Document:

Exhibit 10.39

Skokie,
IL (Hampton Inn & Suites)

PURCHASE
CONTRACT

between

CHICAGO
NORTH SHORE LODGING ASSOCIATES, L.L.C. (“SELLER”)

 (“SELLER”)

AND

APPLE
TEN HOSPITALITY OWNERSHIP, INC. (“BUYER”)

AND

RAYMOND
MANAGEMENT COMPANY, INC.

(“INDEMNITOR”)

Dated:
May 27, 2011

TABLE
OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page No.

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 	
 DEFINED TERMS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 1.1

 	
  

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 	
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;
 EARNEST MONEY DEPOSIT

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 2.1

 	
  

 	
 Purchase and
 Sale

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.2

 	
  

 	
 Intentionally
 Omitted

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.3

 	
  

 	
 Purchase
 Price

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.4

 	
  

 	
 Allocation

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.5

 	
  

 	
 Payment

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 2.6

 	
  

 	
 Earnest
 Money Deposit

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 REVIEW PERIOD

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
 3.1

 	
  

 	
 Review
 Period

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.2

 	
  

 	
 Due
 Diligence Examination

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.3

 	
  

 	
 Restoration

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 3.4

 	
  

 	
 Seller
 Exhibits

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 SURVEY AND TITLE APPROVAL

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 4.1

 	
  

 	
 Survey

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.2

 	
  

 	
 Title

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.3

 	
  

 	
 Survey or
 Title Objections

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 4.3

 	
  

 	
 Existing
 Loan

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
 TERMINATION OF MANAGEMENT AGREEMENT

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
 BROKERS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 7.1

 	
  

 	
 Seller’s and
 Indemnitor’s Representations, Warranties and Covenants

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.2

 	
  

 	
 Buyer’s
 Representations, Warranties and Covenants

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 7.3

 	
  

 	
 Survival

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
 ADDITIONAL COVENANTS

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 
	
 8.1

 	
  

 	
 Subsequent
 Developments

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.2

 	
  

 	
 Operations

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.3

 	
  

 	
 Third Party
 Consents

 	
  

 	
 17

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.4

 	
  

 	
 Employees

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.5

 	
  

 	
 Estoppel
 Certificates

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.6

 	
  

 	
 Access to
 Financial Information

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.7

 	
  

 	
 Bulk Sales

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.8

 	
  

 	
 Indemnification

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.9

 	
  

 	
 Escrow Funds

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 8.10

 	
  

 	
 Liquor
 Licenses

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
 CONDITIONS FOR CLOSING

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 
	
 9.1

 	
  

 	
 Buyer’s
 Conditions for Closing

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 9.2

 	
  

 	
 Seller’s Conditions
 for Closing

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
 CLOSING AND CONVEYANCE

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 10.1

 	
  

 	
 Closing

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.2

 	
  

 	
 Deliveries
 of Seller and Indemnitor

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 10.3

 	
  

 	
 Buyer’s
 Deliveries

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
 COSTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 
	
 11.1

 	
  

 	
 Seller’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 11.2

 	
  

 	
 Buyer’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XII

 	
 ADJUSTMENTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 
	
 12.1

 	
  

 	
 Adjustments

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.2

 	
  

 	
 Reconciliation
 and Final Payment

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 12.3

 	
  

 	
 Employees

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIII

 	
 CASUALTY AND CONDEMNATION

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 13.1

 	
  

 	
 Risk of
 Loss; Notice

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.2

 	
  

 	
 Buyer’s
 Termination Right

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 13.3

 	
  

 	
 Procedure
 for Closing

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIV

 	
 DEFAULT REMEDIES

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 14.1

 	
  

 	
 Buyer
 Default

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.2

 	
  

 	
 Seller
 Default

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 14.3

 	
  

 	
 Attorney’s
 Fees

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XV

 	
 NOTICES

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVI

 	
 MISCELLANEOUS

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 
	
 16.1

 	
  

 	
 Performance

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.2

 	
  

 	
 Binding
 Effect; Assignment

 	
  

 	
 30

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.3

 	
  

 	
 Entire
 Agreement

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.4

 	
  

 	
 Governing
 Law

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.5

 	
  

 	
 Captions

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.6

 	
  

 	
 Confidentiality

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.7

 	
  

 	
 Closing
 Documents

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.8

 	
  

 	
 Counterparts

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.9

 	
  

 	
 Severability

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.10

 	
  

 	
 Interpretation

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.11

 	
  

 	
 (Intentionally
 Omitted)

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.12

 	
  

 	
 Further Acts

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 16.13

 	
  

 	
 Joint and
 Several Obligations

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVII

 	
 JOINDER BY INDEMNITOR

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 17.1

 	
  

 	
 Indemnification
 by Indemnitor

 	
  

 	
 32

 

	
  

 	
  

 
	
 SCHEDULES:

 	
  

 
	
  

 	
  

 
	
 EXHIBITS:

 
	
  

 	
  

 
	
 Exhibit A

 	
 Legal
 Description

 
	
 Exhibit B

 	
 List of
 FF&E

 
	
 Exhibit C

 	
 List of
 Hotel Contracts

 
	
 Exhibit D

 	
 Consents and
 Approvals

 
	
 Exhibit E

 	
 Environmental
 Reports

 
	
 Exhibit F

 	
 Claims or Litigation
 Pending

 
	
 Exhibit G

 	
 Escrow
 Agreement

 
	
 Exhibit H

 	
 Existing
 Loan Information

 

iii

PURCHASE
CONTRACT

This PURCHASE CONTRACT (this “Contract”) is made and entered into as
of May 27, 2011, by and between CHICAGO NORTH SHORE LODGING ASSOCIATES, L.L.C.,
a Wisconsin limited liability company (“Seller”) with a principal office at 8333 Greenway Boulevard, Suite 200, Middleton,
Wisconsin 53562 and APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia
corporation, with its principal office at 814 East Main Street, Richmond,
Virginia 23219, or its affiliates or assigns (“Buyer”), and joined in
by Raymond Management Company, Inc., a Wisconsin Corporation (“Indemnitor”),
with its principal office at 8333 Greenway
Boulevard, Suite 200, Middleton, Wisconsin 53562.

RECITALS

A. Seller is the fee simple owner of that certain 225-room hotel
property commonly known as the Hampton Inn & Suites Chicago-North
Shore/Skokie, located at 5201 Old Orchard Road Skokie, Illinois 60077 (the “Hotel”)
identified in Exhibit A attached hereto and incorporated by reference.

          B. Buyer is
desirous of purchasing the Hotel from Seller, and Seller is desirous of selling
the Hotel to Buyer, for the purchase price and upon terms and conditions
hereinafter set forth.

AGREEMENT:

          NOW,
THEREFORE, in consideration of the foregoing Recitals, the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

ARTICLE I

DEFINED TERMS

          1.1 Definitions.
The following capitalized terms when used in this Contract shall have the
meanings set forth below unless the context otherwise requires:

          “Additional
Deposit” shall mean $125,000.00.

          “Affiliate”
shall mean, with respect to Seller or Buyer, any other person or entity
directly or indirectly controlling (including but not limited to all directors
and officers), controlled by or under direct or indirect common control with
Seller or Buyer, as applicable. For purposes of the foregoing, a person or
entity shall be deemed to control another person or entity if it possesses,
directly or indirectly, the power to direct or cause direction of the
management and policies of such other person or entity, whether through the
ownership of voting securities, by contract or otherwise. 

          “Appurtenances”
shall mean all rights, titles, and interests of a Seller appurtenant to the
Land and Improvements, including, but not limited to, (i) all easements, rights
of way, rights of 

1

ingress and egress, tenements, hereditaments, privileges, and
appurtenances in any way belonging to the Land or Improvements, (ii) any land
lying in the bed of any alley, highway, street, road or avenue, open or
proposed, in front of or abutting or adjoining the Land, (iii) any strips or
gores of real estate adjacent to the Land, and (iv) the use of all alleys,
easements and rights-of-way, if any, abutting, adjacent, contiguous to or
adjoining the Land.

           “Brand”
shall mean Hampton Inn & Suites, the hotel brand or franchise under which
the Hotel operates.

          “Business
Day” shall mean any day other than a Saturday, Sunday or legal holiday in
the Commonwealth of Virginia.

          “Closing”
shall mean the closing of the purchase and sale of the Property pursuant to
this Contract.

          “Closing
Date” shall have the meaning set forth in Section 10.1.

          “Contracts,
Plans and Specs” shall mean all construction plans, drawings,
specifications, surveys, soil reports, engineering reports, inspection reports,
and other technical descriptions and reports, in Seller’s possession or
control.

          “Deed”
shall have the meaning set forth in Section 10.2(a).

          “Deposits”
shall mean, to the extent assignable, all prepaid rents and any cash balances
in lender required reserves for replacement of FF&E and for capital repairs
and/or improvements (“Lender Required Reserves”), refundable security deposits
and rental deposits, and all other deposits for advance reservations, banquets
or future services, made in connection with the use or occupancy of the
Improvements; provided, however, that to the extent Seller has not received or
does not hold all of the prepaid rents and/or deposits attributable to the
Leases related to the Property, Buyer shall be entitled to a credit against the
cash portion of the Purchase Price allocable to the Property in an amount equal
to the amount of the prepaid rents and/or deposits attributable to the Leases
transferred at the Closing of such Property, and provided further, that
“Deposits” shall exclude (i) reserves for real property taxes and insurance, in
each case, to the extent pro rated on the settlement statement such that Buyer
receives a credit for (a) taxes and premiums in respect of any period prior to
Closing and (b) the amount of deductibles and other self-insurance and all
other potential liabilities and claims in respect of any period prior to
Closing, and (ii) utility deposits.

          “Due
Diligence Examination” shall have the meaning set forth in Section 3.2.

          “Earnest
Money Deposit” shall have the meaning set forth in Section 2.6(a).

          “Environmental
Requirements” shall have the meaning set forth in Section 7.1(f)

          “Escrow
Agent” shall have the meaning set forth in Section 2.6(a).

          “Escrow
Agreement” shall have the meaning set forth in Section 2.6(b).

           “Exception
Documents” shall have the meaning set forth in Section 4.2.

2

          “Existing
Franchise Agreement” shall mean that certain franchise license agreement
between the Seller and the Franchisor, granting to Seller a franchise to
operate the Hotel under the Brand.

          “Existing
Loan” shall mean the loan identified on Exhibit H.

          “Existing
Lender” shall mean the lender identified on Exhibit H.

           “Existing
Management Agreement” shall mean that certain management agreement between
the Seller and the Manager for the operation and management of the Hotel.

           “FF&E”
shall mean all tangible personal property and fixtures of any kind (other than
personal property (i) owned by guests of the Hotel or (ii) leased by Seller
pursuant to an FF&E Lease) attached to, or located upon and used in
connection with the ownership, maintenance, use or operation of the Land or
Improvements as of the date hereof (or acquired by Seller and so employed prior
to Closing), including, but not limited to, all furniture, fixtures, equipment,
signs and related personal property; all heating, lighting, plumbing, drainage,
electrical, air conditioning, and other mechanical fixtures and equipment and
systems; all elevators, and related motors and electrical equipment and
systems; all hot water heaters, furnaces, heating controls, motors and
equipment, all shelving and partitions, all ventilating equipment, and all
disposal equipment; all spa, health club and fitness equipment; all equipment
used in connection with the use and/or maintenance of the guestrooms,
restaurants, lounges, business centers, meeting rooms, swimming pools, indoor
and/or outdoor sports facilities and other common areas and recreational areas;
all carpet, drapes, beds, furniture, televisions and other furnishings; all
stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen
equipment and utensils, tables, chairs, plates and other dishes, glasses,
silverware, serving pieces and other restaurant and bar equipment, apparatus
and utensils. A current list of FF&E is attached hereto as Exhibit B
(which list will not include the mechanical fixtures, elevators, and all
similar items which are fixtures of the Hotel).

          “FF&E
Leases” shall mean all leases of any FF&E and other contracts
permitting the use of any FF&E at the Improvements that are assumed by
Buyer.

          “Financial
Statements” shall have the meaning set forth in Section 3.1(b).

          “Franchisor”
shall mean Hilton Worldwide, Inc. or its Affiliate.

          “Hotel
Contracts” shall have the meaning set forth in Section 10.2(d).

          “Improvements”
shall mean all buildings, structures, fixtures, parking areas and other
improvements to the Land, and all related facilities.

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

          “Indemnified
Party” shall have the meaning set forth in Section 8.8(c)(i).

          “Indemnifying
Party” shall have the meaning set forth in Section 8.8(c)(i).

3

          “Initial
Deposit” shall have the meaning set forth in Section 2.6(a).

          “Land”
shall mean, collectively, a fee simple absolute interest in the real property
more fully described in Exhibit A, which is attached hereto and
incorporated herein by reference, together with all rights (including without
limitation all air rights and development rights), alleys, streets, strips,
gores, privileges, appurtenances, advantages and easements belonging thereto or
in any way appertaining thereto.

          “Leases”
shall mean all leases, franchises, licenses, occupancy agreements, “trade-out”
agreements, advance bookings, convention reservations, or other agreements
demising space in, providing for the use or occupancy of, or otherwise
similarly affecting or relating to the use or occupancy of, the Improvements or
Land, together with all amendments, modifications, renewals and extensions
thereof, and all guaranties by third parties of the obligations of the tenants,
licensees, franchisees, concessionaires or other entities thereunder.

          “Legal
Action” shall have the meaning set forth in Section 8.8(c)(ii).

          “Licenses”
shall mean all permits, licenses, franchises, utility reservations,
certificates of occupancy, and other documents issued by any federal, state, or
municipal authority or by any private party related to the development,
construction, use, occupancy, operation or maintenance of the Hotel, including,
without limitation, all licenses, approvals and rights (including any and all
existing waivers of any brand standard) necessary or appropriate for the
operation of the Hotel under the Brand.

          “Liquor
Licenses” shall have the meaning set forth in Section 8.10.

          “Manager”
shall mean Raymond Management Company, Inc.

          “New
Franchise Agreement” shall mean the franchise license agreement to be
entered into between Buyer and the Franchisor, granting to Buyer a franchise to
operate the Hotel under the Brand on and after the Closing Date. 

          “New
Management Agreement” means the management agreement to be entered into
between Buyer and the Manager for the operation and management of the Hotel on
and after the Closing Date.

          “Other
Property” shall have the meaning set forth in Section 16.14.

          “Pending
Claims” shall have the meaning set forth in Section 7.1(e).

          “Permitted
Exceptions” shall have the meaning set forth in Section 4.3.

          “Personal
Property” shall mean, collectively, all of the Property other than the Real
Property. 

          “PIP”
shall mean a product improvement plan for any Hotel, as required by the Manager
or the Franchisor, if any.

4

          “PIP
Escrow Agreement” shall have the meaning set forth in Section 11.1.

          “Post-Closing
Agreement” shall have the meaning set forth in Section 8.9.

          “Property”
shall mean, collectively, (i) all of the following with respect to the Hotel:
the Land, Improvements, Appurtenances, FF&E, Supplies, Leases, Deposits,
Records, Service Contracts, Warranties, Licenses, FF&E Leases, Contracts,
Plans and Specs, Tradenames, Utility Reservations, as well as all other real,
personal or intangible property of Seller related to any of the foregoing and
(ii) any and all of the following that relate to or affect in any way the
design, construction, ownership, use, occupancy, leasing, maintenance, service
or operation of the Real Property, FF&E, Supplies, Leases, Deposits or Records:
Service Contracts, Warranties, Licenses, Tradenames (except “Cool Pool” tm,
the right to which Seller shall retain), Contracts, Plans and Specs and
FF&E Leases. 

          “Purchase
Price” shall have the meaning set forth in Section 2.3.

          “Real
Property” shall mean, collectively, all Land, Improvements and
Appurtenances with respect to the Hotel. 

          “Records”
shall mean all books, records, promotional material, guest history information
(other than any such information owned exclusively by the Manager), marketing
and leasing material and forms (including but not limited to any such records,
data, information, material and forms in the form of computerized files located
at the Hotel), any marketing plan prepared in connection with Seller’s current
annual operating budget (including, without limitation, all documentation
relating to any pending litigation or other proceedings, all zoning and/or land
use notices, relating to or affecting the Property owned by Seller and/or in
Seller’s possession or control, or to which Seller has access or may obtain
from the Manager, that are used in or relating to the Property and/or the
operation of the Hotel, including the Land, the Improvements or the FF&E,
and proforma budgets and projections and all construction warranties and
guaranties in effect at Closing and copies of the record plans and
specifications for the Hotel, as available.

          “Release”
shall have the meaning set forth in Section 7.1(f).

          “Review
Period” shall have the meaning set forth in Section 3.1.

          “SEC”
shall have the meaning set forth in Section 8.6.

          “Seller
Liens” shall have the meaning set forth in Section 4.3.

          “Seller
Parties” shall have the meaning set forth in Section 7.1(e).

          “Service
Contracts” shall mean contracts or agreements, such as maintenance, supply,
service or utility contracts.

          “Supplies”
shall mean all merchandise, supplies, inventory and other items used for the
operation and maintenance of guest rooms, restaurants, lounges, swimming pools,
health clubs, spas, business centers, meeting rooms and other common areas and
recreational areas located 

5

within or relating to the Improvements, including, without limitation,
all food and beverage (alcoholic and non-alcoholic) inventory, office supplies
and stationery, advertising and promotional materials, china, glasses,
silver/flatware, towels, linen and bedding (all of which shall be 2-par level
for all suites or rooms in the Hotel), guest cleaning, paper and other
supplies, upholstery material, carpets, rugs, furniture, engineers’ supplies,
paint and painters’ supplies, employee uniforms, and all cleaning and
maintenance supplies, including those used in connection with the swimming
pools, indoor and/or outdoor sports facilities, health clubs, spas, fitness
centers, restaurants, business centers, meeting rooms and other common areas
and recreational areas.

          “Survey”
shall have the meaning set forth in Section 4.1.

          “Third
Party Consents” shall have the meaning set forth in Section 8.3.

           “Title
Commitment” shall have the meaning set forth in Section 4.2.

           “Title
Company” shall have the meaning set forth in Section 4.2.

           “Title
Policy” shall have the meaning set forth in Section 4.2.

           “Title
Review Period” shall have the meaning set forth in Section 4.3.

           “Tradenames”
shall mean all telephone exchanges and numbers, trade names, trade styles,
trade marks, and other identifying material, and all variations thereof,
together with all related goodwill (it being understood and agreed that the
name of the hotel chain to which the Hotel is affiliated by franchise, license
or management agreement is a protected name or registered service mark of such
hotel chain and cannot be transferred to Buyer by this Contract, provided that
all such franchise, license, management and other agreements granting a right
to use the name of such hotel chain or any other trademark or trade name and
all waivers of any brand standard shall be assigned to Buyer to the extent
Seller has any right to make such assignment).

           “Utility
Reservations” shall mean Seller’s interest in the right to receive
immediately on and after Closing and continuously consume thereafter water
service, sanitary and storm sewer service, electrical service, gas service and
telephone service on and for the Land and Improvements in capacities that are
adequate continuously to use and operate the Improvements for the purposes for
which they were intended, including, but not limited to (i) any right to the
present and future use of wastewater, drainage, water and other utility
facilities to the extent such use benefits the Real Property, (ii) any
reservations of or commitments covering any such use in the future, and (iii)
any wastewater capacity reservations relating to the Real Property. Buyer shall
be responsible for any requests or documents to transfer the Utility
Reservations, at Buyer’s sole cost and expense. 

           “Warranties”
shall mean all warranties, guaranties, indemnities and claims for the benefit
of Seller with respect to the Hotel, the Property or any portion thereof,
including, without limitation, all warranties and guaranties of the
development, construction, completion, installation, equipping and furnishing
of the Hotel, and all indemnities, bonds and claims of Seller related thereto.

6

ARTICLE II

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT

          2.1 Purchase
and Sale. Seller agrees to sell and convey to Buyer or its Affiliates
and/or assigns, and Buyer or its assigns agrees to purchase from Seller, the
Property, in consideration of the Purchase Price and upon the terms and
conditions hereof. All of the Property shall be conveyed, assigned, and transferred
to Buyer at Closing, free and clear of all mortgages, liens, encumbrances,
licenses, franchises (other than any hotel franchise or any other Licenses
assumed by Buyer and the Existing Loan), concession agreements, security
interests, prior assignments or conveyances, conditions, restrictions,
rights-of-way, easements, encroachments, claims and other matters affecting
title or possession, except for the Permitted Exceptions.

          2.2 Intentionally
Deleted. 

          2.3 Purchase
Price. Buyer agrees to pay, and Seller agrees to accept, as consideration
for the conveyance of the Property, subject to the adjustments provided for in
this Contract, the amount of THIRTY-TWO MILLION and No/100 Dollars
($32,000,000.00) (the “Purchase Price”).

          2.4 Allocation.
Buyer and Seller shall acting reasonably, in good faith, and based on objective
standards and appraisals of value, on an “open-book” basis, attempt to agree,
prior to the expiration of the Review Period, on an allocation of the Purchase
Price among Real Property, tangible Personal Property and intangible property
related to the Property. In the event Buyer and Seller do not agree, each party
shall be free to allocate the Purchase Price to such items as they deem
appropriate, subject to and in accordance with applicable laws. 

          2.5 Payment.
The portion of the Purchase Price, less the Earnest Money Deposit and interest
earned thereon, if any, which Buyer elects to have applied against the Purchase
Price (as provided below), less the Escrow Funds, less the outstanding
principal balance of the Existing Loan, shall be paid to Seller in cash,
certified funds or wire transfer, at the Closing of the Property. At the
Closing, the Earnest Money Deposit, together with interest earned thereon, if any,
shall, at Buyer’s election, be returned to Buyer or shall be paid over to
Seller by Escrow Agent to be applied to the portion of the Purchase Price on
behalf of Buyer, and the Escrow Funds shall be deposited into an escrow account
pursuant to the Post-Closing Agreement as contemplated by Section 8.9. 

          2.6 Earnest
Money Deposit.

                    (a)
Within three (3) Business Days after the full execution and delivery of this
Contract, Buyer shall deposit the sum of One Hundred Twenty-five Thousand and
No/100 Dollars ($125,000.00) in cash, certified bank check or by wire transfer
of immediately available funds (the “Initial Deposit”) with the Title
Company, as escrow agent (“Escrow Agent”), which sum shall be held
by Escrow Agent as earnest money. If, pursuant to the provisions of Section 3.1
of this Contract, Buyer elects to terminate this Contract at any time prior to
the expiration of the Review Period, then the Escrow Agent shall return the
Earnest Money Deposit to Buyer 

7

promptly upon written notice to that effect from Buyer. If Buyer does
not elect to terminate this Contract on or before the expiration of the Review
Period, Buyer shall, within three (3) Business Days after the expiration of the
Review Period deposit the Additional Deposit with the Escrow Agent. The Initial
Deposit and the Additional Deposit, and all interest accrued thereon, shall
hereinafter be referred to as the “Earnest Money Deposit.”

                    
(b) The Earnest Money Deposit shall be held by Escrow Agent subject to the
terms and conditions of an Escrow Agreement dated as of the date of this
Contract entered into by Seller, Buyer and Escrow Agent (the “Escrow
Agreement”). The Earnest Money Deposit shall be held in an
interest-bearing account in a federally insured bank or savings institution
reasonably acceptable to Seller and Buyer, with all interest to accrue to the
benefit of the party entitled to receive it and to be reportable by such party
for income tax purposes.

ARTICLE III

REVIEW PERIOD

          3.1 Review
Period. Buyer shall have a period through 6:00 p.m. Eastern Time on the
date that is forty-five (45) days after the date of this Contract, unless a
longer period of time is otherwise provided for in this Contract and except as
otherwise agreed to by Buyer and Seller (the “Review Period”), to
evaluate the legal, title, survey, construction, physical condition,
structural, mechanical, environmental, economic, permit status, franchise
status, financial and other documents and information related to the Property.
Within five (5) Business Days following the date of this Contract, Seller, at
Seller’s sole cost and expense, will deliver to Buyer (or make available at the
Hotel) for Buyer’s review, to the extent not previously delivered to Buyer,
true, correct and complete copies of the following, together with all
amendments, modifications, renewals or extensions thereof:

                    
(a) All Warranties and Licenses currently in force relating to the Hotel or any
part thereof;

                    
(b) Income and expense statements and budgets for the Hotel, for the current
year to date and each of the three (3) prior fiscal years (the “Financial
Statements”), and Seller shall provide to Buyer copies of all
income and expense statements generated by Seller or any third party that
relate to the operations of the Hotel and that contain information not included
in the financial statements, if any, provided to Buyer by the Manager, provided
that Seller also agrees to provide to Buyer’s auditors and representatives all
financial and other information necessary or appropriate for preparation of
audited financial statements for Buyer and/or its Affiliates as provided in
Section 8.6, below;

                    
(c) All real estate and personal property tax statements with respect to the
Hotel and notices of appraised value for the Real Property for the current year
(if available) and each of the three (3) calendar years prior to the current
year;

                    (d)
To the extent available and in Seller’s possession, engineering, mechanical,
architectural and construction plans, drawings, specifications and contracts,
payment and performance bonds, title policies, reports and commitments, zoning
information, as well as copies of all environmental reports and information,
topographical, boundary or “as built” 

8

surveys, engineering reports, subsurface studies and other Contracts,
Plans and Specs relating to or affecting the Hotel. If the Hotel is purchased
by Buyer, all such documents and information relating to the Hotel shall
thereupon be and become the property of Buyer without payment of any additional
consideration therefor;

                    
(e) All FF&E Leases, Services Contracts, Leases and, if applicable, a
schedule of such Leases of space in the Hotel, and all agreements for real
estate commissions, brokerage fees, finder’s fees or other compensation payable
by Seller in connection therewith; and

                    
(f) All notices received from governmental authorities in connection with the
Hotel that relate to any noncompliance or violation of law that has not been
corrected.

                    
(g) All documents related to the Existing Loan.

          Seller
shall, upon request of Buyer, make available to Buyer and Buyer’s
representatives and agents, for inspection and copying during normal business
hours or as otherwise agreed, Records located at Seller’s corporate offices
including items identified in 3.1(a)-(f) above, and Seller agrees to provide
Buyer copies of all other reasonably requested information that is relevant to
the management, operation, use, occupancy or leasing of or title to the
applicable Hotel and the plans specifications for development of the Hotel. At
any time during the Review Period, Buyer may, in its sole and absolute
discretion, elect not to proceed with the purchase of the Property for any
reason whatsoever by giving written notice thereof to Seller, in which event:
(i) the Earnest Money Deposit shall be promptly returned by Escrow Agent to
Buyer together with all accrued interest, if any, (ii) this Contract shall be
terminated automatically, (iii) all materials supplied by Seller to Buyer shall
be returned promptly to Seller, and (iv) both parties will be relieved of all
other rights, obligations and liabilities hereunder, except for the parties’
obligations pursuant to Sections 3.3 and 16.6 below.

          3.2 Due
Diligence Examination. At any time during the Review Period, and thereafter
through Closing of the Property, Buyer and/or its representatives and agents shall
have the right to enter upon the Property at all reasonable times for the
purposes of reviewing all Records and other data, documents and/or information
relating to the Property and conducting such surveys, appraisals, engineering
tests, soil tests (including, without limitation, Phase I and Phase II
environmental site assessments), inspections of construction and other
inspections and other studies as Buyer deems reasonable and necessary or
appropriate to evaluate the Property, subject to providing reasonable advance
notice to Seller unless otherwise agreed to by Buyer and Seller (the “Due
Diligence Examination”). Seller shall have the right to have its
representative present during Buyer’s physical inspections of its Property,
provided that failure of Seller to do so shall not prevent Buyer from
exercising its due diligence, review and inspection rights hereunder. Buyer
agrees to exercise reasonable care when visiting the Property, in a manner
which shall not materially adversely affect the operation of the Property.
Seller and Buyer shall also agree during the Review Period which FF&E
Leases shall be assumed by Buyer. Failure, to agree on FF&E Leases shall
give either party the right to terminate the agreement.

          3.3 Restoration.
Buyer covenants and agrees not to damage or destroy any portion of the Property
in conducting its examinations and studies of the Property during the Due
Diligence 

9

Examination and, if closing does not occur, shall repair any portion of
the Property damaged by the conduct of Buyer, its agents, employees or
contractors, to substantially the condition such portion(s) of the Property
were in immediately prior to such examinations or studies. 

          3.4 Seller
Exhibits. Buyer shall have until the end of the Review Period to review and
approve the information on Exhibits B, C, D, E and F. In the event Buyer does
not approve any such Exhibit or the information contained therein prior to the
end of the Review Period, Buyer shall be entitled to terminate this Contract by
notice to Seller and the Earnest Money Deposit shall be returned to Buyer with
all interest thereon and both parties shall be relieved of all rights,
obligations and liabilities hereunder except for the parties’ obligations
pursuant to Sections 3.3 and 16.6. Silence by Buyer through the end of the
Review Period shall be deemed approval of all information on the foregoing
exhibits. 

ARTICLE IV

SURVEY AND TITLE APPROVAL

          4.1 Survey.
Seller has delivered to Buyer true, correct and complete copies of the most
recent surveys of the Real Property. In the event that an update of the survey
or a new survey (such updated or new surveys being referred to as the “Survey”)
are desired by Buyer, then Buyer shall be responsible for all costs related
thereto.

          4.2 Title.
Seller has delivered to Buyer its existing title insurance policy, including
copies of all documents referred to therein, for its Real Property. Buyer’s
obligations under this Contract are conditioned upon Buyer being able to
obtain, at its sole cost and expense, for the Property (i) a Commitment for
Title Insurance (the “Title Commitment”) issued by Chicago
Title Company, Attn: Debby Moore, 5501 LBJ Freeway, Suite 200, Dallas, TX 75240
(the “Title
Company”), for the most recent standard form of owner’s policy
of title insurance in the state in which the Real Property is located, covering
the Real Property, setting forth the current status of the title to the Real
Property, showing all liens, claims, encumbrances, easements, rights of way, encroachments,
reservations, restrictions and any other matters affecting the Real Property
and pursuant to which the Title Company agrees to issue to Buyer at Closing an
Owner’s Policy of Title Insurance on the most recent form of ALTA (where
available) owner’s policy available in the state in which the Land is located,
with extended coverage and, to the extent applicable and available in such
state, comprehensive, access, single tax parcel, contiguity, Fairway and such
other endorsements as may be required by Buyer (collectively, the “Title
Policy”); and (ii) true, complete, legible and, where
applicable, recorded copies of all documents and instruments (the “Exception
Documents”) referred to or identified in the Title Commitment,
including, but not limited to, all deeds, lien instruments, leases, plats,
surveys, reservations, restrictions, and easements affecting the Real Property.
Buyer shall promptly provide Seller with a copy of the Title Commitment issued
by the Title Company.

          4.3 Survey
or Title Objections. If Buyer discovers any title or survey matter which is
objectionable to Buyer, Buyer may provide Seller with written notice of its
objection to same on or before the expiration of the Review Period (the “Title
Review Period”). If Buyer fails to so object in writing to any
such matter set forth in the Survey or Title Commitment during the Title Review
Period, it shall be conclusively assumed that Buyer has approved same. If Buyer
disapproves any condition of title, survey or other matters by written
objection to Seller on or 

10

before the expiration of the Title Review Period, Seller shall elect
either to attempt to cure or not cure any such item by written notice sent to
Buyer within ten (10) days after its receipt of notice from Buyer, and if
Seller commits in writing to attempt to cure any such item, then Seller shall
be given until the Closing Date to cure any such defect. In the event Seller
shall fail to cure a defect which Seller has committed in writing to cure prior
to Closing, or if a new title defect arises after the date of Buyer’s Title
Commitment or Survey, as applicable, but prior to Closing, then Buyer may
elect, in Buyer’s sole and absolute discretion: (i) to waive such objection and
proceed to Closing, or (ii) to terminate this Contract and receive a return of
the Earnest Money Deposit, and any interest thereon. The items shown on the
Title Commitment which are not objected to by Buyer as set forth above (other
than exceptions and title defects arising after the Title Review Period and
other than those standard exceptions which are ordinarily and customarily
omitted in the state in which the Hotel is located, so long as Seller provides
the appropriate owner’s affidavit, gap indemnity or other documentation
reasonably required by the Title Company for such omission) are hereinafter
referred to as the “Permitted Exceptions.” Regardless of
whether Buyer does not object to same, in no event shall Permitted Exceptions
include liens, or documents evidencing liens, securing any indebtedness, any
mechanics’ or materialmen’s liens or any claims or potential claims therefor
covering the Property or any portion thereof (including FF&E or other
equipment financing or leases other than the lease of a passenger van which
shall be assumed by Buyer) attributable to a claim arising prior to the Closing
Date (“Seller
Liens”), each of which shall be paid in full by Seller and
released at Closing. 

          4.4 Existing
Loan. Seller represents and warrants that the Existing Loan is the only
indebtedness secured by the Property and that the information contained on Exhibit H
is true, correct and complete. Neither Seller nor any guarantor is in default
or breach of any provisions of the documents evidencing the Existing Loan and
no event or circumstance has occurred or exists which but for the passage of
time would be a default under the Existing Loan. At Closing, Buyer shall assume
the Existing Loan and Buyer shall pay all administrative fees, assumption fees
and underwriting costs, if any, charged by the Existing Lender in connection
with said assumption. Seller shall cooperate with Buyer in Buyer’s efforts
related to the assumption of the Existing Loan including executing such
applications, certificates and other documents required by the Lender and providing
any information required by the Lender in connection with the assumption of the
Existing Loan. Seller shall be responsible for the costs of its attorneys, and
Buyer shall be responsible for the costs of its attorneys. In addition, Buyer
shall be responsible for the cost, if any, of Existing Lender’s attorneys,
related to the assumption of the Existing Loan.

