDA”). 

WITNESSETH: 
 Prior to June 19,1997, WSC was the owner of a plan of lots containing approximately acres located in Weirton, Brooke County, West Virginia, known as Three Springs Industrial and Business Park-Plan
No. 1 (“Plan No. 1”), which is recorded in the Office of the Clerk of the County Commission of Brooke County, West Virginia in Plat Book No.3, at pages 55 and 55A; 

WSC has recorded a Declaration of Covenants, Conditions and Restrictions dated March 20,1997 (the
“Declaration”), applicable to Plan No. 1, which Declaration is recorded in the said Clerk’s Office in Deed Book No. 276, at pages 455 through 476; 

WSC conveyed Plan No. 1 to WVEDA by Deed dated June 19,1997, which is recorded in said Clerk’s office in Deed Book
No. 277, at page 467; 
 The Declaration has been amended by the filing of an amendment to the Declaration with the consent
of WSC and WVEDA pursuant to (a) the first Amendment to the Declaration (“Amendment No. 1”) dated February 12, 1999 filed and recorded in said Clerk’s Office in Deed

 
Book No. 283 at page 221 and (b) the Amendment No. 2 to the Declaration (“Amendment No. 2”) dated May 1,2003 filed and recorded in said Clerk’s
Office in Deed Book No. 302, at page 425 (the Declaration as amended by Amendment No. 1, Amendment No. 2 and this Amendment No.3 is hereinafter referred to as the Declaration); 

WSC filed a voluntary petition for relief under chapter 11 to title 11 of the United States Code, 11 U.S.C. §§101, et seq. in
the United States Bankruptcy Court for the Northern District of West Virginia (the “Bankruptcy Court”) on May 19, 2003 and docketed as Case No. 05:03-BK-01802. WSC entered into an agreement with ISG Weirton, Inc. and
International Steel Group, Inc. (collectively, “ISG”), dated as of February 25,2004 (the “ISG Agreement”), pursuant to the terms of which WSC agreed to sell to ISG, and ISG agreed to purchase from WSC, substantially all of
the assets of WSC except for certain excluded assets. The Bankruptcy Court entered an order approving the ISG Agreement and the sale of assets contemplated therein and the closing on the sale of assets to ISG pursuant to the terms of the ISG
Agreement occurred on or about April 30,2004. 
 WSC’s corporate headquarters were located adjacent to Plan 1 and WSC
maintained an interest in the development and use of the land surrounding its corporate headquarters. WSC has ceased operations and no longer maintains its corporate headquarters on Plan 1, and, therefore, WSC no longer has an interest in the use
and development of such land; 
 The Declaration provides that WSC and WVEDA shall oversee and approve all covenants, conditions
and restrictions on Plan 1 pursuant to the Declaration; and 
 WSC and WVEDA agree that it is in the best interest of both
parties for WVEDA to assume and have sole responsibility over the oversight and approval of the covenants, conditions and restrictions on Plan 1 pursuant to the Declaration. 
 WSC and WVEDA agree that WSC makes no representation or warranty concerning any right, title or interest of WSC in, under and to the Declaration and WSC does hereby remise, release and quitclaim any
right, title, interest, property, claim and demand whatsoever of WSC without any warranty whatsoever and WVEDA shall release and hold harmless WSC from and against any and all claims, suits, penalties, liabilities, and expenses (including, without
limitation, legal fees) of WVEDA arising out of or resulting from this Amendment, the Declaration or any rights, obligations and liabilities thereunder. 
 Therefore, the Declaration shall be amended to vest sole responsibility of the oversight and approval of the covenants, conditions and restrictions on Plan 1 in WVEDA under the Declaration. 

1. RECITALS: The foregoing Recitals are incorporated in and made a part of this Amendment. 

 2. AMENDMENT OF DECLARATION: The Declaration is amended as follows: 

a. Section 2.2 of the Declaration is hereby deleted in its entirety and replaced with the following: 

2.2 Duration. The covenants herein contained in this Declaration shall run with the subject property for all
purposes and shall bind all parties and persons claiming under them until December 31, 2020, at which time said covenants shall be automatically extended for successive periods of ten (10) years, unless by a vote of the majority of the
then owners of said lots, it is agreed to change or terminate said covenants in whole, or in part, provided that WVEDA gives its written consent to any such change or termination which consent may be arbitrarily withheld by WVEDA. 

