Document:

Exhibit 10.25 

Cedar Rapids, IA (HI&S) 

PURCHASE CONTRACT

between

COLLINS HOSPITALITY, INC., an Iowa
corporation (“SELLER”)

AND

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

Dated: April 4, 2011

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page No.

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 	
 DEFINED TERMS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1

 	
  

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

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

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
  

 	
 Purchase and
 Sale

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
  

 	
 Purchase
 Price

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.3

 	
  

 	
 Allocation

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.4

 	
  

 	
 Payment

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.5

 	
  

 	
 Earnest
 Money Deposit

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 REVIEW PERIOD

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
  

 	
 Review
 Period

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
  

 	
 Due
 Diligence Examination

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
  

 	
 Restoration

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.4

 	
  

 	
 Seller
 Exhibits

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 SURVEY AND TITLE APPROVAL

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
  

 	
 Survey

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.2

 	
  

 	
 Title

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.3

 	
  

 	
 Survey or
 Title Objections

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
 TERMINATION OF MANAGEMENT AGREEMENT

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
 BROKERS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
  

 	
 Seller’s
 Representations, Warranties and Covenants

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
  

 	
 Buyer’s
 Representations, Warranties and Covenants

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
  

 	
 Survival

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
 ADDITIONAL COVENANTS

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
  

 	
 Subsequent Developments

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.2

 	
  

 	
 Operations

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.3

 	
  

 	
 Third Party
 Consents

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.4

 	
  

 	
 Employees

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.5

 	
  

 	
 Estoppel
 Certificates

 	
  

 	
 18

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.6

 	
  

 	
 Access to
 Financial Information

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.7

 	
  

 	
 Bulk Sales

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.8

 	
  

 	
 Indemnification

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.9

 	
  

 	
 Escrow Funds

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
 CONDITIONS FOR CLOSING

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1

 	
  

 	
 Buyer’s
 Conditions for Closing

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.2

 	
  

 	
 Seller’s
 Conditions for Closing

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
 CLOSING AND CONVEYANCE

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1

 	
  

 	
 Closing

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.2

 	
  

 	
 Deliveries
 of Seller

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.3

 	
  

 	
 Buyer’s
 Deliveries

 	
  

 	
 24

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
 COSTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1

 	
  

 	
 Seller’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.2

 	
  

 	
 Buyer’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XII

 	
 ADJUSTMENTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.1

 	
  

 	
 Adjustments

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.2

 	
  

 	
 Reconciliation
 and Final Payment

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.3

 	
  

 	
 Employees

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIII

 	
 CASUALTY AND CONDEMNATION

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.1

 	
  

 	
 Risk of
 Loss; Notice

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.2

 	
  

 	
 Buyer’s
 Termination Right

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.3

 	
  

 	
 Procedure
 for Closing

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIV

 	
 DEFAULT REMEDIES

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.1

 	
  

 	
 Buyer
 Default

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.2

 	
  

 	
 Seller
 Default

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.3

 	
  

 	
 Attorney’s
 Fees

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XV

 	
 NOTICES

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVI

 	
 MISCELLANEOUS

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.1

 	
  

 	
 Performance

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.2

 	
  

 	
 Binding
 Effect; Assignment

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.3

 	
  

 	
 Entire
 Agreement

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.4

 	
  

 	
 Governing
 Law

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.5

 	
  

 	
 Captions

 	
  

 	
 30

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.6

 	
  

 	
 Confidentiality

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.7

 	
  

 	
 Closing
 Documents

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.8

 	
  

 	
 Counterparts

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.9

 	
  

 	
 Severability

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.10

 	
  

 	
 Interpretation

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.11

 	
  

 	
 (Intentionally
 Omitted)

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.12

 	
  

 	
 Further Acts

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.13

 	
  

 	
 Joint and
 Several Obligations

 	
  

 	
 31

 

	
  

 	
  

 	
  

 
	
 SCHEDULES:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Schedule 3.1

 	
  

 	
 Due
 Diligence List

 
	
  

 	
  

 	
  

 
	
 EXHIBITS:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Exhibit A

 	
  

 	
 Legal
 Description

 
	
 Exhibit B

 	
  

 	
 List of
 FF&E

 
	
 Exhibit C

 	
  

 	
 List of
 Hotel Contracts

 
	
 Exhibit D

 	
  

 	
 Consents and
 Approvals

 
	
 Exhibit E

 	
  

 	
 Environmental
 Reports

 
	
 Exhibit F

 	
  

 	
 Claims or
 Litigation Pending

 
	
 Exhibit G

 	
  

 	
 Escrow
 Agreement

 

iii

PURCHASE CONTRACT

          This
PURCHASE CONTRACT (this “Contract”)
is made and entered into as of April 4, 2011, by and between COLLINS
HOSPITALITY, INC., an Iowa corporation (“Seller”)
with a principal office at 1701 Mt. Pleasant St., Suite 1, Burlington, Iowa
52601 and APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, with
its principal office at 814 East Main Street, Richmond, Virginia 23219, or its
affiliates or assigns (“Buyer”).

RECITALS

          A.
Seller is the fee simple owner of that certain hotel property commonly known as
the Hampton Inn & Suites Cedar Rapids North, located at 1130 Park Place NE,
Cedar Rapids, IA 52402, containing, among other things, 103 guestrooms and
guest suites (the “Hotel”)
identified in on Exhibit A
attached hereto and incorporated by reference. 

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

AGREEMENT:

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

ARTICLE I

DEFINED TERMS

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

          “Additional
Deposit” shall mean $100,000. 

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

          “Appurtenances”
shall mean all rights, titles, and interests of Seller appurtenant to the Land
and Improvements, including, but not limited to, (i) all easements, rights of
way, rights of ingress and egress, tenements, hereditaments, privileges, and
appurtenances in any way belonging to the Land or Improvements, (ii) any land
lying in the bed of any alley, highway, street, road or avenue, open or
proposed, in front of or abutting or adjoining the Land, (iii) any strips or
gores of real estate adjacent to the Land, and (iv) the use of all alleys,
easements and rights-of-way, if any, abutting, adjacent, contiguous to or
adjoining the Land. 

1

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

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

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

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

          “Contracts,
Plans and Specs” shall mean all construction and other contracts, plans,
drawings, specifications, surveys, soil reports, engineering reports,
inspection reports, and other technical descriptions and reports. 

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

          “Deposits”
shall mean, to the extent assignable, all prepaid rents and deposits
(including, without limitation, any reserves for replacement of FF&E and
for capital repairs and/or improvements), refundable security deposits and
rental deposits, and all other deposits for advance reservations, banquets or
future services, made in connection with the use or occupancy of the
Improvements; provided, however, that to the extent Seller has not received or
does not hold all of the prepaid rents and/or deposits attributable to the
Leases related to the Property, Buyer shall be entitled to a credit against the
cash portion of the Purchase Price allocable to the Property in an amount equal
to the amount of the prepaid rents and/or deposits attributable to the Leases
transferred at the Closing of such Property, and provided further, that
“Deposits” shall exclude (i) reserves for real property taxes and insurance, in
each case, to the extent pro rated on the settlement statement such that Buyer
receives a credit for (a) taxes and premiums in respect of any period prior to
Closing and (b) the amount of deductibles and other self-insurance and all
other potential liabilities and claims in respect of any period prior to
Closing, and (ii) utility deposits. 

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

          “Earnest
Money Deposit” shall have the meaning set forth in Section 2.5(a).

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

          “Escrow
Agent” shall have the meaning set forth in Section 2.5(a).

          “Escrow
Agreement” shall have the meaning set forth in Section 2.5(b).

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

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

2

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

          “Existing
Manager” shall mean Hawkeye Hospitality Group, Inc., an Iowa corporation. 

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

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

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

          “Franchisor”
shall mean Hampton Inns Franchise LLC.

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

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

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

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

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

          “Initial
Deposit” shall have the meaning set forth in Section 2.5(a). 

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

3

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

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

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

          “Manager”
shall mean the entity Buyer chooses to manage the Hotel from and after Closing.

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

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

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

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

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

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

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

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

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

4

Property,
FF&E, Supplies, Leases, Deposits or Records: Service Contracts, Warranties,
Licenses, Tradenames, Contracts, Plans and Specs and FF&E Lease. 

          “Purchase
Price” shall have the meaning set forth in Section 2.2. 

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

          “Records”
shall mean all books, records, promotional material, tenant data, guest history
information (other than any such information owned exclusively by the Existing
Manager), marketing and leasing material and forms (including but not limited
to any such records, data, information, material and forms in the form of
computerized files located at the Hotel), market studies prepared in connection
with Seller’s current annual plan and other materials, information, data, legal
or other documents or records (including, without limitation, all documentation
relating to any litigation or other proceedings, all zoning and/or land use
notices, relating to or affecting the Property, all business plans and
projections and all studies, plans, budgets and contracts related to the
development, construction and/or operation of the Hotel) owned by Seller and/or
in Seller’s possession or control, or to which Seller has access or may obtain
from the Existing Manager, that are used in or relating to the Property and/or
the operation of the Hotel, including the Land, the Improvements or the
FF&E, and proforma budgets and projections and construction budgets and
contracts related to the development and construction of the Hotel and a list
of the general contractors, architects and engineers providing goods and/or
services in connection with the construction of the Hotel, all construction
warranties and guaranties in effect at Closing and copies of the final plans
and specifications for the Hotel. 

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

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

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

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

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

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

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

5

clubs, spas,
fitness centers, restaurants, business centers, meeting rooms and other common
areas and recreational areas. 

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

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

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

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

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

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

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

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

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

ARTICLE II

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT 

          2.1
Purchase and Sale. Seller agrees to sell and convey to Buyer or its
Affiliates and/or assigns, and Buyer or its assigns agrees to purchase from
Seller, the Property, in consideration of the Purchase Price and upon the terms
and conditions hereof. All of the 

6

Property shall
be conveyed, assigned, and transferred to Buyer at Closing, free and clear of
all mortgages, liens, encumbrances, licenses, franchises (other than any hotel
franchises assumed by Buyer), concession agreements, security interests, prior
assignments or conveyances, conditions, restrictions, rights-of-way, easements,
encroachments, claims and other matters affecting title or possession, except
for the Permitted Exceptions. 

          2.2
Purchase Price. Buyer agrees to pay, and Seller agrees to accept, as
consideration for the conveyance of the Property, subject to the adjustments
provided for in this Contract, the amount of Thirteen Million and No/100
Dollars ($13,000,000.00) (the “Purchase
Price”). 

          2.3
Allocation. Buyer and Seller shall attempt to agree, prior to the
expiration of the Review Period, on an allocation of the Purchase Price among
Real Property, tangible Personal Property and intangible property related to
the Property. In the event Buyer and Seller do not agree, each party shall be
free to allocate the Purchase Price to such items as they deem appropriate,
subject to and in accordance with applicable laws. 

          2.4
Payment. The portion of the Purchase Price, less the Earnest Money
Deposit and interest earned thereon, if any, which Buyer elects to have applied
against the Purchase Price (as provided below), less the Escrow Funds, shall be
paid to Seller in cash, certified funds or wire transfer, at the Closing of the
Property. At the Closing, the Earnest Money Deposit, together with interest
earned thereon, if any, shall, at Buyer’s election, be returned to Buyer or
shall be paid over to Seller by Escrow Agent to be applied to the portion of
the Purchase Price on behalf of Buyer, and the Escrow Funds shall be deposited
into an escrow account pursuant to the Post-Closing Agreement as contemplated
by Section 8.9. 

          2.5
Earnest Money Deposit. 

                    (a)
Within three (3) Business Days after the full execution and delivery of this
Contract, Buyer shall deposit the sum of One Hundred Thousand and No/100
Dollars ($100,000.00) in cash, certified bank check or by wire transfer of
immediately available funds (the “Initial
Deposit”) with the Title Company, as escrow agent (“Escrow Agent”), which sum shall be held
by Escrow Agent as earnest money. If, pursuant to the provisions of Section 3.1
of this Contract, Buyer elects to terminate this Contract at any time prior to
the expiration of the Review Period, then the Escrow Agent shall return the Earnest
Money Deposit to Buyer promptly upon written notice to that effect from Buyer.
If Buyer does not elect to terminate this Contract on or before the expiration
of the Review Period, Buyer shall, within three (3) Business Days after the
expiration of the Review Period deposit the Additional Deposit with the Escrow
Agent. The Initial Deposit and the Additional Deposit, and all interest accrued
thereon, shall hereinafter be referred to as the “Earnest Money Deposit.” 

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

7

ARTICLE III

REVIEW PERIOD

          3.1
Review Period. Buyer shall have a period through 6:00 p.m. Eastern Time
on the date that is sixty (60) days after the date of this Contract, unless a
longer period of time is otherwise provided for in this Contract and except as
otherwise agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey,
construction, physical condition, structural, mechanical, environmental,
economic, permit status, franchise status, financial and other documents and
information related to the Property. Within two (2) Business Days following the
date of this Contract, Seller, at Seller’s sole cost and expense, will deliver
to Buyer (or make available at the Hotel) for Buyer’s review, to the extent not
previously delivered to Buyer, true, correct and complete copies of the
following, together with all amendments, modifications, renewals or extensions
thereof: 

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

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

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

                    (d)
Engineering, mechanical, architectural and construction plans, drawings,
specifications and contracts, payment and performance bonds, title policies,
reports and commitments, zoning information and marketing and economic data
relating to the Hotel and the construction, development, installation and
equipping thereof, as well as copies of all environmental reports and
information, topographical, boundary or “as built” surveys, engineering
reports, subsurface studies and other Contracts, Plans and Specs relating to or
affecting the Hotel. If the Hotel is purchased by Buyer, all such documents and
information relating to the Hotel shall thereupon be and become the property of
Buyer without payment of any additional consideration therefor; 

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

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

8

                    (g)
Any other information described on Schedule 3.1 attached hereto. 