ARTICLE V

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT

          At or prior
to the Closing, Seller shall terminate the Existing Management Agreement and
the Existing Franchise Agreement, and Seller shall be solely responsible for
all claims and liabilities arising thereunder on, prior to or following the
Closing Date. As a condition to Closing, Buyer shall enter into the New
Management Agreement and the New Franchise Agreement, effective as of the
Closing Date, containing terms and conditions acceptable to Buyer (including,
without limitation, such terms and conditions as may be required to accommodate
Buyer’s and/or Buyer’s Affiliates’ REIT structure). Seller shall be responsible
for 

11

paying all costs related to the termination of the Existing Management
Agreement. Buyer shall be responsible for paying all reasonable and actual
costs of the Franchisor related to the assignment or termination, as
applicable, of the Existing Franchise Agreement. Seller shall use best efforts
to promptly provide all information required by the Franchisor in connection
with the New Franchise Agreement, and Seller and Buyer shall diligently pursue
obtaining the same. As a condition to Buyer’s and Seller’s obligation to close
under this Contract, Buyer and Manager shall agree, on or before the expiration
of the Review Period, on the form and substance of the New Management
Agreement.

ARTICLE VI

BROKERS

          Seller and
Buyer each represents and warrants to the other that, except for Hodges, Ward
Elliott, Inc. for who’s fees and commissions Seller shall be solely
responsible, it has not engaged any broker, finder or other party in connection
with the transaction contemplated by this Contract. Buyer and Seller each agree
to save and hold the other harmless from any and all losses, damages,
liabilities, costs and expenses (including, without limitation, attorneys’
fees) involving claims made by any other agent, broker, or other person by or
through the acts of Buyer or Seller, respectively, in connection with this
transaction.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS

          7.1 Seller’s
and Indemnitor’s Representations, Warranties and Covenants. Seller and the
Indemnitor hereby represent, warrant and covenant to Buyer as follows:

                    
(a) Authority; No Conflicts. Seller is a limited liability company duly
formed, validly existing and in good standing in the State of Wisconsin.
Indemnitor is a corporation duly authorized, validly existing and in good
standing in the State of Wisconsin. Each of Seller and Indemnitor has obtained
all necessary consents to enter into and perform this Contract and is fully
authorized to enter into and perform this Contract (except as otherwise noted
in Exhibit “D”) and to complete the transactions contemplated by this Contract.
No consent or approval of any person, entity or governmental authority is
required for the execution, delivery or performance by Seller or Indemnitor of
this Contract, except as set forth in Exhibit D, and this Contract is
hereby binding and enforceable against Seller and Indemnitor (assuming the
consents set forth in Exhibit “D” are obtained). Neither the execution nor the
performance of, or compliance with, this Contract by Seller or Indemnitor has
resulted, or will result, in any violation of, or default under, or
acceleration of, any obligation under any existing corporate charter,
certificate of incorporation, bylaw, articles of organization, limited
liability company agreement or regulations, partnership agreement or other
organizational documents and under any, mortgage indenture, lien agreement,
promissory note, contract, or permit, or any judgment, decree, order,
restrictive covenant, statute, rule or regulation, applicable to Seller,
Indemnitor or to the Hotel (except as set forth in Exhibit “D”); provided,
however, the assumption of the Existing Loan by Buyer is subject to the consent
and approval of the Existing Lender.

12

                    
(b) FIRPTA. Seller is not a foreign corporation, foreign partnership,
foreign trust or foreign estate (as those items are defined in the Internal
Revenue Code and Income Tax Regulations).

                    
(c) Bankruptcy. None of Seller, Indemnitor, or, to Seller’s knowledge,
any of its or their partners or members, is insolvent or the subject of any
bankruptcy proceeding, receivership proceeding or other insolvency,
dissolution, reorganization or similar proceeding.

                    (d)
Property Agreements. A complete list of all FF&E Leases, Service
Contracts and Leases (other than those entered into by the Manager on its own
behalf) used in or otherwise relating to the operation and business of the
Hotel is attached hereto as Exhibit C-1, and, to Seller’s knowledge, a
complete list of all other FF&E Leases, Service Contracts and Leases used
in or otherwise relating to the operation and business of the Hotel is attached
hereto as Exhibit C-2. The assets constituting the Property to be
conveyed to Buyer hereunder constitute all of the property and assets of Seller
used in connection with the operation and business of the Hotel. There are no
leases, license agreements, leasing agent’s agreements, equipment leases,
building service agreements, maintenance contracts, suppliers contracts,
warranty contracts, operating agreements, or other agreements (i) to which
Seller is a party or an assignee, or (ii) to Seller’s or Indemnitor’s
knowledge, binding upon the Hotel, relating to the ownership, occupancy,
operation, management or maintenance of the Real Property, FF&E, Supplies
or Tradenames, except for those Service Contracts, Leases, Warranties, FF&E
Leases and other agreements disclosed on Exhibit C or to be delivered to
Buyer pursuant to Section 3.1. The Service Contracts, Leases, Warranties,
FF&E Leases and other agreements disclosed on Exhibit C or to be
delivered to Buyer pursuant to Section 3.1 are in full force and effect, and no
default has occurred and is continuing thereunder and no circumstances exist
which, with the giving of notice, the lapse of time or both, would constitute
such a default. No party has any right or option to acquire the Hotel or any
portion thereof, other than Buyer.

                    
(e) Pending Claims. There are no: (i) claims, demands, litigation,
proceedings or governmental investigations pending or threatened against
Seller, Indemnitor, the Manager or any Affiliate of any of them (collectively,
“Seller
Parties”) or related to the business or assets of the Hotel,
except as set forth on Exhibit F attached hereto and incorporated herein
by reference, (ii) special assessments or extraordinary taxes except as set
forth in the Title Commitment or (iii) pending or threatened condemnation or
eminent domain proceedings which would affect the Property or any part thereof.
There are no: pending arbitration proceedings or unsatisfied arbitration
awards, or judicial proceedings or orders respecting awards, which might become
a lien on the Property or any portion thereof, pending unfair labor practice
charges or complaints, unsatisfied unfair labor practice orders or judicial
proceedings or orders with respect thereto, pending charges or complaints with
or by city, state or federal civil or human rights agencies, unremedied orders
by such agencies or judicial proceedings or orders with respect to obligations
under city, state or federal civil or human rights or antidiscrimination laws
or executive orders affecting the Hotel, or other pending, actual or, to
Seller’s or Indemnitor’s knowledge, threatened litigation claims, charges,
complaints, petitions or unsatisfied orders by or before any administrative
agency or court which affect the Hotel or might become a lien on the Hotel
(collectively, the “Pending Claims”).

13

                    
(f) Environmental. With respect to environmental matters, to Seller’s
and Indemnitor’s knowledge and except as described in Exhibit “E,” (i) there
has been no Release or threat of Release of Hazardous Materials in, on, under,
to, from or in the area of the Real Property, except as disclosed in the
reports and documents set forth on Exhibit E attached hereto and
incorporated herein by reference, (ii) no portion of the Property is being used
for the treatment, storage, disposal or other handling of Hazardous Materials
or machinery containing Hazardous Materials other than standard amounts of
cleaning supplies, equipment maintenance supplies, and chlorine and other
chemicals for the swimming pool, all of which are stored on the Property in strict
accordance with applicable Environmental Requirements and do not exceed limits
permitted under applicable laws, including without limitation Environmental
Requirements, (iii) no underground storage tanks are currently located on or in
the Real Property or any portion thereof, (iv) no environmental investigation,
administrative order, notification, consent order, litigation, claim, judgment
or settlement with respect to the Property or any portion thereof is pending or
threatened, (v) except as disclosed on Exhibit “E” there is not currently and,
to Seller’s and Indemnitor’s knowledge, never has been any mold, fungal or
other microbial growth in or on the Property, or existing conditions within the
Property that could reasonably be expected to result in material liability or
material costs or expenses to remediate the mold, fungal or microbial growth,
or to remedy such conditions that could reasonably be expected to result in
such growth, and (vi) except as disclosed on Exhibit E, there are no
reports or other documentation regarding the environmental condition of the
Real Property in the possession of Seller or Seller’s Affiliates, consultants,
contractors or agents. As used in this Contract: “Hazardous Materials”
means (1) “hazardous wastes” as defined by the Resource Conservation and
Recovery Act of 1976, as amended from time to time (“RCRA”), (2) “hazardous
substances” as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.),
as amended by the Superfund Amendment and Reauthorization Act of 1986 and as
otherwise amended from time to time (“CERCLA”); (3) “toxic substances” as
defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”),
(4) “hazardous materials” as defined by the Hazardous Materials Transportation
Act, as amended from time to time (“HMTA”), (5) asbestos, oil or other
petroleum products, radioactive materials, urea formaldehyde foam insulation,
radon gas and transformers or other equipment that contains dielectric fluid
containing polychlorinated biphenyls and (6) any substance whose presence is
detrimental or hazardous to health or the environment, including, without
limitation, microbial or fungal matter or mold, and is otherwise regulated by
federal, state and local environmental laws (including, without limitation,
RCRA, CERCLA, TSCA, HMTA), rules, regulations and orders, regulating, relating
to or imposing liability or standards of conduct concerning any Hazardous
Materials or environmental, health or safety compliance (collectively, “Environmental
Requirements”). As used in this Contract: “Release” means
spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping or disposing.

                    
(g) Title and Liens. Except for Seller Liens to be released at Closing,
Seller has good and marketable fee simple absolute title to the Real Property,
subject only to the Permitted Exceptions. Except for any applicable Permitted
Exceptions, Seller has good and marketable title to the Personal Property, free
and clear of all liens, claims, encumbrances or other rights whatsoever (other
than the Seller Liens to be released at Closing), and there are no other liens,
claims, encumbrances or other rights pending or of which any Seller Party has 

14

received notice or which are otherwise known to any Seller Party
related to any other Personal Property. All FF&E (except for FF&E
Leases), including vehicles if any, shall be lien free at Closing. 

                    
(h) Utilities. All appropriate utilities, including sanitary and storm
sewers, water, gas, telephone, cable and electricity, are, to Seller’s and
Indemnitor’s knowledge, currently sufficient and available to service the Hotel
and all installation, connection or “tap-on”, usage and similar fees have been
paid.

                    
(i) Licenses, Permits and Approvals. Neither Seller nor Indemnitor has
received any written notice, and neither Seller nor Indemnitor has knowledge
that the Property fails to comply with all applicable licenses, permits and
approvals and federal, state or local statutes, laws, ordinances, rules,
regulations, requirements and codes including, without limitation, those
regarding zoning, land use, building, fire, health, safety, environmental,
subdivision, water quality, sanitation controls and the Americans with
Disabilities Act, and similar rules and regulations relating and/or applicable
to the ownership, use and operation of the Property as it is now operated. To
Seller’s and Indemnitor’s knowledge, Seller has received all material licenses,
permits and approvals required or needed for the lawful conduct, occupancy and
operation of the business of the Hotel, and each license and permit is in full
force and effect, and will be received and in full force and effect as of the
Closing. No licenses, permits or approvals necessary for the lawful conduct,
occupancy or operation of the business of the Hotel, to Seller’s or
Indemnitor’s knowledge requires any approval of a governmental authority for transfer
of the Property except as set forth in Exhibit D.

                    
(j) Financial Statements. Seller has delivered copies of all prior and
current (i) Financial Statements for the Hotel, and (ii) monthly financial
statements prepared by the Manager for the Hotel. Each of such statements is,
to Seller’s knowledge, complete and accurate in all material respects and,
except in the case of budgets prepared in advance of the applicable operating
period to which such budgets relate, fairly presents the results of operations
of the Hotel for the respective periods represented thereby. Seller has relied
upon the Financial Statements in connection with its ownership and operation of
the Hotel, and there are no independent audits or financial statements prepared
by third parties relating to the operation of the Hotel other than the
Financial Statements prepared by or on behalf of the Manager, all of which have
been provided to Buyer.

                    
(k) Employees. All employees employed at the Hotel are the employees of
Seller, the Manager or an affiliate. There are, to Seller’s and Indemnitor’s
knowledge, no (i) unions organized at the Hotel, (ii) union organizing
attempts, strikes, organized work stoppages or slow downs, or any other labor
disputes pending or threatened with respect to any of the employees at the
Hotel, or (iii) collective bargaining or other labor agreements to which Seller
or the Manager or the Hotel is bound with respect to any employees employed at
the Hotel.

                    
(l) Operations. To Seller’s and Indemnitor’s knowledge, the Hotel has at
all times been operated by Manager in accordance with all applicable laws,
rules, regulations, ordinances and codes.

15

                    
(m) Existing Management and Franchise Agreements. Seller has furnished
to Buyer true and complete copies of the Existing Management Agreement and the
Existing Franchise Agreement, which constitutes the entire agreement of the
parties with respect to the subject matter thereof and which have not been
amended or supplemented in any respect. There are no other management
agreements, franchise agreements, license agreements or similar agreements for
the operation or management of the Hotel or relating to the Brand, to which
Seller is a party or which are binding upon the Property, except for the
Existing Management Agreement and the Existing Franchise Agreement. To Seller’s
knowledge, the Improvements comply with, and the Hotel is being operated in
accordance with, all requirements of such Existing Management Agreement and the
Existing Franchise Agreement and all other requirements of the Manager and the
Franchisor, including all “brand standard” requirements of the Manager and the
Franchisor. The Existing Management Agreement and the Existing Franchise
Agreement are in full force and effect, and shall remain in full force and
effect until the termination of the Existing Management Agreement and the
Existing Franchise Agreement at Closing, as provided in Article V hereof. No
default has occurred and is continuing under the Existing Management Agreement
or the Existing Franchise Agreement, and no circumstances exist which, with the
giving of notice, the lapse of time or both, would constitute such a default. 

                    
(n) Construction of Hotel. 

	
  

 	
  

 
	
  

 	
                     (i)
 To Seller’s and Indemnitor’s knowledge the Hotel has been constructed in a
 good and workmanlike manner without encroachments not disclosed on the Survey
 and in accordance in all material respects with the record plans and specs,
 and all building permits and certificates of occupancy therefor and all
 applicable zoning, platting, subdivision, health, safety and similar laws,
 rules, regulations, ordinances and codes.

 
	
  

 	
  

 
	
  

 	
                     
 (ii) To Seller’s and Indemnitor’s knowledge the Personal Property is in good
 condition and operating order.

 
	
  

 	
  

 
	
  

 	
                     
 (iii) To Seller’s and Indemnitor’s knowledge, necessary easements for ingress
 and egress, drainage, signage and utilities serving the Hotel have either
 been dedicated to the public, conveyed to the appropriate utility or will be
 conveyed to Buyer along with the Property, or otherwise provided for such
 that the Hotel may operate.

 

          Notwithstanding
the foregoing, Buyer acknowledges that it is being given a full opportunity to
completely inspect the Property, the operation thereof, and the financial and
other information in connection therewith. In addition, Buyer represents and
warrants that it will inspect the Property and, if it elects to close the transaction,
will be familiar with and satisfied with the condition of Property including,
without limitation, the location,
condition, layout and physical condition of the Property and surrounding
areas, geotechnical data, surface, soil and
subsurface conditions of the Property and all structural matters related
thereto. Therefore, except as specifically provided in this Agreement, Seller
is conveying and Buyer is accepting the property in strictly “AS IS” condition
with all faults and, except for the specific warranties and representations
provided in this Agreement, Seller is not making any further warranties or

16

representations, express or implied, including, without limitation, any
warranty of merchantability or fitness for a particular purpose. Buyer
represents and warrants that, Buyer is experienced in the acquisition of real
property, including lodging properties, and that as of the Closing Date, Buyer
will be familiar with the Property and will have made such independent
investigations as Buyer deems necessary or appropriate concerning the Property.
If Buyer elects to proceed with the purchase of the Property, any objections
which Buyer may have with respect to the Property shall be waived by the Buyer.
All warranties and representations contained in this Agreement shall survive
the Closing of this transaction for a period of twelve (12) months after
Closing. No suit, cause of action, demand or other claim of any nature
whatsoever shall be made under the foregoing representations, warranties and
covenants unless the aggregate amount of Buyer’s direct out-of-pocket losses
(not including, by way of example only, any diminution in the value of the
Property) resulting from the inaccuracy or breach of such representations,
warranties and covenants exceeds, in the aggregate, Fifty Thousand and
no/100ths ($50,000.00) dollars. (the Agreed-Upon Limit”). The Agreed-Upon Limit
shall not apply to subsections 7.1(d), (e), (g), and (i) above, Section 8.8
below (except as provided in 8.8(a)(ii)) or errors in the proper calculation of
closing credits or changes including, but not limited to, Seller’s Costs and
Buyer’s Costs under Article XI, below, and Adjustments under Article XII,
below.

          7.2
Buyer’s Representations, Warranties and Covenants. Buyer represents,
warrants and covenants: 

                    (a)
Authority. Buyer is a corporation duly formed, validly existing and in
good standing in the Commonwealth of Virginia. Buyer has received or will have
received by the applicable Closing Date all necessary authorization of the
Board of Directors of Buyer to complete the transactions contemplated by this
Contract. No other consent or approval of any person, entity or governmental
authority is required for the execution, delivery or performance by Buyer of
this Contract, and this Contract is hereby binding and enforceable against
Buyer.

                    (b)
Bankruptcy. Buyer is not insolvent nor the subject of any bankruptcy
proceeding, receivership proceeding or other insolvency, dissolution,
reorganization or similar proceeding.

          7.3 Survival.
All of the representations and warranties are true, correct and complete in all
material respects as of the date hereof and the statements set forth therein
(without qualification or limitation as to a party’s knowledge thereof except
as expressly provided for in this Article VII) shall be true, correct and
complete in all material respects as of the Closing Date. All of the
representations, warranties and covenants made herein shall survive Closing for
a period of one (1) years and shall not be deemed to merge into or be waived by
the Deed or any other closing documents.

ARTICLE VIII

ADDITIONAL COVENANTS

          8.1
Subsequent Developments. After the date of this Contract and until the
Closing Date, Seller shall use best efforts to keep Buyer fully informed of all
subsequent developments of which Seller has knowledge (“Subsequent Developments”)
which would cause any of Seller’s 

17

representations or warranties contained in this Contract to be no
longer accurate in any material respect.

          8.2 Operations.
From and after the date hereof through the Closing on the Property, Seller
shall comply with the Existing Management Agreement and the Existing Franchise
Agreement and keep the same in full force and effect and shall perform and
comply with all of the following subject to and in accordance with the terms of
such agreements:

                    (a)
Continue to maintain the Property generally in accordance with past practices
of Seller and pursuant to and in compliance with the Existing Management
Agreement and the Existing Franchise Agreement, including, without limitation,
(i) using reasonable efforts to keep available the services of all present
employees at the Hotel and to preserve its relations with guests, suppliers and
other parties doing business with Seller with respect to the Hotel, (ii)
accepting booking contracts for the use of the Hotel’s facilities retaining
such bookings in accordance with the terms of the Existing Management Agreement
and the Existing Franchise Agreement, (iii) maintaining the current level of
advertising and other promotional activities for the Hotel’s facilities, (iv)
maintaining the present level of insurance with respect to the Hotel in full
force and effect until the Closing Date for the Hotel and (v) remaining in
compliance in all material respects with all current Licenses;

                    (b)
Keep, observe, and perform in all material respects all its obligations under
and pursuant to the Leases, the Service Contracts, the FF&E Leases, the
Existing Management Agreement, the Existing Franchise Agreement, the Contracts,
Plans and Specs, the Warranties and all other applicable contractual
arrangements relating to the Hotel;

                    (c)
Not cause or permit the removal of FF&E from the Hotel except for the
purpose of discarding worn and valueless items that have been replaced with
FF&E of equal or better quality; timely make all repairs, maintenance, and
replacements to keep all FF&E and all other Personal Property and all Real
Property in good operating condition; keep and maintain the Hotel in a good
state of repair and condition, reasonable and ordinary wear and tear excepted;
and not commit waste of any portion of the Hotel;

                    (d)
Maintain the levels and quality of the Personal Property generally at the
levels and quality existing on the date hereof and keep merchandise, supplies
and inventory adequately stocked, consistent with good business practice, as if
the sale of the Hotel hereunder were not to occur, including, without
limitation, maintaining linens and bath towels at least at a 2-par level for
all suites or rooms of the Hotel;

                    (e)
Advise Buyer promptly of any litigation, arbitration, or administrative hearing
before any court or governmental agency concerning or affecting the Hotel which
is instituted or threatened after the date of this Contract or if any
representation or warranty contained in this Contract shall become false;

                    (f)
Not take, or purposefully omit to take, any action that would have the effect
of violating any of the representations, warranties, covenants or agreements of
Seller contained in this Contract;

18

                    (g)
Pay or cause to be paid all taxes, assessments and other impositions levied or
assessed on the Hotel or any part thereof prior to the delinquency date, and comply
with all federal, state, and municipal laws, ordinances, regulations and orders
relating to the Hotel;

                    (h)
Not sell or assign, or enter into any agreement to sell or assign, or create or
permit to exist any lien or encumbrance (other than a Permitted Exception) on,
the Property or any portion thereof; and

                    (i)
Not allow any permit, receipt, license, franchise or right currently in
existence with respect to the operation, use, occupancy or maintenance of the
Hotel to expire, be canceled or otherwise terminated.

          Seller
shall promptly furnish to Buyer copies of all new, amended or extended FF&E
Leases, Service Contracts, Leases and other contracts or agreements (other than
routine hotel room bookings entered into in the ordinary course of business)
relating to the Hotel and entered into by the Manager prior to Closing;
provided, however, that in the case of any of the foregoing entered into by the
Manager on its own behalf, only to the extent Seller has knowledge thereof or a
copy of which is obtainable from the Manager. Buyer shall have the right to
extend the Review Period for a period of five (5) Business Days in order to
review any of the foregoing that are not received by Buyer at least five (5)
Business Days prior to the expiration of the Review Period. Seller shall not,
without first obtaining the written approval of Buyer, which approval shall not
be unreasonably withheld, delayed or conditioned enter into any new FF&E
Leases, Service Contracts, Leases or other contracts or agreements related to
the Hotel, or extend any existing such agreements, unless such agreements (x)
can be terminated, without penalty, upon thirty (30) days’ prior notice or (y)
will expire prior to the Closing Date.

          8.3 Third
Party Consents. Prior to the Closing Date, Seller shall, at its expense,
(i) obtain any and all third party consents and approvals (x) required in order
to transfer the Hotel to Buyer (other than the Franchisor, liquor licenses, and
all related licenses, permits or approvals which require issuance in Buyer’s
name) or (y) which, if not obtained, would materially adversely affect the
operation of the Hotel, including, without limitation, all consents and
approvals referred to on Exhibit D and (ii) use best efforts to obtain
all other third party consents and approvals (all of such consents and
approvals in (i) and (ii) above being referred to collectively as, the “Third
Party Consents”).

          8.4 Employees.
Upon reasonable prior notice to Seller by Buyer, Buyer and its employees,
representatives and agents shall have the right to communicate with Seller’s
staff, and, subject to the approval of the Manager, the Hotel staff and the
Manager’s staff, including without limitation the general manager, the director
of sales, the engineering staff and other key management employees of the
Hotel, at any time before Closing. Buyer shall not interfere with the
operations of the Hotel while engaging in such communication in a manner that
materially adversely affects the operation of any Property or the Existing
Management Agreements. 

          8.5 Estoppel
Certificates. Seller shall obtain from (i) each tenant under any Lease
affecting the Hotel which results in annual revenue greater than $12,000 (but
not from current or prospective occupants of hotel rooms and suites within the
Hotel) and (ii) each lessor under any FF&E Lease in excess of $100,000 for
the Hotel identified by Buyer as a material FF&E Lease,

19

the estoppel certificates substantially in the forms provided by Buyer
to Seller during the Review Period, and deliver to Buyer not less than five (5)
days before the Closing.

          8.6 Access
to Financial Information. Buyer’s representatives shall have access to, and
Seller and its Affiliates shall cooperate with Buyer and furnish upon request,
all financial and other information relating to the Hotel’s operations to the
extent necessary to enable Buyer’s representatives to prepare audited financial
statements in conformity with Regulation S-X of the Securities and Exchange
Commission (the “SEC”) and other applicable rules and
regulations of the SEC and to enable them to prepare a registration statement,
report or disclosure statement for filing with the SEC on behalf of Buyer or
its Affiliates, whether before or after Closing and regardless of whether such
information is included in the Records to be transferred to Buyer hereunder.
Seller shall also provide to Buyer’s representative a signed representation
letter in form and substance reasonably acceptable to Seller sufficient to
enable an independent public accountant to render an opinion on the financial
statements related to the Hotel. Buyer will reimburse Seller for costs
reasonably incurred by Seller to comply with the requirements of the preceding sentence
to the extent that Seller is required to incur costs not in the ordinary course
of business for third parties to provide such representation letters. The
provisions of this Section shall survive Closing or termination of this
Contract.

          8.7 Bulk
Sales. At Seller’s risk and expense, Seller shall take all steps necessary
to comply with the requirements of a transferor under all bulk transfer laws,
if any, that are applicable to the transactions contemplated by this Contract. 

          8.8 Indemnification.
If the transactions contemplated by this Contract are consummated as provided
herein:

                    (a)
Indemnification of Buyer. Without in any way limiting or diminishing the
warranties, representations or agreements herein contained or the rights or
remedies available to Buyer for a breach hereof (except as expressly provided
therein), Seller hereby agrees to indemnify, defend and hold harmless Buyer,
its Affiliates and its and such Affiliates’ officers, shareholders and
employees from and against all losses, judgments, liabilities, claims, damages
or expenses (including reasonable attorneys’ fees) of every kind, nature and
description in existence before, on or after Closing, whether known or unknown,
absolute or continent, joint or several, arising out of or relating to:

	
  

 	
  

 
	
  

 	
                               (i)
 any claim made or asserted against Buyer or any of the Property by a creditor
 of Seller, including any claims based on or alleging a violation of any bulk
 sales act or other similar laws;

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the breach of any representation, warranty, covenant or agreement of Seller
 contained in this Contract but subject to the Agreed-Upon Limit;

 
	
  

 	
  

 
	
  

 	
                               (iii)
 any liability or obligation of Seller not expressly assumed by Buyer pursuant
 to this Contract or otherwise;

 
	
  

 	
  

 
	
  

 	
                               (iv)
 any claim made or asserted by an employee of Seller arising out of Seller’s
 decision to sell the Property; and

 

20

	
  

 	
  

 
	
  

 	
                               (v)
 the conduct and operation by or on behalf of Seller of its Hotel or the
 ownership, use or operation of its Property prior to Closing.

 

                    (b)
Indemnification of Seller. Without in any way limiting or diminishing the
warranties, representations or agreements herein contained or the rights or
remedies available to Seller for a breach hereof, Buyer hereby agrees, with
respect to this Contract, to indemnify, defend and hold harmless Seller from
and against all losses, judgments, liabilities, claims, damages or expenses
(including reasonable attorneys’ fees) of every kind, nature and description in
existence before, on or after Closing, whether known or unknown, absolute or
contingent, joint or several, arising out of or relating to:

	
  

 	
  

 
	
  

 	
                               (i)
 the breach of any representation, warranty, covenant or agreement of Buyer
 contained in this Contract; 

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the conduct and operation by Buyer of its business at the Hotel or the
 ownership, use of or operation of its Property after the Closing; and

 
	
  

 	
  

 
	
  

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

 

                    (c)
Indemnification Procedure for Claims of Third Parties. Indemnification,
with respect to claims resulting from the assertion of liability by those not
parties to this Contract (including governmental claims for penalties, fines
and assessments), shall be subject to the following terms and conditions:

	
  

 	
  

 
	
  

 	
                               (i)
 The party seeking indemnification (the “Indemnified Party”) shall give prompt
 written notice to the party or parties from which it is seeking
 indemnification (the “Indemnifying Party”) of any assertion of liability by a
 third party which might give rise to a claim for indemnification based on the
 foregoing provisions of this Section 8.8, which notice shall state the nature
 and basis of the assertion and the amount thereof, to the extent known;
 provided, however, that no delay on the part of the Indemnified Party in
 giving notice shall relieve the Indemnifying Party of any obligation to
 indemnify unless (and then solely to the extent that) the Indemnifying Party
 is prejudiced by such delay.

 
	
  

 	
  

 
	
  

 	
                               (ii)
 If in any action, suit or proceeding (a “Legal Action”) the relief sought is
 solely the payment of money damages, and if the Indemnifying Party
 specifically agrees in writing to indemnify such Indemnified Party with
 respect thereto and demonstrates to the reasonable satisfaction of such
 Indemnified Party its financial ability to do so, the Indemnifying Party
 shall have the right, commencing thirty (30) days after such notice, at its
 option, to elect to settle, compromise or defend, pursuant to this paragraph,
 by its own counsel and at its own expense, any such Legal Action involving
 such Indemnified Party’s asserted liability. If the Indemnifying Party does
 not undertake to settle, compromise or defend any such Legal Action, such
 settlement, compromise or defense shall be conducted in the sole discretion
 of such Indemnified Party, but such Indemnified Party shall provide the
 Indemnifying Party with such information concerning such settlement,
 compromise or defense as the Indemnifying Party may reasonably 

 

21

	
  

 	
  

 
	
  

 	
 request from time to time. If the Indemnifying Party undertakes to
 settle, compromise or defend any such asserted liability, it shall notify
 such Indemnified Party in writing of its intention to do so within thirty
 (30) days of notice from such Indemnified Party provided above.

 
	
  

 	
  

 
	
  

 	
                               (iii)
 Notwithstanding the provisions of the previous subsection of this Contract,
 until the Indemnifying Party shall have assumed the defense of the Legal
 Action, the defense shall be handled by the Indemnified Party. Furthermore,
 (x) if the Indemnified Party shall have reasonably concluded that there are
 likely to be defenses available to it that are different from or in addition
 to those available to the Indemnifying Party; (y) if the Legal Action
 involves other than money damages and seeks injunctive or other equitable
 relief; or (z) if a judgment against Buyer, as the Indemnified Party, in the
 Legal Action will, in the good faith opinion of Buyer, establish a custom or precedent
 which will be adverse to the best interest of the continuing business of the
 Hotel, the Indemnifying Party, shall not be entitled to assume the defense of
 the Legal Action and the defense shall be handled by the Indemnified Party,
 provided that, in the case of clause (z), the Indemnifying Party shall have
 the right to approve legal counsel selected by the Indemnified Party, such
 approval not to be unreasonably withheld, delayed or conditioned. If the
 defense of the Legal Action is handled by the Indemnified Party under the
 provisions of this subsection, the Indemnifying Party shall pay all legal and
 other expenses reasonably incurred by the Indemnified Party in conducting
 such defense.

 
	
  

 	
  

 
	
  

 	
                               (iv)
 In any Legal Action initiated by a third party and defended by the
 Indemnified Party (w) the Indemnified Party shall have the right to be
 represented by advisory counsel and accountants, at its own expense, (x) the
 Indemnifying Party shall keep the Indemnified Party fully informed as to the
 status of such Legal Action at all stages thereof, whether or not the
 Indemnified Party is represented by its own counsel, (y) the
 Indemnifying Party shall make available to the Indemnified Party and its
 attorneys, accountants and other representatives, all books and records of
 Seller relating to such Legal Action and (z) the parties shall render to each
 other such assistance as may be reasonably required in order to ensure the
 proper and adequate defense of such Legal Action.

 
	
  

 	
  

 
	
  

 	
                               (v)
 In any Legal Action initiated by a third party and defended by the
 Indemnifying Party, the Indemnifying Party shall not make settlement of any
 claim without the written consent of the Indemnified Party, which consent
 shall not be unreasonably withheld, delayed or conditioned. Without limiting
 the generality of the foregoing, it shall not be deemed unreasonable to
 withhold consent to a settlement involving injunctive or other equitable
 relief against Buyer or its respective assets, employees, Affiliates or
 business, or relief which Buyer reasonably believes could establish a custom
 or precedent which will be adverse to the best interests of its continuing
 business.

 

          8.9
Escrow Funds. To provide for the timely payment of any post-closing
claims by Buyer against Seller hereunder, at Closing, Seller shall deposit an
amount equal to One Hundred Fifty Thousand and No/100 Dollars ($150,000.00)
(the “Escrow
Funds”) which shall be withheld from the Purchase Price payable
to Seller and shall be deposited for a period of one (1) 

22

year in an escrow account with the Title Company pursuant to an escrow
agreement reasonably satisfactory in form and substance to Buyer and Seller
(the “Post-Closing
Agreement”), which escrow and Post-Closing Agreement shall be
established and entered into at Closing and shall be a condition to Buyer’s
obligations under this Contract. All earnings accrue to Seller and Seller may
direct investment thereof. If no claims have been asserted by Buyer against
Seller, or all such claims have been satisfied, within such 1-year period, the
Escrow Funds deposited by Seller shall be released to Seller.

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

ARTICLE IX

CONDITIONS FOR CLOSING

          9.1 Buyer’s
Conditions for Closing. Unless otherwise waived in writing, and without
prejudice to Buyer’s right to cancel this Contract during the Review Period,
the duties and obligations of Buyer to proceed to Closing under the terms and
provisions of this Contract are and shall be expressly subject to strict
compliance with, and satisfaction or waiver of, each of the conditions and
contingencies set forth in this Section 9.1, each of which shall be deemed
material to this Contract. In the event of the failure of any of the conditions
set forth in this Section 9.1 or of any other condition to Buyer’s obligations
provided for in this Contract, which condition is not waived in writing by
Buyer, Buyer shall have the right at its option to declare this Contract
terminated, in which case the Earnest Money Deposit and any interest thereon
shall be immediately returned to Buyer and each of the parties shall be
relieved from further liability to the other, except as otherwise expressly
provided herein, with respect to this Contract.

                    (a)
All of Seller’s representations and warranties contained in or made pursuant to
this Contract shall be true and correct in all material respects as if made
again on the Closing Date.

                    (b)
Buyer shall have received all of the instruments and conveyances listed in
Section 10.2.

                    (c)
Seller shall have performed, observed and complied in all material respects
with all of the covenants, agreements, closing requirements and conditions
required by this Contract to be performed, observed and complied with by
Seller, as and when required hereunder.

23

                    (d)
All Liquor Licenses shall be in full force and effect and shall remain in full
force and effect following Closing and shall have been or shall be transferred
to, or new Liquor Licenses issued to, the Manager or an Affiliate thereof
approved by Buyer at or as of Closing, and Buyer shall have received
satisfactory evidence thereof.