b. Section 2.3 of the Declaration is hereby deleted in its entirety and replaced with the following: 

2.3 Addition of Other Realty. At any time during the pendency of this Declaration, WVEDA may add all or a
portion of any real property adjacent to Plan No. 1 now, or hereafter, owned by WVEDA to the subject property, upon recording of a notice of addition of real property containing at least the provisions set forth in Section 2.4, the provisions
of this Declaration specified in said notice shall apply to such added real, property in the same manner as if it were originally covered by this Declaration. Thereafter, to the extent that this Declaration is made applicable thereto, the rights,
powers, and responsibilities of WVEDA and the owners and occupants of lots within such added real property shall be the same as in the case of the real property described in Article 1. 

c. Subsection (d) of Section 2.4 of the Declaration is hereby deleted in its entirety and replaced with the
following: 
 (d) Such other or different covenants, conditions, and restrictions as WVEDA shall, in its
discretion, specify to regulate and control the use, occupancy, and improvement of such added real property. 

d. Section 2.5 of the Declaration is hereby deleted in its entirety and replaced with the following: 

2.5 Respective Enforcement Rights. Enforcement rights will be held only by WVEDA. If the parties hereto, or
any of them, shall violate or attempt to violate, any of the covenants herein, WVEDA shall have the right to proceed at law or in equity to compel compliance with the terms hereof or to prevent the 

 violation or breach of any such terms. In addition to the foregoing right, WVEDA shall have
the right, whenever there shall have been built on any lot any structure which is in violation of these restrictions, to enter upon the property where such violation of these covenants, conditions, reservations and restrictions exists and summarily
abate or remove the same at the expense of the owner, and any such entry and abatement or removal shall not be deemed a trespass. WVEDA may assign its enforcement rights to an entity who may be engaged to manage the Three Springs Industrial and
Business Park or an association of lot owners of Plan No. 1. 
 Should WVEDA employ counsel to enforce any of the
foregoing covenants, conditions, reservations or restrictions or re-entry by reason of such breach, all costs incurred in such enforcement, including a reasonable fee for counsel, shall be paid by the owner of such lot or lots and WVEDA shall have a
lien upon such lot or lots to secure payment of all such accounts. 
 Should the owner fail, neglect, or refuse to satisfy and
discharge any lien arising hereunder within thirty (30) days, WVEDA shall have the right to interest on such liens at the rate of ten (10) percent per annum, and shall be entitled to receive all costs of collection, including a reasonable
attorney’s fee. 
 The breach of any of the foregoing covenants, conditions, reservations or restrictions contained herein,
shall not defeat or render invalid the lien of any mortgage made in good faith for value as to any lot or lots or portions of lots in Plan No. 1, but these covenants, conditions, reservations and restrictions shall be binding upon and effective
against any such mortgagee or owner thereof whose title thereto or whose grantor’s title is or was acquired by foreclosure, or otherwise. 
 No delay or omission on the part of WVEDA in exercising any rights, power, or remedy herein provided, in the event of any breach of the covenants, conditions, reservations or restrictions herein
contained, shall be construed as a waiver thereof or acquiescence therein, and no right of action shall accrue nor shall any action be brought or maintained by anyone whatsoever against WVEDA for or on account of its failure to bring any action on
account of any breach of these covenants, conditions, reservations or restrictions, or for imposing restrictions herein which may be unenforceable by WVEDA. 
 Each and every one of the covenants, restrictions, reservations, and servitudes contained herein shall be considered to be an independent and separate covenant and agreement. 

e. Section 3.1 of the Declaration is hereby deleted in its entirety and replaced with the following: 

 3.1 Approval of Plans Required. To assure architectural and
landscaping integrity, no construction, grading, regrading, addition or alteration (except to the interior of a building), or change in use is permitted without the prior submission of plans to WVEDA and the written approval of WVEDA as detailed in
this Article. 
 Prior approval by WVEDA will be required of a user’s development plans and any contemplated building
alterations or additions. Development plans shall be submitted over the authorized signature of the owner or occupant, or both of the lot or the authorized agent thereof. Submitted development plans shall be in such form and shall contain such
information as may be required by WVEDA but shall contain the following information at a minimum: 
 a. A site
development and grading plan of the lot showing the nature, kind, shape, composition and location of all main and accessory structures with respect to the particular lot and with respect to the structures on adjoining lots. Front, rear and side
setback lines must be designated on the site plan. 
 b. A building elevation plan showing the height and bulk of
structures; exterior building materials, colors and textures to be used, and the height and bulk of any roof-mounted mechanical equipment. Any changes in approved plans must be similarly submitted to and approved by WVEDA. 

