Document:

EXHIBIT10.22

 Exhibit 10.22 
 EXECUTION VERSION 
 AGREEMENT OF SALE AND PURCHASE 
 between 
 57TH STREET OWNER,
LLC, 
 a Delaware limited liability company 
 “Seller” 
 and 
 APPLE EIGHT HOSPITALITY OWNERSHIP, INC., 
 a Virginia corporation 
 “Buyer” 
 with Escrow Instructions
for 
 LandAmerica American Title Company, 
 as Escrow Agent 

 TABLE OF CONTENTS 
 and 
 LIST OF EXHIBITS AND SCHEDULES 
  

					
	  	 	 	  	Page
	 ARTICLE 1
	 	CERTAIN DEFINITIONS	  	1
			
	    Section 1.1	 	Definitions	  	1
			
	    Section 1.2	 	Rules of Construction	  	11
			
	 ARTICLE 2
	 	AGREEMENT OF PURCHASE AND SALE; PURCHASE PRICE	  	11
			
	    Section 2.1	 	Agreement to Purchase and Sell	  	11
			
	    Section 2.2	 	Purchase Price	  	12
			
	    Section 2.3	 	Deposit	  	12
			
	    Section 2.4	 	Independent Consideration	  	12
			
	    Section 2.5	 	Intentionally Omitted	  	12
			
	    Section 2.6	 	Assumption of Obligations	  	12
			
	 ARTICLE 3
	 	BUYER’S DUE DILIGENCE	  	13
			
	    Section 3.1	 	Buyer’s Inspections and Due Diligence	  	13
			
	    Section 3.2	 	Delivery Period	  	14
			
	    Section 3.3	 	Site Visits	  	14
			
	    Section 3.4	 	Buyer’s Due Diligence Indemnity	  	15
			
	    Section 3.5	 	Confidentiality	  	15
			
	    Section 3.6	 	Due Diligence Period	  	16
			
	    Section 3.7	 	Contracts	  	16
			
	 ARTICLE 4
	 	TITLE AND SURVEY	  	17
			
	    Section 4.1	 	Title to Real Property	  	17
			
	    Section 4.2	 	Certain Exceptions to Title	  	18

  

 i 

							
	    Section 4.3	 	Title Insurance	  	18
			
	 ARTICLE 5
	 	 REMEDIES AND DEPOSIT INSTRUCTIONS
	  	19
			
	    Section 5.1	 	Permitted Termination; Seller Default	  	19
			
	    Section 5.2	 	BUYER DEFAULT; LIQUIDATED DAMAGES	  	19
			
	    Section 5.3	 	Deposit Instructions	  	20
			
	    Section 5.4	 	Designation of Reporting Person	  	21
			
	    Section 5.5	 	Claim of Default	  	22
			
	 ARTICLE 6
	 	 REPRESENTATIONS AND WARRANTIES OF SELLER
	  	26
			
	    Section 6.1	 	Representations and Warranties of Seller	  	26
			
	    Section 6.2	 	Limited Liability	  	31
			
	    Section 6.3	 	Seller’s Knowledge	  	32
			
	    Section 6.4	 	Liability of Representations and Warranties	  	32
			
	 ARTICLE 7
	 	 REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER
	  	32
			
	    Section 7.1	 	Buyer’s Representations and Warranties	  	32
			
	    Section 7.2	 	[Intentionally Omitted.]	  	33
			
	    Section 7.3	 	Buyer’s Independent Investigation	  	33
			
	    Section 7.4	 	Buyer’s Release of Seller	  	36
				
		 	 (a)
	  	Seller Released From Liability	  	36
				
		 	 (b)
	  	Survival	  	36
			
	    Section 7.5	 	Discharge	  	36
			
	    Section 7.6	 	Union Agreements	  	36
			
	    Section 7.7	 	Multiemployer Pension Plan	  	37
			
	 ARTICLE 8
	 	 LEASES; MAINTENANCE OF PROPERTY
	  	40
			
	    Section 8.1	 	New Leases; Lease Modifications	  	40
			
	    Section 8.2	 	Lease Expenses	  	40

  

 ii 

							
	    Section 8.3	 	Lease Enforcement	  	41
			
	    Section 8.4	 	Certain Interim Operating Covenants	  	41
			
	    Section 8.5	 	[Intentionally Omitted]	  	41
			
	    Section 8.6	 	Post-Closing Receipt of Rents	  	42
			
	ARTICLE 9	 	 CLOSING AND CONDITIONS
	  	42
			
	    Section 9.1	 	Escrow Instructions	  	42
			
	    Section 9.2	 	Closing	  	42
			
	    Section 9.3	 	Seller’s Closing Documents and Other Items	  	43
			
	    Section 9.4	 	Buyer’s Closing Documents and Other Items	  	45
			
	    Section 9.5	 	Condition to Closing; Acceptance of the Deed	  	45
			
	    Section 9.6	 	Prorations and Closing Costs	  	46
			
	    Section 9.7	 	Brokers	  	52
			
	    Section 9.8	 	Expenses	  	52
			
	ARTICLE 10	 	 MISCELLANEOUS
	  	53
			
	    Section 10.1	 	Amendment and Modification	  	53
			
	    Section 10.2	 	Risk of Loss/Condemnation and Insurance Proceeds/Condemnation Awards	  	53
				
		 	 (a)
	  	Minor Loss/Condemnation	  	Error! Bookmark not defined.
				
		 	 (b)
	  	Major Loss/Condemnation	  	Error! Bookmark not defined.
			
	    Section 10.3	 	Notices	  	54
			
	    Section 10.4	 	Assignment	  	55
			
	    Section 10.5	 	Governing Law and Consent to Jurisdiction	  	56
			
	    Section 10.6	 	Counterparts	  	56
			
	    Section 10.7	 	Entire Agreement	  	56
			
	    Section 10.8	 	Severability	  	56
			
	    Section 10.9	 	Attorney Fees	  	56

  

 iii 

					
	Section 10.10	 	Payment of Fees and Expenses	  	56
			
	Section 10.11	 	Confidential Information	  	57
			
	Section 10.12	 	Performance Due On Day Other Than Business Day	  	57
			
	Section 10.13	 	[Intentionally Omitted]	  	57
			
	Section 10.14	 	No Joint Venture	  	58
			
	Section 10.15	 	No Memorandum	  	58
			
	Section 10.16	 	Waiver of Jury Trial	  	58
			
	Section 10.17	 	Not an Offer	  	58
			
	Section 10.18	 	Limited Liability	  	58
			
	Section 10.19	 	No Third Party Beneficiaries	  	58
			
	Section 10.20	 	Time of Essence	  	58
			
	Section 10.21	 	No Waiver	  	58
			
	Section 10.22	 	Further Acts	  	59
			
	Section 10.23	 	Failure to be Qualified in New York	  	59

  

 iv 

 EXHIBITS AND SCHEDULES 
  

			
	 Exhibit “A”
	 	Description of Land for Hotel 57
		
	 Exhibit “B”
	 	List of Leases
		
	 Exhibit “C”
	 	Disclosure Items
		
	 Exhibit “D”
	 	List of Service and Other Contracts
		
	 Exhibit “E”
	 	Form of Assignment and Assumption of the Ground Lease
		
	 Exhibit “F”
	 	Form of Bill of Sale
		
	 Exhibit “G”
	 	Form of Assignment and Assumption of Leases
		
	 Exhibit “H”
	 	Form of Assignment and Assumption of Contracts
		
	 Exhibit “I”
	 	Description of Existing Surveys
		
	 Exhibit “J”
	 	The Ground Lease
		
	 Exhibit “K”
	 	Form of FIRPTA Certificate
		
	 Exhibit “L”
	 	Form of Notice to Tenants
		
	 Exhibit “M”
	 	Rent Roll
		
	 Exhibit “N”
	 	Work to Be Performed; Contribution Payments to be Made; Brokerage Fees to be Paid
		
	 Exhibit “O”
	 	Data Room Index
		
	 Exhibit “P”
	 	Data Room Items Not Provided
		
	 Exhibit “Q”
	 	Post-Closing Agreement
		
	 Exhibit “R”
	 	Pending Tax Proceedings
		
	 Exhibit “S”
	 	Security Deposits
		
	 Exhibit “T”
	 	Intentionally Omitted
		
	 Exhibit “U”
	 	Intentionally Omitted
		
	 Exhibit “V”
	 	Form of Title Affidavit
		
	 Exhibit “W”
	 	Form of Tenant Estoppel
		
	 Exhibit “X”
	 	Bookings

  

 v 

			
		
	 Exhibit “Y”
	 	Benefit Plans and Programs and Employee Information
		
	 Exhibit “Z”
	 	ERISA Affiliates

  

 vi 

 AGREEMENT OF SALE AND PURCHASE 
 THIS AGREEMENT OF SALE AND PURCHASE (this “Agreement”), dated as of November 15, 2007, is between 57TH STREET OWNER, LLC, a
Delaware limited liability company (“Seller”), and APPLE EIGHT HOSPITALITY OWNERSHIP, INC., a Virginia corporation (together with its permitted successors and assigns “Buyer”). 
 ARTICLE 1 
 CERTAIN DEFINITIONS

 Section 1.1 Definitions. The parties hereby agree that the following terms shall have the meanings hereinafter
set forth, such definitions to be applicable equally to the singular and plural forms, and to the masculine and feminine forms, of such terms: 
 “Action” shall have the meaning ascribed in Section 10.16. 
 “Additional Deposit” shall have
the meaning ascribed in Section 2.3. 
 “Additional Rent Expenses” shall have the meaning ascribed in
Section 9.6(c). 
 “Additional Rents” shall have the meaning ascribed in Section 9.6(c). 
 “Additional Rents Reconciliation” shall have the meaning ascribed in Section 9.6(c). 
 “Additional Rents Reconciliation Period” shall have the meaning ascribed in Section 9.6(c). 
 “Adjourned Closing Date” shall have the meaning ascribed in Section 3.8. 
 “Adverse Effect” shall have the meaning ascribed in Section 5.5(b). 
 “Affiliate” shall mean any person or entity that directly, or indirectly through one or more intermediaries, controls, is controlled by
or is under common control with Buyer or Seller, as the case may be. For the purposes of this definition, “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a
person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have the meanings correlative to the foregoing. 
 “Agreement” shall mean this Agreement, as the same may be amended, modified, or supplemented from time to time in writing by the parties
hereto. 
 “Assignment and Assumption of Contracts” shall have the meaning ascribed in Section 9.3(d). 
 “Assignment and Assumption of Contracts” shall have the meaning ascribed in Section 9.3(d). 
  

 1 

 “Assignment and Assumption of the Ground Lease” shall have the meaning ascribed in
Section 9.3(d). 
 “Assignment and Assumption of Leases” shall have the meaning ascribed in Section 9.3(c).

 “Bill of Sale” shall have the meaning ascribed in Section 9.3(b). 
 “Bookings” means the contracts or reservations for the use of guest rooms, banquet facilities, restaurants or meeting rooms of the
Property, together with any deposits received in connection therewith. 
 “Broker” shall mean Eastdil Secured, L.L.C.

 “Broker’s Commission” shall have the meaning ascribed in Section 9.7. 
 “BSA” shall have the meaning ascribed in Section 6.1(m). 
 “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which banking institutions in the State of New York
are authorized or obligated by law or executive order to close. 
 “Buyer’s Accountant” shall have the meaning ascribed
in Section 10.13. 
 “Casualty” shall have the meaning ascribed in Section 10.2(a). 
 “Claim” shall have the meaning ascribed in Section 5.6(a). 
 “Claim Notice” shall have the meaning ascribed in Section 5.6(b). 
 “Claimed Damage” shall have the meaning ascribed in Section 5.6(b). 
 “Close Associate” is a person who is widely and publicly known to maintain an unusually close relationship with a Senior Foreign
Political Figure, and includes a Person who is in a position to conduct substantial United States and non-United States financial transactions on behalf of the Senior Foreign Political Figure. 
 “Closing” shall have the meaning ascribed in Section 9.2. 
 “Closing Date” shall mean the date on which the Closing shall occur, but in no event later than the date set forth in Section 9.2,
as to which date time shall be of the essence. 
 “Closing Statement” shall have the meaning ascribed in
Section 9.6(a). 
 “Code” shall have the meaning ascribed in Section 5.4. 
 “Condemnation” shall have the meaning ascribed in Section 10.2(a). 
  

 2 

 “Consumables” shall mean all of the following items located at the Property and acquired
by or on behalf of the Seller (including, to the extent, the same have been purchased to be used or sold at the Property but have not yet been delivered to the Property): the food, liquor and other beverages (including such food, liquor and other
beverages held for sale in hotel rooms at the Property), all engineering, maintenance and housekeeping supplies, including soap, cleaning materials, fuel and other materials, all unused stationery, brochures, advertising and promotional materials
and other printed items, guest supplies, bar supplies, robes, slippers, room, food and beverage linen, glassware and silverware, sundry or gift shop inventory, and all other supplies of all kinds which are held in storage and/or are available for
future use in connection with the maintenance and operation of the Property; provided the same shall be subject to re-supply, substitution, replacement and disposition in the ordinary course of business. 
 “Contract Notice” shall have the meaning ascribed in Section 3.7. 
 “Contracts” shall mean the service contracts, construction contracts, equipment leases and other contracts described in Exhibit
“D” and all other service contracts, construction contracts, equipment leases and other contracts entered into by Seller after the Effective Date with respect to the Property in accordance with Section 8.4. 
 “Contribution Period” shall have the meaning ascribed in Section 7.7(b). 
 “Current Billing Period” shall have the meaning ascribed in Section 9.6(i). 
 “Current Month” shall have the meaning ascribed in Section 9.6(c). 
 “Current Survey” shall have the meaning ascribed in Section 4.1. 
 “Current Tax Year” shall have the meaning ascribed in Section 9.6(d). 
 “Cut-Off Time” shall have the meaning ascribed in Section 9.6(a). 
 “Date Down Certificates” shall have the meaning ascribed in Section 9.4(k). 
 “Deposit” shall have the meaning ascribed in Section 2.3. 
 “Due Diligence” shall have the meaning ascribed in Section 3.1. 
 “Due Diligence Items” shall mean those items, documents and deliveries that heretofore have been, or during the Review Period shall be,
furnished to or made available to Buyer, including, without limitation, the materials in the digital data room maintained by the Broker. 
 “Effective Date” shall mean the date of this Agreement. 
 “Employee Plans” shall have the meaning
ascribed in Section 6.1(q)(iv). 
 “Employees” shall have the meaning ascribed in Section 9.6(r). 
 “Environmental Laws” means all federal, state and local environmental laws, rules, statutes, directives, binding written
interpretations, binding written policies, ordinances and 

  

 3 

 
regulations issued by any Governmental Entity and in effect as of the date of this Agreement with respect to or which otherwise pertain to or affect the Real
Property or the Improvements, or any portion thereof, the use, ownership, occupancy or operation of the Real Property or the Improvements, or any portion thereof, or Seller or Buyer, and as same have been amended, modified or supplemented from time
to time prior to the date of this Agreement, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. § 9601 et seq.), the Hazardous Substances Transportation Act (49 U.S.C. §
1802 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the Clean Air Act (42 U.S.C.
§ 7401 et seq.), the Solid Waste Disposal Act (42 U.S.C. § 6901 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), the Emergency Planning and Community Right-to-Know Act of 1986 (42 U.S.C. § 11001 et
seq.), the Radon and Indoor Air Quality Research Act (42 U.S.C. § 7401 note, et seq.), the Superfund Amendment Reauthorization Act of 1986 (42 U.S.C. § 9601 et seq.), state and local laws applicable to the same or similar subject matter,
and any and all rules and regulations which have become effective prior to the date of this Agreement under any and all of the aforementioned laws. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
 “ERISA
Affiliate” shall have the meaning ascribed in Section 6.1(q)(ii). 
 “Escrow Agent” shall mean the Title
Company. 
 “Escrow Funds” shall have the meaning ascribed in Section 5.6(d). 
 “Existing Employee Plans” shall have the meaning ascribed in Section 6.1(q)(iv). 
 “Existing Violations” shall have the meaning ascribed under the definition of “Permitted Exceptions” in this Section 1.1.

 “Fixtures” shall mean the fixtures which are located at and affixed to any of the Improvements as of the Closing Date
which are owned by Seller, but specifically excluding any trade fixtures of any Tenant under a Lease or which are owned by any third party. 
 “Gift Certificates” shall have the meaning ascribed in Section 6.1(o). 
 “Governmental
Entity” means the various governmental and quasi-governmental bodies or agencies having jurisdiction over Seller, the Real Property or the Improvements or any portion thereof. 
 “Ground Lease” shall have the meaning ascribed in Section 6.1(r). 
 “Ground Lease Assumption Evidence” shall have the meaning ascribed in Section 7.8. 
 “Ground Lease Current Billing Period” shall have the meaning ascribed in Section 9.6(k). 
  

 4 

 “Ground Lease Estoppel” shall have the meaning ascribed in Section 3.8. 

“Ground Lease Guaranty” shall have the meaning ascribed in Section 7.8. 
 “Ground Lease Guaranty Release” shall have the meaning ascribed in Section 7.8. 
 “Ground Lease Letter of Credit” shall have the meaning ascribed in Section 7.8. 
 “Ground Lease Release Obligation” shall have the meaning ascribed in Section 7.8. 
 “Ground Lease Substitution Guaranty” shall have the meaning ascribed in Section 7.8. 
 “Ground Lessor” shall have the meaning ascribed in Section 6.1(r). 
 “Ground Lessor Consent” shall have the meaning ascribed in Section 10.4. 
 “Hazardous Materials” means any pollutants, contaminants, hazardous or toxic substances, materials or wastes (including petroleum,
petroleum by-products, radon, asbestos and asbestos containing materials, polychlorinated biphenyls (“PCBs”), PCB-containing equipment, radioactive elements, infectious agents, and urea formaldehyde), as such terms are used in any
Environmental Laws (excluding solvents, cleaning fluids and other lawful substances used in the ordinary operation and maintenance of the Real Property, to the extent in closed containers). 
 “Immediate Family Member” includes the parents, siblings, spouse, children and in-laws of a Senior Foreign Political Figure. 

“Improvements” shall mean the buildings, improvements, and structures located on the Land which are owned by Seller, but shall
expressly exclude improvements and fixtures owned by any Tenant under a Lease or any other third party. 
 “Indemnified
Party” shall have the meaning ascribed in Section 5.5(c)(i). 
 “Indemnifying Party” shall have the meaning
ascribed in Section 5.5(c)(i). 
 “Independent Consideration” shall have the meaning ascribed in Section 2.4.

 “Initial Deposit” shall have the meaning ascribed in Section 2.3. 
 “Land” shall mean that certain parcel or those certain parcels of land and appurtenances thereto more particularly described on Exhibit
“A”, including Seller’s right, title and interest in and to all rights-of-way, open or proposed streets, alleys, easements, strips or gores of land adjacent to such parcels of land. 
 “Laws and Regulations” shall have the meaning ascribed under the definition of “Permitted Exceptions” in this
Section 1.1. 
 “Leases” shall mean all unexpired leases, subleases, occupancy agreements, and any other agreements for
the use, possession, or occupancy of any portions of the Real Property (including, without limitation, signage rights), or for vacating or termination of any of the 

  

 5 

 
foregoing, as of the Closing Date, including any tenant guaranties delivered in connection with any of the foregoing. The term “Leases” as used in
this Agreement shall specifically exclude any occupancy by transient hotel guests and any Bookings and the Ground Lease. 
 “Legal
Action” shall have the meaning ascribed in Section 5.5(c)(ii). 
 “Licensee Parties” shall mean those
authorized agents, contractors, consultants, and representatives of Buyer who shall inspect, investigate, test or evaluate any portion of the Property on behalf of Buyer in accordance with this Agreement. 
 “Licenses and Permits” shall mean, collectively, all licenses, permits approvals, certificates of occupancy, dedications, subdivision
maps and entitlements now or hereafter issued, approved or granted by any Governmental Entity in connection with the Real Property and Improvements, together with all renewals and modifications thereof. 
 “Liens” shall have the meaning ascribed in Section 4.2. 
 “Liquor License” shall have the meaning ascribed in Section 8.7. 
 “Losses” shall have the meaning ascribed in Section 5.6(a). 
 “Management Agreement” means that certain management agreement by and between Manager and Seller, dated November 22, 2006.

 “Manager” shall mean Citylife Hotel 57 Management LLC, a New York limited liability company. 
 “Material Breach” shall have the meaning ascribed in Section 5.6(c). 
 “Multiemployer Pension Plan” shall have the meaning ascribed in Section 7.7(a). 
 “New Leases” or “New Lease” shall mean, collectively, or singularly, any agreement concerning the use of space at the
Property entered into between the Effective Date and the Closing Date in accordance with this Agreement. 
 “OFAC” means the
U.S. Department of the Treasury’s Office of Foreign Assets Control. 
 “OFAC List” is any list of prohibited countries,
individuals, organizations and entities that is administered or maintained by OFAC, including: (i) Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001) issued by the President of the United States
(Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), any related enabling legislation or any other similar executive orders, (ii) the List of Specially Designated
Nationals and Blocked Persons (the “SDN List”) maintained by OFAC), and/or on any other similar list (“Other Lists”) maintained by OFAC pursuant to any authorizing statute, executive order or regulation, or (iii) a
“Designated National” as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515. 
  

 6 

 “Operating Expenses” shall mean operating expenses and common area maintenance charges,
including utilities, insurance, charges for taxes or other assessments, and other charges under the Leases whether deemed additional rent or otherwise, but excluding Rents. 
 “Operational Taxes” shall have the meaning ascribed in Section 9.6(q). 
 “Original Closing Date” shall have the meaning ascribed in Section 3.8. 
 “Other List” shall have the meaning given to such term in the definition of “OFAC List.” 
 “Patriot Act” shall have the meaning ascribed in Section 6.1(m). 
 “PBGC” shall have the meaning ascribed in Section 7.7(b). 
 “Permitted Exceptions” shall mean and include all of the following: 
 (i) All presently existing and future liens for unpaid real estate taxes and water and sewer charges not due and payable as of the date of the Closing,
subject to adjustment as hereinbelow provided; 
 (ii) All present and future zoning, building, environmental and other laws, ordinances,
codes, restrictions and regulations of all governmental authorities having jurisdiction with respect to the Property, including, without limitation, landmark designations and all zoning variances and special exceptions, if any (collectively,
“Laws and Regulations”); 
 (iii) All recorded covenants, restrictions, rights, easements and agreements applicable to the
Property, and all other recorded encumbrances on the Real Property, provided that any of the same first arising after the date of this Agreement shall be Permitted Exceptions only to the extent approved, or deemed approved, by Buyer pursuant to
Section 4.2; 
 (iv) Any state of facts which are shown on those certain surveys of the Property described on Exhibit “I” or
that an accurate survey of the Property would show, provided that any state of facts first arising after the date of this Agreement shall be Permitted Exceptions only to the extent approved, or deemed approved, by Buyer pursuant to Section 4.2;

 (v) Rights of tenants of the Property as tenants only pursuant to Pre-Effective Date Leases or the New Leases and of any others claiming
by, through or under such Leases ; 
 (vi) All Contracts, as set forth on Exhibit “D”, and all renewals, replacements, extensions
of same or additional Contracts that may hereafter be entered into in accordance with the terms hereof, to the extent being assumed by Buyer hereunder. 
 (vii) All violations of building, fire, sanitary, environmental, housing and similar Laws and Regulations existing on or before the Effective Date (“Existing Violations”); and all additional
violations of building, fire, sanitary, environmental, housing and similar Laws and Regulations arising and noted or issued after the Effective Date and on or before the date of the Closing (“Subsequent Violations”) which either
(1) the cost thereof to cure does not exceed One Hundred Thousand Dollars ($100,000) in the aggregate, (2) are sidewalk violations, or (3) arise 

  

 7 

 
from or relate to, or which will be cured by, (x) tenant improvement work that Seller is performing, or is obligated to perform, or (y) work that a
Tenant has performed, is performing or is obligated to perform; 
 (viii) Possible encroachments and/or projections of stoop areas, roof
cornices, window trims, vent pipes, cellar doors, steps, columns and column bases, flue pipes, signs, piers, lintels, window sills, fire escapes, satellite dishes, protective netting, sidewalk sheds, ledges, fences, coping walls (including retaining
walls and yard walls), air conditioners and the like, if any, on, under or above any street or highway, the Property or any adjoining property, which either are shown on that certain survey of the Property described on Exhibit “I” or which
the Title Company is willing to insure without additional premium shall not be disturbed while the improvements remain in existence; 
 (ix)
Variations between tax lot lines and lines of record title, but only to the extent approved, or deemed approved, by Buyer pursuant to Section 4.2; and 
 (x) The other matters described in Exhibit “C” attached hereto and made a part hereof. 
 “Permitted Outside Parties” shall have the meaning ascribed in Section 3.5. 
 “Person” means any
individual, partnership, corporation, limited liability company, limited liability partnership, trust or other entity. 
 “Personal
Property” shall mean all of the right, title, and interest of Seller in and to the tangible personal property (other than cash), which is located at and used solely in connection with any of the Real Property as of the Closing Date, but
specifically excluding (a) any personal property owned, financed or leased by the Tenants under the Leases, (b) any personal property owned by guests or other third parties and (c) any computer software which either is licensed to
Seller and/or owned by other third parties, or which Seller deems proprietary. Personal Property shall not include any appraisals, strategic plans for the Property, internal analyses, marketing information related to the sale of the Property,
submissions relating to Seller’s obtaining of corporate authorization, attorney and accountant work product and attorney-client privileged documents, or other information in the possession or control of Seller which Seller reasonably deems
proprietary. 
 “Post-Closing Agreement” shall have the meaning ascribed in Section 5.6(d). 
 “Pre-Effective Date Leases” or “Pre-Effective Date Lease” shall mean, collectively, or singularly, any lease for space
at the Property described in Exhibit “M,” which has been executed and delivered, and remains in effect, as of the Effective Date. 
 “Property” shall mean the Real Property, together with the Personal Property, the Consumables, the Leases, the Contracts, and to the extent transferable, all of Seller’s right, title and interest in and to all tangible
and intangible assets of any nature relating solely to the Property, specifically excluding options, warrants, stock and like items, but including without limitation, (a) all warranties upon the Improvements, (b) rights to any plans,
specifications, engineering studies, reports, drawings, and prints relating to the construction, reconstruction, 

  

 8 

 
modification, and alteration of Improvements (except to the extent excluded from the definition of Personal Property), (c) all works of art, graphic
designs, and other intellectual or intangible property used by Seller in connection with the Property but only to the extent of Seller’s interest therein, including any trade name associated with the Improvements (including, without limitation,
“H57” and “Hotel 57”), (d) all claims and causes of action arising out of or in connection with the Property after the Closing Date, to the extent the same are assigned to Buyer hereunder, (e) to the extent assignable,
the Licenses and Permits, (f) all books, records, guest history information, marketing and leasing material and forms, notices from governmental authorities, correspondence, budgets, and other data and information, in each case relating to the
ownership or operation of the Property (excluding any appraisals, strategic plans for the Property, internal analyses, submissions relating to Seller’s obtaining of corporate authorization, attorney and accountant work product, attorney-client
privileged documents) and (g) trade names, trademarks and other identifying material of the Property and all related goodwill. 
 “Proration Items” shall have the meaning ascribed in Section 9.6(a). 
 “Purchase Price”
shall have the meaning ascribed in Section 2.2. 
 “Real Property” shall mean the Land, the Improvements, and the
Fixtures. 
 “Reimbursable Capital Expenses” shall mean costs or expenses for any capital expenditures or improvements made
by Seller for the Property after the Effective Date hereof but before Closing. 
 “Reimbursable Lease Expenses” shall mean,
collectively, any and all expenses and fees described below in this definition paid or incurred by Seller prior to Closing arising out of or in connection with any amendment to or modification (approved by Buyer as provided herein) of a
Pre-Effective Date Lease executed between the Effective Date and the Closing Date or any New Lease approved by Buyer as provided herein. Reimbursable Lease Expenses shall include, without limitation, (a) expenses incurred for repairs,
improvements, equipment, painting, decorating, partitioning and other items to satisfy the Tenant’s build-out requirements with regard to such an amendment or modification to a Pre-Effective Date Lease or New Lease, (b) reasonable legal
fees for services in connection with the preparation of documents and other services rendered in connection with such an amendment or modification to a Pre-Effective Date Lease or New Lease and (c) expenses incurred for the purpose of
satisfying or terminating the obligations of a Tenant under a New Lease to its landlord under another lease (whether or not such other lease covers space in the Property) in connection with such a New Lease. 
 “Rent Roll” shall have the meaning ascribed in Section 3.2(a). 
 “Rents” shall mean all fixed monthly rentals, additional rentals, percentage rentals, escalation rentals (which include each
Tenant’s proration share of building operation and maintenance costs and expenses as provided for under the applicable Lease, to the extent the same exceeds any expense stop specified in such Lease), retroactive rentals, all administrative
charges, storage rentals, temporary rents, telephone receipts, locker rentals, vending machine receipts and other sums and charges payable by tenants under the Leases or from other occupants or users of the Property, but excluding amounts received
for Operating Expenses. The term “Rents” as used in this Agreement shall specifically exclude any sums and charges payable by transient hotel guests or under any Bookings. 
  

 9 

 “Replacement Manager” shall have the meaning ascribed in Section 7.7(a).

 “Reporting Person” shall have the meaning ascribed in Section 5.4(a). 
 “Review Period” shall have the meaning ascribed in Section 3.1. 
 “Seller Accounts Receivable” shall have the meaning ascribed in Section 9.6(p). 
 “Seller Date Down Certificate” shall have the meaning ascribed in Section 9.3(o). 
 “Seller Default Reimbursement” shall have the meaning ascribed in Section 5.1. 
 “Seller’s Liabilities Holdback” shall have the meaning ascribed in Section 6.2. 
 “Seller Liability Ceiling” shall have the meaning ascribed in Section 5.6(a). 
 “Seller Liability Threshold” shall have the meaning ascribed in Section 5.6(a). 
 “Senior Foreign Political Figure” means a senior official of a major non-United States political party or a senior executive of a
government-owned corporation not organized within the United States. In addition, a “Senior Foreign Political Figure” includes any corporation, business or other entity that has been formed by or for the benefit of a Senior Foreign
Political Figure. 
 “SRO” means a self-regulatory organization. 
 “Subsequent Violations” shall have the meaning ascribed under the definition of “Permitted Exceptions” in this
Section 1.1. 
 “Survey” shall mean that certain existing ALTA and other surveys and other drawings of the Land and
Improvements more particularly described on Exhibit “I” attached hereto. 
 “Survival Amount” shall have the
meaning ascribed in Section 6.2. 
 “Survival Period” shall have the meaning ascribed in Section 6.2. 

“Tax Proceedings” shall have the meaning ascribed in Section 9.6(d). 
 “Tenant Deposit” means all advance rents and security deposits (whether cash or non-cash, including without limitation letters of
credit) paid or deposited by the Tenants to Seller, as landlord, or any other person on Seller’s behalf pursuant to the Leases and not applied in accordance with the terms of the applicable Lease (together with any interest which has accrued
thereon as required by the terms of such Lease, but only to the extent such interest has accrued for the account of the respective Tenants or as required by law). 
 “Tenant Notice Letters” shall have the meaning ascribed in Section 9.3(f). 
  

 10 

 “Tenants” shall mean all persons or entities occupying or entitled to possession of any
portion of the Real Property pursuant to the Leases, including tenants, subtenants, and licensees. 
 “Termination Nullification
Notice” shall have the meaning ascribed in Section 5.6(c). 
 “Termination Nullification Period” shall have
the meaning ascribed in Section 5.6(c). 
 “Termination Payments” shall have the meaning ascribed in
Section 7.6(b). 
 “Title IV Plans” shall have the meaning ascribed in Section 6.1(q)(ii). 
 “Title Commitment” shall have the meaning ascribed in Section 4.1. 
 “Title Company” shall mean LandAmerica American Title Company. 
 “Title Objections” shall have the meaning ascribed in Section 4.2. 
 “Title Policy” shall have the meaning ascribed in Section 4.3. 
 “Union” shall have the meaning ascribed in Section 7.6(a). 
 “Union Agreement” shall have the meaning ascribed in Section 7.6(a). 
 “Variance” shall have the meaning ascribed in Section 7.7(b). 
 “Violations Holdback” shall have the meaning ascribed in Section 8.5. 
 “Waiver Notice” shall have the meaning ascribed in Section 5.6(c). 
 Section 1.2 Rules of Construction. Article and Section captions used in this Agreement are for convenience only and shall not affect
the construction of this Agreement. All references to “Article” or “Sections” without reference to a document other than this Agreement, are intended to designate articles and sections of this Agreement, and the words
“herein,” “hereof,” “hereunder,” and other words of similar import refer to this Agreement as a whole and not to any particular Article or Section, unless specifically designated otherwise. The use of the term
“including” shall mean in all cases “including but not limited to,” unless specifically designated otherwise. No rules of construction against the drafter of this Agreement shall apply in any interpretation or enforcement of this
Agreement, any documents or certificates executed pursuant hereto, or any provisions of any of the foregoing. 
 ARTICLE 2 

AGREEMENT OF PURCHASE AND SALE; PURCHASE PRICE 
 Section 2.1 Agreement to Purchase and Sell. Seller agrees to sell, transfer and assign to Buyer, and Buyer agrees to purchase and accept subject to the terms and conditions stated herein, all of
Seller’s right, title and interest in and to the Property. 
  

 11 

 Section 2.2 Purchase Price. Buyer shall pay Seller the purchase price of Ninety-Nine
Million Dollars ($99,000,000) (the “Purchase Price”) by wire transfer, to an account or accounts designated by Seller, of immediately available funds at Closing. The Purchase Price, subject to closing adjustments, shall be deposited
with the Escrow Agent on or before the Closing Date in accordance with this Agreement and paid to Seller upon satisfaction or waiver of all conditions precedent to the Closing as described herein. 
 Section 2.3 Deposit. Simultaneously with the execution and delivery of this Agreement, Buyer shall deposit via wire transfer the sum
of Five Million Dollars ($5,000,000) in immediately available funds as a deposit (together with all interest accrued thereon, the “Initial Deposit”) with Escrow Agent, whose address is as indicated in Section 10.3. On or before
the December 2, 2007 Buyer shall deposit the sum of Two Million Dollars ($2,000,000) in immediately available funds (the “Additional Deposit”) with the Escrow Agent. The Initial Deposit and the Additional Deposit, and all
interest accrued thereon, shall hereinafter be referred to collectively as the “Deposit.” Upon being deposited with Escrow Agent, the Deposit shall be non-refundable, except as otherwise expressly provided in Sections 3.1, 3.6, 3.8, 4.2,
5.1, 5.6(c), 7.8, and 10.2(b) herein. The Deposit shall be held and delivered by Escrow Agent in accordance with the provisions of this Agreement. Interest earned on the Deposit shall be considered part of the Deposit for purposes of delivery of the
Deposit by the Escrow Agent and shall be applied against the Purchase Price at Closing. Except as otherwise expressly set forth herein, the Deposit shall be applied against the Purchase Price on the Closing Date. 
 Section 2.4 Independent Consideration. Contemporaneously with the execution and delivery of this Agreement, Buyer has paid to Seller
as further consideration for this Agreement, in cash, the sum of One Hundred Dollars ($100.00) (the “Independent Consideration”), in addition to the Deposit and the Purchase Price and independent of any other consideration provided
hereunder, which Independent Consideration is fully earned by Seller and is non-refundable under any circumstances. 
 Section 2.5
Intentionally Omitted. 
 Section 2.6 Assumption of Obligations. As additional consideration for the purchase
and sale of the Property, at Closing Buyer will (i) take the Property subject to all of the Permitted Exceptions; (ii) assume and perform all of the covenants and obligations of Seller, Seller’s predecessors in title and Seller’s
Affiliates pursuant to the Contracts being assumed by Buyer under the terms of this Agreement to the extent accruing or arising out of events occurring on or after the Closing Date, including without limitation any obligation to pay leasing
commissions that are attributable to any period of time arising from and after the Closing Date with respect to renewals or expansions of Pre-Effective Date Leases which are exercised after the Effective Date, or in connection with New Leases
approved by Buyer as provided herein, other than as set forth in Section 9.6 below; (iii) assume and perform all of the lessor’s obligations under the Pre-Effective Date Leases and the New Leases being assumed by Buyer under the terms
of this Agreement to the extent accruing or arising out of events occurring (x) before the Closing Date if such obligation relates to the following: to make and perform maintenance, replacements, repairs, improvements or corrections to physical
or environmental conditions at, or physical elements of, the Property, or the legal compliance status of the Property, or the operation of building systems at, or physical elements of, the Property or (y) on or after the Closing Date, 

  

 12 

 
provided that such assumption shall not include the obligation to make payment of any leasing commissions for Pre-Effective Date Leases except to the extent
expressly set forth above; (iv) assume Seller’s obligations to pay, when due (whether on a stated due date or accelerated) any Reimbursable Lease Expenses in accordance with Section 8.2 of this Agreement; (v) assume and agree to
discharge, perform and comply with each and every liability, duty, covenant, debt or obligation of Seller or any of its Affiliates resulting from, arising out of, or in any way related to any Licenses and Permits assigned to Buyer, to the extent
accruing or arising out of events occurring (x) before the Closing Date if such obligation relates to the following: to make and perform maintenance, replacements, repairs, improvements or corrections to physical or environmental conditions at,
or physical elements of, the Property, or the legal compliance status of the Property, or the operation of building systems at, or physical elements of, the Property or (y) on or after the Closing Date; and (vi) assume and perform all of
the lessee’s obligations under the Ground Lease whether accruing or arising out of events occurring before, on or after the Closing Date. Buyer also hereby assumes the obligation to pay any brokerage commissions or leasing fees due and payable,
or which will become due and payable, for the exercise after the Effective Date of any renewal, expansion or other option under any Pre-Effective Date Lease, which first becomes due and payable after the Effective Date (but only to the extent
disclosed in the Due Diligence Items), and to construct and perform any improvements to be performed by the landlord under a Lease of space at the Property to build-out the space for a Tenant’s occupancy, and to pay any amounts to be paid by
the landlord under a Lease of space at the Property to fund the build-out of the space for a Tenant’s occupancy, under New Leases or under renewals or expansion options under Pre-Effective Date Leases which are first exercised after the
Effective Date. The provisions of this Section 2.6 shall survive the Closing without limitation. 
 ARTICLE 3 
 BUYER’S DUE DILIGENCE 
 Section 3.1 Review Period. 
 Buyer shall have a period through 6:00 p.m. Eastern Time on the date that is one (1) Business
Day after the Effective Date, except as otherwise agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey, construction, physical condition, structural, mechanical, environmental, economic, permit
status, franchise status, financial and other documents and information related to the Property (such evaluation, whether performed prior to the date of this Agreement or after the date of this Agreement, herein called the “Due
Diligence”). Buyer acknowledges that Seller has heretofore delivered to Buyer (or made available) for Buyer’s review the materials in the digital data room maintained by the Broker and all other information reasonably requested by
Buyer, including without limitation the Lease, the Contracts and the Ground Lease, that is relevant to the management, operation, use, occupancy or leasing of or title to the Property and that is in the possession or control of Seller. At any time
during the Review Period, Buyer may, in its sole and absolute discretion, elect not to proceed with the purchase of the Property for any reason whatsoever by giving written notice of termination to Seller, in which event: (i) the Escrow Agent
shall promptly return to Buyer the Deposit together with all interest, if any, accrued thereon, (ii) this Agreement shall terminate automatically, (iii) Buyer shall return to Seller all materials supplied by Seller to Buyer, and
(iv) both parties will be relieved of all other rights, obligations and liabilities hereunder, except as otherwise expressly provided in this Agreement. 
  