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

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

          3.3
Restoration. Buyer covenants and agrees not to damage or destroy any
portion of the Property in conducting its examinations and studies of the
Property during the Due Diligence Examination and, if closing does not occur,
shall repair any portion of the Property damaged by the conduct of Buyer, its
agents or employees, to substantially the condition such portion(s) of the
Property were in immediately prior to such examinations or studies. 

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

9

ARTICLE IV

SURVEY AND TITLE APPROVAL 

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

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

          4.3
Survey or Title Objections. If Buyer discovers any title or survey
matter which is objectionable to Buyer, Buyer may provide Seller with written
notice of its objection to same on or before the expiration of the Review
Period (the “Title Review Period”).
If Buyer fails to so object in writing to any such matter set forth in the
Survey or Title Commitment, it shall be conclusively assumed that Buyer has
approved same. If Buyer disapproves any condition of title, survey or other
matters by written objection to Seller on or before the expiration of the Title
Review Period, Seller shall elect either to attempt to cure or not cure any
such item by written notice sent to Buyer within five (5) days after its
receipt of notice from Buyer, and if Seller commits in writing to attempt to
cure any such item, then Seller shall be given until the Closing Date to cure
any such defect. In the event Seller shall fail to cure a defect which Seller
has committed in writing to cure prior to Closing, or if a new title defect
arises after the date of Buyer’s Title Commitment or Survey, as applicable, but
prior to Closing, then Buyer may elect, in Buyer’s sole and absolute
discretion: (i) to waive such objection and proceed to Closing, or (ii) to
terminate this Contract and receive a return of the Earnest Money Deposit, and
any interest thereon. The items shown on the Title Commitment which are not
objected to by Buyer as set forth above (other than exceptions and title
defects arising after the title review period and other than those standard
exceptions which are ordinarily and customarily omitted in the state in which
the applicable Hotel is located, so long as Seller provides the appropriate
owner’s affidavit, gap indemnity or other documentation reasonably required by
the Title Company for such omission) are hereinafter referred to as the “Permitted Exceptions.” In no event
shall Permitted 

10

Exceptions
include liens, or documents evidencing liens, securing any indebtedness
(including vehicle or FF&E leases or financing arrangements) any mechanics’
or materialmen’s liens or any claims or potential claims therefor covering the
Property or any portion thereof (“Seller
Liens”), each of which shall be paid in full by Seller and
released at Closing. If a vehicle or FF&E lease or other financing cannot
be released at Closing, Seller shall credit Buyer at Closing with the amount
necessary to fully pay off such lease or financing over its term. 

ARTICLE V

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT 

          At
or prior to the Closing, Seller shall terminate the Existing Management
Agreement and the Existing Franchise Agreement, and Seller shall be solely
responsible for all claims and liabilities arising thereunder on, prior to or
following the Closing Date, including outstanding fees, charges or costs and
further including the repayment of any key money, if any. As a condition to
Closing, Buyer shall enter into the New Franchise Agreement, effective as of
the Closing Date, containing terms and conditions acceptable to Buyer. Seller
shall be responsible for paying all costs related to the termination of the
Existing Management Agreement. Buyer shall be responsible for paying all
reasonable and actual costs of the Franchisor related to the assignment or
termination, as applicable, of the Existing Franchise Agreement. Seller shall
use best efforts to promptly provide all information required by the Franchisor
in connection with the New Franchise Agreement, and Seller and Buyer shall
diligently pursue obtaining each the same. 

ARTICLE VI

BROKERS

          Seller
and Buyer each represents and warrants to the other that it has not engaged any
broker, finder or other party in connection with the transaction contemplated
by this Contract, except for Hotel Assets Group (the “Broker”), which Broker shall be entitled to
a commission from Seller upon the sale of the Property under a separate
agreement with Seller. Buyer and Seller each agree to save and hold the other
harmless from any and all losses, damages, liabilities, costs and expenses
(including, without limitation, attorneys’ fees) involving claims made by any
other agent, broker, or other person by or through the acts of Buyer or Seller,
respectively, in connection with this transaction.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS 

          7.1
Seller’s Representations, Warranties and Covenants. Seller hereby
represents, warrants and covenants to Buyer as follows: 

                    (a)
Authority; No Conflicts. Seller is a corporation duly formed, validly
existing and in good standing in the State of Iowa. Seller has obtained all necessary
consents to enter into and perform this Contract and is fully authorized to
enter into and perform this Contract and to complete the transactions
contemplated by this Contract. No consent or approval of any person, entity or
governmental authority is required for the execution, delivery or performance
by Seller of this Contract, except as set forth in Exhibit D, and this Contract
is hereby binding and enforceable against Seller. Neither the execution nor the
performance of, or  

11

compliance
with, this Contract by Seller has resulted, or will result, in any violation
of, or default under, or acceleration of, any obligation under any existing
corporate charter, certificate of incorporation, bylaw, articles of
organization, limited liability company agreement or regulations, partnership
agreement or other organizational documents and under any, mortgage indenture,
lien agreement, promissory note, contract, or permit, or any judgment, decree,
order, restrictive covenant, statute, rule or regulation, applicable to Seller
or to the Hotel. 

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

                    (c)
Bankruptcy. Neither Seller, nor to Seller’s knowledge, any of its
partners or members, is insolvent or the subject of any bankruptcy proceeding,
receivership proceeding or other insolvency, dissolution, reorganization or
similar proceeding. 

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

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

12

agencies,
unremedied orders by such agencies or judicial proceedings or orders with
respect to obligations under city, state or federal civil or human rights or
antidiscrimination laws or executive orders affecting the Hotel, or other
pending, actual or, to Seller’s knowledge, threatened litigation claims,
charges, complaints, petitions or unsatisfied orders by or before any
administrative agency or court which affect the Hotel or might become a lien on
the Hotel (collectively, the “Pending
Claims”). 

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

13

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

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

                    (i)
Licenses, Permits and Approvals. Seller has not received any written notice,
and Seller has no knowledge that the Property fails to materially comply with
all applicable licenses, permits and approvals and federal, state or local
statutes, laws, ordinances, rules, regulations, requirements and codes
including, without limitation, those regarding zoning, land use, building,
fire, health, safety, environmental, subdivision, water quality, sanitation
controls and the Americans with Disabilities Act, and similar rules and
regulations relating and/or applicable to the ownership, use and operation of
the Property as it is now operated. Seller has received all licenses, permits
and approvals required or needed for the lawful conduct, occupancy and
operation of the business of the Hotel, and each license and permit is in full
force and effect, and will be received and in full force and effect as of the
Closing. No licenses, permits or approvals necessary for the lawful conduct,
occupancy or operation of the business of the Hotel, to Seller’s knowledge
requires any approval of a governmental authority for transfer of the Property
except as set forth in Exhibit D.  

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

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

14

collective
bargaining or other labor agreements to which Seller or the Existing Manager or
the Hotel is bound with respect to any employees employed at the Hotel. 

                    (l)
Operations. The Hotel has at all times been operated by Existing Manager
in accordance with all applicable laws, rules, regulations, ordinances and
codes. 

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

                    (n)
Construction of Hotel. To the actual knowledge of Seller, without
investigation: 

	
  

 	
  

 
	
  

 	
                     (i)
 The Hotel has been constructed in a good and workmanlike manner without
 encroachments and in accordance in all material respects with the Contracts,
 Plans and Specs, and all building permits and certificates of occupancy
 therefor and all applicable zoning, platting, subdivision, health, safety and
 similar laws, rules, regulations, ordinances and codes. 

 
	
  

 	
  

 
	
  

 	
                     (ii)
 The Personal Property is in good condition and operating order. 

 
	
  

 	
  

 
	
  

 	
                     (iii)
 Necessary easements for ingress and egress, drainage, signage and utilities
 serving the Hotel have either been dedicated to the public, conveyed to the
 appropriate utility or will be conveyed to Buyer along with the Property. 

 

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

                    (a)
Authority. Buyer is a corporation duly formed, validly existing and in
good standing in the Commonwealth of Virginia. Buyer has received or will have
received by the applicable Closing Date all necessary authorization of the
Board of Directors of Buyer to 

15

complete the
transactions contemplated by this Contract. No other consent or approval of any
person, entity or governmental authority is required for the execution,
delivery or performance by Buyer of this Contract, and this Contract is hereby
binding and enforceable against Buyer. 

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

          7.3
Survival. All of the representations and warranties are true, correct
and complete in all material respects as of the date hereof and the statements
set forth therein (without qualification or limitation as to a party’s
knowledge thereof except as expressly provided for in this Article VII) shall
be true, correct and complete in all material respects as of the Closing Date.
All of the representations and warranties made herein shall survive Closing for
a period of twelve (12) months and shall not be deemed to merge into or be
waived by the Deed or any other closing documents. 

ARTICLE VIII

ADDITIONAL COVENANTS

          8.1
Subsequent Developments. After the date of this Contract and until the
Closing Date, Seller shall use best efforts to keep Buyer fully informed of all
subsequent developments of which Seller has knowledge (“Subsequent Developments”) which would
cause any of Seller’s representations or warranties contained in this Contract
to be no longer accurate in any material respect. 

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

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

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

16

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

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

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

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

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

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

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

          Neither
Seller nor Existing Manager shall, without first obtaining the written approval
of Buyer, which approval shall not be unreasonably withheld, enter into any new
FF&E Leases, Service Contracts, Leases or other contracts or agreements
related to the Hotel, or extend any existing such agreements, unless such
agreements (x) can be terminated, without payment or penalty, upon thirty (30)
days’ prior notice or (y) will expire prior to the Closing Date. 

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

17

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

          8.5
Estoppel Certificates. Seller shall obtain from (i) each tenant under
any Lease affecting the Hotel (but not from current or prospective occupants of
hotel rooms and suites within the Hotel), (ii) each lessor under any FF&E
Lease for the Hotel identified by Buyer as a material FF&E Lease, and (iii)
each declarant, property owners’ association or similar entity have authority
over the development of which the Property is a part, if any, the estoppel
certificates substantially in the forms provided by Buyer to Seller, and
deliver to Buyer on or before Closing. The information contained in such
estoppel certificates shall be subject to Buyer’s reasonable approval and shall
contain no materially adverse information (e.g., no defaults by the Property as
to use, construction or otherwise and no past due fees, dues, charges or
assessments). 

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

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

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

                    (a)
Indemnification of Buyer. Without in any way limiting or diminishing the
warranties, representations or agreements herein contained or the rights or
remedies available to Buyer for a breach hereof, Seller hereby agrees to
indemnify, defend and hold harmless Buyer and its respective designees,
successors and assigns from and against all losses, judgments, 

18

liabilities,
claims, damages or expenses (including reasonable attorneys’ fees) of every
kind, nature and description in existence before, on or after Closing, whether
known or unknown, absolute or continent, joint or several, arising out of or
relating to: 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the material breach of any representation, warranty, covenant or agreement of
 Seller contained in this Contract, except to the extent that Buyer had actual
 knowledge of such breach prior to Closing; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

	
  

 	
  

 
	
  

 	
                               (i)
 the breach of any representation, warranty, covenant or agreement of Buyer
 contained in this Contract, except to the extent that Seller had actual
 knowledge of such breach prior to Closing; 

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the conduct and operation by Buyer of its business at the Hotel after the
 Closing; and 

 
	
  

 	
  

 
	
  

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

 

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

	
  

 	
  

 
	
  

 	
                               (i)
 The party seeking indemnification (the “Indemnified
 Party”) shall give prompt written notice to the party or
 parties from which it is seeking indemnification (the “Indemnifying Party”) of any assertion
 of liability by a third party which might give rise to a claim for
 indemnification based on the foregoing provisions of 

 

19

	
  

 	
  

 
	
  

 	
 this Section
 8.8, which notice shall state the nature and basis of the assertion and the
 amount thereof, to the extent known; provided, however, that no delay on the
 part of the Indemnified Party in giving notice shall relieve the Indemnifying
 Party of any obligation to indemnify unless (and then solely to the extent
 that) the Indemnifying Party is prejudiced by such delay. 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
                               (iv)
 In any Legal Action initiated by a third party and defended by the
 Indemnifying Party (w) the Indemnified Party shall have the right to be
 represented by advisory counsel and accountants, at its own expense, (x) the
 Indemnifying Party shall keep the Indemnified Party fully informed as to the
 status of such Legal Action at all stages thereof, whether or not the
 Indemnified Party is represented by its own counsel, (y) the Indemnifying
 Party shall make available to the Indemnified Party and its attorneys,
 accounts and other representatives, all books and 

 

20

	
  

 	
  

 
	
  

 	
 records of
 Seller relating to such Legal Action and (z) the parties shall render to each
 other such assistance as may be reasonably required in order to ensure the
 proper and adequate defense of such Legal Action. 

 
	
  

 	
  

 
	
  

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

 

          8.9
Escrow Funds. To provide for the timely payment of any post-closing
claims by Buyer against Seller hereunder, at Closing, Seller shall deposit an
amount equal to Two Hundred Thousand and No/100 Dollars ($200,000.00) (the “Escrow Funds”) which shall be withheld
from the Purchase Price payable to Seller and shall be deposited for a period
of nine (9) months in an escrow account with the Title Company pursuant to an
escrow agreement reasonably satisfactory in form and substance to Buyer and
Seller (the “Post-Closing Agreement”),
which escrow and Post-Closing Agreement shall be established and entered into
at Closing and shall be a condition to Buyer’s obligations under this Contract.
If no claims have been asserted by Buyer against Seller, or all such claims
have been satisfied, within such nine (9) month period, the Escrow Funds
deposited by Seller shall be released to Seller. 

          8.10
Intentionally Omitted. 

ARTICLE IX

CONDITIONS FOR CLOSING 

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

                    (a)
All of Seller’s representations and warranties contained in or made pursuant to
this Contract shall be true and correct in all material respects as if made
again on the Closing Date; provided, however, in the event Buyer has actual
knowledge of any inaccuracy of Seller’s representations or warranties in any
material respect prior to the end of the Review Period and Buyer does not
object to such inaccuracy prior to the end of the Review Period, then 

21

Buyer shall be
deemed to have waived its right to declare this Contract terminated as a result
of such inaccuracy.

