Document:

Form of Option Agreement

 Exhibit 10.3 
  
 OPTION 
 PURCHASE CONTRACT 
  
 Between 
  
 BRIAD LODGING GROUP HARTFORD, L.L.C. 
 BRIAD LODGING GROUP ROCKY HILL, L.L.C. 
 BRIAD LODGING GROUP SOMERSET, L.L.C., 
 BRIAD LODGING GROUP WALLINGFORD, L.L.C., and 
 BRIAD LODGING GROUP MT. OLIVE, L.L.C. 
 (COLLECTIVELY, “SELLER”) 
  
 AND

  
 ORANGE HOSPITALITY, INC. 
 (“BUYER”) 
  
 AND 
 joined in by 
  
 BRIAD RESTAURANT GROUP, L.L.C. 
 (“BRG”) 
  
 DATED:                     , 2004 

 TABLE OF CONTENTS 
  

					
	 	  	Page No.

	ARTICLE I DEFINITIONS	  	2
	1.1	  	 "Property"
	  	2
	1.2	  	 "Land"
	  	2
	1.3	  	 "Improvements"
	  	2
	1.4	  	 "Appurtenances"
	  	2
	1.5	  	 "FF&E"
	  	2
	1.6	  	 "Supplies"
	  	3
	1.7	  	 "Leases"
	  	3
	1.8	  	 "Deposits"
	  	3
	1.9	  	 "Records"
	  	4
	       1.10	  	 "Property"
	  	4
	1.11	  	 "Utility Reservations"
	  	5
	ARTICLE II PURCHASE AND SALE; PURCHASE PRICE; PAYMENT; DEPOSIT; INDEPENDENT
CONSIDERATION	  	5
	2.1	  	 Purchase and Sale
	  	5
	2.2	  	 Purchase Price
	  	5
	2.3	  	 Allocation
	  	6
	2.4	  	 Payment
	  	6
	2.5	  	 Deposit
	  	6
	ARTICLE III OPTION REVIEW PERIOD	  	7
	3.1	  	 Option Review Period
	  	7
	3.2	  	 Contract Examination
	  	8
	3.3	  	 Restoration
	  	8
	3.4	  	 Seller Exhibits.
	  	8
	ARTICLE IV SURVEY AND TITLE APPROVAL	  	9
	4.1	  	 Survey
	  	9
	4.2	  	 Title
	  	9
	4.3	  	 Survey or Title Objections
	  	9
	ARTICLE V FRANCHISE	  	10
	ARTICLE VI COMMISSIONS	  	14
	ARTICLE VII REPRESENTATIONS, WARRANTIES AND COVENANTS	  	15
	7.1	  	 Seller's Representations, Warranties and Covenants
	  	15
	7.2	  	 Buyer's representations, warranties and covenants
	  	20
	7.3	  	 Survival
	  	20
	ARTICLE VIII ADDITIONAL COVENANTS	  	20
	8.1	  	 Subsequent Developments
	  	20
	8.2	  	 Operations
	  	20
	8.3	  	 Third Party Consents
	  	21
	8.4	  	 Employees
	  	21
	8.5	  	 Management Agreement
	  	21
	8.6	  	 Shadow Management
	  	21
	8.7	  	 Liquor Licenses
	  	22

  

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	8.8	  	 Access to Financial Information
	  	22
	8.9	  	 Bulk Sales
	  	22
	8.10	  	 Indemnification
	  	22
	8.11	  	 Survival of Covenants
	  	25
	ARTICLE IX CONDITIONS FOR CLOSING	  	25
	9.1	  	 Buyer's Conditions for Closing
	  	25
	9.2	  	 Seller's Conditions for Closing
	  	25
	ARTICLE X CLOSING AND CONVEYANCE	  	26
	10.1	  	 Closing; Construction Completion
	  	26
	10.2	  	 Seller's Deliveries
	  	26
	10.3	  	 Buyer’s Deliveries
	  	28
	ARTICLE XI COSTS	  	28
	11.1	  	 Seller's Costs
	  	28
	11.2	  	 Buyer's Costs
	  	29
	ARTICLE XII ADJUSTMENTS	  	29
	12.1	  	 Adjustments
	  	29
	12.2	  	 Reconciliation and Final Payment
	  	30
	12.3	  	 Employees
	  	31
	ARTICLE XIII CASUALTY AND CONDEMNATION	  	31
	13.1	  	 Risk of Loss; Notice
	  	31
	13.2	  	 Buyer's Termination Right
	  	31
	13.3	  	 Procedure for Closing
	  	31
	ARTICLE XIV DEFAULT REMEDIES	  	32
	14.1	  	 Buyer Default
	  	32
	14.2	  	 Seller Default
	  	32
	14.3	  	 Attorney's Fees
	  	32
	ARTICLE XV NOTICES	  	33
	ARTICLE XVI MISCELLANEOUS	  	34
	16.1	  	 Performance
	  	34
	16.2	  	 Binding Effect; Assignment
	  	34
	16.3	  	 Entire Agreement
	  	34
	16.4	  	 Governing Law
	  	34
	16.5	  	 Captions
	  	34
	16.6	  	 Confidentiality
	  	34
	16.7	  	 Closing Documents
	  	34
	16.8	  	 Counterparts
	  	34
	16.9	  	 Severability
	  	35
	    16.10	  	 Interpretation
	  	35
	16.11	  	 Business Day
	  	35
	16.12	  	 Further Acts
	  	35
	16.13	  	 Like-Kind Exchange
	  	35
	ARTICLE XVII JOINDER BY BRG	  	37

  

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	SCHEDULES:	  	 
		
	Schedule 1	  	 Description of Hotels

	Schedule 2	  	 Description of License Agreements and Management Agreements

		
	EXHIBITS:	  	 
		
	Exhibit A	  	 Legal Description

	Exhibit B	  	 [Intentionally Deleted]

	Exhibit C	  	 Escrow Agreement

	Exhibit D	  	 [Intentionally Deleted]

	Exhibit E	  	 Consents and Approvals

	Exhibit F	  	 Environmental Reports

	Exhibit G	  	 Form of Deed

	Exhibit H	  	 Form of Bill of Sale

  

 iii 

 OPTION PURCHASE CONTRACT 
  
 This OPTION PURCHASE CONTRACT (this “Contract”) is made and entered into as of the
             day of             , 2004, by and between BRIAD LODGING GROUP HARTFORD, L.L.C., a New Jersey limited
liability company (“Hartford L.L.C.)”, BRIAD LODGING GROUP ROCKY HILL, L.L.C., a New Jersey limited liability company (“Rocky Hill L.L.C.”), BRIAD LODGING GROUP WALLINGFORD, L.L.C., a New Jersey limited liability company
(“Wallingford LLC”), BRIAD LODGING GROUP SOMERSET, L.L.C., a New Jersey limited liability company (“Somerset LLC”), BRIAD LODGING GROUP MT. OLIVE, L.L.C., a New Jersey limited liability company (“Mt. Olive LLC and,
collectively with Hartford LLC, Rocky Hill, LLC, Wallingford LLC and Somerset LLC, “Seller”), with its principal office at 30A Vreeland Road, Florham Park, New Jersey 07932, and ORANGE HOSPITALITY, INC., a Maryland corporation, having an
office C/O Coqui Capital Partners, L.P. at 1775 Broadway, Suite 604, New York, NY 10019, or its assigns (“Buyer”) and joined in by BRIAD RESTAURANT GROUP, L.L.C., a New Jersey limited liability company (“BRG”) with its principal
office at 30A Vreeland Rd., Florham Park, New Jersey 07932. 
  
 RECITALS 
  
 A. Wallingford LLC is the fee simple
owner of a property located in Wallingford, Connecticut more specifically identified on Schedule A-1 attached hereto and incorporated herein by reference, to be developed as a Homewood Suites by Hilton (the “Wallingford
Hotel”); Somerset LLC is the fee simple owner of a property located in Franklin, New Jersey more specifically identified on Schedule A-2, to be developed as a Homewood Suites by Hilton (the “Somerset Hotel”); and Mt.
Olive LLC is the fee simple owner of a hotel property located in Mt. Olive, New Jersey more specifically identified on Schedule A-3, to be developed as a Residence Inn by Marriott (the “Mt. Olive Hotel”); Hartford L.L.C. is
the fee simple owner of a hotel property located in Hartford, Connecticut more specifically identified on Schedule A-4 to be developed as a Marriott Courtyard (“the Hartford Hotel”); and Rocky Hill L.L.C. is the fee simple owner of
a property located in Rocky Hill, New Jersey more specifically identified on Schedule A-5, to be developed as a Marriott Residence Inn (the “Rocky Hill Hotel”). 
  
 B. Buyer is desirous of receiving an option to purchase such hotel properties
from Seller, and Seller is desirous of offering the option to purchase such hotel properties 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 
 DEFINITIONS 
 1.1 “Property” shall mean, collectively, all of the following with
respect to the Hartford Hotel, the Rocky Hill Hotel, the Wallingford Hotel, the Somerset Hotel and the Mt. Olive Hotel, (collectively the “Hotels”), all as hereinafter defined in this Article I: the Land, Improvements, Appurtenances,
FF&E, Supplies, Leases, Deposits, Records, Service Contracts, Warranties, Licenses, FF&E Leases, Construction Contracts, Plans and Specs, Tradenames and Utility Reservations, as well as all other real, personal or intangible property of
Seller related to any of the foregoing. “Real Property” shall mean, collectively, all Land, Improvements and Appurtenances with respect to any or all of the Hotels. “Personal Property” shall mean all Property with
respect to any or all of the Hotels, other than the Real Property. “Hartford Property” shall mean all of the Property constituting, associated with or related to the Hartford Hotel; “Rocky Hill Property”
shall mean all of the Property constituting, associated with or related to the Rocky Hill Hotel; “Wallingford Property” shall mean all of the Property constituting, associated with or related to the Wallingford Hotel;
“Somerset Property” shall mean all of the Property constituting, associated with or related to the Somerset Hotel; and “Mt. Olive Property” shall mean all of the Property constituting, associated with or related to
the Mt. Olive Hotel. “Hotel Property” shall mean, individually, the Hartford Property, the Rocky Hill Property, the Wallingford Property, the Somerset Property or the Mt. Olive Property. 
  
 1.2 “Land” shall mean the land described in Exhibit
A, which is attached hereto and incorporated herein by reference. 
  
 1.3 “Improvements” shall mean all buildings, structures, fixtures (to the extent constituting real property under applicable law), parking areas and other improvements on the Land. 
  
 1.4 “Appurtenances” shall mean all rights, titles, and
interests of Seller appurtenant to the Land and Improvements, including, but not limited to, (i) all easements, rights of way, rights of ingress and egress, tenements, hereditaments, privileges, development rights 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. 
  
 1.5 “FF&E” shall mean all tangible personal property and fixtures of any kind (other than personal property owned by guests of the
Hotels or leased by Seller pursuant to a 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, as defined below), including, but not limited to, all furniture, fixtures, 
  

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 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, sport
courts 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. 
  
 1.6 “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 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, 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, sport courts, health clubs, spas, fitness centers, restaurants,
business centers, meeting rooms and other common areas and recreational areas. 
  
 1.7 “Leases” (collectively and individually, a “Lease”) 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 by third parties, 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. 
  
 1.8 “Deposits” shall mean all prepaid rents, deposits and
reserves, including, but not limited to, 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 and FF&E
and other reserve accounts (if any); 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 an Hotel Property, Buyer shall be entitled to a credit
against the cash portion of the Purchase Price allocable to such Hotel 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 Hotel Property. 
  

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 1.9 “Records” shall mean all books, records, promotional material, tenant data, guest
history information (other than any such information owned exclusively by Licensor [as hereinafter defined]), 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 Hotels), market studies prepared in connection with Seller’s annual plans or otherwise, keys, and other materials, information, data, legal or other documents or records of any kind owned by Seller and/or in
Seller’s possession or control, or to which Seller has access or may obtain, that are used in or relating to the development, construction, ownership and/or use and operation of the Hotels, including the Land, the Improvements or the FF&E,
but excluding Seller’s tax returns and internally generated records related to the membership and structure of each entity constituting Seller. 
  
 1.10 “Property” shall include 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: 
  
 (a) Contracts or agreements, such as maintenance, supply, service or utility contracts (collectively, the “Service
Contracts”); 
  
 (b) Warranties,
guaranties, indemnities and claims for the benefit of Seller, including, without limitation, all warranties and guaranties of the development, construction, completion, installation, equipping and furnishing of the Hotels, and all indemnities, bonds
and claims of Seller related thereto (collectively, the “Warranties”); 
  
 (c) 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 Hotels, including, without limitation, all licenses, approvals and rights necessary to the Hartford Hotel as a
Marriott Courtyard, the Mt. Olive Hotel and Rocky Hill Hotel as Residence Inns® by Marriott and the Wallingford Hotel and Somerset Hotel as Homewood Suites by Hilton (collectively, the “Licenses”); 
  
 (d) Telephone exchanges and numbers, trade names, trade styles, trade marks, and other identifying material,
and all variations thereof, together with all related goodwill (collectively, the “Tradenames”) (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 license agreements 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 pursuant to the immediately preceding subsection (c)); 
  
 (e) Construction and other contracts, plans, drawings, specifications, surveys, soil reports, engineering reports, inspection reports, and
other technical descriptions and reports (collectively, the “Construction Contracts, Plans and Specs”); and 
  

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 (f) Leases of any FF&E and other contracts permitting the use by Seller of any
FF&E, but only to the extent assumed by Buyer (collectively, the “FF&E Leases”). 
  
 1.11 “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. Utility deposits, if any, are to be retained by Seller, or Buyer shall give Seller a credit therefore at Closing. 
  
 All of the Property shall be conveyed, assigned, and transferred to Buyer at Closing, free and clear of all mortgages, liens, encumbrances, licenses, franchises,
concession agreements, security interests, prior assignments or conveyances, c conditions, restrictions, rights-of-way, easements, encroachments, claims and other matters affecting title or possession, except for the Permitted Exceptions (as
hereinafter defined). 
  
 ARTICLE II 
 OPTION PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;DEPOSIT; 
 INDEPENDENT CONSIDERATION 
  
 2.1 Option. Seller hereby grants to Buyer or its assigns an option to purchase or allow its assigns to purchase from Seller, one or more of the Hotel Properties, in consideration of the applicable Purchase Price(s) and upon the terms and
conditions hereof (the “Option”). 
  
 2.2
Exercise of Option. The Option shall expire with respect to any Hotel Property unless Buyer shall exercise the Option with respect to such Hotel Property (by sending Seller a written notice of Buyer’s election to purchase such Hotel
Property) on or before the Outside Exercise Date for such Hotel Property. With respect to any Hotel Property, the “Outside Exercise Date” shall be the later of (a) March 31, 2005 and (b) the date that shall be 10 days after Seller
shall have delivered to Buyer a written notice (a “Completion Notice”) that Seller expects to achieve Final Completion of the applicable Hotel within 30 days after the date of such Completion Notice. Upon the expiration of the
Option with respect to any Hotel Property as provided in the first sentence of this Section 2.2, the Option shall also simultaneously expire with respect to any other Hotel Property (ies) that shall not theretofore have been purchased by Buyer,
expect for any Hotel Property with respect to which Seller shall theretofore have delivered a Completion Notice and Seller shall theretofore have timely exercised the Option. 
  
 2.3 Purchase Price. For each Hotel Property that Buyer elects to purchase as provided in this Option Contract, Buyer
agrees to pay, and Seller agrees to accept, as consideration for the 
  

 5 

 conveyance of such Hotel Property, subject to the adjustments provided for in this Contract, the purchase price for such
Hotel Property that is listed on Schedule 1 (the “Purchase Price”) for an aggregate Purchase Price for all five (5) Hotels of Sixty-Six Million ($66,000,000) Dollars. 
  
 2.4 Allocation. Buyer and Seller shall attempt to agree in consultation with the Buyer’s accountants, within
thirty (30) days prior to the Closing of each Hotel Property, on an allocation of the Purchase Price between the Real Property and Personal Property related to such Hotel 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 desire, subject to and in accordance with applicable laws. 
  
 2.5 Payment. The Purchase Price of each Hotel Property, less the pro-rata portion of the Deposit and interest earned thereon that shall be applied
against the Purchase Price as provided Section 2.6 below, shall be paid to Seller by Buyer, in cash, by bank check or by wire transfer, at the Closing of such Hotel Property. 
  
 2.6 Deposit 
  
 (a) On the date on which Buyer successfully receives at least Twenty Million Dollars ($20,000,000) of proceeds from the sale to the public
of shares in Buyer (the “REIT Closing Date”), Buyer shall deposit $250,000 per Hotel Property (the “Deposit”) with a mutually satisfactory escrow agent (the “Escrow Agent”). The Option shall
automatically expire, and this Contract shall automatically terminate (whereupon neither Seller nor Buyer shall have any further obligation to the other hereunder), if (i) the REIT Effective Date shall not occur by March 31, 2005, or (ii) Buyer
shall fail to deposit the Deposit with the Escrow Agent on the REIT Closing Date and such failure shall continue for two business days after Buyer receives notice of such failure from Seller. 
  
 (b) The Deposit shall be held by Escrow Agent subject to the
terms and conditions of an escrow agreement, in the form attached hereto as Exhibit C (the “Escrow Agreement”), and shall be paid or applied as provided in this Option Contract. The 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. Buyer’s Federal Tax Identification Number is 20-1099028. The Federal Tax Identification Number for each entity constituting Seller is set forth in Schedule 1. 
  
 (c) At the Closing for any Hotel Property, the portion of the Deposit allocable to such Hotel Property,
together with the interest earned thereon, shall be paid to Seller and credited against the Purchase Price for such Hotel Property. If this Option Contract shall terminate with respect to any Hotel Property prior to the Closing for such Hotel
Property, the portion of the Deposit allocable to such Hotel Property, together with the interest earned on such portion of the Deposit, shall be paid to the Seller, except as otherwise provided in paragraph (d) of this Section 2.6 or in Section
13.2 or Section 14.2 hereof. 
  

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 (d) Notwithstanding any other provision of this Agreement, Buyer shall be entitled to
terminate this Contract with respect to any Hotel Property as to which Seller shall not have sent a Completion Notice by July 31, 2005, and in such event Buyer shall be entitled to receive the portion of the Deposit that shall be allocable to such
Hotel Property, together with the interest earned on such portion of the Deposit. 
  
