Document:

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of July 19, 2013, among Applied DNA Sciences, Inc., a Delaware corporation (the ”Company”), and the investor listed on the Buyer Schedule attached hereto (“Buyer”).

RECITALS

A.           The Company has outstanding shares of common stock, par value $0.001 per share (the “Common Stock”), which shares of Common Stock are currently traded on the OTC Bulletin Board. In addition, the Company has authorized a series of preferred stock entitled the “Series B Convertible Preferred Stock” (the “Preferred Stock”), which Preferred Stock shall be convertible into shares of Common Stock in accordance with the terms of the Preferred Stock. The rights, preferences and other terms and provisions of the Preferred Stock are set forth in the Certificate of Designations, Preferences and Rights of Series B Convertible Preferred Stock in the form attached hereto as Exhibit A (the “Certificate of Designations”). As used herein, the term “Conversion Shares” shall include all shares of Common Stock issuable upon conversion of the Preferred Stock in accordance with the Certificate of Designations.

B.           The Company and Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

C.           Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) the number of shares of Common Stock and Preferred Stock, as further specified herein, set forth on the Buyer Schedule, (ii) a warrant to initially acquire up to the aggregate number of shares of Common Stock set forth on the Buyer Schedule, in the form attached hereto as Exhibit B (the “Series A Warrants”) (as exercised, collectively, the “Series A Warrant Shares”), (iii) a warrant to initially acquire up to the aggregate number of shares of Common Stock set forth on the Buyer Schedule, in the form attached hereto as Exhibit C (the “Series B Warrants”) (as exercised, collectively, the “Series B Warrant Shares”) and (iv) a warrant to initially acquire up to the aggregate number of shares of Common Stock set forth on the Buyer Schedule, in the form attached hereto as Exhibit D (the “Series C Warrants”) (as exercised, collectively, the “Series C Warrant Shares”). The Series A Warrants, the Series B Warrants and the Series C Warrants are collectively referred to herein as the “Warrants.” The Series A Warrant Shares, the Series B Warrant Shares and the Series C Warrant Shares are collectively referred to herein as the “Warrant Shares.”

 

D.           At the First Closing, the parties hereto shall execute and deliver a Registration Rights Agreement, in the form attached hereto as Exhibit E (the “Registration Rights Agreement”), pursuant to which the Company has agreed to provide certain registration rights with respect to the Registrable Securities (as defined in the Registration Rights Agreement), under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.

 

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E.           The Common Stock, the Preferred Stock, the Conversion Shares, the Warrants and the Warrant Shares are collectively referred to herein as the “Securities.”

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Buyer hereby agree as follows:

 

	
1.

	
PURCHASE AND SALE OF COMMON STOCK, PREFERRED STOCK AND WARRANTS.

 

(a)          Common Stock, Preferred Stock and Warrants. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell to Buyer, and Buyer shall purchase from the Company on the applicable Closing Date (as defined below), the number of shares of Common Stock and the number of shares of Preferred Stock at such Closing Date as is set forth on the Buyer Schedule, along with (i) Series A Warrants to initially acquire up to the aggregate number of Series A Warrant Shares as is set forth on the Buyer Schedule, (ii) Series B Warrants to initially acquire up to the aggregate number of Series B Warrant Shares as is set forth on the Buyer Schedule and (iii) Series C Warrants to initially acquire up to the aggregate number of Series C Warrant Shares as is set forth on the Buyer Schedule.

 

(b)          Closing. Each closing (each a “Closing” and collectively the “Closings”) of the purchase of the Common Stock, the Preferred Stock and the Warrants by the Buyer as contemplated by this Agreement shall occur at the offices of Greenberg Traurig, LLP, 77 W. Wacker Drive, Suite 3100, Chicago, Illinois 60601. The date and time of the applicable Closing (the applicable “Closing Date”) shall be 10:00 a.m., New York time, on the first (1st) Business Day on which the conditions to such Closing set forth in Sections 6 and 7 below are satisfied or waived (or such later date as is mutually agreed to by the Company and Buyer). As used herein “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to remain closed. Subject to the conditions set forth in this Agreement and the termination provisions hereof, the first closing hereunder (the “First Closing”) shall be held as soon as practicable after the date hereof, at which the Common Stock set forth on the Buyer Schedule shall be purchased and sold and the Warrants shall be issued without further consideration by Buyer. Subject to the conditions set forth in this Agreement and the termination provisions hereof, the second closing hereunder (the “Second Closing”) shall occur on the first business day following the effectiveness of the Registration Statement as set forth on Annex A to the Buyer Schedule.

 

(c)          Purchase Price. The aggregate purchase price for the Common Stock, Preferred Stock and the Warrants to be purchased by Buyer (the applicable “Purchase Price”) shall be paid at the applicable Closing and in the applicable amount as set forth on the Buyer Schedule.

 

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(d)           Payment of Purchase Price; Delivery of Preferred Stock and Warrants. On the applicable Closing Date, (i) Buyer shall pay the applicable Purchase Price to the Company for the respective Securities to be issued and sold to Buyer at the Closing (less, the amounts withheld pursuant to Section 4(g)), by wire transfer of immediately available funds in accordance with the Company’s written wire instructions and (ii) the Company shall issue to Buyer (A) the Common Stock or Preferred Stock, as applicable, to be issued at such Closing (as set forth on the Buyer Schedule) and (B) the Warrants as set forth on the Buyer Schedule (pursuant to which Buyer shall have the right to acquire up to the aggregate number of Warrant Shares as is set forth on the Buyer Schedule in respect of such Warrants), in all cases, duly executed on behalf of the Company and registered in the name of Buyer or its designee, all as set forth on the Buyer Schedule. If the Common Stock purchased at the First Closing is issued in the form of certificated shares, then the Company agrees that, at the request of Buyer, promptly following the First Closing the Company will coordinate with the Transfer Agent and Buyer to, if possible, re-issue such shares to Buyer through the DTC Fast Automated Securities Transfer Program and by crediting to Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian System such shares of Common Stock so purchased at the First Closing by Buyer and thereupon Buyer will turn in any share certificates for Common Stock issued at the First Closing.

 

	
2.

	
BUYER’S REPRESENTATIONS AND WARRANTIES.

 

Buyer represents and warrants to the Company that:

 

(a)           Organization; Authority. Buyer is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)           No Public Sale of Distribution. Buyer (i) is acquiring the Common Stock being purchased at the First Closing, the Preferred Stock being purchased by it at the Second Closing, and all Warrants being acquired by it, (ii) upon conversion of the Preferred Stock will acquire the Conversion Shares issuable upon conversion thereof, and (iii) upon exercise of its Warrants will acquire the Warrant Shares issuable upon exercise thereof, in each case, for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant to sales registered or exempted under the 1933 Act; provided, however, by making the representations herein, Buyer does not agree, or make any representation or warranty, to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities in violation of applicable securities laws.

 

(c)           Accredited Investor Status. Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

(d)           Reliance on Exemptions. Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of Buyer to acquire the Securities.

 

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(e)           Information. Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by Buyer, including a copy of the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and current reports on Form 8-K, if any. Buyer and its advisors, if any, have been afforded the opportunity to ask questions of, and receive answers from, the Company concerning the offer and sale of the Securities and to obtain any additional information Buyer has requested which is necessary to verify the accuracy of the information furnished to Buyer concerning the Company and such offering. Buyer understands that its investment in the Securities involves a high degree of risk. Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

(f)           No Governmental Review. Buyer understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

(g)           Transfer or Resale. Buyer understands that except as provided in the Registration Rights Agreement and Section 4(h) hereof: (i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) Buyer shall have delivered to the Company (if requested by the Company) an opinion of counsel to Buyer, in a form reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) Buyer provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person (as defined below) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

(h)           Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of Buyer and constitutes the legal, valid and binding obligations of Buyer enforceable against Buyer in accordance with its terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

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(j)            No Conflicts. The execution, delivery and performance by Buyer of this Agreement and the consummation by Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of Buyer, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which Buyer is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of Buyer to perform its obligations hereunder.

 

(k)           Availability of Funds. As of the date hereof, Buyer has all funds necessary to purchase all the Securities to be issued under this Agreement and to timely consummate the transactions contemplated herein.

 

(l)            Patriot Act Representations.

 

(i)           Buyer represents that all evidence of identity provided is genuine and all related information furnished is accurate.

 

(ii)           Buyer hereby acknowledges that the Company seeks to comply with all applicable anti-money laundering laws and regulations. In furtherance of such efforts, Buyer hereby represents and agrees that: (1) no part of the funds used by Buyer to acquire the Securities have been, or shall be, directly or indirectly derived from, or related to, any activity that may contravene federal, state, or international laws and regulations, including anti-money laundering laws and regulations; and (ii) to Buyer’s knowledge no payment to the Company by Buyer shall cause the Company to be in violation of any applicable anti-money laundering laws and regulations including without limitation, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, Executive Order 13224 (2001) (the “Patriot Act”) issued by the President of the United States and the U.S. Department of the Treasury Office of Foreign Assets Control (“OFAC”) regulations.

 

(iii)           Buyer represents and warrants that the amounts to be paid by Buyer to the Company will not be directly or indirectly derived from activities that may contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations. Buyer represents and warrants that, to the best of its knowledge, none of: (a) Buyer; (b) any person controlling or controlled by Buyer; or (c) any person having a beneficial interest in Buyer is (i) a country, territory, individual or entity named on a list maintained by OFAC, (ii) a person prohibited under the OFAC Programs, (iii) a senior foreign political figure,1 or any immediate family member2 or close associate3 of a senior foreign political figure as such terms are defined in the footnotes below or (iv) a “foreign shell bank” within the meaning of the U.S. Bank Secrecy Act (31 U.S.C. §5311 et seq.), as amended (the “Bank Secrecy Act”) and the regulations promulgated thereunder by the U.S. Department of the Treasury.

 

1 A “senior foreign political figure” is defined as a senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not), a senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation. In addition, a “senior foreign political figure” includes any corporation, business or other entity that has been formed by, or for the benefit of, a senior foreign political figure.

 

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(iv)           Buyer further represents and warrants that Buyer: (i) has conducted thorough due diligence with respect to all of its beneficial owners, (ii) has established the identities of all beneficial owners and the source of each of the beneficial owner’s funds and (iii) will retain evidence of any such identities, any such source of funds and any such due diligence, all to the extent required to comply with the laws and rules and regulations that apply to Buyer.

 

(v)           Neither Buyer nor any person directly or indirectly controlling, controlled by or under common control with Buyer is a person identified as a terrorist organization on any relevant lists maintained by governmental authorities.

 

(vi)           Buyer agrees to provide the Company all information that it is required to furnish under applicable laws and regulations of any applicable jurisdiction, or to respond to requests for information concerning the identity of Buyer from any governmental authority, self-regulatory organization or financial institution, in each case as required by law or applicable regulation in connection with anti-money laundering compliance procedures, and to update such information from time to time to the same extent that it is required to so furnish such information. Buyer agrees to notify the Company promptly if there is any change with respect to the representations and warranties provided herein. Buyer consents to the disclosure to regulators and law enforcement authorities by the Company and its affiliates and agents of any information provided by Buyer or required to be provided as to Buyer or it constituents as required to comply with applicable anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders of relevant authorities.

 

	
3.

	
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company represents and warrants to Buyer the matters set forth in this Section 3, as may be qualified by the corresponding section of the Company Disclosure Schedule. These representations and warranties, and the information set forth in the Company Disclosure Schedule, are current as of the date of this Agreement, except to the extent that a representation, warranty or section of the Company Disclosure Schedule expressly states that such representation or warranty, or information in such section of the Company Disclosure Schedule, is currently only as of an earlier date. If any information is so reflected as of an earlier date, there have been no material changes since such date to the date hereof.

 

2 “Immediate family” of a senior foreign political figure typically includes the figure’s parents, siblings, spouse, children and in-laws.

 

3 A “close associate” of a senior foreign political figure is a person who is widely and publicly known to maintain an unusually close relationship with the senior foreign political figure, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the senior foreign political figure.

 

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(a)           Organization and Qualification. The Company is an entity duly organized and validly existing and in good standing under the laws of the jurisdiction in which it is formed, and has the requisite power and authorization to own its properties and to carry on its business as now being conducted and as presently proposed to be conducted. The Company is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on (i) the business, properties, assets, liabilities, operations (including results thereof), condition (financial or otherwise) or prospects of the Company, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or (iii) the authority or ability of the Company to perform any of its obligations under any of the Transaction Documents (as defined below). The Company has no material subsidiaries and there are no rights or liabilities or obligations (contingent or otherwise) of any such subsidiaries.

 

(b)           Authorization; Enforcement; Validity. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement and the other Transaction Documents and to issue the Securities in accordance with the terms hereof and thereof applicable. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Common Stock and the Preferred Stock and the reservation for issuance and issuance of the Conversion Shares, issuable upon conversion of the Preferred Stock and the issuance of the Warrants and the reservation for issuance and issuance of the Warrant Shares issuable upon exercise of the Warrants) have been duly authorized by the Company’s board of directors and (other than the filing with the SEC of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, a Form D with the SEC and any other filings as may be required by any state securities agencies) no further filing, consent or authorization is required by the Company, its board of directors or its stockholders or other governing body. This Agreement has been, and the other Transaction Documents will be prior to the Closing, duly executed and delivered by the Company, and each constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies and except as rights to indemnification and to contribution may be limited by federal or state securities law. “Transaction Documents” means, collectively, this Agreement, the Warrants, the Certificate of Designations, the Irrevocable Transfer Agent Instructions (as defined below) and each of the other agreements and instruments entered into or delivered by any of the parties hereto in connection with the transactions contemplated hereby and thereby, as may be amended from time to time.

 

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(c)           Issuance of Securities. The issuance of the Common Stock, the Preferred Stock and the Warrants are duly authorized and, upon issuance in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. As of the First Closing, the Company shall have reserved from its duly authorized capital stock not less than 200% of the sum of (i) the shares of Common Stock sold at the First Closing, (ii) the maximum number of Conversion Shares issuable upon conversion of the Preferred Stock (assuming for purposes hereof that the Preferred Stock is convertible at the Fixed Conversion Price (as defined in the Certificate of Designations) and without taking into account any limitations on the conversion of the Preferred Stock set forth in the Certificate of Designation) and (iii) the maximum number of Warrant Shares issuable upon exercise of the Warrants (without taking into account any limitations on the exercise of the Warrants set forth therein). The issuance of the Conversion Shares is duly authorized, and upon conversion of the Preferred Stock in accordance with the Certificate of Designations, the Conversion Shares, when issued, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. The issuance of the Warrant Shares is duly authorized, and upon exercise in accordance with the Warrants, the Warrant Shares, when issued, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Subject to the accuracy of the representations and warranties of the Buyer in this Agreement, the offer and issuance by the Company of the Securities is exempt from registration under the 1933 Act. Buyer will have good and marketable title to the Securities.

 

(d)           No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Common Stock, the Preferred Stock, the Warrants, the Conversion Shares and Warrant Shares and the reservation for issuance of the Conversion Shares and Warrant Shares) will not (i) result in a violation of the Articles of Incorporation (as defined below) (including, without limitation, any certificate of designation contained therein) or other organizational documents of the Company, any capital stock of the Company or Bylaws (as defined below) of the Company, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations and the rules and regulations of the OTC Bulletin Board (the “Principal Market”)) applicable to the Company or by which any property or asset of the Company is bound or affected except, in the case of clause (ii) or (iii) above, to the extent such violations that could not reasonably be expected to have a Material Adverse Effect.

 

(e)           Consents. The Company is not required to obtain any consent from, authorization or order of, or make any filing or registration with (other than the filing with the SEC of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, a Form D with the SEC and any other filings as may be required by any state securities agencies), any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under, or contemplated by, the Transaction Documents, in each case, in accordance with the terms hereof or thereof. All consents, authorizations, orders, filings and registrations which the Company is required to obtain at or prior to the Closing have been obtained or effected on or prior to the Closing Date, and the Company is not aware of any facts or circumstances which might prevent the Company from obtaining or effecting any of the registration, application or filings contemplated by the Transaction Documents. The Company is not in violation of the requirements of the Principal Market and has no knowledge of any facts or circumstances which could reasonably lead to suspension of the Common Stock in the foreseeable future. There is no requirement for the Company to obtain approval of the Principal Market for listing or trading of Registrable Securities which constitute Common Stock.

 

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(f)           Acknowledgment Regarding Buyer’s Purchase of Securities. The Company acknowledges and agrees that Buyer is acting solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that Buyer is not (i) an officer or director of the Company, (ii) an “affiliate” (as defined in Rule 144) of the Company or (iii) to its knowledge, a “beneficial owner” of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the 1934 Act). The Company further acknowledges that Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by Buyer or any of its representatives or agents in connection with the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to Buyer’s purchase of the Securities. The Company further represents to Buyer that the Company’s decision to enter into the Transaction Documents to which it is a party has been based solely on the independent evaluation by the Company and its representatives.

 

(g)           No General Solicitation; Placement Agent’s Fees. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’ commissions (other than for Persons engaged by Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby. The Company has not engaged any placement agent or other agent in connection with the offer or sale of the Securities.

 

(h)           No Integrated Offering. None of the Company or any of its affiliates, nor any Person acting on its behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Securities under the 1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval of stockholders of the Company under any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company, its affiliates nor any Person acting on its behalf will take any action or steps that would require registration of the issuance of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be integrated with other offerings of securities of the Company.

 

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(i)            Dilutive Effect. The Company understands and acknowledges that the number of Conversion Shares and Warrant Shares may increase in certain circumstances. The Company further acknowledges that its obligation to issue the Conversion Shares upon conversion of the Preferred Stock and the Warrant Shares upon exercise of the Warrants in accordance with this Agreement, the Certificate of Designations and the Warrants is absolute and unconditional, regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

 

(j)            Application of Takeover Protections; Rights Agreement. The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, interested stockholder, business combination, poison pill (including, without limitation, any distribution under a rights agreement) or other similar anti-takeover provision under the Articles of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction of its incorporation or otherwise which is or could become applicable to Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company’s issuance of the Securities and Buyer’s ownership of the Securities. The Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of shares of Common Stock or a change in control of the Company.

 

(k)           SEC Documents; Financial Statements. During the two (2) years prior to the date hereof, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the “SEC Documents”). The Company has delivered to Buyer or its representatives true, correct and complete copies of each of the SEC Documents not available on the EDGAR system. As of its dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted 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. As of its dates, the financial statements of the Company included in the SEC Documents complied in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as in effect as of the time of filing. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude the footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material, either individually or in the aggregate). No other information provided by or on behalf of the Company to Buyer which is not included in the SEC Documents contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein not misleading, in the light of the circumstance under which they are or were made.

 

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(l)           Absence of Certain Changes. Since the date of the Company’s most recent audited financial statements contained in a Form 10-K, except as disclosed in the SEC Documents filed subsequent to such Form 10-K, there has been no material adverse change and no material adverse development in the business, assets, liabilities, properties, operations (including results thereof), condition (financial or otherwise) or prospects of the Company. Since the date of the Company’s most recent audited financial statements contained in a Form 10-K, the Company has not (i) declared or paid any dividends, (ii) sold any assets outside of the ordinary course of business or (iii) made any material capital expenditures, individually or in the aggregate, outside of the ordinary course of business. The Company has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company have any knowledge or reason to believe that any of its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company is not, and after giving effect to the transactions contemplated hereby to occur at the Closing will not be, Insolvent (as defined below). “Insolvent” means, (i) the present fair saleable value of the Company’s assets is less than the amount required to pay the Company’s total Indebtedness (as defined below), (ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (iii) the Company intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature. The Company has not engaged in any business or in any transaction, and is not about to engage in any business or in any transaction, for which the Company’s remaining assets constitute unreasonably small capital.

 

(m)           No Undisclosed Events, Liabilities, Developments or Circumstances. No event, liability, development or circumstance has occurred or exists, or is reasonably expected to occur or exist with respect to the Company or any of its businesses, properties, liabilities, prospects, operations (including results thereof) or condition (financial or otherwise) that (i) would be required to be disclosed by the Company under applicable securities laws on a registration statement on Form S-1 filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced, (ii) could have a material adverse effect on Buyer’s investment hereunder or (iii) could have a Material Adverse Effect.

 

(n)           Conduct of Business; Regulatory Permits. The Company is not in violation of any term of or in default under its Articles of Incorporation, any certificate of designation, preferences or rights of any other outstanding series of preferred stock of the Company or Bylaws or their organizational charter, certificate of formation or certificate of incorporation or bylaws, respectively. The Company is not in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company, and the Company will not conduct its business in violation of any of the foregoing, except in all cases for possible violations which could not, individually or in the aggregate, have a Material Adverse Effect. Without limiting the generality of the foregoing, the Company is not in violation of any of the rules, regulations or requirements of the Principal Market and has no knowledge of any facts or circumstances that could reasonably lead to suspension of the Common Stock by the Principal Market in the foreseeable future. Since January 1, 2011, (i) the Common Stock has been designated for quotation on the Principal Market, (ii) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (iii) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension of the Common Stock from the Principal Market. The Company possesses all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct its businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and the Company has not received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.

 

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(o)           Foreign Corrupt Practices. Neither the Company nor any of its subsidiaries nor any director, officer, agent, employee or other Person acting on behalf of the Company or any of its subsidiaries (as applicable) has, in the course of its actions for, or on behalf of, the Company or any of its subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

(p)           Sarbanes-Oxley Act. The Company is in compliance with all applicable requirements of the Sarbanes-Oxley Act of 2002 and all applicable rules and regulations promulgated by the SEC thereunder.

 

(q)           Transactions With Affiliates. Except as set forth in the SEC Documents, none of the officers, directors, employees or affiliates of the Company is presently a party to any transaction with the Company (other than for ordinary course services as employees, officers or directors and immaterial transactions), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such officer, director, employee or affiliate or, to the knowledge of the Company, any corporation, partnership, trust or other Person in which any such officer, director, employee or affiliate has a substantial interest or is an employee, officer, director, trustee or partner.

 

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(r)           Equity Capitalization. As of the date hereof, the authorized capital stock of the Company consists solely of (i) 1,350,000,000 shares of Common Stock, of which, 733,524,076 are issued and outstanding and 140,580,546 shares are reserved for issuance pursuant to Convertible Securities (as defined below) (other than the Preferred Stock and the Warrants) and (ii) 10,000,000 shares of preferred stock, of which there are no issued and outstanding shares. No shares of Common Stock are held in treasury. All of such outstanding shares are duly authorized and have been, or upon issuance will be, validly issued and are fully paid and non-assessable. 190,081,558 shares of the Company’s issued and outstanding Common Stock on the date hereof are owned by Persons who are “affiliates” (as defined in Rule 405 of the 1933 Act and calculated based on the assumption that only officers, directors and holders of at least 10% of the Company’s issued and outstanding Common Stock are “affiliates” without conceding that any such Persons are “affiliates” for purposes of federal securities laws) of the Company. Except as set forth on Section 3(r) of the Company Disclosure Schedule: (i) to the Company’s knowledge, no Person owns 10% or more of the Company’s issued and outstanding shares of Common Stock (calculated based on the assumption that all Convertible Securities, whether or not presently exercisable or convertible, have been fully exercised or converted (as the case may be) taking account of any limitations on exercise or conversion (including “blockers”) contained therein without conceding that such identified Person is a 10% stockholder for purposes of federal securities laws); (ii) the Company’s capital stock is not subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (iii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional capital stock of the Company or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any capital stock of the Company; (iv) there are no outstanding debt securities, Preferred Stock, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or by which the Company is or may become bound; (v) there are no financing statements securing obligations in any amounts filed in connection with the Company; (vi) there are no agreements or arrangements under which the Company is obligated to register the sale of any of their securities under the 1933 Act (except pursuant to the Registration Rights Agreement); (vii) there are no outstanding securities or instruments of the Company which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a security of the Company; (viii) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (ix) the Company has no any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and (x) the Company does not have any liabilities or obligations required to be disclosed in the SEC Documents which are not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company’s business and which does not or could not have a Material Adverse Effect. The Company has furnished to the Buyer true, correct and complete copies of the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s bylaws, as amended and as in effect on the date hereof (the “Bylaws”), and the terms of all securities convertible into, or exercisable or exchangeable for, shares of Common Stock and the material rights of the holders thereof in respect thereto.

 

(s)           Indebtedness and Other Contracts. The Company (i) except as disclosed in the SEC Documents, does not have any material outstanding Indebtedness or other material obligations, (ii) is not a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) is not in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, and (iv) is not a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

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(t)           Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company, the Common Stock or any of the Company’s officers or directors which would be reasonably likely to adversely affect the transactions contemplated by this Agreement or would require disclosure in the SEC Documents, except as otherwise disclosed in the SEC Documents. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former director or officer of the Company. The SEC has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company under the 1933 Act or the 1934 Act.

 

(u)           Insurance. The Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company is engaged. The Company has not been refused any insurance coverage sought or applied for, and the Company has no reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

 

(v)           Employee Relations. The Company is not a party to any collective bargaining agreement nor does it employ any member of a union. The Company believes that its relations with its employees are good. No executive officer (as defined in Rule 501(f) promulgated under the 1933 Act) or other key employee of the Company has notified the Company that such officer intends to leave the Company or otherwise terminate such officer’s employment with the Company. No executive officer or other key employee of the Company is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer or other key employee (as the case may be) does not subject the Company to any liability with respect to any of the foregoing matters. The Company is in compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

(w)           Title. The Company does not own any real property. The Company has good and marketable title to all personal property, owned by it which is material to the business of the Company, in each case, free and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company. Any real property and facilities held under lease by the Company are held by it under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company.

 

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(x)           Intellectual Property Rights. The Company owns or possesses adequate rights or licenses to use all material trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, original works, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations therefor (“Intellectual Property Rights”) necessary to conduct its businesses as now conducted and as presently proposed to be conducted. None of the Company’s Intellectual Property Rights have expired, terminated or been abandoned, or are expected to expire, terminate or be abandoned, within three years from the date of this Agreement, which could reasonably be expected to result in a Material Adverse Effect. The Company has no knowledge of any material infringement by the Company of Intellectual Property Rights of others, except as disclosed in the SEC Documents. There is no claim, action or proceeding being made or brought, or to the knowledge of the Company, being threatened, against the Company regarding its Intellectual Property Rights and which would reasonably be expected to have a Material Adverse Effect, except as disclosed in the SEC Documents. The Company is not aware of any facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings. The Company has taken reasonable security measures to protect the secrecy, confidentiality and value of all of its Intellectual Property Rights.

 

(y)           Environmental Laws. The Company (i) is in compliance with all Environmental Laws (as defined below), (ii) has received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct its businesses and (iii) is in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

(z)           Tax Status. The Company (i) has timely made or filed all foreign, federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has timely paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply and except in each case where the failure to file, pay or set aside could not be reasonably expected to have a Material Adverse Effect.. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The Company is not operated in such a manner as to qualify as a passive foreign investment company, as defined in Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

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(aa)           Internal Accounting and Disclosure Controls. Except as disclosed in the SEC Documents, the Company maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the 1934 Act) that is effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company’s management, including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. The Company has not received any notice or correspondence from any accountant or other Person relating to any potential material weakness or significant deficiency in any part of the internal controls over financial reporting of the Company. There are no material disagreements presently existing, or reasonably anticipated by the Company to arise, between the accountants and lawyers formerly or presently employed by the Company.

 

(bb)           Off Balance Sheet Arrangements. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise could be reasonably likely to have a Material Adverse Effect.

 

(cc)           Investment Company Status. The Company is not, and upon consummation of the sale of the Securities will not be, an “investment company,” an affiliate of an “investment company,” a company controlled by an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company” as such terms are defined in the Investment Company Act of 1940, as amended.

 

(dd)           Acknowledgement. The Company acknowledges that sales of shares of Common Stock by Buyer following the effectiveness of the Registration Statement or pursuant to Rule 144 or otherwise pursuant to an exemption from registration may reduce the price of the Common Stock, the result of which may include, without limitation, a reduction of the price at which the Preferred Stock can be converted due to the applicability of the Non-Fixed Conversion Price (as defined in the Certificate of Designations). None of the foregoing shall constitute a breach of this Agreement or any other obligation of Buyer.

