Document:

EX-10.2

 Exhibit 10.2 
 Execution Version 
 MEMBERSHIP INTEREST PURCHASE AGREEMENT

 (DELANO HOTEL, MIAMI BEACH, FLORIDA) 
 By and Between 
 MORGANS GROUP LLC

 and 
 VINTAGE DECO HOSPITALITY, LLC 

Dated as of March 30, 2013 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	ARTICLE I	  			
	PURCHASE AND SALE	  			
		
	 1.1 Agreement of Purchase and Sale
	  	 	2	  
	 1.2 Company Property
	  	 	2	  
	 1.3 Property Defined
	  	 	4	  
	 1.4 [Intentionally Omitted.]
	  	 	5	  
	 1.5 Exchange Consideration
	  	 	5	  
	 1.6 Delivery of Exchange Consideration
	  	 	5	  
	 1.7 Management Agreements
	  	 	6	  
	ARTICLE II	  			
	TITLE AND SURVEY	  			
		
	 2.1 Title Commitment
	  	 	6	  
	 2.2 Survey
	  	 	6	  
	 2.3 Approval of Title
	  	 	6	  
	 2.4 Conveyance of Title
	  	 	7	  
	 2.5 Title Policy
	  	 	8	  
		
	ARTICLE III	  			
		
	 3.1 Right of Inspection
	  	 	9	  
	 3.2 Reports
	  	 	11	  
		
	ARTICLE IV	  			
	CLOSING	  			
		
	 4.1 Time and Place; Pre-Closing
	  	 	11	  
	 4.2 Seller’s Closing Obligations and Deliveries
	  	 	12	  
	 4.3 Purchaser’s Closing Obligations and Deliveries
	  	 	13	  
	 4.4 Prorations, Credits and Other Adjustments
	  	 	14	  
	 4.5 Closing Costs
	  	 	19	  
	 4.6 Conditions Precedent to Obligation of Purchaser
	  	 	20	  
	 4.7 Conditions Precedent to Obligation of Seller
	  	 	21	  
	 4.8 Conditions Precedent to Obligation of Seller and Purchaser
	  	 	21	  
	 4.9 Failure or Waiver of Conditions Precedent
	  	 	22	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	ARTICLE V	  			
	REPRESENTATIONS, WARRANTIES AND COVENANTS	  			
		
	 5.1 Representations and Warranties Regarding Seller
	  	 	22	  
	 5.2 Representations and Warranties Regarding the Company
	  	 	24	  
	 5.3 Representations and Warranties Regarding the Property
	  	 	26	  
	 5.4 [Intentionally Omitted.]
	  	 	27	  
	 5.5 Covenants of Seller
	  	 	28	  
	 5.6 Representations and Warranties of Purchaser
	  	 	28	  
	 5.7 Covenants of Purchaser and/or of Seller
	  	 	29	  
	 5.8 Employees
	  	 	31	  
		
	ARTICLE VI	  			
	DEFAULT	  			
		
	 6.1 Default by Purchaser
	  	 	31	  
	 6.2 Default by Seller
	  	 	31	  
		
	ARTICLE VII	  			
	SURVIVAL, INDEMNIFICATION AND LIMITATIONS ON LIABILITY	  			
		
	 7.1 Survival
	  	 	31	  
	 7.2 Seller’s Indemnification
	  	 	32	  
	 7.3 Purchaser’s Indemnification
	  	 	32	  
	 7.4 Notice and Resolution of Claims
	  	 	33	  
	 7.5 Limitations on Liability
	  	 	34	  
	 7.6 Limit on Time for Assertion of Claims
	  	 	35	  
	 7.7 Other Limitations on Indemnification
	  	 	35	  
	 7.8 Interpretation
	  	 	35	  
		
	ARTICLE VIII	  			
	RISK OF LOSS	  			
		
	 8.1 Minor Damage
	  	 	36	  
	 8.2 Major Damage
	  	 	36	  
	 8.3 Definition of “Major Loss”
	  	 	36	  

  
 -ii-

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
		
	ARTICLE IX	  			
	DISCLAIMERS AND WAIVERS	  			
		
	 9.1 DISCLAIMERS
	  	 	37	  
	 9.2 Repairs, Reserves, and Capital Expenditures
	  	 	38	  
	 9.3 Effect and Survival of Disclaimers
	  	 	39	  
		
	ARTICLE X	  			
	MISCELLANEOUS	  			
		
	 10.1 Assignment
	  	 	39	  
	 10.2 Notices
	  	 	39	  
	 10.3 Modifications
	  	 	40	  
	 10.4 Calculation of Time Periods; Time is of the Essence
	  	 	40	  
	 10.5 Successors and Assigns
	  	 	40	  
	 10.6 Entire Agreement
	  	 	40	  
	 10.7 Further Assurances
	  	 	40	  
	 10.8 Counterparts; Facsimile Signatures
	  	 	41	  
	 10.9 Severability
	  	 	41	  
	 10.10 Applicable Law
	  	 	41	  
	 10.11 No Third Party Beneficiary
	  	 	41	  
	 10.12 Exhibits and Schedules
	  	 	42	  
	 10.13 Captions
	  	 	42	  
	 10.14 Construction
	  	 	42	  
	 10.15 Attorney’s Fees
	  	 	42	  
	 10.16 No Waiver
	  	 	42	  
	 10.17 Exclusivity
	  	 	42	  
	 10.18 No Recordation
	  	 	43	  
	 10.19 No Brokerage Commissions
	  	 	43	  
	 10.20 Confidentiality
	  	 	43	  

  
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 MEMBERSHIP INTEREST PURCHASE AGREEMENT 

THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this “Agreement”) is made as of March 30, 2013 (the “Effective
Date”), by and between MORGANS GROUP LLC, a Delaware limited liability company (“Seller”), and VINTAGE DECO HOSPITALITY, LLC, a Delaware limited
liability company (such entity or any assignee permitted under Section 10.1 below, “Purchaser”). Unless otherwise noted, all capitalized terms set forth in this Agreement shall have the meanings ascribed to them in
Annex A attached hereto. 
 W I T N E S S E T H: 

WHEREAS, Seller owns one hundred percent (100%) of the membership interests (the “Interests”) in Beach Hotel
Associates LLC, a Delaware limited liability company (the “Company”); 
 WHEREAS, the Company is the owner and
holder of the fee simple estate in and to that certain plot, piece and parcel of land located at 1685 Collins Avenue, Miami Beach, Florida and more particularly described in Schedule 1.2(a) attached hereto (the “Land”),
together with the hotel and all other improvements and fixtures (collectively, the “Improvements”) located on the Land (the Improvements and the Land are hereinafter sometimes collectively referred to as the “Real
Property”) together with all Personal Property (as defined below); 
 WHEREAS, the Company has engaged Morgans Hotel
Group Management, LLC, a Delaware limited liability company (“Manager”), to operate on the Real Property the hotel known as “The Delano” (the “Hotel”) pursuant to that certain Hotel Management Agreement
dated as of June 23, 2011 by and between the Company and Manager (the “Existing Management Agreement”); 

WHEREAS, concurrently herewith on the Effective Date, Morgans Hotel Group Co., a Delaware corporation and Affiliate of the Company
(“MHGC”), and Yucaipa American Alliance Fund II, L.P., a Delaware limited partnership (“YAAF II”), Yucaipa American Alliance (Parallel) Fund II, L.P., a Delaware limited partnership (“YAAF II-P” and
together with YAAF II, the “Investors”) and Yucaipa Aggregator Holdings, LLC are entering into that certain Exchange Agreement (the “Exchange Agreement”) pursuant to which the Investors have agreed to transfer the
Existing Securities (as such term is defined in the Exchange Agreement) to MHGC and enter into certain other agreements, including that certain Investment Agreement dated as of the Effective Date (the “Investment Agreement”) in
exchange for, among other things, the transfer to Purchaser of the Interests upon the terms and subject to the conditions set forth in the Exchange Agreement and this Agreement; and 

WHEREAS, in accordance with the Exchange Agreement, Seller desires to sell, assign and transfer the Interests, to Purchaser pursuant to
the terms and subject to the conditions of this Agreement and the Exchange Agreement, and Purchaser desires to purchase the Interests from Seller pursuant to the terms and subject to the conditions of this Agreement and the Exchange Agreement;

  
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 WHEREAS, as of the Closing (as defined below), the Existing Management Agreement will be
terminated at Seller’s sole cost and expense and the New Management Agreement (as defined below) between the Company and Manager will become effective; 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, Purchaser and Seller agree as follows: 

ARTICLE I 

PURCHASE AND SALE 
 1.1 Agreement of Purchase and Sale. Subject to the terms and conditions set forth herein and in the Exchange Agreement, Seller agrees to sell, assign, transfer, deliver and convey to Purchaser, and
Purchaser agrees to purchase and accept from Seller, the Interests. 
 1.2 Company Property. The Company’s assets
are comprised of the entire fee simple estate in (a) and (b) below and all of the balance of the following: 
 (a) The
Land as described in Schedule 1.2(a) attached hereto. 
 (b) The Improvements. 

(c) All tangible personal property owned or leased by the Company that is (i) used in connection with the operation of the Real
Property (including without limitation appliances, furniture, furnishings, equipment, signage, carpeting, draperies and curtains, tools and supplies, decorations, china, glassware, linens, silver, utensils, computers, computer equipment and manuals,
all owned vehicles and other similar items of personal property) and (ii) located at the Hotel as of the Effective Date or added to the Real Property after the Effective Date but prior to the Closing Date, subject to use and depletion of such
tangible personal property in the ordinary course. The tangible personal property described in this Section 1.2(c), is hereinafter referred to collectively as the “Personal Property”. 

(d) All contracts or reservations for the use of guest rooms, ballroom and banquet facilities, conference facilities, meeting rooms or
other facilities of the Hotel or located within the Improvements for the Closing Date and the period from and after the Closing Date (collectively, the “Bookings”), and any deposits held by or on behalf of the Company in connection
with the Bookings and not previously applied as of the Effective Date (or between the Effective Date and the Closing Date in accordance with the provisions of this Agreement). 

  
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 (e) All contracts and agreements relating to the upkeep, repair, maintenance or operation of
the Real Property or the Personal Property, including all deposits and credits thereunder, excluding any (i) Bookings, (ii) Space Leases, (iii) insurance policies, (iv) the Existing Management Agreement, and (v) any contract
or agreement which is terminated or expires on or before the Closing Date (collectively, the “Assigned Agreements”); 
 (f) that certain Management Agreement, dated as of December 8, 2011 by and between the Company, as “Owner” and LGD Management, LLC, a Nevada limited liability company as
“Operator” (the “LGD Management Agreement” and, together with the Assigned Agreements, the “Property Contracts”); 
 (g) All transferable licenses, franchises and permits owned or held by the Company and used in, necessary for the legal operation of, or relating to the ownership, occupancy or operation of the Property
or any part thereof (including the Company’s interest in liquor licenses allowing for sale of alcoholic beverages at all or any part of the Hotel (the “Liquor Licenses”), subject to Purchaser’s compliance with any
limitations or restrictions on transfer or assignment of any computer-related materials or software which are contained in any license or similar agreement (collectively, the “Permits”). 

(h) All assignable telephone numbers, TWX numbers, post office boxes, signage rights, utility and development rights and privileges, site
plans, surveys, environmental and other physical reports, plans and specifications pertaining to the Real Property, the Personal Property or both (all of the property described in clauses (g) and (h) of this Section 1.2 that is
not specifically deemed excluded being herein referred to, together with any goodwill of the Company in connection with the operation of the Hotel, collectively as the “Intangibles”). 

(i) All: (i) food and beverages (subject to any legal restrictions pertaining to the sale or transfer of alcoholic beverages) that
are in the Hotel as of the Closing Date; (ii) inventory held for sale by the Company to Hotel guests and others in the ordinary course of business including all opened and unopened retail inventory in any area at the Hotel conducting retail
sales that is in the Hotel as of the Closing Date (provided, that Purchaser’s use of any such inventory that bears any Retained IP shall be subject to the use restrictions, if any, contained in the New Management Agreement) (collectively,
“Retail Inventory”); (iii) engineering, maintenance and housekeeping supplies (including soap and cleaning materials, fuel and materials, stationery and printing items) that are in the Hotel as of the Closing Date (provided,
that Purchaser’s use of any such inventory that bears any Retained IP shall be subject to the use restrictions, if any, contained in the New Management Agreement); and (iv) other supplies, whether used, unused or held in reserve storage
for future use in connection with the maintenance and operation of the Real Property or the Personal Property that are in the Hotel as of the Closing Date (provided, that Purchaser’s use of any such inventory that bears any Retained IP shall be
subject to the use restrictions, if any, contained in the New Management Agreement) (all of the foregoing being referred to herein as the “Consumable Inventory”). 

  
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 (j) Subject to Purchaser’s payment therefor pursuant to Section 4.4 hereof,
the Company’s interest in the cash funds contained in “house banks” for the Hotel as of the Cut-Off Time, whether held in the name of the Company or the Hotel or Manager (defined below) and owned by the Company (collectively, the
“House Bank Funds”). 
 (k) The Receivables to be paid for by Purchaser pursuant to Section 4.4.

 (l) Any deposits made by the Company with utility companies or governmental agencies or authorities relating to the Real
Property to the extent apportionment is made therefor pursuant to Section 4.4. 
 (m) The Company’s interest as
lessor under leases of space in the Real Property (such leases, the “Space Leases”); 
 1.3 Property
Defined. 
 (a) The Real Property, the Personal Property, the Bookings, the Property Contracts, the Intangibles, the
Consumable Inventory, the Space Leases, the House Bank Funds, the Receivables, and the deposits referred to in Section 1.2(l) are hereinafter sometimes referred to collectively as the “Property”. Notwithstanding the
foregoing, the Exchange Consideration shall be adjusted with respect to the House Bank Funds, the Receivables, and the other adjustment items described in Section 4.4. 

(b) Notwithstanding anything to the contrary in Section 1.2 or Section 1.3(a), the following items are expressly
excluded from the Property: 
 (i) All cash in Company Accounts (as defined below) other than the House Bank
Funds shall be transferred to Seller at Closing subject to the terms of this Agreement. 
 (ii) Any tradenames,
trademarks, service marks, symbols, logos or designs owned or licensed by Seller, MHGC or any of their respective Affiliates (collectively, the “Seller Group”) including, without limitation, the name of any restaurant, bar and/or
lounge at the Hotel or any other Morgans Hotel, and any words or designs, marketing materials, concepts and trade dress (such as the menu and the items thereon) related thereto (collectively, the “Retained IP”). Notwithstanding the
foregoing, it is acknowledged by Seller Group that any tradenames, trademarks, service marks, symbols, logos or designs that do not contain the word “Delano” and which are owned by TLG Acquisition LLC and its subsidiaries (collectively,
“TLG”) related to any restaurant, bar or lounge at the Hotel shall be retained by TLG and the Seller Group shall relinquish any interest it has therein at Closing. 

  
 4 

 (iii) Except to the extent of the Company’s rights therein (which
rights, for the avoidance of doubt, shall be included in the Property), any tangible or intangible property (including, without limitation, fixtures, personal property or intellectual property) owned by: (A) the supplier, vendor, licensor,
lessor or other party (other than the Company) under any Company Contract; (B) the tenant under the Space Leases; (C) Manager; (D) any employees; (E) any guests or customers of the Hotel; or (F) any other third party.

 1.4 [Intentionally Omitted.] 
 1.5 Exchange Consideration. Seller shall sell and Purchaser shall purchase the Interests concurrently with delivery of the Existing Securities (as such term is defined in the Exchange Agreement)
pursuant to the terms and subject to the conditions of the Exchange Agreement, and for such other consideration set forth in the Exchange Agreement (hereinafter, the “Exchange Consideration”). 

1.6 Delivery of Exchange Consideration. 
 (a) The Investors and/or Purchaser shall deliver the Exchange Consideration to MHGC in accordance with the Exchange Agreement. 
 (b) All pro-rations, apportionments, and other adjustments to the Exchange Consideration provided for in this Agreement shall be aggregated into a single sum (the “Adjustment”) that
represents either (i) a net amount due to Seller in excess of the Exchange Consideration (a “Seller Proration Payment”), or (ii) a net amount due to Purchaser as a credit against the Exchange Consideration (a
“Purchaser Credit”). In the event of a Seller Proration Payment, Purchaser shall cause the amount of the Adjustment to be paid to or at the direction of the Seller on the Closing Date. In the event of a Purchaser Credit, Seller
shall cause the amount of the Adjustment to be paid to or at the direction of the Purchaser on the Closing Date. For the avoidance of doubt, the aggregate Exchange Consideration to be delivered by the Purchaser at Closing pursuant to the Exchange
Agreement shall not be adjusted pursuant to this Agreement, it being the intent of the parties hereto that all pro-rations, apportionments and other adjustments provided for herein be reflected in the Adjustment and paid pursuant to the terms
of this Section 1.6(b). 
 (c) Seller and Purchaser agree that the purchase of the Interests by Purchaser pursuant
to this Agreement shall, for federal and all applicable state or local income tax purposes, be treated as an acquisition of the Property, which consists of all of the assets owned by the Company. The Exchange Consideration will be allocated pursuant
to the Exchange Agreement among the Real Property, the Property other than the Real Property, and the other assets contemplated to be transferred, conveyed or exchanged pursuant to the Exchange Agreement. 

  
 5 

 1.7 Management Agreements. Purchaser acknowledges that the Hotel is being operated
and managed by Manager pursuant the Existing Management Agreement. Effective as of the Closing and pursuant to an executed termination agreement delivered pursuant to Section 4.2(f), Seller shall cause the Manager to terminate the
Existing Management Agreement effective as of the Closing and at Seller’s sole cost and expense, and the Company and Manager will enter into a hotel management agreement and related side letters (collectively, the “New Management
Agreement”), all in the form of that attached to that certain Property Information Letter (the “Property Information Letter”) delivered by Seller on the date hereof to Purchaser and the Yucaipa Parties (as defined in the
Exchange Agreement). 
 ARTICLE II 
 TITLE AND SURVEY 
 2.1 Title Commitment. Purchaser has obtained a
commitment for title insurance with an effective date of March 5, 2013 (Title Order No. 4071112; Ref. No. NBU#180312092), a copy of which is attached hereto as Exhibit E-1 (the “Title Commitment”) covering the Real
Property from Chicago Title Insurance Company (the “Title Company”) and has caused the Title Company to deliver to Purchaser a copy of each document referenced in the Title Commitment as an exception to title to the Real Property.
Purchaser shall deliver to Seller, within five (5) days after receipt by Purchaser, a copy of any updates (each a “Title Update”) to the Title Commitment issued by the Title Company, provided that if Purchaser shall receive a
Title Update less than five (5) days prior to the then scheduled Closing Date, then Purchaser shall deliver same to Seller prior to the Closing. 
 2.2 Survey. Seller has obtained and delivered to Purchaser and the Title Company, at Seller’s sole cost and expense, a survey of the Real Property prepared by Zurwelle-Whittaker, Inc. and
dated August 29, 2012 (the “Survey”). 
 2.3 Approval of Title. 

(a) All matters reflected in the pro forma ALTA title insurance policy (the “Pro Forma”) attached hereto as Exhibit
E-2, have been approved by Purchaser. Seller shall, or shall cause the Company, prior to or concurrently with Closing, to remove, satisfy or cure all mortgages, deeds of trust, security agreements, construction or mechanics’ liens, tax
liens, notices of commencement or other liens or charges encumbering the Real Property in a fixed sum (or capable of computation as or cured by the payment of a fixed sum) (collectively, “Monetary Encumbrances”) identified in
Schedule B-1 of the Title Commitment as requirements for the issuance of the Pro Forma (the “Discharge Matters”), and shall take all actions necessary to discharge any of the matters identified in Schedule B-1 of the Title
Commitment. 

  
 6 

 (b) Purchaser shall have five (5) business days after receipt of a Title Update, if
any, to notify Seller, in writing, of such objections as Purchaser may have to anything contained in such Title Update which would have a Material Adverse Effect (as defined in Annex 1 below) or, in the case of Monetary Encumbrances, relate to a sum
equal to or in excess of $500,000 (collectively, “Material Title Matters”) other than Permitted Exceptions (and if Purchaser receives a Title Update less than (5) business days prior to a scheduled Pre-Closing Date, then
Purchaser shall deliver such written notice to Seller prior to the Closing). In the event Purchaser shall notify Seller, in writing, of objections to Material Title Matters shown on a Title Update, Seller shall have the right, but not the obligation
(other than as explicitly set forth in this Agreement), to cure, or cause the Company to cure, such objections. Within five (5) business days after receipt of Purchaser’s notice of objections (or, if sooner, two (2) business days
prior to the Pre-Closing Date), Seller shall notify Purchaser in writing whether Seller elects to attempt to cure, or cause the Company to cure, any or all of such objections. If Seller elects not to attempt, or cause the Company to attempt, to cure
any objections to Material Title Matters specified in Purchaser’s notice, or if Seller fails (for any reason or no reason) to effect a cure of those objections which it elected to attempt to cure prior to the Pre-Closing Date (or any date to
which the Pre-Closing Date has been adjourned) and so notifies Purchaser in writing, or if Seller fails to respond to Purchaser’s notice within said five (5) business day period, within two (2) business days thereafter, Purchaser
shall notify Seller in writing that it elects either to: (i) accept a conveyance of the Interests, with the Property then subject to the Permitted Exceptions and any Material Title Matter objected to by Purchaser which Seller is unwilling or
unable to cure (each of which shall also be deemed to be Permitted Exceptions), without reduction of the Exchange Consideration; (ii) terminate this Agreement by sending written notice thereof to Seller, and upon delivery of such notice of
termination, (x) this Agreement and the Exchange Agreement shall terminate, and (y) thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except to the extent that any right, obligation or
liability set forth herein expressly survives termination of this Agreement. Purchaser’s failure to notify Seller of termination of this Agreement within such two (2) business day period shall be deemed to be an irrevocable election under
clause (i) above to accept a conveyance of the Property subject to the Permitted Exceptions and any Material Title Matter. 
 (c) Without in any way limiting Purchaser’s right to terminate this Agreement and the Exchange Agreement pursuant to Section 2.3(b), in no event and under no circumstances shall Seller
have any responsibility or obligation of any kind or nature whatsoever (express or implied) to cure any title matter objected to by Purchaser other than (i) the Discharge Matters and (ii) any Monetary Encumbrance
(x) voluntarily created, assumed, suffered, or consented to by Seller or the Company after the Effective Date (whether or not disclosed by a Title Update) or (y) of an involuntary nature which affects the Property and relate
to a sum equal to or in excess of $100,000 individually or $500,000 in the aggregate (Monetary Encumbrances of the type described in the foregoing clauses (x) and (y), “New Monetary Encumbrances”). Seller shall,
or shall cause the Company, prior to or concurrently with Closing, to remove, satisfy or cure all New Monetary Encumbrances. 

2.4 Conveyance of Title. Notwithstanding anything contained herein to the contrary, at Closing, the Real Property shall be owned
by the Company, subject to the following exceptions to title (the “Permitted Exceptions”): 
 (a) Those matters
specifically set forth on the Pro Forma. 
 (b) Any state of facts shown on the Survey. 

  
 7 

 (c) The lien of all ad valorem real estate taxes not yet due and payable as of the Closing
Date, subject to adjustment as herein provided. 
 (d) All laws, ordinances, rules and regulations of the United States, the
State of Florida, any city or other subdivision or any agency, department, commission, bureau or instrumentality of any of the foregoing having jurisdiction over the Real Property or the Hotel, as the same may now exist or may be hereafter modified,
supplemented or promulgated (collectively, the “Legal Requirements”). 
 (e) All covenants, restrictions and
utility company rights, easements and franchises relating to electricity, water, steam, gas, telephone, sewer or other service or the right to use and maintain poles, lines, wires, cables, pipes, boxes and other fixtures and facilities in, over,
under and upon the Real Property or the Hotel, provided that, in the case of any of the foregoing items which shall not be of record as of the date hereof, the same do not materially adversely affect the present use of the Real Property or the
Hotel. 
 (f) Any matters over which the Title Company is willing to insure at no additional cost to Purchaser. 

(g) Any matters against which the Title Company is willing to provide affirmative insurance against collection from the Company or the
Property or interference with the current use of the Real Property at no additional cost to Purchaser. 
 (h) Any other matter
or thing affecting title to the Real Property disclosed by a Title Update that is not a Material Title Matter, a Discharge Matter, a New Monetary Encumbrance or was not objected to by Purchaser or is waived or deemed waived by Purchaser in
accordance with Section 2.3 hereof. 
 (i) All violations of laws, rules, regulations, statutes, ordinances, orders
or requirements of law and/or conditions giving rise to the same first issued after the Effective Date. 
 (j) Occupancy by
transient guests of the Hotel and Bookings. 
 (k) The rights of the tenant under the Space Leases and any person claiming by,
through or under such tenants to occupy the space as a tenant only. 
 2.5 Title Policy. No later than the Pre-Closing
Date, Seller and Purchaser shall direct the Title Company to issue at the Closing an ALTA Owner’s Policy 2006 in the form of the Pro Forma including without limitation all endorsements available with such ALTA Owner’s Policy 2006 in
Florida (the “Title Policy”), at Purchaser’s sole cost and expense, insuring the Company’s interest in and to the Real Property as of the Closing, subject to only the Permitted Exceptions. 

  
 8 

 ARTICLE III 
 INSPECTION 
 3.1 Right of Inspection. 

(a) Purchaser shall have the right, subject to the rights of guests of the Hotel and the tenants under the Space Leases and at no cost to
Seller or the Company, to examine at such place or places at the Hotel or elsewhere as the same may be located, any operating files maintained by or for the benefit of Seller in connection with the leasing, operation, current maintenance and/or
management of the Property (“Property Information”), including, without limitation, the Space Leases, the Property Contracts, insurance policies, bills, invoices, receipts and other general records relating to the income and
expenses of the Hotel, correspondence, tax certiorari, filings and papers including records used to prepare financial statements and documents relating to the amortization or depreciation of furniture, fixtures and equipment or other capital
improvements, surveys, plans and specifications, warranties for services and materials provided to the Hotel, environmental audits and similar materials, materials related to Hotel Employees (as defined below) to the extent Seller and the Company
are not prohibited by applicable contracts or law from disclosing such materials, and any other documents relating to the Property in the Company’s or Manager’s possession or control but in all cases excluding attorney client privileged
material. 
 (b) Purchaser shall keep all Property Information confidential, provided that Purchaser may (i) deliver copies
of Property Information to its attorneys, accountants and other advisors in connection with the acquisition of the Property and to current and prospective lenders and partners provided that such parties agree to maintain the confidentiality of such
Property Information, and (ii) make such disclosures of the Property Information as are required by law, rule or regulation (including the rules or regulations promulgated by the Securities and Exchange Commission or the New York Stock Exchange
to the extent such rules or regulations are applicable to such disclosure). 
 (c) Purchaser understands and agrees that any
on-site inspections of the Property shall only be conducted during business hours with not less than one (1) day’s prior notice to Seller (which may be telephonic). Seller may have its respective representatives attend any such
inspections. Such physical inspection shall not disturb Hotel guests or the tenant under the Space Leases nor unreasonably interfere with the use of the Property by Seller or Manager. Such physical inspection shall not be invasive in any respect,
and in any event shall be conducted in accordance with standards customarily employed in the industry and in compliance with all governmental laws, rules and regulations. Following each entry by Purchaser with respect to inspections and/or tests on
the Real Property, Purchaser shall repair any damage to the Property caused by Purchaser or any of its agents, consultants or representatives in connection with Purchaser’s activities at the Property, and restore the Property to the original
condition as existed prior to any such inspections and/or tests, at Purchaser’s sole cost and expense; provided that Purchaser shall not be required to fix, and shall not be responsible for, any pre-existing conditions at the Property or
exacerbations thereof (other than any exacerbation caused by the gross negligence or willful misconduct of Purchaser or any of its agents, consultants, or representatives). 

  
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 (d) Purchaser shall not disrupt the Company’s, Manager’s or any tenant’s or
guest’s activities on the Real Property and shall not contact Manager’s on-site managers or on-site employees, or any other employees working at the Hotel, any guests of the Property, any party to a Company Contract, the tenants under the
Space Leases, any lender providing financing secured by the Real Property or any governmental authority without in each instance obtaining Seller’s prior consent, which consent may not be unreasonably withheld and shall be deemed to have been
refused if Seller does not respond to a request made hereunder within 24 hours. 
 (e) Purchaser shall indemnify, defend, protect
and hold Seller and the Company harmless from and against any claim for liabilities, losses, costs, expenses (including reasonable attorneys’ fees actually incurred), damages or injuries directly arising out of or directly resulting from the
inspection of the Property by Purchaser or its agents, employees, representatives, consultants or contractors and notwithstanding anything to the contrary in this Agreement, such obligation to indemnify, defend, protect and hold harmless Seller and
the Company (in the case of termination) shall survive Closing or any termination of this Agreement; provided, however, that Purchaser shall not be required to indemnify or hold Seller and/or the Company, as applicable, harmless from any such
liability, loss, cost, damage or injury resulting from the gross negligence or willful misconduct of Seller or the Company, as applicable, or any of their respective Affiliates, agents or employees or with respect to any condition existing at the
Property prior to the Effective Date (or the exacerbation of any such condition) (other than any exacerbation caused by the gross negligence, or willful misconduct of Purchaser or any of its agents, consultants, or representatives). Purchaser agrees
(i) that prior to entering the Property, Purchaser shall obtain and maintain, and shall cause each of its contractors and agents to maintain (and shall deliver evidence thereof in the form of a policy certificate satisfactory to Seller
thereof), at no cost or expense to Seller or the Company, commercial general liability insurance from an insurer reasonably acceptable to Seller in the amount of Two Million Dollars ($2,000,000) with combined single limit for personal injury or
property damage per occurrence, such policies to name Seller, the Company and Manager as additional insured parties, which insurance shall provide coverage against any claim for personal injury or property damage caused by Purchaser or its agents,
employees, representatives or consultants in connection with any such tests and investigations, and (ii) to keep the Property free from all liens and encumbrances on account of any inspections and/or tests made by or for the benefit of
Purchaser (other than inchoate liens that secure amounts that are paid prior to delinquency). Purchaser’s insurance may not be canceled or amended prior to Closing except upon not less than thirty (30) days’ prior written notice to
Seller. Purchaser’s obligations under this Section 3.1 shall survive a termination of this Agreement. 

  
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 3.2 Reports. Seller has made, and may hereafter make, available to Purchaser
environmental, engineering, soils and other reports regarding the physical condition of the Property in Seller’s possession (the “Reports”) as requested by Purchaser. PURCHASER ACKNOWLEDGES THAT THE REPORTS HAVE BEEN, OR WILL
BE, MADE AVAILABLE SOLELY AS AN ACCOMMODATION TO PURCHASER AND WITHOUT ANY REPRESENTATION OR WARRANTY OF SELLER AS TO THEIR ACCURACY OR COMPLETENESS OF FACTS OR OPINIONS SET FORTH THEREIN AND THAT ANY RELIANCE BY PURCHASER ON SUCH REPORTS IN
CONNECTION WITH THE PURCHASE OF THE INTERESTS IS UNDERTAKEN AT PURCHASER’S SOLE RISK. PURCHASER AGREES THAT SELLER SHALL HAVE NO LIABILITY OR OBLIGATION WHATSOEVER FOR ANY INACCURACY IN OR OMISSION FROM THE REPORTS. PURCHASER HAS CONDUCTED ITS
OWN INVESTIGATION OF THE CONDITION OF THE PROPERTY TO THE EXTENT PURCHASER DEEMS SUCH AN INVESTIGATION TO BE NECESSARY OR APPROPRIATE. 
 ARTICLE IV 
 CLOSING 

4.1 Time and Place; Pre-Closing. 
 (a) Subject to the provisions of Sections 4.6, 4.7, and 4.8, the consummation of the transaction contemplated hereby and by the Exchange Agreement (“Closing”), as
evidenced by the concurrent (i) delivery to Seller of the Exchange Consideration pursuant to the Exchange Agreement, and (ii) delivery to Purchaser of the Assignment of Interests executed by Seller, shall occur on the date
provided for the Closing in the Exchange Agreement (the “Closing Date”). The Exchange Consideration, the Assignment of Interests, and the other documents and other items required to be delivered pursuant to Section 4.2
and Section 4.3 shall be delivered, held, and released at the Closing in the manner prescribed by Article 7 of the Exchange Agreement. At Closing, Seller and Purchaser shall perform the obligations set forth in, respectively,
Section 4.2 and Section 4.3, the performance of which obligations shall be concurrent conditions. 
 (b)
Notwithstanding anything herein to the contrary, the parties shall “pre-close” the sale of the Interests on the date that “pre-closing” occurs under the Exchange Agreement (the “Pre-Closing Date”). The term
“pre-close” shall mean that no later than 5:00 p.m. (New York time) on the Pre-Closing Date (i) Seller shall deliver to Purchaser or the Title Company (as applicable), to be held in escrow until released by the Seller at the Closing,
all of the documents and items required to be delivered by Seller pursuant to Section 4.2, (other than Section 4.2(k)) and (ii) Purchaser shall deliver to Seller or the Title Company (as applicable), to be held in escrow
until released by the Purchaser at the Closing, all of the documents and other items required to be delivered by Purchaser pursuant to Section 4.3 (other than Sections 4.3(a) and 4.3(e)). With respect to the closing adjustments to
be made between the parties pursuant to Section 4.4, the adjustments shall continue to be made effective as of the Cut-Off Time, but on the closing statement executed by the parties on the Pre-Closing Date, the parties shall in good
faith estimate those adjustments which are not capable of being finalized prior to the Cut-Off Time, and the parties shall reconcile said estimated adjustments pursuant to Section 4.4(k). 