 ARTICLE III 
 OPTION REVIEW PERIOD 
  
 3.1 Option Review Period. Buyer shall have a period through the REIT
Closing Date to evaluate the legal, title, survey, physical condition, environmental, economic, permit status, franchise status, financial and other documents and information related to each of the Hotel Properties. Within ten (10) business days
following the date of this Contract, Seller, at Seller’s sole cost and expense, will deliver to Buyer (or make available at Seller’s business office) 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 owned by Seller, in the possession of Seller or obtainable by Seller on a best efforts basis: 
  
 (a) Budgets for each of the Hotels, (the “Financial
Statements”); 
  
 (b) All real estate
and personal property tax statements with respect to each of the Hotels and notices of appraised value for the Real Property for the current year (if available) and each of the two (2) calendar years prior to the current year; 
  
 (c) Engineering, mechanical, architectural and construction
plans, drawings, specifications and contracts, payment and performance bonds, title policies, reports and commitments, zoning information and marketing and economic data relating to the Hotels and the construction, development, installation and
equipping thereof, as well as copies of all environmental reports and information, topographical, boundary or “as built” surveys, engineering reports, subsurface studies and other Construction Contracts, Plans and Specs relating to or
affecting the Hotels. If any Hotel is purchased by Buyer, all such documents and information relating to such Hotel shall thereupon be and become the property of Buyer without payment of any additional consideration therefore; 
  
 (d) All FF&E Leases, Service Contracts, Leases and, if
applicable, a schedule of such Leases of space in each of the Hotels, and all agreements for real estate commissions, brokerage fees, finder’s fees or other compensation payable by Seller in connection therewith; and 
  
 (e) All notices received from governmental authorities in
connection with each of the Hotels for the current year and all prior years. 
  

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 Seller shall, upon request of Buyer, make available to Buyer and Buyer’s representatives and agents,
for inspection and copying during normal business hours, Records located at Seller’s corporate offices, and Seller agrees to provide Buyer copies of all other reasonably requested information that is relevant to the management, ownership,
operation, use, occupancy, construction or leasing of the Hotels. At any time during the Option 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) this Option Contract shall be terminated automatically, (ii) all materials supplied by the Seller to the Buyer shall be returned promptly to the Seller, and (iii) 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; provided, however, that if Purchaser determines that it does not wish to proceed with the acquisition of any
particular Hotel Property because of the material breach of Seller’s representations and warranties hereunder with respect to such Hotel Property (as to which Buyer shall have given Seller timely notice and which Seller shall be unwilling or
unable to cure by July 31, 2005), then, notwithstanding Section 2.2 hereof, Purchaser may by written notice to Seller terminate the Option and this Option Contract with respect to such Hotel Property without thereby terminating the Option or this
Option Contract with respect to the other Hotel Properties. 
  
 3.2 Continuing Examination. At any time prior to the Closing of each Hotel Property, Buyer and/or its representatives and agents shall have the right to enter upon each Hotel Property at all reasonable times upon reasonable notice to
Seller for the purposes of conducting such surveys, appraisals, inspections of construction and other inspections and other studies as Buyer deems reasonable and necessary or appropriate to evaluate the Property, subject to providing advance or
concurrent notice to Seller (the “Continuing Examination”). 
  
 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 Option Review Period or Continuing
Examination and, if closing does not occur, shall repair or restore any portion of the Property damaged by the conduct of Buyer, its agents, contractors or employees, to substantially the condition such portion(s) of the Property were in immediately
prior to such examinations or studies. Buyer agrees to exercise reasonable care when visiting the Property, in a manner which shall not unreasonably interfere with Seller’s operation of the Property, nor with the rights of any guests at the
Property. 
  
 3.4 Seller Exhibits. Seller agrees to provide
complete copies of Exhibits E and F for review by Buyer not later than thirty (30) days after the date of this Option Contract. Buyer shall have until thirty (30) days after delivery of the Exhibits to review and approve the information on all such
Exhibits. In the event Buyer does not reasonably approve of any item in Exhibit F based on the information contained therein, Buyer shall be entitled to terminate this Option Contract as to the affected Hotel only without terminating the remainder
of this Option Contract, or terminate this Option Contract in its entirety, or waive its right to object by notice to Seller. 
  

 8 

 ARTICLE IV 
 SURVEY AND TITLE APPROVAL 
  
 4.1 Survey. Within twenty (20) days after execution of this Option Contract by Buyer and Seller, Seller shall deliver to Buyer true, correct and complete copies of the most recent surveys of the Real Property (collectively, the
“Seller’s Existing Surveys”). Upon final completion of each Hotel, Seller will deliver to Buyer an updated as-built survey of the Real Property relating thereto (“Seller’s Updated Survey”). In the event
that additional surveys or new surveys or certifications are desired by Buyer, then Buyer shall be responsible for all costs related thereto. 
  
 4.2 Title. Within twenty (20) days after execution of this Option Contract by Buyer and Seller, Seller shall deliver to Buyer true, correct and
complete copies of Seller’s existing title insurance policies, including copies of all documents referred to therein, for the Real Property (“Seller’s Title Documents”). Upon exercising the Option with respect to any Hotel
Property, Buyer will order a title commitment as to the Real Property and Personal Property relating thereto (“Buyer’s Title Commitment”). 
  

4.3 Survey or Title Objections. If upon Buyer’s review of Seller’s Title Documents and/or Seller’s Existing Surveys, Buyer
discovers any title or survey matter that is not a Permitted Exception (a “defect”), Buyer may provide Seller with written notice of its objection to such defect at least by the end of the Option Review Period. If Buyer fails to so object
in writing to any matter set forth in Seller’s Existing Surveys or Seller’s Title Documents, it shall be conclusively assumed that Buyer has approved such matter. If Buyer identifies any defect by written notice to Seller on or before the
expiration of the Option Review Period, Seller shall elect either to cure or not to cure such defect, by written notice sent to Buyer within five (5) days after Seller’s receipt of notice from Buyer, and if Seller commits in writing to attempt
to cure any such defect, Seller shall be given until the Closing Date to cure such matter. 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 affecting any Hotel
Property arises after the date of the applicable Buyer’s Title Commitment, but prior to the applicable Closing, then Buyer may elect, in Buyer’s sole and absolute discretion: (i) to waive Buyer’s objection to such defect and proceed
to Closing on the affected Hotel Property, or (ii) to terminate this Option Contract in its entirety or, at Buyer’s election, as to the affected Hotel Property. For purposes of this Contract, “Permitted Exceptions” shall mean
encumbrances of record that do not render title unmarketable, will not materially impede the use of the applicable Hotel Property for its intended purpose, do not impose material monetary obligations on the owner of the applicable Hotel Property
(other than obligations that Buyer would otherwise expect to incur in the ordinary course of operating the applicable Hotel) and do not create any material risk of forfeiture; provided, however, that in no event shall Permitted Exceptions include
liens, or documents evidencing liens, securing any indebtedness or any mechanics’ or materialmen’s liens or any claims or potential claims therefor covering any Hotel Property or any portion thereof (“Seller Liens”), and
all Seller Liens shall be paid in full by Seller and released at Closing on the affected Hotel Property. 
  

 9 

 ARTICLE V 
 FRANCHISE 
  
 5.1
Franchise Agreements. (A) Seller has entered into a license agreement with Marriott International (“Marriott”), more particularly described on Schedule 2 for the Mt. Olive Property (the “Mt. Olive
License Agreement”), Seller acknowledges that it is a condition to Buyer’s obligations under this Option Contract that Buyer shall have entered into a satisfactory license agreement with Marriott. Buyer agrees to apply for and
use reasonable efforts, and Seller shall cooperate with Buyer, to obtain Marriott’s written consent to the assignment to Buyer of the Mt. Olive License Agreement, or the issuance of a new franchise agreement between Marriott and Buyer. Buyer
shall be responsible for all costs related to such transfer and amendment or new license agreement, including but not limited to, the payment of license, application, transfer and similar fees thereunder, Seller shall be responsible for all costs to
complete the improvements set forth in any product improvement plan for the Hotel, or otherwise as may be required by Marriott. Notwithstanding the foregoing, any and all fees payable under any Mt. Olive License Agreement and attributable to any
period prior to Closing shall be the sole responsibility of Seller, and Seller shall be responsible for any termination fee attributable to the termination, if applicable, of Seller’s license agreement. Seller agrees to immediately provide all
information required by Marriott in connection with such transfer and amendment or new license agreement, and Seller and Buyer shall diligently pursue obtaining such transfer and amendment or new license agreement. Buyer shall diligently and in good
faith negotiate with Marriott for the transfer and amendment of the Mt. Olive License Agreement or for new license agreements, as applicable, on terms reasonably similar to the terms of Buyer’s existing license agreements with Marriott, if any,
applicable to other hotels owned by Buyer and under license from Marriott. 
  

 10 

 (B) Seller has entered into a license agreement with Marriott, more particularly described on Schedule
2 for the Rocky Hill Property (the “Rocky Hill License Agreement”), Seller acknowledges that it is a condition to Buyer’s obligations under this Option Contract that Buyer shall have entered into a satisfactory
license agreement with Marriott. Buyer agrees to apply for and use reasonable efforts, and Seller shall cooperate with Buyer, to obtain Marriott’s written consent to the assignment to Buyer of the Rocky Hill License Agreement, with such
amendments as may be required by Buyer, or the issuance of a new franchise agreement between Marriott and Buyer. Buyer shall be responsible for all costs related to such transfer and amendment or new license agreement, including but not limited to,
the payment of license, application, transfer and similar fees thereunder, Seller shall be responsible for all costs to complete the improvements set forth in any product improvement plan for the Hotel, or otherwise as may be required by Marriott.
Notwithstanding the foregoing, any and all fees payable under any Rocky Hill License Agreement and attributable to any period prior to Closing shall be the sole responsibility of Seller, and Seller shall be responsible for any termination fee
attributable to the termination, if applicable, of Seller’s license agreement. Seller agrees to immediately provide all information required by Marriott in connection with such transfer and amendment or new license agreement, and Seller and
Buyer shall diligently pursue obtaining such transfer and amendment or new license agreement. Buyer shall diligently and in good faith negotiate with Marriott for the transfer and amendment of the Rocky Hill License Agreement or for new license
agreements, as applicable, on terms reasonably similar to the terms of Buyer’s existing license agreements with Marriott, if any, applicable to other hotels owned by Buyer and under license from Marriott. 
  

 11 

 (C) Seller has entered into a license agreement with Hilton Hotels (“Hilton”), more
particularly described on Schedule 2 for the Wallingford Property (the “Walllingford License Agreement”), Seller acknowledges that it is a condition to Buyer’s obligations under this Option Contract that Buyer shall have
entered into a satisfactory license agreement with Hilton. Buyer agrees to apply for and use reasonable efforts, and Seller shall cooperate with Buyer, to obtain Hilton’s written consent to the assignment to Buyer of the License Agreement, with
such amendments as may be required by Buyer, or the issuance of a new franchise agreement between Hilton and Buyer. Buyer shall be responsible for all costs related to such transfer and amendment or new license agreement, including but not limited
to, the payment of license, application, transfer and similar fees thereunder, Seller shall be responsible for all costs to complete the improvements set forth in any product improvement plan for the Hotels, or otherwise as may be required by
Hilton. Notwithstanding the foregoing, any and all fees payable under any Wallingford License Agreement and attributable to any period prior to Closing shall be the sole responsibility of Seller, and Seller shall be responsible for any termination
fee attributable to the termination, if applicable, of Seller’s license agreement. Seller agrees to immediately provide all information required by Hilton in connection with such transfer and amendment or new license agreement, and Seller and
Buyer shall diligently pursue obtaining such transfer and amendment or new license agreement. Buyer shall diligently and in good faith negotiate with Hilton for the transfer and amendment of the License Agreement or for new license agreements, as
applicable, on terms reasonably similar to the terms of Buyer’s existing license agreements with Hilton, if any, applicable to other hotels owned by Buyer and under license from Hilton. 
  

 12 

 (D) Seller has entered into a license agreement with Marriott, more particularly described on Schedule
2 for the Hartford Property (the “Hartford License Agreement”), Seller acknowledges that it is a condition to Buyer’s obligations under this Option Contract that Buyer shall have entered into a satisfactory license
agreement with Marriott. Buyer agrees to apply for and use reasonable efforts, and Seller shall cooperate with Buyer, to obtain Marriott’s written consent to the assignment to Buyer of the Hartford License Agreement, with such amendments as may
be required by Buyer, or the issuance of a new franchise agreement between Marriott and Buyer. Buyer shall be responsible for all costs related to such transfer and amendment or new license agreement, including but not limited to, the payment of
license, application, transfer and similar fees thereunder, Seller shall be responsible for all costs to complete the improvements set forth in any product improvement plan for the Hotels or otherwise as may be required by Marriott. Notwithstanding
the foregoing, any and all fees payable under any Hartford License Agreement and attributable to any period prior to Closing shall be the sole responsibility of Seller, and Seller shall be responsible for any termination fee attributable to the
termination, if applicable, of Seller’s license agreement. Seller agrees to immediately provide all information required by Marriott in connection with such transfer and amendment or new license agreement, and Seller and Buyer shall diligently
pursue obtaining such transfer and amendment or new license agreement. Buyer shall diligently and in good faith negotiate with Marriott for the transfer and amendment of the Hartford License Agreement or for new license agreements, as applicable, on
terms reasonably similar to the terms of Buyer’s existing license agreements with Marriott, if any, applicable to other hotels owned by Buyer and under license from Marriott. 
  

 13 

 (E) Seller has entered into an agreement with Hilton, more particularly described on Schedule 2
for the Somerset Property (the “Somerset License Agreement”), Seller acknowledges that it is a condition to Buyer’s obligations under this Option Contract that Buyer shall have entered into a satisfactory license agreement with
Hilton. Buyer agrees to apply for and use reasonable efforts, and Seller shall cooperate with Buyer, to obtain Hilton’s written consent to the assignment to Buyer of the Somerset License Agreement, with such amendments as may be required by
Buyer, or the issuance of a new franchise agreement between Hilton and Buyer. Buyer shall be responsible for all costs related to such transfer and amendment or new license agreement, including but not limited to, the payment of license,
application, transfer and similar fees thereunder, Seller shall be responsible for all costs to complete the improvements set forth in any product improvement plan for the Hotel, or otherwise as may be required by Hilton. Notwithstanding the
foregoing, any and all fees payable under any Somerset License Agreement and attributable to any period prior to Closing shall be the sole responsibility of Seller, and Seller shall be responsible for any termination fee attributable to the
termination, if applicable, of Seller’s license agreement. Seller agrees to immediately provide all information required by Hilton in connection with such transfer and amendment or new license agreement, and Seller and Buyer shall diligently
pursue obtaining such transfer and amendment or new license agreement. Buyer shall diligently and in good faith negotiate with Hilton for the transfer and amendment of the Somerset License Agreement or for new license agreements, as applicable, on
terms reasonably similar to the terms of Buyer’s existing license agreements with Hilton, if any, applicable to other hotels owned by Buyer and under license from Hilton. 
  
 (F) Collectively, the Mt. Olive License Agreement, the Rocky Hill License Agreement, the Wallingford License Agreement, the
Hartford License Agreement and Somerset License Agreements shall be referred to as the “License Agreements”. 
  
 ARTICLE VI 
 COMMISSIONS

  
 Seller and Buyer each represents and warrants to the other
that 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. 
  

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 ARTICLE VII 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 7.1 Seller’s Representations, Warranties and Covenants. Each entity constituting Seller hereby jointly and severally represents, warrants and covenants to Buyer as follows: 
  
 (a) Authority; No Conflicts. Each of Hartford LLC,
Rocky Hill LLC, and Wallingford LLC is a New Jersey limited liability company duly formed, validly existing and in good standing in the State of New Jersey and authorized to do business and in good standing in the State of Connecticut. Each of
Somerset LLC and Mt. Olive LLC is a limited liability company duly formed, validly existing and in good standing in the State of New Jersey. Each entity constituting Seller has obtained all necessary consents to enter into and perform this Option
Contract and is fully authorized to enter into and perform this Option Contract and to complete the transactions contemplated by this Option Contract. No consent or approval of any person, entity or governmental authority is required for the
execution, delivery or performance by each entity constituting Seller of this Option Contract, and this Option Contract is hereby binding and enforceable against each entity constituting Seller. Neither the execution nor the performance of, or
compliance with, this Option Contract by any entity constituting Seller 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, mortgage indenture, lien agreement, promissory note, contract, or permit, or any judgment, decree, order, restrictive covenant, statute, rule
or regulation, applicable to Seller or to the Property. 
  
 (b) FIRPTA. No entity constituting Seller is 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. No entity constituting
Seller, nor 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. As of the date of this
Contract, there are no FF&E Leases, Service Contracts or Leases relating to the operation and business of each Hotel. As of the Closing of any Hotel, there will be no such agreements in effect and relating to such Hotel, except as permitted by
Section 8.2(f) hereof. Seller has delivered to Buyer true and complete copies of the License Agreements, as described in Schedule 2 attached hereto, the License Agreements are unmodified and in full force and effect, and Seller has not
defaulted with respect to any of its obligations thereunder. Except for any of the License Agreements that are non-transferable, the assets constituting each “Hotel 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 Hotels. 
  

 15 

 (e) Pending Claims. Seller has not received any written notice of: (i) any claims,
demands, litigation, proceedings or governmental investigations pending or threatened against any entity constituting Seller or related to the business or assets of any of the Hotels, (ii) any special assessments or extraordinary taxes, and (iii)
any pending or threatened condemnation or eminent domain proceeding 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 anti-discrimination
laws or executive orders affecting any Hotel, or other pending, actual or, to the best of Seller’s knowledge, threatened litigation claims, charges, complaints, petitions or unsatisfied orders by or before any administrative agency or court
which affect any Hotel or might become a lien on any Hotel (collectively, the “Pending Claims”). 
  