 

(ee)           Manipulation of Price. The Company has not, and, to the knowledge of the Company, no Person acting on its behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

 

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(ff)           U.S. Real Property Holding Corporation. The Company is not, has and has not ever been, and so long as any of the Securities are held by Buyer, shall not become, a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon Buyer’s request.

 

(gg)         Registration Eligibility. The Company is, and on the date of filing of the Registration Statement (as defined in the Registration Rights Agreement) will be, eligible to register the resale of the Securities by Buyer on Form S-3.

 

(hh)         Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the issuance, sale and transfer of the Securities to be sold to Buyer hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

 

(ii)           Bank Holding Company Act. The Company is not subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) and to regulation by the Board of Governors of the Federal Reserve System (the “Federal Reserve”). Neither the Company nor any of its affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any equity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

 

(jj)           Shell Company Status. The Company is not, and has never been, an issuer identified in, or subject to, Rule 144(i).

 

(kk)         Public Utility Holding Act. The Company is not a “holding company,” or an “affiliate” of a “holding company,” as such terms are defined in the Public Utility Holding Act of 2005.

 

(ll)           Federal Power Act. The Company is not subject to regulation as a “public utility” under the Federal Power Act, as amended.

 

(mm)       Illegal or Unauthorized Payments; Political Contributions. Neither the Company nor, to the best of the Company’s knowledge (after reasonable inquiry of its officers and directors), any of the officers, directors, employees, agents or other representatives of the Company or any other business entity or enterprise with which the Company is or has been affiliated or associated, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable law, (a) as a kickback or bribe to any Person or (b) to any political organization, or the holder of or any aspirant to any elective or appointive public office except for personal political contributions not involving the direct or indirect use of funds of the Company.

 

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(nn)           Money Laundering. The Company is in compliance with, and have not previously violated, the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, without limitation, the laws, regulations and Executive Orders and sanctions programs administered by the U.S. Office of Foreign Assets Control, including, without limitation, (i) Executive Order 13224 of September 23, 2001 entitled, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism” (66 Fed. Reg. 49079 (2001)); and (ii) any regulations contained in 31 CFR, Subtitle B, Chapter V.

 

(oo)           Registration Rights. No holder of securities of the Company has rights to the registration of any securities of the Company because of the filing of the Registration Statement or the issuance of the Securities hereunder that could expose the Company to material liability or Buyer to any liability or that could impair the Company’s ability to consummate the issuance and sale of the Securities in the manner, and at the times, contemplated hereby, which rights have not been waived by the holder thereof as of the date hereof.

 

(pp)           Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided Buyer or their agents or counsel with any information that constitutes or could reasonably be expected to constitute material, non-public information concerning the Company, other than the existence of the transactions contemplated by this Agreement and the other Transaction Documents. The Company understands and confirms that Buyer will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Buyer regarding the Company, its business and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Each press release issued by the Company during the twelve (12) months preceding the date of this Agreement did not at the time of release 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 are made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or its business, properties, liabilities, prospects, operations (including results thereof) or conditions (financial or otherwise), which, under applicable law, rule or regulation, requires public disclosure at or before the date hereof or announcement by the Company but which has not been so publicly disclosed. The Company acknowledges and agrees that Buyer makes no and has not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2.

 

	
4.

	
COVENANTS.

 

(a)           Best Efforts. Buyer shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided in Section 6 of this Agreement. The Company shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided in Section 7 of this Agreement.

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(b)           Form D and Blue Sky. The Company shall file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof to Buyer promptly after such filing. The Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to, qualify the Securities for sale to the Buyer at the Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyer on or prior to the Closing Date. Without limiting any other obligation of the Company under this Agreement, the Company shall timely make all filings and reports relating to the offer and sale of the Securities required under all applicable securities laws (including, without limitation, all applicable federal securities laws and all applicable “Blue Sky” laws), and the Company shall comply with all applicable federal, foreign, state and local laws, statutes, rules, regulations and the like relating to the offering and sale of the Securities to the Buyer.

 

(c)           Reporting Status. Until the date on which the Buyer shall have sold all of the Registrable Securities (the “Reporting Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination.

 

(d)           Use of Proceeds. The Company shall use the proceeds from the sale of the Securities for general corporate purposes.

 

(e)           Financial Information. The Company agrees to send the following to Buyer during the Reporting Period unless the following are filed with the SEC through EDGAR and are available to the public through the EDGAR system, (i) within one (1) Business Day after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, any interim reports or any consolidated balance sheets, income statements, stockholders’ equity statements and/or cash flow statements for any period other than annual, any Current Reports on Form 8-K and any registration statements (other than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii) on the same day as the release thereof, facsimile copies of all press releases issued by the Company and (iii) copies of any notices and other information made available or given to the stockholders of the Company generally, contemporaneously with the making available or giving thereof to the stockholders.

 

(f)           Listing. The Company shall promptly secure the listing or designation for quotation (as the case may be) of all of the Registrable Securities consisting of Common Stock upon each trading market and national securities exchange and automated quotation system, if any, upon which the Common Stock is then listed or designated for quotation (as the case may be) (so that all such Registrable Securities consisting of Common Stock may be traded on the foregoing, subject to official notice of issuance) (but in no event later than the Closing Date) and shall maintain such listing or designation for quotation (as the case may be) of all Registrable Securities from time to time issuable under the terms of the Transaction Documents on such national securities exchange or automated quotation system. The Company shall maintain the Common Stock’s listing or designation for quotation (as the case may be) on the Principal Market, The New York Stock Exchange, the NYSE Amex, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market (each, an “Eligible Market”). The Company shall not take any action which could be reasonably expected to result in the delisting or suspension of the Common Stock on an Eligible Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(f).

 

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(g)           Fees. Prior to the date hereof, the Company has paid, for the benefit of Buyer, a non-refundable, non-accountable document preparation fee in the amount of $30,000. In addition, by virtue of the execution of this Agreement by Buyer, the Company shall be obligated to pay to Buyer an additional non-refundable amount equal to (i) $100,000 in respect of the First Closing and (ii) $265,000 in respect of the Second Closing, in each case, as an unallocated expense reimbursement (the “Expense Fee”) hereunder, which shall be paid by the Company to Buyer by Buyer withholding such amount from the Purchase Price to be paid by it at the applicable Closing. The Company shall be responsible for the payment of any placement agent’s fees, financial advisory fees, or broker’s commissions (other than for Persons engaged by Buyer) relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys’ fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyer.

 

(h)           Pledge of Securities. Notwithstanding anything to the contrary contained in this Agreement, the Company acknowledges and agrees that the Securities may be pledged by Buyer in connection with a bona fide margin agreement or other loan or financing arrangement that is secured by the Securities. The pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and if Buyer shall effect a pledge of Securities, Buyer shall not be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document. The Company hereby agrees to execute and deliver such documentation as a pledgee of the Securities may reasonably request in connection with a pledge of the Securities to such pledgee by Buyer.

 

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(i)           Disclosure of Transactions and Other Material Information. The Company shall, on or before 8:30 a.m., New York time, on the first (1st) Business Day after the date of this Agreement, (x) issue a press release (the “Press Release”) reasonably acceptable to the Buyer disclosing all the material terms of the transactions contemplated by the Transaction Documents and (y) file a Current Report on Form 8-K describing all the material terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching all the material Transaction Documents (including, without limitation, this Agreement, the Certificate of Designations and the form of each of the Warrants) (including all attachments, the “8-K Filing”). From and after the issuance of the Press Release, the Company shall have disclosed all material, non-public information (if any) delivered to Buyer by the Company, or any of its officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. The Company shall not, and the Company shall cause each of its officers, directors, employees and agents not to, provide Buyer with any material, non-public information regarding the Company from and after the issuance of the Press Release without the express prior written consent of Buyer. In the event of a breach of any of the foregoing covenants or any of the covenants contained in Section 4(o) by the Company or any of its or its officers, directors, employees and agents (as determined in the reasonable good faith judgment of Buyer), in addition to any other remedy provided herein or in the Transaction Documents, Buyer shall have the right to make a public disclosure, in the form of a press release, public advertisement or otherwise, of such material, non-public information without the prior approval by the Company or any of its or its officers, directors, employees or agents. Buyer shall not have any liability to the Company or any of its or its officers, directors, employees, stockholders or agents, for any such disclosure. Subject to the foregoing, neither the Company nor Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, the Company shall be entitled, without the prior approval of Buyer, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Without the prior written consent of Buyer, the Company shall not (and shall cause each of its affiliates to not) disclose the name of Buyer in any filing (other than the 8-K Filing or any filing that incorporates language from the 8-K Filing and other than the Registration Statement and other than as required by applicable law or rules and regulations), announcement, release or otherwise. Notwithstanding anything contained in this Agreement to the contrary and without implication that the contrary would otherwise be true, the Company expressly acknowledges and agrees that Buyer has not had, and Buyer shall not have (unless expressly agreed to by Buyer after the date hereof in a written definitive and binding agreement executed by the Company and Buyer), any duty of confidentiality with respect to, or a duty not to trade on the basis of, any information regarding the Company or any of its subsidiaries (as applicable) that Buyer receives from the Company, any of its subsidiaries or any of its or its officers, directors, employees, stockholders or agents.

 

(j)           Additional Registration Statements. Until the Applicable Date (as defined below), the Company shall not file a registration statement under the 1933 Act relating to securities (including, without limitation, Excluded Securities as defined below) that are not the Registrable Securities. “Applicable Date” means the 30th day anniversary of the first date on which the resale by the Buyer of all Registrable Securities is covered by one or more effective Registration Statements (as defined in the Registration Rights Agreement) (and each prospectus contained therein is available for use on such date).

 

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(k)           Additional Issuance of Securities. The Company agrees that for the period commencing on the date hereof and ending on the date immediately following the 180th day after the satisfaction of the Registration Statement condition set forth on Annex A to the Buyer Schedule (provided that such period shall be extended by the number of days during such period and any extension thereof contemplated by this proviso on which the Registration Statement is not effective or any prospectus contained therein is not available for use; provided, further, that if the Second Closing shall not have occurred due to a termination of the parties’ obligations to consummate the Second Closing in accordance with Section 8 (and the Company is not in material breach of its obligations under the Transaction Documents), then the foregoing provision shall apply only for 90 days after the First Closing) (the “Restricted Period”), the Company shall not directly or indirectly issue, offer, sell, grant any option or right to purchase, or otherwise dispose of (or announce any issuance, offer, sale, grant of any option or right to purchase or other disposition of) any equity security or any equity-linked or related security (including, without limitation, any “equity security” (as that term is defined under Rule 405 promulgated under the 1933 Act), any Convertible Securities, debt (with or related to equity), any preferred stock or any purchase rights) (any such issuance, offer, sale, grant, disposition or announcement (whether occurring during the Restricted Period or at any time thereafter) is referred to as a “Subsequent Placement”) if such Subsequent Placement is at a price below the price at which shares of Common Stock are sold hereunder at the First Closing or at a price below the consolidated closing bid price on Bloomberg on the trading day immediately prior to the satisfaction of the Registration Statement condition as set forth on Annex A to the Buyer Schedule. Notwithstanding the foregoing, this Section 4(k) shall not apply in respect of the issuance of the following: (A) shares of Common Stock or standard options to purchase Common Stock to directors (who are also employees of the Company), officers, employees or consultants of the Company pursuant to an Approved Share Plan (as defined below) or otherwise as approved by the board of directors and to directors of the Company who are not also employees of the Company, in each case, in their capacity as such, provided that the exercise price of any such options is not lowered, none of such options are amended to increase the number of shares issuable thereunder and none of the terms or conditions of any such options are otherwise materially changed in any manner that adversely affects Buyer; (B) shares of Common Stock issued upon the conversion or exercise of Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Share Plan that are covered by clause (A) above) issued prior to the date hereof, provided that the conversion or exercise (as the case may be) of any such Convertible Security is made solely pursuant to the conversion or exercise (as the case may be) provisions of such Convertible Security that were in effect on the date immediately prior to the date of this Agreement, the conversion or exercise price of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Share Plan that are covered by clause (A) above) is not lowered, none of such Convertible Securities are (other than standard options to purchase Common Stock issued pursuant to an Approved Share Plan that are covered by clause (A) above) (nor is any provision of any such Convertible Securities) amended or waived in any manner (whether by the Company or the holder thereof) to increase the number of shares issuable thereunder and none of the terms or conditions of any such Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Share Plan that are covered by clause (A) above) are otherwise materially changed or waived (whether by the Company or the holder thereof) in any manner that adversely affects Buyer; (C) the Preferred Stock, (D) the Conversion Shares; (E) the Warrants; (F) the Warrant Shares and (G) issuances (i) pursuant to acquisitions, joint ventures, license arrangements, leasing arrangements and the like, (ii) pursuant to one or more contracts entered into by the Company with third parties which would result in revenues to the Company during a three month period equal to an annual run rate of $15 Million in revenues or (ii) pursuant to a contract entered into by the Company with a third party which would reasonably be expected to result in more than $3 Million in annual receivables for the benefit of the Company; the above securities in clauses (A)-(G) being the “Excluded Securities”. “Approved Share Plan” means any employee benefit plan which has been approved by the board of directors of the Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase Common Stock may be issued to any employee, officer or director for services provided to the Company in their capacity as such. “Convertible Securities” means any capital stock or other security of the Company that is at any time and under any circumstances directly or indirectly convertible into, exercisable or exchangeable for, or which otherwise entitles the holder thereof to acquire, any capital stock or other security of the Company (including, without limitation, Common Stock).

 

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(l)           Reservation of Shares. As long as any of the Preferred Stock or Warrants remain outstanding, the Company shall take all action necessary to at all times have authorized and from time to time to have authorized, and reserved for the purpose of issuance, no less than 100% of the shares of Common Stock issuable upon conversion of the Preferred Stock and exercise of the Warrants ( Preferred Stock and Warrants are converted and exercisable in full and without regard to any limitations on the exercise of the Warrants set forth therein).

 

(m)          Conduct of Business. The business of the Company shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not result, either individually or in the aggregate, in a Material Adverse Effect.

 

(n)           Special Restrictions on Transactions. Until one (1) year from the Second Closing (or, if the obligations of Buyer and Company to consummate the Second Closing are terminated pursuant to Section 8 (and the Company is not in material breach of its obligations under the Transaction Documents), one (1) year from the First Closing), the Company and each Subsidiary shall be prohibited from effecting or entering into an agreement to effect any Subsequent Placement involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company or any Subsidiary (i) issues or sells any Convertible Securities either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of, or quotations for, the shares of Common Stock at any time after the initial issuance of such Convertible Securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such Convertible Securities or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock, other than pursuant to a customary “weighted average” anti-dilution provision or (ii) enters into any agreement (including, without limitation, an “equity line of credit” or an “at the market offering”) whereby the Company or any Subsidiary may sell securities at a future determined price (other than standard and customary “preemptive” or “participation” rights). Buyer shall be entitled to obtain injunctive relief against the Company and its Subsidiaries (as applicable) to preclude any such issuance, which remedy shall be in addition to any right to collect damages.

 

(o)           Participation Right. Without limiting the Company’s obligations or restrictions under paragraph (k) above, or any other obligations or restrictions of the Company under this Agreement or any other Transaction Document, from the date hereof through the end of the Restricted Period, the Company shall not, directly or indirectly, effect any Subsequent Placement unless the Company shall have first complied with this Section 4(o). The Company acknowledges and agrees that the right set forth in this Section 4(o) is a right granted by the Company, separately, to Buyer and not any other Person.

 

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(i)           At least five (5) Trading Days prior to any proposed or intended Subsequent Placement, the Company shall deliver to Buyer a written notice of its proposal or intention to effect a Subsequent Placement (each such notice, a “Pre-Notice”), which Pre-Notice shall not contain any information (including, without limitation, material, non-public information) other than: (i) a statement that the Company proposes or intends to effect a Subsequent Placement, (ii) a statement that the statement in clause (i) above does not constitute material, non-public information and (iii) a statement informing Buyer that it is entitled to receive an Offer Notice (as defined below) with respect to such Subsequent Placement upon its written request. Upon the written request of Buyer within three (3) Trading Days after the Company’s delivery to Buyer of such Pre-Notice, and only upon a written request by Buyer, the Company shall promptly, but no later than one (1) Trading Day after such request, deliver to Buyer an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange (the “Offer”) of the securities being offered (the “Offered Securities”) in a Subsequent Placement, which Offer Notice shall (w) identify and describe the Offered Securities, (x) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or exchanged, (y) identify the Persons (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (z) offer to issue and sell to or exchange with Buyer in accordance with the terms of the Offer 100% of the Offered Securities.

(ii)           To accept an Offer, in whole or in part, Buyer must deliver a written notice to the Company prior to the end of the fifth (5th) Business Day after Buyer’s receipt of the Offer Notice (the “Offer Period”), setting forth the portion of Buyer’s Basic Amount that Buyer elects to purchase and, if Buyer shall elect to purchase all of its Basic Amount, the Undersubscription Amount, if any, that Buyer elects to purchase (in either case, the “Notice of Acceptance”). Notwithstanding the foregoing, if the Company desires to modify or amend the terms and conditions of the Offer prior to the expiration of the Offer Period, the Company may deliver to Buyer a new Offer Notice and the Offer Period shall expire on the fifth (5th) Business Day after Buyer’s receipt of such new Offer Notice.

(iii)           The Company shall have five (5) days from the expiration of the Offer Period above (i) to offer, issue, sell or exchange all or any part of such Offered Securities as to which a Notice of Acceptance has not been given by Buyer (the “Refused Securities”) pursuant to a definitive agreement(s) (the “Subsequent Placement Agreement”), but only to the offerees described in the Offer Notice (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the acquiring Person or Persons or less favorable to the Company than those set forth in the Offer Notice and (ii) to publicly announce (a) the execution of such Subsequent Placement Agreement, and (b) either (x) the consummation of the transactions contemplated by such Subsequent Placement Agreement or (y) the termination of such Subsequent Placement Agreement, which shall be filed with the SEC on a Current Report on Form 8-K with such Subsequent Placement Agreement and any documents contemplated therein filed as exhibits thereto.

 

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(iv)           In the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in Section 4(o)(iii) above), then Buyer may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its Notice of Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that Buyer elected to purchase pursuant to Section 4(o)(ii) above multiplied by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued or sold to Buyer pursuant to this Section 4(o) prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities. In the event that Buyer so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced number or amount of the Offered Securities unless and until such securities have again been offered to the Buyer in accordance with Section 4(o)(i) above.

(v)            Upon the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, Buyer shall acquire from the Company, and the Company shall issue to Buyer, the number or amount of Offered Securities specified in its Notice of Acceptance. The purchase by Buyer of any Offered Securities is subject in all cases to the preparation, execution and delivery by the Company and Buyer of a separate purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to Buyer and its counsel.

(vi)           Any Offered Securities not acquired by Buyer in accordance with this Section 4(o) may not be issued, sold or exchanged until they are again offered to such Buyer under the procedures specified in this Agreement.

(vii)          The Company and Buyer agree that if Buyer elects to participate in the Offer, neither the Subsequent Placement Agreement with respect to such Offer nor any other transaction documents related thereto (collectively, the “Subsequent Placement Documents”) shall include any term or provision whereby Buyer shall be required to agree to any restrictions on trading as to any securities of the Company or be required to consent to any amendment to or termination of, or grant any waiver or release or the like under or in connection with, any agreement previously entered into with the Company or any instrument received from the Company.

(viii)         Notwithstanding anything to the contrary in this Section 4(o) and unless otherwise agreed to by Buyer, the Company shall either confirm in writing to Buyer that the transaction with respect to the Subsequent Placement has been abandoned or shall publicly disclose its intention to issue the Offered Securities, in either case, in such a manner such that Buyer will not be in possession of any material, non-public information, by the fifth (5th) Business Day following delivery of the Offer Notice. If by such fifth (5th) Business Day, no public disclosure regarding a transaction with respect to the Offered Securities has been made, and no notice regarding the abandonment of such transaction has been received by Buyer, such transaction shall be deemed to have been abandoned and Buyer shall not be in possession of any material, non-public information with respect to the Company. Should the Company decide to pursue such transaction with respect to the Offered Securities, the Company shall provide Buyer with another Offer Notice in accordance with, and subject to, the terms of this Section 4(o) and Buyer will again have the right of participation set forth in this Section 4(o). The Company shall not be permitted to deliver more than one Offer Notice to Buyer in any sixty (60) day period, except as expressly contemplated by the last sentence of Section 4(o)(ii).

 

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(ix)           The restrictions contained in this Section 4(o) shall not apply in connection with the issuance of any Excluded Securities.

 

(x)            The Company shall not circumvent the provisions of this Section 4(o), for example if more than one Buyer hereunder by providing terms or conditions to one Buyer that are not provided to all Buyers.

 

(p)           Passive Foreign Investment Company. The Company shall conduct its business in such a manner as will ensure that the Company will not be deemed to constitute a passive foreign investment company within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986, as amended.

 

(q)           Corporate Existence. So long as Buyer owns any Preferred Stock or Warrants, the Company shall not be party to any Fundamental Transaction (as defined in the Certificate of Designations) unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the Certificate of Designations and the Warrants.

 

(r)           Activity Restrictions. For so long as the Buyer or any of its Affiliates holds any Securities, neither the Buyer nor any Affiliate will: (i) vote any shares of Common Stock owned or controlled by it, solicit any proxies, or seek to advise or influence any Person with respect to any voting securities of the Company; (ii) engage or participate in any actions, plans or proposals which relate to or would result in (a) acquiring additional securities of the Company, alone or together with any other Person, which would result in beneficially owning, or being deemed to beneficially own, more than 9.9% of the total outstanding Common Stock, (b) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving Company, (c) a sale or transfer of a material amount of assets of the Company, (d) any change in the present board of directors or management of the Company, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board, (e) any material change in the present capitalization or dividend policy of the Company, (f) any other material change in the Company’s business or corporate structure, including but not limited to, if the Company is a registered closed-end investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by Section 13 of the Investment Company Act of 1940, (g) changes in the Company’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Company by any Person, (h) causing a class of securities of the Company to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association, (i) a class of equity securities of the Company becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act, or (j) any action, intention, plan or arrangement similar to any of those enumerated above; or (iii) request the Company or its directors, officers, employees, agents or representatives to amend or waive any provision of this Section.

 

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5.

	
REGISTER; TRANSFER AGENT INSTRUCTIONS; LEGEND.

 

(a)           Register. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities), a register for the Preferred Stock and the Warrants in which the Company shall record the name and address of the Person in whose name the Preferred Stock and the Warrants have been issued (including the name and address of each transferee) reflecting the Preferred Stock held by such Person and the Warrants held by such Person. The Company shall keep the register open and available at all times during business hours for inspection by Buyer or its legal representatives.

 

(b)           Transfer Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent and any subsequent transfer agent in a form acceptable to the Buyer (the “Irrevocable Transfer Agent Instructions”) to issue certificates or credit shares to the applicable balance accounts at The Depository Trust Company (“DTC”), registered in the name of Buyer or its respective nominee(s), for the Conversion Shares and the Warrant Shares in such amounts as specified from time to time by Buyer to the Company upon conversion of the Preferred Stock or the exercise of the Warrants (as the case may be). The Company represents and warrants that no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5(b), and stop transfer instructions to give effect to Section 2(g) hereof, will be given by the Company to its transfer agent with respect to the Securities, and that the Securities shall otherwise be freely transferable on the books and records of the Company, as applicable, to the extent provided in this Agreement and the other Transaction Documents. If Buyer effects a sale, assignment or transfer of the Securities in accordance with Section 2(g), the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by Buyer to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Conversion Shares or Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or in compliance with Rule 144 or another exemption from registration, the transfer agent shall issue such shares to Buyer, assignee or transferee (as the case may be) without any restrictive legend in accordance with Section 5(d) below. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(b) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5(b), that Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required. The Company shall cause its counsel to issue the legal opinion referred to in the Irrevocable Transfer Agent Instructions to the Company’s transfer agent on each Effective Date (as defined in the Registration Rights Agreement). Any fees (with respect to the transfer agent, counsel to the Company or otherwise) associated with the issuance of such opinion or the removal of any legends on any of the Securities shall be borne by the Company.

 

(c)           Legends. Buyer understands that the Securities have been issued (or will be issued in the case of the Conversion Shares and the Warrant Shares) pursuant to an exemption from registration or qualification under the 1933 Act and applicable state securities laws, and except as set forth below, the Securities shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

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[NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE] [EXERCISABLE] HAVE BEEN][THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

(d)          Removal of Legends. Certificates evidencing Securities shall not be required to contain the legend set forth in Section 5(c) above or any other legend (i) while a registration statement (including a Registration Statement) covering the resale of such Securities is effective under the 1933 Act, (ii) following any sale of such Securities pursuant to Rule 144 (assuming the transferor is not an affiliate of the Company), (iii) if such Securities are eligible to be sold, assigned or transferred under Rule 144 (provided that Buyer provides the Company with reasonable assurances that such Securities are eligible for sale, assignment or transfer under Rule 144 which shall not include an opinion of counsel), (iv) in connection with a sale, assignment or other transfer (other than under Rule 144), provided that Buyer provides the Company with an opinion of counsel to Buyer from reputable counsel to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act or (v) if such legend is not required under applicable requirements of the 1933 Act (including, without limitation, controlling judicial interpretations and pronouncements issued by the SEC). If a legend is not required pursuant to the foregoing, the Company shall no later than five (5) Trading Days following the delivery by Buyer to the Company or the transfer agent (with notice to the Company) of a legended certificate representing such Securities (endorsed or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect the reissuance and/or transfer, if applicable), together with any other deliveries from Buyer as may be required above in this Section 5(d), as directed by Buyer, either: (A) provided that the Company’s transfer agent is participating in the DTC Fast Automated Securities Transfer Program and such Securities are Conversion Shares or Warrant Shares, credit the aggregate number of shares of Common Stock to which Buyer shall be entitled to Buyer’s or its designee’s balance account with DTC through its Deposit/Withdrawal at Custodian system or (B) if the Company’s transfer agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver (via reputable overnight courier) to Buyer, a certificate representing such Securities that is free from all restrictive and other legends, registered in the name of Buyer or its designee (the date by which such credit is so required to be made to the balance account of Buyer’s or Buyer’s nominee with DTC or such certificate is required to be delivered to Buyer pursuant to the foregoing is referred to herein as the “Required Delivery Date”).

 

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(e)           Failure to Timely Deliver; Buy-In. If the Company fails to (i) issue and deliver (or cause to be delivered) to Buyer by the Required Delivery Date a certificate representing the Securities so delivered to the Company by Buyer that is free from all restrictive and other legends or (ii) credit the balance account of Buyer’s or Buyer’s nominee with DTC for such number of Conversion Shares or Warrant Shares so delivered to the Company, then, in addition to all other remedies available to Buyer, the Company shall pay in cash to Buyer on each Trading Day after the Required Delivery Date that the issuance or credit of such shares is not timely effected an amount equal to 2% of the product of (A) the number of shares of Common Stock not so delivered or credited (as the case may be) to Buyer or Buyer’s nominee multiplied by (B) the Closing Sale Price of the Common Stock on the Trading Day immediately preceding the Required Delivery Date. In addition to the foregoing, if the Company fails to so properly deliver such unlegended certificates or so properly credit the balance account of Buyer’s or Buyer’s nominee with DTC by the Required Delivery Date, and if on or after the Required Delivery Date Buyer (or any other Person in respect, or on behalf, of Buyer) purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by Buyer of all or any portion of the number of shares of Common Stock, or a sale of a number of shares of Common Stock equal to all or any portion of the number of shares of Common Stock, that Buyer so anticipated receiving from the Company without any restrictive legend, then, in addition to all other remedies available to Buyer, the Company shall, within five (5) Trading Days after Buyer’s request and in Buyer’s sole discretion, either (i) pay cash to Buyer in an amount equal to Buyer’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including brokerage commissions and other out-of-pocket expenses, if any) (the “Buy-In Price”), at which point the Company’s obligation to so deliver such certificate or credit Buyer’s balance account shall terminate and such shares shall be cancelled, or (ii) promptly honor its obligation to so deliver to Buyer a certificate or certificates or credit Buyer’s DTC account representing such number of shares of Common Stock that would have been so delivered if the Company timely complied with its obligations hereunder and pay cash to Buyer in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Conversion Shares or Warrant Shares (as the case may be) that the Company was required to deliver to Buyer by the Required Delivery Date multiplied by (B) the lowest Closing Sale Price (as defined in the Warrants) of the Common Stock on any Trading Day during the period commencing on the date of the delivery by Buyer to the Company of the applicable Conversion Shares or Warrant Shares (as the case may be) and ending on the date of such delivery and payment under this clause (ii).