 13 

 Section 3.2 Delivery Period. (a) Buyer acknowledges that Seller has delivered to
Buyer, or made available to Buyer for inspection at the Property or at the office of the Manager, or in the digital data room maintained by the Broker the rent roll statement (the “Rent Roll”) with respect to the Property prepared
by Seller, which Rent Roll is attached hereto as Exhibit “M”, together with copies of all written Leases referenced on the Rent Roll. Buyer acknowledges that all of the materials in the digital data room reflected in the index to such data
room attached hereto as Exhibit “O” have been made available to Buyer for its review, except, as of the Effective Date, as noted on Exhibit “P”. 
 (b) All Due Diligence Items are furnished or made available to Buyer for information purposes only and without any representation or warranty by Seller with respect thereto, express or implied, except as may otherwise
be expressly set forth in, and as limited by, this Agreement, and all such documents, materials, and information are expressly understood by Buyer to be subject to the confidentiality provisions of Sections 3.5 and 10.11 below. 
 (c) Notwithstanding anything to the contrary contained in this Agreement, in the event that (i) there exists any conflict or discrepancy between the
Due Diligence Items, on the one hand, and any of the exhibits and schedules attached hereto and made a part hereof and/or the representations and warranties made by Seller herein, on the other hand, or (ii) the materials comprising Due
Diligence Items contain information not set forth in any exhibit or schedule attached hereto or not disclosed in or covered by any representations or warranties made by Seller herein, then in either such event, the exhibits and schedules attached
hereto and/or the representations and warranties of Seller made herein shall be deemed modified to the extent required such that the same shall be deemed to reflect and contain any conflicting or supplemental information contained in the materials
comprising the Due Diligence Items, and Seller shall not be deemed to have breached the representations contained in this Agreement by reason of such conflict, discrepancy or the exclusion of such supplemental information from the exhibits and
schedules attached hereto and/or the representations and warranties made by Seller herein, as the case may be. 
 Section 3.3 Site
Visits. Buyer and its Licensee Parties shall have reasonable access to the Real Property during normal business hours on at least twenty-four (24) hours’ prior notice to Seller. Seller shall make reasonable efforts to have an agent
available to accompany Buyer or any Licensee Parties, and in all events Seller shall have the right to have a representative present during any visits to or inspections of the Real Property by Buyer or any Licensee Parties. Buyer and its Licensee
Parties will conduct any visits or inspections in a manner which is not disruptive to Tenants, guests at the Real Property or the normal operation of the Real Property. Buyer and its Licensee Parties will not contact Manager or any leasing agents of
the Real Property without Seller’s prior written consent, which consent shall not be unreasonably withheld or delayed. Neither Buyer nor any Licensee Parties may contact any Tenants or guests at the Real Property or make any inquiries of such
Tenants or guests at the Real Property which in any way relate to the Real Property or to Seller without Seller’s prior written consent. In the event that Buyer desires to conduct any physically intrusive inspections, such as sampling of soils,
other media, building materials, or the like, Buyer shall identify in writing exactly what procedures Buyer 

  

 14 

 
desires to perform and request Seller’s express written consent. Any such consent from Buyer shall in no way waive or limit Buyer’s indemnification
obligation under Section 3.4 below or obligations under the second to last sentence of this Section 3.4. Upon receipt of Seller’s written consent, Buyer and all Licensee Parties shall, in performing such inspection, comply with
reasonable procedures and with any and all laws, ordinances, rules, and regulations applicable to the Property and will not engage in any activities which would knowingly violate any of the Licenses and Permits or Laws and Regulations. Buyer and its
employees and contractors shall, at their expense: (i) maintain comprehensive general liability (occurrence) insurance in terms and amounts (at least $2,000,000) satisfactory to Seller covering any accident arising in connection with the
presence of Buyer or any of its contractors, employees or other persons acting at its direction on the Real Property or Improvements, and deliver a certificate of insurance, which names the Seller, the Manager and such other persons as Seller shall
reasonably designate as additional insureds thereunder verifying such coverage to Seller prior to entry upon the Real Property or Improvements; (ii) promptly pay when due the third-party costs of all entry and inspections and examinations done
by Buyer and its Licensee Parties with regard to the Property; and (iii) restore the Real Property and Improvements to the condition in which the same were found before any such entry upon the Real Property and inspection or examination was
undertaken. The provisions of the preceding sentence shall survive the Closing or, if the purchase and sale is not consummated, any termination of this Agreement and shall not be subject to any survival limitation set forth in Section 6.2

 Section 3.4 Buyer’s Due Diligence Indemnity. Buyer shall defend, indemnify, and hold harmless Seller,
Seller’s managers, officers, partners, shareholders, employees, lenders, representatives and members, as applicable, and each of their Affiliates and the Manager and its Affiliates from and against all losses, costs, damages, claims, and
liabilities (whether arising out of injury or death to persons or damage to a Property or otherwise) including, but not limited to, costs of remediation, restoration and other similar activities, mechanic’s and materialmen’s liens and
attorneys’ fees, arising out of or in connection with Buyer’s Due Diligence, Buyer’s or any Permitted Outside Parties’ breach of their obligations under Section 3.5 or Buyer’s or any Licensee Parties’ entry upon
the Real Property, except to the extent such losses, costs, damages, claims and liabilities arise from any loss in value of the Property arising from unfavorable test results, studies, evaluations, or recommendations (except to the extent that Buyer
worsens such condition or matters as a result of such investigation, sampling or tests) or as a result of gross negligence or willful misconduct of the Seller. The provisions of this Section 3.4 shall survive the Closing or, if the purchase and
sale is not consummated, any termination of this Agreement and shall not be subject to any survival limitation set forth in Section 6.2. 
 Section 3.5 Confidentiality. Buyer agrees that any information, including all of the Due Diligence Items, obtained by Buyer or its attorneys, partners, accountants, advisors, consultants, lenders or investors or the
attorneys, partners, accountants, advisors and consultants of such lenders or investors (collectively, for purposes of this Section 3.5, the “Permitted Outside Parties”) in the conduct of its Due Diligence, to the extent the
same is not otherwise public information, shall be treated as confidential pursuant to Section 10.11 of this Agreement and shall be used only to evaluate the acquisition of the Property from Seller. Buyer further agrees that within its
organization, or as to the Permitted Outside Parties, such Due Diligence Items will be disclosed and exhibited only to those persons within Buyer’s organization or to those Permitted Outside Parties who are involved in evaluating the Property,
except as otherwise 

  

 15 

 
permitted by Section 10.11. Buyer agrees not to divulge the contents of such Due Diligence Items except in accordance with this Section 3.5 and
Section 10.11 of this Agreement. In permitting Buyer and the Permitted Outside Parties to review the Due Diligence Items and other information to assist Buyer, Seller has not waived any privilege or claim of confidentiality with respect
thereto, and no third party benefits or relationships of any kind, either express or implied, have been offered, intended or created by Seller and any such claims are expressly rejected by Seller and waived by Buyer and the Permitted Outside
Parties, for whom, by its execution of this Agreement, Buyer is acting as an agent with regard to such waiver. Buyer agrees that it shall, upon the termination of this Agreement for any reason, as part of the consideration owing to Seller,
(x) provide Seller with copies of the third party reports, studies, appraisals and other material relating to the Property as Buyer may have received and/or commissioned which contain information that, is inconsistent with (i) the
representations and warranties made by Seller herein or (ii) the disclosure items set forth on Exhibit C attached hereto. 
 Section 3.6 Tenant Estoppel Certificates. Seller shall, at its sole cost and expense, use commercially reasonable efforts to obtain, from each of the Opia Restaurant and Kenneth Cole Tenants, a written estoppel statement
in the form attached hereto as Exhibit “W” (the “Tenant Estoppels”), dated no earlier than the date that is thirty (30) days prior to the Closing Date that was scheduled at the time that the Tenant Estoppels were
requested. If Seller is unable to obtain all of the Tenant Estoppels by the Closing Date or if either of the Tenant Estoppels contain statements or information that is reasonably unacceptable to Buyer and Seller elects not to cure or cannot within a
reasonable time (not to exceed 10 Business Days after notice by Buyer thereof) cure any of the unacceptable information contained in the Tenant Estoppels, Buyer may elect to either (1) terminate this Agreement by giving written notice to Seller
and Escrow Agent within two (2) Business Days of receipt of such Tenant Estoppel, in which event the Deposit shall be paid to Buyer, and, thereafter, the parties shall have no further rights or obligations hereunder except for those obligations
which expressly survive the termination of this Agreement, or (2) waive Seller’s obligation hereunder to deliver all of the Tenant Estoppels, and the Closing shall occur as herein provided without any reduction of or credit against the
Purchase Price. If Buyer does not exercise its right to proceed under clause (1) of the preceding sentence within the two (2) Business Day period mentioned therein, Buyer shall be deemed to have elected to proceed under clause (2) of
the preceding sentence. Buyer acknowledges (i) that the Tenant Estoppel from Opia may list an obligation on behalf of the tenant to obtain certain permits to use its space and notices of default from Seller in connection therewith and
(ii) that such information shall not be deemed to be reasonably unacceptable for purposes of this Section 3.6. 
 Section 3.7 Contracts. Prior to expiration of the Review Period, Buyer may deliver written notice (“Contract Notice”) to Seller of the Contracts that Buyer desires Seller to terminate, so long as such
Contracts are terminable upon written notice and Seller is not obligated to pay any termination or similar fee. Seller shall, upon receipt of the Contract Notice, deliver written notice to the vendors under such Contracts set forth in the Contract
Notice, but the termination of those Contracts shall not be a condition precedent to Buyer’s obligations hereunder. If Buyer does not deliver the Contract Notice as and when required hereunder, Buyer shall be deemed to have elected to assume
all of the Contracts. 
  

 16 

 Section 3.8 Ground Lease Estoppel. Seller shall, at its sole cost and expense,
exercise its rights under Section 27(C) of the Ground Lease to obtain, and shall use commercially reasonable efforts (without any obligation to initiate litigation but with the right to do so in its sole discretion) to obtain, from the Ground
Lessor a written estoppel statement in the form described therein, subject only to changes reasonably acceptable to Buyer (the “Ground Lease Estoppel”), dated no earlier than the date that is thirty (30) days prior to the
Closing Date that was scheduled at the time that the Ground Lease Estoppel was requested. Buyer acknowledges that the Ground Lease Estoppel may list violations of building, fire, sanitary, environmental, housing and similar Laws and Regulations and
notices to cure in connection therewith including without limitation the notices to cure set forth on Exhibit “J” hereto. If Seller is unable to deliver the Ground Lease Estoppel on the originally scheduled Closing Date (the
“Original Closing Date”), Seller may elect (but shall not be obligated) to continue to pursue obtaining the Ground Lease Estoppel, and shall be entitled to a reasonable adjournment of the Closing Date to a date no more than 30 days
after the Original Closing Date (the “Adjourned Closing Date”) for the purpose of obtaining the Ground Lease Estoppel. If Seller is unable to obtain the Ground Lease Estoppel by (x) the Original Closing Date and elects not to
continue to pursue the Ground Lease Estoppel, or (y) by the Adjourned Closing Date, or if the Ground Lease Estoppel obtained by Seller contains any statements or information that is reasonably unacceptable to Buyer and Seller elects not to, or
cannot within a reasonable time (not to exceed 10 Business Days), cure such unacceptable information, Buyer may elect to either (1) terminate this Agreement by giving written notice to Seller and Escrow Agent, in which event the Deposit shall
be paid to Buyer, and, thereafter, the parties shall have no further rights or obligations hereunder except for those obligations which expressly survive the termination of this Agreement, or (2) waive Seller’s obligation hereunder to
deliver the Ground Lease Estoppel, and the Closing shall occur as herein provided without any reduction of or credit against the Purchase Price. If Buyer fails to give Seller and Escrow Agent such written notice in a timely manner, then Buyer shall
be deemed to have elected to proceed under clause (2) of the preceding sentence. 
 ARTICLE 4 
 TITLE AND SURVEY 
 Section 4.1 Title to Real Property. Buyer has obtained a commitment for an ALTA policy of title insurance with respect to the Real Property (the “Title Commitment”), (b) copies of all recorded
documents referred to on Schedule B of the Title Commitment as exceptions to coverage, and (c) a copy of any current plat of survey, or update of an earlier plat of survey, obtained by Buyer with respect to the Property (the “Current
Survey”), to the extent Buyer deems the same necessary or desirable to enter into this Agreement. Buyer shall deliver a copy of the same to Seller promptly after the later of the date hereof and the date of Buyer’s receipt thereof, but
neither the receipt of any of the same, nor Buyer’s satisfaction with the contents thereof (except with respect to any matter affecting the Real Property which may first arise after the date of this Agreement, as to which Buyer shall retain the
right to object in accordance with and subject to the provisions of this Agreement if the same is not a Permitted Exception), shall be conditions to Closing since Buyer completed its diligence before entering into this Agreement and has no right to
terminate this Agreement on the basis of any matter or condition occurring or existing prior to the date of this Agreement. 
  

 17 

 Section 4.2 Certain Exceptions to Title. If Buyer discovers any title or survey matter
which first arose after the date of this Agreement, which is not a Permitted Exception and which is objectionable to Buyer on the basis that it is material and adverse to the use and occupancy of the Real Property as presently used and occupied or
renders title unmarketable, then Buyer shall provide Seller with written notice of its objection to same (a “Title Objection”). If Buyer fails to make a Title Objection to any such matter within five (5) Business Days following
the date that Buyer first learns of such matter, Buyer shall be deemed to have approved same, and all such matters shall be deemed additional “Permitted Exceptions”. If Buyer timely notifies Seller of any Title Objections, Seller
shall elect either to attempt to cure or not cure any such item by written notice sent to Buyer within five (5) Business Days after Seller’s receipt of notice from Buyer, and if Seller commits in writing to attempt to cure any such item,
Seller shall be entitled to a reasonable adjournment of the Closing (not to exceed sixty (60) days) to cure the Title Objections. In the event that Seller shall fail to cure a Title Objection which Seller has committed in writing to attempt to
cure prior to Closing (as the same may be adjourned pursuant to the forgoing sentence), then Buyer may elect, in Buyer’s sole and absolute discretion: (i) to waive such Title Objection and proceed to Closing, or (ii) to terminate this
Agreement and receive a return of the Deposit, and any interest thereon. For purposes of the foregoing, a Title Objection shall be deemed to have been cured by the Title Company’s providing affirmative insurance or an endorsement with respect
the Title Objection that is reasonably acceptable to Buyer. In no event shall Buyer be required to object to, and the term “Permitted Exceptions” shall not include, mortgages, liens, or documents evidencing liens, securing any indebtedness
or any mechanics’ or materialmen’s liens or any claims or potential claims otherwise for the delivery of goods or the performance of services, each of which shall be paid in full by Seller and released at Closing. If the Property shall, at
the time of the Closing, be subject to any liens such as for judgments or transfer, inheritance, estate, franchise, license or other taxes or any encumbrances or other title exceptions which would be grounds for Buyer to reject title hereunder, the
same shall not be deemed an objection to title provided that, at the time of the Closing, either (a) Seller delivers certified or official bank checks at the Closing in the amount required to satisfy the same and delivers to Buyer and/or the
Title Company at the Closing instruments in recordable form (and otherwise in form reasonably satisfactory to the Title Company in order to omit the same as an exception to its title policy) sufficient to satisfy and discharge of record such liens
and encumbrances together with the cost of recording or filing such instruments or (b) the Title Company will otherwise issue or bind itself to issue a policy which will insure Buyer against collection thereof from or enforcement thereof
against the Property. 
 Section 4.3 Title Insurance. At Closing, Buyer shall arrange for the Title Company to issue to
Buyer or be irrevocably committed to issue to Buyer an extended coverage ALTA owner’s form title policy pursuant to the Title Commitment (the “Title Policy”), in the amount of the Purchase Price, insuring that good leasehold
title to the Real Property under the Ground Lease is vested in Buyer subject only to the Permitted Exceptions. Buyer shall cause the Title Company to allow National Land Tenure Company to place co-insurance for the Title Policy of at least 25% of
the amount thereof with Commonwealth Land Title or any other national title insurer of National Land Tenure Company’s choosing. Buyer shall be entitled to request that the Title Company provide such endorsements (or amendments) to the Title
Policy as Buyer may reasonably require, provided that (a) such endorsements (or amendments) shall be at no cost to, and shall impose no additional liability on, Seller, (b) Buyer’s obligations under this Agreement 

  

 18 

 
shall not be conditioned upon Buyer’s ability to obtain such endorsements and, if Buyer is unable to obtain such endorsements, Buyer shall nevertheless
be obligated to proceed to close the transaction contemplated by this Agreement without reduction of or set off against the Purchase Price, and (c) the Closing shall not be delayed as a result of Buyer’s request. Notwithstanding anything
to the contrary, at Closing, Seller agrees to deliver to the Title Company such documents (which documents may consist of, in lieu of providing copies of any organizational documents of any member of Seller, an officer’s certificate of the
Seller prepared by Seller’s counsel) as are reasonably required by the Title Company to evidence Seller’s authority to consummate the transaction contemplated hereby and an owner’s title affidavit in the form attached hereto as
Exhibit “V”. 
 ARTICLE 5 
 REMEDIES AND DEPOSIT INSTRUCTIONS; INDEMNIFICATION 
 Section 5.1 Permitted
Termination; Seller Default. If the sale of the Property is not consummated due to Seller’s default hereunder, Buyer shall be entitled, as its sole remedy, either (a) to terminate the Agreement, whereupon Buyer shall be entitled to
receive the return of the Deposit and to receive from Seller in addition reimbursement of the documented out-of-pocket expenses incurred by Buyer in connection with the negotiation and execution of this Agreement, performing its due diligence
hereunder and preparation for Closing, up to but not in excess of Two Hundred Thousand Dollars ($200,000.00) (the “Seller Default Reimbursement”), or (b) to enforce specific performance of this Agreement. Buyer expressly waives
its rights to seek any damages in the event the sale of the Property is not consummated due to Seller’s default hereunder. In the event that Buyer terminates the Agreement as a result of Seller’s default with respect to its obligations
hereunder, if Buyer fails, on or before thirty (30) days following the date upon which Closing was to have occurred, to deliver to Seller a written demand certified by a principal of Buyer for reimbursement of documented out-of-pocket expenses
incurred by Buyer in the negotiation and execution of this Agreement, performing its due diligence hereunder and preparation for Closing, up to but not in excess of Two Hundred Thousand Dollars ($200,000.00), together with supporting documentation,
then Buyer shall be deemed to have elected to terminate this Agreement and receive back the Deposit but without reimbursement for any of the expenses incurred by Buyer. If the Closing does not occur for any reason other than Buyer terminating this
Agreement as a result of Seller’s default with respect to Seller’s obligations hereunder (and other than as expressly provided in Sections 3.1, 3.6, 3.8, 4.2, 5.1, 5.6(c), 7.8, and 10.2(b)), Buyer shall not be entitled to receive back any
portion of the Deposit unless, on or before thirty (30) days following the date upon which Closing was to have occurred, Buyer makes a written demand to Escrow Agent in accordance with the provisions of Section 5.3 for return of the
portion of the Deposit to which Buyer believes it is entitled, which demand shall state with specificity the reasons that Buyer believes it is entitled to receive return of said portion of the Deposit. 
 Section 5.2 BUYER DEFAULT; LIQUIDATED DAMAGES. IF THE SALE IS NOT CONSUMMATED DUE TO ANY DEFAULT BY BUYER HEREUNDER (INCLUDING A FAILURE
BY BUYER TO PERFORM THE GROUND LEASE RELEASE OBLIGATION IN ACCORDANCE WITH SECTION 7.8(a) OR CAUSE AN INVALIDATION OF THE GROUND LESSOR CONSENT OR THE REQUEST FOR 

  

 19 

 
SUCH CONSENT BY ASSIGNING ITS RIGHTS HEREUNDER AS PROVIDED IN SECTION 10.4), THEN SELLER SHALL RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES, WHICH RETENTION
SHALL OPERATE TO TERMINATE THIS AGREEMENT AND RELEASE BUYER FROM ANY AND ALL LIABILITY HEREUNDER, EXCEPT AS PROVIDED IN SECTIONS 9.7 AND 10.11. THE PARTIES HAVE AGREED THAT SELLER’S ACTUAL DAMAGES, IN THE EVENT OF A FAILURE TO CONSUMMATE THIS
SALE DUE TO BUYER’S DEFAULT, WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. AFTER NEGOTIATION, THE PARTIES HAVE AGREED THAT, CONSIDERING ALL THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, THE AMOUNT OF THE DEPOSIT IS A
REASONABLE ESTIMATE OF THE DAMAGES THAT SELLER WOULD INCUR IN SUCH EVENT. BY SIGNING THIS AGREEMENT, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT
THE TIME THIS AGREEMENT WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION. THE FOREGOING IS NOT INTENDED TO LIMIT BUYER’S INDEMNITY OBLIGATIONS UNDER SECTIONS 3.4, 9.7 AND 10.11. 
 Section 5.3 Deposit Instructions. The Escrow Agent joins herein below to evidence its agreement to hold such funds in accordance with
the terms and conditions of this Agreement. Further, the following provisions shall control with respect to the rights, duties and liabilities of the Escrow Agent. 
 The Escrow Agent acts hereunder as a depository only and is not responsible or liable in any manner whatsoever for the (i) sufficiency, correctness, genuineness or validity of any written instrument, notice or
evidence of a party’s receipt of any instruction or notice which is received by the Escrow Agent, or (ii) identity or authority of any person executing such instruction notice or evidence. 
 The Escrow Agent shall have no responsibility hereunder except for the performance by it in good faith of the acts to be performed by it hereunder, and
the Escrow Agent shall have no liability except for its own willful misconduct or gross negligence. 
 The Escrow Agent shall be reimbursed
on an equal basis by Buyer and Seller for any reasonable expenses incurred by the Escrow Agent arising from a dispute with respect to the amount held in escrow, including the cost of any legal expenses and court costs incurred by the Escrow Agent,
should the Escrow Agent deem it necessary to retain an attorney with respect to the disposition of the amount held in escrow. 
 At the
Closing, Escrow Agent shall deliver the Deposit (including any interest thereon) to Seller. If a party to this Agreement believes that it is entitled to payment of the Deposit (or any portion thereof) in accordance with the terms of this Agreement
other than in connection with the Closing, such party shall make a written demand upon Escrow Agent for payment of the Deposit to it setting forth in reasonable specificity the basis for its belief, and instructions for disbursement of the funds
requested. Upon receipt of a written demand from Seller or Buyer claiming entitlement to disbursement of any portion of the Deposit pursuant to the provisions of 

  

 20 

 
this Agreement (other than a disbursement to Seller at Closing), Escrow Agent shall promptly forward a copy thereof to the other such party (i.e., Buyer or
Seller, whichever did not claim such funds pursuant to such notice) and, unless such other party, within ten (10) Business Days following receipt of notice of such demand, notifies Escrow Agent in writing of any objection it has to such
requested disbursement of the Deposit, Escrow Agent shall disburse the Deposit to the party demanding the same and shall thereupon be released and discharged from any further duty or obligation hereunder. If the party that did not initially demand
disbursement of the Deposit notifies Escrow Agent of an objection to such disbursement within the specified ten (10) Business Day period, Escrow Agent shall hold the disputed amount in escrow until it receives a written direction signed by both
parties or an order issued by a court or, if the parties have elected arbitration, an arbitrator selected by the parties. 
 Notwithstanding
the foregoing, in the event of a dispute between the parties hereto with respect to the disposition of the amount held in escrow, the Escrow Agent shall be entitled, at its own discretion, to deliver such amount to an appropriate court of law
pending resolution of the dispute. 
 The Escrow Agent shall invest the amount in escrow in accounts which are federally insured, which
invest solely in government securities, or which are reasonably satisfactory to Seller and Buyer, and shall be applied in accordance with the terms of this Agreement. 
 Section 5.4 Designation of Reporting Person. In order to assure compliance with the requirements of Section 6045 of the Internal Revenue Code of 1986, as amended (for purposes of this
Section 5.4, the “Code”), and any related reporting requirements of the Code, the parties hereto agree as follows: 
 (a) Seller and Buyer shall designate the Escrow Agent as the person to be responsible for all information reporting under Section 6045(e) of the Code (the “Reporting Person”). If Escrow Agent refuses to execute a
statement pursuant to which it agrees to be the Reporting Person, Seller and Buyer shall agree to appoint another third party as the Reporting Person. 
 (b) Seller and Buyer hereby agree: 
 (i) to provide to the Reporting Person all information
and certifications regarding such party, as reasonably requested by the Reporting Person or otherwise required to be provided by a party to the transaction described herein under Section 6045 of the Code; and 
 (ii) to provide to the Reporting Person such party’s taxpayer identification number and a statement (on Internal Revenue Service Form
W-9 or an acceptable substitute form, or on any other form the applicable current or future Code sections and regulations might require and/or any form requested by the Reporting Person), signed under penalties of perjury, stating that the taxpayer
identification number supplied by such party to the Reporting Person is correct. 
 (c) Each party hereto agrees to retain this Agreement for
not less than four years from the end of the calendar year in which the Closing occurred, and to produce it to the Internal Revenue Service upon a valid request therefor. 
  

 21 

 Section 5.5 Indemnification. 
 (a) Indemnification of Buyer. Subject to the limitations on damages set forth in Section 5.6 and 6.2 below and elsewhere in this Agreement and
provided that Buyer gives timely notice of any Claim in accordance with Section 5.6(b) below, Seller shall indemnify, defend and hold harmless Buyer from and against the net diminution, if any, in the total value of the Property resulting from,
and any other actual and documented out-of-pocket losses, damages, costs or expenses (including reasonable attorneys’ fees) incurred by Buyer as a result of: 
 (i) the material breach of any representation, warranty, covenant or agreement of Seller contained in this Agreement; 
 (ii) provided that Buyer makes a Claim with respect thereto prior to the Closing Date, any material change reflected in the Seller Date
Down Certificate to the extent such change could reasonably be expected to have a material and adverse effect on the use and occupancy of the Property as presently used and occupied, and to the extent such change is not, for purposes of any change
to the representations given by Seller in: (1) Section 6.1(g) below, due to any condemnation arising between the Effective Date and the Closing Date of the property beyond the footprint of the building at the Property (such as the street,
the sidewalk or development rights) or of any right below the ground level of such building such as utility easement, (2) Section 6.1(j)(2) below, due to anything occurring in the ordinary course of business or pursuant to any collective
bargaining or union agreement or (3) Section 6.1(r)(5) below, due to a violation of building, fire, sanitary, environmental, housing or similar Laws and Regulations or notices to cure or notices of default in connection therewith;

 For the avoidance of doubt and without limitation, Seller’s representations and warranties made in Section 6.1 below shall be subject to the
limitations on recourse for such representations and warranties set forth in Sections 3.2(c), 5.6, 6.2 and 7.5 and the survival period set forth in Section 6.2 below. 
 (b) Indemnification of Seller. Subject to the limitations on damages set forth in Section 5.6 below, Buyer hereby agrees, with respect to
this Agreement, to indemnify, defend and hold harmless Seller from and against all losses, judgments, liabilities, claims, damages or expenses (including reasonable attorneys’ fees) of every kind, nature and description in existence before, on
or after Closing, whether known or unknown, absolute or contingent, joint or several, arising out of or relating to: 
 (i)
the material breach of any representation, warranty, covenant or agreement of Buyer contained in this Agreement; 
 (ii) the
conduct and operation by Buyer of the business at the Property after the Closing; and 
 (iii) any liability or obligation of
Buyer assumed by Buyer at Closing, including but not limited to those set forth in Section 2.6 above. 
  

 22 

 (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 Agreement (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, which notice
shall state the nature and basis of the assertion and the amount thereof, to the extent known; provided, however, that no delay on the part of the Indemnified Party in giving notice shall relieve the Indemnifying Party of any obligation to indemnify
unless (and then solely to the extent that) the Indemnifying Party is prejudiced by such delay. 
 (ii) If in any action, suit
or proceeding (a “Legal Action”) the relief sought is solely the payment of money damages, and if the Indemnifying Party specifically agrees in writing to indemnify such Indemnified Party with respect thereto and demonstrates to the
reasonable satisfaction of such Indemnified Party its financial ability to do so, the Indemnifying Party shall have the right, commencing thirty (30) days after such notice, at its option, to elect to settle, compromise or defend, pursuant to
this paragraph, by its own counsel and at its own expense, any such Legal Action involving such Indemnified Party’s asserted liability. If the Indemnifying Party does not undertake to settle, compromise or defend any such Legal Action, such
settlement, compromise or defense shall be conducted in the sole discretion of such Indemnified Party, but such Indemnified Party shall provide the Indemnifying Party with such information concerning such settlement, compromise or defense as the
Indemnifying Party may reasonably 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 Agreement, until the Indemnifying Party shall have assumed the defense of the Legal Action, the defense shall be handled by the Indemnified Party. Furthermore, (x) if the Indemnified Party shall have reasonably concluded that
there are likely to be defenses available to it that are different from or in addition to those available to the Indemnifying Party; (y) if the Legal Action involves other than money damages and seeks injunctive or other equitable relief; or
(z) if a judgment against Buyer, as the Indemnified Party, in the Legal Action will, in the good faith opinion of Buyer, establish a custom or precedent which will be adverse to the best interest of the continuing business of the Property, the
Indemnifying Party, shall not be entitled to assume the defense of the Legal Action and the defense shall be handled by the Indemnified Party, provided that the Indemnified Party shall indemnify, and release from its indemnity obligations hereunder,
the Indemnifying Party for such Legal Action. 
 (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 

  

 23 

 
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 (subject to reasonable satisfactory joint defense agreement) 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, provided, however, if Buyer withholds its consent on this basis, Buyer shall be responsible for further defending such Legal Action, and the Indemnifying
Party’s liability for such Legal Action shall be capped at what its liability for such Legal Action would have been had such settlement offer been accepted. 
 Section 5.6 Limitations on Damages, etc. 
 (a) Notwithstanding anything to the contrary
herein contained, (i) neither party shall be entitled to recover any consequential, special or punitive damages against the other party with respect to the breach of any representation, warranty, covenant or agreement of the other party
contained in this Agreement, the Date Down Certificates or under any indemnification or for a materially adverse change in Seller’s representations (to the extent that Seller indemnifies Buyer for such change pursuant to
Section 5.5(a)(iii) below) as reflected in the Seller Date Down Certificate given hereunder (a “Claim”), (ii) if a Claim against Seller occurs and the total amount of actual losses, cost, damage or expense incurred or
reasonably expected to be incurred by Buyer, including any diminution in the value of the Property (collectively, “Losses”) from such Claim and from all other Claims against Seller, is less than One Hundred Thousand Dollars
($100,000) (the “Seller Liability Threshold”), then Buyer shall not be entitled to recover any damages as a result of such Claim(s), provided, however, that if any additional Claims against Seller occur and the total amount of the
Losses from all such Claims equals or exceeds the Seller Liability Threshold, Buyer shall be entitled to recover damages for the entire amount of such Losses, (iii) the aggregate liability of Seller arising by reason of or in connection with
all such alleged Claims, whether asserted prior to or after the date of Closing, and including, without limitation, any liability under Section 5.5 or any other section of this Agreement, or any document delivered by Seller at the Closing or in
connection with the transactions contemplated hereby, shall not in any event exceed Three Million Dollars ($3,000,000) (the “Seller Liability Ceiling”), and (iv) Seller shall have no liability to Buyer for any Claim if Buyer
has not timely delivered a Claim Notice with respect thereto as required pursuant to Section 5.6(b) below. 
  

 24 

 (b) Any Claim by Buyer, whether made prior to or after the Closing, shall be made by Buyer by delivering
to Seller written notice (a “Claim Notice”) promptly after Buyer has learned of the breach or breaches underlying such Claim (but, without limiting the forgoing, in no event, later than twelve (12) months, after such date) and,
in all events, prior to expiration of any applicable Survival Period. Each Claim Notice shall set forth (a) a description in reasonable detail of the claimed breach or breaches, (b) the Section and subsection of this Agreement or other
document under which the claimed breach or breaches is (are) asserted, and (c) Buyer’s good-faith calculation of the sum of the net diminution, if any, in the total value of the Property resulting from such breach or breaches and the total
amount of any other actual and documented out-of-pocket losses, damages, costs or expenses (including reasonable attorneys’ fees) incurred or reasonably expected to be incurred by Buyer as a result of such breach or breaches (collectively, the
“Claimed Damage”). TIME SHALL BE OF THE ESSENCE in respect of Buyer’s obligation to deliver to Seller a Claim Notice as and when and in the manner herein provided. 
 (c) If, prior to the Closing, Buyer shall assert a Claim or Claims the Claimed Damage for which has potential aggregate Losses in excess of the Seller
Liability Threshold (a “Material Breach”), then Buyer may, as its sole and exclusive remedy, either (x) proceed to close title to the Property without adjustment of the Purchase Price on account of the breach or breaches
underlying such Claim(s) and waive by written notice to Seller (a “Waiver Notice”) such breach or breaches (it being understood and agreed that the closing of title hereunder under such circumstances shall in and of itself be deemed
to constitute such waiver by Buyer, whether or not such Waiver Notice is actually delivered) or (y) terminate this Agreement by giving written notice thereof, which termination shall be effective upon the expiration of the Termination
Nullification Period (as hereinafter defined) unless Seller is entitled hereunder to give, and before said date of expiration has given, a Termination Nullification Notice as provided below. If Buyer has elected to terminate this Agreement pursuant
to clause (y) immediately above, Buyer shall receive a full refund of the Deposit, together with any interest earned thereon, and Buyer shall be entitled to collect the Seller Default Reimbursement in accordance with Section 5.1
above; provided, however, that Seller may nullify such termination within ten (10) Business Days of receipt of Buyer’s written election to terminate (the “Termination Nullification Period”) by delivering to Buyer a notice
(a “Termination Nullification Notice”) nullifying such termination and advising Buyer of its election to adjourn the Closing Date for a period not to exceed sixty (60) days to attempt to cure such Material Breach (cure
constituting any action which causes the total amount of the net adverse affect on the value of the Property, and the actual loss, cost, damage or expense incurred or reasonably expected to be incurred by Buyer from the Claimed Damage not to exceed
the Seller Liability Threshold) in which event Buyer shall be required to close title to the Property without any adjustment to the Purchase Price upon completion of such cure within such adjournment period. If Seller fails to complete such cure
within the above-mentioned sixty-day period, Buyer shall have the right to terminate this Agreement by written notice, and, upon the exercise of such termination right, Buyer shall be entitled to the return of the Deposit, and Buyer shall be
entitled to collect the Seller Default Reimbursement in accordance with Section 5.1 above. 
 (d) To provide for the timely payment of
any Claims asserted by Buyer against Seller after the Closing, an amount equal to not less than the Seller Liability Ceiling reduced by the aggregate amount of all of Seller’s liability for Claims that it has settled (whether by payment,

  

 25 

 
purchase price adjustment or otherwise, in any case to Buyer’s reasonable satisfaction) (the “Escrow Funds”) shall be withheld at
Closing from the Purchase Price payable to Seller and shall be deposited for a period of twelve (12) months in an escrow account with the Escrow Agent pursuant to an escrow agreement in the form attached hereto as Exhibit “Q” (the
“Post-Closing Agreement”), which escrow and Post-Closing Agreement shall be established and entered into at Closing and shall be a condition to Buyer’s obligations under this Agreement. Upon the expiration of the such 12-month
period, the balance of the Escrow Funds will be disbursed to Seller (less the amount of the potential Losses from any Claims that have been asserted by Buyer against Seller to the extent that such Losses are more than the Seller Liability Threshold
in the aggregate), and all interest accrued in the Escrow Funds shall be disbursed to Seller from time to time upon Seller’s written request to Escrow Agent and shall accrue for the exclusive benefit of Seller. 
 ARTICLE 6 
 REPRESENTATIONS AND
WARRANTIES OF SELLER 
 Section 6.1 Representations and Warranties of Seller. Subject to the provisions of
Sections 3.2(c) and 6.2, Seller makes the following representations and warranties as of the Effective Date: 
 (a) Status.
Seller is a limited liability company duly organized or formed, validly existing and in good standing under the laws of the State of Delaware and is qualified to transact business in the State of New York. 
 (b) Authority. The execution and delivery of this Agreement and the performance of Seller’s obligations hereunder have been or will be
duly authorized by all necessary action on the part of Seller, and this Agreement constitutes the legal, valid and binding obligation of Seller, subject to equitable principles and principles governing creditors’ rights generally. 

(c) Non-Contravention. The execution and delivery of this Agreement by Seller and the consummation by Seller of the transactions
contemplated hereby will not (i) violate any judgment, order, injunction, decree, regulation or ruling of any court or Governmental Entity applicable to Seller or the Property or (ii) conflict with, result in a breach of, or constitute a
default under the organizational documents of Seller, any note or other evidence of indebtedness, any mortgage, deed of trust or indenture, or any lease or other material agreement or instrument to which Seller is a party or by which Seller may be
bound, provided that this representation does not address the Ground Lease which is addressed elsewhere in this Agreement. 
 (d) Suits
and Proceedings. Except for the proceedings described in Exhibit “C” and in Exhibit “R”, (1) there are no legal actions, suits or similar proceedings pending and served, or, to Seller’s knowledge, threatened in
writing affecting or relating to the Property and (2) to Seller’s knowledge, there are no claims, charges, grievances, demands, or government investigations, including but not limited to state, local or federal government agency actions,
or similar proceedings affecting or relating to the Property that are material and have been asserted, and which, in the case of both clauses (1) and (2) above, (i) are not adequately covered by existing insurance or (ii) if
adversely determined, would materially adversely affect Seller’s ability to consummate the transactions contemplated hereby. 
  

 26 

 (e) Non-Foreign Entity. Seller is not a “foreign person” or “foreign
corporation” as those terms are defined in the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
 (f) Consents. No consent, waiver, approval or authorization is required from any person or entity (that would materially adversely affect Seller’s ability to consummate the transactions contemplated hereby or has not
already been obtained) in connection with the execution and delivery of this Agreement by Seller or the performance by Seller of the transactions contemplated hereby, provided that this representation does not address the Ground Lease, which is
addressed elsewhere in this Agreement. 
 (g) Condemnation. Seller has not received any written condemnation notice with
respect to all or any part of the Property, and, to Seller’s knowledge, no action in condemnation of the Property is currently pending or threatened. 
 (h) Bankruptcy. Seller has not (i) commenced a voluntary case, or had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any
federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (ii) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any
federal, state or foreign judicial or non-judicial proceedings, to hold, administer and/or liquidate all or substantially all of its property, or (iii) made an assignment for the benefit of creditors. 
 (i) Leases. As of the date hereof, (1) the list of Leases attached hereto as Exhibit “B” is a complete and accurate list, in
all material respects, of all of the Leases affecting the Property as of the date hereof, (2) copies of the Leases that have been provided to Buyer are true, complete and correct in all material respects, (3) Seller has not received any
written notice from a Tenant of (x) a default by Seller (as landlord) under any commercial Lease or (y) a material default by Seller (as landlord) under any residential Lease, in each case, which default has not been cured prior to the
Effective Date and, to Seller’s knowledge, Seller is not otherwise in default under any commercial Lease or material default under any residential Lease, (4) except as set forth on Exhibit “B”, Seller has not given any written
notice to any Tenant of (x) a default under a commercial Lease or (y) a material default under a residential Lease, in each case, which default has not been cured prior to the Effective Date, (5) Exhibit “S” lists all of the
Tenant Deposits which have not been applied in accordance with the terms of each respective Lease, and (6) the information in the rent roll attached hereto as Exhibit “M” is true, complete and correct in all material respects as of
the Effective Date. (7) Seller is not obligated to construct or to cause to be constructed (x) any improvements of space at the Property to build-out the space for a Tenant’s occupancy under any commercial Lease or (y) any
material improvements of space at the Property to build-out the space for a Tenant’s occupancy under any residential Lease, in each case, which have not been accepted by the Tenant as complete in all material respects, other than as set forth
in Part I of Exhibit “N”. (8) Seller is not obligated to pay (A) any amounts to be paid to fund the build-out of space at the Property for a Tenant’s occupancy under any commercial Lease, or for other Tenant improvements or
(B) any material amounts to be paid to fund the 

  

 27 

 
build-out of space at the Property for a Tenant’s occupancy under any residential Lease, or for other Tenant improvements, which have not been paid in
full, other than such portions of the amounts set forth in Part II of Exhibit “N” which portions are not paid prior to Closing. Seller is not obligated to pay any brokerage commission or leasing fee for the term of any Lease which is in
effect as of the Effective Date, other than such portions of the amounts set forth in Part III of Exhibit “N” which portions are not paid prior to Closing. For purposes of this Section 6.1(i) only, the term “Leases” shall
include only those Leases to which Seller is a party or with respect to which Seller has succeeded to the interest of lessor or landlord which affect any portion of the Real Property. 
 (j) Employees. (1) Except for the Union Agreement and that certain Employment Agreement between Peter Jaques and Fifty Seventh Street
Operating LLC, dated as of August 2006, as assigned to Citylife Hotel 57 Management LLC by that certain Assignment and Assumption Agreement, dated as of November 22, 2006, by and between Fifty Seventh Street Operating LLC, and Citylife Hotel 57
Management LLC, neither Seller nor Manager is a party to or bound by any collective bargaining agreement, union agreement or other agreement with or relating to Employees. (2) Set forth on Exhibit “Y” hereto is a complete and accurate
list of all Employees stating for each Employee (i) whether or not the Employee is covered by the Union Agreement and (ii) their salary, hire date and current job title. Before closing, Seller will provide to Buyer or Replacement Manager,
information concerning the Employees’ current wages, benefits, accrued vacation and sick leave. (3) To the best of Seller’s knowledge, no Employee has been improperly classified as exempt for purposes of federal, state and local wage
and hour laws. If Seller discovers before Closing that any Employee has been improperly classified as exempt for purposes of federal, state or local wage and hour laws, Seller shall inform Buyer thereof with reasonably promptness, and the liability
for such improper classification during periods prior to Closing shall be covered by Seller’s indemnification of Buyer. All Employees who are covered by the terms of the Union Agreement have been properly classified and paid wages and benefits
in compliance with the Union Agreement through the date of the Closing. All Employees who have not been paid wages or benefits pursuant to the Union Agreement have been properly excluded from coverage under the Union Agreement. The Opia Restaurant
grievance and/or demand for arbitration, dated May 30, 2006 #u06-006, has been settled by the Seller and Manager with the Union in the Me Too Agreement between the Union and Seller and Manager, dated as of August 1, 2007 with no back pay
liability. 
 (k) Contracts. To Seller’s knowledge, all material service contracts, construction contracts, equipment
leases and other contracts (excluding the Leases and Ground Lease for purposes of this Section 6.1(k)) entered into by Seller or Manager on behalf of Seller and relating to the Property (including all amendments thereto) in effect as of the
Effective Date are listed in Exhibit “D”. To Seller’s knowledge, Seller has not received any written notice from a vendor of a material default by Seller under any material Contract which material default has not been cured prior to
the Effective Date and, to Seller’s knowledge, Seller is not otherwise in material default under any material Contract, and Seller has not given any written notice of a material default under a Contract to any vendor which default has not been
cured prior to the Effective Date. Seller has delivered or made available to Buyer in the digital data room a copy of each material written Contract which is true, complete and correct in all material respects to periods of time to occur after the
Closing, and any material Contract that is not written is either month-to-month or terminable at will. There are no leasing or brokerage agreements relating to the 

  

 28 

 
Property and, to Seller’s knowledge, there are no claims or rights for brokerage commissions or finder’s fees in connection with the leasing of any
portion of the Property that will remain in effect or bind Buyer after the Closing Date. 
 (l) Permits. Seller has delivered
or made available to Buyer in the digital data room copies of all material Licenses and Permits which are true copies thereof in respects material to periods of time to occur after the Closing. 
 (m) Patriot Act. To Seller’s knowledge, Seller is not in violation of any applicable anti-money laundering and anti-terrorist laws,
regulations, rules, executive orders and government guidance, including the reporting, record keeping and compliance requirements of the Bank Secrecy Act (“BSA”), as amended by The International Money Laundering Abatement and
Financial Anti-Terrorism Act of 2001, Title III of the USA PATRIOT Act (the “Patriot Act”), and other authorizing statutes, executives orders and regulations administered by OFAC, and related Securities and Exchange Commission, SRO
or other agency rules and regulations, and has policies, procedures, internal controls and systems that are reasonably designed to ensure such compliance. 
 (n) OFAC. Neither (i) Seller nor any Person controlled by Seller, nor (ii) to the knowledge of Seller, any Person who controls Seller; is a prohibited country, territory, Person, organization,
or entity under any economic sanctions program administered or maintained by OFAC. 
 (o) Gift Certificates, Bookings. Seller
has delivered or made available to Buyer in the digital data room either copies of or information regarding substantially all current Bookings of the Property and substantially all outstanding gift certificates, coupons or vouchers that entitle the
holder thereof to a credit (whether in a specified dollar amount or for a specified item, such as a room night) to be applied against the usual charge for rooms, goods and services at the Property (collectively, the “Gift
Certificates”) applicable to the Property, which information is true, complete and correct in all material respects. 
 (p)
[Intentionally Omitted]. 
 (q) ERISA. 
 (i) Seller either: (i) is not an “employee benefit plan” as defined in ERISA, whether or not subject to ERISA, or a
“plan” as defined in Section 4975 of the Code, and none of Seller’s assets constitutes (or is deemed to constitute for purposes of ERISA or Section 4975 of the Code, or any substantially similar Federal, State or municipal
law) “plan assets” for purposes of 29 CFR Section 2510.3-1, as amended by Section 3(42) of ERISA or otherwise for purposes of ERISA or Section 4975 of the Code; or (ii) is an “employee benefit plan” as defined
in ERISA, but not subject to ERISA or to Section 4975 of the Code, or it is an entity the assets of which are not considered to be “plan assets” or an “employee benefit plan” which is subject to ERISA or Section 4975 of
the Code, and the consummation of the transaction contemplated by this Agreement will not constitute a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or otherwise result in a violation of any Federal,
State or municipal law that is substantially similar to Section 406 of ERISA or Section 4975 of the Code. 
  