 (f) Environmental. With respect to environmental matters, to the best of Seller’s knowledge, (i) there has been no Release or
threat of Release of Hazardous Materials in, on, under, to or from the Real Property, except as disclosed in the reports set forth on Exhibit F to be attached hereto in accordance with Section 3.4 hereof, (ii) no portion of the Real 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 and chlorine for the swimming pool, all of which are stored on
the Real Property in strict accordance with applicable Environmental Requirements (as hereinafter defined) 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, and (iv) no environmental investigation, administrative order, notification, consent order, litigation, claim, judgment or settlement with respect to the Real
Property or any portion thereof is pending or threatened. 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, or 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 
  

 16 

 Materials (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, as of the date hereof Seller has good and marketable fee
simple absolute title to the Real Property, subject only to the Permitted Exceptions. The Somerset Property will be subject to an unrecorded parking easement for the benefit of the owner of the adjacent property which will be recorded upon
completion of the Somerset Hotel. Such easement shall be deemed to be a Permitted Encumbance. Except for any FF&E subject to FF&E Leases, Seller will have good and marketable title to the Personal Property, free and clear of all liens,
claims, encumbrances or other rights whatsoever (other than Seller Liens to be released at Closing), and there are no other liens, claims, encumbrances or other rights pending or of which Seller has received notice or which are otherwise known to
Seller related to any other Personal Property. 
  
 (h) Utilities. All appropriate utilities, including sanitary and storm sewers, water, gas, telephone, cable and electricity, are currently sufficient and available to service each Hotel and all installation, connection or
“tap-on” and usage fees have been paid or will be paid prior to Closing of each Hotel. 
  
 (i) Licenses, Permits and Approvals. The Property will comply at the Closing with applicable licenses, permits and approvals and
federal, state or local statutes, laws, ordinances, rules, regulations, requirements and codes including, without limitation, those regarding land use, building, fire, health, safety, environmental, subdivision, water quality, sanitation controls
and will comply with at Closing, 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. Except as provided in (j) below, Seller has
received all licenses, permits and approvals required or needed for the construction of each Hotel and will by Closing have received all licenses, permits and approvals required or needed for the lawful conduct, occupancy and operation of the
business of each Hotel, and each license and permit, including without limitation each of the License Agreements, shall be in full force and effect. No licenses, permits or approvals necessary for the lawful conduct, occupancy or operation of the
business of each Hotel requires any approval of a governmental authority for transfer of the Property except as set forth in Exhibit E. 
  
 (j) Licenses Pending. Seller has received all permits and approvals necessary to develop the Hartford Hotel, Somerset Hotel and Mt.
Olive Hotel. Seller has received all permits and approvals necessary to develop and construct the Rocky Hill Hotel and Walllingford Hotel. In the event that Seller is unable to obtain any permit necessary to construct any of the Hotels whatsoever,
such that the Property can not be developed as a Hotel, the Hotel Property will be deleted from this Option Contract and will no longer be a part of this Option Contract. 
  

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 (k) Employees. There are no (i) unions organized at any Hotel, (ii) union
organizing attempts, strikes, organized work stoppages or slow downs, or any other labor disputes pending or, to Seller’s knowledge, threatened with respect to any of the employees at any Hotel, or (iii) collective bargaining or other labor
agreements to which Seller or the Manager or any Hotel is bound with respect to any employees employed at any Hotel. Seller will not hire any employees to work at the Hotels and all employees will be hired by the Manager. 
  
 (l) Construction. 
  
 (i) Each of the Hotels will be constructed in a good and
workmanlike manner without encroachments and in accordance with the Construction Contracts, Plans and Specs, and prior to the Closing for any Hotel, Seller will obtain a Certificate of Occupancy sufficient to allow the opening of such Hotel for
business to the public. Seller shall see that each Hotel is Finally Completed (as contemplated below) and open or ready in all respects to open for business as a Residence Inn in Mt. Olive and Rocky Hill, a Hilton Homewood Suites in Wallingford and
Somerset, and a Courtyard by Marriott in Hartford. All construction and the contemplated use and occupancy of each Hotel with the number of rooms for each Hotel specified on Schedule 1 shall be in conformity with all building permits and in
conformity with all applicable health, safety and similar laws, rules, regulations, ordinances and codes. Each of the Hotels shall be deemed “Finally Completed,” upon delivery by Seller to Buyer prior to the Closing of a Hotel
“Evidence of Final Completion” for such Hotel reasonably satisfactory to Buyer, together with evidence reasonably satisfactory to Buyer of compliance of each of the Hotels with all zoning, subdivision and platting laws, rules, regulations,
ordinances and codes (collectively, “Land Use Compliance”). “Evidence of Final Completion” of any Hotel shall mean: (a) Buyer shall have received satisfactory certificates of final completion from the architect(s)
and/or engineer(s) and the general contractor(s) for such Hotel; and (b) Buyer shall have received satisfactory evidence that (i) all final and unconditional consents, approvals, licenses, certificates of occupancy (“C/O’s”)
and operating permits necessary or appropriate for such Hotel to open for business to the public and operate as a Residence Inn® in Mt. Olive and Rocky Hill, Homewood Suites in Wallingford and Somerset, on Courtyard in Hartford have been issued by and obtained from all applicable
governmental and regulatory authorities; (ii) such Hotel is fully furnished, fitted and equipped and ready to open for business to the public and operate as a Residence Inn® in Mt. Olive and Rocky Hill, a Hilton Homewood Suites in Wallingford and Somerset, or Courtyard by Marriott in Lebanon;
(iii) all contractors, subcontractors, suppliers, mechanics, material man and other persons or entities providing labor or materials for the construction and development of such Hotel shall have been paid but for punch list items, as evidenced by
unconditional releases of liens reasonably satisfactory to Buyer and the Title Company; and (iv) all of the conditions set forth in the License Agreement for such Hotel have been satisfied and such License Agreement is in full force and effect.

  

 18 

 (ii) All Personal Property: 
  
 (x) shall be owned by Seller prior to the Closing and
conveyed to Buyer at the Closing free from liens, encumbrances, security interests and the claims of any lessors or other parties whatsoever (other than any FF&E subject to FF&E Leases); and 
  
 (y) will be new as of the opening date of each Hotel and in
good condition and operating order. 
  
 (iii) All
necessary easements for ingress and egress, drainage, signage and utilities serving each Hotel have either been dedicated to the public, conveyed to the appropriate utility or will be conveyed to Buyer along with the applicable Hotel Property.

  
 (iv) All drawings, plans and specifications
for the Improvements have been or will be prepared in accordance with good architectural practice and engineering and in accordance with applicable laws, rules, regulations, ordinances and codes. The Construction 
  
 Contracts, Plans and Specs for each Hotel provided to Buyer
are the same contracts, drawings, plans and specifications approved by the applicable governmental authorities having jurisdiction over such Hotel and all required approvals thereof have been or will be obtained from such authorities and from all
third parties. 
  
 (v) Seller shall indemnify and
hold Buyer harmless from all costs, expenses, claims, liens and liability arising out of or related to all construction of the Improvements and acquisition and installation of the FF&E and supplies furnished, performed or completed prior to the
Closing Date. In the event of the filing of a mechanic’s or material men’s lien against any portion of any Hotel Property, Seller shall cause the same to be released at least ten (10) days prior to Closing on the affected Hotel Property.

  
 (vi) Seller warrants (x) that all materials
and equipment furnished with respect to the Improvements, FF&E and Supplies will be new as of the opening date of each Hotel and in the quantities required by the Franchisor and Manager of each Hotel, (y) that all Improvements, FF&E and
Supplies shall be of good quality and, free from faults and defects and consistent with the standards set forth in the respective License Agreements, and (z) that at Closing, title to all Improvements, FF&E and Personal Property will vest in
Buyer, free and clear of all liens, claims, security interests or encumbrances except for Permitted Exceptions and any applicable FF&E Leases. 
  
 (vii) In addition to, but not in limitation of, other warranties set forth herein or in any Warranties, Construction Contracts, Plans and
Specs, if, within one (1) year after the date of Closing of each Hotel, any of the construction (whether materials or workmanship) is found to be defective or not in accordance with the approved Construction Contracts, Plans and Specs or the
Licenses in any material respect, upon notice from Buyer, Seller shall, at its sole cost and expense, promptly cause any such defect or nonconforming work to be corrected. As to FF&E and other Personal Property, Seller warrants the same to be
free from defects for a period of one (1) year from the date of Closing of each Hotel. 
  

 19 

 As used herein, “Seller’s knowledge” or “known to Seller” or similar statements include, without
limitation, reasonable inquiry by Seller of Brad Honigfeld. 
  
 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 State of Maryland. Buyer has
received or will have received by the REIT Closing Date on                          all necessary consents of the Board of
Directors of Buyer that Buyer is fully authorized to complete the transactions contemplated by Option Contract, if it so elects. No other consent or approval of any person, entity or governmental authority is required for the execution, delivery or
performance by Buyer of this Option Contract. Seller understands that Buyer will not be able to exercise the Option on any of the Properties unless until the REIT Closing occurs. 
  
 (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 set forth in this Contract are true, correct and complete as of the date hereof and the statements set forth therein (without qualification or limitation
as to a party’s knowledge thereof) shall be true, correct and complete as of the Closing Date. All of the representations and warranties made herein shall survive Closing on each Hotel Property for a period of twelve (12) months and shall not
be deemed to merge into or be waived by any Seller’s 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 keep Buyer fully informed of all subsequent developments of which Seller has knowledge (“Subsequent Developments”) which would cause any of Seller’s representations or warranties contained in this
Contract to be no longer accurate in any material respect. 
  
 8.2
Operations. Seller shall, from and after the date hereof through the Closing on each Hotel Property: 
  
 (a) Advise Buyer promptly of any litigation, arbitration, or administrative hearing before any court or governmental agency concerning or
affecting any Hotel or Property which is instituted or threatened after the date of this Contract or if any representation or warranty contained in this Contract shall become false; 
  

 20 

 (b) 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; 
  
 (c) Pay or cause to be paid all taxes, assessments and other impositions levied or assessed on each 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 each Hotel; 
  
 (d) 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 and sales of food and beverages in the ordinary course of business) on, the Property or any portion thereof; 
  
 (e) Not allow any permit, receipt, license, franchise or right currently in existence with respect to the operation, use, occupancy or
maintenance of any Hotel to expire, be canceled or otherwise terminated; and. 
  
 (f) Not enter into or modify any FF&E Leases, Service Contracts, Leases or other contracts or agreements (other than bookings made in the ordinary course of business) related to any Hotel, without first obtaining
the written approval of Buyer, which approval shall not be unreasonably withheld or delayed (and will be deemed granted if not withheld in writing within five (5) business days after receipt by Buyer of a notice from Seller requesting such approval,
provided that such notice shall so stipulate); provided, however, that it shall not in any event be deemed unreasonable for Buyer to withhold its approval of any FF&E Lease. 
  
 8.3 Third Party Consents. Prior to the Closing Date for any Hotel, Seller shall, at Seller’s expense, obtain any
and all third party consents and approvals required in order to transfer such Hotel to Buyer, including, without limitation, all consents and approvals referred to on Exhibit E (collectively, the “Third Party Consents”).

  
 8.4 [Intentionally Deleted]. 
  
 8.5 Management Agreement. Seller is not yet a party to any management
Agreement for any of the Hotels. At least three (3) months prior to the anticipated opening for each Hotel, in consultation with Buyer and on terms reasonably acceptable to Seller and Buyer, Seller will enter into a management agreement (a
“Management Agreement”) with respect to such Hotel with a manager reasonably acceptable to Seller and Buyer (a “Manager”), and Seller shall thereafter cause such Manager to engage in the pre-opening activities that
are envisioned by such Management Agreement (the budget for which shall be no more than $175,000 per Hotel). Each Management Agreement shall be assignable to Buyer at Closing and assumed by Buyer at Closing. 
  
 8.6 Seller shall cause the Manager to employ sufficient personnel to staff
each Hotel when and as reasonably required so that the Hotel shall be open or ready to open as of the date of the Closing for such Hotel. 
  

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 8.7 Liquor Licenses. Seller represents, warrants and covenants that no liquor or alcoholic
beverages are sold, and none will be sold, at any of the Hotels prior to Closing. Seller agrees to assist Buyer and/or the Manager on Buyer’s behalf in obtaining liquor licenses and alcoholic beverage licenses necessary or desirable in
connection with the operation of any restaurants, bars and lounges located within each Hotel (the “Liquor Licenses”) in the event Buyer or Manager wishes to apply for any such Liquor Licenses. 
  
 8.8 Access to Financial Information. Buyer’s representatives
shall have access to all financial and other information relating to the Property 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 to enable them to prepare a registration statement, report or disclosure statement for filing with the SEC on behalf of Buyer. 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 Hotels. 
  
 8.9 Sales Tax. At Buyer’s risk and expense, Buyer shall take all
steps reasonably necessary to comply with the requirements of a transferee under all bulk and sale transfer laws applicable to the transactions contemplated by this Option Contract. Buyer shall be responsible for paying any bulk sales tax, which may
be imposed on the transaction. Seller shall be responsible for paying any outstanding sales tax related to its operating of the Hotel. 
  
 8.10 Indemnification. If the transactions contemplated by this Option Contract are consummated as provided herein, with respect to any Hotel
Property sold by Seller to Buyer: 
  
 (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, Seller hereby agrees to indemnify, defend
and hold harmless Buyer and its respective designees, successors and assigns 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 Seller contained in this Contract; 
  
 (ii) any liability or obligation of Seller not expressly
assumed by Buyer pursuant to this Contract; and 
  
 (iii) the ownership, use or operation of the 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, 
  

 22 

 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 any of the
following and not attributable to any breach by Seller of any representation, warranty or covenant of Seller in this Option Contract: 
  
 (i) any claim made or asserted against Seller by a creditor of Buyer, 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 Buyer contained in this Contract; 
  
 (iii) the conduct and operation by Buyer of its business at each Hotel purchased by Buyer from and after it assumes management of the
Hotel and from and after the Closing. 
  
 (iv)
the acts, omissions and conduct of it, its Manager, or its employees from the time Buyer and/or Manager assume management of the Hotel. 
  
 (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 8.10, 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 
  

 23 

 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 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
its continuing business, 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. 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, accounts 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. 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. 
  

 24 

 8.11 Survival of Covenants. Unless waived or terminated as provided herein, all of the covenants
and agreements made by Seller and Buyer in this Option Contract and in the Schedules and Exhibits hereto shall be continuing and shall survive Closing on the applicable Hotel Property, notwithstanding any investigation at any time made by or on
behalf of any party, and shall terminate with respect to each Hotel Property acquired by Buyer twelve (12) months after Closing on such Hotel Property. 
  
 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 elect not to exercise the Option, the duties and obligations of Buyer to proceed to Closing on each Hotel Property under the terms and provisions of this Option 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 Option Contract, each of which shall be deemed material to this Option Contract. Unless waived in
writing by Buyer, the following shall be pre-conditions to the Closing for each Hotel Property: 
  
 (a) All of Seller’s representations and warranties contained in or made pursuant to this Option Contract shall be true and correct in
all material respects as if made again on each 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 Option Contract to be performed, observed and complied with by Seller, as and when required hereunder. 
  
 (d) Seller shall have provided to Buyer C/O’s and other Evidence of Final Completion for the applicable Hotel. 
  
 (e) 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 Real Property constituting part of the applicable Hotel Property, subject only to the Permitted Exceptions, in the amount of the
Purchase Price for such Hotel Property. 
  
 9.2 Seller’s
Conditions for Closing. Unless otherwise waived in writing, the duties and obligations of Seller to proceed to Closing under the terms and provisions of this Option Contract are and shall be expressly subject to strict compliance with, and
satisfaction or waiver 
  

 25 

 of, each of the conditions and contingencies set forth in this Section 9.2, each of which shall be deemed material to
this Option Contract. Unless waived in writing by Seller, the following shall be pre-conditions to the Closing for each Hotel Property: 
  
 (a) All of Buyer’s representations and warranties contained in or made pursuant to this Option 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 Option Contract to be performed, observed and complied with by Buyer, as and when required hereunder. 
  
 ARTICLE X 
 CLOSING AND CONVEYANCE

  
 10.1 Closing; Construction Completion. In the event
the Option is exercised by Buyer each Hotel Property shall be sold by Seller and purchased by Buyer when the applicable Hotel is Finally Completed (the “Final Completion Date”), provided such date is no earlier than the Outside
Exercise Date unless Buyer, at its sole election, decides to close before such date. Unless otherwise agreed by Buyer and Seller in writing, Closing on each of the Hotel Properties shall occur on the date after the Seller receives a C/O sufficient
to permit such Hotel to open for business to the public, provided that all conditions to Closing by Buyer hereunder have been satisfied. If the C/O is a temporary C/O, Seller shall take all steps necessary at Seller’s expense to obtain a
permanent C/O as expeditiously as possible but such temporary C/O shall not delay the Closing so long as the Hotel can open for business to the public. If Buyer is unable to close on the Final Completion Date, Buyer shall have the right to extend
the Closing to a date which is no more than thirty (30) days after the Final Completion Date. Buyer shall exercise such right by notifying Seller in writing of its desire to extend the Closing Date and the intended date for closing. Such notice
shall be sent at least ten (10) days prior to the Final Completion Date. If Buyer elects to extend the Closing Date, Seller shall be entitled to open and operate the Hotel until the extended Closing Date. The new Closing Date shall be time of the
essence and may only be extended further with Seller’s consent. 
  
 The date on which the Closing on any of the Hotel Properties 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”.
The Closing shall be held at the offices of the Title Company or in escrow, or as otherwise determined by Buyer and Seller. 
  
 10.2 Seller’s Deliveries. At each Closing, Seller shall deliver to Buyer the following, and, as appropriate, all instruments shall be properly
executed and conveyance instruments to be 
  

 26 

 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 Closing). 
  
 (a) Deed. A Special Warranty Deed or Bargain and Sale Deed with covenants against grantor’s acts in the form attached as Exhibit G, conveying to Buyer fee simple title to the Real Property
constituting part of the applicable Hotel Property, subject only to the Permitted Exceptions (the “Deed”). 
  
 (b) Bills of Sale. Bills of Sale, in the form attached hereto as Exhibit H, to Buyer and/or its designated Lessee, conveying
title to the tangible Personal Property constituting part of the applicable Hotel Property. 
  
 (c) 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 D hereto applicable to each Hotel (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, Construction Contracts, Plans and Specs and all other intangible Personal Property applicable to the applicable Hotel. 
  