 

	
6.

	
CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 

(a)           The obligation of the Company hereunder to issue and sell the Common Stock and Preferred Stock and the related Warrants to Buyer at the applicable Closing is subject to the satisfaction, at or before the applicable Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing Buyer with prior written notice thereof:

 

(i)             Buyer shall have executed each of the other Transaction Documents to which it is a party and delivered the same to the Company.

 

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(ii)            Buyer and each other Buyer shall have delivered to the Company the Purchase Price for the Common Stock, Preferred Stock and Warrants being purchased by Buyer at the applicable Closing (less, the amounts withheld pursuant to Section 4(g)) by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iii)           The representations and warranties of Buyer shall be true and correct in all material respects as of the date when made and as of the applicable Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such date), and Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by Buyer at or prior to the applicable Closing Date.

 

	
7.

	
CONDITIONS TO BUYER’S OBLIGATION TO PURCHASE.

 

(a)           The obligation of Buyer hereunder to purchase its Common Stock, Preferred Stock and related Warrants at the applicable Closing is subject to the satisfaction, at or before each applicable Closing Date and in respect of each such Closing Date, of each of the following conditions, provided that these conditions are for Buyer’s sole benefit and may be waived by Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)             The Company shall have duly executed and delivered to Buyer each of the Transaction Documents to which it is a party and the Company shall have duly executed and delivered to Buyer the Common Stock, Warrants and Preferred Stock as is set forth on the Buyer Schedule and the Company shall have complied in all respects with all obligations under this Agreement and the other Transaction Documents, including, without limitation, the Preferred Stock and the Warrants.

 

(ii)            The Company shall have delivered to Buyer a copy of the Irrevocable Transfer Agent Instructions, in the form previously provided to the Company, which instructions shall have been delivered to and acknowledged in writing by the Company’s transfer agent.

(iii)           The Company shall have delivered to Buyer a certificate evidencing the formation and good standing of the Company in its jurisdiction of formation issued by the Secretary of State of such jurisdiction of formation as of a date within ten (10) days of the applicable Closing Date.

 

(iv)           The Company shall have delivered to Buyer a certificate evidencing the Company’s qualification as a foreign corporation and good standing issued by the Secretary of State (or comparable office) of each jurisdiction in which the Company conducts business and is required to so qualify, as of a date within ten (10) days of the applicable Closing.

 

(v)            The Company shall have delivered to Buyer a certified copy of the Articles of Incorporation as certified by the Secretary of State of the Company’s jurisdiction of incorporation within ten (10) days of the applicable Closing Date.

 

    	30

    	 

    
 

 

(vi)           The Company shall have delivered to Buyer a certificate, in the form previously provided to the Company by Buyer, executed by the Secretary of the Company and dated as of the applicable Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company’s board of directors in a form reasonably acceptable to Buyer, (ii) the Articles of Incorporation of the and (iii) the Bylaws of the Company as in effect at the applicable Closing.

 

(vii)           Each and every representation and warranty of the Company shall be true and correct as of the date when made and as of the applicable Closing Date as though originally made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required to be performed, satisfied or complied with by the Company at or prior to the applicable Closing Date, including, without limitation the issuance of all Securities prior to the date of such Closing as required by the Transaction Documents and the Company has a sufficient number of duly authorized shares of Common Stock reserved for issuance as may be required to fulfill its obligations pursuant to the Transaction Documents. Buyer shall have received a certificate, executed by the Chief Executive Officer of the Company, dated as of the applicable Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by Buyer in the form acceptable to Buyer.

 

(viii)         The Company shall have delivered to Buyer a letter from the Company’s transfer agent certifying the number of shares of Common Stock outstanding on the applicable Closing Date immediately prior to the applicable Closing.

 

(ix)           The Common Stock (I) shall be designated for quotation on the Principal Market and (II) shall not have been suspended, as of the applicable Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the applicable Closing Date, either (A) in writing by the SEC or the Principal Market or (B) by falling below the minimum maintenance requirements of the Principal Market; since January 1, 2011, the Company shall have timely complied (without regard to any extensions) with all filing and reporting obligations under the federal securities laws; the Company is in compliance with all requirements in order to maintain quotation on the Principal Market (including reporting requirements under the 1934 Act).

 

(x)            The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including without limitation, those required by the Principal Market.

 

(xi)           No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents, and no actions, suits or proceedings shall be in progress or pending by any Person that seeks to enjoin, prohibit or otherwise adversely affect any of the transactions contemplated by the Transaction Documents.

 

    	31

    	 

    
 

 

(xii)          Since the date of execution of this Agreement, no event or series of events shall have occurred that reasonably would have or result in a Material Adverse Effect and the Company has not filed for nor is it subject to any bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings for relief under any bankruptcy law or any law for the relief of debtors instituted by or against the Company.

 

(xiii)         The Company shall have delivered to Buyer such other documents, instruments or certificates relating to the transactions contemplated by this Agreement reasonably required to consummate the transactions contemplated hereby.

 

(xiv)         Solely with respect to the Second Closing, the Company shall have filed the Certificate of Designations with the Secretary of State of the Company’s jurisdiction of incorporation within ten (10) days of the First Closing and such Certificate of Designations shall be in full force and effect.

 

(xv)          Such other conditions which are set forth on Annex A to the Buyer Schedule.

 

	
8.

	
TERMINATION.

 

In the event that the First Closing shall not have occurred within ten (10) days after the date hereof, then Buyer shall have the right to terminate its obligations under this Agreement at any time on or after the close of business on such date without liability of Buyer to any other party; provided, however, the right to terminate this Agreement under this Section 8 shall not be available to Buyer if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result of Buyer’s breach of this Agreement. In the event that the Second Closing shall not have occurred by November 5, 2013, then the Company shall have the right at the close of business on such date to terminate the obligations hereunder of the parties to consummate the Second Closing without further liability of the parties to one another in respect thereof; provided, however, the right to terminate this Agreement under this Section 8 shall not be available to Company if the failure of the transactions contemplated by this Agreement to have been consummated by such date is the result of Company’s breach of this Agreement or if the Company is otherwise in breach of this Agreement or any other Transaction Document. In the event that the Second Closing shall not have occurred by November 19, 2013, then at the close of business on such date the parties’ obligations hereunder to consummate the Second Closing shall automatically terminate without further liability of the parties to one another in respect thereof. Notwithstanding anything to the contrary above, nothing contained in this Section 8 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or the other Transaction Documents or to impair the right of any party to compel specific performance by any other party of its obligations under this Agreement or the other Transaction Documents.

 

    	32

    	 

    
 

 

	
9.

	
MISCELLANEOUS.

 

(a)           Governing Law; Jurisdiction; Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement and the other Transaction Documents shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or under any of the other Transaction Documents or in connection herewith or therewith or with any transaction contemplated hereby or thereby or discussed herein or therein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude Buyer from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to Buyer or to enforce a judgment or other court ruling in favor of Buyer. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

(b)           Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

(c)           Headings; Gender. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Unless the context clearly indicates otherwise, each pronoun herein shall be deemed to include the masculine, feminine, neuter, singular and plural forms thereof. The terms “including,” “includes,” “include” and words of like import shall be construed broadly as if followed by the words “without limitation.” The terms “herein,” “hereunder,” “hereof” and words of like import refer to this entire Agreement instead of just the provision in which they are found.

 

    	33

    	 

    
 

 

(d)           Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

(e)           Entire Agreement; Amendments. This Agreement, the other Transaction Documents and the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein supersede all other prior oral or written agreements between the Buyer, the Company, its affiliates and Persons acting on its behalf solely with respect to the matters contained herein and therein, and this Agreement, the other Transaction Documents, the schedules and exhibits attached hereto and thereto and the instruments referenced herein and therein contain the entire understanding of the parties solely with respect to the matters covered herein and therein; provided, however, nothing contained in this Agreement or any other Transaction Document shall (or shall be deemed to) (i) have any effect on any agreements Buyer has entered into with, or any instruments Buyer has received from, the Company prior to the date hereof with respect to any prior investment made by Buyer in the Company or (ii) waive, alter, modify or amend in any respect any obligations of the Company, or any rights of or benefits to Buyer or any other Person, in any agreement entered into prior to the date hereof between or among the Company and Buyer, or any instruments Buyer received from the Company prior to the date hereof, and all such agreements and instruments shall continue in full force and effect. Except as specifically set forth herein or therein, neither the Company nor Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. For clarification purposes, the Recitals are part of this Agreement. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and Buyer. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents, all holders of Preferred Stock or all holders of the Warrants (as the case may be). The Company has not, directly or indirectly, made any agreements with Buyer relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, Buyer has not made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise. As a material inducement for Buyer to enter into this Agreement, the Company expressly acknowledges and agrees that (i) no due diligence or other investigation or inquiry conducted by Buyer, any of its advisors or any of its representatives shall affect Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document and (ii) unless a provision of this Agreement or any other Transaction Document is expressly preceded by the phrase “except as disclosed in the SEC Documents,” nothing contained in any of the SEC Documents shall affect Buyer’s right to rely on, or shall modify or qualify in any manner or be an exception to any of, the Company’s representations and warranties contained in this Agreement or any other Transaction Document.

 

    	34

    	 

    
 

 

(f)           Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; (ii) when sent, if sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii) when sent, if sent by e-mail (provided that such sent e-mail is kept on file (whether electronically or otherwise) by the sending party and the sending party does not receive an automatically generated message from the recipient’s e-mail server that such e-mail could not be delivered to such recipient) and (iv) if sent by overnight courier service, one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each case, properly addressed to the party to receive the same. The addresses, facsimile numbers and e-mail addresses for such communications shall be:

 

If to the Company:

 

Applied DNA Sciences, Inc.

50 Health Sciences Drive,

Stony Brook, New York 11790

Telephone: (631) 240-8800

Facsimile: (631) 240-8900

Attention: Chief Financial officer

With a copy (for informational purposes only) to:

 

Norton Rose Fulbright

666 Fifth Avenue

New York, NY 10103

Email: merrill.kraines@nortonrosefulbright.com

Telephone: (212) 318-3261

Facsimile: (212) 318-3400

Attention: Merrill M. Kraines, Esq.

If to the Transfer Agent:

 

American Stock Transfer & Trust Company

Operations Center

6201 15th Avenue

Brooklyn, New York 11219

Telephone: (718) 921-8210

Facsimile: (718) 921-8355

Attention: Joseph Alicia

If to Buyer, to its address, facsimile number or e-mail address set forth below:

 

Crede CG III, Ltd.

11150 Santa Monica Boulevard, Suite 1500

Los Angeles, CA 90025

Telephone: (310) 444-4300

Facsimile: (310) 444-5300

Attention: Administrator

 

    	35

    	 

    
 

 

with a copy (for informational purposes only) to:

 

Greenberg Traurig, LLP

77 W. Wacker Drive, Suite 3100

Chicago, Illinois 60601

Facsimile: (312) 456-8435

E-mail: liebermanp@gtlaw.com

 mazure@gtlaw.com

Attention: Peter H. Lieberman, Esq.

 Eric Mazur, Esq.

 

or to such other address, facsimile number or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date and recipient facsimile number or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iv) above, respectively. A copy of the e-mail transmission containing the time, date and recipient e-mail address shall be rebuttable evidence of receipt by e-mail in accordance with clause (iii) above.

 

(g)           Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and its successors and assigns, including, as contemplated below, any assignee of any of the Securities. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer, including, without limitation, by way of a Fundamental Transaction (as defined in the Preferred Stock or the Warrants) (unless the Company is in compliance with the applicable provisions governing Fundamental Transactions set forth in the applicable Preferred Stock and the Warrants). .

 

(h)           No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and its permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, other than the Indemnitees referred to in Section 9(k).

 

(i)            Survival. The representations, warranties, agreements and covenants shall survive the Closing, except that if a claim is not made by Buyer in respect of a particular representation or warranty of the Company within 2 years of the date hereof, such representation or warranty of the Company will expire at such time (unless a claim thereunder or thereafter is in the nature of a fraud or Rule 10b-5 type of claim). Buyer shall be responsible only for its representations, warranties, agreements and covenants hereunder.

 

(j)            Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

    	36

    	 

    
 

 

(k)           Indemnification. In consideration of Buyer’s execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all of the Company’s other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless Buyer and each holder of any Securities and all of their stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in any of the Transaction Documents, (b) any breach of any covenant, agreement or obligation of the Company contained in any of the Transaction Documents or (c) any cause of action, suit, proceeding or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company) or which otherwise involves such Indemnitee that arises out of or results from (i) the execution, delivery, performance or enforcement of any of the Transaction Documents, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (iii) any disclosure properly made by Buyer pursuant to Section 4(i), or (iv) the status of Buyer or holder of the Securities either as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents or as a party to this Agreement (including, without limitation, as a party in interest or otherwise in any action or proceeding for injunctive or other equitable relief). To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.

 

    	37

    	 

    
 

 

(i)           Promptly after receipt by an Indemnitee under this Section 9(k) of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving an Indemnified Liability, such Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Section 9(k), deliver to the Company a written notice of the commencement thereof, and the Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with counsel mutually satisfactory to the Company and the Indemnitee; provided, however, that an Indemnitee shall have the right to retain its own counsel with the fees and expenses of such counsel to be paid by the Company if: (i) the Company has agreed in writing to pay such fees and expenses; (ii) the Company shall have failed promptly to assume the defense of such Indemnified Liability and to employ counsel reasonably satisfactory to such Indemnitee in any such Indemnified Liability; or (iii) the named parties to any such Indemnified Liability (including any impleaded parties) include both such Indemnitee and the Company, and such Indemnitee shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnitee and the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the expense of the Company, then the Company shall not have the right to assume the defense thereof and such counsel shall be at the expense of the Company), provided further, that in the case of clause (iii) above the Company shall not be responsible for the reasonable fees and expenses of more than one (1) separate legal counsel for such Indemnitee. The Indemnitee shall reasonably cooperate with the Company in connection with any negotiation or defense of any such action or Indemnified Liability by the Company and shall furnish to the Company all information reasonably available to the Indemnitee which relates to such action or Indemnified Liability. The Company shall keep the Indemnitee reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. The Company shall not be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent. The Company shall not, without the prior written consent of the Indemnitee, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnitee of a release from all liability in respect to such Indemnified Liability or litigation, and such settlement shall not include any admission as to fault on the part of the Indemnitee. Following indemnification as provided for hereunder, the Company shall be subrogated to all rights of the Indemnitee with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall not relieve the Company of any liability to the Indemnitee under this Section 9(k), except to the extent that the Company is materially and adversely prejudiced in its ability to defend such action.

 

(ii)           The indemnification required by this Section 9(k) shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Liabilities are incurred.

 

(iii)           The indemnity agreement contained herein shall be in addition to (A) any cause of action or similar right of the Indemnitee against the Company or others, and (B) any liabilities the Company may be subject to pursuant to the law.

 

(l)           Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty. Each and every reference to share prices, shares of Common Stock and any other numbers in this Agreement that relate to the Common Stock shall be automatically adjusted for stock dividends, stock splits, stock combinations and other similar transactions that occur with respect to the Common Stock after the date of this Agreement.

 

    	38

    	 

    
 

 

(m)           Remedies. Buyer and each holder of any Securities shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Buyer. The Company therefore agrees that the Buyer shall be entitled to seek specific performance and/or temporary, preliminary and permanent injunctive or other equitable relief from any court of competent jurisdiction in any such case without the necessity of proving actual damages and without posting a bond or other security.

 

(n)           Exercise of Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever Buyer exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then Buyer may continue to exercise it other rights, elections, demands and options hereunder and under any other Transaction Document from time to time as if such original right, election, demand or option had not been exercised without prejudice to its future actions and rights and remedies.

 

(o)           Payment Set Aside; Currency. To the extent that the Company makes a payment or payments to Buyer hereunder or pursuant to any of the other Transaction Documents or Buyer enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. Unless otherwise expressly indicated, all dollar amounts referred to in this Agreement and the other Transaction Documents are in United States Dollars (“U.S. Dollars”), and all amounts owing under this Agreement and all other Transaction Documents shall be paid in U.S. Dollars. All amounts denominated in other currencies (if any) shall be converted into the U.S. Dollar equivalent amount in accordance with the Exchange Rate on the date of calculation. “Exchange Rate” means, in relation to any amount of currency to be converted into U.S. Dollars pursuant to this Agreement, the U.S. Dollar exchange rate as published in the Wall Street Journal on the relevant date of calculation.

 

 [signature pages follow]

 

    	39

    	 

    
 

IN WITNESS WHEREOF, each of Buyer and the Company has caused its signature page to this Agreement to be duly executed as of the date first written above.

 

	 	

 COMPANY:

	 	 	 
	 	

 APPLIED DNA SCIENCES, INC.

 

	 	By: 	 	 
	 	Name:  	 	 	 
	 	Title: 	 	 	 

[Signature page to Securities Purchase Agreement]

 

    	40

    	 

    
 

IN WITNESS WHEREOF, each of Buyer and the Company has caused its signature page to this Agreement to be duly executed as of the date first written above.

 

	 	

BUYER:

	 
	 	 	 	 
	 	

CREDE CG III, LTD.

	 
	 	 	 	 
	 	By:	 	 
	 	 	

Name: Terren S. Peizer

	 
	 	 	

 Title: Managing Director

	 

 

[Signature page to Securities Purchase Agreement]

 

    	41

    	 

    
 

 

BUYER SCHEDULE

 

Name of Buyer: Crede CG III, Ltd.

 

Shares of Common Stock (to be purchased and sold at First Closing): for $2,000,000 in the aggregate at a purchase price equal to $0.187 per share for 10,695,187 shares of Common Stock in the aggregate.

 

Shares of Preferred Stock (to be purchased and sold at Second Closing): for $5,500,000 in the aggregate for 5,500 shares of Preferred Stock in the aggregate

 

Series A Warrants (to be issued to Buyer at First Closing): for no additional consideration warrants to acquire 10,695,187 shares of Common Stock

 

Series B Warrants (to be issued to Buyer at First Closing): for no additional consideration warrants to acquire 29,411,764 shares of Common Stock

 

Series C Warrants (to be issued to Buyer at First Closing): for no additional consideration warrants to acquire 26,737,967 shares of Common Stock

 

    	42

    	 

    
 

 

ANNEX A TO BUYER SCHEDULE

 

Effectiveness of Registration Statement Condition to Second Closing

 

Buyer’s obligation to consummate the Second Closing is subject to the fulfillment of the following condition (subject to Section 8 of this Agreement):

 

	
  

	
1.

	
The Initial Registration Statement (as defined in the Registration Rights Agreement) on Form S-3 has been declared effective by the SEC and covers the sale by Buyer (in accordance with the plan of distribution called for by the Registration Rights Agreement) of the Common Stock contemplated by, and in the amount of, the Initial Required Registration Amount (as defined in the Registration Rights Agreement), the prospectus part thereof is available for use and there has been no Equity Conditions Failure (as defined in the Warrants).

 

	 

 

    	43EX-10.1

 Exhibit 10.1 
 MANAGEMENT AGREEMENT 
 between 

ESA P PORTFOLIO OPERATING LESSEE INC. 
 (LESSEE) 
 and 

HVM L.L.C. 

(MANAGER) 

October 8, 2010 

 TABLE OF CONTENTS 

 

							
	ARTICLE I	 	 CERTAIN DEFINITIONS
	  	 	1	  
			
	ARTICLE II	 	 ENGAGEMENT OF MANAGER AND COMMENCEMENT OF MANAGEMENT OF THE HOTELS
	  	 	5	  
			
	 Section 2.1.
	 	 Engagement of Manager to Manage Hotels
	  	 	5	  
	 Section 2.2.
	 	 Management Commencement Date
	  	 	5	  
			
	ARTICLE III	 	 OPERATION OF THE HOTELS AFTER THE MANAGEMENT COMMENCEMENT DATE
	  	 	5	  
			
	 Section 3.1.
	 	 Duty and Authority of Manager
	  	 	5	  
	 Section 3.2.
	 	 Operational Standards
	  	 	8	  
	 Section 3.3.
	 	 Agreements with Related Parties
	  	 	8	  
	 Section 3.4.
	 	 Emergency Repairs
	  	 	8	  
	 Section 3.5.
	 	 Major Policy Matters and Decisions
	  	 	8	  
	 Section 3.6.
	 	 Compliance with Trademark License Agreement
	  	 	8	  
	 Section 3.7.
	 	 Marketing and Reservation Services
	  	 	9	  
	 Section 3.8.
	 	 Compliance with Terms of the Loan Documents
	  	 	9	  
	 Section 3.9.
	 	 Credit Policies
	  	 	9	  
	 Section 3.10.
	 	 Collection Practices
	  	 	9	  
	 Section 3.11.
	 	 Centralized Services
	  	 	10	  
	 Section 3.12.
	 	 Intellectual Property
	  	 	10	  
			
	ARTICLE IV	 	 OPERATING EXPENSES PAID BY LESSEE
	  	 	11	  
			
	 Section 4.1.
	 	 Expenses Incurred by Manager on Behalf of Lessee
	  	 	11	  
	 Section 4.2.
	 	 Debts and Liabilities to Third Parties
	  	 	11	  
	 Section 4.3.
	 	 Manager Not Obligated to Advance Own Funds
	  	 	11	  
			
	ARTICLE V	 	 CONSULTING SERVICES OF MANAGER’S AFFILIATES
	  	 	12	  
			
	ARTICLE VI	 	 COMPLIANCE WITH LAWS
	  	 	12	  
			
	 Section 6.1.
	 	 Compliance by Manager and Lessee After Management Commencement Date
	  	 	12	  
	 Section 6.2.
	 	 Lessee’s Right to Contest or Postpone Compliance
	  	 	12	  
	 Section 6.3.
	 	 Manager’s Right to Terminate Agreement
	  	 	12	  
			
	ARTICLE VII	 	 HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT
	  	 	13	  
			
	 Section 7.1.
	 	 Hotel Account
	  	 	13	  
	 Section 7.2.
	 	 Operating Funds
	  	 	13	  
	 Section 7.3.
	 	 Reserve Fund
	  	 	13	  
	 Section 7.4.
	 	 Fidelity Bonds
	  	 	14	  

  
 i 

							
			
	ARTICLE VIII	 	 BOOKS, RECORDS AND FINANCIAL STATEMENTS
	  	 	14	  
			
	 Section 8.1.
	 	 Accounting System
	  	 	14	  
	 Section 8.2.
	 	 Financial Statements
	  	 	14	  
	 Section 8.3.
	 	 Periodic Delivery of Data in Electronic Form
	  	 	15	  
			
	ARTICLE IX	 	 ANNUAL BUSINESS PLAN
	  	 	15	  
			
	 Section 9.1.
	 	 Preparation of Annual Business Plan
	  	 	15	  
	 Section 9.2.
	 	 Annual Business Plan Disputes
	  	 	16	  
	 Section 9.3.
	 	 Deviations from Annual Business Plan
	  	 	16	  
			
	ARTICLE X	 	 MANAGER’S FEES AND REIMBURSEMENTS
	  	 	16	  
			
	 Section 10.1.
	 	 Management Fee
	  	 	16	  
	 Section 10.2.
	 	 Reimbursement of Certain Expenses
	  	 	16	  
	 Section 10.3.
	 	 Technical Services
	  	 	17	  
	 Section 10.4.
	 	 Incentive Management Fees
	  	 	17	  
	 Section 10.5.
	 	 Other Hotel Revenue and Expenses
	  	 	17	  
			
	ARTICLE XI	 	 INSURANCE
	  	 	18	  
			
	 Section 11.1.
	 	 Insurance Coverage
	  	 	18	  
	 Section 11.2.
	 	 Waiver of Subrogation; Lessee Assumes Risk of Adequacy
	  	 	18	  
			
	ARTICLE XII	 	 TERM OF AGREEMENT AND TERMINATION
	  	 	18	  
			
	 Section 12.1.
	 	 Term
	  	 	18	  
	 Section 12.2.
	 	 Early Termination
	  	 	18	  
	 Section 12.3.
	 	 Termination Procedure
	  	 	18	  
	 Section 12.4.
	 	 Obligations Following Termination
	  	 	19	  
	 Section 12.5.
	 	 Survival
	  	 	20	  
			
	ARTICLE XIII	 	 REPRESENTATIONS AND COVENANTS
	  	 	20	  
			
	 Section 13.1.
	 	 Lessee’s Representations
	  	 	20	  
	 Section 13.2.
	 	 Manager’s Representations
	  	 	21	  
	 Section 13.3.
	 	 Manager’s Covenants
	  	 	21	  
			
	ARTICLE XIV	 	 ASSIGNMENT
	  	 	22	  
			
	ARTICLE XV	 	 CONFIDENTIALITY
	  	 	22	  
			
	ARTICLE XVI	 	 INDEMNIFICATION AND LIMITATION OF LIABILITY
	  	 	22	  
			
	 Section 16.1.
	 	 Lessee’s Indemnification
	  	 	22	  
	 Section 16.2.
	 	 Manager’s Indemnification
	  	 	23	  

  
 ii 

							
	 Section 16.3.
	 	 Indemnification Procedure
	  	 	23	  
	 Section 16.4.
	 	 Good Faith Judgment
	  	 	23	  
	 Section 16.5.
	 	 Survival
	  	 	23	  
			
	ARTICLE XVII	 	 MISCELLANEOUS
	  	 	23	  
			
	 Section 17.1.
	 	 Severability
	  	 	23	  
	 Section 17.2.
	 	 No Partnership
	  	 	24	  
	 Section 17.3.
	 	 Meetings
	  	 	24	  
	 Section 17.4.
	 	 Consents
	  	 	24	  
	 Section 17.5.
	 	 Applicable Law
	  	 	24	  
	 Section 17.6.
	 	 Successors Bound
	  	 	24	  
	 Section 17.7.
	 	 Headings
	  	 	24	  
	 Section 17.8.
	 	 Incorporation of Recitals
	  	 	24	  
	 Section 17.9.
	 	 Notices
	  	 	25	  
	 Section 17.10.
	 	 Entire Agreement; Amendments
	  	 	25	  
	 Section 17.11.
	 	 Manager’s Authority Limited
	  	 	25	  
	 Section 17.12.
	 	 Exclusive Compensation
	  	 	25	  
	 Section 17.13.
	 	 Property Rights
	  	 	26	  
	 Section 17.14.
	 	 Attorneys’ Fees
	  	 	26	  
	 Section 17.15.
	 	 Complimentary/Discount Policies
	  	 	26	  
	 Section 17.16.
	 	 No Third Party Beneficiary
	  	 	26	  
	 Section 17.17.
	 	 REOC
	  	 	26	  

  
 iii

 MANAGEMENT AGREEMENT 

THIS MANAGEMENT AGREEMENT (this “Agreement”) is made as of October 8, 2010 by and between ESA P PORTFOLIO OPERATING
LESSEE INC. (f/k/a BRE/ESA P Portfolio Operating Lessee Inc.), a Delaware corporation (“Lessee”), and HVM L.L.C. (f/k/a Homestead Village Management, LLC), a Delaware limited liability company (“Manager”).