 29 

 (ii) With respect to each plan subject to, or previously subject to Title IV of ERISA to
which Seller or any entity aggregated with Seller under Section 414(b) or (c) of Section 4001 of ERISA (each an “ERISA Affiliate”) or Manager, sponsors, maintains or contributes to, or has had any liability or
obligation to contribute to with respect to the Employees (the “Title IV Plans”), to Seller’s knowledge (1) no lien in favor of any Title IV Plan, the Internal Revenue Service or the Pension Benefit Guaranty Corporation
has arisen or been threatened against Seller or Manager; (2) neither Seller nor Manager has incurred or reasonably expects to incur prior to the Closing Date any liability under Title IV of ERISA arising in connection with the termination of,
or complete or partial withdrawal from, any Title IV Plan; and (3) no plan withdrawal has occurred for which liability has been assessed; and (4) no potential withdrawal liability exists from any action of Seller occurring prior to Closing
with respect to any Title IV Plan covering Employees. 
 (iii) Seller has no ERISA Affiliates except as set forth on Exhibit
“Z” hereto. To Seller’s knowledge, with respect to each multiemployer plan in which any ERISA Affiliate participates or has participated, (1) no ERISA Affiliate has withdrawn, partially withdrawn, or received any notice of any
claim or demand for withdrawal liability or partial withdrawal liability; (2) no ERISA Affiliate has failed to make any required contributions. 
 (iv) Other than the benefit plans set forth on Exhibit “Y” hereto (the “Existing Employee Plans”), there are no “employee benefit plan” (as such term is defined in
Section 3(3) of ERISA) which (1) is subject to any provision of ERISA, (2) is or has been entered into, maintained, administered or contributed to by Seller or any of its ERISA Affiliates and (3) currently covers any Employee of
the Property or natural Person formerly employed at the Property (all of the foregoing are referred to collectively herein as the “Employee Plans”). Buyer is not assuming the Guardian Plan or Oxford Plan referenced on Exhibit
“Y” hereto, and Seller or Manager shall be responsible for any COBRA obligations with respect to such plans. 
 (v)
Other than the Existing Employee Plans, there are no material employment, severance pay, continuation pay or termination pay, or other similar written contracts, arrangements policies, or plans or arrangements providing for health, medical, life or
other welfare benefit coverage (including insured, self-insured or other arrangements), disability benefits, supplemental unemployment benefits, vacation benefits or retirement benefits or providing for deferred compensation, profit-sharing,
bonuses, stock options, stock appreciation or other forms of incentive compensation or post-retirement insurance, compensation or benefits which is or has been entered into, maintained, administered or contributed to, as the case may be, by Seller
or any of its ERISA Affiliates and which currently covers any Employee or natural Person formerly employed at the Property. Prior to the closing, Seller will deliver to Buyer or Replacement Manager true and complete copies of all Employee Plans
referenced in the Union Agreement. To Seller’s knowledge, all contributions and premiums that are 

  

 30 

 
required to have been made by Seller or Manager to any Title IV Plan or Multiemployer Pension Plan, or by any ERISA Affiliate of the Seller with respect to
any Title IV Plan, under the terms of such Multiemployer Pension Plan or Title IV Plan, applicable law, or an applicable collective bargaining agreement, for all complete and partial periods up to and including the Closing Date, have been made or
will be made to the appropriate Multiemployer Pension Plan or Title IV Plan on or before the Closing Date. 
 (vi) Seller and
Manager have contributed to the Multiemployer Pension Plan covered by the Union Agreement since no earlier than January, 1996. 
 (r)
Ground Lease. (1) Set forth on Exhibit “J” attached hereto is a list setting forth the lease, and all amendments and modifications thereto, pursuant to which Seller leases the Real Property (the “Ground
Lease”). (2) Seller has delivered to Buyer a true, complete and correct copy of the Ground Lease. (3) Seller has paid all fixed or base rent payable under the Ground Lease through the date of this Agreement. (4) Seller has
paid all commercial rent tax, if any, due in respect of rent payable under the Ground Lease, through the date of this Agreement. (5) Seller has paid all other amounts due and payable under the Ground Lease through the date of this Agreement
that either have been billed by Ground Lessor or of which Seller has knowledge. (6) Except as set forth on Exhibit “J”, Seller has not received any unresolved written notices of default from the landlord under the Ground Lease
(“Ground Lessor”) except as set forth on Exhibit “J”, and to the knowledge of Seller the Order and Judgment issued February 27, 2007 by the Supreme Court of the State of New York applicable to the notices set forth on
Exhibit “J” has not been appealed, rescinded or modified and remains in full force or effect. Except as set forth on Exhibit “B”, there exist no subleases entered into by Seller. 
 (t) Environmental Matters. Except as otherwise disclosed in the environmental reports which Seller has delivered to Buyer, Seller has not
received any notice that any environmental investigation, administrative order, notification, consent order, litigation, claim, judgment or settlement pertaining to compliance with Environmental Laws is pending or threatened with respect to the
Property or any portion thereof . 
 Section 6.2 Survival Period; Limitation on Liability. The representations and
warranties of Seller set forth in Section 6.1 will survive the Closing until the date that is twelve (12) months after the Closing Date (the “Survival Period”). Seller shall have no liability with respect to any of
Seller’s representations or warranties herein or in any document delivered by Seller at the Closing or in connection with the transactions contemplated hereby provided that (x) prior to the Closing, Buyer has actual knowledge of such
breach of representation or warranty of Seller, or Buyer obtains prior to the Closing such actual knowledge (from whatever source whether as a result of Buyer’s Due Diligence, the Seller Date Down Certificate, other written disclosure by Seller
or Seller’s agents and employees or otherwise) that contradicts such representation or warranty, or information in the Due Diligence Items contradicts such representation or warranty, and Buyer nevertheless proceeds to Closing and (y) the
breach of such representation or warranty occurred after the date hereof. Sections 9.7 and 10.11 will survive Closing without limitation unless a specified period is otherwise provided in this Agreement. All other representations, warranties,
covenants and agreements made or undertaken by Seller under this Agreement, unless otherwise specifically provided in this Agreement, will not survive the Closing Date but will be merged into the closing documents delivered at the Closing.

  

 31 

 Section 6.4 Seller’s Knowledge. For purposes of this Agreement and any document
delivered at Closing, whenever the phrase “to Seller’s knowledge,” or the “knowledge” of any Seller or words of similar import are used, they shall be deemed to refer to facts within the actual knowledge only of Kevin
Maloney or Paisley Boney and no others, at the times indicated only, without duty of inquiry whatsoever. 
 Section 6.5 Liability
of Individual Persons. Buyer acknowledges that the individuals named above are named solely for the purpose of defining and narrowing the scope of Seller’s knowledge and not for the purpose of imposing any liability on or creating any
duties running from such individuals to Buyer. Buyer covenants that it will bring no action of any kind against such individuals, any shareholder, manager, officer partner or member of Seller, as applicable, or related to or arising out of these
representations and warranties. 
 ARTICLE 7 
 REPRESENTATIONS , WARRANTIES AND COVENANTS OF BUYER 
 Section 7.1 Buyer’s
Representations and Warranties. Buyer represents and warrants to Seller the following as of the Effective Date: 
 (a)
Status. Buyer is a corporation duly organized and validly existing under the laws of the Commonwealth of Virginia. 
 (b)
Authority. The execution and delivery of this Agreement and the performance of Buyer’s obligations hereunder have been or will be duly authorized by all necessary action on the part of Buyer and this Agreement constitutes the
legal, valid and binding obligation of Buyer, subject to equitable principles and principles governing creditors’ rights generally. 
 (c) Non-Contravention. The execution and delivery of this Agreement by Buyer and the consummation by Buyer of the transactions contemplated hereby will not violate any judgment, order, injunction, decree, regulation or ruling
of any court or Governmental Entity applicable to Buyer or conflict with, result in a breach of, or constitute a default under the organizational documents of Buyer, any note or other evidence of indebtedness, any mortgage, deed of trust or
indenture, or any lease or other material agreement or instrument to which Buyer is a party or by which it is bound. 
 (d)
Consents. No consent, waiver, approval or authorization is required from any person or entity (that has not already been obtained) in connection with the execution and delivery of this Agreement by Buyer or the performance by Buyer of
the transactions contemplated hereby. 
 (e) Bankruptcy. Buyer has not (i) commenced a voluntary case, or had entered
against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors, (ii) caused, suffered or
consented to the appointment of a receiver, trustee, 

  

 32 

 
administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold, administer and/or
liquidate all or substantially all of its property, or (iii) made an assignment for the benefit of creditors. 
 (f) Patriot
Act. To Buyer’s knowledge, Buyer is in compliance with all applicable anti-money laundering and anti-terrorist laws, regulations, rules, executive orders and government guidance, including the reporting, record keeping and compliance
requirements of the BSA, as amended by The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, Title III of the Patriot Act, and other authorizing statutes, executive orders and regulations administered by OFAC, and
related Securities and Exchange Commission, SRO or other agency rules and regulations, and has policies, procedures, internal controls and systems that are reasonably designed to ensure such compliance. 
 (g) OFAC. Neither (i) Buyer nor any Person controlled by Buyer; nor (ii) to the knowledge of Buyer, any Person who controls
Buyer; is a prohibited country, territory, Person, organization, or entity under any economic sanctions program administered or maintained by OFAC. 
 (h) Senior Foreign Political Figure. Unless disclosed in writing to Seller on the date hereof, Buyer is not a Senior Foreign Political Figure, an Immediate Family Member or a Close Associate of a Senior Foreign Political
Figure, or controlled by a Senior Foreign Political Figure, or an Immediate Family Member or a Close Associate of a Senior Foreign Political Figure, and, to the best of Buyer’s knowledge, after making due inquiry, none of the direct or indirect
owners of Buyer (other than any owner(s) of any interest(s) in a public reporting company) is a Senior Foreign Political Figure, or an Immediate Family Member or a Close Associate of a Senior Foreign Political Figure. 
 Section 7.2 [Intentionally Omitted.] 
 Section 7.3 Buyer’s Independent Investigation. Buyer acknowledges that by the expiration of the Review Period, unless Buyer notifies Seller otherwise in writing (in which case Buyer shall be
entitled to exercise its rights under Section 3.1 above to terminate this Agreement, but, for purposes of Section 5.1 above, such notice and the circumstances underlying such notice shall not constitute a default by Seller that entitles
Buyer to reimbursement of any of the expenses set forth therein), Buyer shall have been given, or waived its right to, a full opportunity to inspect and investigate, and shall have reviewed as thoroughly as it desires, each and every aspect of the
Property, either independently or through agents of Buyer’s choosing, including, without limitation: 
 All matters relating to title,
together with all governmental and other legal requirements such as taxes, assessments, zoning, use permit requirements, and building codes; 
 The physical condition and aspects of the Property, including, without limitation, the interior, the exterior, the square footage within the improvements on the Real Property and within each tenant space therein, the structure, the paving,
the utilities, and all other physical and functional aspects of the Property, including, without limitation, an examination for the presence or absence of Hazardous Materials, which shall be performed or arranged by Buyer at Buyer’s sole
expense; 
  

 33 

 Any easements and/or access rights affecting the Property; 
 The Leases and all matters in connection therewith, including, without limitation, the ability of the Tenants to pay rent, the tenant improvements
performed or to be performed and the construction contract relating thereto; 
 The Contracts, the Licenses and Permits and any other
documents or agreements of significance affecting the Property; and 
 All other matters of material significance affecting the Property or
delivered to Buyer by Seller in accordance with Article 3 of this Agreement, or which Buyer otherwise reasonably considers to be relevant to the acquisition of the Property. 
 THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT HAS BEEN NEGOTIATED BETWEEN SELLER AND BUYER, THIS AGREEMENT REFLECTS THE MUTUAL AGREEMENT OF SELLER
AND BUYER, AND BUYER HAS BEEN AFFORDED THE OPPORTUNITY TO CONDUCT ITS OWN INDEPENDENT EXAMINATION OF THE PROPERTY. OTHER THAN THE MATTERS REPRESENTED IN SECTION 6.1 HEREOF AS SUCH MAY BE LIMITED BY SECTION 6.2 HEREOF OR IN OTHER PROVISIONS OF THIS
AGREEMENT, BUYER HAS NOT RELIED UPON AND WILL NOT RELY UPON, EITHER DIRECTLY OR INDIRECTLY, ANY REPRESENTATION OR WARRANTY OF SELLER OR ANY OF SELLER’S AGENTS OR REPRESENTATIVES, AND BUYER HEREBY ACKNOWLEDGES THAT NO SUCH REPRESENTATIONS HAVE
BEEN MADE. EXCEPT AS MAY BE REPRESENTED AND WARRANTED IN SECTION 6.1 OR IN OTHER PROVISIONS OF THIS AGREEMENT, (1) SELLER SPECIFICALLY DISCLAIMS, AND NEITHER IT NOR ANY OTHER PERSON IS MAKING, ANY REPRESENTATION, WARRANTY OR ASSURANCE
WHATSOEVER TO BUYER AND (2) NO WARRANTIES OR REPRESENTATIONS OF ANY KIND OR CHARACTER, EITHER EXPRESS OR IMPLIED, ARE MADE BY SELLER OR RELIED UPON BY BUYER WITH RESPECT TO THE STATUS OF TITLE TO OR THE MAINTENANCE, REPAIR, CONDITION, DESIGN OR
MARKETABILITY OF THE PROPERTY, OR ANY PORTION THEREOF, INCLUDING BUT NOT LIMITED TO (a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (b) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (c) ANY IMPLIED OR
EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (d) ANY RIGHTS OF BUYER UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, (e) ANY CLAIM BY BUYER FOR DAMAGES BECAUSE OF DEFECTS, WHETHER KNOWN OR UNKNOWN,
LATENT OR PATENT, WITH RESPECT TO THE IMPROVEMENTS OR THE PERSONAL PROPERTY, (f) THE FINANCIAL CONDITION OR PROSPECTS OF THE PROPERTY AND (g) THE COMPLIANCE OR LACK THEREOF OF THE REAL PROPERTY OR THE IMPROVEMENTS WITH GOVERNMENTAL
REGULATIONS, IT BEING THE EXPRESS INTENTION OF SELLER AND BUYER 

  

 34 

 
THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PROPERTY WILL BE CONVEYED AND TRANSFERRED TO BUYER IN ITS PRESENT CONDITION AND STATE OF
REPAIR, “AS IS” AND “WHERE IS”, WITH ALL FAULTS. Buyer represents that it is a knowledgeable, experienced and sophisticated buyer of real estate, and that it is relying solely on its own expertise and
that of Buyer’s consultants in purchasing the Property. Buyer acknowledges and agrees that it has had the opportunity to conduct such inspections, investigations and other independent examinations of the Property and related matters, including
but not limited to the physical and environmental conditions thereof, and will rely upon same and not upon any statements of Seller or of any member, manager, officer, director, agent or attorney of Seller. Buyer acknowledges that all information
obtained by Buyer will be obtained from a variety of sources and Seller, except as expressly provided in this Agreement, will not be deemed to have represented or warranted the completeness, adequacy, truth or accuracy of any of the Due Diligence
Items or other such information heretofore or hereafter furnished to Buyer. Upon Closing, Buyer will assume the risk that adverse matters, including, but not limited to, adverse physical and environmental conditions, may not have been revealed by
Buyer’s inspections and investigations. Buyer acknowledges that Seller has delegated the day-to-day management and operation of the Property to a third party manager of the Property. Buyer acknowledges and agrees that upon Closing, Seller will
sell and convey to Buyer, and Buyer will accept the Property, “AS IS, WHERE IS,” with all faults, except as otherwise expressly provided in this Agreement. Buyer acknowledges and agrees that, except as otherwise expressly
provided in this Agreement, Buyer and Seller have specifically bargained for the assumption by Buyer of all responsibility to investigate the Property, Laws and Regulations, Leases, Contracts and Permitted Exceptions and of all risk of adverse
conditions and have structured the Purchase Price and other terms of this Agreement in consideration thereof. Buyer further acknowledges and agrees that there are no oral agreements, warranties or representations, collateral to or affecting the
Property, by Seller, any member of Seller, any broker or other agent of Seller or any third party. Seller is not liable or bound in any manner by any oral or written statements, representations or information pertaining to the Property furnished by
any real estate broker, agent, employee, servant or other person, unless the same are specifically set forth or referred to herein. Buyer acknowledges that the Purchase Price reflects the “as is, where is” nature of this sale
and any faults, liabilities, defects or other adverse matters that may be associated with the Property, except as otherwise expressly provided in this Agreement. BUYER, WITH BUYER’S COUNSEL, HAS FULLY REVIEWED THE DISCLAIMERS AND WAIVERS SET
FORTH IN THIS AGREEMENT, AND UNDERSTANDS THE SIGNIFICANCE AND EFFECT THEREOF. BUYER ACKNOWLEDGES AND AGREES THAT THE DISCLAIMERS AND OTHER AGREEMENTS SET FORTH HEREIN ARE AN INTEGRAL PART OF THIS AGREEMENT, AND THAT SELLER WOULD NOT HAVE AGREED TO
SELL THE PROPERTY TO BUYER FOR THE PURCHASE PRICE WITHOUT THE DISCLAIMER AND OTHER AGREEMENTS SET FORTH IN THIS AGREEMENT. THE TERMS AND CONDITIONS OF THIS SUBSECTION 7.3 WILL EXPRESSLY SURVIVE THE CLOSING, WILL NOT MERGE WITH THE PROVISIONS OF ANY
CLOSING DOCUMENTS. 
  

 35 

 Section 7.4 Buyer’s Release of Seller. 
 (a) Seller Released From Liability. Seller is hereby released from all responsibility and liability to Buyer regarding the condition
(including the presence in the soil, air, structures and surface and subsurface waters, of Hazardous Materials or substances that have been or may in the future be determined to be toxic, hazardous, undesirable or subject to regulation and that may
need to be specially treated, handled and/or removed from the Property under current or future federal, state and local laws, regulations or guidelines), valuation, salability or utility of the Property, or its suitability for any purpose
whatsoever. Buyer acknowledges that it has inspected the Property, observed its physical characteristics and existing conditions and had the opportunity to conduct such investigation and study on and of said Property and adjacent areas as it deemed
necessary, and hereby waives any and all objections to or complaints (including but not limited to actions based on federal, state or common law and any private right of action under CERCLA, RCRA or any other state and federal law to which the
Property is or may be subject) regarding physical characteristics and existing conditions, including without limitation structural and geologic conditions, subsurface soil and water conditions and solid and hazardous waste and Hazardous Materials
on, under, adjacent to or otherwise affecting the Property. Buyer further hereby assumes the risk of changes in applicable laws and regulations relating to past, present and future environmental conditions with respect to the Property, and the risk
that adverse physical characteristics and conditions, including without limitation the presence of Hazardous Materials or other contaminants, may not be revealed by its investigation. 
 (b) Survival. The waivers and releases by Buyer in subsection 7.4(a) shall survive either (a) the Closing, or (b) any termination
of this Agreement. 
 Section 7.5 Discharge. Notwithstanding any other provisions contained herein, or in any document or
instrument delivered in connection with the transfer contemplated hereby, to the contrary (including, without limitation, any language providing for survival of certain provisions hereof or thereof), Buyer hereby acknowledges and agrees that
(a) prior to Closing, Buyer’s sole recourse in the event that the sale of the Property is not consummated due to a breach by Seller shall be as set forth in Section 5.1 hereof, and (b) Seller shall, upon consummation of Closing,
be deemed to have satisfied and fulfilled all of Seller’s covenants, indemnities, and obligations contained in this Agreement and the documents delivered pursuant hereto, and Seller shall have no further liability to Buyer or otherwise with
respect to this Agreement, the transfers contemplated hereby, or any documents delivered pursuant hereto, except to the extent of any obligation or liability hereunder expressly stated herein to survive Closing. 
 Section 7.6 Union Agreements. 
 (a) Buyer acknowledges that the Property is covered by the Industry Wide Agreement between the New York Hotel & Motel Trades Council, AFL-CIO, (the “Union”) and the Hotel Association of New York City, Inc,
effective as of July 1, 2006, as amended by that certain Me Too Agreement between the Union and Seller and Manager, dated as of August 1, 2007 (the “Union Agreement”). Buyer shall on the Closing Date cause Replacement
Manager to offer employment to and hire all of the Employees on their existing terms and conditions of employment (including, but not limited to, existing seniority, compensation and benefits) and cause Replacement Manager to assume the Union
Agreement. Buyer shall use commercially reasonable efforts to, at Closing, provide Seller with a true and complete copy of the executed 

  

 36 

 
agreement between Replacement Manager and the Union which effectuates Replacement Manager’s obligation to assume the Union Agreement and to employ all
unionized Employees under their then current terms and conditions of employment as of the date of the Closing. In the event that Buyer sells the Property during the term of the Union Agreement, Buyer shall require the purchaser of the Property
and/or the purchaser’s manager to offer employment to and hire all of the employees then covered by the Union Agreement on their existing terms and conditions of employment (including, but not limited to, existing seniority, compensation and
benefits) and cause the purchaser and/or purchaser’s manager to assume the Union Agreement. Promptly after the Effective Date, but in any case, no less than ten (10) Business Days prior to the Closing, Seller shall give the Union written
notice of the execution of this Agreement. 
 (b) Buyer agrees to indemnify, defend and hold Seller and Manager free and harmless from and
against any and all liability, claims, counterclaims, actions, damages, judgments, penalties, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements including those in connection with enforcing this
indemnity) first arising under the Union Agreement on and after the Closing Date (including, but not limited to, any liability as a result of the Worker Adjustment and Retraining Notification Act). Without limiting the general application of the
preceding sentence, it is specifically agreed that Buyer agrees to indemnify, defend and hold free and harmless Seller and Manager from and against any and all liability, claims, counterclaims, actions, damages, judgments, penalties, costs and
expenses (including, without limitation, reasonable attorneys’ fees and disbursements including in connection with enforcing this indemnity), arising out of a failure by either Buyer or Replacement Manager to adopt the Union Agreement or offer
employment to all Employees subject to the Union Agreement under the terms and conditions applicable to them immediately prior to the closing; and (y) with respect to any severance or termination pay or any pension plan withdrawal liability
arising as a result of the transaction covered by this Agreement or of any sale or change in ownership or management of the Property. Seller agrees to indemnify, defend and hold Buyer (and Replacement Manager) free and harmless from and against any
and all liability, claims, counterclaims, actions, damages, judgments, penalties, costs and expenses (including, without limitation, reasonable attorneys’ fees and disbursements including in connection with enforcing this indemnity) first
arising under the Union Agreement before the Closing Date, but specifically excluding any pension plan withdrawal liability arising as a result of the transaction covered by this Agreement for the period January 1996 to the Closing Date. 

The obligations and undertaking of Buyer under this Section 7.6 are a special inducement to Seller to enter into this Agreement without which
Seller would not enter into this Agreement. The provisions of this Section 7.6 shall survive the Closing. 
 Section 7.7
Multiemployer Pension Plan. 
 (a) In addition to its indemnification obligations under Section 7.6 above, Buyer shall cause
any property manager retained by Buyer with respect to the Property (“Replacement Manager”) to assume responsibility for, and pay when due, all contributions required to be made to the Multiemployer Pension Plan in accordance with
the terms of the Union Agreement on and after the Closing Date, for substantially the same number of contribution base units for which Seller (or Manager) had an obligation to contribute with respect to the Property. For purposes of this Agreement,
“Multiemployer Pension Plan” shall mean the multiemployer pension plan covered by the Union Agreement or its successor agreements. 
  

 37 

 (b) Buyer and Replacement Manager shall take appropriate steps to satisfy ERISA Section 4204 with
respect to the transaction contemplated by this Agreement. During the period commencing on the first day of the plan year following the Closing Date and ending on the expiration of the fifth (5th) such plan year (the “Contribution
Period”), Buyer shall cause Replacement Manager to provide to the Multiemployer Pension Plan either a bond, letter of credit or an escrow in an amount and manner meeting the requirements of section 4204 of ERISA. Notwithstanding anything
contained in this Section 7.7 to the contrary, neither Buyer nor Replacement Manager shall be obligated to provide any bond, letter of credit or escrow required herein in the event and to the extent that Buyer (or Replacement Manager) obtains
from the Pension Benefit Guaranty Corporation (the “PBGC”) or the Multiemployer Pension Plan a proper variance or exemption under section 4204(c) of ERISA and the applicable regulations thereunder, provided any and all requirements
of said variance or exemption are met (a “Variance”). Seller agrees to cooperate with and assist (and cause Manager to cooperate with and assist) Buyer (or Replacement Manager) in connection with any application for such a variance
or exemption made by Buyer (or Replacement Manager) to the PBGC or the Multiemployer Pension Plan including, but not limited to, requesting from such Multiemployer Pension Plan such data and information that Buyer requests in writing that Seller (or
Manager) obtain from such plan. The full costs and expenses relating to the provision of any bond, letter of credit or escrow required under this Section 7.7 shall be paid by Buyer (or Replacement Manager). 
 (c) Buyer agrees that any action on its (or Replacement Manager’s) part that causes withdrawal liability (either partial or complete) during the
Contribution Period shall be for valid business reasons only. In the event of a subsequent sale of the Property by Buyer during the Contribution Period, Buyer agrees to comply with the provisions of section 4204(a)(1) of ERISA. 
 (d) If Buyer (or Replacement Manager) at any time withdraws from the Multiemployer Pension Plan in a complete or partial withdrawal with respect to the
Employees covered by the Union Agreement during the Contribution Period, the employer of these Employees (i.e., the Seller or Manager, as applicable, as set forth in section 4204 of ERISA) shall be secondarily liable for any withdrawal liability it
would have incurred with respect to such Employees (but for the provisions of section 4204 of ERISA) if the withdrawal liability of Buyer (or Replacement Manager) with respect to such Multiemployer Pension Plan is not paid. Because of such potential
liability, Buyer agrees to provide (or cause its manager to provide) Seller at least ten (10) days advance notice of any action or event which could result in the imposition of withdrawal liability contemplated by this Section 7.6(d), and
in any event Buyer shall immediately furnish (or cause its manager to furnish) Seller with a copy of any notice of withdrawal liability it may receive with respect to the Multiemployer Pension Plan, together with all the pertinent details.

 The obligations and undertaking of Buyer under this Section 7.7 are a special inducement to Seller to enter into this Agreement
without which Seller would not enter into this Agreement. The provisions of this Section 7.7 shall survive the Closing. 
  

 38 

 Section 7.8 Ground Lease Assumption. 
 (a) Within five (5) Business Days of execution of this Agreement, Buyer shall deliver to Seller information regarding Buyer’s experience in
managing and operating the Property and its net worth and ability to perform all of the obligations of the lessee under the Ground Lease (the “Ground Lease Assumption Evidence”). Buyer shall cooperate with Seller, at no cost to
Buyer, in Seller’s efforts to (x) effect a release (the “Ground Lease Guaranty Release”) from Ground Lessor in favor of Ziel Feldman of that certain Guarantee Until Delivery of Possession given by Ziel Feldman in favor of
Ground Lessor in connection with the execution of the Ground Lease (the “Ground Lease Guaranty”) in accordance with the terms thereof and (y) cause Ground Lessor to deliver to Seller confirmation of such Ground Lease Guaranty
Release. If Ground Lessor does not deliver confirmation of the Ground Lease Guaranty Release no less than one (1) Business Day prior to the Closing Date, Buyer shall, on the Closing Date, deliver to Ground Lessor a guaranty in substitution of
the Ground Lease Guaranty from a person or persons having a cumulative net worth in excess of Ten Million Dollars ($10,000,000) of which at least Two Million Dollars ($2,000,000) is in liquid assets (the “Ground Lease Substitution
Guaranty”) and deliver to Seller a copy thereof along with evidence of such person’s net worth (such obligation of Buyer, the “Ground Lease Release Obligation”). 
 (b) Buyer shall cooperate with Seller (including, but not limited to, posting a substitute letter of credit or cash deposit), in Seller’s efforts to
cause Ground Lessor to return to Seller the letter of credit in the amount of One Million Dollars ($1,000,000), together with such other documents as are necessary to release Seller from its obligations thereunder, currently being held by Ground
Lessor as security for the obligations of Seller under the Ground Lease pursuant to Article 39 thereof (the “Ground Lease Letter of Credit”). If Ground Lessor does not return the Ground Lease Letter of Credit by the Closing Date,
Buyer shall continue to cooperate with Seller’s efforts to cause such return (including, but not limited to, posting a substitute letter of credit or cash deposit to the extent the same has not already occurred) and either (x) deliver to
Seller a sight draw letter of credit in the amount of One Million Dollars ($1,000,000) in form acceptable to Seller in its reasonable discretion or (y) establish and fund a reserve account in the amount of One Million Dollars ($1,000,000) which
shall be held by Escrow Agent, and Seller shall have the right to draw upon such letter of credit or reserve account in the event of any draw on the Ground Lease Letter of Credit. 
 (c) Seller shall deliver to Ground Lessor notice of Seller’s intent to assign the Ground Lease to Buyer as contemplated hereunder within five
(5) days of receipt of the Ground Lease Assumption Evidence (such notice shall include the Ground Lease Assumption Evidence and request Ground Lessor’s approval thereof with language that is reasonably satisfactory to Buyer), and Seller
shall use its commercially reasonable efforts to cause Ground Lessor to deliver its written consent to such assignment prior to the Closing Date, provided that if Ground Lessor fails to respond to such notice within ten (10) days of receiving
same, such failure to respond shall be deemed Ground Lessor’s delivery of written consent for purposes of this sentence. If Ground Lessor does not deliver such written consent by the Closing Date and does not fail to respond to such notice by
the expiration of the aforementioned ten-day period, either Seller or Buyer shall have the right to terminate this Agreement by giving written notice to the other party, in which event the Deposit shall be paid to Buyer and, thereafter, the parties
shall have no further rights or obligations hereunder except for those obligations which expressly survive the termination of this Agreement. 
  

 39 

 ARTICLE 8 
 LEASES; MAINTENANCE OF PROPERTY 
 Except as otherwise consented to or approved by Buyer,
Seller covenants and agrees with Buyer as follows: 
 Section 8.1 New Leases; Lease Modifications. After the Effective
Date, Seller shall not, without Buyer’s prior written consent in each instance, which consent shall not be unreasonably withheld and shall be reasonably given or denied in good faith, with the reasons for such denial specified in reasonable
detail, enter into a New Lease; modify or amend any Pre-Effective Date Lease or any New Lease entered into prior to the Closing Date (except pursuant to the exercise by a Tenant of an option or other right contained in such Tenant’s Lease); or
consent to any assignment or sublease in connection with any Pre-Effective Date Lease or New Lease, unless Seller has no legally effective right to object thereto pursuant to the applicable Lease (provided that Seller shall have the right to consent
to a sublease of the premises currently leased under that certain lease dated November 8, 2006 with Indulge Boutique for the retail store at 696 Lexington or an assignment of such lease; provided that Seller reasonably deems satisfactory the
terms of such sublease or assignment, such sublease or assignment does not result in a material modification of such lease, and , and the existing tenant is not released from its liability under such Lease); or modify or terminate any Lease. Seller
shall furnish Buyer with a written notice of the proposed action which shall contain information regarding the proposed action that Seller believes is reasonably necessary to enable Buyer to make informed decisions with respect to the advisability
of the proposed action. If Buyer fails to object in writing to any such proposed action within five (5) Business Days after receipt of the aforementioned information, Buyer shall be deemed to have approved the proposed action. Seller shall
provide Buyer with an executed copy of any such New Lease or Lease modification, amendment, assignment, sublease, or termination promptly after the execution and delivery thereof. If any Lease requires that the landlord’s consent be given under
the applicable circumstances (or not be unreasonably withheld), then Buyer shall be deemed to have approved such action. Any notice from Buyer rejecting the proposed action shall include a description of the reasons for Buyer’s rejection.
Notwithstanding the provisions of this Section 8.1, Seller shall have the right, without giving notice to or receiving the consent of Buyer, to make (and accept cancellations of) Bookings. 
 Section 8.2 Lease Expenses. At Closing, Buyer shall reimburse Seller for any and all Reimbursable Lease Expenses to the extent that
the same have been paid by Seller prior to Closing. In addition, at Closing, Buyer shall assume Seller’s obligations to pay, when due (whether on a stated due date or by acceleration) any Reimbursable Lease Expenses unpaid as of the Closing,
and all other leasing costs and expenses associated with the Property which arise or become payable after the Closing. Buyer hereby agrees to indemnify, defend and hold Seller harmless from and against any and all claims for such Reimbursable Lease
Expenses which remain unpaid for any reason at the time of Closing, and such other leasing costs and expenses attributable to periods of time after the Closing, which obligations of Buyer shall survive the Closing and shall not be merged therein.
Each party shall make available to the other all records, 

  

 40 

 
bills, vouchers and other data in such party’s control verifying Reimbursable Lease Expenses and such other leasing costs and expenses and the payment
thereof. The provisions of this Section 8.2 shall survive the Closing. Buyer hereby assumes all obligations with respect to future exercise of rights by any Tenant under its Lease, including without limitation a right to renew its Lease or
expand its space, and Buyer shall indemnify Seller against any claims by any broker in connection with its exercise of any such rights after Closing. 
 Section 8.3 Lease Enforcement. Subject to the provisions of Section 8.1 above, prior to the Closing Date, Seller shall have the right, but not the obligation (except to the extent that
Seller’s failure to act shall constitute a waiver of such rights or remedies), to enforce the rights and remedies of the landlord under any Pre-Effective Date Lease or New Lease, by summary proceedings or otherwise (including, without
limitation, the right to remove any Tenant), and to apply all or any portion of any Tenant Deposits then held by Seller toward any loss or damage incurred by Seller by reason of any defaults by Tenants, and the exercise of any such rights or
remedies in accordance with the affected Leases and applicable law shall not affect the obligations of Buyer under this Agreement in any manner or entitle Buyer to a reduction in, or credit or allowance against, the Purchase Price or give rise to
any other claim on the part of Buyer. 
 Section 8.4 Certain Interim Operating Covenants. Seller covenants to Buyer that
Seller will, from the Effective Date until Closing: (a) continue to operate, manage and maintain the Property in the ordinary course of Seller’s business and substantially in accordance with Seller’s present practice, subject to
ordinary wear and tear and further subject to Section 10.2; (b) maintain fire and extended coverage insurance on the Property which is at least equivalent in all material respects to the insurance policies covering the Land and the
Improvements of the Property as of the Effective Date; and (c) not enter into any new contract for the provision of goods or services to or with respect to the Property or renew, extend, modify or replace any of the Contracts unless such
contract is terminable as of the Closing Date without payment of any fees or penalty or unless Seller pays such fees or penalties or Buyer consents thereto in writing, which approval shall not be unreasonably withheld, delayed or conditioned.
Notwithstanding anything contained in this Agreement to the contrary, Buyer acknowledges that Manager has certain rights under the Management Agreement, including without limitation, the right to execute certain contracts and other agreements and to
take certain actions with respect to the Property, and the performance of Manager’s rights and obligations under the Management Agreement shall not result in a breach by Seller of its obligations under this Agreement. Between the Effective Date
and the Closing Date, the hiring and employment policies with respect to Employees of who are employees of Manager shall remain within the sole control of Manager. Manager shall remain the sole judge of the fitness and qualifications of such
Employees and Buyer hereby acknowledges and agrees that Manager is vested with such discretion in hiring, supervising, directing, discharging and determining the compensation, other benefits and terms of employment of such Employees, as is set forth
in the Management Agreement. In addition, Seller shall terminate the Management Agreement effective as of the Closing Date and pay any and all costs and expenses of termination thereof. 
 Section 8.5 Violations. Seller shall continue to use its commercially reasonable efforts (in the same manner it has been making such
efforts heretofore) to cure the Existing Violations and all Subsequent Violations, if any; provided, however, if any Existing Violations 

  

 41 

 
or Subsequent Violations remain uncured and Closing nevertheless occurs, Seller shall nevertheless be obligated to continue to use such commercially
reasonable efforts to cure the same and shall establish and fund a reserve account (the “Violations Holdback”) in the amount of One Hundred Thousand Dollars ($100,000) which shall be held by Escrow Agent for use by Seller or Buyer
to cure any such remaining violations. Upon the earlier of (x) the expiration of one (1) year from the Closing Date and (2) the date on which all of such violations being cured, the balance of the Violations Holdback will be disbursed
to Seller (less any amounts spent by Buyer for its reasonable costs to cure such violations, which such amounts shall be disbursed to Buyer). All interest accrued in the Violations Holdback shall be disbursed to Seller from time to time upon
Seller’s written request to Escrow Agent and shall accrue for the exclusive benefit of Seller. This Section 8.5 shall survive Closing. 
 Section 8.6 Post-Closing Receipt of Rents. In the event that, after the Closing, Seller receives any Rents or other amounts due from one or more Tenants with respect to any period that is, in whole or in part, from and
after the Closing Date, Seller shall promptly remit to Buyer the entirety of such funds, or Buyer’s pro rata share thereof, as applicable. 
 Section 8.7 Liquor License. Seller has obtained that certain Hotel Liquor License covering the Property, issued to Seller by the New York State Liquor Authority, effective as of September 10, 2007 and expiring as of
August 31, 2009 (the “Liquor License”). To the extent that Buyer desires to have the Liquor License transferred to Buyer at Closing, and if such procedure or procedures are permitted under applicable law, Seller shall use
commercially reasonable efforts to cooperate with Buyer (at Buyer’s sole cost and expense) in Buyer’s efforts to have such the Liquor License transferred to Buyer. Notwithstanding the foregoing, nothing contained in this Agreement shall be
deemed to be a representation on the part of the Seller that the Liquor License is transferable to Buyer. Furthermore, this transaction is not conditioned on Seller’s transfer of the Liquor License or any other license or permit by the New York
State Liquor Authority to Buyer. 
 ARTICLE 9 
 CLOSING AND CONDITIONS 
 Section 9.1 Escrow Instructions. Upon execution of
this Agreement, the parties hereto shall deposit an executed counterpart of this Agreement with the Title Company, and this Agreement shall serve as escrow instructions to the Title Company as the escrow holder for consummation of the purchase and
sale contemplated hereby. Seller and Buyer agree to execute such reasonable additional and supplementary escrow instructions as may be appropriate to enable the Title Company to comply with the terms of this Agreement; provided, however, that in the
event of any conflict between the provisions of this Agreement and any supplementary escrow instructions, the terms of this Agreement shall control. 
 Section 9.2 Closing. The closing hereunder (“Closing”) shall be held, and delivery of all items to be made at the Closing under the terms of this Agreement shall be made (subject to
any right of adjournment granted to Seller hereunder), through escrow at Escrow Agent’s office no later than December 18, 2007, or such other date and time as Buyer and Seller may mutually agree upon in writing (the “Closing
Date”), and at such other place in New York, New York as 

  

 42 

 
Seller unilaterally may direct in writing. Such date, as to which date time shall be of the essence, may not be extended without the prior written approval
of both Seller and Buyer. No later than 12:00 p.m. Eastern Time on the Closing Date, Buyer shall deposit in escrow with the Escrow Agent the Purchase Price (subject to adjustments described in Section 9.6), together with all other costs and
amounts to be paid by Buyer at the Closing pursuant to the terms of this Agreement, by Federal Reserve wire transfer of immediately available funds to an account to be designated by the Escrow Agent. No later than 3:00 p.m. Eastern Time on the
Closing Date, (a) Buyer shall direct the Escrow Agent to (i) pay to Seller by Federal Reserve wire transfer of immediately available funds to an account designated by Seller, the Purchase Price (subject to adjustments described in
Section 9.6), less any costs or other amounts to be paid or escrowed by Seller at Closing pursuant to the terms of this Agreement, and (ii) pay all appropriate payees the other costs and amounts required to be paid by Buyer at Closing
pursuant to the terms of this Agreement and (b) Seller will direct the Escrow Agent to pay to the appropriate payees or escrow out of the proceeds of Closing payable to Seller, all costs and amounts to be paid by Seller at Closing pursuant to
the terms of this Agreement. 
 Section 9.3 Seller’s Closing Documents and Other Items. At or before Closing, Seller
shall deposit into escrow the following items: 
 (a) Four (4) duly executed counterparts of an Assignment and Assumption of the Ground
Lease for the Ground Lease in the form attached hereto as Exhibit “E” (the “Assignment and Assumption of the Ground Lease”), and, if Seller was able to obtain the same pursuant to Section 7.8, the written consent
of the lessor thereunder to the assignment of the Ground Lease to Buyer; 
 (b) Two (2) duly executed counterparts of a Bill of Sale for
the Personal Property in the form attached hereto as Exhibit “F” (the “Bill of Sale”); 
 (c) Two (2) duly
executed counterparts of an Assignment and Assumption of Leases for all of the Leases at the Property in the form attached hereto as Exhibit “G” (the “Assignment and Assumption of Leases”); 
 (d) Two (2) duly executed counterparts of an Assignment and Assumption of Contracts, Warranties and Guaranties, and Other Intangible Property for
all of the Contracts except the Management Agreement in the form attached hereto as Exhibit “H” (the “Assignment and Assumption of Contracts”); 
 (e) An affidavit pursuant to Section l445(b)(2) of the Code, and on which Buyer is entitled to rely, that Seller, or if Seller is a disregarded entity, the first entity that owns Seller that is not a disregarded
entity, is not a “foreign person” within the meaning of Section l445(f)(3) of the Code, in the form attached hereto as Exhibit “K”; 
 (f) Notices to each Tenant of the Property, signed by the Seller that shall disclose that the Property has been sold to Buyer, that Buyer has received any Tenant Deposits and assumed liability therefor, and that,
after the Closing, all rents and other amounts payable should be paid to Buyer or Buyer’s designee (the “Tenant Notice Letters”) in the form attached hereto as Exhibit “L”; 
  

 43 

 (g) Seller shall deliver to Buyer a set of keys to the Property on the Closing Date. Location of any of
the items referred to in this subsection at the Property on the Closing Date shall be deemed to be delivery to Buyer (this may be accomplished outside of Escrow); 
 (h) Duly completed and signed municipal and State of New York real estate transfer tax returns for the Property; 
 (i) A closing statement setting forth, inter alia, the closing adjustments and material monetary terms of the transaction contemplated hereby and such other documents as may be reasonably required by the Title Company or as may be
agreed upon by Seller and Buyer to consummate the purchase of the Property as contemplated by this Agreement; 
 (j) An updated Exhibit
“N” containing the information described in Section 6.1(i); 
 (k) An affidavit pursuant to Section 4.3 and any gap
indemnity reasonably requested by the Title Company to implement the provisions of this Agreement in accordance with customary market practices; 
 (l) Documents to establish to Title Company’s reasonable satisfaction the due authorization of Seller to sell the Property and to perform its obligations hereunder (which documents may consist of, in lieu of providing copies of
Seller’s organizational documents, an officer’s certificate of the Seller prepared by Seller’s counsel, if acceptable to the Title Company); 
 (m) One photocopy of the duly executed Ground Lease; 
 (n) Such other documents and instruments as are
required under this Agreement to be delivered by Seller on or before Closing; 
 (o) A date down certificate confirming Seller’s
representations and warranties set forth in clauses (a) through (h), (i)(1)-(5), (i)(7)-(8), (j), (l), (m), (n), (q), (r) and (s) of Section 6.1 above (and not any other representations or warranties given hereunder) remain true
and accurate in all material respects, or stating any changes thereto (the “Seller Date Down Certificate”); 
 (p) Two
(2) duly executed counterparts of the Post-Closing Agreement; and 
 (q) If applicable, with respect to any security deposits which are
letters of credit, Seller shall, if the same are assignable, (a) (i) deliver to Buyer at the Closing such letters of credit and (ii) execute and deliver such other instruments as the issuers of such letters of credit shall reasonably
require to effect assignment thereof, and (b) reasonably cooperate with Buyer at Buyer’s request to change to Buyer the named beneficiary under such letters of credit which are not assignable, and if Seller is unable to do so then so long
as Seller does not incur any additional liability (Buyer shall indemnify, defend and hold harmless Seller for any action Seller requests that Buyer take) or expense in connection therewith Seller shall cooperate with Buyer in making any draw under
any such letter of credit which Buyer reasonably believes is permitted thereunder and shall remit to Buyer any funds so collected. 
  