                    (e)
Third Party Consents in form and substance satisfactory to Buyer shall have
been obtained and furnished to Buyer.

                    (f)
The Escrow Funds shall have been deposited in the escrow account pursuant to
the Post-Closing Agreement and the parties thereto shall have entered into the
Post-Closing Agreement.

                    (g)
The Existing Management Agreement and the Existing Franchise Agreement shall
have been terminated.

                    (h)
Buyer and the Manager shall have executed and delivered the New Management
Agreement and Buyer and the Franchisor shall have executed and delivered the
New Franchise Agreement, in each case upon terms and conditions acceptable to
Buyer in its sole and absolute discretion.

                    (i)
The Existing Lender shall have approved and authorized the closing of the
assumption of the Existing Loan by Buyer.

          9.2 Seller’s
Conditions for Closing. Unless otherwise waived in writing, and without
prejudice to Seller’s right to cancel this Contract during the Review Period,
the duties and obligations of Seller to proceed to Closing under the terms and
provisions of this Contract are and shall be expressly subject to strict compliance
with, and satisfaction or waiver of, each of the conditions and contingencies
set forth in this Section 9.2, each of which shall be deemed material to this
Contract. In the event of the failure of any of the conditions set forth in
this Section 9.2, which condition is not waived in writing by Seller, Seller
shall have the right at its option to declare this Contract terminated and null
and void, in which case the remaining Earnest Money Deposit and any interest
thereon shall be immediately paid to Buyer and each of the parties shall be
relieved from further liability to the other, except as otherwise expressly
provided herein.

                    (a)
All of Buyer’s representations and warranties contained in or made pursuant to
this Contract shall be true and correct in all material respects as if made
again on the Closing Date.

                    (b)
Seller shall have received all of the money, instruments and conveyances listed
in Section 10.3.

                    (c)
Buyer shall have performed, observed and complied in all material respects with
all of the covenants, agreements, closing requirements and conditions required
by this Contract to be performed, observed and complied with by Buyer, as and
when required hereunder.

24

ARTICLE X

CLOSING AND CONVEYANCE

          10.1 Closing.
Unless otherwise agreed by Buyer and Seller, the Closing on the Property shall
occur on a date selected by Buyer that is the later to occur of (a) fifteen
(15) business days after expiration of the Review Period or (b) receipt by
Buyer of the New Franchise Agreement, or (c) the date that Existing Lender has
unconditionally committed to close on the assumption of the Existing Loan by,
and consent to the transfer of the Property to, Buyer; provided that in each
case all conditions to Closing by Buyer hereunder have been satisfied. The date
on which the Closing is to occur as provided in this Section 10.1, or such
other date as may be agreed upon by Buyer and Seller, is referred to in this
Contract as the “Closing Date” for the Property. The
Closing shall be held at 10:00 a.m. at the offices of the Title Company, or as
otherwise determined by Buyer and Seller.

          10.2 Deliveries
of Seller and Indemnitor. At Closing, Seller or Indemnitor, as applicable,
shall deliver to Buyer the following, and, as appropriate, all instruments
shall be properly executed and conveyance instruments to be acknowledged in
recordable form (the terms, provisions and conditions of all instruments not
attached hereto as Exhibits shall be mutually agreed upon by Buyer and Seller
prior to such Closing):

                    (a)
Deed. A Special Warranty deed conveying to Buyer fee simple title to the
Real Property, subject only to the Permitted Exceptions (the “Deed”).

                    (b)
Bills of Sale. Bills of sale to Buyer and/or its designated Lessee,
conveying title to the tangible Personal Property (other than the alcoholic
beverage inventories, which, at Buyer’s election and if permitted by applicable
law, shall be transferred by Seller to the Manager as holder of the Liquor
Licenses required for operation of the Hotel).

                    (c)
Existing Management and Franchise Agreements. The termination of the
Existing Management Agreement and the Existing Franchise Agreement.

                    (d)
General Assignments. Assignments of all of Seller’s right, title and
interest in and to all FF&E Leases, Service Contracts and Leases identified
on Exhibit C hereto (the “Hotel Contracts”). The assignment shall
also be a general assignment and shall provide for the assignment of all of
Seller’s right, title and interest in all Records, Warranties, Licenses,
Tradenames (except “Cool Pool”TM), Contracts, Plans and Specs and
all other intangible Personal Property applicable to the Hotel.

                    (e)
FIRPTA; 1099. A FIRPTA Affidavit or Transferor’s Certificate of
Non-Foreign Status as required by Section 1445 of the Internal Revenue Code and
an IRS Form 1099.

                    (f)
Title Company Documents. All affidavits, gap indemnity agreements and
other documents reasonably required by the Title Company. At Buyer’s sole
expense, Buyer shall have obtained an irrevocable commitment directly from the
Title Company (or in the event the Title Company is not willing to issue said
irrevocable commitment, then from such other national title company as may be
selected by either Buyer or Seller) for issuance of an Owner’s Policy of Title
Insurance to Buyer insuring good and marketable fee simple absolute title to
the 

25

Real Property constituting part of the Property, subject only to the
Permitted Exceptions in the amount of the Purchase Price.

                    (g)
Possession; Estoppel Certificates. Possession of the Property, subject
only to rights of guests in possession and tenants pursuant to written leases
included in the Leases, and estoppel certificates from tenants under Leases and
the lessors under FF&E Leases in form and substance acceptable to Buyer.

                    (h)
Vehicle Titles. The necessary certificates of titles duly endorsed for
transfer together with any required affidavits and other documentation
necessary for the transfer of title or assignment of leases from Seller to
Buyer of any motor vehicles used in connection with the Hotel’s operations.

                    (i)
Authority Documents. Certified copy of resolutions of the Managing
Members of Seller authorizing the sale of the Property contemplated by this
Contract, and/or other evidence reasonably satisfactory to Buyer and the Title
Company that the person or persons executing the closing documents on behalf of
Seller have full right, power and authority to do so, along with a certificate
of good standing of Seller from the State in which the Property is located.

                    (j)
Miscellaneous. Such other instruments as are contemplated by this
Contract to be executed or delivered by Seller, reasonably required by Buyer or
the Title Company, or customarily executed in the jurisdiction in which the
Hotel is located, to effectuate the conveyance of property similar to the
Hotel, with the effect that, after the Closing, Buyer will have succeeded to
all of the rights, titles, and interests of Seller related to the Hotel and
Seller will no longer have any rights, titles, or interests in and to the
Hotel.

                    (k)
Plans, Keys, Records, Etc. To the extent not previously delivered to and
in the possession of Buyer, all Contracts, Plans and Specs, all keys for the
Hotel (which keys shall be properly tagged for identification), all Records,
including, without limitation, all Warranties, Licenses, Leases, FF&E
Leases and Service Contracts for the Hotel.

                    (l)
Closing Statements. Seller’s Closing Statement, and a certificate
confirming the truth of Seller’s representations and warranties hereunder as of
the Closing Date.

                    (m)
Indemnification Agreement. At Closing, Indemnitor shall deliver to Buyer
the Indemnification Agreement.

                    (n)
PIP Escrow Agreement. At Closing, Seller shall deliver the PIP Escrow
Agreement.

          10.3 Buyer’s
Deliveries. At Closing of the Hotel, Buyer shall deliver the following:

                    (a)
Purchase Price. The balance of the Purchase Price, adjusted for the
adjustments provided for in Section 12.1, below, and less any sums to be
deducted therefrom as provided in Section 2.3. 

                    (b)
Authority Documents. Certified copy of resolutions of the Board of
Directors of Buyer authorizing the purchase of the Hotel contemplated by this
Contract, and/or 

26

other evidence satisfactory to Seller and the Title Company that the
person or persons executing the closing documents on behalf of Buyer have full
right, power and authority to do so.

                    (c)
Counterpart to assignments of the Hotel Contracts pursuant to which Buyer
agrees to perform assumed contracts and to hold Seller harmless therefrom.

                    (d)
Counterpart to Indemnification Agreement. 

                    (e)
Execution of a new Franchise Agreement.

                    (f)
Execution of Management Agreement with Indemnitor.

                    (g)
Miscellaneous. Such other instruments as are contemplated by this
Contract to be executed or delivered by Buyer, reasonably required by Seller or
the Title Company, or customarily executed in the jurisdiction in which the
Hotel is located, to effectuate the conveyance of property similar to the
Hotel, with the effect that, after the Closing, Buyer will have succeeded to
all of the rights, titles, and interests of Seller related to the Hotel and
Seller will no longer have any rights, titles, or interests in and to the
Hotel.

                    (h)
Closing Statements. Buyer’s Closing Statement, and a certificate
confirming the truth of Buyer’s representations and warranties hereunder as of
the Closing Date.

ARTICLE XI

COSTS

          All
Closing costs shall be paid as set forth below:

          11.1 Seller’s
Costs. In connection with the sale of the Property contemplated under this
Contract, Seller shall be responsible for costs and expenses of its attorneys,
accountants, appraisers and other professionals, consultants and
representatives as well as all transfer and recordation taxes (except any
related to the clerk’s fee or per page fee for recording of the deed),
including, without limitation, all transfer, mansion, sales, use or bulk
transfer taxes or like taxes on or in connection with the transfer of the Real
Property and the Personal Property constituting part of the Property pursuant
to the Bill of Sale, and all accrued taxes of Seller prior to Closing and
income, sales and use taxes and other such taxes of Seller attributable to the
sale of the Property to Buyer. Seller shall be responsible for all costs
related to the termination of the Existing Management Agreement as provided in
Article V. Seller shall also be responsible for payment of all prepayment
penalties and other amounts payable in connection with the pay-off of any liens
and/or indebtedness encumbering the Property including, without limitation, all
mortgages (other than the Existing Loan), liens, vehicle loans/leases and all
other loans. Seller shall also be responsible for any fees for the performance
of the property improvement plan (PIP) review and report by the Franchisor and
the cost of completing the PIP items (including a full soft-goods renovation),
whether such costs are to be incurred before or after Closing. To the extent
any PIP items are not completed prior to Closing, Escrow Agent shall withhold
the amount necessary to complete all PIP items from Seller’s proceeds of sale
and shall hold such funds in an escrow account and pursuant to a PIP escrow
agreement to be executed and delivered at Closing (the “PIP Escrow Agreement”).
Seller shall be authorized to use Lender Required 

27

Reserves for completion of the PIP and the PIP Escrow Agreement shall
so provide. Seller shall not be required to restore Lender Required Reserves
and it is the understating of both Seller and Buyer that once the PIP has been
completed, the Lender Required Reserve account balance will likely be reduced
to zero ($0). To the extent that the cost of the PIP exceeds the Lender
Required Reserve account balance, Seller shall be responsible for those
additional costs. The PIP Escrow Agreement shall also expressly permit the
immediate reimbursement or direct payment of deposits required for purchase
orders for items to be included in the PIP, including without limitation, all
soft goods. In addition, the PIP escrow Agreement shall permit monthly progress
payments for work that extends beyond the Closing Date. The amount of the
monthly progress payment shall equal the estimated completion percentage for
the PIP as confirmed and approved by a representative of Buyer.

          11.2 Buyer’s
Costs. In connection with the purchase of the Property contemplated under
this Contract, Buyer shall be responsible for the costs and expenses of its
attorneys, accountants and other professionals, consultants and
representatives. Buyer shall also be responsible for the costs and expenses in
connection with the preparation of any environmental report, any update to the
survey and the costs and expenses of preparation of the title insurance
commitment and the issuance of the title insurance policy contemplated by
Article IV and the per page recording charges and clerk’s fee for the Deed (if
applicable). 

ARTICLE XII

ADJUSTMENTS

          12.1 Adjustments.
Unless otherwise provided herein, at Closing, adjustments between the parties
shall be made as of 11:59 p.m. on the Closing Date (the “Cutoff Time”), with
the income and expenses accrued prior to the Closing Date being allocated to
Seller and the income and expenses accruing on and after the Closing Date being
allocated to Buyer, all as set forth below. All of such adjustments and
allocations shall be made in cash at Closing and shall be collected through
and/or adjusted in accordance with the terms of the Existing Management
Agreement. Except as otherwise expressly provided herein, all apportionments
and adjustments shall be made on an accrual basis in accordance with generally
accepted accounting principles. Buyer and Seller shall request that the Manager determine
the apportionments, allocations, prorations and adjustments as of the Cutoff
Time.

                    (a)
Taxes. All real estate taxes, personal property taxes, or any other
taxes and special assessments (special or otherwise) of any nature upon the
Property levied, assessed or pending for the calendar year in which the Closing
occurs (including the period prior to Closing, regardless of when due and
payable) shall be prorated as of the Cutoff Time and, if no tax bills or
assessment statements for such calendar year are available, such amounts shall
be estimated on the basis of the best available information for such taxes and
assessments that will be due and payable on the Hotel for the calendar year in
which Closing occurs.

                    (b)
Utilities. All suppliers of utilities shall be instructed to read meters
or otherwise determine the charges owing as of the Closing Date for services
prior thereto, which charges shall be allocated to Seller. Charges accruing
after Closing shall be allocated to Buyer. If elected by Seller, Seller shall
be given credit, and Buyer shall be charged, for any utility deposits
transferred to and received by Buyer at Closing.

28

                    (c)
Income/Charges. All rents, income and charges receivable or payable
under any Leases and Hotel Contracts applicable to the Property, and any
deposits, prepayments and receipts thereunder, shall be prorated between Buyer
and Seller as of the Cutoff Time.

                    (d)
Accounts. All Lender Required Reserves (as adjusted pursuant to Section
11.1 above), as well as all FF&E accounts, and all PIP accounts, but
excluding amounts held in tax and insurance escrow accounts and utility
deposits to the extent excluded from the definition of Deposits, shall become
the property of Buyer, without additional charge to Buyer and without Buyer
being required to fund the same. 

                    (e)
Guest Ledger. Subject to (f) below, all accounts receivable of
registered guests at the Hotel who have not checked out and were occupying
rooms as of the Cutoff Time, shall be prorated as provided herein.

                    (f)
Room Rentals. All receipts from guest room rentals and other suite
revenues for the night in which the Cutoff Time occurs shall be split equally
between Buyer and Seller.

                    (g)
Advance Deposits. All prepaid rentals, room rental deposits, and all
other deposits for advance registration, banquets or future services to be
provided on and after the Closing Date shall be credited to Buyer.

                    (h)
Accounts Receivable. To the extent not apportioned at Closing and
subject to (e) and (f) above, all accounts receivable and credit card claims as
of the Cutoff Time shall remain the property of Seller, and Seller and Buyer
agree that the monies received from debtors owing such accounts receivable
balances after Closing, unless otherwise provided in the New Management
Agreement, shall be applied as expressly provided in such remittance, or if not
specified then to the Seller’s outstanding invoices to such account debtors in
chronological order beginning with the oldest invoices, and thereafter, to
Buyer’s account.

                    (i)
Accounts Payable. To the extent not apportioned at Closing, any
indebtedness, accounts payable, liabilities or obligations of any kind or
nature related to Seller or the Property for the periods prior to and including
the Closing Date shall be retained by Seller and promptly allocated to Seller
and evidence thereof shall be provided to Buyer, and Buyer shall not be or
become liable therefor, except as expressly assumed by Buyer pursuant to this
Contract or otherwise, and invoices received in the ordinary course of business
prior to Closing shall be allocated to Seller at Closing.

                    (j)
Restaurants, Bars, Machines, Other Income. All monies received in
connection with bar, restaurant, banquet and similar and other services at the
Hotel (other than amounts due from any guest and included in room rentals)
prior to the close of business for each such operation for the night in which
the Cutoff Time occurs shall belong to Seller, and all other receipts and
revenues (not previously described in this Section 12.1) from the operation of
any department of the Hotel shall be prorated between Seller and Buyer at
Closing.

                    (k)
Existing Loan Interest. Interest on the outstanding principal balance of
the Existing Loan shall be prorated between Seller and Buyer as of the Closing
Date with interest up to and including the Closing Date being allocated to
Seller. If interest is paid to the Existing 

29

Lender in arrears, then Seller shall credit Buyer with the interest
payment for the month in which Closing occurs.

          12.2 Reconciliation
and Final Payment. Seller and Buyer shall reasonably cooperate after
Closing to make a final determination of the allocations and prorations
required under this Contract within one hundred eighty (180) days after the
Closing Date; provided, however, failure to make a final reconciliation within
180 days shall not relieve the parties’ obligations under this section to make
a final reconciliation. Upon the final reconciliation of the allocations and
prorations under this Section, the party which owes the other party any sums
hereunder shall pay such party such sums within ten (10) days after the
reconciliation of such sums. The obligations to calculate such prorations, make
such reconciliations and pay any such sums shall survive the Closing.

          12.3 Employees.
Unless Buyer or the Manager expressly agrees otherwise, none of the employees
of the Hotel shall become employees of Buyer, as of the Closing Date; instead,
such employees shall become employees of the Manager or Affiliate of Manager.
Seller shall not give notice under any applicable federal or state plant
closing or similar act, including, if applicable, the Worker Adjustment and
Retraining Notification Provisions of 29 U.S.C., Section 2102, the parties having
agreed that a mass layoff, as that term is defined in 29 U.S.C., 2101(a)(3),
will not have occurred. Any liability for payment of all wages, salaries and
benefits, including, without limitation, accrued vacation pay, sick leave,
bonuses, pension benefits, COBRA rights, and other benefits accrued or earned
by and due to employees at the Hotel through the Cutoff Time, together with
F.I.C.A., unemployment and other taxes and benefits due with respect to such
employees for such period, shall be charged to Seller, in accordance with the
Existing Management Agreement, for the purposes of the adjustments to be made
as of the Cutoff Time. All liability for wages, salaries and benefits of the
employees accruing in respect of and attributable to the period from and after
Closing shall be charged to Buyer, in accordance with the New Management
Agreement. To the extent applicable, all such allocations and charges shall be
adjusted in accordance with the provisions of the Existing Management
Agreement.

ARTICLE XIII

CASUALTY AND CONDEMNATION

          13.1 Risk
of Loss; Notice. Prior to Closing and the delivery of possession of the
Property to Buyer in accordance with this Contract, all risk of loss to the
Property (whether by casualty, condemnation or otherwise) shall be borne by
Seller. In the event that (a) any loss or damage to the Hotel shall occur prior
to the Closing Date as a result of fire or other casualty, or (b) Seller
receives notice that a governmental authority has initiated or threatened to
initiate a condemnation proceeding affecting the Hotel, Seller shall give Buyer
immediate written notice of such loss, damage or condemnation proceeding (which
notice shall include a certification of (i) the amounts of insurance coverages
in effect with respect to the loss or damage and (ii) if known, the amount of
the award to be received in such condemnation).

          13.2 Buyer’s
Termination Right. If, prior to Closing and the delivery of possession of
the Property to Buyer in accordance with this Contract, (a) any condemnation
proceeding shall be pending against a substantial portion of the Hotel or (b)
there is any substantial casualty loss or damage to the Hotel, Buyer shall have
the option to terminate this Contract, provided Buyer 

30

delivers written notice to Seller of its election within twenty (20)
days after the date Seller has delivered Buyer written notice of any such loss,
damage or condemnation as provided above, and in such event, the Earnest Money
Deposit, and any interest thereon, shall be delivered to Buyer and thereafter,
except as expressly set forth herein, no party shall have any further
obligation or liability to the other under this Contract. In the context of
condemnation, “substantial” shall mean condemnation of such portion of a Hotel (or
access thereto) as could, in Buyer’s reasonable judgment, render use of the
remainder impractical or unfeasible for the uses herein contemplated, and, in
the context of casualty loss or damage, “substantial” shall mean a loss or
damage in excess of One Hundred Thousand and No/100 Dollars ($100,000.00) in
value.

          13.3 Procedure
for Closing. If Buyer shall not timely elect to terminate this Contract
under Section 13.2 above, or if the loss, damage or condemnation is not
substantial, each applicable Seller agrees to pay to Buyer at the Closing all
insurance proceeds or condemnation awards which Seller has received as a result
of the same, plus an amount equal to the insurance deductible, and assign to
Buyer all insurance proceeds and condemnation awards payable as a result of the
same, in which event the Closing shall occur without Seller replacing or
repairing such damage. In the case of damage or casualty, at Buyer’s election,
Seller shall repair and restore the Property to its condition immediately prior
to such damage or casualty and shall assign to Buyer all excess insurance
proceeds.

ARTICLE XIV

DEFAULT REMEDIES 

          14.1 Buyer
Default. If Buyer defaults under this Contract after the Review Period, and
such default continues for thirty (30) days following written notice from
Seller (provided no notice shall extend the time for Closing), then at Seller’s
election by written notice to Buyer, this Contract shall be terminated and of
no effect, in which event the Earnest Money Deposit, including any interest
thereon, shall be paid to and retained by the Seller as Seller’s sole and
exclusive remedy hereunder, and as liquidated damages for Buyer’s default or
failure to close, and both Buyer and Seller shall thereupon be released from
all obligations hereunder.

          14.2 Seller
Default. If Seller defaults under this Contract, and such default continues
for thirty (30) days following written notice from Buyer, Buyer may elect, as
Buyer’s sole and exclusive remedy, either (i) to terminate this Contract by
written notice to Seller delivered to that Seller at any time prior to the
completion of such cure, in which event the Earnest Money Deposit, including
any interest thereon, shall be returned to the Buyer, and thereafter both the
Buyer and Seller shall thereupon be released from all obligations with respect
to this Contract, except as otherwise expressly provided herein; or (ii) to
treat this Contract as being in full force and effect by written notice to
Seller delivered to Seller at any time prior to the completion of such cure, in
which event the Buyer shall have the right to an action against the defaulting
Seller for damages, specific performance and all other rights and remedies
available at law or in equity. In the absence of an election of remedy on or
before the end of any cure period (but in no event later than thirty (30) days
after initial notice of default), the remedy set forth in 14.2(i) above shall
be deemed elected. 

          14.3 Attorney’s
Fees. Anything to the contrary herein notwithstanding, if it shall be
necessary for either the Buyer or Seller to employ an attorney to enforce its
rights pursuant to 

31

this Contract because of the default of the other party, then the
non-prevailing party shall reimburse the prevailing party for the prevailing
party’s reasonable attorneys’ fees, costs and expenses.

          14.4 Limitation
of Claims. No claim on account of a Seller default under Section 14.2
above, shall be brought against Seller unless damages exceed the Agreed-Upon
Limit. Any such claim of Seller default which does not result in the
termination of this Offer must be asserted within one (1) year of the Closing
Date or it shall be deemed waived. 

ARTICLE XV

NOTICES

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

	
  

 	
  

 	
  

 
	
  

 	
 If to Buyer:

 	
 Apple Ten
 Hospitality Ownership, Inc.

 
	
  

 	
  

 	
 814 E. Main
 Street

 
	
  

 	
  

 	
 Richmond,
 Virginia 23219

 
	
  

 	
  

 	
 Attention:
 Sam Reynolds

 
	
  

 	
  

 	
 Fax No.:
 (804) 344-8129

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
 Apple REIT Ten,
 Inc.

 
	
  

 	
  

 	
 814 E. Main
 Street

 
	
  

 	
  

 	
 Richmond,
 Virginia 23219

 
	
  

 	
  

 	
 Attention:
 Legal Dept.

 
	
  

 	
  

 	
 Fax No.:
 (804) 344-8129

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Seller:

 	
 Chicago
 North Shore Lodging Associates, L.L.C.

 
	
  

 	
  

 	
 c/o Raymond
 Management Company

 
	
  

 	
  

 	
 8333
 Greenway Blvd., Ste. 200

 
	
  

 	
  

 	
 Middleton,
 WI 53562

 
	
  

 	
  

 	
 Attention:
 Bob Bruni

 
	
  

 	
  

 	
 Fax No.:
 (608) 662-8365

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Indemnitor

 	
 Raymond
 Management Company

 
	
  

 	
  

 	
 8333
 Greenway Blvd., Ste 200

 
	
  

 	
  

 	
 Middleton,
 WI 53562

 
	
  

 	
  

 	
 Attn: Bob
 Bruni 

 

32

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fax No.:
 (608) 662-8365

 

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

ARTICLE XVI

MISCELLANEOUS

          16.1 Performance.
Time is of the essence in the performance and satisfaction of each and every
obligation and condition of this Contract.

          16.2 Binding
Effect; Assignment. This Contract shall be binding upon and shall inure to
the benefit of each of the parties hereto, their respective successors and
assigns.

          16.3 Entire
Agreement. This Contract and the Exhibits constitute the sole and entire
agreement between Buyer and Seller with respect to the subject matter hereof.
No modification of this Contract shall be binding unless signed by both Buyer
and Seller.

          16.4 Governing
Law. The validity, construction, interpretation and performance of this
Contract shall in all ways be governed and determined in accordance with the
laws of the State in which the Real Property is located (without regard to
conflicts of law principles).

          16.5 Captions.
The captions used in this Contract have been inserted only for purposes of
convenience and the same shall not be construed or interpreted so as to limit
or define the intent or the scope of any part of this Contract.

          16.6 Confidentiality.
Except as either party may reasonably determine is required by law (including
without limitation laws and regulations applicable to Buyer or its Affiliates
who may be public companies): (i) prior to Closing, Buyer and Seller shall not
disclose the existence of this Contract or their respective intentions to
purchase and sell the Property or generate or participate in any publicity or
press release regarding this transaction, except to Buyer’s and Seller’s legal
counsel and lender, Buyer’s consultants and agents, the Manager, the Manager,
the Franchisor and the Title Company and except as necessitated by Buyer’s Due
Diligence Examination, unless both Buyer and Seller agree in writing and as
necessary to effectuate the transactions contemplated hereby and (ii) following
Closing, the parties shall coordinate any public disclosure or release of
information related to the transactions contemplated by this Contract, and no
such disclosure or release shall be made without the prior written consent of
Buyer, and no press release shall be made without the prior written approval of
Buyer and Seller. 

          16.7 Closing
Documents. To the extent any Closing documents are not attached hereto at
the time of execution of this Contract, Buyer and Seller shall negotiate in
good faith with respect to the form and content of such Closing documents prior
to Closing.

          16.8 Counterparts.
This Contract may be executed in counterparts by the parties hereto, and by
facsimile signature, and each shall be considered an original and all of which
shall constitute one and the same agreement.

33

          16.9 Severability.
If any provision of this Contract shall, for any reason, be adjudged by any
court of competent jurisdiction to be invalid or unenforceable, such judgment
shall not affect, impair or invalidate the remainder of this Contract but shall
be confined in its operation to the provision or provisions hereof directly
involved in the controversy in which such judgment shall have been rendered,
and this Contract shall be construed as if such provision had never existed,
unless such construction would operate as an undue hardship on Seller or Buyer
or would constitute a substantial deviation from the general intent of the
parties as reflected in this Contract.

          16.10 Interpretation.
For purposes of construing the provisions of this Contract, the singular shall
be deemed to include the plural and vice versa and the use of any
gender shall include the use of any other gender, as the context may require.

          16.11
(Intentionally Omitted)

          16.12 Further
Acts. In addition to the acts, deeds, instruments and agreements recited
herein and contemplated to be performed, executed and delivered by Buyer and
Seller, Buyer and Seller shall perform, execute and deliver or cause to be performed,
executed and delivered at the Closing or after the Closing, any and all further
acts, deeds, instruments and agreements and provide such further assurances as
the other party, the Franchisor, licensing authority, or the Title Company may
reasonably require to consummate the transaction contemplated hereunder.

          16.13 Joint
and Several Obligations. If Seller consists of more than one person or
entity (but not including member or members of Seller), each such person or
entity shall be jointly and severally liable with respect to the obligations of
Seller under this Contract.

ARTICLE XVII 

JOINDER BY INDEMNITOR

          17.1 Indemnification
by Indemnitor. Indemnitor hereby covenants and agrees that:

                    (a)
Indemnitor is and shall be jointly and severally liable with Seller for the
performance of all of Seller’s obligations and liabilities under this Contract
and all documents and instruments executed in connection therewith, including,
without limitation, all of Seller’s obligations and liabilities that survive
Closing;

                    (b)
The obligations of Indemnitor hereunder shall not be limited, diminished or
impaired in any way by virtue of any right or remedy Buyer may have against
Seller under this Contract or by virtue of any other provision of this
Contract;

                    (c)
Buyer shall not be obligated to proceed first against Seller before resorting
to Indemnitor under this Article XVII for payment and performance;

Indemnification claims and procedures with respect to the
indemnification obligations of Indemnitor under this Article XVII shall be
consistent with those provided for in Section 8.8(c) of this Contract. Seller
shall cause Indemnitor to provide, and Indemnitor shall provide, at Closing an
indemnification agreement in form and substance satisfactory in form and
substance to Buyer with respect to the foregoing indemnifications (the “Indemnification Agreement”), 

34

which shall be a condition to Buyer’s obligation to close under this
Contract. Except as provided in this Contract, the covenants, agreements,
representations and warranties of Indemnitor set forth in this Article XVII
shall be continuing, and shall not be deemed to merge into or be waived by the
Deeds or other closing documents and shall survive Closing on the Property.

[Signatures Begin on Following Page]

35

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 	
  

 
	
  

 	
 CHICAGO
 NORTH SHORE LODGING 

 
	
  

 	
 ASSOCIATES,
 L.L.C., a Wisconsin limited

 
	
  

 	
 liability
 company

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 By: 

 	
 /s/ C.J.
 Raymond

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
 Name: C.J.
 Raymond

 
	
  

 	
  

 	
  

 	
 Title:
 Managing Member

 
	
  

 	
  

 	
  

 
	
  

 	
 INDEMNITOR:

 
	
  

 	
  

 
	
  

 	
 RAYMOND
 MANAGEMENT COMPANY, INC, 

 a Wisconsin Corporation

 
	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ C.J.
 Raymond

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: C.J.
 Raymond

 
	
  

 	
 Title:
 President

 
	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC., 

 a Virginia corporation

 
	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ David
 Buckley

 
	
  

 	
  

 	

 

 
	
  

 	
 Name: David
 Buckley

 
	
  

 	
 Title: Vice
 President

 

36

EXHIBIT “A”

LEGAL DESCRIPTION OF LAND

Lots 1, 4 and 5, in resubdivision of Hampton Restaurant
subdivision, being a resubdivision of Lots 1-4, inclusive in Hampton Restaurant
subdivision of part of the southeast quarter and the southwest quarter of
Section 9, Township 41 North, Range 13 East of the Third Principal Meridian, according to
the plat thereof recorded June 17, 2002 as Document No. 0020680732, in the
Village of Skokie, in Cook County, Illinois.

Together with easements created by declaration and grant of easements
recorded October 8, 1998 as Document No. 98907634.