  
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 4.2 Seller’s Closing Obligations and Deliveries. At Closing, subject to
Section 4.1 above, Seller shall make the following deliveries and take the following actions: 
 (a) Execute and
deliver to Purchaser one (1) original counterpart of an Assignment of Membership Interests (the “Assignment of Interests”), in the form attached hereto as Exhibit A and made part hereof. 

(b) Deliver to Purchaser and the Title Company such evidence as the Title Company may reasonably require as to the authority of the
person or persons executing documents on behalf of Seller. 
 (c) Deliver to Purchaser an affidavit duly executed by Seller
stating that Seller is not a “foreign person” as defined in the Federal Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax Reform Act, in the form attached hereto as Exhibit B (the “FIRPTA
Affidavit”). 
 (d) If not already delivered to Purchaser, deliver to Purchaser, originals, or, if unavailable, copies
of the Property Contracts and the licenses and Permits, if any, in the possession or control of the Company or any member of the Seller Group, together with such leasing and property files and records which are in the possession or control of the
Company, any member the Seller Group, and any keys to security deposit boxes and to the Hotel. The location of such items at the Hotel on the Closing Date in a location identified in writing from Seller to Purchaser shall constitute delivery to
Purchaser. 
 (e) Deliver to Purchaser an executed counterpart closing statement consistent with this Agreement setting forth
the Adjustment and otherwise in a customary form mutually acceptable to each of Seller and Purchaser. 
 (f) Deliver a Purchaser
a copy of the termination agreement executed by the Company and Manager, which has the effect of terminating the Existing Management Agreement effective as of the Closing Date. 

(g) Deliver to the Title Company (with a copy to Purchaser) a commercially reasonable title affidavit sufficient to allow the Title
Company to issue the Title Policy subject to the Permitted Exceptions (the “Title Affidavit”). 
 (h) Deliver
to Purchaser two (2) original counterpart copies of the New Management Agreement. 
 (i) Deliver to Purchaser two
(2) original counterparts of such certificates, applications, forms and other documents as may be required to be submitted to the Florida Department of Professional Business Regulations, Division of Alcoholic Beverages and Tobacco in order to
evidence the change in ownership of the Company (the “ABT Transfer Materials”). 

  
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 (j) Deliver to Purchaser a release and acknowledgement of the cancellation of any and all
intercompany debts, payables or other Liabilities of the Company to Seller, Manager or any of their respective Affiliates (other than any debts, payables or Liabilities arising under the New Management Agreement from and after the Closing), in the
form attached hereto as Exhibit G, duly executed by Seller, Manager and each Affiliate thereof that is a holder or obligee in respect of any such debts, payables or Liabilities, which release shall be effective on the Closing Date at a time
immediately prior to the assignment of the Interests to Purchaser at Closing. 
 (k) In the event of a Purchaser Credit, deliver
to or at the direction of Purchaser the amount of the Adjustment. 
 (l) Subject to Section 5.7(b), deliver such
additional documents as shall be reasonably required to consummate the transaction contemplated by this Agreement. 
 4.3
Purchaser’s Closing Obligations and Deliveries. At Closing, Purchaser and, with respect to the Exchange Consideration only, the Investors, shall make the following deliveries and take the following actions: 

(a) Deliver the Exchange Consideration pursuant to the terms and subject to the conditions set forth in the Exchange Agreement.

 (b) Deliver to Seller the same number of original executed counterparts of the instruments described in Sections
4.2(a), 4.2(e), 4.2(h) and 4.2(i). 
 (c) Deliver to Title Company such evidence as Title Company may
reasonably require as to the authority of the person or persons executing documents on behalf of Purchaser. 
 (d) Deliver to
Seller two (2) original counterpart copies of the New Management Agreement. 
 (e) In the event of a Seller Proration
Payment, deliver to or at the direction of Seller the amount of the Adjustment. 
 (f) Deliver such additional documents as
shall be reasonably required to consummate the transaction contemplated by this Agreement. 

  
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 4.4 Prorations, Credits and Other Adjustments. At Closing, other than the House Bank
Funds which are adjusted for in this Section 4.4, all cash on hand or on deposit in any operating account or other account or reserve, security deposits with respect to any Booking as of the Closing Date, utility and governmental agency
deposits, deposits held in connection with any Property Contracts to be assumed by Purchaser, whether any of the foregoing are held in the name of the Company or otherwise held on behalf of the Company (the “Company Accounts”) shall
be transferred to Seller, and Purchaser and Seller shall prorate all items of income and expense attributable to the ownership and operation of the Hotel which are customarily prorated between a purchaser and seller for a hotel. For clarification it
is the intent of the parties that unless specifically outlined differently below that Seller is responsible for all revenues and expenses of the Hotel and the Company attributable to the time prior to Cutoff Time and Purchaser is responsible for all
revenues and expenses of the Hotel and the Company attributable to the time after the Cutoff time. At Closing, Purchaser and Seller shall make the prorations, credits, and other adjustments provided for below in, and in accordance with the
procedures set forth in, this Section 4.4. Beginning as close to the anticipated Closing Date as practicable, Seller shall, in consultation with Purchaser and with Purchaser’s reasonable cooperation, cause to be prepared a
prorations and credit statement (the “Preliminary Statement”) which shall reflect all of the prorations, credits and other adjustments to the Exchange Consideration at Closing required under this Section 4.4 or under any
other provision of this Agreement. As soon as Purchaser and Seller have agreed upon the Preliminary Statement, they shall each execute a counterpart thereto and exchange such executed counterparts between one another. The net amount shown as owing
to Seller or Purchaser in the Preliminary Statement shall constitute the Adjustment pursuant to Section 1.6(b), subject to any post-Closing adjustments required to be made pursuant to Section 4.4(k). 

(a) Proration of Property Taxes. 
 (i) All real estate ad valorem taxes, general assessments and special assessments and all personal property ad valorem taxes assessed against the Hotel (collectively, “Property Taxes”)
with respect to the tax year in which Closing occurs shall be prorated between Purchaser and Seller as of the Closing Date. If the amount of any such Property Taxes is not ascertainable on the Closing Date, the proration for such Property Taxes
shall be based on the property tax rates set forth in the most recent available bill and the latest assessed valuation of the Property; provided, however, that after the Closing, Seller and Purchaser shall re-prorate the Property Taxes in accordance
with Section 4.4(k) below and pay any deficiency in the original proration to the other party promptly upon receipt of the actual bill for the relevant taxable period. Purchaser shall give Seller written notice of the actual amounts of
any such bills within five (5) business days after receipt thereof. If, at the time of the Closing, the Hotel is subject to a special assessment or assessments which are payable by the Company and which are or may become payable in
installments, then, for the purposes of this Agreement, all of the installments of any such special assessment or assessments which are not delinquent on the Closing Date and which may be paid thereafter shall be equitably apportioned between Seller
and Purchaser based upon their respective periods of ownership. 

  
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 (ii) Any proceedings or claims pending as of the Effective Date to contest
any Property Taxes for any taxable period which encompasses any period prior to the date of the Closing shall be assigned by the Company to Seller, and Seller shall retain the right to continue and settle such proceedings or claims and shall be
entitled to any refunds or abatements of Property Taxes awarded in such proceedings or claims or in any proceedings instituted by Purchaser to the extent the Property Taxes, refunds or abatements relate to periods of time prior to the Closing Date.
After the Effective Date, without the prior written consent of Purchaser (which shall not be withheld unreasonably), Seller shall not, and shall not permit the Company to (A) institute any proceeding to contest any Property Taxes for any period
that includes any period after the Closing Date or (B) settle any pending proceeding that relates to Property Taxes payable for any period that includes any period after the Closing Date. Seller shall be responsible for any fees or charges that
may now or in the future be billed by its or the Company’s tax certiorari attorneys for services performed prior to the Closing Date (whether with respect to the current tax year or any prior tax year). In addition, Seller shall instruct the
Company’s tax certiorari attorneys to turn over to Purchaser all files and materials relating to the current tax year. 

(b) General Proration of Expenses. Unless otherwise set forth below, Seller shall receive credit for any pre-paid expenses and
Purchaser will receive credit for any unpaid expenses payable post-Closing with respect to the period prior to the Closing based on actual usage or if actual usage is not determinable on a per-diem calculation. The following items of expense with
respect to any portion or aspect of the Hotel shall be prorated between Seller and Purchaser as of the Closing Date: 
 (i) All charges and expenses under any Property Contracts. 
 (ii)
All utility charges (but excluding any utility deposits). To the extent reasonably practicable, though, in lieu of prorating the charges for any metered utility service, Purchaser and Seller shall endeavor to have the utility read the meter as close
as practicable to the Closing Date, render a final bill payable by Seller based on such reading, Seller shall pay a per diem for any day prior to Closing that does not show on such meter reading and Purchaser shall thereafter be responsible for all
subsequent bills relating to such service. 
 (iii) Prepaid expenses of the Hotel, excluding insurance but
including without limitation, the expense of all transferable licenses and permits obtained in connection with the operation of the Hotel. 
 (iv) All amounts allocable to the pre-Closing period with respect to the agreement with Boucher Brothers Management, Inc. executed in 2013 prior to the Closing (but with an effective date in
2012); provided that the any payment required upon execution of such agreement and any retroactive management or other fee increase shall be allocated as an expense of Seller. 

(v) All other Hotel operating expenses, other than employment expenses (which are covered by Section 4.4(c)).

  
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 (c) Employment Expenses. All salaries, bonuses, other compensation and employment
benefits for unused vacation, holiday, sick leave and personal days if, and to the extent, that amounts are accrued and vested and unused prior to the Closing Date, together with F.I.C.A., unemployment and other payroll taxes and benefits due with
respect to the employment of Hotel Employees by Manager, shall be prorated between Seller and Purchaser as of the Closing Date, with accrued vacation and other benefits due to Hotel Employees being determined in accordance with past practices.
Manager shall pay the salaries and related benefits that are payable to any Hotel Employees for work performed at the Hotel on the Closing Date, whether prior to or following the time of Closing, and such costs for the Closing Date shall be for the
account of Purchaser except to the extent incurred in connection with operations the revenue from which is allocated to Seller in the event that the Cut-Off Time with respect to such items is extended until the early morning of the Closing Date.

 (d) Hotel Revenues. 
 (i) At Closing, Purchaser shall receive credit for one-half (1/2) of all revenues from the Hotel guest rooms and facilities occupied on the evening immediately preceding the Closing Date, including
without limitation any sales taxes, room taxes, occupancy taxes and other taxes charged to guests in such rooms that the Company is obligated to remit to the applicable taxing authorities, all parking charges, sales from mini-bars, in-room food and
beverage, telephone, facsimile and data communications, in-room movie, laundry, and other service charges allocable to such rooms with respect to the evening immediately preceding the Closing Date. All revenues from restaurants, bars, lounges,
vending machines and other service operations conducted at the Property shall be allocated based on whether the same accrued before or after the Cut-Off Time, and Seller shall cause the Company to cause the Manager to separately record sales
occurring before and after the Cut-Off Time at the Property. Notwithstanding the foregoing, all revenues from any bars and lounges at the Property shall be prorated based on the actual closing time for such bar or lounge. For example, if such bar or
lounge closes at 2 a.m. on the Closing Date, Seller shall receive a credit for the revenues from, and be responsible for the operating costs reasonably attributable to, such services and operations even though such revenues were generated two
(2) hours after the Cut-Off Time. 
 (ii) Revenues from conferences, receptions, meetings, and other
functions occurring in any conference, banquet or meeting rooms in the Hotel, or in any adjacent facilities owned or operated by the Company, including usage charges and related taxes, food and beverage sales, valet parking charges, equipment
rentals, and telecommunications charges, shall be allocated between Seller and Purchaser, based on when the function therein commenced, with: (A) one-day functions commencing prior to the Cut-Off Time being allocable to Seller;
(B) functions commencing after the Cut-Off Time being allocable to Purchaser; and (C) multi-day functions being allocated on a pro rata basis between Seller and Purchaser according to when the event commences and is scheduled
to end in relation to the Cut-Off Time. 

  
 16 

 (iii) At Closing, all accounts receivable of the Hotel and all related
operations (collectively, the “Receivables”) shall be retained by the Company, and Seller shall receive a proration credit in an amount equal to the face value of Receivables as set forth on Manager’s books (including, without
limitation, Receivables accrued in connection with hotel reservations, the use of guest rooms, as reflected on the guest ledger). Purchaser shall have no right to any adjustment to the prorations with respect to the Receivables on or after Closing
for inability to collect outstanding Receivables or otherwise. 
 (iv) Any operating revenues not otherwise
provided for in this Section 4.4, shall be prorated between Purchaser and Seller as of Closing. 

(v) Any rents payable under the Space Lease shall be prorated between Purchaser and Seller as of Closing. 

(e) Hotel Payables. At Closing, Purchaser shall receive a proration credit equal to the aggregate amount of all outstanding
accounts payable for the Hotel as of the Closing Date (“Hotel Payables”) as set forth in a schedule attached to the Preliminary Statement and shall indemnify, defend and hold Seller harmless against any claim for all such Hotel
Payables for which Purchaser receives a proration credit (the “Prorated Hotel Payables”). The Company shall retain the obligation to (i) satisfy all Prorated Hotel Payables and (ii) pay for any (A) consumables or
other items ordered by or for the benefit of the Company in the ordinary course of business but which are not yet received as of the Closing Date and (B) items or services listed on a purchase order log prepared by Manager which are not yet
received as of the Closing Date, which list shall be updated by Manager immediately prior to Closing. There shall not be any adjustment to the Exchange Consideration in connection with the liabilities described in clauses (ii)(A) and
(ii)(B) above. 
 (f) Credit for Deposits. Purchaser shall receive a proration credit equal to the aggregate
amount of advance deposits that shall have been received by the Company prior to the Cut-Off Time on account of Bookings and other reservations for use or occupancy of the Property after the Cut-Off Time. Purchaser also shall receive a proration
credit for any security deposits paid (and not previously applied) under the Space Leases. 
 (g) Credit for Cash Banks.
Seller shall receive a credit at Closing in an amount equal to all House Bank Funds actually received by Purchaser. 

  
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 (h) Regarding Hotel Prorations Generally. Unless this Section 4.4
expressly provides otherwise: (i) all prorations hereunder with respect to the Hotel shall be made as of 12:00:01 a.m., local time at the Hotel (the “Cut-Off Time”) on the Closing Date; (ii) all prorations shall be made on
an actual daily basis; and (iii) for purposes of such prorations, all items of revenue and expense with respect to the Hotel’s operations shall be classified and determined in accordance with the Uniform System of Accounts for the Lodging
Industry, as reasonably modified by Manager for use at the Hotel consistent with past practices within the twelve (12) months preceding the Closing, and otherwise in accordance with generally accepted accounting principles. Except as otherwise
expressly provided herein, in any case in which Purchaser receives a credit at Closing on account of any obligation of the Company hereunder, Seller shall have no liability for such obligation to the extent of the credit so given, Purchaser shall,
or shall cause the Company to, pay and discharge the same, and Purchaser shall indemnify, defend and hold Seller harmless Seller with respect thereto. 
 (i) Vouchers. Purchaser (i) shall, or shall cause the Company to, honor all outstanding unexpired gift certificates, coupons or other writings issued by the Company or its affiliates prior to
the Closing Date that entitles the holder or bearer thereof to a credit (whether in a specified dollar amount or for a specified item, such as room night or meals) to be applied against the usual charge for rooms, meals and/or goods and services at
the Hotel (collectively, “Vouchers”) and the Company shall retain all liability, if any, for all outstanding Vouchers as of the Closing Date; (ii) shall receive a credit against the Exchange Consideration payable at Closing in
the amount of the Vouchers listed on a schedule delivered to Purchaser no later than three (3) business days prior to the Pre-Closing Date; and (iii) shall indemnify, defend and hold Seller and the members of Seller Group harmless from and
against all claims, liabilities, costs and expenses arising out of a violation of this Section 4.4(i) with respect to the Vouchers listed on such schedule from and after the Closing Date. 

(j) Utility and Other Deposits. At Closing, Seller shall be entitled to receive and retain all refundable cash or other deposits
posted with utility companies serving the Property or any governmental agencies or authorities or posted pursuant to any Assigned Agreement. 
 (k) Final Statement; Post-Closing Adjustments. Except for prorations for Property Taxes, which shall be adjusted within fifteen (15) business days of receipt of the tax bill for the tax year
in which the Closing occurs, Purchaser and Seller shall make a one-time post-Closing adjustment of any item of income and expense subject to adjustment as provided above which was either incomplete or incorrect (whether as a result of an error in
calculation or a lack of complete and accurate information) as of the Closing. Purchaser will prepare and deliver to Seller for its review and approval a statement of prorations (the “Final Statement”) on or before the date that is
sixty (60) days following the Closing Date. The party in whose favor the original incorrect adjustment or error was made (the “Adjusting Party”) shall cause the sum necessary to correct such prior incorrect adjustment or error
to be paid to the other party, within ten (10) days after completion of the Final Statement. Without limitation on either party’s right to seek resolution pursuant to Section 4.4(l) of a dispute with respect to the prorations
provided for herein, such adjustment shall be final and no further adjustment to the prorations provided for herein shall be made. 

  
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 (l) Resolution of Disputes. In the case of a dispute with regard to the adjustments
provided for by this Section 4.4, the parties shall attempt to resolve such dispute, but if for any reason such dispute is not resolved by the date that is thirty (30) days after the delivery of the original notice of the claimed
adjustment by Purchaser or Seller, but not to exceed ninety (90) days after Closing, then the parties shall, upon the written request of either party to the other, submit such dispute to PricewaterhouseCoopers (the “Outside
Accountants”), and the determination of the Outside Accountants, which shall be made within a period of fifteen (15) days after such submittal by the parties, shall be conclusive. The fees and expenses of the Outside Accountants shall
be paid equally by Purchaser and Seller. At such time as the amount of any adjustment or dispute shall be determined (either by agreement or by determination of the Outside Accountants), the Adjusting Party shall cause the amount resulting from such
adjustment or determination to be shall be paid in accordance with Section 4.4(k) within ten (10) business days after the date on which such agreement or determination shall have been made. 

(m) Survival. The provisions of this Section 4.4 shall survive Closing for a period of six (6) months.

 4.5 Closing Costs. 
 (a) Transfer Taxes. At Closing, Seller and Purchaser shall complete, sign and acknowledge any and all forms, if any, required for this transaction with respect to State of Florida and/or Miami-Dade
County transfer, documentary stamps and/or recordation tax requirements (the “Transfer Tax Laws”). Seller and Purchaser each shall pay fifty percent (50%) of any of the following which are applicable: (i) the taxes imposed
under the Transfer Tax Laws, (ii) all bulk sales taxes, sales tax on the sale of the Personal Property (or any part thereof) or any other sales taxes and (iii) any filing fees in connection with the consummation of the transactions
contemplated by this Agreement on the Closing Date. 
 (b) Seller Closing Costs. At Closing, Seller shall also pay:
(i) occupancy, hotel or other taxes payable with respect to the operation of the Hotel through the Cut-Off Time; (ii) one-half of all fees and expenses charged by the Title Company in respect of the administration of the transactions
contemplated by this Agreement (specifically excluding the premium for the Title Policy or the cost of any endorsements thereto); (iii) the cost of the Survey and any modifications or updates to the Survey; and (iv) all recording and
filing fees relating to clearance of the Discharge Matters or any other title matter which Seller agrees to remove pursuant to the terms of this Agreement. 
 (c) Purchaser Closing Costs. At Closing, Purchaser shall also pay: (i) 100% of the (A) premium for the Title Policy, and (B) cost of any endorsements to the Title Policy, and
(ii) one-half of all fees and expenses charged by the Title Company in respect of the administration of the transactions contemplated by this Agreement. 

  
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 (d) Other Costs. All other costs and expenses incident to this transaction and the
Closing thereof shall be paid in a manner consistent with custom for similar transactions in the city where the Hotel is located. Notwithstanding the foregoing, in the event that this Agreement is terminated as a result of a party’s default,
such defaulting party shall pay all cancellation fees charged by the Title Company in connection with such cancellation. 
 4.6
Conditions Precedent to Obligation of Purchaser. The obligation of Purchaser to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may
be waived by Purchaser in its sole discretion: 
 (a) All of the conditions precedent for the benefit of the Investors set forth
in the Exchange Agreement shall have been satisfied (or waived by the Investors pursuant to the terms of the Exchange Agreement). 
 (b) All of the representations and warranties of Seller contained in Sections 5.1 and 5.2(a), 5.2(b), 5.2(c), 5.2(e)(iv), and 5.2(i)(i) shall be true and correct
in all material respects as of the Closing Date; provided that such representations and warranties that are qualified as to materiality shall (to the extent so qualified) be true and correct in all respects. It is understood that if there is a
breach of any representation or warranty of Seller contained in the balance of Section 5.2 or Section 5.3 as of the Closing Date, such breach shall not constitute a failure of a condition precedent to, or otherwise excuse,
the obligation of Purchaser to consummate the transactions contemplated by this Agreement. Nothing in this Section 4.6(b) shall limit Purchaser’s right to pursue its remedies provided in, and subject to, Article VII in the
event that any representation or warranty of Seller set forth in Section 5.1, 5.2, or 5.3 is inaccurate as of the Closing. 
 (c) Deutsche Bank AG New York Branch (“DB”) shall not have failed to fund the loan described in the commitment letter (“Commitment Letter”) from DB and Deutsche Bank Securities
Inc. (“DBSI”) dated as of this date and addressed to the Investors because the conditions precedent described in either Sections 5(a) or 5(d) (but with respect to Section 5(d), solely as it relates to the representations and
warranties set forth on Exhibit C to the Commitment Letter) of the Commitment Letter are not satisfied; provided that DB’s failure to fund such loan on the basis that the condition in Section 5(d) of the Commitment Letter has not been
satisfied shall not be deemed to constitute a failure to satisfy the condition set forth in this paragraph if (x) DBAG has notified Sponsor (as defined in the Commitment Letter) that it has determined, in its sole discretion, that the events,
occurrences or circumstances that, individually or in the aggregate, have caused the condition in Section 5(d) to fail to be met with respect to any representation or warranty set forth on Exhibit C thereto (other than due to the occurrence of
any casualty or condemnation) have caused, or could reasonably be expected to cause, the Administrative Agent (as defined in the Commitment Letter) or the Lenders (as defined in the Commitment Letter) to suffer any Losses (as defined in the
Commitment Letter) in an aggregate amount of $5,000,000 or less and (y) the Sponsor shall have failed to provide a joint and several indemnity to DB in accordance with Section 5 of the Commitment Letter for any such Losses up to a maximum
aggregate amount of $5,000,000. 

  
 20 

 (d) Seller shall have delivered to Purchaser all of the items required to be delivered to
Purchaser pursuant to the terms of Sections 4.2 and 4.5(a) and shall have paid all amounts required to be paid by Seller pursuant to the terms of Section 4.5. 

(e) The Title Company shall be irrevocably committed to issue as of the Closing, subject only to payment of title premiums, the Title
Policy. 
 (f) New Monetary Encumbrances shall have been removed, satisfied or cured as provided in the last sentence of
Section 2.3(c). 
 Except as expressly set forth in this Section 4.6, any claim that Seller has not
performed and observed in all material respects all covenants, obligations and agreements of this Agreement to be performed and observed by Seller as of the Closing Date shall not constitute a failure of a condition precedent to, or otherwise
excuse, the obligation of Purchaser to consummate the transactions contemplated by this Agreement, and Purchaser’s sole and exclusive remedy therefor shall be to close the transactions contemplated by this Agreement and pursue its remedies
provided in, and subject to, Article VII. 
 4.7 Conditions Precedent to Obligation of Seller. The obligation of
Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Seller in writing in its sole discretion: 

(a) All of the conditions precedent for the benefit of MHGC set forth in the Exchange Agreement (including delivery of the Exchange
Consideration) shall have been satisfied (or waived by the Investors pursuant to the terms of the Exchange Agreement). 
 (b)
All of the representations and warranties of Purchaser contained in this Agreement shall be true and correct in all material respects as of the Closing Date. 
 (c) Purchaser shall have performed and observed, in all material respects, all covenants and agreements of this Agreement to be performed and observed by Purchaser as of the Closing Date, other than any
such covenants, obligations or agreements that are qualified as to materiality, which (to the extent so qualified) Purchaser shall have performed and observed in all respects. 
 (d) Purchaser shall have delivered to Seller all of the items required to be delivered to Seller pursuant to the terms of Sections 4.3 and 4.5(a) and shall have paid all amounts required to
be paid by Seller pursuant to the terms of Section 4.5. 
 4.8 Conditions Precedent to Obligation of Seller and
Purchaser. Notwithstanding anything herein to the contrary but subject to the remainder of this Section 4.8, the obligation of Seller and Purchaser to consummate the transaction hereunder shall be subject to the substantially
simultaneous consummation of the transactions described in the Exchange Agreement. This condition precedent may only be waived by both Seller and Purchaser in writing. 

  
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 4.9 Failure or Waiver of Conditions Precedent. If any of the conditions set forth in
Sections 4.6, 4.7, or 4.8 are not fulfilled (other than as a result of a default or breach by either party of their obligations hereunder (in which case the provisions of Article VI shall apply)), or waived on or before
the Closing Date, the sole and exclusive remedy available to the party benefited by such conditions shall be to terminate this Agreement by written notice to the other party, in which event this Agreement, the Exchange Agreement, and the Investment
Agreement shall terminate and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder or thereunder except to the extent that any right, obligation or liability set forth herein expressly survives
termination of this Agreement or the Exchange Agreement. Either party benefited by a condition set forth in Sections 4.6 or 4.7, as applicable, may, at its election, at any time or times on or before the date specified for the
satisfaction of the condition, waive in writing the benefit of such condition. 
 ARTICLE V 

REPRESENTATIONS, WARRANTIES AND COVENANTS 
 5.1 Representations and Warranties Regarding Seller. Seller hereby makes the following representations and warranties to Purchaser as of the Effective Date and as of the Closing Date: 

(a) Organization and Authority. Seller has been duly organized and is validly existing and in good standing under the laws of
Delaware. Seller has the full right, power and authority to enter into this Agreement and to transfer the Interests pursuant hereto and to consummate or cause to be consummated the transactions contemplated herein to be made or consummated by
Seller, subject to any consent rights of parties to the Assigned Agreements or any consents or approvals required for the transfer of any Permits. The person signing this Agreement on behalf of Seller is duly authorized to do so and to deliver it to
Purchaser, and this Agreement is enforceable against Seller in accordance with its terms, subject to bankruptcy, insolvency and similar laws. 
 (b) No Breach. The execution, delivery and performance of this Agreement by Seller and the consummation of the transactions contemplated herein will not: (i) result in a breach or acceleration
of or constitute a default or event of termination under the provisions of any agreement, Organizational Document (or organizational document of Seller), or instrument by which any of Seller, the Company or the Property is bound, subject to any
consent rights of parties to the Assigned Agreements or any consent of approvals required for the transfer of any Permits; (ii) constitute or result in the violation or breach by Seller or the Company of any judgment, order, writ, injunction or
decree issued against or imposed upon Seller or the Company or result in the violation of any applicable law, rule or regulation of any governmental authority, which in the case of any of the foregoing would have a Material Adverse Effect.

  
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 (c) Litigation/Condemnation. Except as set forth on Schedule 5.1(c) attached
to the Property Information Letter, there is no litigation, arbitration or other proceeding which is pending against (or, to Seller’s knowledge, is threatened to be filed against) Seller or the Company (or to Seller’s knowledge pending
against any other party), that arises out of the ownership of the Property, or that affects the Property, an adverse determination of which is reasonably likely and would, individually or in the aggregate, have (i) a Material Adverse Effect or
(ii) a material adverse impact on Seller’s ability to perform its obligation hereunder. Seller has not received written notice of any condemnation proceedings against the Property nor, to Seller’s knowledge, are any such proceedings
threatened. 
 (d) Non-Foreign Entity. Seller is not a “foreign person” or “foreign corporation” as
those terms are defined in the Internal Revenue Code of 1986, as amended, and the regulations. 
 (e) Interests.

 (i) Seller is the sole legal and beneficial owner of the Interests, free and clear of all Liens. Seller is,
and for the five (5) years preceding the Effective Date has been, the sole member of the Company. The Interests constitute all of the issued and outstanding membership or other equity interests in the Company, have been duly authorized and
validly issued to Seller in compliance with all applicable laws and the Current LLC Agreement, are fully paid and non-assessable, and are held free and clear of all liens, mortgages, pledges, charges, security interests, options, rights of others,
equitable interests, claims, or encumbrances of any kind (collectively, “Liens”). 
 (ii)
Except for the Interests, (A) there are no existing options, warrants, calls, preemptive rights, rights of first refusal, equity appreciation, phantom stock or similar rights, indebtedness having general voting rights or voting debt or
subscriptions or other rights, agreements, arrangements or commitments of any character, relating to the issued or unissued equity interests of the Company obligating the Company to issue, transfer or sell or cause to be issued, transferred or sold
any equity interests or voting debt of, or other equity interest in, the Company or securities convertible into or exchangeable for such equity interests, or obligating the Company to grant, extend or enter into any such option, warrant, call,
subscription or other right, agreement, arrangement or commitment, and (B) there are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any Interests or to provide funds to make any
investment (in the form of a loan, capital contribution or otherwise) in any other entity. 
  

  
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 5.2 Representations and Warranties Regarding the Company. Seller hereby makes the
following representations and warranties to Purchaser as of the Effective Date and as of the Closing Date: 
 (a) Organization
and Authority of the Company. The Company is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, is duly qualified to do business and is in good standing in the State of
Florida, and has all requisite limited liability company power and authority to own the Property and to carry on its business as it is now conducted. For the five (5) years preceding the Effective Date, the Company has not failed to preserve
its existence as a limited liability company under the laws of the State of Delaware. 
 (b) Organizational Documents.
The Seller has caused true, correct and complete copies of all of the following to be delivered to Purchaser (collectively, the “Organizational Documents”): (i) the Company’s certificate of limited partnership and all
amendments thereto and restatements thereof, (ii) the Company’s certificate of conversion from a limited partnership to a limited liability company, (iii) the Company’s certificate of formation and all amendments thereto and
restatements thereof, and (iv) the Fifth Amended and Restated Limited Liability Company Agreement of the Company, dated July 13, 2011 (the “Current LLC Agreement”). The Current LLC Agreement is in full force and effect and
the rights, preferences and privileges of the Interests are as set forth in the Current LLC Agreement. Other than the Current LLC Agreement, there is no voting trust, voting agreement, proxy or other agreement or understandings with respect to the
voting of the equity interests of the Company. 
 (c) No Officers and Directors. The Company does not have, and in the
five (5) years preceding the Effective Date has not had, any officers or directors The Seller does not have, and in the five (5) years preceding the Effective Date has not had, any officers or directors. 

(d) No Subsidiaries. The Company does not own, and in the five (5) years preceding the Effective Date has not owned, directly
or indirectly, any equity interest or other ownership interest in any other Person. 
 (e) Assets and Business
Activities. 
 (i) Other than the Property and assets related thereto and the funds in the Company Accounts,
the Company owns no other assets. 
 (ii) The Company is not engaged, and in the five (5) years preceding
the Effective Date has not engaged, directly or indirectly, in any business or activities other than ownership of the Property and operation of the Hotel, and does not have any Liabilities other than those arising from its ownership of the Property
and operation of the Hotel. 
 (iii) In the five (5) years preceding the Effective Date the Company has not
owned, (A) any real property other than the Real Property, or (B) any material assets other than (x) amounts realized through the operation of the Property and the Hotel, and (y) personal property and
intangible property incidental to or necessary or convenient for the operation of the Hotel. 

  
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 (iv) The Company is not, and in the five (5) years preceding the
Effective Date has not been, (A) the subject of any petition, either voluntary or involuntary, seeking to take advantage of any applicable insolvency, bankruptcy, liquidation or reorganization statute, or (B) the subject of
an assignment for the benefit of creditors. 
 (f) Indebtedness. As of the Closing, the Company shall not be obligated
under and shall not be responsible for any Indebtedness other than trade payables incurred in the ordinary course of ownership and operation of the Property. 
 (g) Contracts. The Property Contracts, together with any Bookings, Space Leases, insurance policies, the Existing Management Agreement, and any contract or agreement which is terminated or expires
on or before the Closing Date are the sole Contracts to which the Company is a party or by which it or any of its assets are bound. 
 (h) No Employees. The Company does not employ, nor in the five (5) years preceding the Effective Date has not employed, any employee(s). The Seller does not employ, nor in the five
(5) years preceding the Effective Date has not employed, any employee(s). The Company does not have (and is not providing, sponsoring or participating in), and in the five (5) years preceding the Effective Date has not had (and has not
provided, sponsored or participated in), any employee benefits or employee benefit plans. 
 (i) Taxes. 