 44 

 Section 9.4 Buyer’s Closing Documents and Other Items. At or before Closing,
Buyer shall deposit into escrow the following items: 
 (a) The balance of the Purchase Price and such additional funds as are necessary to
close this transaction; 
 (b) Four (4) duly executed counterparts of the Assignment and Assumption of the Ground Lease; 
 (c) Two (2) duly executed counterparts of the Bill of Sale; 
 (d) Two (2) duly executed counterparts of the Assignment and Assumption of Leases; 
 (e) Two
(2) duly executed counterparts of the Assignment and Assumption of Contracts; 
 (f) Documentation to establish to Seller’s
reasonable satisfaction the due authority of Buyer’s acquisition of the Property and Buyer’s delivery of the documents required to be delivered by Buyer pursuant to this Agreement (including, but not limited to, the organizational
documents of Buyer, as they may have been amended from time to time, resolutions of Buyer and incumbency certificates of Buyer); 
 (g) Duly
completed and signed municipal and State of New York real estate transfer tax returns for the Property; 
 (h) Copies of the Tenant Notice
Letters signed by Buyer; 
 (i) Two (2) duly executed counterparts of the Post-Closing Agreement; 
 (j) A closing statement setting forth, inter alia, the closing adjustments and material monetary terms of the transaction contemplated hereby and
such other documents as may be reasonably required by Seller or the Title Company or as may be agreed upon by Seller and Buyer to consummate the purchase of the Property as contemplated by this Agreement; 
 (k) A date down certificate confirming that Buyer’s representations and warranties contained in this Agreement remain true and accurate in all
material respects, or stating any changes thereto (together with the Seller Date Down Certificate, the “Date Down Certificates”); and. 
 (l) Such other documents and instruments as are required to be delivered by Buyer on or before Closing under this Agreement, including, but not limited to the Ground Lease Guaranty Release or a copy of the Ground
Lease Substitution Guaranty to the extent required under Section 7.8 above. 
 Section 9.5 Condition to Closing; Acceptance
of the Assignment and Assumption of the Ground Lease. It shall constitute a condition precedent to each party’s obligation to consummate the Closing hereunder that all covenants, and agreements of the other party contained herein shall
have been performed in all material respects; provided, however, that to 

  

 45 

 
the extent that the facts and circumstances underlying any representation and warranty by Seller may have changed as of the Closing Date, Seller shall have
the right to represent in a certificate delivered to Buyer such changed facts and circumstances. For purposes hereof, a representation or warranty shall not be deemed to have been breached if the representation or warranty is not true and correct in
all material respects as of the Closing Date by reason of changed facts or circumstances arising after the date hereof which pursuant to the terms of this Agreement are permitted to have occurred or did not arise by reason of a breach of any
covenant made by Seller under this Agreement. The acceptance by Buyer of the Assignment and Assumption of the Ground Lease shall be deemed to be full performance of, and discharge of, every agreement and obligation on Seller’s part to be
performed under this Agreement, except for such matters which are expressly stated in this Agreement to survive the Closing, to the limit of such survival. 
 Section 9.6 Prorations and Closing Costs. 
 (a) Seller and Buyer agree to adjust, as of
11:59 p.m. on the day immediately preceding the Closing Date (the “Cut-Off Time”), in accordance with the applicable provisions of this Section 9.6, the following (collectively, the “Proration Items”): real
estate and personal property taxes and assessments, utility bills (except as hereinafter provided), payments paid or due under Contracts, revenues from guest rooms and other facilities at the Property and collected Rents and Operating Expenses
payable by the Seller with respect to the Property. Seller will be charged and credited for the amounts of all of the Proration Items relating to the period up to and including the Cut-Off Time, and Buyer will be charged and credited for all of the
Proration Items relating to the period after the Cut-Off Time. Such preliminary estimated Closing prorations shall be set forth on a preliminary closing statement to be prepared by Seller and submitted to Buyer for Buyer’s reasonable approval
prior to the Closing Date (the “Closing Statement”). The Closing Statement, once agreed upon, shall be signed by Buyer and Seller and delivered to the Escrow Agent for purposes of making the preliminary proration adjustment at
Closing subject to the final cash settlement provided for below. The preliminary proration shall be paid at Closing by Buyer to Seller (if the preliminary prorations result in a net credit to Seller) or by Seller to Buyer (if the preliminary
prorations result in a net credit to Buyer) by increasing or reducing the cash to be delivered by Buyer in payment of the Purchase Price at the Closing. If the actual amounts of the Proration Items are not known as of the Closing Date, the
prorations will be made at Closing on the basis of the best evidence then available; thereafter, when actual figures are received (not to exceed 180 days after Closing), re-prorations will be made on the basis of the actual figures, and a final cash
settlement will be made between Seller and Buyer. No prorations will be made in relation to insurance premiums, and Seller’s insurance policies will not be assigned to Buyer. Final readings and final billings for utilities will be made if
possible as of the Closing Date, in which event no proration will be made at Closing with respect to utility bills. Seller will be entitled to all deposits presently in effect with the utility providers, and Buyer will be obligated to make its own
arrangements for future deposits with the utility providers. The provisions of this Section 9.6(a) will survive the Closing for twelve (12) months. 
 (b) Buyer will receive a credit on the Closing Statement for the prorated amount (as of the Cut-Off Time) of all Rents previously paid to or collected by Seller and attributable to any period following the Cut-Off
Time. Rents are “Delinquent” when they were due prior to the Closing Date, and payment thereof has not been made on or before the Closing Date. Delinquent Rents will not be prorated. All sums collected by Buyer from and after Closing from
each 

  

 46 

 
Tenant will be applied first to Delinquent Rents owed by such Tenant to Seller and then to current amounts owed by Tenant to Buyer. Buyer agrees that any
sums due Seller will be promptly remitted to Seller. Buyer shall have the exclusive right to collect any sums due Seller from Tenants under the Leases, provided that Buyer shall use commercially reasonable and diligent efforts to collect any
Delinquent Rents. The provisions of this Section 9.6(b) will survive the Closing for 90 days and shall continue to survive for any delinquent rents identified within the initial period of 90 days following the Closing. 
 (c) All Additional Rents (as defined below) which have been received in respect to the month in which the Closing Date occurs (the “Current
Month”) shall be prorated as of the Cut-Off Time. Such Additional Rents for the Current Month which have been received as of the Closing Date shall be prorated on a per diem basis based upon the number of days in the Current Month prior to,
but not including, the Cut-Off Time (which shall be allocated to Seller) and the number of days in the Current Month from and after the Cut-Off Time (which shall be allocated to Buyer). Seller shall not be credited on the Closing Date with its share
of rents and other tenant charges and Additional Rents for the Current Month and for all periods prior to the Current Month which have not been received as of the Closing Date. Buyer shall be solely responsible, after the Closing Date, for using
commercially reasonable efforts to collect unpaid Additional Rents and remitting Seller’s share thereof to Seller. Additional Rents for calendar year 2007 are paid on an estimated basis in monthly installments. At least five (5) Business
Days prior to the Closing Date, Seller shall cause to be prepared and delivered to Buyer a reconciliation (“Additional Rents Reconciliation”) of (i) actual operating and similar expenses of the Property upon which Additional
Rents are based (“Additional Rent Expenses”) for the period commencing on January 1, 2007 and ending on the last day of the Current Month (“Additional Rents Reconciliation Period”), it being understood that
certain Additional Rents Expenses for the Additional Rents Reconciliation Period, if not based on actual amounts (such as certain operating expenses for the Current Month), may be reasonably estimated by Seller; and (ii) Additional Rents
collected by Seller for that portion of the Additional Rents Reconciliation Period prior to the Current Month and Additional Rents payable for the Current Month. Any amount shown to be owed by Seller to the tenants of the Property under the
Additional Rents Reconciliation shall be credited to Buyer at the Closing, and any amounts shown to be owed to Seller by tenants of the Property under the Additional Rents Reconciliation shall be paid to Seller upon receipt thereof from the
applicable Tenant. For purposes of this Section 9.6(c), “Additional Rents” shall mean any and all amounts due from Tenants for Operating Expenses and any other tenant charges other than Rents. Notwithstanding the foregoing,
amounts payable by lessees in respect of overtime heat, air conditioning or other utilities or services, freight elevator charges, supplemental water, HVAC and condenser charges, services or repairs and labor costs associated therewith, above
standard cleaning and all other items which are payable to Seller as reimbursement or payment for above standard overtime services, whether pursuant to such lessee’s Lease or pursuant to a separate agreement with Seller, shall not be adjusted,
and shall belong to the party furnishing such utilities, labor or services to such lessee. 
 (d) Real estate taxes, unmetered water and
sewer charges and any and all other municipal or governmental assessments of any and every nature levied or imposed upon the Property in respect of the current fiscal year of the applicable taxing authority in which the Closing Date occurs (the
“Current Tax Year”), shall be apportioned on a per diem basis based upon the number of days in the Current Tax Year prior to the Closing Date (which shall be 

  

 47 

 
allocated to Seller) and the number of days in the Current Tax Year on and after the Closing Date (which shall be allocated to Buyer). If the Closing shall
occur before the tax rate for the Current Tax Year is fixed, the apportionment of real estate taxes shall be upon the basis of the tax rate for the next preceding fiscal period applied to the latest assessed valuation. Promptly after the new tax
rate is fixed for the fiscal period in which the Closing takes place, the apportionment of real estate taxes shall be recomputed. Upon the Closing Date and subject to the adjustment provided above, Buyer shall be responsible for real estate taxes
and assessments levied or imposed upon the Property payable in respect of the Current Tax Year and all periods after the Current Tax Year. In no event shall Seller be charged with or be responsible for any increase in the real estate taxes or
assessments levied or imposed upon the Property resulting from the transfer of the Property herein contemplated or from any improvements made or Leases entered into at any time or for any reason. In the event that any assessments levied or imposed
upon the Property are payable in installments, the installment for the Current Tax Year shall be prorated in the manner set forth above and Buyer hereby assumes the obligation to pay any such installments due on and after the Closing Date. If any
proceedings for the reduction of the assessed valuation of the Property (“Tax Proceedings”) relating to any tax years ending prior to the tax year in which the Closing occurs are pending at the time of the Closing, Buyer shall have
the right to continue to prosecute and/or settle the same, and any refunds paid or credits made for any period(s) prior to Buyer’s ownership of the Property shall, after payment to Buyer of all costs and expenses, including, without limitation,
reasonable attorneys’ fees and disbursements, incurred by Buyer in obtaining such refund, be promptly paid in full to Seller (subject to the rights, if any, of Tenants thereto). Buyer and Seller acknowledge that Tax Proceedings are pending with
respect to the Property, as shown on Exhibit “R” hereto, and Buyer agrees that it shall not settle any of such Tax Proceedings with respect to a period prior to Closing without Seller’s prior written consent, which shall not be
unreasonably withheld, conditioned or delayed, unless any such settlement shall be for an amount payable to Seller that is not less than the anticipated credits as set forth in Exhibit “R”. From and after the Closing, Buyer is hereby
authorized to commence any new Tax Proceedings and/or continue any Tax Proceedings as provided above, and in Buyer’s sole discretion at its sole cost and expense to litigate or settle same; provided, however, that Seller shall be entitled to
that portion of any refund relating to the period before the Closing after payment to Buyer of all costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements, incurred by Buyer in obtaining such refund.
Buyer shall deliver to Seller, reasonably promptly after request therefor, receipted tax bills and canceled checks used in payment of such taxes and shall execute any and all consents or other documents, and do any act or thing necessary for the
collection of such refund by Seller The provisions of this Section 9.6(d) shall survive the Closing. 
 (e) Buyer shall receive a credit
against Purchase Price at Closing for all Tenant Deposits, if any, then outstanding under the Leases which have not been properly applied to delinquent rents or other amounts pursuant to the terms of the applicable Lease, and for all Rents, if any,
made in advance (to the extent not prorated as set forth in (b) above). 
 (f) Buyer shall receive a credit against the Purchase Price
at Closing for all payments due or owing under any Contracts or for any other goods or services with respect to the Property not otherwise accounted for under this Section 9.6 for periods prior to the Closing Date, to the extent that Buyer
would be liable for payment thereof if not satisfied by Seller, which amounts shall be prorated as of the Cut-Off Time. If Seller has paid any amounts under any Contracts or 

  

 48 

 
for any other goods or services with respect to the Property not otherwise accounted for under this Section 9.6 for periods after the Cut-Off Time,
Buyer shall pay such amounts to Seller at Closing in addition to the Purchase Price. 
 (g) [Intentionally Omitted] 
 (h) Seller shall pay (a) one-half of the Escrow Agent’s escrow fee, if any (b) transfer taxes, deed stamps or similar amounts and
(c) all recording fees associated with the discharges of Seller’s financing documents or other encumbrances, if any. Buyer shall pay (a) one-half of the Escrow Agent’s escrow fee, if any, (b) the premium for the Title
Policy, survey costs and the costs of any endorsements Buyer may require in accordance with Section 4.3 and all costs of re-insurance and co-insurance, (c) the recording fees required in connection with the transfer of the Property to
Buyer and (d) any additional costs and charges customarily charged to buyers in connection with sales of similar property in the State of New York, other than those costs and charges specifically required to be paid by Seller hereunder,
including that Buyer shall pay sales tax, if any, due and payable in connection with the transactions contemplated by this Agreement. 
 (i)
Buyer and Seller shall apportion charges and fees due under Contracts for the supply to the Property of heat, water, steam, electric power, gas and any other utilities, and telephone, if any, in respect of the billing period of the related service
provider in which the Closing Date occurs (the “Current Billing Period”) on a per diem basis based upon the number of days in the Current Billing Period prior to the Closing Date (which shall be allocated to Seller) and the number
of days in the Current Billing Period on and after the Closing Date (which shall be allocated to Buyer) and assuming that all charges are incurred uniformly during the Current Billing Period (it being agreed that all deposits, if any, made by Seller
as security under any such public service contracts shall be credited to Seller if such amounts remain on deposit after the Closing for the benefit of Buyer; provided, however, that Seller shall be entitled in its sole discretion to receive a refund
of such security deposits directly from any such service provider without credit to Buyer). Calculations hereunder shall be based upon the most recent invoice rendered to Seller by the applicable service provider and, after an actual bill covering
the period ending on the Closing Date is received, the apportionment of such charges hereunder shall be recomputed. The provisions of this Section 9.6(i) shall survive the Closing. 
 (j) Buyer shall not be required to pay any sum, in addition to the Purchase Price, for the Consumables. 
 (k) Buyer and Seller shall apportion all net fixed rent and additional rent due under the Ground Lease in respect of the billing period in which the
Closing Date occurs (the “Ground Lease Current Billing Period”) on a per diem basis based upon the number of days in the Ground Lease Current Billing Period prior to the Closing Date (which shall be allocated to Seller) and the
number of days in the Ground Lease Current Billing Period on and after the Closing Date (which shall be allocated to Buyer) and assuming that all charges are incurred uniformly during the Current Billing Period. Calculations hereunder shall be based
upon the most recent invoice rendered to Seller by the Ground Lessor and, after an actual bill covering the period ending on the Closing Date is received, the apportionment of such charges hereunder shall be recomputed. Buyer and Seller agree that
notwithstanding anything herein to the contrary, any refund or credit due to the tenant under the Ground Lease for overpayments of any additional rent or of other 

  

 49 

 
amounts paid under the Ground Lease for any period prior to the Closing Date shall belong to Seller, and Buyer shall promptly remit to Seller any such
amounts received by Buyer and shall promptly inform Seller if Buyer learns of any such amounts to which Seller shall or may be entitled. The provisions of this Section 9.6(k) shall survive the Closing. 
 (l) Buyer shall honor (and shall cause its manager to honor) all Bookings that are made by Seller or Manager on or prior to the Closing Date in the
ordinary course of business and at rates that Seller customarily charges similar guests and pertain to periods on or after the Closing Date, including, without limitation, those Bookings shown on Exhibit “X” hereto. Any down payments and
advance deposits that have been (i) received by Seller prior to the Closing Date and (ii) made with respect to confirmed reservations for dates on or after the Closing Date, will be credited at Closing to Buyer. 
 (m) Revenues from guest rooms in the Property occupied on the night containing the Cut-Off Time, including any sales taxes, room taxes and other taxes
charged to guests in such rooms allocated to such rooms with respect to the night containing the Cut-Off Time (but not including any parking charges, sales from mini bars, in-room food and beverage, telephone, facsimile and data communications,
in-room movie, laundry, and other service charges) shall be allocated one half to Seller and one half to Buyer. All parking charges, sales from mini bars, in-room food and beverage, telephone, facsimile and data communications, in-room movie,
laundry, and other service charges shall be allocated to Seller if they occur before the Cut-Off Time, and to Buyer if they occur after the Cut-Off Time. All other revenues from restaurants, lounges, and other service operations conducted at the
Property shall be allocated based on whether the same accrued before or from and after the Cut-Off Time, and Seller shall instruct Manager, and Buyer shall instruct its manager, to separately record sales occurring before and from and after the
Cut-Off Time. 
 (n) Revenues from conferences, receptions, meetings, and other functions occurring in any conference, banquet or meeting
rooms in the Property, including usage charges and related taxes, food and beverage sales, valet parking charges, equipment rentals, and telecommunications charges, shall be allocated between Seller and Buyer, based on when the function therein
commenced, with (i) one-day functions commencing prior to the Cut-Off Time being allocable to Seller; (ii) one-day functions commencing after the Cut-Off Time being allocable to Buyer; and (iii) multi day functions that include
periods both before and after the Cut-Off Time being prorated between Seller and Buyer according to the period of time before and from and after the Cut-Off Time. 
 (o) The aggregate amount of cash in the house banks and cash on hand as of the Closing Date may be retained by Seller. 
 (p) To the extent Seller (on or after the Closing Date) or Buyer receives payments on account of accounts receivables owed by third parties with respect to the Property as of the Cut-Off Time, including, but not
limited to, credit card sales (“Seller Accounts Receivable”), such funds shall be remitted to and be the sole property of Seller. No adjustments to the Purchase Price shall be made for any Seller Accounts Receivable, and Seller
shall retain the rights to collect the same, provided, however, that Seller may not evict any Tenant or terminate any Lease or Contract in the course of pursuing such collection. Buyer shall use commercially reasonable 

  

 50 

 
and diligent efforts to cooperate with Seller’s efforts to collect the Seller Accounts Receivable, and Buyer shall remit to Seller any amounts it
collects thereon, after deducting its reasonable costs of collection (including attorney fees). For purposes of determining the dates to which amounts paid by third parties are attributable, any indication by such third party of invoice number or
dates to which the payment applies that are on, or accompanying, the payment shall be deemed conclusive. If there is no such indication, Buyer and Seller shall use good faith efforts to attempt to agree to which dates such amounts apply. If Buyer
and Seller cannot so agree, such disputed amount shall be deemed first to apply to any accounts receivable aged thirty (30) or less days owed by such third party to Buyer, then to any accounts receivable aged between sixty-one (61) and
ninety (90) days owed by such third party to Seller, then to any accounts receivable aged between thirty-one (31) and sixty (60) days owed by such third party to Seller, then to any accounts receivable aged thirty (30) or less
days owed by such third party to Seller, then to any remaining accounts receivable owed by such third party to Buyer, then to any remaining accounts receivable owed by such third party to Seller. 
 (q) The parties acknowledge that certain taxes accrue and are payable to the various local governments by any business entity operating a hotel and its
related facilities. Included in those taxes may be business and occupation taxes, retail sales and use taxes, gross receipts taxes, and other special lodging or hotel taxes. For purpose of this Agreement, all of such taxes (expressly excluding taxes
and assessments covered by Section 9.6(d), corporate franchise taxes, and federal, state, and local income taxes) (hereinafter referred to as “Operational Taxes”) shall be allocated between Seller and Buyer such that those
attributable to the period prior to the Cut-Off Time shall be allocable to Seller and those attributable to the period from and after the Cut-Off Time shall be allocable to Buyer (with the attribution of such taxes hereunder to be done in a manner
consistent with the attribution under this Agreement of the applicable revenues on which such taxes may be based). Buyer shall receive a credit for any Operational Taxes attributable to the period prior to the Cut-Off Time which Seller has not paid
and which Buyer is obligated to pay. Except for the Operational Taxes for which Buyer has received a credit under this Section 9.6(q), Seller shall be solely responsible for payment of the Operational Taxes with respect to the period prior to
the Cut-Off Time, and Buyer shall be solely responsible for payment of such Operational Taxes with respect to the period after the Cut-Off Time. Seller hereby agrees to indemnify, save and defend, and hold Buyer harmless from and against, all claims
and liabilities for Operational Taxes attributable to the period prior to the Cut-Off Time for which Buyer has not received a credit, and Buyer agrees to indemnify, save and defend, and hold Seller harmless from and against, all claims and
liabilities for Operational Taxes attributable to the period prior to the Cut-Off Time and for which Buyer has received a credit under this Section 9.6(q). Buyer may request confirmation before closing from the appropriate taxing authorities as
to any outstanding Operational Taxes, and Seller shall cooperate with Buyer in obtaining a statement from such authorities in order for Buyer to avoid successor liability for Operational Taxes attributable to the period before the Cut-Off Time.

 (r) Buyer acknowledges that the employees at the Property (the “Employees”) are the employees of Manager and Seller, and
that Buyer has no right to cause the termination of the Employees before Closing. In no event shall Buyer take any action as to such Employees that would create or cause any liability to Seller. As to Employees whose compensation is paid by Seller
under the Management Agreement, Buyer shall receive a credit for (and shall thereupon become responsible for) accrued vacation through the Cut-Off Time, and the wages and salaries 

  

 51 

 
earned through the Cut-Off Time but not yet paid. Buyer shall be solely responsible for all wages, salaries, any bonuses, employment taxes, withholding
taxes, and any and all vacation days, sick days and personal days, if applicable, accruing on or after the Closing Date. Buyer shall be solely responsible for any severance pay or termination payment for any Employee whose employment is terminated
by Buyer or by Replacement Manager on or after Closing. Buyer shall indemnify, defend and save Seller harmless from and against any claim by any Employee for Buyer’s failure to pay (a) the severance payment, if any, due such Employee,
regardless of the period to which the severance entitlement applies, and (b) all wages, salary, bonuses, vacation pay, benefits, and withholding taxes from and after the Closing Date due to such Employee. The method of calculation of all such
items shall be with consistent with the Manager’s customary manner of calculating the same in preparing its reports under the Management Agreement. 
 (s) All other items customarily apportioned in connection with sales of properties similar to the Property in the State of New York and for which this Agreement does not otherwise provide express instructions shall be
apportioned in accordance with local custom. 
 Section 9.7 Brokers. Buyer hereby represents and warrants to Seller only
(nothing in this provision nor any other provision of this Agreement being intended to create any rights on the part of any third party beneficiary, or to create any third party beneficiary) that it did not employ or use any broker or finder to
arrange or bring about this transaction except Vic Vora, and that there are no claims or rights for brokerage commissions or finder’s fees by anyone claiming by or through Buyer in connection with the transactions contemplated by this
Agreement, other than the commission (“Broker’s Commission”) required to be paid by Seller to Broker pursuant to a separate agreement between Seller and Broker. Seller represents and warrants to Buyer only (nothing in this
provision nor any other provision of this Agreement being intended to create any rights on the part of any third party beneficiary, or to create any third party beneficiary) that Seller has not employed any broker with respect to this transaction,
other than Broker, and Seller shall only pay the Broker’s Commission. If any person brings a claim for a commission or finder’s fee based upon any contact, dealings, or communication with Buyer in connection with the transactions
contemplated by this Agreement, other than Broker, then Buyer shall defend Seller from such claim, and shall indemnify Seller and hold Seller harmless from any and all costs, damages, claims, liabilities, or expenses (including, without limitation,
reasonable attorneys’ fees and disbursements) incurred by Seller with respect to the claim. If any person brings a claim against Buyer for a commission or finder’s fee based upon any contact, dealings, or communication with Seller in
connection with the transactions contemplated by this Agreement, then Seller shall defend Buyer from such claim, and shall indemnify Buyer and hold Buyer harmless from any and all costs, damages, claims, liabilities, or expenses (including, without
limitation, reasonable attorneys’ fees and disbursements) incurred by Buyer with respect to the claim. The provisions of this Section 9.7 shall survive the Closing or, if the purchase and sale is not consummated, any termination of this
Agreement. 
 Section 9.8 Expenses. Except as provided in Sections 9.6 and 9.7, each party hereto shall pay its own
expenses incurred in connection with this Agreement and the transactions contemplated hereby, including, without limitation, in the case of Buyer, all third-party engineering and environmental review costs, its inspection costs, attorney costs, due
diligence costs, etc. 
  

 52 

 ARTICLE 10 
 MISCELLANEOUS 
 Section 10.1 Amendment and Modification. Subject to
applicable law, this Agreement may be amended, modified, or supplemented only by a written agreement signed by Buyer and Seller. 
 Section 10.2 Risk of Loss/Condemnation and Insurance Proceeds/Condemnation Awards. 
 (a) Minor
Loss. In the event a fire or other casualty occurs with respect to the Property (a “Casualty”), or if all or any portion of the Property shall be taken by condemnation or transferred by deed in lieu of condemnation or any
proceeding is commenced with respect to such condemnation (a “Condemnation”), Seller shall promptly notify Buyer of such Casualty or Condemnation. If the Casualty causes a loss or damage not greater than Three Million Dollars
($3,000,000) in value, Buyer shall be bound to purchase the Property for the full Purchase Price as required by the terms hereof, without regard to the occurrence or effect of any damage to any of the Property or destruction of any improvements
thereon, provided that, then upon the Closing, there shall be a credit against the Purchase Price due hereunder equal to the amount of any gross insurance proceeds collected by Seller as a result of any such damage or destruction or condemnation,
less any sums expended by Seller toward the restoration or repair of the Property, including barricades and other temporary repairs required for safety purposes, or in collecting such insurance proceeds. If the proceeds have not been collected as of
the Closing, then such proceeds or awards shall be assigned to Buyer, except to the extent needed to reimburse Seller for any sums expended prior to the Closing to repair or restore the Property or to collect any such proceeds. 
 (b) Major Loss/Condemnation. Following any Condemnation or any damage to any of the Property or destruction of any improvements thereon by
Casualty, Seller shall have the option to elect to postpone the Closing for a period of up to sixty (60) days upon one (1) Business Day’s notice to Buyer. If, on or before the Closing Date (as the same may have been postponed by
Seller), a Casualty has occurred which causes a loss or damage in excess of Three Million Dollars ($3,000,000) in value or a Condemnation has occurred, then Buyer may at its option notify Seller in writing by the tenth (10th) Business Day
following Seller’s notice to Buyer of the occurrence of the Casualty or Condemnation, that Buyer elects to terminate this Agreement, and this Agreement shall be so terminated and the Deposit shall be returned to Buyer and neither Buyer nor
Seller shall have any further liability or obligation hereunder except as expressly set forth in this Agreement. Buyer’s failure to exercise its right under this Section 10.2 to terminate this Agreement in a timely manner shall be deemed
an election by Buyer to consummate this purchase and sale transaction. If Buyer elects or is deemed to have elected to proceed with the purchase of the Property (including any damaged portion thereof), then upon the Closing, there shall be a credit
against the Purchase Price due hereunder equal to the amount of any gross insurance proceeds or condemnation awards collected by Seller as a result of any such Casualty or Condemnation, less any sums expended by Seller toward the restoration or
repair of the Property, including barricades and other temporary repairs required for safety 

  

 53 

 
purposes, or in collecting such insurance proceeds or condemnation awards. If the proceeds or awards have not been collected as of the Closing, then such
proceeds or awards shall be assigned to Buyer, except to the extent needed to reimburse Seller for any sums expended prior to the Closing to repair or restore the Property, including barricades and other temporary repairs required for safety
purposes, or to collect any such proceeds or awards, and the Closing shall occur without any credit against the Purchase Price. 
 Section 10.3 Notices. All notices required or permitted hereunder shall be in writing and shall be served on the Parties at the following address: 
  

			
	 If to Seller:
	 	 c/o Rockpoint Fund II Acquisitions, L.L.C.
 222
Berkeley Street, Suite 2250
 Boston, Massachusetts 02116
 Telephone: (617) 437-8400
 Facsimile: (617) 437-7011
 Attention: Tom Gilbane and Paisley Boney

		
	 with a courtesy copy to:
	 	 c/o Rockpoint Fund II Acquisitions, L.L.C.
 13155 Noel
Road/LB 54, Suite 700
 Dallas, Texas 75240
 Telephone: (972)
934-0100
 Facsimile: (972) 713-9349
 Attention: Patrick K. Fox,
Esq.

		
	 and a courtesy copy to:
	 	 c/o Property Markets Group, Inc.
 5 East 17th Street, 2nd Floor
 New York, New York 10003
 Telephone: (212) 610-2855
 Facsimile: (212) 610-2856
 Attention: Franklin R. Kaiman,
Esq.

		
	 And a courtesy copy to:
	 	 Gibson, Dunn and Crutcher LLP
 200 Park Avenue, 47th Floor
 New York, New York 10166
 Telephone: (212) 351-3871
 Facsimile: (212) 351-4035
 Attention: Andrew A. Lance, Esq.

		
	 If to Buyer:
	 	 c/o Apple Hospitality Companies
 814 East Main Street

 Richmond, Virginia 23219
 Telephone: (804) 727-6314

Facsimile: (804) 727-6354
 Attention: Samuel Reynolds

  

 54 

			
	 with a courtesy copy to:
	 	 c/o Apple Hospitality Companies
 814 East Main Street

 Richmond, Virginia 23219
 Telephone: (804) 727-6338

Facsimile: (804) 727-6354
 Attention: David F. Buckley,
Esq.

		
	 and a courtesy copy to:
	 	 McGuireWoods LLP
 901 East Cary Street
 Richmond, Virginia 23219
 Telephone: (804) 775-4331
 Facsimile: (804) 698-2119
 Attention: Charles L. Menges

		
	 If to Escrow Agent:
	 	 LandAmerica American Title Company
 2305 N. Plano Road

 Suite 3100
 Richardson, Texas 75082
 Telephone: (214) 570-0200
 Facsimile: (214) 570-0210
 Attention: Debby Moore

 Any such notices may be sent by (a) certified mail, return receipt requested, deposited, postage prepaid in
the U.S. mail, in which case notice shall be deemed given upon receipt or refusal of the notice by the addressee, (b) a recognized and reputable overnight courier for delivery on one (1) Business Day after deposit with such courier (on or
prior to 5:00 p.m., Eastern Time; if deposited after such time, in which case notice shall be deemed given upon receipt or refusal of the notice by the addressee), or (c) facsimile transmission, in which case notice shall be deemed delivered
upon electronic verification (on or prior to 5:00 p.m., Eastern Time; if verification is received after such time, it shall be deemed to have been delivered on the next Business Day) that transmission to recipient was completed. The above addresses
and facsimile numbers may be changed and additional parties, addresses and facsimile numbers added by written notice to the other party; provided that no notice of a change of address or facsimile number shall be effective until actual receipt of
such notice. Courtesy copies of notices are for informational purposes only, and a failure to give a person a courtesy copy of any notice shall not be deemed a failure to give such notice to the party for whom such person is a courtesy copy
recipient provided that any party claiming to have sent a notice must provide reasonable evidence of having sent such notice to uphold the effectiveness thereof. 
 Section 10.4 Assignment. Neither Seller nor Buyer shall have any right to assign this Agreement; provided, however, that Buyer may assign this Agreement to an Affiliate of Buyer, but such assignment
shall not release Buyer of any of its obligations hereunder. Notwithstanding the above, Buyer shall not assign this Agreement if such assignment potentially has the effect of invalidating, delaying or impairing any consent (or deemed consent) given
by the Ground Lessor to the transactions contemplated hereunder (the “Ground Lessor Consent”). This Agreement will be binding upon and inure to the benefit of Seller and Buyer and their respective successors and 

  

 55 

 
permitted assigns, and no other party will be conferred any rights by virtue of this Agreement or be entitled to enforce any of the provisions hereof.
Whenever a reference is made in this Agreement to Seller, such reference will include the successors and permitted assigns of Seller under this Agreement. 
 Section 10.5 Governing Law and Consent to Jurisdiction. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE
APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION ARISING OUT OF THIS AGREEMENT MUST BE COMMENCED BY BUYER OR SELLER IN THE STATE COURTS OF THE STATE OF NEW YORK, CITY OF NEW YORK OR IN U.S. FEDERAL COURT FOR THE APPLICABLE DISTRICT OF NEW YORK
AND EACH PARTY HEREBY CONSENTS TO THE JURISDICTION OF THE ABOVE COURTS IN ANY SUCH ACTION AND TO THE LAYING OF VENUE IN THE STATE OF NEW YORK, CITY OF NEW YORK. ANY PROCESS IN ANY SUCH ACTION SHALL BE DULY SERVED IF MAILED BY REGISTERED MAIL,
POSTAGE PREPAID, TO THE PARTIES AT THEIR RESPECTIVE ADDRESS DESCRIBED IN SECTION 10.3 HEREOF. 
 Section 10.6
Counterparts. This Agreement may be executed in two or more fully or partially executed counterparts, any one or more of which may be executed and delivered by facsimile transmission, each of which will be deemed an original binding the
signer thereof against the other signing parties, but all counterparts together will constitute one and the same instrument. 
 Section 10.7 Entire Agreement. This Agreement and any other document to be furnished pursuant to the provisions hereof embody the entire agreement and understanding of the parties hereto as to the subject matter contained
herein. There are no restrictions, promises, representations, warranties, covenants, or undertakings other than those expressly set forth or referred to in such documents. This Agreement and such documents supersede all prior agreements and
understandings among the parties with respect to the subject matter hereof. 
 Section 10.8 Severability. Any term or
provision of this Agreement that is invalid or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and
provisions of this Agreement, or affecting the validity or enforceability of any of the terms or provisions of this Agreement. 
 Section 10.9 Attorney Fees. If any action is brought by any party to this Agreement to enforce or interpret its terms or provisions, the prevailing party will be entitled to reasonable attorney fees and costs incurred in
connection with such action prior to and at trial and on any appeal therefrom. 
 Section 10.10 Payment of Fees and
Expenses. Each party to this Agreement will be responsible for, and will pay, all of its own fees and expenses, including those of its counsel and accountants, incurred in the negotiation, preparation, and consummation of this Agreement and
the transaction contemplated hereunder, except as expressly set forth herein. 
  

 56 

 Section 10.11 Confidential Information. The parties acknowledge that the transaction
described herein is of a confidential nature and, prior to Closing, shall not be disclosed except to Permitted Outside Parties or as required by law. Prior to Closing, no party shall make any public disclosure of the specific terms of this
Agreement, except as required by law or pursuant to a press release approved in advance by Buyer and Seller. In connection with the negotiation of this Agreement and the preparation for the consummation of the transactions contemplated hereby, each
Party acknowledges that it will have access to confidential information relating to the other party. Each Party shall treat such information as confidential, preserve the confidentiality thereof, and not duplicate or use such information, except to
Permitted Outside Parties in connection with the transactions contemplated hereby or as required by law. In the event of the termination of this Agreement for any reason whatsoever, Buyer shall return to Seller, or destroy (as evidenced in a written
certification to such effect), all documents, work papers, engineering and environmental studies and reports and all other materials (including all copies thereof obtained from Seller in connection with the transactions contemplated hereby), and
each party shall use its commercially reasonable efforts, including instructing its employees and others who have had access to such information, to keep confidential and not to use any such information except as required by law. For purposes of
this Section 10.11 only, the phrase “as required by law” shall mean as either party or its counsel shall reasonably determine is required by law or judicial process, including (without limitation) laws and regulations applicable to
Buyer or its Affiliates who are public reporting companies). The provisions of this Section 10.11 shall survive the Closing or, if the purchase and sale is not consummated, any termination of this Agreement and shall not be subject to any
survival limitation set forth in Section 6.2. 
 Section 10.12 Performance Due On Day Other Than Business Day. If the
time period for the performance of any act called for under this Agreement expires on day other than a Business Day, the act in question may be performed on the next succeeding day that is not a Business Day. 
 Section 10.13 Access to Financial Information. Buyer’s representatives shall have access to, and Seller and its Affiliates shall
use commercially reasonable efforts to cooperate with Buyer and furnish upon request, all financial and other information relating to the Property’s operations in the possession of Seller or its Affiliates. Such information may be used by Buyer
to enable Buyer’s representatives to prepare audited financial statements in conformity with Regulation S-X of the Securities and Exchange Commission (the “SEC”) and other applicable rules and regulations of the SEC and to
enable them to prepare a registration statement, report or disclosure statement for filing with the SEC (the “SEC Statement”) on behalf of Buyer or its Affiliates, whether before or after Closing and regardless of whether such
information is included in the records to be transferred to Buyer hereunder, provided that Buyer shall indemnify, defend and hold harmless Seller and its Affiliates for any liability incurred by Seller in connection therewith (except to the extent
that such liability is due to any inaccurate affirmative information provided by Seller (but not omissions made by Seller) that Buyer has included in an SEC Statement the relevant portions of which been provided to Seller for its review and revised
based on any suggestions made by Seller) beyond the recourse expressly provided for in this Agreement. If requested in writing by Buyer or its authorized representative, Seller shall provide to Buyer’s independent certified public accountant
(“Buyer’s Accountant”) a signed representation letter in form and substance reasonably acceptable to Seller sufficient to enable Buyer’s Accountant to render an opinion on the financial statements related to the 

  

 57 

 
Property. The representations contained in such letter shall run only to Buyer’s Accountant (and not to Buyer) and shall not in any way (i) modify
the representations or warranties of Seller contained in Article 6 of this Agreement or (ii) give rise to an indemnity claim by Buyer under this Agreement. In addition, such letter shall state that although Seller shall use commercially
reasonable efforts to ensure that the information contained in such letter is true and complete in all material respects, there shall be no recourse against Seller for any statement or representation given in, or omitted from, such letter.

 Section 10.14 No Joint Venture. Nothing set forth in this Agreement shall be construed to create a joint venture
between Buyer and Seller. 
 Section 10.15 No Memorandum. Buyer shall not record any memorandum disclosing this Agreement.

 Section 10.16 Waiver of Jury Trial. Each party to this Agreement hereby expressly waives any right to trial by jury of
any claim, demand, action or cause of action (each, an “Action”) (a) arising out of this Agreement, including any present or future amendment thereof or (b) in any way connected with or related or incidental to the
dealings of the parties or any of them with respect to this Agreement (as hereafter amended) or any other instrument, document or agreement executed or delivered in connection herewith, or the transactions related hereto or thereto, in each case
whether such Action is now existing or hereafter arising, and whether sounding in contract or tort or otherwise and regardless of which party asserts such Action; and each party hereby agrees and consents that any such Action shall be decided by
court trial without a jury, and that any party to this Agreement may file an original counterpart or a copy of this section with any court as written evidence of the consent of the parties to the waiver of any right they might otherwise have to
trial by jury. 
 Section 10.17 Not an Offer. Presentation of drafts of this Agreement by one party hereof to the other
party hereof shall not be deemed an offer, and this Agreement shall only become a binding and enforceable contract upon execution hereof by both parties. 
 Section 10.18 Limited Liability. Neither the members, partners, affiliates, managers, employees, representatives or agents of Seller, nor the shareholders, officers, directors, employees or agents
of any of them shall be liable under this Agreement and all parties hereto shall look solely to the assets of Seller for the payment of any claim or the performance of any obligation by Seller. Neither the shareholders, members, partners,
affiliates, managers, employees, representatives or agents of Buyer, nor the shareholders, officers, directors, employees or agents of any of any of them shall be liable under this Agreement and all parties hereto shall look solely to the assets of
Buyer for the payment of any claim or the performance of any obligation by Buyer. 
 Section 10.19 No Third Party
Beneficiaries. Nothing in this Agreement is intended to benefit any third party, or create any third party beneficiary. 
 Section 10.20 Time of Essence. Time is of the essence for this Agreement. 
 Section 10.21 No
Waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall 

  

 58 

 
any waiver constitute a continuing waiver, nor shall a waiver in any instance constitute a waiver in any subsequent instance. No waiver shall be binding
unless executed in writing by the party making the waiver. 
 Section 10.22 Further Acts. Each party, at the request of
the other, shall execute, acknowledge or have notarized (if appropriate) and deliver in a timely manner such additional documents, and do such other additional acts, also in a timely manner, as may be reasonably required in order to accomplish the
intent and purposes of this Agreement. 
 Section 10.23 Intentionally Omitted. 
 Section 10.24 Intentionally Omitted. 
  