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

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

                    (d)
Intentionally Omitted.

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

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

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

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

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

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

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

22

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

ARTICLE X

CLOSING AND CONVEYANCE

          10.1
Closing. Unless otherwise agreed by Buyer and Seller, the Closing on the
Property shall occur on a date selected by Buyer that is the later of (a)
fifteen (15) business days after expiration of the Review Period or (b) the
date Buyer receives the New Franchise Agreement executed by the Franchisor,
provided in either case that all conditions to Closing by Buyer hereunder have
been satisfied. The date on which the Closing is to occur as provided in this
Section 10.1, or such other date as may be agreed upon by Buyer and Seller, is
referred to in this Contract as the “Closing Date” for the Property. The
Closing shall be held via escrow at the offices of the Title Company, or as
otherwise determined by Buyer and Seller. 

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

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

                    (b)
Bills of Sale. Bills of sale to Buyer and/or its designated Lessee,
conveying title to the tangible Personal Property.

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

                    (d)
General Assignments. Assignments of all of Seller’s right, title and
interest in and to all FF&E Leases, Service Contracts and Leases identified
on Exhibit C hereto (the “Hotel Contracts”). The assignment shall
also be a general assignment and shall provide for the assignment of all of Seller’s
right, title and interest in all Records, Warranties, Licenses, Tradenames,
Contracts, Plans and Specs and all other intangible Personal Property
applicable to the Hotel. The assignments shall contain cross-indemnities by
Buyer and Seller for their respective periods of ownership.

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

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

23

Policy of
Title Insurance to Buyer insuring good and marketable fee simple absolute title
to the Real Property constituting part of the Property, subject only to the
Permitted Exceptions in the amount of the Purchase Price.

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

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

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

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

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

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

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

                    (a)
Purchase Price. The balance of the Purchase Price, adjusted for the
adjustments provided for in Section 12.1, below, and less any sums to be
deducted therefrom as provided in Section 2.4. 

                    (b)
Authority Documents. Certified copy of resolutions of the Board of
Directors of Buyer authorizing the purchase of the Hotel contemplated by this
Contract, and/or other evidence satisfactory to Seller and the Title Company
that the person or persons executing the closing documents on behalf of Buyer
have full right, power and authority to do so.

                    (c)
Miscellaneous. Such other instruments as are contemplated by this
Contract to be executed or delivered by Buyer, reasonably required by Seller or
the Title 

24

Company, or
customarily executed in the jurisdiction in which the Hotel is located, to
effectuate the conveyance of property similar to the Hotel, with the effect
that, after the Closing, Buyer will have succeeded to all of the rights,
titles, and interests of Seller related to the Hotel and Seller will no longer
have any rights, titles, or interests in and to the Hotel.

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

ARTICLE XI

COSTS

          All
Closing costs shall be paid as set forth below:

          11.1
Seller’s Costs. In connection with the sale of the Property contemplated
under this Contract, Seller shall be responsible for all transfer and
recordation taxes, including, without limitation, all transfer, mansion,
excise, sales, use or bulk transfer taxes or like taxes on or in connection
with the transfer of the Real Property and the Personal Property constituting
part of the Property pursuant to the Bill of Sale, and all accrued taxes of
Seller prior to Closing and income, sales and use taxes and other such taxes of
Seller attributable to the sale of the Property to Buyer. Seller shall be
responsible for all costs related to the termination of the Existing Management
Agreement as provided in Article V. Seller shall also be responsible for any
costs and expenses of its attorneys, accountants, appraisers and other
professionals, consultants and representatives. Seller shall also be
responsible for payment of all prepayment penalties and other amounts payable
in connection with the pay-off of any liens and/or indebtedness encumbering all
or any portion of the Property. 

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

ARTICLE XII

ADJUSTMENTS

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

25

shall be made
on an accrual basis in accordance with generally accepted accounting
principles. Buyer and Seller shall request that the Manager determine the
apportionments, allocations, prorations and adjustments as of the Cutoff Time.

                    (a)
Taxes. All real estate taxes, personal property taxes, or any other
taxes and special assessments (special or otherwise) of any nature upon the
Property levied, assessed or pending for the calendar year in which the Closing
occurs (including the period prior to Closing, regardless of when due and
payable) shall be prorated as of the Cutoff Time and, if no tax bills or
assessment statements for such calendar year are available, such amounts shall
be estimated on the basis of the best available information for such taxes and
assessments that will be due and payable on the Hotel for the calendar year in
which Closing occurs. Until final tax bills that cover the entire year during
which Closing occurred (such that tax liability can reasonably be determined),
Seller’s obligation to pay its share of taxes shall continue.

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

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

                    (d)
Accounts. All working capital accounts, reserve accounts and escrow
accounts (including all FF&E accounts, all PIP accounts, Franchisor
escrows, but excluding amounts held in tax and insurance escrow accounts and
utility deposits to the extent excluded from the definition of Deposits), shall
become the property of Buyer, without additional charge to Buyer and without
Buyer being required to fund the same. 

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

                    (f)
Room Rentals. All receipts from guest room rentals and other suite
revenues for the night in which the Cutoff Time occurs shall be split 50/50
between Buyer and Seller.

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

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

26

not specified
then to the Seller’s outstanding invoices to such account debtors in
chronological order beginning with the oldest invoices, and thereafter, to
Buyer’s account.

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

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

          12.2
Reconciliation and Final Payment. Seller and Buyer shall reasonably
cooperate after Closing to make a final determination of the allocations and
prorations required under this Contract within one hundred eighty (180) days
after the Closing Date; provided, however, failure to make a final
determination within such period shall not relieve the parties of the
obligation to make a final determination nor shall it relieve any party of the
obligation to pay the other any true-up amounts owed. Upon the final
reconciliation of the allocations and prorations under this Section, the party
which owes the other party any sums hereunder shall pay such party such sums
within ten (10) days after the reconciliation of such sums. The obligations to
calculate such prorations, make such reconciliations and pay any such sums
shall survive the Closing.

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

27

ARTICLE XIII

CASUALTY AND CONDEMNATION

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

          13.2
Buyer’s Termination Right. If, prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, (a) any
condemnation proceeding shall be pending against a substantial portion of the
Hotel or (b) there is any substantial casualty loss or damage to the Hotel,
Buyer shall have the option to terminate this Contract, provided Buyer delivers
written notice to Seller of its election within twenty (20) days after the date
Seller has delivered Buyer written notice of any such loss, damage or
condemnation as provided above, and in such event, the Earnest Money Deposit,
and any interest thereon, shall be delivered to Buyer and thereafter, except as
expressly set forth herein, no party shall have any further obligation or
liability to the other under this Contract. In the context of condemnation,
“substantial” shall mean condemnation of such portion of a Hotel (or access
thereto) as could, in Buyer’s reasonable judgment, render use of the remainder
impractical or unfeasible for the uses herein contemplated, and, in the context
of casualty loss or damage, “substantial” shall mean a loss or damage in excess
of One Hundred Thousand and No/100 Dollars ($100,000.00) in value.

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

ARTICLE XIV

DEFAULT REMEDIES

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

28

          14.2
Seller Default. If Seller defaults under this Contract, and such default
continues for thirty (30) days following written notice from Buyer, Buyer may
elect, as Buyer’s sole and exclusive remedy, either (i) to terminate this
Contract by written notice to Seller delivered to that Seller at any time prior
to the completion of such cure, in which event the Earnest Money Deposit,
including any interest thereon, shall be returned to the Buyer, Seller shall
reimburse Buyer for Buyer’s actual and verifiable due diligence costs and
expenses (not to exceed $50,000) and thereafter both the Buyer and Seller shall
thereupon be released from all obligations with respect to this Contract,
except as otherwise expressly provided herein; or (ii) to treat this Contract
as being in full force and effect by written notice to Seller delivered to
Seller at any time prior to the completion of such cure, in which event the
Buyer shall have the right to an action against the defaulting Seller for
specific performance. 

          14.3
Attorney’s Fees. Anything to the contrary herein notwithstanding, if it
shall be necessary for either the Buyer or Seller to employ an attorney to
enforce its rights pursuant to this Contract because of the default of the
other party, and the non-defaulting party is successful in enforcing such
rights, then the defaulting party shall reimburse the non-defaulting party for
the non-defaulting party’s reasonable attorneys’ fees, costs and expenses.

ARTICLE XV

NOTICES

          All
notices required herein shall be deemed to have been validly given, as
applicable: (i) if given by fax, when the fax is transmitted to the party’s fax
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, (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, or (v) if given by electronic mail, when the electronic mail is sent
to the address below:

	
 

	
 

	
 

	
 

	
 

	
If to Buyer:

	
 

	
Apple Ten
Hospitality Ownership, Inc.

	
 

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
 

	
Attention:
Sam Reynolds

	
 

	
 

	
 

	
Fax No.:
(804) 344-8129

	
 

	
 

	
 

	
Email:
sreynolds@applereit.com

	
 

	
 

	
 

	
 

	
 

	
with a copy
to:

	
 

	
Apple REIT
Ten, Inc.

	
 

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
 

	
Attention:
Legal Dept.

	
 

	
 

	
 

	
Fax No.:
(804) 727-6349

	
 

	
 

	
 

	
Email:
dbuckley@applereit.com

29

	
 

	
 

	
 

	
 

	
 

	
If to
Seller:

	
 

	
Collins
Hospitality, Inc.

	
 

	
 

	
 

	
1701 Mt.
Pleasant St., Suite 1

	
 

	
 

	
 

	
Burlington,
Iowa 52601

	
 

	
 

	
 

	
Attention:
Ravi Patel

	
 

	
 

	
 

	
Fax No.:
(562) 616-1555

	
 

	
 

	
 

	
Email:
ravi@hawkeyehotels.com

	
 

	
 

	
 

	
 

	
 

	
with a copy
to:

	
 

	
Stites &
Harbison PLLC

	
 

	
 

	
 

	
400 W.
Market Street, Suite 1800

	
 

	
 

	
 

	
Louisville,
Kentucky 40202

	
 

	
 

	
 

	
Attention:
Jamie L. Cox, Esq.

	
 

	
 

	
 

	
Fax No.:
(502) 779-8285

	
 

	
 

	
 

	
Email:
jcox@stites.com 

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

ARTICLE XVI

MISCELLANEOUS

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

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

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

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

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

          16.6
Confidentiality. Except as either party may reasonably determine is
required by law (including without limitation laws and regulations applicable
to Buyer or its Affiliates who may be public companies): (i) prior to Closing,
Buyer and Seller shall not disclose the existence of this Contract or their
respective intentions to purchase and sell the Property or generate or
participate in any publicity or press release regarding this transaction,
except to Buyer’s and Seller’s legal counsel and lender, Buyer’s consultants
and agents, the Manager, the Existing 

30

Manager, the
Franchisor and the Title Company and except as necessitated by Buyer’s Due
Diligence Examination and/or shadow management, unless both Buyer and Seller
agree in writing and as necessary to effectuate the transactions contemplated
hereby and (ii) following Closing, the parties shall coordinate any public
disclosure or release of information related to the transactions contemplated
by this Contract, and no such disclosure or release shall be made without the
prior written consent of Buyer, and no press release shall be made without the
prior written approval of Buyer and Seller. 

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

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

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

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

          16.11
Further Acts. In addition to the acts, deeds, instruments and agreements
recited herein and contemplated to be performed, executed and delivered by
Buyer and Seller, Buyer and Seller shall perform, execute and deliver or cause
to be performed, executed and delivered at the Closing or after the Closing,
any and all further acts, deeds, instruments and agreements and provide such
further assurances as the other party or the Title Company may reasonably
require to consummate the transaction contemplated hereunder.

          16.12
Joint and Several Obligations. If Seller consists of more than one
person or entity, each such person or entity shall be jointly and severally
liable with respect to the obligations of Seller under this Contract.

          16.13
Notice of Proposed Listing. In the event that the sale of the Property
contemplated by this Contract is consummated, if at any time during the five
(5) year period commencing on the date of execution of this Contract by Buyer
and Seller, Seller or any of its Affiliates propose to list for sale any hotel
property or properties owned, acquired, constructed or developed by Seller or
their Affiliates and located within a ten (10)-mile radius of the Hotel (any
such other hotel property being referred to as an “Other Property”),
Seller shall promptly 

31

deliver to
Buyer written notice thereof and Buyer shall have the right to see and
participate in the offering and/or otherwise make an offer to purchase any such
Other Property.