 BACKGROUND 
 A. ESA P Portfolio L.L.C., a Delaware limited liability company, ESH/TN Properties L.L.C., a Delaware limited liability company, ESA P Portfolio MD Trust, a Delaware statutory trust (each referred to
herein as “Owner”, and collectively, as “Owners”) are the owners of those certain properties constituting various hotel properties more specifically described in Schedule A attached hereto and the buildings,
structures, fixtures and additions now or hereafter located thereon (collectively, the “Hotels”); 
 B. The
Owners have entered into that certain Lease Agreement dated as of the date hereof with Lessee (the “Operating Lease”) pursuant to which each Owner has leased its applicable Hotel to Lessee pursuant to the terms thereof; 

C. Manager is an independent contractor engaged in the management of hotels throughout the United States, and Manager is experienced in
the various phases of hotel operations; and 
 D. Lessee desires to utilize the services and experience of Manager in connection
with the management and operation of the Hotels, and Manager desires to render such services, all upon the terms and conditions set forth in this Agreement. 
 AGREEMENT 
 NOW THEREFORE, in consideration of the foregoing recitals and the
premises and the mutual covenants herein contained, the parties hereto agree as follows: 
 ARTICLE I 

CERTAIN DEFINITIONS 
 “Accounting Period” shall mean each of 12 accounting periods of one calendar month occurring each Fiscal Year. 
 “Affiliate” shall mean, with respect to any Person, any other Person that, directly or indirectly, (a) controls, is under common control with, or is controlled by such specified
Person and (b) owns at least 10% of, is under common ownership of at least 10% with, or is owned at least 10% by, such specified Person. For purposes of this definition, the term “control” shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of management, policies, or activities of a Person, whether through ownership of voting securities, by contract, or otherwise. For the avoidance of doubt, in no event shall Manager, HVM
Manager, or the members of HVM Manager be deemed Affiliates of any of the Owners, Lessee or ESH Hospitality. 

 “Annual Business Plan” shall have the meaning set forth in
Section 9.1. 
 “Cash Management Agreement” shall mean the cash management agreements executed and
delivered in connection with the Loan (including the mortgage loan and each mezzanine loan). 
 “Cash Management
System” shall mean the cash management system established pursuant to the Cash Management Agreement and each other cash management agreement relating to or contemplated by the Loan and the Loan Documents. 

“Centralized Services” shall have the meaning set forth in Section 3.11. 

“Code” shall mean the Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations promulgated
thereunder, each as amended from time to time. 
 “Emergency Repairs” shall mean repairs which are necessary,
as a result of emergencies, to protect, maintain, or repair the Hotels. Emergencies, for the purposes hereof, shall mean immediate threats of damage or injury to persons or property or immediate threats of violations of law. 

“ESH Hospitality” shall mean ESH Hospitality LLC, a Delaware limited liability company, which will elect to be taxable
as a real estate investment trust under Section 856(c) of the Code, together with its successors and assigns. 

“ESH IP” shall mean all names, trademarks, domain names and other intellectual property used in connection with the
ownership, management or operation of any Hotel. 
 “FF&E Percentage Contribution” shall have the meaning
set forth in Section 7.3. 
 “Fiscal Year” shall mean a Calendar Fiscal Year starting on
January 1 and ending on December 31 or portion thereof depending upon the Management Commencement Date and the termination date hereunder. 
 “Furniture, Fixtures and Equipment” shall mean furniture, furnishings, light fixtures, outfittings, equipment and all other items of personal property customarily installed in or used in
connection with the operation of the Hotels (it being understood, for the avoidance of doubt, that Furniture, Fixtures and Equipment shall not include major capital improvements to the Hotels). 

“GAAP” shall mean generally accepted accounting principles, as in effect from time to time in the United States of
America, consistently applied. 
 “Gross Operating Revenues” shall mean all receipts, revenues, income and
proceeds of sales of every kind received by Manager from the operation of the Hotels, and shall 

  
 2 

 
include, without limitation: room rentals; rent or other payments received from sub-tenants, licensees, and occupants of commercial and retail space located in the Hotels (provided that the
income and/or revenue received by any licensees, subtenants or other occupants which are Affiliates of Owner or Lessee shall not be included in Gross Operating Revenues); the proceeds of insurance received by Owner, Lessee or Manager with respect to
use and occupancy or business interruption insurance; deposits forfeited and not refunded; frequent guest program payments; and any amount recovered in any legal action or proceeding or settlement thereof pertaining to room revenues or other income
from the Hotels which arose out of the operation of the Hotels. Gross Operating Revenues shall exclude all sales and excise taxes and any similar taxes collected as direct taxes payable to taxing authorities; gratuities or service charges collected
for payment to and paid to employees; credit or refunds to guests; proceeds of insurance, save and except for proceeds of insurance with respect to use and occupancy or business interruption insurance; proceeds of sales of depreciable property; and
proceeds of condemnation. 
 “Group Services” shall have the meaning set forth in Section 10.2.

 “HVM Manager” shall mean HVM Manager 2 LLC, a Delaware limited liability company, together with its
successors and assigns. 
 “Hotel Account” shall have the meaning set forth in Section 7.1.

 “Hotel Information” shall mean information collected and maintained by Manager in connection with its
operation and management of the Hotels pursuant to this Agreement, regardless of the form or medium involved (e.g., paper, electronic, disc, tape, etc.), including without limitation, books of account, guest records, customer lists, front
office records and other records relating to, or reflecting the operation of, the Hotels. 
 “Hotels” shall
have the meaning set forth in Paragraph A of the Background section. 
 “Independent Auditor” shall mean
a reputable national firm of independent certified public accountants having hotel experience, recommended by Manager from time to time and approved by Lessee. 
 “Laws” shall have the meaning set forth in Section 6.1. 
 “Lender” shall mean, collectively, all mortgage and mezzanine lenders party to the Loan Agreement, together with their respective successors and assigns. 

“Licensed Intellectual Property” shall have the meaning set forth in Section 3.12(b). 

“Licensor” shall mean ESH Strategies Branding LLC, a Delaware limited liability company, together with its successors
and assigns. 

  
 3 

 “Loan” shall mean, collectively, all loans (including mortgage loans and
mezzanine loans) now or hereafter made by the Owners and certain Affiliates of the Owners, pursuant to the Loan Documents. 

“Loan Agreement” shall mean, collectively, one or more mortgage or mezzanine loan agreements or similar instruments
evidencing all or any portion of the Loan by and between the Owners and certain Affiliates of the Owners and Lender. 

“Loan Documents” shall mean collectively, the Loan Agreement, Cash Management Agreement and all other documentation now
or hereafter entered into by the Owners and certain Affiliates of the Owners and Lender related to such Loan, including, but not limited to, security agreements, promissory notes and other collateral documents. 

“Management Commencement Date” shall have the meaning set forth in Section 2.2. 

“Management Fee” shall have the meaning set forth in Section 10.1. 

“Operating Equipment” shall mean non-consumable equipment and supplies required for the operation of the Hotels,
including chinaware, glassware, linens, silverware, utensils, uniforms, and all other non-consumable supplies. 

“Operating Funds” shall have the meaning set forth in Section 7.2. 

“Operating Lease” shall have the meaning set forth in Paragraph B of the Background section. 

“Operating Licenses” shall have the meaning set forth in Section 3.1(e). 

“Operating Supplies” shall mean food and beverages and other consumable items used in the operation of a hotel, such as
fuel, soap, cleaning materials, matches, stationery, brochures, folios and all other items used in the routine operation of the Hotels which are consumable by nature. 
 “Owner” and “Owners” shall have the meaning set forth in Paragraph A of the Background section. 

“Parent” shall have the meaning set forth in Section 10.4. 

“Person” means any individual or entity, and the heirs, executors, administrators, legal representatives, successors,
and assigns of such Person where the context so admits. 
 “REOC” shall have the meaning set forth in
Section 17.17. 
 “Reserve Fund” shall have the meaning set forth in Section 7.3.

  
 4 

 “Trademark License Agreement” shall mean that certain Trademark License
Agreement dated as of the date hereof by and between Licensor, as licensor, and Lessee, as licensee, as the same may be amended, modified and/or supplemented from time to time. 

“Uniform System” shall mean the Uniform System of Accounts for Hotels, “Tenth Revised Edition”, as revised and
adopted by the Hotel Association of New York City, Inc. from time to time. 
 ARTICLE II 

ENGAGEMENT OF MANAGER AND 
 COMMENCEMENT OF MANAGEMENT OF THE HOTELS 
 Section 2.1. Engagement of
Manager to Manage Hotels. Lessee hereby appoints Manager as Lessee’s exclusive manager, subject to the terms of this Agreement, to supervise, direct and control the management and operation of the Hotels, and Manager hereby undertakes and
agrees to perform, as an independent contractor of Lessee, all of the services and to comply with all of the provisions of this Agreement, upon all of the terms and conditions hereinafter set forth. 

Section 2.2. Management Commencement Date. Manager shall assume management and operation of the Hotels on the date hereof
(the “Management Commencement Date”). Manager and Lessee acknowledge that prior to the Management Commencement Date, Manager was engaged as the exclusive manager of Lessee and certain Affiliates of Lessee with respect to the
management and operation of the Hotels, and has managed and operated the Hotels, pursuant to one or more separate management agreements which are being terminated as of the Management Commencement Date. 

ARTICLE III 

OPERATION OF THE HOTELS AFTER THE 
 MANAGEMENT COMMENCEMENT DATE 
 Section 3.1. Duty and Authority of
Manager. On and after the Management Commencement Date, except as expressly limited hereby, Manager shall have the exclusive authority and duty to direct, supervise, manage and operate the Hotels in an efficient and economical manner and to
determine the programs and policies to be followed in connection therewith, all in accordance with the provisions of this Agreement and the Annual Business Plan. Manager shall at all times be an independent contractor and not the employee of Owner
or Lessee. Subject to the provisions of this Agreement and the Annual Business Plan, Manager shall have the discretion and control in all matters relating to the management and operation of the Hotels. Without limiting the generality of the
foregoing, Manager shall have the authority (subject to the provisions of this Agreement and the Annual Business Plan) and duty to: 
 (a) Hire, supervise, direct the work of, discharge and determine the compensation and other benefits of all personnel working in the Hotels pursuant to a written program of benefits, perquisites and
policies which has been delivered to and approved by Lessee. Manager shall be the judge of the fitness and qualifications of such personnel and shall be vested with discretion in the hiring, training, supervision, direction, discharging, and

  
 5 

 
determination of the compensation and other benefits of such personnel during the course of their employment. It is expressly understood and agreed that all personnel are in the sole employ of
Manager or such company as Manager may contract with regarding said personnel and are not in the employ of Lessee or Owner and Lessee will not interfere with or give orders or instructions to personnel employed at the Hotels. 

(b) Reasonably employ the resources of its home office and regional facilities and personnel to supervise and assist in the operation of
the Hotels. Manager shall provide the following supervisory services: maintenance, human resources and personnel, administration, hotel operations, housekeeping, advertising, food and beverage operations, sales promotion, forecasting and operations
analysis, staff planning, accounting, marketing, revenue management, Information Systems, travel commission, training and oversight of reservations. The foregoing supervisory services may be provided by Manager’s corporate officers,
Manager’s employees, home office administrative heads or otherwise and shall be provided by Manager at its own expense, including, without limitation, the out-of-pocket expenses, and not charged to Owner, except as otherwise specifically
provided for in this Agreement. 
 (c) Establish all prices, price schedules, rates and rate schedules (with the goal of
maximizing revenue per available room), rents, lease charges, concession charges, and, in connection therewith, the supervision, direction and control of the collection, receipt and giving of receipts for all services or income of any nature from
the operations of the Hotels. 
 (d) Supervise and maintain complete books and records, including without limitation, the books
of accounts and accounting procedures of the Hotels. 
 (e) Obtain and maintain all licenses and permits required for the
operation of the Hotels (the “Operating Licenses”). The Operating Licenses may be in the name of Manager, Lessee or Owner in accordance with or as required by local laws, customs and practices. 

(f) Administer leases, license and concession agreements for all public space at the Hotels, including all stores, office space and lobby
space. All such leases, licenses or concessions shall be in Lessee’s name and may be executed by Manager on Lessee’s behalf after any such lease, license or other agreement has been approved by Lessee. 

(g) Keep the Hotels and the Furniture, Fixtures and Equipment in good order, repair and condition, including, without limitation, making
necessary replacements, improvements, additions and substitutions to the Hotels, subject to the approved Annual Business Plan. Manager shall effect, institute, and/or supervise all decorations, routine construction, maintenance, repairs and
alterations, including, but not limited to, the administration of a preventive maintenance program for all mechanical, electrical and plumbing systems and equipment, for the Hotels to ensure that the Hotels will be competitive in its market and in
compliance with governmental regulations, the requirements of the Trademark License Agreement and with industry standards, provided that the costs therefor (unless the same relate to emergencies) are included in the Annual Business Plan or are
otherwise approved in writing, in advance, by Lessee. Subject to the limitations set forth in and imposed by the Annual Business Plan and the Loan Documents, Manager will have the right to make such alterations, additions or improvements to the
Hotels as are customarily made in the operation or comparable 

  
 6 

 
hotels; provided, however, that no structural alterations, additions or improvements involving a fundamental change in the character of the Hotels will be made without
Lessee’s prior written approval. The cost of such customary alterations, additions or improvements will be paid either out of the Gross Operating Revenues and charged directly to current operating expenses of the Hotels (if permitted by the
Loan Documents) or will be paid from the Reserve Fund and capitalized and amortized on the books of the Hotels. 
 (h) Negotiate
and enter into, on behalf of Lessee, service contracts and licenses required in the ordinary course of business in operating the Hotels, including, without limitation, contracts for life/safety systems maintenance, electricity, gas, telephone,
cleaning, elevator and boiler maintenance, air conditioning maintenance, master television service, laundry and dry cleaning, and other services which Manager deems advisable; provided, however, any contract for a term in
excess of one (1) year or which is not terminable without fee or penalty upon not more than sixty (60) days written notice or under which the total amount payable is $5,000 or more per Hotel and which is not covered in the Annual Business
Plan shall, be approved by Lessee, which approval shall not be unreasonably withheld or delayed. 
 (i) Negotiate and enter
into, on behalf of Lessee, agreements for banquet facilities and guest rooms and agreements to provide entertainment for the Hotels, and licenses for copyright music and videos. 

(j) Supervise and purchase or arrange for the purchase in the most economical manner of all inventories, provisions, Operating Equipment
and Operating Supplies, which, in the normal course of business, are necessary and proper to maintain and operate the Hotels. 

(k) Prepare and submit to Lessee the Annual Business Plan, as hereinafter described in Section 9.1. 

(l) Consult with Lessee at least quarterly to discuss the operation and management of the Hotels and the performance of Manager’s
duties under this Agreement. 
 (m) Prepare, or engage an accounting firm reasonably approved by Lessee to prepare, any tax
returns and statements which must be filed in connection with the ownership, operation or management of the Hotels (e.g., sales, use and occupancy taxes, real property taxes, and the like), and shall file (or cause to be filed) such returns and
statements and, subject to the availability of Lessee funds, pay (or cause to be paid) such taxes, all in accordance with applicable Laws. 
 (n) At Lessee’s request, advise and assist Lessee in connection with negotiating and prosecuting any claims for the abatement, reduction or refund of property taxes affecting the Hotels. 

(o) Cooperate reasonably with and assist Lessee in any legal proceedings by or against Lessee or Owner with regard to the Hotels and
involving third parties. 
 (p) Perform such other tasks as are customary and usual in the operation of a hotel of a class and
standing consistent with the Hotels’ facilities. 

  
 7 

 (q) Prepare and maintain all records and reports relating to the Hotels necessary to
demonstrate and support ESH Hospitality’s status as a real estate investment trust for tax purposes. 
 Section 3.2.
Operational Standards. (a) Manager will operate the Hotels at the expense of Lessee in accordance with and subject to the provisions of this Agreement and the Annual Business Plan. Manager shall manage the Hotels in a manner normally
associated with extended stay hotels of similar size, type, or usage in similar locations. Manager shall use due care with respect to the management, maintenance, and protection of, and accounting for, Lessee’s and Owner’s assets.

 (b) Manager shall manage and operate the Hotels and its businesses, services, and sales and shall exercise diligent efforts
to do so at all times in a manner consistent with the standards imposed by the Trademark License Agreement, the Operating Lease, the requirements of all governmental regulations, and the requirements of this Agreement. 

(c) Manager shall implement policies and practices to: (i) facilitate effective and efficient discharge of its obligations under
this Agreement; and (ii) to create and enhance goodwill among existing and prospective guests and patrons. 

Section 3.3. Agreements with Related Parties. Manager shall not enter into any contract with an Affiliate of Manager in
connection with the Hotels or Manager’s services under this Agreement, including, without limitation, for operating, cleaning, maintaining, repairing or servicing the Hotels, without the express prior written consent of Lessee, which consent
may be evidenced by Lessee’s approval of the Annual Business Plan. 
 Section 3.4. Emergency Repairs. In the
event Emergency Repairs are needed at the Hotels, Manager shall be required to use its good faith efforts to obtain Lessee’s verbal approval of any Emergency Repairs prior to making any expenditure therefor. In the event Manager is unable to
contact Lessee to obtain its verbal approval of Emergency Repairs, then Manager is authorized to enter into contracts occasioned by such emergency that provide for expenditures not contemplated by the Annual Business Plan up to a sum of $50,000, and
provided the same may be incurred under the Loan Documents. Manager will promptly give Lessee written notice of any Emergency Repairs made by Manager. 
 Section 3.5. Major Policy Matters and Decisions. (a) Manager shall submit outlines, in reasonable detail, to Lessee setting forth its plans for and/or any major changes in its management
and operation of the Hotels that are likely to have a material effect upon the profitability of the Hotels prior to Manager’s institution of such changes. 
 (b) Manager shall not make any major policy decisions or changes not reflected in the applicable Annual Business Plan that would have a potentially material effect on the operations of the Hotels without
first obtaining Lessee’s approval of such policy change. 
 Section 3.6. Compliance with Trademark License
Agreement. Manager shall administer compliance with the Trademark License Agreement. 

  
 8 

 Section 3.7. Marketing and Reservation Services. Manager shall cause the Hotels
to be included in the national advertising programs and central reservation system for all hotels operated under the trademarks and trade names covered by the Trademark License Agreement. 

Section 3.8. Compliance with Terms of the Loan Documents. (a) Nothing herein contained shall prevent Lessee or Owner from
encumbering the Hotels by mortgage, deed of trust, or trust deed in the nature of a mortgage. 
 (b) Subject to availability of
Lessee funds, Manager shall use diligent efforts to cause the operation of the Hotels to comply with all terms, conditions, and obligations contained in the Loan Documents or any substitute therefor, of which Manager is made aware (provided that
Manager shall be under no obligation to ensure that sufficient funds for payment thereof are generated from Hotels operations), and with any leases, Lessee’s organizational documents, or other agreements of which Manager is made aware that are
executed by Lessee or Owner and that relate to the Hotels. Manager acknowledges that the terms and provisions of the Loan Documents may provide different standards or requirements with respect to certain matters covered by this Agreement. To the
extent the provisions of this Agreement are inconsistent with restrictions imposed by the Loan Documents, so long as Manager has been notified in writing of such restrictions, the provisions of the Loan Documents shall govern with respect to the
matters covered hereby. 
 (c) Upon the execution of any of the Loan Documents, Lessee shall furnish Manager with a duplicate
copy thereof and, if not designated in such Loan Documents, shall designate the post office address where notices may be served upon Lender. Manager agrees that, so long as any such Loan Document shall constitute a lien on the Hotels, when Lender
shall request in writing copies of any and all financial or other information, required to be prepared or maintained by Manager, pursuant to the terms and provisions of this Agreement, Manager shall, at Lessee’s direction, deliver same to
Lender as often as Lessee may reasonably request. Moreover, Manager shall allow, upon request of Lessee, any person designated in writing by Lender to examine, audit, inspect, and transcribe all books of account and all other records relating to or
reflecting the operation of the Hotels. 
 (d) Subject to the applicable terms and conditions of the Loan Documents, this
Agreement and the rights of Manager hereunder are and shall be expressly subordinate and inferior to the rights of Lender under the Loan Documents as and to the extent provided therein. 

Section 3.9. Credit Policies. Manager shall establish and implement policies and procedures for verifying, accepting,
limiting, and rejecting the credit of guests and patrons of the Hotels. In connection with the foregoing, Manager shall make appropriate arrangements to honor American Express, Visa, MasterCard, such credit cards as may be required or provided by
Licensor, and such other credit cards as Manager or Lessee may deem desirable. Manager shall utilize its best efforts to make such arrangements on the most favorable terms available. 

Section 3.10. Collection Practices. Manager shall employ its best efforts to collect any and all credit card charges, checks,
traveler’s checks, drafts, and other accounts receivable. Manager shall employ collection agencies and legal counsel, where appropriate, to pursue such claims. 

  
 9 

 Section 3.11. Centralized Services. Manager shall provide, or shall cause one or
more of its Affiliates to provide, in the operation of the Hotels and for the benefit of its guests, those benefits, services, and facilities, including joint advertising programs to the extent appropriate (all herein collectively called
“Centralized Services”), similar to those furnished to other hotels owned and/or operated by Manager or its Affiliates. 
 Section 3.12. Intellectual Property. 
 (a) Manager acknowledges that
the Licensor is the sole and exclusive owner of all rights, title and interest to the ESH IP, which shall in all events remain the exclusive property of the Licensor (or one or more of Licensor’s Affiliates). Manager further acknowledges that,
pursuant to the Trademark License Agreement, Lessee and its Affiliates have a license to use the ESH IP, which license shall in all events remain the exclusive property of Lessee (or one or more of Lessee’s Affiliates). All use of the ESH IP at
or in connection with the Hotels or as otherwise contemplated by this Agreement, and all goodwill arising therefrom or symbolized thereby, shall inure solely to the benefit of Lessee, Licensor and their respective Affiliates, as applicable. Nothing
in this Agreement shall be construed to grant Manager any right of ownership in, or right to use, or right to license others to use, the ESH IP, except in connection with fulfilling its duties and obligations under this Agreement. Manager may not
otherwise use the ESH IP without the prior written consent of Licensor or Lessee, which may be withheld in Licensor’s or Lessee’s sole and absolute discretion, in any manner whatsoever and shall not apply for registration of any ESH IP or
any other intellectual property confusingly similar thereto in any jurisdiction. 
 (b) Manager acknowledges that Lessee or its
Affiliates are or may become the licensee of certain intellectual property including intellectual property that may be embodied in software for use at one or more facilities leased by Lessee or its Affiliates and all source and object code versions
thereof and all related documentation, flow charts, user manuals, service/operator manuals and any enhancements, modifications or substitutions thereof (all such intellectual property herein collectively called “Licensed Intellectual
Property”). Except as otherwise specified by Lessee, Manager may utilize the Licensed Intellectual Property to the extent that Manager deems appropriate in connection with the operation of the Hotels for the purpose of carrying out its
obligations hereunder, but such use shall be strictly on a non-exclusive basis and neither such use nor anything contained in this Agreement shall confer any proprietary or other rights in the Licensed Intellectual Property on Manager or any third
parties. 
 (c) Upon the expiration or earlier termination of this Agreement, any use of or right to use any of the ESH IP or
Licensed Intellectual Property at or in connection with the Hotels by Manager shall cease forthwith. In the event of the expiration or earlier termination of this Agreement, Manager shall immediately cease using all ESH IP and Licensed Intellectual
Property, except to the extent that Manager may be authorized to continue using the same pursuant to, and in accordance with, the terms and conditions of any separate management or license agreement between Manager and any Affiliate of Lessee or any
licensee or franchisee that is otherwise authorized to use any such ESH IP or Licensed Intellectual Property. Further, 

  
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Manager will have no right whatsoever from and after the date of expiration or earlier termination to make use of or to dispose of any furnishings and equipment, Operating Equipment and Operating
Supplies bearing or incorporating any ESH IP except upon and in accordance with the terms and provisions of this Section 3.12(c). Specifically, it is understood and agreed that Manager may not make any use of such property from and after
the effective date of such expiration or earlier termination unless Manager is specifically authorized in writing (whether under license from Lessee, Licensor or otherwise, other than by this Agreement) to use property bearing any ESH IP, nor may
Manager dispose of such property to any person or entity whatsoever unless such person or entity is specifically authorized in writing by Lessee or Licensor (whether under license from Lessee or Licensor or otherwise) to use property bearing or
incorporating any ESH IP. 
 (d) Lessee, Licensor and their respective Affiliates shall have the right to injunctive relief and
any other right or remedy available at law or in equity to enforce the provisions of this Section 3.12. 
 (e) The
provisions of this Section 3.12 shall survive expiration or earlier termination of this Agreement. 
 ARTICLE IV

 OPERATING EXPENSES PAID BY LESSEE 
 Section 4.1. Expenses Incurred by Manager on Behalf of Lessee. Everything done by Manager in the performance of its obligations and all expenses incurred under and in accordance with this
Agreement shall be for and on behalf of Lessee and for Lessee’s account, except the services referred to in Article V, which shall be rendered and performed by Manager or its Affiliates at their expense and not separately charged to
Lessee, except as otherwise provided in Section 10.2. 
 Section 4.2. Debts and Liabilities to Third
Parties. As between Lessee and Manager under this Agreement, all debts and liabilities arising in the course of business of the Hotels are and shall be the obligations of Lessee, and, provided such debts and liabilities have been incurred in
accordance with the terms and provisions of this Agreement, Manager shall not be liable for any of such obligations by reason of its management, supervision and operation of the Hotels for Lessee. 

Section 4.3. Manager Not Obligated to Advance Own Funds. Neither Manager nor any of its Affiliates shall be obligated to
advance any of its own funds to or for the account of Lessee, nor to incur any liability unless Lessee shall have furnished Manager with funds necessary for the discharge thereof prior to incurring such liability. If Manager shall have advanced any
funds in payment of a permitted expense in the maintenance and operation of the Hotels, Lessee shall reimburse Manager therefor on demand. Notwithstanding the foregoing, Manager shall pay from its own funds the expenses hereinafter described in
Article V. 

  
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 ARTICLE V 
 CONSULTING SERVICES OF MANAGER’S AFFILIATES 
 Except as hereinafter provided
in Section 10.2, after the Management Commencement Date, the normal consulting services of the corporate officers and employees of Manager or Manager’s Affiliates, including its corporate executives for operations, human resources,
training, food and beverage, finance and administration and real estate, to be rendered from time to time to Manager in connection with the operations of the Hotels, shall be provided by corporate officers and employees of Manager or Manager’s
Affiliates to Manager at Manager’s sole cost and expense and not charged to Lessee hereunder. In no event shall Manager’s Affiliates be deemed a party to this Agreement or responsible in any way for Manager’s obligations pursuant to
this Agreement by virtue of providing the foregoing services to Manager (or any of the services described in Section 10.2 and Lessee reimbursing Manager for the expenses in connection therewith). 

ARTICLE VI 

COMPLIANCE WITH LAWS 
 Section 6.1. Compliance by Manager and Lessee After Management Commencement Date. Manager shall make all reasonable efforts, at expense of Lessee, to assure full compliance with all laws,
rules, regulations, requirements, orders, notices, determinations and ordinances of any governing authority (collectively, “Laws”) relating to the management, leasing, use, operation, repair, supervision and maintenance of the
Hotels, including, without limitation, the state and local liquor authorities, the Board of Fire Underwriters and the requirements of any insurance companies covering any of the risks against which the Hotels is insured. Unless otherwise directed by
Lessee, Manager shall, at Lessee’s expense, promptly remedy any violation of any such governmental regulation which comes or should have come to its attention, which remedy shall be carried out solely at Lessee’s expense (subject to the
limitations set forth elsewhere herein) unless caused by an action or omission of Manager not authorized pursuant to this Agreement or unless Manager has failed to fulfill its duty as required in the immediately preceding sentence, in which event
all costs shall be paid solely by Manager. 
 Section 6.2. Lessee’s Right to Contest or Postpone Compliance.
With respect to a violation of any Laws, Lessee shall have the right to contest any of the foregoing and postpone compliance pending the determination of such contest, if so permitted by law and not detrimental to the operation of the Hotels, but in
such event, Lessee shall indemnify and hold harmless Manager from any loss, cost, damage or expense, as a result thereof. 