c. A traffic circulation and building service plan showing the location of vehicular access onto the site, the number and
location of all parking spaces and driveways on the lot, and all truck loading spaces. 
 d. A utility plan
showing on-site utility alignments and storm drainage systems including any storm water detention or retention systems. 
 e. A landscaping plan for the particular lot showing the location and nature of all landscaping, as well as provisions for other open space; paving, fences and walls planned for the site; and the location
of refuse or storage areas. 
 f. A plan for the location of signs indicating the contemplated display of signs,
including copy, type, color and materials of letters and method of illumination. 
 g. A lighting plan indicating
the method(s) exterior lighting. 
 h. An architectural rendering of the proposed building. 

 These plans may be combined together to simplify the applicant’s submittal as long as
the drawings are acceptable to WVEDA. The applicant shall submit seven (7) copies of all development plans. 
 f.
Section 3.2 of the Declaration is hereby deleted in its entirely and replaced with the following: 
 3.2 Basis for Approval. In reviewing plans submitted, WVEDA will be concerned with the safety and convenience of traffic movement both within and outside the lot, its relationship to access
streets, as well as to the harmonious and beneficial relationship of structures and uses on the lot with other lots in Plan No. 1. Approval will be based, among other things, upon compliance with the Development Standards incorporated in
Article V including: the adequacy of lot dimensions; adequacy of structural design, conformity and harmony of external design with neighboring structures; effect of location and use of proposed
: improvements upon neighboring lots; proper facing of main
elevation with respect to nearby streets; the adequacy of screening for mechanical, air-conditioning, or other roof-top installations; and conformity of the plans to the purpose and general plan and intent of this Declaration. 

Except as otherwise provided in this Declaration, WVEDA shall have the right to disapprove any plans submitted hereunder on any reasonable
grounds including, but not limited to the following: 
  

	 	a.	Failure to comply with any of the restrictions set forth in this Declaration; 

 

	 	b.	Failure to include information in such plans as may have been reasonably requested by WVEDA; 

 

	 	c.	Objection to the exterior design, the appearance of materials, or materials employed in any proposed structure; 

 

	 	d.	Objection on the ground of incompatibility of any proposed structure or use with existing structures or uses upon other lots, or other property in the vicinity of the
subject property, 

  

	 	e.	Objection to the location of any proposed structure with reference to other lots, or other property in the vicinity; 

 

	 	f.	Objection to the grading or landscaping plan for the lot; 

  

	 	g	 Objection to the color scheme, finish, proportions, styles of 

	 	
architecture, height, bulk, or appropriateness of any structure; 

  

	 	h.	Objection to the number or size of parking spaces, or to the design of the parking area; 

 

	 	i.	Any other matter that, in the judgment of WVEDA would render the proposed improvements or use inharmonious with the general plan for improvement of the subject property
or with improvements located upon other lots or other property in the vicinity. 

 h.
Section 3.3 of the Declaration is hereby deleted in its entirety and replaced with the following: 
 3.3
Approval. WVEDA may approve plans as submitted, or as altered or amended, or may grant approval subject to specific conditions. Upon approval or conditional approval by WVEDA of any plans submitted, one copy of the approved
plans bearing a statement of WVEDA’s approval together with any conditions, shall be retained permanently by WVEDA and by the applicant. Construction consistent with the approval or conditional approval granted must be completed within eighteen
(18) months of receipt of the approval or conditional approval. 
 i. Section 3.4 of the Declaration is
hereby deleted in its entirety and replaced with the following: 
 3.4 Construction Without
Approval. If any improvement shall be erected, placed, or maintained upon any lot, or any new use commenced upon any lot, other than in accordance with the approval by WVEDA pursuant to the provisions of this Article III, such
alteration, erection, placement, maintenance, or use shall be deemed to have been undertaken in violation of this Declaration, and upon written notice from WVEDA, any such improvement so altered, erected, placed, maintained, or used
upon any lot in violation of this Declaration shall be removed or altered so as to conform to this Declaration, and any such use shall cease or be altered so as to conform to this Declaration. Should such removal or alteration or cessation or
amendment of use not be accomplished within thirty (30) days after receipt of such notice, then the party in breach of this Declaration shall be subject to the enforcement procedures set forth in Article II 

j. Article IV of the Declaration is hereby deleted in its entirety and restated to read as follows: 

