Document:

Exhibit 10.39

 

FIRST AMENDMENT TO HOTEL PURCHASE AND SALE AGREEMENT

 

THIS FIRST AMENDMENT TO HOTEL PURCHASE AND SALE AGREEMENT (this “Amendment”) is made and entered into as of May 1, 2019 (the “Effective Date”), by and between LODGING FUND REIT III OP, LP, a Delaware limited partnership (“Purchaser”), and EAGAN LODGING INVESTORS II, LLC, a Wisconsin limited liability company (“Seller”).

 

RECITALS:

 

A.                                    Purchaser and Seller are parties to that certain Hotel Purchase and Sale Agreement dated as of April 10, 2019 (the “Agreement”) with respect to the purchase and sale of the Hampton Inn located at 3000 Eagandale Place, Eagan, Minnesota 55121, as more particularly described in the Agreement; and

 

B.                                    Purchaser and Seller desire to amend the Agreement as set forth in this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller agree as follows:

 

1.                                      Effective Date.  Seller and Purchaser hereby agree that the Effective Date of the Agreement shall be April 11, 2019.

 

2.                                      Allocation of Purchase Price.  Pursuant to Section 5.i of the Agreement, Purchaser and Seller hereby agree that the allocation of the Purchase Price set forth on Exhibit D attached to the Agreement is hereby confirmed.

 

3.                                      Capitalized Terms. Capitalized terms used in this Amendment and not otherwise defined shall have the meaning ascribed to them in the Agreement.

 

4.                                      No Further Amendment. All remaining terms, conditions and provisions contained in the Agreement shall remain unmodified and in full force and effect.

 

5.                                      Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The submission of a signature page transmitted by electronic transmission, including PDF via email, shall be considered an “original” signature page for the purposes of this Amendment.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date.

 

	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
LODGING   FUND REIT III OP, LP
    
	
 
    	
 
    
	
 
    	
By:
    	
Lodging   Fund REIT III, Inc., General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
  /s/   Dave Durell
    
	
 
    	
 
    	
Name:   Dave Durell
    
	
 
    	
 
    	
Title:   Chief Acquisition Officer
    
	
 
    	
 
    
	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
EAGAN   LODGING INVESTORS II, LLC
    
	
 
    	
 
    
	
 
    	
By:   
    	
North   Central Group, Inc., Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
  /s/   David A. Lenz
    
	
 
    	
 
    	
David   A. Lenz, Founder and Chairman
    

 

2Exhibit 10.40

 

SECOND AMENDMENT TO HOTEL PURCHASE AND SALE AGREEMENT

 

THIS SECOND AMENDMENT TO HOTEL PURCHASE AND SALE AGREEMENT (this “Amendment”) is made and entered into as of June 3, 2019 (the “Effective Date”), by and between LODGING FUND REIT III OP, LP, a Delaware limited partnership (“Purchaser”), and EAGAN LODGING INVESTORS II, LLC, a Wisconsin limited liability company (“Seller”).

 

RECITALS:

 

A.                                    Purchaser and Seller are parties to that certain Hotel Purchase and Sale Agreement as amended, dated as of April 10, 2019 (the “Agreement”) with respect to the purchase and sale of the Hampton Inn located at 3000 Eagandale Place, Eagan, Minnesota 55121, as more particularly described in the Agreement; and

 

B.                                    Purchaser and Seller desire to amend the Agreement as set forth in this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller agree as follows:

 

1.                                      Reinstatement.  Seller and Purchaser hereby agree that except as modified herein, the Agreement as amended, is in full force and effect.

 

2.                                      Purchase Price.  Seller and Buyer agree that the Purchase Price shall be Thirteen Million Nine Hundred Fifty Thousand Dollars and No/100 ($13,950,000.00).

 

3.                                      Additional Earnest Money Deposit. Within two (2) business day after execution of this Amendment, Buyer will deposit an additional two hundred fifty thousand dollars ($250,000.00) as a Second Earnest Money Deposit. Upon execution of this Amendment, all contingencies are removed, and the Earnest Money and Second Earnest Money Deposit are both non-refundable.

 

4.                                      Closing Date. Seller and Buyer agree that paragraph 4 of the Agreement is hereby amended to reflect a Closing Date of June 21, 2019. In addition, paragraph 4 shall read that the Buyer reserves a unilateral right to extend the closing date for an additional seven (7) days, and if Buyer exercises its option to extend, Buyer will make an additional one-time non-refundable earnest money deposit of two hundred fifty thousand dollars ($250,000.00).

 

5.                                      Capitalized Terms. Capitalized terms used in this Amendment and not otherwise defined shall have the meaning ascribed to them in the Agreement.