 59 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and
year first above written. 
  

							
	SELLER:	 		 	 57TH STREET OWNER, LLC,
 a Delaware limited
liability company

				
		 		 	By:	 	 /s/ Patrick K. Fox

		 		 	Name:	 	Patrick K. Fox
		 		 	Title:	 	  

			
	BUYER:	 		 	 APPLE EIGHT HOSPITALITY OWNERSHIP,
 INC., a
Virginia corporation

				
		 		 	By:	 	 /s/ Justin Knight

		 		 	Name:	 	Justin Knight
		 		 	Title:	 	  

 [Purchase and Sale Agreement for Hotel 57] 

 ESCROW AGENT: 
 The Escrow Agent is executing this Agreement to evidence its agreement to hold the Deposit and act as escrow agent in accordance with the terms and conditions of this Agreement. 
  

			
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

 [Purchase and Sale Agreement for Hotel 57] 

 Exhibit “A” 
 Description of Land for Hotel 57 
 PERIMETER DESCRIPTION: 
 ALL THAT CERTAIN LOT, PIECE OR PARCEL OF LAND, SITUATE, LYING AND BEING IN THE BOROUGH OF MANHATTAN, CITY, COUNTY AND STATE OF NEW YORK, BOUNDED AND DESCRIBED AS FOLLOWS:

 BEGINNING AT THE CORNER FORMED BY THE INTERSECTION OF THE WESTERLY SIDE OF OR LINE OF LEXINGTON AVENUE AND THE SOUTHERLY SIDE OF EAST 57TH STREET;

 RUNNING THENCE SOUTHERLY ALONG THE WESTERLY SIDE OF LEXINGTON AVENUE, 100 FEET 5 INCHES; 
 THENCE WESTERLY PARALLEL WITH 57TH STREET, 90 FEET; 
 THENCE NORTHERLY AND PARALLEL WITH LEXINGTON AVENUE, 100 FEET 5 INCHES
TO THE SOUTHERLY SIDE OF EAST 57TH STREET; 
 THENCE EASTERLY ALONG THE SOUTHERLY SIDE OF EAST 57TH STREET, 90 FEET TO THE POINT OR PLACE OF BEGINNING.

  

 1 

 Exhibit “B” 
 List of Leases 
 Lease dated December 23, 1999 with Cole 57th Street LLC for Ground Floor Retail Space and other
space located at 130 East 57th Street. 
 Agreements with Cole 57th Street LLC regarding substantial completion of Landlord’s Work, dated
September 6, 2001 
 Lease dated September     , 2000 with Deep Blue Group LLC for second floor and other space located at
130 East 57th Street. (Oral agreement allows tenant to use a piano practice room on the penthouse floor as an office) 
 Agreements Fixing Commencement Date
with Deep Blue Group LLC , dated June 8, 2001 
 Lease dated June     , 2003 with American Leather of New York Inc. for
Retail Store located at 690 Lexington Avenue. 
 Lease dated November     , 2002 with Subway Real Estate Corp. for Retail Store
located at 692 Lexington Avenue. 
 Lease dated June     , 2004 with Fancy Cut Corp. for Retail Store located at 694 Lexington
Avenue. 
 First Amendment to Lease dated August     , 2007 with Fancy Cut Corp. for Retail Store located at 694 Lexington Avenue.

 Lease dated November 8, 2006 with Indulge Boutique for retail store at 696 Lexington. 
 Agreements Fixing Commencement Date with Indulge Boutique, dated November 7, 2006 
 Oral (and written where noted)
lease agreements with each of the residential tenants listed on the rent roll set forth below for the room denoted on such rent roll 
 Note: All
tenants are subject to hotel stabilization. No tenant has a written lease except where noted. No tenant has a security deposit 
  

									
	 Current
Room
	  	 Name
	  	 Original
Room
	  	 Rent
(Weekly)
	  	 Comments

	 305
	  	Greenbaum, Harriet	  	1119	  	85.33	  	Letter Agreement dated May 24, 2005
	 306
	  	Pascarella, Anna	  	407	  	99.00	  	no written agreement
	 310
 (temp)
	  	Daniels, Charlotte	  	1608	  	111.48	  	Original room 1608 was damaged by fire but has been restored and is now ready for occupancy. Tenant has been notified that 1608 is ready for her to re-occupy. Ten Day Notice to Quit given
September 7, 2007. Notice of Petition (Index No. L&T 89689/07) filed September 28, 2007 to remove tenant from premises.

  

 1 

									
	 509
	  	Compton, Maria	  	1234	  	90.15	  	Letter Agreement dated May 25, 2005
	 609
	  	Compton, Amrita	  	1003	  	141.19	  	VACATED; DIED weekend of Feb 24, 2007
	 704
	  	Ramnagar, Mehru	  	1018	  	78.58	  	Agreement dated July 21, 2005, - room is temporary pursuant to letter agreement. Tenant disputes that Room 1001 qualifies as the permanent room under her agreement.
	 706
	  	Rabinowitz, Helen	  	1021	  	83.70	  	Letter Agreement dated July 21, 2005
	 711
	  	 Hudson, Theresa
 (Brooke)
	  	1424	  	24.34	  	Letter Agreement dated June 27, 2005; temporarily moved to room 709 while room 711 is exterminated
	 712
	  	Charles, Julie	  	1207	  	85.33	  	Letter Agreement dated February 2005
	 807
	  	Green, Barbara	  	807	  	90.45	  	VACATED March 12, 2007
	 811
	  	Ballesta, Ivette	  	1419	  	126.59	  	Letter Agreement dated August 2, 2005
	 812
	  	Patricia Smith	  	1604	  	77.07	  	Signatory to Tenant Agreement dated June 8, 2001
	 814
	  	Roberson, Cynthia	  	825	  	116.57	  	Letter Agreement undated
	 906
	  	Heaton, Hildred	  	1409	  	80.50	  	Vacated Spring 2007
	 911
	  	Johnson, Elsie	  	1434	  	74.41	  	Signatory to Tenant Agreement dated June 8, 2001
	 912
	  	Murphy, Ellen	  	1402	  	82.11	  	Signatory to Tenant Agreement dated June 8, 2001
	 1004
	  	Dosch, Debra	  	1519	  	85.05	  	Letter Agreement dated December 9, 2004 - room was originally temporary (permanent room was to be on 14th floor) but she has verbally agreed to stay in on 1004 and in process of obtaining
written confirmation
	 1006
	  	Broedner, Sigrid	  	1508	  	129.23	  	Signatory to Tenant Agreement dated June 8, 2001; Letter Agreement dated January 20, 2006
	 1212
	  	Silas, Katheryn	  		  	75.60	  	Signatory to Tenant Agreement dated June 8, 2001
	 1412
	  	Hennessey, Eileen	  	1220	  	75.95	  	Signatory to Tenant Agreement dated June 8, 2001
	 1506
	  	Elizabeth, Shirley	  	1505	  	79.03	  	Signatory to Tenant Agreement dated June 8, 2001; room is the same location but renumbered

  

 2 

 List of Notices of Default Given to Tenants by Seller 
 Ten Day Notice to Quit given to Charlotte Daniels September 7, 2007 
  

 3 

 Exhibit “C” 
 Disclosure Items 
 Suits and Proceedings affecting the Property 
  

	 	•	 	 A.D.A. Access Today Inc. and Nelson Stern v. Goldman, United States District Court, Southern District Of New York, Docket No. 04 Civ. 01919 (MBM). ADA action.

  

	 	•	 	 Admiral Indemnity Co. v. 57th Street Operating LLC, Supreme Court, New York County, Index No. 113458/04. Property damage being handled by insurance carrier.

  

	 	•	 	 Richard Hasten and Rochelle Hasten v. 57th Street Operating LLC, Supreme Court, New York County. Personal injury being handled by insurance carrier.

  

	 	•	 	 Samuel Ejadi v. Fifty Seventh Operating LLC, Supreme Court, New York County. Personal injury being handled by insurance carrier. 

  

	 	•	 	 Reinaldo Morales v. Habitat Hotel, Supreme Court, New York County. Personal injury being handled by insurance carrier. 

  

	 	•	 	 In re Fifty Seventh Street Operating LLC, Case No. 2-2044125W0, Dept. Environmental Conservation. Nonregistration of petroleum bulk storage facility.

  

	 	•	 	 Pre-action claim by four (4) prior occupants alleging damages for discrimination. 

  

	 	•	 	 Notice of Petition (Index No. L&T 89689/07) filed by Seller against Charlotte Daniels on September 28, 2007 to remove tenant from premises for holdover.

 Unfair Labor Practices, Charges and Complaints 
  

	 	•	 	 See Notice of Office of Impartial Chairman dated May 30, 2006 re #U06-006 relating to Opia Restaurant. The Opia Restaurant grievance and/or demand for
arbitration, dated May 30, 2006 #u06-006, has been settled by the Seller and Manager with the Union in the Me Too Agreement between the Union and Seller and Manager, dated as of August 1, 2007 with no back pay liability.

  

 1 

 Exhibit “D” 
 List of Service and Other Contracts 
  

			
	 Company
	 	 Service

	A&W	 	Fire control panel
	Abalon Exterminators	 	Extermination
	Action Carting	 	Garbage removal
	AFA	 	Fire - central command & certification
	Alitalia	 	Crew Contract
	American Christmas	 	Christmas decoration
	Argentinian	 	Crew Contract
	Best Cleaners	 	Outside dry cleaning service
	Carnegie	 	Outside laundry service
	CIT Technologies	 	Copiers (financing)
	Con Ed	 	Electric & gas supply
	Courtesy products	 	Coffee machines
	Craig Cohen	 	Union/labor lawyer
	DataPlus Hospitality	 	Accounting system
	DCI	 	Phone line cabling service
	Digital Hold	 	Telephone hold message
	Freedom Solutions	 	MTC for network firewall & router
	Gray V	 	lobby music
	hotel expert	 	Internal maintenance
	Hotel Internet Strategies Inc	 	Website
	Leardon Boilers	 	Boiler maintenance
	Merchant Link	 	credit card processing
	Michael Kleinberg	 	Photography, public relations
	Micros Systems Inc	 	PMS
	Network Synergy	 	Email service
	NXTV	 	POD TV service
	Ozone Marketing	 	Revenue management service
	Payment Tech	 	Credit card merchant services
	Peace of Mind Technology (POM)	 	Security Cameras
	Pegasus SolutionsUnirez	 	GDS
	Quench	 	Water cooler
	RSH	 	UK sales representation
	Securerez	 	Website reservations
	Shift 4 Corporation	 	Credit card processing

  

 1 

			
	Signature	 	Reservations quality control
	Smith Travel Services	 	Revenue management tool
	Sorbis	 	Internet - wireless and changes
	T Mobile	 	Cell phones
	Time Warner Cable	 	Cable TV
	Transel Elevator Inc	 	Elevator maintenace
	TravelClick Rateview	 	Revenue management tool
	Unirez / Pegasus Solutions	 	GDS
	US LEC Corp	 	Local and long distance
	VAS	 	Call Center
	Verizon	 	T1’s

  

 2 

 Exhibit “E” 
 Form of Assignment and Assumption of the Ground Lease 
 ASSIGNMENT AND ASSUMPTION OF LEASE 

 ASSIGNMENT AND ASSUMPTION OF LEASE, made this      day of
[                    ], 2007, by and between 57TH STREET OWNER, LLC, a Delaware limited liability company (“Assignor”), and
[                    ] (“Assignee”). 
 W I T N E S S E T H : 
 By Lease dated June 9, 1997 between (a) Jane Harriet Goldman, Allan Howard Goldman and
Louisa Little, as Executors of the Last Will and Testament of Sol Goldman d/b/a Empire Associates Realty Co., as to an undivided sixty percent interest; Jane Harriet Goldman, Allan Howard Goldman and Louisa Little, as Co-Trustees of the Lillian
Goldman Marital Trust under the Will and Testament of Sol Goldman, as to an undivided 20 percent interest, and Lillian Goldman, individually, as to an undivided 20 percent interest (“Lessor”), as lessor, and (b) 57th Street Operating
LLC, a New York limited liability company (“Lessee”), as lessee, as amended by (i) that certain Letter Agreement, handwritten, undated and two pages from Lessee to Lessor, (ii) that certain Additional Lease Agreement, dated as of
June 9, 1997, by and between Lessor and Lessee, (iii) that certain Amendment to Additional Lease Agreement, dated as of August 6, 1997, by and between Lessor and Lessee and (iv) that certain First Amendment to Lease, dated as of
June 28, 2000, by and between Lessor and Lessee, and as assigned to Assignor by that certain Assignment and Assumption of Lease, dated as of November 22, 2006, by and between Lessee and Assignor (such lease, as amended and assigned, being
hereinafter referred to as the “Lease”), Assignor currently leases the land and building located at 692 Lexington Avenue (a/k/a 130 East 57th Street), New York, New York 10022. 
 This Assignment and Assumption of Lease is being executed and delivered pursuant to that certain Purchase and Sale Agreement, dated as of
[                    ], 2007 (the “Purchase Agreement”), by and among Assignor, as seller, and Assignee, as buyer. 
 NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable consideration paid by Assignee to Assignor, the receipt and
sufficiency of which are hereby acknowledged by Assignor, and in consideration of the covenants and agreements contained herein, the parties hereto agree as follows: 
 1. Assignor hereby assigns, transfers and sets over unto Assignee, its successors and assigns, all of the right, title and interest of Assignor as tenant in, to and under the Lease, to have and to hold the same unto
Assignee, its successors and assigns, from and after the date hereof, for the rest and remainder of the term thereof, subject to the rents, additional rents, covenants, conditions and other provisions contained therein. 

 2. Assignee, for itself and it successors and assigns, hereby covenants and agrees with Assignor and its
successors and assigns, that it accepts and assumes and agrees to pay, perform, observe or discharge, from and after the date hereof, all of the covenants, conditions, agreements, terms and obligations on the part of the tenant or lessee to pay,
perform observe or discharge under the Lease. 
 3. Assignee agrees to indemnify and hold Assignor harmless from and against any and all
claims, losses, liabilities and expenses (including, without limitation, attorneys’ fees) which may be asserted against, imposed upon or incurred by Assignor in connection with Assignee’s breach of any covenant, condition, agreement, term
or obligation on the part of the tenant to be performed under the Lease from and after the date hereof. 
 4. This Assignment and Assumption
of Lease may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 
 5. Assignor, in compliance with Section 13 of the New York Lien Law, covenants that Assignor will receive the consideration for this conveyance and will hold the right to receive such consideration as a trust
fund to be applied first for the purpose of paying the cost of the improvement and will so apply the same before using any part of the total of the same for any other purpose. 
 [Signatures Appear on Following Page] 
  

 4 

 IN WITNESS WHEREOF, Assignor and Assignee have caused this Assignment and Assumption of Lease to be
executed as of the date and year first above set forth. 
  

															
	 	 	 	 	Assignor:
			
	Witness:	 		 	57TH STREET OWNER, LLC,
		 		 	a Delaware limited liability company,
				
	  
	 		 	By:	 	57th Street Mezz, LLC,
		 		 		 	 a Delaware limited liability company,
 its
managing member

				
		 		 		 	 By: 57th Street Operating, LLC,
 a New
York limited liability company,
 its managing member

					
		 		 		 		 	 By: RP PMG Manhattan Hotels, LLC,
 a
Delaware limited liability company,
 its managing member

							
		 		 		 		 		 	By:	 	  

		 		 		 		 		 	Name:	 	
		 		 		 		 		 	Title:	 	
			
		 		 	Assignee:
			
		 		 	[                                       
 ]
				
	Witness:	 		 	By:	 	  

		 		 	Name:	 		 		 		 		 	
		 		 	Title:	 		 		 		 		 	
	  
	 		 		 		 		 		 		 	

			
	 STATE OF NEW YORK
	 	)
		 	) ss:
		
	COUNTY OF NEW YORK	 	)

 On the      day of
                    , in the year 2007, before me, the undersigned, a Notary Public in and for said State, personally appeared
                    , personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is
(are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument. 
  

			
		 	  

		 	 Notary Public

 (Acknowledgment for Assignor) 
  

			
	 STATE OF NEW YORK
	 	)
		 	) ss:
		
	COUNTY OF NEW YORK	 	)

 On the      day of
                    , in the year 2007, before me, the undersigned, a Notary Public in and for said State, personally appeared
                    , personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is
(are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument. 
  

			
		 	  

		 	 Notary Public

 (Acknowledgment for Assignor) 
  

 1 

 Exhibit “F” 
 Form of Bill of Sale 
 BILL OF SALE 
 ON                     , a Delaware limited liability company,
whose address is 13155 Noel Road, Suite 700, LB 54, Dallas, TX 75240 (hereinafter referred to as “Seller”), in consideration of Ten ($10.00) Dollars in hand paid by
                    , a
                    , whose mailing address is
                    (hereinafter referred to as “Buyer”), the receipt and sufficiency of which is hereby acknowledged, does
hereby sell, grant, assign, convey, transfer, set over, and quit-claim unto Buyer, its successors and assigns, all of Seller’s right, title and interest in and to all the Personal Property (as defined in the Purchase Agreement, hereinafter
defined). 
 TO HAVE AND TO HOLD the Personal Property unto Buyer, its successors and assigns forever. 
 This Bill of Sale is made without warranty or representation, express or implied, by, or recourse against, Seller of any kind or nature whatsoever except
as expressly provided in the Purchase and Sale Agreement dated as of the date hereof, by and between Seller and Buyer (the “Purchase Agreement”). 
 This Bill of Sale has been duly executed by Seller as of the      day of
                    , 2007. 
  

			
	                                      
                      , LLC,
	a Delaware limited liability company
		
	By:	 	  

	Name:	 	
	Title:	 	

 Schedule: 
 Schedule A                     Description of Premises 
  

 1 

 Exhibit “G” 
 Form of Assignment and Assumption of Leases 
 ASSIGNMENT AND ASSUMPTION OF LANDLORD’S INTEREST
IN TENANT 
 LEASES 
 ASSIGNMENT AND ASSUMPTION OF LANDLORD’S INTEREST IN TENANT LEASES dated                     , 2007, between
                    , a Delaware limited partnership having an address at 13155 Noel Road, Suite 700, LB 54, Dallas, TX 75240
(“Assignor”) and                     , a
                     having an address at
                     (“Assignee”). 
 Background 
 This Assignment and Assumption of Landlord’s Interest in Leases is being executed
and delivered pursuant to that certain Purchase and Sale Agreement dated as of                     , 2007 (the “Purchase
Agreement”) among                     , a Delaware limited liability company, and Assignor (“Seller”), as seller,
and Assignee, as buyer. All capitalized terms used but not defined herein shall have the meanings ascribed to them in the Purchase Agreement. 
 Assignment and Assumption 
 In consideration of Ten ($10.00) Dollars in hand paid by Assignee, the receipt and sufficiency
of which is hereby acknowledged, Assignor does hereby assign, transfer and set over unto Assignee, all of Assignor’s right, title and interest in and to: 
 Those leases, occupancy agreements, license agreements, rental agreements, concession agreements and other written agreements entered into with any tenants relating to the Property and the buildings and other
improvements located thereon, or any portion thereof, as set forth on Schedule A attached hereto (all of the foregoing leases, collectively, the “Tenant Leases”). 
 TO HAVE AND TO HOLD, the same unto Assignee, its successors and assigns, from and after the date hereof, subject to the terms, covenants, conditions and
provisions contained in the Tenant Leases. 
 Assignee hereby assumes the performance of all of the terms, covenants and conditions of the
Tenant Leases described on Schedule A attached hereto on the Assignor’s part to be performed thereunder from and after the date hereof and will well and truly perform all of the terms, covenants and conditions of such Leases from and after the
date hereof, all with the same force and effect as though the Assignee had signed such Tenant Leases as a party named therein. 
  

 1 

 This Assignment is made without warranty or representation, express or implied, by, or recourse against,
Assignor or Assignee of any kind or nature whatsoever except as expressly provided in the Purchase Agreement. This Assignment is made subject to Assignor’s and Assignee’s performance of, and Assignor and Assignee acknowledge, their
respective indemnification obligations under Section 5.5(a) of the Purchase Agreement. 
 IN WITNESS WHEREOF, the Assignor and Assignee
have duly executed this instrument as of the day first above written. 
  

			
	ASSIGNOR:
	
	                                      
  ,
	a Delaware limited liability company
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ASSIGNEE:
	
	  

		
	By:	 	  

	Name:	 	
	Title:	 	

 Schedules: 
 Schedule A                      Tenant Leases 
  

 2 

 Exhibit “H” 
 Form of Assignment and Assumption of Contracts 
 ASSIGNMENT AND ASSUMPTION OF CONTRACTS, WARRANTIES
AND GUARANTIES AND OTHER INTANGIBLE PROPERTY dated as of [                    ]     , 2007, between 57TH
STREET OWNER, LLC, a Delaware limited liability company having an address at c/o Rockpoint Fund II Acquisitions, 13155 Noel Road, Suite 700, LB 54, Dallas, TX 75240 (“Assignor”), and
[                    ], a [                    ]
having an address at [                                ] (“Assignee”).

 Background 
 This
Assignment and Assumption of Contracts is being executed and delivered pursuant to that certain Purchase and Sale Agreement, dated as of the date hereof, by and between Assignor and Assignee (the “Purchase and Sale Agreement”). All
capitalized terms used but not defined herein shall have the meanings ascribed to them in the Purchase and Sale Agreement. 
 Assignment
and Assumption 
 In consideration of Ten ($10.00) Dollars in hand paid by Assignee, the receipt and sufficiency of which is hereby
acknowledged, Assignor does hereby assign, transfer and set over unto Assignee, all of Assignor’s right, title and interest in and to: 
  

	 	1.	All those agreements, contracts or understandings of Assignor relating to ownership, operation, maintenance, and management of the Property and the buildings and other improvements
located thereon, or any portion thereof except the Management Agreement, as set forth on Schedule A attached hereto (collectively, the “Contracts”); 

  

	 	2.	All warranties and guarantees, if any, relating to the personal property located on the Property or in the buildings and other improvements located thereon (collectively, the
“Warranties”); 

  

	 	3.	All of the Bookings; 

  

	 	4.	To the extent Assignor’s rights and interests therein are assignable, all names, trade names, trademarks, service marks, logos, and other similar proprietary rights and all
registrations or applications for registration of such rights to the used by the Seller in the operation of the Property; and 

  

	 	5.	To the extent assignable, all licenses, registrations, certificates, permits, approvals and other governmental authorizations relating to the construction, operation, use or
occupancy of the Property and the buildings and other improvements located thereon, or any portion thereof. 

  

 1 

 TO HAVE AND TO HOLD, the same unto Assignee, its successors and assigns, from and after the date hereof,
subject to the terms, covenants, conditions and provisions contained in the Agreements. 
 Assignee hereby assumes the performance of all of
the terms, covenants and conditions of the Contracts and the Bookings on the Assignor’s part to be performed thereunder from and after the date hereof and will perform all of the terms, covenants and conditions of the Contracts and the
Bookings, all with the same force and effect as though the Assignee had signed such Contracts and Bookings as a party named therein. 
 This
Assignment is made without warranty or representation, express or implied, by, or recourse against, Assignor of any kind or nature whatsoever except as expressly provided in the Purchase and Sale Agreement. This Assignment is made subject to
Assignor’s and Assignee’s performance of, and Assignor and Assignee acknowledge, their respective indemnification obligations under Section 5.5(a) of the Purchase Agreement. 
  

 2 

 IN WITNESS WHEREOF, the Assignor and Assignee have duly executed this instrument as of the day first
above written. 
  

			
	ASSIGNOR:
	
	                                      
  ,
	a Delaware limited liability company
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	ASSIGNEE:
	
	[BUYER]
		
	By:	 	  

	Name:	 	
	Title:	 	

 Schedules: 
 Schedule A                     Contracts 
  

 3 

 Exhibit “I” 
 Description of Existing Surveys 
 Survey by George C. Hollerith dated 5/8/1925 and updated by visual examination by
Earl B. Lovall-S.P. Belcher, Inc. on 11/3/2006. 
 Survey by George C. Hollerith dated 2/5/1927 and updated by visual examination by Earl B. Lovall-S.P.
Belcher, Inc. on 11/8/2006. 
  

 1 

 Exhibit “J” 
 The Ground Lease 
 Description of Lease 
 Lease Agreement dated as of June 9, 1997, by and between (a) Jane Harriet Goldman, Allan Howard Goldman and Louisa Little, as Executors of the Last Will and Testament of Sol Goldman d/b/a Empire Associates
Realty Co., as to an undivided sixty percent interest; Jane Harriet Goldman, Allan Howard Goldman and Louisa Little, as Co-Trustees of the Lillian Goldman Marital Trust under the Will and Testament of Sol Goldman, as to an undivided 20 percent
interest, and Lillian Goldman, individually, as to an undivided 20 percent interest, as Lessor (“Lessor”) and (b) Fifty Seventh Street Operating, LLC, as Lessee (“Lessee”) 
 Guarantee Until Delivery of Possession given by Ziel Feldman in favor of the Ground Lessor (undated but given in connection with the execution of the above mentioned
Lease Agreement) 
 Letter Agreement (handwritten) undated, from Lessee to Lessor. 
 Additional Lease Agreement dated as of June 9, 1997, by and between Lessor and Lessee 
 Amendment to Additional Lease
Agreement dated as of August 6, 1997, by and between Lessor and Lessee 
 First Amendment to Lease dated as of June 28, 2000, by and between Lessor
and Lessee 
 Lessor Certificate dated as of June 2000, from Lessor to Lessee 
 Lessor Estoppel Certificate dated as of November 13, 2006, from Lessor to Seller 
 Assignment and Assumption of Lease
dated as of November 22, 2006, by and between Lessee and Seller 
 Defaults 
 Notice to Cure dated January 23, 2006 (annexed hereto without exhibits) 
 Notice to Cure dated January 24, 2006
(annexed hereto without exhibits) 
 Notice to Cure dated November 9, 2006 (annexed hereto without exhibits) 
 All other liens and violations of record as set forth in the Title Commitment which may be cured by removal of same from record. Lessor has not served a Notice to Cure
with respect to such other liens and violations of record 
  

 1 

 [Note that by Order and Judgment issued February 27, 2007, the Supreme Court of the State of New York ruled in favor
of Seller and (a) permanently enjoined Ground Lessor from terminating the Ground Lease based on the foregoing Notices of Default and serving a notice of termination based on the Notices of Default or the conditions set forth therein and
(b) tolled the running and expiration of the cure period.] 
  

 2 

 Exhibit “K” 
 Form of FIRPTA Certificate 
 Section 1445 of the Internal Revenue Code provides that a
transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U.S. real property interest under
local law) will be the transferor of the property and not the disregarded entity. To inform [                    ] (“Transferee”)
that withholding of tax is not required upon the disposition of a U.S. real property interest by RP PMG MANHATTAN HOTELS, LLC, a Delaware limited liability company (“Transferor”), the undersigned, in his or her capacity as
                    , but not individually, hereby certifies to Transferee the following on behalf of Transferor: 
  

	 	1.	Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations);

  

	 	2.	Transferor is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii); 

  

	 	3.	Transferor ‘s U.S. employer identification number is
                    ; and 

  

	 	4.	Transferor ‘s office address is c/o Rockpoint II Fund Acquisitions, 13155 Noel Road, Suite 700, LB 54, Dallas, TX 75240. 

 Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained
herein could be punished by fine, imprisonment, or both. 
 [SIGNATURE PAGE FOLLOWS] 

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

			
	 RP PMG MANHATTAN HOTELS, LLC, a
 Delaware
limited liability company

		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

  

 1 

 Exhibit “L” 
 Form of Notice to Tenants 
 NOTICE TO TENANTS UNDER TENANT LEASES 
  

	
	  

	  

	  

  

			
	Re:	 	 Lease, dated as of                     
(as amended, the
 “Lease”) by and between
                    , as
 landlord
(“Landlord”), and                     , as
 tenant (“Tenant”)

 Ladies and Gentlemen: 
 Reference is hereby made to the Lease. Pursuant to the Lease, Tenant has leased from Landlord certain premises located in that certain property located at
                    , New York, New York, (the “Property”) 
 Landlord hereby notifies Tenant that Landlord is, on the date hereof, conveying and otherwise transferring its interest in the Property to
                     (“Assignee”). Please be advised that all future rentals and payments under the Lease should be delivered
to Assignee (as the new landlord under the Lease) as follows: 
  

			
		 	  

		 	  

		 	  

 Please be further advised that all future notices and correspondence under the Lease should be
delivered to Assignee (as the new landlord under the Lease) as follows: 
  

			
		 	  

		 	  

		 	  

 Please call Assignee’s representative,
                    , at
                    , if you have any questions regarding the Lease after the date hereof. 
 [Please see next page for signatures] 
  

 1 

			
	Very truly yours,
	
	Landlord:
	
	                                      
  , a Delaware limited liability
company
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Assignee:
		
		 	[BUYER]

  

 2 

 Exhibit “M” 
 Rent Roll 
 Commercial Tenants 
  

							
	 TENANT
	  	Rent for Nov-07	  	Past Due Rent or
Additional Rent
	 Cole 57
	  	$	60,500.00	  	$	5,500.00
	 Opia
	  	$	22,388.50	  	$	23,388.50
	 American Leather
	  	$	14,631.61	  	$	14,631.61
	 Subway
	  	$	12,380.80	  	$	12,380.80
	 Fancy Cut
	  	$	9,000.00	  	$	18,000.00
	 Indulge Boutique
	  	$	11,000.00	  	$	11,000.00
	 TOTAL
	  	$	129,900.91	  	$	84,900.91

 Residential Tenants as of November 5, 2007 
  

							
	 Current
Room
	  	 Name
	  	Original
Room	  	Rent
(Weekly)
	 305
	  	Greenbaum, Harriet	  	1119	  	85.33
	 306
	  	Pascarella, Anna	  	407	  	99.00
	 310
 (temp)
	  	Daniels, Charlotte	  	1608	  	111.48
	 509
	  	Compton, Maria	  	1234	  	90.15
	 704
	  	Ramnagar, Mehru	  	1018	  	78.58
	 706
	  	Rabinowitz, Helen	  	1021	  	83.70
	 711
	  	Hudson, Theresa (Brooke)	  	1424	  	24.34
	 712
	  	Charles, Julie	  	1207	  	85.33
	 811
	  	Ballesta, Ivette	  	1419	  	126.59
	 812
	  	Patricia Smith	  	1604	  	77.07
	 814
	  	Roberson, Cynthia	  	825	  	116.57
	 911
	  	Johnson, Elsie	  	1434	  	74.41
	 912
	  	Murphy, Ellen	  	1402	  	82.11
	 1004
	  	Dosch, Debra	  	1519	  	85.05
	 1006
	  	Broedner, Sigrid	  	1508	  	129.23
	 1212
	  	Silas, Katheryn	  		  	75.60
	 1412
	  	Hennessey, Eileen	  	1220	  	75.95
	 1506
	  	Elizabeth, Shirley	  	1505	  	79.03

  

 1 

 Exhibit “N” 
 Work to Be Performed; Contribution Payments to be Made; Brokerage Fees to be Paid 
 Part I – Work to Be
Performed 
 None 
 Part II – Contribution Payments
to be Made 
 None 
 Part III – Brokerage Fees to be
Paid 
 None 
  

 1 

 Exhibit “O” 
 Data Room Index 
 HOTEL 57 
 DOCUMENT INVENTORY 
  

			
	 FOLDER
	  	 FILE

	 Bookings Information
	  	
		  	Educational Performance Tours Sales Contract
	 Certificate of Occupancy
	  	
		  	Certificate of Occupancy - Corner Building - 1983
		  	Certificate of Occupancy - Hotel - 1992
	 Electric Bills
	  	
		  	Bill History - Account 1
		  	Bill History - Account 2
		  	Bill History - Account 3
		  	Bill History - Account 4
		  	Bill History - Account 5
	 Environmental
	  	
		  	Phase I
		  	Spill Case Closure Document
	 Financials
	  	
		  	Hotel 57 Retail - 051507
		  	2008 Budget
		  	Financials
	 Ground Lease
	  	
		  	Letter Agreement - Undated
		  	First Amendment to Lease - 062800
		  	Lessor Certificate as to Improvements - 6-2000
		  	Amendment to Additional Lease Agreement - 080697
		  	Net Lease - 060997
		  	Guarantee - Feldman
		  	Additional Lease Agreement - 060997
		  	Goldman Estoppel - Signed
		  	First Amendment
		  	Recorded Assignment and Assumption of Lease - 112206
		  	Order - 040406
		  	Goldman Notice of Default - 012306
		  	Hotel 57 Ground Lease - Order - 022707
		  	Goldman Notice of Default - 110906
		  	Notice of Entry
		  	Goldman Notice of Default - 012406
		  	Judgment - Notice of Entry - 022707
	 ICIP
	  	
		  	Hotel 57

  

 1 

 HOTEL 57 
 DOCUMENT INVENTORY 
  

			
	 FOLDER
	  	 FILE

	 Leases
	  	
		  	Kenneth Cole - 122399
		  	Subway - 11-2002
		  	Cole - Agreement re: Substantial Completion - 090601
		  	Opia - Agreement Fixing Commencement Date - 060801
		  	Opia - 9-2000
		  	Cole - Agreement re: Construction Payment - 110102
		  	Indulge - Agreement Fixing Commencement Date
		  	American Leather - 6-2003
		  	Fancy Cut - 6-2004
		  	Indulge
		  	Fancy Cut Amendment
	 Liquor License
	  	
		  	Hotel 57 Liquor License
		  	Liquor License
	 Offering Memorandum
	  	
		  	Offering Memorandum
	 Property Condition Report
	  	
		  	Property Condition Report
		  	Final OPC
	 Service Agreements
	  	
		  	Service Agreements Summary
		  	Hotel 57 Service Contracts 9-12-07
		  	Time Warner Contract
		  	Micro Systems Inc Contract
		  	Courtesy Products Contract
		  	Transel Elevator Contract
		  	Craig Cohen Letter
		  	A-W Fire Controls Contract
		  	Travel Click Contract
		  	Peace of Mind Technology Contract
		  	Hotel Expert Contract
		  	Hotel 57 - STR Contract
		  	Peace of Mind Technology POM Contract
		  	Hotel 57 Hotelligence and RateView Forms - 020607
		  	Ozone - 051107 - Fully Executed Contract
		  	NXTV Inc Contract
		  	AFA Contract
		  	DataPlus Contract - signed
		  	VAS - Signed by Citylife
		  	ALITALIA-LINEE AEREE ITALIANE Agreement
		  	Aerolineas Argeintinas Agreement
		  	RSH Agreement
		  	CIT Lease Agreement
		  	Aerolineas Argentinas Agreement - 2
		  	Carnegie Agreement
		  	City Life US LEC Contract
		  	American Christmas Contract
		  	Secure Rez Agreement
		  	Digital Hold Systems Agreement

  

 2 

 HOTEL 57 
 DOCUMENT INVENTORY 
  

			
	 FOLDER
	  	 FILE

	 STR Report
	  	
		  	STAR Report - 3-2007
		  	STR - 7-2007
		  	STR Weekly 9-30 thru 10-7
		  	STR Weekly - 10-7 thru 10-13
		  	STR - 8-2007
	 Survey
	  	
		  	57 Survey
		  	57 Survey - 2
	 Tax Payments
	  	
		  	Paid Property Tax 1
		  	Paid Property Tax
	 Tenant Agreements
	  	
		  	Letter from MFY 082307
		  	Letter - Jacques to Ramnage - 011906
		  	Tenant Agreement - 060801
		  	Letter to MFY - 082907
		  	Relocation Letters as of 102407
		  	Letter from MFY - 072407
		  	Petition
	 Title
	  	
		  	NY Title Report
	 Union Agreements
	  	
		  	57 Me Too - Fully Executed
		  	Union - Memorandum of Understanding 2006 - unsigned
		  	Industry-Wide CBA Effective 070101
	 Utility Bills
	  	
		  	0046
		  	0010
		  	Water Bills
		  	0001
		  	0003
		  	0005
	 Water Bill Payments
	  	
		  	Water Bill Payment History

  

 3 

 HOTEL 57 
 DOCUMENT INVENTORY 
  

			
	 FOLDER
	  	 FILE

	 Workers Compensation
	  	
		  	AIG Workmen’s Compensation Policy
		  	Workers Compensation History
		  	Workers Compensation Plan
	 Miscellaneous
	  	
		  	2006 ADR and Occupancy
		  	Fire Department Safety Plan 07
		  	Insurance Loss History
		  	Pending Tax Proceedings
		  	POM Breakdown

  

 4 

 Exhibit “P” 
 Data Room Items Not Provided 
  

 1 

 Exhibit “Q” 
 Form of Post-Closing Agreement 
 POST-CLOSING AGREEMENT 
 THIS POST-CLOSING AGREEMENT (this “Agreement”) is executed effective as of
                             (the “Effective Date”), by and among 57TH STREET OWNER, LLC, a
Delaware limited liability company (“Seller”), APPLE EIGHT HOSPITALITY OWNERSHIP, INC., a Virginia corporation (“Buyer”), and LAND AMERICA – AMERICAN TITLE COMPANY (“Escrow Agent”). 
 R E C I T A L S 
 WHEREAS, pursuant to
the provisions of Section 5.6(d) of that certain Agreement of Purchase and Sale dated as of
                             between Seller and Buyer (as amended, the “Contract”), Buyer
and Seller have requested that Escrow Agent hold in escrow the Escrow Funds (as defined in the Contract) in the amount of
$                     in accordance with the provisions, upon the terms and subject to the conditions of this Agreement; and 
 WHEREAS, the Escrow Funds are being delivered to Escrow Agent in accordance with the terms of the Contract and this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto agree as follows: 
 1. Defined Terms. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Contract. 
 2. Appointment of Escrow Agent. Seller and Buyer hereby appoint Escrow Agent to serve as escrow agent hereunder, and Escrow Agent agrees to act as
escrow agent hereunder in accordance with the provisions, upon the terms and subject to the conditions of this Agreement. The Escrow Agent hereby acknowledges receipt of the Escrow Funds. Escrow Agent shall invest the Escrow Funds as directed by
Seller, provided such investments are reasonably acceptable to Buyer, and interest earned thereon shall be disbursed to Seller from time to time upon Seller’s written request to Escrow Agent and shall accrue for the exclusive benefit of Seller.

 3. Escrow Funds. Subject to the rights and obligations to transfer, deliver or otherwise dispose of the Escrow Funds, Escrow Agent
shall keep the Escrow Funds in Escrow Agent’s possession pursuant to this Agreement for a period of one (1) year from and after the Closing Date (the “Escrow Term”) to provide for timely payment of claims made after Closing by
Buyer for indemnification, reimbursement, damages or other amounts payable by Seller or for the performance of any of Seller’s obligations (each, a “Claim”) pursuant to the terms of the Contract or this Agreement, including without
limitation all indemnification obligations of Seller to Buyer pursuant to the Contract and all other post-closing obligations of Seller under the Contract, all of which obligations shall survive Closing under the Contract and delivery of the Deed.

 4. Claims. Upon the determination by Buyer of the amount for which a Claim will be made, Buyer
shall send notice of such Claim (stating the amount claimed) to the Escrow Agent and Seller. If Seller does not give written notice to the Escrow Agent and Buyer of its intent to dispute the Claim or the amount claimed within five (5) business
days of the date Seller receives, pursuant to Section 8 below, Buyer’s notice of Claim, Escrow Agent shall immediately pay to Buyer from the Escrow Funds the amount specified in Buyer’s notice. If Seller disputes the Claim within the
five (5) business day period and Buyer and Seller are unable to settle the dispute, Buyer and Seller shall petition a court of competent jurisdiction for a resolution of the dispute. Seller and Buyer shall each pay their respective costs
incurred in any such court proceedings and shall bear equally the expenses of the Escrow Agent in connection therewith. If Buyer and Seller fail to bring such petition within thirty (30) days after the notice of dispute of claim is received,
Escrow Agent may, but is not required, to bring such a petition. In any such action, all parties hereto agree to waive any right to a trial by jury. After settlement or final determination of any dispute relating to a Claim, the Escrow Agent shall
immediately pay to Buyer from the Escrow Funds the amount, if any, determined to be payable to Buyer. Payment of any Escrow Funds to Buyer shall not discharge Seller’s obligations under the Contract unless and until all of Buyer’s Claims
are paid, discharged and satisfied in full. Subject to Section 5.6 of the Contract, Seller shall be and remain liable to Buyer for, and shall pay to Buyer the full amount of, all such Claims notwithstanding that the Escrow Funds may be
insufficient to pay the same in full, and Seller shall immediately pay to Buyer the amount of any deficiency to satisfy in full the amount of each Claim. Upon the expiration of the Escrow Term, the balance of the Escrow Funds will be disbursed to
Seller (less the amount of the potential Losses from any Claims for which Buyer has sent any notice of a Claim during the Escrow Term to Seller and Escrow Agent, to the extent that such Losses are more than the Seller Liability Threshold in the
aggregate), and all interest accrued in the Escrow Funds shall be disbursed to Seller ; provided, however, that subject to Section 5.6 of the Contract, the return of any Escrow Funds not shall terminate or relieve Seller of its unsatisfied
post-closing obligations, if any, to Buyer under the Contract. 
 5. Reliance by Escrow Agent. In the performance of its duties
hereunder, Escrow Agent shall be entitled to rely upon any document, instrument or signature purporting to be genuine and purporting to be signed by and of the parties hereto or their successors unless Escrow Agent has actual knowledge to the
contrary. Escrow Agent may assume that any person purporting to give any notice or instructions in accordance with the provisions hereof has been duly authorized to do so. 
 6. Liabilities of Escrow Agent. 
 A.
Escrow Agent shall not be liable for any error of judgment, or any action taken or omitted to be taken hereunder, except in the case of Escrow Agent’s willful, bad faith misconduct or negligence. Escrow Agent shall be entitled to consult with
counsel of its choosing and shall not be liable for any action suffered or omitted in accordance with the advice of such counsel. 