ARTICLE IV: REGULATION OF OPERATIONS AND USES 

 4.1 Permitted Uses. Plan No. 1 shall be utilized for the
purpose of promoting the expansion of industrial, commercial, manufacturing and tourism activity in West Virginia. Specific permitted uses of Plan No. 1 shall be determined on a case-by-case basis by the WVEDA and its successors and assigns in
their sole discretion. 
 4.2 Prohibited Uses. Uses which create objectionable attributes
including, but not limited to noise, odor, vibration, fumes, flare, heat, hazard, radiation or waste problems are prohibited. Any use which is prohibited by federal, state or local law is prohibited. Notwithstanding the fact that certain video
lottery machines or other gambling, gaming or lottery devices may not be prohibited by federal, state or local law, video lottery machines of any kind or nature whatsoever or any other gambling, gaming or lottery devices are not permitted to be
installed or used within Plan No. 1 or land added by the Notice of Addition by any current or future property owner. The installation and or use of video lottery machines of any kind or nature whatsoever or any other gambling, gaming or lottery
devices is strictly prohibited within Plan No. 1 or land added by the Notice of Addition. In addition, the following uses are strictly prohibited: 
  

	 	1.	Adult Entertainment Establishment: defined as any theater, magazine store, book store, nude model studio, sexual encounter center, escort service, adult cabaret, adult
motel or other establishment which at any time displays motion pictures, video tapes, books, magazines or other forms of live entertainment of a sexual nature or content, including, but not limited to, the display of any motion
picture, video tape, book, magazine, dancing or any other form of live “entertainment” which is “X-rated”, has been judged to be pornographic or obscene, depicts any live or simulated sex act. The prohibition herein shall not
apply to pay per view or cable shown within a hotel room. 

  

	 	2.	Any refining, smelting or mining operation. 

  

	 	3.	Trailer court. 

  

	 	4.	Junkyard. 

  

	 	5.	Car wash. 

  

	 	6.	Shooting gallery. 

  

	 	7.	Permanent outdoor flea market. 

  

	 	8.	Head Shop. 

  

	 	9.	Drug rehabilitation center or “halfway” house. 

  

	 	10.	Massage parlor. 

  

	 	11.	Residential mental health facilities. 

  

	 	12.	Multitenant self storage facilities. 

 WVEDA and its successors or assigns reserve the right in their sole
discretion to determine which specific uses are prohibited hereunder. 
 k. Section 5.3 of the Declaration
is hereby deleted in its entirety and replaced with the following: 
 5.3 Building Height Limitations.
Building height limits shall be described as occurring within a 45° angle of bulk plane or a maximum of sixty (60) feet above finished grade, whichever is more restrictive. Bulk plane shall be defined as an imaginary inclined plane
rising over a lot, drawn at a 45° angle from the vertical, the bottom side of which is coincidental with the lot line(s) of the lot, and which, together with a maximum height of sixty (60) feet above finished grade, delineates the maximum
bulk of any improvement which may be constructed on the lot. Additional height may be permitted if specifically approved in writing by WVEDA. The height of any roof over any occupied floor shall not rise above this plane except that in the cases of
buildings with special requirements, additional height may be permitted by WVEDA, Such special requirements shall not include habitable space. 
 1. Section 5.4 of the Declaration is hereby deleted in its entirety and replaced with the following: 
 5.4 Construction Materials. To establish and maintain the character and property values for all developed lots within Plan No. 1, quality materials must be utilized in the construction of
all buildings. Building materials will be judged and approved by WVEDA on a case-by-case basis. Factors to be considered by WVEDA include: the overall design of the building(s); its compatibility with existing and previously approved structures
including scale, color, and texture of the building in harmony with the design of other existing or approved structures; and, the overall objectives of quality development described elsewhere in these covenants. Plans that provide for metal-clad
buildings will be approved only on the condition that such buildings are constructed so as not to have the appearance of a pre-engineered metal building, are designed by an architect, and are specially approved in writing by WVEDA. 

m. Subclause 5.8(a)(4) of the Declaration is hereby amended and restated to read as follows: 

 

	 	4.	Other Uses - The space provided for parking must satisfy generally accepted parking guidelines for that use and be approved by WVEDA in order to insure compliance with
federal, state and local guidelines. 

 n. Section 5.10 of the Declaration is hereby deleted in its entirety
and replaced with the following: 
 5.10 Sign Standard. Signage will be strictly regulated to
facilitate the easy identification of the business or product of the owner or occupant, to maximize visual quality, and to promote an image consistent with the general purposes of conditions stated in this Declaration. 