EXHIBIT
B

LIST OF FF&E

	
  

 	
  

 
	
 CHICAGO NORTH
 SHORE HAMPTON INN & SUITES

 
	
 Listing of
 Furniture, Fixtures & Equipment

 
	
 As of March 31,
 2011

 
	
  

 	
  

 
	
 Location =
 30-Room

 
	
 000245

 	
 Bed Bases (360)

 
	
 000246

 	
 HandiCap Bed Bases (18)

 
	
 000248

 	
 Curved Shower Rods (228)

 
	
 000295

 	
 Mattress - Queen (266)

 
	
 000298

 	
 Mattress - King (92)

 
	
 000312

 	
 Interior Signs - Evacuation

 
	
 000324

 	
 Tile - Guest Bath Floor

 
	
 000330

 	
 Rollaway Beds {5}

 
	
 000331

 	
 Artwork {8}

 
	
 000389

 	
 Kitchenette 62in. (52) - granite
 top

 
	
 000390

 	
 Kitchenette 68in. (2) - granite
 top

 
	
 000391

 	
 Kitchenette Cabinet 25in. 43in.
 (1)

 
	
 000392

 	
 Kitchenette Cabinet 36in. 25in.
 (2)

 
	
 000393

 	
 Artwork (583)

 
	
 000394

 	
 Bathroom Shelving for towels

 
	
 000395

 	
 Bed Bench (23)

 
	
 000397

 	
 Coffee Table (65)

 
	
 000398

 	
 Curved Desk (48)

 
	
 000399

 	
 Custom U Shaped door bottom

 
	
 000400

 	
 Data Port Lamp (140)

 
	
 000401

 	
 Desk Chairs (93)

 
	
 000402

 	
 Door Guards

 
	
 000403

 	
 Drapes

 
	
 000405

 	
 Floor Lamp (223)

 
	
 000406

 	
 Framed Desk Mirror - 36in. X
 36in. (228)

 
	
 000407

 	
 Framed Full Length Mirror -
 5’9in. X 2’8in. (225)

 
	
 000408

 	
 Room Desk Lamp (156)

 
	
 000409

 	
 Headboard - Queen (268)

 
	
 000410

 	
 Headboard King (91)

 
	
 000411

 	
 Ironing Board Hanger

 
	
 000412

 	
 Linwood Bedbase 10in. (10)

 
	
 000413

 	
 Lounge Chair (211)

 
	
 000414

 	
 Luggage Bench (164)

 
	
 000415

 	
 Luggage Rack Mahogany (20)

 
	
 000416

 	
 Night Stand (317)

 
	
 000417

 	
 Ottoman (210)

 
	
 000418

 	
 Round End Table (54)

 
	
 000419

 	
 Round Side Table (54)

 
	
 000420

 	
 Side Chair w/upholstered back
 (128)

 
	
 000421

 	
 Sleeper Sofa (65)

 
	
 000422

 	
 Table Desk (247)

 

2

	
  

 	
  

 
	
 000423

 	
 Towel Racks

 
	
 000424

 	
 TV Cabinet w/ Chest of drawers
 (128)

 
	
 000425

 	
 TV/Fridge/Micro Cabinet (154)

 
	
 000426

 	
 Undermount China Bowls (sink)
 (229)

 
	
 000429

 	
 Wall Lamp - Double (133)

 
	
 000430

 	
 Wall Lamp -Single (410)

 
	
 000431

 	
 Wardrobe - 2 door (1)

 
	
 000432

 	
 Wet Bar 82in. (13)

 
	
 Location =
 35-Room Equip

 
	
 000255

 	
 Clock Radios (234)

 
	
 000268

 	
 Shower Heads (222)

 
	
 000325

 	
 Microwaves (115)

 
	
 000332

 	
 GR Refrigerators {155}

 
	
 000333

 	
 GR TV’s 32” LCD

 
	
 000339

 	
 Mitel SX200ICP-VM, Call Acct, Rm
 Phones

 
	
 000357

 	
 DVD/VCR combo (50)

 
	
 000358

 	
 TV-LCD 32” (3)

 
	
 000436

 	
 Dish Washer (54)

 
	
 000437

 	
 Cooktop-Electric (56)

 
	
 000438

 	
 Television (2)

 
	
 000439

 	
 Hair Dryers (225)

 
	
 000440

 	
 Microwave Oven (58)

 
	
 000441

 	
 Night Lights (241)

 
	
 000442

 	
 Refrigerator (58)

 
	
 000443

 	
 Tissue Box Cover (225)

 
	
 Location =
 50-Common

 
	
 000056

 	
 Office Furniture

 
	
 000057

 	
 Safe

 
	
 000059

 	
 Office Cabinets & Shelving

 
	
 000060

 	
 Meeting Presentation System

 
	
 000061

 	
 Meeting Rm - AV Cart (3)

 
	
 000062

 	
 Meeting Rm - Chairs (130)

 
	
 000063

 	
 Meeting Rm - Conf Table

 
	
 000064

 	
 Meeting Rm - Overhead (2)

 
	
 000066

 	
 Meeting Rm - Tables (42)

 
	
 000071

 	
 ADA Telephones (2)

 
	
 000082

 	
 Guest Laundry Vending (2)

 
	
 000083

 	
 Guest Washers & Dryers (2)

 
	
 000102

 	
 Luggage Cart (2)

 
	
 000112

 	
 Dryer (3)

 
	
 000114

 	
 Employee Lockers (22)

 
	
 000116

 	
 Employee Table & Chairs (12)

 
	
 000117

 	
 Food Service - Ice Machine

 
	
 000121

 	
 Food Service Freezer (1)

 
	
 000122

 	
 Food Service Fridge (2)

 
	
 000125

 	
 Guest Safe Dep Boxes (22)

 
	
 000127

 	
 Housekeeping Cart (18)

 
	
 000128

 	
 Ice Machines (14)

 
	
 000131

 	
 Laundry Cart (12)

 
	
 000144

 	
 Washers (3)

 
	
 000145

 	
 Clearance 12’ 6” Car Port Sign

 
	
 000200

 	
 Custom Fireplace Screen

 
	
 000203

 	
 Portable Bar

 

3

	
  

 	
  

 
	
 000204

 	
 Water Softner System

 
	
 000220

 	
 Meeting Rm Contractor -
 Acoustical Ceiling

 
	
 000226

 	
 Meeting Rm Stack Chairs (30)

 
	
 000227

 	
 Meeting Rm Locks

 
	
 000228

 	
 Meeting Rm Banquet Table (4)
 60x30

 
	
 000229

 	
 Meeting Rm Tables (9) 18x60

 
	
 000230

 	
 Meeting Rm Artwork (2)

 
	
 000231

 	
 Meeting Rm Cart

 
	
 000234

 	
 Meeting Room Tables (15)

 
	
 000269

 	
 Suite Shop Graphics

 
	
 000317

 	
 Breakfast Chairs (68)

 
	
 000321

 	
 Tile, Elevators

 
	
 000337

 	
 Data props (4) wiring for bus.
 center

 
	
 000355

 	
 Kitchen & lunchroom counter
 top

 
	
 000359

 	
 Entry Mat

 
	
 000446

 	
 Acoustical Tile - Corridor

 
	
 000447

 	
 Artwork (72)

 
	
 000448

 	
 Bar Stool (16)

 
	
 000450

 	
 Bed Bench - Elevator Lobby (6)

 
	
 000451

 	
 Blinds/Drapes/Hardware

 
	
 000452

 	
 Break Room Cabinet

 
	
 000453

 	
 Breakfast Area Casework

 
	
 000454

 	
 Breakfast Area Sliding Doors

 
	
 000455

 	
 Breakfast solar shades

 
	
 000462

 	
 Chaise Lounge (2)

 
	
 000463

 	
 Classic Sling Chaise Lounge (6) -
 Pool Furn

 
	
 000464

 	
 Classic Sling Club Chair (23) -
 Pool Furn

 
	
 000465

 	
 Coffee Serving Table

 
	
 000466

 	
 Common Area Faucets

 
	
 000467

 	
 Communal Table Pendant Lamp (8)

 
	
 000468

 	
 Computer Desk Stations

 
	
 000469

 	
 Conf. Room Presentation Rail

 
	
 000470

 	
 Conference Table 14’ X 4’

 
	
 000472

 	
 Countertop - Reception Desk

 
	
 000473

 	
 Countertops - Breakroom

 
	
 000474

 	
 Countertops - Laundry

 
	
 000475

 	
 Countertops - Meeting Room

 
	
 000476

 	
 Crown Molding - Lobby

 
	
 000477

 	
 Dining Chair (30)

 
	
 000478

 	
 Exercise Room Towel Cabinet

 
	
 000479

 	
 Floor Lamp (6)

 
	
 000480

 	
 Flooring - Fitness Room

 
	
 000481

 	
 Flush Mount Ceiling Lights (21)

 
	
 000482

 	
 Graphics - Exercise Room

 
	
 000484

 	
 Kitchen Work Tables (5)

 
	
 000485

 	
 Lobby Accessories

 
	
 000486

 	
 Lobby Bench (2)

 
	
 000487

 	
 Lobby Communal Table w/Zodiac Top
 (2)

 
	
 000488

 	
 Lobby Lighting

 
	
 000489

 	
 Lounge Chair (20)

 
	
 000490

 	
 Millennium Visual Board

 
	
 000491

 	
 Mirror 8’ X 8’ -Fitness Rm (3)

 
	
 000492

 	
 Mirror-4’ X 8’ Leaning - Fitness
 Rm (1)

 

4

	
  

 	
  

 
	
 000493

 	
 Misha console table 5389-80 (5)

 
	
 000494

 	
 Misha Side Table 5380-30 (4)

 
	
 000495

 	
 Ottoman (8)

 
	
 000496

 	
 Pendant Lights - Public Areas
 (13)

 
	
 000497

 	
 Pool Umbrella (2)

 
	
 000498

 	
 Public Restroom partition door
 (1)

 
	
 000499

 	
 Queen Sofa (4)

 
	
 000500

 	
 Reception Desk

 
	
 000501

 	
 Rechargeable Tea Room Lights

 
	
 000503

 	
 Room Divider - Lobby

 
	
 000504

 	
 Sectional Sofa (3)

 
	
 000505

 	
 Settee Sofa (2)

 
	
 000506

 	
 Stackable Meeting Room Chairs
 (80)

 
	
 000507

 	
 Table- 18in. Acrylic Cocktail
 -Pool (8)

 
	
 000508

 	
 Table -42in. Acrylic w/hole -
 Pool (2)

 
	
 000509

 	
 Table Lamp (2)

 
	
 000510

 	
 Table Top With Solid Wood Edge
 (24in. Rd) (15)

 
	
 000511

 	
 Table Top with solid wood edge
 (24X30) (4)

 
	
 000512

 	
 Table Top with solid wood edge
 (36in. Rd) (2)

 
	
 000513

 	
 TV - LCD Commerical 42in. (3)

 
	
 000518

 	
 Wall Sconces (16)

 
	
 000519

 	
 Waste Receptacles (4)

 
	
 000520

 	
 Wet Bar 75in.

 
	
 000521

 	
 Wood Shelving - Lobby

 
	
 Location =
 55-Mtl Equip

 
	
 000232

 	
 Meeting Rm Presentation Equip

 
	
 000238

 	
 System 21 Forms Software

 
	
 000251

 	
 Luggage Carts (2) Additional

 
	
 000270

 	
 Two-Way Radios (8)

 
	
 000271

 	
 Tredmill

 
	
 000272

 	
 DMX Music

 
	
 000276

 	
 Wireless Internet Upgrade

 
	
 000316

 	
 TV 32” - Fitness Room

 
	
 000318

 	
 Toaster, 4-slot

 
	
 000323

 	
 GM OnQ PC

 
	
 000334

 	
 ADP Timekeeping Software

 
	
 000343

 	
 Guest Access Devices

 
	
 000344

 	
 Deskbridge (15) wireless access

 
	
 000345

 	
 Printer (2) 3110cn Dell

 
	
 000346

 	
 Optiplex 755 BJ7NJF1-AGM

 
	
 000347

 	
 Optiplex 755 8J7NJF1-GM

 
	
 000348

 	
 Optiplex 755 2J7NJF1-Teammate
 Services

 
	
 000351

 	
 Carpet Extractor

 
	
 000352

 	
 HSIA Equipment-Hilton

 
	
 000353

 	
 Sauna stove

 
	
 000354

 	
 Pool-safety vaccum release system

 
	
 000360

 	
 Cooler-Suite Shop

 
	
 000361

 	
 Freezer-2 door-Kitchen

 
	
 000524

 	
 Canon Digital Rebel XTI &
 Lens

 
	
 000525

 	
 St. Steel Stand w/Door - Trash
 Receptacle

 
	
 000526

 	
 Water Cooler - Exercise Room

 
	
 000528

 	
 Electrical Extension Cords

 
	
 000529

 	
 PreCor C946 Treadmill 120V Ex (4)

 

5

	
  

 	
  

 
	
 000530

 	
 Precor 576i Elliptical
 CrossTrainer (2)

 
	
 000531

 	
 Precor Adaptive Motion Trainer
 w/PVS (2)

 
	
 000532

 	
 Precor C842i Recumbent Bike (2)

 
	
 000533

 	
 Tag 3-Tier Horizontal DB Rack

 
	
 000534

 	
 Tag SDS Hex Rubber Encased Dumb
 Bells

 
	
 000535

 	
 Icarian Superbench

 
	
 000536

 	
 Fitness Accessories

 
	
 000537

 	
 Pool Phone & Enclosure

 
	
 000538

 	
 AMP Module for Gym TV

 
	
 000539

 	
 Public Area TV Wall Mount (3)

 
	
 000540

 	
 Utility Bin Cart w/shelves

 
	
 000541

 	
 Projector Screen

 
	
 000542

 	
 Cordless Phone

 
	
 000543

 	
 OptiPlex 780 Ultra Pentium PC -
 Business Ctr

 
	
 000544

 	
 OptiPlex 780 Ultra Pentium PC -
 Business Ctr

 
	
 000545

 	
 OptiPlex 780 Ultra Pentium PC -
 Business Ctr

 
	
 000546

 	
 PC Speakers for Business Ctr PC’s

 
	
 000548

 	
 Sconce & Pendant Lobby Lights
 (5)

 
	
 000549

 	
 Interior Light Fixtures

 
	
 000550

 	
 Can lights in Public Restroom

 
	
 000551

 	
 AC Pop up Boxes for Communal
 Tables

 
	
 000554

 	
 UHF Radios

 
	
 000555

 	
 DVR & Cameras

 
	
 000559

 	
 Dell Optiplex - DOS

 
	
 000560

 	
 Dell Optiplex - OPS

 
	
 000561

 	
 Dell Optiplex - Sales Manager

 
	
 000562

 	
 Dell Optiplex - Maintenance

 

6

EXHIBIT C

LIST OF HOTEL CONTRACTS

	
  

 	
  

 
	
 AAA

 	
 Advertising 

 
	
  

 	
  

 
	
 University Directories

 	
 Ad in school planner handed out to students during 2 terms

 
	
  

 	
  

 
	
 University Directories

 	
 Ad in school directory handed out to students during 2
 terms

 
	
  

 	
  

 
	
  

 	
 Payroll processing & tax filing

 
	
 ADP

 	
 HRIS

 
	
  

 	
 Timekeeping

 
	
  

 	
  

 
	
 ADT

 	
 Fire Panel Monitoring

 
	
  

 	
  

 
	
 Ambius

 	
 Plant Rental

 
	
  

 	
  

 
	
 Aramark

 	
 Linen Rental

 
	
  

 	
  

 
	
 AT&T / Wayport

 	
 HSIA Support

 
	
  

 	
  

 
	
 BGT Landscaping

 	
 Landscaping

 
	
  

 	
  

 
	
 Cintas Document Management

 	
 Record Retention Fees

 

7

	
  

 	
  

 
	
 Comcast

 	
 Cable

 
	
  

 	
  

 
	
 Comcast

 	
 Business Class Internet

 
	
  

 	
  

 
	
 DMX Music

 	
 Public Area Music

 
	
  

 	
  

 
	
 Gordon Flesch

 	
 Toner Inclusive Maintenance Agreement

 
	
  

 	
  

 
	
 Lodgenet

 	
 In room entertainment

 
	
  

 	
  

 
	
 Macke Water Systems

 	
 Water cooler rental

 
	
  

 	
  

 
	
 Midwest Irrigation

 	
 Irrigation

 
	
  

 	
  

 
	
 Otis Elevators

 	
 Elevator Maintenance

 
	
  

 	
  

 
	
 Pitney Bowes Postage

 	
 Meter

 
	
  

 	
  

 
	
 PrinterOn

 	
 Hotspot Printing

 

8

	
  

 	
  

 
	
 GFC Leasing

 	
 Copier lease

 
	
  

 	
  

 
	
 Leasing Associates

 	
 2009 Van lease

 
	
  

 	
  

 
	
 Hilton Hotels Corporation

 	
 Primary Internet Circuit (3.0 Gbps INCS)

 
	
  

 	
  

 
	
 Hilton

 	
 Keylock Interface PC

 
	
  

 	
  

 
	
 Hilton

 	
 OnQ-PMS

 
	
  

 	
  

 
	
 ATM

 	
  

 
	
  

 	
  

 
	
 Illinois Trade Association (IMS)

 	
 Guest room trades for goods/services

 
	
  

 	
  

 
	
 Master Brew

 	
 Vending machines

 
	
  

 	
  

 
	
 Tharaldson Communications

 	
 Zero Plus Commissions

 
	
  

 	
  

 
	
 Illinois Dept of Health

 	
 Pool permit

 
	
  

 	
  

 
	
 Jesse White

 	
 Vehicle registration identification cards (2)

 
	
  

 	
  

 
	
 Village of Skokie

 	
 Fire alarm permit

 
	
  

 	
  

 
	
 Village of Skokie

 	
 Vending $200, Food Serving $350, Occup $75

 
	
  

 	
  

 
	
 Village of Skokie

 	
 Elevator Certificate of Inspection

 
	
  

 	
  

 
	
 Comed

 	
 Street light

 

9

	
  

 	
  

 
	
 Constellation New Energy

 	
 Electricity - Fixed Price Contract

 
	
  

 	
  

 
	
 Nicor

 	
 Natural Gas - Managed purchase program.

 
	
  

 	
  

 
	
 Blackhawk Energy Services, LLC

 D/b/a Constellation NewEnergy -

 Gas Division Illinois, LLC

 	
 Natural Gas Agency Agreement

 
	
  

 	
  

 
	
 Village of Skokie

 	
 Sewer/Water

 
	
  

 	
  

 
	
 FIS Merchant Services

 	
  

 
	
  

 	
  

 
	
 GCS/Fuse Box

 	
  

 

10

EXHIBIT D

CONSENTS AND APPROVALS

	
  

 	
  

 
	
 A.

 	
 Consents Required Under Hotel Contracts:

 
	
           As
 shown on Exhibit C to the Purchase Contract

 
	
  

 	
  

 
	
 B.

 	
 Consents Required Under Other Contracts:

 
	
           As
 shown on Exhibit C to the Purchase Contract

 
	
  

 	
  

 
	
 C.

 	
 Governmental Approvals and Consents:

 
	
  

 
	
           It
 has been our experience in general, that governmental permits and licenses
 are not assignable to third party purchasers. As a consequence the Buyer will
 likely be required to obtain from the appropriate governmental authorities
 new licenses and permits for use in the operation of the Hotel. As a
 consequence of applying for such licenses and permits, municipalities may
 conduct inspections of the subject Hotel and may impose special requirements
 as a condition to obtaining needed licenses and permits.

 
	
  

 	
  

 
	
 D.

 	
 Membership Approval and Consent:

 
	
           Seller
 shall have received the written consent of the members of Seller owning that
 percentage of membership interests needed under Seller’s Operating Agreement
 to permit and authorize Seller to sell the Hotel and the Property to Buyer
 under and in accordance with the terms of this Purchase Contract.

 

EXHIBIT E

ENVIRONMENTAL REPORTS

1. Phase I
environmental site assessment report prepared by Patrick Engineering dated
February 1998;

2.
Remedial action completion report prepared by Montgomery Watson dated March 31
1998;

3. No
Further Remediation Letter from the Illinois Environmental Protection Agency
date June 3, 1998 and two page attachment;

4. Phase I
environmental report prepared by LandAmerica Assessment dated May 19, 2006.

EXHIBIT F

CLAIMS OR LITIGATION PENDING

	
  

 	
  

 
	
 1.

 	
 Jacquelin Fitzpatrick and Alice
 Linville vs RAYMOND MANAGEMENT COMPANY, INC., a Wisconsin corporation,
 CHICAGO NORTH SHORE LODGING ASSOCIATES, L.L.C, a Wisconsin limited liability
 company, d/b/a HAMPTON INN & SUITES,

 
	
  

 	
  

 
	
  

 	
 Charge number – 1:10-cv-00252

 
	
  

 	
  

 
	
  

 	
 The Alice Linville portion of
 the case was settled in January 2011

 

-i-

EXHIBIT G

ESCROW AGREEMENT

          THIS
ESCROW AGREEMENT (this “Agreement”) made the ___ day of
_______, 2010 by and among _____________________, a ___________
________________ (“Seller”), _______________________ (“Indemnitor”)
APPLE TEN HOSPITALITY OWNERSHIP, INC. a Virginia corporation, or its assigns (“Buyer”),
and CHICAGO TITLE COMPANY (“Escrow Agent”).

R E C I T A L S

          WHEREAS,
pursuant to the provisions of Section 2.6 of that certain Purchase Contract
dated _______ ___, 2010 (the “Contract”) between Seller and Buyer (the “Parties”),
the Parties have requested Escrow Agent to hold in escrow in accordance with
the provisions, upon the terms, and subject to the conditions, of this
Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and

          WHEREAS,
the Deposit shall be delivered to Escrow Agent in accordance with the terms of
the Contract and this Agreement.

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

                    1.
Seller and Buyer hereby appoint Escrow Agent to serve as escrow agent
hereunder, and the Escrow Agent agrees to act as escrow agent hereunder in
accordance with the provisions, upon the terms and subject to the conditions of
this Agreement. The Escrow Agent hereby acknowledges receipt of the Deposit.
Escrow Agent shall invest the Deposit as directed by Buyer.

                    2.
Subject to the rights and obligations to transfer, deliver or otherwise dispose
of the Deposit, Escrow Agent shall keep the Deposit in Escrow Agent’s
possession pursuant to this Agreement.

                    3.
A. Buyer shall be entitled to an immediate return of the Deposit at any time
prior to the expiration of the Review Period (as defined in Section 3.1 of the
Contract) by providing written notice to Escrow Agent stating that Buyer has
elected to terminate the Contract pursuant to Section 3.1.

                              B.
If at any time after the expiration of the Review Period, Buyer claims
entitlement to all or any portion of the Deposit, Buyer shall give written
notice to Escrow Agent stating that Seller has defaulted in the performance of
its obligations under the Contract beyond the applicable grace period, if any,
or that Buyer is otherwise entitled to the return of the Deposit or applicable
portion thereof and shall direct Escrow Agent to return the Deposit or
applicable portion thereof to Buyer (the “Buyer’s Notice”). Escrow Agent shall
promptly

-ii-

deliver a copy of Buyer’s
Notice to Seller. Seller shall have three (3) business days after receipt of
the copy of Buyer’s Notice to deliver written notice to Escrow Agent and Buyer
objecting to the release of the Deposit or applicable portion thereof to Buyer
(“Seller’s
Objection Notice”). If Escrow Agent does not receive a timely
Seller’s Objection Notice, Escrow Agent shall release the Deposit or applicable
portion thereof to Buyer. If Escrow Agent does receive a timely Seller’s
Objection Notice, Escrow Agent shall release the Deposit or applicable portion
thereof only upon receipt of, and in accordance with, written instructions
signed by Seller and Buyer, or the final order of a court of competent
jurisdiction.

                              C.
If, at any time after the expiration of the Review Period, Seller claims
entitlement to the Deposit or applicable portion thereof, Seller shall give
written notice to Escrow Agent stating that Buyer has defaulted in the
performance of its obligations under the Contract, and shall direct Escrow
Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s
Notice”). Escrow Agent shall promptly deliver a copy of Seller’s
Notice to Buyer. Buyer shall have three (3) business days after receipt of the
copy of Seller’s Notice to deliver written notice to Escrow Agent and Seller
objecting to the release of the Deposit or applicable portion thereof to Seller
(“Buyer’s
Objection Notice”). If Escrow Agent does not receive a timely
Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable
portion thereof to Seller. If Escrow Agent does receive a timely Seller’s
Objection Notice, Escrow Agent shall release the Deposit or applicable portion
thereof only upon receipt of, and in accordance with, written instructions
signed by Buyer and Seller, or the final order of a court of competent
jurisdiction.

                    4.
In the performance of its duties hereunder, Escrow Agent shall be entitled to
rely upon any document, instrument or signature purporting to be genuine and
purporting to be signed by and of the Parties or their successors unless Escrow
Agent has actual knowledge to the contrary. Escrow Agent may assume that any
person purporting to give any notice or instructions in accordance with the
provisions hereof has been duly authorized to do so.

                    5.
A. Escrow Agent shall not be liable for any error of judgment, or any action
taken or omitted to be taken hereunder, except in the case of Escrow Agent’s
willful, bad faith misconduct or negligence, nor shall Escrow Agent be liable
for the conduct or misconduct of any employee, agent or attorney thereof.
Escrow Agent shall be entitled to consult with counsel of its choosing and
shall not be liable for any action suffered or omitted in accordance with the
advice of such counsel.

                              B.
In addition to the indemnities provided below, Escrow Agent shall not be liable
for, and each of the Parties jointly and severally hereby indemnify and agree
to save harmless and reimburse Escrow Agent from and against all loss, cost,
liability, damage and expense, including outside counsel fees in connection
with its acceptance of, or the performance of its duties and obligations under,
this Agreement, including the costs and expenses of defending against any claim
arising hereunder unless the same are caused by the willful, bad faith
misconduct or negligence of Escrow Agent.

                              C.
Escrow Agent shall not be bound or in any way affected by any notice of any
modification or cancellation of this Agreement, or of any fact or circumstance
affecting or alleged to affect rights or liabilities hereunder other than as is
herein set forth, or

-iii-

affecting or alleged to
affect the rights and liabilities of any other person, unless notice of the
same is delivered to Escrow Agent in writing, signed by the proper parties to
Escrow Agent’s satisfaction and, in the case of modification, unless such
modification shall be approved by Escrow Agent in writing.

                    6.
A. Escrow Agent and any successor escrow agent, as the case may be, may resign
his or its duties and be discharged from all obligations hereunder at any time
upon giving five (5) days’ prior written notice to each of the Parties hereto.
The Parties hereto will thereupon jointly designate a successor escrow agent
hereunder within said five (5) day period to whom the Deposit shall be
delivered. In default of such a joint designation of a successor escrow agent,
Escrow Agent shall retain the Deposit as custodian thereof until otherwise
directed by the Parties hereto, jointly, or until the Deposit is released in
accordance with clause (B) below, in each case, without liability or
responsibility.

                              B.
Anything in this Agreement to the contrary notwithstanding, (i) Escrow
Agent, on notice to the Parties hereto, may take such other steps as the Escrow
Agent may elect in order to terminate its duties as Escrow Agent hereunder,
including, but not limited to, the deposit of the Deposit with a court of
competent jurisdiction in the Commonwealth of Virginia and the commencement of
an action of interpleaders, and (ii) in the event of litigation between any of the
Parties with respect to the Deposit, Escrow Agent may deposit the Deposit with
the court in which said litigation is pending and, in any such event, Escrow
Agent shall be relieved and discharged from any liability or responsibility to
the Parties hereto. Escrow Agent shall not be under any obligation to take any
legal action in connection with this Agreement or its enforcement or to appear
in, prosecute or defend any action or legal proceeding which, in the opinion of
Escrow Agent, would or might involve Escrow Agent in any cost, expense, loss,
damage or liability, unless and as often as requested, Escrow Agent shall be
furnished with security and indemnity satisfactory to Escrow Agent against all
such costs, expenses (including attorney’s fees), losses, damages and
liabilities.

                    7.
All notices required herein shall be deemed to have been validly given, as
applicable: (i) if given by telecopy, when the telecopy is transmitted to the
party’s telecopy number specified below and confirmation of complete receipt is
received by the transmitting party during normal business hours or on the next
business day if not confirmed during normal business hours, (ii) if hand
delivered to a party against receipted copy, when the copy of the notice is receipted
or rejected, (iii) if given by certified mail, return receipt requested,
postage prepaid, two (2) business days after it is posted with the U.S. Postal
Service at the address of the party specified below or (iv) on the next
delivery day after such notices are sent by recognized and reputable commercial
overnight delivery service marked for next day delivery, return receipt
requested or similarly acknowledged:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If addressed to Seller or Indemnitor, to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 __________________________________

 
	
  

 	
  

 	

 __________________________________

 
	
  

 	
  

 	
 Attention:

 	
  

 
	
  

 	
  

 	
 Fax No.: (___) ___-____

 	
  

 

-iv-

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If addressed to Buyer, to:

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Apple Ten Hospitality Ownership, Inc.

 
	
  

 	
  

 	
 814 E. Main Street

 
	
  

 	
  

 	
 Richmond, Virginia 23219

 
	
  

 	
  

 	
 Attn: Sam Reynolds

 
	
  

 	
  

 	
 Fax No.: (804) 344-8129

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 with a copy to:

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Apple REIT Ten, Inc.

 
	
  

 	
  

 	
 814 E. Main Street

 
	
  

 	
  

 	
 Richmond, Virginia 23219

 
	
  

 	
  

 	
 Attn: Legal Dept.

 
	
  

 	
  

 	
 Fax No.: (804) 727-6349

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 If addressed to Escrow Agent, to:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 LandAmerica Dallas National Division

 
	
  

 	
  

 	
 5501 LBJ Freeway, Suite 200

 
	
  

 	
  

 	
 Dallas, Texas 75240

 
	
  

 	
  

 	
 Attn: Debby Moore

 
	
  

 	
  

 	
 Fax No.: (214) 570-0210

 

or such other address or
addresses as may be expressly designated by any party by notice given in
accordance with the foregoing provisions and actually received by the party to
whom addressed.

                    8.
This Agreement may be executed in any number of counterparts each of which
shall be deemed an original and all of which, together, shall constitute one
and the same Agreement.

                    9.
The covenants, conditions and agreements contained in this Agreement shall bind
and inure to the benefit of each of the Parties hereto and their respective
successors and assigns.

-v-

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 INDEMNITOR:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN HOSPITALITY OWNERSHIP, INC.,

 a Virginia corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ESCROW
 AGENT:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CHICAGO TITLE COMPANY

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 	
  

 

-vi-

EXHIBIT H

Existing Loan

Name, Address, Email and Telephone Number Lender: 

Morgan Stanley Mortgage Capital

1221 Avenue of the Americas

New York, NY 10020

Name, Address, Email and Telephone Number of Servicer:

Wells Fargo Bank, N.A.

Commercial Mortgage Servicing

1901 Harrison Street

Oakland, CA 94612

Fax: (510) 446-3652

Date of Note: 6/15/2006

Maturity Date: 7/1/2016

Interest Rate: 6.15%

Original Principal Amount of Note: $20,500,000

Date and Recording Info of Security Instrument:
6/15/2006

Outstanding Principal Balance as of 5/1/11: $19,264,962.12

-vii-Exhibit 10.40  

Chicago
(O’Hare) (Hilton Garden Inn)

PURCHASE
CONTRACT

between

CHICAGO
RIVER ROAD LODGING ASSOCIATES, L.L.C. (“SELLER”)

 (“SELLER”)

AND

APPLE
TEN HOSPITALITY OWNERSHIP, INC. (“BUYER”)

AND

RAYMOND
MANAGEMENT COMPANY, INC.
 (“INDEMNITOR”)

Dated:
May 27, 2011

TABLE
OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page No.

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 
	
 ARTICLE I

 	
 DEFINED TERMS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 	
 PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;
 EARNEST MONEY DEPOSIT

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
 Purchase and
 Sale

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
 Intentionally
 Omitted

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.3

 	
 Purchase
 Price

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.4

 	
 Allocation

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.5

 	
 Payment

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.6

 	
 Earnest
 Money Deposit

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 REVIEW PERIOD

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
 Review
 Period

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
 Due
 Diligence Examination

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
 Restoration

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.4

 	
 Seller
 Exhibits

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 SURVEY AND TITLE APPROVAL

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
 Survey

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.2

 	
 Title

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.3

 	
 Survey or
 Title Objections

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.3

 	
 Existing
 Loan

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
 TERMINATION OF MANAGEMENT AGREEMENT

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
 BROKERS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
 Seller’s and
 Indemnitor’s Representations, Warranties and Covenants

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
 Buyer’s
 Representations, Warranties and Covenants

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
 Survival

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
 ADDITIONAL COVENANTS

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
 Subsequent
 Developments

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.2

 	
 Operations

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.3

 	
 Third Party
 Consents

 	
  

 	
 17

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.4

 	
 Employees

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.5

 	
 Estoppel
 Certificates

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.6

 	
 Access to
 Financial Information

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.7

 	
 Bulk Sales

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.8

 	
 Indemnification

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.9

 	
 Escrow Funds

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.10

 	
 Liquor
 Licenses

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
 CONDITIONS FOR CLOSING

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1

 	
 Buyer’s
 Conditions for Closing

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.2

 	
 Seller’s
 Conditions for Closing

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
 CLOSING AND CONVEYANCE

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1

 	
 Closing

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.2

 	
 Deliveries
 of Seller and Indemnitor

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.3

 	
 Buyer’s Deliveries

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
 COSTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1

 	
 Seller’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.2

 	
 Buyer’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XII

 	
 ADJUSTMENTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.1

 	
 Adjustments

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.2

 	
 Reconciliation
 and Final Payment

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.3

 	
 Employees

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIII

 	
 CASUALTY AND CONDEMNATION

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.1

 	
 Risk of
 Loss; Notice

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.2

 	
 Buyer’s
 Termination Right

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.3

 	
 Procedure
 for Closing

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIV

 	
 DEFAULT REMEDIES

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.1

 	
 Buyer
 Default

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.2

 	
 Seller
 Default

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.3

 	
 Attorney’s
 Fees

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XV

 	
 NOTICES

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVI

 	
 MISCELLANEOUS

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.1

 	
 Performance

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.2

 	
 Binding
 Effect; Assignment

 	
  

 	
 30

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.3

 	
 Entire
 Agreement

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.4

 	
 Governing
 Law

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.5

 	
 Captions

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.6

 	
 Confidentiality

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.7

 	
 Closing
 Documents

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.8

 	
 Counterparts

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.9

 	
 Severability

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.10

 	
 Interpretation

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.11

 	
 (Intentionally
 Omitted)

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.12

 	
 Further Acts

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.13

 	
 Joint and
 Several Obligations

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVII

 	
 JOINDER BY INDEMNITOR

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 17.1

 	
 Indemnification
 by Indemnitor

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 
	
 SCHEDULES:

 	
  

 	
  

 	
  

 

	
  

 	
  

 
	
 EXHIBITS:

 	
  

 
	
  

 	
  

 
	
 Exhibit A

 	
 Legal Description

 
	
 Exhibit B

 	
 List of
 FF&E

 
	
 Exhibit C

 	
 List of
 Hotel Contracts

 
	
 Exhibit D

 	
 Consents and
 Approvals

 
	
 Exhibit E

 	
 Environmental
 Reports

 
	
 Exhibit F

 	
 Claims or
 Litigation Pending

 
	
 Exhibit G

 	
 Escrow
 Agreement

 
	
 Exhibit H

 	
 Existing
 Loan Information

 

iii

PURCHASE
CONTRACT

This PURCHASE CONTRACT (this “Contract”) is made and entered into as
of May 27, 2011, by and between CHICAGO RIVER ROAD LODGING ASSOCIATES, L.L.C.,
a Wisconsin limited liability company (“Seller”) with a principal office at 8333 Greenway Boulevard, Suite 200, Middleton,
Wisconsin 53562 and APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia
corporation, with its principal office at 814 East Main Street, Richmond,
Virginia 23219, or its affiliates or assigns (“Buyer”), and joined in
by Raymond Management Company, Inc., a Wisconsin Corporation (“Indemnitor”),
with its principal office at 8333 Greenway
Boulevard, Suite 200, Middleton, Wisconsin 53562.

RECITALS

A. Seller is the fee simple owner of that certain 251-room hotel
property commonly known as the Hilton Garden Inn Chicago O’Hare Airport,
located at 2930 South River Road, Des Plaines, Illinois 60018 (the “Hotel”)
identified in Exhibit A attached hereto and incorporated by reference.

          B. Buyer is
desirous of purchasing the Hotel from Seller, and Seller is desirous of selling
the Hotel to Buyer, for the purchase price and upon terms and conditions
hereinafter set forth.

AGREEMENT:

          NOW,
THEREFORE, in consideration of the foregoing Recitals, the mutual covenants
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

ARTICLE I

DEFINED TERMS

          1.1 Definitions.
The following capitalized terms when used in this Contract shall have the
meanings set forth below unless the context otherwise requires:

          “Additional
Deposit” shall mean $125,000.00.

          “Affiliate”
shall mean, with respect to Seller or Buyer, any other person or entity
directly or indirectly controlling (including but not limited to all directors
and officers), controlled by or under direct or indirect common control with
Seller or Buyer, as applicable. For purposes of the foregoing, a person or
entity shall be deemed to control another person or entity if it possesses,
directly or indirectly, the power to direct or cause direction of the
management and policies of such other person or entity, whether through the
ownership of voting securities, by contract or otherwise. 