 (d) 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. 
  
 (e) Title Company Documents. All affidavits, gap indemnity agreements (if required by the Title Company) and other documents reasonably required by the Title Company. 
  
 (f) Completion. Evidence of Completion as specified
in Section 7.1 (e) (i) and a C/O for the applicable Hotel together with any required affidavits and other documentation necessary to support the Evidence of Final Completion. 
  
 (g) Authority Documents. Copies of resolutions, certified by an officer of the managing member of
Seller and BRG addressed to Buyer and the Title Company authorizing the sale of each Hotel Property contemplated by this Option 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 each Hotel Property is located. 
  
 (h) 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 each Hotel Property is located, to effectuate the conveyance of property
similar to the related Hotel Property, with the effect that, after the Closing, Buyer will have succeeded to all of the rights, titles, and interests of Seller related to such Hotel Property and Seller will no longer have any rights, titles, or
interests in and to such Hotel Property, except for liabilities retained by Seller as contemplated by this Contract. 
  

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 (i) Plans, Keys, Records, Etc. To the extent not previously delivered to and in
the possession of Buyer, all Construction Contracts, Plans and Specs, all keys for each 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 each Hotel. 
  
 (j)
Closing Statements. Seller’s Closing Statement, and a certificate confirming the truth of Seller’s representations and warranties hereunder as of the Closing Date. 
  
 10.3 Buyer’s Deliveries. At Closing of each Hotel Property, Buyer shall deliver the following 
  
 (a) The balance of the Purchase Price for such Hotel
Property. 
  
 (b) Authority Documents.
Certified copy of resolutions of the Board of Directors of Buyer authorizing the purchase of the applicable Hotel Property as contemplated by this Option Contract, and/or 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) Miscellaneous. Such other instruments as are contemplated by this Option 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 applicable Hotel Property is located, to effectuate the conveyance of property similar to such Hotel Property, with the effect that, after
the Closing, Buyer will have succeeded to all of the rights, titles, and interests of Seller related to such Hotel Property and Seller will no longer have any rights, titles, or interests in and to the applicable Hotel Property, except for
liabilities retained by Seller as contemplated by this Option Contract. 
  
 (d) 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 Buyer’s Costs. In connection with the sale of the Property contemplated under this Option Contract, Buyer and Seller shall each be responsible for one-half of all transfer and recordation taxes including, without
limitation, all transfer, sales or bulk transfer taxes or like taxes on or in connection with the transfer of the Personal Property constituting part of the Property being conveyed pursuant to the Bill of Sale, in each case except as otherwise
provided in Section 12. Buyer shall also be responsible for the costs and expenses of its attorneys, accountants, appraisers and other professionals, consultants and representatives. Except as set forth in Section 11.2, Buyer shall also be
responsible for the costs and expenses in connection 
  

 28 

 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, the per page recording charges for the Deed (if applicable) and costs (if any) expressly provided as being paid by Buyer pursuant to Article V
of this Contract. 
  
 11.2 Seller’s Costs. In
connection with the purchase of an Hotel Property contemplated under this Contract, Seller shall be responsible for the costs and expenses of its attorneys, accountants and other professionals, consultants and representatives and all accrued taxes
of Seller prior to Closing and income taxes and other such taxes of Seller attributable to the sale of the Property to Buyer. Seller shall also be responsible for amounts payable in connection with the pay-off of any liens and/or indebtedness
encumbering the Hotel Property being conveyed. Notwithstanding Section 11.1 hereof, Buyer shall not bear the cost of any environmental report, title commitment or policy or survey that shall have been prepared for Seller. 
  
 ARTICLE XII 
 ADJUSTMENTS 
  
 12.1 Adjustments. Unless otherwise provided herein, at Closing on each Hotel Property, adjustments between the parties shall be made as of 12:01 a.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 such
Closing. Except as otherwise expressly provided herein, all apportionments and adjustments shall be made on an accrual basis in accordance with generally accepted accounting principles. 
  
 (a) Taxes. All real estate taxes, personal property taxes, or any other taxes and special assessments
(special or otherwise) of any nature upon each Hotel Property, levied, assessed or pending for the calendar year in which the Closing on each Hotel Property 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 related Hotel for the calendar year in which such Closing occurs. 
  
 (b) Utilities. All suppliers of utilities shall be instructed to read meters or otherwise determine the charges owing as of such
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. 
  
 (c) Income/Charges. All rents, income and charges receivable or payable under any Leases and Hotel contracts applicable to each Hotel Property, and any deposits, prepayments and receipts thereunder, shall be prorated between Buyer
and Seller as of the Cutoff Time. 
  

 29 

 (d) Accounts. All operating accounts, petty cash, cash in cash registers up to
$3,000.00, and cash in vending machines of the Seller as of the Cutoff Time shall remain the property of Seller. At Buyer’s election, Buyer shall give Seller a credit for any or all such items other than funds deposited in a bank account, in
which event such credited items shall become the property of Buyer. All FF&E and other reserve accounts (if any) shall become the property of Buyer without charge to Buyer. 
  
 (e) Guest Ledger. Subject to (f) below, all accounts receivable of registered guests at the Hotel
Property being conveyed who have not checked out and were occupying rooms as of the Cutoff Time (the “Guest Ledger”), 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 belong to 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. Subject to (e), (f) and (g)
above, all accounts receivable and credit card claims as of the Cutoff Time shall remain the property of Seller. Seller shall be given a credit at Closing for such amounts. 
  
 (i) Accounts Payable. Any indebtedness, accounts payable, liabilities or obligations of any kind or
nature related to Seller or the applicable Hotel Property for the periods prior to the Closing Date shall be allocated to Seller and promptly paid by or for the account of Seller and evidence thereof shall be provided to Buyer, and Buyer shall not
be or become liable therefore, except as expressly assumed by Buyer pursuant to this Option Contract. Invoices received by Seller in the ordinary course of business prior to Closing shall be paid by or for the account of Seller at or prior to
Closing and evidence thereof shall be provided to Buyer. 
  
 (j) Restaurants, Bars, Machines, Other Income. All monies received in connection with bar, restaurant, banquet and similar and other services at the Hotel Property being conveyed (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 be credited to the account of Seller, and all other receipts and revenues (not previously described in
this Section 12.1) from the operation of any department of such Hotel shall be prorated between Seller and Buyer at Closing. 
  
 12.2 Reconciliation and Final Payment. Seller and Buyer shall reasonably cooperate after Closing of each Hotel Property to make a final
determination of the allocations and prorations required under this Option Contract within sixty (60) days after the Closing Date for each Hotel Property. 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 on each Hotel Property. 
  

 30 

 ARTICLE XIII 
 CASUALTY AND CONDEMNATION 
  
 13.1 Risk of Loss; Notice. Prior to Closing and the delivery of possession of each Hotel Property to Buyer in accordance with this Option Contract, all risk of loss to such Hotel Property (whether by casualty, condemnation or
otherwise) shall be borne by Seller. In the event that (a) any loss or damage to an Hotel shall occur prior to the Closing Date for such Hotel 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 an 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 Termination Right. If, prior to Closing and the delivery of possession of an Hotel Property to Buyer in accordance with this Option Contract,
(a) any condemnation proceeding shall be pending against a substantial portion of the related Hotel or (b) there is any substantial casualty loss or damage to the related Hotel, Buyer or Seller shall have the option to terminate this Option Contract
as to the affected Hotel Property or, at Buyer’s election, terminate this Option Contract as to all of the Property not purchased by Buyer, provided the party delivers written notice to the other party 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 Deposit (if Buyer elects to terminate this Option Contract as to the Property) or the pro rata portion thereof
allocable to the affected Hotel Property (if Seller or Buyer elects to terminate only as to the affected Hotel Property) 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 Option Contract with respect to the affected Hotel Property unless Buyer elects to terminate this Option Contract in its entirety, in which event Seller and Buyer shall have no obligation
or liability under this Option Contract with respect to any Property. In the context of condemnation, “substantial” shall mean condemnation of such portion of an 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 Million and No/100 Dollars ($1,000,000.00)
in value. 
  
 13.3 Procedure for Closing. If neither party
has timely elected to terminate this Option Contract under Section 13.2 above, or if the loss, damage or condemnation is not substantial, 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. 
  

 31 

 ARTICLE XIV 
 DEFAULT REMEDIES 
  
 14.1
Buyer Default. In the event that Buyer shall have exercised the Option with respect to a Hotel but wrongfully fails to close with respect to such Hotel on the Closing Date therefor (as such Closing Date may be extended in accordance with
Section 10.1 hereof), then, at Seller’s election, to be exercised by written notice to Buyer: 
  
 (a) Buyer shall be deemed to have forfeited any right to purchase such Hotel and any other Hotels not theretofore purchased by Buyer under
this Option Contract, and this Contract shall be deemed terminated (and the Option shall be null and void) with respect to such Hotels; 
  
 (b) Seller shall have no further obligation to Buyer under this Contract except with respect to any portion of the Property that shall
theretofore already have been purchased by Buyer; and 
  
 (c) the Escrow Agent shall immediately release to Seller the then remaining Deposit, including any interest earned thereon. 
  
 14.2 Seller Default. If Seller defaults under this Option Contract after the Option is exercised and such default continues for ten (10) days
following written notice from Buyer, Buyer may elect as Buyer’s sole and exclusive remedy, to either (a) terminate this Option Contract as to the Property or, at Buyer’s election, the affected Hotel Property, by written notice to Seller
delivered to Seller at any time prior to the completion of such cure, in which event the Deposit, or pro rata portion thereof allocable to the affected Hotel Property, 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 Option Contract or the affected Hotel Property, as applicable, except as otherwise expressly provided herein or (b) treat this Option Contract as if it
continues in full force and effect and seek specific performance as to the Hotel and any remaining Hotels. 
  
 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 this Option Contract because of the default of the other party, and the non-defaulting party is successful in enforcing such rights, then the defaulting party shall reimburse the non-defaulting party for
the non-defaulting party’s reasonable attorneys’ fees, costs and expenses. 
  

 32 

 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:	  	 Orange Hospitality, Inc.
 C/O Coqui Capital Partners,
L.P.
 1775 Broadway, Suite 604
 New York, NY 10019
 Attention: Jeffrey Davidson

		
	with a copy to:	  	 Arent Fox PLLC
 1675 Broadway, 25th Floor

New York, NY 10019-5820
 Attention: Jeffrey Rosen,
Esq.

		
	If to Seller or BRG:	  	 Briad Lodging Group Hartford, L.L.C.
 Briad Lodging
Group Rocky Hill, L.L.C.
 Briad Lodging Group Somerset, L.L.C.
 Briad Lodging Group Wallingford, L.L.C.
 Briad Lodging Group Mt. Olive, L.L.C.
 Briad Restaurant Group, L.L.C.
 30A Vreeland Road
 Florham Park, New Jersey 07932
 Attention: Brad Honigfeld, President
 Fax No.: 973-822-4511

		
	with a copy to:	  	 Briad Development West, L.L.C.
 30A Vreeland
Road
 Florham Park, New Jersey 07932
 Attention: Marlene Laveman,
Esq.
 Fax No.: 973-473-0842

  

 33 

 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 Option Contract. 
  
 16.2 Binding Effect; Assignment. This Option 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 Option 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 Option 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 of New Jersey (without regard to conflicts of laws principles). 
  
 16.5 Captions. The captions used in this Option 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 Option Contract. 
  
 16.6 Confidentiality. Except as otherwise required by law (including, without limitation, laws and regulations and
Securities disclosures applicable to Buyer or its affiliates who may be publicly registered companies): (i) prior to Closing, Buyer and Seller shall not disclose the existence of this Option 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 counsel, consultants and agents and except as necessitated by Buyer’s due diligence examination and/or shadow
management or in order or obtain financing, unless both Buyer and Seller agree in writing and as necessary to effectuate the transactions contemplated hereby and (ii) following Closing on each Hotel Property, the parties shall coordinate any public
disclosure or release of information related to the transactions contemplated by this Option Contract. 
  
 16.7 Closing Documents. To the extent any Closing documents are not attached hereto at the time of execution of this Option 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 Option 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. 
  

 34 

 16.9 Severability. If any provision of this Option 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 Option 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 Option 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 Option Contract. 
  
 16.10 Interpretation. For purposes of construing the provisions of this Option Contract, the singular shall be deemed to include the plural and
viceversa and the use of any gender shall include the use of any other gender, as the context may require. 
  
 16.11 Business Day. “Business day” shall mean any day other than a Saturday, Sunday or legal holiday in the State of New Jersey.

  
 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 or the Title Company may reasonably require to consummate the transaction contemplated hereunder. 
  
 16.13 Like-Kind Exchange. Seller intends to exchange the Property for
like-kind property pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 (a) Seller may assign its interest in this Contract to a “qualified intermediary” within the meaning of Section 1.1031(k)-1(g)
(4) (iii) of the income tax regulations promulgated under the Code (“Intermediary”). However, notwithstanding any such assignment and exchange, Seller shall remain fully liable for its obligations hereunder. In the event of such
assignment, Buyer agrees, at no cost or liability to Buyer, to provide reasonable cooperation to Seller to complete such assignment and the exchange. Seller shall reimburse Buyer, upon demand, for any expense incurred by Buyer relating to any such
assignment and exchange, and Buyer shall not be required to take title to any property other than the Property. No such assignment or exchange shall delay Closing, and the accomplishment of any such exchange shall not be a condition to Seller’s
obligations under this Option Contract. Seller’s failure to locate an exchange property or exchange properties or to consummate an exchange for any reason shall not relieve Seller of any of its obligations under this Option Contract.

  
 (b) Buyer assumes no responsibility for
ensuring that the exchange transaction contemplated by this Section 16.14 will comply under Section 1031 of the Code or that Seller will receive the income tax treatment it desires as the result of any exchange transaction. 
  

 35 

 ARTICLE XVII 
 JOINDER BY BRG 
  
 BRG
joins in this Option Contract and hereby covenants and agrees that BRG is and shall be jointly and severally liable with each Seller for the performance of all of Seller’s obligations and liabilities under this Option Contract, that survive
Closing. Buyer shall not be required to pursue its rights or remedy, against Seller under this Option Contract first before resorting to BRG for payment or performance and BRG shall be entitled to assert as a defense to the enforceability of its
covenants and agreements hereunder any defense of Seller with respect to any liabilities or obligations of Seller to Buyer. BRG further represents, warrants and covenants to Buyer as follows: 
  
 (a) Authority; No Conflicts. BRG is a limited liability company duly
formed, validly existing and in good standing in the State of New Jersey. BRG has obtained all necessary consents to enter into and perform this Option Contract and is fully authorized to enter into and perform this Option Contract and to complete
the transactions contemplated by this Option Contract. No consent or approval of any person, entity or governmental authority is required for the execution, delivery or performance by BRG of this Option Contract, except as set forth in Exhibit
E, and this Option Contract is hereby binding and enforceable against BRG. Neither the execution nor the performance of, or compliance with, this Option Contract by BRG 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 BRG. 
  
 (b) Bankruptcy. Neither BRG nor any of its partners or members is insolvent or the subject of any bankruptcy
proceeding, receivership proceeding or other insolvency, dissolution, reorganization or similar proceeding. 
  

 36 

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

			
	 SELLER:
  
  
 BRIAD LODGING GROUP WALLINGFORD,
 L.L.C., a New Jersey limited liability company

		
	By:	 	 
	 	 	

	 	 	 Brad Honigfeld, Sole Member

	
	 BRIAD LODGING GROUP SOMERSET, L.L.C.,
 a New Jersey limited liability company

		
	By:	 	 
	 	 	

	 	 	Brad Honigfeld, Sole Member
	
	 BRIAD LODGING GROUP MT. OLIVE, L.L.C.,
 a New Jersey limited liability company

		
	By:	 	 
	 	 	

	 	 	Brad Honigfeld, Sole Member
	
	 BRIAD LODGING GROUP ROCKY HILL, L.L.C.

		
	By:	 	 
	 	 	

	 	 	Brad Honigfeld, Member
	
	 BRIAD LODGING GROUP HARTFORD, L.L.C.

		
	By:	 	 
	 	 	

	 	 	Brad Honigfeld, Member

  

 37 

			
	
	 BUYER:
  
 ORANGE HOSPITALITY, INC., a Maryland
 Corporation

		
	By:	 	 
	 	 	

	 	 	 
	
	 JOINDER:
  
  
 BRIAD RESTAURANT GROUP, L.L.C.

		
	By:	 	 
	 	 	

	 	 	Brad Honigfeld, Member

  

 38 

 SCHEDULE 1 
  

DESCRIPTION OF HOTELS 
  

									
	 Hotel

	  	Rooms

	  	 Other Improvements/
 Amenities

	  	Purchase Price

	  	 Seller Entity and TIN

					
	Mt. Olive Residence Inn	  	123	  	88,301 sq., ft, aggregate meeting room space; indoor swimming pool, exercise room, spa, business center	  	$15,170,000	  	 Briad Lodging Group Mt. Olive, L.L.C.
 Tax Iden. #

					
	 Wallingford Homewood
 Suite
	  	104	  	76,212 sq., ft, aggregate meeting room space; indoor swimming pool, exercise room, spa, business center	  	$11,170,000	  	 Briad Lodging Group Wallingford,
 L.L.C.
 Tax Iden. # 22-3802311

					
	 Franklin Homewood
 Suite
	  	123	  	87,421 sq., ft, aggregate meeting room space; indoor swimming pool, exercise room, spa, business center	  	$14,410,000	  	 Briad Lodging Group Somerset, L.L.C.
 Tax Iden. #51-0438910

					
	 Rocky Hill Residence
 Inn
	  	96	  	71,605 sq., ft, aggregate meeting room space; indoor swimming pool, exercise room, spa, business center	  	$11,700,000	  	 Briad Lodging Group Rocky Hill,
 L.L.C.
 Tax Iden. # 73-1684374

					
	*Farmington Courtyard	  	119	  	76,212 sq., ft, aggregate meeting room space; indoor swimming pool, restaurant and lounge, exercise room, spa, business center	  	$13,550,000	  	 Briad Lodging Group Hartford, L.L.C.
 Tax Iden. #

  

	*	Notwithstanding anything to the contrary contained in the Contract, Seller has reserved the right to reduce the room count to no less than 100 rooms. For each room less than 119,
the purchase price for the Farmington Courtyard and the Purchase Price shall be reduced by $114,000.00 per room. 