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

 C. Escrow Agent shall not be bound or in any way affected by any notice of any modification or cancellation of this Agreement, or of any
fact or circumstance affecting or alleged to affect rights or liabilities hereunder other than as is herein set forth, or affecting or alleged to affect the rights and liabilities of any other person, unless notice of the same is delivered to Escrow
Agent in writing, signed by the proper parties to Escrow Agent’s satisfaction and, in the case of modification, unless such modification shall be approved by Escrow Agent in writing. 
 7. Resignation or Termination of Escrow Agent. 
 A. Escrow Agent and any successor escrow agent, as the case may be, may resign his or its duties and be discharged from all obligations hereunder at any time upon giving five (5) business days’ prior written
notice to each of the parties hereto. The parties hereto will thereupon jointly designate a successor escrow agent hereunder within said five (5) business day period to whom the Escrow Funds shall be delivered. In default of such a joint
designation of a successor escrow agent, Escrow Agent shall retain the Escrow Funds as custodian thereof until otherwise directed by the parties hereto, jointly, or until the Escrow Funds is released in accordance with clause 7(B) below, in each
case, without liability or responsibility. 
 B. Anything in this Agreement to the contrary notwithstanding, (i) Escrow Agent, on
notice to the parties hereto, may take such other steps as the Escrow Agent may elect in order to terminate its duties as Escrow Agent hereunder, including, but not limited to, the deposit of the Escrow Funds with a court of competent jurisdiction
in the State of Texas and the commencement of an action of interpleaders, and (ii) in the event of litigation between any of the parties with respect to the Escrow Funds, Escrow Agent may deposit the Escrow Funds with the court in which said
litigation is pending and, in any such event, Escrow Agent shall be relieved and discharged from any liability or responsibility to the parties hereto. Escrow Agent shall not be under any obligation to take any legal action in connection with this
Agreement or its enforcement or to appear in, prosecute or defend any action or legal proceeding which, in the opinion of Escrow Agent, would or might involve Escrow Agent in any cost, expense, loss, damage or liability, unless and as often as
requested, Escrow Agent shall be furnished with security and indemnity satisfactory to Escrow Agent against all such costs, expenses (including attorney’s fees), losses, damages and liabilities. 
 8. 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 Seller:	  	 c/o Rockpoint Fund II Acquisitions, L.L.C.
 222 Berkeley
Street, Suite 2250
 Boston, Massachusetts 02116
 Telephone: (617)
437-8400
 Facsimile: (617) 437-7011
 Attention: Tom Gilbane and
Paisley Boney

		
	with a courtesy copy to:	  	 c/o Rockpoint Fund II Acquisitions, L.L.C.
 13155 Noel
Road/LB 54, Suite 700
 Dallas, Texas 75240
 Telephone: (972)
934-0100
 Facsimile: (972) 713-9349
 Attention: Patrick K. Fox,
Esq.

		
	and a courtesy copy to:	  	 c/o Property Markets Group, Inc.
 5 East 17th Street, 2nd Floor
 New York, New York 10003
 Telephone: (212) 610-2855
 Facsimile: (212) 610-2856
 Attention: Franklin R. Kaiman,
Esq.

		
	And a courtesy copy to:	  	 Gibson, Dunn and Crutcher LLP
 200 Park Avenue, 47th Floor
 New York, New York 10166
 Telephone: (212) 351-3871
 Facsimile: (212) 351-4035
 Attention: Andrew A. Lance, Esq.

		
	If to Buyer:	  	 c/o Apple Hospitality Companies
 814 East Main Street

 Richmond, Virginia 23219
 Telephone: (804) 727-6314

Facsimile: (804) 727-6354
 Attention: Samuel Reynolds

		
	with a courtesy copy to:	  	 c/o Apple Hospitality Companies
 814 East Main Street

 Richmond, Virginia 23219
 Telephone: (804) 727-6338

Facsimile: (804) 727-6354
 Attention: David F. Buckley,
Esq.

			
		
	and a courtesy copy to:	  	 McGuireWoods LLP
 901 East Cary Street
 Richmond, Virginia 23219
 Telephone: (804) 775-4331
 Facsimile: (804) 698-2119
 Attention: Charles L. Menges

		
	If to Escrow Agent:	  	 LandAmerica American Title Company
 2305 N. Plano Road

 Suite 3100
 Richardson, Texas 75082
 Telephone: (214) 570-0200
 Facsimile: (214) 570-0210
 Attention: Debby Moore

 or such other address or addresses as may be expressly designated by any party by notice given in accordance with
the foregoing provisions and actually received by the party to whom addressed. 
 9. Counterparts. This Agreement may be executed in
any number of counterparts each of which shall be deemed an original and all of which, together, shall constitute one and the same Agreement. 
 10. Binding Effect; Assignment; Amendments; Survival. The covenants, conditions and agreements contained in this Agreement shall bind and inure to the benefit of each of the parties hereto and their respective successors and assigns.
Seller shall not assign, pledge or otherwise encumber its rights or obligations hereunder in whole or in part without the prior written consent of Buyer. This Agreement may only be amended by a written modification executed by Buyer and Seller. This
Agreement shall survive Closing of the sale of the Property and delivery of the Deed and shall be in addition to, and not in limitation or in lieu of, all other rights and remedies available to Buyer at law, in equity or by contract, including the
Contract, which rights and remedies Buyer shall be entitled to exercise concurrently or in such order as Buyer may elect, in its sole discretion. Seller acknowledges and agrees that Seller’s liability for Claims shall survive Closing, that such
liability and Claims and Buyer’s rights and remedies with respect thereto are not limited to the Escrow Term, the amount of the Escrow Funds or any other provision of this Agreement and that Buyer’s rights hereunder shall not be limited or
otherwise affected by Buyer’s exercise of any of Buyer’s other rights and remedies, including without limitation any of those available to Buyer under the Contract. 
 [Signatures on Next Page] 

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

  

					
	SELLER:
	
	57TH STREET OWNER, LLC
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

	
	BUYER:
	
	APPLE EIGHT HOSPITALITY OWNERSHIP, INC.
			
		 	By:	 	  

		 	Name:	 	  

		 	Title:	 	  

	
	ESCROW AGENT:
	
	LAND AMERICA-AMERICAN TITLE COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 Exhibit “R” 
 Pending Tax Proceedings 
 [SEE ATTACHED] 

 Brandt, Steinberg & Lewis LLP 
 Open Petitions 
  

 Boro: M                      Block:
1311                     Lot: 58 
  

													
	 Year
	  	Index	  	Hi Lot	  	Group	  	 Attorney Name
	  	 Applicant
	  	NOI*
	 1996
	  	203412	  	0	  	18	  	PODELL ROTHMAN	  	ESTATE OF SOL GOLDMAN D/B	  	512
	 2002
	  	210493	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	500
	 2003
	  	255780	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0
	 2004
	  	253270	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0
	 2005
	  	259145	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0
	 2006
	  	259546	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0

 *NOI Codes: 
 1 = for filing a certified statement of income and expenses with the Law Department 
 2 = for filing a note of issue 
 3 = for defective petition because the Tax Commission dismissed the predicate application 
 5 = for a fifth-year extension under RPTL §718 agreed to with the Law Department 
 0 or blank = no code 
 August 1, 2007 

 Brandt, Steinberg & Lewis LLP 
 Open Petitions 
  

 Boro: M                      Block:
1311                     Lot: 59 
  

													
	 Year
	  	Index	  	Hi Lot	  	Group	  	 Attorney Name
	  	 Applicant
	  	NOI*
	 1996
	  	203412	  	0	  	18	  	PODELL ROTHMAN	  	ESTATE OF SOL GOLDMAN D/B	  	512
	 2002
	  	210493	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	500
	 2003
	  	255780	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0
	 2004
	  	253270	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0
	 2005
	  	259145	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0
	 2006
	  	259546	  	0	  	5	  	BRANDT, STEINBERG & LEWIS	  	57TH STREET OPERATING LLC	  	0

 *NOI Codes: 
 1 = for filing a certified statement of income and expenses with the Law Department 
 2 = for filing a note of issue 
 3 = for defective petition because the Tax Commission dismissed the predicate application 
 5 = for a fifth-year extension under RPTL §718 agreed to with the Law Department 
 0 or blank = no code 
 August 1, 2007 

 Exhibit “S” 
 Security Deposits 
  

				
	 Tenant
	  	Amount
	 Deep Blue Group LLC
	  	$	126,426
	 American Leather of New York Inc.
	  	$	26,000
	 Subway Real Estate Corp.
	  	$	33,000
	 Indulge Boutique
	  	$	33,000
	 Fancy Cut Corp.
	  	$	60,000

 Exhibit “U” 
 [Intentionally Omitted] 
  

 2 

 Exhibit “V” 
 Form of Title Affidavit 
 TITLE AFFIDAVIT 
 State of New York 
 County of                           } ss.: 
 The undersigned, being duly sworn, deposes and
says: 
 1. That (s)he is the                     
of 57TH Street Owner, LLC, a Delaware limited liability company (“57th Street Owner”). This affidavit is being delivered in connection with the sale of the property described on Exhibit A annexed hereto, which property is
known as 2170-2178 Broadway, New York, NY (the “Land”). 
  

	 	2.	That there are no tenants or persons in possession (collectively, “the Tenants”) of the Land except for those set forth on Exhibit B hereto. There are no options to
purchase or rights of first refusal to purchase in favor of any of the Tenants. 

  

	 	3.	That no work has been done on the land by the City of New York, nor has any demand been made by the City for any work, that may result in charges by the New York City Department of
Rent and Housing Maintenance— Emergency Services, the New York City Department of Health, or the New York City Department of Environmental Protection. 

  

	 	4.	That attached hereto is a full copy of the articles of organization and operating agreement for 57th Street Owner, as filed, and all amendments thereto, as filed, together with
proof of good standing in its place of formation. 

  

	 	5.	That this affidavit is being delivered in order to induce Fidelity National Title Insurance Company to issue its policy of title insurance knowing that they are relying on the truth
of the statements herein. 

 [SIGNATURE PAGE FOLLOWS] 
  

 3 

			
	57TH STREET OWNER, LLC,
	a Delaware limited liability company
		
	By:	 	  

	Name:	 	
	Its:	 	

 Sworn and subscribed to before me this 
                      day of July, 2007. 
 [Title Affidavit] 

 Exhibit A 
 Description of Land for On-the-Ave. Hotel 

 Exhibit B 
 List of Leases 

 Exhibit “W” 
 Form of Tenant Estoppel 
 TENANT’S ESTOPPEL CERTIFICATE 
 This TENANT ESTOPPEL CERTIFICATE (this “Estoppel”) is given to
[                    ] (“Purchaser”) by
[                    ], a
                    
[                    ] (“Tenant”), with the understanding that Purchaser and its counsel will rely on this Estoppel in connection with a
proposed purchase (the “Purchase”) of the premises at 130 East 57th Street a/k/a 690-696 Lexington Avenue (the “Property”) from 57th Street Owner, LLC, a Delaware limited liability company (“Seller”). 
 Tenant presently leases premises within the Property pursuant to the Lease (as hereinafter defined), and, in connection with the foregoing, Tenant does
hereby certify to Seller and Purchaser and to the successors and assigns of each as follows: 
 Tenant is the tenant under that certain lease
dated [                    ] between Tenant and Fifty Seventh Street Operating LLC (together with its successors and assigns, “Landlord”),
as landlord, as amended by the following amendments: [                    ] (the “Lease”). The Lease is in full force and effect; there are
no amendments or modifications of any kind to the Lease except as referenced above; there are no other promises, agreements, understandings, side letters, arrangements or commitments, whether written or oral, between Landlord and Tenant relating to
the premises leases under the Lease (the “Leased Premises”); and Tenant has not given Landlord any notice of termination under the Lease. 
 Tenant has not given any notice that remains outstanding of any uncured default, event of default, or breach by Landlord under the Lease, and Tenant has no knowledge of any conditions currently existing or which with the passage of time,
giving of notice or both would be deemed a default of Landlord or which would give Tenant the right to cancel or terminate the Lease. 
 Tenant is obligated to pay rent to Landlord at the rate set forth in the Lease. Tenant is current with respect to, and is paying the full rent and other charges stipulated in the Lease (including, without limitation, common area maintenance
charges) with no offsets, deductions, defenses or claims to the enforcement of the Lease; Tenant has not advanced any funds for or on behalf of Landlord for which Tenant has a right to deduct from or offset against future rent payments; and Tenant
has not prepaid, nor will prepay, any rent or other amounts to Landlord more than one (1) month in advance. 
 The monthly base rent
under the Lease is $[                    ] and has been paid by Tenant through
[                    ]. 
 The
undersigned representative of Tenant is duly authorized and fully qualified to execute this instrument on behalf of Tenant. 

 Tenant acknowledges and agrees that Seller and Purchaser and the successors and assigns of each shall be
entitled to rely on Tenant’s certifications set forth herein. 
 [NO FURTHER TEXT ON THIS PAGE] 

 IN WITNESS WHEREOF, Tenant has executed this instrument this      day of
                    , 2007. 
 TENANT: 
  

			
	[                                       
 ],
	a
[                                       
 ]
		
	By:	 	  

	Name:	 	
	Title:	 	

 Exhibit “X” 
 Bookings 
 [SEE ATTACHED] 

 Exhibit “Y” 
 Benefit Plans and Programs and Employee Information 
 Description of Material Employee Benefit Plans and Programs

 Oxford Group No. PM2240, Billing Group No. BG08 
 Guardian
for Dental and Vision Group # 423539 
 New York Hotel Trades Council and Hotel Association of New York City, Inc., Health Benefits Fund 
 New York Hotel Trades Council and Hotel Association of New York City, Inc., 401(k) Savings Plan and Trust 
 New York Hotel Trades Council and Hotel Association of New York City, Inc., Pension Fund 
 New York Hotel Trades Council and
Hotel Association of New York City, Inc., Industry Training and Scholarship Fund 
 New York Hotel Trades Council and Hotel Association of New York City,
Inc., Pre-Paid Legal Services Fund 
 Employment Agreement between Peter Jaques and Fifty Seventh Street Operating LLC, dated as of August 2006, as assigned
to Citylife Hotel 57 Management LLC by that certain Assignment and Assumption Agreement, dated as of November 22, 2006, by and between Fifty Seventh Street Operating LLC, and Citylife Hotel 57 Management LLC 

 Exhibit “Z” 
 ERISA Affiliates 
 Thirty East 30th Street Owner, LLC 
 Thirty East 30th Street Mezz, LLC 
 57th Street Mezz, LLC 
 57th Street Operating, LLC 
 RP PMG Manhattan Hotels, LLCEXHIBIT 10.23

 Exhibit 10.23 
 HARRISONBURG, VA (CY) 
 MANAGEMENT AGREEMENT 
 by and between 
 NEWPORT HARRISONBURG MANAGEMENT, LLC 
 as “MANAGER” 
 and 
 APPLE EIGHT HOSPITALITY MANAGEMENT, INC. 
 as “OWNER” 
 Dated as of November 16, 2007 

 Table of Contents 
  

					
	 	 	 	  	Page
	ARTICLE I	 	 APPOINTMENT OF MANAGER
	  	1
	 1.01.
	 	Appointment	  	1
	 1.02.
	 	Management of the Hotel	  	1
	 1.03.
	 	Employees	  	3
	 1.04.
	 	Owner’s Right to Inspect	  	4
	 1.05.
	 	Regular Meetings	  	4
	 1.06.
	 	System Standards	  	4
	 1.07.
	 	Limitations on Manager’s Authority	  	4
	 1.08.
	 	Representations and Warranties of Manager	  	5
	ARTICLE II	 	 TERM
	  	6
	 2.01.
	 	Term	  	6
	 2.02.
	 	Performance Termination	  	7
	ARTICLE III	 	 COMPENSATION OF MANAGER
	  	7
	 3.01.
	 	Management Fees	  	7
	 3.02.
	 	Operating Profit	  	8
	 3.03.
	 	Reimbursables	  	8
	 3.04.
	 	Termination Fee	  	8
	ARTICLE IV	 	 ACCOUNTING, BOOKKEEPING AND BANK ACCOUNTS
	  	8
	 4.01.
	 	Accounting, Distributions and Annual Reconciliation	  	8
	 4.02.
	 	Books and Records	  	9
	 4.03.
	 	Accounts, Expenditures	  	10
	 4.04.
	 	Annual Operating Projection	  	11
	 4.05.
	 	Working Capital	  	11
	 4.06.
	 	Fixed Asset Supplies	  	12
	 4.07.
	 	Real Estate and Personal Property Taxes	  	12
	 4.08.
	 	Sarbanes-Oxley Certification	  	13
	ARTICLE V	 	 REPAIRS, MAINTENANCE AND REPLACEMENTS
	  	14
	 5.01.
	 	Repairs and Maintenance to be Paid from Gross Revenues	  	14
	 5.02.
	 	Repairs, Maintenance and Equipment Replacements to be Paid from Reserve	  	14

  

 i 

					
	ARTICLE VI	 	 INSURANCE
	  	15
	 6.01.
	 	Property Insurance	  	15
	 6.02.
	 	Operational Insurance	  	16
	 6.03.
	 	Coverage	  	17
	 6.04.
	 	Costs and Expenses	  	17
	 6.05.
	 	Owner’s Right to Provide Insurance	  	17
	ARTICLE VII	 	 DAMAGE AND REPAIR
	  	17
	 7.01.
	 	Damage and Repair	  	17
	 7.02.
	 	Condemnation	  	18
	 7.03.
	 	Business Interruption	  	18
	 7.04.
	 	Subordination to Mortgage	  	18
	 7.05.
	 	Liens; Credit	  	19
	ARTICLE VIII	 	 DEFAULTS
	  	19
	 8.01.
	 	Events of Default	  	19
	 8.02.
	 	Remedies	  	20
	 8.03.
	 	Additional Remedies	  	21
	ARTICLE IX	 	ASSIGNMENT AND SALE	  	21
	 9.01.
	 	Assignment	  	21
	 9.02.
	 	Sale of the Hotel	  	22
	ARTICLE X	 	 MISCELLANEOUS
	  	22
	 10.01.
	 	Right to Make Agreement	  	22
	 10.02.
	 	Consents and Cooperation	  	22
	 10.03.
	 	Relationship	  	22
	 10.04.
	 	Applicable Law; Jurisdiction	  	23
	 10.05.
	 	Recordation	  	23
	 10.06.
	 	Headings	  	23
	 10.07.
	 	Notices	  	23
	 10.08.
	 	Environmental Matters	  	24
	 10.09.
	 	Confidentiality; Projections	  	25
	 10.10.
	 	Indemnification	  	26
	 10.11.
	 	Actions to be Taken Upon Termination	  	26
	 10.12.
	 	Waiver	  	28
	 10.13.
	 	Partial Invalidity	  	28

  

 ii 

					
	 10.14.
	  	Survival	  	29
	 10.15.
	  	Negotiation of Agreement	  	29
	 10.16.
	  	Estoppel Certificates	  	29
	 10.17.
	  	Affiliates	  	29
	 10.18.
	  	Blocked Persons or Entities.	  	30
	 10.19.
	  	Restrictions on Operating the Hotel in Accordance with System Standards	  	30
	 10.20.
	  	Counterparts	  	30
	 10.21.
	  	Entire Agreement	  	30
	 10.22.
	  	Franchise Agreement	  	31
	 10.23.
	  	Operation of Other Hotels	  	31
	 10.24.
	  	Waiver of Jury Trial and Punitive Damages	  	31
	 10.25.
	  	Termination of the Hotel Lease	  	31
	 10.26.
	  	All Payments Subject to the Availability of Funds	  	31
	ARTICLE XI	  	 DEFINITION OF TERMS
	  	32
	 11.01.
	  	Definition of Terms	  	32
	ARTICLE XII	  	 SUPPLEMENTAL PROVISIONS
	  	40

  

					
	Schedule 1	 	-	  	 Hotel Specific Data

	Schedule 2	 	-	  	 Supplemental Provisions

	Exhibit A	 	-	  	 Legal Description of Site

  

 iii 

 MANAGEMENT AGREEMENT 
 THIS MANAGEMENT AGREEMENT (“Agreement”) is executed as of the 16th day of November, 2007 (“Effective Date”), by APPLE EIGHT HOSPITALITY MANAGEMENT, INC., a Virginia corporation
(“Owner”), with a mailing address at c/o Apple REIT Companies, 814 E. Main Street, Richmond, Virginia 23219, Attention: Krissy Gathright, and NEWPORT HARRISONBURG MANAGEMENT, LLC, a Virginia limited liability company
(“Manager”), with a mailing address at c/o 4290 New Town Avenue, Williamsburg, Virginia 23188. 
 A. The party
identified as the “Landlord” in Schedule 1 attached hereto (“Landlord”) is the owner of the hotel identified in Schedule 1, as more particularly described in the definition of
“Hotel” in Section 11.01 hereof. 
 B. Landlord and Owner have entered into that certain Hotel Lease Agreement
dated as of the Effective Date (the “Hotel Lease”) pursuant to which Landlord leases the Hotel to Owner. 
 C. All
capitalized terms used in this Agreement shall have the meaning set forth in Section 11.01 hereof. 
 D. Owner desires to engage Manager
to manage and operate the Hotel, and Manager desires to accept such engagement, upon the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner and Manager agree as follows: 
 ARTICLE I 
 APPOINTMENT OF MANAGER

 1.01. Appointment. 
 Owner hereby appoints and employs Manager as Owner’s exclusive independent contractor to supervise, direct and control the management and operation of the Hotel throughout the Term. Manager accepts said appointment and agrees to manage
the Hotel during the Term in accordance with the terms and conditions of this Agreement. 
 1.02. Management of the Hotel. 

A. Manager shall manage the Hotel, including, without limitation, performance of the following functions, in accordance with Prudent Industry
Practices, the provisions of this Agreement and all standards imposed by the Franchise Agreement (provided that in all cases, except as otherwise specifically set forth in this Agreement, the costs and expenses of performing such functions shall be
Deductions): 
 1. Recruit, employ, relocate, manage, supervise, direct and discharge all employees at the Hotel and maintain adequate staff,
consistent with Prudent Industry Practices and the Annual Operating Projection, to carry out its duties under this Agreement. 
  

 1 

 2. Establish prices, rates and charges for services provided in the Hotel, including Guest Room rates,
subject to Owner’s prior approval or as set forth in the Annual Operating Projection . 
 3. Establish and revise, as necessary,
administrative policies and procedures, including employment policies and procedures and policies and procedures for the control of revenue and expenditures, for the purchasing of supplies and services, for the control of credit and for the
scheduling of maintenance, and verify that the foregoing procedures are operating in a sound manner. 
 4. Make payments on accounts payable
and collect accounts receivable. 
 5. Procure (for Owner) all Inventories and replace Fixed Asset Supplies and otherwise incur customary and
reasonable expenses in the operation of the Hotel, subject to the approved Annual Operating Projection. 
 6. Prepare and deliver Annual
Operating Projections, Accounting Period Statements, Annual Operating Statements, and such other information as is required by this Agreement. 
 7. Plan, execute and supervise repairs and maintenance at the Hotel. 
 8. Obtain the insurance required to be obtained by Manager
pursuant to Article VI of this Agreement , subject to the provisions of Section 6.05. 
 9. Obtain and keep in full force and effect,
either in its own name or in Owner’s or Owner’s affiliate’s name, as may be required by applicable law, any and all licenses (including, without limitation, liquor licenses which shall be maintained in the name of Manager to the
extent permitted by law) and permits to the extent same is within the control of Manager (or, if same is not within the control of Manager, Manager shall use reasonable diligence and efforts to obtain and keep same in full force and effect).

 10. Execute subordination agreements, estoppel certificates and other documentation required by any purchaser or mortgagee and reasonably
cooperate (provided that Manager shall not be obligated to enter into any amendments of this Agreement) with Owner or Landlord in any attempt(s) by Owner or Landlord to effectuate a Sale of the Hotel or to obtain a Mortgage. 
 11. At the direction and with the concurrence of Owner, arrange for and supervise public relations and advertising and prepare marketing plans.

 12. Negotiate and enter into, on behalf of Owner, service contracts and other third party agreements required in the ordinary course of
operating the Hotel, provided that each such contract or agreement that requires expenditures in excess of $5,000 or is not terminable without penalty or fee must first be approved in advance by Owner. 
  

 2 

 13. Manage and operate the Hotel at all times in compliance with the Franchise Agreement, including
(without limitation) the Manual and the System Standards (as such terms are defined in the Franchise Agreement). 
 B. The operation of the
Hotel shall be under the exclusive supervision and control of Manager, except as otherwise specifically provided in this Agreement, and Manager shall be responsible for the proper and efficient operation of the Hotel. In fulfilling its obligations
under this Agreement, Manager will act as a reasonable, prudent operator of the Hotel, having regard for the status of the Hotel, operating the Hotel in accordance with Prudent Industry Practices and at all times maintaining and complying with all
standards imposed by the Franchise Agreement, and subject to the foregoing and all other terms and conditions of this Agreement, shall have discretion in the following: charges, terms and conditions for Guest Rooms and commercial space; credit
policies and services provided by the Hotel; food and beverage services; employment policies; granting of leases, subleases, licenses and concessions for shops and businesses within the Hotel, provided that the term of any such lease, sublease,
license or concession shall not exceed the lesser of one (1) year or the Term without the prior written approval of Owner; receipt, holding and disbursement of funds; maintenance of bank accounts; procurement of Inventories, supplies and
services; promotion and publicity; payment of costs and expenses as are specifically provided for in this Agreement or are otherwise reasonably necessary for the proper and efficient operation of the Hotel; and, generally, all activities necessary
for operation of the Hotel. With respect to all Material Management Decisions, Manager shall consult with Owner in advance of making any such decisions. The term “Material Management Decisions” means a decision to be made in
connection with any expenditure of more than $10,000 for each item or $50,000 in the aggregate for all such items in any Fiscal Year if such expenditure is not included in the approved Annual Operating Projection for such Fiscal Year or if such
expenditure would result in an increase in the overall Annual Operating Projection. 
 C. Manager shall comply with and abide by all
applicable Legal Requirements pertaining to its operation of the Hotel. Landlord or Owner shall have the right, but not the obligation, in its reasonable discretion, to contest or oppose, by appropriate proceedings, any such Legal Requirements. The
reasonable expenses of any such contest of a Legal Requirement shall be paid from Gross Revenues as Deductions. Owner or Landlord, as applicable, shall indemnify and hold Manager harmless from any loss, claim, fees or expenses (including reasonable
attorneys’ fees) arising from the noncompliance with any Legal Requirement that Owner or Landlord chooses to contest or as to which Owner does not fund the cost of compliance. 
 1.03. Employees 
 All personnel
employed at the Hotel shall at all times be the employees of Manager and not the employees of Owner. Manager shall have reasonable discretion with respect to all personnel employed at the Hotel, including, without limitation, decisions regarding
hiring, promoting, transferring, compensating, supervising, terminating, directing and training all 

  

 3 

 
employees at the Hotel, and, generally, establishing and maintaining all policies relating to employment; provided, however, that (i) Owner shall have
the right to approve the hiring or termination of the persons who occupy the position of General Manager for the Hotel and (ii) Manager shall not negotiate or enter into any collective bargaining or other labor agreement with employees or with
any organization representing or claiming to represent employees without Owner’s prior consent. No person shall be given gratuitous accommodations or services without prior joint approval of Owner and Manager except in accordance with policies
agreed upon by Owner and Manager. Owner shall not pay for the relocation costs of any employees except for the cost of relocating the General Manager; provided, however, that (i) the relocation costs for the General Manager shall be subject to
Owner’s prior approval, which approval shall not be unreasonably withheld or delayed, and (ii) Manager shall reimburse Owner for the costs (including relocation costs) of hiring and training General Managers who are employed at the Hotel
for less than one (1) year and are transferred or relocated except to a hotel owned by Owner or an Affiliate of Owner. As is consistent with Prudent Industry Practices, Manager shall be responsible and liable for all acts or omissions of the
personnel employed at the Hotel and all persons managing such employees. 
 1.04. Owner’s Right to Inspect. 
 Owner, its representatives, employees, agents, Affiliates and Mortgagees shall have access to the Hotel at any and all reasonable times for the purpose of
inspection, exercising any of its rights under this Agreement or showing the Hotel to prospective purchasers, tenants or Mortgagees and at any time in case of an emergency. 
 1.05. Regular Meetings. 
 At
Owner’s request, Owner and Manager shall have meetings at the Hotel and at mutually convenient times. Manager shall be represented at such meetings by the General Manager of the Hotel and such other personnel as the Manager and/or Owner may
deem appropriate. The purpose of the meetings shall be, inter alia, to discuss the performance of the Hotel and other related issues, including any variations from the Annual Operating Projection for the preceding quarter. 

1.06. System Standards 
 Subject to
the availability of adequate funds, Manager shall take such actions consistent with this Agreement as are necessary for the Hotel to comply with the System Standards, and Manager shall operate the Hotel so that the Hotel will at all times comply
with System Standards. 
 1.07. Limitations on Manager’s Authority 
 Manager shall not, without Owner’s prior written approval, enter into any FF&E Lease if (i) the fair market value of the FF&E subject to
such FF&E Lease at the time of entering into such FF&E Lease exceeds Ten Thousand Dollars ($10,000); (ii) the fair market value of the FF&E subject to all FF&E Leases at the time of entering into such FF&E Lease exceeds
Twenty-five Thousand Dollars ($25,000) in the aggregate; (iii) the FF&E subject to such FF&E Lease is FF&E that is not, consistent with Prudent Industry Practices, customarily leased; (iv) such FF&E 

  

 4 

 
Lease is with an Affiliate of Manager or is on payment terms (including the amounts and schedule of payments) that would be materially more favorable to the
lessor thereof than payment terms customary under Prudent Industry Practices for leases of similar FF&E; or (v) such FF&E Lease is not terminable by Owner upon thirty (30) days’ notice. 
 1.08. Representations and Warranties of Manager. Manager hereby represents and warrants to Owner as follows: 
 A. Authority; No Conflicts. Manager is a limited liability company duly formed, validly existing and in good standing in the state identified in
Schedule 1. Manager has obtained all necessary consents to enter into and perform this Agreement and is fully authorized to enter into and perform its obligations under this Agreement. No consent or approval of any person, entity or
governmental authority is required for the execution, delivery or performance by Manager of this Agreement, and this Agreement is hereby binding and enforceable against Manager. Neither the execution nor the performance of, or compliance with, this
Agreement by Manager 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 of Manager 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 Manager or, to the best of Manager’s knowledge, to the Hotel. 
 B. Bankruptcy.
Neither Manager nor any of its Affiliates, is insolvent or the subject of any bankruptcy proceeding, receivership proceeding or other insolvency, dissolution, reorganization or similar proceeding. 
 ARTICLE II 
 TERM 
 2.01. Term. 
 The
“Term” of this Agreement shall begin on the Effective Date and shall continue until the expiration date identified in Schedule 1. The Term will be automatically renewed for up to two (2) one-year periods unless
either party provides notice not less than one hundred twenty (120) days prior to the expiration of the Term or the initial renewal Term, as the case may be, in which case this Agreement shall terminate as of the last day of the Term or the
initial renewal term, as applicable. Notwithstanding the foregoing, Manager or Owner shall have the option to terminate this Agreement at any time from and after the date that is one hundred eighty (180) days prior to the expiration of the
initial Term, with or without cause, by giving the other party not less than one hundred eighty (180) days prior written notice of its election to terminate. 
 2.02. Performance Termination. 
 A. Owner shall have the option to terminate this Agreement following
any Performance Termination Period with respect to which the following occurs: 
 1. The Operating Profit for the Performance Termination
Period is less than the Performance Termination Threshold; or 
  

 5 

 2. The Revenue Index of the Hotel during the Performance Termination Period is less than the Revenue
Index Threshold for such Performance Termination Period. 
 Owner shall exercise such
option to terminate by serving written notice thereof on Manager no later than sixty (60) days after Owner’s receipt of the last Accounting Period Statement for Performance Termination Period, and this Agreement shall terminate as of the
end of the second (2nd) full Accounting Period following the date on which Manager receives the above-described notice from Owner. Notwithstanding
anything contained herein to the contrary, Manager at its option may elect to void such Termination by so notifying Owner within such sixty (60) day period; provided, however, that the amount that was necessary to have achieved the Performance
Termination Threshold or Revenue Index Threshold, as applicable (the “Deficit Amount”) shall be made up to Owner by either (i) Manager’s paying the Deficit Amount to Owner within ten (10) days after such 60-day period
(the “Cure Payment”) or (ii) offsetting the Deficit Amount against the Base Management Fees, the Incentive Management Fees and/or other amounts or reimbursements payable to Manager under this Agreement, as Owner may
direct. 
 B. Owner’s failure to exercise its right to terminate this Agreement pursuant to this Section 2.02 shall not be
deemed an estoppel or waiver of Owner’s right to terminate this Agreement with respect to any subsequent event or circumstance that could give Owner the right to terminate hereunder. 
 ARTICLE III 
 COMPENSATION OF MANAGER 
 3.01. Management Fees. 
 In
consideration of services to be performed during the Term, Manager shall be paid the sum of the following as its management fees: 
 A. the
Base Management Fee, which shall be retained by Manager from Gross Revenues except as otherwise provided in this Agreement; plus 
 B. the
Incentive Management Fee but only to the extent of available Operating Profit after payment of Owner’s Priority as provided in Section 3.02 below. 
 3.02. Operating Profit. 
 A. Operating Profit, to the extent available, shall be distributed to Owner
and to Manager in the following order of priority, except as otherwise provided in this Agreement: 
 1. An amount up to the maximum amount of
Owner’s Priority shall be paid to Owner; 
 2. The Incentive Management Fee shall be paid to Manager; and 
  

 6 

 3. Any remaining balance of Operating Profit shall be paid to Owner. 
 Owner’s Priority shall not be cumulative from one Fiscal Year to the next, and to the extent the maximum amount of Owner’s Priority is unpaid
in any Fiscal Year, such unpaid amount shall not accrue and shall not be payable in any subsequent Fiscal Year. Notwithstanding anything in this Agreement to the contrary, Manager acknowledges and agrees that Incentive Management Fees are only
payable (i) annually within thirty (30) days after Owner’s receipt and acceptance of the Annual Operating Statement, (ii) to the extent of available Operating Profit after payment in full of Owner’s Priority and
(iii) in no event shall Incentive Management Fees accrue or be deemed to accrue. 
 B. To the extent of available Operating Profit with
respect to each Accounting Period, Manager shall distribute a prorated portion of the Owner’s Priority to Owner for each such Accounting Period in accordance with Section 4.01. Any Incentive Management Fee payable to Manager will be
payable within thirty (30) days after Owner’s receipt and acceptance of the Annual Operating Statement. 
 3.03
Reimbursables. 
 Although Manager shall not be required to advance its own funds for any purpose under this Agreement, Manager shall,
nonetheless, be reimbursed from Gross Revenues or by Owner for all reasonable amounts advanced by Manager, its employees, or agents, including, but not limited to, costs paid to third parties for property specific data processing, third party
payroll processing, costs incurred in complying with the requirements of Section 4.08 hereof, travel and out-of-pocket expenses, such as postage, facsimile, express courier, and long distance telephone expenses incurred in the performance of
Manager’s duties and obligations hereunder. Such expenses shall be set forth in the Annual Operating Projection. The provisions of this Section 3.03 shall survive Termination. 
 3.04. Termination Fee. 
 A. If this
Agreement is terminated by Owner for any reason prior to the expiration of the Term (including, but not limited to, a termination by Owner incident to a Sale of the Hotel as provided in Section 9.02 below), other than (i) a performance
termination as provided for in Section 2.02 above or (ii) in the case of an Event of Default by Manager or (iii) a termination due to an Operating Loss or (iv) termination as provided in Section 4.08 or (v) a
termination permitted under Article VII, Owner agrees to pay Manager a “Termination Fee,” as liquidated damages, and not as a penalty, equal to the sum obtained by multiplying: (1) one-twelfth (1/12) of the annual Base Management
Fee in the amount called for in the current Annual Operating Projection (but in no event less than the Base Management Fee for the preceding full Fiscal Year) times (2) the number of months remaining in the Term. Nothing in this paragraph is
intended to imply that Owner has any right to terminate this Agreement except as is expressly set forth elsewhere herein. 
 B. The parties
recognize that if this Agreement is terminated under circumstances that would entitle Manager to a Termination Fee in accordance with (A) above, Manager would suffer an economic loss by virtue of the loss of management fees that would otherwise
have been 

  

 7 

 
earned under this Agreement. Because such fees vary in amount depending upon the Gross Revenues of the Hotel and, accordingly, would be extremely difficult
and/or impractical to ascertain with certainty, the parties agree that the Termination Fee constitutes a reasonable estimate of such economic loss and is appropriately delineated as liquidated damages and not as a penalty. 
 C. Notwithstanding the foregoing, if in the event of a termination for which a Termination Fee would otherwise be due, Owner may, in its sole and
absolute discretion, avoid payment of such Termination Fee by, within sixty (60) days of such termination, by naming Manager as manager for another hotel not already managed by Manager, provided that such substitute hotel is reasonably
comparable to the Hotel in size, number of rooms, quality of franchise, strength of geographic market, and gross revenue. If Manager is so appointed as manager of a substitute hotel, such management shall be pursuant to the terms and conditions of
this Agreement. 
 D. The provisions of this Section 3.04 shall survive Termination. 
 ARTICLE IV 
 ACCOUNTING, BOOKKEEPING
AND BANK ACCOUNTS 
 4.01. Accounting, Distributions and Annual Reconciliation. 
 A. Within fifteen (15) days after the close of each Accounting Period, Manager shall deliver an interim accounting (the “Accounting Period
Statement”) to Owner, prepared in accordance with the Uniform System of Accounts, showing Gross Revenues, Deductions, Operating Profit and applications and distributions thereof for the preceding Accounting Period and any other
information reasonably requested by Owner. Manager shall transfer to Owner, with each Accounting Period Statement, any interim amounts due Owner, subject to Working Capital needs mutually agreed upon by Owner and Manager, and shall retain any
interim amounts payable to Manager pursuant to the terms of this Agreement. 
 B. Calculations and payments of the Incentive Management Fee
and the Base Management Fee made with respect to each Accounting Period shall be accounted for cumulatively within a Fiscal Year, but shall not be cumulative from one Fiscal Year to the next. Within each SEC Filing Period, Manager shall deliver to
Owner (1) a statement (the “Annual Operating Statement”) in reasonable detail summarizing the operations of the Hotel for the immediately preceding Fiscal Year and a certificate of Manager’s chief accounting officer
(or comparable employee) certifying that, to the best of his or her knowledge, such Annual Operating Statement is true and correct and (2) a statement (the “Quarterly Operating Statement”) in reasonable detail
summarizing the operations of the Hotel for the immediately preceding calendar quarter and a certificate of Manager’s chief accounting officer (or comparable employee) certifying that, to the best of his or her knowledge, such Quarterly
Operating Statement is true and correct. The parties shall, within five (5) Business Days after Owner’s receipt of such Annual Operating Statement, make any adjustments, by cash payment, in the amounts paid or retained for such Fiscal Year
as are needed because of the final figures set forth in such Annual Operating Statement. Such Annual Operating Statement shall be controlling over the preceding Accounting Period Statements. 
  

 8 

 C. To the extent there is an Operating Loss for any Accounting Period, unless such loss was due to a
force majeure event, no Base Management Fee or Incentive Management Fee shall be paid to or retained from Gross Revenues by Manager. Any Base Management Fee that would have been payable to Manager had there been an Operating Profit for such
Accounting Period shall not accrue and shall not be payable to Manager. In no event shall Incentive Management Fees accrue, nor shall any Incentive Management Fee be payable to Manager in respect of any Accounting Period (i) as to which there
is an Operating Loss or (ii) as to which accrued Base Management Fees are payable to Manager. 
 To the extent there is an Operating
Loss for any Accounting Period, additional funds in the amount of any such Operating Loss (other than the amount of any Base Management Fee) shall be provided by Owner within thirty (30) days after Manager has delivered written notice thereof
to Owner. If Owner does not fund such Operating Loss within the thirty (30) day time period, Manager shall have the right (without affecting Manager’s other remedies under this Agreement) to withdraw an amount to cover such Operating Loss
from future distributions of funds otherwise due to Owner. In the event an Operating Loss occurs in respect of a Fiscal Year, either Owner or Manager may elect to terminate this Agreement. In no event shall Manager be obligated to invest its own
funds to cover any Operating Loss. 
 4.02. Books and Records. 
 Books of control and account pertaining to operations at the Hotel shall be kept on the accrual basis and in all material respects in accordance with
GAAP. Owner may at reasonable intervals and upon giving reasonable advance notice examine such records during Manager’s normal business hours. If Owner desires to audit, examine or review the Annual Operating Statement, Owner shall notify
Manager in writing within sixty (60) days after receipt of such Annual Operating Statement of its intention to audit and begin such audit no sooner than ten (10) days after Manager’s receipt of such notice. Owner shall use reasonable
efforts to complete such audit within one hundred twenty (120) days after commencement thereof. If Owner does not make such an audit, then such Annual Operating Statement shall be deemed to be conclusively accepted by Owner as being correct,
except in the event of manifest error or fraud, misrepresentation, misconduct or negligence by Manager or its agents, employees, representatives or contractors or other third parties. If any audit by an independent certified professional accountant
retained by Owner discloses an understatement of any amounts due Owner, Manager shall promptly pay Owner such amounts found to be due, plus interest thereon at the Prime Rate plus one percent (1%) per annum from the date such amounts should
originally have been paid. If any audit discloses that Manager has not received any amounts due it, Owner shall pay Manager such amounts. The cost of the audit shall be paid by Owner and be a Deduction; provided, however, Manager shall pay for such
cost if such audit discloses an underpayment to Owner for the Fiscal Year so audited of five percent (5%) or more of the amount that should have been paid to Owner for such Fiscal Year. In addition, if the Franchise Agreement requires Owner to
pay interest and/or the cost of an audit to the franchisor on account of an understatement in reports provided by Manager, Manager shall pay such interest and costs in accordance with the Franchise Agreement without (either directly or indirectly)
passing such charges on to Owner. 
  