Section 6.3. Manager’s Right to Terminate Agreement. Notwithstanding anything in this Agreement to the contrary, if
within 30 days of receiving Manager’s written request (accompanied by a statement of Manager’s intention to elect to cancel this Agreement if Lessee fails to give its approval as provided below) Lessee fails to approve the changes,
repairs, alterations, improvements, renewals or replacements to the Hotels which Manager determines in its reasonable judgment are necessary to protect the Hotels, Lessee and/or Manager from innkeeper liability exposure then Manager may terminate
this Agreement any time after such 30 day period upon 7 days’ written notice; provided, however, that if termination of this Agreement could result in the acceleration of the indebtedness secured by the Loan
Documents, then Manager shall not have such right of termination, and in such event, Lessee’s indemnification in Section 16.1 shall apply to such innkeeper liability as set forth above. 

  
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 ARTICLE VII 
 HOTEL ACCOUNT, OPERATING FUNDS, AND RESERVE FUND ACCOUNT 
 Section 7.1.
Hotel Account. (a) Lessee directs Manager and Manager acknowledges and agrees, pursuant to the terms of the Cash Management Agreement, to deposit or cause to be deposited, all monies received by Manager in the operation of the Hotels,
excluding the Operating Funds furnished by Lessee, into the Cash Management System so long as any amounts under the Loan are outstanding. Lessee agrees that disbursements to Lessee from the Operating Expense Subaccount (as defined in the Cash
Management Agreement) shall be deposited in a special account or accounts (collectively, the “Hotel Account”), in Lessee’s name (or in Manager’s name, as agent of Lessee), in the bank or trust company recommended by
Manager and approved by Lessee. Such monies shall not be mingled with Manager’s other funds. Out of the Hotel Account, Manager shall periodically withdraw funds and pay all operating expenses of the Hotels and any fees or compensation of any
kind due it pursuant to this Agreement in accordance with the provisions of this Agreement. Withdrawals from accounts established pursuant to this Article VII shall be signed by representatives of Manager only, provided such representatives
are bonded or otherwise insured, and Manager shall supply Lessee with bonds or other insurance upon Lessee’s request unless said bond or other insurance shall have been placed by Lessee and delivered directly by the bonding or insurance company
to Lessee. Manager may utilize its centralized disbursement accounts in its name for accounts payable and payroll disbursements, provided that Manager shall only transfer the necessary amount of funds from the Hotel Account to such centralized
disbursement accounts required to make such disbursements on behalf of the Hotels. 
 (b) Manager will maintain the Hotel
Account on Lessee’s behalf and all funds received from Lessee will be and remain the property of Lessee and will be disbursed by Manager only as set forth in this Agreement. Any and all expenses of the Hotels paid by Manager must pass through
and be withdrawn from the Hotel Account. Lessee shall have the right from time to time to direct Manager to change either the depository bank or the depository arrangements and Manager shall implement such changes promptly. Lessee shall have the
right to approve and to maintain control of signature cards for the Hotel Account; provided, however, Lessee shall not withdraw funds from such accounts except as provided below. 

Section 7.2. Operating Funds. From and after the Management Commencement Date, Lessee shall, if and as required, maintain
cash in the Hotel Account (“Operating Funds”) sufficient in amount to enable Manager to properly manage and operate the Hotels. 
 Section 7.3. Reserve Fund. If the Loan Documents require a reserve(s) for Furniture, Fixtures and Equipment to be maintained, Manager shall cause such reserve(s) to be maintained in accordance
with the terms of the Loan Documents. If the Loan Documents do not require such a reserve, then, as part of the Hotel Account, there shall be established the Reserve Fund in the manner hereinafter described. To the extent Operating Funds exceed the
amount described in Section 7.2 and the amounts needed for capital expenditures anticipated pursuant to the Annual Business Plan, Manager shall deposit from such excess, if any, in a reserve fund (“Reserve Fund”) an
amount equal to 4% of Gross Operating Revenues or such other percentage of Gross Operating Revenues as Lessee may, from time to time, require (the “FF&E Percentage Contribution”). Manager shall deduct the FF&E Percentage
Contribution, if any, on a monthly 

  
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basis from Gross Operating Revenues and deposit such amount in the Reserve Fund. The Reserve Fund shall be used only for additions or replacements to Furniture, Fixtures and Equipment in
accordance with the Annual Business Plan. 
 Section 7.4. Fidelity Bonds. Manager shall obtain a fidelity bond or
insurance, in an amount not less than $1,000,000 (or such other amount reasonably required by Lessee consistent with the commercial availability thereof, the size and scope of Lessee’s business being handled by Manager hereunder and reasonable
business practice), issued by a company reasonably acceptable to Lessee, covering Manager and such of Manager’s on-site employees who may handle or be responsible for monies or property of Lessee and place policies of insurance covering the
Hotels as directed by Lessee. 
 ARTICLE VIII 
 BOOKS, RECORDS AND FINANCIAL STATEMENTS 
 Section 8.1. Accounting
System. Manager shall keep full and adequate books of account and other records reflecting the results of operation of the Hotels on an accrual basis, all in accordance with GAAP and, as and to the extent applicable to the Hotels, the Uniform
System. The Fiscal Year used by Manager will consist of 12 Accounting Periods of one calendar month each. The Hotel Information shall be kept at the Hotels and/or Manager’s home office and computer storage systems and shall be available to
Lessee and its representatives at all reasonable times for examination, audit, inspection and transcription. All of the Hotel Information, at all times, shall be the property of Lessee. Manager shall treat as confidential any Hotel Information in
its possession, and shall not disclose to any third party, without the prior written consent of Lessee (which approval and consent may be withheld in Lessee’s sole discretion) any Hotel Information, except as may be necessary to perform its
duties and obligations under this Agreement or as may be necessitated by any applicable Laws. Upon the expiration or earlier termination of this Agreement, all Hotel Information shall be turned over to Lessee to ensure the orderly continuation of
the operation of the Hotels, but the books and records shall thereafter be available to Manager at all reasonable times for inspection, audit, examination and transcription. 
 Section 8.2. Financial Statements. 
 (a) Manager shall deliver to
Lessee within twenty (20) days after the end of each Accounting Period a profit and loss statement showing the results of the operation of the Hotels for such Accounting Period, the Fiscal Year to date, and the trailing twelve (12) month
period, and a statement of gross revenues received from rooms, food and beverage and other sources, guest room occupancy percentage, average room rates, total expenses paid and a cash forecast. Information relating to other matters pertaining to the
management, operation, maintenance, and supervision of the Hotels not covered in such monthly operating reports as Lessee shall reasonably request will be provided to Lessee (provided such information is generally within the scope of Manager’s
other obligations and duties hereunder), within 20 days of such request. 
 (b) Manager shall deliver to Lessee within
forty-five (45) days after the end of each of the first, second and third calendar quarters, quarterly financial statements in consistent 

  
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form and presentation to the annual combined balance sheet, income statement and statement of cash flows, exclusive of footnotes, accompanied by a reconciliation to the year-to-date monthly
property operations reports and capital expenditures report. 
 (c) Manager shall cooperate with the Independent Auditor so as
to allow the Independent Auditor to deliver to Lessee within 90 days after the end of each Fiscal Year a profit and loss statement showing the result of operation of the Hotels during such Fiscal Year, and the net operating income or loss, if any,
for such Fiscal Year and a balance sheet for the Hotels as of the close of such Fiscal Year. Manager shall, together with such statement, deliver to Lessee a statement of income and expenses for such Fiscal Year and a statement of balances in the
Hotel Account. Any disputes as to the contents of any such statements or any accounting matter hereunder, shall be determined by the Independent Auditor whose decision shall be final and conclusive on Manager and Lessee. 

Section 8.3. Periodic Delivery of Data in Electronic Form. Upon request by Lessee (but not more than twice in any calendar
year), Manager shall deliver to Lessee, within a reasonable period of time after such request, a copy of such Hotel Information as may be requested by Lessee (or if Lessee has previously made a request under this Section 8.3 for such
Hotel Information, a copy of all such Hotel Information collected since such previous request) collected or maintained by Manager, in such electronic format as Lessee may reasonably require. 

ARTICLE IX 

ANNUAL BUSINESS PLAN 
 Section 9.1. Preparation of Annual Business Plan. (a) Manager shall operate the Hotels pursuant to the annual business plan previously approved by Lessee for the remainder of calendar
year 2010. Thereafter, at least 15 days prior to the date on which Lessee is required to deliver the same to Lender pursuant to the Loan Documents for each Fiscal Year, Manager shall submit to Lessee an annual business plan for the succeeding Fiscal
Year. Each annual business plan proposed by Manager and approved by Lessee in accordance with this Article IX (an “Annual Business Plan”) shall include: an operating budget showing estimated Gross Operating Revenues,
department profits, operating expenses, and net operating income or loss for the forthcoming Fiscal Year for the Hotels; a marketing plan (for Fiscal Year 2012 and each Fiscal Year thereafter); a cash flow forecast; projected average daily room
rates; the budget for replacing Furniture, Fixtures and Equipment and for making capital improvements; and the basis of allocation of the Group Services, all in reasonable detail and, where appropriate, with the basis for all assumptions expressly
set forth, and otherwise complying with the applicable requirements set forth in the Operating Lease. 
 (b) Within 5 business
days after the proposed Annual Business Plan is submitted to Lessee, Lessee shall approve such proposed Annual Business Plan or notify Manager of any revisions therein which Lessee deems reasonably necessary. If Lessee approves the proposed Annual
Business Plan or if Lessee requires revisions to the proposed Annual Business Plan, and Manager does not make reasonable objections to such proposed revisions within 5 business days after receipt thereof, then such proposed Annual Business Plan,
together with the proposed revisions required by Lessee, shall be deemed thereafter to constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof. In the event

  
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Manager timely makes any reasonable objection to any proposed revision by Lessee to the proposed Annual Business Plan, Lessee and Manager shall cooperate with each other to resolve any questions
with respect to such revisions to the proposed Annual Business Plan and shall use their best efforts to agree upon an approved Annual Business Plan for the Hotels for the Fiscal Year in question prior to the date such Annual Business Plan must be
submitted to Lender under the Loan Documents. 
 Section 9.2. Annual Business Plan Disputes. In the event Lessee and
Manager are unable to agree upon an Annual Business Plan, or as to any revisions requested by Lessee to the proposed Annual Business Plan, for any Fiscal Year by the date on which such Annual Business Plan must be submitted to Lender under the Loan
Documents, Lessee shall prevail and the proposed Annual Business Plan shall be deemed approved as so revised by Lessee (and as the same may further be revised by Lessee to the extent required by Lender pursuant to the Loan Documents) and shall
thereafter constitute the Annual Business Plan for the Fiscal Year in question for all purposes hereof. No action shall be taken and no expenditures shall be made under any proposed Annual Business Plan unless and until the proposed Annual Business
Plan is approved by Lessee. 
 Section 9.3. Deviations from Annual Business Plan. Manager shall diligently pursue
all feasible measures to enable the Hotels to adhere to the Annual Business Plan. To the extent ascertainable in advance, Manager shall notify Lessee of any projected material variance from the Annual Business Plan. Notwithstanding anything herein
to the contrary, Manager is not warranting or guaranteeing in any respect that the actual operating results of the Hotels during the period covered by the Annual Business Plan will not materially vary from the projections described in the Annual
Business Plan. 
 ARTICLE X 
 MANAGER’S FEES AND REIMBURSEMENTS 
 Section 10.1. Management Fee.
During each Fiscal Year after the Management Commencement Date (and for a fraction of any partial Fiscal Year) during the term hereof, in consideration of the services Manager is to render under this Agreement, Manager will be paid a fee (the
“Management Fee”) equal to the sum of (a) 2.50% of all Gross Operating Revenues up to $500,000,000 for such Fiscal Year plus (b) 0.5% of all Gross Operating Revenues over $500,000,000 for such Fiscal Year. Subject
to the applicable provisions of the Loan Documents (including, without limitation, any Cash Management System), the Management Fee will be paid in installments by deducting such fee from Gross Operating Revenues immediately following each Accounting
Period at the rate of (i) 2.50% of Gross Operating Revenues for that Accounting Period until Gross Operating Revenues for the applicable Fiscal Year are equal to $500,000,000 and (ii) 0.5% of Gross Operating Revenues for that Accounting
Period thereafter. At the end of each Fiscal Year following the annual audit, an adjustment will be made, if necessary, and all sums due either Manager or Lessee shall be paid promptly. 

Section 10.2. Reimbursement of Certain Expenses. Notwithstanding the provisions of Article V (but subject to the
Annual Business Plan), Lessee shall reimburse Manager for all of the following property-level costs and expenses incurred in managing and operating the Hotels: (i) the salaries or wages of any officers, directors or employees of Manager

  
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or any of Manager’s Affiliates who shall be regularly or temporarily employed or assigned on a full-time basis at the Hotels; (ii) personnel providing in-house legal services to Manager
or any of Manager’s Affiliates in connection with matters involving the Hotels, which services shall be charged at rates equal to or less than Manager’s or such Affiliate’s costs associated with such services; (iii) the
out-of-pocket expenses of employees of Manager or any of Manager’s Affiliates incurred in connection with the management and operation of the Hotels; and (iv) certain other services (including general and administrative) (collectively, the
“Group Services”) best provided to Lessee and other lessees, owners or other clients of Manager and/or Manager’s Affiliates on a group rather than on an individual basis, the cost of which Group Services shall be allocated on a
fair and equitable basis among Lessee and such other lessees, owners or other clients benefiting therefrom in the manner described in the Annual Business Plan, including, without limitation, the following: (A) advertising, sales and marketing,
(B) payroll processed through Automatic Data Processing Inc. (or other companies providing similar services), and MIS support services; (C) accounting services; (D) revenue management; (E) facilities and purchasing services;
(F) information technology services; (G) reservation services; (H) travel agent commissions; and (I) Centralized Services. 
 Section 10.3. Technical Services. Service fees for technical services for the Hotels shall be paid to Manager or its Affiliates if Lessee requests such services of Manager, or any other
services beyond the scope of services to be provided pursuant to this Agreement. The amount of fees shall be agreed to by Lessee and Manager prior to commencing such services. Technical services include renovation coordination, design review,
construction management and related services. 
 Section 10.4. Incentive Management Fees. As additional
consideration for the services to be rendered by Manager under this Agreement, and in addition to the Management Fee and any reimbursements due hereunder, Manager will also be paid class B common units in ESH Hospitality Holdings LLC, a Delaware
limited liability company (the “Parent”), such class B common units to be allocated and transferred to certain employees of Manager under the HVM Management Incentive Plan in accordance with, and subject to the terms and conditions
set forth in, that certain Class B Units Contribution Agreement, dated as of the date hereof by, and among Manager, Lessee, HVM Manager, and Parent (as the same may be amended, modified or supplemented from time to time). 

Section 10.5. Other Hotel Revenue and Expenses. Lessee acknowledges that Manager and Manager’s Affiliates have the right
to, and currently do, manage, operate and otherwise provide services to hotel and lodging facilities and enterprises other than the Hotels. Each of Lessee and Manager acknowledges and agrees that any and all income derived from, and expenses
incurred by, Manager or any of Manager’s Affiliates, directly or indirectly, from the management and operation of, and provision of services to, such other hotel and lodging facilities and enterprises shall be, as between Lessee (on the one
hand), and Manager and Manager’s Affiliates (on the other hand), solely for the account of Manager and/or Manager’s Affiliates and shall in no event be borne by or credited to Lessee. 

  
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 ARTICLE XI 
 INSURANCE 
 Section 11.1. Insurance Coverage. Lessee, or Manager at
the direction of Lessee, shall provide and maintain, at Lessee’s cost and expense and in Lessee’s and Owner’s name, insurance sufficient to furnish to Lessee, Owner and Manager reasonable and adequate protection in the management and
operation of the Hotels. All insurance shall be in the name of Lessee, Owner and Manager as the insured and shall contain riders and endorsements adequately protecting the interests of Lessee, Manager and Owner as it may appear including, without
limitation, provisions for at least 20 days’ notice to Manager, Lessee and Owner of cancellation or of any material change therein. Prior to the Management Commencement Date and the commencement of each Fiscal Year thereafter, Manager shall
furnish Lessee and each Owner with certificates evidencing the insurance coverages required pursuant to this Agreement and with evidence of the payment of premiums therefor. 
 Section 11.2. Waiver of Subrogation; Lessee Assumes Risk of Adequacy. Lessee shall have all policies of insurance provide that the insurance company will have no right of subrogation against
either party hereto, their agents or employees. Lessee assumes all risks in connection with the adequacy of any insurance or self-insurance program. 
 ARTICLE XII 
 TERM OF AGREEMENT AND TERMINATION 

Section 12.1. Term. This Agreement shall be for a period commencing on Management Commencement Date and ending on
December 31, 2025 (the “Expiration Date”), unless sooner terminated as hereinafter provided. 

Section 12.2. Early Termination. This Agreement can be terminated by either party hereto at its option for any or no reason.
If either party exercises its right to terminate this Agreement prior to the Expiration Date, the rights and obligations of the parties will cease (other than those that expressly survive the termination of this Agreement) except as to fees and
reimbursements due Manager or its Affiliates or Lessee pursuant to this Agreement, including without limitation, Article X, and claims for non-performance by Lessee against Manager and other claims of liabilities of either party which accrued or
arose before termination. 
 Section 12.3. Termination Procedure. 

(a) If a termination occurs pursuant to Section 12.2, the party electing to terminate shall give the other party at least 60
days’ prior written notice of such election, specifying the date of such termination. On the date specified in such notice, Manager shall cease all activities at the Hotels and shall have no further obligations under this Agreement except those
obligations which specifically survive any termination hereof. 
 (b) If one or more (but less than substantially all) of the
Hotels are (i) sold, conveyed or otherwise transferred to another party, (ii) damaged or destroyed by casualty and Owner has elected not to restore, or (iii) taken in a condemnation proceeding, then this Agreement shall automatically
terminate with respect to such Hotel(s) from the date of such sale, casualty or condemnation but shall continue with respect to the other Hotels in accordance with the terms of this Agreement. 

  
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 (c) Prior to the date Manager ceases activities at the Hotels, Manager shall be paid any and
all fees earned or expenses due it pursuant to this Agreement, and as soon thereafter as is reasonably practicable, pay any fees or expenses upon the final accounting in Section 12.4(a), and Manager shall cooperate with Lessee (and
Owner, if applicable) in effectuating an orderly transition to any new manager of the Hotels (or to any new owner, or to Lessee or Owner, or to any of their respective designee’s, as the case may be) so as to avoid any interruption in the
rendering of services at the Hotels and take such other actions as are required under Section 12.4. 

Section 12.4. Obligations Following Termination. Upon the expiration or earlier termination of this Agreement for any reason,
Manager’s authority to act for the Lessee or the Owners shall immediately cease and Manager shall do, and execute and/or deliver to Lessee, the following with respect to the Hotels, all of which shall be done, and executed and/or delivered to
or as directed by Lessee, promptly upon the expiration or earlier termination hereof or as soon thereafter as is reasonably practicable. 
 (a) A final accounting, reflecting receipts and disbursements in connection with the operations of the Hotels during the current Fiscal Year through the date of termination. 

(b) Any balance of monies of Lessee, including, without limitation, any undisbursed funds in the Hotel Account. 

(c) All Hotel Information (including all Hotel Information stored in any electronic format), service contracts, reservations, leases,
receipts for deposits, unpaid bills and other papers or documents which pertain to the Hotels, including, but not limited to, all original documents. In addition, Manager shall assist Lessee (or its designee) in migrating and porting any Hotel
Information stored in electronic format from the system or systems used by Manager to any new system or systems designated employed by Lessee or its designee, including, to the extent necessary, parsing and decoding the existing content and format
of such electronic data to facilitate such transfer, all such reasonable out-of-pocket costs to be reimbursed to Manager. 
 (d)
All documents and instruments necessary to transfer to Lessee or its designee or nominee, to the extent transferable, all Operating Licenses held by Manager necessary to operate the Hotels. 

(e) Manager will assign to Lessee or its nominee, and Lessee and its nominee, if any, will assume, all space leases and concession
agreements in effect with respect to the Hotels then in Manager’s, rather than Lessee’s, name, except for blanket concessions affecting other hotels or conference centers operated by Manager or its Affiliates. 

(f) Manager will take such further actions as Lessee may reasonably require to assure an orderly transition of the Hotels’
operations, including, without limitation, providing inventories of Furniture, Fixtures and Equipment, Operating Equipment and Operating Supplies. 
 (g) Any and all Furniture, Fixtures and Equipment (along with then existing warranties, operating instructions, and service contracts), Operating Equipment, Operating Supplies, keys, locks and safe
combinations, reservation lists, ledgers, bank statements for the Hotel Account, budgets, accounting books and records, insurance policies, bonds and other documents, memoranda, schedules, lists, contracts, agreements, leases, licenses,
correspondence, and other items required for the operation of the Hotels. 

  
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 (h) Manager shall remove all of Manager’s personal property from the Hotel premises.

 (i) Without limiting the provisions of clause (d) above, Manager shall cooperate with Lessee to transfer all liquor
licenses to, or to obtain new liquor licenses, in the name of Lessee or Lessee’s designee. Manager shall make commercially reasonable efforts to provide interim liquor licenses for up to one hundred eighty (180) days to Lessee or
Lessee’s designee, provided that Manager may condition such provision on its receipt of market standard fees and a commercially reasonable indemnity from such party with respect to such claims as may arise in connection with the sale of liquor
from Hotels. 
 (j) Without limiting any of the foregoing, Manager shall, for a period of ninety (90) days after such
expiration or earlier termination of this Agreement, make itself available at all reasonable times to consult with and advise Lessee or Lessee’s designee regarding the management, operation and maintenance of the Hotels; in such event, Lessee,
Owner or the purchaser of the Hotels shall reimburse Manager for all of Manager’s reasonable out-of-pocket costs and expenses incurred during such 90-day period in connection with providing such consulting and advisory services, including,
without limitation, the appropriately allocable portion of Manager’s payroll expenses for personnel involved in assisting with such transition. 
 Section 12.5. Survival. The provisions of Sections 12.3 and 12.4 shall survive the expiration or earlier termination of this Agreement. 

ARTICLE XIII 

REPRESENTATIONS AND COVENANTS 
 Section 13.1. Lessee’s Representations. Lessee covenants, represents and warrants as follows: (a) as of the date hereof, Lessee will be the tenant under the Operating Lease with
respect to the Hotels and has full power and authority to enter into this Agreement; (b) throughout the term of this Agreement and except as provided in the Operating Lease, Lessee will pay, keep, observe and perform all payments, terms,
covenants, conditions and obligations under any lease or other concession and any real estate taxes or assessments covering or affecting the Hotels; (c) the execution of this Agreement is permitted by the Articles of Incorporation, By-Laws or
other organizational documents of Lessee and this Agreement has been duly authorized, executed and delivered and constitutes the legal, valid and binding obligation of Lessee; (d) there is no claim, litigation, proceeding or governmental
investigation pending, or as far as is known to Lessee, threatened, against or relating to Lessee, the properties or business of Lessee or the transactions contemplated by this Agreement that does, or may reasonably be expected to, materially and
adversely affect the ability of Lessee to enter into this Agreement or to carry out its obligations under this Agreement; and (e) neither the consummation of the actions contemplated by this Agreement on the part of Lessee to be performed, or
the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or
undertaking to which Lessee is a party or by which it is bound. 

  
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 Section 13.2. Manager’s Representations. Manager covenants, represents and
warrants as follows: (a) the execution of this Agreement is permitted by the limited liability company agreement or other organizational documents of Manager and this Agreement has been duly authorized, executed and delivered and constitutes
the legal, valid and binding obligation of Manager enforceable in accordance with its terms; (b) there is no claim, litigation, proceedings or governmental investigation pending, or as far as is known to Manager, threatened, against or relating
to Manager, the properties or business of Manager or the transactions contemplated by this Agreement that does, or may reasonably be expected to, materially and adversely affect the ability of Manager to enter into this Agreement; (c) neither
the consummation of the actions contemplated by this Agreement on the part of Manager to be performed, nor the fulfillment of the terms, conditions and provisions of this Agreement, conflicts with or will result in the breach of any of the terms,
conditions or provisions of, or constitute a default under, any agreement, indenture, instrument or undertaking to which Manager is a party or by which it is bound; and (d) Manager shall at all times qualify as an “eligible independent
contractor” as defined in Section 856(d)(9) of the Code; and (e) subject to obtaining Lender’s consent to the extent required under the Loan Agreement and so long as any amounts under the Loan are outstanding, this Agreement
shall be modified in the event that it is reasonably determined by the Owners under the Operating Lease that the terms of this Agreement cause the Rent (as defined in the Operating Lease) to fail to qualify as “rents from real property”
within the meaning of Section 856(d) of the Code; provided however, no such modification shall affect the amount of the Management Fee or the practical realization of the rights and benefits of Manager hereunder. 

Section 13.3. Manager’s Covenants. From the Management Commencement Date until the Expiration Date or earlier
termination of this Agreement, Manager covenants that it shall satisfy the following requirements: (a) Manager shall not permit wagering activities to be conducted at or in connection with the Hotels by any Person who is engaged in the business
of accepting wagers and who is legally authorized to engage in such business at or in connection with the Hotels; (b) Manager shall not own, actually or constructively (within the meaning of Section 856(d)(5) of the Code), more than
thirty-five percent (35%) of the shares of beneficial interest of ESH Hospitality; (c) no more than thirty-five percent (35%) of the ownership interest in Manager’s outstanding stock, membership interests, assets or net profits
shall be owned, actually or constructively (within the meaning of Section 856(d)(5) of the Code), by one or more persons owning, actually or constructively (within the meaning of Section 856(d)(5) of the Code), thirty-five percent
(35%) or more of the outstanding shares of beneficial interest of ESH Hospitality; (d) Manager shall not sublet the Hotels or enter into any similar arrangement on any basis such that the rental or other amounts to be paid by the sublessee
thereunder would be based, in whole or in part, on either (i) the net income or profits derived by the business activities of the sublessee or (ii) any other formula such that any portion of the rent would fail to qualify as “rents
from real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto; (e) Manager shall operate the Hotels such that each Hotel qualifies as a “qualified lodging facility” as
defined in Section 856(d)(9)(D) of the Code; and (f) Manager shall be (or shall be related, within the meaning of Section 856(d)(9)(F) of the Code, to a person that is) actively engaged in the trade or business of operating
“qualified lodging facilities” (within the meaning of Section 856(d)(9)(D) of the Code) for a Person who is not a “related person” (within the meaning of Section 856(d)(9)(F) of the Code) with respect to ESH Hospitality
or Lessee. 

  
 21 

 ARTICLE XIV 
 ASSIGNMENT 
 Neither party shall assign or transfer or permit the assignment of
transfer of this Agreement without the prior written consent of the other. In the event of consent by either party to an assignment of this Agreement by the other, no further assignment shall be made without the express consent in writing of such
party, unless such assignment may otherwise be made without such consent pursuant to the terms of this Agreement. An assignment by either Lessee or Manager of its interest in this Agreement shall not relieve Lessee or Manager, as the case may be,
from their respective obligations hereunder unless the assignee accepts full responsibility for performance of the same. 