  
  

 39 

 SCHEDULE 2 
  

DESCRIPTION OF LICENSE AGREEMENTS 
  

 Schedule 2-1 

 EXHIBIT A 
  

LEGAL DESCRIPTION 
  
 EXHIBIT A-1:         Description of Wallingford Property 
  
 EXHIBIT A-2:
        Description of Somerset Property 
  
 EXHIBIT A-3:         Description of Mt. Olive Property 
  
 EXHIBIT A-4:
        Description of Rocky Hill Property 
  
 EXHIBIT A-5:         Description of Hartford Property 
  
  

 A-1 

 EXHIBIT B 
  

[Intentionally Deleted] 
  
  

 B-1 

 EXHIBIT C 
  

ESCROW AGREEMENT 
  
 [To be inserted] 
  

 C-1 

 EXHIBIT D 
  

[Intentionally Deleted] 
  
  

 C-2 

 EXHIBIT E 
  

CONSENTS AND APPROVALS 
  

					
	EXHIBIT E-1:	 	Wallingford Hotel	 	 
			
	 	 	 A.     Consents Under Hotel Contracts
	 	 
	 	 	 B.     Consents Under Other Contracts
	 	 
	 	 	 C.     Governmental Approvals and Consents

			
	EXHIBIT E-2:	 	Somerset Hotel	 	 
			
	 	 	 A.     Consents Under Hotel Contracts
	 	 
	 	 	 B.     Consents Under Other Contracts
	 	 
	 	 	 C.     Governmental Approvals and Consents

			
	EXHIBIT E-3:	 	Mt. Olive Hotel	 	 
			
	 	 	 A.     Consents Under Hotel Contracts
	 	 
	 	 	 B.     Consents Under Other Contracts
	 	 
	 	 	 C.     Governmental Approvals and Consents

			
	EXHIBIT E-4:	 	Rocky Hill Hotel	 	 
			
	 	 	 A.     Consents Under Hotel Contracts
	 	 
	 	 	 B.     Consents Under Other Contracts
	 	 
	 	 	 C.     Governmental Approvals and Consents

			
	EXHIBIT E-5:	 	Hartford Hotel	 	 
			
	 	 	 A.     Consents Under Hotel Contracts
	 	 
	 	 	 B.     Consents Under Other Contracts
	 	 
	 	 	 C.     Governmental Approvals and Consents

  
  

 E-1 

 EXHIBIT F 
  

ENVIRONMENTAL REPORTS 
  
 EXHIBIT F-1: Wallingford Hotel Environmental Reports 
  
 EXHIBIT F-2: Somerset Hotel Environmental Reports 
  
 EXHIBIT F-3: Mt. Olive Hotel Environmental Reports

  
 EXHIBIT F-4: Rocky Hill Hotel
Environmental Reports 
  
 EXHIBIT F-5:
Hartford Hotel Environmental Reports 
  
  

 F-1 

 EXHIBIT G 
  

FORM OF DEED 
  
 FORM OF DEED TO BE AGREED UPON BY BUYER AND SELLER 
 DURING REVIEW PERIOD. 
  
  

 G-1 

 EXHIBIT H 
  

FORM OF BILL OF SALE 
  
 FORM OF BILL OF SALE TO BE AGREED UPON BY BUYER AND SELLER 
 DURING REVIEW PERIOD. 
  

 H-1Fourth Amended and Restated Registration Rights Agreement

 EXHIBIT 4.2 
  

INTRALASE CORP. 
  
 FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT 
  

THIS FOURTH AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of May 17, 2002, is entered into by and
among IntraLase Corp., a Delaware corporation (the “Corporation”), the entities and individuals listed as Purchasers on Schedule I hereto (the “Purchasers”), and the individuals listed as Stockholders on
Schedule II hereto (the “Stockholders”), and for the purposes of Section 15 hereof, the other entities and individuals who are signatories hereto and listed on Schedule III hereto (the “Other
Stockholders”). 
  
 R E C I
T A L S: 
  
 A. Concurrent
with the date of this Agreement, the Corporation and certain of the parties hereto have entered into a Series G Convertible Preferred Stock Purchase Agreement (the “Series G Agreement”) pursuant to which the purchasers thereunder shall
purchase shares of Series G Convertible Preferred Stock of the Corporation. The obligation of the parties to purchase the shares of Series G Convertible Preferred Stock is conditioned upon all the parties hereto entering into this Agreement.

  
 B. The Corporation, the Purchasers and the Stockholders
wish to amend and restate that certain Third Amended and Restated Registration Rights Agreement dated as of October 18, 2000 by and among the Corporation and the entities and individuals listed as parties thereto, as such agreement was amended by
that certain Joinder Agreement dated October 26, 2001 by and among the Corporation and the entities and individuals listed as parties thereto (the “Prior Registration Rights Agreement”). 
  
 A G R E E M E N
T: 
  
 The parties agree as follows: 
  
 Section 1. Certain Definitions. As used in this Agreement, the
following terms shall have the following respective meanings: 
  
 (a) “Commission” shall mean the Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act. 
  
 (b) “Common Stock” shall mean the Common Stock, one cent ($0.01) par value, of the Corporation, as
constituted as of the date of this Agreement. 
  
 (c)
“Conversion Shares” shall mean shares of Common Stock issued or issuable upon conversion of the Preferred Shares. 
  
 (d) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at the time. 
  
 (e) “Preferred Shares” shall mean and collectively include (i) the shares of the Corporation’s Series A Convertible Preferred Stock, one cent ($0.01) par value, to which certain of the Purchasers
hold right, title, and interest, as of the date hereof, (ii) the shares of the Corporation’s 

 Series B Convertible Preferred Stock, one cent ($0.01) par value, to which certain of the Purchasers hold right, title,
and interest, as of the date hereof, (iii) the shares of the Corporation’s Series C Convertible Preferred Stock, one cent ($0.01) par value, to which certain of the Purchasers hold right, title, and interest, as of the date hereof, (iv) the
shares of the Corporation’s Series D Convertible Preferred Stock, one cent ($0.01) par value, to which certain of the Purchasers hold right, title, and interest, as of the date hereof, (v) the shares of the Corporation’s Series E
Convertible Preferred Stock, one cent ($0.01) par value, to which certain of the Purchasers hold right, title, and interest, as of the date hereof, (vi) the shares of the Corporation’s Series F Convertible Preferred Stock, one cent ($0.01) par
value, to which certain of the Purchasers hold right, title, and interest, as of the date hereof and (vii) the shares of the Corporation’s Series G Convertible Preferred Stock, one cent ($0.01) par value, to which certain of the Purchasers hold
right, title, and interest, as of the date hereof. 
  
 (f)
“Purchase Agreement” shall mean and collectively include (i) the Convertible Preferred Stock Purchase Agreement, dated December 11, 1997, by and among the Corporation and the several purchasers set forth in Schedule I
thereto, (ii) the Convertible Preferred Stock Purchase Agreement Supplement, dated June 30, 1998, by and between the Corporation and the Regents of the University of Michigan, Wolverine Venture Fund, (iii) the Series B Convertible Preferred Stock
Purchase Agreement, dated August 10, 1998, by and between the Corporation and Pamela Equities Corp., (iv) the Series B Convertible Preferred Stock Purchase Agreement, dated August 10, 1998, by and between the Corporation and Paul R. DeStefano, (v)
the Series C Convertible Preferred Stock Purchase Agreement, dated December 1, 1998, by and among the Corporation and the several purchasers set forth in Schedule I thereto, (vi) the Series D Convertible Preferred Stock Purchase Agreement,
dated August 31, 1999, by and among the Corporation and the several purchasers set forth in Schedule I thereto, (vii) the Series E Convertible Preferred Stock Purchase Agreement, dated as of October 18, 2000, by and among the Corporation and
the several purchasers set forth in Schedule I thereto, (viii) the Series F Convertible Preferred Stock Purchase Agreement, dated as of October 26, 2001, by and among the Corporation and the several purchasers set forth in Schedule I
thereto, and (ix) the Series G Convertible Preferred Stock Purchase Agreement, dated as of the date of this Agreement, by and among the Corporation and the several purchasers set forth in Schedule I thereto. 
  
 (g) “Registration Expenses” shall mean the expenses so
described in Section 8. 
  
 (h) “Restricted
Stock” shall mean (i) the Conversion Shares, and (ii) shares of Common Stock (“Common Stock Warrant Shares”) issuable upon exercise of the Common Stock Purchase Warrant to purchase up to an aggregate of sixty thousand
(60,000) shares of Common Stock issued to Enterprise Development Fund II, Limited Partnership, a Michigan limited partnership in consideration for services rendered to the Corporation, excluding Conversion Shares and Common Stock Warrant Shares
which have been (A) registered under the Securities Act pursuant to an effective registration statement filed thereunder and disposed of in accordance with the registration statement covering them or (B) publicly sold pursuant to Rule 144 under the
Securities Act, (iii) except for Sections 4 and 6 hereunder, three hundred fifty-four thousand four hundred forty-five (354,445) shares held by the Regents of the University of Michigan, and (iv) three hundred fifty thousand (350,000) shares of
Common Stock held by Escalon Medical Corp. (“Escalon”). 
  
 (i) “Securities Act” shall mean the Securities Act of 1933, as amended, or any similar federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect
at the time. 
  

 2 

 (j) “Selling Expenses” shall mean the expenses so described in Section 8. 
  
 (k) “Stockholder Shares” shall mean all such shares of
Common Stock as are held of record as of the date hereof by any Stockholder. 
  
 Section 2. Restrictive Legend. Each certificate representing Preferred Shares, Conversion Shares, Stockholder Shares, or the Common Stock Warrant Shares, and the Common Stock Warrant shall, except as otherwise
provided in this Section 2 or in Section 3, be stamped or otherwise imprinted with a legend substantially in the following form: 
  
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED OR OTHERWISE DISPOSED OF
UNLESS IT HAS BEEN REGISTERED UNDER SUCH ACT AND ALL SUCH APPLICABLE LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 
  
 A certificate shall not bear such legend if in the opinion of counsel satisfactory to the Corporation the securities represented thereby may be publicly
sold without registration under the Securities Act and any applicable state securities laws. 
  
 Section 3. Notice of Proposed Transfer. Prior to any proposed transfer of any Preferred Shares, Conversion Shares, Stockholder Shares, the Common Stock Warrant, or the Common Stock Warrant Shares (other than
under the circumstances described in Sections 4, 5 or 6), the holder thereof shall give written notice to the Corporation of its intention to effect such transfer. Each such notice shall describe the manner of the proposed transfer and, if requested
by the Corporation, shall be accompanied by an opinion of counsel satisfactory to the Corporation to the effect that the proposed transfer may be effected without registration under the Securities Act and any applicable state securities laws,
whereupon the holder of such stock shall be entitled to transfer such stock in accordance with the terms of its notice; provided, however, that no such opinion of counsel shall be required for a transfer to one or more partners of the
transferor (in the case of a transferor that is a partnership) or to an affiliated corporation (in the case of a transferor that is a corporation). Each certificate for Preferred Shares, Conversion Shares, Stockholder Shares, the Common Stock
Warrant, or the Common Stock Warrant Shares, transferred as above provided shall bear the legend set forth in Section 2, except that such certificate shall not bear such legend if (i) such transfer is in accordance with the provisions of Rule 144
(or any other rule permitting public sale without registration under the Securities Act) or (ii) the opinion of counsel referred to above is to the further effect that the transferee and any subsequent transferee (other than an affiliate of the
Corporation) would be entitled to transfer such securities in a public sale without registration under the Securities Act. The restrictions provided for in this Section 3 shall not apply to securities which are not required to bear the legend
prescribed by Section 2 in accordance with the provisions of that Section. 
  
 Section 4. Required Registration. 
  
 (a) At any time after the earliest of (i) six (6) months after the closing of a firm commitment underwritten public offering of Common Stock by the Corporation which results in gross proceeds to the Corporation (after
deducting underwriters’ discounts and commissions) of not less than twenty million dollars ($20,000,000) at a public offering price of not less than six dollars and ninety cents ($6.90) per share (as adjusted for any stock dividends,
combinations or splits with 
  

 3 

 respect to such shares) (a “Qualifying Public Offering”) and (ii) the third anniversary of the date of
this Agreement, the holders of Restricted Stock constituting at least fifty-one percent (51%) of the total shares of Restricted Stock then outstanding may request the Corporation to register under the Securities Act all or any portion of the shares
of Restricted Stock held by such requesting holder or holders for sale in the manner specified in such notice, provided that the reasonably anticipated aggregate offering price would exceed five million dollars ($5,000,000). Provided that the only
securities which the Corporation shall be required to register pursuant hereto shall be shares of Common Stock, and provided further, that, in any underwritten public offering contemplated by this Section 4 or Sections 5 and 6, the holders of
Preferred Shares shall be entitled to sell such Preferred Shares to the underwriters for conversion and sale of the shares of Common Stock issued upon conversion thereof. Notwithstanding anything to the contrary contained herein, no request may be
made under this Section 4 during the period commencing with the date sixty (60) days prior to the Corporation’s good faith estimate of the date of filing of, and ending on a date one hundred twenty (120) days after the effective date of, a
registration statement filed by the Corporation covering a firm commitment underwritten public offering in which the holders of Restricted Stock shall have been entitled to join pursuant to Sections 5 or 6 and in which there shall have been
effectively registered all shares of Restricted Stock as to which registration shall have been requested. 
  
 (b) Following receipt of any notice under this Section 4, the Corporation shall immediately notify all holders of Restricted Stock from whom notice has
not been received and shall use its best efforts to register under the Securities Act, for public sale in accordance with the method of disposition specified in such notice from requesting holders, the number of shares of Restricted Stock specified
in such notice (and in all notices received by the Corporation from other holders within thirty (30) days after the giving of such notice by the Corporation). If such method of disposition shall be an underwritten public offering, the holders of a
majority of the shares of Restricted Stock to be sold in such offering may designate the managing underwriter of such offering, subject to the approval of the Corporation, which approval shall not be unreasonably withheld or delayed. The
Corporation’s obligation to register Restricted Stock pursuant to this Section 4 shall be deemed satisfied only when a registration statement covering all shares of Restricted Stock specified in notices received as aforesaid, for sale in
accordance with the method of disposition reasonably agreed to with the requesting holders, shall have become effective and, if such method of disposition is a firm commitment underwritten public offering, all such shares shall have been sold
pursuant thereto. 
  
 (c) The Corporation shall be entitled to
include in any registration statement referred to in this Section 4, for sale in accordance with the method of disposition specified by the requesting holders, shares of Common Stock to be sold by the Corporation for its own account, except as and
to the extent that, in the opinion of the managing underwriter (if such method of disposition shall be an underwritten public offering), such inclusion would adversely affect the marketing of the Restricted Stock to be sold. Provided,
however, that any such reduction in the number of shares of Restricted Stock pursuant to this Section 4 shall be applied (i) first to the shares proposed to be included by the Corporation for its own account, up to and including all such shares,
(ii) second, to the Stockholder Shares (on a pro rata basis amongst the requesting holders who are Stockholders, based upon the number of Stockholder Shares owned by such holders), up to and including all of the Stockholder Shares and (iii) third,
to the remaining Restricted Stock (on a pro-rata basis amongst the requesting holders who are holders of Restricted Stock), and provided further, that the number of shares referred to in subparagraphs (i)-(iii) shall not be reduced if any shares are
to be included in such underwriting for the account of any person other than the Corporation or requesting holders of Restricted Stock. Except for registration statements on Form S-4, S-8 or any 
  

 4 

 successor thereto, the Corporation will not file with the Commission any other registration statement with respect to its
Common Stock, whether for its own account or that of other stockholders, from the date of receipt of a notice from requesting holders pursuant to this Section 4 until the date one hundred eighty (180) days following the effective date of the
registration contemplated thereby. 
  
 (d) The Corporation shall
not be obligated to take any action to effect any such registration, qualification or compliance pursuant to this Section 4 prior to the effectiveness of a Qualifying Public Offering after the Corporation has effected one (1) such registration and
such registration has been declared or ordered effective. Subsequent to the effectiveness of a Qualifying Public Offering the Corporation shall not be obligated to take any action to effect any registration, qualification or compliance pursuant to
this Section 4 after the Corporation has effected one (1) such registration and such registration has been declared or ordered effective. 
  
 (e) Notwithstanding the foregoing, if the Corporation shall furnish to the holders requesting a registration statement pursuant to this Section 4, a
certificate signed by the Chief Executive Officer of the Corporation stating that, in the good faith judgment of the Board of Directors of the Corporation, it would be seriously detrimental to the Corporation and its stockholders for such
registration statement to be filed and it is therefore essential to defer the filing of such registration statement, the Corporation shall have the right to defer taking action with respect to such filing for a period of not more than ninety (90)
days after receipt of the request of the requesting holders; provided, however, that the Corporation may not utilize this right more than once in any twelve (12) month period. 
  
 Section 5. Incidental Registration. 
  
 (a) If the Corporation at any time (other than pursuant to Section 4 or Section 6) proposes to register any of its
securities under the Securities Act for sale to the public, whether for its own account or for the account of other security holders or both (except with respect to registration statements on Forms S-4, S-8 or another form not available for
registering the Restricted Stock for sale to the public), each such time it will give written notice to all holders of outstanding Restricted Stock of its intention so to do. Upon the written request of any such holder, received by the Corporation
within thirty (30) days after the giving of any such notice by the Corporation, to register any of its Restricted Stock, the Corporation will use its best efforts to cause the Restricted Stock as to which registration shall have been so requested to
be included in the securities to be covered by the registration statement proposed to be filed by the Corporation, all to the extent requisite to permit the sale or other disposition by the holder of such Restricted Stock so registered. 

