Document:

Exhibit 10.2

 Exhibit 10.2 
 HOTEL PURCHASE AND SALE AGREEMENT 
 by and between 

IND EAST VILLAGE SD HOLDINGS, LLC, 
 a Delaware limited liability company 
 as Seller, 

and 

CHSP SAN DIEGO LLC 
 a Delaware limited liability company 
 as Buyer 

Contract Date: June 15, 2011 
 Property: Hotel Indigo San Diego, 509 9th Avenue, San Diego, California 

 TABLE OF CONTENTS 

 

					
	 1.      Deadlines and Definitions
	  	 	1	  
		
	 1.1        Deadlines
	  	 	1	  
		
	 1.2        Definitions
	  	 	1	  
		
	 2.      Purchase and Sale
	  	 	1	  
		
	 3.      Purchase Price
	  	 	2	  
		
	 3.1        Deposit
	  	 	2	  
		
	 3.2        Remainder of Purchase Price
	  	 	2	  
		
	 3.3        Intentionally Deleted
	  	 	2	  
		
	 4.      Buyer’s Due Diligence and Inspection Rights; Termination Right
	  	 	2	  
		
	 4.1        Review of Property and Property Documents
	  	 	2	  
		
	 4.2        Guidelines for Inspection Rights
	  	 	2	  
		
	 4.3        Title and Survey Examination
	  	 	3	  
		
	 A.       Title and Survey Objections
	  	 	3	  
		
	 B.        Cure of Title Matters
	  	 	4	  
		
	 C.        Intentionally Deleted
	  	 	4	  
		
	 D.       Pre-Closing
	  	 	4	  
		
	 E.        Status of Title and Survey as of Effective Date
	  	 	4	  
		
	 4.4        As-Is, Where-Is, With All Faults Sale
	  	 	4	  
		
	 4.5        Termination Right
	  	 	5	  
		
	 5.      Seller’s Covenants
	  	 	5	  
		
	 5.1        No Alteration of Title
	  	 	5	  
		
	 5.2        Intentionally Deleted
	  	 	5	  
		
	 5.3        Contracts
	  	 	5	  
		
	 5.4        Status of Property
	  	 	6	  
		
	 5.5        Tax Appeals
	  	 	6	  
		
	 5.6        Personal Property
	  	 	6	  
		
	 5.7        Intellectual Property
	  	 	7	  
		
	 5.8        Liquor License
	  	 	7	  
		
	 5.9        Continued Marketing of the Hotel for Sale
	  	 	7	  
		
	 5.10      Operations of the Property
	  	 	7	  

  

					
		 	- i -	 	Table of Contents

					
		
	 6.      Closing
	  	 	7	  
		
	 6.1        Closing Mechanics
	  	 	8	  
		
	 6.2        Seller’s Deliveries
	  	 	8	  
		
	 A.       Deed
	  	 	8	  
		
	 B.        Bill of Sale
	  	 	8	  
		
	 C.        General Assignment
	  	 	8	  
		
	 D.       Notices of Assignment and Assumption
	  	 	8	  
		
	 E.        Withholding and Tax Certificates
	  	 	8	  
		
	 F.        Affidavit of Title/Gap Indemnity
	  	 	8	  
		
	 G.       Closing Statement
	  	 	8	  
		
	 H.       Evidence of Authority
	  	 	8	  
		
	 I.         Reaffirmation
	  	 	9	  
		
	 J.         Documentary Transfer Tax Declaration
	  	 	9	  
		
	 K.       Delivery of Keys and Property Documents
	  	 	9	  
		
	 L.        Management Agreement
	  	 	9	  
		
	 M.      Other Instruments
	  	 	9	  
		
	 6.3        Buyer’s Deliveries
	  	 	9	  
		
	 A.       Net Purchase Price
	  	 	9	  
		
	 B.        As Is Agreement
	  	 	9	  
		
	 C.        Closing Document Counterparts
	  	 	9	  
		
	 D.       Other Instruments
	  	 	9	  
		
	 7.      Prorations, Credits and Closing Costs
	  	 	9	  
		
	 7.1        Proration Items
	  	 	9	  
		
	 A.       Real Estate Taxes and Assessments
	  	 	10	  
		
	 B.        Hotel Revenues
	  	 	10	  
		
	 (i)       Guest Ledger Receivables
	  	 	10	  
		
	 (ii)      Booking Deposits
	  	 	10	  
		
	 (iii)     Vending Machines
	  	 	10	  
		
	 (iv)     Petty Cash
	  	 	10	  
		
	 (v)      Accounts Receivable
	  	 	10	  
		
	 C.        Utility Expenses and Deposits
	  	 	11	  
		
	 D.       Hotel Consumables
	  	 	11	  
		
	 E.        Other Operating Expenses
	  	 	11	  

  

					
		 	- ii -	 	Table of Contents

					
		
	 F.        Hotel Employee Costs
	  	 	12	  
		
	 7.2        Closing Statement and Schedules
	  	 	12	  
		
	 7.3        Reproration after Closing
	  	 	12	  
		
	 7.4        Seller’s Closing Costs
	  	 	12	  
		
	 7.5        Buyer’s Closing Costs
	  	 	13	  
		
	 8. Representations and Warranties
	  	 	13	  
		
	 8.1        Seller’s Representations and Warranties
	  	 	13	  
		
	 A.       Organization, Power and Authority
	  	 	13	  
		
	 B.        Title to Real and Personal Property
	  	 	13	  
		
	 C.        Contracts and Leases
	  	 	13	  
		
	 D.       Litigation Proceedings
	  	 	14	  
		
	 E.        Other Property Conditions
	  	 	14	  
		
	 (i)       Land Use Regulations
	  	 	14	  
		
	 (ii)      Insurance Compliance
	  	 	14	  
		
	 (iii)     Taxes and Assessments
	  	 	14	  
		
	 (iv)     Special Assessments and Exactions
	  	 	14	  
		
	 F.        Compliance with Laws
	  	 	14	  
		
	 G.       Employees
	  	 	14	  
		
	 H.       Management Agreement and Franchise Agreement
	  	 	15	  
		
	 I.         Taxes
	  	 	15	  
		
	 J.         Licenses and Permits
	  	 	15	  
		
	 K.       Foreign Person
	  	 	15	  
		
	 L.        Intentionally Deleted
	  	 	15	  
		
	 M.      Patriot Act
	  	 	15	  
		
	 N.       Financial Information
	  	 	15	  
		
	 O.       Knowledge of Seller
	  	 	15	  
		
	 8.2        Seller’s Warranties Deemed Modified
	  	 	16	  
		
	 8.3        Claims of Breach Prior To Closing
	  	 	16	  
		
	 8.4        Survival and Limits On Buyer’s Claims
	  	 	16	  
		
	 8.5        Buyer’s Representations and Warranties
	  	 	17	  
		
	 A.       Organization, Power and Authority
	  	 	17	  
		
	 B.        No Bankruptcy
	  	 	17	  

  

					
		 	- iii -	 	Table of Contents

					
		
	 C.        Sophisticated Buyer
	  	 	17	  
		
	 D.       Reimbursement of Rebates
	  	 	18	  
		
	 E.        Patriot Act
	  	 	18	  
		
	 F.        Survival of Buyer’s Representation and Warranties
	  	 	18	  
		
	 8.6        Buyer’s Assumption of Seller Obligations.
	  	 	19	  
		
	 A.       Wages and Salaries
	  	 	19	  
		
	 B.        Contracts
	  	 	19	  
		
	 C.        Guest Baggage
	  	 	19	  
		
	 D.       Safe Deposit Boxes
	  	 	19	  
		
	 9.      Casualty and Condemnation
	  	 	20	  
		
	 9.1        Major Event
	  	 	20	  
		
	 9.2        Closing Despite Casualty/Condemnation
	  	 	20	  
		
	 10.    Other Conditions to Closing
	  	 	20	  
		
	 10.1      Conditions to Buyer’s Obligations
	  	 	21	  
		
	 A.       Representations
	  	 	21	  
		
	 B.        Title Policy
	  	 	21	  
		
	 C.        Seller Compliance
	  	 	21	  
		
	 D.       Seller’s Deliveries
	  	 	21	  
		
	 10.2      Conditions to Seller’s Obligations
	  	 	21	  
		
	 A.       Representations
	  	 	21	  
		
	 B.        Buyer Compliance
	  	 	21	  
		
	 C.        Buyer’s Deliveries
	  	 	21	  
		
	 10.3      Waiver of Conditions
	  	 	21	  
		
	 11.    Transaction Issues: Brokers, Confidentiality and Indemnity
	  	 	22	  
		
	 11.1      Brokers
	  	 	22	  
		
	 11.2      Confidentiality
	  	 	22	  
		
	 11.3      Indemnity
	  	 	23	  
		
	 12.    Default At or Prior to Closing
	  	 	23	  
		
	 12.1      Buyer Default
	  	 	23	  
		
	 12.2      Seller Default
	  	 	24	  
		
	 13.    Notices
	  	 	25	  
		
	 14.    General Provisions
	  	 	26	  
		
	 14.1      Execution Necessary
	  	 	26	  

  

					
		 	- iv -	 	Table of Contents

					
		
	 14.2      Counterparts
	  	 	26	  
		
	 14.3      Successors and Assigns
	  	 	26	  
		
	 14.4      Governing Law
	  	 	26	  
		
	 14.5      Entire Agreement
	  	 	27	  
		
	 14.6      Time is of the Essence
	  	 	27	  
		
	 14.7      Interpretation
	  	 	27	  
		
	 14.8      Survival
	  	 	27	  
		
	 14.9      Further Assurances
	  	 	27	  
		
	 14.10    Exclusive Application
	  	 	27	  
		
	 14.11    Partial Invalidity
	  	 	28	  
		
	 14.12    Waiver Rights
	  	 	28	  
		
	 14.13    No Implied Waiver
	  	 	28	  
		
	 14.14    Rights Cumulative
	  	 	28	  
		
	 14.15    Attorney’s Fees
	  	 	28	  
		
	 14.16    Waiver of Jury Trial
	  	 	28	  
		
	 14.17    Facsimile Signatures
	  	 	28	  
		
	 14.18    No Recordation
	  	 	29	  
		
	 14.19    Maximum Aggregate Liability
	  	 	29	  
		
	 14.20    Exhibits and Schedules
	  	 	29	  
		
	 14.21    Jurisdiction
	  	 	29	  
		
	 15.        Retention of Hotel Employees
	  	 	29	  
		
	 16.    On-Going Management of Hotel
	  	 	30	  
		
	 17.    Independent Audit
	  	 	30	  

  

					
		 	- v -	 	Table of Contents

 SCHEDULE OF EXHIBITS 

 

					
	 EXHIBIT
	  	 TITLE
	  	REFERENCE
PARAGRAPH
	 A.
	  	Legal Description of Land	  	Recitals
			
	 A-1
	  	Purchase Price Allocation	  	3.3
			
	 B.
	  	Deed	  	6.2
			
	 C.
	  	Bill of Sale	  	6.2
			
	 D.
	  	Reserved	  	
			
	 E.
	  	General Assignment	  	6.2
			
	 F.
	  	Reserved	  	6.2
			
	 G.
	  	Non-Foreign Affidavit	  	6.2
			
	 H.
	  	Affidavit of Title	  	6.2
			
	 I.
	  	Reserved	  	
			
	 J.
	  	Reserved	  	6.2
			
	 K.
	  	Reserved	  	6.2
			
	 L.
	  	As Is Agreement	  	6.3
			
	 M.
	  	Reserved	  	
			
	 N.
	  	List of Contracts	  	8.1
			
	 O.
	  	List of Hotel Employees	  	Schedule A
			
	 P.
	  	Management Agreement	  	17

  

					
		  	- i -	  	Schedule of Exhibits

 Exhibit 10.2 
 HOTEL PURCHASE AND SALE AGREEMENT 
 THIS HOTEL PURCHASE AND SALE
AGREEMENT (this “Agreement”) is made and entered into as of June 15, 2011 (the “Effective Date”), by and between IND EAST VILLAGE SD HOLDINGS, LLC, a Delaware limited liability company
(“Seller”), and CHSP SAN DIEGO LLC, a Delaware limited liability company (“Buyer”). 

R E C I T A L S: 

WHEREAS, Seller is the owner of that certain hotel and parcel of land located in San Diego, California and more particularly
described on Exhibit A (the “Land”), and the Property (as hereinafter defined), all commonly known as the Hotel Indigo San Diego; and, 
 WHEREAS, Buyer desires to acquire the Property from Seller for the purchase price of Fifty-Five Million Five Hundred Thousand and No/100 Dollars ($55,500,000.00) (the “Purchase
Price”) and Seller desires to convey the Property to Buyer all upon the terms and conditions hereinafter set forth. 

NOW, THEREFORE, for and in consideration of the promises, covenants, representations and warranties hereinafter set forth, the sum
of One Hundred Dollars ($100.00) and other good and valuable consideration in hand paid by Seller to Buyer and by Buyer to Seller upon the execution of this Agreement, the receipt and sufficiency of which are hereby acknowledged by each of the
parties hereto, the parties hereto hereby agree as follows: 
 1. Deadlines and Definitions. 

1.1 Deadlines. Wherever used in this Agreement, the following terms shall have the meanings set forth below:

 “Closing Deadline” shall mean June 17, 2011, or such other later date mutually agreed
upon by Seller and Buyer, but, in all events, not later than June 30, 2011. 
 “Due Diligence
Deadline” shall mean 6:00 P.M. local Atlanta, Georgia time on the Effective Date. 
 1.2
Definitions. In addition, wherever used in this Agreement, the terms herein shall have the meanings set forth on Schedule A. 
 2. Purchase and Sale. Seller agrees to convey, transfer and assign, and Buyer agrees to acquire, accept and assume, the Property, on the terms, conditions and provisions set forth in this
Agreement. 

  
 Purchase
Agreement 

 3. Purchase Price. The Purchase Price, subject to the prorations and credits
set forth herein, shall be due and payable as follows: 
 3.1 Deposit. Within one (1) Business
Day after the full and final execution of this Agreement, Buyer shall make the Deposit, in immediately available funds with Closing Agent. Notwithstanding any provision in this Agreement to the contrary, if Buyer fails to timely make the Deposit as
provided herein, then Seller, at Seller’s option, may Terminate this Agreement and, if Seller elects such option, the parties shall have no further rights or obligations hereunder except the rights and for obligations which expressly survive
the termination of this Agreement. Except as expressly otherwise set forth herein, the Deposit shall be non-refundable to Buyer, but shall be applied against the Purchase Price on the Closing Date. 

3.2 Remainder of Purchase Price. At Closing, Buyer shall pay to Seller an amount equal to the difference
between (a) the Purchase Price, and (b) the Deposit paid to Closing Agent, subject to the credits, prorations and adjustments set forth herein, in cash by federal reserve bank wire transfer to such account and bank as Seller shall
designate in writing to Buyer at or prior to Closing to be confirmed received in Seller’s account on or before 3:00 p.m. Atlanta, Georgia time on the Closing Date. 

3.3 Intentionally Deleted.  
 4. Buyer’s Due Diligence and Inspection Rights; Termination Right. 
 4.1 Review of Property and Property Documents. Until Closing, and subject to the terms of Paragraph 4.2, Seller shall provide Buyer and Buyer’s Representatives with access to the
Property and the Property Documents, wherever located, upon reasonable prior notice at reasonable times during business hours, with the right and license to conduct Due Diligence with respect to the Property. Buyer covenants and agrees that it will
inspect the Hotel at its sole cost and expense and will not allow any liens to attach against the Hotel as a result of its Due Diligence. In the event of termination of this Agreement, upon written request from Seller, Buyer shall deliver promptly
to Seller copies of all Buyer’s Diligence Reports, but with no liability for the accuracy thereof and no representation that Seller or any other party may rely thereon; provided, however that Seller shall pay any copying and delivery fees,
costs or expenses actually incurred in connection with the copying and delivery of such Buyer Diligence Reports. Except as otherwise expressly set forth in this Agreement, Buyer acknowledges that the Property Documents may not be complete in all
respects and that Seller may not have complete information concerning the Hotel and Buyer acknowledges that such incomplete information should not be relied upon and should be verified to Buyer’s satisfaction during Due Diligence. 

4.2 Guidelines for Inspection Rights. Buyer’s rights to conduct Due Diligence shall be subject to the
following further requirements: (a) Due Diligence may only be performed during business hours and must not interfere with the operation or management of the Hotel or disturb the rights of guests; (b) Buyer must provide Seller with at least
twenty-four (24) hours prior notice of its intent to perform Due Diligence on the Property and Seller shall have the right to have a representative of Seller present during any such entry upon the Property by Buyer or Buyer’s
Representatives; (c) Buyer shall not contact any Hotel contractor, Hotel guest, or Hotel Employee without Seller’s prior written consent; (d) Seller or its designated representative shall have the right to pre-approve, and be present
during, any physical testing of the Property; 

  

					
		 	- 2 -	 	Purchase Agreement

 
(e) Buyer shall immediately return the Property to the condition existing prior to any tests and inspections in all material respects; (f) Due Diligence activities may not affect the
appearance of the Hotel in any way; and (g) Buyer may not conduct any invasive sampling, boring, testing, or analysis of soils, surface water or groundwater at the Property without first having obtained prior written approval of Seller, which
may not be unreasonably withheld, conditioned or delayed. Prior to such time as Buyer or any of Buyer’s Representatives enter the Property, Buyer shall (i) obtain policies of general liability insurance which insure Buyer and Buyer’s
Representatives with liability insurance limits of not less than $2,000,000 combined single limit for personal injury and property damage and name Seller as an additional insured and which are with such insurance companies, provide such coverages
and carry such other limits as Seller shall reasonably require, and (ii) provide Seller with certificates of insurance evidencing that Buyer has obtained the aforementioned policies of insurance. Notwithstanding any provision in this Agreement
to the contrary, except in connection with the preparation of a so-called “Phase I” environmental report with respect to the Property, the issuance of a standard “zoning letter” with respect to the Property, the issuance of
a report by The Planning & Zoning Resource Corp. or the issuance of certain other licenses and permits, including without limitation the liquor license, Buyer shall not contact any governmental official or representative regarding hazardous
materials on, or the environmental condition of, the Property, or the status of compliance of the Property with zoning, building code or similar Laws, without Seller’s prior written consent thereto. In addition, if Seller’s consent is
obtained by Buyer, Seller shall be entitled to receive at least three (3) Business Days prior written notice of the intended contact and to have a representative present when Buyer has any such contact with any governmental official or
representative. 
 4.3 Title and Survey Examination. If not previously delivered, Seller shall
deliver to Buyer a copy of Seller’s most recent survey of the Property, if any, in Seller’s possession, and either (i) Seller’s title insurance policy in Seller’s possession, or (ii) a Title Commitment dated within 90
days of the Effective Date. 
 A. Title and Survey Objections. Buyer shall have until ten
(10) days prior to the Due Diligence Deadline to notify Seller in writing of any Title Objections; any such notice shall be accompanied by the Title Commitment and Survey and any other materials which evidence or disclose such objections to
title. If Buyer fails to notify Seller of any Title Objections on or before such date, then, notwithstanding any other provisions set forth herein, such failure to notify Seller shall constitute a waiver of such right to object to such matters
existing as of the Effective Date. Seller shall notify Buyer within five (5) Business Days of its receipt of such notice if Seller has elected to Remove any such Title Objections. If Seller fails to respond within such timeframe, Seller shall
be deemed to have declined to remove such Title Objections (other than Required Removal Items). If Seller does not covenant to Buyer that Seller will Remove the Title Objections prior to Closing, Buyer shall have until the Due Diligence Deadline to
elect in writing, either to (a) terminate this Agreement, in which case the Deposit shall be returned to Buyer and the parties shall have no further rights or obligations hereunder, except for those which expressly survive any such termination,
or (b) waive its Title Objections (other than Required Removal Items) and proceed with the Transaction pursuant to the remaining terms and conditions of this Agreement. If Buyer fails to give Seller notice of its election by such time, it shall
be deemed to have elected the option contained in clause (b)

  

					
		 	- 3 -	 	Purchase Agreement

 
above. Any such Title Objection so waived (or deemed waived) by Buyer shall be deemed to constitute a Permitted Title Exception and the Closing shall occur as herein provided without any
reduction of or credit against the Purchase Price. 
 B. Cure of Title Matters. At Closing, if this
Agreement is not Terminated as permitted herein, Seller shall Remove or cause to be Removed any Title Objections to the extent (and only to the extent) that the same constitute Required Removal Items or Seller has expressly agreed to Remove a Title
Objection pursuant to subsection (A) above. 
 C. Intentionally Deleted.  