          “Appurtenances”
shall mean all rights, titles, and interests of a Seller appurtenant to the
Land and Improvements, including, but not limited to, (i) all easements, rights
of way, rights of

1

ingress and egress, tenements, hereditaments, privileges, and
appurtenances in any way belonging to the Land or Improvements, (ii) any land
lying in the bed of any alley, highway, street, road or avenue, open or
proposed, in front of or abutting or adjoining the Land, (iii) any strips or
gores of real estate adjacent to the Land, and (iv) the use of all alleys,
easements and rights-of-way, if any, abutting, adjacent, contiguous to or
adjoining the Land.

          “Brand”
shall mean Hilton Garden Inn, the hotel brand or franchise under which the
Hotel operates.

          “Business
Day” shall mean any day other than a Saturday, Sunday or legal holiday in
the Commonwealth of Virginia.

          “Closing”
shall mean the closing of the purchase and sale of the Property pursuant to
this Contract.

          “Closing
Date” shall have the meaning set forth in Section 10.1.

          “Contracts,
Plans and Specs” shall mean all construction plans, drawings,
specifications, surveys, soil reports, engineering reports, inspection reports,
and other technical descriptions and reports, in Seller’s possession or
control.

          “Deed”
shall have the meaning set forth in Section 10.2(a).

          “Deposits”
shall mean, to the extent assignable, all prepaid rents and any cash balances
in lender required reserves for replacement of FF&E and for capital repairs
and/or improvements (“Lender Required Reserves”), refundable security deposits
and rental deposits, and all other deposits for advance reservations, banquets
or future services, made in connection with the use or occupancy of the
Improvements; provided, however, that to the extent Seller has not received or
does not hold all of the prepaid rents and/or deposits attributable to the
Leases related to the Property, Buyer shall be entitled to a credit against the
cash portion of the Purchase Price allocable to the Property in an amount equal
to the amount of the prepaid rents and/or deposits attributable to the Leases
transferred at the Closing of such Property, and provided further, that
“Deposits” shall exclude (i) reserves for real property taxes and insurance, in
each case, to the extent pro rated on the settlement statement such that Buyer
receives a credit for (a) taxes and premiums in respect of any period prior to
Closing and (b) the amount of deductibles and other self-insurance and all
other potential liabilities and claims in respect of any period prior to
Closing, and (ii) utility deposits.

          “Due
Diligence Examination” shall have the meaning set forth in Section 3.2.

          “Earnest
Money Deposit” shall have the meaning set forth in Section 2.6(a).

          “Environmental
Requirements” shall have the meaning set forth in Section 7.1(f)

          “Escrow
Agent” shall have the meaning set forth in Section 2.6(a).

          “Escrow
Agreement” shall have the meaning set forth in Section 2.6(b).

          “Exception
Documents” shall have the meaning set forth in Section 4.2.

2

          “Existing
Franchise Agreement” shall mean that certain franchise license agreement
between the Seller and the Franchisor, granting to Seller a franchise to
operate the Hotel under the Brand.

          “Existing
Loan” shall mean the loan identified on Exhibit H.

          “Existing
Lender” shall mean the lender identified on Exhibit H.

          “Existing
Management Agreement” shall mean that certain management agreement between
the Seller and the Manager for the operation and management of the Hotel.

          “FF&E”
shall mean all tangible personal property and fixtures of any kind (other than
personal property (i) owned by guests of the Hotel or (ii) leased by Seller
pursuant to an FF&E Lease) attached to, or located upon and used in
connection with the ownership, maintenance, use or operation of the Land or
Improvements as of the date hereof (or acquired by Seller and so employed prior
to Closing), including, but not limited to, all furniture, fixtures, equipment,
signs and related personal property; all heating, lighting, plumbing, drainage,
electrical, air conditioning, and other mechanical fixtures and equipment and
systems; all elevators, and related motors and electrical equipment and
systems; all hot water heaters, furnaces, heating controls, motors and
equipment, all shelving and partitions, all ventilating equipment, and all
disposal equipment; all spa, health club and fitness equipment; all equipment
used in connection with the use and/or maintenance of the guestrooms,
restaurants, lounges, business centers, meeting rooms, swimming pools, indoor
and/or outdoor sports facilities and other common areas and recreational areas;
all carpet, drapes, beds, furniture, televisions and other furnishings; all
stoves, ovens, freezers, refrigerators, dishwashers, disposals, kitchen
equipment and utensils, tables, chairs, plates and other dishes, glasses,
silverware, serving pieces and other restaurant and bar equipment, apparatus
and utensils. A current list of FF&E is attached hereto as Exhibit B
(which list will not include the mechanical fixtures, elevators, and all
similar items which are fixtures of the Hotel).

          “FF&E
Leases” shall mean all leases of any FF&E and other contracts
permitting the use of any FF&E at the Improvements that are assumed by
Buyer.

          “Financial
Statements” shall have the meaning set forth in Section 3.1(b).

          “Franchisor”
shall mean Hilton Worldwide, Inc. or its Affiliate.

          “Hotel
Contracts” shall have the meaning set forth in Section 10.2(d).

          “Improvements”
shall mean all buildings, structures, fixtures, parking areas and other
improvements to the Land, and all related facilities.

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

          “Indemnified
Party” shall have the meaning set forth in Section 8.8(c)(i).

          “Indemnifying
Party” shall have the meaning set forth in Section 8.8(c)(i).

3

          “Initial
Deposit” shall have the meaning set forth in Section 2.6(a).

          “Land”
shall mean, collectively, a fee simple absolute interest in the real property
more fully described in Exhibit A, which is attached hereto and
incorporated herein by reference, together with all rights (including without
limitation all air rights and development rights), alleys, streets, strips,
gores, privileges, appurtenances, advantages and easements belonging thereto or
in any way appertaining thereto.

          “Leases”
shall mean all leases, franchises, licenses, occupancy agreements, “trade-out”
agreements, advance bookings, convention reservations, or other agreements
demising space in, providing for the use or occupancy of, or otherwise
similarly affecting or relating to the use or occupancy of, the Improvements or
Land, together with all amendments, modifications, renewals and extensions
thereof, and all guaranties by third parties of the obligations of the tenants,
licensees, franchisees, concessionaires or other entities thereunder.

          “Legal
Action” shall have the meaning set forth in Section 8.8(c)(ii).

          “Licenses”
shall mean all permits, licenses, franchises, utility reservations,
certificates of occupancy, and other documents issued by any federal, state, or
municipal authority or by any private party related to the development,
construction, use, occupancy, operation or maintenance of the Hotel, including,
without limitation, all licenses, approvals and rights (including any and all
existing waivers of any brand standard) necessary or appropriate for the
operation of the Hotel under the Brand.

          “Liquor
Licenses” shall have the meaning set forth in Section 8.10.

          “Manager”
shall mean Raymond Management Company, Inc.

          “New
Franchise Agreement” shall mean the franchise license agreement to be
entered into between Buyer and the Franchisor, granting to Buyer a franchise to
operate the Hotel under the Brand on and after the Closing Date. 

          “New
Management Agreement” means the management agreement to be entered into
between Buyer and the Manager for the operation and management of the Hotel on
and after the Closing Date.

          “Other
Property” shall have the meaning set forth in Section 16.14.

          “Pending
Claims” shall have the meaning set forth in Section 7.1(e).

          “Permitted
Exceptions” shall have the meaning set forth in Section 4.3.

          “Personal
Property” shall mean, collectively, all of the Property other than the Real
Property. 

          “PIP”
shall mean a product improvement plan for any Hotel, as required by the Manager
or the Franchisor, if any.

4

          “PIP
Escrow Agreement” shall have the meaning set forth in Section 11.1.

          “Post-Closing
Agreement” shall have the meaning set forth in Section 8.9.

          “Property”
shall mean, collectively, (i) all of the following with respect to the Hotel:
the Land, Improvements, Appurtenances, FF&E, Supplies, Leases, Deposits,
Records, Service Contracts, Warranties, Licenses, FF&E Leases, Contracts,
Plans and Specs, Tradenames, Utility Reservations, as well as all other real,
personal or intangible property of Seller related to any of the foregoing and
(ii) any and all of the following that relate to or affect in any way the design,
construction, ownership, use, occupancy, leasing, maintenance, service or
operation of the Real Property, FF&E, Supplies, Leases, Deposits or
Records: Service Contracts, Warranties, Licenses, Tradenames (except “Cool
Pool” tm, the right to which Seller shall retain), Contracts, Plans
and Specs and FF&E Leases. 

          “Purchase
Price” shall have the meaning set forth in Section 2.3.

          “Real
Property” shall mean, collectively, all Land, Improvements and
Appurtenances with respect to the Hotel. 

          “Records”
shall mean all books, records, promotional material, guest history information
(other than any such information owned exclusively by the Manager), marketing
and leasing material and forms (including but not limited to any such records,
data, information, material and forms in the form of computerized files located
at the Hotel), any marketing plan prepared in connection with Seller’s current
annual operating budget (including, without limitation, all documentation
relating to any pending litigation or other proceedings, all zoning and/or land
use notices, relating to or affecting the Property owned by Seller and/or in
Seller’s possession or control, or to which Seller has access or may obtain
from the Manager, that are used in or relating to the Property and/or the
operation of the Hotel, including the Land, the Improvements or the FF&E,
and proforma budgets and projections and all construction warranties and
guaranties in effect at Closing and copies of the record plans and specifications
for the Hotel, as available.

          “Release”
shall have the meaning set forth in Section 7.1(f).

          “Review
Period” shall have the meaning set forth in Section 3.1.

          “SEC”
shall have the meaning set forth in Section 8.6.

          “Seller
Liens” shall have the meaning set forth in Section 4.3.

          “Seller
Parties” shall have the meaning set forth in Section 7.1(e).

          “Service
Contracts” shall mean contracts or agreements, such as maintenance, supply,
service or utility contracts.

          “Supplies”
shall mean all merchandise, supplies, inventory and other items used for the
operation and maintenance of guest rooms, restaurants, lounges, swimming pools,
health clubs, spas, business centers, meeting rooms and other common areas and
recreational areas located

5

within or relating to the Improvements, including, without limitation,
all food and beverage (alcoholic and non-alcoholic) inventory, office supplies
and stationery, advertising and promotional materials, china, glasses,
silver/flatware, towels, linen and bedding (all of which shall be 2-par level
for all suites or rooms in the Hotel), guest cleaning, paper and other
supplies, upholstery material, carpets, rugs, furniture, engineers’ supplies,
paint and painters’ supplies, employee uniforms, and all cleaning and
maintenance supplies, including those used in connection with the swimming
pools, indoor and/or outdoor sports facilities, health clubs, spas, fitness
centers, restaurants, business centers, meeting rooms and other common areas
and recreational areas.

          “Survey”
shall have the meaning set forth in Section 4.1.

          “Third
Party Consents” shall have the meaning set forth in Section 8.3.

          “Title
Commitment” shall have the meaning set forth in Section 4.2.

          “Title
Company” shall have the meaning set forth in Section 4.2.

          “Title
Policy” shall have the meaning set forth in Section 4.2.

          “Title
Review Period” shall have the meaning set forth in Section 4.3.

          “Tradenames”
shall mean all telephone exchanges and numbers, trade names, trade styles,
trade marks, and other identifying material, and all variations thereof,
together with all related goodwill (it being understood and agreed that the
name of the hotel chain to which the Hotel is affiliated by franchise, license
or management agreement is a protected name or registered service mark of such
hotel chain and cannot be transferred to Buyer by this Contract, provided that
all such franchise, license, management and other agreements granting a right
to use the name of such hotel chain or any other trademark or trade name and
all waivers of any brand standard shall be assigned to Buyer to the extent
Seller has any right to make such assignment).

          “Utility
Reservations” shall mean Seller’s interest in the right to receive
immediately on and after Closing and continuously consume thereafter water
service, sanitary and storm sewer service, electrical service, gas service and
telephone service on and for the Land and Improvements in capacities that are
adequate continuously to use and operate the Improvements for the purposes for
which they were intended, including, but not limited to (i) any right to the
present and future use of wastewater, drainage, water and other utility
facilities to the extent such use benefits the Real Property, (ii) any
reservations of or commitments covering any such use in the future, and (iii)
any wastewater capacity reservations relating to the Real Property. Buyer shall
be responsible for any requests or documents to transfer the Utility
Reservations, at Buyer’s sole cost and expense. 

          “Warranties”
shall mean all warranties, guaranties, indemnities and claims for the benefit
of Seller with respect to the Hotel, the Property or any portion thereof,
including, without limitation, all warranties and guaranties of the
development, construction, completion, installation, equipping and furnishing
of the Hotel, and all indemnities, bonds and claims of Seller related thereto.

6

ARTICLE II

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT

          2.1 Purchase
and Sale. Seller agrees to sell and convey to Buyer or its Affiliates
and/or assigns, and Buyer or its assigns agrees to purchase from Seller, the
Property, in consideration of the Purchase Price and upon the terms and
conditions hereof. All of the Property shall be conveyed, assigned, and
transferred to Buyer at Closing, free and clear of all mortgages, liens,
encumbrances, licenses, franchises (other than any hotel franchise or any other
Licenses assumed by Buyer and the Existing Loan), concession agreements,
security interests, prior assignments or conveyances, conditions, restrictions,
rights-of-way, easements, encroachments, claims and other matters affecting
title or possession, except for the Permitted Exceptions.

          2.2 Intentionally
Deleted. 

          2.3 Purchase
Price. Buyer agrees to pay, and Seller agrees to accept, as consideration
for the conveyance of the Property, subject to the adjustments provided for in
this Contract, the amount of THIRTY-EIGHT MILLION and No/100 Dollars
($38,000,000.00) (the “Purchase Price”).

          2.4 Allocation.
Buyer and Seller shall acting reasonably, in good faith, and based on objective
standards and appraisals of value, on an “open-book” basis, attempt to agree,
prior to the expiration of the Review Period, on an allocation of the Purchase
Price among Real Property, tangible Personal Property and intangible property
related to the Property. In the event Buyer and Seller do not agree, each party
shall be free to allocate the Purchase Price to such items as they deem
appropriate, subject to and in accordance with applicable laws. 

          2.5 Payment.
The portion of the Purchase Price, less the Earnest Money Deposit and interest
earned thereon, if any, which Buyer elects to have applied against the Purchase
Price (as provided below), less the Escrow Funds, less the outstanding
principal balance of the Existing Loan, shall be paid to Seller in cash,
certified funds or wire transfer, at the Closing of the Property. At the
Closing, the Earnest Money Deposit, together with interest earned thereon, if
any, shall, at Buyer’s election, be returned to Buyer or shall be paid over to
Seller by Escrow Agent to be applied to the portion of the Purchase Price on
behalf of Buyer, and the Escrow Funds shall be deposited into an escrow account
pursuant to the Post-Closing Agreement as contemplated by Section 8.9. 

          2.6 Earnest
Money Deposit.

                    (a)
Within three (3) Business Days after the full execution and delivery of this
Contract, Buyer shall deposit the sum of One Hundred Twenty-five Thousand and
No/100 Dollars ($125,000.00) in cash, certified bank check or by wire transfer
of immediately available funds (the “Initial Deposit”) with the Title
Company, as escrow agent (“Escrow Agent”), which sum shall be held
by Escrow Agent as earnest money. If, pursuant to the provisions of Section 3.1
of this Contract, Buyer elects to terminate this Contract at any time prior to
the expiration of the Review Period, then the Escrow Agent shall return the
Earnest Money Deposit to Buyer 

7

promptly upon written notice to that effect from Buyer. If Buyer does
not elect to terminate this Contract on or before the expiration of the Review
Period, Buyer shall, within three (3) Business Days after the expiration of the
Review Period deposit the Additional Deposit with the Escrow Agent. The Initial
Deposit and the Additional Deposit, and all interest accrued thereon, shall hereinafter
be referred to as the “Earnest Money Deposit.”

                    (b)
The Earnest Money Deposit shall be held by Escrow Agent subject to the terms
and conditions of an Escrow Agreement dated as of the date of this Contract
entered into by Seller, Buyer and Escrow Agent (the “Escrow Agreement”).
The Earnest Money Deposit shall be held in an interest-bearing account in a
federally insured bank or savings institution reasonably acceptable to Seller
and Buyer, with all interest to accrue to the benefit of the party entitled to
receive it and to be reportable by such party for income tax purposes.

ARTICLE III

REVIEW PERIOD

          3.1 Review
Period. Buyer shall have a period through 6:00 p.m. Eastern Time on the
date that is forty-five (45) days after the date of this Contract, unless a
longer period of time is otherwise provided for in this Contract and except as
otherwise agreed to by Buyer and Seller (the “Review Period”), to
evaluate the legal, title, survey, construction, physical condition, structural,
mechanical, environmental, economic, permit status, franchise status, financial
and other documents and information related to the Property. Within five (5)
Business Days following the date of this Contract, Seller, at Seller’s sole
cost and expense, will deliver to Buyer (or make available at the Hotel) for
Buyer’s review, to the extent not previously delivered to Buyer, true, correct
and complete copies of the following, together with all amendments,
modifications, renewals or extensions thereof:

                    (a)
All Warranties and Licenses currently in force relating to the Hotel or any
part thereof;

                    (b)
Income and expense statements and budgets for the Hotel, for the current year
to date and each of the three (3) prior fiscal years (the “Financial Statements”),
and Seller shall provide to Buyer copies of all income and expense statements
generated by Seller or any third party that relate to the operations of the
Hotel and that contain information not included in the financial statements, if
any, provided to Buyer by the Manager, provided that Seller also agrees to
provide to Buyer’s auditors and representatives all financial and other
information necessary or appropriate for preparation of audited financial
statements for Buyer and/or its Affiliates as provided in Section 8.6, below;

                    (c)
All real estate and personal property tax statements with respect to the Hotel
and notices of appraised value for the Real Property for the current year (if
available) and each of the three (3) calendar years prior to the current year;

                    (d)
To the extent available and in Seller’s possession, engineering, mechanical,
architectural and construction plans, drawings, specifications and contracts,
payment and performance bonds, title policies, reports and commitments, zoning
information, as well as copies of all environmental reports and information,
topographical, boundary or “as built”

8

surveys, engineering reports, subsurface studies and other Contracts,
Plans and Specs relating to or affecting the Hotel. If the Hotel is purchased
by Buyer, all such documents and information relating to the Hotel shall
thereupon be and become the property of Buyer without payment of any additional
consideration therefor;

                    (e)
All FF&E Leases, Services Contracts, Leases and, if applicable, a schedule
of such Leases of space in the Hotel, and all agreements for real estate
commissions, brokerage fees, finder’s fees or other compensation payable by
Seller in connection therewith; and

                    (f)
All notices received from governmental authorities in connection with the Hotel
that relate to any noncompliance or violation of law that has not been
corrected.

                    (g)
All documents related to the Existing Loan.

          Seller
shall, upon request of Buyer, make available to Buyer and Buyer’s
representatives and agents, for inspection and copying during normal business
hours or as otherwise agreed, Records located at Seller’s corporate offices
including items identified in 3.1(a)-(f) above, and Seller agrees to provide
Buyer copies of all other reasonably requested information that is relevant to
the management, operation, use, occupancy or leasing of or title to the
applicable Hotel and the plans specifications for development of the Hotel. At
any time during the Review Period, Buyer may, in its sole and absolute
discretion, elect not to proceed with the purchase of the Property for any
reason whatsoever by giving written notice thereof to Seller, in which event:
(i) the Earnest Money Deposit shall be promptly returned by Escrow Agent to
Buyer together with all accrued interest, if any, (ii) this Contract shall be
terminated automatically, (iii) all materials supplied by Seller to Buyer shall
be returned promptly to Seller, and (iv) both parties will be relieved of all
other rights, obligations and liabilities hereunder, except for the parties’
obligations pursuant to Sections 3.3 and 16.6 below.

          3.2 Due
Diligence Examination. At any time during the Review Period, and thereafter
through Closing of the Property, Buyer and/or its representatives and agents
shall have the right to enter upon the Property at all reasonable times for the
purposes of reviewing all Records and other data, documents and/or information
relating to the Property and conducting such surveys, appraisals, engineering
tests, soil tests (including, without limitation, Phase I and Phase II
environmental site assessments), inspections of construction and other inspections
and other studies as Buyer deems reasonable and necessary or appropriate to
evaluate the Property, subject to providing reasonable advance notice to Seller
unless otherwise agreed to by Buyer and Seller (the “Due Diligence Examination”).
Seller shall have the right to have its representative present during Buyer’s
physical inspections of its Property, provided that failure of Seller to do so
shall not prevent Buyer from exercising its due diligence, review and
inspection rights hereunder. Buyer agrees to exercise reasonable care when
visiting the Property, in a manner which shall not materially adversely affect
the operation of the Property. Seller and Buyer shall also agree during the
Review Period which FF&E Leases shall be assumed by Buyer. Failure, to
agree on FF&E Leases shall give either party the right to terminate the
agreement.

          3.3 Restoration.
Buyer covenants and agrees not to damage or destroy any portion of the Property
in conducting its examinations and studies of the Property during the Due
Diligence

9

Examination and, if closing does not occur, shall repair any portion of
the Property damaged by the conduct of Buyer, its agents, employees or
contractors, to substantially the condition such portion(s) of the Property
were in immediately prior to such examinations or studies. 

          3.4 Seller
Exhibits. Buyer shall have until the end of the Review Period to review and
approve the information on Exhibits B, C, D, E and F. In the event Buyer does
not approve any such Exhibit or the information contained therein prior to the
end of the Review Period, Buyer shall be entitled to terminate this Contract by
notice to Seller and the Earnest Money Deposit shall be returned to Buyer with
all interest thereon and both parties shall be relieved of all rights,
obligations and liabilities hereunder except for the parties’ obligations
pursuant to Sections 3.3 and 16.6. Silence by Buyer through the end of the
Review Period shall be deemed approval of all information on the foregoing
exhibits. 

ARTICLE IV

SURVEY AND TITLE APPROVAL

          4.1 Survey.
Seller has delivered to Buyer true, correct and complete copies of the most
recent surveys of the Real Property. In the event that an update of the survey
or a new survey (such updated or new surveys being referred to as the “Survey”)
are desired by Buyer, then Buyer shall be responsible for all costs related
thereto.

          4.2 Title.
Seller has delivered to Buyer its existing title insurance policy, including
copies of all documents referred to therein, for its Real Property. Buyer’s
obligations under this Contract are conditioned upon Buyer being able to
obtain, at its sole cost and expense, for the Property (i) a Commitment for
Title Insurance (the “Title Commitment”) issued by Chicago
Title Company, Attn: Debby Moore, 5501 LBJ Freeway, Suite 200, Dallas, TX 75240
(the “Title
Company”), for the most recent standard form of owner’s policy
of title insurance in the state in which the Real Property is located, covering
the Real Property, setting forth the current status of the title to the Real
Property, showing all liens, claims, encumbrances, easements, rights of way,
encroachments, reservations, restrictions and any other matters affecting the
Real Property and pursuant to which the Title Company agrees to issue to Buyer
at Closing an Owner’s Policy of Title Insurance on the most recent form of ALTA
(where available) owner’s policy available in the state in which the Land is
located, with extended coverage and, to the extent applicable and available in
such state, comprehensive, access, single tax parcel, contiguity, Fairway and
such other endorsements as may be required by Buyer (collectively, the “Title
Policy”); and (ii) true, complete, legible and, where
applicable, recorded copies of all documents and instruments (the “Exception
Documents”) referred to or identified in the Title Commitment,
including, but not limited to, all deeds, lien instruments, leases, plats,
surveys, reservations, restrictions, and easements affecting the Real Property.
Buyer shall promptly provide Seller with a copy of the Title Commitment issued
by the Title Company.

          4.3 Survey
or Title Objections. If Buyer discovers any title or survey matter which is
objectionable to Buyer, Buyer may provide Seller with written notice of its
objection to same on or before the expiration of the Review Period (the “Title
Review Period”). If Buyer fails to so object in writing to any
such matter set forth in the Survey or Title Commitment during the Title Review
Period, it shall be conclusively assumed that Buyer has approved same. If Buyer
disapproves any condition of title, survey or other matters by written
objection to Seller on or

10

before the expiration of the Title Review Period, Seller shall elect
either to attempt to cure or not cure any such item by written notice sent to
Buyer within ten (10) days after its receipt of notice from Buyer, and if
Seller commits in writing to attempt to cure any such item, then Seller shall
be given until the Closing Date to cure any such defect. In the event Seller
shall fail to cure a defect which Seller has committed in writing to cure prior
to Closing, or if a new title defect arises after the date of Buyer’s Title
Commitment or Survey, as applicable, but prior to Closing, then Buyer may
elect, in Buyer’s sole and absolute discretion: (i) to waive such objection and
proceed to Closing, or (ii) to terminate this Contract and receive a return of
the Earnest Money Deposit, and any interest thereon. The items shown on the
Title Commitment which are not objected to by Buyer as set forth above (other
than exceptions and title defects arising after the Title Review Period and
other than those standard exceptions which are ordinarily and customarily
omitted in the state in which the Hotel is located, so long as Seller provides
the appropriate owner’s affidavit, gap indemnity or other documentation
reasonably required by the Title Company for such omission) are hereinafter
referred to as the “Permitted Exceptions.” Regardless of
whether Buyer does not object to same, in no event shall Permitted Exceptions
include liens, or documents evidencing liens, securing any indebtedness, any
mechanics’ or materialmen’s liens or any claims or potential claims therefor
covering the Property or any portion thereof (including FF&E or other
equipment financing or leases other than the lease of a passenger van which
shall be assumed by Buyer) attributable to a claim arising prior to the Closing
Date (“Seller
Liens”), each of which shall be paid in full by Seller and
released at Closing. 

          4.4 Existing
Loan. Seller represents and warrants that the Existing Loan is the only
indebtedness secured by the Property and that the information contained on Exhibit H
is true, correct and complete. Neither Seller nor any guarantor is in default
or breach of any provisions of the documents evidencing the Existing Loan and
no event or circumstance has occurred or exists which but for the passage of
time would be a default under the Existing Loan. At Closing, Buyer shall assume
the Existing Loan and Buyer shall pay all administrative fees, assumption fees
and underwriting costs, if any, charged by the Existing Lender in connection
with said assumption. Seller shall cooperate with Buyer in Buyer’s efforts
related to the assumption of the Existing Loan including executing such
applications, certificates and other documents required by the Lender and
providing any information required by the Lender in connection with the
assumption of the Existing Loan. Seller shall be responsible for the costs of
its attorneys, and Buyer shall be responsible for the costs of its attorneys.
In addition, Buyer shall be responsible for the cost, if any, of Existing
Lender’s attorneys, related to the assumption of the Existing Loan.

ARTICLE V

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT

          At or prior
to the Closing, Seller shall terminate the Existing Management Agreement and
the Existing Franchise Agreement, and Seller shall be solely responsible for
all claims and liabilities arising thereunder on, prior to or following the
Closing Date. As a condition to Closing, Buyer shall enter into the New
Management Agreement and the New Franchise Agreement, effective as of the
Closing Date, containing terms and conditions acceptable to Buyer (including,
without limitation, such terms and conditions as may be required to accommodate
Buyer’s and/or Buyer’s Affiliates’ REIT structure). Seller shall be responsible
for

11

paying all costs related to the termination of the Existing Management
Agreement. Buyer shall be responsible for paying all reasonable and actual
costs of the Franchisor related to the assignment or termination, as
applicable, of the Existing Franchise Agreement. Seller shall use best efforts
to promptly provide all information required by the Franchisor in connection
with the New Franchise Agreement, and Seller and Buyer shall diligently pursue
obtaining the same. As a condition to Buyer’s and Seller’s obligation to close
under this Contract, Buyer and Manager shall agree, on or before the expiration
of the Review Period, on the form and substance of the New Management
Agreement.

ARTICLE VI

BROKERS

          Seller and
Buyer each represents and warrants to the other that, except for Hodges, Ward
Elliott, Inc. for who’s fees and commissions Seller shall be solely
responsible, it has not engaged any broker, finder or other party in connection
with the transaction contemplated by this Contract. Buyer and Seller each agree
to save and hold the other harmless from any and all losses, damages, liabilities,
costs and expenses (including, without limitation, attorneys’ fees) involving
claims made by any other agent, broker, or other person by or through the acts
of Buyer or Seller, respectively, in connection with this transaction.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS

          7.1 Seller’s
and Indemnitor’s Representations, Warranties and Covenants. Seller and the
Indemnitor hereby represent, warrant and covenant to Buyer as follows:

                    (a)
Authority; No Conflicts. Seller is a limited liability company duly
formed, validly existing and in good standing in the State of Wisconsin.
Indemnitor is a corporation duly authorized, validly existing and in good
standing in the State of Wisconsin. Each of Seller and Indemnitor has obtained
all necessary consents to enter into and perform this Contract and is fully
authorized to enter into and perform this Contract (except as otherwise noted
in Exhibit “D”) and to complete the transactions contemplated by this Contract.
No consent or approval of any person, entity or governmental authority is
required for the execution, delivery or performance by Seller or Indemnitor of
this Contract, except as set forth in Exhibit D, and this Contract is
hereby binding and enforceable against Seller and Indemnitor (assuming the
consents set forth in Exhibit “D” are obtained). Neither the execution nor the
performance of, or compliance with, this Contract by Seller or Indemnitor has
resulted, or will result, in any violation of, or default under, or
acceleration of, any obligation under any existing corporate charter,
certificate of incorporation, bylaw, articles of organization, limited
liability company agreement or regulations, partnership agreement or other
organizational documents and under any, mortgage indenture, lien agreement,
promissory note, contract, or permit, or any judgment, decree, order,
restrictive covenant, statute, rule or regulation, applicable to Seller,
Indemnitor or to the Hotel (except as set forth in Exhibit “D”); provided, however,
the assumption of the Existing Loan by Buyer is subject to the consent and
approval of the Existing Lender.

12

                    (b)
FIRPTA. Seller is not a foreign corporation, foreign partnership,
foreign trust or foreign estate (as those items are defined in the Internal
Revenue Code and Income Tax Regulations).

                    (c)
Bankruptcy. None of Seller, Indemnitor, or, to Seller’s knowledge, any
of its or their partners or members, is insolvent or the subject of any
bankruptcy proceeding, receivership proceeding or other insolvency,
dissolution, reorganization or similar proceeding.

                    (d)
Property Agreements. A complete list of all FF&E Leases, Service
Contracts and Leases (other than those entered into by the Manager on its own
behalf) used in or otherwise relating to the operation and business of the
Hotel is attached hereto as Exhibit C-1, and, to Seller’s knowledge, a
complete list of all other FF&E Leases, Service Contracts and Leases used
in or otherwise relating to the operation and business of the Hotel is attached
hereto as Exhibit C-2. The assets constituting the Property to be
conveyed to Buyer hereunder constitute all of the property and assets of Seller
used in connection with the operation and business of the Hotel. There are no
leases, license agreements, leasing agent’s agreements, equipment leases,
building service agreements, maintenance contracts, suppliers contracts,
warranty contracts, operating agreements, or other agreements (i) to which
Seller is a party or an assignee, or (ii) to Seller’s or Indemnitor’s
knowledge, binding upon the Hotel, relating to the ownership, occupancy,
operation, management or maintenance of the Real Property, FF&E, Supplies
or Tradenames, except for those Service Contracts, Leases, Warranties, FF&E
Leases and other agreements disclosed on Exhibit C or to be delivered to
Buyer pursuant to Section 3.1. The Service Contracts, Leases, Warranties,
FF&E Leases and other agreements disclosed on Exhibit C or to be
delivered to Buyer pursuant to Section 3.1 are in full force and effect, and no
default has occurred and is continuing thereunder and no circumstances exist
which, with the giving of notice, the lapse of time or both, would constitute
such a default. No party has any right or option to acquire the Hotel or any
portion thereof, other than Buyer.

                    (e)
Pending Claims. There are no: (i) claims, demands, litigation,
proceedings or governmental investigations pending or threatened against
Seller, Indemnitor, the Manager or any Affiliate of any of them (collectively,
“Seller
Parties”) or related to the business or assets of the Hotel,
except as set forth on Exhibit F attached hereto and incorporated herein
by reference, (ii) special assessments or extraordinary taxes except as set
forth in the Title Commitment or (iii) pending or threatened condemnation or
eminent domain proceedings which would affect the Property or any part thereof.
There are no: pending arbitration proceedings or unsatisfied arbitration awards,
or judicial proceedings or orders respecting awards, which might become a lien
on the Property or any portion thereof, pending unfair labor practice charges
or complaints, unsatisfied unfair labor practice orders or judicial proceedings
or orders with respect thereto, pending charges or complaints with or by city,
state or federal civil or human rights agencies, unremedied orders by such
agencies or judicial proceedings or orders with respect to obligations under
city, state or federal civil or human rights or antidiscrimination laws or
executive orders affecting the Hotel, or other pending, actual or, to Seller’s
or Indemnitor’s knowledge, threatened litigation claims, charges, complaints,
petitions or unsatisfied orders by or before any administrative agency or court
which affect the Hotel or might become a lien on the Hotel (collectively, the “Pending
Claims”).