 
 (b) In the event that any registration pursuant to this Section 5 shall
be, in whole or in part, an underwritten public offering of Common Stock, the number of shares of Restricted Stock to be included in such an underwriting may be reduced (pro rata among the requesting holders based upon the number of shares of
Restricted Stock owned by such holders) if and to the extent that the managing underwriter shall be of the opinion that such inclusion would adversely affect the marketing of the securities to be sold by the Corporation therein, provided,
however, that any such reduction in the number of shares of Restricted Stock pursuant to this Section 5 shall be applied (i) first, to the Stockholder Shares (on a pro rata basis amongst the requesting holders who are Stockholders, based upon
the number of Stockholder Shares owned by such holders), up to and including all of the Stockholder Shares, excluding one hundred thousand (100,000) shares of Common Stock held by Escalon, (ii) second, to the remaining Restricted Stock (on a
pro-rata basis amongst the requesting holders who are holders of Restricted Stock) excluding one hundred thousand 
  

 5 

 (100,000) shares of Common Stock held by Escalon, and (iii) third, to the one hundred thousand (100,000) shares of Common
Stock held by Escalon; and provided further, that the number of shares referred to in subparagraphs (i)-(iii) shall not be reduced if any shares are to be included in such underwriting for the account of any person other than the Corporation or
requesting holders of Restricted Stock. Notwithstanding the foregoing provisions, the Corporation may withdraw any registration statement referred to in this Section 5 without thereby incurring any liability to the holders of Restricted Stock.

  
 Section 6. Registration on Form S-3. 
  
 (a) If at any time (i) a holder or holders of at least twenty percent (20%)
of the total shares of Restricted Stock originally issued, or at least twenty percent (20%) of the total shares of Series G Preferred Stock, request that the Corporation file a registration statement on Form S-3 or any successor thereto for a public
offering of all or any portion of the shares of Restricted Stock held by such requesting holder or holders, the reasonably anticipated aggregate price to the public of which would exceed one million dollars ($1,000,000), and (ii) the Corporation is
a registrant entitled to use Form S-3 or any successor thereto to register such shares, then the Corporation shall use its best efforts to register under the Securities Act on Form S-3 or any successor thereto, for public sale in accordance with the
method of disposition specified in such notice, the number of shares of Restricted Stock specified in such notice. Whenever the Corporation is required by this Section 6 to use its best efforts to effect the registration of Restricted Stock, each of
the procedures and requirements of Section 4 (including but not limited to the requirement that the Corporation notify all holders of Restricted Stock from whom notice has not been received and provide them with the opportunity to participate in the
offering) shall apply to such registration, provided that the requirements contained in the first sentence of Section 4(a) shall not apply to any registration on Form S-3 which may be requested and obtained under this Section 6. 
  
 (b) The Corporation shall not be obligated to take any action to effect any
such registration, qualification or compliance pursuant to this Section 6 if, in a given twelve-month period, the Corporation has effected two (2) such registration or if it is to be effected more than seven (7) years after the Corporation’s
initial public offering. 
  
 Section 7. Registration
Procedures. If and whenever the Corporation is required by the provisions of Sections 4, 5 or 6 to use its best efforts to effect the registration of any shares of Restricted Stock under the Securities Act, the Corporation will, as expeditiously
as possible: 
  
 (a) prepare and file with the Commission a
registration statement (which, in the case of an underwritten public offering pursuant to Section 4, shall be on Form S-1 or other form of general applicability satisfactory to the managing underwriter selected as therein provided) with respect to
such securities and use its best efforts to cause such registration statement to become and remain effective for the period of the distribution contemplated thereby (determined as hereinafter provided); 
  
 (b) prepare and file with the Commission such amendments and supplements to
such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period of no less than ninety (90) days and comply with the provisions of the Securities Act with
respect to the disposition of all Restricted Stock covered by such registration statement in accordance with the sellers’ intended method of disposition set forth in such registration statement for such period; 
  

 6 

 (c) furnish to each seller of Restricted Stock and to each underwriter such number of copies of the
registration statement and the prospectus included therein (including each preliminary prospectus) as such persons reasonably may request in order to facilitate the public sale or other disposition of the Restricted Stock covered by such
registration statement; 
  
 (d) use its best efforts to register
or qualify the Restricted Stock covered by such registration statement under the securities or “blue sky” laws of such jurisdictions as the sellers of Restricted Stock or, in the case of an underwritten public offering, the managing
underwriter reasonably shall request, provided, however, that the Corporation shall not for any such purpose be required to qualify generally to transact business as a foreign corporation in any jurisdiction where it is not so qualified or to
consent to general service of process in any such jurisdiction; 
  
 (e) use its best efforts to list the Restricted Stock covered by such registration statement with any securities exchange on which the Common Stock of the Corporation is then listed; 
  
 (f) immediately notify each seller of Restricted Stock and each underwriter
under such registration statement, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event of which the Corporation has knowledge as a result of which the prospectus
contained in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing; 
  
 (g) if the offering is
underwritten and at the request of any seller of Restricted Stock, use its best efforts to furnish on the date that Restricted Stock is delivered to the underwriters for sale pursuant to such registration: (i) an opinion dated such date of counsel
representing the Corporation for the purposes of such registration, addressed to the underwriters and to such seller, stating that such registration statement has become effective under the Securities Act and that (A) to the best knowledge of such
counsel, no stop order suspending the effectiveness thereof has been issued and no proceedings for that purpose have been instituted or are pending or contemplated under the Securities Act, (B) the registration statement, the related prospectus and
each amendment or supplement thereof comply as to form in all material respects with the requirements of the Securities Act (except that such counsel need not express any opinion as to financial statements contained therein) and (C) to such other
effects as reasonably may be requested by counsel for the underwriters or by such seller or its counsel and (ii) a letter dated such date from the independent public accountants retained by the Corporation, addressed to the underwriters and to such
seller, stating that they are independent public accountants within the meaning of the Securities Act and that, in the opinion of such accountants, the financial statements of the Corporation included in the registration statement or the prospectus,
or any amendment or supplement thereof, comply as to form in all material respects with the applicable accounting requirements of the Securities Act, and such letter shall additionally cover such other financial matters (including information as to
the period ending no more than five business days prior to the date of such letter) with respect to such registration as such underwriters reasonably may request; and 
  
 (h) make available for inspection by each seller of Restricted Stock, any underwriter participating in any distribution
pursuant to such registration statement, and any attorney, accountant or other agent retained by such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Corporation, and cause the
Corporation’s officers, directors and employees to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement. 
  

 7 

 For purposes of Sections 7(a) and 7(b) and of Section 4(c), the period of distribution of Restricted
Stock in a firm commitment underwritten public offering shall be deemed to extend until each underwriter has completed the distribution of all securities purchased by it, and the period of distribution of Restricted Stock in any other registration
shall be deemed to extend until the earlier of the sale of all Restricted Stock covered thereby and one hundred twenty (120) days after the effective date thereof. 
  
 In connection with each registration hereunder, the sellers of Restricted Stock will furnish to the Corporation in writing
such information with respect to themselves and the proposed distribution by them as reasonably shall be necessary in order to assure compliance with federal and applicable state securities laws. Such information shall include, but not be limited
to, executed questionnaires of directors and officers and powers of attorney. 
  
 In connection with each registration pursuant to Sections 4, 5 or 6 covering an underwritten public offering, the Corporation and each holder of Restricted Stock that requested inclusion in the offering or that has
elected to participate in the offering pursuant to Sections 4, 5 or 6, shall agree to enter into a written agreement with the managing underwriter selected in the manner herein provided in such form and containing such provisions as are customary in
the securities business for such an arrangement between such underwriter and companies of the Corporation’s size and investment stature and which agreement is reasonably acceptable to the managing underwriter. 
  
 Section 8. Expenses. All expenses incurred by the Corporation in
complying with Sections 4, 5 and 6, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel and independent public accountants for the Corporation, fees and expenses (including counsel
fees) incurred in connection with complying with state securities or “blue sky” laws, fees of the National Association of Securities Dealers, Inc., transfer taxes, fees of transfer agents and registrars, costs of insurance and fees and
disbursements of one counsel for the sellers of Restricted Stock, but excluding any Selling Expenses, are called “Registration Expenses.” All underwriting discounts, selling commissions, expense allowances, reimbursable expenses and
the fees of more than one counsel for sellers of Restricted Stock applicable to the sale of Restricted Stock are called “Selling Expenses.” 
  
 The Corporation will pay all Registration Expenses in connection with each registration statement under Sections 4, 5 and 6; provided, however,
that the Corporation shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 4 if the registration request is subsequently withdrawn at the request of the holders of a majority of the shares of
Restricted Stock requested to be registered (in which case all participating holders shall bear such expenses), unless the holders of a majority of the Restricted Stock agree to forfeit their right to one demand registration pursuant to Section 4
hereof; and, provided further, that if at the time of such withdrawal, the requesting holders have learned of a material adverse change in the condition, business, or prospects of the Corporation from that known to such holders at the time of their
request and have withdrawn the request with reasonable promptness following disclosure by the Corporation of such material adverse change, then the holders shall not be required to pay any of such expenses and shall retain their rights pursuant to
Section 4 hereof. 
  

 8 

 All Selling Expenses in connection with each registration statement under Sections 4, 5, and 6 shall be
borne by the participating sellers in proportion to the number of shares of Restricted Stock sold by each, or by such participating sellers other than the Corporation (except to the extent the Corporation shall be a seller) as they may agree.

  
 Section 9. Indemnification and Contribution.

  
 (a) In the event of a registration of any of the Restricted
Stock under the Securities Act pursuant to Sections 4, 5 or 6, the Corporation will indemnify and hold harmless each seller of such Restricted Stock thereunder, each underwriter of such Restricted Stock thereunder and each other person, if any, who
controls such seller or underwriter within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such seller, underwriter or controlling person may become subject under the Securities Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in any registration statement under
which such Restricted Stock was registered under the Securities Act pursuant to Sections 4, 5 or 6, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse each such seller, each such underwriter and each such controlling person for
any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that the Corporation will not be liable in any such case if and to the
extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by any such seller, any such
underwriter or any such controlling person. 
  
 (b) In the event
of a registration of any of the Restricted Stock under the Securities Act pursuant to Sections 4, 5 or 6, each seller of such Restricted Stock thereunder, severally and not jointly, will indemnify and hold harmless the Corporation, each person, if
any, who controls the Corporation within the meaning of the Securities Act, each officer of the Corporation who signs the registration statement, each director of the Corporation, each underwriter and each person who controls any underwriter within
the meaning of the Securities Act, against all losses, claims, damages or liabilities, joint or several, to which the Corporation or such officer, director, underwriter or controlling person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement under which such
Restricted Stock was registered under the Securities Act pursuant to Sections 4, 5 or 6, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Corporation and each such officer, director, underwriter and controlling person for
any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action, provided, however, that such seller will be liable hereunder in any such case if and only
to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with information pertaining to such
seller, as such, furnished to the Corporation by such seller, and provided, further, that the liability of each seller hereunder shall be limited to the proportion of any 
  

 9 

 such loss, claim, damage, liability or expense which is equal to the proportion that the public offering price of the
shares sold by such seller under such registration statement bears to the total public offering price of all securities sold thereunder, but not in any event to exceed the proceeds received by such seller from the sale of Restricted Stock covered by
such registration statement. Notwithstanding anything else in this Section 9 to the contrary, the liability of each seller hereunder shall not be limited to the proceeds received by such seller from the sale of such seller’s Restricted Stock if
it shall be judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time for the appeal or the denial of the last right of appeal) that such seller did knowingly and willfully make
an untrue statement or omit to make any true statement (in the case of the Regents of the University of Michigan, the statement as corrected must be required to be made by law, and the untrue or omitted statement must be made or omitted with the
actual knowledge of one of its executive officers, including knowledge as to its materiality) or otherwise committed fraud with respect to a material fact in any registration statement, preliminary prospectus or final prospectus contained therein
under which such seller’s Restricted Stock shall have been registered. 
  
 (c) Promptly after receipt by an indemnified party hereunder of notice of the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party
hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party shall not relieve it from any liability which it may have to such indemnified party other than under this Section 9 and shall only
relieve it from any liability which it may have to such indemnified party under this Section 9 if and to the extent the indemnifying party is prejudiced by such omission. In case any such action shall be brought against any indemnified party and it
shall notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel satisfactory to such indemnified
party, and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 9 for any legal
expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation and of liaison with counsel so selected, provided, however, that, if the defendants in any such
action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be reasonable defenses available to it which are different from or additional to those available to the
indemnifying party or if the interests of the indemnified party reasonably may be deemed to conflict with the interests of the indemnifying party, the indemnified party shall have the right to select a separate counsel and to assume such legal
defenses and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the indemnifying party as incurred. 
  
 (d) In order to provide for just and equitable contribution to joint
liability under the Securities Act in any case in which either (i) any holder of Restricted Stock exercising rights under this Agreement, or any controlling person of any such holder, makes a claim for indemnification pursuant to this Section 9 but
it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that this Section 9 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any such selling holder or any such controlling person in circumstances for which
indemnification is provided under this Section 9; then, and in each such case, the Corporation and such holder will contribute to the 
  

 10 

 aggregate losses, claims, damages or liabilities to which they may be subject (after contribution from others) in such
proportion so that such holder is responsible for the portion represented by the percentage that the public offering price of its Restricted Stock offered by the registration statement bears to the public offering price of all securities offered by
such registration statement, and the Corporation is responsible for the remaining portion; provided, however, that, in any such case, (A) no such holder will be required to contribute any amount in excess of the public offering price of all
such Restricted Stock offered by it pursuant to such registration statement; and (B) no person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any
person or entity who was not guilty of such fraudulent misrepresentation. 
  
 Section 10. Preemptive Rights. Until the closing of the sale of the Corporation’s Common Stock in a Qualifying Public Offering, other than a registration relating solely to a transaction under Rule 145
under the Securities Act (or any successor thereto) or to an employee benefit plan of the Corporation, if the Corporation proposes to offer any shares of its equity securities other than (i) shares excluded from the definition of “Additional
Shares of Common Stock” in Section C.4(c)(i)(4) of Article FOURTH, of the Sixth Amended and Restated Certificate of Incorporation of the Corporation (the “Certificate”), or (ii) shares offered to the public pursuant to an
Qualifying Public Offering, the Corporation will first offer such shares to each holder of Preferred Shares at the same price and on the same terms and conditions, on a pro rata basis based upon such holder of Preferred Shares’ percentage
ownership of the total number of shares of Common Stock then outstanding, calculated on a fully diluted and as-converted basis consistent with the determination of full dilution described in Section C.4(c)(iv) of the Certificate, in the following
manner: 
  
 (a) The Corporation shall promptly deliver a notice
(“Notice”) to the holder of Preferred Shares stating: (i) its bona fide intention to sell such equity securities, (ii) the number of shares of equity securities proposed to be sold, (iii) the number of shares of equity which the
holder of Preferred Shares is entitled to purchase, (iv) the price for which it proposes to sell such equity securities, and (v) any other material terms of the sale. 
  
 (b) Within ten (10) days after the receipt by the holder of Preferred Shares of such Notice or attempted delivery during
working hours to its address shown on the books of the Corporation (such date is referred to as the “Receipt Date”), the holder of Preferred Shares may, by delivering a written notice (the “Reply”) to the
Corporation before close of business on the tenth (10th) day following the Receipt Date, elect to purchase, at the price and on the terms specified in the Notice, up to that number of shares representing a percentage of such equity securities equal
to its then fully-diluted percentage ownership of the Corporation (with respect to each holder of Preferred Shares, its “Pro-Rata Portion”). The exact number of shares of equity securities desired to be purchased shall be set forth
in the Reply. 
  
 (c) Brentwood Affiliates Fund II, L.P.,
Brentwood Associates IX, L.P., Enterprise Development Fund II, Limited Partnership, EDF Ventures, Limited Partnership, Interwest Partners VIII, L.P., Interwest Investors VIII, L.P., Interwest Investors Q VIII, L.P., Domain Partners IV, L.P., D.P. IV
Associates L.P., Venture Investors Early Stage Fund III, L.P., Wolverine Venture Fund, Steven Slade, Versant Venture Capital I, L.P., Versant Ventures I, L.L.C., Versant Affiliates Fund I-A, L.P., Versant Affiliates Fund I-B, L.P., Versant Side Fund
I, L.P. Meritech Capital Partners II L.P., Meritech Capital Affiliates II L. P. and MCP Entrepreneur Partners II L.P. Fund (the “Senior Preferred Holders”), shall each have a right of oversubscription with respect to each other

  

 11 

 and the other holders of Preferred Shares, such that, if any Senior Preferred Holder or any other holder of Preferred
Shares fails to deliver the Reply as set forth in Section 10(b) above to the Corporation before the close of business on the tenth (10th) day following the Receipt Date, electing therein to purchase its entire Pro-Rata Portion, at the price and on
the terms specified in the Notice, then the Senior Preferred Holders shall, among them, have the right to purchase up to the balance of the shares not so purchased. Such right of oversubscription may be exercised by any Senior Preferred Holder by
delivering a Reply to the Corporation before the close of business on the tenth (10th) day following the Receipt Date, electing to purchase, at the price and on the terms specified in the Notice, more than its Pro-Rata Portion. If, as a result
thereof, such oversubscriptions exceed the total number of shares available in respect of such oversubscription privilege, the oversubscribing Senior Preferred Holders’ shares shall be cut back with respect to their oversubscriptions on a pro
rata basis in accordance with their respective Replies or as they may otherwise agree among themselves. 
  
 Section 11. During the ninety (90) day period following the period required in Section 10(c), above, the Corporation may sell up to the number of shares
of equity securities not elected to be purchased as provided in Sections 10(b) and 10(c), above, at the price specified in the Notice or at a higher price and on substantially the same terms or less favorable terms to the purchasers thereof.

  
 Section 12. Changes in Common Stock or Preferred Stock.
If, and as often as, there is any change in the Common Stock or the Preferred Stock by way of a stock split, stock dividend, combination or reclassification, or through a merger, consolidation, reorganization or recapitalization, or by any other
means, appropriate adjustment shall be made in the provisions hereof so that the rights and privileges granted hereby shall continue with respect to the Common Stock or the Preferred Stock as so changed. 
  