D. Pre-Closing “Gap” Defects. Whether or not Buyer shall have furnished to Seller any notice of
Title Objections before the Due Diligence Deadline, Buyer may at or prior to Closing notify Seller in writing of any defects in title arising between the earlier of (i) the effective date of Buyer’s Title Commitment and (ii) the Due
Diligence Deadline, and the Closing Date. With respect to any Title Objections set forth in such notice, Buyer shall have the same rights as those which apply to any notice of defects in title resulting from a notice of title defects by Buyer on or
before the Due Diligence Deadline and Seller shall have the same rights and obligations to cure the same at or prior to Closing. If necessary, the date for Closing shall be automatically extended (by not more than fifteen (15) days) to allow
Seller to cure such pre-closing “gap” defects. 
 E. Status of Title and Survey as of Effective
Date. Notwithstanding anything to the contrary contained in this Section 4.3, Buyer hereby acknowledges and agrees that it has received and reviewed that certain ALTA/ASCM Land Title Survey of Hotel Indigo, prepared for IND East Village
SD Holdings, LLC, First American Title Insurance Company, Terra Nova Title & Settlement Services, and Chesapeake Lodging Trust, CHSP San Diego LLC and CHSP TRS San Diego LLC, prepared by Burkett & Wong Structural & Civil
Engineers & Surveyors, bearing the seal and certification of Casey R. Lynch, P.L.S. No. 8380, dated May 16, 2011, last revised June 2, 2011, for and with respect to the Property (the “Updated Survey”) and
that certain Title Insurance Commitment, Commitment No. NCS-483876-SF, with a commitment date of May 16, 2011, last updated on June 1, 2011, issued by the Title Company for the Property (the “Final Title Insurance
Commitment”), and that it has no Title Objections with respect to any matters or items disclosed or shown on or in the Updated Survey or Final Title Insurance Commitment (and shall not send to Seller any Title Objections with respect to
same) and shall take title to the Property subject to all such matters which shall constitute Permitted Title Exceptions. 
 4.4 As-Is, Where-Is, With All Faults Sale. Because Buyer is to conduct such Due Diligence as Buyer deems necessary or appropriate prior to the Due Diligence Deadline, Buyer shall
independently confirm to its satisfaction all information that it considers material to its purchase of the Property or the Transaction, and the Property shall be sold, and Buyer shall accept possession of the Property on the Closing Date, “AS
IS, WHERE IS, WITH ALL FAULTS”, with no right of setoff or reduction in the Purchase Price, except as otherwise expressly provided in this Agreement. Without limiting the foregoing, except for Seller’s Warranties, none of the Seller
Parties have or shall be deemed to have made any verbal or 

  

					
		 	- 4 -	 	Purchase Agreement

 
written representations, warranties, promises or guarantees (whether express, implied, statutory or otherwise) to Buyer with respect to the Property, any matter set forth, contained or addressed
in the Documents (including, but not limited to, the accuracy and completeness thereof) or the results of Buyer’s Due Diligence. Notwithstanding the foregoing, such acknowledgment is not intended to, and shall not be construed to affect or
impair any rights or remedies that Buyer may have against Seller as a result of a breach of any of Seller’s Warranties. To evidence the foregoing, Buyer shall deliver to Seller at the Closing, an As Is Agreement as required by
Paragraph 6.3B. 
 4.5 Termination Right. If Buyer, in its sole and absolute discretion,
determines not to proceed with the Transaction or is not satisfied with any matters relating to the Property, Buyer may Terminate this Agreement by written notice to Seller at any time prior to the Due Diligence Deadline and Buyer shall be entitled
to the return of the Deposit. If, at or prior to the Due Diligence Deadline, Buyer has not delivered to Seller a termination notice as aforesaid, then Buyer shall be deemed to have accepted the condition of the Property (subject to Seller’s
compliance with the representations, warranties and covenants of this Agreement, and the conditions set forth in Paragraph 10) and shall thereafter have no right to Terminate this Agreement on account of such Due Diligence termination right
under this Paragraph 4. If after the Due Diligence Deadline Buyer conducts further Due Diligence, Buyer acknowledges and agrees that Buyer shall have no further right to terminate this Agreement with respect to such further Due Diligence or
otherwise in accordance with this Paragraph 4 after the Due Diligence Deadline, except as otherwise expressly provided in this Agreement. 
 5. Seller’s Covenants. Seller agrees that between the Effective Date and the Closing Date: 
 5.1 No Alteration of Title. Seller shall not transfer or further alter or encumber in any way Seller’s title to the Real Property as it exists as of the Effective Date without written
notice to, and the prior written consent of, Buyer. If Buyer fails to object in writing to any such proposed instrument within three (3) Business Days after receipt of the aforementioned notice, Buyer shall be deemed to have approved the
proposed instrument. Buyer’s consent shall not be unreasonably withheld or delayed with respect to any such instrument that is proposed prior to the Due Diligence Deadline. 

5.2 Intentionally Deleted.  

5.3 Contracts. Except as it relates to “Excepted Contracts” (hereinafter defined), if Seller
desires to (i) enter into any new Contracts, (ii) cancel, modify, amend, extend or renew any existing Contracts, or (iii) waive any default under, accept any surrender of, any Contracts, Seller shall deliver to Buyer written notice of
such action, which notice shall contain information regarding the proposed action that Seller believes is reasonably necessary to enable Buyer to make informed decisions with respect to the advisability of the proposed action. Except for Contracts
that can be terminated, without penalty, upon thirty (30) days (or less) written notice from the owner of the Property (“Excepted Contracts”), Seller shall not be entitled to take such action without either (A) prior
written notice to Buyer, provided such written notice is received by Buyer on or before three (3) Business Days before the Due Diligence Deadline, and 

  

					
		 	- 5 -	 	Purchase Agreement

 
(B) thereafter, Buyer’s prior written consent, which consent will not be unreasonably withheld, conditioned or delayed (and if no response by Buyer is made within three
(3) Business Days after Buyer’s receipt of such request and all documents related thereto, such consent shall be deemed to have been granted). Upon delivery of such written consent, such Contract or modification thereof shall thereupon be
included or excluded, as the case may be, within or from the definition of “Contracts” set forth herein. Seller shall promptly provide Buyer with true, correct and complete copies of any Contract, modification, or amendment entered into by
Seller. Notwithstanding any provision of this Agreement to the contrary, without any requirement for notice or consent from Buyer, Seller may, but shall not be obligated to, pursue any of its legal rights to enforce any Contract. 

5.4 Status of Property. Between the Effective Date and Closing Seller shall maintain and keep the Property
in a manner consistent with Seller’s past practices with respect to the Property; provided, however, that, subject to Buyer’s right to terminate this Agreement prior to the Due Diligence Deadline in accordance with the terms
of Paragraph 4 hereof and in light of Buyer’s right to conduct Due Diligence, Buyer hereby agrees that Buyer shall accept the Property subject to, and Seller shall have no obligation to cure, (a) any violations of Laws, or (b) any
physical condition that would give rise to violations of Laws, whether the same now exist or arise prior to Closing. 
 5.5 Tax Appeals. Seller shall have the right to continue and to control the progress of and to make all decisions with respect to any contest of the real estate taxes and personal property
taxes for the Property due and payable during the Closing Tax Year and all prior Tax Years. Buyer hereby acknowledges and agrees that Seller has appealed the taxes for the Property with respect to the 2009 and 2010 Tax Years, such tax appeals remain
pending, and following Closing, Seller shall continue to control such tax appeals without any interference from Buyer or any of Buyer’s Representatives; provided, however, Seller will use commercially reasonable efforts to provide Buyer with
periodic updates regarding of the ongoing status of such pending tax appeals. Buyer shall have the right to control the progress of and to make all decisions with respect to any tax contest of the real estate taxes and personal property taxes for
the Property due and payable during all Tax Years subsequent to the Closing Tax Year. All real estate and personal property tax refunds and credits received after Closing with respect to the Property shall be applied in the following order of
priority: first, to pay the out-of pocket costs and expenses (including reasonable attorneys’ fees, expenses and disbursements and fees contingent on the amount of recovery) incurred in connection with obtaining such tax refund or credit; and
second, apportioned between Buyer and Seller as follows: (a) any refunds or credits attributable to the Closing Tax Year shall be apportioned between Buyer and Seller in the manner provided in Paragraph 7.1; (b) any refunds or credits
attributable to any period prior to the Closing Tax Year, shall be paid to Seller; and (c) any refunds or credits attributable to any period after the Closing Tax Year shall be paid to Buyer. Buyer and Seller agree to cooperate with each other
and to execute any and all documents reasonably requested in furtherance of the foregoing. The provisions this Paragraph shall survive the Closing. 
 5.6 Personal Property. Seller shall not remove any of the Property, including Personal Property, from the Real Property nor use any of the Personal Property prior to the Closing Date except
such use thereof as is normal and customary in the operation and maintenance of the Property. Seller covenants that items of all Personal Property shall be maintained at Seller’s customary level of quality and will be available and conveyed to
Buyer on the Closing Date. 

  

					
		 	- 6 -	 	Purchase Agreement

 5.7 Intellectual Property. Upon Buyer’s reasonable
request, Seller shall in good faith, but without cost or obligation to itself, exercise reasonable efforts to assist Buyer in Buyer’s efforts to obtain authorization or consent from third party lessors or licensors to the assignment or other
transfer to Buyer of such computer hardware, software or system(s) leases or licenses as are integral to the operation of the Property as of the Effective Date. Seller will not be required to pay any sums or otherwise incur any obligation in
connection with any such requested assignment or transfer. Buyer shall be solely responsible for any early termination, transfer, re-licensing or other fees of any nature payable in connection any such assignment or transfer. Buyer shall and hereby
does indemnify and hold harmless Seller from and against any loss, liability, damage, cost or expense, including reasonable attorneys’ fees and legal costs, arising from or related to the early termination or breach of any such leases or
licenses as a result of such transfer or assignment. In the absence of an express assignment of any such lease or license, the Buyer acknowledges that no such lease or license shall be transferred to Buyer at Closing. Buyer also acknowledges that
Seller and the Seller Parties are retaining all right, title and interest in and to all their respective intellectual property rights that may be used within or comprise any part of the Property except as may be specifically licensed to Buyer
pursuant to Exhibit P. 
 5.8 Liquor License. The liquor license for the Hotel is
personal to Seller and will not be assigned to Buyer. The liquor license will continue to be held by IHG Management (Maryland) LLC, as manager, and such license will continue to be used to operate the liquor facilities at the Hotel after the Closing
in accordance with the Management Agreement. 
 5.9 Continued Marketing of the Hotel for Sale.
Seller shall not negotiate, execute or otherwise pursue offers for the purchase and sale of the Property with any party, other than Buyer, during the term of this Agreement. 

5.10 Operation of the Property. Seller covenants that between the Effective Date and Closing, it will
(a) operate the Hotel in a commercially reasonable manner consistent with Seller’s past practice, and (b) maintain its books of account and records in a commercially reasonable manner, in accordance with generally accepted accounting
principles consistently applied. Seller shall continue to use commercially reasonable efforts to take guest room reservations and to book functions and meetings. All advanced Bookings shall continue to be booked in accordance with
Seller’s past practice and custom. Except as otherwise expressly permitted by Seller hereunder, Seller shall not take any action or fail to take action the result of which would have a material adverse effect on the Hotel or would cause any of
the representations and warranties contained in Paragraph 8.1 to be untrue in any material respect as of Closing. 
 6.
Closing. The time and place of Closing shall be held at 9:00 a.m. local Atlanta, Georgia time on the Closing Deadline at or through the offices of the Closing Agent. 

  

					
		 	- 7 -	 	Purchase Agreement

 6.1 Closing Mechanics. Buyer and Seller shall conduct an
escrow-style closing through the Closing Agent so that it will not be necessary for any party to attend the Closing (Buyer and Seller shall have pre-Closings to finalize and sign all documents not later than one Business Day prior to Closing, and
deliver such items to the Closing Agent for receipt not later than one Business Day prior to Closing). Not later than one Business Day prior to Closing, Buyer shall deliver to Closing Agent the Purchase Price and the other amounts/items required of
Buyer as elsewhere set forth herein. Upon Closing, Closing Agent shall record the Deed and Seller shall deliver to Buyer possession of the Property, subject only to the Permitted Title Exceptions, and the other items required of Seller as elsewhere
set forth herein. 
 6.2 Seller’s Deliveries. At Closing, Seller shall deliver or cause to be
delivered to Buyer the following, including executed counterparts thereof, to the extent applicable: 
 A.
Deed. A Grant Deed in the form of Exhibit B, together with a preliminary change of ownership report (to be completed by Buyer). 
 B. Bill of Sale. A Bill of Sale in the form of Exhibit C. 
 C. General Assignment. A General Assignment in the form of Exhibit E. 
 D. Notices of Assignment and Assumption. If applicable, a written notice to each party (other than Seller) to any of the Contracts, which are being assigned and assumed as contemplated in
this Agreement, in a form and of a substance reasonably acceptable to Seller and Buyer. 
 E. Withholding
and Tax Certificates. A certificate in the form of Exhibit G with respect to Section 1445 of the Internal Revenue Code stating whether or not Seller is a foreign person as defined in said Section 1445 and
applicable regulations thereunder and California Form 593-C or any other corresponding state form required. 

F. Affidavit of Title/Gap Indemnity. An Affidavit of Title with respect to liens and title matters in
substantially the form of Exhibit H and an affidavit executed by Seller to the effect that Seller is not a “nonresident” within the meaning of California Revenue and Taxation Code Section 18662 or successor
statutes. 
 G. Closing Statement. A Closing Statement Agreement in a form reasonably acceptable to
Seller and Buyer. Seller and Buyer shall authorize and instruct the Closing Agent to file, as the “reporting person,” Internal Revenue Service Form 1099-B (“Proceeds from Real Estate, Broker, and Barter Exchange
Transactions”), if and as required by Section 6045(d) of the Code. 
 H. Evidence of
Authority. Evidence that Seller has the requisite power and authority to execute and deliver, and perform under, this Agreement and all Closing Documents. 

  

					
		 	- 8 -	 	Purchase Agreement

 I. Reaffirmation. A reaffirmation of the representations,
warranties and covenants set forth in Paragraph 8 hereof in a form and of a substance reasonably acceptable to Seller and Buyer. 
 J. Documentary Transfer Tax Declaration. If applicable, a duly completed real estate documentary transfer tax declaration or return and any other similar documents required in connection
with any tax imposed by any governmental authority in connection with the Transaction. 
 K. Delivery of
Keys and Property Documents. The Property Documents and all keys to the Property or any portion thereof. 

L. Management Agreement. The Management Agreement as described in Paragraph 16 below. The form of Management
Agreement is attached hereto as Exhibit P. 
 M. Other Instruments. Such other
instruments or documents as may be reasonably requested by Buyer or the Title Company, or reasonably necessary, to effect or carry out the purposes of this Agreement. 

6.3 Buyer’s Deliveries. At the Closing, Buyer shall deliver or cause to be delivered to Seller the
following: 
 A. Net Purchase Price. The net Purchase Price due at Closing under this Agreement.

 B. As Is Agreement. The As Is Agreement of Buyer in the form of Exhibit L
attached hereto and incorporated herein by this reference. 
 C. Closing Document Counterparts.
Executed counterparts of any of the Closing Documents described in Paragraph 6.2 which are to be signed by Buyer. 
 D. Other Instruments. Such other funds, instruments or documents as may be reasonably requested by Seller or the Title Company, or reasonably necessary, to effect or carry out the purposes
of this Agreement. 
 7. Prorations, Credits and Closing Costs. 

7.1 Proration Items. Except as otherwise noted, in each such proration set forth below, the portion thereof
allocable to periods beginning as of the Closing Proration Time shall be credited to Buyer, or charged to Buyer, as applicable, and the portion thereof allocable to periods ending as of the Closing Proration Time shall be credited to Seller, or
charged to Seller, as applicable, all of which prorations shall be made at Closing or, in the case of allocations to be made after Closing, upon receipt of such payments or payment of such expenses. The following items shall be prorated between
Buyer and Seller or credited to Buyer or Seller: 

  

					
		 	- 9 -	 	Purchase Agreement

 A. Real Estate Taxes and Assessments. All ad valorem real
estate and personal property taxes, with respect to the Property for the Closing Tax Year (regardless of the year for which such taxes are assessed) shall be prorated as of the Closing Proration Time. Seller shall pay all installments of special
assessments due and payable prior to the Closing Date and Buyer shall pay all installments of special assessments due and payable on and after the Closing Date; provided, however, that Seller shall not be required by the foregoing to
pay any installments of special assessments which have not been confirmed or which relate to projects that have not been completed on the Effective Date. If tax bills for the Closing Tax Year are not available on the Closing Date, taxes shall be
prorated at Closing based upon the tax bills for the previous Tax Year, or, if available, based upon the current assessed valuation and current millage rates, and in such event Seller and Buyer shall reprorate the taxes as actual or final tax bills
for the current year are available. Buyer acknowledges that the consummation of the purchase and sale contemplated by this Agreement will result in a reassessment of the Property due to the change of ownership, and in this regard, Buyer hereby
agrees to pay all such real estate taxes accruing with respect to the Real Property from and after the Closing Date and Buyer hereby agrees to and does indemnify and save Seller harmless from and against all liabilities for such taxes.