All building identification signs must be approved by WVEDA. All signs must conform to sign criteria of Three Springs Industrial and
Business Park as amended from time to time. Billboards or similar advertising signs are not permitted except for temporary signs advertising a lot for sale or lease. These temporary signs used for advertising a lot for sale or lease may not exceed
twenty-four (24) square feet in area. 
 o. Section 5.11 of the Declaration is hereby deleted in its
entirety and replaced with the following: 
 5.11 Mechanical or Other Equipment. All mechanical
equipment including air handling units, condensers, compressors, ventilators, chimneys, stacks, ductwork, vents and conductors erected, used and installed on the property, if visible outside of any building, must be screened from view in a manner
approved by WVEDA. Roof-mounted mechanical equipment which projects vertically more than eighteen (18) inches above the roof or roof parapet when viewed from street level, is to be screened by an enclosure, which is designed to conform with the
building. No mechanical equipment is to be mounted on the wall surface of a building. 
 Vents, louvers, flashings and framed
openings in the wall surface are to be painted consistent with the color scheme of the building. 
 No tower, dish or antenna for
the transmission or the reception of any signals including but not limited to electro-magnetic or laser radiation shall be erected, used or maintained on the lot, if visible outside of any building, whether attached to an improvement or
self-standing, without prior written approval of WVEDA. 
 q. Section 5.12 of the Declaration is hereby
deleted in its entirety and replaced with the following: 
 5.12 Waste Disposal and Storage.
Adequate space for refuse containers and the required loading spaces must be provided as part of the site development. All outdoor waste storage and loading areas and associated 

 screening must be indicated on the final site plan and landscape plan
submitted for the approval of WVEDA. 
  

	 	a.	All refuse, if stored outside the building, will not be allowed to accumulate, must be disposed of on a regular basis and must be kept in closed, fire resistant,
sanitary containers especially made for refuse storage. Such containers must be totally enclosed and screened from view from the street and from adjoining properties. Refuse containers, in and of themselves, will not be considered adequate screening
devices. Refuse containers shall not be stored in front of building(s). 

  

	 	b.	No burial of waste material will be permitted on the project site. 

  

	 	c.	No lagoons or open vessels for liquid waste storage are permitted. 

  

	 	d.	Radioactive waste storage outside of a building is not permitted. Open burning of refuse or waste is prohibited. 

 

	 	e.	Employee picnic or recreational areas, if any, must be provided with adequate refuse containers and emptied regularly. 

r. Section 5.13 of the Declaration is hereby deleted in its entirety and replaced with the following: 

5.13 Fences and Walls. Erection of security fences of any type around the perimeter of a property will be
prohibited. Limited utility fencing to enclose hazardous, dangerous or secure areas may be approved provided they are designed to be in harmony with the surroundings, using landscaping or other suitable screening devices which utilize an approved
architecturally treated, barrier constructed with approved materials. Architecturally treated barriers and materials used shall be approved by WVEDA. Architecturally compatible walls, proposed as a design device to give architectural continuity to
the area, may be used with the approval of WVEDA. Walls must be made of high quality materials compatible with the building exterior walls. 
 s. Section 5.18 of the Declaration is hereby deleted in its entirety and replaced with the following: 
 5.18 Nuisances. No animals, including but not limited to, horses, cattle, swine, goats, poultry, or fowl shall be kept on any lot. No weeds, underbrush, or other unsightly growths shall be
permitted to grow or remain upon the lots, and no refuse pile or unsightly objects shall be allowed to be placed or 

 
suffered to remain anywhere thereon. No lot shall be used in whole or in part for the storage of any property or thing that will cause such lot to appear in an unclean or untidy condition or that
will be obnoxious to the eye; nor shall any substance, thing, or material be kept upon any lot that will emit foul or obnoxious odors, or that will cause any noise that will or might disturb the peace, quiet, comfort, or serenity of the occupants of
surrounding property. In the event that any owner of any lot in Plan No. 1 shall fail or refuse to keep such lot free from weeds, underbrush, or refuse piles or other unsightly growth or objects, then WVEDA or its assignee may enter upon such
lands and remove the same at the expense of the owner, which such entry shall not be deemed a trespass, and in the event of such a removal a lien shall arise and be created in favor of WVEDA and against such lot for the full amount chargeable to
such lot, and such amount shall be due and payable within thirty (30) days after demand is made therefor. 