 

6.                                      No Further Amendment. All remaining terms, conditions and provisions contained in the Agreement shall remain unmodified and in full force and effect.

 

7.                                      Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.

 

 

The submission of a signature page transmitted by electronic transmission, including PDF via email, shall be considered an “original” signature page for the purposes of this Amendment.

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date.

 

	
 
    	
PURCHASER:
    
	
 
    	
 
    
	
 
    	
LODGING   FUND REIT III OP, LP
    
	
 
    	
 
    
	
 
    	
By:   
    	
Lodging   Fund REIT III, Inc., General Partner
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
  /s/   Dave Durell
    
	
 
    	
 
    	
Name:   Dave Durell
    
	
 
    	
 
    	
Title:   Chief Acquisition Officer
    
	
 
    	
 
    
	
 
    	
SELLER:
    
	
 
    	
 
    
	
 
    	
EAGAN   LODGING INVESTORS II, LLC
    
	
 
    	
 
    
	
 
    	
By:   
    	
North   Central Group, Inc., Manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
  /s/   Jeffrey S. Lenz
    
	
 
    	
 
    	
Jeffrey   S. Lenz, PresidentExhibit 10.41

 

ASSIGNMENT OF HOTEL PURCHASE AND SALE AGREEMENT

 

This Assignment of Hotel Purchase and Sale Agreement (the “Assignment”) is entered into on or as of June 19, 2019. The parties to this Assignment are Lodging Fund REIT III OP, LP, a Delaware limited partnership (the “Assignor”), LF3 Eagan, LLC a Delaware limited liability company, and LF3 Eagan TRS, LLC, a Delaware limited liability company (collectively, the “Assignee”); all entities have an address of 1635 43rd Street South, Suite 305, Fargo, North Dakota 58103.

 

INTRODUCTORY STATEMENTS

 

A. The Assignor entered into Hotel Purchase and Sale Agreement effective as of April 10, 2019, (a copy of the Hotel Purchase and Sale Agreement, as amended, is attached to this Assignment as Exhibit A) with respect to the purchase of a hotel business.

 

B. The Assignor and Assignee desire that Assignor assign its interest in the Hotel Purchase and Sale Agreement to Assignee under the terms and conditions set forth in this Agreement.

 

C.  Unless otherwise agreed upon, at closing, LF3 Eagan, LLC will take ownership of the Real Estate and LF3 Eagan TRS, LLC will take ownership of all other assets.

 

In consideration of the above Introductory Statements, and the promises and provisions set forth in this Assignment, the parties agree as follows:

 

1.              Assignment.  Assignor assigns to Assignee all of Assignor’s right, title, and interest in and to the Hotel Purchase and Sale Agreement, as amended.

 

2.              Acceptance by Assignee. Assignee accepts the Assignment and all rights accruing to it under the Hotel Purchase and Sale Agreement, as amended, and assumes and agrees to perform all covenants and obligations of the Assignor under the Hotel Purchase and Sale Agreement, as amended, from and after this Assignment’s Effective Date.

 

3.              Release of Assignor’s Liability. This Assignment does not relieve Assignor of any of its obligations to Seller under the Asset Purchase Agreement.

 

4.              Effective Date. This Assignment shall be effective upon signing.

 

5.              Counterparts; Facsimile Signatures. This Assignment may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Assignment by telecopier or electronic mail shall be as effective as delivery of a manually executed signature page to this Agreement.

 

 

The parties have executed this Assignment as of the date listed below each party’s signature.

 

 

	
 
    	
ASSIGNOR
    
	
 
    	
 
    
	
 
    	
Lodging Fund   REIT III OP, LP
    
	
 
    	
a Delaware   limited partnership
    
	
 
    	
 
    
	
 
    	
By:
    	
Lodging Fund   REIT III, Inc.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
/s/ Samuel C. Montgomery
    
	
 
    	
By:
    	
Samuel C.   Montgomery
    
	
 
    	
Its:
    	
Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
ASSIGNEE
    
	
 
    	
 
    
	
 
    	
LF3 Eagan, LLC
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
BY:
    	
Lodging Fund REIT III OP, LP
    
	
 
    	
ITS:
    	
Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Lodging Fund REIT III, Inc.
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Samuel C. Montgomery
    
	
 
    	
By:
    	
Samuel C.   Montgomery
    
	
 
    	
Its:
    	
Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LF3 Eagan TRS, LLC
    
	
 
    	
a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
BY:
    	
Lodging Fund REIT III TRS, Inc.
    
	
 
    	
ITS:
    	
Sole Member
    
	
 
    	
 
    
	
 
    	
/s/   Samuel C. Montgomery
    
	
 
    	
By:
    	
Samuel C.   Montgomery
    
	
 
    	
Its:
    	
Chief Operating Officer

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