 9 

 4.03. Accounts, Expenditures. 
 A. All funds derived from operation of the Hotel shall be deposited by Manager in Owner’s bank accounts (the “Operating
Accounts”) established by Manager in a bank or banks designated by Manager with the concurrence of Owner. Withdrawals by Manager from said Operating Accounts shall be made solely by the General Manager or the Assistant General Manager
of the Hotel, a senior officer of Manager or such other representatives of Manager whose signatures have been authorized by Manager with the concurrence of Owner. Reasonable petty cash funds shall be maintained at the Hotel. 
 B. Except as otherwise provided in this Agreement, all payments made by Manager hereunder shall be made from the Operating Accounts, petty cash funds, or
from the Reserve (in accordance with Section 5.02). Manager shall not be required to make any advance or payment with respect to the Hotel except out of such funds, and Manager shall not be obligated to incur any liability or obligation with
respect to the Hotel unless resulting from acts or omissions of Manager that are in violation of or inconsistent with this Agreement or from Manager’s negligence or misconduct (each, “Manager’s Liability” and,
collectively, “Manager’s Liabilities”). 
 C. Debts and liabilities (other than Manager’s Liabilities)
incurred by Manager as a result of its operation and management of the Hotel pursuant to the terms hereof, whether asserted before or after Termination, will be paid by Owner to the extent funds are not available for that purpose from Gross
Revenues, and Owner shall indemnify, defend and hold Manager harmless from and against all loss, costs, liability, and damage (including, without limitation, reasonable attorneys’ fees and expenses) arising from Owner’s failure to pay or
perform such debts and liabilities. Manager shall pay, indemnify, defend and hold Owner harmless from and against all Manager’s Liabilities and all loss, costs, liability and damage (including, without limitation, reasonable attorneys’
fees and expenses) arising from Manager’s failure to pay or perform Manager’s Liabilities. The provisions of this Section 4.03.C shall survive Termination. 
 4.04. Annual Operating Projection. 
 Manager shall deliver to Owner for its review, at least
forty-five (45) days prior to the beginning of each Fiscal Year after the first Fiscal Year following the Effective Date, a preliminary draft of the business plan (including a proposed budget) and a projection of the estimated Gross Revenues,
departmental profits, Deductions, and Operating Profit for the forthcoming Fiscal Year for the Hotel (the “Annual Operating Projection”) for approval by Owner. Manager will consider in good faith suggestions made by Owner
with respect to the Annual Operating Projection and make modifications thereto that are agreed upon by Owner and Manager. In the case of the Fiscal Year beginning on the Effective Date, Manager and Owner have already agreed upon the Annual Operating
Projection for such Fiscal Year. Upon approval of the Annual Operating Projection by Owner and Manager, Manager in good faith shall use best efforts to adhere to such Annual Operating Projection. In the event Owner and Manager are unable to agree
upon the Annual Operating Projection by the commencement of the Fiscal Year 

  

 10 

 
to which it relates, the Manager shall be entitled to operate the Hotel in accordance with this Agreement with the maximum approved amount of expenditures to
be equal to (i) the aggregate of all items in the proposed budget which are not disputed by Owner, plus (ii) the sum of the actual expenditures for the items in dispute in the previous Fiscal Year increased by the increase (if any) in the
CPI on January 1 of the year in question over the CPI on January 1 of the previous year. 
 4.05. Working Capital.

 Owner, as of the Effective Date, shall establish a level of Working Capital funds, which shall be held in the Operating Accounts, that is
reasonably believed to be reasonably sufficient for the operations of the Hotel, subject at all times to seasonal differences and changes in circumstances after the Effective Date. Manager may from time to time during the Term request that Owner
advance any additional funds necessary to maintain Working Capital at levels reasonably determined by Manager (with the concurrence of Owner) to be necessary to satisfy the needs of the Hotel. In the event Owner and Manager are unable to agree upon
the need for and/or amount of additional Working Capital within thirty (30) days after Owner’s receipt of such written notice from Manager, Manager may increase the amount based on the CPI formula in Paragraph 4.04 above. If Owner and
Manager agree upon the need for and amount of additional Working Capital and thereafter Owner does not so fund additional Working Capital within ten (10) Business Days after Owner’s receipt of a written request from Manager to fund such
additional Working Capital, Manager shall have the right to withdraw an amount equal to the funds requested by Manager for additional Working Capital from future distribution of funds otherwise due to Owner. All funds so advanced for Working Capital
shall be utilized by Manager for the purposes of this Agreement. Upon Termination, Manager shall immediately return the outstanding balance of the Working Capital to Owner. 
 4.06. Fixed Asset Supplies. 
 The
parties further recognize that, as of the Effective Date, the level of funds for Fixed Asset Supplies is reasonably believed to be reasonably sufficient for the operations of the Hotel, subject at all times to seasonal differences and changes in
circumstances after the Effective Date. Any additional funds which are necessary to maintain Fixed Asset Supplies at levels determined by Manager (with the concurrence of Owner) to be necessary to satisfy the needs of the Hotel, shall be paid from
Gross Revenues as Deductions. Fixed Asset Supplies shall remain the property of Owner throughout the term of this Agreement and upon Termination. 
 4.07. Real Estate and Personal Property Taxes. 
 A. Except as specifically set forth in Section 4.07.B below, all real
estate and personal property taxes, levies, assessments (including special assessments (regardless of when due or whether they are paid as a lump sum or in installments over time) imposed because of facilities that are constructed by or on behalf of
the assessing jurisdiction (for example, roads, sidewalks, sewers, culverts, etc.) which directly benefit the Hotel (regardless of whether or not they also benefit other buildings)), “Impact Fees” (regardless of when due or whether they
are paid as a lump sum or in installments over time) which are required of Owner as a condition to the issuance of zoning variances or building permits, and similar charges on or relating to the 

  

 11 

 
Hotel (collectively, “Impositions”) during the Term shall be paid by Manager from Gross Revenues, before any fine, penalty, or
interest is added thereto or lien placed upon the Hotel or upon this Agreement, unless payment thereof is in good faith being contested and enforcement thereof is stayed. Any such payments shall be Deductions in determining Operating Profit. Owner
shall, within five (5) days after receipt, furnish Manager with copies of official tax bills and assessments which it may receive with respect to the Hotel. Either Landlord or Owner may, and at Owner’s request Manager shall, initiate
proceedings to contest any negotiations or proceedings with respect to any Imposition, and all reasonable costs of any such contest shall be paid from Gross Revenues and shall be a Deduction in determining Operating Profit. Manager shall, as part of
its contest or negotiation of any Imposition, be entitled, on Owner’s behalf, to waive any applicable statute of limitations in order to avoid paying the Imposition during the pendency of any proceedings or negotiations with applicable
authorities. Notwithstanding anything contained herein to the contrary, at Owner’s option (i) Manager shall establish an escrow account in the name of Owner in a bank or banks designated by Manager with the concurrence of Owner and shall
deposit monthly into such account from Gross Revenues an amount that Manager reasonably estimates shall be sufficient to pay the Impositions, in which case Manager shall pay the Impositions from funds in the escrow account as and when the
Impositions become due (and Owner shall promptly deposit into the escrow account any deficiency if the estimated monthly payments are not sufficient to pay all of the Impositions) or (ii) the amounts that would otherwise be deposited into such
escrow account shall be included in the Operating Profit, not deducted from Gross Revenues and shall be distributed in cash to Owner along with the remainder of the Owner’s Priority. If Owner elects to retain such amounts pursuant to clause
(ii) above, Manager shall accrue such amounts as a reserve on the accounting records of the Hotel, and Owner shall fund the same as and when the Impositions become due, but such accrued and unfunded amounts shall be deducted from Gross Revenues
for purposes of calculating the Incentive Management Fee. In addition, if any Mortgagee requires the establishment of an escrow account with respect to the Impositions, Manager shall comply with such requirements. 
 B. The word “Impositions” as used in this Agreement shall not include any franchise, corporate, estate, inheritance, succession,
capital levy or transfer tax or other assessment or payment in lieu thereof imposed on Owner or Manager, or any income tax imposed on any income of Owner or Manager (including distributions to Owner or Manager pursuant to Article III hereof), all of
which shall be paid solely by Owner or Manager, as applicable, not from Gross Revenues nor from the Reserve. 
 4.08. Sarbanes-Oxley
Certification. 
 A. Owner may, in connection with its or any of its Affiliate’s annual or quarterly Securities and Exchange
Commission reporting requirements (and in any event no more than four (4) times in any Fiscal Year), request that Manager deliver to Owner or its Affiliate a certificate from an accounting officer (or equivalent employee) of Manager, in a form
approved by Manager’s accounting firm, certifying that, to his or her knowledge, the information contained in the Accounting Period Statements for the Accounting Periods contained within the applicable Fiscal Year or quarter are true and
correct in all material respects, subject to final adjustment based on the annual review conducted by Manager in preparing the Annual Operating Statement. Owner shall submit such request in writing, along with the date by which such 

  

 12 

 
certificate is to be delivered, not less than five (5) business days prior to the requested delivery date, and Manager shall deliver the certificate by
the requested date or, if later, within five (5) business days after Manager’s receipt of Owner’s request. 
 B. In connection
with Owner’s or its Affiliates’ certifications under Section 404 (“Section 404”) of the Sarbanes-Oxley Act of 2002, Owner or such Affiliate shall have the right, at its option: 
 1. Either (i) to require Manager to document its processes and related internal controls for Owner or such Affiliate to use in its required
documentation under Section 404 or (ii) to have access to Manager’s books and records relating to the Hotel (including, without limitation, reasonable access to Manager’s premises) to document Manager’s processes and related
internal controls; and 
 2. Either (i) to require testing by Manager of the controls identified in clause 1 above or (ii) to have
access to Manager’s books and records relating to the Hotel (including, without limitation, reasonable access to Manager’s premises) to permit Owner or such Affiliate to test the controls identified in clause 1 above. 
 Manager shall provide Owner’s or such Affiliates’ independent auditors access to Manager’s books and records relating to the Hotel
(including, without limitation, access to Manager’s premises) to conduct their audit of the testing performed pursuant to this Section 4.08. If Owner or such Affiliate determine such controls have weaknesses which should be mentioned in
Owner’s or such Affiliates’ report on internal controls under Section 404 or other certifications under the Sarbanes-Oxley Act of 2002, Manager shall use reasonable best efforts to remedy and/or correct identified weaknesses within
thirty (30) days after notice; provided, however, that in the event that Manager does not so remedy and/or correct such weaknesses within the applicable thirty (30) day cure period, Owner shall be entitled to terminate this Agreement upon
thirty (30) days prior notice to Manager. Manager shall be responsible for any costs of Owner or its auditors associated with correcting or retesting any such weaknesses. 
 ARTICLE V 
 REPAIRS, MAINTENANCE AND REPLACEMENTS 
 5.01. Repairs and Maintenance to be Paid from Gross Revenues. 
 Subject to the availability of adequate funds, Manager shall maintain the Hotel in good repair and condition, comply with and abide by all applicable Legal Requirements pertaining to its operation of the Hotel and
shall make or cause to be made such routine maintenance, repairs and minor alterations as it determines are necessary for such purposes and as required pursuant to the terms of the Franchise Agreement or by Owner. The phrase “routine
maintenance, repairs, and minor alterations” as used in this Section 5.01 shall include only those which are normally expensed under generally accepted accounting principles. The cost of such maintenance, repairs and alterations
shall be paid from Gross Revenues (and not from the Reserve) and shall be treated as a Deduction. 
  

 13 

 5.02. Repairs, Maintenance and Equipment Replacements to be Paid from Reserve. 
 A. At Owner’s option and request, a reserve account in the name of Owner (the “Reserve”) shall be established by Manager, in
a bank or similar institution reasonably acceptable to both Manager and Owner, to cover the cost of: 
 1. Replacements, renewals and
additions to the FF&E at the Hotel; and 
 2. Capital Expenditures. 
 B. During the Term, Manager shall transfer into the Reserve the amount(s) specified in Schedule 1. Transfers into the Reserve shall be made at the
time of each interim accounting described in Section 4.01 hereof. All amounts transferred to the Reserve shall be deducted from Gross Revenues in determining Operating Profit and shall be deposited in the special Reserve account described in
Section 5.02.A. 
 C. Subject to the availability of adequate funds, Manager at Owner’s expense shall from time to time make such
(1) replacements and renewals to the FF&E of the Hotel, and (2) Routine Capital Expenditures, as may be agreed upon by Owner and Manager and as may be required by the Franchise Agreement. At the end of each Fiscal Year, any amounts
remaining in the Reserve shall be carried forward to the next Fiscal Year. The Reserve will be kept in an interest-bearing account, and any interest which accrues thereon shall be retained in the Reserve. Interest which accrues on amounts held in
the Reserve, shall not (a) result in any reduction in the required contributions to the Reserve set forth in Section 5.02.B above, nor (b) be included in Gross Revenues. 
 D. All repairs, alterations, improvements, renewals or replacements made pursuant to this Article V, and all amounts kept in the Reserve, shall be the
property of Owner, subject to Manager’s rights to apply such funds as otherwise provided in this Agreement. In addition and notwithstanding anything contained herein to the contrary, no funds shall be expended for replacements, renewals and
additions to the FF&E, for Routine Capital Expenditures or for any other capital expenditures unless each such expenditure is included in the Annual Operating Projection approved by Owner. In the event that Owner requests that Manager perform
capital improvements that are not included in the Annual Operating Projection, Manager will perform such improvements provided that Owner and Manager have theretofore agreed upon a mutually satisfactory funding mechanism to pay for the cost of such
improvements. Notwithstanding the foregoing, in case of threatened damage or destruction to the Hotel or persons or property thereon due to force majeure or other comparable emergency, Manager may at Owner’s expense make such
repairs, replacements or improvements to the Hotel as Manager reasonably deems necessary to avoid and/or minimize any such injury, damage or destruction. 
 E. Notwithstanding anything contained herein to the contrary, at Owner’s option the amounts that would otherwise be deposited into the Reserve pursuant to this Section 5.02 shall be included in the Operating
Profit, not deducted from Gross Revenues and shall be distributed in cash to Owner along with the remainder of the Owner’s Priority. In such case, Manager shall accrue such amounts as a reserve on the accounting records of the Hotel, and Owner
shall fund the same only when required under this Agreement to cover the appropriate costs actually incurred. However, such accrued and unfunded reserves shall be deducted from Gross Revenues for purposes of calculating the Incentive Management Fee.

  

 14 

 F. Unless otherwise expressly covered by this Article V (including without limitation in case of
emergency as provided in Section 5.02.D.), Manager shall not make any capital expenditure or improvement without first obtaining Owner’s prior written consent and approval. 
 ARTICLE VI 
 INSURANCE 
 6.01. Property Insurance. 
 A. Subject
to Owner’s prior approval, which shall not be unreasonably withheld or delayed, and the provisions of Section 6.05, Manager shall, commencing with the Effective Date and for the duration of the Term, procure and maintain, using funds
deducted from Gross Revenues in determining Operating Profit, the following insurance and/or such other insurance as may be required by the Franchise Agreement or approved or required by Owner: 
 1. Insurance on the Hotel (including contents) against loss or damage by all perils included in “all risk” (as such term is commonly used in the
insurance industry) coverage, in an amount not less than one hundred percent (100%) of the replacement cost thereof, except that if such 100% replacement cost coverage is not available on reasonable rates and terms, then such insurance shall be
in an amount not less than ninety percent (90%) of the replacement cost thereof (less excavation and foundation costs), of the Hotel; 
 2. Insurance against loss or damage from explosion of boilers, pressure vessels, pressure pipes and sprinklers, to the extent applicable, installed in the Hotel; 
 3. Business interruption insurance covering loss of profits and necessary continuing expenses for interruptions caused by any occurrence covered by the insurance referred to in Section 6.0l.A.1 and 2, for a
period of not less than one (1) year after the occurrence, of a type and in amounts and with such deductible limits as are agreed upon by Owner and Manager. 
 4. If the Hotel is in an earthquake-prone area, earthquake insurance as is customary in accordance with local practice. 
 B. All policies of insurance required under Section 6.01.A. 1, 2, 3, and 4 shall insure Owner, Landlord, Manager, and any Mortgagee as named insureds, and any losses thereunder shall be payable to the parties as
and to the extent their respective interests, if any, may appear. 
 6.02. Operational Insurance. 
 Subject to Owner’s prior approval, which shall not be unreasonably withheld or delayed, and the provisions of Section 6.05, Manager shall,
commencing with the Effective Date and for the duration of the Term, procure and maintain, using funds deducted from Gross Revenues in 

  

 15 

 
determining Operating Profit, with insurance companies approved by Owner the following insurance and/or such other insurance as may be required by the
Franchise Agreement or approved or required by Owner: 
 A. Workers compensation insurance as may be required under applicable laws covering
all of the employees at the Hotel, with such deductible limits or self-insured retentions as are agreed upon by Owner and Manager; 
 B.
Fidelity bonds or crime insurance with respect to Hotel employees and other employees of Manager handling funds of the Hotel, in an amount approved by Owner; 
 C. Comprehensive general public liability insurance against claims for all injury, death or property damage occurring on, in, or about the Hotel, and automobile insurance on vehicles owned or leased by owner and
operated in conjunction with the Hotel, with a combined single limit of not less than Twenty Million Dollars ($20,000,000) for each occurrence for personal injury, death and property damage, with such deductible limits as are agreed upon by Owner
and Manager; 
 D. Employment practices liability insurance covering employment-related claims and the legal defense of such claims in
amounts as Manager in its reasonable judgment deems advisable (with the concurrence of Owner, which shall not be unreasonably withheld or delayed); 
 E. Such other insurance, including excess/umbrella coverage, in amounts as Manager in its reasonable judgment deems advisable (with the concurrence of Owner, which shall not be unreasonable withheld or delayed) for protection against
claims, liabilities and losses arising out of or connected with the operation of the Hotel or as reasonably required by a Mortgagee. 
 Owner, Manager and Landlord shall be the named insureds with respect to the insurance described in Section 6.02.C and, to the extent applicable, Section 6.02.E. Manager shall be the named insured and Owner and Landlord shall be
additional insureds on the policies described in Section 6.02.A, 6.02.B. and 6.02.D. 
 6.03. Coverage. 
 All insurance described in Sections 6.01 and 6.02 may be obtained by Manager by endorsement or equivalent means under its blanket insurance policies,
provided that such blanket policies fulfill the requirements specified herein. Deductible limits shall be as agreed upon by Owner and Manager. No coverage required hereunder shall be self-insured by Manager or Owner without prior written approval of
Manager and Owner. Owner shall have the right to approve the insurance policies to be obtained by Manager pursuant hereto and the insurance companies issuing such policies. 
 6.04. Costs and Expenses. 
 Insurance
premiums and any costs or expenses with respect to the insurance described in this Article VI shall be Deductions in determining Operating Profit. Premiums on policies for more than one year shall be charged pro rata against Gross Revenues over the
period of the 

  

 16 

 
policies. Any reserves, losses, costs, damages or expenses which are uninsured, or fall within deductible limits, shall be treated as a cost of insurance and
shall be Deductions in determining Operating Profit. 
 6.05. Owner’s Right to Provide Insurance. Notwithstanding anything
contained in this Agreement to the contrary, Owner and/or its Affiliates (including, without limitation, Landlord) shall have the right to procure and maintain any or all of the property and operational insurance for the Hotel otherwise required to
be maintained by Manager under this Article VI and in lieu of Manager’s procuring the same, provided that (i) Owner shall give Manager not less than thirty (30) days notice of Owner’s intent to provide such insurance and shall
provide to Manager upon request certificates of insurance, naming Manager as an additional insured, evidencing the same (ii) Owner’s insurance provides reasonably equivalent coverage to Manager’s policies and (iii) such insurance
procured by Owner shall not become effective until the end of the then-current term of the applicable policy or policies maintained by Manager. In such case, all of the terms and conditions of this Article VI, to the extent applicable, shall govern
the insurance procured by Owner under this Section 6.05. Without limiting the generality of the foregoing, all insurance premiums and any costs or expenses with respect to such insurance shall be Deductions in determining Operating Profit.

 6.06 Waiver of Subrogation. All policies of insurance carried by any party pursuant to this Agreement shall expressly waive any
right on the part of the insurer against any other party to this Agreement, which right, is hereby expressly waived to the extent that such waiver is not prohibited by or violative of any such policy or does not otherwise cause a loss or reduction
of coverage. The parties to this Agreement agree that their policies will include such waiver clause or endorsement so long as the same shall be obtainable without unreasonable extra cost. 
 ARTICLE VII 
 DAMAGE AND REPAIR 
 7.01. Damage and Repair. 
 A. If,
during the Term, the Hotel is damaged or destroyed by fire, casualty or other cause, Owner and/or Landlord may elect, in its sole and absolute discretion, to repair or replace the damaged or destroyed portion of the Hotel with such modifications as
Owner may deem appropriate or as may be required by law, and Manager shall have the right to discontinue operating the Hotel to the extent it deems necessary to comply with applicable law, ordinance, regulation or order or as necessary for the safe
and orderly operation of the Hotel. All proceeds from the insurance described in this Agreement shall be paid to Owner and/or Landlord, as the case may be. If Owner elects not to repair or replace said damaged portion of the Hotel, Owner shall so
notify Manager by written notice as soon as reasonable practicable and no later than ninety (90) days after the date of the casualty. 
 B. In the event damage or destruction to the Hotel from any cause materially and adversely affects the operation of the Hotel and Owner notifies Manager that Owner will not repair or replace such damage, either party may terminate this
Agreement by at least sixty (60) days prior written notice to the other party. 
  

 17 

 7.02. Condemnation. 
 A. In the event all or substantially all of the Hotel shall be taken in any eminent domain, condemnation, compulsory acquisition, or similar proceeding by any competent authority for any public or quasi-public use or
purpose or in the event a portion of the Hotel shall be so taken, but the result is that either Owner or Manager reasonably determines that it is not feasible to continue to operate the Hotel in accordance with the standards required by this
Agreement, Owner or Manager may terminate this Agreement as of the effective date of such taking. All awards and proceeds of any such taking or proceeding shall belong to Owner and/or Landlord, as the case may be. 
 B. In the event this Agreement is not terminated pursuant to Section 7.02.A, such portion of the Hotel that is not so taken shall be repaired or
replaced, with such modifications as Owner may deem appropriate or as may be required by law, and this Agreement shall continue except as may be otherwise agreed by the parties. All awards for any such partial taking or condemnation shall belong to
Owner and/or Landlord, as the case may be. Manager shall have the right to discontinue temporarily operating the Hotel to the extent it deems necessary for the safe and orderly operation of the Hotel. 
 7.03. Business Interruption. 
 In the
event that the operations of the Hotel are interrupted by the causes described in Sections 7.01 and 7.02 above, Manager shall nonetheless be entitled to be paid a Base Management Fee during the period of interruption equal to one-twelfth
(1/12) of the annual Base Management Fee in the amount called for in the current Annual Operating Projection (but in no event less than the Base Management Fee for the preceding full Fiscal Year). The Base Management Fee shall be
prorated for any partial period of interruption. 
 7.04. Subordination to Mortgage. 
 Manager shall provide to any Mortgagee an instrument (the “Subordination Agreement”), reasonably satisfactory in all respects to
Owner and such Mortgagee, which shall be recordable in the jurisdiction where the Hotel is located, pursuant to which: 
 1. This Agreement
and any extensions, renewals, replacements or modifications thereto, and all right and interest of Manager in and to the Hotel, shall be subject and subordinate to such Mortgagee’s Mortgage, with notice and opportunity to cure rights and
post-default cure rights in favor of Mortgagee; 
 2. Manager shall be obligated to each of the Subsequent Owners (as defined below) to
perform all of the terms and conditions of this Agreement for the balance of the remaining Term hereof, with the same force and effect as if such Subsequent Owner were the Owner; and 
 3. In the event that there is a Foreclosure of such Mortgage in connection with which title or possession of the Hotel is transferred to the Mortgagee
(or its designee) or to a purchaser at foreclosure or to a subsequent purchaser from the Mortgagee (or from its designee) (all of the foregoing shall collectively be referred to as “Subsequent Owners”), this Agreement may be
terminated at the election of such Subsequent Owner as of the date of such Foreclosure or upon thirty (30) days notice. 
  

 18 

 7.05. Liens; Credit. 
 Manager and Owner shall use commercially reasonable efforts to prevent any liens from being filed against the Hotel which arise from any maintenance, repairs, alterations, improvements, renewals or replacements in or
to the Hotel and shall cooperate fully in obtaining the release of any such liens. If the lien was not occasioned by the fault of either party, the cost of releasing any lien shall be treated the same as the cost of the matter to which it relates.
If the lien arises as a result of the fault of either party, then the party at fault shall bear the cost of obtaining the lien release. In no event shall either party borrow money in the name of or pledge the credit of the other. 
 ARTICLE VIII 
 DEFAULTS

 8.01. Events of Default. 
 Each of the following shall, to the extent permitted by applicable law, constitute an “Event of Default” under this Agreement. 
 A. The filing of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy law by either party, or the admission by either party that it is unable to pay its debts as they
become due. 
 B. The consent to an involuntary petition in bankruptcy or the failure to vacate, within ninety (90) days from the date
of entry thereof, any order approving an involuntary petition by either party. 
 C. The entering of an order, judgment or decree by any
court of competent jurisdiction, on the application of a creditor, adjudicating either party as bankrupt or insolvent or approving a petition seeking reorganization or appointing a receiver, trustee, or liquidator of all or a substantial part of
such party’s assets, and such order, judgment or decree’s continuing unstayed and in effect for an aggregate of sixty (60) days (whether or not consecutive). 
 D. The failure of either party to make any payment required to be made in accordance with the terms of this Agreement, as of the due date as specified in
this Agreement and the failure to cure such default within ten (10) days after receipt of written notice from the non-defaulting party demanding such cure, provided that only a two (2) business day notice or cure period shall be required
in the case of payments by Manager of Owner’s Priority or other distributions of Operating Profit payable to Owner. 
 E. Manager, any
of its Affiliates or any employee at the Hotel is or becomes a Specially Designated National or Blocked Person, unless, in the case of an employee, Manager terminates any such employee promptly after becoming aware of the same. 
  

 19 

 F. In carrying out its duties hereunder, Manager or an officer, director, employee, or agent of Manager
or its Affiliates commits any act involving fraud, moral turpitude or willful misconduct relating to the business or affairs of the Hotel, or commits an act which constitutes a felony. 
 G. Any representation or warranty by Manager or any of its Affiliates in this Agreement or in any certificate or document or financial or other statement
furnished or delivered to Owner or any of its Affiliates at any time under or in connection with this Agreement shall have been false or intentionally misleading in any material respect on or as of the date made or deemed made. 
 H. The failure of either party to perform, keep or fulfill any of the other covenants, undertakings, obligations or conditions set forth in this
Agreement that continues for a period of thirty (30) days after the defaulting party’s receipt of written notice from the non-defaulting party of said failure, or, if the default is such that it cannot reasonably be cured within said
thirty (30) day period of time, if the defaulting party fails to commence the cure of such default within said thirty (30) day period of time or thereafter fails to diligently pursue such efforts to completion. , provided that (i) in
the case of any default by Manager such default is cured not later than ninety (90) days after Manager’s receipt of such written notice and (ii) only a two (2) business day notice or cure period shall be required in the case of
Manager’s failure to maintain the insurance required by Article VI. 
 8.02. Remedies. 
 Upon the occurrence of an Event of Default, the non-defaulting party shall have the right to pursue any one or more of the following courses of action:
(1) to terminate this Agreement by written notice to the defaulting party, which termination shall be effective as of the effective date which is set forth in said notice, provided that said effective date shall be at least thirty
(30) days after the date of said notice in the case of an Event of Default by Owner; (2) to institute forthwith any and all proceedings permitted by law or equity including, without limitation (but subject to the provisions of
Section 10.24 hereof), actions for specific performance and/or damages; and/or (3) to avail itself of the remedies described in Section 8.03. 
 8.03. Additional Remedies. 
 A. Upon the occurrence of a Default by either party under the provisions
of Section 8.0l.D, the amount owed to the non-defaulting party shall accrue interest, at an annual rate equal to the Prime Rate plus three (3) percentage points, from and after the date on which the Default occurred. 
 B. The remedies granted under Section 8.02 and Section 8.03 shall not be in substitution for, but shall be in addition, to, any and all rights
and remedies available to the non-defaulting party (including, without limitation, injunctive relief and damages) by reason of applicable provisions of law or equity (except as specifically limited by this Agreement) and shall survive Termination.

  

 20 

 ARTICLE IX 
 ASSIGNMENT AND SALE 
 9.01. Assignment. 
 A. Manager shall not assign or transfer its interest in this Agreement without the prior written consent of Owner and any franchisor under the Franchise
Agreement. Any assignee consented to by Owner and by such franchisor shall agree in writing to be bound by and comply with the terms of this Agreement (such written agreement to be acceptable in form and substance to Owner and such franchisor). For
purposes of the foregoing, a transfer of Manager’s interest in this Agreement shall include (i) an assignment or pledge of this Agreement as security for an obligation, (ii) a transfer of any controlling ownership or beneficial
interest, direct or indirect, in Manager, including any such transfer by operation of law except to an Affiliate and (iii) a transfer of Manager’s interest in this Agreement by operation of law, including by merger or consolidation (other
than such a transfer to an Affiliate approved by Owner, which approval shall not be unreasonably withheld). 
 B. Owner shall have the right
to assign or transfer its interest in this Agreement without the prior written consent of the Manager (1) as security for a Mortgage of the Hotel in accordance with this Agreement, (2) in connection with a sale, assignment, transfer or
other disposition of the Hotel by Owner or Landlord, subject to Section 9.02, and (3) in connection with a merger or consolidation or reorganization of, or a sale of all or substantially all of the assets of, Apple REIT Eight, Inc., or any
Affiliate thereof. 
 C. In the event Owner and the franchisor under the Franchise Agreement consent to an assignment of this Agreement by
Manager, no further assignment or transfer shall be made without the express consent in writing of such parties. An assignment by Manager of its interest in this Agreement shall not relieve Manager from its obligations under this Agreement.

 D. Notwithstanding anything contained herein to the contrary, Manager shall not assign its interest in this Agreement to a Specially
Designated National or Blocked Person. 
 9.02. Sale of the Hotel. 
 Owner or Landlord may, in its or their sole and absolute discretion, enter into any Sale of the Hotel to any Person and, in connection with any such Sale
of the Hotel, may assign this Agreement as provided in Section 9.01. However, if Owner or Landlord enters into a Sale of the Hotel, either Owner or Manager may, at its option, terminate this Agreement upon thirty (30) days notice to the
other party upon completion of the Sale of the Hotel. Upon any such sale or assignment, Owner shall be released of all liabilities and obligations arising under and with respect to this Agreement on and after the date of such Sale of the Hotel;
provided, however, that Owner shall continue to be liable for all obligations and amounts due which arise or accrue during the Term of this Agreement before the date of such Sale of the Hotel, including, but not limited to, the obligation to pay a
Termination Fee as provided in Section 3.04 above but such Termination Fee shall only be payable if Owner (not Manager) terminates this Agreement upon Sale of the Hotel. Upon the termination of this Agreement pursuant to this Section 9.02,

  

 21 

 
Manager shall be released of all liabilities and obligations arising under and with respect to this Agreement on and after the date of such termination;
provided, however, that Manager shall continue to be liable for all obligations and amounts due which arise or accrue during the Term of this Agreement before the date of such termination. 
 ARTICLE X 
 MISCELLANEOUS 
 10.01. Right to Make Agreement. 
 Each
party warrants, with respect to itself, that neither the execution of this Agreement nor the performance of the transactions contemplated hereby shall violate any provision of law or judgment, writ, injunction, order or decree of any court or
governmental authority having jurisdiction over it; result in or constitute a breach or default under any indenture, contract, other commitment or restriction to which it is a party or by which it is bound; or, require any consent, vote or approval
which has not been taken, or at the time of the transaction involved shall not have been given or taken. Each party covenants that it has and will continue to have throughout the Term and any extensions thereof, the full right to enter into this
Agreement and perform its obligations hereunder. 
 10.02. Consents and Cooperation. 
 Wherever in this Agreement the consent or approval of Owner or Manager is required, except as otherwise provided in this Agreement or agreed by the
parties, such consent or approval shall not be withheld, delayed or conditioned , shall be in writing and shall be executed by a duly authorized officer or agent of such party. Owner agrees to cooperate with Manager by executing such leases,
subleases, licenses, concessions, equipment leases, service contracts and other agreements negotiated in good faith and at arm’s length by Manager and pertaining to the Hotel that, in Manager’s reasonable judgment, should be made in the
name of the Owner, provided that all such agreements shall be subject to Owner’s prior approval. 
 10.03. Relationship.

 The relationship of Owner and Manager shall be that of independent contractors, and neither this Agreement nor any agreements, instruments,
documents, or transactions contemplated hereby shall in any respect be interpreted, deemed or construed as making Manager an agent of or partner or joint venturer with Owner. Owner and Manager agree that neither party will make any contrary
assertion, claim or counterclaim in any action, suit, arbitration or other legal proceedings involving Owner and Manager. Any contract or agreement that Manager enters into with an Affiliate of Manager or with a third party to provide goods or
services to the Hotel shall be entered into in the name of Manager or Owner, provided that no such contract or agreement shall be entered into in the name of Owner without Owner’s prior written consent and approval of each such agreement and
contract, and Owner shall have no liability with respect to any contract or agreement entered into in the name of Manager other than to pay any sums due thereunder which are Deductions or which Owner otherwise agrees to pay. Notwithstanding anything
contained herein to the contrary, Manager shall defend, indemnify and 

  

 22 

 
hold Owner harmless from and against any claims by the third party vendor or supplier under any contract entered into by Manager (a) in the name of
Owner without Owner’s prior written consent and approval or (b) in the name of Manager without Owner’s prior written consent and/or approval if such consent and/or approval is required by the terms of this Agreement. 
 10.04. Applicable Law; Jurisdiction. 
 This Agreement shall be construed under and shall be governed by the laws of the state in which the Hotel is located, without regard to that state’s conflict of laws provisions. Each of Owner and Manager hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the state and (to the extent permitted by law) Federal courts of such state, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined
in such state court or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that Owner or Manager may otherwise have to bring any action or proceeding relating to this Agreement against the other party in the courts of any
other jurisdiction. Each of Owner and Manager hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement in any court referred to above. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court. 
 10.05. Recordation. 
 The terms and provisions of this Agreement shall not run with the parcel of land designated as the Site, and neither this Agreement nor any memorandum or
short form hereof shall be recorded or registered without the prior written consent of Owner. 
 10.06. Headings. 
 Headings of articles and sections are inserted only for convenience and are in no way to be construed as a limitation on the scope of the particular
articles or sections to which they refer. 
 10.07. Notices. 
 Notices, statements and other communications to be given under the terms of this Agreement shall be in writing and delivered by hand against receipt or
sent by certified or registered mail (with a copy by first class mail) or Express Mail service, in each case postage prepaid, return receipt requested or by nationally utilized overnight delivery service, addressed to the parties as follows:

  

			
	To Owner:	  	Apple Eight Hospitality Management, Inc.
		  	c/o Apple REIT Companies
		  	814 E. Main Street
		  	Richmond, Virginia 23219
		  	Attn: Krissy Gathright
		  	Phone: (804) 727-6323
		  	Fax: (804) 727-6353

  

 23 

			
	To Manager:	  	c/o Newport Hospitality Group, Inc.
		  	4290 New Town Avenue
		  	Williamsburg, Virginia 23188
		  	Attn: Michael L. Pleninger
		  	Fax No.: (757) 221-0400
		
	and	  	
		  	c/o Newport Hospitality Group, Inc.
		  	116 Park Lane
		  	Concord, Massachusetts 01742
		  	Attn: Andrew T. Carey
		  	Fax No.: (978) 318-0332

 or at such other address as is from time to time designated by the party receiving the notice. Any such notice
that is mailed in accordance herewith shall be deemed received when delivery is received or refused, as the case may be. Additionally, notices may be given by telephone facsimile transmission, provided that an original copy of said transmission
shall be delivered to the addressee by nationally utilized overnight delivery service on the business day following such transmission. Telephone facsimiles shall be deemed delivered on the date of such transmission. 
 10.08. Environmental Matters. 
 A.
Manager shall operate the Hotel in compliance with all applicable Environmental Laws. Manager shall (i) not use, generate or store any Hazardous Materials in or on the Hotel except as necessary for the operation and maintenance of the Hotel and
in compliance with the Environmental Laws, (ii) not allow, permit or cause the release or threat of release of any Hazardous Materials in, on, under or from the Hotel, except for the ordinary use of cleaning and maintenance supplies in
compliance with applicable Environmental Laws, (iii) not allow the accumulation of tires, spent batteries, construction and demolition debris or any other solid waste, except for solid waste generated from the operation of the Hotel and stored
in containers for normal scheduled pickup and disposal off site in compliance with applicable Environmental Laws and (iv) use best efforts to operate and maintain the Hotel in a manner to prevent mold, fungal or other microbial growth or
conditions that are favorable for such growth, including, without limitation, the proper operation and maintenance of heating, ventilation and air conditioning systems and removal of any mold, fungal or microbial growth. 
 B. In the event of the discovery of a release or threat of release of Hazardous Materials in, on, under or from any portion of the Hotel during the Term,
Manager shall 

  

 24 

 
promptly notify Owner and shall take all appropriate actions with regard to such Hazardous Materials as required of an owner or operator under applicable
Environmental Laws. Manager shall keep Owner apprised of the status of addressing the release or threat of release of Hazardous Materials, and Owner shall have the right at any time to assume control of the matter from Manager. 
 C. Notwithstanding the foregoing paragraphs, the parties agree that Manager is not and shall not be the insurer for the Hotel as to environmental matters
and, to that end, Manager shall only be responsible for environmental remediation necessitated as a result of Manager’s negligence or acts or omissions (as opposed to Owner’s or a third-party’s negligence, acts or omissions).

 “Environmental Laws” shall mean all federal, state and local environmental, health and safety laws, rules, regulations,
ordinances, permits, orders, common law or requirements of any governmental authority, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601, et.
seq., as amended; Solid Waste Disposal Act, 42 U.S.C. §§ 6901, et. seq., as amended; Toxic Substances Control Act, 15 U.S.C. §§ 2601, et. seq., as amended; Hazardous Materials Transportation
Act, 49 U.S.C. §§ 5101, et. seq., as amended; Federal Water Pollution Control Act, 33 U.S.C. §§ 1251, et. seq. 
 “Hazardous Materials” shall mean any hazardous substances, hazardous wastes, toxic substances, hazardous materials, petroleum or petroleum products, pollutants or contaminants (as those terms are defined under
Environmental Laws), including, without limitation, polychlorinated biphenyls, lead or lead-based paint, asbestos or mold in such concentrations or amounts as may impose clean-up, removal, monitoring or other responsibility under the Environmental
Laws or which may present a significant risk of harm to guests, invitees or employees of the Hotel. 
 10.09. Confidentiality;
Projections. 
 A. Owner and Manager agree that the terms of this Agreement (but not its existence) are strictly confidential and will use
their reasonable efforts to ensure that the terms of this Agreement are not disclosed to any outside person or entities without the prior written consent of the other party, except (1) as Owner or Manager may determine is required by any law,
rule, regulation or judicial process, or by any regulatory or supervisory authority having jurisdiction over the parties or any of their Affiliates or (2) to the extent reasonably necessary, (i) to obtain licenses, permits and other public
approvals, (ii) in connection with a financing of the Hotel, Owner, or any Affiliate thereof, (iii) in connection with a Sale of the Hotel or other sale of Owner, or any Affiliate thereof or its or their corporate assets, (iv) subject
to the provisions of Section 4.02, in connection with an audit or other investigation conducted pursuant to this Agreement or (v) in connection with either party’s enforcement of its rights and remedies under this Agreement.
Notwithstanding the foregoing or anything to the contrary set forth herein, the terms of this Agreement shall not be deemed confidential to the extent: (a) such information becomes generally available to the public other than as a result of
unauthorized disclosure by the recipient or persons to whom such recipient has made the information available; or (b) the party seeking to disclose such confidential information can demonstrate to the reasonable satisfaction of the other party
that the information sought to be disclosed is customarily disclosed by at least 80% of all Persons directly or indirectly owning hotels in the United States. 
  

 25 

 B. Owner acknowledges that any written or oral projections, pro formas, or other similar information that
has been (prior to execution of this Agreement) or will (during the Term) be provided by Manager (or any Affiliate of either) to Owner is for information purposes only, and that Manager, and any such Affiliate do not guarantee that the Hotel will
achieve the results set forth in any such projections, pro formas, or other similar information. Owner further acknowledges that any such projections, pro formas, or other similar information are based on assumptions and estimates, unanticipated
events may occur subsequent to the date of preparation of such projections, pro formas, and other similar information, and the actual results achieved by the Hotel are likely to vary from the estimates contained in any such projections, pro formas,
or other similar information and such variations might be material. 
 10.10. Indemnification. 
 A. Manager hereby agrees to indemnify, defend and hold harmless Owner, its officers, directors, stockholders, employees, agents and their respective
successors and assigns from and against any and all claims, liabilities, damages, losses, obligations and costs (including reasonable attorneys’ fees) arising from (i) Manager’s or any of its Affiliate’s failure to comply with
its obligations under this Agreement and, to the extent provided herein, the obligations of the franchisee under the Franchise Agreement, (ii) any negligent act or omission, theft, fraud or willful misconduct of Manager or its Affiliates and
their respective employees or agents and (iii) any claim asserted by any employee or agent of Manager or its Affiliates, including any claim for employment discrimination, wrongful termination, violations of law and other claims asserted by
such employees, except, as to any of the items listed in clauses (i) – (iii) above, to the extent of any costs properly payable from Gross Revenues as Deductions, to the extent of any costs or claims covered by insurance and to the
extent that the loss or liability giving rise to such claim was caused directly by Owner’s breach of its obligations under this Agreement. 
 B. Owner hereby agrees to indemnify, defend and hold harmless Manager, its officers, directors, stockholders, employees, agents and their respective successors and assigns from and against any and all claims, liabilities, damages, losses,
obligations and costs (including reasonable attorneys’ fees) arising from (i) Owner’s failure to comply with its obligations under this Agreement, (ii) any theft, fraud or willful misconduct of Owner or its Affiliates or their
respective employees or agents and (iii) any claim asserted by any employee or agent of Owner or its Affiliates except, as to any of the items listed in clauses (i)-(iii) above, to the extent the loss or liability giving rise to such claim
was caused directly by Manager’s breach of its obligations under this Agreement or is covered by insurance. 
 C. In agreeing to the
provisions relating to liability and indemnity contained in this Section 10.10, Owner, Landlord, and Manager recognize that simple mistakes and/or errors in judgment by Manager and the employees of Manager are ordinary risks of business in the
operation of the Hotel and that Manager is not assuming such risks and shall not be responsible for loss, liability, or costs resulting therefrom. Further, Manager is not undertaking to be an insurer against third party claims or the insurer of the
profitability of the Hotel. Furthermore, Manager is not assuming any liability for work performed or materials or equipment supplied by third parties. 
  