13

                    (f)
Environmental. With respect to environmental matters, to Seller’s and
Indemnitor’s knowledge and except as described in Exhibit “E,” (i) there has
been no Release or threat of Release of Hazardous Materials in, on, under, to,
from or in the area of the Real Property, except as disclosed in the reports
and documents set forth on Exhibit E attached hereto and incorporated herein
by reference, (ii) no portion of the Property is being used for the treatment,
storage, disposal or other handling of Hazardous Materials or machinery
containing Hazardous Materials other than standard amounts of cleaning
supplies, equipment maintenance supplies, and chlorine and other chemicals for
the swimming pool, all of which are stored on the Property in strict accordance
with applicable Environmental Requirements and do not exceed limits permitted
under applicable laws, including without limitation Environmental Requirements,
(iii) no underground storage tanks are currently located on or in the Real
Property or any portion thereof, (iv) no environmental investigation,
administrative order, notification, consent order, litigation, claim, judgment
or settlement with respect to the Property or any portion thereof is pending or
threatened, (v) except as disclosed on Exhibit “E” there is not currently and,
to Seller’s and Indemnitor’s knowledge, never has been any mold, fungal or
other microbial growth in or on the Property, or existing conditions within the
Property that could reasonably be expected to result in material liability or
material costs or expenses to remediate the mold, fungal or microbial growth,
or to remedy such conditions that could reasonably be expected to result in
such growth, and (vi) except as disclosed on Exhibit E, there are no
reports or other documentation regarding the environmental condition of the
Real Property in the possession of Seller or Seller’s Affiliates, consultants,
contractors or agents. As used in this Contract: “Hazardous Materials”
means (1) “hazardous wastes” as defined by the Resource Conservation and
Recovery Act of 1976, as amended from time to time (“RCRA”), (2) “hazardous
substances” as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.),
as amended by the Superfund Amendment and Reauthorization Act of 1986 and as
otherwise amended from time to time (“CERCLA”); (3) “toxic substances” as
defined by the Toxic Substances Control Act, as amended from time to time (“TSCA”),
(4) “hazardous materials” as defined by the Hazardous Materials Transportation
Act, as amended from time to time (“HMTA”), (5) asbestos, oil or other
petroleum products, radioactive materials, urea formaldehyde foam insulation,
radon gas and transformers or other equipment that contains dielectric fluid
containing polychlorinated biphenyls and (6) any substance whose presence is
detrimental or hazardous to health or the environment, including, without
limitation, microbial or fungal matter or mold, and is otherwise regulated by
federal, state and local environmental laws (including, without limitation,
RCRA, CERCLA, TSCA, HMTA), rules, regulations and orders, regulating, relating
to or imposing liability or standards of conduct concerning any Hazardous
Materials or environmental, health or safety compliance (collectively, “Environmental
Requirements”). As used in this Contract: “Release” means
spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping or disposing.

                    (g)
Title and Liens. Except for Seller Liens to be released at Closing,
Seller has good and marketable fee simple absolute title to the Real Property,
subject only to the Permitted Exceptions. Except for any applicable Permitted
Exceptions, Seller has good and marketable title to the Personal Property, free
and clear of all liens, claims, encumbrances or other rights whatsoever (other
than the Seller Liens to be released at Closing), and there are no other liens,
claims, encumbrances or other rights pending or of which any Seller Party has 

14

received notice or which are otherwise known to any Seller Party
related to any other Personal Property. All FF&E (except for FF&E
Leases), including vehicles if any, shall be lien free at Closing. 

                    (h)
Utilities. All appropriate utilities, including sanitary and storm
sewers, water, gas, telephone, cable and electricity, are, to Seller’s and Indemnitor’s
knowledge, currently sufficient and available to service the Hotel and all
installation, connection or “tap-on”, usage and similar fees have been paid.

                    (i)
Licenses, Permits and Approvals. Neither Seller nor Indemnitor has received
any written notice, and neither Seller nor Indemnitor has knowledge that the
Property fails to comply with all applicable licenses, permits and approvals
and federal, state or local statutes, laws, ordinances, rules, regulations,
requirements and codes including, without limitation, those regarding zoning,
land use, building, fire, health, safety, environmental, subdivision, water
quality, sanitation controls and the Americans with Disabilities Act, and
similar rules and regulations relating and/or applicable to the ownership, use
and operation of the Property as it is now operated. To Seller’s and
Indemnitor’s knowledge, Seller has received all material licenses, permits and
approvals required or needed for the lawful conduct, occupancy and operation of
the business of the Hotel, and each license and permit is in full force and
effect, and will be received and in full force and effect as of the Closing. No
licenses, permits or approvals necessary for the lawful conduct, occupancy or
operation of the business of the Hotel, to Seller’s or Indemnitor’s knowledge
requires any approval of a governmental authority for transfer of the Property
except as set forth in Exhibit D.

                    (j)
Financial Statements. Seller has delivered copies of all prior and
current (i) Financial Statements for the Hotel, and (ii) monthly financial
statements prepared by the Manager for the Hotel. Each of such statements is,
to Seller’s knowledge, complete and accurate in all material respects and,
except in the case of budgets prepared in advance of the applicable operating
period to which such budgets relate, fairly presents the results of operations
of the Hotel for the respective periods represented thereby. Seller has relied
upon the Financial Statements in connection with its ownership and operation of
the Hotel, and there are no independent audits or financial statements prepared
by third parties relating to the operation of the Hotel other than the
Financial Statements prepared by or on behalf of the Manager, all of which have
been provided to Buyer.

                    (k)
Employees. All employees employed at the Hotel are the employees of
Seller, the Manager or an affiliate. There are, to Seller’s and Indemnitor’s
knowledge, no (i) unions organized at the Hotel, (ii) union organizing
attempts, strikes, organized work stoppages or slow downs, or any other labor
disputes pending or threatened with respect to any of the employees at the
Hotel, or (iii) collective bargaining or other labor agreements to which Seller
or the Manager or the Hotel is bound with respect to any employees employed at
the Hotel.

                    (l)
Operations. To Seller’s and Indemnitor’s knowledge, the Hotel has at all
times been operated by Manager in accordance with all applicable laws, rules,
regulations, ordinances and codes.

15

                    (m)
Existing Management and Franchise Agreements. Seller has furnished to
Buyer true and complete copies of the Existing Management Agreement and the
Existing Franchise Agreement, which constitutes the entire agreement of the
parties with respect to the subject matter thereof and which have not been
amended or supplemented in any respect. There are no other management
agreements, franchise agreements, license agreements or similar agreements for
the operation or management of the Hotel or relating to the Brand, to which
Seller is a party or which are binding upon the Property, except for the
Existing Management Agreement and the Existing Franchise Agreement. To Seller’s
knowledge, the Improvements comply with, and the Hotel is being operated in
accordance with, all requirements of such Existing Management Agreement and the
Existing Franchise Agreement and all other requirements of the Manager and the
Franchisor, including all “brand standard” requirements of the Manager and the
Franchisor. The Existing Management Agreement and the Existing Franchise
Agreement are in full force and effect, and shall remain in full force and
effect until the termination of the Existing Management Agreement and the
Existing Franchise Agreement at Closing, as provided in Article V hereof. No
default has occurred and is continuing under the Existing Management Agreement
or the Existing Franchise Agreement, and no circumstances exist which, with the
giving of notice, the lapse of time or both, would constitute such a default. 

                    (n)
Construction of Hotel. 

	
  

 	
  

 
	
  

 	
                     (i)
 To Seller’s and Indemnitor’s knowledge the Hotel has been constructed in a
 good and workmanlike manner without encroachments not disclosed on the Survey
 and in accordance in all material respects with the record plans and specs,
 and all building permits and certificates of occupancy therefor and all
 applicable zoning, platting, subdivision, health, safety and similar laws,
 rules, regulations, ordinances and codes.

 
	
  

 	
  

 
	
  

 	
                     (ii)
 To Seller’s and Indemnitor’s knowledge the Personal Property is in good
 condition and operating order.

 
	
  

 	
  

 
	
  

 	
                     (iii)
 To Seller’s and Indemnitor’s knowledge, necessary easements for ingress and
 egress, drainage, signage and utilities serving the Hotel have either been
 dedicated to the public, conveyed to the appropriate utility or will be
 conveyed to Buyer along with the Property, or otherwise provided for such
 that the Hotel may operate.

 

          Notwithstanding
the foregoing, Buyer acknowledges that it is being given a full opportunity to
completely inspect the Property, the operation thereof, and the financial and
other information in connection therewith. In addition, Buyer represents and
warrants that it will inspect the Property and, if it elects to close the
transaction, will be familiar with and satisfied with the condition of Property
including, without limitation, the
location, condition, layout and physical condition of the Property and
surrounding areas, geotechnical data,
surface, soil and subsurface conditions of the Property and all
structural matters related thereto. Therefore, except as specifically provided
in this Agreement, Seller is conveying and Buyer is accepting the property in
strictly “AS IS” condition with all faults and, except for the specific
warranties and representations provided in this Agreement, Seller is not making
any further warranties or 

16

representations, express or implied, including, without limitation, any
warranty of merchantability or fitness for a particular purpose. Buyer
represents and warrants that, Buyer is experienced in the acquisition of real
property, including lodging properties, and that as of the Closing Date, Buyer
will be familiar with the Property and will have made such independent
investigations as Buyer deems necessary or appropriate concerning the Property.
If Buyer elects to proceed with the purchase of the Property, any objections
which Buyer may have with respect to the Property shall be waived by the Buyer.
All warranties and representations contained in this Agreement shall survive
the Closing of this transaction for a period of twelve (12) months after
Closing. No suit, cause of action, demand or other claim of any nature
whatsoever shall be made under the foregoing representations, warranties and
covenants unless the aggregate amount of Buyer’s direct out-of-pocket losses
(not including, by way of example only, any diminution in the value of the Property)
resulting from the inaccuracy or breach of such representations, warranties and
covenants exceeds, in the aggregate, Fifty Thousand and no/100ths ($50,000.00)
dollars. (the Agreed-Upon Limit”). The Agreed-Upon Limit shall not apply to
subsections 7.1(d), (e), (g), and (i) above, Section 8.8 below (except as
provided in 8.8(a)(ii)) or errors in the proper calculation of closing credits
or changes including, but not limited to, Seller’s Costs and Buyer’s Costs
under Article XI, below, and Adjustments under Article XII, below.

          7.2 Buyer’s
Representations, Warranties and Covenants. Buyer represents, warrants and
covenants: 

                    (a)
Authority. Buyer is a corporation duly formed, validly existing and in
good standing in the Commonwealth of Virginia. Buyer has received or will have
received by the applicable Closing Date all necessary authorization of the
Board of Directors of Buyer to complete the transactions contemplated by this
Contract. No other consent or approval of any person, entity or governmental
authority is required for the execution, delivery or performance by Buyer of
this Contract, and this Contract is hereby binding and enforceable against
Buyer.

                    (b)
Bankruptcy. Buyer is not insolvent nor the subject of any bankruptcy
proceeding, receivership proceeding or other insolvency, dissolution,
reorganization or similar proceeding.

          7.3 Survival.
All of the representations and warranties are true, correct and complete in all
material respects as of the date hereof and the statements set forth therein
(without qualification or limitation as to a party’s knowledge thereof except
as expressly provided for in this Article VII) shall be true, correct and
complete in all material respects as of the Closing Date. All of the
representations, warranties and covenants made herein shall survive Closing for
a period of one (1) years and shall not be deemed to merge into or be waived by
the Deed or any other closing documents.

ARTICLE VIII

ADDITIONAL COVENANTS

          8.1 Subsequent
Developments. After the date of this Contract and until the Closing Date,
Seller shall use best efforts to keep Buyer fully informed of all subsequent
developments of which Seller has knowledge (“Subsequent Developments”)
which would cause any of Seller’s

17

representations or warranties contained in this Contract to be no
longer accurate in any material respect.

          8.2 Operations.
From and after the date hereof through the Closing on the Property, Seller
shall comply with the Existing Management Agreement and the Existing Franchise
Agreement and keep the same in full force and effect and shall perform and
comply with all of the following subject to and in accordance with the terms of
such agreements:

                    (a)
Continue to maintain the Property generally in accordance with past practices
of Seller and pursuant to and in compliance with the Existing Management
Agreement and the Existing Franchise Agreement, including, without limitation,
(i) using reasonable efforts to keep available the services of all present
employees at the Hotel and to preserve its relations with guests, suppliers and
other parties doing business with Seller with respect to the Hotel, (ii)
accepting booking contracts for the use of the Hotel’s facilities retaining
such bookings in accordance with the terms of the Existing Management Agreement
and the Existing Franchise Agreement, (iii) maintaining the current level of
advertising and other promotional activities for the Hotel’s facilities, (iv)
maintaining the present level of insurance with respect to the Hotel in full
force and effect until the Closing Date for the Hotel and (v) remaining in
compliance in all material respects with all current Licenses;

                    (b)
Keep, observe, and perform in all material respects all its obligations under
and pursuant to the Leases, the Service Contracts, the FF&E Leases, the
Existing Management Agreement, the Existing Franchise Agreement, the Contracts,
Plans and Specs, the Warranties and all other applicable contractual arrangements
relating to the Hotel;

                    (c)
Not cause or permit the removal of FF&E from the Hotel except for the
purpose of discarding worn and valueless items that have been replaced with
FF&E of equal or better quality; timely make all repairs, maintenance, and
replacements to keep all FF&E and all other Personal Property and all Real
Property in good operating condition; keep and maintain the Hotel in a good
state of repair and condition, reasonable and ordinary wear and tear excepted;
and not commit waste of any portion of the Hotel;

                    (d)
Maintain the levels and quality of the Personal Property generally at the
levels and quality existing on the date hereof and keep merchandise, supplies
and inventory adequately stocked, consistent with good business practice, as if
the sale of the Hotel hereunder were not to occur, including, without
limitation, maintaining linens and bath towels at least at a 2-par level for
all suites or rooms of the Hotel;

                    (e)
Advise Buyer promptly of any litigation, arbitration, or administrative hearing
before any court or governmental agency concerning or affecting the Hotel which
is instituted or threatened after the date of this Contract or if any
representation or warranty contained in this Contract shall become false;

                    (f)
Not take, or purposefully omit to take, any action that would have the effect
of violating any of the representations, warranties, covenants or agreements of
Seller contained in this Contract;

18

                    (g)
Pay or cause to be paid all taxes, assessments and other impositions levied or
assessed on the Hotel or any part thereof prior to the delinquency date, and
comply with all federal, state, and municipal laws, ordinances, regulations and
orders relating to the Hotel;

                    (h)
Not sell or assign, or enter into any agreement to sell or assign, or create or
permit to exist any lien or encumbrance (other than a Permitted Exception) on,
the Property or any portion thereof; and

                    (i)
Not allow any permit, receipt, license, franchise or right currently in
existence with respect to the operation, use, occupancy or maintenance of the
Hotel to expire, be canceled or otherwise terminated.

          Seller
shall promptly furnish to Buyer copies of all new, amended or extended FF&E
Leases, Service Contracts, Leases and other contracts or agreements (other than
routine hotel room bookings entered into in the ordinary course of business)
relating to the Hotel and entered into by the Manager prior to Closing;
provided, however, that in the case of any of the foregoing entered into by the
Manager on its own behalf, only to the extent Seller has knowledge thereof or a
copy of which is obtainable from the Manager. Buyer shall have the right to
extend the Review Period for a period of five (5) Business Days in order to
review any of the foregoing that are not received by Buyer at least five (5)
Business Days prior to the expiration of the Review Period. Seller shall not,
without first obtaining the written approval of Buyer, which approval shall not
be unreasonably withheld, delayed or conditioned enter into any new FF&E
Leases, Service Contracts, Leases or other contracts or agreements related to
the Hotel, or extend any existing such agreements, unless such agreements (x)
can be terminated, without penalty, upon thirty (30) days’ prior notice or (y)
will expire prior to the Closing Date.

          8.3 Third
Party Consents. Prior to the Closing Date, Seller shall, at its expense,
(i) obtain any and all third party consents and approvals (x) required in order
to transfer the Hotel to Buyer (other than the Franchisor, liquor licenses, and
all related licenses, permits or approvals which require issuance in Buyer’s
name) or (y) which, if not obtained, would materially adversely affect the
operation of the Hotel, including, without limitation, all consents and
approvals referred to on Exhibit D and (ii) use best efforts to obtain
all other third party consents and approvals (all of such consents and
approvals in (i) and (ii) above being referred to collectively as, the “Third
Party Consents”).

          8.4 Employees.
Upon reasonable prior notice to Seller by Buyer, Buyer and its employees,
representatives and agents shall have the right to communicate with Seller’s
staff, and, subject to the approval of the Manager, the Hotel staff and the
Manager’s staff, including without limitation the general manager, the director
of sales, the engineering staff and other key management employees of the
Hotel, at any time before Closing. Buyer shall not interfere with the
operations of the Hotel while engaging in such communication in a manner that
materially adversely affects the operation of any Property or the Existing
Management Agreements. 

          8.5 Estoppel
Certificates. Seller shall obtain from (i) each tenant under any Lease
affecting the Hotel which results in annual revenue greater than $12,000 (but
not from current or prospective occupants of hotel rooms and suites within the
Hotel) and (ii) each lessor under any FF&E Lease in excess of $100,000 for the Hotel identified by Buyer as a material
FF&E Lease,

19

the estoppel certificates substantially in the forms provided
by Buyer to Seller during the Review Period, and deliver to Buyer not less than
five (5) days before the Closing.

          8.6 Access
to Financial Information. Buyer’s representatives shall have access to, and
Seller and its Affiliates shall cooperate with Buyer and furnish upon request,
all financial and other information relating to the Hotel’s operations to the
extent necessary to enable Buyer’s representatives to prepare audited financial
statements in conformity with Regulation S-X of the Securities and Exchange
Commission (the “SEC”) and other applicable rules and
regulations of the SEC and to enable them to prepare a registration statement,
report or disclosure statement for filing with the SEC on behalf of Buyer or
its Affiliates, whether before or after Closing and regardless of whether such
information is included in the Records to be transferred to Buyer hereunder.
Seller shall also provide to Buyer’s representative a signed representation
letter in form and substance reasonably acceptable to Seller sufficient to
enable an independent public accountant to render an opinion on the financial
statements related to the Hotel. Buyer will reimburse Seller for costs
reasonably incurred by Seller to comply with the requirements of the preceding
sentence to the extent that Seller is required to incur costs not in the
ordinary course of business for third parties to provide such representation
letters. The provisions of this Section shall survive Closing or termination of
this Contract.

          8.7 Bulk
Sales. At Seller’s risk and expense, Seller shall take all steps necessary
to comply with the requirements of a transferor under all bulk transfer laws,
if any, that are applicable to the transactions contemplated by this Contract. 

          8.8 Indemnification.
If the transactions contemplated by this Contract are consummated as provided
herein:

                    (a)
Indemnification of Buyer. Without in any way limiting or diminishing the
warranties, representations or agreements herein contained or the rights or
remedies available to Buyer for a breach hereof (except as expressly provided
therein), Seller hereby agrees to indemnify, defend and hold harmless Buyer,
its Affiliates and its and such Affiliates’ officers, shareholders and
employees from and against all losses, judgments, liabilities, claims, damages
or expenses (including reasonable attorneys’ fees) of every kind, nature and
description in existence before, on or after Closing, whether known or unknown,
absolute or continent, joint or several, arising out of or relating to:

	
  

 	
  

 
	
  

 	
                               (i)
 any claim made or asserted against Buyer or any of the Property by a creditor
 of Seller, including any claims based on or alleging a violation of any bulk
 sales act or other similar laws;

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the breach of any representation, warranty, covenant or agreement of Seller
 contained in this Contract but subject to the Agreed-Upon Limit;

 
	
  

 	
  

 
	
  

 	
                               (iii)
 any liability or obligation of Seller not expressly assumed by Buyer pursuant
 to this Contract or otherwise;

 
	
  

 	
  

 
	
  

 	
                               (iv)
 any claim made or asserted by an employee of Seller arising out of Seller’s
 decision to sell the Property; and

 

20

	
  

 	
  

 
	
  

 	
                               (v)
 the conduct and operation by or on behalf of Seller of its Hotel or the
 ownership, use or operation of its Property prior to Closing.

 

                    (b)
Indemnification of Seller. Without in any way limiting or diminishing
the warranties, representations or agreements herein contained or the rights or
remedies available to Seller for a breach hereof, Buyer hereby agrees, with
respect to this Contract, to indemnify, defend and hold harmless Seller from
and against all losses, judgments, liabilities, claims, damages or expenses
(including reasonable attorneys’ fees) of every kind, nature and description in
existence before, on or after Closing, whether known or unknown, absolute or
contingent, joint or several, arising out of or relating to:

	
  

 	
  

 
	
  

 	
                               (i)
 the breach of any representation, warranty, covenant or agreement of Buyer
 contained in this Contract; 

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the conduct and operation by Buyer of its business at the Hotel or the
 ownership, use of or operation of its Property after the Closing; and

 
	
  

 	
  

 
	
  

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

 

                    (c)
Indemnification Procedure for Claims of Third Parties. Indemnification,
with respect to claims resulting from the assertion of liability by those not
parties to this Contract (including governmental claims for penalties, fines
and assessments), shall be subject to the following terms and conditions:

	
  

 	
  

 
	
  

 	
                               (i)
 The party seeking indemnification (the “Indemnified Party”) shall give prompt
 written notice to the party or parties from which it is seeking
 indemnification (the “Indemnifying Party”) of any assertion of liability by a
 third party which might give rise to a claim for indemnification based on the
 foregoing provisions of this Section 8.8, which notice shall state the nature
 and basis of the assertion and the amount thereof, to the extent known;
 provided, however, that no delay on the part of the Indemnified Party in
 giving notice shall relieve the Indemnifying Party of any obligation to
 indemnify unless (and then solely to the extent that) the Indemnifying Party
 is prejudiced by such delay.

 
	
  

 	
  

 
	
  

 	
                               (ii)
 If in any action, suit or proceeding (a “Legal Action”) the relief sought is
 solely the payment of money damages, and if the Indemnifying Party
 specifically agrees in writing to indemnify such Indemnified Party with
 respect thereto and demonstrates to the reasonable satisfaction of such
 Indemnified Party its financial ability to do so, the Indemnifying Party
 shall have the right, commencing thirty (30) days after such notice, at its
 option, to elect to settle, compromise or defend, pursuant to this paragraph,
 by its own counsel and at its own expense, any such Legal Action involving
 such Indemnified Party’s asserted liability. If the Indemnifying Party does
 not undertake to settle, compromise or defend any such Legal Action, such
 settlement, compromise or defense shall be conducted in the sole discretion
 of such Indemnified Party, but such Indemnified Party shall provide the
 Indemnifying Party with such information concerning such settlement,
 compromise or defense as the Indemnifying Party may reasonably 

 

21

	
  

 	
  

 
	
  

 	
 request from time to time. If the Indemnifying Party undertakes to
 settle, compromise or defend any such asserted liability, it shall notify
 such Indemnified Party in writing of its intention to do so within thirty
 (30) days of notice from such Indemnified Party provided above.

 
	
  

 	
  

 
	
  

 	
                               (iii)
 Notwithstanding the provisions of the previous subsection of this Contract,
 until the Indemnifying Party shall have assumed the defense of the Legal
 Action, the defense shall be handled by the Indemnified Party. Furthermore,
 (x) if the Indemnified Party shall have reasonably concluded that there are
 likely to be defenses available to it that are different from or in addition
 to those available to the Indemnifying Party; (y) if the Legal Action
 involves other than money damages and seeks injunctive or other equitable
 relief; or (z) if a judgment against Buyer, as the Indemnified Party, in the
 Legal Action will, in the good faith opinion of Buyer, establish a custom or
 precedent which will be adverse to the best interest of the continuing
 business of the Hotel, the Indemnifying Party, shall not be entitled to
 assume the defense of the Legal Action and the defense shall be handled by
 the Indemnified Party, provided that, in the case of clause (z), the
 Indemnifying Party shall have the right to approve legal counsel selected by
 the Indemnified Party, such approval not to be unreasonably withheld, delayed
 or conditioned. If the defense of the Legal Action is handled by the
 Indemnified Party under the provisions of this subsection, the Indemnifying
 Party shall pay all legal and other expenses reasonably incurred by the
 Indemnified Party in conducting such defense.

 
	
  

 	
  

 
	
  

 	
                               (iv)
 In any Legal Action initiated by a third party and defended by the Indemnified
 Party (w) the Indemnified Party shall have the right to be represented by
 advisory counsel and accountants, at its own expense, (x) the Indemnifying
 Party shall keep the Indemnified Party fully informed as to the status of
 such Legal Action at all stages thereof, whether or not the Indemnified Party
 is represented by its own counsel, (y) the Indemnifying Party shall make
 available to the Indemnified Party and its attorneys, accountants and other
 representatives, all books and records of Seller relating to such Legal Action
 and (z) the parties shall render to each other such assistance as may be
 reasonably required in order to ensure the proper and adequate defense of
 such Legal Action.

 
	
  

 	
  

 
	
  

 	
                               (v)
 In any Legal Action initiated by a third party and defended by the
 Indemnifying Party, the Indemnifying Party shall not make settlement of any
 claim without the written consent of the Indemnified Party, which consent
 shall not be unreasonably withheld, delayed or conditioned. Without limiting
 the generality of the foregoing, it shall not be deemed unreasonable to
 withhold consent to a settlement involving injunctive or other equitable
 relief against Buyer or its respective assets, employees, Affiliates or
 business, or relief which Buyer reasonably believes could establish a custom
 or precedent which will be adverse to the best interests of its continuing
 business.

 

          8.9 Escrow
Funds. To provide for the timely payment of any post-closing claims by
Buyer against Seller hereunder, at Closing, Seller shall deposit an amount
equal to One Hundred Fifty Thousand and No/100 Dollars ($150,000.00) (the “Escrow
Funds”) which shall be withheld from the Purchase Price payable
to Seller and shall be deposited for a period of one (1) 

22

year in an escrow account with the Title Company pursuant to an escrow
agreement reasonably satisfactory in form and substance to Buyer and Seller
(the “Post-Closing
Agreement”), which escrow and Post-Closing Agreement shall be
established and entered into at Closing and shall be a condition to Buyer’s
obligations under this Contract. All earnings accrue to Seller and Seller may
direct investment thereof. If no claims have been asserted by Buyer against
Seller, or all such claims have been satisfied, within such 1-year period, the
Escrow Funds deposited by Seller shall be released to Seller.

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

ARTICLE IX

CONDITIONS FOR CLOSING

          9.1 Buyer’s
Conditions for Closing. Unless otherwise waived in writing, and without
prejudice to Buyer’s right to cancel this Contract during the Review Period,
the duties and obligations of Buyer to proceed to Closing under the terms and provisions
of this Contract are and shall be expressly subject to strict compliance with,
and satisfaction or waiver of, each of the conditions and contingencies set
forth in this Section 9.1, each of which shall be deemed material to this
Contract. In the event of the failure of any of the conditions set forth in
this Section 9.1 or of any other condition to Buyer’s obligations provided for
in this Contract, which condition is not waived in writing by Buyer, Buyer
shall have the right at its option to declare this Contract terminated, in
which case the Earnest Money Deposit and any interest thereon shall be
immediately returned to Buyer and each of the parties shall be relieved from
further liability to the other, except as otherwise expressly provided herein,
with respect to this Contract.

                    (a)
All of Seller’s representations and warranties contained in or made pursuant to
this Contract shall be true and correct in all material respects as if made
again on the Closing Date.

                    (b)
Buyer shall have received all of the instruments and conveyances listed in
Section 10.2.

                    (c)
Seller shall have performed, observed and complied in all material respects
with all of the covenants, agreements, closing requirements and conditions
required by this Contract to be performed, observed and complied with by
Seller, as and when required hereunder.

23

                    (d)
All Liquor Licenses shall be in full force and effect and shall remain in full
force and effect following Closing and shall have been or shall be transferred
to, or new Liquor Licenses issued to, the Manager or an Affiliate thereof
approved by Buyer at or as of Closing, and Buyer shall have received
satisfactory evidence thereof.

                    (e)
Third Party Consents in form and substance satisfactory to Buyer shall have
been obtained and furnished to Buyer.

                    (f)
The Escrow Funds shall have been deposited in the escrow account pursuant to
the Post-Closing Agreement and the parties thereto shall have entered into the
Post-Closing Agreement.

                    (g)
The Existing Management Agreement and the Existing Franchise Agreement shall
have been terminated.

                    (h)
Buyer and the Manager shall have executed and delivered the New Management
Agreement and Buyer and the Franchisor shall have executed and delivered the
New Franchise Agreement, in each case upon terms and conditions acceptable to
Buyer in its sole and absolute discretion.

                    (i)
The Existing Lender shall have approved and authorized the closing of the
assumption of the Existing Loan by Buyer.

          9.2 Seller’s
Conditions for Closing. Unless otherwise waived in writing, and without
prejudice to Seller’s right to cancel this Contract during the Review Period,
the duties and obligations of Seller to proceed to Closing under the terms and
provisions of this Contract are and shall be expressly subject to strict
compliance with, and satisfaction or waiver of, each of the conditions and
contingencies set forth in this Section 9.2, each of which shall be deemed
material to this Contract. In the event of the failure of any of the conditions
set forth in this Section 9.2, which condition is not waived in writing by
Seller, Seller shall have the right at its option to declare this Contract
terminated and null and void, in which case the remaining Earnest Money Deposit
and any interest thereon shall be immediately paid to Buyer and each of the
parties shall be relieved from further liability to the other, except as
otherwise expressly provided herein.

                    (a)
All of Buyer’s representations and warranties contained in or made pursuant to
this Contract shall be true and correct in all material respects as if made
again on the Closing Date.

                    (b)
Seller shall have received all of the money, instruments and conveyances listed
in Section 10.3.

                    (c)
Buyer shall have performed, observed and complied in all material respects with
all of the covenants, agreements, closing requirements and conditions required
by this Contract to be performed, observed and complied with by Buyer, as and
when required hereunder.

24

ARTICLE X

CLOSING AND CONVEYANCE

          10.1
Closing. Unless otherwise agreed by Buyer and Seller, the Closing on the
Property shall occur on a date selected by Buyer that is the later to occur of
(a) fifteen (15) business days after expiration of the Review Period or (b)
receipt by Buyer of the New Franchise Agreement, or (c) the date that Existing
Lender has unconditionally committed to close on the assumption of the Existing
Loan by, and consent to the transfer of the Property to, Buyer; provided that
in each case all conditions to Closing by Buyer hereunder have been satisfied.
The date on which the Closing is to occur as provided in this Section 10.1, or
such other date as may be agreed upon by Buyer and Seller, is referred to in
this Contract as the “Closing Date” for the Property. The
Closing shall be held at 10:00 a.m. at the offices of the Title Company, or as
otherwise determined by Buyer and Seller.

          10.2
Deliveries of Seller and Indemnitor. At Closing, Seller or Indemnitor,
as applicable, shall deliver to Buyer the following, and, as appropriate, all
instruments shall be properly executed and conveyance instruments to be
acknowledged in recordable form (the terms, provisions and conditions of all
instruments not attached hereto as Exhibits shall be mutually agreed upon by
Buyer and Seller prior to such Closing):

                    (a)
Deed. A Special Warranty deed conveying to Buyer fee simple title to the
Real Property, subject only to the Permitted Exceptions (the “Deed”).

                    (b)
Bills of Sale. Bills of sale to Buyer and/or its designated Lessee,
conveying title to the tangible Personal Property (other than the alcoholic
beverage inventories, which, at Buyer’s election and if permitted by applicable
law, shall be transferred by Seller to the Manager as holder of the Liquor
Licenses required for operation of the Hotel).

                    (c)
Existing Management and Franchise Agreements. The termination of the
Existing Management Agreement and the Existing Franchise Agreement.

                    (d)
General Assignments. Assignments of all of Seller’s right, title and
interest in and to all FF&E Leases, Service Contracts and Leases identified
on Exhibit C hereto (the “Hotel Contracts”). The assignment shall
also be a general assignment and shall provide for the assignment of all of
Seller’s right, title and interest in all Records, Warranties, Licenses,
Tradenames (except “Cool Pool”TM), Contracts, Plans and Specs and
all other intangible Personal Property applicable to the Hotel.

                    (e)
FIRPTA; 1099. A FIRPTA Affidavit or Transferor’s Certificate of
Non-Foreign Status as required by Section 1445 of the Internal Revenue Code and
an IRS Form 1099.

                    (f)
Title Company Documents. All affidavits, gap indemnity agreements and
other documents reasonably required by the Title Company. At Buyer’s sole
expense, Buyer shall have obtained an irrevocable commitment directly from the
Title Company (or in the event the Title Company is not willing to issue said
irrevocable commitment, then from such other national title company as may be selected
by either Buyer or Seller) for issuance of an Owner’s Policy of Title Insurance
to Buyer insuring good and marketable fee simple absolute title to the 

25

Real Property constituting part of the Property, subject only to the
Permitted Exceptions in the amount of the Purchase Price.

                    (g)
Possession; Estoppel Certificates. Possession of the Property, subject
only to rights of guests in possession and tenants pursuant to written leases
included in the Leases, and estoppel certificates from tenants under Leases and
the lessors under FF&E Leases in form and substance acceptable to Buyer.

                    (h)
Vehicle Titles. The necessary certificates of titles duly endorsed for
transfer together with any required affidavits and other documentation
necessary for the transfer of title or assignment of leases from Seller to
Buyer of any motor vehicles used in connection with the Hotel’s operations.

                    (i)
Authority Documents. Certified copy of resolutions of the Managing Members
of Seller authorizing the sale of the Property contemplated by this Contract,
and/or other evidence reasonably satisfactory to Buyer and the Title Company
that the person or persons executing the closing documents on behalf of Seller
have full right, power and authority to do so, along with a certificate of good
standing of Seller from the State in which the Property is located.

                    (j)
Miscellaneous. Such other instruments as are contemplated by this
Contract to be executed or delivered by Seller, reasonably required by Buyer or
the Title Company, or customarily executed in the jurisdiction in which the
Hotel is located, to effectuate the conveyance of property similar to the
Hotel, with the effect that, after the Closing, Buyer will have succeeded to
all of the rights, titles, and interests of Seller related to the Hotel and
Seller will no longer have any rights, titles, or interests in and to the
Hotel.

                    (k)
Plans, Keys, Records, Etc. To the extent not previously delivered to and
in the possession of Buyer, all Contracts, Plans and Specs, all keys for the
Hotel (which keys shall be properly tagged for identification), all Records,
including, without limitation, all Warranties, Licenses, Leases, FF&E
Leases and Service Contracts for the Hotel.

                    (l)
Closing Statements. Seller’s Closing Statement, and a certificate
confirming the truth of Seller’s representations and warranties hereunder as of
the Closing Date.

                    (m)
Indemnification Agreement. At Closing, Indemnitor shall deliver to Buyer
the Indemnification Agreement.

                    (n)
PIP Escrow Agreement. At Closing, Seller shall deliver the PIP Escrow
Agreement.

          10.3 Buyer’s
Deliveries. At Closing of the Hotel, Buyer shall deliver the following:

                    (a)
Purchase Price. The balance of the Purchase Price, adjusted for the
adjustments provided for in Section 12.1, below, and less any sums to be
deducted therefrom as provided in Section 2.3. 