 B. Hotel Revenues.  

(i) Guest Ledger Receivables. Seller shall receive a credit at Closing for all Guest Ledger Receivables for all
room nights up to and including the room night immediately prior to the night when the Closing Proration Time occurs, and Buyer shall be entitled to the amounts of Guest Ledger Receivables for the room nights after the Closing Proration Time. Seller
and Buyer shall each receive a credit of fifty percent (50%) of Guest Ledger Receivables for the room night when the Closing Proration Time occurs. Seller shall receive the income from all restaurant and bar facilities located on the Real
Property through the Closing Proration Time and Buyer shall receive such income thereafter. 
 (ii) Booking
Deposits. Buyer shall receive a credit at Closing for advance payments and deposits, if any, under Bookings to the extent the Bookings relate to a period after the Closing Proration Time. Buyer shall assume and honor for its account all Bookings
relating to dates after the Closing Proration Time provided that Seller provides a written account to Buyer of all such Bookings at the Closing. 
 (iii) Vending Machines. Vending machine monies will be removed by Seller as of the Closing Proration Time for the benefit of Seller. Buyer shall be entitled to any monies collected from any vending
machines after the Closing Proration Time. 
 (iv) Petty Cash. Seller shall receive a credit at Closing
for all petty cash funds and cash in the Hotel’s house banks at 100% of face value at the Closing Proration Time. 
 (v) Accounts Receivable. Seller shall retain all rights to all Accounts Receivable accrued through the Closing Proration Time and Buyer will be entitled to all Accounts Receivable that accrue after
the Closing Proration Time. Buyer shall cooperate 

  

					
		 	- 10 -	 	Purchase Agreement

 
with Seller in collecting the Accounts Receivable, at no cost or expense to Buyer other than any de minimis cost and expense or any cost or expense which Seller agrees in writing to
reimburse. Any amounts received by either party shall be applied first against the oldest Accounts Receivable outstanding for the person paying such amount unless such amount is being disputed. If any Accounts Receivable are paid to Buyer after the
Closing, Buyer shall immediately remit such amount to Seller. 
 C. Utility Expenses and Deposits.
Water, sewer, gas, waste fee, fire protection, electric and all other utility expenses and payments due or made with respect to the Property shall be prorated as of the Closing Proration Time, based upon the utility bills for the preceding
period, or, at Seller’s option, the meters with respect thereto read as of Closing Date. Seller shall assign and/or transfer all utility deposits, bonds, letters of credit or other security to Buyer and receive a credit therefor at Closing to
the extent that such utility deposits, bonds, letters of credit or other security are actually assigned or transferred to Buyer; Buyer shall notify all utilities, governmental agencies, suppliers and others providing services to the Real Property of
the prospective change in ownership and operation of the Hotel. Notwithstanding the foregoing, at Seller’s sole election, any utility deposit, bond, letter of credit or other security may be released directly to Seller and Seller shall not
receive such credit for any security so released. 
 D. Hotel Consumables. Seller shall sell to
Buyer, and Buyer shall purchase from Seller, inclusive in the Purchase Price for the Property, all of the food and beverages (including alcoholic and non-alcoholic to the extent permitted by Law), engineering, maintenance, and housekeeping supplies
(including soap and matches), stationery, printing and other supplies of all kinds (but specifically excluding any stationery, printing and other supplies with proprietary insignia or logos of the Seller or Seller’s affiliated entities)
(collectively, the “Consumables”) owned by Seller, located on the Property and used in connection with the ownership, use, operation and maintenance of the Hotel as of the Closing Date free and clear of all liens, claims and other
encumbrances, the same to be sold at Seller’s actual cost as disclosed by Seller’s books. The purchase price of the Consumables shall be determined by an actual inventory of all usable, unopened items of Consumables taken the day preceding
the Closing Date (or such other date as the parties hereto may reasonably agree upon) and shall be included at Closing in the Purchase Price. Buyer shall have no obligation to pay, and Seller shall have no right to an adjustment, under this
Paragraph for Hotel Consumables stocked in the guest rooms of the hotel on the Closing Date. Buyer will purchase (a) all unopened cases of Consumables, (b) all unopened individual items of Consumables which are a part of an opened case,
but which have not been stocked in the guest rooms of the Hotel, and (c) all food and similar unused perishables usable in the ordinary course of the operation of the Hotel. 

E. Other Operating Expenses. All other operating expenses of the Property not otherwise provided for in this
Paragraph 7, including payments due or owing under any Contracts assumed by Buyer at Closing and any fees as to which periodic payments are made for applicable assigned licenses and permits, if any, shall be prorated as of the Closing Proration
Time, except that no insurance policies shall be assumed as Contracts and no insurance premiums shall be prorated, and Seller shall be entitled to any refunds of any premiums for such policies. Seller shall assign and/or transfer all Contract
deposits or other security, if any, to Buyer and receive a credit therefor at Closing, to the extent that such deposits or other security has been assigned or transferred; Buyer shall cooperate with Seller to notify all such Contract parties of the
prospective change in ownership and operation of the Hotel. 

  

					
		 	- 11 -	 	Purchase Agreement

 F. Hotel Employee Costs. Notwithstanding anything to the
contrary contained in this Agreement, Seller and Buyer hereby acknowledge and agree that Seller shall cause to be paid, at or prior to Closing, all wages, salaries, and other employment benefits of hourly Hotel Employees and any salaried Hotel
Employees, together with any applicable employment and withholding taxes for such employees and any accrued and/or earned vacation and sick time, payroll taxes, and required contributions to health, pension, and other benefit plans for such
employees, for all periods prior to the Closing Date. The foregoing payments shall be paid by Seller and/or the existing manager of the Hotel, pursuant to existing Hotel practice and any existing governing agreements and plans, including, without
limitation, the existing management agreement for the Hotel. Such amounts shall not be subject to proration under this Agreement. 
 7.2 Closing Statement and Schedules. On or before five (5) days prior to the Closing Date, Seller shall deliver to Buyer a current schedule of the items and amounts to be prorated or
credited as set forth in this Paragraph 7, and a draft closing statement for the Transaction. 
 7.3
Reproration after Closing. The provisions of Paragraph 7 shall survive the Closing. If the actual amounts of any of the aforesaid proration items are unavailable as of the Closing Date, then such proration shall be made on the basis
of an amount reasonably estimated by Buyer and Seller at Closing and Buyer and Seller shall thereupon reprorate such items at such times as the exact amounts for such proration items become available (but such prorations will be made within six
(6) months after the Closing Date or upon such earlier date as the exact amounts for such proration become available); provided however, that no reproration adjustment shall be made if the net amount due is $1,000 or less, and provided that any
request is delivered to the party from whom payment is requested on or before six (6) months after Closing. In order to enable Seller to determine whether any such delayed adjustment is necessary, Buyer shall provide or cause to be provided to
Seller current operating and financial statements for the Property no later than three (3) months after Closing. Notwithstanding anything contained in this Paragraph 7.3 to the contrary, Paragraph 5.5 of this Agreement shall control with
respect to the apportionment between Seller and Buyer and the payment of any applicable refunds and/or credits resulting from the final resolution of any tax appeal with respect to the Closing Tax Year, and the parties acknowledge and agree that the
one-year proration time limit set forth in this Paragraph 7.3 shall not apply to any such apportionments pursuant to Paragraph 5.5. 
 7.4 Seller’s Closing Costs. Seller shall pay the following: (a) the fees and expenses of Seller’s attorneys, (b) all recording charges due on recordation of any Closing
Documents, (c) the commission due any broker retained by Seller, (d) one-half of all escrow agent fees (if any are charged in connection with this Transaction), (e) all transfer, documentary, excise, recording, sales or other taxes or
assessments imposed by virtue of the Transaction, and (f) the costs (including recording costs) of any cure of title defects required of Seller hereunder. 

  

					
		 	- 12 -	 	Purchase Agreement

 7.5 Buyer’s Closing Costs. Buyer shall pay the following:
(a) the costs of Buyer’s Due Diligence, (b) the fees and expenses of Buyer’s attorneys, (c) the commission due any broker retained by Buyer, (d) all lenders’ fees related to any financing to be obtained by Buyer;
(e) one-half of all escrow agent fees (if any are charged in connection with this Transaction), (f) the costs, expenses and premiums for the Title Commitment and Title Policy (including all examinations and reports in connection therewith,
and all endorsements and reinsurance required by Buyer), and (g) the costs of the Survey. 
 8. Representations and
Warranties. 
 8.1 Seller’s Representations and Warranties. Seller, as of the date of
the execution of this Agreement by Seller, represents and warrants to Buyer, and covenants with Buyer as follows: 
 A. Organization, Power and Authority. Seller is duly organized, validly existing and in good standing under the Laws of the State of its organization or incorporation; is, to the extent
required by Law, duly qualified to do business in the State in which the Property is located; has all necessary power to execute and deliver this Agreement and perform all its obligations hereunder; has all requisite power and authority to own the
Property and conduct the business as it is currently being conducted. Seller has the full power and authority to enter into and perform this Agreement and the execution, delivery and performance of this Agreement by Seller (i) has been duly and
validly authorized by all necessary action on the part of Seller, (ii) does not conflict with or result in a violation of the organizational documents of Seller (including, as applicable, its articles of incorporation, charter or by-laws, its
partnership agreement or its operating agreement), or any judgment, order or decree of any court or arbiter in any proceeding to which Seller is a party, and (iii) does not conflict with or constitute a material breach of, or constitute a
material default under, any contract, agreement or other instrument by which Seller is bound or to which it is a party. 
 B. Title to Real and Personal Property. Seller has not entered into any currently effective agreement to sell or dispose of all or any portion of its interest in and to the Real Property.
Except for the Personal Property leased to Seller, Seller has good and valid title to all Personal Property and the Personal Property to be transferred to Buyer is free and clear of liens, security interests and other encumbrances arising by,
through or under Seller. 
 C. Contracts and Leases. As of the Effective Date, except for
(i) the Contracts listed in Exhibit N attached hereto, and (ii) the Permitted Title Exceptions, Seller has not entered into any contracts, subcontracts or agreements affecting the Property that will be binding upon Buyer
after the Closing. Seller has not received any written notice of default from any parties to the Contracts that has not been cured by Seller on or before the date hereof. Seller has provided true and correct copies of the Contracts and such
Contracts, to the best of Seller’s actual knowledge, are in full force and effect. There are no leases, rental agreements and other occupancy agreements for the use and occupancy of any portion of the Property. 

  

					
		 	- 13 -	 	Purchase Agreement

 D. Litigation Proceedings. There is no current or pending
litigation against Seller (including, but not limited to, condemnation proceedings against the Property) of which Seller has received written notice and which, in the reasonable judgment of Seller, if determined adversely to Seller, would materially
adversely affect the Property. Seller has not (A) commenced a voluntary case, or, to the best of Seller’s actual knowledge, had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or
decree under any federal or state Law relative to bankruptcy, insolvency or other relief for debtors, (B) caused, suffered (to the best of Seller’s actual knowledge) or consented to the appointment of a receiver, trustee, administrator,
conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or (C) made an assignment for the benefit of
creditors. 
 E. Other Property Conditions.  

(i) Land Use Regulations. As of the Effective Date and except for violations that have been cured, Seller has not
received any written notice from any governmental authority with respect to the violation of any zoning law or ordinance applicable to the Property. 
 (ii) Insurance Compliance. As of the Effective Date, except for violations that have been cured, Seller has not received any written notice from any insurance company that carries any of
Seller’s insurance with respect to the Property that any portion of the Property violates any building, fire, or health code, statute, ordinance, rule or regulation applicable to the Property. 

(iii) Taxes and Assessments. Except as disclosed in the Title Commitment, as of the Effective Date, Seller has not
received any written notice of any proposed reassessments of the Property from the local taxing agencies that would, in the reasonable judgment of Seller, increase real property taxes or assessments against the Property. 

(iv) Special Assessments and Exactions. Except as disclosed in the Title Commitment, as of the Effective Date
Seller has not received any written notice from any governmental agency that any special assessments are pending, noted or levied against the Property. 
 F. Compliance with Laws. Seller has not received any written notice of any violation of any applicable Law with respect to the Hotel or the Property which has not been cured or dismissed.

 G. Employees. There are no collective bargaining agreements with any labor union with respect to
the Hotel Employees or the Hotel, and there are no written employment contracts with any of the Hotel Employees. 

  

					
		 	- 14 -	 	Purchase Agreement

 H. Management Agreement and Franchise Agreement. There is no
franchise agreement with respect to the Property and the existing management agreement with respect to the Property shall be terminated by Seller on or prior to the Closing Date, at no cost to Buyer, and Seller shall provide Buyer with evidence of
such termination at Closing which evidence shall be in a form reasonably satisfactory to Buyer. 
 I.
Taxes. Except as will be paid in full or prorated at Closing, Seller has not received written notice of any delinquencies with respect to the Taxes related to the Property; provided, however, the preceding representation does not apply to
ad valorem real estate taxes with respect to the Property. Seller has not received any written notice for an audit of any Taxes which has not been resolved or completed. 

J. Licenses and Permits. Seller has made available to Buyer true and correct copies of all licenses and
permits with respect to the Hotel in Seller’s possession. Seller has not received any written notice from any governmental authority or other person of (a) any violation, suspension, revocation or non-renewal of any licenses and permits
with respect to the Property or operation of the Hotel which has not been cured or dismissed or (b) any failure by Seller to obtain any licenses and permits required for the Property or the operation of the Hotel that has not been cured or
dismissed. 
 K. Foreign Person. Seller is a “United States person” (as defined in
Section 7701(a)(30)(B) or (C) of the Code) for the purposes of Section 1445(a) of the Code. 

L. Intentionally Deleted.  

M. Patriot Act. Neither Seller nor any controlling beneficial owner of Seller: (i) is listed on the
Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) pursuant to Executive Order No. 133224, 66 Fed. Reg. 49079 (September 25, 2001)
(the “Order”) and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable orders (such lists are collectively referred to as
the “Lists”); (ii) is a person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Orders; or (iii) is owned or controlled by, or acts for or on behalf of, any person
or entity on the Lists or any other person or entity who has been determined by competent authority to be subject to the prohibitions contained in the Order. 
 N. Financial Information. To the best of Seller’s actual knowledge, all of Seller’s financial information provided to Buyer is correct and complete in all material respects and
presents accurately the results of operations of the Property for the periods so indicated. 
 O. Knowledge
of Seller. When used in this Agreement, the term “to Seller’s knowledge”, “to Seller’s actual knowledge” and similar phrases shall mean and be limited to the actual (and not imputed, implied or constructive)
knowledge as of the effective date of such representation or warranty, without inquiry, of Travis Ray, Vice President of Seller, and Chris Jones, General Manager of the Hotel. Notwithstanding anything to the contrary set forth in this Agreement, the
foregoing individual shall not have any personal liability or liability whatsoever with respect to any matters set forth in this Agreement or any of Seller’s representations and/or warranties herein being or becoming untrue, inaccurate or
incomplete. 

  

					
		 	- 15 -	 	Purchase Agreement

 8.2 Seller’s Warranties Deemed Modified. Because
Buyer’s primary reliance on the status of the matters addressed by Seller’s Warranties is Buyer’s own Due Diligence, to the extent that Buyer (a) has actual knowledge of, or (b) has received information in writing or in
Buyer’s Diligence reports (whether such information is actually known to Buyer or not) that Seller’s Warranties are inaccurate, untrue or incorrect in any way, such Seller’s Warranties shall be deemed modified to reflect Buyer’s
knowledge or deemed knowledge, as the case may be. 
 8.3 Claims of Breach Prior To Closing. If at
or prior to the Closing, Seller obtains actual knowledge that any Seller’s Warranty is untrue, inaccurate or incorrect in any material respect, Seller shall give Buyer written notice thereof within five (5) Business Days of obtaining such
knowledge (but, in any event, prior to the Closing). After the Due Diligence Deadline but prior to the Closing, if Buyer or any Buyer’s Representative obtains actual knowledge that any Seller’s Warranty is untrue, inaccurate or incorrect
in any material respect, Buyer shall give Seller written notice thereof within five (5) Business Days after obtaining such knowledge (but, in any event, prior to the Closing). In either such event, Seller shall have the right to cure such
misrepresentation or breach and shall be entitled to a reasonable adjournment of the Closing (not to exceed fifteen (15) days) to attempt such cure. If Buyer fails to notify Seller within five (5) Business Days of obtaining knowledge that
any Seller’s Warranty is untrue, inaccurate or incorrect, then Buyer shall be deemed to waive such misrepresentation or breach of warranty. If any Seller’s Warranty is untrue, inaccurate or incorrect in any material respect as of the date
made, and Seller is unable to so cure such misrepresentation or breach, then Buyer, as its sole remedy shall elect either (a) to waive such misrepresentation or breach and consummate the Transaction without any reduction of or credit against
the Purchase Price, or (b) to Terminate this Agreement by written notice given to Seller on or before the Closing Date, in which event any Deposit shall be returned to Buyer. If any of Seller’s Warranties are untrue, inaccurate or
incorrect but are not, in the aggregate, untrue, inaccurate or incorrect in any material respect, Buyer shall be deemed to waive such misrepresentation or breach of warranty, and Buyer shall be required to consummate the Transaction without any
reduction of or credit against the Purchase Price. The untruth, inaccuracy or incorrectness of Seller’s Warranties shall be deemed material only if Buyer’s aggregate damages resulting from the untruth, inaccuracy or incorrectness of
Seller’s Warranties are reasonably estimated to exceed $150,000.00. 
 8.4 Survival and Limits On
Buyer’s Claims. Seller’s Warranties shall survive the Closing and not be merged therein for a period of six (6) months, and Seller shall only be liable to Buyer hereunder for a breach of Seller’s Warranties made herein or
in any of the documents executed by Seller at the Closing with respect to which a claim is made by Buyer against Seller in writing on or before six (6) months after the date of the Closing. Anything in this Agreement to the contrary
notwithstanding, the maximum aggregate liability of Seller for breaches of Seller’s Warranties shall be subject to Seller’s Liability Limit. Notwithstanding the foregoing, however, if the Closing occurs, Buyer hereby expressly waives,
relinquishes and releases any right or remedy available to it at law, in equity, under this Agreement or otherwise to make a claim against Seller for damages that Buyer may incur, or to rescind this Agreement

  

					
		 	- 16 -	 	Purchase Agreement

 
and the Transaction, as the result of any of Seller’s Warranties being untrue, inaccurate or incorrect if (a) Buyer knew or is deemed to know as set forth in Paragraph 8.2 that such
representation or warranty was untrue, inaccurate or incorrect at the time of the Closing (Buyer’s remedy being as set forth in Paragraph 8.3), or (b) Buyer’s damages as a result of such representations or warranties being
untrue, inaccurate or incorrect are reasonably estimated to aggregate less than $150,000.00. 
 8.5
Buyer’s Representations and Warranties. Buyer, as of the date of the execution of this Agreement by Buyer, represents and warrants to Seller that the following representations and warranties of Buyer shall be true and correct in all
material respects as of the Closing Date: 
 A. Organization, Power and Authority. Buyer is duly
organized, validly existing and in good standing under the Laws of the State of its organization or incorporation; is, or will by the Closing Date be, to the extent required by Law, duly qualified to do business in the State in which the Property is
located; has all necessary power to execute and deliver this Agreement and perform all its obligations hereunder; has, or will by the Closing Date have, all requisite power and authority to own the Property and conduct the business as it is
currently being conducted. Buyer has the full power and authority to enter into and perform this Agreement and the execution, delivery and performance of this Agreement by Buyer (i) has been duly and validly authorized by all necessary action
on the part of Buyer, (ii) does not conflict with or result in a violation of the organizational documents of Buyer (including, as applicable, its articles of incorporation, charter or by-laws, its partnership agreement or its operating
agreement), or any judgment, order or decree of any court or arbiter in any proceeding to which Buyer is a party, and (iii) does not conflict with or constitute a material breach of, or constitute a material default under, any contract,
agreement or other instrument by which Buyer is bound or to which it is a party. There are no lawsuits filed or served against Buyer or, to Buyer’s knowledge, otherwise pending or threatened the outcome of which could adversely affect
Buyer’s ability to purchase the Hotel or otherwise perform its obligations under this Agreement. 
 B.
No Bankruptcy. Buyer has not (A) commenced a voluntary case, or had entered against it a petition, for relief under any federal bankruptcy act or any similar petition, order or decree under any federal or state Law relative to
bankruptcy, insolvency or other relief for debtors, (B) caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or
non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or (C) made an assignment for the benefit of creditors. 