t. Section 5.19 of the Declaration is hereby deleted in its entirety and replaced with the following: 

5.19 Storm Water Detention. Storm water management is to be provided for each developed site. Post developed
peak runoff shall be reduced to predevelopment peak rates for 2,10, and 25-year storm events of 24-hour duration. Site generated storm water runoff shall be determined with “Soil Conservation Service” methodology using average 24-hour
precipitation values contained in Appendix B of the then current West Virginia Erosion and Sediment Control Handbook for Developing Areas. Maintenance of storm water management facilities shall be the responsibility of the property owner. In
the event a facility is not adequately maintained, WVEDA or its assignee shall have the right to maintain said facility at the expense of the owner or occupant. WVEDA shall have a lien upon such lot or lots to secure payment of all such accounts.

 u. Article VI of the Declaration is hereby deleted in its entirety. 

v. Article VII of the Declaration is hereby deleted in its entirety and replaced with the following: 

ARTICLE VI: VARIANCES AND ADJUSTMENTS 
 In order to protect and enhance the continuing development of the Three Springs Industrial and Business Park, enforcement rights will be held only by WVEDA, as defined in Article II. Requests for
variances or adjustments to these restrictive covenants including, but not limited to, the prohibited uses set forth in section 4.2 will be considered by WVEDA on a case-by-case basis and granted by WVEDA at its sole discretion. Approval of any
variance or adjustment shall not 

 be deemed to change, or generally waive, the covenants or restrictions herein contained, or
to serve as precedent for any proposed future variances or adjustments which may be requested. Requests for variances or adjustments may be granted by WVEDA without the consent of the then existing lot owners, their successors or assigns, or their
mortgagees of property within Plan No. 1 or land added by the Notice of Addition, and/or without the consent of any other person or party. 
 w. Article VIII of the Declaration is hereby deleted in its entirety and replaced with the following: 
 ARTICLE VII: PROVISIONS FOR MODIFICATION, AMENDMENT OR DELETION 

These restrictive covenants may be modified, amended or deleted at any time by WVEDA for the purpose of further insuring the development
of Plan No. 1 as an area of high standards. Such modification, amendment, or deletion shall be binding upon all future purchasers, their respective heirs, executors, administrators, successors and assigns; provided, however, that each such
modification, amendment or deletion must be consented to in writing by the then existing lot owners, their successors or assigns which are determined by WVEDA to be directly, pecuniarily and adversely affected by the proposed modification, amendment
or deletion. 
 x. A new Article VIII is hereby added to the Declaration and shall read as follows: 

ARTICLE VIII: CITY OF WEIRTON UNIFIED DEVELOPMENT ORDINANCE 

The use, development and improvement of all lots and building sites in Plan No. 1 shall comply with the terms of the Unified
Development Ordinance of the City of Weirton, West Virginia, as amended. 
 3. RATIFICATION OF DECLARATION. In all other
respects the Declaration including the Amendments and the Notices of Addition are unchanged and ratified as binding and enforceable on Plan No. 1 and the land added by the Notices of Addition including all owners, tenants and lessees of lots in
Plan No, 1 and the land added by the Notices of Addition. 
 4. QUIT-CLAIM AND HOLD HARMLESS. WSC does hereby remise, release
and quitclaim any right, title, interest, property, claim and demand whatsoever of WSC without any warranty whatsoever and WVEDA shall release and hold harmless WSC from and against any and all claims, suite, penalties, liabilities, and expenses
(including, without limitation, legal 

 fees) of WVEDA arising out of or resulting from this Amendment, the Declaration or any rights, obligations
and liabilities thereunder. 
 [Remainder of page intentionally left blank; signature page follows] 

					
	STATE OF OREGON	  	)	  	

		  	)	  	
	COUNTY OF Illegible	  	)	  	

 I, LORI HANCOCK, a Notary Public in and for the
County and State aforesaid, do hereby certify that Robert C. Fletcher, as Liquidating Trustee, who signed the above writing bearing date, the second day of January, 2008, on behalf of Weirton Steel Corporation Liquidating Trust, a successor
to Weirton Steel Corporation, a Delaware corporation, and acknowledged the said writing to be the act and deed of said corporation. 
 Given under my hand this second day of January, 2008. 
 My commission
expires: November 26, 2011 
  