[Signatures Begin on Following Page]

32

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

	
 

	
 

	
 

	
 

	
 

	
 

	
SELLER:

	
 

	
 

	
 

	
 

	
 

	
COLLINS
HOSPITALITY, INC., an Iowa corporation

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ravi
Patel

	
 

	
 

	

	
 

	
Name: 

	
Ravi Patel

	
 

	
 

	

	
 

	
Title:  

	
Executive Vice President

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
BUYER:

	
 

	
 

	
 

	
 

	
 

	
 

	
APPLE TEN
HOSPITALITY OWNERSHIP, INC., a Virginia corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
  /s/
David Buckley

	
 

	
 

	

	
 

	
Name: 

	
David Buckley

	
 

	
 

	

	
 

	
Title: 

	
Vice President

	
 

	
 

	

33

EXHIBIT
“A”

LEGAL DESCRIPTION OF LAND

LOT 2, PARK PLACE FIRST
ADDITION IN THE CITY OF CEDAR RAPIDS, LINN COUNTY, IOWA, together with all
easements and servient estates

EXHIBIT B

LIST OF FF&E

	
 

	
HAMPTON
INN AND SUITES CEDAR RAPIDS IA

	
Total Rooms 103

	
QTY

	
20532AM-12-(finish) Double Night Stand Lamp 0

	
new number Double Night Stand Lamp with
outlets 59

	
20530AM12-(finish) Single Night Stand Lamp 0

	
new number Single Night Stand Lamp with
outlets 88

	
18532M-(finish) Desk Lamp w/ 2 outlets 103

	
30537M-(finish) Floor Lamp 37

	
11535M-(finish) Table Lamp @ Suite End Table 34

	
20545M-D-(finish) Wall Sconce bulbs included (direct
wire) 0

	
20592M-12-(finish) Welcome Sconce bulbs
included(w/plug & cord cover & on/off s/w) 49

	
1535-Black Welcome Light Behind TV @
Bachelors Chest 14

	
20545M-12-(finish) Wall Sconce bulbs included (w/plug
& cord cover & w/o on/off s/w) 6

	
8960K HEADBOARD, PANEL KING 44

	
8960Q HEADBOARD, PANEL QUEEN 118

	
Z8911-00-101B
NIGHTSTAND, 1-DRAWER SMALL 88

	
Z8911-00-109B
NIGHTSTAND, 1-DRAWER BIG 59

	
Z8947-00-120 DESK,
EXECUTIVE STRAIGHT LEG 1-DRAWER 44

	
Z8947-ADA-120 DESK,
EXECUTIVE STRAIGHT LEG NO DRAWER 4

	
Z8972L/R-00-101
DESK, WALL MOUNTED CORNER (29L/26R) 55

	
8923-V CHEST, TV/VCR
3-DRAWER 89

	
Z8923V-00-107 CHEST,
CORNER TV/VCR 3-DRAWER 14

	
8955 BENCH, DRESSING UPHOLSTERED
(FABRIC COM) 0

	
8951 BENCH, LUGGAGE
1-BENCH 55

	
Z8918-00-101 TABLE,
END STRAIGHT LEG 34

	
Z8948-00-101 TABLE,
COCKTAIL STRAIGHT LEG 34

	
8965-24 CABINET,
REFRIGERATOR/MICROWAVE 0

	
9406-40-000 COFFEE
SERVICE TABLE 1

	
7099 TOWEL RACKS 89

	
7045-00-102 WALL INSERT TOWEL BOX
14

	
9402SP2-00-055 BOW FRONT CURVED
LEG VANITY BASE 93

	
ART 100 Artwork 100 103

	
ART 101 Artwork 101 103

	
ART 102 Vanity Mirror 93

	
ART 104 Framed Mirror 103

	
ART 105 ADA Vanity Mirror 10

	
ART 106 Framed Mirror at Wet Bar
34

	
BEDB 100K BedBase King 38

	
BEDB 100Q BedBase Queen 110

	
BEDF 100K Bed Frame King 6

2

	
 

	
BEDF 100Q Bed Frame Queen 8

	
CPT 100 Carpet Guestrooms 4068

	
CPT 104 Carpet Pad Guestrooms 3634

	
DSKT 100 DUST Skirt King 44

	
DSKT 101 DUST Skirt Queen 118

	
PL 100 Plant Guestroom 34

	
PL 101 Plant Guestroom 103

	
RODS 100 Drapery Rods 246

	
Rods 101 Rod Stationary 205

	
RODS 102 Drapery Rods with ADA
Batons 28

	
UPH 100 Sofa Guest Rooms 34

	
UPH 101 Side Chair 100

	
UPH 102 Chaise Lounge 3

	
UPH 103 Ergo Chair 103

	
UPH 104 Luggage Bench (Fabric) 14

	
VWC 100 Wall Vinyl Guest Bath 103

	
WT 100 Stationary Panels
Guestrooms 137

	
WT 101 Sheers Guest Rooms 103

	
WT 102 Blackout Guestrooms 103

	
WT 103 Valance Guestrooms 137

	
WT 105 Long Sheers 34

	
WT 106 Long Blackout Drapes 34

	
Ice Machine 4

	
Laundry Washers 2

	
Laundry Dryers 2

	
Guest Laundry Washer -
Leased 1

	
Guest Laudry Dryer -
Leased 1

	
Printers 5

	
Fax - Multifunction 2

	
Frontdesk Computers 5

	
Business Center Computers 2

	
Suite Shop Freezer 1

	
Suite Shop Refrigerator 1

	
Breakfast Room Freezer 1

Breakfast room Refrigerator 1

3

EXHIBIT
C

LIST
OF HOTEL CONTRACTS

          EXHIBIT
C-1 - Seller’s Hotel Contracts

	
 

	
 

	
 

	
DMX

	
 

	
Sound System

	
Otis
Elevator

	
 

	
Elevator
Service

	
Jetz
Services

	
 

	
Washing
Machine 

          EXHIBIT
C-2 - Other Hotel Contracts

None

4

EXHIBIT
D

CONSENTS
AND APPROVALS

NONE

EXHIBIT
E

ENVIRONMENTAL
REPORTS

Phase I
Environmental Report prepared by URS Donald Brice, and dated 12/15/2010

EXHIBIT
F

CLAIMS
OR LITIGATION PENDING

NONE

-i-

EXHIBIT
G

ESCROW
AGREEMENT

          THIS
ESCROW AGREEMENT (this “Agreement”) made the ___ day of
_______, 2011 by and among COLLINS HOSPITALITY, INC., an Iowa corporation (“Seller”),
APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, or its assigns (“Buyer”),
and CHICAGO TITLE COMPANY (“Escrow Agent”).

R E C I T A L S

          WHEREAS,
pursuant to the provisions of Section 2.5 of that certain Purchase Contract
dated _______ ___, 2011 (the “Contract”) between Seller and Buyer (the “Parties”),
the Parties have requested Escrow Agent to hold in escrow in accordance with
the provisions, upon the terms, and subject to the conditions, of this
Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and

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

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

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

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

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

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

-ii-

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

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

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

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

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

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

-iii-

same is delivered
to Escrow Agent in writing, signed by the proper parties to Escrow Agent’s
satisfaction and, in the case of modification, unless such modification shall
be approved by Escrow Agent in writing.

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

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

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

	
 

	
 

	
 

	
 

	
(i)

	
If addressed
to Seller, to:

	
 

	
 

	
 

	
 

	
 

	
Collins
Hospitality, Inc.

	
 

	
 

	
1701 Mt.
Pleasant St., Suite 1

	
 

	
 

	
Burlington,
Iowa 52601

	
 

	
 

	
Attention:
Ravi Patel

	
 

	
 

	
Fax
No.:  (562) 616-1555

-iv-

	
 

	
 

	
 

	
 

	
(ii)

	
If addressed
to Buyer, to:

	
 

	
 

	
 

	
 

	
 

	
Apple Ten
Hospitality Ownership, Inc.

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
Attn: Sam
Reynolds

	
 

	
 

	
Fax
No.:  (804) 344-8129

	
 

	
 

	
 

	
 

	
 

	
with a copy
to:

	
 

	
 

	
 

	
 

	
 

	
Apple REIT
Ten, Inc.

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
Attn: Legal
Dept.

	
 

	
 

	
Fax
No.:  (804) 727-6349

	
 

	
 

	
 

	
 

	
(iii)

	
If addressed
to Escrow Agent, to:

	
 

	
 

	
 

	
 

	
 

	
Chicago
Title Company

	
 

	
 

	
5501 LBJ
Freeway, Suite 200

	
 

	
 

	
Dallas,
Texas 75240

	
 

	
 

	
Attn: Debby
Moore

	
 

	
 

	
Fax
No.:  (214) 570-0210

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

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

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

-v-

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SELLER:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
COLLINS
HOSPITALITY, INC., an Iowa corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BUYER:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
APPLE TEN
HOSPITALITY OWNERSHIP, INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESCROW AGENT:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CHICAGO
TITLE COMPANY

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	

	
 

-vi-

SCHEDULE
3.1

DUE
DILIGENCE LIST

Due
Diligence

Documents Required

[electronic
versions preferred]

Property Name:

Date Opened:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

Sent

	
 

	
Comments

	
 

	
 

	
 

	

	
 

	

	
1

	
Y-T-D Detailed Operating Statements

	
 

	
 

	
 

	
 

	
2

	
Prior 5 Years Detailed P&L’s by month

	
 

	
 

	
 

	
 

	
3

	
2011 Detailed Budget (Operating)

	
 

	
 

	
 

	
 

	
4

	
2011 Budget (Capital Expenditures)

	
 

	
 

	
 

	
 

	
5

	
STAR Report (previous 5 years)

	
 

	
 

	
 

	
 

	
6

	
2011 Marketing Plan

	
 

	
 

	
 

	
 

	
7

	
Monthly Occupancy & Average
Daily/Week/Package Rates (previous 3 years)

	
 

	
 

	
 

	
 

	
8

	
Schedule of Advance Deposits of Advance
Reservations and Bookings (Top 20 Accounts)

	
 

	
 

	
 

	
 

	
9

	
Real Estate Tax Bills (last 2 years)

	
 

	
 

	
 

	
 

	
10

	
Personal Property Tax Bills (last 2 years)

	
 

	
 

	
 

	
 

	
11

	
Notices of Current Tax Assessments or
Increases

	
 

	
 

	
 

	
 

	
12

	
Schedule of Insurance Coverage and Claims

	
 

	
 

	
 

	
 

	
13

	
Personal Property List (e.g., FF&E,
office equipment)

	
 

	
 

	
 

	
 

	
14

	
Inventory of Supplies (e.g., chinaware,
glassware, paper goods, office supplies, unopened food and beverage
inventory)

	
 

	
 

	
 

	
 

	
15

	
Copies of Service Contracts and Equipment
Leases

	
 

	
 

	
 

	
 

	
16

	
Copies of Space Leases (e.g., gift shop,
health club/spa)

	
 

	
 

	
 

	
 

-vii-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

Sent

	
 

	
Comments

	
 

	
 

	
 

	

	
 

	

	
17

	
Vehicle Title/Leases

	
 

	
 

	
 

	
 

	
18

	
Copies and Schedules of all Warranties and
Guaranties

	
 

	
 

	
 

	
 

	
19

	
Existing Management Agreement

	
 

	
 

	
 

	
 

	
20

	
Existing Franchise/License Agreement

	
 

	
 

	
 

	
 

	
21

	
Loan Documents (Promissory Note, Mortgage,
etc.)

	
 

	
 

	
 

	
 

	
22

	
Most current Franchise Property Improvement
Plan or QA Assessment

	
 

	
 

	
 

	
 

	
23

	
Copies of all Licenses, Permits, and
Approvals, including Liquor License

	
 

	
 

	
 

	
 

	
24

	
Certificate of Occupancy

	
 

	
 

	
 

	
 

	
25

	
Most Recent Property Payroll

	
 

	
 

	
 

	
 

	
26

	
Copy of Employment Contracts, if any

	
 

	
 

	
 

	
 

	
27

	
Construction docs and Plans & Specs
(electronically if available)

	
 

	
 

	
 

	
 

	
28

	
Appraisal

	
 

	
 

	
 

	
 

	
29

	
Structural Engineering Audit

	
 

	
 

	
 

	
 

	
30

	
Environmental Site Assessment (Phase I)

	
 

	
 

	
 

	
 

	
31

	
Property Condition Report

	
 

	
 

	
 

	
 

	
32

	
Schedule of Utility Providers and Utility
Deposits

	
 

	
 

	
 

	
 

	
33

	
Copies of Utility Bills (previous 3 months)

	
 

	
 

	
 

	
 

	
34

	
Zoning, compliance, and violation docs

	
 

	
 

	
 

	
 

	
35

	
Title Insurance Commitment, Title Search or
Title Certificate

	
 

	
 

	
 

	
 

	
36

	
Copies of Title Exceptions

	
 

	
 

	
 

	
 

	
37

	
ALTA Survey

	
 

	
 

	
 

	
 

	
38

	
Service Contract Summary Completed

	
 

	
 

	
 

	
 

	
39

	
Property Data Sheet Completed

	
 

	
 

	
 

	
 

	
40

	
Other

	
 

	
 

	
 

	
 

-viii-

Due Diligence

Service Contract Summary

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Brand:

Location:

# Rooms:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EXAMPLE

Kone Elevator

Service

	
 

	
Service

Contract

	
 

	
Term

	
 

	
Annual

Amount

	
 

	
Cancellation

	
 

	
Company

	
 

	
Assignment

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
Quarterly

Inspection 

& Service

	
 

	
5yrs; beg

2/12/04

	
 

	
$4,942

	
 

	
90-day notice

prior to

expiration

	
 

	
Hotel

Properties,

LLC

	
 

	
w/ written consent

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
LEASE
CONTRACTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
Name

	
 

	
Equipment

	
 

	
Term

	
 

	
Annual
Amount

	
 

	
Cancellation

	
 

	
Company

	
 

	
Assignment

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

-ix-

Due
Diligence

Property Data Survey

[To Be Completed
Electronically]

-x-

-xi-

-xii-Exhibit 10.26 

Cedar Rapids, IA (HWS) 

PURCHASE CONTRACT

between

FIVE SEASONS HOSPITALITY, INC., an Iowa
corporation (“SELLER”)

AND

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

Dated: April 4, 2011

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page No.