ARTICLE XV 

CONFIDENTIALITY 

The matters set forth in this Agreement are strictly confidential and Lessee and Manager will make every reasonable effort to ensure that
the information is not disclosed to any person or entities (including the press) other than those persons or entities needed to carry out the provisions of this Agreement without first consulting with and obtaining the consent of the other party,
which consent shall not be unreasonably withheld. The provisions of this Article XV shall survive the expiration or earlier termination of this Agreement. 
 ARTICLE XVI 
 INDEMNIFICATION AND LIMITATION OF LIABILITY 

Section 16.1. Lessee’s Indemnification. Lessee shall hold harmless, indemnify and defend Manager and its Affiliates and
their respective agents, employees, officers, directors and shareholders from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to, attorneys’ fees for pre-trial, trial and appellate
proceedings, accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from Manager’s activities performed pursuant to this Agreement, any franchise agreement, any past or future building code or
life/safety code violations, and injury to person(s) and damage to property or business by reason of any cause whatsoever in and about the Hotels or elsewhere, and any requirement or award relating to course of employment, working conditions, wages
and/or compensation of employees or former employees at the Hotels, unless such injury or damage is caused by the gross negligence or willful misconduct or fraud on the part of Manager, its agents, employees, representatives or independent
contractors or by any breach of Manager’s obligations under this Agreement. Lessee’s foregoing indemnification obligation to indemnify Manager and its Affiliates shall extend to any claims between Lessee and Manager or its Affiliates
arising out of this Agreement or otherwise. Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 

  
 22 

 Section 16.2. Manager’s Indemnification. Manager shall hold harmless,
indemnify and defend Lessee and its Affiliates, and their respective agents, employees, officers, directors and shareholders, from and against all claims (administrative or judicial), damages, losses and expenses (including, but not limited to,
attorneys’ fees for pre-trial, trial and appellate proceedings accounting fees, appraisal fees and consulting and expert witness fees) arising out of or resulting from Manager’s gross negligence, willful misconduct or fraud or from
Manager’s breach of its obligations under this Agreement. Manager’s foregoing indemnification obligation to indemnify Lessee and its Affiliates shall extend to any claims between Manager and Lessee or its Affiliates arising out of this
Agreement or otherwise. Any indemnification shall apply regardless of whether or not said claim, damage, loss or expense is covered by insurance as herein provided. 
 Section 16.3. Indemnification Procedure. Upon the occurrence of an event giving rise to indemnification, the party seeking indemnification shall notify the other party hereto and provide the
other party hereto with copies of any documents reflecting the claim, damage, loss or expense. The party seeking indemnification is entitled to engage such attorneys and other persons to defend against the claim, damage, loss or expense, as it may
choose. The party providing indemnification shall pay the reasonable charges and expenses of such attorneys and other persons on a current basis within 20 days of submission of invoices or bills. Except as otherwise provided in the Operating Lease,
if any claim, lawsuit or action (administrative or judicial) is maintained against Manager, Lessee or the Hotels due to allegations or actions arising prior to the Management Commencement Date and Manager had no involvement with the Hotels prior to
such date, Lessee shall bear full and complete responsibility for the defense of Lessee and Manager, specifically including all legal fees and necessary and attendant expenses for the vigorous defense and representation of the interests of Manager
(for pre-trial, trial and appellate proceedings) and Lessee. Lessee shall support and pay for all legal fees and representations necessary to remove Manager from any claim, action (administrative or judicial), or lawsuit covered by the immediately
preceding sentence. 
 Section 16.4. Good Faith Judgment. To the extent that any provision of this Agreement leaves
something to the discretion of Manager, Manager will not be liable for any action taken by Manager in the exercise of its discretion as long as in exercising such discretion, Manager was using its good faith judgment. 

Section 16.5. Survival. The provisions of this Article XVI shall survive the expiration or earlier termination of this
Agreement. 
 ARTICLE XVII 
 MISCELLANEOUS 
 Section 17.1. Severability. In the event that any
portion of this Agreement shall be declared invalid by order, decree or judgment of a court, this Agreement shall be construed as if such portion had not been inserted herein except when such construction would operate as an undue hardship to
Manager or Lessee or constitute a substantial deviation from the general intent and purpose of said parties as reflected in this Agreement. The failure of either party to insist upon a strict performance of any of the terms or provisions of this
Agreement or to exercise any option, right or remedy herein contained, shall not be construed as a waiver or as a 

  
 23 

 
relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect. No waiver by either party of any term or provision
hereof shall be deemed to have been made unless expressed in writing and signed by such party. 
 Section 17.2. No
Partnership. The relationship of Lessee and Manager shall be that of principal and independent contractor. Nothing contained in this Agreement shall be construed to create a partnership or joint venture between Lessee and Manager or their
respective Affiliates or successors in interest. In the performance of its duties in the management and operation of the Hotels, Manager shall act solely as an independent contractor. It is expressly covenanted that this Agreement is no more than an
agreement for the rendering of services by Manager on behalf of Lessee in the operation and management of the Hotels. Manager shall not be Lessee’s fiduciary, nor shall Manager owe Lessee a fiduciary duty. 

Section 17.3. Meetings. Lessee and Manager shall meet with each other from time to time so that Manager and Lessee may
discuss the status of operations and future plans, recommendations and projections. The meetings will be held at mutually convenient dates and locations. 
 Section 17.4. Consents. Except as herein otherwise provided, whenever in this Agreement the consent or approval of Lessee or Manager is required, such consent or approval shall not be
unreasonably withheld or delayed. Such consent or approval shall be in writing only and shall be duly executed by an authorized officer or agent of the party granting such consent or approval. 

Section 17.5. Applicable Law. This Agreement shall be construed under, and governed in accordance with, the laws of the State
of New York. 
 Section 17.6. Successors Bound. This Agreement shall be binding upon and inure to the benefit of
Lessee, its successors and assigns, and shall be binding and inure to the benefit of Manager and its permitted assigns. 

Section 17.7. Headings. Headings of Articles and Sections are inserted only for convenience and are in no way to be construed
as a limitation on the scope of the particular Articles or Sections to which they refer. 
 Section 17.8. Incorporation
of Recitals. The recitals set forth in the preamble of this Agreement are hereby incorporated into this Agreement as if fully set forth herein. 

  
 24 

 Section 17.9. Notices. Notices, statements and other communications to be given
under the terms of this Agreement shall be in writing and (a) delivered by hand against receipt, (b) sent by certified or registered mail or by Federal Express or other similar overnight mail service, return receipt requested or
(c) sent by telecopier (with answer back acknowledged), (or at such other address as from time to time designated by the party receiving the notice): 
  

			
	If to Lessee:	  	c/o Centerbridge Partners, L.P.
		  	375 Park Avenue
		  	New York, New York 10152
		  	Attention: William D. Rahm
		  	Facsimile No.: (212) 672-5001
		  	Attention: General Counsel and Scott Hopson
		  	Facsimile No.: (212) 672-4501 and (212) 672-4526
		
	and to:	  	c/o Paulson & Co. Inc.
		  	1251 Avenue of the Americas, 50th Floor
		  	New York, New York 10020
		  	Attention: Michael Barr
		  	Facsimile No.: (212) 351-5892
		  	Attention: General Counsel
		  	Facsimile No.: (212) 977-9505
		
	and to:	  	c/o The Blackstone Group
		  	345 Park Avenue
		  	New York, New York 10154
		  	Attention: A.J. Agarwal
		  	Facsimile No.: (212) 583-5725
		  	Attention: General Counsel
		  	Facsimile No.: (646) 253-8983
		
	If to Manager:	  	100 Dunbar Street
		  	Spartanburg, South Carolina 29306
		  	Attention: President
		  	Facsimile No.: (864) 573-2090
		  	Attention: General Counsel
		  	Facsimile No.: (864) 573-1665

 Section 17.10. Entire Agreement; Amendments. This Agreement, together with other writings
signed by the parties hereto expressly stated to be supplementing this Agreement and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof. This Agreement may be amended, modified or changed only by a writing signed by the parties hereto. 

Section 17.11. Manager’s Authority Limited. Manager’s authority shall be derived wholly from this Agreement, and
Manager has no authority to act for or represent Lessee except as herein specified. 
 Section 17.12. Exclusive
Compensation. The payments to be made to Manager hereunder shall be in lieu of all other or further compensation or commissions of any nature whatsoever for the services described herein and this Agreement shall be considered as a special
agreement between the parties hereto covering the appointment and compensation of Manager to the exclusion of any other method of compensation unless otherwise agreed to in writing. 

  
 25 

 Section 17.13. Property Rights. This Agreement and the rights created hereunder
are personal to Lessee and Manager and shall not create in favor of Manager any property rights in the Hotels. 

Section 17.14. Attorneys’ Fees. In the event of any litigation arising out of this Agreement, the prevailing party shall
be entitled to reasonable costs and expenses, including without limitation, attorneys’ fees. 
 Section 17.15.
Complimentary/Discount Policies. Manager will be permitted to provide customary gratuitous accommodations, services and amenities to such employees and representatives of Manager visiting the Hotels in accordance with Manager’s normal
policies, provided that such employees shall in no way displace the Hotels’ third-party business. 
 Section 17.16.
No Third Party Beneficiary. Nothing herein contained shall be understood or construed to create or grant any third party benefits, rights or property interests unless the person claiming such rights is expressly identified herein and the
rights claimed are expressly set forth herein. Notwithstanding the foregoing, it is acknowledged and agreed that the Licensor is an intended third-party beneficiary of Section 3.12. 

Section 17.17. REOC. The parties acknowledge that Lessee is a direct or indirect controlled subsidiary of an entity, Parent,
that is intended to qualify as a “real estate operating company” (a “REOC”) within the meaning of the U.S. Department of Labor plan assets regulation (Section 2510.3-101, Part 2510 of Chapter XXV, Title 29 of the Code of
Federal Regulations) and that it is intended that Lessee will have the rights, pursuant to this Agreement, as would be reasonably necessary to result in the qualification of Parent as a REOC. Without limiting the generality of the foregoing,
notwithstanding any other provision of this Agreement, without prejudice to the other rights provided to Lessee under this Agreement, Manager agrees to: (i) permit Lessee and Parent to visit and inspect the Hotels and inspect and copy the books
and records of Manager, at such times as Lessee shall reasonably request; (ii) periodically (at least quarterly) provide Lessee and Parent with information and reports regarding Manager’s operation and management of the Hotels and the
performance of its duties under this Agreement and with respect to renovations, alterations, general maintenance, repairs and development activities that Manager has engaged in or intends to engage in with respect to the Hotels and their
surroundings; (iii) periodically (at least quarterly) consult with Lessee and Parent in advance with respect to any significant leasing, management and development matters, as appropriate, including, without limitation, with respect to matters
relating to renovations, alterations, general maintenance, repairs and development activities with respect to the Hotels and their surroundings and the management, participatory and development rights retained by Lessee under this Agreement; and
(iv) to provide Lessee and Parent with such other rights as may reasonably be determined by Lessee to be necessary to enable Parent to qualify as a REOC, provided the rights described in clauses (i)-(iv) above do not materially adversely
affect (X) Manager’s ability to perform its duties under this Agreement or the economic benefits enjoyed by Manager under this Agreement or (Y) the status of ESH Hospitality as a real estate investment trust under the Code. Manager
agrees to consider, in good faith, the recommendations of Lessee in connection with the matters on which it is consulted as described above. 

  
 26 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 27 

 IN WITNESS HEREOF, the parties hereto have caused this Agreement to be executed and
delivered as of the date first above written. 
  

							
	LESSEE:
	
	 ESA P PORTFOLIO OPERATING LESSEE INC.,
 a Delaware corporation

		
	By:	 	

		 	  

		 	Name:	 	William D. Rahm
		 	Title:	 	Vice President and Secretary
	
	MANAGER:
	
	HVM L.L.C., a Delaware limited liability company
		
	By:	 	HVM Manager 2 LLC, a Delaware limited liability company, its manager
			
		 	By:	 	

		 		 	  

		 		 	Name:	 	Ty Wallach
		 		 	Title:	 	Vice President and Secretary

 [Signature page to Management Agreement – ESA P Portfolio Operating Lessee Inc.] 

 SCHEDULE A 
 HOTELS 
 (see attached) 

					
	 Site

#
	  	 Address
	  	 Owner

	None	  	812 Barrow Street, Anchorage, AK	  	ESA P Portfolio L.L.C.
	9853	  	700 East 34th Avenue, Anchorage, AK	  	ESA P Portfolio L.L.C.
	9857	  	108 East 8th Avenue, Anchorage, AK	  	ESA P Portfolio L.L.C.
	9858	  	4580 Old Airport Way, Fairbanks, AK	  	ESA P Portfolio L.L.C.
	9859	  	1800 Shell Simmons Drive, Juneau, AK	  	ESA P Portfolio L.L.C.
	23	  	5115 Carmichael Rd., Montgomery, AL	  	ESA P Portfolio L.L.C.
	25	  	101 Cahaba Park Cir., Birmingham, AL	  	ESA P Portfolio L.L.C.
	27	  	40 State Farm Pkwy., Birmingham, AL	  	ESA P Portfolio L.L.C.
	123	  	4751 Governor’s House Dr., Huntsville, AL	  	ESA P Portfolio L.L.C.
	124	  	2491 Eastern Blvd, Montgomery, AL	  	ESA P Portfolio L.L.C.
	155	  	508 Spring Hill Plaza Ct., Mobile, AL	  	ESA P Portfolio L.L.C.
	9600	  	12 Perimeter Park South, Birgmingham, AL	  	ESA P Portfolio L.L.C.
	51	  	10800 Kanis Road, Little Rock, AR	  	ESA P Portfolio L.L.C.
	145	  	600 Hardin Road, Little Rock, AR	  	ESA P Portfolio L.L.C.
	6110	  	5000 Luvene Avenue, Springdale, AR	  	ESA P Portfolio L.L.C.
	316	  	3421 E. Elwood St., Phoenix, AZ	  	ESA P Portfolio L.L.C.
	317	  	455 W. Baseline Rd., Mesa, AZ	  	ESA P Portfolio L.L.C.
	414	  	7345 W. Bell Rd., Peoria, AZ	  	ESA P Portfolio L.L.C.
	851	  	4861 W. McDowell Rd, Phoenix	  	ESA P Portfolio L.L.C.
	902	  	14245 S. 50th St., Phoenix, AZ	  	ESA P Portfolio L.L.C.
	942	  	15501 N. Scottsdale Rd, Scottsdale AZ	  	ESA P Portfolio L.L.C.

 

					
	 Site

#
	  	 Address
	  	 Owner

	977	  	5050 E. Grant Rd, Tucson, AZ	  	ESA P Portfolio L.L.C.
	979	  	4800 S. Butterfield Dr., Tucson, AZ	  	ESA P Portfolio L.L.C.
	8515	  	20827 N. 27th Ave, Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9601	  	1920 W. Isabella, Mesa, AZ	  	ESA P Portfolio L.L.C.
	9602	  	2102 West Dunlap Avenue, Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9603	  	2165 West 15th Street, Tempe, AZ	  	ESA P Portfolio L.L.C.
	9604	  	3560 North Marshall Way, Scottsdale, AZ	  	ESA P Portfolio L.L.C.
	9800	  	217 W. Osborn Rd, Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9801	  	5035 E. Chandler Blvd, Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9802	  	11211 N. Black Canyon Hwy, Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9803	  	4357 East Oak St, Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9837	  	5235 N. 16th St., Phoenix, AZ	  	ESA P Portfolio L.L.C.
	9838	  	10660 N. 69th St., Scottsdale, AZ	  	ESA P Portfolio L.L.C.
	150	  	5375 Farwell Place, Fremont, CA	  	ESA P Portfolio L.L.C.
	308	  	18602 S Vermont Ave, Gardena, CA	  	ESA P Portfolio L.L.C.
	309	  	1000 Lead Hill Blvd, Roseville, CA	  	ESA P Portfolio L.L.C.
	355	  	14775 Firestone Blvd, La Mirada, CA	  	ESA P Portfolio L.L.C.
	356	  	3525 Torrance Blvd, Torrance, CA	  	ESA P Portfolio L.L.C.
	361	  	3220 Buskirk Ave, Pleasant Hill, CA	  	ESA P Portfolio L.L.C.
	396	  	20251 Lake Forest Dr, Lake Forest, CA	  	ESA P Portfolio L.L.C.
	421	  	11299 Point East Dr, Rancho Cordova, CA	  	ESA P Portfolio L.L.C.

 
 

  
 1 

					
	 Site

#
	  	 Address
	  	 Owner

	486	  	7135 N. Fresno St, Fresno, CA	  	ESA P Portfolio L.L.C.
	494	  	5050 Skylab West Circle, Huntington Beach, CA	  	ESA P Portfolio L.L.C.
	854	  	24940 W. Pico Canyon Road, Stevenson, CA	  	ESA P Portfolio L.L.C.
	857	  	5355 Farwell Place, Fremont, CA	  	ESA P Portfolio L.L.C.
	898	  	1000 Hillview Court, Milpitas, CA	  	ESA P Portfolio L.L.C.
	903	  	10721 White Rock Rd, Rancho Cordova, CA	  	ESA P Portfolio L.L.C.
	911	  	3990 East Inland Empire Blvd, Ontario, CA	  	ESA P Portfolio L.L.C.
	916	  	401 E Santa Clara St, Arcadia, CA	  	ESA P Portfolio L.L.C.
	919	  	3318 California Ave, Bakersfield, CA	  	ESA P Portfolio L.L.C.
	931	  	2380 Nissen Drive, Livermore, CA	  	ESA P Portfolio L.L.C.
	932	  	4105 E. Willow St, Long Beach, CA	  	ESA P Portfolio L.L.C.
	936	  	3825 Rosin Court, Sacramento, CA	  	ESA P Portfolio L.L.C.
	939	  	2100 Harvard Street, Sacramento, CA	  	ESA P Portfolio L.L.C.
	951	  	3190 Vista Way, Oceanside, CA	  	ESA P Portfolio L.L.C.
	974	  	601 W. Bonita Ave, San Dimas, CA	  	ESA P Portfolio L.L.C.
	976	  	2600 Corby Ave, Santa Rosa, CA	  	ESA P Portfolio L.L.C.
	981	  	4870 Calle Real, Santa Barbara, CA	  	ESA P Portfolio L.L.C.
	8523	  	19200 Harborgate Way, Torrance, CA	  	ESA P Portfolio L.L.C.
	8525	  	3460 West Shaw Avenue, Fresno, CA	  	ESA P Portfolio L.L.C.
	8546	  	605 Jarvis Drive, Morgan Hill, CA	  	ESA P Portfolio L.L.C.
	8561	  	1260 South Loop Rd, Alameda, CA	  	ESA P Portfolio L.L.C.

 

					
	 Site

#
	  	 Address
	  	 Owner

	8573	  	2087 Hotel Circle South, San Diego, CA	  	ESA P Portfolio L.L.C.
	8574	  	4500 Dublin Blvd, Dublin, CA	  	ESA P Portfolio L.L.C.
	8580	  	20205 Ventura Blvd, Woodland, CA	  	ESA P Portfolio L.L.C.
	8581	  	6531 S. Sepulveda Blvd, Los Angeles, CA	  	ESA P Portfolio L.L.C.
	8584	  	100 Fountain Grove Pkwy, Santa Rosa, CA	  	ESA P Portfolio L.L.C.
	8594	  	31950 Dyer St, Union City, CA	  	ESA P Portfolio L.L.C.
	8621	  	1350 Marina Village Pkwy, Alameda, CA	  	ESA P Portfolio L.L.C.
	8644	  	3650 Mandela Pkwy, Emeryville, CA	  	ESA P Portfolio L.L.C.
	8654	  	46312 Mission Blvd, Fremont, CA	  	ESA P Portfolio L.L.C.
	8718	  	2131 Gold Street, San Jose, CA	  	ESA P Portfolio L.L.C.
	8722	  	6199 San Ignacio Avenue, San Jose, CA	  	ESA P Portfolio L.L.C.
	8724	  	3170 Garrity Way, Richmond, CA	  	ESA P Portfolio L.L.C.
	8738	  	1742 S. Clementine Street, Anaheim, CA	  	ESA P Portfolio L.L.C.
	8743	  	2100 Camino Ramon, San Ramon, CA	  	ESA P Portfolio L.L.C.
	8747	  	6189 San Ignacio Avenue, San Jose, CA	  	ESA P Portfolio L.L.C.
	8750	  	4881 Birch St., Newport Beach, CA	  	ESA P Portfolio L.L.C.
	8754	  	2200 Empire Ave, Burbank, CA	  	ESA P Portfolio L.L.C.
	8787	  	3860 Murphy Canyon Road, San Diego, CA	  	ESA P Portfolio L.L.C.
	8794	  	2844 W. March Lane, Stockton, CA	  	ESA P Portfolio L.L.C.
	8795	  	799 Orange Drive, Vacaville, CA	  	ESA P Portfolio L.L.C.
	8806	  	120 Sem Lane, Belmont, CA	  	ESA P Portfolio L.L.C.

 
 

  
 2 

					
	 Site

#
	  	 Address
	  	 Owner

	8808	  	1635 W. Katella Ave., Orange, CA	  	ESA P Portfolio L.L.C.
	8821	  	22711 Oakcrest Circle, Yorba Linda, CA	  	ESA P Portfolio L.L.C.
	8828	  	1400 E. Tahquitz Canyon Way, Palm Springs, CA	  	ESA P Portfolio L.L.C.
	8831	  	1050 Grand Avenue, Carlsbad, CA	  	ESA P Portfolio L.L.C.
	8844	  	27622 Jefferson Ave., Temecula, CA	  	ESA P Portfolio L.L.C.
	8850	  	1031 N. Pacificenter Drive, Anaheim, CA	  	ESA P Portfolio L.L.C.
	8852	  	4325 Corporate Center Ave, Chino, CA	  	ESA P Portfolio L.L.C.
	8855	  	2498 Steams St., Simi Valley, CA	  	ESA P Portfolio L.L.C.
	8863	  	2201 Longport Court, Elk Grove	  	ESA P Portfolio L.L.C.
	8881	  	2526 Pavilion Pkwy., Tracy, CA	  	ESA P Portfolio L.L.C.
	8916	  	1019 Oliver Rd, Fairfield, CA	  	ESA P Portfolio L.L.C.
	8931	  	401 E. Albertoni St., Carson, CA	  	ESA P Portfolio L.L.C.
	8986	  	795 Stillwater Rd, W. Sacramento, CA	  	ESA P Portfolio L.L.C.
	9011	  	19325 Londelius St., Northridge, CA	  	ESA P Portfolio L.L.C.
	9605	  	46080 Fremont Blvd, Fremont, CA	  	ESA P Portfolio L.L.C.
	9606	  	330 Cypress Drive / 850 Bellew Drive, Milpitas, CA	  	ESA P Portfolio L.L.C.
	9607	  	190 East El Camino Real, Mountain View, CA	  	ESA P Portfolio L.L.C.
	9608	  	2810 Gateway Oaks Drive, Sacramento, CA	  	ESA P Portfolio L.L.C.
	9609	  	3 Circle Star Way, San Carlos, CA	  	ESA P Portfolio L.L.C.
	9610	  	1560 North First Street, San Jose, CA	  	ESA P Portfolio L.L.C.

 

					
	 Site

#
	  	 Address
	  	 Owner

	9611	  	1830 Gateway Drive, San Mateo, CA	  	ESA P Portfolio L.L.C.
	9612	  	18000 San Ramon Valley Blvd, San Ramon, CA	  	ESA P Portfolio L.L.C.
	9613	  	1255 Orleans Drive, Sunnyvale, CA	  	ESA P Portfolio L.L.C.
	9614	  	1377 W Glenoaks Blvd, Glendale, CA	  	ESA P Portfolio L.L.C.
	9615	  	1910 E Mariposa Ave, El Segundo, CA	  	ESA P Portfolio L.L.C.
	9616	  	930 S Fifth Ave, Monrovia, CA	  	ESA P Portfolio L.L.C.
	9617	  	3995 Carson St, Torrance, CA	  	ESA P Portfolio L.L.C.
	9618	  	3050 E. Imperial Highway, Brea, CA	  	ESA P Portfolio L.L.C.
	9619	  	5990 Corporate Avenue, Cypress, CA	  	ESA P Portfolio L.L.C.
	9620	  	30 Technology Dr, Irvine, CA	  	ESA P Portfolio L.L.C.
	9621	  	9880 Pacific Heights Boulevard, San Diego, CA	  	ESA P Portfolio L.L.C.
	9622	  	7444 Mission Valley Road, San Diego, CA	  	ESA P Portfolio L.L.C.
	9839	  	4555 Chabot Drive, Pleasanton, CA	  	ESA P Portfolio L.L.C.
	9840	  	55 E. Brokaw Road, San Jose, CA	  	ESA P Portfolio L.L.C.
	9854	  	3600 Chester Lane, Bakersfield, CA	  	ESA P Portfolio L.L.C.
	9855	  	1775 Francisco Blvd, San Rafael, CA	  	ESA P Portfolio L.L.C.
	307	  	9604 E. Easter Ave, Englewood, CO	  	ESA P Portfolio L.L.C.
	311	  	5855 Corporate Dr, Colorado Springs, CO	  	ESA P Portfolio L.L.C.
	885	  	4850 Leetsdale Dr, Glendale, CO	  	ESA P Portfolio L.L.C.
	901	  	7393 W Jefferson Ave, Lakewood, CO	  	ESA P Portfolio L.L.C.

 
 

  
 3 

					
	 Site

#
	  	 Address
	  	 Owner

	994	  	715 Kipling St, Lakewood, CO	  	ESA P Portfolio L.L.C.
	7502	  	3490 Afternoon Circle, Colorado Springs, CO	  	ESA P Portfolio L.L.C.
	7508	  	8750 Grant St, Thornton, CO	  	ESA P Portfolio L.L.C.
	7513	  	3705 N Chambers Rd., Aurora, CO	  	ESA P Portfolio L.L.C.
	7527	  	1291 W. 120th Ave, Westminster, CO	  	ESA P Portfolio L.L.C.
	7568	  	8752 S Yosemite St, Lone Tree, CO	  	ESA P Portfolio L.L.C.
	9623	  	13941 East Harvard Avenue, Aurora, CO	  	ESA P Portfolio L.L.C.
	9624	  	4444 Leetsdale Drive, Glendale, CO	  	ESA P Portfolio L.L.C.
	9625	  	9253 E. Costilla Avenue, Greenwood Village, CO	  	ESA P Portfolio L.L.C.
	9626	  	9650 East Geddes Avenue, Englewood, CO	  	ESA P Portfolio L.L.C.
	9627	  	4885 South Quebec Street, Denver, CO	  	ESA P Portfolio L.L.C.
	9804	  	14095 E. Evans Ave, Aurora, CO	  	ESA P Portfolio L.L.C.
	9805	  	5200 S. Quebec St, Greenwood Village, CO	  	ESA P Portfolio L.L.C.
	1015	  	1 Batterson Park Rd., Farmington, CT	  	ESA P Portfolio L.L.C.
	1116	  	340 Tolland Tpke., Manchester, CT	  	ESA P Portfolio L.L.C.
	1122	  	366 Bee St., Meriden, CT	  	ESA P Portfolio L.L.C.
	9628	  	400 Main Ave, Norwalk, CT	  	ESA P Portfolio L.L.C.
	9629	  	945 Bridgeport Ave, Shelton, CT	  	ESA P Portfolio L.L.C.
	9630	  	333 Continental Drive, Newark, DE	  	ESA P Portfolio L.L.C.
	60	  	1950 Raymond Diehl Rd, Tallahassee, FL	  	ESA P Portfolio L.L.C.
	174	  	6451 Westwood Blvd., Orlando, FL	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	302	  	809 Bloodworth Lane, Pensacola, FL	  	ESA P Portfolio L.L.C.
	303	  	3089 Executive Drive, Clearwater, FL	  	ESA P Portfolio L.L.C.
	328	  	1200 FAU Research Park Blvd, Deerfield Beach, FL	  	ESA P Portfolio L.L.C.
	381	  	3600 SW 42nd St, Gainesville, FL	  	ESA P Portfolio L.L.C.
	789	  	12242 Morris Bridge Rd., Temple Terrace, FL	  	ESA P Portfolio L.L.C.
	869	  	5851 N. Andrews Ave Ext., Fort Lauderdale, FL	  	ESA P Portfolio L.L.C.
	884	  	6961 Lenoir Ave, Jacksonville, FL	  	ESA P Portfolio L.L.C.
	1510	  	3031 West Commercial Blvd., Fort Lauderdale, FL	  	ESA P Portfolio L.L.C.
	1546	  	12358 E. Colonial Drive, Orlando, FL	  	ESA P Portfolio L.L.C.
	1559	  	1413 Prudential Dr., Jacksonville, FL	  	ESA P Portfolio L.L.C.
	1561	  	1450 SE 17th Street Causeway, Fort Lauderdale, FL	  	ESA P Portfolio L.L.C.
	1563	  	6001 NW 6th Way, Fort Lauderdale, FL	  	ESA P Portfolio L.L.C.
	1564	  	255 Bill France Blvd, Daytona Beach, FL	  	ESA P Portfolio L.L.C.
	1565	  	4699 Lenoir Ave S., Jacksonville, FL	  	ESA P Portfolio L.L.C.
	1567	  	1701 Evans Road, Melbourne, FL	  	ESA P Portfolio L.L.C.
	1568	  	700 Northpoint Parkway, West Palm Beach, FL	  	ESA P Portfolio L.L.C.
	1569	  	4811 Memorial Highway, Tampa, FL	  	ESA P Portfolio L.L.C.
	1577	  	5610 Vineland Road, Orlando, FL	  	ESA P Portfolio L.L.C.
	1600	  	8655 NW 21 Terrace, Miami, FL	  	ESA P Portfolio L.L.C.
	1613	  	5620 Major Blvd., Orlando, FL	  	ESA P Portfolio L.L.C.