					
	STATE OF WEST VIRGINIA	  	)	  	
		  	)	  
	COUNTY OF KANAWHA	  	)	  	

 I, Beverly S. Dolin, a Notary Public in and for the County and State
aforesaid, do hereby certify that David A. Warner, as Executive Director, who signed the above writing bearing date, the
10th day of January, 2008, on behalf of West Virginia Economic Development Authority, a West Virginia public corporation, and acknowledged the said writing to be the act and deed of said corporation.

  

			
	Given under my hand this 10th day of January, 2008.	  	

 
	  
 My commission expires: April 23, 2017
	  

 This instrument was prepared by and upon recordation should be returned to Amy R. King, Esquire, Spilman
Thomas & Battle, PLLC, Post Office Box 273, Charleston, West Virginia 25321. 

					
		  	

	  	
			
	

	  		  	

		
		  	 

 VARIANCE 

TO 

DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS 

WEIRTON STEEL CORPORATION 
 AND 
 WEST VIRGINIA ECONOMIC DEVELOPMENT AUTHORITY

 THREE SPRINGS INDUSTRIAL AND BUSINESS PARK-PLAN NO.1 

BROOKE COUNTY, WEST VIRGINIA 
 THIS VARIANCE to the Declaration of Covenants; Conditions and Restrictions of Weirton Steel Corporation, Three Springs Industrial and Business Park-Plan.No. 1 in Brooke County, West Virginia, is made this
31st day of July, 2003, by Weirton Steel Corporation (hereinafter “WSC”) and the West Virginia Economic Development Authority (hereinafter “WVEDA”). 

RECITALS: 
 A. WSC, prior to June 19, 1997, was the owner of a plan of lots located in Weirton, Brooke County, West Virginia, known as Three Springs Industrial and Business Park-Plan No. 1 (“Plan
No. 1”), which is recorded in the Office of the Clerk of the County Commission of Brooke County, West Virginia, in Plat Book No. 3, at pages 55 and 55A; 
 B. WSC has recorded a Declaration of Covenants, Conditions and Restrictions dated March 20, 1997 (the “Declaration”), applicable to Plan No. 1, which Declaration is recorded in

 
the Office of the Clerk of the County Commission of Brooke County, West Virginia, in Deed Book No. 276 at pages 455 to 476; 

C. WSC conveyed Plan No, 1 to WVEDA by Deed dated June 19, 1997, which is recorded in the Office of the Clerk of the County
Commission of Brooke County, West Virginia, in Deed Book No. 277 at page 467; 
 D. The Declaration provides that it may be
amended by the filing of an amendment to the Declaration with the consent of WSC and WVEDA, and the first Amendment to the Declaration dated February 12, 1999 was filed and recorded in the Office of the Clerk of the County Commission of Brooke
County, West Virginia in Deed Book No. 283 at page 221; and Amendment No. 2 to the Declaration dated May 1, 2003 was filed and recorded in the Office of the Clerk of the County Commission of Brooke County, West Virginia in Deed
Book Volume 302, at page 425. 
 E. The Declaration provides that realty adjacent to Plan No. 1 owned or hereafter owned by
WSC may be added to Plan No. 1 and subject to the Declaration, upon the recording of a “Notice of Addition to Land” as required by Section 2.4 of the Declaration and a Notice of Addition to Land” dated September 23, 1999 was
filed and recorded in the Office of the Clerk of the County Commission of Brooke County, West Virginia in Deed Book No. 285 at page 220 (“Notice of Addition”); 

 F. Pursuant to Article VII of the Declaration, as amended, captioned “Variances and
Adjustments”, WSC and WVEDA have the right to grant variances or adjustments to the provisions of the Declaration. 
 NOW
THEREFORE, after due consideration, WSC and WVEDA grant a variance to Weirton 902, LLC, its successors and assigns, to construct and operate a hotel on the portion of the Property described on Exhibit A, incorporated herein by reference.