 
	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 	
 DEFINED TERMS

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 1.1

 	
  

 	
 Definitions

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

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

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.1

 	
  

 	
 Purchase and
 Sale

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.2

 	
  

 	
 Purchase
 Price

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.3

 	
  

 	
 Allocation

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.4

 	
  

 	
 Payment

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 2.5

 	
  

 	
 Earnest
 Money Deposit

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 REVIEW PERIOD

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.1

 	
  

 	
 Review
 Period

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.2

 	
  

 	
 Due
 Diligence Examination

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.3

 	
  

 	
 Restoration

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 3.4

 	
  

 	
 Seller
 Exhibits

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 SURVEY AND TITLE APPROVAL

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.1

 	
  

 	
 Survey

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.2

 	
  

 	
 Title

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 4.3

 	
  

 	
 Survey or
 Title Objections

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE V

 	
 TERMINATION OF MANAGEMENT AGREEMENT

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VI

 	
 BROKERS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VII

 	
 REPRESENTATIONS, WARRANTIES AND COVENANTS

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.1

 	
  

 	
 Seller’s
 Representations, Warranties and Covenants

 	
  

 	
 11

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.2

 	
  

 	
 Buyer’s
 Representations, Warranties and Covenants

 	
  

 	
 15

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 7.3

 	
  

 	
 Survival

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE VIII

 	
 ADDITIONAL COVENANTS

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.1

 	
  

 	
 Subsequent Developments

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.2

 	
  

 	
 Operations

 	
  

 	
 16

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.3

 	
  

 	
 Third Party
 Consents

 	
  

 	
 17

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.4

 	
  

 	
 Employees

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.5

 	
  

 	
 Estoppel
 Certificates

 	
  

 	
 18

 

i

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.6

 	
  

 	
 Access to
 Financial Information

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.7

 	
  

 	
 Bulk Sales

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.8

 	
  

 	
 Indemnification

 	
  

 	
 18

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.9

 	
  

 	
 Escrow Funds

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 8.10

 	
  

 	
 Liquor Licenses

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IX

 	
 CONDITIONS FOR CLOSING

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.1

 	
  

 	
 Buyer’s
 Conditions for Closing

 	
  

 	
 21

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 9.2

 	
  

 	
 Seller’s
 Conditions for Closing

 	
  

 	
 22

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE X

 	
 CLOSING AND CONVEYANCE

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.1

 	
  

 	
 Closing

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.2

 	
  

 	
 Deliveries
 of Seller

 	
  

 	
 23

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 10.3

 	
  

 	
 Buyer’s
 Deliveries

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XI

 	
 COSTS

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.1

 	
  

 	
 Seller’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 11.2

 	
  

 	
 Buyer’s
 Costs

 	
  

 	
 25

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XII

 	
 ADJUSTMENTS

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.1

 	
  

 	
 Adjustments

 	
  

 	
 26

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.2

 	
  

 	
 Reconciliation
 and Final Payment

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 12.3

 	
  

 	
 Employees

 	
  

 	
 27

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIII

 	
 CASUALTY AND CONDEMNATION

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.1

 	
  

 	
 Risk of
 Loss; Notice

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.2

 	
  

 	
 Buyer’s
 Termination Right

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 13.3

 	
  

 	
 Procedure
 for Closing

 	
  

 	
 28

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XIV

 	
 DEFAULT REMEDIES

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.1

 	
  

 	
 Buyer
 Default

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.2

 	
  

 	
 Seller
 Default

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 14.3

 	
  

 	
 Attorney’s
 Fees

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XV

 	
 NOTICES

 	
  

 	
 29

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE XVI

 	
 MISCELLANEOUS

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.1

 	
  

 	
 Performance

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.2

 	
  

 	
 Binding
 Effect; Assignment

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.3

 	
  

 	
 Entire
 Agreement

 	
  

 	
 30

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.4

 	
  

 	
 Governing
 Law

 	
  

 	
 31

 

ii

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.5

 	
  

 	
 Captions

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.6

 	
  

 	
 Confidentiality

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.7

 	
  

 	
 Closing
 Documents

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.8

 	
  

 	
 Counterparts

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.9

 	
  

 	
 Severability

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.10

 	
  

 	
 Interpretation

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.11

 	
  

 	
 (Intentionally
 Omitted)

 	
  

 	
 31

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.12

 	
  

 	
 Further Acts

 	
  

 	
 32

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 16.13

 	
  

 	
 Joint and
 Several Obligations

 	
  

 	
 32

 

	
  

 	
  

 	
  

 
	
 SCHEDULES:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Schedule 3.1

 	
  

 	
 Due
 Diligence List

 
	
  

 	
  

 	
  

 
	
 EXHIBITS:

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 Exhibit A

 	
  

 	
 Legal
 Description

 
	
 Exhibit B

 	
  

 	
 List of
 FF&E

 
	
 Exhibit C

 	
  

 	
 List of
 Hotel Contracts

 
	
 Exhibit D

 	
  

 	
 Consents and
 Approvals

 
	
 Exhibit E

 	
  

 	
 Environmental
 Reports

 
	
 Exhibit F

 	
  

 	
 Claims or
 Litigation Pending

 
	
 Exhibit G

 	
  

 	
 Escrow
 Agreement

 

iii

PURCHASE CONTRACT

          This
PURCHASE CONTRACT (this “Contract”) is made and entered into as of April 4,
2011, by and between FIVE SEASONS HOSPITALITY, INC., an Iowa corporation
(“Seller”) with a principal office at 1701 Mt. Pleasant St., Suite 1,
Burlington, Iowa 52601 and APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia
corporation, with its principal office at 814 East Main Street, Richmond,
Virginia 23219, or its affiliates or assigns (“Buyer”).  

RECITALS

          A.
Seller is the fee simple owner of that certain hotel property commonly known as
the Homewood Suites Cedar Rapids North, located at 1140 Park Place NE, Cedar
Rapids, IA 52402, containing, among other things, 95 guest suites (the “Hotel”)
identified in on Exhibit A attached hereto and incorporated by
reference.  

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

AGREEMENT:

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

ARTICLE I

DEFINED TERMS

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

          “Additional
Deposit” shall mean $100,000. 

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

          “Appurtenances”
shall mean all rights, titles, and interests of Seller appurtenant to the Land
and Improvements, including, but not limited to, (i) all easements, rights of
way, rights of ingress and egress, tenements, hereditaments, privileges, and
appurtenances in any way belonging to the Land or Improvements, (ii) any land
lying in the bed of any alley, highway, street, road or avenue, open or
proposed, in front of or abutting or adjoining the Land, (iii) any strips or
gores of real estate adjacent to the Land, and (iv) the use of all alleys,
easements and rights-of-way, if any, abutting, adjacent, contiguous to or
adjoining the Land. 

1

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

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

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

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

          “Contracts,
Plans and Specs” shall mean all construction and other contracts, plans,
drawings, specifications, surveys, soil reports, engineering reports,
inspection reports, and other technical descriptions and reports. 

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

          “Deposits”
shall mean, to the extent assignable, all prepaid rents and deposits
(including, without limitation, any reserves for replacement of FF&E and
for capital repairs and/or improvements), refundable security deposits and
rental deposits, and all other deposits for advance reservations, banquets or
future services, made in connection with the use or occupancy of the
Improvements; provided, however, that to the extent Seller has not received or
does not hold all of the prepaid rents and/or deposits attributable to the
Leases related to the Property, Buyer shall be entitled to a credit against the
cash portion of the Purchase Price allocable to the Property in an amount equal
to the amount of the prepaid rents and/or deposits attributable to the Leases
transferred at the Closing of such Property, and provided further, that
“Deposits” shall exclude (i) reserves for real property taxes and insurance, in
each case, to the extent pro rated on the settlement statement such that Buyer
receives a credit for (a) taxes and premiums in respect of any period prior to
Closing and (b) the amount of deductibles and other self-insurance and all
other potential liabilities and claims in respect of any period prior to
Closing, and (ii) utility deposits. 

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

          “Earnest
Money Deposit” shall have the meaning set forth in Section 2.5(a).

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

          “Escrow
Agent” shall have the meaning set forth in Section 2.5(a).

          “Escrow
Agreement” shall have the meaning set forth in Section 2.5(b).

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

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

2

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

          “Existing
Manager” shall mean Hawkeye Hospitality Group, Inc., an Iowa corporation. 

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

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

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

          “Franchisor”
shall mean Homewood Suites Franchise LLC.

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

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

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

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

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

          “Initial
Deposit” shall have the meaning set forth in Section 2.5(a). 

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

3

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

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

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

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

          “Manager”
shall mean the entity Buyer chooses to manage the Hotel from and after Closing.

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

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

          “Other
Property” shall have the meaning set forth in Section 16.14. “Pending
Claims” shall have the meaning set forth in Section 7.1(e). “Permitted
Exceptions” shall have the meaning set forth in Section 4.3. 

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

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

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

          “Property”
shall mean, collectively, (i) all of the following with respect to the Hotel:
the Land, Improvements, Appurtenances, FF&E, Supplies, Leases, Deposits,
Records, Service Contracts, Warranties, Licenses, FF&E Leases, Contracts,
Plans and Specs, Tradenames, Utility Reservations, as well as all other real,
personal or intangible property of Seller related to any of the foregoing and
(ii) any and all of the following that relate to or affect in any way the
design,  

4

construction, ownership, use, occupancy, leasing, maintenance, service
or operation of the Real Property,
FF&E, Supplies, Leases, Deposits or Records: Service Contracts, Warranties,
Licenses, Tradenames, Contracts, Plans and Specs and FF&E Lease. 

          “Purchase
Price” shall have the meaning set forth in Section 2.2. 

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

          “Records”
shall mean all books, records, promotional material, tenant data, guest history
information (other than any such information owned exclusively by the Existing
Manager), marketing and leasing material and forms (including but not limited
to any such records, data, information, material and forms in the form of
computerized files located at the Hotel), market studies prepared in connection
with Seller’s current annual plan and other materials, information, data, legal
or other documents or records (including, without limitation, all documentation
relating to any litigation or other proceedings, all zoning and/or land use
notices, relating to or affecting the Property, all business plans and
projections and all studies, plans, budgets and contracts related to the
development, construction and/or operation of the Hotel) owned by Seller and/or
in Seller’s possession or control, or to which Seller has access or may obtain
from the Existing Manager, that are used in or relating to the Property and/or
the operation of the Hotel, including the Land, the Improvements or the
FF&E, and proforma budgets and projections and construction budgets and
contracts related to the development and construction of the Hotel and a list
of the general contractors, architects and engineers providing goods and/or
services in connection with the construction of the Hotel, all construction
warranties and guaranties in effect at Closing and copies of the final plans
and specifications for the Hotel. 

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

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

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

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

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

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

          “Supplies”
shall mean all merchandise, supplies, inventory and other items used for the
operation and maintenance of guest rooms, restaurants, lounges, swimming pools,
health clubs, spas, business centers, meeting rooms and other common areas and
recreational areas located within or relating to the Improvements, including,
without limitation, all food and beverage (alcoholic and non-alcoholic)
inventory (opened or unopened), office supplies and stationery, advertising and
promotional materials, china, glasses, silver/flatware, towels, linen and
bedding (all of which shall be 2-par level for all suites or rooms in the
Hotel), guest cleaning, paper and other supplies, upholstery material, carpets,
rugs, furniture, engineers’ supplies, paint and painters’ supplies, employee
uniforms, and all cleaning and maintenance supplies, including 

5

those used in
connection with the swimming pools, indoor and/or outdoor sports facilities,
health  clubs, spas,
fitness centers, restaurants, business centers, meeting rooms and other common
areas and recreational areas. 

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

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

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

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

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

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

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

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

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

ARTICLE II

PURCHASE AND SALE; PURCHASE PRICE; PAYMENT;

EARNEST MONEY DEPOSIT 

          2.1
Purchase and Sale. Seller agrees to sell and convey to Buyer or its
Affiliates and/or assigns, and Buyer or its assigns agrees to purchase from
Seller, the Property, in  

6

consideration of the Purchase Price and upon the terms
and conditions hereof. All of the Property shall
be conveyed, assigned, and transferred to Buyer at Closing, free and clear of
all mortgages, liens, encumbrances, licenses, franchises (other than any hotel
franchises assumed by Buyer), concession agreements, security interests, prior
assignments or conveyances, conditions, restrictions, rights-of-way, easements,
encroachments, claims and other matters affecting title or possession, except
for the Permitted Exceptions. 

          2.2
Purchase Price. Buyer agrees to pay, and Seller agrees to accept, as
consideration for the conveyance of the Property, subject to the adjustments
provided for in this Contract, the amount of Thirteen Million and No/100
Dollars ($13,000,000.00) (the “Purchase
Price”). 

          2.3
Allocation. Buyer and Seller shall attempt to agree, prior to the
expiration of the Review Period, on an allocation of the Purchase Price among
Real Property, tangible Personal Property and intangible property related to
the Property. In the event Buyer and Seller do not agree, each party shall be
free to allocate the Purchase Price to such items as they deem appropriate,
subject to and in accordance with applicable laws. 

          2.4
Payment. The portion of the Purchase Price, less the Earnest Money
Deposit and interest earned thereon, if any, which Buyer elects to have applied
against the Purchase Price (as provided below), less the Escrow Funds, shall be
paid to Seller in cash, certified funds or wire transfer, at the Closing of the
Property. At the Closing, the Earnest Money Deposit, together with interest
earned thereon, if any, shall, at Buyer’s election, be returned to Buyer or
shall be paid over to Seller by Escrow Agent to be applied to the portion of
the Purchase Price on behalf of Buyer, and the Escrow Funds shall be deposited
into an escrow account pursuant to the Post-Closing Agreement as contemplated
by Section 8.9. 

          2.5
Earnest Money Deposit.

                    (a)
Within three (3) Business Days after the full execution and delivery of this
Contract, Buyer shall deposit the sum of One Hundred Thousand and No/100
Dollars ($100,000.00) in cash, certified bank check or by wire transfer of
immediately available funds (the “Initial
Deposit”) with the Title Company, as escrow agent (“Escrow Agent”), which sum shall be held
by Escrow Agent as earnest money. If, pursuant to the provisions of Section 3.1
of this Contract, Buyer elects to terminate this Contract at any time prior to
the expiration of the Review Period, then the Escrow Agent shall return the Earnest
Money Deposit to Buyer promptly upon written notice to that effect from Buyer.
If Buyer does not elect to terminate this Contract on or before the expiration
of the Review Period, Buyer shall, within three (3) Business Days after the
expiration of the Review Period deposit the Additional Deposit with the Escrow
Agent. The Initial Deposit and the Additional Deposit, and all interest accrued
thereon, shall hereinafter be referred to as the “Earnest Money Deposit.” 