C. Sophisticated Buyer. Buyer is an experienced investor that specializes in the investment in and ownership
and operation of hotel properties in geographically diverse markets. As such, it is a sophisticated real estate owner and investor with particular experience in the acquisition, ownership and operation of hotels similar to the Hotel. Buyer warrants
and represents that it has the ability through its own employees, or through agents, independent contractors, consultants or other experts with whom it has a relationship, to evaluate fully the investment characteristics of the Hotel and to assess
fully all issues pertaining to title to the Real Property, the value of the Property, the past performance of the Hotel, the projected performance 

  

					
		 	- 17 -	 	Purchase Agreement

 
of the Hotel, the structural integrity and soundness of all improvements and structures located on the Real Property, the environmental condition of the Real Property, and the compliance of the
Hotel and the operation and management thereof with all Laws. Accordingly, Buyer warrants and represents that, except for the representations and warranties expressly made by Seller in this Agreement, Buyer has not and will not rely upon any
warranty, representation, statement of fact, or other information in any form (whether written, verbal, electronic or otherwise (collectively, “Information”) made by or furnished by or on behalf of Seller or any of their affiliates,
but is relying solely on its own investigations, assessments, evaluations, and those of its own employees, agents, independent contractors, consultants, and other experts with whom it is dealing in connection with this Transaction. Except with
respect to Information that Seller has made representations and warranties as provided in Paragraph 8.1 of this Agreement, Buyer hereby waives, relinquishes and releases Seller and its affiliates, agents and representatives from any claim, action,
damages or compensation related to any Information Buyer or its affiliates have received, for itself and its affiliates and principals. 
 D. Reimbursement of Rebates. Buyer acknowledges that Seller may participate in various incentive programs with various suppliers for the Property whereby rebates are earned by Seller for
Seller’s purchase of designated goods and services from such suppliers. Buyer acknowledges that Seller may have earned credits toward a rebate prior to Closing and that after Closing, Buyer may benefit from credits earned by Seller prior to
Closing. Buyer therefore agrees to notify Seller of any rebate related to the Property received by, or credited to, Buyer within one (1) year of the Closing Date and to cooperate with Seller’s inquires into the status of any such rebates.
Buyer and Seller shall cooperate in good faith to determine which, if any, portion of such rebate is attributable to Seller’s activities prior to the Closing Date, whereupon Buyer shall promptly reimburse Seller for Seller’s share of each
rebate. If the parties are unable to determine Seller’s precise share of a rebate, they shall work in good faith to equitably prorate the rebate into Buyer’s and Seller’s shares. Buyer shall make available to Seller all records and
other data verifying each rebate and the payment thereof. The provisions of Paragraph shall survive the Closing. 

E. Patriot Act. Neither Buyer nor any controlling beneficial owner of Buyer: (i) is listed on the
Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other of the Lists; (ii) is a person or entity who has been determined by competent authority to be subject to the prohibitions
contained in the Orders; or (iii) is owned or controlled by, or acts for or on behalf of, any person or entity on the Lists or any other person or entity who has been determined by competent authority to be subject to the prohibitions contained
in the Order. 
 F. Survival of Buyer’s Representations and Warranties. The representations
and warranties of Buyer set forth in this Paragraph 8.5 shall survive the Closing and not be merged therein for a period of six (6) months, and Buyer shall only be liable to Seller hereunder for a breach of such representations and warranties
made herein with respect to which a claim is made by Seller against Buyer in writing on or before six (6) months after the date of the Closing. 

  

					
		 	- 18 -	 	Purchase Agreement

 8.6 Buyer’s Assumption of Seller Obligations. 

A. Wages and Salaries. IHG Management (Maryland) LLC will employ all Hotel Employees at the Hotel pursuant
to the terms of the Management Agreement and Buyer shall assume liability for all salary, commissions and other compensation and benefits of any kind earned or accrued on and after the “day shift” on the Closing Date by each Hotel Employee
who is an employee of the Hotel in accordance with the terms of the Management Agreement. 
 B. Contracts.
Not later than ten (10) days prior to the Due Diligence Deadline, Buyer shall send Seller a notice identifying which, if any, Contracts Buyer elects to have Seller terminate effective as of the Closing and, provided such Contracts are
terminable by Seller (without any cost or other liability to Seller and with any termination costs or fees to be paid by Buyer), Seller shall cause the Contracts so identified by Buyer to be terminated, effective no later than the Closing.
Buyer’s failure to timely provide any such notice to Seller shall be deemed Buyer’s election to assume all Contracts which, by their terms, are assignable without consent at Closing, and all such Contracts shall be deemed approved by
Buyer. At the Closing, Seller shall assign to Buyer, pursuant to the terms of the General Assignment (attached hereto as Exhibit E), all right, title and interest of Seller in and to the Contracts which, by their terms, are assignable
without consent, and Buyer shall assume all of the obligations of Seller under such Contracts arising from and after the Closing Date. Buyer shall be responsible to pay all assignment, termination and other fees required to effectuate the provisions
of this Paragraph. Notwithstanding anything to the contrary set forth herein, Buyer acknowledges and agrees that Seller shall, at or prior to the Closing, terminate the existing management agreement with respect to the Property, at no cost or
expense to Buyer, and at or prior to the Closing Seller shall provide Buyer with evidence of such termination, which evidence shall be in a form reasonably satisfactory to Buyer. 

C. Guest Baggage. All baggage of Hotel guests which has been checked with or left in the care of Seller
shall be inventoried, sealed and tagged jointly by Seller and Buyer on or immediately prior to the Closing Date. Buyer hereby indemnifies Seller against all claims, losses or liabilities with respect to such baggage arising out of the acts or
omissions of Buyer after the Closing Date. Seller hereby indemnifies Buyer against all claims, losses or liabilities with respect to such baggage arising out of the acts or omissions of Seller prior to or on the Closing Date. The provisions of this
Paragraph shall survive the Closing. 
 D. Safe Deposit Boxes. On the Closing Date, Seller shall
deliver to Buyer all keys to any safe deposit boxes at the Hotel, all receipts and agreements relating to such safe deposit boxes and a complete list of safe deposit boxes which are then being used, which list shall contain the name and room number
of each depositor. If any guest shall rent any safe deposit box after Seller shall have given to Buyer such keys, Buyer shall be solely responsible for all property deposited into such safe deposit box. On the day immediately prior to the Closing
Date, Seller shall send a written notice to guests at the Hotel who then are utilizing safe deposit boxes, advising them of the pending sale of the Hotel to Buyer and the procedures to be followed pursuant to this Paragraph and requesting the
removal and verification of the contents thereof on the day immediately preceding the Closing Date. All such removals and verifications shall be under the joint supervision of Buyer and Seller, and the contents recorded. Any property in safe deposit
boxes as of the Closing Date (whether or not so recorded) shall be the responsibility of Buyer. The obligations of Buyer and Seller under this Paragraph shall survive the Closing. 

  

					
		 	- 19 -	 	Purchase Agreement

 9. Casualty and Condemnation. Seller shall maintain the property insurance
coverage currently in effect for the Property as of the Effective Date, or comparable coverage, through the Closing Date. Seller has provided Buyer copies of certificates of insurance with respect to the current property and casualty insurance
coverage. If after the Effective Date and prior to the Closing Date, any portion of the improvements is materially damaged or destroyed by fire or other casualty, or there shall be commenced or instituted against the Property any Condemnation
Proceeding, Seller shall promptly give written notice of such event to Buyer, and the following provisions shall apply notwithstanding the contrary terms of any applicable Laws with respect to the subject matter of Paragraph 9: 

9.1 Major Event. If such damage or destruction results in a casualty loss in excess of Five Million Five
Hundred Thousand and no/100 Dollars ($5,500,000.00), as reasonably determined by Seller, or if such Condemnation Proceeding would result in the taking of a portion of the Property worth in excess of Five Million Five Hundred Thousand and no/100
Dollars ($5,500,000.00), as reasonably determined by Seller, then Buyer shall have the right to Terminate this Agreement by written notice to Seller given no later than ten (10) Business Days after the giving of Seller’s notice of such
event, in which event any Deposit shall be returned to Buyer, and the Closing Date shall be extended, if necessary, to provide sufficient time for Buyer to make such election. The failure by Buyer to so elect in writing to terminate this Agreement
within such period shall be deemed an election not to terminate this Agreement. 
 9.2 Closing Despite
Casualty/Condemnation. If a casualty or Condemnation Proceeding occurs and Buyer shall not, or has no right to, Terminate this Agreement on account thereof, then at Closing (a) the conveyance of the Property shall be less such portion
of the Property so taken by (or, as applicable, shall be subject to) said Condemnation Proceeding, without adjustment of the Purchase Price, (b) Seller shall assign to Buyer (without recourse to Seller) all the rights to all awards or insurance
proceeds with respect to such Condemnation Proceeding or casualty; (c) Seller shall provide a credit at Closing equal to (i) Seller’s deductible under Seller’s insurance policy, plus all proceeds or awards previously paid to
Seller with respect to such casualty or Condemnation Proceeding, less (ii) an amount equal to the sum of (A) the costs, expenses and fees, including reasonable attorneys’ fees, expenses and disbursements, incurred by Seller in
connection with such casualty or Condemnation Proceeding, (B) any portion of any Condemnation Proceeding award that is allocable to loss of use of the Property prior to Closing, and the proceeds of any rental loss, business interruption or
similar insurance to the extent allocable to the period prior to the Closing Date, and (C) the reasonable and actual costs incurred by Seller in stabilizing and/or repairing the Property following a casualty (and to the extent the sum of the
items in (ii) is greater than the items in (i), Buyer shall pay such excess to Seller within five (5) Business Days after receipt of such awards or proceeds after Closing). 

10. Other Conditions to Closing. The obligation of Buyer and Seller to close the Transaction shall be further subject to
the satisfaction at or prior to Closing of the conditions precedent set forth in this Paragraph. 

  

					
		 	- 20 -	 	Purchase Agreement

 10.1 Conditions to Buyer’s Obligations. The conditions
precedent to Buyer’s obligations at Closing referenced above are as follows, any or all of which may be expressly waived by Buyer in writing, at its sole option: 

A. Representations. Seller’s Warranties, subject to Paragraphs 8.2 and 8.3, shall be true and
correct in all material respects on and as of the Closing Date, except as modified in a manner permitted by the Agreement, as if made on and as of such date except to the extent that they expressly relate to an earlier date; 

B. Title Policy. At Closing, Buyer shall have received such conveyance of title to the Real Property as will
enable the Title Company to issue the Title Policy (or a specimen or proforma policy thereof or “marked” Title Commitment) to Buyer subject only to the Permitted Title Exceptions and consistent with Paragraph 4.3 hereof. 

C. Seller Compliance. Seller shall have performed all of the covenants, undertakings and obligations to be
performed or complied with by Seller at or prior to the Closing. 
 D. Seller’s Deliveries.
Seller shall have delivered to Buyer or deposited with Closing Agent, for the benefit of Buyer, Seller’s signature to all of the Closing Documents and other items set forth in Paragraph 6.2 to which Seller is a party. 

10.2 Conditions to Seller’s Obligations. The conditions precedent to Seller’s obligations at
Closing referenced above are as follows, any or all of which may be expressly waived by Seller in writing, at its sole option: 
 A. Representations. Buyer’s warranties set forth in Paragraph 8.3, shall be true and correct in all material respects on and as of the Closing Date, except as modified in a manner
permitted by the Agreement, as if made on and as of such date except to the extent that they expressly relate to an earlier date; 
 B. Buyer Compliance. Buyer shall have performed all of the covenants, undertakings and obligations to be performed or complied with by Buyer at or prior to the Closing. 

C Buyer’s Deliveries. Buyer shall have delivered to Seller or deposited with Closing Agent, for the
benefit of Seller, Buyer’s signature to all of the Closing Documents and other items set forth in Paragraph 6.3 to which Buyer is a party. 
 10.3 Waiver of Conditions. By closing the Transaction, Seller and Buyer shall be conclusively deemed to have waived the benefit of any remaining unfulfilled conditions set forth in
Paragraph 10.1 and 10.2, respectively. 

  

					
		 	- 21 -	 	Purchase Agreement

 11. Transaction Issues: Brokers, Confidentiality and Indemnity. 

11.1 Brokers. Each party represents to the other that such party has not incurred any obligation to any
broker or real estate agent with respect to the purchase or sale of the Property except for the Broker defined herein, which obligation has been incurred by Seller pursuant to a separate agreement with Broker executed in connection with the
Transaction. Seller shall, upon the Closing of this Transaction and receipt by Seller of the Purchase Price, pay to Broker the appropriate sales commission pursuant to the terms of the brokerage agreement with Broker. Except for Broker and such
commission payable as set forth above, Seller and Buyer each hereby (a) represent and warrant to the other that it has not employed, retained or consulted with any broker, agent, or finder in carrying on a negotiation in connection with this
Agreement or the Transaction, and (b) indemnify and agree to hold the other harmless from and against any and all claims, demands, causes of action, debts, liabilities, judgments and damages (including costs and reasonable attorneys’ fees
actually incurred in connection with the enforcement of this indemnity) which may be asserted or recovered against the indemnified party on account of any brokerage fee, commission or other compensation arising by reason of the indemnitor’s
breach of this representation and warranty. This Paragraph shall survive the Closing or any termination of this Agreement. 
 11.2 Confidentiality. Each of Buyer and Seller hereby agrees that prior to Closing it will not release or cause or permit to be released, and will use best efforts to prevent the
Buyer’s Representatives or Seller’s Representatives, as the case may be, from releasing or causing or permitting the release of, any press notices, publicity (oral or written) or advertising promotion relating to, or otherwise announce or
disclose or cause or permit to be announced or disclosed, in any manner whatsoever, the terms, conditions or substance of this Agreement or the Transaction, without first obtaining the written consent of the other party. The foregoing shall not
preclude either Buyer or Seller from (a) discussing the substance or any relevant details of the transactions contemplated in this Agreement with any of its representatives as described above, or (b) from complying with any Laws applicable
to such party, including, without limitation, governmental regulatory, disclosure, tax and reporting requirements, or, at and after Closing, issuing or causing the issuance of a press or media release or other information in the nature of a press
release relating to this Agreement or the Transaction, provided, however, that such release has received the prior written approval of the other party as to the exact text of such press release and of the extent of distribution thereof.
Notwithstanding the foregoing, if Buyer or Seller, as the case may be, reasonably determines after consultation with counsel, that such party is required by Law to publicly disclose the existence of the terms of this Agreement, before or at Closing,
Buyer or Seller, as the case may be, shall allow the other party to this Agreement a reasonable period of time, not to exceed three (3) Business Days, to review any proposed disclosure to be made by Buyer or Seller, as the case may be, in
advance of such party making such disclosure, but for avoidance of doubt, Buyer or Seller, as the case may be, shall be permitted to make such disclosure and shall not be required to obtain the consent of the other party to this Agreement prior to
making such disclosure. Buyer shall indemnify and hold Seller harmless from and against any and all Liabilities suffered or incurred by Seller and arising out of or in connection with a breach by Buyer of the provisions of this Paragraph. Seller
shall indemnify and hold Buyer harmless from and against any and all Liabilities suffered or incurred by Buyer and arising out of or in connection with a breach by Buyer of the provisions of this Paragraph The indemnification obligations contained
in this Paragraph shall survive the Closing or the earlier termination of this Agreement. 

  

					
		 	- 22 -	 	Purchase Agreement

 11.3 Indemnity. In addition to Buyer’s indemnities set
forth elsewhere in this Agreement, Buyer hereby agrees to indemnify, defend, and hold Seller and each of the other Seller Parties free and harmless from and against any and all Liabilities (including reasonable attorneys’ fees, expenses and
disbursements actually incurred) arising out of or resulting from (a) the breach of any express representations and warranties of Buyer in this Agreement which expressly survives the Closing or the earlier termination of this Agreement (as the
case may be), (b) the entry on the Property and/or the conduct of any Due Diligence by Buyer or any of Buyer’s Representatives at any time prior to the Closing; provided, however, that Buyer’s obligations under this clause (b)
shall not apply to the mere discovery of an pre-existing environmental or physical condition at the Property, (c) any breach by Buyer of any of its covenants or obligations under this Agreement which expressly survives the Closing or the
earlier termination of this Agreement (as the case may be), (d) events, contractual obligations, acts and omissions of Buyer that occur or accrue after Closing in connection with the ownership of the Property, and (e) damage to property or
injury to or death of any person or for claims for any debt or obligations occurring on or about or in connection with the Property or any portion thereof or with respect to the Property’s operations at any time or times after Closing. Seller
hereby agrees to indemnify, defend, and hold Buyer and each of the other Buyer Parties free and harmless from and against any and all Liabilities (including reasonable attorneys’ fees, expenses and disbursements actually incurred) arising out
of or resulting from (i) the breach of any express representations and warranties of Seller in this Agreement which expressly survive the Closing (for the term of such survival only) or the earlier termination of this Agreement (as the case may
be) and (ii) the uncured breach by Seller prior to the Closing Date of any of the terms and provisions of any Contracts assigned by Seller and assumed by Buyer as contemplated in this Agreement. The foregoing indemnities shall survive the
Closing (and not be merged therein) or any earlier termination of this Agreement. 
 12. Default At or Prior to
Closing. 
 12.1 Buyer Default. IF BUYER DEFAULTS IN THE OBSERVANCE OR PERFORMANCE OF
ITS COVENANTS AND OBLIGATIONS HEREUNDER PRIOR TO CLOSING, AND SUCH DEFAULT CONTINUES FOR FIVE (5) BUSINESS DAYS AFTER THE DATE OF RECEIPT OF WRITTEN NOTICE FROM SELLER DEMANDING CURE OF SUCH DEFAULT, SELLER SHALL BE ENTITLED, AS ITS SOLE AND
EXCLUSIVE REMEDY HEREUNDER, TO TERMINATE THIS AGREEMENT BY WRITTEN NOTICE TO BUYER OF SUCH TERMINATION AND TO RECEIVE PAYMENT OF THE DEPOSIT AS FULL LIQUIDATED DAMAGES FOR SUCH DEFAULT OF BUYER, THE PARTIES HERETO ACKNOWLEDGING THE DIFFICULTY OF
ASCERTAINING THE ACTUAL DAMAGES IN THE EVENT OF SUCH A DEFAULT, THAT IT IS IMPOSSIBLE MORE PRECISELY TO ESTIMATE THE DAMAGES TO BE SUFFERED BY SELLER UPON BUYER’S DEFAULT, THAT SUCH FORFEITURE OF THE DEPOSIT IS INTENDED NOT AS A PENALTY, BUT AS
FULL LIQUIDATED DAMAGES AND THAT SUCH AMOUNT CONSTITUTES A REASONABLE GOOD FAITH ESTIMATE OF THE POTENTIAL 

  

					
		 	- 23 -	 	Purchase Agreement

 
DAMAGES ARISING THEREFROM, IT BEING OTHERWISE DIFFICULT OR IMPOSSIBLE TO ESTIMATE SELLER’S ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY SELLER IN THE EVENT OF DEFAULT BY BUYER. EXCEPT WITH
RESPECT TO ANY RIGHT, OBLIGATION OR LIABILITY WHICH SURVIVES CLOSING OR TERMINATION OF THIS AGREEMENT, INCLUDING ANY INDEMNIFICATION PROVISIONS SET FORTH IN THIS AGREEMENT, SELLER’S RIGHT TO TERMINATE THIS AGREEMENT AND RECEIVE PAYMENT OF THE
DEPOSIT AS FULL LIQUIDATED DAMAGES, ARE SELLER’S SOLE AND EXCLUSIVE REMEDIES IN THE EVENT OF DEFAULT HEREUNDER BY BUYER, AND SELLER HEREBY WAIVES, RELINQUISHES AND RELEASES ANY AND ALL OTHER RIGHTS AND REMEDIES (EXCEPT ANY THAT SURVIVE CLOSING
OR TERMINATION PURSUANT TO THE EXPRESS PROVISIONS OF THIS AGREEMENT), INCLUDING, BUT NOT LIMITED TO: (1) ANY RIGHT TO SUE BUYER FOR DAMAGES OR TO PROVE THAT SELLER’S ACTUAL DAMAGES EXCEED THE DEPOSIT WHICH IS HEREBY PROVIDED SELLER AS FULL
LIQUIDATED DAMAGES, (2) ANY RIGHT TO SUE BUYER FOR SPECIFIC PERFORMANCE, OR (3) ANY OTHER RIGHT OR REMEDY WHICH SELLER MAY OTHERWISE HAVE AGAINST BUYER, EITHER AT LAW, OR EQUITY OR OTHERWISE. 