 
 

  
 4 

					
	 Site

#
	  	 Address
	  	 Owner

	1618	  	1760 Pembrook Drive, Orlando, FL	  	ESA P Portfolio L.L.C.
	1619	  	1036 Greenwood Blvd., Lake Mary, FL	  	ESA P Portfolio L.L.C.
	1623	  	7755 SW 6 h Street, Fort Lauderdale, FL	  	ESA P Portfolio L.L.C.
	1632	  	1776 Pembrook Drive, Orlando, FL	  	ESA P Portfolio L.L.C.
	1639	  	6443 Westwood Blvd., Orlando, FL	  	ESA P Portfolio L.L.C.
	1740	  	3640 SW 22nd Street, Miami, FL	  	ESA P Portfolio L.L.C.
	1760	  	298 SW 15th Road, Miami, FL	  	ESA P Portfolio L.L.C.
	1762	  	7750 NW 25th Street, Miami, FL	  	ESA P Portfolio L.L.C.
	1805	  	4312 W. Spruce Street, Tampa, FL	  	ESA P Portfolio L.L.C.
	9631	  	8300 Western Way, Jacksonville, FL	  	ESA P Portfolio L.L.C.
	9632	  	4693 Salisbury Road, Jacksonville, FL	  	ESA P Portfolio L.L.C.
	9633	  	10020 Skinner Lake Drive, Jacksonville, FL	  	ESA P Portfolio L.L.C.
	9634	  	302 Northlake Blvd., Altamonte, FL	  	ESA P Portfolio L.L.C.
	9635	  	1040 Greenwood Blvd, Lake Mary, FL	  	ESA P Portfolio L.L.C.
	9636	  	4101 Equity Row, Orlando, FL	  	ESA P Portfolio L.L.C.
	9637	  	501 NW 77th Street, Boca Raton, FL	  	ESA P Portfolio L.L.C.
	9640	  	6605 NW 7th Street, Miami, FL	  	ESA P Portfolio L.L.C.
	9641	  	101 Fairway Drive, Miami Springs, FL	  	ESA P Portfolio L.L.C.
	9806	  	8801 Perimeter Park Blvd, Jacksonville, FL	  	ESA P Portfolio L.L.C.
	9807	  	1805 N. Westshore Blvd, Tampa, FL	  	ESA P Portfolio L.L.C.
	9808	  	1401 S.W. 15th St, Pompano Beach, FL	  	ESA P Portfolio L.L.C.

 

					
	 Site

#
	  	 Address
	  	 Owner

	9809	  	8687 Commodity Circle, Orlando, FL	  	ESA P Portfolio L.L.C.
	9810	  	1951 Summit Tower Blvd, Orlando, FL	  	ESA P Portfolio L.L.C.
	9841	  	8750 Universal Blvd., Orlando, FL	  	ESA P Portfolio L.L.C.
	9842	  	8100 Palm Pkwy., Orlando, FL	  	ESA P Portfolio L.L.C.
	9863	  	4615 Opa-Locka Lane, Destin, FL	  	ESA P Portfolio L.L.C.
	38	  	7065 Jimmy Carter Blvd., Norcross, GA	  	ESA P Portfolio L.L.C.
	42	  	3331 Old Milton Pkwy, Alpharetta, GA	  	ESA P Portfolio L.L.C.
	61	  	3316 Busbee Dr., Kennesaw, GA	  	ESA P Portfolio L.L.C.
	63	  	3980 Riverside Dr., Macon, GA	  	ESA P Portfolio L.L.C.
	65	  	2474 Cumberland Pk SE, Atlanta, GA	  	ESA P Portfolio L.L.C.
	102	  	5020 Armour Rd, Columbus, GA	  	ESA P Portfolio L.L.C.
	373	  	3115 Clairmont Rd., Atlanta, GA	  	ESA P Portfolio L.L.C.
	382	  	1967 Leland Dr., Marietta, GA	  	ESA P Portfolio L.L.C.
	788	  	3430 Venture Pkwy, Duluth, GA	  	ESA P Portfolio L.L.C.
	990	  	1051 Canton Rd., Marietta, GA	  	ESA P Portfolio L.L.C.
	991	  	6295 Jimmy Carter Blvd., Norcross, GA	  	ESA P Portfolio L.L.C.
	992	  	200 Lawrenceville St., Norcross, GA	  	ESA P Portfolio L.L.C.
	993	  	6231 Hwy 85, Riverdale, GA	  	ESA P Portfolio L.L.C.
	996	  	474 W. Pike St., Lawrenceville, GA	  	ESA P Portfolio L.L.C.
	1501	  	1950 Rock Mill Rd., Alpharetta, GA	  	ESA P Portfolio L.L.C.
	1502	  	2265 Mt. Zion Pkwy, Morrow, GA	  	ESA P Portfolio L.L.C.

 
 

  
 5 

					
	 Site

#
	  	 Address
	  	 Owner

	1550	  	3000 George Busbee Pkwy, Kennesaw, GA	  	ESA P Portfolio L.L.C.
	1595	  	905 Crestline Pkwy, Atlanta, GA	  	ESA P Portfolio L.L.C.
	1664	  	1721 Rollins Way, Columbus, GA	  	ESA P Portfolio L.L.C.
	1796	  	5511 Abercom St, Savannah, GA	  	ESA P Portfolio L.L.C.
	9646	  	3103 Sports Ave., Smyrna, GA	  	ESA P Portfolio L.L.C.
	9649	  	1050 Hammond Dr., Atlanta, GA	  	ESA P Portfolio L.L.C.
	9650	  	2239 Powers Ferry Rd., Marietta, GA	  	ESA P Portfolio L.L.C.
	9811	  	2225 Interstate N. Parkway, SE	  	ESA P Portfolio L.L.C.
	9812	  	3329 Old Milton Parkway, Alpharetta, GA	  	ESA P Portfolio L.L.C.
	9843	  	3967 Peachtree Road, Atlanta, GA	  	ESA P Portfolio L.L.C.
	9844	  	2010 Powers Ferry Road, Atlanta, GA	  	ESA P Portfolio L.L.C.
	9845	  	6330 Peachtree Dunwoody Rd. NE, Atlanta, GA	  	ESA P Portfolio L.L.C.
	9856	  	3390 Venture Parkway, Duluth, GA	  	ESA P Portfolio L.L.C.
	57	  	2701 Westown Pkwy, West Des Moines, IA	  	ESA P Portfolio L.L.C.
	3503	  	3940 114th Street, Urbandale, IA	  	ESA P Portfolio L.L.C.
	828	  	2500 S Vista Ave., Boise, ID	  	ESA P Portfolio L.L.C.
	55	  	747 N Bell School Road, Rockford, IL	  	ESA P Portfolio L.L.C.
	153	  	1525 Busch Parkway, Buffalo Grove, IL	  	ESA P Portfolio L.L.C.
	510	  	3150 Finley Rd., Downers Grove, IL	  	ESA P Portfolio L.L.C.
	525	  	1181 Rohlwing Rd, Itasca, IL	  	ESA P Portfolio L.L.C.

 

					
	 Site

#
	  	 Address
	  	 Owner

	530	  	2400 Golf Road, Rolling Meadows, IL	  	ESA P Portfolio L.L.C.
	532	  	15 W. 122nd S. Frontage Rd, Burr Ridge, IL	  	ESA P Portfolio L.L.C.
	541	  	550 West Grand Ave., Elmhurst, IL	  	ESA P Portfolio L.L.C.
	640	  	5724 Northridge Dr, Gurnee, IL	  	ESA P Portfolio L.L.C.
	660	  	1575 Bond St., Naperville, IL	  	ESA P Portfolio L.L.C.
	677	  	1201 E. Touhy Ave., Des Plaines, IL	  	ESA P Portfolio L.L.C.
	752	  	653 Clark Drive, Rockford, IL	  	ESA P Portfolio L.L.C.
	753	  	1177 S Northpoint Blvd, Waukegan, IL	  	ESA P Portfolio L.L.C.
	4012	  	610 W. Marketview Dr, Champaign, IL	  	ESA P Portfolio L.L.C.
	4016	  	2520 173rd St., Lansing, IL	  	ESA P Portfolio L.L.C.
	4019	  	154 Regency Park, O’Fallon, IL	  	ESA P Portfolio L.L.C.
	4023	  	1225 Lakeview Dr., Romeoville, IL	  	ESA P Portfolio L.L.C.
	4030	  	1200 American Lane, Schaumburg, IL	  	ESA P Portfolio L.L.C.
	4040	  	260 E. 22nd St., Lombard, IL	  	ESA P Portfolio L.L.C.
	4061	  	2345 Sokol Ct., Darien, IL	  	ESA P Portfolio L.L.C.
	4063	  	1207 E. Touhy Ave., Des Plaines, IL	  	ESA P Portfolio L.L.C.
	4082	  	445 Warrenville Rd., Lisle, IL	  	ESA P Portfolio L.L.C.
	4095	  	1075 Lake St., Hanover Park, IL	  	ESA P Portfolio L.L.C.
	4096	  	4575 Frontage Rd., Hillside, IL	  	ESA P Portfolio L.L.C.
	4138	  	5211 Old Orchard Road, Skokie, IL	  	ESA P Portfolio L.L.C.
	4165	  	215 N Milwaukee Ave, Vernon Hills, IL	  	ESA P Portfolio L.L.C.

 
 

  
 6 

					
	 Site

#
	  	 Address
	  	 Owner

	4190	  	2000 N Roselle Rd, Schaumburg, IL	  	ESA P Portfolio L.L.C.
	4194	  	4306 North Brandywine Dr, Peoria, IL	  	ESA P Portfolio L.L.C.
	4200	  	1805 S. Veterans Pkwy, Bloomington, IL	  	ESA P Portfolio L.L.C.
	4206	  	7524 State Road, Bedford Park, IL	  	ESA P Portfolio L.L.C.
	9651	  	1827 Centre Point Circle, Naperville, IL	  	ESA P Portfolio L.L.C.
	9652	  	2701 Technology Drive, Lombard, IL	  	ESA P Portfolio L.L.C.
	9653	  	51 E. State Parkway, Schaumburg, IL	  	ESA P Portfolio L.L.C.
	9654	  	675 Woodlands Parkway, Vernon Hills, IL	  	ESA P Portfolio L.L.C.
	9655	  	855 Pasquinelli Drive, Westmont, IL	  	ESA P Portfolio L.L.C.
	11	  	9750 Lake Shore Drive, Indianapolis, IN	  	ESA P Portfolio L.L.C.
	14	  	9030 Wesleyan Road, Indianapolis, IN	  	ESA P Portfolio L.L.C.
	35	  	301 Eagle Crest Drive, Evansville, IN	  	ESA P Portfolio L.L.C.
	36	  	5810 Challenger Pkwy, Fort Wayne, IN	  	ESA P Portfolio L.L.C.
	48	  	4715 N. Main Street, Mishawaka, IN	  	ESA P Portfolio L.L.C.
	247	  	8309 W. Jefferson Blvd, Fort Wayne, IN	  	ESA P Portfolio L.L.C.
	526	  	1355 E. 83rd Avenue, Merrillville, IN	  	ESA P Portfolio L.L.C.
	4014	  	2730 Fortune Circle West, Indianapolis, IN	  	ESA P Portfolio L.L.C.
	4031	  	7940 N. Shadeland Ave, Indianapolis, IN	  	ESA P Portfolio L.L.C.
	4196	  	5305 N. Main Street, Mishawaka, IN	  	ESA P Portfolio L.L.C.
	9656	  	8520 Northwest Blvd, Indianapolis, IN	  	ESA P Portfolio L.L.C.
	9813	  	5350 W. Southern Ave, Indianapolis, IN	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	9814	  	9370 Waldemar Rd, Indianapolis, IN	  	ESA P Portfolio L.L.C.
	521	  	10750 Quivira Road, Overland Park, KS	  	ESA P Portfolio L.L.C.
	995	  	9775 Lenexa Drive, Lenexa, KS	  	ESA P Portfolio L.L.C.
	6085	  	9450 E. Corporate Hills Dr, Wichita, KS	  	ESA P Portfolio L.L.C.
	9657	  	5401 West 110th Street, Overland Park, KS	  	ESA P Portfolio L.L.C.
	9658	  	6451 East Frontage Road, Merriam, KS	  	ESA P Portfolio L.L.C.
	9815	  	7201 W. 106th St, Overland Park, KS	  	ESA P Portfolio L.L.C.
	9816	  	8015 Lenexa Drive, Lenexa, KS	  	ESA P Portfolio L.L.C.
	1	  	2750 Gribbin Drive, Lexington, KY	  	ESA P Portfolio L.L.C.
	2	  	3575 Tates Creek Road, Lexington, KY	  	ESA P Portfolio L.L.C.
	4	  	9801 Bunsen Way, Louisville, KY	  	ESA P Portfolio L.L.C.
	5	  	1401 Browns Lane, Louisville, KY	  	ESA P Portfolio L.L.C.
	28	  	200 Meijer Drive, Florence, KY	  	ESA P Portfolio L.L.C.
	295	  	2650 Wilhite Drive, Lexington, KY	  	ESA P Portfolio L.L.C.
	325	  	6101 Dutchmans Lane, Louisville, KY	  	ESA P Portfolio L.L.C.
	629	  	7350 Turfway Road, Florence, KY	  	ESA P Portfolio L.L.C.
	659	  	650 West 3rd Street, Covington, KY	  	ESA P Portfolio L.L.C.
	9659	  	1650 Alliant Avenue, Louisville, KY	  	ESA P Portfolio L.L.C.
	985	  	3070 E. Texas St., Bossier City, LA	  	ESA P Portfolio L.L.C.
	986	  	104 Mallard Rd., Sulphur, LA	  	ESA P Portfolio L.L.C.
	6000	  	3300 S. I-10 Service Rd. W, Metairie, LA	  	ESA P Portfolio L.L.C.

 
 

  
 7 

					
	 Site

#
	  	 Address
	  	 Owner

	6002	  	11140 Boardwalk Dr., Baton Rouge, LA	  	ESA P Portfolio L.L.C.
	6049	  	807 S. Hugh Wallis Rd, LA	  	ESA P Portfolio L.L.C.
	6166	  	2300 Veterans Blvd, Kenner, LA	  	ESA P Portfolio L.L.C.
	6169	  	6250 Corporate Blvd., Baton Rouge, LA	  	ESA P Portfolio L.L.C.
	576	  	102 Newbury St., Danvers, MA	  	ESA P Portfolio L.L.C.
	1020	  	180 E. Main St., Westborough, MA	  	ESA P Portfolio L.L.C.
	1023	  	19 Connector Rd., Westborough, MA	  	ESA P Portfolio L.L.C.
	1028	  	1910 Andover St., Tewksbury, MA	  	ESA P Portfolio L.L.C.
	1029	  	20 Rockdale St., Braintree, MA	  	ESA P Portfolio L.L.C.
	1140	  	280 S. Washington Rd., Norton, MA	  	ESA P Portfolio L.L.C.
	9664	  	40 South Ave., Burlington, MA	  	ESA P Portfolio L.L.C.
	9665	  	19 Northborough Road East, Marlborough, MA	  	ESA P Portfolio L.L.C.
	9666	  	200 Jubilee Dr, Peabody, MA	  	ESA P Portfolio L.L.C.
	9667	  	52 Fourth Ave., Waltham, MA	  	ESA P Portfolio L.L.C.
	9846	  	32 Fourth Ave., Waltham, MA	  	ESA P Portfolio L.L.C.
	9847	  	1800 Computer Drive, Westborough, MA	  	ESA P Portfolio L.L.C.
	9848	  	831 Main Street, Woburn, MA	  	ESA P Portfolio L.L.C.
	1091	  	2 Ashley Dr., Scarborough, ME	  	ESA P Portfolio L.L.C.
	58	  	30125 N. Civic Center Blvd., Warren, MI	  	ESA P Portfolio L.L.C.
	527	  	11808 Middlebelt Rd., Livonia, MI	  	ESA P Portfolio L.L.C.
	552	  	32690 Stephenson Hwy, Madison Heights, MI	  	ESA P Portfolio L.L.C.

 

					
	 Site

#
	  	 Address
	  	 Owner

	600	  	33400 Van Dyke Rd., Sterling Heights, MI	  	ESA P Portfolio L.L.C.
	670	  	1501 Briarwood Circle Dr., Ann Arbor, MI	  	ESA P Portfolio L.L.C.
	675	  	1180 Doris Rd., Auburn Hills, MI	  	ESA P Portfolio L.L.C.
	680	  	21555 Haggerty Rd., Novi, MI	  	ESA P Portfolio L.L.C.
	780	  	27775 Stansbury Blvd, Farmington Hills, MI	  	ESA P Portfolio L.L.C.
	4013	  	3747 29th St. S.E., Kentwood, MI	  	ESA P Portfolio L.L.C.
	4038	  	3265 Boardwalk Dr., Ann Arbor, MI	  	ESA P Portfolio L.L.C.
	4058	  	39640 Orchard Hill Pl., Novi, MI	  	ESA P Portfolio L.L.C.
	4179	  	2000 Haggerty Rd., Canton, MI	  	ESA P Portfolio L.L.C.
	4191	  	30325 Flynn Dr., Romulus, MI	  	ESA P Portfolio L.L.C.
	4192	  	26250 American Dr., Southfield, MI	  	ESA P Portfolio L.L.C.
	4193	  	20200 Thirteen Mile Rd., Roseville, MI	  	ESA P Portfolio L.L.C.
	4198	  	260 Town Center Dr., Dearborn, MI	  	ESA P Portfolio L.L.C.
	9668	  	3315 University Dr., Auburn Hills, MI	  	ESA P Portfolio L.L.C.
	9669	  	28500 Northwestern Hwy., Southfield, MI	  	ESA P Portfolio L.L.C.
	9818	  	2100 Featherstone Rd., Auburn Hills, MI	  	ESA P Portfolio L.L.C.
	733	  	 7956 Lyndale Ave.
 South,
Bloomington, MN
	  	ESA P Portfolio L.L.C.
	734	  	7550 Office Ridge Court, Bloomington, MN	  	ESA P Portfolio L.L.C.
	737	  	12970 63rd Ave. North, Maple Grove, MN	  	ESA P Portfolio L.L.C.
	745	  	3384 Norwest Court, Eagan, MN	  	ESA P Portfolio L.L.C.
	3504	  	2701 Freeway Blvd, Brooklyn Center, MN	  	ESA P Portfolio L.L.C.

 
 

  
 8 

					
	 Site

#
	  	 Address
	  	 Owner

	3508	  	10020 Hudson Rd, Woodbury, MN	  	ESA P Portfolio L.L.C.
	3527	  	4700 78th Street West [Vacant Land], Bloomington, MN	  	ESA P Portfolio L.L.C.
	3528	  	55 Wood Lake Drive, SE, Rochester, MN	  	ESA P Portfolio L.L.C.
	3529	  	2814 43rd St. NW, Rochester, MN	  	ESA P Portfolio L.L.C.
	9670	  	3015 Denmark Ave, Eagan, MN	  	ESA P Portfolio L.L.C.
	9671	  	11905 Technology Drive, Eden Prairie, MN	  	ESA P Portfolio L.L.C.
	16	  	155 Chapel Ridge Rd, Hazelwood, MO	  	ESA P Portfolio L.L.C.
	18	  	2030 Craig Rd, St. Louis, MO	  	ESA P Portfolio L.L.C.
	40	  	3125 Rider Trail South, Earth City, MO	  	ESA P Portfolio L.L.C.
	172	  	5555 Veterans Memorial Pkwy, St. Peters, MO	  	ESA P Portfolio L.L.C.
	522	  	11712 N.W. Plaza Circle, Kansas City, MO	  	ESA P Portfolio L.L.C.
	561	  	550 East 105th Street, Kansas City, MO	  	ESA P Portfolio L.L.C.
	562	  	14800 East 42nd Street, Independence, MO	  	ESA P Portfolio L.L.C.
	691	  	6065 N. Lindbergh Blvd, Hazelwood, MO	  	ESA P Portfolio L.L.C.
	700	  	11827 Lackland Rd, Maryland Heights, MO	  	ESA P Portfolio L.L.C.
	701	  	1333 E. Kingsley St, Springfield, MO	  	ESA P Portfolio L.L.C.
	6048	  	4301 N. Corrington Avenue, Kansas City, MO	  	ESA P Portfolio L.L.C.
	6196	  	2000 W. Business Loop 70, Columbia, MO	  	ESA P Portfolio L.L.C.
	9672	  	4535 Main Street, Kansas City, MO	  	ESA P Portfolio L.L.C.
	9673	  	9701 N. Shannon Avenue, Kansas City, MO	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	9674	  	11252 Lone Eagle Dr, Bridgeton, MO	  	ESA P Portfolio L.L.C.
	9675	  	12161 Lackland Rd, St. Louis, MO	  	ESA P Portfolio L.L.C.
	32	  	800 Ridgewood Rd., Ridgeland, MS	  	ESA P Portfolio L.L.C.
	331	  	5354 1-5 5N, Jackson, MS	  	ESA P Portfolio L.L.C.
	9862	  	572 East Beasley Road, Jackson, MS	  	ESA P Portfolio L.L.C.
	7065	  	4950 Southgate Drive, Billings, MT	  	ESA P Portfolio L.L.C.
	7068	  	800 River Drive South, Great Falls, MT	  	ESA P Portfolio L.L.C.
	20	  	5830 Westpark Dr., Charlotte, NC	  	ESA P Portfolio L.L.C.
	21	  	1705 Stanley Rd., Greensboro, NC	  	ESA P Portfolio L.L.C.
	24	  	123 East McCullough Dr., Charlotte, NC	  	ESA P Portfolio L.L.C.
	26	  	600 Weston Pkwy., Cary, NC	  	ESA P Portfolio L.L.C.
	30	  	921 Wake Towne Drive, Raleigh, NC	  	ESA P Portfolio L.L.C.
	31	  	 2504 North Carolina Highway 54, Durham, NC
 LEASEHOLD
	  	ESA P Portfolio L.L.C.
	106	  	911 Wake Towne Drive, Raleigh, NC	  	ESA P Portfolio L.L.C.
	127	  	408 Owen Dr., Fayetteville, NC	  	ESA P Portfolio L.L.C.
	161	  	2700 Slater Rd, Morrisville, NC	  	ESA P Portfolio L.L.C.
	186	  	4929 New Centre Dr., Wilmington, NC	  	ESA P Portfolio L.L.C.
	201	  	3105 Tower Blvd., Durham, NC	  	ESA P Portfolio L.L.C.
	206	  	6035 Nations Ford Road, Charlotte, NC	  	ESA P Portfolio L.L.C.
	231	  	6 Kenilworth Knoll, Asheville, NC	  	ESA P Portfolio L.L.C.

 
 

  
 9 

					
	 Site

#
	  	 Address
	  	 Owner

	232	  	1500 Regency Parkway, Cary, NC	  	ESA P Portfolio L.L.C.
	280	  	4317 Big Tree Way, Greensboro, NC	  	ESA P Portfolio L.L.C.
	370	  	1995 Hampton Inn Ct., Winston-Salem, NC	  	ESA P Portfolio L.L.C.
	371	  	10930 Park Road, Charlotte, NC	  	ESA P Portfolio L.L.C.
	417	  	8211 University Executive Park Drive, Charlotte, NC	  	ESA P Portfolio L.L.C.
	1500	  	7910 N. Point Blvd., Winston-Salem, NC	  	ESA P Portfolio L.L.C.
	1514	  	5008 NC 55, Durham, NC	  	ESA P Portfolio L.L.C.
	1570	  	4610 South Miami Blvd, Durham, NC	  	ESA P Portfolio L.L.C.
	1571	  	8405 Pineville - Matthews Road, Charlotte, NC	  	ESA P Portfolio L.L.C.
	1576	  	3100 Regency Parkway, Cary, NC	  	ESA P Portfolio L.L.C.
	1591	  	20 McDaniel Drive, Jacksonville, NC	  	ESA P Portfolio L.L.C.
	1594	  	7617 Thorndike Road, Greensboro, NC	  	ESA P Portfolio L.L.C.
	1596	  	4105 Sycamore Dairy Road, Fayetteville, NC	  	ESA P Portfolio L.L.C.
	9682	  	710 Yorkmont Road, Charlotte, NC	  	ESA P Portfolio L.L.C.
	9683	  	1920 Ivy Creek Boulevard, Durham, NC	  	ESA P Portfolio L.L.C.
	9686	  	3531 Wake Forest Rd, Raleigh, NC	  	ESA P Portfolio L.L.C.
	9687	  	2601 Appliance Court, Raleigh, NC	  	ESA P Portfolio L.L.C.
	9836	  	4919 S. Miami Blvd, Durham, NC	  	ESA P Portfolio L.L.C.
	54	  	9006 Burt St. NW, Omaha, NE	  	ESA P Portfolio L.L.C.
	1087	  	2000 Southwood Dr., Nashua, NH	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	454	  	2868 Route 73 North, Maple Shade, NJ	  	ESA P Portfolio L.L.C.
	455	  	1653 East State Highway No. 70, Cherry Hill, NJ	  	ESA P Portfolio L.L.C.
	479	  	101 Diemer Drive, Mount Laurel, NJ	  	ESA P Portfolio L.L.C.
	574	  	1 Fieldcrest Ave., Edison, NJ	  	ESA P Portfolio L.L.C.
	646	  	4230 US Route 1, South Brunswick, NJ	  	ESA P Portfolio L.L.C.
	696	  	329 Newman Springs Road, Red Bank, NJ	  	ESA P Portfolio L.L.C.
	2509	  	750 Edwin L. Ward Sr. Memorial Hwy, Rutherford, NJ	  	ESA P Portfolio L.L.C.
	2516	  	112 State Hwy. 17, Ramsey, NJ	  	ESA P Portfolio L.L.C.
	2522	  	500 Diemer Drive, Mt. Laurel, NJ	  	ESA P Portfolio L.L.C.
	2649	  	1 Meadowlands Pkwy, Secaucus, NJ	  	ESA P Portfolio L.L.C.
	2653	  	45 Glimcher Realty Way, Elizabeth, NJ LEASEHOLD	  	ESA P Portfolio L.L.C.
	2655	  	30 World’s Fair Drive, Franklin, NJ	  	ESA P Portfolio L.L.C.
	2676	  	3450 Brunswick Pike, Princeton, NJ	  	ESA P Portfolio L.L.C.
	2742	  	71 International Dr. South, Budd Lake, NJ	  	ESA P Portfolio L.L.C.
	9677	  	125 Rt 10 East, Whippany, NJ	  	ESA P Portfolio L.L.C.
	9678	  	300 State H. Rt 3 East, East Rutherford, NJ	  	ESA P Portfolio L.L.C.
	9679	  	 1 Plaza Drive, Secaucus, NJ

LEASEHOLD
	  	ESA P Portfolio L.L.C.
	9680	  	1 Hoover Way, Woodbridge, NJ	  	ESA P Portfolio L.L.C.
	9849	  	410 S. Randolphville Road, Piscataway, NJ	  	ESA P Portfolio L.L.C.
	413	  	5020 Ellison NE, Albuquerque, NM	  	ESA P Portfolio L.L.C.