(i) Company has not (nor has Seller on its behalf) made a “check-the-box” election to be taxed as a corporation
pursuant to Treas. Reg. § 301.7701-3, and the Company is, and at all times in the five (5) years preceding the Effective Date has been, properly classified as an entity disregarded as separate from Seller for U.S. federal income Tax
purposes in accordance with Treas. Reg. § 301.7701-3; 
 (ii) The Company has provided Purchaser with
true, correct, and complete copies of all material Tax Returns for the five (5) years preceding the Effective Date, all of which have been timely filed with the appropriate Tax Authorities; 

(iii) The Company has paid in full all Taxes which are or have become due and payable and would be delinquent if not paid
(whether or not shown on any Tax Return) other than those currently payable without penalty or interest; 
 (iv)
The Company is not currently the beneficiary of any extension of time in which to file a Tax Return; 
 (v)
There are no outstanding requests, agreements, consents or waivers to extend the statutory period of limitations applicable to the assessment of any Taxes or deficiencies against the Company, and no power of attorney granted by the Company with
respect to any Taxes or Tax Returns is currently in force; 

  
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 (vi) No Audits are presently pending with regard to any Taxes or Tax Returns
of the Company, and no such Audit is threatened, and no deficiency or adjustment for any Taxes has been proposed, asserted, or assessed against the Company. No material adjustments have been asserted as a result of any Audit which have not been
resolved and fully paid, and no issue has been raised by any Tax Authority in any Audit of the Company that, if raised with respect to any other period not so audited, would be expected to result in a proposed deficiency for any period not so
audited; 
 (vii) The Company is not a party to, is not bound by, and does not have any obligation under, any
Tax sharing agreement, Tax allocation agreement, Tax indemnification agreement, agreement where liability is determined by reference to the Tax liability of a third party, or any similar agreement, contract, or arrangement, and the Company does not
have any liability for or in respect of the Taxes of, or determined by reference to the Tax liability of, another Person; 
 (viii) All amounts required to be collected or withheld by the Company with respect to Taxes have been duly collected or withheld and any such amounts that were or are required to be remitted to any Tax
Authority have been duly and timely remitted. 
 5.3 Representations and Warranties Regarding the Property. Seller hereby
makes the following representations and warranties to Purchaser as of the Effective Date and as of the Closing Date: 
 (a)
Violations of Law. Except as set forth on Schedule 5.3(a) attached to the Property Information Letter, the Company has not received written notices of violations of applicable Legal Requirements with respect to the Property that would
have a Material Adverse Effect. 
 (b) Space Leases. Other than the Space Leases listed on Schedule 5.3(b)
attached hereto, (i) there are no material leases or other agreements currently affecting the Hotel (other than Bookings) pursuant to which any party has a right to occupy all or any portion of the Property and (ii) the Company has made
available to Purchaser true, correct and complete copies of the Space Leases. To Seller’s knowledge, there is no existing default by Seller or any tenant under any of the Space Leases and the Space Leases are in full force and effect. For
purposes of this Section 5.3(b), a “material” lease or agreement is one that applies to more than 500 square feet of space for more than 30 days or requires payments in excess of $50,000 in any 12 month period. 

  
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 (c) Property Contracts. Other than the Property Contracts listed on Schedule
5.3(c) attached hereto, (i) there are no material Property Contracts that will affect the Property or be binding on or payable by the Company following the Closing, and (ii) the Company has made available to Purchaser
true, correct and complete copies of the material Property Contracts (other than the Property Contracts listed in items 60, 68, 69, 72, and 73 on Schedule 5.3(c)). To Seller’s knowledge, there is no existing default by Seller or any
other party under any of the material Property Contracts. For purposes of this Section 5.3(c), a “material” Property Contract is a Property Contract that is reasonably likely to require payments in excess of $50,000 in any 12
month period or is not terminable without penalty or premium on 30 days’ notice or less. Notwithstanding any of the foregoing, each of the Property Contracts listed in items 59 through 73 on Schedule 5.3(c) is terminable without penalty
or premium on 30 days’ notice or less.
 (d) Employment Contracts. Except as set forth on Schedule 5.3(d)
attached to the Property Information Letter, there are no currently effective employment contracts or collective bargaining agreements with respect to the Property or the Hotel. 

(e) Financial Information. Seller has provided to Purchaser true, accurate and complete copies of (i) third party
reports regarding the physical condition of the Property received by the Company within the two (2) year period prior to the Effective Date and (ii) the financial statements of the Company for calendar years 2009, 2010 and 2011
(restated as necessary to reflect equity compensation amounts relating to such periods). 
 (f) Permits. To Seller’s
knowledge, Schedule 5.3(f) contains a true, correct and complete list of all licenses, franchises and permits held by Seller and used in or relating to the ownership, occupancy or operation of the Property or any part thereof as of the
Effective Date. Except as otherwise disclosed to Purchaser on Schedule 5.3(f), (i) the Company has not received any written notice of any uncured violations of any Permit and (ii) all of the Permits described on
Schedule 5.3(f) are in full force and effect, except to the extent that any such violation or the failure of any such Permit to be in full force and effect would not have a Material Adverse Effect. 

(g) Tax Contests. To Seller’s knowledge, except as set forth on Schedule 5.3(g) attached to the Property Information
Letter, neither Seller nor the Company is contesting any Property Taxes with respect to the Property. 
 (h) Environmental
Conditions. There are no employees, officers or directors of Seller and/or the Company with knowledge of any “Recognized Environmental Conditions” or “Historic Recognized Environmental Conditions,” as those terms are defined
in that certain Phase I Environmental Site Assessment of Delano Hotel dated as of September 24, 2012 (the “Phase I Report”), except to the extent set forth in the Phase I Report. 

5.4 [Intentionally Omitted.] 

  
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 5.5 Covenants of Seller. Between the Effective Date and the Closing Date: 

(a) Seller shall cause the Company to carry on the business of the Property as a full-service hotel in the ordinary course and, to the
extent reasonably practicable, in a manner consistent with prior practice. 
 (b) Seller shall use commercially reasonable
efforts to cause the Company to maintain the Property in its present order and condition, normal wear and tear and damage from casualty and condemnation excepted. 
 (c) Seller shall not permit the Company to remove or permit to be removed any material portion of the Personal Property except as necessary for repairs or replacements of worn out or obsolete items.

 (d) Seller shall cause the Company to maintain or cause Manager to maintain its property and casualty insurance coverage on
the Property until the Closing consistent with prior practice. 
 (e) Prior to entering into any new service contract, equipment
lease or space lease, or modifying any existing Property Contracts or Spaces Leases, that would bind the Company following Closing that would, if the New Management Agreement were in effect at the time, require the consent of the “owner”
thereunder, Seller shall not permit the Company to enter into such service contract, equipment lease or space lease or modify such Company Contract or Space Lease without first obtaining Purchaser’s consent thereto (which may only be granted or
withheld by Purchaser in accordance with the standard set forth in the New Management Agreement). 
 (f) [Intentionally
Deleted.] 
 (g) Subject to the limitations set forth in this Agreement, Seller shall, or cause the Company to, file all
required Tax Returns and pay all Taxes due and owing in accordance with applicable law and consistent with past practice. 
 5.6
Representations and Warranties of Purchaser. Purchaser hereby makes the following representations and warranties to Seller as of the Effective Date and as of the Closing Date: 

(a) ERISA. Purchaser is not acquiring the Property with the assets of an employee benefit plan as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974. 
 (b) Organization and Authority. Purchaser has been duly organized
and is validly existing and in good standing under the laws of the State of Delaware. Purchaser has the full right, power and authority to purchase the Property as provided in this Agreement and to carry out Purchaser’s obligations hereunder,
and all requisite action necessary to authorize Purchaser to enter into this Agreement and to carry out its obligations hereunder have been, or by the Closing will have been, taken. The person signing this Agreement on behalf of Purchaser is
authorized to do so, and this Agreement is enforceable against Purchaser in accordance with its terms, subject to bankruptcy, insolvency and similar laws. 

  
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 (c) No Breach. The execution, delivery and performance of this Agreement by Purchaser
and the consummation of the transaction contemplated herein will not: (i) result in a breach or acceleration of or constitute a default under any agreement or instrument by which Purchaser is bound or affected which would have a material
adverse impact on the ability of Purchaser to timely close the acquisition of the Property pursuant to the terms of this Agreement; or (ii) constitute or result in the violation or breach by Purchaser of any judgment, order, writ, injunction or
decree issued against or imposed upon Purchaser or result in the violation of any applicable law, rule or regulation of any governmental authority which, with respect to any of the foregoing, would have a material adverse impact on the ability of
Purchaser to timely complete the acquisition of the Property pursuant to this Agreement. 
 (d) No Consents. Other than
those that will be obtained, filed or given, as applicable, prior to Closing, no consent, approval or action of, filing with or notice to any governmental or regulatory authority or any other person or entity on the part of Purchaser is required in
connection with the execution, delivery and performance of Agreement or the consummation of the transactions contemplated. 

(e) Pending Actions. There is no action, suit, arbitration, unsatisfied order or judgment, government investigation or proceeding
pending against Purchaser an adverse determination of which would, individually or in the aggregate, reasonably be expected to materially and adversely interfere with the consummation of the transactions contemplated by this Agreement. 

(f) Patriot Act Compliance. Neither Purchaser nor any entity controlled by Purchaser (i) is in violation of any applicable
anti-money laundering or anti-bribery laws and regulations, (ii) is a person or entity listed on the Lists; (iii) is a person or entity who has been determined by competent authority to be subject to the prohibitions contained in the
Order; or (iv) is owned or controlled by, or acts for or on behalf of, any person or entity on the Lists or any other person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Order.

 5.7 Covenants of Purchaser and/or of Seller. 
 (a) Guest Reservations. Purchaser shall cause the Company to honor all reservations made in the ordinary course of business at the Hotel and in accordance with this Agreement (including honoring
the rates at which such reservations were made, inclAuding reservations made on a wholesale, reward points redemption, or other basis), or for any related conference, banquet, or meeting space or any other facilities in connection with the Hotel
made by the Company on or prior to the Cut-Off Time for periods on or after the Closing Date. The provisions of this Section 5.7(a) shall survive Closing for a period of six (6) months or any earlier termination of this Agreement.

  
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 (b) Consents. Without limitation on Seller’s obligation to deliver the ABT
Transfer Materials pursuant to Section 4.2(i) or perform the actions required pursuant to Section 5.7(c), Seller shall use commercially reasonable efforts (which shall not require the payment of money to any third party other
than Seller’s attorneys) to obtain any consents or approvals required under the Property Contracts or Permits with respect to the assignment Interests on or prior to the Closing, provided that if such consents or approvals are not granted, it
shall not constitute a failure of condition or otherwise excuse Purchaser’s obligation to consummate the transactions under this Agreement, nor shall Purchaser have any right to assert a claim against Seller following Closing with respect
thereto. Purchaser shall reasonably cooperate with any attempts or requests to obtain such consents or approvals, as applicable. 
 (c) Correction Matters. Between the Effective Date and the Closing, Seller shall cause the Company to diligently prosecute towards completion, at Seller’s sole cost and expense, the following
matters (collectively, the “Correction Matters”): (i) the transfer to the name of the Company of all Permits disclosed on Schedule 5.3(f), and (ii) any work or other action required to cause all Permits disclosed on
Schedule 5.3(f) to be in “effective” as opposed to “pending” status under applicable Legal Requirements (including without limitation curing all violations of applicable Legal Requirements to the extent required to allow
such Permits to be in “effective” status); provided that if the Correction Matters are not completed prior to the Closing, it shall not constitute a failure of condition or otherwise excuse Purchaser’s obligation to consummate the
transactions under this Agreement. From and after the Closing, Seller and Purchaser shall jointly pursue and diligently prosecute towards completion the Correction Matters. Seller shall be responsible for all costs incurred from and after
August 1, 2012 in connection therewith (including, without limitation, professional fees, inspection fees, permit fees or costs of any corrective work) up to a sum equal to $200,000, and Seller shall have no further liability therefor. All
costs incurred in excess of $200,000 shall be borne by Purchaser. Purchaser’s obligations under this Section 5.7(c) shall survive the Closing without limitation. 

(d) Books and Records. For a period of four (4) years after Closing in case of Seller’s need in response to any legal
requirement, a tax audit, tax return preparation or litigation threatened or brought against Seller, Purchaser shall keep the books and records for the Property with respect to the period of Seller’s ownership of the Company (to the extent that
such records were provided to Purchaser pursuant to Section 4.2(d) and Seller did not retain copies thereof), at Purchaser’s expense, and allow Seller and its agents or representatives reasonable access, upon reasonable advance
notice (which notice shall identify the nature of the information sought by Seller), at all reasonable times to examine and make copies of any and all books and records at Seller’s cost and expense, which right shall survive the Closing.

  
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 5.8 Employees. For purposes of this Agreement, “Hotel Employees”
means collectively, all individuals employed at the Hotel by Manager as of the Closing Date, irrespective of whether such individuals are active or on leaves of absence or otherwise inactive but still employed at the Hotel. Purchaser agrees that to
the extent permitted under the New Management Agreement it will cause the Company to cause the Manager to continue to employ, following the Closing, the Hotel Employees (the “Continuing Employees”) so that no layoff, closing or
other termination notices shall be required and Seller shall not otherwise incur any liability pursuant to the provisions of the Federal Worker Adjustment and Retraining Notification Act. 29 U.S.C. 2101-2109 (the “Federal WARN Act”)
or other similar state or local law applicable to the Company, the Hotel, Manager or the Property. Purchaser further agrees that the Company or, as the case may be, the Manager shall be required to retain and discharge, in accordance with their
terms, all obligations and liabilities of the Company or Manager with respect to costs of termination of any Hotel Employee after the Closing including, without limitation, any severance claim made after the Closing or arising from the transactions
contemplated by this Agreement. Purchaser’s obligations under this Section 5.8 shall survive the Closing without limitation. 
 ARTICLE VI 
 DEFAULT 

6.1 Default by Purchaser. If the sale of the Interests as contemplated hereunder is not consummated due to Purchaser’s
default hereunder, Seller shall be entitled, as its sole and exclusive remedies, to those remedies set forth in Section 8.3 and 10.12 of the Exchange Agreement, to the extent applicable. After Closing has occurred, except for post-closing
adjustments described in Section 4.4, Seller’s sole and exclusive remedies for any claims against Purchaser hereunder shall be: (a) to assert any legal or equitable claims against Purchaser for Purchaser’s obligation to
pay attorneys’ fees and costs under Section 10.15; and (b) to pursue claims under, and subject to, Article VII hereunder. 
 6.2 Default by Seller. If (x) the sale of the Interests as contemplated hereunder is not consummated due to Seller’s default hereunder, or (y) prior to Closing Seller defaults
hereunder and, with respect to any default under this clause (y) only, such default shall continue for five (5) days after notice to Seller, then Purchaser shall be entitled, as its sole and exclusive remedies, to the
remedies set forth in Sections 8.4 and 10.12 of the Exchange Agreement, to the extent applicable. After Closing has occurred, except for post-closing adjustments described in Section 4.4, Purchaser’s sole and exclusive remedies for
any claims against Seller hereunder shall be: (a) to assert any legal or equitable claims against Seller for Seller’s obligation to pay attorneys’ fees and costs under Section 10.15; and (b) to pursue claims under,
and subject to, Article VII hereunder. 
 ARTICLE VII 

SURVIVAL, INDEMNIFICATION AND LIMITATIONS ON LIABILITY 
 7.1 Survival. Subject to the provisions of Section 7.6, the representations and warranties (a) of Seller set forth in Section 5.1 (other than
Section 5.1(c)) and Section 5.2 of this Agreement shall survive the Closing for a period of six (6) years, (b) of Seller set forth in this Agreement, other than as set forth in the foregoing clause (a), shall
survive the Closing for a period of six (6) months, and (c) of Purchaser set forth in this Agreement shall survive Closing for a period of six (6) months. 

  
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 7.2 Seller’s Indemnification. From and after the Closing, Seller shall, subject
to the provisions of this Section 7.1 and Section 7.5, defend, indemnify, save and hold Purchaser, the Company and its Affiliates, and each of their respective employees, contractors, managers, members, successors, officers,
directors, and agents (collectively, “Purchaser Indemnitees”) harmless from and against any and all losses, injuries, claims, penalties, Liabilities, fines, damages, costs or expenses (including, without limitation, reasonable
attorneys’ fees and costs) (collectively, “Losses”) arising out of, resulting from or relating to any of the following (regardless of whether a Third Party Claim is involved or not): 

(a) the inaccuracy of any representation or warranty of Seller; 
 (b) the failure by Seller to perform or fulfill any covenant or agreement of Seller contained in this Agreement; 
 (c) in connection with the Property, any physical or personal injury or death caused to any person or damage to property of unaffiliated third parties, to the extent such injury, death, or damage occurred
prior to the Closing Date; and/or 
 (d) any Liability attributable to the ownership or operation of the Property (excluding the
physical or environmental condition thereof except as expressly set forth herein) that arises out of, results from or relates to any period prior to, up through, and including the Closing, other than (x) Liabilities arising under the
Property Contracts, (y) Liabilities actually pro-rated pursuant to Section 4.4 (including all Prorated Hotel Payables) either at the Closing or thereafter pursuant to Section 4.4(k), or (z) Liabilities
waived by Purchaser pursuant to Section 9.1.  
 7.3 Purchaser’s Indemnification. From and after the
Closing, Purchaser shall, subject to the provisions of this Section 7.3, defend, indemnify, save and hold harmless Seller and its Affiliates, and their respective employees, contractors, officers, directors, and agents (collectively,
“Seller Indemnitees”) from and against any and all Losses arising out of, resulting from or relating to any of the following (regardless of whether a Third Party Claim is involved or not): 

(a) the inaccuracy of any representation or warranty of Purchaser; 

(b) the failure by Purchaser to perform or fulfill any covenant or agreement of Purchaser contained in this Agreement other than any such
failure as to which Seller had knowledge on or before the Closing Date; 
 (c) in connection with the Property, any physical or
personal injury or death caused to any person or damage to property of unaffiliated third parties, to the extent such injury, death, or damage occurred on or after the Closing Date (other than any Liabilities of any Seller Indemnitees under the New
Management Agreement); and/or 

  
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 (d) any Liability attributable to the ownership or operation of the Property that arises out
of, results from or relates to any period after the Closing, other than (x) Liabilities actually pro-rated pursuant to Section 4.4 (including all Prorated Hotel Payables) either at the Closing or thereafter pursuant to
Section 4.4(k); and (y) Liabilities of any Seller Indemnitees arising under the New Management Agreement, any other agreements with Manager or Seller effective as of or following the Closing, or this Agreement or the Exchange
Agreement. 
 7.4 Notice and Resolution of Claims. 

(a) Notice. Each Person entitled to assert a claim for a breach of a representation or warranty or for indemnification pursuant to
this Agreement (an “Indemnitee”) shall give written notice to the breaching or indemnifying party or parties (the “Indemnifying Party”) promptly after obtaining knowledge of any claim that it may, as applicable. The
notice shall set forth in reasonable detail the claim and the basis therefor. Failure to give the notice in a timely manner shall not release the Indemnifying Party from its obligations hereunder, except to the extent that the failure materially
prejudices the ability of the Indemnifying Party to contest that claim. 
 (b) Defense of Third Party Claims. If a claim
for breach or indemnification pursuant to this Agreement shall arise from any action made or brought by a third party that would reasonably be expected to result in indemnifiable Losses (a “Third Party Claim”), the Indemnifying
Party may assume the defense of the Third Party Claim. If the Indemnifying Party assumes the defense of the Third Party Claim, the defense shall be conducted by counsel chosen by the Indemnifying Party, who shall be reasonably acceptable to
Indemnitee, provided that the Indemnitee shall retain the right to employ its own counsel and participate in the defense of the Third Party Claim at its own expense (which shall not be recoverable from the Indemnifying Party under this Article
VII unless (i) the Indemnitee is advised by counsel reasonably satisfactory to the Indemnifying Party that use of counsel of the Indemnifying Party’s choice would be expected to give rise to a conflict of interest, (ii) the
Indemnifying Party shall not have employed counsel to represent the Indemnitee within a reasonable time after notice of the assertion of any such claim or institution of any such action or proceeding, or (iii) the Indemnifying Party shall
authorize the Indemnitee in writing to employ separate counsel at the expense of the Indemnifying Party, in each of which cases the reasonable expenses of counsel to the Indemnitee shall be reimbursed by the Indemnifying Party). In no event shall
the Indemnifying Party be obligated to pay the fees and expenses of more than one counsel (other than local counsel) for all Indemnitees with respect to any claim indemnified under this Article VII; provided that an Indemnitee shall be
entitled to employ separate counsel at the expense of the Indemnifying Party if the Indemnitee is advised by counsel reasonably satisfactory to the Indemnifying Party that use of such other counsel would give rise to a conflict of interest, in which
case the reasonable expenses of counsel to such Indemnitee shall be reimbursed by the Indemnifying Party. Notwithstanding the foregoing, (A) no Indemnifying Party shall be entitled to settle any Third Party Claim without the Indemnitee’s
prior written consent, which shall not be unreasonably withheld, conditioned or delayed, unless it has assumed the defense of such Third Party Claim and as part of the settlement the Indemnitee is released from all liability with respect to the
Third Party Claim and the settlement does not impose any equitable remedy on the Indemnitee or require the Indemnitee to admit any fault, culpability or failure to act by or on behalf of the Indemnitee, and (B) no Indemnitee shall be entitled
to settle any Third Party Claim without the Indemnifying Party’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed, unless the Third Party claim is for money damages only and such settlement does not
include a statement as to, or an admission of fault, culpability or a failure to act by or on behalf of the Indemnifying Party and as part of such settlement the Indemnifying Party is released from all liability (for indemnification pursuant to this
Article VII and otherwise) with respect to such Third Party Claim. If the Indemnifying Party does not notify the Indemnitee within twenty (20) Business Days after receipt of the Indemnitee’s notice of a Third Party Claim of
indemnity hereunder that it elects to assume the control of the defense of any Third Party Claim, the Indemnitee shall have the right to contest the Third Party Claim but shall not thereby waive any right to indemnity therefor pursuant to this
Agreement and the costs of such actions by the Indemnitee shall be paid by the Indemnifying Party. 

  
 33 

 7.5 Limitations on Liability. Except for post-closing adjustments described in
Section 4.4: 
 (a) For all claims asserted from and after the Closing Date pursuant to Section 7.2(a)
(other than breaches of Seller’s representations contained in Section 5.1, Section 5.2, and the final sentence of Section 5.3(c)), Section 7.2(b) (other any breach of Seller’s covenant
contained in the last sentence of Section 2.3(c)), Section 7.3(a) or Section 7.3(b): 
 (i) Seller shall not have any obligation or liability to any Purchaser Indemnitee hereunder unless and until the aggregate amount of uninsured Losses incurred or suffered by the Purchaser arising
hereunder shall have exceeded $500,000, in which case Seller shall be obligated and liable only with respect to such excess. 
 (ii) Purchaser shall not have any obligation or liability to any Seller Indemnitee hereunder unless and until the aggregate amount of uninsured Losses suffered by the Seller Indemnitees arising hereunder
shall have exceeded $500,000, in which case Purchaser shall be obligated and liable only with respect to such excess. 
 (iii) The aggregate liability of Seller shall not exceed $5,000,000. 
 (iv) The aggregate liability of Purchaser shall not exceed $5,000,000. 
 (b) The
aggregate liability of Seller or Purchaser (as applicable) for claims pursuant to Section 7.2(a) (relating to any breach of Seller’s representations contained in Section 5.1, Section 5.2, or the final
sentence of Section 5.3(c) only), Section 7.2(b) (relating to Seller’s covenant in the last sentence of Section 2.3(c) only), Section 7.2(c), Section 7.2(d),
Section 7.3(c), or Section 7.3(d), shall not be subject to any thresholds or limits. 

  
 34 

 7.6 Limit on Time for Assertion of Claims. Neither Seller nor Purchaser shall have
any obligation or liability pursuant to this Agreement, respectively, for (a) any breach of any representation or warranty (or any claim for indemnification on the basis of such a breach) unless notice of a claim asserting such breach or claim
shall have been given prior to the termination of the applicable survival period therefor set forth in Section 7.1 (and if such notice shall have been given prior to such termination, then the claim for indemnity with respect thereto
shall survive indefinitely until such claim is finally resolved) and (b) any other claim for indemnification pursuant to Section 7.2 (other than Section 7.2(a)) or Section 7.3 (other than
Section 7.3(a)) unless notice of such claim asserting such claim shall have been given prior to the date that is six (6) years after the Closing Date. 
 7.7 Other Limitations on Indemnification. No Seller Indemnitee shall be entitled to seek or obtain contribution from, or indemnification by, and each Seller Indemnitee agrees that it will not make
any claim for contribution or indemnification against, the Company or any of its Affiliates, whether under any organizational documents of the Company (including the Current LLC Agreement) or any such Affiliate, this Agreement, applicable limited
liability company laws or other Legal Requirements or otherwise, in respect of any amounts due from Seller to (or any claim against Seller by) Purchaser or any other Purchaser Indemnitee under this Article VII, and Seller (on its own behalf
and on behalf of any Affiliate thereof) will hold each of the Purchaser Indemnitees harmless and will indemnify the Purchaser Indemnitees in respect of all such amounts due from Seller to (or any claim against Seller by) Purchaser or any other
Purchaser Indemnitee under this Article VII and shall not seek to join the Company, Purchaser or any Affiliate thereof in connection with any suit arising under this Agreement. 

7.8 Interpretation. Each of Seller and Purchaser intend that this Agreement be interpreted as if this Agreement provided only for
the purchase and sale of the Property rather than the purchase and sale of the Interests. Accordingly it is the intent of the parties that (a) all Liabilities that would have been retained by or remained with the Company as a seller of
the Property to Purchaser on terms consistent with this Agreement shall be covered by and subject to the indemnification obligations of the Seller to the Purchaser Indemnitees pursuant to Section 7.2, and (b) all Liabilities that
would have been transferred to or after the Closing incurred by Purchaser as a purchaser of the Property on terms consistent with this Agreement shall be covered by and subject to the indemnification obligations of the Purchaser to the Seller
Indemnitees pursuant to Section 7.3. 

  
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 ARTICLE VIII 
 RISK OF LOSS 
 8.1 Minor Damage. In the event of loss or damage to
the Real Property or any portion thereof (other than loss or damage of a nature that that is not expected to cost more than $100,000 to repair) Seller shall promptly inform Purchaser thereof. In the event of loss or damage to the Real Property or
any portion thereof which is not “major” (as hereinafter defined), this Agreement shall remain in full force and effect provided the Company shall retain all right, title and interest to any claims and proceeds it may have with respect to
any casualty insurance policies or condemnation awards relating to the premises in question (other than business interruption proceeds attributable to the period prior to Closing and proceeds in respect of amounts expended by or on behalf of the
Company prior to Closing to restore the Property). In such event, the Adjustment shall be adjusted in favor of Purchaser by an amount equal to the deductible amount under the Company’s insurance policy with respect to such loss or damage and
not paid by the Company prior to Closing and the Company shall retain all of its rights to proceeds under the applicable policy with respect to any claim for the applicable loss (other than business interruption proceeds attributable to the period
prior to Closing, which shall belong to Seller, and proceeds in respect of amounts expended by or on behalf of the Company prior to Closing to restore the Property). Upon Closing, full risk of loss with respect to the Property shall pass to
Purchaser. 
 8.2 Major Damage. In the event of a “major” loss or damage to the Real Property, Purchaser may,
upon notice in writing to Seller delivered within ten (10) days after Seller sends Purchaser written notice of the occurrence of such major loss or damage, terminate this Agreement by written notice to Seller, in which event this Agreement and
the Exchange Agreement shall terminate and thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder or thereunder except to the extent that any right, obligation or liability set forth herein expressly
survives termination of this Agreement or the Exchange Agreement. If Purchaser fails for any reason to deliver written notice of termination to Seller within ten (10) days after Seller sends Purchaser written notice of the occurrence of major
loss or damage, then Purchaser shall be deemed to have elected to proceed to Closing under this Agreement and the Exchange Agreement. If Purchaser elects, or is deemed to have elected, to proceed with Closing, the Company shall retain all right,
title and interest to any claims and proceeds it may have with respect to any casualty insurance policies or condemnation awards relating to the premises in question (other than business interruption proceeds attributable to the period prior to
Closing, which shall belong to Seller, and proceeds in respect of amounts, if any, expended by or on behalf of the Company prior to Closing to make any reasonably necessary emergency repairs to the Property). Upon Closing, full risk of loss with
respect to the Property shall pass to Purchaser. 
 8.3 Definition of “Major” Loss or Damage. For purposes of
Sections 8.1 and 8.2, “major” loss or damage refers to the following (a) loss or damage to the Real Property or any portion thereof such that the cost of repairing or restoring the premises in question to a condition
substantially identical to that of the premises in question prior to the event of damage would be, in the opinion of a licensed independent architect or registered professional engineer with a minimum of ten (10) years’ experience related
to commercial real estate construction selected by Seller and approved by Purchaser, equal to or greater than $90,000,000 or (b) any loss due to a condemnation which permanently and materially adversely modifies or impairs the continued
operation of the Hotel. 

  
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 ARTICLE IX 
 DISCLAIMERS AND WAIVERS 
 9.1 DISCLAIMERS. EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT OR ANY AGREEMENTS EXECUTED AND DELIVERED BY SELLER AT CLOSING: IT IS UNDERSTOOD AND AGREED THAT SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EXPRESSED OR
IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY, MERCHANTABILITY, PROFITABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, ZONING, TAX CONSEQUENCES, LATENT OR PATENT PHYSICAL
OR ENVIRONMENTAL CONDITION, UTILITIES, OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS, THE TRUTH, ACCURACY OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION
RELATING TO THE COMPANY OR THE PROPERTY PROVIDED BY OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING REGARDING THE PROPERTY OR THE COMPANY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING THE PROPERTY SHALL BE CONVEYED FROM
SELLER TO PURCHASER THROUGH THE CONVEYANCE OF THE INTERESTS “AS IS, WHERE IS, WITH ALL FAULTS”, EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS AGREEMENT. PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT LIABLE
FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES, STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE INTERESTS, THE COMPANY THE PROPERTY OR RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, PROPERTY INFORMATION
PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY AND ANY ACTUAL OR PROPOSED BUDGETS FOR THE PROPERTY) MADE OR FURNISHED BY SELLER, THE COMPANY, THE MANAGER OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT REPRESENTING OR PURPORTING TO REPRESENT
SELLER OR THE COMPANY, TO WHOMEVER MADE OR GIVEN, DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN THIS AGREEMENT OR ANY AGREEMENTS EXECUTED AND DELIVERED BY SELLER AT CLOSING. PURCHASER REPRESENTS TO SELLER THAT
PURCHASER IS A SOPHISTICATED INSTITUTIONAL INVESTOR WITH SUBSTANTIAL EXPERIENCE AND EXPERTISE WITH INVESTMENT PROPERTIES AND HAS CONDUCTED, OR WILL CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE COMPANY AND THE PROPERTY, INCLUDING BUT NOT
LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS OF THE PROPERTY, AS PURCHASER DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE COMPANY AND THE PROPERTY AND THE EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH

  
 37 

 
RESPECT TO ANY HAZARDOUS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY, AND WILL RELY SOLELY UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS AGENTS OR
EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE DOCUMENTS DELIVERED AT CLOSING. UPON CLOSING AND SUBJECT TO THE REPRESENTATIONS AND WARRANTIES
OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE DOCUMENTS DELIVERED AT CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL CONDITIONS, MAY
NOT HAVE BEEN REVEALED BY PURCHASER’S INVESTIGATIONS, AND PURCHASER, UPON CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) FROM AND AGAINST ANY
AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER
MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER’S OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY
APPLICABLE LAWS RELATING TO THE CONDITION OF THE PROPERTY (INCLUDING, WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY EXCEPT FOR FRAUD, AND THE OBLIGATIONS OF
SELLER UNDER THIS AGREEMENT OR ANY AGREEMENTS EXECUTED AND DELIVERED BY SELLER AT CLOSING. 
 THE WAIVERS AND RELEASES SET FORTH
IN THE IMMEDIATELY PRECEDING PARAGRAPH INCLUDE CLAIMS OF WHICH PURCHASER IS PRESENTLY UNAWARE OR WHICH PURCHASER DOES NOT PRESENTLY SUSPECT TO EXIST WHICH, IF KNOWN BY PURCHASER, WOULD MATERIALLY AFFECT PURCHASER’S WAIVER OR RELEASE OF SELLER
AND THE OTHER PARTIES REFERENCED IN THIS SECTION. 
 9.2 Repairs, Reserves, and Capital Expenditures. Purchaser
acknowledges and agrees that except as provided in this Agreement, (a) Seller shall have no obligation to make any repairs, replacements, improvements or alterations to the Property or to expend any funds therefor, including, without
limitation, any reserves that may be held for such purpose, and (b) Purchaser shall not be entitled to a credit to the Exchange Consideration at Closing in the event capital expenditures actually made at the Hotel for any year are less than the
budgeted amount as of the date of the Closing. 

  
 38 

 9.3 Effect and Survival of Disclaimers. Seller and Purchaser acknowledge that the
compensation to be paid to Seller for the Interests has been decreased to take into account that the Property is being sold subject to the provisions of this Article IX. Seller and Purchaser agree that the provisions of this Article IX
shall survive Closing. 
 ARTICLE X 
 MISCELLANEOUS 
 10.1 Assignment. Purchaser may not assign or
otherwise transfer this Agreement or any of its rights or obligations under this Agreement without first obtaining Seller’s written approval which may be given or withheld in Seller’s sole discretion; provided that Purchaser may assign all
or any portion of this Agreement to one or more commonly controlled alternative investment vehicles (“AIVs”) or to one or more entities in which the Investors or such AIVs hold, directly or indirectly, all of the equity interests.
Any assignment by Purchaser of this Agreement shall not relieve Purchaser of its obligations under this Agreement and any permitted assignee must expressly assume the obligations of Purchaser in writing. 