                    (b)
Authority Documents. Certified copy of resolutions of the Board of
Directors of Buyer authorizing the purchase of the Hotel contemplated by this
Contract, and/or 

26

other evidence satisfactory to Seller and the Title Company that the
person or persons executing the closing documents on behalf of Buyer have full
right, power and authority to do so.

                    (c)
Counterpart to assignments of the Hotel Contracts pursuant to which Buyer
agrees to perform assumed contracts and to hold Seller harmless therefrom.

                    (d)
Counterpart to Indemnification Agreement. 

                    (e)
Execution of a new Franchise Agreement.

                    (f)
Execution of Management Agreement with Indemnitor.

                    (g)
Miscellaneous. Such other instruments as are contemplated by this
Contract to be executed or delivered by Buyer, reasonably required by Seller or
the Title Company, or customarily executed in the jurisdiction in which the
Hotel is located, to effectuate the conveyance of property similar to the
Hotel, with the effect that, after the Closing, Buyer will have succeeded to
all of the rights, titles, and interests of Seller related to the Hotel and
Seller will no longer have any rights, titles, or interests in and to the
Hotel.

                    (h)
Closing Statements. Buyer’s Closing Statement, and a certificate
confirming the truth of Buyer’s representations and warranties hereunder as of
the Closing Date.

ARTICLE XI

COSTS

          All Closing
costs shall be paid as set forth below:

          11.1 Seller’s
Costs. In connection with the sale of the Property contemplated under this
Contract, Seller shall be responsible for costs and expenses of its attorneys,
accountants, appraisers and other professionals, consultants and
representatives as well as all transfer and recordation taxes (except any
related to the clerk’s fee or per page fee for recording of the deed),
including, without limitation, all transfer, mansion, sales, use or bulk
transfer taxes or like taxes on or in connection with the transfer of the Real
Property and the Personal Property constituting part of the Property pursuant
to the Bill of Sale, and all accrued taxes of Seller prior to Closing and
income, sales and use taxes and other such taxes of Seller attributable to the
sale of the Property to Buyer. Seller shall be responsible for all costs
related to the termination of the Existing Management Agreement as provided in
Article V. Seller shall also be responsible for payment of all prepayment
penalties and other amounts payable in connection with the pay-off of any liens
and/or indebtedness encumbering the Property including, without limitation, all
mortgages (other than the Existing Loan), liens, vehicle loans/leases and all
other loans. Seller shall also be responsible for any fees for the performance
of the property improvement plan (PIP) review and report by the Franchisor and
the cost of completing the PIP items (including a full soft-goods renovation),
whether such costs are to be incurred before or after Closing. To the extent
any PIP items are not completed prior to Closing, Escrow Agent shall withhold
the amount necessary to complete all PIP items from Seller’s proceeds of sale
and shall hold such funds in an escrow account and pursuant to a PIP escrow
agreement to be executed and delivered at Closing (the “PIP Escrow Agreement”).
Seller shall be authorized to use Lender Required 

27

Reserves for completion of the PIP and the PIP Escrow Agreement shall
so provide. Seller shall not be required to restore Lender Required Reserves
and it is the understating of both Seller and Buyer that once the PIP has been
completed, the Lender Required Reserve account balance will likely be reduced
to zero ($0). To the extent that the cost of the PIP exceeds the Lender
Required Reserve account balance, Seller shall be responsible for those
additional costs. The PIP Escrow Agreement shall also expressly permit the
immediate reimbursement or direct payment of deposits required for purchase
orders for items to be included in the PIP, including without limitation, all
soft goods. In addition, the PIP escrow Agreement shall permit monthly progress
payments for work that extends beyond the Closing Date. The amount of the
monthly progress payment shall equal the estimated completion percentage for
the PIP as confirmed and approved by a representative of Buyer.

          11.2 Buyer’s
Costs. In connection with the purchase of the Property contemplated under
this Contract, Buyer shall be responsible for the costs and expenses of its
attorneys, accountants and other professionals, consultants and
representatives. Buyer shall also be responsible for the costs and expenses in
connection with the preparation of any environmental report, any update to the
survey and the costs and expenses of preparation of the title insurance
commitment and the issuance of the title insurance policy contemplated by
Article IV and the per page recording charges and clerk’s fee for the Deed (if
applicable). 

ARTICLE XII

ADJUSTMENTS

          12.1 Adjustments.
Unless otherwise provided herein, at Closing, adjustments between the parties
shall be made as of 11:59 p.m. on the Closing Date (the “Cutoff Time”), with
the income and expenses accrued prior to the Closing Date being allocated to
Seller and the income and expenses accruing on and after the Closing Date being
allocated to Buyer, all as set forth below. All of such adjustments and
allocations shall be made in cash at Closing and shall be collected through
and/or adjusted in accordance with the terms of the Existing Management
Agreement. Except as otherwise expressly provided herein, all apportionments
and adjustments shall be made on an accrual basis in accordance with generally
accepted accounting principles. Buyer and Seller shall request that the Manager determine
the apportionments, allocations, prorations and adjustments as of the Cutoff
Time.

                    (a)
Taxes. All real estate taxes, personal property taxes, or any other
taxes and special assessments (special or otherwise) of any nature upon the
Property levied, assessed or pending for the calendar year in which the Closing
occurs (including the period prior to Closing, regardless of when due and
payable) shall be prorated as of the Cutoff Time and, if no tax bills or assessment
statements for such calendar year are available, such amounts shall be
estimated on the basis of the best available information for such taxes and
assessments that will be due and payable on the Hotel for the calendar year in
which Closing occurs.

                    (b)
Utilities. All suppliers of utilities shall be instructed to read meters
or otherwise determine the charges owing as of the Closing Date for services
prior thereto, which charges shall be allocated to Seller. Charges accruing
after Closing shall be allocated to Buyer. If elected by Seller, Seller shall
be given credit, and Buyer shall be charged, for any utility deposits
transferred to and received by Buyer at Closing.

28

                    (c)
Income/Charges. All rents, income and charges receivable or payable
under any Leases and Hotel Contracts applicable to the Property, and any
deposits, prepayments and receipts thereunder, shall be prorated between Buyer
and Seller as of the Cutoff Time.

                    (d)
Accounts. All Lender Required Reserves (as adjusted pursuant to Section
11.1 above), as well as all FF&E accounts, and all PIP accounts, but
excluding amounts held in tax and insurance escrow accounts and utility
deposits to the extent excluded from the definition of Deposits, shall become
the property of Buyer, without additional charge to Buyer and without Buyer
being required to fund the same. 

                    (e)
Guest Ledger. Subject to (f) below, all accounts receivable of
registered guests at the Hotel who have not checked out and were occupying
rooms as of the Cutoff Time, shall be prorated as provided herein.

                    (f)
Room Rentals. All receipts from guest room rentals and other suite
revenues for the night in which the Cutoff Time occurs shall be split equally
between Buyer and Seller.

                    (g)
Advance Deposits. All prepaid rentals, room rental deposits, and all
other deposits for advance registration, banquets or future services to be
provided on and after the Closing Date shall be credited to Buyer.

                    (h)
Accounts Receivable. To the extent not apportioned at Closing and
subject to (e) and (f) above, all accounts receivable and credit card claims as
of the Cutoff Time shall remain the property of Seller, and Seller and Buyer
agree that the monies received from debtors owing such accounts receivable
balances after Closing, unless otherwise provided in the New Management
Agreement, shall be applied as expressly provided in such remittance, or if not
specified then to the Seller’s outstanding invoices to such account debtors in
chronological order beginning with the oldest invoices, and thereafter, to
Buyer’s account.

                    (i)
Accounts Payable. To the extent not apportioned at Closing, any
indebtedness, accounts payable, liabilities or obligations of any kind or
nature related to Seller or the Property for the periods prior to and including
the Closing Date shall be retained by Seller and promptly allocated to Seller
and evidence thereof shall be provided to Buyer, and Buyer shall not be or
become liable therefor, except as expressly assumed by Buyer pursuant to this
Contract or otherwise, and invoices received in the ordinary course of business
prior to Closing shall be allocated to Seller at Closing.

                    (j)
Restaurants, Bars, Machines, Other Income. All monies received in
connection with bar, restaurant, banquet and similar and other services at the
Hotel (other than amounts due from any guest and included in room rentals)
prior to the close of business for each such operation for the night in which
the Cutoff Time occurs shall belong to Seller, and all other receipts and
revenues (not previously described in this Section 12.1) from the operation of
any department of the Hotel shall be prorated between Seller and Buyer at
Closing.

                    (k)
Existing Loan Interest. Interest on the outstanding principal balance of
the Existing Loan shall be prorated between Seller and Buyer as of the Closing
Date with interest up to and including the Closing Date being allocated to
Seller. If interest is paid to the Existing 

29

Lender in arrears, then Seller shall credit Buyer with the interest
payment for the month in which Closing occurs.

          12.2 Reconciliation
and Final Payment. Seller and Buyer shall reasonably cooperate after
Closing to make a final determination of the allocations and prorations
required under this Contract within one hundred eighty (180) days after the
Closing Date; provided, however, failure to make a final reconciliation within
180 days shall not relieve the parties’ obligations under this section to make
a final reconciliation. Upon the final reconciliation of the allocations and
prorations under this Section, the party which owes the other party any sums
hereunder shall pay such party such sums within ten (10) days after the
reconciliation of such sums. The obligations to calculate such prorations, make
such reconciliations and pay any such sums shall survive the Closing.

          12.3 Employees.
Unless Buyer or the Manager expressly agrees otherwise, none of the employees
of the Hotel shall become employees of Buyer, as of the Closing Date; instead,
such employees shall become employees of the Manager or Affiliate of Manager.
Seller shall not give notice under any applicable federal or state plant
closing or similar act, including, if applicable, the Worker Adjustment and
Retraining Notification Provisions of 29 U.S.C., Section 2102, the parties
having agreed that a mass layoff, as that term is defined in 29 U.S.C.,
2101(a)(3), will not have occurred. Any liability for payment of all wages,
salaries and benefits, including, without limitation, accrued vacation pay,
sick leave, bonuses, pension benefits, COBRA rights, and other benefits accrued
or earned by and due to employees at the Hotel through the Cutoff Time,
together with F.I.C.A., unemployment and other taxes and benefits due with
respect to such employees for such period, shall be charged to Seller, in
accordance with the Existing Management Agreement, for the purposes of the
adjustments to be made as of the Cutoff Time. All liability for wages, salaries
and benefits of the employees accruing in respect of and attributable to the
period from and after Closing shall be charged to Buyer, in accordance with the
New Management Agreement. To the extent applicable, all such allocations and
charges shall be adjusted in accordance with the provisions of the Existing
Management Agreement.

ARTICLE XIII

CASUALTY AND CONDEMNATION

          13.1 Risk
of Loss; Notice. Prior to Closing and the delivery of possession of the
Property to Buyer in accordance with this Contract, all risk of loss to the
Property (whether by casualty, condemnation or otherwise) shall be borne by
Seller. In the event that (a) any loss or damage to the Hotel shall occur prior
to the Closing Date as a result of fire or other casualty, or (b) Seller
receives notice that a governmental authority has initiated or threatened to
initiate a condemnation proceeding affecting the Hotel, Seller shall give Buyer
immediate written notice of such loss, damage or condemnation proceeding (which
notice shall include a certification of (i) the amounts of insurance coverages
in effect with respect to the loss or damage and (ii) if known, the amount of
the award to be received in such condemnation).

          13.2 Buyer’s
Termination Right. If, prior to Closing and the delivery of possession of
the Property to Buyer in accordance with this Contract, (a) any condemnation
proceeding shall be pending against a substantial portion of the Hotel or (b)
there is any substantial casualty loss or damage to the Hotel, Buyer shall have
the option to terminate this Contract, provided Buyer 

30

delivers written notice to Seller of its election within twenty (20)
days after the date Seller has delivered Buyer written notice of any such loss,
damage or condemnation as provided above, and in such event, the Earnest Money
Deposit, and any interest thereon, shall be delivered to Buyer and thereafter,
except as expressly set forth herein, no party shall have any further
obligation or liability to the other under this Contract. In the context of
condemnation, “substantial” shall mean condemnation of such portion of a Hotel
(or access thereto) as could, in Buyer’s reasonable judgment, render use of the
remainder impractical or unfeasible for the uses herein contemplated, and, in
the context of casualty loss or damage, “substantial” shall mean a loss or
damage in excess of One Hundred Thousand and No/100 Dollars ($100,000.00) in
value.

          13.3 Procedure
for Closing. If Buyer shall not timely elect to terminate this Contract
under Section 13.2 above, or if the loss, damage or condemnation is not
substantial, each applicable Seller agrees to pay to Buyer at the Closing all
insurance proceeds or condemnation awards which Seller has received as a result
of the same, plus an amount equal to the insurance deductible, and assign to
Buyer all insurance proceeds and condemnation awards payable as a result of the
same, in which event the Closing shall occur without Seller replacing or
repairing such damage. In the case of damage or casualty, at Buyer’s election,
Seller shall repair and restore the Property to its condition immediately prior
to such damage or casualty and shall assign to Buyer all excess insurance
proceeds.

ARTICLE XIV

DEFAULT REMEDIES

          14.1 Buyer
Default. If Buyer defaults under this Contract after the Review Period, and
such default continues for thirty (30) days following written notice from
Seller (provided no notice shall extend the time for Closing), then at Seller’s
election by written notice to Buyer, this Contract shall be terminated and of
no effect, in which event the Earnest Money Deposit, including any interest
thereon, shall be paid to and retained by the Seller as Seller’s sole and
exclusive remedy hereunder, and as liquidated damages for Buyer’s default or
failure to close, and both Buyer and Seller shall thereupon be released from
all obligations hereunder.

          14.2 Seller
Default. If Seller defaults under this Contract, and such default continues
for thirty (30) days following written notice from Buyer, Buyer may elect, as
Buyer’s sole and exclusive remedy, either (i) to terminate this Contract by
written notice to Seller delivered to that Seller at any time prior to the
completion of such cure, in which event the Earnest Money Deposit, including
any interest thereon, shall be returned to the Buyer, and thereafter both the
Buyer and Seller shall thereupon be released from all obligations with respect
to this Contract, except as otherwise expressly provided herein; or (ii) to
treat this Contract as being in full force and effect by written notice to
Seller delivered to Seller at any time prior to the completion of such cure, in
which event the Buyer shall have the right to an action against the defaulting
Seller for damages, specific performance and all other rights and remedies
available at law or in equity. In the absence of an election of remedy on or
before the end of any cure period (but in no event later than thirty (30) days
after initial notice of default), the remedy set forth in 14.2(i) above shall
be deemed elected. 

          14.3 Attorney’s
Fees. Anything to the contrary herein notwithstanding, if it shall be
necessary for either the Buyer or Seller to employ an attorney to enforce its
rights pursuant to 

31

this Contract because of the default of the other party, then the
non-prevailing party shall reimburse the prevailing party for the prevailing
party’s reasonable attorneys’ fees, costs and expenses.

          14.4 Limitation
of Claims. No claim on account of a Seller default under Section 14.2
above, shall be brought against Seller unless damages exceed the Agreed-Upon
Limit. Any such claim of Seller default which does not result in the termination
of this Offer must be asserted within one (1) year of the Closing Date or it
shall be deemed waived. 

ARTICLE XV

NOTICES

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

	
  

 	
  

 	
  

 
	
  

 	
 If to Buyer:

 	
 Apple Ten
 Hospitality Ownership, Inc.

 814 E. Main Street

 Richmond, Virginia 23219

 Attention: Sam Reynolds

 Fax No.: (804) 344-8129

 
	
  

 	
  

 	
  

 
	
  

 	
 with a copy
 to:

 	
 Apple REIT
 Ten, Inc.

 814 E. Main Street

 Richmond, Virginia 23219

 Attention: Legal Dept.

 Fax No.: (804) 344-8129

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Seller:

 	
 Chicago
 River Road Lodging Associates, L.L.C.

 c/o Raymond Management Company

 8333 Greenway Blvd., Ste. 200

 Middleton, WI 53562

 Attention: Bob Bruni

 Fax No.: (608) 662-8365

 
	
  

 	
  

 	
  

 
	
  

 	
 If to
 Indemnitor

 	
 Raymond
 Management Company

 8333 Greenway Blvd., Ste 200

 Middleton, WI 53562

 Attn: Bob Bruni 

 

32

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Fax No.:
 (608) 662-8365

 

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

ARTICLE XVI

MISCELLANEOUS

          16.1 Performance.
Time is of the essence in the performance and satisfaction of each and every
obligation and condition of this Contract.

          16.2 Binding
Effect; Assignment. This Contract shall be binding upon and shall inure to
the benefit of each of the parties hereto, their respective successors and
assigns.

          16.3 Entire
Agreement. This Contract and the Exhibits constitute the sole and entire
agreement between Buyer and Seller with respect to the subject matter hereof.
No modification of this Contract shall be binding unless signed by both Buyer
and Seller.

          16.4 Governing
Law. The validity, construction, interpretation and performance of this
Contract shall in all ways be governed and determined in accordance with the
laws of the State in which the Real Property is located (without regard to
conflicts of law principles).

          16.5 Captions.
The captions used in this Contract have been inserted only for purposes of
convenience and the same shall not be construed or interpreted so as to limit
or define the intent or the scope of any part of this Contract.

          16.6 Confidentiality.
Except as either party may reasonably determine is required by law (including
without limitation laws and regulations applicable to Buyer or its Affiliates
who may be public companies): (i) prior to Closing, Buyer and Seller shall not
disclose the existence of this Contract or their respective intentions to
purchase and sell the Property or generate or participate in any publicity or
press release regarding this transaction, except to Buyer’s and Seller’s legal
counsel and lender, Buyer’s consultants and agents, the Manager, the Manager,
the Franchisor and the Title Company and except as necessitated by Buyer’s Due
Diligence Examination, unless both Buyer and Seller agree in writing and as
necessary to effectuate the transactions contemplated hereby and (ii) following
Closing, the parties shall coordinate any public disclosure or release of
information related to the transactions contemplated by this Contract, and no
such disclosure or release shall be made without the prior written consent of
Buyer, and no press release shall be made without the prior written approval of
Buyer and Seller. 

          16.7 Closing
Documents. To the extent any Closing documents are not attached hereto at
the time of execution of this Contract, Buyer and Seller shall negotiate in
good faith with respect to the form and content of such Closing documents prior
to Closing.

          16.8 Counterparts.
This Contract may be executed in counterparts by the parties hereto, and by
facsimile signature, and each shall be considered an original and all of which
shall constitute one and the same agreement.

33

          16.9 Severability.
If any provision of this Contract shall, for any reason, be adjudged by any
court of competent jurisdiction to be invalid or unenforceable, such judgment
shall not affect, impair or invalidate the remainder of this Contract but shall
be confined in its operation to the provision or provisions hereof directly
involved in the controversy in which such judgment shall have been rendered,
and this Contract shall be construed as if such provision had never existed,
unless such construction would operate as an undue hardship on Seller or Buyer
or would constitute a substantial deviation from the general intent of the
parties as reflected in this Contract.

          16.10 Interpretation.
For purposes of construing the provisions of this Contract, the singular shall
be deemed to include the plural and vice versa and the use of any
gender shall include the use of any other gender, as the context may require.

          16.11
(Intentionally Omitted)

          16.12 Further
Acts. In addition to the acts, deeds, instruments and agreements recited
herein and contemplated to be performed, executed and delivered by Buyer and
Seller, Buyer and Seller shall perform, execute and deliver or cause to be
performed, executed and delivered at the Closing or after the Closing, any and
all further acts, deeds, instruments and agreements and provide such further
assurances as the other party, the Franchisor, licensing authority, or the
Title Company may reasonably require to consummate the transaction contemplated
hereunder.

          16.13 Joint
and Several Obligations. If Seller consists of more than one person or
entity (but not including member or members of Seller), each such person or
entity shall be jointly and severally liable with respect to the obligations of
Seller under this Contract.

ARTICLE XVII 

JOINDER BY INDEMNITOR

          17.1 Indemnification
by Indemnitor. Indemnitor hereby covenants and agrees that:

                    (a)
Indemnitor is and shall be jointly and severally liable with Seller for the
performance of all of Seller’s obligations and liabilities under this Contract
and all documents and instruments executed in connection therewith, including,
without limitation, all of Seller’s obligations and liabilities that survive
Closing;

                    (b)
The obligations of Indemnitor hereunder shall not be limited, diminished or
impaired in any way by virtue of any right or remedy Buyer may have against
Seller under this Contract or by virtue of any other provision of this
Contract;

                    (c)
Buyer shall not be obligated to proceed first against Seller before resorting
to Indemnitor under this Article XVII for payment and performance;

Indemnification claims and procedures with respect to the
indemnification obligations of Indemnitor under this Article XVII shall be
consistent with those provided for in Section 8.8(c) of this Contract. Seller
shall cause Indemnitor to provide, and Indemnitor shall provide, at Closing an
indemnification agreement in form and substance satisfactory in form and
substance to Buyer with respect to the foregoing indemnifications (the “Indemnification Agreement”), 

34

which shall be a condition to Buyer’s obligation to close under this
Contract. Except as provided in this Contract, the covenants, agreements,
representations and warranties of Indemnitor set forth in this Article XVII
shall be continuing, and shall not be deemed to merge into or be waived by the
Deeds or other closing documents and shall survive Closing on the Property.

[Signatures Begin on Following Page]

35

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 
	
  

 	
 CHICAGO
 RIVER ROAD LODGING

 ASSOCIATES, L.L.C., a Wisconsin limited

 liability company

 
	
  

 	
  

 
	
  

 	
 By: 

 
	
  

 	
  

 
	
  

 	
  

 	
 By:

 	
 /s/ C.J.
 Raymond

 	
  

 
	
  

 	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: C.J.
 Raymond 

 
	
  

 	
  

 	
 Title:
 Managing Member 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 INDEMNITOR:

 
	
  

 	
  

 
	
  

 	
 RAYMOND
 MANAGEMENT COMPANY, INC,

 a Wisconsin Corporation

 
	
  

 	
  

 
	
  

 	
 By: 

 	
 /s/ C.J.
 Raymond

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: C.J.
 Raymond

 
	
  

 	
 Title:
 President

 
	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC.,

 a Virginia corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
 /s/
 David Buckley

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: David
 Buckley

 
	
  

 	
 Title: Vice
 President

 

36

EXHIBIT
“A”

LEGAL DESCRIPTION OF LAND

THAT PART OF THE EAST 1/2 OF THE SOUTHEAST 1/4 OF SECTION
33 AND OF THE WEST 1/2 OF
THE SOUTHWEST 1/4 OF SECTION 34, TOWNSHIP 41 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN,
DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE WEST LINE OF THE EAST 1/2 OF THE OF THE
SOUTHEAST 1/4 OF SECTION 33 AFORESAID 1442.10 FEET SOUTH OF THE NORTHWEST
CORNER THEREOF; THENCE NORTH 87 DEGREES 35.5 MINUTES EAST PARALLEL WITH THE NORTH LINE OF THE SOUTHEAST 1/4
OF SAID SECTION 33 AND THE NORTH LINE OF THE SOUTHWEST 1/4 OF SECTION 34
AFORESAID 1843.76 FEET TO THE CENTER OF RIVER ROAD IN THE AFORESAID SECTION 34;
THENCE NORTH 17 DEGREES 33.25 MINUTES WEST
ALONG THE CENTER OF SAID ROAD, A DISTANCE
OF 513.92 FEET TO A POINT OF BEGINNING; THENCE WEST ALONG A LINE
PARALLEL TO THE NORTH LINE OF THE SOUTHWEST 1/4 OF SAID SECTION 34 AND THE
NORTH LINE OF THE SOUTHEAST 1/4 OF SAID SECTION 33, 622.40 FEET MORE OR LESS TO
THE EASTERLY LINE OF PARCEL T-9A1.1 CONVEYED TO THE ILLINOIS STATE TOLL HIGHWAY
COMMISSION BY WARRANTY DEED RECORDED DECEMBER
2, 1957 AS DOCUMENT 17078113; THENCE NORTHERLY 153.37 FEET ALONG A LINE
WHICH MAKES AN ANGLE OF 100 DEGREES 41 MINUTES 58 SECONDS TO THE LEFT OF THE LAST DESCRIBED LINE; THENCE EASTERLY 285 FEET
ALONG A LINE WHICH MAKES AN ANGLE OF 84 DEGREES 55 MINUTES 06 SECONDS TO THE
RIGHT OF THE LAST DESCRIBED LINE EXTENDED; THENCE NORTHWESTERLY 95.30 FEET MORE
OR LESS ALONG A LINE WHICH MAKES AN ANGLE
OF 90 DEGREES 00 MINUTES 00 SECONDS TO THE LEFT OF THE LAST DESCRIBED
LINE EXTENDED TO ITS INTERSECTION WITH A LINE 625.41 FEET AS MEASURED ALONG THE WEST LINE OF THE SOUTHWEST 1/4
OF SAID SECTION 34 SOUTH OF THE NORTH
LINE OF THE SOUTHWEST 1/4 OF SAID SECTION 34; THENCE EAST ALONG A LINE
PARALLEL WITH THE NORTH LINE OF THE SOUTHEAST
1/4 OF SAID SECTION 33 AND PARALLEL WITH THE NORTH LINE OF THE SOUTHWEST 1/4 OF SAID SECTION 34, A DISTANCE
OF 318.56 FEET MORE OR LESS TO ITS INTERSECTION WITH THE CENTER LINE OF
RIVER ROAD AND THENCE SOUTHEASTERLY ALONG THE CENTER LINE OF RIVER ROAD 331.33
FEET MORE OR LESS TO THE POINT OF BEGINNING (EXCEPT THAT PART CONVEYED TO THE
ILLINOIS HIGHWAY AUTHORITY BY DEED RECORDED AS DOCUMENT NUMBER 26916956 AND DESIGNATED ON NORTHERN ILLINOIS TOLLWAY PLAT AS PARCEL
T-94-1-001), IN COOK COUNTY, ILLINOIS.

EXHIBIT B

LIST
OF FF&E

	
  

 	
  

 	
  

 
	
 O’HARE AIRPORT
 HILTON GARDEN INN

 
	
 Listing of
 Furniture, Fixtures & Equipment

 
	
 As of March 31,
 2011

 
	
  

 	
  

 	
  

 
	
 Location =
 30-Room F&F

 
	
 000043

 	
  

 	
 ADA desk w/o drawer (10)

 
	
 000044

 	
  

 	
 ADA Hospitality Center (10)

 
	
 000045

 	
  

 	
 ARTWORK @ GUESTROOMS

 
	
 000047

 	
  

 	
 Custom Mirror @ King Parlor Su

 
	
 000048

 	
  

 	
 Desk with lap drawer (244)

 
	
 000049

 	
  

 	
 Drapes

 
	
 000050

 	
  

 	
 GR Closet Shelving Install

 
	
 000051

 	
  

 	
 Graco Pack ‘N Play Crib (12)

 
	
 000052

 	
  

 	
 Granite Tops - TV stands,
 dressers (506)

 
	
 000053

 	
  

 	
 HANGER CLOSET UNIT - 48” (242)

 
	
 000054

 	
  

 	
 Hospitality Center L- (112)

 
	
 000055

 	
  

 	
 Hospitality Center R- (132)

 
	
 000057

 	
  

 	
 King headboards (150)

 
	
 000058

 	
  

 	
 King Sleep System (1)

 
	
 000059

 	
  

 	
 Lamps - Desk

 
	
 000060

 	
  

 	
 Lamps - Floor

 
	
 000061

 	
  

 	
 Lamps - Night Stands

 
	
 000062

 	
  

 	
 Light Fixtures - Bath Wall
 Sconces

 
	
 000063

 	
  

 	
 Light Fixtures - Ceiling

 
	
 000064

 	
  

 	
 LOUNGE CHAIR (253)

 
	
 000065

 	
  

 	
 LUGGAGE STANDS (254)

 
	
 000066

 	
  

 	
 MATTRESS & FRAMES - KING
 (149)

 
	
 000067

 	
  

 	
 MIRROR @ BATHROOM (244)

 
	
 000068

 	
  

 	
 MIRROR @ BATHROOM ADA (8)

 
	
 000069

 	
  

 	
 MIRROR @ DESK (254)

 
	
 000070

 	
  

 	
 OTTOMAN (253)

 
	
 000071

 	
  

 	
 QUEEN BED FRAME (206)

 
	
 000072

 	
  

 	
 QUEEN BED SET (206)

 
	
 000073

 	
  

 	
 Queen headboard (206)

 
	
 000074

 	
  

 	
 Side table 18x20 (253)

 
	
 000075

 	
  

 	
 Single drawer night stand (403)

 
	
 000076

 	
  

 	
 Stow-Away Bed (11)

 
	
 000077

 	
  

 	
 SWIVEL DESK CHAIR (277)

 

2

	
  

 	
  

 	
  

 
	
 000078

 	
  

 	
 Tissue Box Covers

 
	
 000079

 	
  

 	
 TV Chest (253)

 
	
 000081

 	
  

 	
 Wastebaskets

 
	
 Location = 35-Rm
 Equip

 
	
 000082

 	
  

 	
 Alarm Clock Radio (276)

 
	
 000083

 	
  

 	
 Coffee Maker (258)

 
	
 000084

 	
  

 	
 Compact Hair Dryer (264)

 
	
 000085

 	
  

 	
 Iron (Sunbeam) (258)

 
	
 000086

 	
  

 	
 Ironing Board (258)

 
	
 000087

 	
  

 	
 Ironing Organizer (258)

 
	
 000088

 	
  

 	
 Microwave Oven (254)

 
	
 000089

 	
  

 	
 Refrigerator, Black (254)

 
	
 000090

 	
  

 	
 Telepones

 
	
 000348

 	
  

 	
 Microwaves (5)

 
	
 000447

 	
  

 	
 TV Mounts

 
	
 000448

 	
  

 	
 TV 32” LCD (255)

 
	
 Location =
 40-Hotel F&F

 
	
 000092

 	
  

 	
 20” Table @ Pool (4)

 
	
 000093

 	
  

 	
 36” Table @ Pool (4)

 
	
 000094

 	
  

 	
 Arm Chair @ Lobby (32)

 
	
 000095

 	
  

 	
 Artwork @ Lobby

 
	
 000096

 	
  

 	
 Auto Transfer Switch, Emerg
 Generator

 
	
 000097

 	
  

 	
 Bar & Cabinets

 
	
 000098

 	
  

 	
 Blinds - Breakrooms

 
	
 000099

 	
  

 	
 Breakroom Chairs(15) & Tables
 (3)

 
	
 000100

 	
  

 	
 Cabinet, Fire-Safe

 
	
 000101

 	
  

 	
 Cabinets/Millwork

 
	
 000102

 	
  

 	
 Canopy

 
	
 000106

 	
  

 	
 Chaise Lounge @ Pool (3)

 
	
 000107

 	
  

 	
 Chandelier

 
	
 000108

 	
  

 	
 Coat Racks (4)

 
	
 000109

 	
  

 	
 Computer Rm Shelving

 
	
 000111

 	
  

 	
 Countertops

 
	
 000112

 	
  

 	
 Door Operators, Sliding Entrance

 
	
 000113

 	
  

 	
 Drapes - Valance Boards

 
	
 000114

 	
  

 	
 Drapes @ Common Area

 
	
 000115

 	
  

 	
 End Table @ Lounge (4)

 
	
 000116

 	
  

 	
 Fire Extinguishers & Cabinets

 
	
 000119

 	
  

 	
 Folding Partitions

 
	
 000121

 	
  

 	
 Garden Bench 4’ (2)

 
	
 000123

 	
  

 	
 Information Kiosk

 
	
 000126

 	
  

 	
 Interior Silk Plants

 

3

	
  

 	
  

 	
  

 
	
 000127

 	
  

 	
 Lamps @ Common Area

 
	
 000128

 	
  

 	
 Lantern @ Fireplace (2)

 
	
 000129

 	
  

 	
 Light Fixture @ Dining (6)

 
	
 000130

 	
  

 	
 Light Fixtures - Hall Sconces

 
	
 000131

 	
  

 	
 Light, Accent, Chandelier

 
	
 000132

 	
  

 	
 Light, Accent, Chandelier, Lobby

 
	
 000133

 	
  

 	
 Light, Accent, Sconce

 
	
 000136

 	
  

 	
 Lights - Accent & Night

 
	
 000137

 	
  

 	
 Lockers

 
	
 000140

 	
  

 	
 Mirror @ Public Restroom

 
	
 000141

 	
  

 	
 Mirrors, Whirpool Tubs

 
	
 000142

 	
  

 	
 Office Furnitue/Files

 
	
 000143

 	
  

 	
 Pavillion Booths

 
	
 000145

 	
  

 	
 Reception Desk

 
	
 000149

 	
  

 	
 Signage & Electrical

 
	
 000150

 	
  

 	
 Sink, Boardroom, 1-Bowl

 
	
 000151

 	
  

 	
 Sink, Breakroom (2)

 
	
 000152

 	
  

 	
 Sink, Hand, SS

 
	
 000153

 	
  

 	
 Sink, Janitor (2)

 
	
 000154

 	
  

 	
 Smoker’s Station (4)

 
	
 000155

 	
  

 	
 Stackable Chair @ Pool (30)

 
	
 000156

 	
  

 	
 Storefront, Sliding Doors,
 Vestibule

 
	
 000157

 	
  

 	
 Surfboards Shelf Unit

 
	
 000159

 	
  

 	
 Table @ Lobby - Focal (1)

 
	
 000160

 	
  

 	
 Table @ Lobby- Round (3)

 
	
 000161

 	
  

 	
 Table @ Lobby-Console (12)

 
	
 000162

 	
  

 	
 Table @ Lounge (12)

 
	
 000164

 	
  

 	
 Umbrella @ Pool (2)

 
	
 000165

 	
  

 	
 Valance @ Pavilion

 
	
 000168

 	
  

 	
 Waste Receptacles

 
	
 000169

 	
  

 	
 Waste Receptacles

 
	
 000350

 	
  

 	
 Bar Stools (10)

 
	
 000351

 	
  

 	
 Bench for Vestibule (2)

 
	
 000352

 	
  

 	
 Breakfast Booth Cushions

 
	
 000353

 	
  

 	
 Desks 60 X 30 (3)

 
	
 000354

 	
  

 	
 Hostess Station

 
	
 000356

 	
  

 	
 Rolled Arm Benches (2)

 
	
 000357

 	
  

 	
 Sales Office Chairs (6)

 
	
 000358

 	
  

 	
 Waitress Station

 
	
 000383

 	
  

 	
 Bar Stools {16}

 
	
 000384

 	
  

 	
 Bar Table Tops {4}

 
	
 000385

 	
  

 	
 Desk/Credenze-Sales Office

 

4

	
  

 	
  

 	
  

 
	
 000386

 	
  

 	
 Florescent
 Lamps-Bases&Bulbs-Mtg Rooms

 
	
 000388

 	
  

 	
 Menu Display Stand-Mirror Brass

 
	
 000389

 	
  

 	
 Portable Dance Floor

 
	
 000390

 	
  

 	
 Additional Bar Top-Granite

 
	
 000406

 	
  

 	
 Pendant Lamps (3)

 
	
 000407

 	
  

 	
 Reupholster Booth Seats

 
	
 000408

 	
  

 	
 Canopy - Canvas

 
	
 000426

 	
  

 	
 Exercise Rm - Towel Station

 
	
 000428

 	
  

 	
 Exercise Rm - Blinds

 
	
 000429

 	
  

 	
 Exercise Rm - Mirrors Frames
 & Sign

 
	
 000430

 	
  

 	
 Lobby Sofa (2)

 
	
 000431

 	
  

 	
 Lounge Chair (4)

 
	
 000432

 	
  

 	
 Office Furniture - Sales Cubes

 
	
 000451

 	
  

 	
 Lobby Bench

 
	
 000452

 	
  

 	
 Floor Mat

 
	
 Location =
 45-Hotel Equi

 
	
 000172

 	
  

 	
 Hilton OnQ PMS Software

 
	
 000173

 	
  

 	
 Automatic Scrubber - Saber 17

 
	
 000174

 	
  

 	
 Breakroom - Friges (2)

 
	
 000175

 	
  

 	
 Breakroom - Microwave

 
	
 000176

 	
  

 	
 Busi Center Printer - Inkjet 2300

 
	
 000178

 	
  

 	
 Card Reader (4)

 
	
 000179

 	
  

 	
 Carpet Extractor - Cadet 7

 
	
 000180

 	
  

 	
 Cisco Internet Routers (12)

 
	
 000183

 	
  

 	
 Conference Phone - Soundstation

 
	
 000184

 	
  

 	
 Dehumidification Unit, Pool

 
	
 000185

 	
  

 	
 Dryer - Gas 120# Micro (3)

 
	
 000187

 	
  

 	
 Exhaust System

 
	
 000188

 	
  

 	
 Generator, Emergency, 200KW

 
	
 000189

 	
  

 	
 Glass Door Freezer - Pavillion

 
	
 000190

 	
  

 	
 Glass Door Refrigerator -
 Pavillion

 
	
 000191

 	
  

 	
 Guest Laundry - Dryer

 
	
 000192

 	
  

 	
 Guest Laundry - Washer

 
	
 000193

 	
  

 	
 Health-O-Meter Scale

 
	
 000194

 	
  

 	
 Hotel Equipment - Contractor
 Misc.