 
 

  
 10 

					
	 Site

#
	  	 Address
	  	 Owner

	7512	  	2608 The American Rd. NW, Rio Rancho, NM	  	ESA P Portfolio L.L.C.
	7519	  	2321 International Ave. SE., Albuquerque, NM	  	ESA P Portfolio L.L.C.
	9819	  	2221 Rio Rancho Blvd (Hwy 528), Rio Rancho, NM	  	ESA P Portfolio L.L.C.
	860	  	4270 S. Valley View Blvd, Las Vegas, NV	  	ESA P Portfolio L.L.C.
	861	  	4240 Boulder Highway, Las Vegas, NV	  	ESA P Portfolio L.L.C.
	7570	  	9795 Gateway Drive, Reno, NV	  	ESA P Portfolio L.L.C.
	9676	  	3045 South Maryland Parkway, Las Vegas, NV LEASEHOLD	  	ESA P Portfolio L.L.C.
	9820	  	1550 E. Flamingo Rd, Las Vegas, NV	  	ESA P Portfolio L.L.C.
	501	  	1395 Washington Ave, Albany, NY	  	ESA P Portfolio L.L.C.
	503	  	700 Commons Way, Rochester, NY	  	ESA P Portfolio L.L.C.
	504	  	6630 Old Collamer Rd, East Syracuse, NY	  	ESA P Portfolio L.L.C.
	554	  	125 Inn Keepers Lane, Amherst, NY	  	ESA P Portfolio L.L.C.
	634	  	905 S. Oyster Bay Rd., Bethpage, NY	  	ESA P Portfolio L.L.C.
	651	  	18-30 Whitestone Expy., Whitestone, NY	  	ESA P Portfolio L.L.C.
	763	  	100 Spagnoli Rd, Melville, NY	  	ESA P Portfolio L.L.C.
	765	  	600 Center Place Drive, Rochester, NY	  	ESA P Portfolio L.L.C.
	2546	  	118 Tarrytown Rd., Elmsford, NY	  	ESA P Portfolio L.L.C.
	2716	  	55 W. Merritt Blvd, Fishkill, NY	  	ESA P Portfolio L.L.C.
	9681	  	25 Merritt Blvd, Fishkill, NY	  	ESA P Portfolio L.L.C.
	3	  	11645 Chesterdale Road, Springdale, OH	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	6	  	9651 Seward Road, Fairfield, OH	  	ESA P Portfolio L.L.C.
	7	  	2200 Lake Club Drive, Columbus, OH	  	ESA P Portfolio L.L.C.
	8	  	7851 Lois Circle, Dayton, OH	  	ESA P Portfolio L.L.C.
	9	  	6601 Reflections Drive, Dublin, OH	  	ESA P Portfolio L.L.C.
	15	  	4260 Hunt Road, Blue Ash, OH	  	ESA P Portfolio L.L.C.
	33	  	170 Montrose W. Ave, Copley, OH	  	ESA P Portfolio L.L.C.
	34	  	3131 Presidential Drive, Fairborn, OH	  	ESA P Portfolio L.L.C.
	41	  	542 West Dussel Drive, Maumee, OH	  	ESA P Portfolio L.L.C.
	47	  	25801 Country Club Blvd., North Olmsted, OH	  	ESA P Portfolio L.L.C.
	53	  	17552 Rosbough Drive, Middleburg Heights, OH	  	ESA P Portfolio L.L.C.
	59	  	30360 Clemens Rd., Westlake, OH	  	ESA P Portfolio L.L.C.
	553	  	185 Montrose W. Ave., Copley, OH	  	ESA P Portfolio L.L.C.
	555	  	11457 Chester Road, Sharonville, OH	  	ESA P Portfolio L.L.C.
	564	  	6155 Trust Drive, Holland, OH	  	ESA P Portfolio L.L.C.
	565	  	320 Glensprings Drive, Springdale, OH	  	ESA P Portfolio L.L.C.
	590	  	6255 Zumstein Drive, Columbus, OH	  	ESA P Portfolio L.L.C.
	681	  	450 Metro Place North, Dublin, OH	  	ESA P Portfolio L.L.C.
	4015	  	11145 Kenwood Road, Blue Ash, OH	  	ESA P Portfolio L.L.C.
	4018	  	4200 Stelzer Road, Columbus, OH	  	ESA P Portfolio L.L.C.
	4027	  	7465 High Cross Boulevard, Columbus, OH	  	ESA P Portfolio L.L.C.

 
 

  
 11 

					
	 Site

#
	  	 Address
	  	 Owner

	4075	  	10300 Cascade Crossing, Brooklyn, OH	  	ESA P Portfolio L.L.C.
	4120	  	6688 Miller Lane, Dayton, OH	  	ESA P Portfolio L.L.C.
	4178	  	3820 Orange Pl., Orange, OH	  	ESA P Portfolio L.L.C.
	9688	  	4630 Creek Road, Blue Ash, OH	  	ESA P Portfolio L.L.C.
	9689	  	24851 Country Club Blvd., North Olmsted, OH	  	ESA P Portfolio L.L.C.
	9690	  	3625 Orange Pl., Orange Village, OH	  	ESA P Portfolio L.L.C.
	9821	  	8555 Lyra Drive, Columbus, OH	  	ESA P Portfolio L.L.C.
	9822	  	5530 Tuttle Crossing Blvd, Dublin, OH	  	ESA P Portfolio L.L.C.
	39	  	7901 E. 31st Court South, Tulsa, OK	  	ESA P Portfolio L.L.C.
	50	  	4811 Northwest Expressway, Oklahoma City, OK	  	ESA P Portfolio L.L.C.
	876	  	3414 South 79th East Ave., Tulsa, OK	  	ESA P Portfolio L.L.C.
	877	  	4820 West Reno Ave., Oklahoma City, OK	  	ESA P Portfolio L.L.C.
	6065	  	2720 Northwest Expressway, Oklahoma City, OK	  	ESA P Portfolio L.L.C.
	335	  	18665 NW Eider Ct, Beaverton, OR	  	ESA P Portfolio L.L.C.
	399	  	17777 NE Sacramento St, Portland, OR	  	ESA P Portfolio L.L.C.
	838	  	520 Harlow Road, Springfield, OR	  	ESA P Portfolio L.L.C.
	7003	  	3535 Fisher Rd NE, Salem, OR	  	ESA P Portfolio L.L.C.
	9691	  	875 SW 158th Ave, Beaverton, OR	  	ESA P Portfolio L.L.C.
	9692	  	13009 SW 68th Parkway, Tigard, OR	  	ESA P Portfolio L.L.C.
	9823	  	19311 NW Cornell Rd, Hillsboro, OR	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	453	  	3216 Tillman Drive, Bensalem, PA	  	ESA P Portfolio L.L.C.
	463	  	300 Morehall Rd, Rt 29, Malvern, PA	  	ESA P Portfolio L.L.C.
	507	  	520 North Bell Avenue, Carnegie, PA	  	ESA P Portfolio L.L.C.
	547	  	9000 Tinicum Blvd, Philadelphia, PA	  	ESA P Portfolio L.L.C.
	2506	  	877 N. Pottstown Pike (Rt 100), Exton, PA	  	ESA P Portfolio L.L.C.
	2511	  	3851 Northern Pike, Monroeville, PA	  	ESA P Portfolio L.L.C.
	2525	  	200 Chauvet Drive, Pittsburgh, PA	  	ESA P Portfolio L.L.C.
	2526	  	8880 Bartram Ave, Philadelphia, PA	  	ESA P Portfolio L.L.C.
	2565	  	3050 Schoenersville Rd, Bethlehem, PA	  	ESA P Portfolio L.L.C.
	2667	  	114 Welsh Road, Horsham, PA	  	ESA P Portfolio L.L.C.
	2675	  	437 Irwins Lane, Plymouth Meeting, PA	  	ESA P Portfolio L.L.C.
	2739	  	1303 Lebanon Church Road, West Mifflin, PA	  	ESA P Portfolio L.L.C.
	9693	  	537 Dresher Road, Horsham, PA	  	ESA P Portfolio L.L.C.
	9694	  	400 American Avenue, King of Prussia, PA	  	ESA P Portfolio L.L.C.
	9695	  	8 E. Swedesford Road, Malvern, PA LEASEHOLD	  	ESA P Portfolio L.L.C.
	1113	  	245 W. Natick Rd, Warwick, RI	  	ESA P Portfolio L.L.C.
	1114	  	1200 Division Rd., West Warwick, RI	  	ESA P Portfolio L.L.C.
	1137	  	1000 Warren Ave, East Providence, RI	  	ESA P Portfolio L.L.C.
	9696	  	268 Metro Center Blvd, Warwick, RI	  	ESA P Portfolio L.L.C.
	19	  	530 Woods Lake Rd., Greenville, SC	  	ESA P Portfolio L.L.C.

 
 

  
 12 

					
	 Site

#
	  	 Address
	  	 Owner

	22	  	180 Stoneridge Dr., Columbia, SC	  	ESA P Portfolio L.L.C.
	29	  	7641 Northwoods Blvd., North Charleston, SC	  	ESA P Portfolio L.L.C.
	100	  	130 Mobile Drive, Spartanburg, SC	  	ESA P Portfolio L.L.C.
	115	  	5059 N. Arco Lane, North Charleston, SC	  	ESA P Portfolio L.L.C.
	131	  	5430 Forest Dr., Columbia, SC	  	ESA P Portfolio L.L.C.
	132	  	3715 Pelham Rd., Greenville, SC	  	ESA P Portfolio L.L.C.
	180	  	450 Gracern Rd., Columbia, SC	  	ESA P Portfolio L.L.C.
	223	  	304 Wingo Way, Mt. Pleasant, SC	  	ESA P Portfolio L.L.C.
	9697	  	5045 N. Arco Lane, North Charleston, SC	  	ESA P Portfolio L.L.C.
	9824	  	1170 Kinley Rd, Irmo, SC	  	ESA P Portfolio L.L.C.
	45	  	2979 N. Stemmons Frwy, Dallas, TX	  	ESA P Portfolio L.L.C.
	46	  	2420 E Lamar Blvd, Arlington, TX	  	ESA P Portfolio L.L.C.
	49	  	5454 Hollister Street, Houston, TX	  	ESA P Portfolio L.L.C.
	52	  	4636 West Plano Parkway, Plano, TX	  	ESA P Portfolio L.L.C.
	62	  	1303 LaConcha, Houston, TX	  	ESA P Portfolio L.L.C.
	64	  	2424 W. Sam Houston Pkwy South, Houston, TX	  	ESA P Portfolio L.L.C.
	886	  	6580 Montana Ave., El Paso, TX	  	ESA P Portfolio L.L.C.
	6005	  	5959 Guhn Rd, Houston, TX	  	ESA P Portfolio L.L.C.
	6011	  	3200 W. Sam Houston Pkwy, Houston, TX	  	ESA P Portfolio L.L.C.
	6012	  	2130 South Highway 6, Houston, TX	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	6016	  	12270 Greenville Ave., Dallas, TX	  	ESA P Portfolio L.L.C.
	6022	  	2544 US Hwy 67, Mesquite, TX	  	ESA P Portfolio L.L.C.
	6026	  	16939 Tomball Pkwy, Houston, TX	  	ESA P Portfolio L.L.C.
	6027	  	10100 N. Capital of Texas Hwy., Austin, TX	  	ESA P Portfolio L.L.C.
	6028	  	12621 Hymeadow Rd., Austin, TX	  	ESA P Portfolio L.L.C.
	6029	  	150 Valley Wood Rd, Spring, TX	  	ESA P Portfolio L.L.C.
	6030	  	555 S I-35 - City Centre Business Park, Round Rock, TX	  	ESA P Portfolio L.L.C.
	6037	  	3440 W. Walnut Hill Lane, Irving, TX	  	ESA P Portfolio L.L.C.
	6055	  	4701 Westheimer Road, Houston, TX	  	ESA P Portfolio L.L.C.
	6057	  	2330 SW Frwy, Houston, TX	  	ESA P Portfolio L.L.C.
	6060	  	600 Gaudalupe Street, Austin, TX	  	ESA P Portfolio L.L.C.
	6066	  	1410 Nasa Rd 1, Houston, TX	  	ESA P Portfolio L.L.C.
	6068	  	11175 Katy Frwy, Houston, TX	  	ESA P Portfolio L.L.C.
	6069	  	4022 Parkside Center Blvd, Farmers Branch, TX	  	ESA P Portfolio L.L.C.
	6070	  	6218 S. Staples St., Corpus Christi, TX	  	ESA P Portfolio L.L.C.
	6071	  	3261 N.E. Loop 820, Fort Worth, TX	  	ESA P Portfolio L.L.C.
	6072	  	1908 Forest Ridge Dr, Bedford, TX	  	ESA P Portfolio L.L.C.
	6073	  	1900 Lake Pointe Dr, Lewisville, TX	  	ESA P Portfolio L.L.C.
	6074	  	13505 North Frwy, Houston, TX, Houston ,TX	  	ESA P Portfolio L.L.C.
	6078	  	990 Sunland Park Dr., El Paso, TX	  	ESA P Portfolio L.L.C.

 
 

  
 13 

 

					
	 Site

#
	  	 Address
	  	 Owner

	6081	  	6300 US HWY 290 East, Austin, TX	  	ESA P Portfolio L.L.C.
	6082	  	605 Meadow Creek Dr, Las Colinas, TX	  	ESA P Portfolio L.L.C.
	6083	  	4331 Spectrum One, San Antonio, TX	  	ESA P Portfolio L.L.C.
	6084	  	4701 City Lake Blvd. W, Fort Worth, TX	  	ESA P Portfolio L.L.C.
	6086	  	3804 Tanacross Dr., Fort Worth, TX	  	ESA P Portfolio L.L.C.
	6092	  	5831 Overton Ridge Blvd., Fort Worth, TX	  	ESA P Portfolio L.L.C.
	6172	  	2100 Cinema Dr., Amarillo, TX	  	ESA P Portfolio L.L.C.
	6174	  	106 W. Village Blvd, Laredo, TX	  	ESA P Portfolio L.L.C.
	6175	  	5903 Woodway Dr., Waco, TX	  	ESA P Portfolio L.L.C.
	6178	  	5100 US Hwy. 290 W, Austin, TX	  	ESA P Portfolio L.L.C.
	6187	  	4802 S Loop 289, Lubbock, TX	  	ESA P Portfolio L.L.C.
	6195	  	13858 N US Hwy. 183, Austin, TX	  	ESA P Portfolio L.L.C.
	6197	  	16950 N I-35, Round Rock, TX	  	ESA P Portfolio L.L.C.
	9702	  	9100 Waterford Centre Blvd., Austin, TX	  	ESA P Portfolio L.L.C.
	9703	  	507 South First Street, Austin, TX	  	ESA P Portfolio L.L.C.
	9704	  	1221 N Watson Dr., Arlington, TX	  	ESA P Portfolio L.L.C.
	9705	  	5315 Carnaby St., Irving, TX	  	ESA P Portfolio L.L.C.
	9706	  	7825 Heathrow Dr., Irving, TX	  	ESA P Portfolio L.L.C.
	9707	  	17425 Dallas Pkwy, Dallas, TX	  	ESA P Portfolio L.L.C.
	9708	  	12121 Coit Rd, Dallas, TX	  	ESA P Portfolio L.L.C.
	9709	  	18470 N. Dallas Pkwy, Dallas, TX	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	9710	  	4709 W. Plano Pkwy, Plano, TX	  	ESA P Portfolio L.L.C.
	9711	  	901 E. Campbell Road, Richardson, TX	  	ESA P Portfolio L.L.C.
	9712	  	1601 River Run, Fort Worth, TX	  	ESA P Portfolio L.L.C.
	9713	  	2300 West Loop South, Houston, TX	  	ESA P Portfolio L.L.C.
	9714	  	7979 Fannin Street, Houston, TX	  	ESA P Portfolio L.L.C.
	9715	  	13223 Champions Ctr Dr, Houston, TX	  	ESA P Portfolio L.L.C.
	9716	  	1015 Central Parkway South, San Antonio, TX	  	ESA P Portfolio L.L.C.
	9826	  	1301 S. Braeswood Blvd, Houston, TX	  	ESA P Portfolio L.L.C.
	9827	  	720 W. Bay Area Blvd, Webster, TX	  	ESA P Portfolio L.L.C.
	9828	  	2900 Dallas Pkwy, Plano, TX	  	ESA P Portfolio L.L.C.
	9829	  	12424 Research Blvd, Austin, TX	  	ESA P Portfolio L.L.C.
	9831	  	4726 Sugar Grove Blvd, Stafford, TX	  	ESA P Portfolio L.L.C.
	9832	  	2700 Gracy Farms Lane, Austin, TX	  	ESA P Portfolio L.L.C.
	9833	  	5401 Green Park Drive, Irving, TX	  	ESA P Portfolio L.L.C.
	9834	  	8221 North IH-35, Austin, TX	  	ESA P Portfolio L.L.C.
	9835	  	9019 Vantage Point Rd, Dallas, TX	  	ESA P Portfolio L.L.C.
	352	  	10715 Auto Mall Drive, Sandy, UT	  	ESA P Portfolio L.L.C.
	362	  	2310 W. City Center Court, West Valley City, UT	  	ESA P Portfolio L.L.C.
	379	  	7555 S. Union Park Ave, Midvale, UT	  	ESA P Portfolio L.L.C.
	9717	  	5683 South Redwood Road, Salt Lake City, UT	  	ESA P Portfolio L.L.C.

 
 

  
 14 

					
	 Site

#
	  	 Address
	  	 Owner

	9718	  	1220 East 2100 South, Salt Lake City, UT	  	ESA P Portfolio L.L.C.
	43	  	12359 Hornsby Lane, Newport News, VA	  	ESA P Portfolio L.L.C.
	44	  	10060 W. Broad St., Glen Allen, VA	  	ESA P Portfolio L.L.C.
	111	  	14420 Chantilly Crossing Lane, Chantilly, VA	  	ESA P Portfolio L.L.C.
	140	  	11708 Jefferson Ave., Newport News, VA	  	ESA P Portfolio L.L.C.
	175	  	1540 Crossways Blvd, Chesapeake, VA	  	ESA P Portfolio L.L.C.
	291	  	2705 Frontage Rd. NW, Roanoke, VA	  	ESA P Portfolio L.L.C.
	410	  	6811 Paragon Pl., Richmond, VA	  	ESA P Portfolio L.L.C.
	478	  	46001 Waterview Plaza, Sterling, VA	  	ESA P Portfolio L.L.C.
	480	  	4548 Bonney Rd., Virginia Beach, VA	  	ESA P Portfolio L.L.C.
	768	  	205 North Breckinridge Place, Alexandria, VA	  	ESA P Portfolio L.L.C.
	1599	  	6807 Paragon Pl., Richmond, VA	  	ESA P Portfolio L.L.C.
	1620	  	12055 Lee Jackson Memorial Hwy, Fairfax, VA	  	ESA P Portfolio L.L.C.
	1813	  	6800 Metropolitan Center Dr, Springfield, VA	  	ESA P Portfolio L.L.C.
	1821	  	1021 Elden Street, Herndon, VA	  	ESA P Portfolio L.L.C.
	1828	  	1910 University Blvd, Lynchburg, VA	  	ESA P Portfolio L.L.C.
	1831	  	1915 Commerce Dr, Hampton, VA	  	ESA P Portfolio L.L.C.
	1846	  	5920 Fort Drive, Centreville, VA	  	ESA P Portfolio L.L.C.
	9719	  	200 Blue Stone Road PA, Alexandria, VA	  	ESA P Portfolio L.L.C.
	9725	  	8201 Old Courthouse Road, Vienna, VA	  	ESA P Portfolio L.L.C.

					
	 Site

#
	  	 Address
	  	 Owner

	9727	  	241 Arboretum Place, Richmond, VA	  	ESA P Portfolio L.L.C.
	9850	  	4506 Brookfield Corp. Drive, Chantilly, VA	  	ESA P Portfolio L.L.C.
	9851	  	3997 Fair Ridge Drive, Fairfax, VA	  	ESA P Portfolio L.L.C.
	9860	  	3214 Churchland Blvd., Chespeake, VA	  	ESA P Portfolio L.L.C.
	9861	  	809 Greenbrier Circle, Chesapeake, VA	  	ESA P Portfolio L.L.C.
	341	  	300 NE 115th Avenue, Vancouver, WA	  	ESA P Portfolio L.L.C.
	409	  	1400 South 320th Street, Federal Way, WA	  	ESA P Portfolio L.L.C.
	418	  	1150 Oakesdale Ave SW, Renton, WA	  	ESA P Portfolio L.L.C.
	802	  	22520 83rd Avenue South, Kent, WA	  	ESA P Portfolio L.L.C.
	805	  	2820 Pacific Hwy East, Fife, WA	  	ESA P Portfolio L.L.C.
	806	  	15451 53rd Avenue South, Tukwila, WA	  	ESA P Portfolio L.L.C.
	810	  	3021 196th Street SW, Lynnwood, WA	  	ESA P Portfolio L.L.C.
	815	  	8410 Broadway, Everett, WA	  	ESA P Portfolio L.L.C.
	817	  	12803 E. Sprague, Spokane, WA	  	ESA P Portfolio L.L.C.
	824	  	11400 Main Street, Bellevue, WA	  	ESA P Portfolio L.L.C.
	831	  	2120 S. 48th St., Tacoma, WA	  	ESA P Portfolio L.L.C.
	7009	  	923 228th Street SE, Bothell, WA	  	ESA P Portfolio L.L.C.
	7010	  	25104 Pacific Hwy South, Kent, WA	  	ESA P Portfolio L.L.C.
	7011	  	2101 N. Meridian, Puyallup, WA	  	ESA P Portfolio L.L.C.
	7018	  	8801 South Hosmer St., Tacoma, WA	  	ESA P Portfolio L.L.C.
	7020	  	1431 112th Street SE, Everett, WA	  	ESA P Portfolio L.L.C.

 
 

  
 15 

					
	 Site

#
	  	 Address
	  	 Owner

	7032	  	1675 Mottman Road SW, Tumwater, WA	  	ESA P Portfolio L.L.C.
	7062	  	3917 Harbour Pointe Blvd SW, Mukilteo, WA	  	ESA P Portfolio L.L.C.
	7066	  	13300 Stone Avenue North, Seattle, WA	  	ESA P Portfolio L.L.C.
	9728	  	3700 132nd Ave SE, Bellevue, WA	  	ESA P Portfolio L.L.C.
	9729	  	15805 NE 28th Street, Bellevue, WA	  	ESA P Portfolio L.L.C.
	9730	  	15635 West Valle Hwy, Tukwila, WA	  	ESA P Portfolio L.L.C.
	9852	  	22122 17th Ave. S.E, Bothell, WA, Bothell, WA	  	ESA P Portfolio L.L.C.
	557	  	11121 W North Ave, Wauwatosa, WI	  	ESA P Portfolio L.L.C.
	679	  	4141 Boardwalk Ct, Appleton, WI	  	ESA P Portfolio L.L.C.
	731	  	55 Junction Court, Madison, WI	  	ESA P Portfolio L.L.C.
	785	  	2520 Plaza Court, Waukesha, WI	  	ESA P Portfolio L.L.C.
	4034	  	45 Junction Court, Madison, WI	  	ESA P Portfolio L.L.C.
	9731	  	325 N Brookfield Rd Brookfield, WI	  	ESA P Portfolio L.L.C.
	56	  	6620 Eli Whitney Drive, Columbia, MD	  	ESA P Portfolio MD Trust
	658	  	1500 Aero Drive, Linthicum, MD	  	ESA P Portfolio MD Trust
	699	  	8870 Columbia 100 Parkway, Columbia, MD	  	ESA P Portfolio MD Trust
	767	  	9401 Largo Drive West, Landover, MD	  	ESA P Portfolio MD Trust
	2503	  	9704 Beaver Dam Road, Timonium, MD	  	ESA P Portfolio MD Trust
	2504	  	12450 Milestone Center Dr, Germantown, MD	  	ESA P Portfolio MD Trust
	2528	  	205 Professional Drive, Gaithersburg, MD	  	ESA P Portfolio MD Trust

					
	 Site

#
	  	 Address
	  	 Owner

	2529	  	201 Professional Drive, Gaithersburg, MD	  	ESA P Portfolio MD Trust
	2530	  	5240 Westview Dr, Frederick, MD	  	ESA P Portfolio MD Trust
	2549	  	46565 Expedition Park Drive, Lexington Park, MD	  	ESA P Portfolio MD Trust
	2705	  	1 Womack Drive, Annapolis, MD	  	ESA P Portfolio MD Trust
	2781	  	104 Chesapeake Centre Ct, Glen Burnie, MD	  	ESA P Portfolio MD Trust
	2787	  	8550 Washington Blvd, Jessup, MD	  	ESA P Portfolio MD Trust
	2802	  	1361 James Way, Bel Air, MD	  	ESA P Portfolio MD Trust
	9660	  	120 Admiral Cochrane Drive, Annapolis, MD	  	ESA P Portfolio MD Trust
	9662	  	2621 Research Blvd, Rockville, MD	  	ESA P Portfolio MD Trust
	9817	  	8890 Stanford Blvd, Columbia, MD	  	ESA P Portfolio MD Trust
	10	  	1700 Winston Rd, Knoxville, TN	  	ESH/TN Properties L.L.C.
	12	  	6085 Apple Tree Drive, Memphis, TN	  	ESH/TN Properties L.L.C.
	13	  	9025 Church Street East, Brentwood, TN	  	ESH/TN Properties L.L.C.
	17	  	2511 Elm Hill Pike, Nashville, TN	  	ESH/TN Properties L.L.C.
	37	  	8110 Cordova Centre Drive, Memphis, TN	  	ESH/TN Properties L.L.C.
	121	  	214 Langley Place, Knoxville, TN	  	ESH/TN Properties L.L.C.
	125	  	6240 Airpark Dr., Chattanooga, TN	  	ESH/TN Properties L.L.C.
	163	  	1210 Murfreesboro Road, Nashville, TN	  	ESH/TN Properties L.L.C.
	305	  	9020 Church Street East, Brentwood, TN	  	ESH/TN Properties L.L.C.
	315	  	2525 Elm Hill Pike, Nashville, TN	  	ESH/TN Properties L.L.C.

 
 

  
 16 

					
	 Site

#
	  	 Address
	  	 Owner

	450	  	5885 Shelby Oaks Drive, Memphis, TN	  	ESH/TN Properties L.L.C.
	5003	  	6520 Mt. Moriah Road, Memphis, TN	  	ESH/TN Properties L.L.C.
	5023	  	6325 Quail Hollow, Memphis, TN	  	ESH/TN Properties L.L.C.
	5045	  	3311 West End Avenue, Nashville, TN	  	ESH/TN Properties L.L.C.
	9698	  	2541 Corporate Avenue East, Memphis, TN	  	ESH/TN Properties L.L.C.
	9699	  	6500 Poplar Avenue, Memphis, TN	  	ESH/TN Properties L.L.C.
	9700	  	727 McGavock Pike, Nashville, TN	  	ESH/TN Properties L.L.C.
	9701	  	680 Bakers Bridre Ave., Franklin, TN	  	ESH/TN Properties L.L.C.
	9825	  	2520 Horizon Lake Dr, Memphis, TN	  	ESH/TN Properties L.L.C.

 

 
 

  
 17

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