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

7

ARTICLE III

REVIEW PERIOD

          3.1
Review Period. Buyer shall have a period through 6:00 p.m. Eastern Time
on the date that is sixty (60) days after the date of this Contract, unless a
longer period of time is otherwise provided for in this Contract and except as
otherwise agreed to by Buyer and Seller (the “Review Period”), to evaluate the legal, title, survey,
construction, physical condition, structural, mechanical, environmental,
economic, permit status, franchise status, financial and other documents and
information related to the Property. Within two (2) Business Days following the
date of this Contract, Seller, at Seller’s sole cost and expense, will deliver
to Buyer (or make available at the Hotel) for Buyer’s review, to the extent not
previously delivered to Buyer, true, correct and complete copies of the
following, together with all amendments, modifications, renewals or extensions
thereof: 

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

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

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

                    (d)
Engineering, mechanical, architectural and construction plans, drawings,
specifications and contracts, payment and performance bonds, title policies,
reports and commitments, zoning information and marketing and economic data
relating to the Hotel and the construction, development, installation and
equipping thereof, as well as copies of all environmental reports and
information, topographical, boundary or “as built” surveys, engineering
reports, subsurface studies and other Contracts, Plans and Specs relating to or
affecting the Hotel. If the Hotel is purchased by Buyer, all such documents and
information relating to the Hotel shall thereupon be and become the property of
Buyer without payment of any additional consideration therefor; 

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

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

8

                    (g)
Any other information described on Schedule 3.1 attached hereto. 

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

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

          3.3
Restoration. Buyer covenants and agrees not to damage or destroy any
portion of the Property in conducting its examinations and studies of the
Property during the Due Diligence Examination and, if closing does not occur,
shall repair any portion of the Property damaged by the conduct of Buyer, its
agents or employees, to substantially the condition such portion(s) of the
Property were in immediately prior to such examinations or studies. 

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

9

ARTICLE IV

SURVEY AND TITLE APPROVAL 

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

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

          4.3
Survey or Title Objections. If Buyer discovers any title or survey
matter which is objectionable to Buyer, Buyer may provide Seller with written
notice of its objection to same on or before the expiration of the Review
Period (the “Title Review Period”).
If Buyer fails to so object in writing to any such matter set forth in the
Survey or Title Commitment, it shall be conclusively assumed that Buyer has
approved same. If Buyer disapproves any condition of title, survey or other
matters by written objection to Seller on or before the expiration of the Title
Review Period, Seller shall elect either to attempt to cure or not cure any
such item by written notice sent to Buyer within five (5) days after its
receipt of notice from Buyer, and if Seller commits in writing to attempt to
cure any such item, then Seller shall be given until the Closing Date to cure
any such defect. In the event Seller shall fail to cure a defect which Seller
has committed in writing to cure prior to Closing, or if a new title defect
arises after the date of Buyer’s Title Commitment or Survey, as applicable, but
prior to Closing, then Buyer may elect, in Buyer’s sole and absolute
discretion: (i) to waive such objection and proceed to Closing, or (ii) to
terminate this Contract and receive a return of the Earnest Money Deposit, and
any interest thereon. The items shown on the Title Commitment which are not
objected to by Buyer as set forth above (other than exceptions and title
defects arising after the title review period and other than those standard
exceptions which are ordinarily and customarily omitted in the state in which
the applicable Hotel is located, so long as Seller provides the appropriate
owner’s affidavit, gap indemnity or other documentation reasonably required by
the Title Company for such omission) are hereinafter referred to as the “Permitted Exceptions.” In no event
shall Permitted 

10

Exceptions
include liens, or documents evidencing liens, securing any indebtedness
(including vehicle or FF&E leases or financing arrangements) any mechanics’
or materialmen’s liens or any claims or potential claims therefor covering the
Property or any portion thereof (“Seller
Liens”), each of which shall be paid in full by Seller and
released at Closing. If a vehicle or FF&E lease or other financing cannot
be released at Closing, Seller shall credit Buyer at Closing with the amount
necessary to fully pay off such lease or financing over its term. 

ARTICLE V

MANAGEMENT AGREEMENT AND FRANCHISE AGREEMENT 

          At
or prior to the Closing, Seller shall terminate the Existing Management
Agreement and the Existing Franchise Agreement, and Seller shall be solely
responsible for all claims and liabilities arising thereunder on, prior to or
following the Closing Date, including outstanding fees, charges or costs and
further including the repayment of any key money, if any. As a condition to
Closing, Buyer shall enter into the New Franchise Agreement, effective as of
the Closing Date, containing terms and conditions acceptable to Buyer. Seller
shall be responsible for paying all costs related to the termination of the
Existing Management Agreement. Buyer shall be responsible for paying all
reasonable and actual costs of the Franchisor related to the assignment or
termination, as applicable, of the Existing Franchise Agreement. Seller shall
use best efforts to promptly provide all information required by the Franchisor
in connection with the New Franchise Agreement, and Seller and Buyer shall
diligently pursue obtaining each the same. 

ARTICLE VI

BROKERS

          Seller
and Buyer each represents and warrants to the other that it has not engaged any
broker, finder or other party in connection with the transaction contemplated
by this Contract, except for Hotel Assets Group (the “Broker”), which Broker shall be entitled to
a commission from Seller upon the sale of the Property under a separate
agreement with Seller. Buyer and Seller each agree to save and hold the other
harmless from any and all losses, damages, liabilities, costs and expenses
(including, without limitation, attorneys’ fees) involving claims made by any
other agent, broker, or other person by or through the acts of Buyer or Seller,
respectively, in connection with this transaction.

ARTICLE VII

REPRESENTATIONS, WARRANTIES AND COVENANTS 

          7.1
Seller’s Representations, Warranties and Covenants. Seller hereby
represents, warrants and covenants to Buyer as follows: 

                    (a)
Authority; No Conflicts. Seller is a corporation duly formed, validly
existing and in good standing in the State of Iowa. Seller has obtained all necessary
consents to enter into and perform this Contract and is fully authorized to
enter into and perform this Contract and to complete the transactions
contemplated by this Contract. No consent or approval of any person, entity or
governmental authority is required for the execution, delivery or performance
by Seller of this Contract, except as set forth in Exhibit D, and this Contract
is hereby binding and enforceable against Seller. Neither the execution nor the
performance of, or  

11

compliance
with, this Contract by Seller has resulted, or will result, in any violation
of, or default under, or acceleration of, any obligation under any existing
corporate charter, certificate of incorporation, bylaw, articles of
organization, limited liability company agreement or regulations, partnership
agreement or other organizational documents and under any, mortgage indenture,
lien agreement, promissory note, contract, or permit, or any judgment, decree,
order, restrictive covenant, statute, rule or regulation, applicable to Seller
or to the Hotel. 

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

                    (c)
Bankruptcy. Neither Seller, nor to Seller’s knowledge, any of its
partners or members, is insolvent or the subject of any bankruptcy proceeding,
receivership proceeding or other insolvency, dissolution, reorganization or
similar proceeding. 

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

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

12

agencies,
unremedied orders by such agencies or judicial proceedings or orders with
respect to obligations under city, state or federal civil or human rights or
antidiscrimination laws or executive orders affecting the Hotel, or other
pending, actual or, to Seller’s knowledge, threatened litigation claims,
charges, complaints, petitions or unsatisfied orders by or before any
administrative agency or court which affect the Hotel or might become a lien on
the Hotel (collectively, the “Pending
Claims”). 

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

13

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

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

                    (i)
Licenses, Permits and Approvals. Seller has not received any written notice,
and Seller has no knowledge that the Property fails to materially comply with
all applicable licenses, permits and approvals and federal, state or local
statutes, laws, ordinances, rules, regulations, requirements and codes
including, without limitation, those regarding zoning, land use, building,
fire, health, safety, environmental, subdivision, water quality, sanitation
controls and the Americans with Disabilities Act, and similar rules and
regulations relating and/or applicable to the ownership, use and operation of
the Property as it is now operated. Seller has received all licenses, permits
and approvals required or needed for the lawful conduct, occupancy and
operation of the business of the Hotel, and each license and permit is in full
force and effect, and will be received and in full force and effect as of the
Closing. No licenses, permits or approvals necessary for the lawful conduct,
occupancy or operation of the business of the Hotel, to Seller’s knowledge
requires any approval of a governmental authority for transfer of the Property
except as set forth in Exhibit D. 

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

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

14

collective
bargaining or other labor agreements to which Seller or the Existing Manager or
the Hotel is bound with respect to any employees employed at the Hotel. 

                    (l)
Operations. The Hotel has at all times been operated by Existing Manager
in accordance with all applicable laws, rules, regulations, ordinances and
codes. 

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

                    (n)
Construction of Hotel. To the actual knowledge of Seller, without
investigation: 

	
  

 	
  

 
	
  

 	
                     (i)
 The Hotel has been constructed in a good and workmanlike manner without
 encroachments and in accordance in all material respects with the Contracts,
 Plans and Specs, and all building permits and certificates of occupancy
 therefor and all applicable zoning, platting, subdivision, health, safety and
 similar laws, rules, regulations, ordinances and codes. 

 
	
  

 	
  

 
	
  

 	
                     (ii)
 The Personal Property is in good condition and operating order. 

 
	
  

 	
  

 
	
  

 	
                     (iii)
 Necessary easements for ingress and egress, drainage, signage and utilities
 serving the Hotel have either been dedicated to the public, conveyed to the
 appropriate utility or will be conveyed to Buyer along with the Property. 

 

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

                    (a)
Authority. Buyer is a corporation duly formed, validly existing and in
good standing in the Commonwealth of Virginia. Buyer has received or will have
received by the applicable Closing Date all necessary authorization of the
Board of Directors of Buyer to 

15

complete the
transactions contemplated by this Contract. No other consent or approval of any
person, entity or governmental authority is required for the execution,
delivery or performance by Buyer of this Contract, and this Contract is hereby
binding and enforceable against Buyer. 

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

          7.3
Survival. All of the representations and warranties are true, correct
and complete in all material respects as of the date hereof and the statements
set forth therein (without qualification or limitation as to a party’s
knowledge thereof except as expressly provided for in this Article VII) shall
be true, correct and complete in all material respects as of the Closing Date.
All of the representations and warranties made herein shall survive Closing for
a period of twelve (12) months and shall not be deemed to merge into or be
waived by the Deed or any other closing documents. 

ARTICLE VIII

ADDITIONAL COVENANTS

          8.1
Subsequent Developments. After the date of this Contract and until the
Closing Date, Seller shall use best efforts to keep Buyer fully informed of all
subsequent developments of which Seller has knowledge (“Subsequent Developments”) which would
cause any of Seller’s representations or warranties contained in this Contract
to be no longer accurate in any material respect. 

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

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

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

16

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

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

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

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

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

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

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

          Neither
Seller nor Existing Manager shall, without first obtaining the written approval
of Buyer, which approval shall not be unreasonably withheld, enter into any new
FF&E Leases, Service Contracts, Leases or other contracts or agreements
related to the Hotel, or extend any existing such agreements, unless such
agreements (x) can be terminated, without payment or penalty, upon thirty (30)
days’ prior notice or (y) will expire prior to the Closing Date. 

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

17

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

          8.5
Estoppel Certificates. Seller shall obtain from (i) each tenant under
any Lease affecting the Hotel (but not from current or prospective occupants of
hotel rooms and suites within the Hotel), (ii) each lessor under any FF&E
Lease for the Hotel identified by Buyer as a material FF&E Lease, and (iii)
each declarant, property owners’ association or similar entity have authority
over the development of which the Property is a part, if any, the estoppel
certificates substantially in the forms provided by Buyer to Seller, and
deliver to Buyer on or before Closing. The information contained in such
estoppel certificates shall be subject to Buyer’s reasonable approval and shall
contain no materially adverse information (e.g., no defaults by the Property as
to use, construction or otherwise and no past due fees, dues, charges or
assessments). 

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

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

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

                    (a)
Indemnification of Buyer. Without in any way limiting or diminishing the
warranties, representations or agreements herein contained or the rights or
remedies available to Buyer for a breach hereof, Seller hereby agrees to
indemnify, defend and hold harmless Buyer and its respective designees,
successors and assigns from and against all losses, judgments, 

18

liabilities,
claims, damages or expenses (including reasonable attorneys’ fees) of every
kind, nature and description in existence before, on or after Closing, whether
known or unknown, absolute or continent, joint or several, arising out of or
relating to: 

	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the material breach of any representation, warranty, covenant or agreement of
 Seller contained in this Contract, except to the extent that Buyer had actual
 knowledge of such breach prior to Closing; 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 

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

	
  

 	
  

 
	
  

 	
                               (i)
 the breach of any representation, warranty, covenant or agreement of Buyer
 contained in this Contract, except to the extent that Seller had actual
 knowledge of such breach prior to Closing; 

 
	
  

 	
  

 
	
  

 	
                               (ii)
 the conduct and operation by Buyer of its business at the Hotel after the
 Closing; and 

 
	
  

 	
  

 
	
  

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

 

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

	
  

 	
  

 
	
  

 	
                               (i)
 The party seeking indemnification (the “Indemnified
 Party”) shall give prompt written notice to the party or
 parties from which it is seeking indemnification (the “Indemnifying Party”) of any assertion
 of liability by a third party which might give rise to a claim for
 indemnification based on the foregoing provisions of 

 

19

	
  

 	
  

 
	
  

 	
 this Section
 8.8, which notice shall state the nature and basis of the assertion and the
 amount thereof, to the extent known; provided, however, that no delay on the
 part of the Indemnified Party in giving notice shall relieve the Indemnifying
 Party of any obligation to indemnify unless (and then solely to the extent
 that) the Indemnifying Party is prejudiced by such delay. 

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

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

 
	
  

 	
  

 
	
  

 	
                               (iv)
 In any Legal Action initiated by a third party and defended by the
 Indemnifying Party (w) the Indemnified Party shall have the right to be
 represented by advisory counsel and accountants, at its own expense, (x) the
 Indemnifying Party shall keep the Indemnified Party fully informed as to the
 status of such Legal Action at all stages thereof, whether or not the
 Indemnified Party is represented by its own counsel, (y) the Indemnifying
 Party shall make available to the Indemnified Party and its attorneys,
 accounts and other representatives, all books and 

 

20

	
  

 	
  

 
	
  

 	
 records of
 Seller relating to such Legal Action and (z) the parties shall render to each
 other such assistance as may be reasonably required in order to ensure the
 proper and adequate defense of such Legal Action. 