10.2 Notices. Any notice pursuant to this Agreement shall be given in writing by (a) personal delivery, or (b) reputable
overnight delivery service with proof of delivery, or (c) legible facsimile transmission or PDF transmission completed before 5:00 p.m. (Los Angeles time) on a business day sent to the intended addressee at the address set forth below, or to
such other address or to the attention of such other person as the addressee shall have designated by written notice sent in accordance herewith, and shall be deemed to have been given either at the time of personal delivery, or, in the case of
expedited delivery service, as of the date actually received, or, in the case of facsimile transmission or PDF transmission, as of the date of the facsimile transmission or PDF transmission provided that an original of such facsimile or PDF is also
sent to the intended addressee by means described in clauses (a), or (b) above. Notices may be given by a party’s counsel on behalf of such party as if such party had given such notice itself. Unless changed in accordance with the
preceding sentence, the addresses for notices given pursuant to this Agreement shall be as follows: 
 If to Purchaser: 

c/o Yucaipa American Alliance Fund II, LLC 

9130 W. Sunset Boulevard 
 Los Angeles, California 90069 
 Attention: Robert P. Bermingham

 Fax: (310) 789-7201 
 With a copy (which shall not constitute notice) to: 
 Munger,
Tolles & Olson LLP 
 355 South Grand Avenue, 35th Floor 

Los Angeles, California 90071 
 Attention: Judith T. Kitano 
 Fax: (213) 683-4052

 Email: judith.kitano@mto.com 

  
 39 

 If to Seller: 
 Morgans Group LLC 
 475 Tenth Avenue 

New York, New York 10018 
 Attention: David Smail 
 Fax: 

Email: david.smail@morganshotelgroup.com 
 With a copy (which shall not constitute notice) to: 
 Hogan
Lovells 
 555 13th Street NW 
 Washington DC 20004 
 Attention: Bruce G. Gilchrist 

Fax: (202) 637-5910 
 Email: bruce.gilchrist@hoganlovells.com 
 10.3 Modifications. This
Agreement cannot be changed orally, and no agreement shall be effective to waive, change, modify or discharge it in whole or in part unless such agreement is in writing and is signed by Seller and Purchaser. 

10.4 Calculation of Time Periods; Time is of the Essence. Unless otherwise specified, in computing any period of time described in
this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under
the laws of the State in which the Real Property is located, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of any such period shall be deemed to end at 5:00
p.m., New York time. 
 10.5 Successors and Assigns. Subject to the limitations on assignment set forth in
Section 10.1 above, the terms and provisions of this Agreement are to apply to and bind the permitted successors and assigns of the parties hereto. 
 10.6 Entire Agreement. This Agreement, including the Exhibits, the Schedules, the Exchange Agreement, the Investment Agreement, and the other agreements contemplated in any of the foregoing contain
the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter. 

10.7 Further Assurances. Each party agrees that it will without further consideration execute and deliver such other documents and
take such other action, whether prior or subsequent to Closing, as may be reasonably requested by the other party to consummate more effectively the purposes or subject matter of this Agreement. Without limiting the generality of the foregoing,
Purchaser shall, if requested by Seller, (a) execute acknowledgments of receipt with respect to any materials delivered by Seller to Purchaser with respect to the Property, and (b) obtain sellers’ permits for any sales activities
conducted at the Property prior to Closing and/or obtain “sale for resale certificates” for any Personal Property that may be sold after the Closing. The provisions of this Section 10.7 shall survive Closing. 

  
 40 

 10.8 Counterparts; Facsimile Signatures. This Agreement may be executed in
counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. In order to expedite the transaction contemplated herein, telecopied,
facsimile or PDF signatures may be used in place of original signatures on this Agreement. Seller and Purchaser intend to be bound by the signatures on the telecopied, facsimile or PDF document, are aware that the other party will rely on the
telecopied, facsimile or PDF signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature. 
 10.9 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in
full force and effect. 
 10.10 Applicable Law. THIS AGREEMENT IS PERFORMABLE IN THE STATE OF NEW YORK AND SHALL IN ALL
RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE SUBSTANTIVE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS OF SUCH STATE. SELLER AND PURCHASER HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE
STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT AND HEREBY IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL BE HEARD AND DETERMINED IN A STATE OR FEDERAL COURT SITTING IN THE
STATE OF NEW YORK. PURCHASER AND SELLER AGREE THAT THE PROVISIONS OF THIS SECTION 10.10 SHALL SURVIVE THE CLOSING OF THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT. 
 10.11 No Third Party Beneficiary. The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are
not for the benefit of any third party, and accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 

 

  
 41 

 10.12 Exhibits and Schedules. The following schedules or exhibits attached hereto
shall be deemed to be an integral part of this Agreement: 
  

			
	 Exhibit or Schedule
	  	 Title

	Exhibit A	  	Form of Assignment of Interests
	Exhibit B	  	Form of FIRPTA Affidavit
	Exhibit C	  	[intentionally deleted]
	Exhibit D	  	[intentionally deleted]
	Exhibit E-1	  	Title Commitment
	Exhibit E-2	  	Pro Forma Title Policy
	Exhibit F	  	[intentionally deleted]
	Exhibit G	  	Form of Intercompany Release
		
	Schedule 1.1(a)	  	Description of the Land
	Schedule 5.1(c)	  	Litigation/Condemnation
	Schedule 5.3(a)	  	Violations of Law
	Schedule 5.3(b)	  	Space Leases
	Schedule 5.3(c)	  	Property Contracts
	Schedule 5.3(d)	  	Employment Agreements
	Schedule 5.3(f)	  	Permits
	Schedule 5.3(g)	  	Tax Contests

 10.13 Captions. The section headings appearing in this Agreement are for convenience of reference
only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. 
 10.14 Construction. The parties acknowledge that the parties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits, schedules or amendments hereto. Singular words shall connote the plural as well as the singular, and plural words shall
connote the singular as well as the plural, and the masculine shall include the feminine and the neuter, as the context may require. The words “include,” “includes” and “including” shall be deemed to be followed by the
phrase “without limitation.” 
 10.15 Attorney’s Fees. If any action or proceeding is commenced by either
party to enforce their rights under this Agreement, the prevailing party in such action or proceeding, including any bankruptcy, insolvency or appellate proceedings, shall be entitled to recover all reasonable costs and expenses, including, without
limitation, reasonable attorneys’ fees and court costs. 
 10.16 No Waiver. Failure of either party at any time to
require performance of any provision of this Agreement shall not limit the party’s right to enforce the provision. Waiver of any breach of any provision shall not be a waiver of any succeeding breach of the provision or a waiver of the
provision itself or any other provision. 
 10.17 Exclusivity. Seller agrees neither it, nor any other member of the
Seller Group will solicit, accept, negotiate, or otherwise pursue any offer related to the sale or other transfer or conveyance of the Property unless and until this Agreement is terminated in accordance with the provisions contained herein.

  
 42 

 10.18 No Recordation. Purchaser shall not record this Agreement, nor any memorandum
or other notice of this Agreement, in any public records. 
 10.19 No Brokerage Commissions. No real estate or other
broker has been retained or is or will be owed a commission or other compensation in connection with transaction contemplated by this Agreement. Each party agrees that should any claim be made for brokerage commissions or finder’s fees by any
broker or finder by, through or on account of any acts of said party or its representatives, said party will indemnify, defend, protect and hold the other party free and harmless from and against any and all loss, liability, cost, damage and expense
in connection therewith. The provisions of this Section 10.19 shall survive Closing or earlier termination of this Agreement. 
 10.20 Confidentiality. Prior to the Closing, this Agreement, the terms hereof and the Property Information shall be treated as “Evaluation Material” in accordance with that certain letter
agreement dated September 7, 2012 executed between Purchaser and Seller (the “Confidentiality Agreement“). The parties acknowledge and agree that effective as of the Closing, the Confidentiality Agreement shall terminate and be
of no further force or effect. 
 [THE SIGNATURES ARE ON
THE FOLLOWING PAGE.] 

  
 43 

 IN WITNESS WHEREOF, Seller and Purchaser have
executed this Agreement as of the date above first written. 
  

					
	Seller:	 	MORGANS GROUP LLC, a Delaware limited liability company
			
		 	By:	 	 /s/ Richard Szymanski

		 		 	Name: Richard Szymanski
		 		 	Title: Chief Financial Officer

 [Signature Page – PSA] 

					
	Purchaser:	 	VINTAGE DECO HOSPITALITY, LLC, a Delaware limited liability company
			
		 	By:	 	 /s/ Robert P. Bermingham

		 		 	Name: Robert P. Bermingham
		 		 	Title: Vice President

 [Signature Page – PSA] 

 Annex I 
 Definitions 
 (a) As used in this Agreement, the following terms shall have the following
meanings: 
 “Affiliate” of any person means another person that, directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such first person. A person shall be deemed to control another person if such first person possesses, directly or indirectly, the power to direct, or cause the direction of, the management
and policies of such other person, whether through the ownership of voting securities, by contract or otherwise. 
 “Audit” or
“Audits” means any audit, assessment, or other examination relating to Taxes by any Tax Authority or any judicial or administrative proceedings relating to Taxes. 
 “Contract” means any contract, agreement, mortgage, instrument, license, lease, binding sales or purchase order or other legally binding commitment. 

“Environmental Claim” means any claim, action, cause of action, investigation or notice by any Person or entity alleging or seeking to
establish a basis for liability (including, without limitation, potential liability for investigatory costs, cleanup costs, corrective measures, governmental response costs, natural resources damages, property damages, personal injuries, or
penalties) arising out of, based on or resulting from (a) the presence, or release into the environment, of any Material of Environmental Concern or (b) circumstances forming the basis of any violation, or alleged violation, of any
Environmental Law. 
 “Environmental Laws” means all applicable federal, state, local and foreign laws and regulations relating
to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or remediation of environmental contamination, including, without limitation,
laws and regulations relating to emissions, discharges, releases or threatened releases of Materials of Environmental Concern, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or
handling of, or the exposure of any Person or property to, Materials of Environmental Concern. 
 “Governmental Entity” means
any arbitrator, court, nation, government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial regulatory or administrative functions of, or pertaining to, government (in each case, whether
foreign or domestic). 

 “Indebtedness” means with respect to any Person (i) all indebtedness for borrowed
money or issued in substitution for or exchange of indebtedness for borrowed money, (ii) any indebtedness evidenced by any note, bond, mortgage, debenture, or other debt security, (iii) any indebtedness for the deferred purchase price of
property or services with respect to which such Person is liable, contingently or otherwise, as obligor or otherwise (excluding, for the avoidance of doubt, any trade payables incurred in the ordinary course of business), (iv) any indebtedness
secured by any Lien on any asset of such Person, (v) any amounts outstanding under any letters of credit, bankers acceptance or similar instrument issued for the account or responsibility of such Person, in each case, including interest, fees
and prepayment premiums or penalties thereon, (vi) any payment obligation of such Person under any interest rate swap agreement, forward rate agreement, interest rate cap or collar agreement or other financial agreement or arrangement entered
into for the purpose of limiting or managing interest rate risks, (vii) any capital lease with respect to which such Person is a party or otherwise liable as lessee or obligor, (viii) without duplication, all accrued and unpaid interest on
and any premiums, penalties, fees and expenses, change of control payments or similar contractual charges in respect of any Indebtedness repaid at the Closing or that are triggered by the transactions contemplated by this Agreement, and
(ix) without duplication, all guarantees with respect to liabilities of a type described in any of clauses (i) through (viii) above. 
 “Liabilities” means any and all debts, liabilities, obligations, guarantees, and commitments of any kind or nature (whether known or unknown, whether asserted or unasserted, whether
accrued or unaccrued, whether liquidated or unliquidated, whether due or to become due, whether matured or unmatured, whether fixed, absolute or contingent, and whether or not recorded or reflected, or required to be recorded or reflected, on books
and records or financial statements), including those arising, reported or claimed under any law (including all Taxes), order or Contract and including all fees, costs, expenses, damages, losses, fines, penalties and assessments relating thereto.

 “Material Adverse Effect” means a material negative impact on the ownership or operation of the Property as a whole for a
material period of time following Closing, including, but not limited to, the cessation of operations of the Hotel or any material component thereof, excluding any such impact on the food and beverage facilities resulting from the actions of any of
the officers of TLG or its subsidiaries or either of its primary principals (Andrew Sasson and Andy Masi) (such officers and principals being collectively referred to as “TLG Principals”) other than actions (i) taken at the direction
of the Company, the Seller or their Affiliates (other than TLG, any of its subsidiaries, or any TLG Principal) or (ii) of which the Company, the Seller or their Affiliates (other than TLG, any of its subsidiaries, or any TLG Principal) had
knowledge on or prior to the Effective Date. 
 “Materials of Environmental Concern” means chemicals, pollutants, contaminants,
wastes, toxic substances, hazardous substances, hazardous materials, petroleum and petroleum products, asbestos, asbestos containing materials, polychlorinated biphenyls, mold or microbial matters and any other substance that is currently regulated
by an Environmental Law. 

 “Person” means an individual, a partnership, a limited liability company, an association, a
joint venture, a corporation, a business, a trust, an unincorporated organization, any other entity or a government or any department, agency, authority, instrumentality or political subdivision thereof. 

“Seller’s Knowledge” means the actual knowledge of J.P. Oliver and Steve Marblestone (provided that, in no event shall such person
have any personal liability arising under this Agreement), and expressly excluding the knowledge of any other shareholder, partner, member, trustee, beneficiary, director, officer, employee, agent or representative of Seller or any of its
affiliates. 
 “Tax” or “Taxes” means any taxes, assessments, fees, unclaimed property and escheat obligations
and other governmental charges imposed by any Governmental Entity, including income, profits, gross receipts, gains, net proceeds, net worth, alternative or add on minimum, ad valorem, value added, turnover, sales, use, property, personal property
(tangible and intangible), environmental, stamp, leasing, lease, user, excise, duty, franchise, capital stock, transfer, registration, license, withholding, social security (or similar), unemployment, workers compensation, disability, payroll,
employment, social contributions, fuel, excess profits, occupancy, occupational, premium, windfall profit, severance, estimated, or other charge of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

 “Tax Authority” or “Tax Authorities” means the Internal Revenue Service and any other domestic or foreign
governmental authority responsible for the collection and administration of any Taxes. 
 “Tax Return” or “Tax
Returns” mean any federal, state, local, and foreign tax returns, declarations, statements, claims for refunds, reports, schedules, forms, and information returns and any amendments thereto. 

(b) The following terms are defined in the Section of this Agreement set forth after such term below: 

 

					
	Defined Term	  	Section	  	 
			
	Adjusting Party	  	4.4(k)	  	
	Adjustment	  	1.5(b)	  	
	Agreement	  	Preamble	  	
	AIVs	  	10.1	  	
	Assignment of Interests	  	4.2(a)	  	
	Bookings	  	1.2(d)	  	
	Closing	  	4.1(a)	  	
	Closing Date	  	4.1(a)	  	
	Company	  	Recitals	  	
	Confidentiality Agreement	  	10.20	  	

					
	Consumable Inventory	  	1.2(i)	  	
	Commitment Letter	  	4.6(c)	  	
	Continuing Employees	  	5.8	  	
	Cut-Off Time	  	4.4(h)	  	
	DB	  	4.6(c)	  	
	DBSI	  	4.6(c)	  	
	Discharge Matters	  	2.3(a)	  	
	Effective Date	  	Preamble	  	
	Exchange Agreement	  	Recitals	  	
	Exchange Consideration	  	1.5	  	
	Existing Management Agreement	  	1.7	  	
	Federal WARN Act	  	5.8	  	
	Final Statement	  	4.4(k)	  	
	FIRPTA Affidavit	  	4.2(c)	  	
	Hotel	  	Recitals	  	
	Hotel Employees	  	5.8	  	
	Hotel Payables	  	4.4(e)	  	
	House Bank Funds	  	1.2(j)	  	
	Improvements	  	Recitals	  	
	Indemnitee	  	7.4(a)	  	
	Indemnifying Party	  	7.4(a)	  	
	Intangibles	  	1.2(g)	  	
	Interests	  	Recitals	  	
	Investment Agreement	  	Recitals	  	
	Investors	  	Recitals	  	
	Land	  	Recitals	  	
	Legal Requirements	  	2.4(d)	  	
	LGD Management Agreement	  	1.1(f)	  	
	Losses	  	7.2	  	
	Major Loss	  	8.3	  	
	Manager	  	1.7	  	
	Material Title Matter	  	2.3(b)	  	
	MHGC	  	Recitals	  	
	New Management Agreement	  	1.7	  	
	NYSE	  	10.20	  	
	Outside Accountants	  	4.4(l)	  	
	Permits	  	1.2(g)	  	
	Permitted Exceptions	  	2.4	  	
	Personal Property	  	1.2(c)	  	
	Pre-Closing Date	  	4.1(b)	  	
	Preliminary Statement	  	4.4	  	
	Property	  	1.3(a)	  	
	Property Information	  	3.1(a)	  	
	Purchaser	  	Preamble	  	
	Purchaser Credit	  	1.6(b)	  	
	Purchaser Indemnitees	  	7.2	  	

					
	Real Property	  	Recitals	  	
	Receivables	  	4.4(d)(iii)	  	
	Reports	  	3.2	  	
	Retail Inventory	  	1.2(i)	  	
	Retained IP	  	1.1(b)(ii)	  	
	SEC	  	10.20	  	
	Seller	  	Preamble	  	
	Seller Group	  	1.1	  	
	Seller Indemnitees	  	7.2	  	
	Seller Proration Payment	  	1.6(b)	  	
	Space Leases	  	1.2(b)	  	
	Survey	  	2.2	  	
	Taxes	  	4.4(a)(i)	  	
	Third Party Claim	  	7.4(b)	  	
	Title Affidavit	  	4.2(g)	  	
	Title Company	  	2.1	  	
	Title Policy	  	2.5	  	
	Title Commitment	  	2.1	  	
	Title Update	  	2.1	  	
	TLG	  	1.2(b)(ii)	  	
	Transfer Tax Laws	  	4.5(a)	  	
	Vouchers	  	4.4(i)	  	
	YAAF II	  	Recitals	  	
	YAAF II-P	  	Recitals	  	

 EXHIBIT A 
 Assignment of Membership Interests 
 FOR VALUE RECEIVED, Morgans
Group LLC, a Delaware limited liability company (“Transferor”), hereby assigns, transfers and delivers all of its right, title and interest in and to all of the membership interests in Beach Hotel Associates LLC, a Delaware limited
liability company, to Vintage Deco Hospitality, LLC, a Delaware limited liability company. 
 Dated effective as of [    ],
2013. 
  

							
	 Transferor:
	 	 MORGANS GROUP LLC, a Delaware limited liability company

				
		 		 	By:	 	  

		 		 	Name:	 	  

		 		 	Its:	 	  

  
 -i-

 EXHIBIT B 
 CERTIFICATE OF NON-FOREIGN STATUS 
 Section 1445 of the Internal Revenue Code
of 1986, as amended (the “Code”), provides that a transferee of a “United States real property interest” must withhold tax if the transferor is a foreign person. For U.S. federal income tax purposes (including section 1445
of the Code), the owner of a disregarded entity (which entity has legal title to a U.S. real property interest under local law) will be the transferor of the property and not the disregarded entity.  

In order to inform the Yucaipa Parties, as that term is defined in the Exchange Agreement, dated as of
            , 2013 by and among Morgans Hotel Group Co., Yucaipa American Alliance Fund II, L.P., Yucaipa American Alliance (Parallel) Fund II, L.P., and Yucaipa Aggregator Holdings, LLC
(collectively, the “Transferee”), that withholding of tax is not required upon the disposition of a United States real property interest by Morgans Group LLC, a Delaware limited liability company (the “Transferor”),
the undersigned hereby certifies and declares the following on behalf of the Transferor: 
  

	 	•	 	 The Transferor is not a disregarded entity as defined in Treasury Regulation Section 1.1445-2(b)(2)(iii). 

 

	 	•	 	 The Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as such terms are defined in the Code and the
Treasury Regulations promulgated thereunder). 

  

	 	•	 	 The Transferor’s United States employer identification number
is:                         . 

  

	 	•	 	 The office address for the Transferor is: 

 475 Tenth Avenue 
 New York, New York 10018 

The Transferor understands that this certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement
contained in this certification could be punished by fine, imprisonment or both. 

  
 -ii-

 Under penalties of perjury, I declare that I have examined this certification and, to the
best of my knowledge and belief, it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of the Transferor. 
 Executed this             day of            , 2013. 

 

			
	TRANSFEROR:
	
	MORGANS GROUP LLC, a Delaware limited liability company
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 -iii-

 EXHIBIT E-1 and EXHIBIT E-2 

See attached 

  
 -iv-

			
	

	 	

  

 Chicago Title Insurance Company 

15951 SW 41st Street, Suite 800 
 Weston, FL 33331 
 954-217-1744 

Chicago Title Insurance Company 
 Rev. 3/15/13 
 COMMITMENT FOR TITLE INSURANCE 

SCHEDULE A 
 Order No.:
4071112 
 Customer Reference: NBU# 180312092 Delano Hotel 
  

	1.	Effective Date: March 5, 2013 at 8:00 AM 

  

			
	 2.      Policy or Policies to be issued:
	  	                              
                      Premium: $TBD

  

	 	A.	ALTA Owners 2006 with Florida Modifications 

 Proposed Insured: Beach Hotel Associates, LLC, a Delaware limited liability company and Vintage Deco Hospitality, LLC, a Delaware limited liability company, as their interests may appear 

Proposed Amount of Insurance: $120,000,000.00 
  

	 	A.	ALTA Loan 2006 with Florida Modifications 

 Proposed Insured: Deutsche Bank, its successors and/or assigns, as their interests may appear 
 Proposed Amount of Insurance: $100,000,000.00 
  

	3.	The estate or interest in the land described or referred to in this Commitment is: 

Fee Simple 
  

	4.	Title to the Fee Simple estate or interest in the land is at the Effective Date vested in: 

Beach Hotel Associates, LLC, a Delaware limited liability company 

 

	5.	The land referred to in this Commitment is described in Exhibit “A” attached hereto and made part hereof. 

			
	Countersigned:
		
	By:	 	 
	Authorized Officer or Agent

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

  

			
	1 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 SCHEDULE B SECTION I 

REQUIREMENTS 
 The
following are requirements to be complied with: 
  

	1.	Instrument(s) necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record. 

 

	 	(a)	It is the understanding of the company that the contemplated transaction will involve the sale or transfer of the membership interest in the titleholder identified at
item 2 of Schedule A hereof, not the transfer of the record title. The Owner’s Policy to be issued hereunder will reflect an effective date that corresponds to the date of acquisition of the membership interests. 

	 	(b)	Mortgage in the amount of $____________ from Beach Hotel Associates, LLC, a Delaware limited liability company and Vintage Deco Hospitality, LLC, a Delaware limited
liability company, as their interests may appear in favor of Deutsche Bank. 

  

	2.	Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured. 

 

	3.	INTENTIONALLY DELETED. 

  

	4.	To terminate the notice(s) of commencement recorded on November 16, 2011 in Official Records Book 27895, Page 4180, it is recommended that the issuing
agent contact the underwriting department at least 3-5 business days prior to closing to discuss requirements. Each situation is considered on a case-by-case basis. After the construction lien risk has been evaluated in accordance with the
guidelines contained in Underwriting Bulletin 2011-04 and approved by the Company, for each notice of commencement referenced above, the issuing agent must: 

a. Record notice of termination together with a contractor’s final payment affidavit pursuant to Section 713.132,
Florida Statutes. The notice of termination must be sworn and subscribed to by the appropriate party(ies) and be properly served upon the contractor and each person who gave notice to owner. 

b. Obtain final waivers and releases of lien from any lienors showing as unpaid in the contractor’s final payment
affidavit. 
 c. Provide original, signed copy of the Company’s indemnity agreement to the
underwriting department. 
 d. Comply with any additional requirements deemed necessary by the Company.

  

	5.	To terminate the notice(s) of commencement recorded on January 20, 2012 in Official Records Book 27968, Page 3196, it is recommended that the issuing
agent contact the underwriting department at least 3-5 business days prior to closing to discuss requirements. Each situation is considered on a case-by-case basis. After the construction lien risk has been evaluated in accordance with the
guidelines contained in Underwriting Bulletin 2011-04 and approved by the Company, for each notice of commencement referenced above, the issuing agent must: 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	2 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 SCHEDULE B SECTION I 

REQUIREMENTS 
 a. Record notice of termination together with a contractor’s final payment affidavit pursuant to Section 713.132, Florida Statutes. The notice of termination must be sworn and subscribed
to by the appropriate party(ies) and be properly served upon the contractor and each person who gave notice to owner. 

b. Obtain final waivers and releases of lien from any lienors showing as unpaid in the contractor’s final payment
affidavit. 
 c. Provide original, signed copy of the Company’s indemnity agreement to the underwriting
department. 
 d. Comply with any additional requirements deemed necessary by the Company. 

 

	6.	To terminate the notice(s) of commencement recorded on June 4, 2012 in Official Records Book 28134, Page 1113, it is recommended that the issuing agent contact
the underwriting department at least 3-5 business days prior to closing to discuss requirements. Each situation is considered on a case-by-case basis. After the construction lien risk has been evaluated in accordance with the guidelines contained in
Underwriting Bulletin 2011-04 and approved by the Company, for each notice of commencement referenced above, the issuing agent must: 

 a. Record notice of termination together with a contractor’s final payment affidavit pursuant to Section 713.132, Florida Statutes. The notice of termination must be sworn and subscribed to by
the appropriate party(ies) and be properly served upon the contractor and each person who gave notice to owner. 
 b. Obtain
final waivers and releases of lien from any lienors showing as unpaid in the contractor’s final payment affidavit. 
  

	7.	Satisfaction of the following described Mortgage and related security instruments: 

 

	 	a)	Mortgage in favor of Deutsche Bank Trust Company Americas, dated July 28, 2011, recorded July 29, 2011, in Official Records Book 27774, Page 357:

  

	 	b)	Assignment of Leases and Rents in Official Records Book 27774, Page 396; and 

 

	 	c)	UCC-1 Financing Statement in Official Records Book 27774, Page 407. 

  

	8.	Proof of payment of any outstanding assessments in favor of Miami-Dade County, Florida, any special taxing district and any municipality. NOTE: If this requirement is
not satisfied the following exception will appear on Schedule B: 

  

	 	Any	outstanding assessments in favor of Miami-Dade County, Florida, any special taxing district and any municipality. 

 

	9.	Proof of payment of service charges for water, sewer, waste and gas, if any, through the date of closing. NOTE: If this requirement is not met the following exception
will appear on Schedule B: 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	3 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 SCHEDULE B SECTION I 

REQUIREMENTS 
 Any lien provided for by Florida Statutes in favor of any city, town, village or port authority for unpaid service charges for service by any water, sewer, waste or gas system supplying the insured land
or service facilities. 
  

	10.	A survey, satisfactory to the Company, must be furnished. If said survey should disclose building setback lines, easements, encroachments, overlaps, boundary line
disputes, or other adverse matters, they will appear as exceptions in Schedule B of the Owner’s Policy and Schedule B, Part 1 of the Loan Policy to be issued. 

 

	11.	Furnish Owner’s/Mortgagor’s Affidavit establishing that: All sums due for labor and/or materials for any work performed on the property have been paid and
that no liens or encumbrances against the property other than as stated herein, are outstanding. 

  

	12.	Furnish Owner’s Affidavit establishing the rights of parties in possession. 

 NOTE: Same may be included in the above Affidavit. 
  

	13.	To terminate the notice of commencement recorded on November 13, 2012 in Official Records Book 28356, Page 1646, it is recommended that the issuing agent
contact the underwriting department at least 3-5 business days prior to closing to discuss requirements. Each situation is considered on a case-by-case basis. After the construction lien risk has been evaluated in accordance with the guidelines
contained in Underwriting Bulletin 2011-04 and approved by the Company, for each notice of commencement referenced above, the issuing agent must: 

 a. Record notice of termination together with a contractor’s final payment affidavit pursuant to Section 713.132, Florida Statutes. The notice of termination must be sworn and subscribed to by
the appropriate party(ies) and be properly served upon the contractor and each person who gave notice to owner. 
 b. Obtain
final waivers and releases of lien from any lienors showing as unpaid in the contractor’s final payment affidavit. 
  

	14.	To terminate the notice of commencement recorded on November 21, 2012 in Official Records Book 28367, Page 1636, it is recommended that the issuing agent
contact the underwriting department at least 3-5 business days prior to closing to discuss requirements. Each situation is considered on a case-by-case basis. After the construction lien risk has been evaluated in accordance with the guidelines
contained in Underwriting Bulletin 2011-04 and approved by the Company, for each notice of commencement referenced above, the issuing agent must: 

 a. Record notice of termination together with a contractor’s final payment affidavit pursuant to Section 713.132, Florida Statutes. The notice of termination must be sworn and subscribed to by
the appropriate party(ies) and be properly served upon the contractor and each person who gave notice to owner. 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	4 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 SCHEDULE B SECTION I 

REQUIREMENTS 
 b. Obtain final waivers and releases of lien from any lienors showing as unpaid in the contractor’s final payment affidavit. 
 NOTE: Taxes for the year 2012 under Folio No. 02-3234-019-0550 were paid on December 4, 2012 in the amount of $1,247,857.30. 
 THIS IS A PRELIMINARY COMMITMENT THAT REQUIRES SENIOR UNDERWRITING REVIEW AND OVER-THE-LIMIT AUTHORIZATION. ACCORDINGLY, THIS COMMITMENT IS NOT EFFECTIVE TO BIND THE COMPANY UNTIL THE NECESSARY APPROVAL
IS OBTAINED AND IT IS UNDERSTOOD THAT THIS COMMITMENT MAY BE SUBJECT TO FURTHER REQUIREMENTS AND/OR EXCEPTIONS AS MAY THEN BE DEEMED NECESSARY. 
 END OF SCHEDULE B – SECTION I 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	5 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 SCHEDULE B SECTION II 

EXCEPTIONS 
 Schedule B of
the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company: 
  

	1.	Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date
hereof but prior to the date the proposed insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. 

  

	2.	Taxes and assessments for the year 2013 and subsequent years, which are not yet due and payable. 

 

	3.	Standard Exceptions: 

  

	 	A.	Easements, claims of easements, boundary line disputes, overlaps, encroachments or other matters not shown by the public records which would be disclosed by an accurate
survey of the Land. 

  

	 	B.	Rights or claims of parties in possession not shown by the public records. 

 

	 	C.	Any lien, or right to a lien, for services, labor, or materials heretofore or hereafter furnished, imposed by law and not shown by the public records.

  

	 	D.	Taxes or assessments which are not shown as existing liens in the public records. 

NOTES ON STANDARD EXCEPTIONS: 
 Item 3A will be deleted from the policy upon receipt of an accurate survey of the land acceptable to the Company. Items 3B, 3C, and 3D will be deleted from the policy upon receipt of an
affidavit-indemnity acceptable to the Company, stating (i) who is in possession of the land, (ii) whether improvements to the land have been made or are contemplated to commence prior to the date of closing, which improvements will not
have been paid for in full prior to the closing, and (iii) that there are no taxes or assessments which are not shown as existing liens in the public records. 
  

	4.	INTENTIONALLY DELETED. 

  

	5.	Gold Coast Cablevision Hotel/Motel Bulk Rate Agreement for Cable Television Service, filed June 28, 1995, in Official Records Book 16830, Page 2299.

  

	6.	INTENTIONALLY DELETED. 

  

	7.	Declaration of Restrictive Covenants recorded in Official Records Book 22715, Page 509. 

 

	8.	INTENTIONALLY DELETED. 

  

	9.	Title is not insured to any lands or improvements lying easterly of the Erosion Control Line as recorded in Plat Book 105, Page 62. 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	6 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 SCHEDULE B SECTION II 

EXCEPTIONS 
  

	10.	The rights, if any, of the public to use as a public beach or recreational area, any part of the land lying between the body of water abutting said land described in
Schedule A and the natural line of vegetation, bluff, extreme high water line or other apparent boundary separating the publicly used area from the upland private area, and any right of access thereto. 

 

	11.	Title is not insured to any lands or improvements lying below the mean high water line of the Atlantic Ocean adjacent thereto. 

 

	12.	Declaration of Restrictive Covenants by and between Beach Hotel Associates, LLC, a Delaware limited liability company, and the City of Miami Beach, Florida, a
municipality of the State of Florida, dated October 25, 2012, filed November 9, 2012 in Official Records Book 28352, page 1904, together with Subordination of Mortgagee filed November 9, 2012 in Official Records Book 28352, page 1912.

  

	13.	The following matters shown on that certain survey prepared by Eddie Martinez of Zurweille-Whittaker, last certified September 5, 2012 under Job No.
______________: 

  

	 	a)	 Planters, parking station, curbs, gutters and wood fence extending into the right-of-way of
17th Street. 

 

	 	b)	Wooden doorway, 0.05’ curb and concrete and ficus hedge extending into the right-of-way of Collins Avenue. 

 

	 	c)	Walking path, boardwalk and concrete encroaching easterly of the Erosion Control Line. 

Note: The survey must be certified to Chicago Title Insurance Company and the Insured. 