 Section 13. Rule 144 Reporting. With a view to making available the
benefits of certain rules and regulations of the Commission which may at any time permit the sale of the Restricted Stock to the public without registration, at all times after ninety (90) days after any registration statement covering a public
offering of securities of the Corporation under the Securities Act shall have become effective, the Corporation agrees to use its best efforts to: 
  
 (a) make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act; 
  
 (b) file with the Commission in a timely manner all reports and other
documents required of the Corporation under the Securities Act and the Exchange Act; and 
  
 (c) furnish to each holder of Restricted Stock forthwith upon request a written statement by the Corporation as to its compliance with the reporting requirements of such Rule 144 and of the Securities Act and the
Exchange Act, a copy of the most recent annual or quarterly report of the Corporation, and such other reports and documents so filed by the Corporation as such holder may reasonably request in availing itself of any rule or regulation of the
Commission allowing such holder to sell any Restricted Stock without registration. 
  

 12 

 Section 14. Information and Inspection Rights. 
  
 (a) Delivery of Financial Statements. The Corporation shall
deliver to each Purchaser, so long as such Purchaser owns at least five hundred thousand (500,000) shares of Preferred Stock (appropriately adjusted to reflect stock splits, stock dividends, combinations of shares and the like with respect to the
Preferred Shares): 
  
 (i) as soon as practicable, but in any
event within one hundred twenty (120) days after the end of each fiscal year of the Corporation, an income statement for such fiscal year, a balance sheet of the Corporation and statement of shareholder’s equity as of the end of such year, and
a statement of cash flows for such year, such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles (“GAAP”), and audited and certified by independent public
accountants of nationally recognized standing selected by the Board of Directors of the Corporation; 
  
 (ii) as soon as practicable, but in any event within thirty (30) days after the end of each month, except for a month which concludes a quarterly
accounting period of the Corporation, an unaudited profit or loss statement, a statement of cash flows for such month and an unaudited balance sheet and a statement of shareholder’s equity as of the end of such month; 
  
 (iii) as soon as practicable, but in any event within forty-five (45) days
after the end of each of the first three fiscal quarters of each fiscal year of the Corporation, an unaudited profit or loss statement, a statement of cash flows for such quarter and an unaudited balance sheet and a statement of shareholder’s
equity as of the end of such fiscal quarter in a form reasonably acceptable to the Purchasers; 
  
 (iv) as soon as practicable, but in any event forty-five (45) days prior to the end of each fiscal year, a budget for the next fiscal year; 

 
 (v) promptly following receipt by the Corporation, each audit response
letter, accountants’ management letter and other written report submitted to the Corporation by its independent public accountants in connection with an annual or interim audit; and 
  
 (vi) promptly following commencement thereof, notice of all actions, suits, claims, proceedings, investigations and
inquiries that are likely to cause a material adverse effect on the operations or financial condition of the Corporation; 
  
 (b) With respect to the financial statements called for in Section 14(a)(ii), an instrument executed by the Chief Financial Officer of the
Corporation, or, if there is no Chief Financing Officer, the Controller of the Corporation, certifying that to his or her knowledge such financials were prepared in accordance with GAAP consistently applied with prior practice for earlier periods
(with the exception of footnotes that may be required by GAAP) and fairly present the financial condition of the Corporation and its results of operation for the period specified, subject to year-end audit adjustment and are, to his knowledge, true,
complete and correct; and 
  
 (c) Inspection. Upon no less
than three (3) days prior written notice, the Corporation shall permit each Purchaser, so long as such Purchaser holds at least five hundred thousand (500,000) shares of Preferred Stock (appropriately adjusted to reflect stock splits, stock
dividends, combinations of shares and the like with respect to the Preferred Shares), and such persons 
  

 13 

 as the Purchaser may designate, subject to the Corporation’s reasonable approval and at such Purchaser’s
expense, to visit and inspect any of the Corporation’s properties, to examine its books of account and records and to discuss the Corporation’s affairs, finances and accounts with its officers, during normal business hours. 
  
 (d) Confidentiality. Notwithstanding any other provision of this
Section 14, the Corporation shall not be obligated to provide access to any information which it reasonably considers to be a trade secret or similar confidential information unless Purchaser or Purchaser’s representative agrees to hold
such information in confidence and agrees to execute a confidentiality agreement in form and substance reasonably acceptable to the Corporation. 
  
 (e) Termination of Information and Inspection Covenants. The covenants set forth in this Section 14 shall terminate as to the Purchasers and
be of no further force or effect when the sale of securities pursuant to a registration statement filed by the Corporation under the Securities Act in connection with the firm commitment underwritten offering of its securities to the general public
is consummated or when the Corporation first becomes subject to the periodic reporting requirements of Sections 12(g) or 15(d) of the 1934 Act, whichever event shall first occur. 
  
 Section 15. Rights to Compel Sale. 
  
 (a) Anything contained herein to the contrary notwithstanding, if at any time the holders of at least two thirds (66 2/3%)
of the Preferred Shares shall approve a “Sale” (as defined below) of the Corporation (a “Sale Proposal”), then the Corporation shall deliver a notice (a “Required Sale Notice”) with respect to such Sale
Proposal to all Purchasers, Stockholders and Other Stockholders stating that the Corporation proposes to effect the Sale Proposal and providing the identity of the persons involved in such Sale Proposal and the material terms thereof (such
Purchasers, Stockholders and Other Stockholders are referred to in this Section 15 individually as a “Compelled Seller” and together as the “Compelled Sellers”). Each such Compelled Seller, upon receipt of a
Required Sale Notice, shall be obligated to (i) sell all shares of the Corporation’s capital stock then owned or controlled by such Compelled Seller and participate in the transaction (a “Required Sale”) contemplated by the
Sale Proposal, (ii) vote all shares of capital stock owned or controlled by such Compelled Seller in favor of such Sale Proposal at any meeting (or written action in lieu of a meeting) of the stockholders of the Corporation called (or solicited) to
vote on or approve such Sale Proposal, and (iii) otherwise to take all necessary action to cause the Corporation and the Compelled Seller to consummate such Required Sale. Any such Required Sale Notice may be rescinded by the Corporation (but only
with the consent of the holders of at least two thirds (66 2/3%) of the Preferred Shares) at any time and without penalty by delivering written notice thereof to all of the Compelled Sellers. 
  
 (b) The obligations of the Compelled Sellers pursuant to this Section 15 are
subject to the satisfaction of the following conditions: 
  
 (i)
all of the Compelled Sellers shall receive the same proportion of the aggregate consideration from such Required Sale that each such holder would have received if such aggregate consideration had been distributed by the Corporation in complete
liquidation pursuant to the rights and preferences set forth in the Certificate of Incorporation of the Corporation as in effect immediately prior to such Required Sale (giving effect to applicable orders of priority and the exercise price of all
warrants and options); 
  

 14 

 (ii) if any holder of any class or series of capital stock of the Corporation is given an option as to
the form and amount of consideration to be received, all holders of such class or series of capital stock will be given the same option; 
  
 (iii) no Compelled Seller shall be obligated to make any out-of-pocket expenditure prior to the consummation of the Required Sale and no Compelled Seller
shall be obligated to pay more than his pro rata share (based upon the amount of consideration received) of expenses incurred in connection with a consummated Required Sale to the extent such costs are incurred for the benefit of all stockholders
and are not otherwise paid by the Corporation or the acquiring party (costs incurred by or on behalf of a Compelled Seller for its or his sole benefit will not be considered costs of the transaction hereunder), provided that a Compelled
Seller’s liability for such expenses shall be capped at the total purchase price received by such Compelled Seller for its shares of the Corporation’s capital stock (including the exercise price thereof); and 
  
 (iv) in the event that any Compelled Seller is required to provide any
representations or indemnities in connection with the Required Sale (other than representations and indemnities concerning each Compelled Seller’s valid ownership of his shares of capital stock of the Corporation, free of all liens and
encumbrances (other than those arising under applicable securities laws), and each Compelled Seller’s authority, power, and right to enter into and consummate such purchase or merger agreement without violating any other agreement and the
enforceability against such Compelled Seller of such purchase or merger agreement and any related transaction documents), then each Compelled Seller shall not be liable for more than his pro rata share (based upon the amount of consideration
received) of any liability for misrepresentation or indemnity and such liability shall not exceed the total purchase price received by such Compelled Seller for his shares of the Corporation’s capital stock (including the exercise price
thereof). 
  
 (c) “Sale” of the Corporation shall
mean (i) the sale of all or substantially all of the Corporation’s assets to an individual, partnership, corporation, group, limited liability company, trust or other legal entity (a “Person”) who is not a Person that, directly
or indirectly, through one or more intermediaries, controls, or is controlled by, or is in common control with, the Corporation (an “Affiliate”), (ii) the sale or transfer of the outstanding capital stock of the Corporation to one
or more Persons who are not Affiliates of the Corporation, or (iii) the merger or consolidation of the Corporation with or into another Person who is not an Affiliate of the Corporation, in each case in clauses (ii) and (iii) above under
circumstances in which the holders of the voting power of the outstanding capital stock of the Corporation, immediately prior to such transaction, own less than 50% in voting power of the outstanding capital stock of the Corporation or the surviving
or resulting corporation or acquirer, as the case may be, immediately following such transaction. A sale (or multiple related sales) of one or more subsidiaries of the Corporation (whether by way of merger, consolidation, reorganization or sale of
all or substantially all assets or securities) which constitutes all or substantially all of the consolidated assets of the Corporation shall be deemed a Sale of the Corporation. 
  
 Section 16. Covenants of the Corporation. The Corporation covenants and agrees with each of the Purchasers and
Stockholders that for so long as any shares of Preferred Stock are outstanding: 
  
 (a) Properties, Business, Insurance. The Corporation shall maintain and cause each of its subsidiaries to maintain as to their respective properties and business, with financially sound and reputable insurers,
insurance against such casualties and contingencies and of such types 
  

 15 

 and in such amounts as is customary for companies similarly situated, which insurance shall be deemed by the Corporation
to be sufficient. If requested by Purchasers holding at least a majority of the outstanding Preferred Shares, the Corporation will add one designee of such Purchasers as a notice party for each such policy and shall request that the issuer of each
policy provide such designee with ten (10) days’ notice before such policy is terminated (for failure to pay premiums or otherwise) or assigned or before any change is made in the beneficiary thereof. 
  
 (b) Restrictive Agreements Prohibited. Neither the Corporation nor any
of its subsidiaries shall become a party to any agreement which by its terms restricts the Corporation’s performance of this Agreement, the Series G Agreement, the Transaction Documents (as defined in the Series G Agreement) or the
Corporation’s Certificate of Incorporation or Bylaws. 
  
 (c)
Transactions with Affiliates. Except for transactions contemplated by this Agreement or as otherwise approved by the Board of Directors, neither the Corporation nor any of its subsidiaries shall enter into any transaction with any director,
officer, employee or holder of more than five percent (5%) of the outstanding capital stock of any class or series of capital stock of the Corporation or any of its subsidiaries, member of the family of any such person, or any corporation,
partnership, trust or other entity in which any such person, or member of the family of any such person, is a director, officer, trustee, partner or holder of more than five percent (5%) of the outstanding capital stock thereof, except for
transactions on customary terms related to such person’s employment. 
  
 (d) Expenses of Directors. The Corporation shall promptly reimburse in full, each director of the Corporation who is not an employee of the Corporation and who was elected as a director solely or in part by the
holders of the Preferred Shares, for all of his reasonable out-of-pocket expenses incurred in attending each meeting of the Board of Directors of the Corporation or any Committee thereof. 
  
 (e) Bylaws. The Corporation shall at all times maintain provisions in its Bylaws and/or Certificate indemnifying all
directors against liability and absolving all directors from liability to the Corporation and its stockholders to the maximum extent permitted under the laws of the State of Delaware. 
  
 (f) Performance of Contracts. The Corporation shall not amend, modify, terminate, waive or otherwise alter, in whole
or in part, either the Amended and Restated Founders’ Agreement or the Nondisclosure and Developments Agreements, by and among the Corporation and Ronald M. Kurtz, M.D. and Tibor Juhasz, without the prior written consent of a majority of the
members of the Corporation’s Board of Directors elected solely by the holders of the Preferred Shares. 
  
 (g) Employee Nondisclosure and Developments Agreements. The Corporation shall obtain, and shall cause its subsidiaries to obtain, an Employee
Proprietary Information Agreement in substantially the form of Exhibit E from all future officers, key employees and other employees who will have access to confidential information of the Corporation or any of its subsidiaries, upon their
employment by the Corporation or any of its subsidiaries or by the University of Michigan pursuant to any agreement between the University of Michigan and the Corporation. 
  

 16 

 (h) Compliance with Laws. The Corporation shall comply, and cause each subsidiary to comply, with
all applicable laws, rules, regulations and orders, noncompliance with which could materially adversely affect its business or condition, financial or otherwise. 
  
 (i) Keeping of Records and Books of Account. The Corporation shall keep, and cause each subsidiary to keep, adequate
records and books of account, in which complete entries will be made in accordance with GAAP, reflecting all financial transactions of the Corporation and such subsidiary, and in which, for each fiscal year, all proper reserves for depreciation,
depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its business shall be made. 
  
 (j) Reserve for Conversion Shares. The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of
Common Stock, for the purpose of effecting the conversion of the Preferred Shares and otherwise complying with the terms of this Agreement, such number of its duly authorized shares of Common Stock as shall be sufficient to effect the conversion of
the Preferred Shares from time to time outstanding or otherwise to comply with the terms of this Agreement. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the conversion of the Preferred
Shares or otherwise to comply with the terms of this Agreement, the Corporation will forthwith take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of share as shall be
sufficient for such purposes. The Corporation will obtain any authorization, consent, approval or other action by or make any filing with any court or administrative body that may be required under applicable state securities laws in connection with
the issuance of shares of Common Stock upon conversion of the Preferred Shares. 
  
 (k) Termination of Covenants. The covenants set forth in this Section 16 shall terminate and be of no further force or effect as to each of the Purchasers (and any other Purchaser which is an affiliate of such
Purchaser) when such Purchaser owns less than one hundred thousand (100,000) Preferred Shares (appropriately adjusted to reflect stock splits, stock dividends, combinations of shares and the like with respect to the Preferred Shares). 
  
 (l) Intangible Rights. The Corporation will make all filings and
applications and take any other steps which, in the opinion of the Corporation’s legal counsel, and subject to the consent of the Corporation’s board of directors, are necessary to protect the Corporation’s interests in the intangible
rights that are necessary or appropriate for the conduct of its business, including licenses, permits, franchises, concessions, patents, inventions, trademarks, servicemarks, trade names, trade secrets, and copyrights. The Corporation will register
its ownership of every patent that it owns by assignment with the United States Patent and Trademark Office. 
  
 (m) Small Business Stock. The Corporation shall take those steps necessary to assure that the Preferred Shares and the Conversion Shares are
qualified small business stock for purposes of Section 1202 of the Code. 
  
 (n) Visitation Rights. The Corporation shall allow one representative designated by each of Domain Partners IV, L.P. and Meritech Capital Partners II L.P. to attend all meetings of the Corporation’s Board
of Directors in a nonvoting capacity, and in connection therewith, the Corporation shall give such representative copies of all notices, minutes, consents and other materials, financial or otherwise, which the Corporation provides to its Board of
Directors; provided, however, that the Corporation reserves the right to exclude such representative from access to any 
  

 17 

 material or meeting or portion thereof if the Corporation believes upon advice of counsel that such exclusion is
reasonably necessary to preserve the attorney-client privilege, to protect highly confidential proprietary information or for other similar reasons. 
  
 (o) Activities of Subsidiaries. The Corporation shall not permit any subsidiary to consolidate or merge into or with or sell or transfer all or
substantially all its assets, except that any subsidiary may (i) consolidate or merge into or with or sell or transfer assets to any other subsidiary, or (ii) merge into or sell or transfer assets to the Corporation. The Corporation shall not sell
or otherwise transfer any shares of capital stock of any subsidiary, except to the Corporation or another subsidiary, or permit any subsidiary to issue, sell or otherwise transfer any shares of its capital stock or the capital stock of any
subsidiary, except to the Corporation or another subsidiary. The Corporation shall not permit any subsidiary to purchase or set aside any sums for the purchase of, or pay any dividend or make any distribution on, any shares of its stock, except for
dividends or other distributions payable to the Corporation or another subsidiary. 
  
 (p) Contractual Defaults. The Corporation will not permit to exist any default or breach by the Corporation or any subsidiary of any contract provision beyond any period of grace provided for in any contract to
which the Corporation or any subsidiary is a party, if the default or breach will result in an amount in excess of one hundred thousand dollars ($100,000) becoming due and payable by the Corporation or any subsidiary prior to its date of maturity,
or if the default or breach will result in the loss of any rights of the Corporation or any subsidiary to intellectual property or other valuable rights. However, the existence of any default or breach may be contested in good faith by the
Corporation or any subsidiary by appropriate proceedings if adequate reserves (as determined in accordance with GAAP) have been established on its books with respect to the contested default or breach. 
  
 (q) Stock Vesting. Unless otherwise approved by the Board of
Directors, all stock options and other stock equivalents issued after the date of this Agreement to employees directors, consultants and other service providers shall be subject to vesting as follows: (a) twenty-five percent (25%) of such stock
shall vest at the end of the first year following the earlier of the date of issuance or such person’s services commencement date with the Corporation and (b) seventy-five percent (75%) of such stock shall vest over the remaining three (3)
years. With respect to any shares of stock purchased by any such person, the Corporation’s repurchase option shall provide that upon such person’s termination of employment or service with the Corporation, with or without cause, the
Corporation or its assignee (to the extent permissible under applicable securities laws and other laws) shall have the option to purchase at cost any unvested share of stock held by such person. 
  
 (r) Assignment of Right of First Refusal. In the event the Corporation
elects not to exercise its right of first refusal pursuant to Article 7 of the Bylaws of the Corporation, the Corporation shall, to the extent it may do so, assign such right of first refusal to each Purchaser. In the event of such assignment, each
Purchaser shall have a right to purchase its Pro Rata Fraction (as defined in Section 2(d) of that certain Amended and Restated Co-Sale Agreement dated of even date with this Agreement by and among the Corporation, the Preferred Holders and the
Founders (as set forth therein)) of the capital stock proposed to be transferred. 
  
 Section 17. Miscellaneous. 
  