 

					
	  	 		 	  
	Buyer’s Initials	 		 	Seller’s Initials

 12.2 Seller Default. If Seller defaults in the observance or performance of
its covenants and obligations hereunder prior to Closing, or if Seller breaches any of its representations and warranties under this Agreement, and such default continues for the greater of five (5) Business Days after the date of receipt of
written notice from Buyer demanding cure of such default, or the expiration of other applicable cure periods set forth in this Agreement, then Buyer shall be entitled either, at Buyer’s option, (i) without waiving the right to elect the
option to Terminate this Agreement, to bring an action against Seller for specific performance of this Agreement, but only if such suit is filed within sixty (60) days after the occurrence of Seller’s alleged default, or (ii) to
Terminate this Agreement by the delivery to Seller of notice of such termination and in such event Buyer shall be entitled to the return the Deposit and, in the case of a material default by Seller that is willful and/or fraudulent in nature, Seller
shall be obligated to reimburse Buyer for all of Buyer’s actual costs incurred in pursuing and attempting to complete this Transaction (including due diligence costs and reasonable attorneys’ fees actually incurred) up to an amount not to
exceed $150,000.00. Except with respect to any right, obligation or liability which survives Closing or termination of this Agreement, including any indemnification provisions set forth in this Agreement, Buyer’s rights to so Terminate this
Agreement or sue for specific performance, are Buyer’s sole and exclusive remedies hereunder in the event of default hereunder by Seller, and Buyer hereby waives, relinquishes and releases any and all other rights and remedies (except any that
survive Closing or termination pursuant to the express provisions of this Agreement), including, but not limited to: (1) any right to bring an action for damages, or (2) any other right or remedy which Buyer may otherwise have against

  

					
		 	- 24 -	 	Purchase Agreement

 
Seller either at law, in equity or otherwise. Buyer agrees that its failure to timely commence an action for specific performance within such the period noted above shall be deemed a waiver by it
of its right to commence an action for specific performance as well as a waiver by it of any right it may have to file or record a notice of lis pendens or notice of pendency of action or similar notice against any portion of the Property.

 13. Notices. All notices, consents, approvals and other communications which may be or are required to be given
by either Seller or Buyer under this Agreement shall be properly given only if made in writing and sent by (a) hand delivery, or (b) certified mail, return receipt requested, or (c) a nationally recognized overnight delivery service
(such as Federal Express, UPS Next Day Air or Airborne Express), with all postage and delivery charges paid by the sender and addressed to the Buyer or Seller, as applicable as set forth below, or at such other address as each may request in
writing. Such notices delivered by hand, or overnight delivery service shall be deemed received on the date of delivery and, if mailed, shall be deemed received upon the earlier of actual receipt or two days after mailing. Said notice addresses are
as follows (and Seller and Buyer shall have the right to designate changes to their respective notice addresses, effective five (5) days after the delivery of written notice thereof): 

 

			
	 If to Seller:
	  	 InterContinental Hotels Group

Three Ravinia Drive
 Suite 100

Atlanta, Georgia 30346-2149
 Attention: Robert
Chitty
 Telephone No.: (770) 604-5321

		
	 With a copy to:
	  	 InterContinental Hotels Group

Three Ravinia Drive
 Suite 100

Atlanta, Georgia 30346-2149
 Attention: Legal
Dept. - Paul Huang
 Telephone No.: (770) 604-2644

		
	 With a copy to:
	  	 DLA Piper LLP (US)
 1201
West Peachtree Street, Suite 2800
 Atlanta, Georgia 30309
 Attention: T. Shawn Lanier, Esq.
 Telephone No.: (404) 736-7857

		
	 If to Buyer:
	  	 c/o Chesapeake Lodging Trust

1997 Annapolis Exchange Parkway, Suite 410

Annapolis, Maryland 21401
 Attention: D. Rick
Adams
 Telephone No.: (410) 972-4143

  

					
		 	- 25 -	 	Purchase Agreement

			
	 With a copy to:
	  	 c/o Chesapeake Lodging Trust

1997 Annapolis Exchange Parkway, Suite 410

Annapolis, Maryland 21401
 Attention: Graham J.
Wootten
 Telephone No.: (410) 972-4144

 14. General Provisions. 
 14.1 Execution
Necessary. This Agreement shall not be binding upon Seller until fully executed and delivered by a proper official of Seller, and no action taken by Seller’s representatives shall be deemed an acceptance of this Agreement until this
Agreement has been so executed by Seller and delivered to Buyer. 
 14.2 Counterparts. This
Agreement may be executed in separate counterparts. It shall be fully executed when each party whose signature is required has signed at least one counterpart even though no one counterpart contains the signatures of all of the parties to this
Agreement. 
 14.3 Successors and Assigns. Subject to the terms of this Paragraph 14.3, this
Agreement shall be binding upon the parties hereto and their respective successors and assigns and inure to the benefit of the parties hereto and their respective permitted successors and assigns. Buyer shall not have the right to assign or delegate
any right, duty or obligation of Buyer under this Agreement to any other party without the prior written consent of Seller, which consent Seller may grant or withhold in its sole and absolute discretion, and any such assignment shall be null and
void ab initio. Notwithstanding the foregoing, Buyer shall have the right to assign all of its right, title and interest in this Agreement to a Permitted Assignee (hereinafter defined) by providing written notice to Seller no later than five
(5) Business Days prior to Closing. For purposes of this Agreement, the term “Permitted Assignee” shall mean a corporation, partnership, limited liability company, or other entity controlled by, managed by, or under common
control of Buyer (collectively, a “Related Party”) (provided, however, Buyer shall disclose to Seller all Related Parties having an interest in such assignee together with evidence demonstrating Buyer’s control of such entity
or the control of such entity in common with Buyer) or created by Buyer or a Related Party for the purpose of acquiring any portion of or all of the Property. To be effective, an assignment to a Permitted Assignee shall (i) be fully executed by
the assignor and the Permitted Assignee thereunder and delivered to Seller prior to Closing, and (ii) contain a provision whereby the Permitted Assignee assumes all of the obligations of Buyer under this Agreement. Upon an assignment of this
Agreement to a Permitted Assignee: (1) Buyer shall not be relieved of any subsequently accruing liability under this Agreement, and (2) as used in this Agreement, the “Buyer” shall be deemed to include such Permitted Assignee.

 14.4 Governing Law. This Agreement shall be governed by the Laws of the State of Georgia.

  

					
		 	- 26 -	 	Purchase Agreement

 14.5 Entire Agreement. This Agreement and all the exhibits
referenced herein and annexed hereto contain the entire agreement of the parties hereto with respect to the matters contained herein, and no prior agreement or understanding including without limitation the Letter of Intent pertaining to any of the
matters connected with this Transaction shall be effective for any purpose. Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument signed by the party against whom the
enforcement of such waiver, modification, amendment, discharge or termination is sought, and then only to the extent set forth in such instrument. 
 14.6 Time is of the Essence. TIME IS OF THE ESSENCE of the Transaction and this Agreement. If the time period by which any right, option or election provided under this Agreement must be
exercised, or by which any act required hereunder must be performed, or by which the Closing must be held, expires on a Saturday, Sunday or legal or bank holiday, then such time period shall be automatically extended through the close of business on
the next regularly scheduled business day. 
 14.7 Interpretation. The titles, captions and
paragraph headings are inserted for convenience only and are in no way intended to interpret, define, limit or expand the scope or content of this Agreement or any provision hereof. If any party to this Agreement is made up of more than one person
or entity, then all such persons and entities shall be included jointly and severally, even though the defined term for such party is used in the singular in this Agreement. If any time period under this Agreement ends on a day other than a Business
Day, then the time period shall be extended until the next Business Day. This Agreement shall be construed without regard to any presumption or other rule requiring construction against the party causing this Agreement to be drafted. If any words or
phrases in this Agreement shall have been stricken out or otherwise eliminated, whether or not any other words or phrases have been added, this Agreement shall be construed as if the words or phrases so stricken out or otherwise eliminated were
never included in this Agreement and no implication or inference shall be drawn from the fact that said words or phrases were so stricken out or otherwise eliminated. 

14.8 Survival. Except as otherwise specifically provided in this Agreement to the contrary, the covenants,
agreements, indemnities, representations and warranties contained herein shall not survive the Closing or any termination of this Agreement. 
 14.9 Further Assurances. Each party agrees to execute and deliver to the other such further documents or instruments as may be reasonable and necessary in furtherance of the performance of
the terms, covenants and conditions of this Agreement; provided, however, that the execution and delivery of such documents by such party shall not result in any additional liability or cost to such party. 

14.10 Exclusive Application. Nothing in this Agreement is intended or shall be construed to confer upon or
to give to any person, firm or corporation other than Buyer and Seller hereto any right, remedy or claim under or by reason of this Agreement. All terms and conditions of this Agreement shall be for the sole and exclusive benefit of the parties
hereto and may not be assigned. 

  

					
		 	- 27 -	 	Purchase Agreement

 14.11 Partial Invalidity. If all or any portion of any of the
provisions of this Agreement shall be declared invalid by Laws applicable thereto, then the performance of said offending provision shall be excused by the parties hereto. 

14.12 Waiver Rights. Buyer reserves the right to waive, in whole or in part, any provision hereof which is
for the benefit of Buyer. Seller reserves the right to waive, in whole or in part, any provision hereof that is for the benefit of Seller. 
 14.13 No Implied Waiver. Unless otherwise expressly provided herein, no waiver by Seller or Buyer of any provision hereof shall be deemed to have been made unless expressed in writing and
signed by such party. No delay or omission in the exercise of any right or remedy accruing to Seller or Buyer upon any breach under this Agreement shall impair such right or remedy or be construed as a waiver of any such breach theretofore or
thereafter occurring. The waiver by Seller or Buyer of any breach of any term, covenant or condition herein stated shall not be deemed to be a waiver of any other breach, or of a subsequent breach of the same or any other term, covenant or condition
herein contained. 
 14.14 Rights Cumulative. All rights, powers, options or remedies afforded to
Seller or Buyer either hereunder or by Law shall be cumulative and not alternative, and the exercise of one right, power, option or remedy shall not bar other rights, powers, options or remedies allowed herein or by Law, unless expressly provided to
the contrary herein. 
 14.15 Attorney’s Fees. Should either party employ an attorney or
attorneys to enforce any of the provisions hereof or to protect its interest in any manner arising under this Agreement, or to recover damages for breach of this Agreement, the non-prevailing party in any action pursued in a court of competent
jurisdiction (the finality of which is not legally contested) agrees to pay to the prevailing party all reasonable costs, damages and expenses, including attorney’s fees, actually expended or incurred in connection therewith. 

14.16 Waiver of Jury Trial. TO THE EXTENT PERMITTED BY LAW, EACH PARTY HEREBY WAIVES TRIAL BY JURY IN ANY
PROCEEDINGS BROUGHT BY THE OTHER PARTY IN CONNECTION WITH ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THE TRANSACTION, THIS AGREEMENT, THE PROPERTY OR THE RELATIONSHIP OF BUYER AND SELLER HEREUNDER. THE PROVISIONS OF THIS PARAGRAPH SHALL
SURVIVE THE CLOSING (AND NOT BE MERGED THEREIN) OR ANY EARLIER TERMINATION OF THIS AGREEMENT. 
 14.17
Facsimile Signatures. Signatures to this Agreement transmitted by email copy transmission shall be valid and effective to bind the party so signing. Each party agrees to promptly deliver an execution original to this Agreement with its
actual signature to the other party, but a failure to do so shall not affect the enforceability of this Agreement, it being expressly agreed that each party to this Agreement shall be bound by its own email copy signature and shall accept the email
copy signature of the other party to this Agreement. 

  

					
		 	- 28 -	 	Purchase Agreement

 14.18 No Recordation. Seller and Buyer each agrees that
neither this Agreement nor any memorandum or notice hereof shall be recorded and Buyer agrees (a) not to file any notice of pendency or other instrument (other than a judgment) against the Property or any portion thereof in connection herewith
and (b) to and hereby does indemnify Seller against all Liabilities (including reasonable attorneys’ fees, expenses and disbursements) incurred by Seller by reason of the filing by Buyer of such notice of pendency or other instrument.
Notwithstanding the foregoing, if the same is permitted pursuant to applicable Laws, Buyer shall be entitled to record a notice of lis pendens if Buyer is entitled to seek (and is actually seeking) specific performance of this Agreement by Seller in
accordance with the terms of Paragraph 12.2 hereof. 
 14.19 Maximum Aggregate Liability.
Notwithstanding any provision to the contrary contained in this Agreement or any documents executed by Seller pursuant hereto or in connection herewith, the maximum aggregate liability of Seller and the Seller Parties, and the maximum aggregate
amount which may be awarded to and collected by Buyer, in connection with the Transaction, the Property, under this Agreement and under any and all documents executed pursuant hereto or in connection herewith (including, without limitation, in
connection with the breach of any of Seller’s Warranties for which a claim is timely made by Buyer) shall not exceed Seller’s Liability Limit. Notwithstanding anything to the contrary contained herein, the limitations on liability set
forth in this Paragraph 14.19 shall not apply to the Manager for breaches by the Manager of the terms and provisions of the Management Agreement, the remedies for which breaches and other defaults, if any, by Manager under the Management Agreement
shall be governed by the express terms and provisions of the Management Agreement. The provisions of this Paragraph shall survive the Closing (and not be merged therein) or any earlier termination of this Agreement. 

14.20 Exhibits and Schedules. All exhibits and schedules referred to in, and attached to, this Agreement are
hereby incorporated herein in full by this reference. 
 14.21 Jurisdiction. With respect to any
suit, action or proceedings relating to the Transaction, this Agreement, the Property or the relationship of Buyer and Seller hereunder (“Proceedings”) each party irrevocably (a) submits to the exclusive jurisdiction of the
Courts of the County of DeKalb, State of Georgia and the United States District Court for the Northern District of Georgia, and (b) waives any objection which it may have at any time to the laying of venue of any proceedings brought in any such
court, waives any claim that such proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such proceedings, that such court does not have jurisdiction over such party. The provisions of this
Paragraph shall survive the Closing (and not be merged therein) or any earlier termination of this Agreement. 
 15.
Retention of Hotel Employees. Buyer acknowledges that an affiliate of Seller will manage the Hotel in accordance with the Management Agreement described in Paragraph 16 hereof and that an affiliate of Seller will continue to employ all
Hotel Employees at the Hotel with Buyer having the responsibilities relative to the employment of and services of these employees as set forth in the Management Agreement. 

  

					
		 	- 29 -	 	Purchase Agreement

 16. On-Going Management of Hotel. Buyer acknowledges that Seller is unwilling
to sell the Hotel unless an affiliate of Buyer and Seller’s designated affiliate enter into a long term, non-terminable hotel management agreement for the Property. At Closing, Seller’s designated affiliate and an affiliate of Buyer shall
execute the Management Agreement in form attached hereto as Exhibit P.  
 17. Independent Audit.
Buyer may, at its sole cost and expense, engage a third-party certified public accountant to perform audits of Seller’s books and records which relate exclusively to the Property, including the historical financial statements of the
Property, which audits shall include all disclosures required by generally accepted accounting principles and the Securities and Exchange Commission regulations, specifically in accordance with Section 3.05 of Regulation S-X and all related
rules and regulations thereof; provided, however, that (i) the completion of such audit shall not be a condition precedent to Buyer’s obligation to close the transactions described in this Agreement, and (ii) Buyer shall promptly
reimburse Seller for any reasonable out-of-pocket expenses incurred by Seller or any of its affiliates in connection with such audit. Seller shall cooperate reasonably with Buyer in connection with the performance of such audits and shall provide
all information reasonably requested by the accountants performing such audits with respect to the Property, at no cost or expense to Seller. In connection with such audits and upon written request from Buyer and/or the accountants performing any of
the audits contemplated in this Paragraph 17, Seller shall provide the accountants performing such audits with representation letters reasonably acceptable to Seller and such accountants, at no cost or expense to the Seller. The covenants of Seller
with respect to such audits as set forth in this Paragraph 17 shall survive Closing for a period of ninety (90) days. 

  

					
		 	- 30 -	 	Purchase Agreement

 IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement under seal as of
the day and year first above written. 
  

					
	SELLER:
	
	 IND East Village SD Holdings, LLC,
 a Delaware limited liability company

		
	By:	 	 Six Continents Hotels, Inc.,
 a Delaware corporation, a member

			
		 	By:	 	/s/ David Hom
		 	Name:	 	David Hom
		 	Title:	 	VP and Secretary

  

					
	BUYER:
	
	 CHSP San Diego LLC

a Delaware limited liability company

			
		 	By:	 	/s/ D. Rick Adams
		 		 	 D. Rick Adams, Vice President

  

					
		 		 	Purchase Agreement

 SCHEDULE A 

(attached to and made a part of that certain Hotel Purchase and 

Sale Agreement by and between IND East Village SD 
 Holdings, LLC, as Seller, and CHSP San Diego LLC, as Buyer, 
 dated as of
June 15, 2011) 
 “Accounts Receivable” shall mean any and all rents, deposits and other sums and
charges (including Guest Ledger Receivables) owing to Seller that are in any way attributable to the operation of the business at the Hotel, including, without limitation: (a) amounts receivable in connection with the letting of rooms, use of
banquet services and facilities, use of conference facilities or meeting rooms or the provision of any other service by or on behalf of Seller on the Real Property; (b) credit card charges, whether or not they have been submitted to the
applicable credit card company. 
 “Agreement” shall mean this Hotel Purchase and Sale Agreement between Seller
and Buyer including all schedules, exhibits and other attachments hereto, and documents incorporated herein by reference. 

“Bookings” shall mean all contracts or reservations for the use of guest rooms, banquet facilities, meeting rooms,
and/or conference or convention facilities at the Hotel together with deposits held by or on behalf of Seller with respect thereto. 
 “Broker” shall mean Eastdil Secured, which Broker has been retained by Seller. 
 “Business Day” shall mean Monday through Friday excluding holidays recognized by the state government of the State in which the Property is located. 

“Buyer” shall mean the buyer referenced in the first paragraph of this Agreement. 

“Buyer’s Diligence Reports” shall mean the results of any examinations, inspections, investigations, tests,
studies, analyses, appraisals, evaluations and/or investigations prepared by or for or otherwise obtained by Buyer or on behalf of Buyer in connection with Buyer’s Due Diligence (other than any internal studies, reports and assessments or other
privileged information prepared by Buyer or any of Buyer’s Representatives. 
 “Buyer’s Parties”
shall mean and include, collectively, (a) Buyer; (b) CHSP TRS San Diego LLC (“TRS Lessee”); (c) any direct or indirect owner of any beneficial interest in Buyer or TRS Lessee; (f) any officer, director, employee, or
agent of Buyer, its counsel, or any direct or indirect owner of any beneficial interest in Buyer or TRS Lessee; and (g) any other entity or individual affiliated or related in any way to any of the foregoing. 

“Buyer’s Representatives” shall mean Buyer’s officers, employees, agents, advisors, representatives,
attorneys, accountants, consultants, lenders, investors, contractors, architects and engineers. 

  

					
		 	1	 	Purchase Agreement Definitions

 “Closing” shall mean the consummation and closing of the Transaction.

 “Closing Agent” shall mean Terra Nova Title & Settlement Services, authorized agent for First
American Title Insurance Company or such other party as is selected by Buyer and Seller to fund the Closing in escrow. 

“Closing Date” shall mean the date on which the Closing occurs, which shall be on or before the Closing Deadline as
defined in Paragraph 1.1 of this Agreement. 
 “Closing Deadline” is defined in Paragraph 1.1 of this
Agreement. 
 “Closing Documents” shall mean the documents and instruments delivered by Buyer and Seller, in
order to consummate the Transaction. 
 “Closing Proration Time” shall mean 11:59 P.M. local San Diego,
California time on the day prior to the Closing Date or such other time as expressly provided in Paragraph 7, so that the Closing Date is a day of income and expense for Buyer. 