NOTE: Coastal Construction Control Line Plat recorded at Plat Book 74, at Page 25 which plat depicts the Coastal Construction Control Line set for
Miami-Dade County as affecting the lands described in this commitment. 
 NOTE: All recording references in this commitment/policy shall refer
to the public records of Miami-Dade County, Florida, unless otherwise noted. 
 NOTE: In accordance with Florida Statutes section 627.4131,
please be advised that the insured hereunder may present inquiries, obtain information about coverage, or receive assistance in resolving complaints, by contacting Chicago Title Insurance Company, 15951 SW 41st Street, Suite 800, Weston, FL 33331;
Telephone 954-217-1744. 
 Searched By: Patrick Quirk 
 END OF SCHEDULE B – SECTION II 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	7 of 8

			
	

	 	 Order No.: 4071112
 Customer Reference: NBU# 180312092 Delano Hotel

  

 EXHIBIT “A” 
 Lots 9, 10, 11 and 12, in Block 29 of FISHER’S FIRST SUBDIVISION OF ALTON BEACH, a subdivision of Miami-Dade County, Florida, according to the Plat thereof duly recorded upon the Public records of
Miami-Dade County, Florida in Plat Book 2, Page 77 thereof; 
 Also that tract of land shown on plat of FISHER’S FIRST SUBDIVISION OF ALTON
BEACH, according to the Plat thereof recorded in Plat Book 2, Page 77, Public Records of Miami-Dade County, Florida, described as follows: 

Begin at the Southeast corner of Lot 9 in Block 29 as shown on plat of FISHER’S FIRST SUBDIVISION OF ALTON BEACH, according to the Plat thereof
recorded in Plat Book 2, Page 77, Public Records of Miami-Dade County, Florida; thence run in a Northerly direction along the Easterly line of said Block 29 of the aforesaid plat and the Northerly extension thereof a distance of 136.897 feet, more
or less, to the point of intersection of the center line of 17th Street; thence run Easterly along the center line of 17th Street; extended, a distance of 204.17 feet, more or less, to the point of intersection of said center line of 17th Street
extended Easterly to the Erosion Control Line of the Atlantic Ocean, said Line recorded in Plat Book 105, Page 62, Public Records of Miami-Dade County, Florida, thence run Southerly along the said Erosion Control Line, a distance of 137.465 feet to
the intersection of the extension Easterly of the Southerly Line of referenced Lot 9, thence run Westerly along the Easterly extension of Lot 9, a distance of 200.96 feet, more or less, to the Point of Beginning. 

Less and except, however, that certain portion of such land as was appropriated and taken by the City of Miami Beach, Florida, in that certain eminent
domain or condemnation proceeding a final judgment for which was recorded in Deed Book 3106, Page 96, which covers that portion of the premises lying northerly of the northerly line of said Block 29 extended easterly to the Erosion Control Line
recorded in Plat Book 105, Page 62 of the Public Records of Miami-Dade County, Florida. 

  

			
	 Copyright American Land Title Association. All rights reserved.
 The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title
Association.
 ALTA Commitment (6/17/06) (with FL Modifications)
	  	

	8 of 8

 SCHEDULE A 
 Name and Address of Title Insurance Company: 
 Chicago Title Insurance Company 

15951 SW 41 Street 
 Weston, FL 33331 

 

									
	File No.:	 	4071112	  	Policy No.:	  	pro forma	  	
					
	Address Reference:	 	1685 Collins Ave., Miami Beach)	  		  		  	
	(For information only)	 		  	 Amount of Insurance: $ 120,000,000.00
 Premium: $tbd

		
	Date of Policy:	 	DATE AND TIME OF TRANSFER OF MEMBERSHIP INTERESTS

  

	1.	Name of Insured: 

 Beach Hotel
Associates LLC, a Delaware limited liability company and Vintage Deco Hospitality, LLC, a Delaware limited liability company, as their interests may appear 
  

	2.	The estate or interest in the land that is encumbered by this policy is: 

  

	 	Fee	simple 

  

	3.	Title is vested in: 

 Beach Hotel
Associates LLC, a Delaware limited liability company 
  

	4.	The land referred to in this policy is described as follows: 

 Lots 9, 10, 11 and 12, in Block 29 of FISHER’S FIRST SUBDIVISION OF ALTON BEACH, a subdivision of Miami-Dade County, Florida, according to the Plat thereof duly recorded upon the Public records of
Miami-Dade County, Florida in Plat Book 2, Page 77 thereof; 
 Also that tract of land shown on plat of FISHER’S FIRST
SUBDIVISION OF ALTON BEACH, according to the Plat thereof recorded in Plat Book 2, Page 77, Public Records of Miami-Dade County, Florida, described as follows: 
 Begin at the Southeast corner of Lot 9 in Block 29 as shown on plat of FISHER’S FIRST SUBDIVISION OF ALTON BEACH, according to the Plat thereof recorded in Plat Book 2, Page 77, Public Records of
Miami-Dade County, Florida; thence run in a Northerly direction along the Easterly line of said Block 29 of the aforesaid plat and the Northerly extension thereof a distance of 136.897 feet, more or less, to the point of intersection of the center
line of 17th Street; thence run Easterly along the center line of 17th Street; extended, a distance of 204.17 feet, more or less, to the point of intersection of said center line of 17th Street extended Easterly to the Erosion Control Line of the
Atlantic Ocean, said Line recorded in Plat Book 105, Page 62, Public Records of Miami-Dade County, Florida, thence run Southerly along the said Erosion Control Line, a distance of 137.465 feet to the intersection of the extension Easterly of the
Southerly Line of referenced Lot 9, thence run Westerly along the Easterly extension of Lot 9, a distance of 200.96 feet, more or less, to the Point of Beginning. 

 Less and except, however, that certain portion of such land as was appropriated and taken by
the City of Miami Beach, Florida, in that certain eminent domain or condemnation proceeding a final judgment for which was recorded in Deed Book 3106, Page 96, which covers that portion of the premises lying northerly of the northerly line of said
Block 29 extended easterly to the Erosion Control Line recorded in Plat Book 105, Page 62 of the Public Records of Miami-Dade County, Florida. 

 SCHEDULE B 
 EXCEPTIONS FROM COVERAGE 
 This policy does not insure against loss or damage, and the
Company will not pay costs, attorneys’ fees, or expenses that arise by reason of: 
  

	1.	Taxes and assessments for the year 2012 and subsequent years, which are not yet due and payable. 

 

	2.	Easements, claims of easements, boundary line disputes, overlaps, encroachments or other matters not shown by the public records which would be disclosed by an
accurate survey of the land. 

  

	3.	Rights or claims of parties in possession not shown by the public records. 

 

	4.	Any lien, or right to a lien, for services, labor, or materials heretofore or hereafter furnished, imposed by law and not shown by the public records.

  

	5.	Taxes or assessments which are not shown as existing liens in the public records. 

 

	6.	Any claim that any portion of the insured land is sovereign lands of the State of Florida, including submerged, filled or artificially exposed lands accreted to
such land. 

  

	7.	Any lien provided by Chapter 159, Florida Statutes, in favor of any city, town, village or port authority for unpaid service charges for service by any water,
sewer or gas system supplying the insured land. 

  

	8.	Gold Coast Cablevision Hotel/Motel Bulk Rate Agreement for Cable Television Service, filed June 28, 1995, in Official Records Book 16830, Page 2299.

  

	9.	Declaration of Restrictive Covenants recorded in Official Records Book 22715, Page 509. 

 

	10.	Title is not insured to any lands or improvements lying easterly of the Erosion Control Line as recorded in Plat Book 105, Page 62. 

 

	11.	The rights, if any, of the public to use as a public beach or recreational area, any part of the land lying between the body of water abutting said land described in
Schedule A and the natural line of vegetation, bluff, extreme high water line or other apparent boundary separating the publicly used area from the upland private area, and any right of access thereto. 

 

	12.	Title is not insured to any lands or improvements lying below the mean high water line of the Atlantic Ocean adjacent thereto. 

	13.	Declaration of Restrictive Covenants by and between Beach Hotel Associates LLC, a Delaware limited liability company, and the City of Miami Beach, Florida, a
municipality of the State of Florida, dated October 25, 2012, filed November 9, 2012 in Official Records Book 28352, page 1904, together with Subordination of Mortgagee filed November 9, 2012 in Official Records Book 28352, page 1912.

  

	14.	Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing, made by Beach Hotel Associates LLC, a Delaware limited liability company, to Deutsche
Bank Trust Company Americas, as Agent, for itself, the Issuing Bank and for certain Lenders party to the Credit Agreement, dated as of July 28, 2011, recorded July 29, 2011 in Official Records Book 2774, page 357, as assigned to Deutsche
Bank Trust Company Americas, by Assignment of Mortgage, dated ________, 2013, made by Deutsche Bank Trust Company Americas, as Agent, for itself, the Issuing Bank and for certain Lenders, to Deutsche Bank Trust Company Americas, as Agent for itself
and the Lenders, recorded ______________, 2012 in Official Records Book ______, page _______, and as amended and restated by Amended and Restated Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing, dated ___________,
2013, made by Beach Hotel Associates LLC to Deutsche Bank Trust Company Americas, as Agent for itself and the Lenders, recorded ______________, 2013 in Official Records Book ______, page _______. 

 

	15.	Assignment of Leases and Rents from Beach Hotel Associates, LLC, a Delaware limited liability company in favor of Deutsche Bank Trust Company Americas, dated
________________, 2013, filed __________, 2013 in Official Records Book ___________, page __________. 

  

	16.	UCC-1 Financing Statement, Beach Hotel Associates, LLC, a Delaware limited liability company – Debtor, Deutsche Bank Trust Company Americas– Secured Party,
dated ________________, 2013, filed __________, 201 in Official Records Book ___________, page __________. 

  

	17.	The following matters shown on that certain survey prepared by Eddie Martinez of Zurweille-Whittaker, dated August 29, 2012, last revised March 28, 2013:

  

	 	a)	 Planters, parking station, curbs, gutters and wood fence extending into the right-of-way of
17th Street. 

 

	 	b)	Wooden doorway, 0.05’ curb and concrete and ficus hedge extending into the right-of-way of Collins Avenue. 

 

	 	c)	Walking path, boardwalk and concrete encroaching easterly of the Erosion Control Line. 

 NOTE: Coastal Construction Control Line Plat recorded at Plat Book 74, at Page 25 which plat depicts the Coastal Construction Control Line set for Miami-Dade County as affecting the lands described in
this commitment. 
 NOTE: All recording references in this commitment/policy shall refer to the public records of Miami-Dade County, Florida,
unless otherwise noted. 

 This is a pro forma policy furnished to or on behalf of the party to be insured. It does not reflect the
present status of title and is not a commitment to insure the estate or interest as shown herein, nor does it evidence the willingness of the Company to provide any affirmative coverage shown herein. Any such commitment must be an express written
undertaking or appropriate forms of the Company. 
 THE TELEPHONE NUMBER TO PRESENT INQUIRIES OR OBTAIN INFORMATION ABOUT
COVERAGE AND TO PROVIDE ASSISTANCE IS 1-800-669-7450 
 THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED 

 

					
	30609	 	5 of 8	  	 ALTA Owner’s Policy (6/17/06)

(with Florida Modifications)

  

					
	Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date
of use. All other uses are prohibited. Reprinted under license from the American Land Title Association	  		  	

  
 

 
 ENDORSEMENT 
 RESTRICTIONS, ENCROACHMENTS, MINERALS – OWNER’S POLICY – IMPROVED LAND 
 Attached to Policy No. 
 PRO FORMA 

Issued by 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures the Insured against loss or damage sustained by reason of: 
  

	1.	The existence, at Date of Policy, of any of the following unless expressly excepted in Schedule B: 

 

	 	(a)	Present violations on the land of any enforceable covenants, conditions or restrictions, or any existing improvements on the land which violate any building setback
lines shown on a plat of subdivision recorded or filed in the public records. 

  

	 	(b)	Any instrument referred to in Schedule B as containing covenants, conditions or restrictions on the land which, in addition, (i) establishes an easement on the
land; (ii) provides for an option to purchase, a right of first refusal or the prior approval of a future purchaser or occupant; or; (iii) provides a right of reentry, possibility of reverter or right of forfeiture because of violations on
the land of any enforceable covenants, conditions or restrictions. 

  

	 	(c)	Any encroachment of existing improvements located on the land onto adjoining land, or any encroachment onto the land of existing improvements located on adjoining land.

  

	 	(d)	Any encroachment of existing improvements located on the land onto that portion of the land subject to any easement excepted in Schedule B. 

 

	 	(e)	Any notices of violation of covenants, conditions and restrictions relating to environmental protection recorded or filed in the public records.

  

	2.	Damage to existing buildings: 

  

	 	(a)	Which are located on or encroach upon that portion of the land subject to any easement excepted in Schedule B, which damage results from the exercise of the right to
maintain the easement for the purpose for which it was granted or reserved; 

  

	 	(b)	Resulting from the future exercise of any right existing at Date of Policy to use the surface of the land for the extraction or development of minerals excepted from
the description of the land or excepted in Schedule B. 

  

	3.	Any final court order or judgment requiring the removal from any land adjoining the land of any encroachment, other than fences, landscaping or driveways, excepted in
Schedule B. 

  

	4.	Any final court order or judgment denying the right to maintain any existing building on the land because of any violation of covenants, conditions or restrictions or
building setback lines shown on a plat of subdivision recorded or filed in the public records at Date of Policy. 

 Whenever in
this endorsement the words “covenants, conditions or restrictions” appear, they shall not be deemed to refer to or include the terms, covenants, conditions or limitations contained in an instrument creating a lease. 

As used in paragraphs 1(a) and 4, the words “covenants, conditions or restrictions” shall not be deemed to refer to or include any covenants,
conditions or restrictions relating to environmental protection. 
 This endorsement is made a part of the policy and is subject to all of the
terms and provisions thereof and any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy
and any prior endorsements, nor does it increase the face amount thereof. 
  

			
	DATED:	 	DATE OF RECORDING
	
	CHICAGO TITLE INSURANCE COMPANY
	  

 Authorized Signatory 
  

			
	  	  	 ALTA 9.2-06 Restrictions,
 Encroachment, Minerals-
 Owner’s Policy-Improved Land

(6/16/06)(with Florida modifications)

  

					
	81E10509	 	1 of 1	  	
	Copyright American Land Title Association. All rights reserved. The use of this Form is restricted to ALTA licensees and ALTA
members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.	  	

  
 

 
 ENDORSEMENT 
 SURVEY 
 Attached to Policy No. 

PRO FORMA 

Issued by 

CHICAGO TITLE INSURANCE COMPANY 
  

	The	Company hereby acknowledges the lands described in Schedule A are the same lands described in the survey prepared by Eddie Martinez of Zurweille-Whittaker, dated
August 29, 2012, last revised March 28, 2013, however, the Company does not insure the accuracy or completeness of said survey. 

 This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements,
(iii) extend the Date of Policy, or (iv)increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise,
this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsement 

  
 

 
 ENDORSEMENT 
 CONTIGUITY 
 Attached to Policy No. 

PRO FORMA 

Issued by 

CHICAGO TITLE INSURANCE COMPANY 
 The Company insures the Insured herein against loss or damage by virtue of any inaccuracy in the following statement, to wit: 
 The Parcels set forth in the legal description are contiguous to each other along their common boundary lines, and taken as a tract, constitute one parcel of land. 

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. 
 MIAMI 3615197.1 80111/41545 

			
		
	DATED:	 	DATE OF RECORDING
	
	CHICAGO TITLE INSURANCE COMPANY
	
	 PROFORMA

		 	Authorized Signature

  

					
		 	1 of 1	  	Contiguity endorsment

 EXHIBIT G 
 Form of Intercompany Release 
 FOR VALUE RECEIVED, Morgans Group
LLC, a Delaware limited liability company (the “Seller”), Morgans Hotel Group Management, LLC, a Delaware limited liability company (the “Manager”), for themselves and on behalf of each of their Affiliates (each, a
“Releasing Person”), hereby irrevocably and unconditionally release, acquit and forever discharge Beach Hotel Associates LLC (the “Company”) from, and acknowledge cancellation of, any and all intercompany debts,
payables or other Liabilities of the Company to Seller, Manager or any of their respective Affiliates (other than any debts, payables or Liabilities arising under the New Management Agreement from and after the Closing), whether known or unknown,
suspected or unsuspected, both at law and in equity, which each Releasing Person now has, has ever had or may have against the Company. The foregoing release shall become effective on the date hereof immediately prior to the assignment of the
Interests to Purchaser at Closing. 
 Capitalized terms used but not defined herein have the meanings assigned to them in that
certain Membership Interest Purchase Agreement (Delano Hotel, Miami Beach, Florida), dated as of March ___, 2013, by and between the Seller and Vintage Deco Hospitality, LLC. 
 Dated effective as of [    ], 2013. 
  

							
	Seller:	 	MORGANS GROUP LLC, a Delaware limited liability company
				
		 		  	By:	 	  

		 		  	Name:	 	  

		 		  	Its:	 	  

		
	Manager:	 	MORGANS HOTEL GROUP MANAGEMENT, LLC, a Delaware limited liability company
				
		 		  	By:	 	  

		 		  	Name:	 	  

		 		  	Its:	 	  

  
 iEX-10.3

 Exhibit 10.3 
 Execution Version 
 INVESTMENT AGREEMENT 

This INVESTMENT AGREEMENT (this “Agreement”), dated as of March 30, 2013, is made by and between Yucaipa Aggregator
Holdings, LLC (the “Investor”), a Delaware limited liability company wholly owned by Yucaipa American Alliance Fund II, L.P. (“YAAF II”) and Yucaipa American Alliance (Parallel) Fund II, L.P. (“YAAF
II-Parallel” and together with YAAF II, the “YAAF Funds”), on the one hand, and Morgans Hotel Group Co., a Delaware corporation (the “Company”), on the other hand. 

WHEREAS, the Company proposes to distribute, at no charge, (i) to each holder of record of shares of common stock, par value $0.01
per share, of the Company (the “Common Stock”) as of a record date to be set by the Board of Directors (the “Board”) of the Company (the “Record Date”) transferable rights (the “Common Stock
Rights”) and (ii) to each holder of Common Stock Units (as defined below) as of the Record Date transferable warrants (the “Rights Warrants,” and together with the Common Stock Rights, the “Rights”) to
subscribe for and purchase a number of shares of Common Stock that, if exercised in full by all such holders, will provide gross proceeds to the Company of $100 million (the “Rights Offering”); 

WHEREAS, each holder of a Common Stock Right and each holder of a Rights Warrant will be entitled (the “Basic Subscription
Right”) to purchase up to such holder’s pro rata portion of a total of 16,666,666 shares of Common Stock (the “Offered Shares,” which shall be deemed to include for all purposes any Unsubscribed Shares referred to
herein and issuable pursuant hereto), which is equal to the quotient of (x) $100 million divided by (y) a subscription price (the “Subscription Price”) equal to $6.00 per share, rounded down to the nearest whole
share; 
 WHEREAS, subject to the terms and conditions of the Rights Offering, each holder of a Right that exercises in full its
Basic Subscription Right will be entitled to subscribe for additional shares of Common Stock at the Subscription Price (the “Over-Subscription Privilege”), to the extent that holders of Rights do not subscribe for and purchase all
of the Offered Shares available under the Basic Subscription Right; 
 WHEREAS, in order to facilitate the Rights Offering, the
Investor (acting at the request of the special committee of the Board (the “Special Committee”)) and the Company wish to enter into this Agreement, pursuant to which and upon the terms and subject to the conditions set forth herein,
to the extent that the Offered Shares are not all subscribed for and purchased in the Rights Offering by holders of Rights prior to the Expiration Time (as defined below), the Company shall sell to the Investor and the Investor shall purchase from
the Company upon expiration of the Rights Offering, at the Subscription Price, that number of Offered Shares that are not subscribed for and purchased by holders of Rights upon exercise thereof under the Basic Subscription Right and the
Over-Subscription Privilege; 
 WHEREAS, the Board has approved the Rights Offering; and 

WHEREAS, the Special Committee has approved this Agreement and the transactions contemplated hereby, including, without limitation, the
sale and purchase of the Common Stock and the entry by the Company and the Investor concurrently herewith into a Registration Rights Agreement in the form attached hereto to as Annex A (the “Registration Rights Agreement”);

 NOW, THEREFORE, in consideration of the mutual promises, agreements, representations,
warranties and covenants contained herein, each of the parties hereto hereby agrees as follows: 
 1. Rights Offering

 (a) On the terms and subject to the conditions set forth herein, the Company shall distribute, at no charge, to (i) the
holder of record of each share of Common Stock outstanding as of the close of business on the Record Date (each, a “Common Stock Holder”) one Common Stock Right for each whole share of Common Stock owned by such Common Stock Holder
as of the close of business on the Record Date and (ii) the holder of each Common Stock Unit outstanding as of the close of business on the Record Date (each, an “Equity Holder” and together with the Common Stock Holders, the
“Eligible Holders”) one Rights Warrant for each Common Stock Unit held by such Equity Holder as of the close of business on the Record Date. Each Right shall entitle the Eligible Holder to purchase, at the Subscription Price per
whole share, a number of shares of Common Stock, which is equal to the quotient of (x) the Offered Shares divided by (y) the total of the number of shares of Common Stock plus the number of Common Stock Units outstanding as of the close of
business on the Record Date. Fractional shares of Common Stock resulting from the exercise of the Rights shall be eliminated by rounding down to the nearest whole share; provided, however, that if as a result of such rounding, any Eligible Holder is
unable to purchase even one Offered Share, such Eligible Holder’s fractional share shall be rounded up so that such Eligible Holder shall have the ability to purchase one Offered Share. No Rights shall be distributed or issued with respect to
any Common Stock held in the treasury of the Company. Each Right shall be transferrable separately from the underlying shares of Common Stock or Common Stock Units, as the case may be, on account of which such Right was distributed. For purposes of
this Agreement, (a) Eligible Holders and holders to which Rights have been validly transferred are collectively referred to as “Holders,” each individually being a “Holder” and (b) “Common Stock
Units” refers to non-managing membership units (other than non-managing membership units underlying long-term incentive plan units) of Morgans Group LLC, the Company’s operating company, issued pursuant to such operating company’s
limited liability operating agreement. 
 (b) The Rights (including under both the Basic Subscription Right
and the Over-Subscription Privilege) may be exercised during a period (the “Rights Exercise Period”) commencing on the date of mailing of the Rights Offering Prospectus (as defined below) or Rights Offering Prospectus Supplement (as
defined below), as applicable, to Holders (the “Rights Offering Commencement Date”) and ending at 5:00 p.m., New York City Time, on such date as shall be determined by the Special Committee in its sole discretion and set forth in
the Rights Offering Prospectus, which date shall be no earlier than the 16th day after the Rights Offering Commencement Date and no later than the
30th day after the Rights Offering Commencement Date (the
“Expiration Time”), subject to extension by the Special Committee with the prior written consent of the Investor (which consent shall not be unreasonably withheld, conditioned or delayed), but in no event to a date later than five
(5) Business Days prior to the Outside Date (as defined below). 

  
 2 

 (c) Each Holder that wishes to exercise all or a portion of its Rights under the Basic
Subscription Right shall (i) during the Rights Exercise Period return a duly executed document to a subscription agent selected by the Company (the “Subscription Agent”) electing to exercise all or a portion of the Rights held
by such Holder and (ii) pay in immediately available funds an amount equal to the full Subscription Price for the number of shares of Common Stock that such Holder elects to purchase pursuant to the instructions set forth in the Rights Offering
Registration Statement (as defined below) and related materials not later than the Expiration Time to an escrow account established for the Rights Offering. At the Closing (as defined below), subject to the satisfaction (or permitted waiver) of the
conditions to the Rights Offering, the Company shall issue to each Holder that validly exercised its Rights under the Basic Subscription Right the number of Offered Shares to which such Holder is entitled based on such exercise. The obligation of
the Company to consummate the Rights Offering shall be subject to the conditions set forth in Section 7(c) (which may not be waived, in whole or in part, by the Company without the prior written consent of the Investor). 

(d) Each Holder that exercises in full its Basic Subscription Right shall be entitled under the Over-Subscription Privilege to subscribe
for additional shares of Common Stock at the Subscription Price, up to a maximum of 50% of the number of shares that such Holder has exercised its right to purchase pursuant to its Basic Subscription Right, in accordance with the instructions set
forth in the Rights Offering Registration Statement and related materials to the extent that other Holders elect not to exercise all of their respective Rights to subscribe for and purchase all of the Offered Shares under the Basic Subscription
Right. If the number of Offered Shares remaining after the exercise of Rights under the Basic Subscription Right (the “Remaining Offered Shares”) is not sufficient to satisfy all requests for Offered Shares in accordance with the
terms of the Over-Subscription Privilege, the Holders that effectively exercised their Rights under the Over-Subscription Privilege shall be allocated such Remaining Offered Shares pro rata among the Holders exercising the Over-Subscription
Privilege in proportion to the number of shares of Common Stock for which such Holders exercised Basic Subscription Rights, relative to the number of shares or Common Stock Units owned as of the close of business on the Record Date by all Holders.
If this pro rata allocation results in any Holder receiving a greater number of shares than the Holder subscribed for pursuant to the exercise of the Over-Subscription Privilege, then such Holder shall be allocated only that number of shares for
which the Holder over-subscribed, and the remaining shares shall be allocated among all other Holders exercising the Over-Subscription Privilege on the same pro rata basis described above who have not then been allocated the full amount of their
requests for Offered Shares; provided, it shall be a term of the Rights Offering that no Holder or group of affiliated Holders shall be entitled to exercise its Over-Subscription Privilege to the extent that, after giving effect to such purchase of
shares, any such Holder would become the Beneficial Owner (as such term is defined in the Amended and Restated Stockholder Protection Rights Agreement, dated as of October 1, 2009, between the Company and Mellon Investor Services LLC, as
amended through the date hereof and including the amendments set forth in the Rights Plan Amendment attached as Exhibit C to the Exchange Agreement (the “Stockholder Protection Rights Agreement”)) of 15.0% or more of the shares of
Common Stock that will be outstanding as of the Closing after giving effect to the issuance of all of the Offered Shares. The foregoing proration process shall be repeated until all of the Remaining Offered Shares have been allocated. At the
Closing, subject to satisfaction (or permitted waiver) of the conditions to the Rights Offering, the Company shall issue to each Holder that validly exercised its Over-Subscription Privilege the number of Offered Shares to which such Holder is
entitled based on such exercise and its full exercise of its Basic Subscription Right. 

  
 3 

 (e) The terms of the Rights Offering may, but shall not be required to, provide for
guaranteed delivery procedures. 
 (f) The aggregate gross proceeds from the sale of the Offered Shares pursuant to the Rights
Offering and the sale of the Unsubscribed Shares (as defined below) to the Investor pursuant hereto shall be used by the Company as described in “Use of Proceeds” in the Rights Offering Prospectus or Rights Offering Prospectus Supplement,
and to pay all fees and expenses associated with the Rights Offering and this Agreement. 
 2. Sale and Purchase of
Unsubscribed Shares; Escrow of Payments; Fees and Expenses. 
 (a) Upon the terms and subject to the conditions set forth in
this Agreement, to the extent that all of the Offered Shares are not subscribed for and purchased in the Rights Offering by holders of Rights prior to the Expiration Time (including upon exercise of Rights under the Basic Subscription Right and the
Over-Subscription Privilege), (i) the Company shall sell to the Investor and the Investor shall purchase from the Company at the Closing, at the Subscription Price (without any discount), the positive number of Offered Shares, if any, issuable
pursuant to Rights which is equal to (A) the Offered Shares minus (B) the number of shares of Common Stock validly subscribed for and purchased under the Basic Subscription Right and the Over-Subscription Privilege, which, for the
avoidance of doubt, shall include the number of shares of Common Stock validly subscribed for and purchased upon exercise of the Common Stock Rights and the Rights Warrants (such shares of Common Stock equal to such difference of (A) minus (B),
in the aggregate, the “Unsubscribed Shares”). 
 (b) The Company hereby agrees and undertakes to certify to the
Investor in writing as promptly as practicable, and in any event (subject to receipt by the Company of such information from the Subscription Agent) by 5:00 p.m., New York City Time, on the first Business Day after the date of the Expiration Time,
by electronic mail or facsimile transmission (i) a true and accurate determination of the aggregate number of Rights validly exercised by Holders under the Basic Subscription Right and the Over-Subscription Privilege pursuant to the Rights
Offering as of the Expiration Time and the aggregate Subscription Price therefor, and (ii) a true and accurate determination of the aggregate number of Unsubscribed Shares, if any (such certification, the “Certificate of Offering
Results”). “Business Day” has the meaning ascribed to the term “business day” in Rule 14d-1(g) under the Securities Exchange Act of 1934, as amended and in effect on the date hereof (the “Exchange
Act”). 

  
 4 

 (c) The closing of the purchase of the Offered Shares to be purchased in the Rights
Offering, and, if applicable, the purchase of the Unsubscribed Shares to be purchased by the Investor hereunder (the “Closing”) shall occur at the offices of Sullivan & Cromwell LLP, 125 Broad Street, New York, New York
10004 at 1:00 p.m., New York City Time, on the later of the fourth Business Day following the date of the Expiration Time and the date of satisfaction of the conditions set forth in Section 7 (or waiver thereof by the party or
parties entitled to waive such conditions), or such other time and date as shall be agreed upon by the Company and the Investor (the “Closing Date”). Subject to satisfaction of the closing conditions for the Rights Offering, the
Company shall, prior to the Closing Date, deliver to the Subscription Agent a certificate of acceptance of all valid subscriptions received in the Rights Offering. At the Closing, the Investor shall purchase, and the Company shall sell, only such
number of Unsubscribed Shares as are listed in the Certificate of Offering Results, as the Certificate of Offering Results may be amended by mutual agreement of the Company and the Investor prior to the Closing. Delivery of the Unsubscribed Shares
shall be made by the Company at the Closing in book-entry form to the account of the Investor against payment by the Investor of the Subscription Price therefor by wire transfer of immediately available funds to the account designated in writing by
the Company. At the Closing, the Company shall also deliver to the Investor a certificate, dated as of the Closing Date, of the transfer agent for the Common Stock confirming the issuance to the Investor of the Unsubscribed Shares, if any, and all
other documents and certificates required to be delivered to the Investor pursuant to Section 7(a). 
 (d) All
Unsubscribed Shares shall be delivered at the Closing with any and all issue, stamp, transfer, sales and use, or similar taxes or duties payable in connection with such delivery duly paid by the Company. 

(e) The Company shall notify, or cause the Subscription Agent to notify, the Investor at least once each week during the Rights Exercise
Period and on each Business Day during the five Business Days prior to the date of the Expiration Time (and any extensions thereto), or more frequently if reasonably requested by the Investor, of the aggregate number of Rights known by the Company
or the Subscription Agent to have been validly exercised pursuant to the Rights Offering as of the close of business on the preceding Business Day or the most recent practicable time before such request, as the case may be. 

(f) The Company shall pay all of its own fees and expenses associated with the Rights Offering, including, without limitation, filing and
printing fees, fees and expenses of any subscription and information agents, its counsel and financial advisor and accounting fees and expenses, costs associated with clearing the Offered Shares for sale under applicable state securities laws, and
listing fees. The Company shall reimburse the Investor for all reasonable and documented out-of-pocket third-party fees and expenses incurred by the Investor in connection with the negotiation, execution and delivery of this Agreement and any of the
transactions or filings contemplated by this Agreement, including all reasonable fees and disbursements of legal counsel to the Investor and any filing fees and other expenses incurred in connection with any filings that are required to be made with
respect to the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations promulgated thereunder (the “HSR Act”), subject to a maximum aggregate reimbursement amount of $250,000. 

  
 5 

 (g) The Investor and the Company hereby agree that it is the intent of all parties that the
Investor, by virtue of acting hereunder, shall not be deemed an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act of 1933, as amended and in effect on the date hereof (the “Securities Act”),
or deemed to be engaged in broker-dealer activity requiring registration under Section 15 of the Exchange Act, and each of the Investor and the Company shall in the fulfillment of their respective obligations hereunder act in accordance with
this mutual understanding. 
 3. Representations and Warranties of the Company. The Company represents and warrants to,
and agrees with the Investor, as set forth below. Except for representations, warranties and agreements that are expressly limited as to their date, each representation, warranty and agreement is made as of the date hereof and as of the Closing
Date, after giving effect to the transactions contemplated hereby: 
 (a) Organization and Qualification. The Company has
been duly organized and is validly existing and in good standing under the laws of the State of Delaware, with the requisite power and authority to own its properties and conduct its business as currently conducted. The Company has been duly
qualified as a foreign corporation for the transaction of business and is in good standing under the laws of each other jurisdiction in which the nature of its properties or business requires such qualification, except to the extent that the failure
to be so qualified or be in good standing has not had and would not reasonably be expected to have a Material Adverse Effect. For the purpose of this Agreement, “Material Adverse Effect” means any circumstance, event, change or
development that, individually or in the aggregate, would have or reasonably be expected to have or result in (i) any material adverse effect on the business, condition (financial or otherwise), assets, liabilities, properties, operations or
results of operations of the Company and its Subsidiaries, taken as a whole, or (ii) any prohibition or material adverse effect on the ability of the Company, subject to the approvals and other authorizations set forth in
Section 3(f), to consummate any of the transactions contemplated by this Agreement, provided, however, that any effect caused by or resulting from the following shall not constitute, or be taken into account in determining whether there
has been, or will be, a Material Adverse Effect on or with respect to the Company or its Subsidiaries: (I) general changes or developments in the industry in which the Company and its Subsidiaries operate, (II) political instability, acts
of terrorism or war, (III) any change affecting the United States economy generally or the economy of any region in which the Company or any of its Subsidiaries conducts business that is material to the business of the Company and its
Subsidiaries, (IV) any change in the price or trading volume of the Company’s outstanding securities (it being understood that the facts or occurrences giving rise to or contributing to such change in stock price or trading volume may be
deemed to constitute, or be taken into account in determining whether there has been, or will be, a Material Adverse Effect), (V) any failure, in and of itself, by the Company to meet any internal or published projections, forecasts, or revenue
or earnings predictions for any period ending on or after the date of this 

  
 6 

 
Agreement (it being understood that the facts or occurrences giving rise to or contributing to such failure may be deemed to constitute, or be taken into account in determining whether there has
been, or will be, a Material Adverse Effect), (VI) the announcement of the execution of this Agreement or the Exchange Agreement, dated as of the date hereof, among the Company, the Investor and the YAAF Funds (the “Exchange
Agreement”), or the pendency of the consummation of the Rights Offering, or the performance of this Agreement, the Exchange Agreement and the transactions contemplated hereby or thereby, including compliance with the covenants set forth
herein or therein, (VII) any litigation commenced by any stockholder of the Company or Jason Kalisman relating to or arising out of the Rights Offering, this Agreement, the Exchange Agreement or the transactions contemplated hereby and thereby or
(VIII) any change in any applicable law, rule or regulation or United States generally accepted accounting principles (“GAAP”) or interpretation thereof after the date hereof, unless and to the extent, in the case of clauses
(I), (II), (III) and (VIII) above, such effect has had or would reasonably be expected to have a disproportionate adverse effect on the business, condition (financial or otherwise), assets, liabilities, properties, operations or results of
operations of the Company and its Subsidiaries, taken as a whole, relative to other affected persons. For the purposes of this Agreement, a “Subsidiary” of any person means, with respect to such person, any corporation, limited
liability company, partnership, joint venture or other legal entity, the accounts of which would be consolidated with and into such person’s consolidated financial statements if such financial statement were prepared in accordance with GAAP.