 IN WITNESS WHEREOF, WSC and WVEDA have each caused this variance to be executed and filed on the day and year first
above stated, by the officers hereinafter stated; 
  

							
	ATTEST:	 	 WEIRTON STEEL CORPORATION
 a Delaware corporation

				
	By:	 	

	 	By:	 	

	Name:	 	Virgil G. Thompson	 	Name:	 	William R. Kiefer
	Its:	 	Corporate Attorney	 	Its:	 	General Counsel and Secretary
			
		 		 	 WEST VIRGINIA ECONOMIC
 DEVELOPMENT AUTHORITY
 a West Virginia public corporation

				
	By:	 	

	 	By:	 	

	Name:	 	[Illegible]	 	Name:	 	David A. Warner
	Its:	 	[Illegible]	 	Its:	 	Executive Director

			
	 STATE OF WEST VIRGINIA
	 	)
		 	)
	 COUNTY OF BROOKE
	 	)

 I, Illegible, a Notary Public in and for the County and State aforesaid, do hereby certify that
William R. Kiefer, as General Counsel and Secretary, who signed the above writing bearing date, the 31st day of July, 2003, on behalf of Weirton Steel Corporation, a Delaware corporation, and acknowledged the said writing to be the act and
deed of said corporation. 
 Given under my hand this 31st day of July, 2003. 

 

					
	

	  		  	
	  		  	

	  		  	NOTARY PUBLIC      

  

			
	 STATE OF WEST VIRGINIA
	 	)
		 	)
	 COUNTY OF KANAWHA
	 	)

 I, Illegible, a Notary Public in and for the County and State aforesaid, do hereby certify that
David A. Warner, as Executive Director, who signed the above writing bearing date, the 31st day of July, 2003, on behalf of West Virginia Economic Development Authority, a West Virginia public corporation, and acknowledged the said writing to
be the act and deed of said corporation. 
  

					
		 	Given under my hand this 1st day of August, 2003.	  	
			
		 	My commission expires: April 23, 2007	  	
			
		 		  	

		 		  	NOTARY PUBLIC

  

			
	Notary seal required	 	
		
	 Prepared by:
 Virgil
Thompson, Esq.
 Weirton Steel Corporation
 400 Three Springs Drive
 Weirton, WV 26062
	 	

 Exhibit A 
 All that certain tract or parcel of land situated in the City of Weirton, District of Cross Creek, County of Brooke and State of West Virginia and designated as Lot l-A-3 in Subdivision No. 7, Three
Springs Industrial and Business Park, to be recorded, being more particularly described as follows: 
 Beginning at a point on the westerly line
of Three Springs Drive, of varied width, at its intersection with the northerly line of proposed Three Springs Way, 50 feet wide, said line also being the southerly line of land now or formerly of the Steel Works Community Federal Credit Union;
thence along said proposed Three Springs Way and line of said Credit Union, South 80° 11’ 30” West a distance of 250.00 feet to a point on the easterly line of proposed Amerihost Drive, 50 feet wide; thence along the easterly line of
said proposed Amerihost Drive and the westerly line of land of said Credit Union, North 09° 48’ 31” West a distance of 283.32 feet, to a point of curvature at Lot l-A-3 herein described, said point being the true place of beginning of
this description; thence from said true place of beginning of this description, by the arc of a circle curving to the left, said curve being the tangent to the preceding course, with a radius of 51.00 feet an arc distance of 154.28 feet, to a point
at the line dividing the herein described Lot l-A-3 and Residual Parcel 1-A, both in Subdivision No. 7, Three Springs and Industrial and Business Park to be recorded, said curve being subtended by a chord bearing South 83° 31’ 42”
West a distance of 101.83 feet; thence along the line dividing Lot l-A-3 from Residual Parcel 1-A, the following five courses and distances: South 86° 51’ 55” West a distance of 50.40 feet; North 72° 35’ 00” West a
distance of 249.41 feet; North 09° 48’ 31” West a distance of 34.03 feet; North 17° 25’ 00” East a distance of 183.37 feet; North 57°35’ 13” East a distance of 62.10 feet, to a point on the land now or
formerly of KG Hotel Partners, LLC; thence along the land of KG Hotel Partners, LLC, South 72° 35’ 00” East a distance of 261.21 feet, to a point at the line of land now or formerly of the Steel Works Community Federal Credit Union,
aforementioned; thence along the land of said Credit Union, South 09° 48’ 31” East a distance of 227.34 feet to a point of curvature on the proposed Amerihost Drive, aforementioned, said point being at the place of beginning of this
description. 
 Containing 86,344 square feet or 1.98 acres more or less.

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