“Closing Tax Year” shall mean the Tax Year in which the Closing Date occurs. 

“Condemnation Proceeding” shall mean any proceeding in condemnation, eminent domain or any written request for a
conveyance in lieu thereof, or any notice that such proceedings have been or will be commenced against any portion of the Property. 
 “Confidential Materials” shall mean any books, computer software, databases, records or files (whether in a electronic or printed format) that consist of or contain any of the following:
appraisals; budgets; strategic plans for the Property; internal analyses; information regarding the marketing of the Property for sale; submissions relating to obtaining internal authorization for the sale of the Property by Seller or any direct or
indirect owner of any beneficial interest in Seller; attorney and accountant work product; attorney-client privileged documents; internal correspondence of Seller, any direct or indirect owner of any beneficial interest in Seller, or any of their
respective affiliates and correspondence between or among such parties; or other information or materials in the possession or control of Seller, Seller’s property manager or any direct or indirect owner of any beneficial interest in Seller
which such party deems proprietary or confidential. 
 “Contracts” shall mean all contracts respecting leasing,
management, maintenance or operation of the Real Property, including, but not limited to, equipment leases, agreements with respect to building systems, service, construction, and maintenance contracts, but specifically excluding Bookings and any
license to Seller of computer hardware, software, or system(s). A summary list of the Contracts (including identity of contract parties and type of service) is shown on Exhibit N and made a part hereof. 

“deemed to know” (or “deemed knowledge” or words of similar import) shall have the following meaning: Buyer
shall be “deemed to know” of the existence of a fact or circumstance to the extent that: (i) Buyer’s counsel, D. Rick Adams or Graham J. Wootten knows of such fact 

  

					
		 	2	 	Purchase Agreement Definitions

 
or circumstance, or (ii) such fact or circumstance is disclosed by this Agreement, any documents executed by Seller for the benefit of Buyer in connection with the Closing, the Documents, or
any Buyer’s Diligence Reports. Without limiting the foregoing, Buyer shall be “deemed to know” that any Seller’s Warranty is untrue, inaccurate or incorrect to the extent that of the aforesaid items contain information, or any
Buyer’s counsel, D. Rick Adams or Graham J. Wootten has knowledge of information, which is inconsistent with such Seller’s Warranty. 
 “Deposit” shall mean the sum of Two Million and No/100 Dollars ($2,000,000.00). 
 “Documents” shall mean the documents and instruments applicable to the Property or any portion thereof that Seller or any of the other Seller Parties deliver or make available to Buyer or
Buyer’ Representatives prior to Closing or which are otherwise obtained by Buyer or Buyer’s Representatives prior to Closing, including, but not limited to, the Title Commitment, the Survey, the Title Documents, and the Property Documents.

 “Due Diligence” shall mean the investigation by Buyer and Buyer’s Representatives of the feasibility
and desirability of purchasing the Property, including all audits, surveys, examinations, inspections, investigations, tests, studies, analyses, appraisals, evaluations, investigations and verifications with respect to the Property, the Documents,
title matters, applicable land use and zoning Laws and other Laws applicable to the Property, the physical condition of the Property, the economic status of the Property, and other information and documents regarding the Property, including, but not
limited to, investigations of the legal and physical status of the Property by such consultants, engineers, architects and/or entomologists as Buyer requires, tests and assessments with respect to Environmental Matters, soil tests, asbestos
analysis, mold analysis, structural review, examination of title to the Property, preparation of a Survey of the Land, and verification of all information made or to be made available to Buyer with respect to Property. 

“Due Diligence Deadline” is defined in Paragraph 1.1 of this Agreement. 

“Effective Date” shall mean the date of this Agreement referenced in the first paragraph of this Agreement. 

“Escrow Deposits” shall mean the Deposit, and any other sums (including, without limitation, any interest earned
thereon) which the parties agree shall be held in escrow hereunder. 
 “Guest Ledger Receivables” shall mean
amounts, including, without limitation, room and service charges (net of any sales or occupancy tax due), accrued to (i) the accounts of guests occupying rooms at the Hotel as of the Closing Proration Time or (ii) group, conference or
banquet customers of Seller at the Hotel as of the Closing Proration Time. 
 “Hotel” shall
mean the hotel located on the Land and commonly known as the Hotel Indigo San Diego located at 509 9th Avenue, San Diego, California.  
 “Hotel Employees” shall
mean all employees who are employed by Seller at or solely in connection with the Hotel immediately before the Effective Date (whether such employees are actively employed or on a leave of absence due to disability or any other reason), the names of
whom are set forth on Exhibit O. 

  

					
		 	3	 	Purchase Agreement Definitions

 “Land” shall mean that certain tract or parcel of land, more particularly
described on Exhibit A. 
 “Law” shall mean any federal, state or local law, statute,
ordinance, code, order, decrees, or other governmental rule, regulation or requirement, including common law. 

“Lien” shall mean any mortgage, deed of trust, security deed, lien, judgment, pledge, conditional sales contract,
security interest, past-due taxes, past-due assessments, contractor’s lien, materialmen’s lien, judgment or similar encumbrance against the Property of a monetary nature. 

“Liabilities” shall mean any and all direct or indirect damages, demands, claims, payments, problems, conditions,
obligations, actions or causes of action, assessments, losses, liabilities, costs and expenses of any kind or nature whatsoever, including, without limitation, penalties, interest on any amount payable to a third party, lost income and profits, and
any legal or other expenses (including, without limitation, reasonable attorneys’ fees and expenses) reasonably incurred in connection with investigating or defending any claims or actions, whether or not resulting in any liability. 

“Management Agreement” shall mean that certain agreement for management services between Buyer’s affiliate and
Seller’s affiliate, the exact form of which shall be executed in accordance with the terms of Paragraph 16 hereof. 

“Other Interests” shall mean the following other interests of Seller in and to the Real Property, Contracts, or Personal
Property, or pertaining thereto: (a) to the extent that the same are in effect as of the Closing Date, any licenses (but excluding any franchise license rights and liquor licenses), permits and other written authorizations necessary for the
use, operation or ownership of the Real Property, (b) any guaranties and warranties in effect with respect to any portion of the Real Property or the Personal Property as of the Closing Date, and (c) any sales and marketing materials
benefiting the Property, provided that they are not Confidential Materials. 
 “Permitted Title Exceptions”
shall mean, subject to Buyer’s rights to review and make objection to the status of title and survey as set forth in this Agreement, and the right of Buyer to Terminate this Agreement pursuant to Paragraph 4.5 if the Due Diligence is not
satisfactory, the following: (a) all real estate taxes and assessments not yet due and payable as of the Closing Date; (b) local, state and federal (if applicable) zoning and building Laws; (c) the Record Exceptions disclosed by the
Title Commitment; (d) the state of facts disclosed by a current and accurate Survey of the Land obtained by Buyer; and (e) any other matters approved as Permitted Title Exceptions in writing by Buyer prior to Closing or deemed approved as
Permitted Title Exceptions pursuant to this Agreement. 

  

					
		 	4	 	Purchase Agreement Definitions

 “Personal Property” shall mean any tangible personal property owned by
Seller and used in connection with the operation of the Property including, without limitation: (a) all Property Documents; (b) all keys and combinations to all doors, cabinets, safes, enclosures and other locking items or areas on or
about the Improvements; (c) the food and beverage inventory of the Hotel (for which Seller shall receive a credit pursuant to Paragraph 7.1 above); (d) all tangible personal property, including, but not limited to, all
“Inventories”, as such term is defined in the Uniform System of Accounts, and all other tools, vehicles, supplies, artwork, furniture, furnishings, machinery, equipment, specialized hotel equipment and other tangible personal property, in
each case, owned or leased by Seller in connection with the ownership, operation or maintenance of the Hotel, including without limitation all china, glassware, silverware, linens, towels, curtains, uniforms, works of art, engineering, maintenance,
and housekeeping supplies, draperies, materials and carpeting, used or intended for use, but not for sale, in connection with the operation of the Hotel, all equipment used in the operation of the kitchen, dining rooms, lounges, bars, laundry, dry
cleaners, lobby, reservation desk and all supplies, merchandise, food and beverages held for sale in connection with the operation of the Hotel, which are on hand on the Effective Date; and (e) all computers, computer equipment and manuals and
software programs and databases; but specifically excluding (i) any Confidential Materials and (ii) any computer hardware, software, or system that is licensed to Seller. 

“Property” shall mean the Real Property, the Contracts, the Personal Property and the Other Interests, but specifically
excluding any right or interest to any intellectual property rights referenced in Section 5 hereto. 
 “Property
Documents” shall mean all books, records and files of Seller and of the management agent for the Property related to the Property made available to Buyer or Buyer’s Representatives (other than those books, records or files containing
Confidential Materials). 
 “Purchase Price” is defined in the Recitals to this Agreement. 

“Real Property” shall mean the Land, including, without limitation, (a) the Hotel and any other buildings located
on the Land and all other improvements, (b) all easements appurtenant to the Land and other easements, grants of right, licenses, privileges or other agreements for the benefit of, belonging to or appurtenant to the Land whether or not situate
upon the Land, including, without limitation, signage rights and parking rights or agreements, all whether or not specifically referenced on Exhibit A, (c) all mineral, oil and gas rights, riparian rights, water rights, sewer
rights and other utility rights allocated to the Land, (d) all right, title and interest, if any, of the owner of the Land in and to any and all strips and gores of land located on or adjacent to the Land, and (e) all right, title and
interest of the owner of the Land in and to any roads, streets and ways, public or private, open or proposed, in front of or adjoining all or any part of the Land and serving the Land. 

“Record Exceptions” shall mean all instruments recorded in the real estate records of the County in which the Land is
located which affect the status of title to the Real Property. 
 “Remove” with respect to any exception to
title shall mean that Seller causes the Title Company to remove or affirmatively insure over the same as an exception to the Title Policy, without any additional cost to Buyer, whether such removal or insurance is made available in consideration of
payment, bonding, indemnity of Seller or otherwise. 

  

					
		 	5	 	Purchase Agreement Definitions

 “Required Removal Items” shall mean, collectively, any Title Objections to
the extent (and only to the extent) that the same (a) have not been caused by Buyer or any Buyer’s Representatives, and (b) are either: (i) Liens evidencing monetary encumbrances (other than liens for non-delinquent general real
estate taxes or assessments) (“Monetary Liens”) which can be Removed by payment of liquidated amounts, but only if such Monetary Liens have been created by written instrument signed by Seller or assumed by written instrument signed
by Seller and provided that in no event shall Seller be required to Remove any such Monetary Lien which is not related to the operation of the Property by any method other than indemnity of Seller in favor of the Title Company (for example,
unrelated items would include a judgment against such party in connection with its other operations; whereas a mechanic’s lien for work on the Property pursuant to a contract entered into by Seller would be related to Property operations), or
(ii) liens or encumbrances (including, but not limited to, Monetary Liens) created by Seller after the Effective Date in violation of this Agreement. 
 “Seller” shall mean the seller referenced in the first paragraph of this Agreement. 
 “Seller Parties” shall mean and include, collectively, (a) Seller; (b) its counsel; (c) any Broker retained by Seller; (d) Seller’s property manager; (e) any
direct or indirect owner of any beneficial interest in Seller; (f) any officer, director, employee, or agent of Seller, its counsel, any Broker retained by Seller, Seller’s property manager or any direct or indirect owner of any beneficial
interest in Seller; and (g) any other entity or individual affiliated or related in any way to any of the foregoing. 

“Seller’s Liability Limit” shall One Million Two Hundred Fifty Thousand and no/100 Dollars ($1,250,000.00).

 “Seller’s possession”, “in the Seller’s possession” or words of similar import shall be
deemed to mean to the extent the material or other item referred to by such phrase is located at the Hotel or in Seller’s corporate headquarters. 
 “Seller’s Representatives” shall mean Seller’s officers, employees, agents, advisors, representatives, attorneys, accountants, consultants, investors, contractors, architects
and engineers. 
 “Seller’s Warranties” shall mean Seller’s representations and warranties set forth
in Paragraph 8.1, Paragraph 11.1 and the limited warranty of title set forth in the deed executed by Seller in connection with Closing, as the same may be deemed modified or waived by Buyer pursuant to this Agreement. 

“Survey” shall mean a survey of the Land obtained by Buyer pursuant to Paragraph 4. 

  

					
		 	6	 	Purchase Agreement Definitions

 “Taxes” means any federal, state, local or foreign, real property, personal
property, sales, use, room, occupancy, ad valorem or similar taxes, assessments, levies, charges or fees imposed by any governmental authority on Seller with respect to the Property, including, without limitation, any interest, penalty or fine with
respect thereto, but expressly excluding any (i) federal, state, local or foreign income, capital gain, gross receipts, capital stock, franchise, profits, estate, gift or generation skipping tax, or (ii) transfer, documentary stamp,
recording or similar tax, levy, charge or fee incurred with respect to the transaction described in this Agreement. 

“Tax Year” shall mean the year period commencing on January 1 of each calendar year and ending on December 31
of each calendar year; provided however, that with respect to real estate taxes and assessments, it shall mean the year commencing July 1 of each fiscal year and ending on June 30 of each such fiscal year. 

“Terminate” shall mean the termination of this Agreement, by Buyer or Seller as applicable as set forth in this
Agreement, in which event thereafter neither party hereto shall have any further rights, obligations or liabilities hereunder except to the extent that any right, obligation or liability set forth herein expressly survives termination of this
Agreement. 
 “Title Commitment” shall mean the Commitment of the Title Company to issue the Title Policy.

 “Title Company” shall mean First American Title Insurance Company. 

“Title Objections” shall mean any defects in title (including any Record Exceptions which are not acceptable to Buyer)
or survey (including the description of the Land) which may be revealed by Buyer’s examinations thereof to which Buyer timely objects in accordance with the terms of Paragraph 4.3. 

“Title Policy” shall mean the ALTA Owner’s Policy of Title Insurance (or such other comparable form of title
insurance policy as is available in the jurisdiction in which the Property is located) issued by the Title Company in the amount of the Purchase Price or an amount allocated to the Real Property and in the form of the Title Commitment, and
containing, unless prohibited by applicable statutes or regulations, such endorsements as Buyer may obtain from the Title Company in the Title Commitment prior to the Due Diligence Deadline. Buyer shall be entitled to request that the Title Company
provide such endorsements (or amendments) to the Title Policy as Buyer may reasonably require, provided that (a) such endorsements (or amendments) shall be at no cost to, and shall impose no additional liability on, Seller,
(b) Buyer’s obligations under this Agreement shall not be conditioned upon Buyer’s ability to obtain such endorsements and, if Buyer is unable to obtain such endorsements, Buyer shall nevertheless be obligated to proceed to close the
Transaction without reduction of or set off against the Purchase Price, and (c) the Closing shall not be delayed as a result of Buyer’s request. 
 “Transaction” shall mean the purchase and sale transaction contemplated by this Agreement. 

  

					
		 	7	 	Purchase Agreement Definitions

 “Uniform System of Accounts” shall mean the Uniform System of Accounts for
the Lodging Industry, prepared by The Hotel Association of New York City, Inc., in effect as of the date hereof. 

  

					
		 	8	 	Purchase Agreement Definitions

 EXHIBIT A 

Legal description of Land 

All that certain real property situated in the County of San Diego, State of California, described as follows: 

PARCEL ONE: 
 Lots E and F in Block 100
of Horton’s Addition, in the City of San Diego, County of San Diego, State of California, according to Map thereof made by L.L. Lockling, filed in the Office of the County Recorder of San Diego County. 

Assessor’s Parcel No: 535 121 04 & 05 
 PARCEL TWO: 
 The South 20.00 feet of Lot C and all of Lot D, in Block 100 of Horton’s
Addition, in the City of San Diego, County of San Diego, State of California, according to Map thereof made by L.L. Lockling, filed in the Office of the County Recorder of San Diego County. 
 Assessor’s Parcel No: 535 121 11 

  

					
		 	1	 	Purchase Agreement Exhibits

 EXHIBIT B 

Deed 
 RECORDING
REQUESTED BY: 
 WHEN RECORDED MAIL TO: 

[Insert Name and Address of Closing Agent] 
  

 
  

 
 MAIL TAX STATEMENTS TO: 

 
  

 
  

 
  
  

(Space Above Line For Recorder’s Use Only) 
 In accordance with Section 11932 of the California Revenue and Tax Code, Grantor has declared the amount of transfer tax which is due by separate statement which is not being recorded with this
Grant Deed. 
 GRANT DEED 
 FOR VALUE RECEIVED, IND EAST VILLAGE SD HOLDINGS, LLC, a Delaware limited liability company (“Grantor”), hereby grants to CHSP SAN DIEGO LLC, a Delaware limited liability company
(“Grantee”), all that certain real property lying, being, and situated in the City of San Diego, County of San Diego, State of California, more particularly described in Exhibit “A” attached hereto and
incorporated herein by reference, together with all buildings and improvements located thereon and any and all easements, privileges and rights appurtenant thereto (collectively, the “Property”). 

THE PROPERTY IS CONVEYED TO GRANTEE SUBJECT TO those matters of record affecting and/or encumbering the Property and those matters which would be
disclosed by an accurate survey of the Property. 
 TO HAVE AND TO HOLD the Property with all easements, privileges and rights appurtenant
thereto unto the Grantee and unto the Grantee’s successors and assigns forever. 
 IN WITNESS WHEREOF, Grantor has executed this Grant Deed
as of                                 
        , 2011. 
  

			
	“GRANTOR”
	
	 IND EAST VILLAGE SD HOLDINGS, LLC,
 a Delaware limited liability company

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	Purchase Agreement Exhibits	 	1	 	

 STATE OF
                                         )

                         
                                    ) 

COUNTY OF
                                     ) 

On
                                    , before me,
                                         
                                         
                  , Notary Public, personally appeared
                                         
                                         
                  , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true
and correct. 
 WITNESS my hand and official seal. 
  

			
	  	 	 
	Signature of Notary Public	 	(Seal)

  

					
	Purchase Agreement Exhibits	 	2	 	

 EXHIBIT A 
 Legal Description 
 The real property located in the City of San Diego, County of San Diego, State
of California, more particularly described as follows: 
 [insert legal description] 

  

					
	Purchase Agreement Exhibits	 	3	 	

 STATEMENT OF DOCUMENTARY TRANSFER TAX 

[to be affixed to Grant Deed] 

                    , 2011 

Recorder’s Office of 
 San Diego County,
California 
 In accordance with Section 11932 of the California Revenue and Taxation Code, the undersigned hereby requests that this
statement of documentary transfer tax not be recorded with the attached Grant Deed (the “Deed”) but be affixed to the Deed after recordation and be returned as directed on the Deed. The Deed names
                    , as grantee. The property that is the subject of the Deed is located in the City of San Diego, County of San Diego, State
of California. 
 The documentary transfer tax amount, for the attached Deed is $61,050.00 computed on the full value of the property.