 (b) Corporate Power and Authority. The Company has the requisite corporate power and authority to enter into, execute,
and deliver this Agreement, the Registration Rights Agreement and each other agreement, document, and instrument to which it will be a party or which it will execute and deliver in connection with the transactions contemplated by this Agreement
(this Agreement, the Registration Rights Agreement and such other agreements (excluding the Exchange Agreement), documents, and instruments delivered pursuant to the terms hereof, collectively, the “Transaction Agreements”) and to
perform its obligations hereunder and thereunder, including the issuance of the Rights and the Offered Shares (including the Unsubscribed Shares). The Company has taken all necessary corporate action required for the due authorization of the
Transaction Agreements, including the issuance of the Rights and the Offered Shares. 
 (c) Execution and Delivery;
Enforceability. This Agreement is and each other Transaction Agreement will be, at or prior to the Closing, duly and validly executed and delivered by the Company, and this Agreement constitutes and each such other Transaction Agreement
constitutes, or, when executed and delivered, will constitute, a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by the effect of bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, or similar laws affecting the enforcement of creditors’ rights generally, or by general principles of equity. 

  
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 (d) Capitalization; Issuance. As of March 22, 2013, the authorized capital of
the Company consists of 200,000,000 shares of Common Stock, of which 32,347,464 shares are issued and outstanding and (i) 1,424,740 shares are reserved for issuance upon exercise of outstanding options, (ii) 2,663,181 shares are reserved
for issuance upon vesting or conversion of outstanding restricted stock units and long-term incentive plan units underlying non-managing membership units of Morgans Group LLC, (iii) 954,065 shares are reserved for issuance upon conversion of
outstanding Common Stock Units, (iv) 7,858,755 shares are reserved for issuance upon conversion of outstanding convertible notes, (v) 12,500,000 shares are reserved for issuance upon exercise of outstanding warrants, and (vi) an
indeterminate number of shares of Common Stock may become issuable, subject to future stockholder approval of the additional shares available for such issuance, under the Company’s Outperformance Award Program if certain performance objectives
set forth therein are achieved, as described in publicly filed award agreements and in accordance with the terms thereof. Any shares of Common Stock (A) issued after December 31, 2012 and outstanding as of the date hereof were issued
solely pursuant to obligations referred to in any of clauses (i) through (v) of the preceding sentence and (B) to be issued after the date hereof and outstanding as of the Closing will consist only of the Offered Shares and shares
issued pursuant to obligations referred to in any of clauses (i) through (v) of the preceding sentence. The issued and outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and nonassessable, have
been issued in compliance with all federal and state securities laws, and were not issued in violation of or subject to any preemptive or similar rights. The distribution of the Rights and the issuance of the Offered Shares have been duly and
validly authorized and when such Offered Shares are issued and delivered against payment therefor as contemplated by the terms and conditions of the Rights Offering or this Agreement, as the case may be, will be duly authorized, validly issued and
delivered and fully paid and nonassessable, free and clear of all taxes, liens, preemptive rights, rights of first refusal, subscription and similar rights. Upon the distribution by the Company of the Rights, the Rights will be duly and validly
issued, free and clear of all taxes, liens, preemptive rights, rights of first refusal and similar rights, and enforceable in accordance with their terms, and holders of the Rights will be entitled to the rights described in the Rights certificates.

 (e) No Conflict. Each of the distribution of the Rights, the sale, issuance and delivery of the Offered Shares upon
exercise of the Rights, the issuance and delivery of the Unsubscribed Shares in accordance with the terms hereof, the consummation of the Rights Offering by the Company, and the execution and delivery by the Company of the Transaction Agreements and
performance of and compliance with all of the provisions hereof and thereof by the Company and the consummation of the transactions contemplated herein and therein, following amendment of the Stockholder Protection Rights Agreement pursuant to the
Rights Plan Amendment attached as Exhibit C to the Exchange Agreement, (i) except as described on Schedule A attached hereto, will not conflict with, or result in a breach or violation of, any of the terms or provisions of, or constitute
a default under (with or without notice or lapse of time, or both), or result in the acceleration of, or the creation of any lien under, or result in any “change of control” or, cause any related trigger or acceleration of rights under,
any indenture, mortgage, deed of trust, loan agreement, or other agreement, plan or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound or to which any of the property or
assets of the Company or any of its Subsidiaries is subject, (ii) will not result in any violation of the provisions of the certificate of incorporation or by-laws of the Company or any of the organizational or governance documents of its
Subsidiaries, and (iii) will not result in any violation of, or any termination or impairment of any rights under, any statute or any license, authorization, injunction, judgment, order, decree, law, rule or regulation of any court or
governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their properties, except in any such case described in subclauses (i) and (iii) for any conflict, breach, violation, default,
acceleration, lien, termination or impairment which would not reasonably be expected to have a Material Adverse Effect. 

  
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 (f) Consents and Approvals. No consent, approval, authorization, order, registration
or qualification of or with any third party or any court or other legislative, executive or judicial governmental agency or body having jurisdiction over the Company or any of its Subsidiaries or any of their properties is required for the
distribution of the Rights, the sale, issuance and delivery of the Offered Shares upon exercise of the Rights, the issuance and delivery of the Unsubscribed Shares in accordance with the terms hereof, the consummation of the Rights Offering by the
Company, and the execution and delivery by the Company of the Transaction Agreements and performance of and compliance by the Company with all of the provisions hereof and thereof and the consummation of the transactions contemplated herein and
therein, except (i) the registration under the Securities Act of the issuance of the Rights and the Offered Shares pursuant to the exercise of Rights, (ii) such consents, approvals, authorizations, registrations or qualifications
(y) as may be required under state securities or “blue sky” laws in connection with the purchase of the Unsubscribed Shares by the Investor, or the distribution of the Rights and the sale of the Offered Shares to Holders, or
(z) pursuant to the rules of The Nasdaq Stock Market LLC (the “Nasdaq Stock Market”) and (iii) to the extent applicable, any filings with respect to, and the expiration or early termination of the waiting period under the
HSR Act, relating to the acquisition of the Unsubscribed Shares as contemplated hereunder. 
 (g) Rights Offering
Registration Statement and Rights Offering Prospectus. The Company has prepared and filed with the United States Securities and Exchange Commission (the “Commission”) in accordance with the provisions of the Securities Act, and
the rules and regulations promulgated thereunder, a registration statement (No. 333-167867) on Form S-3, relating to certain securities to be issued from time to time by the Company, including without limitation, Common Stock and rights to
purchase Common Stock. The Company proposes to file with the Commission pursuant to Rule 424 of the regulations promulgated under the Securities Act a prospectus supplement specifically relating to the Offered Shares (including, without
limitation, the Unsubscribed Shares). Such registration statement, as amended at the time it became effective, including the information, if any, deemed pursuant to Rule 430B of the regulations promulgated under the Securities Act to be part
of the registration statement at the time of its effectiveness, is referred to herein as the “Rights Offering Registration Statement.” The term “Base Prospectus” means the prospectus dated July 23, 2010
included in the Registration Statement, including all information incorporated by reference therein. The term “Rights Offering Prospectus Supplement” means the prospectus supplement specifically relating to the Offered Shares
(including, without limitation, the Unsubscribed Shares) in the form first filed with the Commission pursuant to Rule 424 of the regulations promulgated under the Securities Act, after the date and time that this Agreement is executed and
delivered by the parties 

  
 9 

 
hereto, including all information incorporated by reference therein. The term “Rights Offering Prospectus” means the Base Prospectus together with the Rights Offering Prospectus
Supplement. The term “Preliminary Rights Offering Prospectus” means any preliminary form of the prospectus in the form filed with the Commission pursuant to Rule 424 of the regulations promulgated under the Securities Act. Any
reference in this Agreement to the Rights Offering Registration Statement, any Rights Offering Preliminary Prospectus or the Rights Offering Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant
to Item 12 of Form S-3 under the Securities Act, as of the effective date of the Rights Offering Registration Statement or the date of such Preliminary Rights Offering Prospectus or the Rights Offering Prospectus, as the case may be, and any
reference to “amend,” “amendment” or “supplement” with respect to the Rights Offering Registration Statement, any Preliminary Rights Offering Prospectus or the Rights Offering Prospectus shall be deemed to refer to and
include any documents filed after such date under the Exchange Act that are deemed to be incorporated by reference therein. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Rights Offering Registration
Statement and the Rights Offering Prospectus. The term “Investment Decision Package” means the Rights Offering Prospectus, together with any Issuer Free Writing Prospectus used by the Company to offer the Offered Shares to Holders
pursuant to the Rights Offering. The term “Issuer Free Writing Prospectus” means each “issuer free writing prospectus” (as defined in Rule 433 of the rules promulgated under the Securities Act) prepared by or on
behalf of the Company or used or referred to by the Company in connection with the Rights Offering. The term “Securities Act Effective Date” means the date and time as of which the Rights Offering Registration Statement, or the most
recent post-effective amendment thereto, was declared effective by the Commission. The Rights Offering Registration Statement and the Investment Decision Package, and all of the documents incorporated by reference therein, at the time they become
effective and at the Closing Date and Rights Offering Closing Date, as applicable, (i) will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made not misleading and (ii) will comply in all material respects with the applicable provisions of the Securities Act and the Exchange Act. 

(h) SEC Reports. The Company has filed all SEC Reports since December 31, 2010. Such SEC Reports, including, without
limitation, all financial statements and schedules included therein, at the time filed, or in the case of any of the SEC Reports amended or superseded by a filing prior to the date of this Agreement, then on the date of such amended or superseded
filing, (i) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading and (ii) complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act. “SEC Reports” means all reports, forms, statements and other documents (and all
amendments and supplements thereto) required to be filed by the Company with the Commission pursuant to the Securities Act and the Exchange Act. 

  
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 (i) Nasdaq Stock Market Compliance. The Company is not in violation of any of the
rules or policies of the Nasdaq Stock Market, including the applicable listing requirements of the Nasdaq Stock Market, in any material respects. 
 (j) Interim Events. Since December 31, 2012, except as set forth in the SEC Reports filed prior to the date of this Agreement or as otherwise disclosed to the Board at a duly called meeting of
the Board held prior to the date of this Agreement, there have not been any events, changes or occurrences that have had or would reasonably be expected to have a Material Adverse Effect. 

(k) No Broker’s Fee. Except as disclosed in writing by the Company to the Investor on or before the date hereof, the Company
has not incurred any liability for any finder’s or broker’s fee or agent’s commission in connection with the execution and delivery of this Agreement or the consummation of the Rights Offering and the issuance of the Offered Shares
contemplated hereby. 
 (l) Absence of Agreements. Except as provided in this Agreement, there are no agreements,
understandings or arrangements between the Company and any person relating to the Rights Offering or the purchase of any Offered Shares, it being agreed that the foregoing shall not be deemed to restrict the Company, following written notice to the
Investor of the terms thereof and identifying the applicable Holder, from entering into agreements, understandings or arrangements with any existing Holder of its Common Stock whereby such Holder agrees to exercise, in full or in part, its Basic
Subscription Right or Over-Subscription Privilege. 
 (m) DGCL Section 203. The Board has taken all action necessary
or appropriate under Section 203 of the General Corporation Law of the State of Delaware to approve the acquisition by Investor of the Unsubscribed Shares pursuant to this Agreement so that such Section 203 shall not apply to such
transactions. 
 4. Representations and Warranties of the Investor. The Investor represents and warrants and agrees with
the Company as set forth below. Each such representation, warranty and agreement is made as of the date hereof and as of the Closing Date. 
 (a) Formation. The Investor has been duly formed and is validly existing as a limited liability company in good standing under the laws of the jurisdiction of its formation. 

(b) Power and Authority. The Investor has the requisite limited liability company power and authority to enter into, execute and
deliver this Agreement and the other Transaction Agreements and to perform its obligations hereunder and thereunder and has taken all necessary limited liability company action required for the due authorization of the Transaction Agreements.

  
 11 

 (c) Execution and Delivery. This Agreement is and each other Transaction Agreement
will be, at or prior to the Closing, duly and validly executed and delivered by the Investor and constitutes, or, when executed and delivered, will constitute, a valid and binding obligation of the Investor, enforceable against the Investor in
accordance with its terms, except as may be limited by the effect of bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or similar laws affecting the enforcement of creditors’ rights generally, and subject to principles
of equity and public policy. 
 (d) No Registration. The Investor understands that the Unsubscribed Shares have not been
registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the Investor’s investment intent
with respect to its purchase of the Unsubscribed Shares and the accuracy of representations and warranties and compliance with covenants as expressed herein or otherwise made pursuant hereto.  

(e) Investment Intent. The Investor is acquiring its portion of the Unsubscribed Shares for investment for its own account, not as
a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof not in compliance with the Securities Act, the rules and regulations promulgated thereunder, and any applicable state securities or “blue
sky” laws, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing such Unsubscribed Shares, except in compliance with the Securities Act, the rules and regulations promulgated thereunder,
and any applicable state securities or “blue sky” laws. 
 (f) Securities Laws Compliance. The Unsubscribed
Shares will not be offered for sale, sold or otherwise transferred by the Investor except pursuant to a registration statement or in a transaction exempt from, or not subject to, registration under the Securities Act and any applicable state
securities or “blue sky” laws. 
 (g) Sophistication. The Investor is an “accredited investor” within
the meaning of Rule 501(a) of the regulations promulgated under the Securities Act and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Unsubscribed
Shares being acquired hereunder. The Investor understands and is able to bear any economic risks associated with such investment (including, without limitation, the necessity of holding its portion of the Unsubscribed Shares for an indefinite period
of time). Without derogating from or limiting in any manner whatsoever the representations and warranties of the Company, the Investor acknowledges that it has been afforded the opportunity to ask questions and receive answers concerning the Company
and to obtain additional information that it has requested to verify the information contained herein. Notwithstanding the foregoing, nothing contained herein shall operate to modify or limit in any respect the representations and warranties of the
Company or to relieve it from any obligations to the Investor for breach thereof or the making of misleading statements or the omission of material facts in connection with the transactions contemplated herein. 

  
 12 

 (h) Legended Securities. The Investor understands and acknowledges that, upon the
original issuance thereof and until such time as the same is no longer required under any applicable requirements of the Securities Act, and the rules and regulations promulgated thereunder, or applicable state securities laws, the Company and its
transfer agent shall make such notation in the stock book and transfer records of the Company as may be necessary to record that the Unsubscribed Shares have not been registered under the Securities Act and that the Unsubscribed Shares may not be
resold without registration under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. 
 (i) No Conflict. The purchase of its portion of the Unsubscribed Shares by the Investor, the execution and delivery by the Investor of each of the Transaction Agreements to which it is a party and
the performance of and compliance with all of the provisions hereof and thereof by the Investor, and the consummation by the Investor of the transactions contemplated herein and therein (i) will not conflict with, or result in a breach or
violation of, any of the terms or provisions of, or constitute a default under (with or without notice or lapse of time, or both), or result, in the acceleration of, or the creation of any lien under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Investor is a party or by which the Investor is bound, (ii) will not result in any violation of the provisions of the certificate of formation, limited liability company operating
agreement, or similar governance documents of the Investor, and (iii) will not result in any material violation of, or any termination or material impairment of any rights under, any statute or any license, authorization, injunction, judgment,
order, decree, rule or regulation of any court or governmental agency or body having jurisdiction over the Investor, except in any such case described in subclauses (i) and (iii) for any conflict, breach, violation, default, acceleration
or lien which would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely affect the ability of the Investor, subject to the filings and other matters referred to in clause (i) of
Section 4(j), to perform its obligations under this Agreement. 
 (j) Consents and Approvals. No consent,
approval, authorization, order, registration or qualification of or with any court or other legislative, executive or judicial governmental agency or body having jurisdiction over the Investor is required to be obtained or made by the Investor for
the purchase of its portion of the Unsubscribed Shares in accordance with the terms hereof and the execution and delivery by the Investor of this Agreement or the other Transaction Agreements to which it is a party and performance of and compliance
by the Investor with all of the provisions hereof and thereof and the consummation of the transactions contemplated herein and therein, except (i) to the extent applicable, any filings with respect to, and the expiration or early termination of
the waiting period under, the HSR Act relating to the acquisition of the Unsubscribed Shares as contemplated hereunder, and (ii) any consent, approval, authorization, order, registration or qualification which, if not made or obtained, would
not reasonably be expected, individually or in the aggregate, to prohibit, materially delay or materially and adversely affect the Investor’s performance of its obligations under this Agreement. 

(k) Information Furnished. Information relating to the Investor furnished to the Company in writing by the Investor expressly for
use in the Rights Offering Registration Statement will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. 

  
 13 

 5. Additional Covenants of the Company. Without derogating from the obligations of
the Company set forth elsewhere in this Agreement, the Company agrees with the Investor as set forth below. 
 (a)
Registration Statement. 
 (i) As promptly as reasonably practicable following the date of this Agreement and the Record
Date, the Company shall prepare and file the Rights Offering Prospectus or Rights Offering Prospectus Supplement, as applicable. 
 (ii) The Rights Offering Prospectus or Rights Offering Prospectus Supplement filed with the Commission shall be consistent in all material respects with the last forms of such documents provided to the
Investor and its counsel to review prior to the filing thereof. The Company shall: (x) provide the Investor with a reasonable opportunity to review any Rights Offering Prospectus or Rights Offering Prospectus Supplement that is filed or amended
on or after the date hereof prior to its filing with the Commission and shall duly consider in good faith any comments of the Investor and its counsel; (y) advise the Investor promptly of the time when any Rights Offering Prospectus or Rights
Offering Prospectus Supplement has been filed and shall furnish the Investor with copies thereof; and (z) advise the Investor promptly after it receives notice of any comments or inquiries by the Commission (and furnish the Investor with copies
of any correspondence related thereto), of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Rights Offering Prospectus or Rights Offering Prospectus Supplement, of the initiation or threatening
of any proceeding for any such purpose, or of any request by the Commission for amending or supplementing any Rights Offering Prospectus or Rights Offering Prospectus Supplement or for additional information, and in each such case, provide the
Investor with a reasonable opportunity to review any such comments, inquiries, request or other communication from the Commission and to review any responses thereto and any amendment or supplement to any Rights Offering Prospectus or Rights
Offering Prospectus Supplement before any filing thereof with the Commission, and to duly consider in good faith and cooperate with the Investor in a reasonable manner to incorporate any comments of the Investor and its counsel and in the event of
the issuance of any stop order or of any order preventing or suspending the use of any Rights Offering Prospectus or Rights Offering Prospectus Supplement or suspending any such qualification, to use promptly its reasonable best efforts to obtain
its withdrawal. 
 (iii) The Company shall take all action as may be necessary and appropriate so that the Rights Offering and
the issuance and sale of the Unsubscribed Shares, and the other transactions contemplated by this Agreement, are effected in accordance with the applicable provisions of the Securities Act, the Exchange Act, the rules and regulations promulgated
under the Securities Act and the Exchange Act, any state or foreign securities or “blue sky” laws, and the rules of the Nasdaq Stock Market. 
 (iv) If during the Rights Exercise Period, any event occurs as a result of which the Investment Decision Package, as then amended or supplemented, would include an untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it shall be necessary to amend or supplement the Investment Decision Package to
comply with applicable law, the Company shall promptly notify the Investor of any such event and prepare an amendment or supplement to the Investor Decision Package that is reasonably acceptable in form and substance to the Investor that will
correct such statement or omission or effect such compliance. 

  
 14 

 (b) Listing. The Company shall use its reasonable best efforts to list and maintain
the listing of the Common Stock, including the Offered Shares and the Unsubscribed Shares, on the Nasdaq Stock Market. For the avoidance of doubt, the Company undertakes no obligation to list the Rights on the Nasdaq Stock Market or any other
securities exchange. 
 (c) No Stabilization. The Company shall not take, directly or indirectly, any action designed to
or that would or would reasonably be expected to cause or result in any stabilization or manipulation of the price of the shares of Common Stock in violation of Regulation M under the Exchange Act. 

(d) Ordinary Course of Business; Actions Regarding Conditions. During the period from the date of this Agreement to the Closing
Date, the Company for itself and on behalf of its Subsidiaries agrees to use its commercially reasonable efforts to preserve substantially intact their business organizations and goodwill, to keep available the services of those of their present
officers and employees who are integral to the operation of their businesses as presently conducted; and the Company shall not take any action or omit to take any action that would or would reasonably be expected to result in the Company’s
failure to satisfy the conditions to the Agreement set forth in Section 7. 
 (e) Commercially Reasonable
Efforts. The Company shall use its commercially reasonable efforts (and shall cause its Subsidiaries to use their respective reasonable efforts) to take or cause to be taken all actions, and do or cause to be done all things, reasonably
necessary, proper or advisable on its or their part under this Agreement and applicable laws to cooperate with the Investor and to consummate and make effective the transactions contemplated by this Agreement, including using commercially reasonable
efforts to: 
 (i) prepare and file as promptly as practicable all documentation to effect all necessary notices, reports and
other filings and to obtain as promptly as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third party or governmental entity; 

(ii) defend any lawsuits or other actions or proceedings, whether judicial or administrative, challenging this Agreement or any other
agreement contemplated by this Agreement or the consummation of the transactions contemplated hereby and thereby, including seeking to have any stay or temporary restraining order entered by any court or other governmental entity vacated or
reversed; and 

  
 15 

 (iii) execute, deliver and file, as applicable, any additional ancillary instruments,
documents, or agreements necessary to consummate the transactions contemplated by this Agreement, the Registration Rights Agreement and the other Transaction Agreements and to fully carry out the purposes of this Agreement, the Registration Rights
Agreement and the transactions contemplated hereby and thereby. 
 (f) Public Disclosure. The Company shall prepare and
timely file a copy of this Agreement with the Commission in accordance with the requirements of the Exchange Act and the rules and regulations promulgated thereunder. The Company shall not, nor shall it permit any of its affiliates to, issue or
cause the publication of any press release or other public announcement with respect to, or otherwise make any public statement concerning, the transactions contemplated by this Agreement, without the prior consent (which consent shall not be
unreasonably withheld, conditioned or delayed) of the Investor; provided, that the Company may, without any prior consent of the Investor (but after prior consultation with the Investor to the extent reasonably practicable under the circumstances)
issue or cause the publication of any press release or other public announcement to the extent required by applicable laws or by the rules of the Nasdaq Stock Market 
 (g) Management Rights Agreements. The Company and the Investor acknowledge and agree that those certain Management Rights Agreements, dated as of October 15, 2009, by and among the
Company and each of the YAAF Funds shall continue in full force and effect following the Closing for so long as the Investor (or any affiliate thereof or any YAAF Fund) holds any shares of Common Stock. 

6. Additional Covenants of the Investor. The Investor agrees with the Company as follows: 

(a) Information. The Investor shall provide the Company with such information as the Company reasonably requests regarding the
Investor for inclusion in the Rights Offering Registration Statement. 
 (b) Commercially Reasonable Efforts. The
Investor shall use its commercially reasonable efforts to take all actions, and do all things, reasonably necessary, proper or advisable on its part under this Agreement and applicable laws to cooperate with the Company and to consummate and make
effective the transactions contemplated by this Agreement, including executing, delivering and filing, as applicable, any additional ancillary instruments or agreements necessary to consummate the transactions contemplated by this Agreement and to
fully carry out the purposes of this Agreement and the transactions contemplated hereby and thereby, including using commercially reasonable efforts to: 
 (i) prepare and file as promptly as practicable all documentation to effect all necessary notices, reports and other filings and to obtain as promptly as practicable all consents, registrations,
approvals, permits and authorizations necessary or advisable to be obtained by Investor from any third party or governmental entity; 

  
 16 

 (ii) defend any lawsuits or other actions or proceedings to which the Investor has been
named a party, whether judicial or administrative, challenging this Agreement or any other agreement contemplated by this Agreement or the consummation of the transactions contemplated hereby and thereby, including seeking to have any stay or
temporary restraining order entered by any court or other governmental entity vacated or reversed; and 
 (iii) execute,
deliver and file, as applicable, any additional ancillary instruments, documents, or agreements necessary to consummate the transactions contemplated by this Agreement and the other Transaction Agreements and to fully carry out the purposes of this
Agreement and the transactions contemplated hereby and thereby. 
 (c) No Stabilization. In connection with the Rights
Offering, the Investor shall not take, directly or indirectly, any action designed to or that would reasonably be expected to cause or result in any stabilization or manipulation of the price of the shares of Common Stock in violation of
Regulation M under the Exchange Act. 
 (d) Public Disclosure. The Investor shall not, nor shall the Investor permit
any of its affiliates to, issue or cause the publication of any press release or other public announcement with respect to, or otherwise make any public statement concerning, the transactions contemplated by this Agreement, without the prior consent
(which consent shall not be unreasonably withheld, conditioned or delayed) of the Company; provided, that the Investor may, without any prior consent of the Company (but after prior consultation with the Company to the extent reasonably practicable
under the circumstances) issue or cause the publication of any press release or other public announcement to the extent required by applicable laws or that the Investor determines is necessary in order to file, update or amend any Schedule 13D (or
any amendment thereto) filed with the Commission by the Investor or any affiliate thereof. 
 7. Conditions to the
Obligations of the Parties. 
 (a) Conditions to the Investor’s Obligations under this Agreement. The
obligations of the Investor hereunder to purchase the Unsubscribed Shares from the Company and to consummate the other transactions contemplated hereby shall be subject to the satisfaction prior to the Closing of each of the following conditions
(which may be waived in whole or in part by the Investor in its sole discretion): 
 (i) Registration Statement
Effectiveness. The Rights Offering Registration Statement shall continue to be effective and no stop order shall have been entered by the Commission with respect thereto. 
 (ii) Rights Offering. The Rights Offering shall have been conducted in all material respects in accordance with this Agreement and shall have been consummated without the waiver of any condition
thereto; provided, however that in the event the Company determines not to distribute Rights Warrants to the holders of Common Stock Units (and no other consideration or adjustment is given or made with respect to the Common Stock Units), such
determination shall not be deemed a failure by the Company to satisfy the provisions of this Section 7(a)(ii) so long as the total number of Offered Shares, the Subscription Price and all other terms of the Rights Offering remain
unchanged. 

  
 17 

 (iii) Consents. All material governmental and third-party notifications, filings,
consents, waivers and approvals required for the consummation of the transactions contemplated by this Agreement shall have been made or received. 
 (iv) No Legal Impediment to Issuance. No action shall have been taken, no statute, rule, regulation, or order shall have been enacted, adopted, or issued by any federal, state, or foreign
governmental or regulatory authority, and no judgment, injunction, decree or order of any federal, state or foreign court shall have been issued that, in each case, prohibits the implementation of the Rights Offering, the issuance and sale of the
Unsubscribed Shares to the Investor, or the consummation of the transactions contemplated by this Agreement or materially impairs the benefit of implementation thereof, and no action or proceeding by or before any federal, state, or foreign
governmental or regulatory authority shall be pending or threatened wherein an adverse judgment, decree, or order would be reasonably likely to result in the prohibition of or material impairment of the benefits of the implementation of the Rights
Offering, the issuance and sale of the Unsubscribed Shares to the Investor, or the consummation of the transactions contemplated by this Agreement. 
 (v) Representations and Warranties. The representations and warranties of Company contained in this Agreement shall be true and correct (disregarding all qualifications and exceptions contained
therein relating to materiality, Material Adverse Effect or similar qualifications) as of the date hereof and as of the Closing Date, after giving effect to the transactions contemplated hereby with the same effect as if made on and as of the
Closing Date (except for representations and warranties made as of a specified date, which shall be true and correct only as of the specified date), except where the failure to be so true and correct has not had, and would not reasonably be expected
to have, a Material Adverse Effect, other than with respect to the representations and warranties in Sections 3(a) (first sentence only) through 3(d), which shall be true and correct in all respects. In determining whether there has
been any Material Adverse Effect for purposes of this Section 7(a)(v), the parties shall disregard (i) any adverse effect on the Delano South Beach Hotel in Miami, MB/CG Las Vegas LLC, MB/RS Las Vegas LLC, or TLG Acquisition LLC or
its subsidiaries and (ii) any events, changes, circumstances or occurrences described in Schedule B attached hereto or in Item 74 under “TLG or its subsidiaries” and Item 22 under “The Company or its
subsidiaries” of Section 3.4 of the Disclosure Schedule to the Exchange Agreement. 
 (vi) Covenants. The
Company shall have performed and complied in all material respects with all of its covenants and agreements contained in this Agreement and in any other Transaction Agreement required to be performed or complied with at or prior to the Closing.

 (vii) Nasdaq Stock Market. The Offered Shares, including the Unsubscribed Shares, shall have been approved for
listing on the Nasdaq Stock Market, subject to official notice of issuance. As of the Closing, trading in the shares of Common Stock shall not have been suspended by the Commission or the Nasdaq Stock Market or trading in securities generally on the
Nasdaq Stock Market shall not have been suspended or limited or minimum prices shall not have been established on the Nasdaq Stock Market. 

  
 18 

 (viii) HSR. If any filings are required to be made with respect to the HSR Act
relating to the acquisition of the Unsubscribed Shares as contemplated hereunder, such filings shall have been made and the applicable waiting period under the HSR Act shall have expired or been terminated thereunder with respect thereto.

 (ix) No MAE. Subsequent to the execution and delivery of this Agreement, there shall not have been any Material
Adverse Effect; provided, however, that in determining whether there has been any Material Adverse Effect for purposes of this Section 7(a)(ix), the parties shall disregard (i) any adverse effect on the Delano South Beach Hotel in
Miami, MB/CG Las Vegas LLC, MB/RS Las Vegas LLC, or TLG Acquisition LLC or its subsidiaries and (ii) any events, changes, circumstances or occurrences described in Schedule B attached hereto. 

(x) No Pill Trigger Event. No event or circumstance shall have occurred that gives any Holder or other person the right to
purchase any securities of the Company pursuant to, or shall otherwise trigger any comparable provisions under, the Stockholder Protection Rights Agreement. 
 (xi) Certificate. The Company shall have delivered to the Investor a certificate, dated the Closing Date and signed by a duly authorized officer of the Company, to the effect that the conditions
set forth in Sections 7(a)(v), 7(a)(vi), 7(a)(ix) and 7(a)(x) have been satisfied. 
 (xii) Exchange
Agreement and Delano Purchase Agreement. Each of the Exchange Agreement and the Delano Purchase Agreement (as defined in the Exchange Agreement) shall not have been terminated in accordance with its terms, all of the conditions to closing set
forth in each of the Exchange Agreement and the Delano Purchase Agreement shall have been satisfied in accordance with the terms thereof and the transactions contemplated by the Exchange Agreement and the Delano Purchase Agreement shall be
consummated concurrently with the transactions contemplated hereby. 
 (b) Conditions to the Company’s Obligations under
this Agreement. The obligations of the Company hereunder to sell the Unsubscribed Shares to the Investor and to consummate the other transactions contemplated hereby shall be subject to the satisfaction prior to the Closing of each of the
following conditions (which may be waived in whole or in part by the Company in its sole discretion): 
 (i) Consents.
All material governmental and third-party notifications, filings, consents, waivers and approvals required for the consummation of the transactions contemplated by this Agreement shall have been made or received. 

  
 19 

 (ii) No Legal Impediment to Issuance. No action shall have been taken, no statute,
rule, regulation, or order shall have been enacted, adopted, or issued by any federal, state, or foreign governmental or regulatory authority, and no judgment, injunction, decree or order of any federal, state or foreign court shall have been issued
that, in each case, prohibits the implementation of the Rights Offering, the issuance and sale of the Unsubscribed Shares to the Investor, or the consummation of the transactions contemplated by this Agreement or materially impairs the benefit of
implementation thereof, and no action or proceeding by or before any federal, state, or foreign governmental or regulatory authority shall be pending or threatened wherein an adverse judgment, decree, or order would be reasonably likely to result in
the prohibition of or material impairment of the benefits of the implementation of the Rights Offering, the issuance and sale of the Unsubscribed Shares to the Investor, or the consummation of the transactions contemplated by this Agreement.