 
	
  

 	
  

 
	
  

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

 

          8.9
Escrow Funds. To provide for the timely payment of any post-closing
claims by Buyer against Seller hereunder, at Closing, Seller shall deposit an
amount equal to Two Hundred Thousand and No/100 Dollars ($200,000.00) (the “Escrow Funds”) which shall be withheld
from the Purchase Price payable to Seller and shall be deposited for a period
of nine (9) months in an escrow account with the Title Company pursuant to an
escrow agreement reasonably satisfactory in form and substance to Buyer and
Seller (the “Post-Closing Agreement”),
which escrow and Post-Closing Agreement shall be established and entered into
at Closing and shall be a condition to Buyer’s obligations under this Contract.
If no claims have been asserted by Buyer against Seller, or all such claims
have been satisfied, within such nine (9) month period, the Escrow Funds
deposited by Seller shall be released to Seller. 

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

ARTICLE IX

CONDITIONS FOR CLOSING 

          9.1
Buyer’s Conditions for Closing. Unless otherwise waived in writing, and
without prejudice to Buyer’s right to cancel this Contract during the Review
Period, the duties and obligations of Buyer to proceed to Closing under the
terms and provisions of this Contract are and shall be expressly subject to
strict compliance with, and satisfaction or waiver of, each of the conditions
and contingencies set forth in this Section 9.1, each of which shall be deemed
material to this Contract. In the event of the failure of any of the conditions
set forth in this Section 9.1 or of any other condition to Buyer’s obligations
provided for in this Contract, which condition is not waived in writing by
Buyer, Buyer shall have the right at its option to declare this Contract

21

terminated, in which case the Earnest Money Deposit and any interest thereon
shall be immediately returned to Buyer and each of the parties shall be
relieved from further liability to the other, except as otherwise expressly
provided herein, with respect to this Contract. 

                    (a)
All of Seller’s representations and warranties contained in or made pursuant to
this Contract shall be true and correct in all material respects as if made
again on the Closing Date; provided, however, in the event Buyer has actual
knowledge of any inaccuracy of Seller’s representations or warranties in any
material respect prior to the end of the Review Period and Buyer does not
object to such inaccuracy prior to the end of the Review Period, then Buyer shall be
deemed to have waived its right to declare this Contract terminated as a result
of such inaccuracy.

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

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

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

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

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

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

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

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

22

Deposit
and any interest thereon shall be immediately returned to Buyer and each of the
parties shall be relieved from further liability to the other, except as
otherwise expressly provided herein.

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

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

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

ARTICLE X

CLOSING AND CONVEYANCE

          10.1
Closing. Unless otherwise agreed by Buyer and Seller, the Closing on the
Property shall occur on a date selected by Buyer that is the later of (a)
fifteen (15) business days after expiration of the Review Period or (b) the
date Buyer receives the New Franchise Agreement executed by the Franchisor,
provided in either case that all conditions to Closing by Buyer hereunder have
been satisfied. The date on which the Closing is to occur as provided in this
Section 10.1, or such other date as may be agreed upon by Buyer and Seller, is
referred to in this Contract as the “Closing Date” for the Property. The
Closing shall be held via escrow at the offices of the Title Company, or as
otherwise determined by Buyer and Seller. 

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

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

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

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

                    (d)
General Assignments. Assignments of all of Seller’s right, title and
interest in and to all FF&E Leases, Service Contracts and Leases identified
on Exhibit C hereto (the “Hotel Contracts”). The assignment shall
also be a general assignment and shall provide 

23

for the assignment of all of Seller’s
right, title and interest in all Records, Warranties, Licenses, Tradenames,
Contracts, Plans and Specs and all other intangible Personal Property
applicable to the Hotel. The assignments shall contain cross-indemnities by
Buyer and Seller for their respective periods of ownership.

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

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

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

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

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

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

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

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

24

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

                    (a)
Purchase Price. The balance of the Purchase Price, adjusted for the
adjustments provided for in Section 12.1, below, and less any sums to be
deducted therefrom as provided in Section 2.4. 

                    (b)
Authority Documents. Certified copy of resolutions of the Board of
Directors of Buyer authorizing the purchase of the Hotel contemplated by this
Contract, and/or other evidence satisfactory to Seller and the Title Company
that the person or persons executing the closing documents on behalf of Buyer
have full right, power and authority to do so.

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

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

ARTICLE XI

COSTS

          All
Closing costs shall be paid as set forth below:

          11.1
Seller’s Costs. In connection with the sale of the Property contemplated
under this Contract, Seller shall be responsible for all transfer and
recordation taxes, including, without limitation, all transfer, mansion,
excise, sales, use or bulk transfer taxes or like taxes on or in connection
with the transfer of the Real Property and the Personal Property constituting
part of the Property pursuant to the Bill of Sale, and all accrued taxes of
Seller prior to Closing and income, sales and use taxes and other such taxes of
Seller attributable to the sale of the Property to Buyer. Seller shall be
responsible for all costs related to the termination of the Existing Management
Agreement as provided in Article V. Seller shall also be responsible for any
costs and expenses of its attorneys, accountants, appraisers and other
professionals, consultants and representatives. Seller shall also be
responsible for payment of all prepayment penalties and other amounts payable
in connection with the pay-off of any liens and/or indebtedness encumbering all
or any portion of the Property. 

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

25

responsible for the fees for the performance
of the property improvement plan (PIP) review and report by the Franchisor.

ARTICLE XII

ADJUSTMENTS

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

                    (a)
Taxes. All real estate taxes, personal property taxes, or any other
taxes and special assessments (special or otherwise) of any nature upon the
Property levied, assessed or pending for the calendar year in which the Closing
occurs (including the period prior to Closing, regardless of when due and
payable) shall be prorated as of the Cutoff Time and, if no tax bills or
assessment statements for such calendar year are available, such amounts shall
be estimated on the basis of the best available information for such taxes and
assessments that will be due and payable on the Hotel for the calendar year in
which Closing occurs. Until final tax bills that cover the entire year during
which Closing occurred (such that tax liability can reasonably be determined),
Seller’s obligation to pay its share of taxes shall continue.

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

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

                    (d)
Accounts. All working capital accounts, reserve accounts and escrow
accounts (including all FF&E accounts, all PIP accounts, Franchisor
escrows, but excluding amounts held in tax and insurance escrow accounts and
utility deposits to the extent excluded from the definition of Deposits), shall
become the property of Buyer, without additional charge to Buyer and without
Buyer being required to fund the same. 

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

26

                    (f)
Room Rentals. All receipts from guest room rentals and other suite
revenues for the night in which the Cutoff Time occurs shall be split 50/50
between Buyer and Seller.

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

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

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

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

          12.2
Reconciliation and Final Payment. Seller and Buyer shall reasonably
cooperate after Closing to make a final determination of the allocations and
prorations required under this Contract within one hundred eighty (180) days
after the Closing Date; provided, however, failure to make a final
determination within such period shall not relieve the parties of the
obligation to make a final determination nor shall it relieve any party of the
obligation to pay the other any true-up amounts owed. Upon the final
reconciliation of the allocations and prorations under this Section, the party
which owes the other party any sums hereunder shall pay such party such sums
within ten (10) days after the reconciliation of such sums. The obligations to
calculate such prorations, make such reconciliations and pay any such sums
shall survive the Closing.

          12.3
Employees. None of the employees of the Hotel shall become employees of
Buyer, as of the Closing Date; instead, such employees shall become, or remain
as the case may be, employees of the Manager. Seller shall not give notice
under any applicable federal or state plant closing or similar act, including,
if applicable, the Worker Adjustment and Retraining Notification Provisions of
29 U.S.C., Section 2102, the parties having agreed that a mass layoff, as that
term is defined in 29 U.S.C., 2101(a)(3), will not have occurred. Any liability
for 

27

payment of all wages, salaries and benefits, including, without limitation,
accrued vacation pay, sick leave, bonuses, pension benefits, COBRA rights, and
other benefits accrued or earned by and due to employees at the Hotel through
the Cutoff Time, together with F.I.C.A., unemployment and other taxes and
benefits due with respect to such employees for such period, shall be charged
to Seller, in accordance with the Existing Management Agreement, for the
purposes of the adjustments to be made as of the Cutoff Time. All liability for
wages, salaries and benefits of the employees accruing in respect of and
attributable to the period from and after Closing shall be charged to Buyer, in
accordance with the New Management Agreement. To the extent applicable, all
such allocations and charges shall be adjusted in accordance with the
provisions of the Existing Management Agreement.

ARTICLE XIII

CASUALTY AND CONDEMNATION

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

          13.2
Buyer’s Termination Right. If, prior to Closing and the delivery of
possession of the Property to Buyer in accordance with this Contract, (a) any
condemnation proceeding shall be pending against a substantial portion of the
Hotel or (b) there is any substantial casualty loss or damage to the Hotel,
Buyer shall have the option to terminate this Contract, provided Buyer delivers
written notice to Seller of its election within twenty (20) days after the date
Seller has delivered Buyer written notice of any such loss, damage or
condemnation as provided above, and in such event, the Earnest Money Deposit,
and any interest thereon, shall be delivered to Buyer and thereafter, except as
expressly set forth herein, no party shall have any further obligation or
liability to the other under this Contract. In the context of condemnation,
“substantial” shall mean condemnation of such portion of a Hotel (or access
thereto) as could, in Buyer’s reasonable judgment, render use of the remainder
impractical or unfeasible for the uses herein contemplated, and, in the context
of casualty loss or damage, “substantial” shall mean a loss or damage in excess
of One Hundred Thousand and No/100 Dollars ($100,000.00) in value.

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

28

ARTICLE XIV

DEFAULT REMEDIES

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

          14.2
Seller Default. If Seller defaults under this Contract, and such default
continues for thirty (30) days following written notice from Buyer, Buyer may
elect, as Buyer’s sole and exclusive remedy, either (i) to terminate this
Contract by written notice to Seller delivered to that Seller at any time prior
to the completion of such cure, in which event the Earnest Money Deposit,
including any interest thereon, shall be returned to the Buyer, Seller shall
reimburse Buyer for Buyer’s actual and verifiable due diligence costs and
expenses (not to exceed $50,000) and thereafter both the Buyer and Seller shall
thereupon be released from all obligations with respect to this Contract,
except as otherwise expressly provided herein; or (ii) to treat this Contract
as being in full force and effect by written notice to Seller delivered to
Seller at any time prior to the completion of such cure, in which event the
Buyer shall have the right to an action against the defaulting Seller for
specific performance. 

          14.3
Attorney’s Fees. Anything to the contrary herein notwithstanding, if it
shall be necessary for either the Buyer or Seller to employ an attorney to
enforce its rights pursuant to this Contract because of the default of the
other party, and the non-defaulting party is successful in enforcing such
rights, then the defaulting party shall reimburse the non-defaulting party for
the non-defaulting party’s reasonable attorneys’ fees, costs and expenses.

ARTICLE XV

NOTICES

          All
notices required herein shall be deemed to have been validly given, as
applicable: (i) if given by fax, when the fax is transmitted to the party’s fax
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, (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, or (v) if given by electronic mail, when the electronic mail is sent
to the address below:

	
 

	
 

	
 

	
 

	
 

	
If to Buyer:

	
 

	
Apple Ten
Hospitality Ownership, Inc.

	
 

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
 

	
Richmond,
Virginia 23219

29

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Attention:
Sam Reynolds

	
 

	
 

	
 

	
Fax No.:
(804) 344-8129

	
 

	
 

	
 

	
Email:
sreynolds@applereit.com

	
 

	
 

	
 

	
 

	
 

	
with a copy
to:

	
 

	
Apple REIT
Ten, Inc.

	
 

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
 

	
Attention:
Legal Dept.

	
 

	
 

	
 

	
Fax No.:
(804) 727-6349

	
 

	
 

	
 

	
Email:
dbuckley@applereit.com

	
 

	
 

	
If to
Seller:

	
 

	
Five Seasons
Hospitality, Inc.

	
 

	
 

	
 

	
1701 Mt.
Pleasant St., Suite 1

	
 

	
 

	
 

	
Burlington,
Iowa 52601

	
 

	
 

	
 

	
Attention:
Ravi Patel

	
 

	
 

	
 

	
Fax No.:
(562) 616-1555

	
 

	
 

	
 

	
Email:
ravi@hawkeyehotels.com

	
 

	
 

	
 

	
 

	
 

	
with a copy
to:

	
 

	
 

	
 

	
 

	
 

	
Stites &
Harbison PLLC

	
 

	
 

	
 

	
400 W.
Market Street, Suite 1800

	
 

	
 

	
 

	
Louisville,
Kentucky 40202

	
 

	
 

	
 

	
Attention:
Jamie L. Cox, Esq.

	
 

	
 

	
 

	
Fax No.:
(502) 779-8285

	
 

	
 

	
 

	
Email:
jcox@stites.com 

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

ARTICLE XVI

MISCELLANEOUS

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

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

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

30

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

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

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

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

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

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

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

          16.11
Further Acts. In addition to the acts, deeds, instruments and agreements
recited herein and contemplated to be performed, executed and delivered by
Buyer and Seller, Buyer and Seller shall perform, execute and deliver or cause
to be performed, executed and delivered at the Closing or after the Closing,
any and all further acts, deeds, instruments and agreements and 

31

provide such
further assurances as the other party or the Title Company may reasonably
require to consummate the transaction contemplated hereunder.

          16.12
Joint and Several Obligations. If Seller consists of more than one
person or entity, each such person or entity shall be jointly and severally
liable with respect to the obligations of Seller under this Contract.

          16.13
Notice of Proposed Listing. In the event that the sale of the Property
contemplated by this Contract is consummated, if at any time during the five
(5) year period commencing on the date of execution of this Contract by Buyer
and Seller, Seller or any of its Affiliates propose to list for sale any hotel
property or properties owned, acquired, constructed or developed by Seller or
their Affiliates and located within a ten (10)-mile radius of the Hotel (any
such other hotel property being referred to as an “Other Property”),
Seller shall promptly deliver to
Buyer written notice thereof and Buyer shall have the right to see and
participate in the offering and/or otherwise make an offer to purchase any such
Other Property.