  

			
	 IND EAST VILLAGE SD HOLDINGS, LLC,
 a Delaware limited liability company

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	Purchase Agreement Exhibits	 	4	 	

 EXHIBIT C 

Bill of Sale 
 THIS BILL OF SALE is executed as of the              day of
            , 2011 by IND EAST VILLAGE SD HOLDINGS, LLC, a Delaware limited liability company (“Seller”) and CHSP SAN DIEGO LLC, a Delaware limited liability company
(“Purchaser”). 
 W I T N E S S E T H: 
 WHEREAS, pursuant to that certain Hotel Purchase and Sale Agreement between Seller and Purchaser dated             , 2011 (the
“Purchase Agreement”), as of the date hereof, Seller has transferred and conveyed to Purchaser certain real property in San Diego, California and improvements thereon, such real property being described on Exhibit
“A” attached hereto and made a part hereof (the “Property”); and 
 WHEREAS, in connection with
the transfer of the Property by Seller to Purchaser, Seller has also agreed to transfer to Purchaser certain personal property located on the Property; 
 NOW, THEREFORE, for and in consideration of TEN AND NO/100 ($10.00) DOLLARS and other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, Seller has
GRANTED, QUITCLAIMED, CONVEYED, SOLD, TRANSFERRED, SET-OVER, and DELIVERED, and by these presents does hereby GRANT, QUITCLAIM, CONVEY, SELL, TRANSFER, SET-OVER, and DELIVER unto Purchaser, the Personal Property (as such term is defined and
described more particularly hereinbelow) all and singular, the Personal Property unto Purchaser forever. EXCEPT AS MAY OTHERWISE BE SET FORTH IN THE PURCHASE AGREEMENT, BUT SUBJECT TO THE LIABILITY LIMITATION SET FORTH IN PARAGRAPH 14.19 OF THE
PURCHASE AGREEMENT, THE PERSONAL PROPERTY IS CONVEYED ON AN “AS-IS, WHERE-IS” BASIS AND “WITH ALL FAULTS”, WITHOUT ANY REPRESENTATION OR WARRANTY WHATSOEVER. SELLER HEREBY EXPRESSLY DISCLAIMS ANY WARRANTIES AS TO MERCHANTABILITY
AND/OR FITNESS FOR A PARTICULAR PURPOSE AND ANY OTHER WARRANTIES OR REPRESENTATIONS AS TO THE PHYSICAL CONDITION OF THE PERSONAL PROPERTY. BY PURCHASER’S ACCEPTANCE OF THIS BILL OF SALE, PURCHASER ACKNOWLEDGES AND AGREES THAT IT HAS INSPECTED
THE PERSONAL PROPERTY AND (EXCEPT AS OTHERWISE PROVIDED IN THE PURCHASE AGREEMENT) ACCEPTS THE SAME IN ITS PRESENT CONDITION, “AS-IS”, “WHERE-IS” AND “WITH ALL FAULTS”. 

As used herein, the term “Personal Property” has the meaning given to such term in the Purchase Agreement.

 This Bill of Sale and the provisions herein contained shall be binding upon and inure to the benefit of Seller and Purchaser
and their respective successors and assigns. 
 [SIGNATURE ON FOLLOWING PAGE] 

  

					
	Purchase Agreement Exhibits	 	1	 	

 IN WITNESS WHEREOF, Seller has executed this Bill of Sale as of
[            ], 2011. 
  

			
	IND EAST VILLAGE SD HOLDINGS, LLC, a Delaware limited liability company
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	Purchase Agreement Exhibits	 	2	 	

 EXHIBIT D 

Reserved 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT E 

General Assignment 
 THIS GENERAL ASSIGNMENT AGREEMENT (this “Assignment”) is made as of [            ], 2011, by
            , a              (“Seller”) and
[            ], a [            ] (“Purchaser”). 

RECITALS 
 A. Seller is the owner of certain property commonly known as the “            ” located in San Diego, California. 

B. Seller and Purchaser have entered into that certain Hotel Purchase and Sale Agreement, dated as of
            , 2011 (the “Purchase Agreement”), pursuant to which Seller has agreed to sell and Purchaser has agreed to purchase the real property described in
Exhibit A attached thereto and the improvements located thereon (the “Property”), on the terms and conditions stated in the Purchase Agreement. All terms not otherwise defined herein shall have the meaning assigned to
them in the Purchase Agreement. 
 C. Pursuant to the Purchase Agreement, Seller has agreed to assign to Purchaser all of
Seller’s right, title and interest in, to and under the Bookings, the Assumed Contracts (as defined below), and the Other Interests. 
 NOW, THEREFORE, for and in consideration of TEN AND NO/100 ($10.00) DOLLARS and other good and valuable consideration, the receipt, adequacy, and sufficiency of which are hereby acknowledged, Seller and
Purchaser hereby agree as follows: 
 1. Assignment. Seller hereby sells, assigns, transfers and conveys to Purchaser,
without recourse and without representation or warranty of any kind (except as expressly provided in the Purchase Agreement), all of Seller’s right, title and interest in and to (a) the Bookings, (b) the Contracts listed on
Schedule A attached hereto and by referenced made a part hereof (collectively, the “Assumed Contracts”) and (c) the Other Interests. The foregoing assignment and conveyance is made and accepted subject to all
representations, warranties, covenants, indemnities and other provisions of the Purchase Agreement. 
 2. Assumption.
Purchaser hereby assumes the benefits of Seller and assumes and agrees to be bound by all of the covenants, obligations, liabilities, and burdens of Seller arising from and after the date hereof under or in connection with (a) the Bookings,
(b) the Assumed Contracts and (c) the Other Interests. 
 3. Successors. This Assignment shall inure to the
benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns. 

  

					
	Purchase Agreement Exhibits	 	1	 	

 4. Governing Law. This Assignment shall be governed by the laws of the State of
Georgia. 
 5. Attorneys’ Fees. If any action or proceeding is commenced by either party to enforce their rights
under this Assignment or to collect damages as a result of the breach of any of the provisions of this Assignment, the prevailing party in such action or proceeding, including, without limitation, any bankruptcy, insolvency or appellate proceedings,
shall be entitled to recover all reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees and court costs, in addition to any other relief awarded by the court. 

6. Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original, and both of which
together shall constitute one and the same instrument. 
 [Signature page follows] 

  

					
	Purchase Agreement Exhibits	 	2	 	

 IN WITNESS WHEREOF, Purchaser and Seller have caused this Assignment to be executed as of
the date first above written. 
  

			
	SELLER:
	 __________________________,

	a_________________________
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
	Purchase Agreement Exhibits	 	3	 	

			
	PURCHASER:
	 __________________________,

	a_________________________
		
	By:	 	 
	Name:	 	 
	Its:	 	 

  

					
	Purchase Agreement Exhibits	 	4	 	

 SCHEDULE A 

List of Assumed Contracts 
 [See Attached] 

  

					
	Purchase Agreement Exhibits	 	5	 	

 EXHIBIT F 

Reserved 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT G 

Non-Foreign Affidavit 
 Personally appeared before me the undersigned officer, duly authorized to administer oaths,             , who being duly sworn according
to law, deposes and says on oath as follows: 
 1. The undersigned is presently the
             of IND EAST VILLAGE SD HOLDINGS, LLC, a Delaware limited liability company (the “Company”). 

2. The undersigned is familiar with the affairs of the Company and has personal knowledge of the facts sworn to in this Affidavit, and is
authorized on behalf of the Company to make this Affidavit. 
 3. The Company is the owner of that certain property (the
“Property”) described on Exhibit “A” attached hereto and by this reference made a part hereof and the Company has caused to be executed and delivered that certain grant deed, of even date herewith, conveying the
Property to CHSP SAN DIEGO LLC, a Delaware limited liability company (“Purchaser”). 
 4. Section 1445 of the
Internal Revenue Code provides that a purchaser of a U.S. real property interest must withhold tax if the seller is a foreign person. To inform the Purchaser that the withholding of tax is not required upon the disposition of the Property by the
Company, the undersigned hereby certifies the following on behalf of the Company: 
  

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

  

	 	(b)	The Company is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Income Tax Regulations; 

 

	 	(c)	The Company’s U.S. Taxpayer Identification Number is             ; 

 

			
	(d)    The Company’s office address is:	  	c/o InterContinental Hotels Group
		  	Three Ravinia Drive
		  	Suite 100
		  	Atlanta, Georgia 30346-2149

 5. The Company understands that this certification may be disclosed to the Internal Revenue Service by
the Purchaser and that any false statement contained herein could be punished by fine, imprisonment, or both. 
 6. Under
penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of the Company.

  

					
	Purchase Agreement Exhibits	 	1	 	

 [SIGNATURES BEGIN ON THE FOLLOWING PAGE] 

  

					
	Purchase Agreement Exhibits	 	2	 	

 [SIGNATURE PAGE TO NON-FOREIGN AFFIDAVIT] 

GIVEN under my hand and seal this              day of
            , 2011. 
  

	
	
	
	  
	
	Name: ______________________________

  

					
	Purchase Agreement Exhibits	 	3	 	

					
	STATE OF _________________	 	)	  	 
		 	)	  	
	COUNTY OF ________________	 	)	  	

 On             , before me,
                                         
                           , Notary Public, personally appeared
                                         
                                   , who proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 
 I
certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 
  

	
	WITNESS my hand and official seal.
	
	  
	Signature of Notary Public (Seal)

  

					
	Purchase Agreement Exhibits	 	4	 	

 EXHIBIT H 

AFFIDAVIT OF TITLE 
  

					
	State of California	 	)	  	 
		 	)            SS:	  	
	County of San Diego	 	)	  	

 Before the undersigned Notary Public,
                                         
                                   , being duly sworn says, as of the
date hereof and to the best of the undersigned’s actual knowledge, as follows: 
 1. That I am the
                                        
of IND East Village SD Holdings, LLC, a Delaware limited liability company, the owner of certain real property (the “Owner”) located at 509 9th Avenue, San Diego California and described in First American Title Report
No.              (the “Real Property”). 
 2.
Except with respect to routine preventative maintenance on or with respect to the existing physical plant of the Hotel and other related equipment at the Hotel and other de minimis repairs and work undertaken at the Hotel, the costs for which
have been or will be paid in the ordinary course of the Hotel’s business, no improvements or repairs have been made on or at the Real Property and no services have been rendered on the Real Property at the request of Owner during the ninety
(90) days immediately preceding this date. Except with respect to routine preventative maintenance on or with respect to the existing physical plant of the Hotel and other related equipment at the Hotel and other de minimis repairs and
work undertaken at the Hotel, the costs for which have been or will be paid in the ordinary course of the Hotel’s business, there are no contracts pending or not yet completed with respect to improvements, repairs, or services on or to the Real
Property. 
 3. That Owner has not received notice of any pending court action affecting the title to the Real Property.

 4. That except as shown in the above-referenced title report, there are no unpaid or unsatisfied mortgages, deeds of trust,
Uniform Commercial Code financing statements or claims of lien that constitute a lien against the Real Property or that affect the Real Property but have not been recorded in the public records. 

5. That the Real Property is currently in use as a hotel. 
 6. That there are no leases affecting the Real Property. 
 7. That there are no
options to purchase or rights of first refusal to purchase the Real Property other than as otherwise provided in that certain Hotel Purchase and Sale Agreement, dated of even date herewith, by and between Owner and CHSP San Diego LLC or its
permitted assignees. 

  

					
	Purchase Agreement Exhibits	 	1	 	

 8. That there has been no filing by Owner, nor has Owner received written notice of any
filing against Owner, of any petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver or trustee. 
 9. That this Affidavit is given for the purpose of inducing First American Title Insurance Company and its applicable agent to issue its policy of title insurance for and with respect to the Real Property
which may provide coverage as to the items mentioned above and that the statements made herein are true and correct to the best of my actual knowledge. 
 Executed on this              day of             , 2011. 

 

	
	  

 State of
                     
 County of
                     

Subscribed and sworn to (or affirmed) before me on this             
day of             , 2011, by
                            , personally known to me or proved to me on the basis of satisfactory
evidence to be the person(s) who appeared before me. 
  

									
				
	(Seal)	 		 	Signature	 	 

  

					
	Purchase Agreement Exhibits	 	2	 	

 EXHIBIT I 

Reserved 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT J 

Reserved 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT K 

Reserved 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT L 

As-Is Agreement 
 BUYER’S AS-IS CERTIFICATE AND AGREEMENT 
 THIS BUYER’S
AS-IS CERTIFICATE AND AGREEMENT (this “Agreement”), is made as of
                             by
                                     (“Contract
Buyer”) and
                                        
 (“Assignee”; Contract Buyer and Assignee are herein referred to collectively as “Buyer”) to and for the benefit of
                                    
(“Seller”). 
 RECITALS 
 WHEREAS, pursuant to the terms of that certain Hotel Purchase and Sale Agreement, dated as of
                        , by and between Seller and Buyer (the “Sale Agreement”), Seller agreed to sell
to Buyer, inter alia, that certain Hotel and real property legally described on Exhibit A attached hereto and incorporated herein by this reference, the improvements located thereon and certain rights appurtenant thereto,
all as more particularly described in the Sale Agreement. Initially capitalized terms not otherwise defined herein shall have the respective meanings ascribed to such terms in the Sale Agreement; and 

WHEREAS, the Sale Agreement requires, inter alia, that, as a condition precedent to Seller’s obligations under the Sale
Agreement, Buyer shall execute and deliver this Agreement to Seller at Closing. 
 NOW, THEREFORE, in consideration of TEN AND
NO/100 DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer hereby certifies and agrees as follows: 
 1. For purposes of this Agreement, the following terms shall have the following meanings: 
 “Assumed Liabilities” shall mean (a) any and all Liabilities attributable to the Property, arising or accruing from and after the Closing Date, (b) subject to the Seller’s
Warranties, all Liabilities with respect to the structural, physical, or environmental condition of the Property, except for any Liabilities with respect to any claims for personal injury or property damage suffered by a person (other than
Buyer’s Parties) including any such personal injury or property damage resulting from the condition of the Property, which injury or damage occurred at the Property during the period of Seller’s ownership; (c) all Liabilities relating
to the release of or the presence, discovery or removal of any Hazardous Materials in, at, about or under the Property, or for, connected with or arising out of any and all claims or causes of action based upon CERCLA (Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§9601 et seq., as amended by SARA (Superfund Amendment and Reauthorization Act of 1986) and as may be further amended from time to time), the Resource Conservation and
Recovery Act of 1976, 42 U.S.C. §§6901 et seq., or any related claims or causes of action or any other federal, state or municipal based statutory or regulatory causes of 

  

					
	Purchase Agreement Exhibits	 	1	 	

 
action for environmental contamination at, in, about or under the Property except for any Liabilities with respect to any claims for personal injury or property damage suffered by a person (other
than Buyer’s Parties) including any such personal injury or property damage resulting from the condition of the Property, which injury or damage occurred at the Property during the period of Seller’s ownership. Notwithstanding the
foregoing, however, “Assumed Liabilities” shall not include any Liabilities arising out of or in connection with: 
 (i) any claims made or causes of action alleging a default or breach by Seller which is alleged to have occurred prior to the date hereof under any Contract entered into between Seller and any such
claimant unless Buyer knows or is deemed to know about such claim or cause of action on or before the date hereof; or 
 (ii) any tort claims made or brought with respect to the Property or the use or operation thereof as to which the claimed injury occurred during the time that Seller owned the Property unless Buyer
knows or is deemed to know about such claim on or before the expiration of the Due Diligence Period. 
 “Buyer’s
Representatives” shall mean Buyer any officers, directors, employees, agents, representatives and attorneys of Buyer or any such direct or indirect owner of any beneficial interest. 

“deemed to know” (or words of similar import) shall have the following meaning: 

 

	 	(a)	Buyer shall be “deemed to know” of the existence of a fact or circumstance to the extent that: 

 

	 	(i)	any of Buyer’s counsel, D. Rick Adams, or Graham J. Wootten actually knows of such fact or circumstance, or 

 

	 	(ii)	such fact or circumstance is disclosed by the Sale Agreement, any documents executed by Seller for the benefit of Buyer in connection with the Closing, the Documents,
or any Buyer’s Diligence Reports. 

  

	 	(b)	Buyer shall be “deemed to know” that any Seller’s Warranty is untrue, inaccurate or incorrect to the extent that: 

 

	 	(i)	any of Buyer’s counsel, D. Rick Adams, or Graham J. Wootten has actual knowledge of information which is inconsistent with such Seller’s Warranty, or

  

	 	(ii)	the Sale Agreement, any documents executed by Seller for the benefit of Buyer in connection with the Closing, the Documents, or any Buyer’s Diligence Reports
contains information which is inconsistent with such Seller’s Warranty. 

  

					
		 	2	 	Purchase Agreement Exhibits

 “Documents” shall mean the documents and instruments applicable to the
Property or any portion thereof that Seller or any of the other Seller Parties deliver or make available to Buyer or Buyer’ Representatives prior to Closing or which are otherwise obtained by Buyer or Buyer’s Representatives prior to
Closing, including, but not limited to, the Title Commitment, the Survey, the Title Documents, and the Property Documents. 

“Due Diligence” shall mean examinations, inspections, investigations, tests, studies, analyses, appraisals, evaluations
and/or investigations with respect to the Property, the Documents, and other information and documents regarding the Property, including, without limitation, examination and review of title matters, applicable land use and zoning Laws and other Laws
applicable to the Property, the physical condition of the Property, and the economic status of the Property. 

“Hazardous Materials” shall mean any substance, chemical, waste or material that is or becomes regulated by any federal,
state or local governmental authority because of its toxicity, infectiousness, radioactivity, explosiveness, ignitability, corrosiveness or reactivity, including, without limitation, asbestos or any substance containing more than 0.1 percent
asbestos, the group of compounds known as polychlorinated biphenyls, flammable explosives, oil, petroleum or any refined petroleum product. 
 “Liabilities” shall mean, collectively, any and all losses, costs, damages, claims, liabilities, expenses, demands or obligations of any kind or nature whatsoever. 

“Property Documents” shall mean all books, records and files of Seller and of the management agent for the Property
related to the Property and made available to Buyer and Buyer’s Representatives (other than books, records and files containing Confidential Materials). 
 “Seller Parties” shall mean and include, collectively, (a) Seller; (b) its counsel; (c) Seller’s Broker; (d) Seller’s property manager; (e) any direct
or indirect owner of any beneficial interest in Seller; (f) any officer, director, employee, or agent of Seller, its counsel, Seller’s Broker, Seller’s property manager or any direct or indirect owner of any beneficial interest in
Seller; and (g) any other entity or individual affiliated or related in any way to any of the foregoing. 

“Seller’s Warranties” shall mean Seller’s representations and warranties set forth in Paragraph 8.1 and
Paragraph 11.1 of the Sale Agreement and any documents executed by Seller for the benefit of Buyer in connection with Closing, as the same may be deemed modified or waived by Buyer pursuant to the terms of the Sale Agreement. 

2. Buyer acknowledges and agrees that, prior to the date hereof: (a) Seller has made available to Buyer, or otherwise allowed Buyer
access to, the Property and all Property Documents; (b) Buyer has conducted (or has waived its right to conduct) all Due Diligence (including Due Diligence with respect to Hazardous Materials) as Buyer considered necessary or appropriate;
(c) Buyer has reviewed, examined, evaluated and verified, to the extent it has been able to verify, the results of its Due Diligence to the extent it deems necessary or appropriate with the assistance of such experts as Buyer deemed
appropriate; (d) Buyer is an experienced 

  

					
		 	3	 	Purchase Agreement Exhibits

 
investor that specializes in the investment in and ownership and operation of hotel properties in geographically diverse markets, and as such, it is a sophisticated real estate owner and investor
with particular experience in the acquisition, ownership and operation of hotels similar to the Hotel; (e) Buyer has the ability through its own employees, or through agents, independent contractors, consultants or other experts with whom it
has a relationship, to evaluate fully the investment characteristics of the Hotel and to assess fully all issues pertaining to title to the Real Property, the value of the Property, the past performance of the Hotel, the projected performance of the
Hotel, the structural integrity and soundness of all improvements and structures located on the Real Property, the environmental condition of the Real Property, and the compliance of the Hotel and the operation and management thereof with all Laws;
(f) Buyer has determined to its satisfaction the assignability of any Documents to be assigned as part of the Transaction; and (g) except for, and only to the extent of, Seller’s Warranties and the other covenants of Seller expressly
set forth in the Sale Agreement to the extent such covenants survived the Closing, is acquiring the Property based exclusively upon its own Due Diligence. 
 3. Buyer acknowledges and agrees that, except for, and only to the extent of, Seller’s Warranties, the covenants of Seller expressly set forth in the Sale Agreement and as otherwise expressly set
forth in the Sale Agreement, to the extent any covenants or other provisions survived the Closing: 
  

	 	(a)	The Property is being sold, and Buyer is accepting possession of the Property on the date hereof, “AS IS, WHERE IS, WITH ALL FAULTS”, with no right of setoff
or reduction in the Purchase Price. 