 (iii) Representations and Warranties. The representations and warranties of the Investor (including any Investor
Assignee) contained in this Agreement shall be true and correct (disregarding all qualifications and exceptions contained therein relating to materiality on the Investor’s performance of its obligations or similar qualifications) as of the date
hereof and as of the Closing Date with the same effect as if made on the Closing Date (except for the representations and warranties made as of a specified date, which shall be true and correct only as such specified date), except where the failure
to be so true and correct has not prohibited or materially and adversely affected, and would not reasonably be expected to prohibit, or materially and adversely affect, the Investor’s performance of its obligations under this Agreement, other
than with respect to the Investor’s representations and warranties in all Sections other than Sections 4(a) through 4(c), which shall be true and correct in all respects. 

(iv) Covenants. The Investor shall have performed and complied in all material respects with all of its covenants and agreements
contained in this Agreement and in any other Transaction Agreement required to be performed or complied with at or prior to the Closing. 
 (v) Certificate. The Investor shall have delivered to the Company a certificate, dated the Closing Date and signed by a duly authorized representative of the Investor, to the effect that the
conditions set forth in Sections 7(b)(iii) and 7(b)(iv) have been satisfied. 
 (vi) Rights Offering. The
Rights Offering shall have been consummated in all material respects in accordance with this Agreement. 
 (vii) Exchange
Agreement and Delano Purchase Agreement. Each of the Exchange Agreement and the Delano Purchase Agreement shall not have been terminated in accordance with its terms, all of the conditions to closing set forth in each of the Exchange Agreement
and the Delano Purchase Agreement shall have been satisfied in accordance with the terms thereof and the transactions contemplated by the Exchange Agreement and the Delano Purchase Agreement shall be consummated concurrently with the transactions
contemplated hereby. 

  
 20 

 (c) Conditions to the Company’s Obligations to Complete the Rights Offering. The
obligation of the Company to consummate the Rights Offering shall be subject to the satisfaction prior to the Closing of each of the following conditions (which may not be waived, in whole or in part, without the prior written consent of the
Investor): 
 (i) Consents. All material governmental and third-party notifications, filings, consents, waivers and
approvals required for the consummation of the Rights Offering shall have been made or received. 
 (ii) No Legal Impediment
to Issuance. No action shall have been taken, no statute, rule, regulation, or order shall have been enacted, adopted, or issued by any federal, state, or foreign governmental or regulatory authority, and no judgment, injunction, decree or order
of any federal, state or foreign court shall have been issued that, in each case, prohibits the implementation of the Rights Offering and the issuance and sale of the Offered Shares or materially impairs the benefit of implementation thereof, and no
action or proceeding by or before any federal, state, or foreign governmental or regulatory authority shall be pending or threatened wherein an adverse judgment, decree, or order would be reasonably likely to result in the prohibition of or material
impairment of the benefits of the implementation of the Rights Offering and the issuance and sale of the Offered Shares. 

(iii) Registration Statement Effectiveness. The Rights Offering Registration Statement shall continue to be effective and no stop
order shall have been entered by the Commission with respect thereto. 
 (iv) Conditions under this Agreement. All
conditions set forth in Sections 7(a) and 7(b) (other than the conditions set forth in Sections 7(a)(ii) and 7(b)(vi)) shall have been satisfied (or waived, to the extent permitted thereby). 

8. Indemnification and Contribution. 
 (a) Whether or not the Rights Offering or the transactions contemplated hereby are consummated or this Agreement is terminated, the Company (in such capacity, the “Indemnifying Party”)
shall indemnify, defend and hold harmless the Investor, its Affiliates (as defined in Rule 12b-2 under the Exchange Act) (other than the Company), and its and their respective officers, directors, members, partners, managers, employees, agents
and controlling persons (each, an “Indemnified Person”) from and against any and all losses, claims, suits, proceedings, damages, liabilities, settlement payments, awards, judgments, fines, obligations, deficiencies of any kind,
costs, and reasonable expenses (collectively, “Losses”), joint or several, that any Indemnified Party may incur, suffer or to which any Indemnified Person may become subject resulting from or arising out of or in connection with
(x) the inaccuracy or breach of any representation or warranty made by the Company in this Agreement or as a result of or in connection with any breach or failure by the Company to perform any of its covenants or agreements contained in this
Agreement, and/or (y) any claim, challenge, litigation, investigation or proceeding instituted by a third party (“Proceedings”) with respect to the Rights Offering, this Agreement or the other Transaction Documents, the Rights
Offering Registration Statement, any Preliminary Rights Offering Prospectus, the 

  
 21 

 
Rights Offering Prospectus, any Issuer Free Writing Prospectus, the Investment Decision Package, any amendment or supplement thereto or omission therefrom, or the transactions contemplated by any
of the foregoing, and shall reimburse the Indemnified Persons for any reasonable legal or other reasonable out-of-pocket expenses incurred in connection with investigating, responding to or defending any of the foregoing; provided that the foregoing
indemnification shall not apply to Losses solely to the extent that they directly resulted from (i) any breach by the Indemnified Person of this Agreement, (ii) gross negligence or willful misconduct on the part of the Indemnified Person,
or (iii) untrue statements or omissions in the Rights Offering Registration Statement, any Preliminary Rights Offering Prospectus, the Rights Offering Prospectus, any Issuer Free Writing Prospectus, or any amendment or supplement thereto made
in reliance upon or in conformity with written information relating to the Indemnified Person furnished to the Company in writing by or on behalf of the Indemnified Person expressly for use in the Rights Offering Registration Statement, any
Preliminary Rights Offering Prospectus, the Rights Offering Prospectus, any Issuer Free Writing Prospectus, or any amendment or supplement thereto. If for any reason the foregoing indemnification is unavailable to any Indemnified Person (except as
set forth in the proviso to the immediately preceding section) or insufficient to hold it harmless, then the Indemnifying Party shall contribute to the amount paid or payable by the Indemnified Person as a result of such Losses in such proportion as
is appropriate to reflect not only the relative benefits received by the Indemnifying Party on the one hand and the Indemnified Person on the other hand but also the relative fault of the Indemnifying Party on the one hand and the Indemnified Person
on the other hand as well as any relevant equitable considerations. The indemnity, reimbursement and contribution obligations of the Indemnifying Party under this Section 8 shall be in addition to any liability that the Indemnifying
Party may otherwise have to an Indemnified Person and shall bind and inure to the benefit of any successors, assigns, heirs and personal representatives of the Indemnifying Party and any Indemnified Person. For purposes of
Section 8(a)(x), in determining whether there has been any inaccuracy or breach of a representation or warranty, the parties hereto shall disregard in their entirety and giving no effect to any “materiality,” “Material
Adverse Effect,” or similar qualifications to the same extent as such terms are disregarded pursuant to Sections 7(a)(v) and 7(b)(iii). 
 (b) Promptly after receipt by an Indemnified Person of notice of the commencement of any Proceedings with respect to which the Indemnified Person may be entitled to indemnification hereunder, such
Indemnified Person shall, if a claim is to be made hereunder against the Indemnifying Party, in respect thereof, notify the Indemnifying Party in writing of the commencement thereof; provided that (i) the omission so to notify the Indemnifying
Party shall not relieve the Indemnifying Party from any liability that it may have hereunder except to the extent it has been prejudiced by such failure and then only to the extent of such prejudice, and (ii) the omission so to notify the
Indemnifying Party shall not relieve it from any liability that it may have to an Indemnified Person otherwise than on account of this Section 8. In case any such Proceedings are brought against any Indemnified Person and it notifies the
Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled to participate therein, and, to the extent that it may elect by written notice delivered to such Indemnified Person, to assume the defense thereof; provided
that if the defendants in any such Proceedings include both such Indemnified Person and the Indemnifying Party and such Indemnified Person shall have concluded that there may be legal defenses available to it that are different from or additional to
those available to the Indemnifying Party, such Indemnified Person shall have the right to select separate counsel (including one local counsel per jurisdiction) at the Indemnifying Party’s expense, to assert such legal defenses and to
otherwise participate in the defense of such Proceedings on behalf of such Indemnified Person. Upon receipt of notice from the Indemnifying Party to such Indemnified Person of its election so to assume the defense of such Proceedings and approval by
such Indemnified Person of counsel, the Indemnifying Party shall not be liable to such Indemnified Person for expenses incurred by such Indemnified Person in connection with the defense thereof (other than reasonable costs of investigation) unless
(i) such Indemnified Person shall have employed separate counsel (including one local counsel per jurisdiction) in connection with the assertion of legal defenses in accordance with the proviso to the preceding sentence, (ii) the
Indemnifying Party shall not have employed counsel to represent such Indemnified Person within a reasonable time after notice of commencement of the Proceedings, or (iii) the Indemnifying Party shall have authorized in writing the employment of
counsel for such Indemnified Person. 

  
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 (c) The Indemnifying Party shall not be liable for any settlement or compromise of, or
consent to the entry of any judgment with respect to, any Proceedings effected without its written consent (which consent shall not be unreasonably withheld, delayed or conditioned). If any settlement or compromise of, or consent to the entry of any
judgment with respect to, any Proceeding is consummated with the written consent of the Indemnifying Party or if there is a final judgment for the plaintiff in any such Proceedings, the Indemnifying Party agrees to indemnify and hold harmless each
Indemnified Person from and against any and all Losses by reason of such settlement or judgment in accordance with, and subject to the limitations of, the provisions of this Section 8. The Indemnifying Party shall not, without the prior
written consent of an Indemnified Person (which consent shall not be unreasonably withheld, delayed or conditioned), effect any settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened
Proceedings in respect of which indemnity has been sought hereunder by such Indemnified Person unless (i) such settlement, compromise or judgment includes an unconditional release of such Indemnified Person in form and substance satisfactory to
such Indemnified Person from all liability on the claims that are the subject matter of such Proceedings and (ii) such settlement, compromise or judgment does not include any statement as to or any admission of fault, culpability or a failure
to act by or on behalf of any Indemnified Person, or any obligation of or restriction on any Indemnified Person. 
 9.
Survival of Representations and Warranties. The representations and warranties made by the Company in Article 3 and the representations and warranties made by the Investor in Article 4 shall survive the execution and delivery of this
Agreement and the Closing until the eighteen month anniversary of the Closing Date (or until final resolution of any claim or actions arising from the breach of any such representation and warranty, if written notice of such breach (including, in
reasonable detail, the basis for the claimed breach) was provided prior to the end of such survival period), and the covenants of the parties herein shall survive in accordance with their specific terms. 

  
 23 

 10. Termination. 

(a) This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing:

 (i) by mutual written consent of the Company and the Investor; 

(ii) by either the Company or the Investor if the Closing shall not have occurred by June 15, 2013 (the “Outside
Date”); provided, that the right to terminate this Agreement under this Section 10(a)(ii) shall not be available to any party whose failure to comply with any provision of this Agreement has been the cause of, or resulted in,
the failure of the Closing to occur on or prior to such date; provided, however, that the Outside Date shall be extended day-by-day for each day during which any party shall be subject to a nonfinal order, decree, ruling or action
restraining, enjoining or otherwise prohibiting the consummation of any of the transactions contemplated by this Agreement, provided further, however, that the Outside Date shall not be extended past July 15, 2013. 

(iii) by the Company, 
 (A) if there has been a breach of any covenant or a breach of any representation or warranty of the Investor, which breach would cause the failure of any condition precedent set forth in
Section 7(b), provided that any such breach of a covenant or representation or warranty is (x) not cured by the Investor within three Business Days after the Company’s delivery of written notice of such breach to the Investor
or (y) not capable of cure on or prior to the Outside Date; 
 (B) upon the occurrence of any event that
results in a failure to satisfy any of the conditions set forth in Section 7(b), which failure is not capable of cure on or prior to the Outside Date; provided that all determinations made for the Company prior to the Closing with
respect to Section 10(a)(iii)(A) and this Section 10(a)(iii)(B) shall be made by the Special Committee; or 
 (C) the Special Committee, in the exercise of its fiduciary duties, and in its business judgment, recommends to the Board that the Company consummate an alternative transaction that in the judgment of the
Special Committee would be more advantageous for the Company than the Rights Offering, and the Board approves such recommendation. 
 (iv) by the Investor, 
 (A) if there has been a breach of any
covenant or a breach of any representation or warranty of the Company, which breach would cause the failure of any condition precedent set forth in Section 7(a), provided that any such breach of a covenant or representation or warranty
is (x) not cured by the Company within three Business Days after the Investor’s delivery of written notice of such breach to the Company or (y) not capable of cure on or prior to the Outside Date; or 

  
 24 

 (B) upon the occurrence of any event that results in a failure to satisfy
any of the conditions set forth in Section 7(a), which failure is not capable of cure on or prior to the Outside Date; or 
 (C) the Special Committee, in the exercise of its fiduciary duties, and in its business judgment, recommends to the Board that the Company consummate an alternative transaction that in the judgment of the
Special Committee would be more advantageous for the Company than the Rights Offering, and the Board approves such recommendation; or 
 (b) Upon termination of this Agreement under this Section 10, all rights and obligations of the parties under this Agreement shall terminate without any liability of any party to any other
party except that (i) any provision of this Agreement that by its terms survives such termination shall so survive, (ii) no party shall be released from liability for any breach of this Agreement, (iii) in the event the Company
terminates this Agreement pursuant to Section 10(a)(iii)(A), the Company shall be entitled to the remedies set forth in Section 8.3 of the Exchange Agreement, (iv) in the event the Company terminates this Agreement pursuant to
Section 10(a)(iii)(C) or the Investor terminates this Agreement pursuant to Section 10(a)(iv)(C), the Investor shall be entitled to the remedies set forth in Section 8.4 of the Exchange Agreement, (v) for the
avoidance of doubt, any liability or obligation of the Company, Investor or the YAAF Funds, or their respective affiliates, under any agreement other than this Agreement shall remain unchanged and shall be governed by the provisions of such other
agreement, and (vi) without limitation to clause (i) above, the covenants and agreements made by the parties hereto in Sections 2(g), Sections 8 through 16, and Sections 18 shall survive
indefinitely in accordance with their respective terms. Nothing in this Agreement shall be interpreted to affect the right of any party to specific enforcement in accordance with Section 10.12 of the Exchange Agreement. 

11. Notices. All notices and other communications in connection with this Agreement shall be in writing and shall be deemed given
(and shall be deemed to have been duly given upon receipt) if delivered personally, sent via facsimile transmission (with confirmation), mailed by registered or certified mail (return receipt requested), or delivered by an express courier (with
confirmation) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice): 
 (a) If to the Company: 
 Morgans Hotel Group Co. 

475 10th Avenue, 11th Floor 
 New York, NY 10018 
 Facsimile: 212-277-4172 

Electronic mail: david.smail@morganshotelgroup.com 
 Attention: David W. Smail 

  
 25 

 with a copy (which shall not constitute notice) to: 

Hogan Lovells US LLP 
 Columbia Square 
 555 Thirteenth Street, NW 

Washington, D.C. 20004 
 Facsimile: 202-637-5910 
 Electronic mail: bruce.gilchrist@hoganlovells.com

 Attention: Bruce W. Gilchrist 
 and: 
 (b) If to the Investor: 

Yucaipa Aggregator Holdings, LLC 
 c/o Yucaipa American Alliance Fund II, LLC 
 9130 W. Sunset Boulevard 

Los Angeles, California 90069 
 Attention: Robert P. Bermingham 
 Fax: (310) 789-7201 

with a copy (which shall not constitute notice) to: 
 Munger, Tolles & Olson LLP 
 355 South Grand Avenue 

35th Floor 
 Los Angeles, California 90071 
 Attention: Judith T. Kitano 

Fax: (213) 683-4052 
 12. Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the rights or obligations under this Agreement shall be assigned by any of the parties (whether by operation of law or
otherwise) without the prior written consent of the other parties, which consent shall not be unreasonably withheld, conditioned or delayed by the Company; provided that the Company’s failure to consent to an assignment by the Investor to a
Company Competitor or Unsuitable Person, as determined in the Company’s reasonable judgment, shall not be deemed to be unreasonable; and provided further that this Agreement and the rights or obligations of the Investor under this Agreement may
be assigned, in whole or in part, by the Investor, subject to applicable laws, to one or more affiliates of the Investor (an “Investor Assignee”) without the Company’s prior consent (but with written notice provided within two
Business Days after such assignment) so long as such Investor Assignee (i) is not a Company Competitor, (ii) is not an Unsuitable Person and (iii) is a wholly-owned subsidiary of the Investor or any YAAF Fund, which subsidiary is
formed as a special purpose or 

  
 26 

 
similar entity the sole purpose of which is to perform the transactions contemplated by the Transaction Agreements and to exercise and hold the rights and obligations thereunder. Notwithstanding
the foregoing or any other provisions herein, no such assignment shall relieve the assigning party of its obligations hereunder if such assignee fails to perform such obligations. Except as provided in Section 8 with respect to the
Indemnified Persons, this Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any person other than the parties hereto any rights or remedies under this Agreement and nothing
set forth in this Agreement shall confer upon or give to, or be construed to confer upon or give to, any other Person (including, without limitation, any affiliate of the Company or any of its respective members, shareholders, partners, directors,
employees, officers or creditors or any successor thereto or assign thereof, or any third party claiming by or through any of the foregoing) any benefits, rights or remedies under or by reason of, or any rights to enforce or cause the Company to
enforce, the obligations of the Investor or its permitted assignees hereunder or any other provisions of this Agreement. Any Indemnified Persons shall be entitled to enforce and rely on the provisions listed in the immediately preceding sentence as
if they were a party to this Agreement. For purposes of this Section 12, the term “Company Competitor” means any person engaged directly or indirectly through a direct or indirect subsidiary in the business of operating,
licensing, franchising or managing a hotel, hotel brand or lodging system of hotels, and the term “Unsuitable Person” has the meaning set forth in the Delano Hotel Management Agreement (as defined in the Exchange Agreement).

 13. Prior Negotiations; Entire Agreement. This Agreement, the Exchange Agreement and the documents and instruments
attached as exhibits to and referred to in this Agreement and the Exchange Agreement constitute the entire agreement of the parties with respect to the Rights Offering and supersede all prior agreements, arrangements or understandings, whether
written or oral, between the parties with respect to the transactions contemplated hereby. 
 14. Consent to Jurisdiction;
Governing Law; Waiver of Jury Trial 
 (a) Except for such matters as the parties have agreed in the Exchange Agreement
shall be subject to the exclusive jurisdiction of the state courts of Delaware located in Wilmington, Delaware, all actions and proceedings arising out of or relating to this Agreement and the Transaction Agreements shall be heard and determined
exclusively in any New York state or federal court sitting in the Borough of Manhattan of The City of New York, and the parties hereto hereby (a) submit to the exclusive jurisdiction of any state or federal court sitting in the Borough of
Manhattan of The City of New York for the purpose of any action arising out of or relating to this Agreement or the Transaction Agreements brought by any party hereto, and (b) irrevocably waive, and agree not to assert by way of motion,
defense, or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the action or proceeding is brought in an
inconvenient forum, that the venue of the action is improper, or that this Agreement or the Transaction Agreements or the transactions contemplated by this Agreement or the Transaction Agreements may not be enforced in or by any of the above-named
courts. 

  
 27 

 (b) This Agreement shall be governed by and construed in accordance with the laws of the
State of New York. 
 (c) EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO
A TRIAL BY JURY IN RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY TRANSACTION AGREEMENTS OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH PARTY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTION AGREEMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 14(C). 

15. Counterparts. This Agreement may be executed in any number of counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other party (including via facsimile or other electronic transmission), it being understood that each party need not sign the same
counterpart. 
 16. Waivers and Amendments. This Agreement may be amended, modified, superseded, cancelled, renewed or
extended, and the terms and conditions of this Agreement may be waived, only by a written instrument signed by all the parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any party in exercising any right,
power or privilege pursuant to this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege pursuant to this Agreement, nor shall any single or partial exercise of any right, power
or privilege pursuant to this Agreement, preclude any other or further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. The rights and remedies provided pursuant to this Agreement are cumulative and
are not exclusive of any rights or remedies which any party otherwise may have at law or in equity. All determinations made for the Company prior to the Closing with respect to this Section 16 shall be made by the Special Committee.

  

  
 28 

 17. Adjustment to Shares. Prior to the consummation of the transactions at the
Closing, and except as may be required to implement the transactions contemplated by this Agreement or the provisions of the Stockholder Protection Rights Agreement in effect on the date hereof, the Company shall not, without the prior written
consent of the Investor, effect a reclassification, stock split (including a reverse stock split), stock dividend or distribution, recapitalization, merger, issuer tender or exchange offer, or other similar transaction with respect to any shares of
its capital stock. 
 18. Headings. The headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement. 
 [Signature page follows.] 

  
 29 

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

			
	MORGANS HOTEL GROUP CO.
		
	By:	 	 /s/ Richard Szymanski

		 	Name: Richard Szymanski
		 	Title: Chief Financial Officer

 [Signature Page – Investment Agreement] 

 
			
	YUCAIPA AGGREGATOR HOLDINGS, LLC
		
	By:	 	 /s/ Robert P. Bermingham

		 	Name: Robert P. Bermingham
		 	Title: Vice President
	
	YUCAIPA AMERICAN ALLIANCE FUND II, L.P.
	
	 By: Yucaipa American Alliance Fund II, LLC

Its: General Partner

		
	By:	 	 /s/ Robert P. Bermingham

		 	Name: Robert P. Bermingham
		 	Title: Vice President
	
	YUCAIPA AMERICAN ALLIANCE (PARALLEL) FUND II, L.P.
	
	 By: Yucaipa American Alliance Fund II, LLC

Its: General Partner

		
	 By:
	 	 /s/ Robert P. Bermingham

		 	Name: Robert P. Bermingham
		 	Title: Vice President

 [Signature Page – Investment Agreement] 

 ANNEX A 
 Form of Registration Rights Agreement 

 Execution Version 

 
  

 
 REGISTRATION RIGHTS AGREEMENT

 by and between 
 MORGANS HOTEL GROUP CO. 
 and 

YUCAIPA AMERICAN ALLIANCE FUND II, L.P., 
 YUCAIPA AMERICAN ALLIANCE (PARALLEL) FUND II, L.P., 
 and 

YUCAIPA AGGREGATOR HOLDINGS, LLC 
  

 
 Dated as of
March 30, 2013 
  
  

 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 1. Certain Definitions
	  	 	1	  
		
	 2. Demand Registrations
	  	 	3	  
	 (a) Right to Request Registration
	  	 	3	  
	 (b) Number of Demand Registrations
	  	 	3	  
	 (c) Participation Rights of Holders
	  	 	3	  
	 (d) Priority on Demand Registrations
	  	 	4	  
	 (e) Restrictions on Demand Registrations
	  	 	4	  
	 (f) Selection of Underwriters
	  	 	5	  
	 (g) Other Registration Rights
	  	 	5	  
	 (h) Effective Period of Demand Registrations
	  	 	5	  
		
	 3. Piggyback Registrations
	  	 	5	  
	 (a) Right to Piggyback
	  	 	5	  
	 (b) Priority on Primary Piggyback Registrations
	  	 	6	  
	 (c) Priority on Secondary Piggyback Registrations
	  	 	6	  
	 (d) Selection of Underwriters
	  	 	6	  
	 (e) Other Registration Rights
	  	 	6	  
		
	 4. S-3 Registrations
	  	 	7	  
	 (a) Right to Request Registration
	  	 	7	  
	 (b) Priority on Shelf Takedowns
	  	 	7	  
	 (c) Selection of Underwriters
	  	 	8	  
	 (d) Other Registration Rights
	  	 	8	  
		
	 5. Holdback Agreements
	  	 	8	  
		
	 6. Registration Procedures
	  	 	9	  
		
	 7. Registration Expenses
	  	 	13	  
		
	 8. Indemnification
	  	 	14	  
		
	 9. Participation in Underwritten Registrations
	  	 	15	  
		
	 10. Rule 144
	  	 	16	  

  
 i 

					
		
	 11. Miscellaneous
	  	 	16	  
	 (a) Notices
	  	 	16	  
	 (b) No Waivers
	  	 	17	  
	 (c) Expenses
	  	 	17	  
	 (d) Successors and Assigns
	  	 	17	  
	 (e) Governing Law
	  	 	18	  
	 (f) Jurisdiction
	  	 	18	  
	 (g) Waiver of Jury Trial
	  	 	18	  
	 (h) Counterparts; Effectiveness
	  	 	18	  
	 (i) Entire Agreement
	  	 	18	  
	 (j) Captions
	  	 	18	  
	 (k) Severability
	  	 	19	  
	 (l) Amendments
	  	 	19	  
	 (m) Equitable Relief
	  	 	19	  
	 (n) Construction
	  	 	19	  

  
 ii 

 THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made and entered
into as of March 30, 2013, by and between Morgans Hotel Group Co., a Delaware corporation (the “Company”), and Yucaipa American Alliance Fund II, L.P., a Delaware limited partnership (“YAAF II”), Yucaipa
American Alliance (Parallel) Fund II, L.P., a Delaware limited partnership (“YAAF II-P”, and together with YAAF II, the “YAAF Funds”) and Yucaipa Aggregator Holdings, LLC, a Delaware limited liability company (the
“Investor”, and together with the YAAF Funds, the “Securityholders”). 
 Unless otherwise
specified herein, capitalized terms used herein shall have the meanings assigned to such terms in the Investment Agreement (the “Investment Agreement”), dated as of the date hereof, by and among the Company and the Investor.

 In consideration of the mutual covenants and agreements herein contained and other good and valid consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows: 
 1. Certain
Definitions. 
 In addition to the terms defined elsewhere in this Agreement, the following terms shall have the following
meanings: 
 “Affiliate” of any Person means any other Person which directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) as used with
respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

“Agreement” means this Registration Rights Agreement, including all amendments, modifications and supplements and any
exhibits or schedules to any of the foregoing, and shall refer to this Registration Rights Agreement as the same may be in effect at the time such reference becomes operative. 
 “Blackout Period” has the meaning set forth in Section 6(f) hereof. 
 “Commencement Date” means the Closing Date as such term is defined in the Investment Agreement. 
 “Company” has the meaning set forth in the introductory paragraph. 
 “Delay Period” has the meaning set forth in Section 2(d) hereof. 
 “Demand Registration” has the meaning set forth in Section 2(a) hereof. 
 “Demand Registration Statement” has the meaning set forth in Section 2(a) hereof. 

 “Existing Shelf” has the meaning set forth in Section 4(a) hereof.

 “Form S-3” means a registration statement on Form S-3 under the Securities Act or such successor form
thereto permitting registration of securities under the Securities Act. 
 “Holder” means each Securityholder
to the extent that such Securityholder (or any wholly-owned subsidiary thereof) is the holder of record of Registrable Common Stock. For purposes of this Agreement, the Company may deem and treat the registered holder of Registrable Common Stock as
the absolute owner thereof, and the Company shall not be affected by any notice to the contrary. 
 “NASDAQ”
means The Nasdaq Stock Market LLC. 
 “Person” means any individual, sole proprietorship, partnership, limited
liability company, joint venture, trust, incorporated organization, association, corporation, institution, public benefit corporation, governmental entity or any other entity. 
 “Piggyback Registration” has the meaning set forth in Section 3(a) hereof. 
 “Prospectus” means the prospectus or prospectuses included in any Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering
of any portion of the Registrable Common Stock covered by such Registration Statement and by all other amendments and supplements to such prospectus or prospectuses, including post-effective amendments and all material incorporated by reference in
such prospectus or prospectuses. 
 “Registrable Common Stock” means (a) any shares of Common Stock issued
and sold to the Investor pursuant to the Investment Agreement and held of record by a Holder, (b) any securities of the Company issued or issuable with respect to such shares of Common Stock by way of stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise, and (c) any other shares of Common Stock held of record by a Securityholder (or any wholly-owned subsidiary thereof) provided
that such Securityholder is not in breach of its standstill obligations under Section 5.10 of the Exchange Agreement. 

“Registration Expenses” has the meaning set forth in Section 7(a) hereof. 

“Registration Statement” means any registration statement of the Company which covers any of the Registrable Common
Stock pursuant to the provisions of this Agreement, including the Prospectus, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all materials incorporated by reference in such
Registration Statement. 
 “S-3 Registration” has the meaning set forth in Section 4 hereof. 

“Securityholder” has the meaning set forth in the introductory paragraph hereof. 

  
 2 

 “Suspension Notice” has the meaning set forth in Section 6(f) hereof.

 “Termination Date” means the date upon which all the Registrable Common Stock may be sold in any three-month
period without registration under the Securities Act. 
 “underwritten offering” means a registered offering in
which securities of the Company are sold to underwriters for reoffering to the public. 
 2. Demand Registrations.

 (a) Right to Request Registration. Subject to the provisions hereof, beginning on the applicable Commencement
Date, one or more Holders may at any time request registration for resale under the Securities Act of all or part of the Registrable Common Stock separate from an S-3 Registration (a “Demand Registration”); provided, that
(based on the closing sale price of the Common Stock as reported on NASDAQ on the date of the Company’s receipt of such request) the number of shares of Registrable Common Stock included in the Demand Registration would yield gross proceeds to
the Holder(s) requesting such Demand Registration of at least $30,000,000 unless the aggregate value (based on such closing sale price) of the Registrable Common Stock held by the Holder(s) requesting such Demand Registration is less than
$30,000,000 but greater than $15,000,000, in which case the Demand Registration shall be for all of the Registrable Common Stock of the Holder(s) requesting such Demand Registration. Subject to Section 2(d) hereof, the Company shall use its
reasonable best efforts (i) to file a Registration Statement (a “Demand Registration Statement”) registering for resale such number of shares of Registrable Common Stock as requested to be so registered within 30 days of a
Holder’s request therefor and (ii) to cause such Demand Registration Statement to be declared effective by the SEC as soon as practicable thereafter. 
 (b) Number of Demand Registrations. Subject to the limitations of Section 2(a) hereof, the Holders shall be entitled to request an aggregate of three Demand Registrations. A Registration
Statement shall not count as a permitted Demand Registration unless and until it has become effective and the Holder(s) requesting such Demand Registration are able to register and sell at least 50% of the Registrable Common Stock requested to be
included in such registration. 
 (c) Participation Rights of Holders. Whenever the Company shall be requested by one or
more Holders to effect a Demand Registration pursuant to Section 2(a) hereof, the Company shall promptly (but not later than 5 days after receiving such request) give written notice of such requested Demand Registration to each other Holder
that has provided contact information to the Company prior thereto. Such notice shall inform Holders that they have 10 days to notify the Company in writing as provided in Section 11(a) hereof that they wish to participate in such proposed
Demand Registration. The Company shall include in such Demand Registration the shares of Common Stock of any Holder who irrevocably notifies the Company on or prior to such 10th day that the Holder has elected to include such shares of Common Stock
in such Demand Registration. 

  
 3 

 (d) Priority on Demand Registrations. The Company may include Common Stock other than
Registrable Common Stock in a Demand Registration on the terms provided below, and, if such Demand Registration is an underwritten offering, only with the consent of the managing underwriters of such offering. If the managing underwriters of the
requested Demand Registration advise the Company and the Holder(s) requesting such Demand Registration that in their opinion the number of shares of Common Stock proposed to be included in the Demand Registration exceeds the number of shares of
Common Stock which can be sold in such underwritten offering and/or the number of shares of Common Stock proposed to be included in such registration would adversely affect the price per share of the Registrable Common Stock proposed to be sold in
such underwritten offering, the Company shall include in such Demand Registration (i) first, the number of shares of Common Stock that the Holder(s) requesting such Demand Registration propose to sell, and (ii) second, the number of shares
of Common Stock proposed to be included therein by any other Persons (including shares of Common Stock to be sold for the account of the Company and/or other holders of Common Stock) allocated among such Persons in such manner as they may agree.

 (e) Restrictions on Demand Registrations. The Company shall not be obligated to effect any Demand Registration on
behalf of a Holder within six months after the effective date of any Demand Registration, Piggyback Registration wherein such Holder was permitted to register, and actually sold, at least 50% of the shares of Registrable Common Stock requested to be
included therein or S-3 Registration. The Company may (i) withdraw a Registration Statement previously filed (but not declared effective) pursuant to a Demand Registration or S-3 Registration or postpone for up to 90 days the filing of a
Registration Statement for a Demand Registration or S-3 Registration if, based on the good faith judgment of the Company, such postponement or withdrawal would avoid premature disclosure of a matter the Company has determined would not be in the
best interest of the Company to be disclosed at such time or (ii) postpone the filing of a Demand Registration or S-3 Registration in the event the Company shall be required to prepare (A) audited financial statements as of a date other
than its fiscal year end (unless the Holder(s) requesting such registration agree to pay the reasonable expenses of such an audit) or (B) pro forma financial statements that are required to be included in such Registration Statement;
provided, however, that in no event shall the Company withdraw a Registration Statement under clause (i) after such Registration Statement has been declared effective; and provided further, however, that in
any of the events described in clause (i) or (ii) above, the Holder(s) requesting such Demand Registration shall be entitled to withdraw such request and, if such request is withdrawn, such Demand Registration shall not count as one of the
permitted Demand Registrations. The Company shall provide written notice to the Holder(s) requesting a Demand Registration of (x) any postponement or withdrawal of the filing or effectiveness of a Registration Statement pursuant to this
Section 2(e), (y) the Company’s decision to file or seek effectiveness of such Registration Statement following such withdrawal or postponement and (z) the effectiveness of such Registration Statement, which notice, if it relates
to clause (x) above, shall include the reasons therefor if the Holder(s) requesting such Demand Registration shall have previously executed a confidentiality agreement satisfactory to the Company in respect thereof. The Company may defer the
filing of a particular Registration Statement pursuant to this Section 2(e) only once during any six-month period. The period during which filing or effectiveness is so postponed hereunder is referred to as a “Delay Period.”