 (a) Successors and Assigns. All covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the 
  

 18 

 respective successors and assigns of the parties hereto (including without limitation transferees of any Preferred
Shares, Restricted Stock, or the Common Stock Warrant) whether so expressed or not, provided, however, that registration rights conferred herein on the holders of Preferred Shares, Restricted Stock, or the Common Stock Warrant, shall only
inure to the benefit of a transferee of Preferred Shares, Restricted Stock, or the Common Stock Warrant if (i) there is transferred to such transferee at least forty percent (40%) of the total shares of Preferred Shares, Restricted Stock, or the
Common Stock Warrant originally issued to the direct or indirect transferor of such transferee or (ii) such transferee is a partner, shareholder or affiliate of a party hereto. 
  
 (b) Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter, including, but not limited to, the Prior Registration Rights Agreement. 
  
 (c) Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be delivered in person, mailed by certified or registered mail, return receipt requested, or sent by telecopier or telex, addressed as follows: if to the Corporation or any other party hereto, at the address
of such party set forth in the Purchase Agreement; if to any subsequent holder of Preferred Shares or Restricted Stock, to it at such address as may have been furnished to the Corporation in writing by such holder; or, in any case, at such other
address or addresses as shall have been furnished in writing to the Corporation (in the case of a holder of Preferred Shares or Restricted Stock) or to the holders of Preferred Shares or Restricted Stock (in the case of the Corporation) in
accordance with the provisions of this paragraph. 
  
 (d)
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard for conflicts of laws principles. 
  
 (e) Amendment. This Agreement may not be amended or modified, and no provision hereof may be waived, without the
written consent of the Corporation and the holders of at least sixty six and two-thirds percent (66 2/3%) of the
outstanding shares of Restricted Stock; provided, however, that for the purposes of this subsection, any amendment or modification of this Agreement which shall reduce or eliminate any right of a Stockholder shall require the consent of
Stockholders owning at least sixty six and two-thirds percent (66 2/3%) of the Stockholder Shares. In addition,
notwithstanding the above, Section 15 may not be amended or modified and no provision thereof may be waived without the written consent of at least sixty six and two-thirds percent (66 2/3%) of the Preferred Shares, and at least sixty six and two-thirds percent (66 2/3%) of the outstanding shares of capital stock then held by all Other Stockholders. 
  
 (f) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
  
 (g) Termination of Registration Rights. The obligations of the Corporation to register shares of Restricted Stock under Sections 5 or 6 shall terminate on the seventh anniversary of the effectiveness of the
Corporation’s initial public offering. 
  
 (h)
Lock-up. If requested in writing by the underwriters for the initial underwritten public offering of securities of the Corporation, each holder of Restricted Stock who is a party to this Agreement shall agree not to sell publicly any shares
of Restricted Stock or any other 
  

 19 

 shares of Common Stock (other than shares of Restricted Stock or other shares of Common Stock being registered in such
offering), without the consent of such underwriters, for a period of not more than one hundred eighty (180) days following the effective date of the registration statement relating to such offering; provided, however, that all persons
entitled to registration rights with respect to shares of Common Stock who are not parties to this Agreement, all other persons selling shares of Common Stock in such offering, all persons holding in excess of two percent (2%) of the capital stock
of the Corporation on a fully diluted basis and all executive officers and directors of the Corporation shall also have agreed not to sell publicly their Common Stock under the circumstances and pursuant to the terms set forth in this Section 17(h).

  
 (i) No Registration. Notwithstanding the provisions of
Section 7(a), the Corporation’s obligation to file a registration statement, or cause such registration statement to become and remain effective, shall be suspended if there exists at the time material non-public information relating to the
Corporation which, in the reasonable opinion of the Corporation, should not be disclosed. 
  
 (j) Severability. If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, such illegality, invalidity or unenforceability shall attach only to such provision and shall not in
any manner affect or render illegal, invalid or unenforceable any other provision of this Agreement, and this Agreement shall be carried out as if any such illegal, invalid or unenforceable provision were not contained herein. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 20 

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

			
	 CORPORATION:

	
	 INTRALASE CORP.

		
	 By:
	 	     /s/ Randy Alexander

	 	 	 Randy Alexander, President

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-1 

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

			
	 VERSANT VENTURE CAPITAL I, L.P.

		
	 By:
	 	 VERSANT VENTURES I, L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Donald B. Milder

	 	 	 Donald B. Milde, Managing Director

	
	 VERSANT AFFILIATES FUND I-A, L.P.

		
	 By:
	 	 VERSANT VENTURES I, L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Donald B. Milder

	 	 	 Donald B. Milde, Managing Director

	
	 VERSANT AFFILIATES FUND I-B, L.P.

		
	 By:
	 	 VERSANT VENTURES I, L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Donald B. Milder

	 	 	 Donald B. Milde, Managing Director

	
	 VERSANT SIDE FUND I, L.P.

		
	 By:
	 	 VERSANT VENTURES I, L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Donald B. Milder

	 	 	 Donald B. Milde, Managing Director

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-2 

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

			
	 MERITECH CAPITAL PARTNERS II L.P.

		
	 By:
	 	 MERITECH CAPITAL ASSOCIATES II L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 MERITECH MANAGEMENT ASSOCIATES II L.L.C.,
 a managing member

		
	 By:
	 	 /s/ Michael B. Gordon

	 	 	 Michael B. Gordon, a managing member

	
	 MERITECH CAPITAL AFFILIATES II L.P.

		
	 By:
	 	 MERITECH CAPITAL ASSOCIATES II L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	MERITECH MANAGEMENT ASSOCIATES II L.L.C., a managing member
		
	 By:
	 	 /s/ Michael B. Gordon

	 	 	 Michael B. Gordon, a managing member

	
	 MCP ENTREPRENEUR PARTNERS II L.P. FUND

		
	 By:
	 	 MERITECH CAPITAL ASSOCIATES II L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	MERITECH MANAGEMENT ASSOCIATES II L.L.C., a managing member
		
	 By:
	 	 /s/ Michael B. Gordon

	 	 	 Michael B. Gordon, a managing member

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-3 

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

			
	 INTERWEST PARTNERS VIII, L.P.

		
	 By:
	 	 /s/ Gilbert H. Kliman

	 	 	 Gilbert H. Kliman, M.D., General Partner

	
	 INTERWEST INVESTORS VIII, L.P.

		
	 By:
	 	INTERWEST MANAGEMENT PARTNERS VIII, LLC
	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Gilbert H. Kliman

	 	 	 Gilbert H. Kliman, M.D., General Partner

	
	 INTERWEST INVESTORS Q VIII, L.P.

		
	 By:
	 	INTERWEST MANAGEMENT PARTNERS VIII, LLC
	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Gilbert H. Kliman

	 	 	 Gilbert H. Kliman, M.D., General Partner

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-4 

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

			
	 DOMAIN PARTNERS IV, L.P.

		
	 By:
	 	ONE PALMER SQUARE ASSOCIATES IV, L.L.C.
	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Kathleen K. Schoemaker

	 	 	 Kathleen K. Schoemaker, Managing Member

	
	 DP IV ASSOCIATES, L.P.

		
	 By:
	 	 ONE PALMER SQUARE ASSOCIATES IV, L.L.C.

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ Kathleen K. Schoemaker

	 	 	 Kathleen K. Schoemaker, Managing Member

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-5 

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

			
	 BRENTWOOD AFFILIATES FUND II, L.P.

		
	 By:
	 	 BRENTWOOD VIII VENTURES, LLC,

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ William Link

	 	 	 William Link, Managing Member

	
	 BRENTWOOD ASSOCIATES IX, L.P.

		
	 By:
	 	 BRENTWOOD IX VENTURES, LLC,

	 Its:
	 	 GENERAL PARTNER

		
	 By:
	 	 /s/ William Link

	 	 	 William Link, Managing Member

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-6 

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

					
	 ENTERPRISE DEVELOPMENT FUND II,

	 LIMITED PARTNERSHIP

		
	 By:
	 	 ENTERPRISE VENTURES, L.P.,

	 Its:
	 	 GENERAL PARTNER

			
	 	 	 By:
	 	 EDM, INC.,

	 	 	 Its:
	 	 GENERAL PARTNER

			
	 	 	 By:
	 	         /s/ Thomas S. Porter

	 	 	 	 	 Thomas S. Porter,

	 	 	 	 	 Vice-President and Secretary

	
	 EDF VENTURES, LIMITED PARTNERSHIP

		
	 By:
	 	 ENTERPRISE VENTURES III, L.P.,

	 Its:
	 	 GENERAL PARTNER

			
	 	 	 By:
	 	 EDM III, INC.,

	 	 	 Its:
	 	 GENERAL PARTNER

			
	 	 	 By:
	 	         /s/ Thomas S. Porter

	 	 	 	 	 Thomas S. Porter,

	 	 	 	 	 Vice-President and Secretary

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-7 

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

	
	 STEVEN SLADE

	
	 /s/ Steven Slade

	 Steven Slade

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-8 

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

			
	 REGENTS OF THE UNIVERSITY OF MICHIGAN,

	 WOLVERINE VENTURE FUND

		
	 By:
	 	 /s/ David T. Shelby

	 	 	 David T. Shelby, Manager

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-9 

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

	
	 TIBOR JUHASZ

	
	 /s/ Tibor Juhasz

	 Tibor Juhasz

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-10 

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

	
	 RONALD M. KURTZ

	
	 /s/ Ronald M. Kurtz

	 Ronald M. Kurtz

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-11 

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

					
	VENTURE INVESTORS EARLY STAGE FUND III, L.P.
		
	 By:
	 	VENTURE INVESTORS MANAGEMENT, LLC
	 Its:
	 	 MANAGING PARTNER

			
	 	 	 By:
	 	     /s/ Roger H. Ganser

	 	 	 	 	 Roger H. Ganser, Managing Partner

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-12 

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

	
	 RONALD M. KURTZ AND JENNIFER SIMPSON

	
	 /s/ Ronald M. Kurtz

	 Ronald M. Kurtz

	
	 and

	
	 /s/ Jennifer Simpson

	 Jennifer Simpson

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-13 

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

			
	 ESCALON MEDICAL CORP.

		
	 By:
	 	 /s/ Richard J. DePiano

	 	 	 Richard J. DePiano

	 	 	 Chairman and Chief Executive Officer

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-14 

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

			
	 REGENTS OF THE UNIVERSITY OF MICHIGAN

		
	 By:
	 	     /s/ Norman Herbert

	 	 	     Norman Herbert

	 	 	     Associate Vice President and Treasurer

		
	 By:
	 	     /s/ Robert Kasdin

	 	 	     Robert Kasdin

	 	 	    Executive Vice President & Chief Financial     Officer

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-15 

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

	
	 PAUL R. DESTEFANO

	
	 /s/ Paul R. DeStefano

	 Paul R. DeStefano

	
	PAUL R. DESTEFANO AND GRETCHEN VON GUSTLIN
	
	 /s/ Paul R. DeStefano

	 Paul R. DeStefano

	
	 and

	
	 /s/ Gretchen von Gustlin

	 Gretchen von Gustlin

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-16 

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

			
	 PAMELA EQUITIES CORP.

		
	 By:
	 	 /s/ Gregory Manocherian

	 	 	 Gregory Manocherian, President

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-17 

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

			
	 P & E VENTURES

		
	 By:
	 	     /s/ Paul R. DeStefano

	 	 	 Paul R. DeStefano, Partner

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-18 

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

	
	 J. RANDY ALEXANDER

	
	 /s/ J. Randy Alexander

	 J. Randy Alexander

	
	JAMES R. ALEXANDER LIVING TRUST DATED DECEMBER 29, 1998
	
	 /s/ J. Randy Alexander

	 J. Randy Alexander

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-19 

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

	
	 KEVIN COUSINS

	
	 /s/ Kevin Cousins

	 Kevin Cousins

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-20 

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

	
	 JUDY GORDON

	
	 /s/ Judy Gordon

	 Judy Gordon

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-21 

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

	
	 ERIC WEINBERG

	
	 /s/ Eric Weinberg

	 Eric Weinberg

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-22 

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

	
	 GREG J. SPOONER

	
	 /s/ Greg J. Spooner

	 Greg J. Spooner

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-23 

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

	
	 MICHAEL J. PARTSCH

	
	 /s/ Michael J. Partsch

	 Michael J. Partsch

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-24 

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

	
	 CHRISTOPHER HORVATH

	
	 /s/ Christopher Horvath

	 Christopher Horvath

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-25 

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

	
	 SCOTT PATTERSON

	
	 /s/ Scott Patterson

	 Scott Patterson

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-26 

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

	
	 AN-CHUN TIEN

	
	 /s/ An-Chun Tien

	 An-Chun Tien

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-27 

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

	
	 CAMLYN MURRAY

	
	 /s/ Camlyn Murray

	 Camlyn Murray

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-28 

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

	
	 PETER GOLDSTEIN

	
	 /s/ Peter Goldstein

	 Peter Goldstein

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-29 

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

	
	 LASZLO NAGY

	
	 /s/ Laszlo Nagy

	 Laszlo Nagy

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-30 

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

	
	 MICHAEL F. BROWNELL TRUSTEE OF THE
 MICHAEL
BROWNELL ANNUITY TRUST NO. 1,
 UDT DATED JANUARY 29, 2001

	
	 /s/ Michael F. Brownell

	 Michael F. Brownell, Trustee

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-31 

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

	
	MICHAEL F. BROWNELL AND NANCY K. BROWNELL, TRUSTEES BROWNELL FAMILY TRUST U/D/T 10-05-00
	
	 /s/ Michael F. Brownell

	 Michael F. Brownell, Trustee

	
	 /s/ Nancy K. Brownell

	 Nancy K. Brownell, Trustee

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-32 

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

	
	NANCY BROWNELL, TRUSTEE OF THE NANCY BROWNELL ANNUITY TRUST NO. 1, UDT DATED JANUARY 29, 2001
	
	 /s/ Nancy K. Brownell

	 Nancy K. Brownell, Trustee

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-33 

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

	
	 MICHAEL F. BROWNELL

	
	 /s/ Michael F. Brownell

	 Michael F. Brownell

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-34 

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

	
	 ROBERT WASNIEWSKI

	
	 /s/ Robert Wasniewski

	 Robert Wasniewski

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-35 

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

	
	 ROBERT OZARSKI

	
	 /s/ Robert Ozarski

	 Robert Ozarski

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-36 

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

	
	 R. KYLE WEBB

	
	 /s/ R. Kyle Webb

	 R. Kyle Webb

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-37 

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

	
	 RONALD L. HUENEKE

	
	 /s/ Ronald L. Hueneke

	 Ronald L. Hueneke

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-38 

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

	
	 SHELLEY B. THUNEN

	
	 /s/ Shelley B. Thunen

	 Shelley B. Thunen

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-39 

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

	
	 G. SCOTT SCHOLLER

	
	 /s/ G. Scott Scholler

	 G. Scott Scholler

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-40 

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

	
	 ALAN JUNOR

	
	 /s/ Alan Junor

	 Alan Junor

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-41 

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

	
	 TED MARKS

	
	 /s/ Ted Marks

	 Ted Marks

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-42 

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

	
	 BARTON VENABLE

	
	 /s/ Barton Venable

	 Barton Venable

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-43 

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

	
	 ED BALCOS

	
	 /s/ Ed Balcos

	 Ed Balcos

  
 [Signature Page
to Registration Rights Agreement] 
  

 S-44 

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

	
	 LAZLO ROMADA

	
	 /s/ Lazlo Romada

	 Lazlo Romada

  
 [Signature Page
to Registration Rights Agreement] 
  
  

 S-45 

 SCHEDULE I 
  

PREFERRED HOLDERS 
  
 Brentwood Associates IX, L.P. 
 Brentwood Affiliates Fund II, L.P. 

Domain Partners IV, L.P. 
 DP IV Associates, L.P. 
 EDF Ventures, Limited Partnership 
 Enterprise Development Fund II, Limited
Partnership 
 Escalon Medical Corp. 
 Interwest Partners VIII,
L.P. 
 Interwest Investors Q VIII, L.P. 
 Interwest Investors
VIII, L.P. 
 Meritech Capital Partners II L.P. 
 Meritech Capital
Affiliates II L. P. 
 MCP Entrepreneur Partners II L.P. Fund 
 P
& E Ventures 
 Pamela Equities Corp. 
 Paul R. DeStefano

 P & E Ventures 
 Paul R. DeStephano & Gretchen von
Gustlin 
 Regents of the University of Michigan 
 Steven
Slade 
 Venture Investors Early Stage Fund III, L.P. 
 Versant Venture Capital I, L.P. 
 Versant Affiliates Fund I-A, L.P. 
 Versant Affiliates Fund I-B, L.P. 
 Versant Side Fund I, L.P. 
 Wolverine Venture Fund 
  

 I-1 

 SCHEDULE II 
  
 STOCKHOLDERS 
  
 Tibor Juhasz 
 Ronald M. Kurtz/Jennifer Simpson 
  
  

 II-1 

 SCHEDULE III 
  
 OTHER STOCKHOLDERS 
  
 [Ron M. Kurtz & Jennifer Simpson 
 Ronald M. Kurtz 
 Tibor Juhasz 
 Escalon Medical Corp. 
 Regents of the University of Michigan 
 Kevin Cousins 
 Judy Gordon 
 Greg J. Spooner 
 Michael J. Partsch 
 Christopher Horvath 
 Michael F. Brownell and Nancy K. Brownell, Trustees Brownell Family Trust U/D/T 10-05-00, as amended 
 Scott Paterson 
 An-Chun Tien 
 Camlyn Murray 
 Peter Goldstein 
 Laszlo Nagy

 Michael F. Brownell, Trustee of the Michael Brownell Annuity Trust No. 1, UDT dated January 29, 2001 
 Robert Wasniewski 
 Robert Ozarski 
 Michael F. Brownell 
 Ronald L. Hueneke 
 R. Kyle Webb 
 Alan Junor 
 Ted Marks 
 Barton D. Venable 
 Ed Balcos 
 Laszlo Romada 
 James R. Alexander Living Trust Dated 12/29/98 
 Shelley B. Thunen 

G. Scott Scholler 
 Michael Brownell Annuity Trust #1 U.D.T. January 29,
2001 
 Nancy Brownell Annuity Trust #1 U.D.T. January 29, 2001 
 The Brownell Family Trust U.D.T. October 5, 2000 
 J. Randy Alexander 
 Eric Weinberg 
 G. Scott Scholler and S. Gaye Scholler, as Trustees of the Scholler Family Trust U/D/T 8/31/00] 

 

 III-1

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