[Signatures Begin on Following Page]

32

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SELLER:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
FIVE SEASONS
HOSPITALITY, INC., an Iowa corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Ravi
Patel

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
Ravi
Patel

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
Executive
Vice President

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BUYER:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
APPLE TEN
HOSPITALITY OWNERSHIP, INC., 
a Virginia corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/
David Buckley

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
David Buckley

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
Vice
President

	
 

	
 

	
 

	
 

	

	
 

33

EXHIBIT “A”

LEGAL DESCRIPTION OF LAND

	
  

 
	
 LOT 9, MILWAUKEE
INDUSTRIAL PARK FOURTH ADDITION TO CEDAR RAPIDS, IOWA
(LESS MILWAUKEE INDUSTRIAL PARK 6TH ADDITION TO CEDAR RAPIDS,
IOWA) 

 

EXHIBIT B

LIST OF FF&E

	
  

 
	
 HOMEWOOD SUITES CEDAR
 RAPIDS

 
	
 Rooms 95

 
	
 no Item description qty

 
	
 ART103A ART @ SOFA 1 95 EA

 
	
 ART103B ART @ SOFA 2 95 EA

 
	
 ART107 ART @ DINING TABLE 95 EA

 
	
 ART108 ART @ BED SIDEWALL 87 EA

 
	
 ART @ BATHROOM 95

 
	
 MIR102 MIRROR @ DESK 28 EA

 
	
 vanity mirror 84 ea

 
	
 vanity mirror ada 11 ea

 
	
 BD100 SERTA KING BEDSETS, SUITE
 DREAMS 67 EA

 
	
 BD101 SERTA QUEEN BEDSETS, SUITE
 DREAMS 56 EA

 
	
 BDB100 BED BASE, KING 60 EA

 
	
 BDB101 BED BASE, QUEEN 48 EA

 
	
 BDF100 BEDFRAME, KING, ADA 7.5 7
 EA

 
	
 BDF101 BEDFRAME, QUEEN, ADA 7.5
 8 EA

 
	
 CB100 CARPET BASE, 4IN @ GUEST,
 ESTIMATED QTY 175 SY

 
	
 CP100 CARPET PAD, 32 OZ,
 ESTIMATED QTY 4000 SY

 
	
 CPT100 CARPET, 32 OZ, ESTIMATED
 QTY 3755 SY

 
	
 Wall Paper Bathroom 1251 LY

 
	
 CS100 KING HEADBOARD 67 EA

 
	
 CS101 QUEEN HEADBOARD 56 EA

 
	
 CS103 NIGHTSTAND, 18IN 134 EA

 
	
 CS105 NIGHTSTAND, 24IN 28 EA

 
	
 CS109V CHEST, 3-DRAWER 147
 EA

 
	
 CS110 DESK, 52IN 71 EA

 
	
 coffee table 95 EA

 
	
 CS112 DINING TABLE 95 EA

 
	
 End Table 56 EA

 
	
 FLO100 WALL FLORAL ARRANGEMENT
 95 EA

 
	
 FLO101 FLORAL @ DINING TABLE 95
 EA

 
	
 LT102 NIGHTSTAND LAMP @ KING 134
 EA

 
	
 LT103 NIGHTSTAND LAMP @ QUEEN 28
 EA

 
	
 LT104 END TABLE LAMP 56 EA

 
	
 LT105 LAMP, FLOOR 95 EA

 
	
 LT106 LAMP, DESK 71 EA

 
	
 vanity scounce 0 ea

 
	
 LT112 CEILING FAN/LIGHT 0 EA

 
	
 SPD103 DUVET, KING 67 EA

 
	
 SPD104 KING DUSTSKIRT 67 EA

 

	
  

 
	
 SPD105 DUVET, QUEEN 56 EA

 
	
 SPD106 QUEEN DUSTSKIRT 56 EA

 
	
 UPH100 SOFA - LEFT/RIGHT
 ARM 95 EA

 
	
 UPH100P THROW PILLOWS 190 EA

 
	
 no Item description qty

 
	
 UPH101 LOUNGE CHAIR 45 EA

 
	
 UPH103 CHAIR, ERGONOMIC 71 EA

 
	
 UPH106 CHAIR, DINING 190 EA

 
	
 UPH111 OTTOMAN W/ CASTERS/TRAY
 45 EA

 
	
 WD100 Window Treatment with PTAC
 147 EA

 
	
 WD100F Window Treatment without
 PTAC 43 EA

 
	
 WD101 Small Corner Window 28 EA

 
	
 37” TV 43

 
	
 32” TV 104

 
	
 Ice Machine 4

 
	
 Laundry Washers 2

 
	
 Laundry Dryers 2

 
	
 Guest Laundry Washer 1

 
	
 Guest Laudry Dryer 1

 
	
 Printers 5

 
	
 Fax - Multifunction 2

 
	
 Frontdesk Computers 5

 
	
 Business Center Computers 2

 
	
 Suite Shop Freezer 1

 
	
 Suite Shop Refrigerator 1

 
	
 Breakfast Room Freezer 1

 
	
 Breakfast room Refrigerator 1

 
	
 Keg Cooler 2

 

2

EXHIBIT C

LIST OF HOTEL CONTRACTS

EXHIBIT
C-1 - Seller’s Hotel Contracts

Load Balancer
Hardware Support – Hilton

HSIC – Hilton

HSIA – Hilton

OnQ – Hilton

Sound System - DMX

EXHIBIT C-2 - Other Hotel
Contracts

3

EXHIBIT
D

CONSENTS
AND APPROVALS

NONE

EXHIBIT
E

ENVIRONMENTAL
REPORTS

Phase I
Environmental Report prepared by URS Donald Brice, and dated 12/15/2010

EXHIBIT
F

CLAIMS
OR LITIGATION PENDING

NONE

-i-

EXHIBIT
G

ESCROW
AGREEMENT

          THIS
ESCROW AGREEMENT (this “Agreement”) made the ___ day of
_______, 2011 by and among FIVE SEASONS HOSPITALITY, INC., an Iowa corporation (“Seller”),
APPLE TEN HOSPITALITY OWNERSHIP, INC., a Virginia corporation, or its assigns (“Buyer”),
and CHICAGO TITLE COMPANY (“Escrow Agent”).

R E C I T A L S

          WHEREAS,
pursuant to the provisions of Section 2.5 of that certain Purchase Contract
dated _______ ___, 2011 (the “Contract”) between Seller and Buyer (the “Parties”),
the Parties have requested Escrow Agent to hold in escrow in accordance with
the provisions, upon the terms, and subject to the conditions, of this
Agreement, the Earnest Money Deposit as defined in the Contract (the “Deposit”);
and

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

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

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

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

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

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

-ii-

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

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

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

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

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

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

-iii-

same is delivered
to Escrow Agent in writing, signed by the proper parties to Escrow Agent’s
satisfaction and, in the case of modification, unless such modification shall
be approved by Escrow Agent in writing.

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

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

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

	
 

	
 

	
 

	
 

	
(i)

	
If addressed
to Seller, to:

	
 

	
 

	
 

	
 

	
 

	
Five Seasons
Hospitality, Inc.

	
 

	
 

	
1701 Mt.
Pleasant St., Suite 1

	
 

	
 

	
Burlington,
Iowa 52601

	
 

	
 

	
Attention:
Ravi Patel

	
 

	
 

	
Fax
No.:  (562) 616-1555

-iv-

	
 

	
 

	
 

	
 

	
(ii)

	
If addressed
to Buyer, to:

	
 

	
 

	
 

	
 

	
 

	
Apple Ten
Hospitality Ownership, Inc.

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
Attn: Sam
Reynolds

	
 

	
 

	
Fax
No.:  (804) 344-8129

	
 

	
 

	
 

	
 

	
 

	
with a copy
to:

	
 

	
 

	
 

	
 

	
 

	
Apple REIT
Ten, Inc.

	
 

	
 

	
814 E. Main
Street

	
 

	
 

	
Richmond,
Virginia 23219

	
 

	
 

	
Attn: Legal
Dept.

	
 

	
 

	
Fax
No.:  (804) 727-6349

	
 

	
 

	
 

	
 

	
(iii)

	
If addressed
to Escrow Agent, to:

	
 

	
 

	
 

	
 

	
 

	
Chicago
Title Company

	
 

	
 

	
5501 LBJ
Freeway, Suite 200

	
 

	
 

	
Dallas,
Texas 75240

	
 

	
 

	
Attn: Debby
Moore

	
 

	
 

	
Fax
No.:  (214) 570-0210

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

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

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

-v-

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SELLER:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
FIVE SEASONS
HOSPITALITY, INC., an Iowa corporation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BUYER:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
APPLE TEN
HOSPITALITY OWNERSHIP, INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ESCROW AGENT:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CHICAGO
TITLE COMPANY

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

-vi-

SCHEDULE
3.1

DUE
DILIGENCE LIST

Due
Diligence

Documents Required

[electronic
versions preferred]

Property Name:

Date Opened:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

Sent

	
 

	
Comments

	
 

	
 

	
 

	

	
 

	

	
1

	
Y-T-D Detailed Operating Statements

	
 

	
 

	
 

	
 

	
2

	
Prior 5 Years Detailed P&L’s by month

	
 

	
 

	
 

	
 

	
3

	
2011 Detailed Budget (Operating)

	
 

	
 

	
 

	
 

	
4

	
2011 Budget (Capital Expenditures)

	
 

	
 

	
 

	
 

	
5

	
STAR Report (previous 5 years)

	
 

	
 

	
 

	
 

	
6

	
2011 Marketing Plan

	
 

	
 

	
 

	
 

	
7

	
Monthly Occupancy & Average
Daily/Week/Package Rates (previous 3 years)

	
 

	
 

	
 

	
 

	
8

	
Schedule of Advance Deposits of Advance
Reservations and Bookings (Top 20 Accounts)

	
 

	
 

	
 

	
 

	
9

	
Real Estate Tax Bills (last 2 years)

	
 

	
 

	
 

	
 

	
10

	
Personal Property Tax Bills (last 2 years)

	
 

	
 

	
 

	
 

	
11

	
Notices of Current Tax Assessments or
Increases

	
 

	
 

	
 

	
 

	
12

	
Schedule of Insurance Coverage and Claims

	
 

	
 

	
 

	
 

	
13

	
Personal Property List (e.g., FF&E,
office equipment)

	
 

	
 

	
 

	
 

	
14

	
Inventory of Supplies (e.g., chinaware,
glassware, paper goods, office supplies, unopened food and beverage
inventory)

	
 

	
 

	
 

	
 

	
15

	
Copies of Service Contracts and Equipment
Leases

	
 

	
 

	
 

	
 

	
16

	
Copies of Space Leases (e.g., gift shop,
health club/spa)

	
 

	
 

	
 

	
 

-vii-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

Sent

	
 

	
Comments

	
 

	
 

	
 

	

	
 

	

	
17

	
Vehicle Title/Leases

	
 

	
 

	
 

	
 

	
18

	
Copies and Schedules of all Warranties and
Guaranties

	
 

	
 

	
 

	
 

	
19

	
Existing Management Agreement

	
 

	
 

	
 

	
 

	
20

	
Existing Franchise/License Agreement

	
 

	
 

	
 

	
 

	
21

	
Loan Documents (Promissory Note, Mortgage,
etc.)

	
 

	
 

	
 

	
 

	
22

	
Most current Franchise Property Improvement
Plan or QA Assessment

	
 

	
 

	
 

	
 

	
23

	
Copies of all Licenses, Permits, and
Approvals, including Liquor License

	
 

	
 

	
 

	
 

	
24

	
Certificate of Occupancy

	
 

	
 

	
 

	
 

	
25

	
Most Recent Property Payroll

	
 

	
 

	
 

	
 

	
26

	
Copy of Employment Contracts, if any

	
 

	
 

	
 

	
 

	
27

	
Construction docs and Plans & Specs
(electronically if available)

	
 

	
 

	
 

	
 

	
28

	
Appraisal

	
 

	
 

	
 

	
 

	
29

	
Structural Engineering Audit

	
 

	
 

	
 

	
 

	
30

	
Environmental Site Assessment (Phase I)

	
 

	
 

	
 

	
 

	
31

	
Property Condition Report

	
 

	
 

	
 

	
 

	
32

	
Schedule of Utility Providers and Utility
Deposits

	
 

	
 

	
 

	
 

	
33

	
Copies of Utility Bills (previous 3 months)

	
 

	
 

	
 

	
 

	
34

	
Zoning, compliance, and violation docs

	
 

	
 

	
 

	
 

	
35

	
Title Insurance Commitment, Title Search or
Title Certificate

	
 

	
 

	
 

	
 

	
36

	
Copies of Title Exceptions

	
 

	
 

	
 

	
 

	
37

	
ALTA Survey

	
 

	
 

	
 

	
 

	
38

	
Service Contract Summary Completed

	
 

	
 

	
 

	
 

	
39

	
Property Data Sheet Completed

	
 

	
 

	
 

	
 

	
40

	
Other

	
 

	
 

	
 

	
 

-viii-

Due Diligence
Service Contract
Summary

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Brand:

Location:

# Rooms:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EXAMPLE
 
Kone Elevator

Service 

	
 

	
Service

Contract

	
 

	
Term

	
 

	
Annual

Amount

	
 

	
Cancellation

	
 

	
Company

	
 

	
Assignment

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
Quarterly

Inspection &

Service

	
 

	
5yrs; beg

2/12/04

	
 

	
$                   4,942

	
 

	
90-day notice

prior to

expiration

	
 

	
Hotel

Properties,

LLC

	
 

	
w/ written consent

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
LEASE
CONTRACTS

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Name

	
 

	
Equipment

	
 

	
Term

	
 

	
Annual
Amount

	
 

	
Cancellation

	
 

	
Company

	
 

	
Assignment

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

-ix-

Due
Diligence

Property Data Survey

[To Be Completed
Electronically]

-x-

-xi-

-xii-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00189-of-00352.parquet"}]]