 26 

 D. Neither Owner, Landlord, nor Manager shall be liable for any special, indirect, incidental, or
consequential damages of any kind in connection with this Agreement, including without limitation, damages resulting from loss of profits, lost sales, business or goodwill, whether or not such party has been advised of the possibility of such
damages. 
 E. The provisions of this Section 10.10 shall survive Termination. 
 10.11. Actions to be Taken Upon Termination. 
 Upon a Termination, the following shall be applicable: 
 A. All fees or expenses due to Manager for the period before such
Termination shall be paid to Manager. On the effective date of such Termination, Manager shall cease all activities hereunder on behalf of Owner at the Hotel and shall have no further obligations hereunder except as to matters arising before such
date and except as otherwise provided in this Agreement. However, Manager shall cooperate with Owner in the orderly transfer of management to Owner or Owner’s designated agent or manager. 
 B. Manager shall, within forty-five (45) days after Termination, prepare and deliver to Owner a final accounting statement with respect to the
Hotel, as more particularly described in Section 4.01 hereof, along with a statement of any sums due from Owner to Manager pursuant hereto, dated as of the date of Termination. Within thirty (30) days of the receipt by Owner of such final
accounting statement, the parties will make whatever cash adjustments are necessary pursuant to such final statement. The cost of preparing such final accounting statement shall be a Deduction, unless the Termination occurs as a result of an Event
of Default by either party, in which case the defaulting party shall pay such cost. Manager and Owner acknowledge that there may be certain adjustments for which the information will not be available at the time of the final accounting and the
parties agree to readjust such amounts and make the necessary cash adjustments when such information becomes available; provided, however, that all accounts shall be deemed final two (2) years after Termination. 
 C. Manager shall immediately release and transfer to Owner any of Owner’s funds which are held or controlled by Manager with respect to the Hotel.

 D. Manager shall make available to Owner such books and records respecting the Hotel (including those from prior years) as will be needed
by Owner to prepare the accounting statements, in accordance with the GAAP, for the Hotel for the year in which the Termination occurs and for any subsequent year. 
 E. Manager shall (to the extent permitted by law) assign to Owner or to the new manager all operating licenses and permits for the Hotel which have been issued in Manager’s 

  

 27 

 
name (including liquor and restaurant licenses, if any); provided that if Manager has expended any of its own funds in the acquisition of any of any of such
licenses or permits, Owner shall reimburse Manager therefor if it has not done so already unless such expenditure is a Manager’s Liability. 
 F. If this Agreement is terminated by reason of Owner’s Event of Default, a reasonable reserve shall be established from Gross Revenues to reimburse Manager for all costs and expenses incurred by Manager in terminating its employees at
the Hotel, such as severance pay, unemployment compensation, employment relocation and other employee liability costs arising out of the termination of employment of Manager’s employees at the Hotel. If Gross Revenues are insufficient to meet
the requirements of such reserve, then Owner shall deliver to Manager, within ten (10) Business Days after receipt of Manager’s written request therefor, the sums necessary to establish such reserve. 
 G. If this Agreement is terminated before the expiration of the Term for any reason other than an Event of Default by Manager, Manager may submit to
Owner for its approval a budget with respect to expenses anticipated to be incurred by Manager to terminate its activities at the Hotel. Upon approval of such budget by Owner, Owner shall deposit the total amount of such budget into the Hotel’s
operating account, and Manager may use such deposit to pay such expenses. Manager shall provide Owner a final accounting of the foregoing, and any surplus remaining from such deposit shall be refunded to Owner. 
 H. Owner may, at its option, (i) provide Manager and/or the employees at the Hotel (or require Manager to provide to the employees at the Hotel) at
least sixty (60) days’ notice of a Termination and/or (ii) cause the entity which shall succeed Manager as the operator of the Hotel to offer employment to a sufficient number of the employees at the Hotel to avoid the occurrence, in
connection with such Termination, of a “plant closing” or “mass layoff” within the meaning of the WARN Act. If Owner elects to cause the entity which shall succeed Manager as operator of the Hotel to offer employment to certain
of Manager’s employees, Manager shall not take any action that would cause such employees not to continue as employees at the Hotel. 
 I. Various other actions shall be taken, as described in this Agreement, including, but not limited to, the actions described in Section 4.05. 
 J. Manager shall peacefully vacate and surrender the Hotel to Owner on the date of termination unless otherwise agreed to by the parties. 
 The provisions of this Section 10.11 shall survive Termination. 
  

 28 

 10.12. Waiver. 
 The failure of either party to insist upon a strict performance of any of the terms or provisions of this Agreement, or to exercise any option, right or remedy contained in this Agreement, shall not be construed as a
waiver or as a relinquishment for the future of such term, provision, option, right or remedy, but the same shall continue and remain in full force and effect. No waiver by either party of any term or provision hereof shall be deemed to have been
made unless expressed in writing and signed by such party. 
 10.13. Partial Invalidity. 
 If any portion of any term or provision of this Agreement, or the application thereof to any person or circumstance shall be invalid or unenforceable, at
any time or to any extent, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and
provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 
 10.14. Survival. 
 Except as otherwise specifically provided in this Agreement or where required to give effect to a provision of this Agreement or to avoid a forfeiture,
the rights and obligations of the parties herein shall not survive any Termination. 
 10.15. Negotiation of Agreement. 
 Owner and Manager are both business entities having substantial experience with the subject matter of this Agreement, and each has fully participated in
the negotiation and drafting of this Agreement. Accordingly, this Agreement shall be construed without regard to the rule that ambiguities in a document are to be construed against the draftsman. No inferences shall be drawn from the fact that the
final, duly executed Agreement differs in any respect from any previous draft hereof. 
 10.16. Estoppel Certificates. 
 Each party to this Agreement shall at any time and from time to time, upon not less than fifteen (15) days’ prior notice from the other party,
execute, acknowledge and deliver to such other party, or to any third party specified by such other party, a statement in writing: (a) certifying that this Agreement is unmodified and in full force and effect (or if there have been
modifications, that the same, as modified, is in full force and effect and stating the modifications); and (b) stating to the best knowledge of the certifying party (i) whether or not there is a continuing Default or Event of Default by
the non-certifying party in the performance or observance of any covenant, agreement or condition contained in this Agreement, (ii) the amount, if any, of any past due fees or other past due amounts owed to Manager or Owner; and
(iii) whether or not there are any past due and unpaid obligations with respect to the Hotel, other than in the ordinary course of business. Such statement shall be binding upon the certifying party and may be relied upon by the non-certifying
party and/or such third party specified by the 

  

 29 

 
non-certifying party as aforesaid. In addition, upon written request after a Termination, each party agrees to execute and deliver to the non-certifying
party and to any such third party a statement certifying that this Agreement has been terminated. 
 10.17. Affiliates. 
 Manager shall not be entitled to contract with companies that are Affiliates (or companies in which Manager has an ownership interest if such interest is
not sufficient to make such a company an Affiliate) or with third parties or their Affiliates that have other contractual relationships with Manager and/or its Affiliates to provide goods and/or services to the Hotel without the prior written
consent of Owner. Notwithstanding the foregoing, Manager may contract with Affiliates to provide marketing, accounting and human resource services subject to the conditions that (i) the costs of such services are included in the Annual
Operating Projection approved by Owner and (ii) at the time Manager submits each Annual Operating Projection to Owner for its approval, Manager specifically identifies the services to be provided by Manager’s Affiliates. 
 10.18. Blocked Persons or Entities. 
 Manager represents and warrants to Owner and covenants for the benefit of Owner that (i) neither Manager nor any of its Affiliates or any of the officers, directors, partners or, to Manager’s knowledge, employees of Manager or its
Affiliates, or, to its knowledge, the funding sources for any of the foregoing, is or will be identified on the list of the U. S. Treasury’s Office of Foreign Asset Control (“OFAC”); (ii) neither Manager nor any of its Affiliates
is or will be directly or indirectly owned or controlled by the government of any country that is subject to an embargo imposed by the United States government; and (iii) neither Manager nor any of its Affiliates is acting or will act on behalf
of a government of, or is involved in business arrangements or other transactions with, any country that is subject to such an embargo. Manager will notify Owner in writing immediately upon the occurrence of any event which would render the
foregoing representations and warranties incorrect. 
 10.19. Restrictions on Operating the Hotel in Accordance with System Standards.

 In the event of either (i) a Legal Requirement, including an order, judgment or directive by a court or administrative body which is
issued in connection with any Litigation involving Owner, or (ii) any action taken by a Mortgagee in connection with a Foreclosure, which in either case restricts or prevents Manager, in a material and adverse manner, from operating the Hotel
in accordance with System Standards (including without limitation, any restrictions on expenditures by Manager from the Operating Accounts or from the Reserve, other than restrictions which are set forth in this Agreement), Manager shall be
entitled, at its option, to terminate this Agreement upon sixty (60) days’ written notice to Owner. The foregoing shall not reduce or otherwise affect the rights of the parties under Article VIII. 
 10.20. Counterparts. 
 This Agreement
may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which shall constitute one and the same instrument. Such 

  

 30 

 
executed counterparts may be delivered by facsimile which, upon transmission to the other party, shall have the same force and effect as delivery of the
original signed counterpart. The submission of an unsigned copy of this Agreement or an electronic instrument with or without electronic signature to either party shall not constitute an offer or acceptance. This Agreement shall become effective and
binding only upon execution and delivery of this Agreement in non-electronic form by both parties in accordance with this Section. 
 10.21.
Entire Agreement. 
 This Agreement, together with any other writings signed by the parties expressly stated to be supplemental hereto
and together with any instruments to be executed and delivered pursuant to this Agreement, constitutes the entire agreement between the parties and supersedes all prior understandings and writings, and may be changed only by a written non-electronic
instrument that has been duly executed by the non-electronic (which shall not be deemed to exclude facsimile) signature of an authorized representative of the parties hereto. 
 10.22. Franchise Agreement. 
 During
the Term of this Agreement, subject to the availability of adequate funds, Manager shall perform all of the obligations of Owner as “Franchisee” under the Franchise Agreement to the extent such obligations relate to the management or
operation of the Hotel, including, without limitation, the obligations of “Franchisee” under Sections XIII (Accounting and Records) and XIV (Insurance) of the Franchise Agreement, and Manager shall not commit any act or omit to take any
action that would cause a default by the Franchisee under the Franchise Agreement. In the event of any inconsistency between the provisions of this Agreement and the provisions of the Franchise Agreement, the provisions of the Franchise Agreement
shall prevail. Manager shall send promptly to Owner any and all notices that Manager receives from the Franchisor with respect to the Hotel or the Franchise Agreement and shall keep Owner fully informed with respect to all matters that come to
Manager’s attention under the Franchise Agreement. Notwithstanding the foregoing, Manager shall not have the right to grant any consent, approval or other right reserved to the Franchisee under the Franchise Agreement or to make any decision or
agreement on behalf of Owner under the Franchise Agreement. In the event the Franchise Agreement is terminated for any reason, this Agreement shall also terminate effective as of the date of termination of the Franchise Agreement, unless the parties
hereto agree otherwise. 
 10.23. Operation of Other Hotels. 
 During the Term and except for the Hotel and the other hotels described in Schedule 1, neither Manager nor any of its Affiliates shall acquire,
lease, own, manage or operate, directly or indirectly, any hotel, inn, motel or other type of lodging facility, regardless of whether similar to the Hotel or whether operated under the same or a different brand, that is a Competing Hotel without
Owner’s prior written consent. In addition, if Manager or any of its Affiliates shall acquire, lease, own, manage or operate, directly or indirectly, any hotel, inn, motel or other type of lodging facility, regardless of whether similar to the
Hotel or whether operated under the same or a different brand, in the same geographic area or market as the Hotel, Manager shall not permit unfair favoritism in the operation and management of such other hotels that would 

  

 31 

 
disadvantage the operation or business of the Hotel (such as, by way of example only, directing potential Hotel guests to such other hotels instead of to the
Hotel). At Owner’s request, Manager shall provide such information as may reasonably be requested by Owner to determine if there has been any such unfair favoritism and, in the event Owner, in its reasonable business judgment, determines that
any such unfair favoritism has occurred, Owner may terminate this Agreement. For purposes of this Section, a “Competing Hotel” shall mean any hotel, inn, motel or other type of lodging facility that markets directly to or makes efforts to
attract customers, guests and/or hotel business that would otherwise do business with the Hotel. 
 10.24. Waiver of Jury Trial and
Punitive Damages. 
 Owner and Manager each hereby absolutely, irrevocably and unconditionally waive trial by jury and the right to claim
punitive damages in any litigation, action, claim, suit or proceeding, at law or in equity, arising out of or pertaining to this Agreement or any other agreement, instrument or document entered into in connection herewith. 
 10.25 Termination of the Hotel Lease. 
 Landlord represents and agrees that in the event of the cancellation or termination of the Hotel Lease for any reason, this Agreement shall remain in full force and effect with Landlord substituted as Owner hereunder. 
 10.26 All Payments Subject to Availability of Funds. 
 Whenever Manager is required to make a payment hereunder, it is agreed that such obligation is subject to the availability of adequate operating funds (or other funds provided by Owner) after the payment of all
operating expenses of the Hotel. 
 ARTICLE XI 
 DEFINITION OF TERMS 
 11.01. Definition of Terms. 
 The following terms when used in this Agreement shall have the meanings indicated: 
 “Accounting Period” shall mean a calendar month. 
 “Accounting Period Statement” shall have the meaning ascribed to it in Section 4.0l.A. 
 “Accounting Quarter” shall mean three consecutive Accounting Periods, the first of which begins on the first day of the Fiscal Year. 
 “Affiliate” shall mean, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person. For purposes of this 

  

 32 

 
definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”)
of a Person means the possession, directly or indirectly, of the power: (i) to vote more than fifty percent (50%) of the voting stock or other beneficial interests of such Person; or (ii) to direct or cause the direction of the
management and policies of such Person, whether through the Ownership of voting stock, by contract or otherwise. 
 “Agreement” shall mean this Management Agreement between Owner and Manager, including the exhibits attached hereto. 
 “Annual Operating Projection” shall have the meaning ascribed to it in Section 4.04. 
 “Annual Operating Statement” shall have the meaning set forth in Section 4.0l.B. 
 “Available Cash Flow” shall mean an amount, with respect to each Fiscal Year or portion thereof during the Term, equal to the excess, if any, of the Operating Profit over the Owner’s Priority. 
 “Base Management Fee” shall mean an amount payable to Manager as a Deduction from Gross Revenues for all services provided by
Manager pursuant to this Agreement, except as otherwise expressly provided herein. The Base Management Fee shall be the percentage of Gross Revenues shown on Schedule 1 for each Fiscal Year during the Term. 
 “Buildings” shall mean the buildings and improvements constituting that certain hotel more particularly described on Schedule
1 attached hereto and made a part hereof which is located on the Site. 
 “Business Day” shall mean any day other
than a Saturday, Sunday or legal holiday in the Commonwealth of Virginia. 
 “Competitive Set” shall mean the group
of hotels which are closest in geographical distance from the Hotel and which are generally within the same hotel market segment as the Hotel, as described in Schedule 1. If any such hotels, subsequent to the Effective Date, either changes
its chain affiliation or ceases to operate or otherwise ceases to reflect the general criteria set forth in the first sentence of this definition, Owner and Manager agree to mutually, reasonably and in good faith, discuss appropriate changes to the
foregoing list of the hotels that shall comprise the Competitive Set. 
 “CPI”, shall mean the Consumer Price Index
for All Urban Consumers (CPI-U) for the U.S. City Average for All Items (1982-1984=100) published by the Bureau of Labor Statistics, United States Department of Labor; provided, however, that if such index ceases to be published or is converted to a
different standard or is otherwise revised, the index shall be adjusted by any then applicable conversion factor, or failing that, by any published price or cost indices or other published data which are as comparable as possible to the Index prior
to its termination or revision. 
 “Cure Payment” shall have the meaning set forth in Section 2.02.A.

  

 33 

 “Deductions” shall have the meaning ascribed to it in the definition of Operating
Profit. 
 “Default” shall mean the occurrence of any event which, with the lapse of time, the giving of notice or
both, would constitute an Event of Default. 
 “Effective Date” shall have the meaning ascribed to it in the
Preamble. 
 “Environmental Laws” shall have the meaning ascribed to it in Section 10.08. 
 “Event of Default” shall have the meaning ascribed to it in Section 8.01. 
 “FF&E” shall mean furniture, furnishings, fixtures, soft goods, case goods, signage, audio-visual equipment, kitchen
appliances, vehicles, carpeting and equipment, including front desk and back-of-the-house computer equipment, that meet Owner’s capitalization policy consistent with GAAP , but shall not include Fixed Asset Supplies or Software. 
 “FF&E Lease” means a lease of any property other than real property. 
 “Fiscal Year” shall mean a calendar year commencing on January 1 and ending on December 31; provided, however, the
first fiscal year commences as of the Effective Date and ends at midnight on December 31 of that same calendar year. A partial Fiscal Year between the end of the last full Fiscal Year and the Termination of this Agreement shall also constitute
a separate Fiscal Year. If Fiscal Year is changed in the future, appropriate adjustment to this Agreement’s reporting and accounting procedures shall be made; provided, however, that no such change or adjustment shall alter the term of this
Agreement or in any way reduce the distributions of Operating Profit or other payments due hereunder. 
 “Fixed Asset
Supplies” shall mean items included within “Property and Equipment” under the Uniform System of Accounts including, but not limited to, linen, china, glassware, tableware, uniforms, and similar items, whether used in
connection with public space or Guest Rooms. 
 “Foreclosure” shall mean any exercise of the remedies available to a
Mortgagee, upon a default under the Mortgage held by such Mortgagee, which results in a transfer of title to or possession of the Hotel. The term “foreclosure” shall include, without limitation, any one or more of the following events, if
they occur in connection with a default under a Mortgage: (i) a transfer by judicial or non-judicial foreclosure; (ii) a transfer by deed in lieu of foreclosure; (iii) the appointment by a court of a receiver to assume possession of
the Hotel; (iv) a transfer of either ownership or control of the Owner, by exercise of a stock pledge or otherwise; (vi) if title to the Hotel is held by a tenant under a ground lease, an assignment of the tenant’s interest in such
ground lease or (vi) any similar judicial or non-judicial exercise of the remedies held by the Mortgagee resulting in actual ownership or control of the Hotel by such Mortgagee or its designee. 
  

 34 

 “Franchise Agreement” shall mean the franchise agreement described on Schedule
1 attached hereto and made a part hereof, as the same may be amended or supplemented from time to time. 
 “Gross
Revenues” shall mean all revenues and receipts of every kind derived from operating the Hotel and all departments and parts thereof, including, but not limited to: income (from both cash and credit transactions) from rental of Guest
Rooms, telephone charges, stores, offices, exhibit or sales space of every kind; license, lease and concession fees and rentals (not including gross receipts of licensees, lessees and concessionaires); income from vending machines; income from
parking; health club membership fees; food and beverage sales; wholesale and retail sales of merchandise; and service charges; provided, however, that Gross Revenues shall not include the following: gratuities to employees of the Hotel; federal,
state or municipal excise, sales or use taxes or any other taxes collected directly from patrons or guests or included as part of the sales price of any goods or services; proceeds from the sale of FF&E; interest received or accrued with respect
to the funds in the Reserve or the other operating accounts of the Hotel; any refunds, rebates, discounts and credits of a similar nature, given, paid or returned in the course of obtaining Gross Revenues or components thereof; insurance proceeds;
condemnation proceeds (other than for a temporary taking); or any proceeds from any Sale of the Hotel or from the financing or refinancing of any debt encumbering the Hotel. 
 “Guest Room” shall mean a separately-keyed lodging unit in the Hotel. 
 “Guest Room Revenues” shall mean the portion of Gross Revenues of the Hotel which is attributed to the rental of Guest Rooms.

 “Hazardous Materials” shall have the meaning ascribed to it in Section 10.08. 
 “Hotel” shall mean the Site together with the Buildings and all other improvements construed or to be constructed on the Site
pursuant to this Agreement, all FF&E and Fixed Asset Supplies installed or located on the Site or in the Buildings, and all easements or other appurtenant rights thereto. 
 “Hotel Lease” shall have the meaning ascribed to it in Recital B. 
 “Hotel Purchase Contract” shall have the meaning ascribed to it in Schedule 1. 
 “Impact Fees” shall have the meaning ascribed to it in Section 4.07.A. 
 “Impositions” shall have the meaning ascribed to it in Section 4.07. 
 “Incentive Management Fee” shall mean an amount payable to Manager, pursuant to Section 3.01 and Section 4.01, that is
set forth in Schedule 1 of Available Cash Flow in any Fiscal Year (or portion thereof) after payment to Owner of Owner’s Priority. 
 “Initial Term” shall have the meaning ascribed to it in Section 2.01. 
  

 35 

 “Inventories” shall mean “Inventories” as defined in the Uniform System
of Accounts, such as, but not limited to, provisions in storerooms, refrigerators, pantries and kitchens; beverages in wine cellars and bars; other merchandise intended for sale; fuel; mechanical supplies; stationery; and other expensed supplies and
similar items. 
 “Landlord” shall mean the party identified as “Landlord” in Schedule 1. 
 “Legal Requirement(s)” shall mean any federal, state or local law, code, rule, ordinance, regulation or order of any governmental
authority or agency having jurisdiction over the business or operation of the Hotel or the matters which are the subject of this Agreement, including, without limitation, the following: (i) any building, zoning or use laws, ordinances,
regulations or orders; and (ii) Environmental Laws. 
 “Litigation” shall mean: (i) any cause of action
(including, without limitation, bankruptcy or other debtor/creditor proceedings) commenced in a federal, state or local court; or (ii) any claim brought before an administrative agency or body (for example, without limitation, employment
discrimination claims). 
 “Manager” shall have the meaning ascribed to it in the Preamble hereto or shall mean any
permitted successor or assign, as applicable. 
 “Manager’s Liability” and “Manager’s
Liabilities” shall have the meanings ascribed to such terms in Section 4.03.B. 
 “Mortgage” shall
mean any mortgage, deed of trust or similar security instrument creating a lien on the Hotel. 
 “Mortgagee” shall
mean the holder of any Mortgage encumbering the Hotel or the Site. 
 “Operating Accounts” shall have the meaning
ascribed to it in Section 4.03.A. 
 “Operating Loss” shall mean a negative Operating Profit. 
 “Operating Profit” shall mean the excess of Gross Revenues over the following deductions (“Deductions”)
incurred by Manager, on behalf of Owner, in operating the Hotel: 
 1. the cost of sales, including, without limitation, compensation, fringe
benefits, payroll taxes and other costs related to Hotel employees, provided that the foregoing costs shall not include salaries and other employee costs of executive personnel of Manager who do not work at the Hotel on a regular basis, which
salaries and costs shall be Manager’s Liability; 
 2. departmental expenses incurred at departments within the Hotel; administrative
and general expenses; the cost of marketing incurred by the Hotel; advertising and business promotion incurred by the Hotel; heat, light, and power; computer line charges; and routine repairs, maintenance and minor alterations treated as Deductions
under Section 5.01; 
  

 36 

 3. the cost of Inventories and Fixed Asset Supplies consumed in the operation of the Hotel; 

4. a reasonable reserve for uncollectible accounts receivable as reasonably determined by Manager with the concurrence of Owner; 
 5. all costs and fees of independent professionals or other third parties who are retained by Manager with the concurrence of Owner to perform services
required or permitted hereunder; 
 6. all costs and fees of technical consultants and operational experts who are retained or employed by
Manager with the concurrence of Owner for specialized services (including, without limitation, quality assurance inspectors) and the reasonable cost of attendance by employees of the Hotel at training and manpower development programs sponsored by
Manager, provided Owner has approved attendance at programs and the cost thereof; 
 7. the Base Management Fee; 
 8. all royalty, marketing fund, reservation, communication support, property management system and other similar fees payable to the Franchisor under the
Franchise Agreement; 
 9. insurance costs and expenses as provided in Section 6.04; 
 10. taxes, if any, payable by or assessed against Manager, Owner or Landlord related to this Agreement or to Manager’s operation of the Hotel and
Impositions (exclusive of Manager’s, Owner’s and Landlord’s income taxes or franchise taxes and any other similar taxes payable by Manager and all other taxes, assessments and payments excluded from the definition of Impositions);

 11. transfers to the Reserve required pursuant to Section 5.02; 
 12. any costs paid by Manager pursuant to the Franchise Agreement; 
 13. payments pursuant to FF&E leases or other forms of financing obtained for the FF&E located in or connected with the Hotel; and 
 14. to the extent approved in advance by Owner, such other costs and expenses incurred by Manager as are specifically provided for elsewhere in this Agreement or are otherwise reasonably necessary for the proper and
efficient operation of the Hotel, including without limitation, travel expenses or supervisory personnel of Manager incurred in connection with managing the Hotel. 
  

 37 

 The term “Deductions” shall not include (a) debt service payments pursuant
to a Mortgage or (b) rental payments under any Hotel Lease, all of which shall be paid by Owner from its own funds. 
 “Owner” shall have the meaning ascribed to it in the Preamble or shall mean any successor or assign, as applicable. 
 “Owner’s Priority” shall mean the amount shown as Owner’s Priority on Schedule 1 attached hereto and made a part hereof, per Fiscal Year (prorated for any partial Fiscal Year).
Owner’s Priority for each Fiscal Year shall be paid to the extent of Operating Profit available in such Fiscal Year, as provided in Section 3.02 of this Agreement. In the event of any capital expenditures made with respect to the Hotel
after the date of this Agreement that are in excess of the Reserve, the Owner’s Priority shall be increased (but not decreased) for the remaining portion of the Fiscal Year in which such capital expenditures are made and all subsequent Fiscal
Years so as to equal a twelve percent (12%) return on an amount equal to the sum of (i) the purchase price paid by Owner for the Hotel plus (ii) closing costs (including, without limitation, defeasance costs but excluding any
brokerage fees or expenses incurred by Owner’s parent in connection with its public equity raise) plus (iii) such excess capital expenditures. 
 “Performance Termination Period” shall have the meaning ascribed to it in Schedule 1. 
 “Performance Termination Threshhold” shall have the meaning ascribed thereto in Schedule 1. 
 “Person” means an individual (and the heirs, executors, administrators, or other legal representatives of an individual), a partnership, a corporation, limited liability company, a government or any department or
agency thereof, a trustee, a trust and any unincorporated organization. 
 “Prime Rate” shall mean the “prime
rate” of interest announced from time to time in the “Money Rates” section of The Wall Street Journal. 
 “Prudent Industry Practice” shall mean the customary practices of the hotel industry in the United States for hotels comparable to the Hotel. To the extent inconsistent with the requirements of the Franchise
Agreement, such practices shall be conformed to the requirements of the Franchise Agreement for purposes of this Agreement. 
 “Quarterly Operating Statement” shall have the meaning set forth in Section 4.0l.B. 
 “Reserve” shall have the meaning ascribed to it in Section 5.02A. 
 “Revenue Data
Publication” shall mean Smith’s STAR Report, a monthly publication distributed by Smith Travel Research, Inc. of Gallatin, Tennessee, or an alternative source, reasonably satisfactory to both parties, of data regarding the Revenue
Per Available Room of hotels in the general trade area of the Hotel. If such Smith’s STAR Report is discontinued in the 

  

 38 

 
future, or ceases (in the reasonable opinion of either Owner or Manager) to be a satisfactory source of data regarding the Revenue Per Available Room of
various hotels in the general trade area of the Hotel, Owner and Manager shall select an alternative source for such data. If the parties fail to agree on such alternative source within a reasonable period of time, either party may terminate this
Agreement upon sixty (60) days prior written notice to the other party. 
 “Revenue Index” shall mean that
fraction that is equal to (a) the Revenue Per Available Room for the Hotel divided by (b) the average Revenue Per Available Room for the hotels in the Competitive Set, as set forth in the Revenue Data Publication. Appropriate adjustments
to the Revenue Index, acceptable to Owner in its reasonable discretion, shall be made in the event of a major renovation of the Hotel. 
 “Revenue Index Threshold” shall mean the number shown on Schedule 1 attached hereto and made a part hereof. However, if the entry of a new hotel into the Competitive Set (or the removal of a hotel from the
Competitive Set) causes significant variations in the Revenue Index that do not reflect the Hotel’s true position in the relevant market, appropriate adjustments shall be made to the Revenue Index Threshold by mutual consent of Owner and
Manager each acting in good faith. 
 “Revenue Per Available Room” shall mean (i) the term “revenue per
available room” as defined by the Revenue Data Publication, or (ii) if the Revenue Data Publication is no longer being used (as more particularly set forth in the definition of “Revenue Data Publication”), the aggregate gross
room revenues of the hotel in question for a given period of time divided by the total room nights for such period. If clause (ii) of the preceding sentence is being used, a “room” shall be an available hotel guestroom that is keyed
as a single unit. 
 “Routine Capital Expenditures” shall mean certain routine, non-major expenditures which are
classified as “capital expenditures” under generally-accepted accounting principles, and which will be funded from the Reserve (pursuant to Section 5.02). Routine Capital Expenditures consist of the following types of expenditures:
exterior and interior painting; resurfacing building walls and floors; resurfacing parking areas; and miscellaneous similar expenditures. Routine Capital Expenditures are not non-routine capital expenditures or major repairs or major alterations or
improvements. 
 “Sale of the Hotel” shall mean any sale, assignment, transfer or other disposition, for value or
otherwise, voluntary or involuntary, of the Site and/or the Hotel or any interest therein, in whole or part. For purposes of this Agreement, a Sale of the Hotel shall also include a lease (or sublease) of all or substantially all of the Hotel or
Site or any interest therein. Sale of the Hotel shall exclude related party transactions with Affiliates of Owner and shall also exclude granting of security interests in the Hotel or any part thereof in connection with financing. 
 “SEC Filing Period” shall mean such period of time (a) (not to exceed thirty (30) days) after the close of each Fiscal
Year within which Owner must receive the Annual Operating Statement from Manager with respect to such Fiscal Year and (b) (not to exceed twenty (20) days) after the close of each calendar quarter of a Fiscal Year within which Owner must
receive the Quarterly Operating Statement from Manager with respect to such quarter, in each case in order for Owner to have a reasonable period of time within which to prepare and make all required filings with the Securities and Exchange
Commission and other applicable governmental agencies. 
  

 39 

 “Site” shall mean the real property described on Exhibit A attached hereto
and made a part hereof. 
 “Software” shall mean all computer software and accompanying documentation (including all
future upgrades, enhancements, additions, substitutions and modifications thereof), other than computer software which is generally commercially available, which are used by Manager in connection with operating or otherwise providing services to the
Hotel. 
 “Specially Designated National or Blocked Person” shall mean (i) a person designated by the U.S.
Department of Treasury’s Office of Foreign Assets Control from time to time as a “specially designated national or blocked person” or similar status, (ii) a person described in Section 1 of U.S. Executive Order 13224 issued
on September 23, 2001, or (iii) a person otherwise identified by government or legal authority as a person with whom Manager or its Affiliates are prohibited from transacting business. Currently, a listing of such designations and the text
of the Executive Order are published under the internet website address www.ustreas.gov/offices/enforcement/ofac. 
 “Subordination Agreement” shall have the meaning ascribed to it in Section 7.04. 
 “Subsequent Owners” shall have the meaning ascribed to it in Section 7.04. 
 “System” shall have the meaning set forth in the Franchise Agreement. 
 “System
Standards” shall mean any one or more (as the context requires) of the following three (3) categories of standards: (i) operational standards (for example, services offered to guests, quality of food and beverages,
cleanliness, staffing and employee compensation and benefits, frequent traveler programs and other similar programs; (ii) physical standards (for example, quality of the hotel, FF&E, and Fixed Asset Supplies, frequency of FF&E
replacements, etc.); and (iii) technology standards (for example, those relating to software, hardware, telecommunications, systems security and information technology); each of such standards shall be the standard which is generally prevailing
or in the process of being implemented at other hotels in the System represented by the Franchise Agreement. 
 “Term” shall have the meaning ascribed to it in Section 2.01. 
 “Termination”
shall mean the expiration or sooner cessation of this Agreement. 
 “Trade Name” shall mean any name, whether
informal (such as a fictitious name or d/b/a) or formal (such as the full legal name of a corporation or partnership) which is used to identify an entity. 
 “Uniform System of Accounts” shall mean the Uniform System of Accounts for the Lodging Industry, Ninth Revised Edition, 1996, as published by the Educational Institute of the American
Hotel & Motel Association, as revised. 
  

 40 

 “WARN Act” shall mean the Worker Adjustment and Retraining Notification Act, 29
U.S.C. 2101 et seq. 
 “Working Capital” shall mean funds that are used in the day-to-day operation of the
business of the Hotel, including, without limitation, amounts sufficient for the maintenance of change and petty cash funds, amounts deposited in operating bank accounts, receivables, amounts deposited in payroll accounts, prepaid expenses and funds
required to maintain Inventories, less accounts payable and accrued current liabilities. 
 ARTICLE XII 
 SUPPLEMENTAL PROVISIONS 
 All of the
terms, conditions, representations, warranties, covenants and other provisions, if any, set forth in the supplemental provisions attached hereto as Schedule 2 (the “Supplemental Provisions”) are hereby incorporated into this
Agreement and shall be considered a part hereof. In the event of any conflict or inconsistency between the Supplemental Provisions and the other provisions of this Agreement, the Supplemental Provisions shall control. 
  

 41 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under seal as of the day
and year first written above. 
  

			
	OWNER:
	
	 APPLE EIGHT HOSPITALITY MANAGEMENT, INC.,
 a Virginia corporation

		
	By:	 	 /s/ Justin Knight

	Name:	 	Justin Knight
	Title:	 	
	
	MANAGER:
	
	 NEWPORT HARRISONBURG MANAGEMENT, LLC,
 a Virginia limited liability company

		
	By:	 	 /s/ Michael L. Pleninger

	Name:	 	Michael L. Pleninger
	Title:	 	Manager

  

 42 

 SCHEDULE 1 
 HOTEL SPECIFIC DATA 
  

	1.	Description of Hotel: That certain hotel known as the Courtyard Harrisonburg, located at 1890 Evelyn Byrd Ave., Harrisonburg, Virginia 22801, containing 125 guest rooms, a
lobby, meeting rooms, administrative offices, parking and certain amenities and related facilities located on the Site, including the following: 

 a. Number of Guest Rooms: 125 
 b. Other Improvements/Amenities: 975 sq. ft. meeting room
space; full service business center; indoor swimming pool; whirlpool; exercise room; wireless high speed internet access; Courtyard Café. 
  

	2.	Franchise Agreement: Franchise Agreement between Apple Eight Hospitality Management, Inc. and Marriott International, Inc. dated November 16, 2007.

  

	3.	Competitive Set: 

 Holiday Inn Harrisonburg

 Hampton Inn Harrisonburg 
 Comfort Inn Harrisonburg 
 Sleep Inn & Suites Harrisonburg 
  

	4.	Landlord: Apple Eight Hospitality Ownership, Inc. 

  

	5.	Base Management Fee: Three percent (3%) 

  

	6.	a. Incentive Management Fee: 20% of available cash flow after payment of Owner’s Priority 

 b. Owner’s Priority:
$                         (12% of Purchase Price plus closing costs
[$                    ]); 
  

	7.	a. Performance Termination Threshold: $                     (10% of
Purchase Price plus closing costs [$                    ]); 

 b. Performance Termination Period: Any calendar year; provided, however, the initial Performance Termination Period shall begin on January 1,
2009. 
  

	8.	Revenue Index Threshold: 100% 

  

	9.	Hotel Purchase Contract: Purchase Contract dated as of September 4, 2007 between Apple Eight Hospitality Ownership, Inc. and NGC Harbison, LLC et al.

  

 43 

	10.	Expiration Date of Term: Five (5) years from the Effective Date 

  

	11.	State in which Manager is Organized: Virginia 

  

	12.	FF&E Reserve: An amount equal to five percent (5%) of Gross Revenues for each Accounting Period. 

  

	13.	Other Hotels: None 

  

 44 

 SCHEDULE 2 
 1. Franchise Agreement. [FOR MARRIOTT BRANDS:] During the Term of this Agreement, subject to the availability of adequate funds, Manager shall perform all of the obligations of Owner as “Franchisee”
under the Franchise Agreement to the extent such obligations relate to the management or operation of the Hotel, including, without limitation, the obligations of “Franchisee” under Sections XIII (Accounts and Receipts) and XIV (Insurance)
of the Franchise Agreement, and Manager shall not commit any act or omit to take any action that would cause a default by the Franchisee under the Franchise Agreement. In the event of any inconsistency between the provisions of this Agreement and
the provisions of the Franchise Agreement, the provisions of the Franchise Agreement shall prevail. Manager shall send promptly to Owner any and all notices that Manager receives from the Franchisor with respect to the Hotel or the Franchise
Agreement and shall keep Owner fully informed with respect to all matters that come to Manager’s attention under the Franchise Agreement. Likewise, Owner shall send promptly to Manager any and all notices that Owner receives from the Franchisor
with respect to the Hotel or the Franchise Agreement that would require action or compliance on the part of Manager. Notwithstanding the foregoing, Manager shall not have the right to grant any consent, approval or other right reserved to the
Franchisee under the Franchise Agreement or to make any decision or agreement on behalf of Owner under the Franchise Agreement. In the event the Franchise Agreement is terminated for any reason, this Agreement shall also terminate effective as of
the date of termination of the Franchise Agreement, unless the parties hereto agree otherwise. 
 [FOR HILTON BRANDS:] During the Term of this Agreement,
subject to the availability of adequate funds, Manager shall perform all of the obligations of Owner as “Licensee” under the Franchise Agreement to the extent such obligations relate to the management or operation of the Hotel, including,
without limitation, the obligations of “Licensee” under Paragraphs 6, 7 and 8 of the Franchise Agreement, and Manager shall not commit any act or omit to take any action that would cause a default by the Licensee under the Franchise
Agreement. In the event of any inconsistency between the provisions of this Agreement and the provisions of the Franchise Agreement, the provisions of the Franchise Agreement shall prevail. Manager shall send promptly to Owner any and all notices
that Manager receives from the Franchisor with respect to the Hotel or the Franchise Agreement and shall keep Owner fully informed with respect to all matters that come to Manager’s attention under the Franchise Agreement. Notwithstanding the
foregoing, Manager shall not have the right to grant any consent, approval or other right reserved to the Licensee under the Franchise Agreement or to make any decision or agreement on behalf of Owner under the Franchise Agreement. In the event the
Franchise Agreement is terminated for any reason, this Agreement shall also terminate effective as of the date of termination of the Franchise Agreement, unless the parties hereto agree otherwise. 
 2. Accounting Period. For purposes of this Agreement, the term “Accounting Periods” shall mean a calendar month, except that the first Accounting Period
shall begin on the Effective Date and shall end on the last day of the calendar month in which the Effective Date occurs. 
  

 45 

 3. Fiscal Year. [FOR MARRIOTT BRANDS:] For purposes of this Agreement, the term “Fiscal Year” shall mean
the fiscal year as of the Effective Date that ends at midnight on the Friday closest to December 31 in each calendar year; the new Fiscal Year begins on the Saturday immediately following said Friday. Any partial Fiscal Year between the
Effective Date and the commencement of the first full Fiscal Year shall constitute a separate Fiscal Year and shall be deemed the first Fiscal Year. A partial Fiscal Year between the end of the last full Fiscal Year and the Termination of this
Agreement shall also constitute a separate Fiscal Year. 
 [FOR HILTON BRANDS:] For purposes of this Agreement, the term “Fiscal Year” shall mean,
initially, the period beginning as of the Effective Date and ending at midnight on the following December 31 and thereafter each calendar year during the Term. Any partial Fiscal Year between the Effective Date and the commencement of the first
full Fiscal Year shall constitute a separate Fiscal Year and shall be deemed the first Fiscal Year. A partial Fiscal Year between the end of the last full Fiscal Year and the Termination of this Agreement shall also constitute a separate Fiscal
Year. 
  

 46 

 EXHIBIT A 
 LEGAL DESCRIPTION OF SITE 
 ALL OF THAT certain lot or parcel of land, containing 3.000 acres, together with
the improvements thereon, and all the rights, privileges, easements, appurtenances and rights of way thereunto belonging or in anywise appertaining, situate on the northeast side of Evelyn Byrd Avenue in the City of Harrisonburg, Rockingham County,
Virginia, and being more particularly described as: 
 LOT 1A as shown on plat dated April 17, 1998, entitled, “3.000 ACRE DIVISION
OF LOT 1 FORBES COMMERCE PARK SUBDIVISION” recorded in the Clerk’s office of the Circuit Court of Rockingham County, Virginia, on April 28, 1998, in Deed Book 1578 at Page 737; said parcel being more particularly described as follows:

 Beginning at an iron pin found in the eastern right-of-way line of Evelyn Byrd Avenue, a corner to Valley Professional Commons; thence with
Evelyn Byrd Avenue N 14o51’ 05” W 70.85’ to an iron pin set; thence a curve to the left having a radius of 340.00’, an arc of 154.55’, a delta of 26o 02’ 09”, a chord of 153.22’ and a bearing of N
27o 52’ 25” W to an iron pin found, a corner to Bruce Forbes; thence with Forbes line N 64o 23’ 53” E 491.36’ to an iron pin found, a corner to Beck Company; thence with Beck’s line S 09o 42’
42” E 373.18’ to an iron pin found; a corner to Valley Professional Commons; thence with Valley Professional Commons’ line S 83o 21’ 55” W 419.08’ to the Point of Beginning, containing 3.000 acres. 
 It being the same property conveyed to the Grantor herein by deed dated November 3, 2005, from LTD Management Company, Inc., a Virginia corporation,
and duly recorded in the Clerk’s Office aforesaid in Deed Book 2770, at page 440. 
  

 47

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00134-of-00352.parquet"}]]