 
	
 000195

 	
  

 	
 Hotel Equipment - Electrical

 
	
 000196

 	
  

 	
 Hotel Equipment - Plumbing

 
	
 000197

 	
  

 	
 Housekeeping Carts (20)

 
	
 000198

 	
  

 	
 HP Deskjet 6540

 
	
 000199

 	
  

 	
 HSI Restaurant POS Hardware

 
	
 000200

 	
  

 	
 HSI Restaurant POS Software

 
	
 000201

 	
  

 	
 Ice Machine - 30” Dispenser (8)

 

5

	
  

 	
  

 	
  

 
	
 000202

 	
  

 	
 Ice Machine - Modular Cuber (8)

 
	
 000203

 	
  

 	
 Ice Machine Filter System (2)

 
	
 000204

 	
  

 	
 Ice Machine Modular Cuber

 
	
 000205

 	
  

 	
 Interior Surveylance System

 
	
 000206

 	
  

 	
 Laundry Carts (8)

 
	
 000207

 	
  

 	
 Luggage Carts (4)

 
	
 000208

 	
  

 	
 Mitel Phone System

 
	
 000209

 	
  

 	
 OnQ Forms Software

 
	
 000210

 	
  

 	
 Onzone Sanitizer

 
	
 000211

 	
  

 	
 Optiplex GX280 - AGM-6YCCL71

 
	
 000212

 	
  

 	
 Optiplex GX280 -Sales-HYGG871

 
	
 000213

 	
  

 	
 Optiplex GX280 -Sales-8FB9M81

 
	
 000214

 	
  

 	
 OptiPlex GX280-Busi Center-BDWG81

 
	
 000215

 	
  

 	
 OptiPlex GX280 - Busi
 Center-3MMPL81

 
	
 000216

 	
  

 	
 Optiplex GX280 - DOS-DGB3Y61

 
	
 000217

 	
  

 	
 Optiplex GX280 - F&B
 Manager-17HG871

 
	
 000218

 	
  

 	
 Optiplex GX280 - GM-4JD9561

 
	
 000219

 	
  

 	
 Optiplex GX280 - Sales-1YCCL71

 
	
 000220

 	
  

 	
 OptiPlex GX280 - Sales-GKCKW71

 
	
 000223

 	
  

 	
 Hilton Training PC

 
	
 000224

 	
  

 	
 Oreck Sweepers (2)

 
	
 000226

 	
  

 	
 Pump, Recirculating, Pool

 
	
 000228

 	
  

 	
 Red Wall Phones (16)

 
	
 000229

 	
  

 	
 Safe Deposit Boxes

 
	
 000230

 	
  

 	
 Security System & Lighting

 
	
 000231

 	
  

 	
 Security System Camera

 
	
 000232

 	
  

 	
 Sound System Speakers

 
	
 000233

 	
  

 	
 Telephones

 
	
 000238

 	
  

 	
 Two-Way Radios (10)

 
	
 000239

 	
  

 	
 Utility Carts

 
	
 000240

 	
  

 	
 Vacuum - Sanitaire Backpack

 
	
 000241

 	
  

 	
 Vacuum - Sanitaire Bagless (16)

 
	
 000242

 	
  

 	
 Vacuum Wide Area 28”

 
	
 000243

 	
  

 	
 Washer - 100# OPL (2)

 
	
 000244

 	
  

 	
 Washer - 55# OPL

 
	
 000245

 	
  

 	
 Water Heater, Kitchen &
 Laundry Equip

 
	
 000246

 	
  

 	
 Water Softener, 25% Kitchen &
 Laundry

 
	
 000247

 	
  

 	
 Wheelchair - Tracer EX2

 
	
 000248

 	
  

 	
 Wireless Internet Install

 
	
 000359

 	
  

 	
 Electrial Wiring - Appliances
 & Cooler

 
	
 000362

 	
  

 	
 OnQ Workstation - Lenovo
 ThinkCentre

 
	
 000363

 	
  

 	
 OnQ Workstation - Lenovo
 ThinkCentre

 

6

	
  

 	
  

 	
  

 
	
 000364

 	
  

 	
 OptiPlex GX620 -
 Accountant-5JHVN91

 
	
 000365

 	
  

 	
 Phone System - Sales Office

 
	
 000366

 	
  

 	
 Pool Fence - Wading & Main
 Pool

 
	
 000367

 	
  

 	
 Printer - HP LaserJet 1320 TN -
 Sales Office

 
	
 000368

 	
  

 	
 Printer - Injet HP 2300

 
	
 000369

 	
  

 	
 Security System - Camera

 
	
 000391

 	
  

 	
 Carpet Cleaning Machine (1)

 
	
 000393

 	
  

 	
 Flush Kit f/Cleaning Multistack
 Air Conditioning Unit

 
	
 000394

 	
  

 	
 Modular Ice Cuber w/Bin (1)

 
	
 000395

 	
  

 	
 OptiPlex 745-Call Acct-CWCGPC1

 
	
 000396

 	
  

 	
 Polishing Machine f/Metal (1)

 
	
 000398

 	
  

 	
 Security Camera System &
 Upgrades

 
	
 000409

 	
  

 	
 HSIA Load Balancer

 
	
 000410

 	
  

 	
 LED Lobby Lights

 
	
 000413

 	
  

 	
 OnQ PC - Lenovo ThinkCentre M57

 
	
 000414

 	
  

 	
 OptiPlex 755-FOM-GTJLJH1

 
	
 000415

 	
  

 	
 OptiPlex 755-Sales-J77KBG1

 
	
 000416

 	
  

 	
 TV 42” Exercise Rm & (2) wall
 mounts

 
	
 000433

 	
  

 	
 Exercise Eq - AMT (2)

 
	
 000434

 	
  

 	
 Exercise Eq - Bench & Misc

 
	
 000435

 	
  

 	
 Exercise Eq - Precor 576i Exp

 
	
 000436

 	
  

 	
 Exercise Eq - Precor Trainer

 
	
 000437

 	
  

 	
 Exercise Eq - Recumbant Bike

 
	
 000438

 	
  

 	
 Exercise Eq - Stretch Trainer

 
	
 000439

 	
  

 	
 Exercise Eq - Treadmills (4)

 
	
 000440

 	
  

 	
 Exercise Equip - Electircal

 
	
 000441

 	
  

 	
 Sales Office - Voice/Data Wiring

 
	
 000454

 	
  

 	
 TV LCD 42”

 
	
 000455

 	
  

 	
 HSIA Installation

 
	
 000456

 	
  

 	
 TV LCD 32”

 
	
 000457

 	
  

 	
 OptiPlex 780-491JNN1-Maint

 
	
 000458

 	
  

 	
 Service Cart

 
	
 000460

 	
  

 	
 Heavy Duty Laundry Basket

 
	
 000461

 	
  

 	
 LG 37” LCD Monitor - 376D450C

 
	
 000462

 	
  

 	
 Cart for LCD Monitor

 
	
 000463

 	
  

 	
 Polycom Speakerphone Cases (2)

 
	
 000464

 	
  

 	
 LCD Projector Cases (2)

 
	
 000465

 	
  

 	
 Teleconference Phone (2)

 
	
 000466

 	
  

 	
 Flipchart Stand (10)

 
	
 000467

 	
  

 	
 Tripod Screen 8’ (2)

 
	
 000468

 	
  

 	
 Tripod Screen 6’ (2)

 
	
 000469

 	
  

 	
 Projector-LCD (2)

 

7

	
  

 	
  

 	
  

 
	
 000470

 	
  

 	
 Shure Combo Kit (2)

 
	
 000471

 	
  

 	
 Podium (2)

 
	
 Location =
 50-Sign

 
	
 000249

 	
  

 	
 Transworld Signs

 
	
 Location =
 55-Automobiles

 
	
 000444

 	
  

 	
 2008 Dodge Grand Caravan

 
	
 000445

 	
  

 	
 1999 Dodge Ram - Plow Truck

 
	
 000446

 	
  

 	
 Plow Truck - Plow & Salter

 
	
 Location =
 60-Rest F&F

 
	
 000250

 	
  

 	
 Artwork @ Meeting Room

 
	
 000251

 	
  

 	
 Banquet Table (18”X 72”X 29” (90)

 
	
 000252

 	
  

 	
 Banquet Table (30”X 72”X 29”) (8)

 
	
 000253

 	
  

 	
 Banquet Table (60” Dia X 29”)
 (40)

 
	
 000254

 	
  

 	
 Banquet Table Truck (4)

 
	
 000255

 	
  

 	
 Banquet Table Truck-Rounds (3)

 
	
 000256

 	
  

 	
 Bar Stool (4)

 
	
 000257

 	
  

 	
 Board Room Table

 
	
 000258

 	
  

 	
 Dining Arm Chair (40)

 
	
 000259

 	
  

 	
 Dining Side Chair (50)

 
	
 000260

 	
  

 	
 Dining Table, 24” X 33” (21)

 
	
 000261

 	
  

 	
 Dining Table, 33” X 33” (14)

 
	
 000262

 	
  

 	
 Display Stand (2 Tier, Footed)

 
	
 000263

 	
  

 	
 Folding Table Lectern (3)

 
	
 000264

 	
  

 	
 Stacking Chair @ Mtng Rms (350)

 
	
 000265

 	
  

 	
 Sink, Meeting Room, 1-Bowl

 
	
 000266

 	
  

 	
 Tall Meeting Tables (20)

 
	
 000267

 	
  

 	
 Visual Board Cabinet 60X48

 
	
 Location =
 65-Rest Equip

 
	
 000268

 	
  

 	
 Backbar Refrigerated Cabinet

 
	
 000269

 	
  

 	
 Banquet Cabinet - Mobile/Heated
 (3)

 
	
 000270

 	
  

 	
 Beverage Counter

 
	
 000271

 	
  

 	
 Bus Cart - 3 Shelf

 
	
 000272

 	
  

 	
 Cabinet - Mobile/Heated (2)

 
	
 000273

 	
  

 	
 Chafers (5)

 
	
 000274

 	
  

 	
 Charbroiler - Gas

 
	
 000275

 	
  

 	
 Clean Dishtable

 
	
 000276

 	
  

 	
 Convection Oven - Gas

 
	
 000277

 	
  

 	
 Cooler Refrigeration

 
	
 000278

 	
  

 	
 Dish Dolly

 
	
 000279

 	
  

 	
 Dishtable

 
	
 000280

 	
  

 	
 Dishwasher - Conveyor Type

 
	
 000281

 	
  

 	
 Disposer

 

8

	
  

 	
  

 	
  

 
	
 000282

 	
  

 	
 Dolly Dish Adjustable

 
	
 000283

 	
  

 	
 Dolly Dish Adjustable (2)

 
	
 000284

 	
  

 	
 Drop-In Cold Food Unit

 
	
 000285

 	
  

 	
 Drop-In Hot Food Unit

 
	
 000286

 	
  

 	
 Exhaust Hood

 
	
 000287

 	
  

 	
 Feezer Refigeration

 
	
 000288

 	
  

 	
 Food Mixer SP20 & Stand

 
	
 000289

 	
  

 	
 Food Processor

 
	
 000290

 	
  

 	
 Food Processor 3 Qrt

 
	
 000291

 	
  

 	
 Food Slicer

 
	
 000292

 	
  

 	
 Food Warmer, Drop-in (2)

 
	
 000293

 	
  

 	
 Freezer - Undercounter

 
	
 000294

 	
  

 	
 Fryer - Gas (2)

 
	
 000295

 	
  

 	
 Glass Door Freezer

 
	
 000296

 	
  

 	
 Glass Door Refrigerator

 
	
 000297

 	
  

 	
 Hand Mixer MP550

 
	
 000298

 	
  

 	
 Hand Sinks (4)

 
	
 000299

 	
  

 	
 Heat Lamps (4)

 
	
 000300

 	
  

 	
 Kettle, Electric, Tilting

 
	
 000301

 	
  

 	
 Main Galley Exhaust System

 
	
 000302

 	
  

 	
 Microwave 1000W

 
	
 000303

 	
  

 	
 Preparation Exhaust System

 
	
 000304

 	
  

 	
 Projection Screen 10’x10’

 
	
 000305

 	
  

 	
 Projection Screen 60x60 (3)

 
	
 000306

 	
  

 	
 Projection Screens - Contractor

 
	
 000307

 	
  

 	
 Projection Screens - Electrical

 
	
 000308

 	
  

 	
 Range - 60” Gas

 
	
 000309

 	
  

 	
 Range, Gas

 
	
 000311

 	
  

 	
 Refrigerated Milk Dispenser

 
	
 000312

 	
  

 	
 Refrigerated, Reach-in

 
	
 000313

 	
  

 	
 Sink 3-Compartment

 
	
 000314

 	
  

 	
 Skillet, Gas, Tilting

 
	
 000315

 	
  

 	
 Sneeze Guard Package

 
	
 000316

 	
  

 	
 Soda Lines, Kitchen

 
	
 000317

 	
  

 	
 Soak Sink - Portable

 
	
 000318

 	
  

 	
 Stacking Chair Hand Truck (4)

 
	
 000319

 	
  

 	
 Steam table pan rack

 
	
 000320

 	
  

 	
 Toaster - Conveyor Type

 
	
 000321

 	
  

 	
 Toaster, Pop-up Type (2)

 
	
 000322

 	
  

 	
 Tripod Screen

 
	
 000323

 	
  

 	
 TV 27” w/wall mount - Bar

 
	
 000324

 	
  

 	
 Underbar Modular Unit & Ice
 Bin

 

9

	
  

 	
  

 	
  

 
	
 000325

 	
  

 	
 Utility Cart - 2 Shelf

 
	
 000326

 	
  

 	
 Walkin Cooler/Freezer

 
	
 000327

 	
  

 	
 Wall Mounted Shelf & Pot Rack

 
	
 000328

 	
  

 	
 Wire Shelving

 
	
 000329

 	
  

 	
 Work table 60” long (2) w/sink

 
	
 000330

 	
  

 	
 Work Table 96” long

 
	
 000331

 	
  

 	
 Work Tables 120” w/Sinks

 
	
 000332

 	
  

 	
 Work Tables 72” Long (2)

 
	
 000371

 	
  

 	
 Walk-In Cooler

 
	
 000372

 	
  

 	
 HSI - POS System Workstation

 
	
 000373

 	
  

 	
 Portable Bar

 
	
 000374

 	
  

 	
 Inventory Scanner - Pantry

 
	
 000375

 	
  

 	
 Stove - Add Salamander

 
	
 000417

 	
  

 	
 Grease Filtering/Recycling
 Machine

 
	
 000442

 	
  

 	
 Refrigerator - Sandwhich Bar

 
	
 000443

 	
  

 	
 Vacuum Packaging Machine

 
	
 000459

 	
  

 	
 POS Terminal at Bar

 

10

EXHIBIT
C

LIST
OF HOTEL CONTRACTS

	
  

 	
  

 	
  

 	
  

 
	
 AAA

 	
  

 	
 Official
 Appointment

 
	
 The Knowland
 Group

 	
  

 	
 Market
 Intelligence, Lead Generation-Reader Board

 
	
 VFM Leonardo
 Sales

 	
  

 	
 Advertising
 (Photoflicks Production)

 
	
 PrinterOn

 	
  

 	
 Hot Spot
 Printing Service

 
	
 ADP

 	
  

 	
 Payroll
 processing & tax filing, HRIS, Timekeeping 

 
	
 Comcast

 	
  

 	
 TV cable

 
	
 Comcast

 	
  

 	
 Secondary
 Internet Circuit

 
	
 Commercial Record
 Center

 	
  

 	
 File Storage

 
	
 Mickey’s
 Linen

 	
  

 	
 Linen supply
 & laundry service F&B

 
	
 Fox Valley
 Fire Safety

 	
  

 	
 Fire
 Extinguishers

 
	
 Hospitality
 Solutions Int’l.

 	
  

 	
 POS Software
 Maintenance

 
	
 Industrial
 Water Management

 	
  

 	
 HVAC Water
 Treatment Program

 
	
 Lodgenet

 	
  

 	
 In room
 entertainment

 
	
 Muzak

 	
  

 	
 Lobby Music

 
	
 Siemens

 	
  

 	
 Fire
 Protection Panel

 
	
 Sprint

 	
  

 	
 Cell Phone
 Service

 
	
 ThyssenKrupp
 Elevator

 	
  

 	
 Elevator
 Maintenance

 
	
 Waste
 management

 	
  

 	
 Waste
 Removal

 
	
 AT&T/Wayport

 	
  

 	
 HSIA Support

 
	
  

 	
  

 	
  

 
	
  

 	
 Leases

 	
  

 	
  

 
	
 Leasing
 Associates

 	
  

 	
 2010 Ford 12
 Passenger Van

 
	
 Leasing
 Associates

 	
  

 	
 2010 Ford 14
 Passenger Bus

 
	
 GFC Leasing

 	
  

 	
 Image Runner
 3225, Image runner 2018i

 
	
 Hampton Inn
 O’Hare

 	
  

 	
 Clear
 Channel Advertising share

 
	
  

 	
  

 	
  

 
	
 Hilton

 	
  

 	
 OnQ - PMS
 System

 
	
 Hilton/Hotel
 Direct Center

 	
  

 	
 Reservation
 Center - call center

 
	
 Hilton

 	
  

 	
 Primary
 Internet Circuit (3.0GBps INCS)

 
	
  

 	
  

 	
  

 
	
 Tharldson
 Communications

 	
  

 	
 Zero Plus
 Commissions

 
	
 ATM Systems

 	
  

 	
 ATM Machine

 
	
 Unilever
 Best Foods

 	
  

 	
 Lipton
 Brewed Iced Tea-Equipment Agreement

 
	
 Chicago
 River Road Restaurant, LLC

 	
  

 	
 Restaurant
 Lease

 
	
 Illinois Trade
 Association

 	
  

 	
 Guest Room
 trades for goods/services

 

11

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Utility
 Contracts

 	
  

 	
  

 
	
 Constellation
 New Energy

 	
  

 	
 Electricity

 
	
 Blackhawk
 Energy Services, LLC 

 	
  

 	
  

 
	
 D/b/a
 Constellation New Energy 

 	
  

 	
  

 
	
 Gas Division
 Illinois, LLC

 	
  

 	
 Natural Gas
 Agency Agreement

 
	
 Nicor Gas

 	
  

 	
 Gas

 
	
 City of Des
 Plaines

 	
  

 	
 Sewer/Water

 
	
  

 	
  

 	
  

 
	
 FIS Merchant
 Services

 	
  

 	
  

 
	
 GCS/Fuse Box

 	
  

 	
  

 

12

EXHIBIT
D

CONSENTS
AND APPROVALS

	
  

 	
  

 
	
 A.

 	
 Consents
 Required Under Hotel Contracts:

 
	
  

 	
  

 
	
  

 	
 As shown on
 Exhibit C to the Purchase Contract

 
	
  

 	
  

 
	
 B.

 	
 Consents
 Required Under Other Contracts:

 
	
  

 	
  

 
	
  

 	
 As shown on
 Exhibit C to the Purchase Contract

 
	
  

 	
  

 
	
 C.

 	
 Governmental
 Approvals and Consents:

 
	
  

 	
  

 
	
  

 	
 It has been
 our experience in general, that governmental permits and licenses are not
 assignable to third party purchasers. As a consequence the Buyer will likely
 be required to obtain from the appropriate governmental authorities new
 licenses and permits for use in the operation of the Hotel. As a consequence
 of applying for such licenses and permits, municipalities may conduct inspections
 of the subject Hotel and may impose special requirements as a condition to
 obtaining needed licenses and permits.

 
	
  

 	
  

 
	
 D.

 	
 Membership
 Approval and Consent:

 
	
  

 	
  

 
	
  

 	
 Seller shall
 have received the written consent of the members of Seller owning that
 percentage of membership interests needed under Seller’s Operating Agreement
 to permit and authorize Seller to sell the Hotel and the Property to Buyer
 under and in accordance with the terms of this Purchase Contract.

 

EXHIBIT
E

ENVIRONMENTAL
REPORTS

	
  

 	
  

 
	
 1.

 	
 Asbestos
 survey report by Versar dated December 2000;

 
	
  

 	
  

 
	
 2.

 	
 Phase
 I environmental site assessment report prepared by STS Consultants dated January 3, 2001;

 
	
  

 	
  

 
	
 3.

 	
 Letter
 from STS Consultants dated February 7, 2001 to McShane regarding the Phase I report;

 
	
  

 	
  

 
	
 4.

 	
 Phase II environmental report prepared by STS Consultants dated
 February 16, 2001;

 
	
  

 	
  

 
	
 5.

 	
 Phase I
 environmental site assessment report prepared by LandAmerica Assessment Corporation dated December 5, 2005.

 

EXHIBIT
F

CLAIMS
OR LITIGATION PENDING

None

-i-

EXHIBIT
G

ESCROW
AGREEMENT

          THIS ESCROW
AGREEMENT (this “Agreement”) made the ___ day of
_______, 2010 by and among _____________________, a ___________
________________ (“Seller”), _______________________ (“Indemnitor”)
APPLE TEN HOSPITALITY OWNERSHIP, INC. a Virginia corporation, or its assigns (“Buyer”),
and CHICAGO TITLE COMPANY (“Escrow Agent”).

R E C I T A L S

          WHEREAS,
pursuant to the provisions of Section 2.6 of that certain Purchase Contract
dated _______ ___, 2010 (the “Contract”) between Seller and Buyer (the “Parties”),
the Parties have requested Escrow Agent to hold in escrow in accordance with
the provisions, upon the terms, and subject to the conditions, of this
Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and

          WHEREAS,
the Deposit shall be delivered to Escrow Agent in accordance with the terms of
the Contract and this Agreement.

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

                    1.
Seller and Buyer hereby appoint Escrow Agent to serve as escrow agent
hereunder, and the Escrow Agent agrees to act as escrow agent hereunder in
accordance with the provisions, upon the terms and subject to the conditions of
this Agreement. The Escrow Agent hereby acknowledges receipt of the Deposit.
Escrow Agent shall invest the Deposit as directed by Buyer.

                    2.
Subject to the rights and obligations to transfer, deliver or otherwise dispose
of the Deposit, Escrow Agent shall keep the Deposit in Escrow Agent’s
possession pursuant to this Agreement.

                    3.
A. Buyer shall be entitled to an immediate return of the Deposit at any time
prior to the expiration of the Review Period (as defined in Section 3.1 of the
Contract) by providing written notice to Escrow Agent stating that Buyer has
elected to terminate the Contract pursuant to Section 3.1.

                              B.
If at any time after the expiration of the Review Period, Buyer claims
entitlement to all or any portion of the Deposit, Buyer shall give written
notice to Escrow Agent stating that Seller has defaulted in the performance of
its obligations under the Contract beyond the applicable grace period, if any,
or that Buyer is otherwise entitled to the return of the Deposit or applicable
portion thereof and shall direct Escrow Agent to return the Deposit or
applicable portion thereof to Buyer (the “Buyer’s Notice”). Escrow Agent shall
promptly

-ii-

deliver a copy of Buyer’s Notice to Seller. Seller shall have three (3)
business days after receipt of the copy of Buyer’s Notice to deliver written
notice to Escrow Agent and Buyer objecting to the release of the Deposit or
applicable portion thereof to Buyer (“Seller’s Objection Notice”). If Escrow
Agent does not receive a timely Seller’s Objection Notice, Escrow Agent shall
release the Deposit or applicable portion thereof to Buyer. If Escrow Agent
does receive a timely Seller’s Objection Notice, Escrow Agent shall release the
Deposit or applicable portion thereof only upon receipt of, and in accordance
with, written instructions signed by Seller and Buyer, or the final order of a
court of competent jurisdiction.

                              C.
If, at any time after the expiration of the Review Period, Seller claims
entitlement to the Deposit or applicable portion thereof, Seller shall give
written notice to Escrow Agent stating that Buyer has defaulted in the
performance of its obligations under the Contract, and shall direct Escrow
Agent to release the Deposit or applicable portion thereof to Seller (the “Seller’s
Notice”). Escrow Agent shall promptly deliver a copy of Seller’s
Notice to Buyer. Buyer shall have three (3) business days after receipt of the
copy of Seller’s Notice to deliver written notice to Escrow Agent and Seller
objecting to the release of the Deposit or applicable portion thereof to Seller
(“Buyer’s
Objection Notice”). If Escrow Agent does not receive a timely
Buyer’s Objection Notice, Escrow Agent shall release the Deposit or applicable
portion thereof to Seller. If Escrow Agent does receive a timely Seller’s
Objection Notice, Escrow Agent shall release the Deposit or applicable portion
thereof only upon receipt of, and in accordance with, written instructions
signed by Buyer and Seller, or the final order of a court of competent
jurisdiction.

                    4.
In the performance of its duties hereunder, Escrow Agent shall be entitled to
rely upon any document, instrument or signature purporting to be genuine and
purporting to be signed by and of the Parties or their successors unless Escrow
Agent has actual knowledge to the contrary. Escrow Agent may assume that any
person purporting to give any notice or instructions in accordance with the
provisions hereof has been duly authorized to do so.

                    5.
A. Escrow Agent shall not be liable for any error of judgment, or any action
taken or omitted to be taken hereunder, except in the case of Escrow Agent’s
willful, bad faith misconduct or negligence, nor shall Escrow Agent be liable
for the conduct or misconduct of any employee, agent or attorney thereof.
Escrow Agent shall be entitled to consult with counsel of its choosing and
shall not be liable for any action suffered or omitted in accordance with the
advice of such counsel.

                              B.
In addition to the indemnities provided below, Escrow Agent shall not be liable
for, and each of the Parties jointly and severally hereby indemnify and agree
to save harmless and reimburse Escrow Agent from and against all loss, cost,
liability, damage and expense, including outside counsel fees in connection
with its acceptance of, or the performance of its duties and obligations under,
this Agreement, including the costs and expenses of defending against any claim
arising hereunder unless the same are caused by the willful, bad faith
misconduct or negligence of Escrow Agent.

                              C.
Escrow Agent shall not be bound or in any way affected by any notice of any
modification or cancellation of this Agreement, or of any fact or circumstance
affecting or alleged to affect rights or liabilities hereunder other than as is
herein set forth, or

-iii-

affecting or alleged to affect the rights and liabilities of any other
person, unless notice of the same is delivered to Escrow Agent in writing,
signed by the proper parties to Escrow Agent’s satisfaction and, in the case of
modification, unless such modification shall be approved by Escrow Agent in
writing.

                    6.
A. Escrow Agent and any successor escrow agent, as the case may be, may resign
his or its duties and be discharged from all obligations hereunder at any time
upon giving five (5) days’ prior written notice to each of the Parties hereto.
The Parties hereto will thereupon jointly designate a successor escrow agent
hereunder within said five (5) day period to whom the Deposit shall be
delivered. In default of such a joint designation of a successor escrow agent,
Escrow Agent shall retain the Deposit as custodian thereof until otherwise
directed by the Parties hereto, jointly, or until the Deposit is released in
accordance with clause (B) below, in each case, without liability or
responsibility.

                              B.
Anything in this Agreement to the contrary notwithstanding, (i) Escrow
Agent, on notice to the Parties hereto, may take such other steps as the Escrow
Agent may elect in order to terminate its duties as Escrow Agent hereunder,
including, but not limited to, the deposit of the Deposit with a court of
competent jurisdiction in the Commonwealth of Virginia and the commencement of
an action of interpleaders, and (ii) in the event of litigation between any of
the Parties with respect to the Deposit, Escrow Agent may deposit the Deposit
with the court in which said litigation is pending and, in any such event,
Escrow Agent shall be relieved and discharged from any liability or
responsibility to the Parties hereto. Escrow Agent shall not be under any
obligation to take any legal action in connection with this Agreement or its
enforcement or to appear in, prosecute or defend any action or legal proceeding
which, in the opinion of Escrow Agent, would or might involve Escrow Agent in
any cost, expense, loss, damage or liability, unless and as often as requested,
Escrow Agent shall be furnished with security and indemnity satisfactory to
Escrow Agent against all such costs, expenses (including attorney’s fees),
losses, damages and liabilities.

                    7.
All notices required herein shall be deemed to have been validly given, as
applicable: (i) if given by telecopy, when the telecopy is transmitted to the
party’s telecopy number specified below and confirmation of complete receipt is
received by the transmitting party during normal business hours or on the next
business day if not confirmed during normal business hours, (ii) if hand
delivered to a party against receipted copy, when the copy of the notice is
receipted or rejected, (iii) if given by certified mail, return receipt
requested, postage prepaid, two (2) business days after it is posted with the
U.S. Postal Service at the address of the party specified below or (iv) on the
next delivery day after such notices are sent by recognized and reputable
commercial overnight delivery service marked for next day delivery, return
receipt requested or similarly acknowledged:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 If addressed
 to Seller or Indemnitor, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Attention: 

 
	
  

 	
  

 	
 Fax No.:
 (___) ___-____

 

-iv-

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 If addressed
 to Buyer, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Apple Ten
 Hospitality Ownership, Inc.

 814 E. Main Street

 Richmond, Virginia 23219

 Attn: Sam Reynolds

 Fax No.: (804) 344-8129

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 with a copy
 to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Apple REIT
 Ten, Inc.

 814 E. Main Street

 Richmond, Virginia 23219

 Attn: Legal Dept.

 Fax No.: (804) 727-6349

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 If addressed
 to Escrow Agent, to:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 LandAmerica
 Dallas National Division

 5501 LBJ Freeway, Suite 200

 Dallas, Texas 75240

 Attn: Debby Moore

 Fax No.: (214) 570-0210

 

or such other address or addresses as may be expressly designated by
any party by notice given in accordance with the foregoing provisions and
actually received by the party to whom addressed.

                    8.
This Agreement may be executed in any number of counterparts each of which
shall be deemed an original and all of which, together, shall constitute one
and the same Agreement.

                    9.
The covenants, conditions and agreements contained in this Agreement shall bind
and inure to the benefit of each of the Parties hereto and their respective successors
and assigns.

-v-

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

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SELLER:

 
	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 INDEMNITOR:

 
	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BUYER:

 
	
  

 	
  

 
	
  

 	
 APPLE TEN
 HOSPITALITY OWNERSHIP, INC., a Virginia corporation

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ESCROW AGENT:

 
	
  

 	
  

 
	
  

 	
 CHICAGO
 TITLE COMPANY

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 

-vi-

EXHIBIT
H

Existing
Loan

Name, Address,
Email and Telephone Number Lender: 

Morgan Stanley
Mortgage Capital

1221 Avenue of the Americas

New York, NY 10020

Name, Address,
Email and Telephone Number of Servicer:

Wells Fargo Bank,
N.A.

Commercial Mortgage Servicing

1901 Harrison Street

Oakland, CA 94612

Fax: (510) 446-3652

Date of Note:
1/27/2006

Maturity Date:
8/1/2016

Interest Rate:
5.99%

Original
Principal Amount of Note: $22,500,000

Date and
Recording Info of Security Instrument: 1/27/2006

Outstanding
Principal Balance as of 5/1/11: $20,949,357.27

-vii-

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