  
 4 

 (f) Selection of Underwriters. If any of the Registrable Common Stock covered by a
Demand Registration is to be sold in an underwritten offering, the Company will select one joint bookrunning managing underwriter from the list of investment banks set forth on Schedule I and the Holder(s) participating in such Demand Registration
will select the other joint bookrunning managing underwriter from the list of investment banks set forth on Schedule I. The list of investment banks on Schedule I may be amended from time to time by mutual agreement of the Holders and the Company.
Any additional underwriters shall be selected by mutual agreement of the Holders, on the one hand, and the Company, on the other hand. 
 (g) Other Registration Rights. The Company shall not grant to any Person the right to request the Company (i) to register any shares of Common Stock in a Demand Registration that includes
Registrable Common Stock unless such rights are consistent with the provisions hereof, or (ii) to register any securities of the Company (other than shares of Common Stock) in a Demand Registration that includes Registrable Common Stock.

 (h) Effective Period of Demand Registrations. Upon the date of effectiveness of any Demand Registration for an
underwritten offering contemplated to be consummated at the time of effectiveness of the Demand Registration, the Company shall use its reasonable best efforts to keep such Demand Registration Statement effective for a period equal to 15 business
days from the date of commencement of the sale of Registrable Common Stock in such underwritten offering or such shorter period which shall terminate when all of the Registrable Common Stock covered by such Demand Registration has been sold pursuant
to such Demand Registration. If the Company shall withdraw any Demand Registration pursuant to Section 2(d) hereof or issue a Suspension Notice pursuant to Section 6(f) hereof within such 15 business day period and before all of the
Registrable Common Stock covered by such Demand Registration has been sold pursuant thereto, the Holder(s) requesting such Demand Registration shall be entitled to a replacement Demand Registration which shall be subject to all of the provisions of
this Agreement. 
 3. Piggyback Registrations. 
 (a) Right to Piggyback. Whenever the Company proposes to register any of its Common Stock under the Securities Act (other than a registration statement on Form S-8 or on Form S-4 or any similar
successor forms thereto), whether for its own account or for the account of one or more stockholders of the Company and the form of registration statement to be used may be used for any registration of Registrable Common Stock (a “Piggyback
Registration”), the Company shall give prompt written notice (in any event no later than 10 days prior to the filing of such registration statement) to the Holders of its intention to effect such a registration and, subject to
Section 3(b) hereof, shall include in such registration statement all Registrable Common Stock with respect to which the Company has received written requests for inclusion therein from the Holders within 8 days after the Holders’ receipt
of the Company’s notice. The Company may postpone or withdraw the filing or the effectiveness of a Piggyback Registration at any time in its sole discretion. A Piggyback Registration shall not be considered a Demand Registration for purposes of
Section 2 of this Agreement or an S-3 Registration for purposes of Section 4 of this Agreement. 

  
 5 

 (b) Priority on Primary Piggyback Registrations. If a Piggyback Registration is
initiated as a primary underwritten offering on behalf of the Company and the managing underwriters advise the Company and the Holders (if any Holders have elected to include Registrable Common Stock in such Piggyback Registration) that in their
opinion the number of shares of Common Stock proposed to be included in such registration exceeds the number of shares of Common Stock which can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any
such registration would adversely affect the price per share of the Common Stock to be sold in such offering, the Company shall include in such registration (i) first, the number of shares of Common Stock that the Company proposes to sell, and
(ii) second, the number of shares of Common Stock requested to be included therein by holders of Common Stock, including the Holders (if any Holders have elected to include Registrable Common Stock in such Piggyback Registration), pro
rata among all such holders on the basis of the number of shares of Common Stock requested to be included therein by all such holders or as such holders may otherwise agree. 

(c) Priority on Secondary Piggyback Registrations. If a Piggyback Registration is initiated as an underwritten offering on behalf
of a holder of Common Stock other than Registrable Common Stock, and the managing underwriters advise the Company that in their opinion the number of shares of Common Stock proposed to be included in such registration exceeds the number of shares of
Common Stock that can be sold in such offering and/or that the number of shares of Common Stock proposed to be included in any such registration would adversely affect the price per share of the Common Stock to be sold in such offering, then the
Company shall include in such registration (i) first, the number of shares of Common Stock requested to be included therein by the holder(s) requesting such registration, (ii) second, the number of shares of Common Stock requested to be
included therein by other holders of Common Stock, including the Holders (if any Holders have elected to include Registrable Common Stock in such Piggyback Registration), pro rata among such holders on the basis of the number of shares of
Common Stock requested to be included therein by such holders or as such holders may otherwise agree, and (iii) third, the number of shares of Common Stock that the Company proposes to sell. 

(d) Selection of Underwriters . If any Piggyback Registration is initiated as a primary underwritten offering, the Company shall
have the right to select the managing underwriter or underwriters to administer any such offering. 
 (e) Other Registration
Rights. The Company shall not grant to any Person the right to request the Company (i) to register any shares of Common Stock in a Piggyback Registration that includes Registrable Common Stock unless such rights are consistent with the
provisions hereof, or (ii) to register any securities of the Company (other than shares of Common Stock) in a Piggyback Registration that includes Registrable Common Stock. 

  
 6 

 4. S-3 Registrations. 

(a) Right to Request Registration. At any time that the Company is eligible to use Form S-3 or any successor thereto, and the
Company does not have an effective Shelf Registration Statement on Form S-3 on file with the SEC covering the Registrable Common Stock (an “Existing Shelf”), then each Holder shall be entitled to request that the Company file a
Registration Statement on Form S-3 or any successor thereto for a public offering of all or any portion of the Registrable Common Stock pursuant to Rule 415 promulgated under the Securities Act or otherwise. Upon such request, the Company shall use
its reasonable best efforts (i) to file a Registration Statement covering the number of shares of Registrable Common Stock specified in such request under the Securities Act on Form S-3 or any successor thereto (together with the Existing
Shelf, an “S-3 Registration”) for public sale in accordance with the method of disposition specified in such request within 30 days of the such Holder’s request therefor and (ii) to cause such S-3 Registration to be
declared effective by the SEC as soon as reasonably practicable thereafter. A Holder shall be entitled, upon not less than 24 hours (given on a business day and effective at the same time on the next business day) prior written notice to the Company
in the manner provided below, to sell such Registrable Common Stock as are then registered pursuant to such Registration Statement (each, a “Shelf Takedown”). The Holder shall be entitled to request that one such Shelf Takedown
shall be an underwritten offering; provided, that (based on the closing sale price of the Common Stock as reported on NASDAQ on the date of the Company’s receipt of such request) the number of shares of Registrable Common Stock included
in such Shelf Takedown would yield gross proceeds to the Holder(s) requesting such Shelf Takedown of at least $25,000,000. Each Holder also shall give the Company prompt written notice of the consummation of such Shelf Takedown. A notice of a
proposed Shelf Takedown pursuant to this Section shall be given by e-mail and facsimile transmission to the Company’s Chief Financial Officer, with a copy to designated counsel, as provided in Section 11(a) hereof, and shall be effective
when receipt of such notice has been confirmed telephonically. The Company agrees to waive such 24-hour notice period if at the time such notice is effective, the Prospectus included in the Registration Statement related to the Registrable Common
Stock proposed to be sold in the Shelf Takedown does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. 
 (b) Priority on Shelf Takedowns. The Company may include Common Stock
other than Registrable Common Stock in a Shelf Takedown on the terms provided below, and, if such Shelf Takedown is an underwritten offering, only with the consent of the managing underwriters of such offering. If the managing underwriters of the
requested Shelf Takedown advise the Company and the Holder(s) participating in such Shelf Takedown that in their opinion the number of shares of Common Stock proposed to be included in any Shelf Takedown (1) exceeds the number of shares of
Common Stock which can be sold in such underwritten offering or (2) would adversely affect the price per share of the Registrable Common Stock proposed to be sold in such underwritten offering, the Company shall include in such Shelf Takedown
only the number of shares of Common Stock which in the opinion of such managing underwriters can be sold. If the number of shares of Common Stock which can be sold is less than the number of shares of Common Stock proposed to be registered, the
amount of Common Stock to be so sold shall be allocated pro rata among the holders of Common Stock desiring to participate in such Shelf Takedown on the basis of the number of shares of Common Stock initially proposed to be registered by such
holders or as such holders may otherwise agree. 

  
 7 

 (c) Selection of Underwriters. If any of the Registrable Common Stock covered by an
S-3 Registration is to be sold in an underwritten offering, the Company will select one joint bookrunning managing underwriter from the list of investment banks set forth on Schedule I and the Holder(s) participating in such S-3 Registration will
select the other joint bookrunning managing underwriter the list of investment banks set forth on Schedule I. Any additional underwriters shall be selected by mutual agreement of the Holders, on the one hand, and the Company, on the other hand.

 (d) Other Registration Rights. The Company shall not grant to any Person the right to request the Company (i) to
register any shares of Common Stock in an S-3 Registration that includes Registrable Common Stock unless such rights are consistent with the provisions hereof, or (ii) to register any securities of the Company (other than shares of Common
Stock) in an S-3 Registration that includes Registrable Common Stock. 
 5. Holdback Agreements. 

As long as any Holder is the beneficial owner of five percent or more of the outstanding Common Stock of the Company, such Holder agrees
not to sell, transfer, hedge the beneficial ownership of (but shall not be required to unwind any existing hedged position) or otherwise dispose of any shares of Common Stock (or other securities of the Company) held by it for a period equal to the
lesser of (i) 90 days following the date of a prospectus or prospectus supplement, as applicable, relating to a sale of shares of Common Stock (or other securities of the Company) in an underwritten offering registered under the Securities Act
or (ii) such shorter period as the managing underwriters of such underwritten offering shall agree to. Such agreement shall be in writing in form satisfactory to the Company and the managing underwriters. The Company may impose stop-transfer
instructions with respect to the shares of Registrable Common Stock (or other securities) subject to the foregoing restriction until the end of said period. The foregoing restrictions shall not apply to (i) the exercise of any warrants or stock
options to purchase shares of capital stock of the Company (provided that such limitation does not affect limitations on any actions specified in the first sentence of this Section 5 with respect to the shares issuable upon such exercise),
(ii) transfers to Affiliates where the transferee agrees to be bound by the terms hereof, (iii) the participation in the filing of a registration statement with the SEC, including, without limitation, any S-3 Registration hereunder, or
(iv) the shares of Registrable Common Stock included in the underwritten offering giving rise to the application of this Section 5. Notwithstanding the foregoing, the holdback arrangement set forth in this Section 5 shall not apply to
any offering and sale of shares of Common Stock that is registered on Form S-8 or Form S-4. 

  
 8 

 6. Registration Procedures. 

(a) Whenever the Holder(s) requests that any Registrable Common Stock be registered pursuant to this Agreement, the Company shall use its
reasonable best efforts to effect the registration and the sale of such Registrable Common Stock in accordance with the intended methods of disposition thereof, and, pursuant thereto, the Company shall as soon as reasonably practicable use its
reasonable best efforts to: 
 (i) subject to Section 2(a) and Section 4 hereof, prepare and file with the SEC a
Registration Statement with respect to such Registrable Common Stock and cause such Registration Statement to become effective as soon as reasonably practicable thereafter; and before filing a Registration Statement or Prospectus or any amendments
or supplements thereto, furnish to the Holders and the underwriter or underwriters, if any, copies of all such documents proposed to be filed, including documents incorporated by reference in the Prospectus and, if requested by the Holders, the
exhibits incorporated by reference, and the Holders shall have the opportunity to object to any information pertaining to the Holders that is contained therein and the Company will make the corrections reasonably requested by the Holders with
respect to such information prior to filing any Registration Statement or amendment thereto or any Prospectus or any supplement thereto; 
 (ii) prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective for a period of not less than (A) 15 business days, in the case of a Demand Registration as provided in Section 2(h) hereof, or (B) the earlier of 2 years or the Termination Date in the case of an S-3 Registration, and no
longer than is necessary to complete the distribution of the Common Stock covered by such Registration Statement and comply with the provisions of the Securities Act with respect to the disposition of all the Common Stock covered by such
Registration Statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such Registration Statement; 
 (iii) furnish to each seller of Registrable Common Stock the Prospectus included in such Registration Statement (including each preliminary Prospectus) and any supplement thereto and such other documents
as such seller may reasonably request in order to facilitate the disposition of the Registrable Common Stock owned by such seller; 
 (iv) register or qualify such Registrable Common Stock under such other securities or blue sky laws of such jurisdictions as any seller reasonably requests and do any and all other acts and things which
may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Common Stock owned by such seller (provided, that the Company will not be required to (A) qualify generally to
do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph (iv), (B) subject itself to taxation in any such jurisdiction or (C) consent to general service of process in any such
jurisdiction); 

  
 9 

 (v) notify each seller of such Registrable Common Stock, at any time when a Prospectus
relating thereto is required to be delivered under the Securities Act, of the occurrence of any event as a result of which the Prospectus included in such Registration Statement contains any untrue statement of a material fact or omits to state a
material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and, at the request of any such seller, the Company shall prepare a supplement or
amendment to such Prospectus so that, as thereafter delivered to the purchasers of such Registrable Common Stock, such Prospectus shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; 
 (vi) in the case of an underwritten offering on behalf of the Holder(s) pursuant to a Demand Registration, Piggyback Registration or an S-3 Registration, enter into such customary agreements (including
underwriting and lock-up agreements in customary form) and take all such other customary actions as the Holder(s) or the managing underwriters of such offering reasonably request in order to expedite or facilitate the disposition of such Registrable
Common Stock (including, without limitation, making members of senior management of the Company available to participate in “road-show” and other customary marketing activities (including one-on-one meetings with prospective purchasers of
the Registrable Common Stock)) and cause to be delivered to the underwriters opinions of counsel to the Company in customary form, covering such matters as are customarily covered by opinions for an underwritten public offering as the managing
underwriters may request and addressed to the underwriters; 
 (vii) to the extent not prohibited by applicable law or
pre-existing applicable contractual restrictions, (A) make available, for inspection by the Holders, any underwriter participating in any disposition pursuant to such Registration Statement, and any attorney retained by any such underwriter,
all financial and other records, pertinent corporate documents and properties of the Company, (B) cause the Company’s officers and employees to supply all information reasonably requested by the Holders or such underwriter or attorney in
connection with such Registration Statement, and (C) make the Company’s independent registered public accounting firm available for any such underwriter’s due diligence; 

(viii) cause all such Registrable Common Stock to be listed on each securities exchange on which securities of the same class issued by
the Company are then listed or, if no such similar securities are then listed, on NASDAQ or a national securities exchange selected by the Company; 
 (ix) provide a transfer agent and registrar for all such Registrable Common Stock not later than the effective date of such Registration Statement; 

  
 10 

 (x) if requested, cause to be delivered at the time of delivery of any Registrable Common
Stock sold pursuant to a Registration Statement, letters from the Company’s independent registered public accounting firm addressed to each selling Holder (unless such selling Holder does not provide to such accountants the appropriate
representation letter required by rules governing the accounting profession) and each underwriter, if any, stating that such accountants are independent within the meaning of the Securities Act and the applicable rules and regulations adopted by the
SEC thereunder, and otherwise in customary form and covering such financial and accounting matters as are customarily covered by letters of independent registered public accounting firms delivered in connection with primary or secondary underwritten
public offerings, as the case may be; 
 (xi) make generally available to its stockholders a consolidated earnings statement
(which need not be audited) for the 12 months beginning after the effective date of a Registration Statement as soon as reasonably practicable after the end of such period, which earnings statement shall satisfy the requirements of an earnings
statement under Section 11(a) of the Securities Act; and 
 (xii) promptly notify the Holders and the underwriter or
underwriters, if any: 
 (1) when the Registration Statement, any pre-effective amendment, the Prospectus or any
Prospectus supplement or post-effective amendment to the Registration Statement has been filed and, with respect to the Registration Statement or any post-effective amendment, when the same has become effective; 

(2) of the notification to the Company by the SEC of its initiation of any proceeding with respect to the issuance by the
SEC of any stop order suspending the effectiveness of the Registration Statement; and 
 (3) of the receipt by
the Company of any notification with respect to the suspension of the qualification of any Registrable Common Stock for sale under the applicable securities or blue sky laws of any jurisdiction. 

(b) The Company represents and warrants that no Registration Statement (including any amendments thereto) shall contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and no Prospectus (including any
supplements thereto) shall contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading, in each case, except for any untrue statement or alleged untrue statement of a material fact or omission or alleged omission of a material fact made in reliance on and in conformity with written information furnished to the Company by or
on behalf of the Holders specifically for use therein. 

  
 11 

 (c) The Company shall make available to the Holders such number of copies of a Prospectus,
including a preliminary Prospectus, and all amendments and supplements thereto and such other documents as the Holders may reasonably request in order to facilitate the disposition of the Registrable Common Stock owned by the Holders. The Company
will promptly notify the Holders requesting registration for Registrable Common Stock of the effectiveness of each Registration Statement or any post-effective amendment. The Company will promptly respond to any and all comments received from the
SEC, with a view towards causing each Registration Statement or any amendment thereto to be declared effective by the SEC as soon as reasonably practicable and shall file an acceleration request as soon as reasonably practicable following the
resolution or clearance of all SEC comments or, if applicable, following notification by the SEC that any such Registration Statement or any amendment thereto will not be subject to review. 

(d) At all times after the Company has filed a registration statement with the SEC pursuant to the requirements of the Securities Act,
the Company shall use its reasonable best efforts to file all reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, and use its reasonable best efforts to take
such further action as the Holders may reasonably request, all to the extent required to enable the Holders to be eligible to sell Registrable Common Stock pursuant to Rule 144 (or any similar rule then in effect). 

(e) The Company may require each seller of Registrable Common Stock as to which any registration is being effected to furnish to the
Company any other information regarding such seller and the distribution of such securities as the Company may from time to time reasonably request in writing. 
 (f) Each seller of Registrable Common Stock agrees by having its stock treated as Registrable Common Stock hereunder that, upon written notice of the happening of any event as a result of which the
Prospectus included in such Registration Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading (a “Suspension Notice”), such seller will forthwith discontinue disposition of Registrable Common Stock for a reasonable length of time not to exceed 60 days until such seller is advised in
writing by the Company that the use of the Prospectus may be resumed and is furnished with a supplemented or amended Prospectus as contemplated by Section 6(a)(v) hereof, and, if so directed by the Company, such seller will deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies then in such seller’s possession, of the Prospectus covering such Registrable Common Stock current at the time of receipt of such notice; provided,
however, that such postponement of sales of Registrable Common Stock by the Holders shall not exceed 150 days in the aggregate in any one year. If the Company shall give any notice to suspend the disposition of Registrable Common Stock
pursuant to a Prospectus, the Company shall extend the period of time during which the Company is required to maintain the Registration Statement effective pursuant to this Agreement by the number of days during the period from and including the
date of the giving of such notice to and including the date such seller either is advised by the Company that the use of the Prospectus may be resumed or receives the copies of the supplemented or amended Prospectus contemplated by
Section 6(a)(v) hereof (a “Blackout Period”). In any event, the Company shall not be entitled to deliver more than four Suspension Notices in any one year. 

  
 12 

 (g) Each Holder agrees that it will comply with any applicable requirements of the
Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement, and with the provisions of the Exchange Act and the rules thereunder relating to stock manipulation, particularly
Regulation M thereunder (or any successor rules or regulations), in connection with any offering of Registrable Securities pursuant to this Agreement. 
 7. Registration Expenses. 
 (a) All expenses incident to the Company’s
performance of or compliance with this Agreement, including, without limitation, all registration and filing fees, fees and expenses of compliance with securities or blue sky laws, listing application fees, printing expenses, transfer agent’s
and registrar’s fees, cost of distributing Prospectuses in preliminary and final form as well as any supplements thereto, and fees and disbursements of counsel for the Company and all independent registered public accounting firms and other
Persons retained by the Company (all such expenses being herein called “Registration Expenses”) (but, not including any underwriting discounts or commissions attributable to the sale of Registrable Common Stock or fees and expenses
of counsel representing the Holders), shall be borne by the Company. In addition, the Company shall pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting
duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which they are to be listed. 

(b) The obligation of the Company to bear the expenses described in Section 7(a) hereof shall apply irrespective of whether a
registration, once properly demanded, if applicable, becomes effective, is withdrawn or suspended, is converted to another form of registration and irrespective of when any of the foregoing shall occur; provided, however, that
Registration Expenses for any Registration Statement withdrawn solely at the request of the Holders (unless withdrawn following postponement of filing by the Company in accordance with Section 2(d) or Section 3(a) hereof) or any
supplements or amendments to a Registration Statement or Prospectus resulting from a misstatement furnished to the Company by the Holders shall be borne by such Holders. If any Registration Statement is withdrawn (unless such withdrawal is solely at
the request of the Holders), the Company shall reimburse the Holders for their reasonable legal fees and related disbursements in connection with such withdrawn Registration Statement. 

  
 13 

 8. Indemnification. 

(a) The Company shall indemnify, to the fullest extent permitted by law, the Holders and each Person who controls the Holders (within the
meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses arising out of or based upon any untrue or alleged untrue statement of material fact contained in any Registration Statement, Prospectus, free writing
prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading, except insofar as the same are made in reliance and in conformity with information furnished in writing to the Company by a Holder expressly for use therein or caused by a
Holder’s failure to deliver to the Holder’s immediate purchaser a copy of the Registration Statement, Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendments or supplements
thereto (if the same was required by applicable law to be so delivered) after the Company has furnished the Holders with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Common Stock. In
connection with an underwritten offering, the Company shall indemnify such underwriters and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the
indemnification of the Holders. 
 (b) In connection with any Registration Statement in which a Holder is participating, such
Holder shall furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such Registration Statement or Prospectus or free writing prospectus (as defined in Rule 405 promulgated
under the Securities Act) and, shall indemnify, to the fullest extent permitted by law, the Company, its officers, directors and each Person who controls the Company (within the meaning of the Securities Act) against all losses, claims, damages,
liabilities and expenses arising out of or based upon any untrue or alleged untrue statement of material fact contained in the Registration Statement, Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act)
or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading, but only to the extent that the same are made in reliance and in conformity with information furnished in writing to the Company by such Holder expressly for use therein or caused by such Holder’s failure to deliver to such
Holder’s immediate purchaser a copy of the Registration Statement, Prospectus, free writing prospectus (as defined in Rule 405 promulgated under the Securities Act) or any amendments or supplements thereto (if the same was required by
applicable law to be so delivered) after the Company has furnished such Holder with a sufficient number of copies of the same prior to any written confirmation of the sale of Registrable Common Stock; provided, however, that the
liability of a Holder shall be in proportion to and limited to the net amount received by such Holder from the sale of Registrable Common Stock pursuant to such Registration Statement. 

  
 14 

 (c) Any Person entitled to indemnification hereunder shall (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such
defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld). An indemnifying party who is entitled to, and
elects to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any
indemnified party there may be one or more legal or equitable defenses available to such indemnified party which are in addition to or may conflict with those available to another indemnified party with respect to such claim. Failure to give prompt
written notice shall not release the indemnifying party from its obligations hereunder. 
 (d) The indemnification provided for
under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of
securities. 
 (e) If the indemnification provided for in or pursuant to this Section 8 is due in accordance with the terms
hereof, but is held by a court to be unavailable or unenforceable in respect of any losses, claims, damages, liabilities or expenses referred to herein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified Person as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and
of the indemnified party on the other in connection with the statements or omissions which result in such losses, claims, damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of the indemnifying
party on the one hand and of the indemnified Person on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified party, and by such party’s relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding
anything to the contrary herein, in no event shall the liability of a Holder be greater in amount than the amount of net proceeds received by such Holder upon such sale or the amount for which such indemnifying party would have been obligated to pay
by way of indemnification if the indemnification provided for under Section 8(a) or 8(b) hereof had been available under the circumstances. 
 9. Participation in Underwritten Registrations. 
 No Person may participate
in any registration hereunder which is underwritten unless such Person (a) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

  
 15 

 10. Rule 144. 

The Company shall use its reasonable best efforts to file the reports required to be filed by it under the Securities Act and the
Exchange Act and the rules and regulations adopted by the SEC thereunder, and use its reasonable best efforts to take such further action as the Holders may reasonably request to make available adequate current public information with respect to the
Company meeting the current public information requirements of Rule 144(c) under the Securities Act, to the extent required to enable the Holders to sell Registrable Common Stock without registration under the Securities Act within the limitation of
the exemptions provided by (i) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (ii) any similar rule or regulation hereafter adopted by the SEC. Upon the request of a Holder, the Company will deliver to
such Holder a written statement as to whether it has complied with such information and requirements. 
 11. Miscellaneous.

 (a) Notices. Except as otherwise provided herein, all notices, requests, consents and other communications
required or permitted hereunder shall be in writing and shall be hand delivered or sent postage prepaid by a nationally recognized overnight courier service (with tracking capability) or by facsimile transmission (with immediate telephone
confirmation thereafter), 
 If to the Company: 
 Morgans Hotel Group Co. 
 475 Tenth Avenue 

New York, New York 10018 
 Attention: Chief Financial Officer 
 Facsimile: (212) 277-4201 

E-mail: richard.szymanski@morganshotelgroup.com 
 with a copy to (which shall not constitute notice): 
 Hogan Lovells US LLP

 Columbia Square 
 555 Thirteenth Street, NW 
 Washington, DC 20004 

Facsimile: (202) 333-2248 
 Attention: Bruce W. Gilchrist, Esq. 
 E-mail: bruce.gilchrist@hoganlovells.com

  
 16 

 If to a Securityholder: 

c/o Yucaipa American Alliance Fund II, LLC 
 9130 W. Sunset Boulevard 
 Los Angeles, California 90069 

Attention: Robert P. Bermingham 
 with a copy (which shall not constitute notice) to: 
 Munger, Tolles &
Olson LLP 
 355 South Grand Avenue 
 35th Floor 
 Los Angeles, California 90071 

Attention: Judith T. Kitano 
 Fax: (213) 683-4052 
 Email: judith.kitano@mto.com 

or at such other address as such party each may specify by written notice to the others, and, except as otherwise provided herein, each such notice,
request, consent and other communication shall for all purposes of the Agreement be treated as being effective or having been given when delivered personally, upon receipt of facsimile confirmation if transmitted by facsimile, or, if sent by a
nationally recognized overnight courier service (with tracking capability), upon its receipt. 
 (b) No Waivers. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
 (c) Expenses. Except as otherwise provided for herein or otherwise agreed to in writing by the parties, all costs and expenses incurred in connection with the preparation of this Agreement shall be
paid by the Company. 
 (d) Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns, it being understood that subsequent holders of the Registrable Common Stock are intended third party beneficiaries hereof. Without limitation of the foregoing sentence,
each Securityholder shall be permitted to assign its registration rights as a Securityholder hereunder to any person to whom such Securityholder transfers 2,000,000 shares or more of Registrable Securities (subject to equitable adjustment in the
event of any stock split, subdivision, dividend or distribution payable in or convertible into shares of Common Stock, combination or similar recapitalization or event, in each case, occurring after the Commencement Date); provided, that
(x) the Company is given prior written notice of the assignment, stating the name and address of the assignee and identifying the Registrable Securities with respect to which such registration rights are being assigned, and (y) such
assignee agrees in writing to be bound by subject to the provisions of this Agreement mutatis mutandis as if the assignee were a party hereto. 

  
 17 

 (e) Governing Law. The internal laws of the State of New York shall govern the
enforceability and validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties. 
 (f) Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated
hereby must be brought in any federal or state court located in the County and State of New York, and each of the parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action
or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 11(a) shall be deemed effective service of process on such party. 

(g) Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 (h) Counterparts;
Effectiveness. This Agreement may be executed in any number of counterparts (including by facsimile) and by different parties hereto in separate counterparts, with the same effect as if all parties had signed the same document. All such
counterparts shall be deemed an original, shall be construed together and shall constitute one and the same instrument. This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by all of the other
parties hereto. 
 (i) Entire Agreement. This Agreement contains the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes and replaces all other prior agreements, written or oral, among the parties hereto with respect to the subject matter hereof, including, from and after the Commencement Date only, the Registration
Rights Agreement, dated as of October 15, 2009 (the “2009 Agreement”), by and between the Registrant and Yucaipa American Alliance Fund II, L.P., Yucaipa American Alliance (Parallel) Fund II, L.P. and Yucaipa American Alliance
Fund II, LLC; provided, however, that the 2009 Agreement shall remain in full force and effect in accordance with its terms unless and until the Commencement Date occurs. 
 (j) Captions. The headings and other captions in this Agreement are for convenience and reference only and shall not be used in interpreting, construing or enforcing any provision of this
Agreement. 

  
 18 

 (k) Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination, the parties shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 (l) Amendments. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given without the prior written consent of the Company and the Securityholders. 

(m) Equitable Relief. The parties hereto agree that legal remedies would be inadequate to enforce the provisions of this Agreement
against the Company and that, in the event of a breach of this Agreement by the Company, the Securityholders shall be permitted to enforce the provisions of this Agreement against the Company by means of equitable relief, including specific
performance and injunctive relief. 
 (n) Construction. The parties hereto acknowledge that each party and its counsel
have participated in the negotiation and preparation of this Agreement. This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing this Agreement to be drafted. Every covenant,
term and provision of this Agreement shall be construed according to its fair meaning and not strictly for or against any party hereto. 
 [Execution Page Follows] 

  
 19 

 IN WITNESS WHEREOF, this Registration Rights Agreement has been duly executed by each of the
parties hereto as of the date first written above. 
  

			
	MORGANS HOTEL GROUP CO.
		
	By:	 	  

		 	Name: Richard Szymanski
		 	Title: Chief Financial Officer

 [Securityholder signatures on following page.] 

  
 [Signature
Page – Registration Rights Agreement] 

			
	SECURITYHOLDERS:
	
	YUCAIPA AGGREGATOR HOLDINGS, LLC
		
	By:	 	  

		 	Name: Robert P. Bermingham
		 	Title: Vice President
	
	YUCAIPA AMERICAN ALLIANCE FUND II, L.P.
	
	 By: Yucaipa American Alliance Fund II, LLC
 Its: General Partner

		
	By:	 	  

		 	Name: Robert P. Bermingham
		 	Title: Vice President
	
	YUCAIPA AMERICAN ALLIANCE (PARALLEL) FUND II, L.P.
	
	 By: Yucaipa American Alliance Fund II, LLC
 Its: General Partner

		
	By:	 	  

		 	Name: Robert P. Bermingham
		 	Title: Vice President

  
 [Signature
Page - Registration Rights Agreement] 

 Schedule I 
 Bank of America Securities LLC [Merrill Lynch] 
 Citigroup Global Markets Inc. 

Deutsche Bank Securities Inc. 
 Goldman,
Sachs & Co. 
 Jefferies & Company, Inc. [with respect to an offering with aggregate value less than $50 million] 

Wells Fargo Securities, LLC [Wachovia] 
 J.P.
Morgan Securities LLC 
 Barclays Capital Inc. 

 SCHEDULE A 
 The Rights Offering will trigger (i) the convertibility of the 2.375% Senior Subordinated Convertible Notes due 2014 (the “Convertible Notes”) pursuant to Section 4.01(a)(iii) of the
Indenture, dated as of October 17, 2007, by and among the Company, Morgans Group LLC and The Bank of New York, as trustee, if the Subscription Price is less than the closing price of the Company’s shares of common stock on the trading day
immediately preceding the Company’s announcement of the Rights Offering and (ii) adjustments to the conversion rate for the Convertible Notes, as set forth in Section 4.06 of the Indenture. 

The Rights Offering will trigger anti-dilution adjustments required under Section 17.1 of the Company’s Amended and Restated 2007 Omnibus Incentive
Plan, as amended (the “Plan”), and related award agreements, pursuant to which the Company has determined to take the following actions: 
  

	 	•	 	 issue, upon consummation of the Rights Offering, to each Holder of RSUs or LTIP Units, a number of additional RSUs or LTIP Units (the “Award
Adjustments”), as the case may be, equal to (x) the number of RSUs or LTIP Units, as the case may be, held by such Holder immediately prior to the Record Date for the Rights Offering times (y) the weighted average daily closing price of the
Rights on Nasdaq, based on trading volume, for the period during which the Rights are traded on Nasdaq divided by (z) the weighted average daily closing price of the Common Stock on Nasdaq, based on trading volume, for the period during which the
Rights are traded on Nasdaq. Any fractional shares of Common Stock resulting from calculations of the Award Adjustments shall be eliminated by rounding up to the nearest whole share, and all additional RSUs and LTIP Units issued to a holder pursuant
to the Award Adjustments shall be subject to the same vesting schedule and other terms, on a pro rata basis, as the RSUs and LTIP Units held by such Holder as of the Record Date; and 

 

	 	•	 	 adjust the exercise price of all options (but not the number of shares issuable upon exercise of options) to purchase shares of the Company’s
Common Stock outstanding as of the close of business on the Record Date in accordance with the following formula: 

					
			
	EP1	  	=	  	EP0 x
(OS0+X)/(OS0+Y)
	
	Where
			
	EP0	  	=	  	the Exercise Price in effect immediately prior to the adjustment relating to the Rights Offering
			
	EP1	  	=	  	the new Exercise Price taking such event into account
			
	OS0	  	=	  	the number of shares of Common Stock outstanding on the record date for the Rights Offering
			
	   X	  	=	  	a number of shares of Common Stock equal to the quotient of (A) the aggregate price paid upon exercise of the Rights, divided by (B) the average of the Closing Prices of the
Common Stock for the 10 consecutive Trading Days prior to the Business Day immediately preceding the date of announcement the Rights Offering.
			
	   Y	  	=	  	the total number of shares of Common Stock issued upon exercise of the Rights

  
 A-1

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