  

	 	(b)	None of the Seller Parties have or shall be deemed to have made any verbal or written representations, warranties, promises or guarantees (whether express, implied,
statutory or otherwise) to Buyer with respect to the Property, any matter set forth, contained or addressed in the Documents (including, but not limited to, the accuracy and completeness thereof), any offering memorandum, any financial data or
projections supplied to Buyer, or the results of Buyer’s Due Diligence. 

  

	 	(c)	Buyer has confirmed independently all information that it considers material to its purchase of the Property or the Transaction. 

 

	 	(d)	Buyer is not relying on (and Seller and each of the other Seller Parties does hereby disclaim and renounce) any representations or warranties of any kind or
nature whatsoever, whether oral or written, express, implied, statutory or otherwise, from Seller or any other Seller Parties, as to: 

  

	 	(i)	the operation or performance of the Property, the income potential, economic status, uses, or the merchantability, habitability or fitness of any portion of the
Property for a particular purpose; 

  

	 	(ii)	 the physical condition of the Property or the condition or safety of the Property or any component thereof, including, but not limited to, plumbing,
sewer, heating, ventilating and electrical systems, roofing, air 

  

					
		 	4	 	Purchase Agreement Exhibits

	 	
conditioning, foundations, soils and geology, including Hazardous Materials, lot size, or suitability of the Property or any component thereof for a particular purpose; 

 

	 	(iii)	the presence or absence, location or scope of any Hazardous Materials in, at, about or under the Property; 

 

	 	(iv)	whether the appliances, if any, plumbing or utilities are in working order; 

 

	 	(v)	the habitability or suitability for occupancy of any structure and the quality of its construction; 

 

	 	(vi)	whether the improvements are structurally sound, in good condition, or in compliance with applicable Laws; 

 

	 	(vii)	the accuracy of any statements, calculations or conditions stated or set forth in the Documents, any offering memorandum, any financial data or projections supplied to
Buyer, other books and records concerning the Property, or any of Seller’s, or third parties’, offering materials with respect to the Property; 

  

	 	(viii)	the dimensions of the Property or the accuracy of any floor plans, square footage, lease abstracts, sketches, or revenue or expense projections related to the Property;

  

	 	(ix)	the locale of the Property, the leasing market for the Property, or the market assumptions Buyer utilized in its analysis of the Property and determination of the
Purchase Price (such as hotel occupancy rate, revenue per available room, rental rates, leasing costs, vacancy and absorption rates, land values, replacement costs, maintenance and operating costs, financing costs, etc.);

  

	 	(x)	whether the Property is or would likely constitute a target of terrorist activity or other acts of war; 

 

	 	(xi)	the ability of Buyer to obtain any and all necessary governmental approvals or permits for Buyer’s intended use and development of the Property;

  

	 	(xii)	the leasing status of the Property or the intentions of any parties with respect to the negotiation and/or execution of any lease for any portion of the Property; and

  

	 	(xiii)	Seller’s ownership of any portion of the Property. 

  

					
		 	5	 	Purchase Agreement Exhibits

 4. Any repairs or work required by Buyer are the sole responsibility of Buyer, and Buyer
agrees that there is no obligation on the part of Seller to make any changes, alterations or repairs to the Property, including, without limitation, to cure any violations of Law, comply with the requirements of any insurer or otherwise, except as
otherwise expressly set forth in the Sale Agreement or as otherwise agreed by the parties. 
 5. Except as expressly provided
hereinbelow in this Section 5, Buyer, for Buyer and Buyer’s successors and assigns, hereby releases Seller and each of the other Seller Parties from the following: 

(a) any and all statements or opinions heretofore or hereafter made, or information furnished, by the Seller Parties to
Buyer or any of Buyer’s Representatives; anyway matters set forth in promotional materials, documentation, summaries, analysis, reports, projections, due diligence deliveries, statements or other information in any form (whether written,
verbal, electronic or otherwise), except as otherwise provided in the Sale Agreement, and 
 (b) any and all
Liabilities with respect to the structural, physical, or environmental condition of the Property, except as otherwise provided in the Sale Agreement; and 
 (c) any and all Liabilities relating to the release of or the presence, discovery or removal of any Hazardous Materials in, at, about or under the Property, or for, connected with or arising out of any
and all claims or causes of action based upon CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. §§9601 et seq., as amended by SARA (Superfund Amendment and Reauthorization Act of 1986)
and as may be further amended from time to time), the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §§6901 et seq., or any related claims or causes of action or any other federal, state or municipal based statutory or
regulatory causes of action for environmental contamination at, in, about or under the Property, except as otherwise provided in the Sale Agreement; and 
 (d) any implied or statutory warranties or guaranties of fitness, merchantability or any other statutory or implied warranty or guaranty of any kind or nature regarding or relating to any portion of the
Property. 
 The release and waiver set forth in this Section 5 is not intended and shall not be construed to affect or impair any
rights or remedies that Buyer may have against Seller as a result of a breach of any of Seller’s Warranties or its covenants set forth in the Sale Agreement. 
 6. Except as otherwise expressly provided in the Sale Agreement and/or the documents executed and delivered between Seller and Contract Buyer at the Closing (as defined in the Sale Agreement), Buyer
expressly understands and acknowledges that it is possible that unknown Liabilities may exist with respect to the Property and that Buyer explicitly took that possibility into account in determining and agreeing to the Purchase Price. Except as
otherwise expressly provided in the Sale Agreement and/or the documents executed and delivered between 

  

					
		 	6	 	Purchase Agreement Exhibits

 
Seller and Contract Buyer at the Closing (as defined in the Sale Agreement), the parties hereto hereby expressly waive the application of California Civil Code Section 1542, which provides
that “[a] general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement
with the debtor.” 
 7. Buyer acknowledges and agrees that the provisions of this Agreement were a material factor in
Seller’s acceptance of the Purchase Price and, while Seller has provided the Documents and cooperated with Buyer, Seller is unwilling to sell the Property unless Seller and the other Seller Parties are expressly released as set forth in
Section 5 and Buyer assumes the obligations specified in, and provides the indemnifications set forth in the Sale Agreement. 
 8. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

9. If any term or provision of this Agreement or the application thereof to any persons or circumstances shall, to any extent, be invalid
or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of
this Agreement shall be valid and enforced to the fullest extent permitted by law. 
 IN WITNESS WHEREOF, Buyer has
executed this Agreement as of the date first set forth hereinabove. 
  

					
	BUYER:
	
	_____________________________
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

					
	SELLER:
	
	_____________________________
		
	By:	 	 
		 	Name:	 	 
		 	Title:	 	 

  

					
		 	7	 	Purchase Agreement Exhibits

 EXHIBIT M 

Reserved 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT N 

List of Contracts 

Service / Maintenance Agreements 
  

					
	 Contractor Name
	  	 Service Description
	  	Contract Date
		  		  	10/24/2008 -
	 ACE Parking
	  	Parking Services	  	Addendum on
		  		  	4/22/2009
	 Anitsa Inc. d/b/a Valet Services Laundry
	  	Laundry Services	  	5/10/2011
	 Aquaclear Water Treatment Specialists
	  	Water treatment program	  	4/15/2011
	 BayCity Electric Works
	  	Maintenance Agreement	  	9/8/2009
	 CoxCom, Inc. d/b/a/ Cox Business
	  	Cable Services (Standard commercial agreement - cable and home box office)	  	5/5/2009,
second
agreement
2/23/2010
	 CoxCom, Inc. d/b/a/ Cox Business
	  	Cable Services (Commercial Padres HD Digital Package)	  	5/8/2009
	 CoxCom, Inc. d/b/a/ Cox Business
	  	Cable Services (Optical Internet)	  	5/8/2009
	 GBCblue
	  	Guest Computing and Services Agreement	  	6/24/2009
		  		  	(executed)
	 NewMarket International, Inc.
	  	Delphi Software support	  	1/1/2011
	 Oakleaf Waste Management, LLC.
	  	Waste Management Compactor	  	7/2/2009
	 Siemens
	  	Security System monitoring	  	
	 Simplex Grinnell
	  	Kitchen Hood Cleaning	  	9/1/2010
	 Simplex Grinnell
	  	Misc Fire Detection / Extinguishing System Maintenance	  	12/1/2009
	 ThyssenKrupp
	  	Elevator Maintenance	  	3/1/2011
	 Tiger, Inc.
	  	Sale and Purchase Contract for Natural Gas	  	9/23/2010
	 Trisignal Integration, Inc.
	  	Security System monitoring	  	6/1/2009
	 Xtreme Heating and Airconditioning, Inc.
	  	Air Conditioning Maintenance	  	3/4/2011
			
	 Airline Accommodations Contracts

 
	  	 	  	 
	 Contractor Name
	  	 Service Description
	  	Contract Date
	 Hawaiian Airlines
	  	Agreement to provide Airline Accommodations	  	6/1/2010
	 Jet Blue
	  	Crew Room Accommodation Agreement	  	9/13/2010

  

	*	Notwithstanding anything to the contrary contained in this Exhibit N or in other provisions of the Agreement, the Seller and Buyer hereby acknowledge and
agree that Allied Barton continues to provide security services for and with respect to the Hotel, on a month-to-month basis, pursuant to a written agreement dated June 29, 2009, which written agreement has expired by its terms.

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT O 

List of Employees 

  

					
	Purchase Agreement Exhibits	 	1	 	

 EXHIBIT P 

Management Agreement 

  

					
		 	2	 	Purchase Agreement ExhibitsExhibit 10.3

 Exhibit 10.3 

 
  

 
 PURCHASE AND SALE AGREEMENT

 for 

Hotel Adagio, 

San Francisco, California 
 by and between 
 SC HOTEL PARTNERS, LLC, 

a Delaware limited liability company 
 (“Seller”) 
 and 

CHSP UNION SQUARE LLC, 
 a Delaware limited liability company 
 (“Buyer”) 

Dated as of June 15, 2011 
  

 
  

 TABLE OF CONTENTS 

 

					
	  	  	Page	 
		
	 1.      PURCHASE AND SALE OF PROPERTY; ASSUMPTION OF LIABILITIES
	  	 	1	  
		
	 (a)    Purchase and Sale of Property
	  	 	1	  
	 (b)    Property
	  	 	1	  
	 (c)    Excluded Property
	  	 	3	  
	 (d)    Assumed Liabilities
	  	 	3	  
		
	 2.      PURCHASE PRICE
	  	 	4	  
		
	 (a)    Deposit
	  	 	4	  
	 (b)    Interest; Escrow Provisions
	  	 	4	  
	 (c)    Cash at Closing
	  	 	6	  
	 (d)    Allocation
	  	 	6	  
		
	 3.      TITLE AND INSPECTION PERIOD
	  	 	6	  
		
	 (a)    Survey
	  	 	6	  
	 (b)    Condition of Title
	  	 	7	  
	 (c)    Title Objections
	  	 	7	  
	 (d)    Title Insurance
	  	 	8	  
	 (e)    Inspection Period
	  	 	9	  
	 (f)     Equipment Leases
	  	 	10	  
		
	 4.      CLOSING
	  	 	10	  
		
	 (a)    Closing Date
	  	 	10	  
	 (b)    Buyer’s Deliveries
	  	 	10	  
	 (c)    Seller’s Deliveries
	  	 	10	  
	 (d)    Closing Costs
	  	 	12	  
	 (e)    Prorations and Items to be Prorated
	  	 	12	  
		
	 5.      CONDITIONS TO CLOSING
	  	 	18	  
		
	 (a)    Buyer’s Obligation
	  	 	18	  
	 (b)    Seller’s Obligation
	  	 	19	  
		
	 6.      REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	19	  
		
	 (a)    Authority; No Conflicts
	  	 	19	  
	 (b)    Title to Property
	  	 	20	  
	 (c)    Compliance with Applicable Laws
	  	 	20	  
	 (d)    Taxes
	  	 	20	  
	 (e)    Bankruptcy
	  	 	21	  
	 (f)     Condemnation
	  	 	21	  
	 (g)    Contracts
	  	 	21	  
	 (h)    Intentionally Deleted
	  	 	21	  
	 (i)     Equipment Leases
	  	 	21	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

					
	  	  	Page	 
	 (j)     Hotel Management Agreement
	  	 	21	  
	 (k)    Special Assessments
	  	 	22	  
	 (l)     FIRPTA
	  	 	22	  
	 (m)   Environmental Matters
	  	 	22	  
	 (n)    Adverse Actions or Proceedings
	  	 	22	  
	 (o)    Insurance
	  	 	22	  
	 (p)    Authorizations
	  	 	23	  
	 (q)    Employees
	  	 	23	  
	 (r)     Reserves
	  	 	23	  
	 (s)    Tax Certiorari Appeals
	  	 	23	  
	 (t)     Options
	  	 	23	  
	 (u)    Unrecorded Commitments
	  	 	23	  
	 (v)    Work
	  	 	23	  
	 (w)   Development Rights
	  	 	23	  
	 (x)    Certificate of Occupancy
	  	 	24	  
	 (y)    Anti-Terrorism Laws
	  	 	24	  
	 (z)    No Implied Representations
	  	 	24	  
	 (aa)  Amendment to Schedules
	  	 	24	  
		
	 7.      COVENANTS OF SELLER
	  	 	24	  
		
	 (a)    Ordinary Conduct
	  	 	24	  
	 (b)    Contracts and Equipment Leases
	  	 	24	  
	 (c)    Bookings
	  	 	25	  
	 (d)    Authorizations
	  	 	25	  
	 (e)    Compliance
	  	 	25	  
	 (f)     Restrictions of Record
	  	 	25	  
	 (g)    Material Notices
	  	 	26	  
	 (h)    Contract/Equipment Lease Termination
	  	 	26	  
	 (i)     Insurance
	  	 	26	  
	 (j)     Notification
	  	 	26	  
	 (k)    Hotel Manager
	  	 	26	  
	 (l)     Estoppels
	  	 	26	  
		
	 8.      REPRESENTATIONS AND WARRANTIES OF BUYER; WAIVERS
	  	 	26	  
		
	 (a)    Representations and Warranties of Buyer
	  	 	26	  
	 (b)    Investigation; Financial
	  	 	27	  
	 (c)    No Additional Representations
	  	 	29	  
		
	 9.      COVENANTS OF BUYER
	  	 	29	  
		
	 (a)    Notification
	  	 	29	  
	 (b)    Hotel Management Agreement
	  	 	29	  

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

					
	  	  	Page	 
		
	 10.    MUTUAL COVENANTS
	  	 	29	  
		
	 (a)    Confidentiality
	  	 	29	  
	 (b)    Publicity
	  	 	30	  
	 (c)    Liquor License
	  	 	30	  
	 (d)    Further Assurances
	  	 	31	  
		
	 11.    DAMAGE OR DESTRUCTION OF THE PROPERTY; CONDEMNATION
	  	 	31	  
		
	 (a)    Damage or Destruction of the Property
	  	 	31	  
	 (b)    Condemnation
	  	 	32	  
	 (c)    Substantial Part
	  	 	32	  
		
	 12.    INDEMNITIES
	  	 	33	  
		
	 (a)    Seller’s Indemnity
	  	 	33	  
	 (b)    Buyer’s Indemnity
	  	 	33	  
	 (c)    Limitations on Indemnification
	  	 	33	  
	 (d)    Survival
	  	 	34	  
	 (e)    Indemnification as Sole Remedy
	  	 	34	  
		
	 13.    ASSIGNMENT
	  	 	34	  
		
	 14.    NO THIRD-PARTY BENEFICIARIES
	  	 	34	  
		
	 15.    TERMINATION
	  	 	34	  
		
	 (a)    Seller’s Termination Rights
	  	 	34	  
	 (b)    Buyer’s Termination Rights
	  	 	35	  
	 (c)    Cure Period
	  	 	36	  
	 (d)    Effect of Termination
	  	 	37	  
		
	 16.    INDEPENDENT AUDIT
	  	 	37	  
		
	 17.    KNOWLEDGE
	  	 	37	  
		
	 18.    EXPENSES
	  	 	37	  
		
	 19.    AMENDMENT AND WAIVER
	  	 	37	  
		
	 20.    NOTICES
	  	 	38	  
		
	 21.    INTERPRETATION
	  	 	39	  
		
	 22.    NO STRICT CONSTRUCTION
	  	 	39	  
		
	 23.    COUNTERPARTS
	  	 	39	  

  
 iii

 TABLE OF CONTENTS 

(continued) 
  

					
	  	  	Page	 
		
	 24.    ENTIRE AGREEMENT
	  	 	39	  
		
	 25.    BROKERAGE
	  	 	39	  
		
	 26.    DISCLAIMER REGARDING PROJECTIONS
	  	 	39	  
		
	 27.    SCHEDULES
	  	 	40	  
		
	 28.    SEVERABILITY
	  	 	40	  
		
	 29.    GOVERNING LAW
	  	 	40	  
		
	 30.    BULK SALE TRANSFER LAWS
	  	 	40	  
		
	 31.    EXHIBITS AND SCHEDULES
	  	 	40	  
		
	 32.    RECORDING
	  	 	40	  
		
	 33.    TIME OF THE ESSENCE
	  	 	41	  
		
	 34.    CALCULATION OF TIME PERIODS
	  	 	41	  
		
	 35.    INJUNCTIVE RELIEF, TRIAL BY JURY, ETC.
	  	 	41	  
		
	 36.    ATTORNEYS’ FEES
	  	 	41	  
		
	 37.    [INTENTIONALLY DELETED]
	  	 	41	  
		
	 38.    TAX APPEAL PROCEEDINGS
	  	 	41	  

  
 iv 

 LIST OF EXHIBITS AND DISCLOSURE SCHEDULES 

 

			
	 EXHIBITS
	  	
		
	 Exhibit A
	  	Definitions
		
	 Exhibit B
	  	Legal Description of Land
		
	 Exhibit C
	  	Bill of Sale
		
	 Exhibit D
	  	Assignment and Assumption
		
	 Exhibit E
	  	Grant Deed
		
	 Exhibit F
	  	FIRPTA
		
	SCHEDULES	  	
		
	 Schedule 6(g)
	  	Contracts
		
	 Schedule 6(h)
	  	Intentionally Deleted
		
	 Schedule 6(i)
	  	Equipment Leases
		
	 Schedule 6(m)
	  	Environmental Matters
		
	 Schedule 6(n)
	  	Adverse Actions or Proceedings
		
	 Schedule 6(o)
	  	Insurance
		
	 Schedule 6(p)
	  	Authorizations
		
	 Schedule 6(q)
	  	Employee Matters
		
	 Schedule 6(r)
	  	Reserves
		
	 Schedule 6(s)
	  	Tax Certiorari Appeals

 PURCHASE AND SALE AGREEMENT 

This PURCHASE AND SALE AGREEMENT (this “Agreement”), is made and entered into as of June 15, 2011 (the “Effective
Date”), by and between SC HOTEL PARTNERS, LLC a Delaware limited liability company (“Seller”) and CHSP UNION SQUARE LLC, a Delaware limited liability company (“Buyer”). 

WITNESSETH: 

WHEREAS, Seller desires to sell or cause to be sold to Buyer all of the Property, and Buyer desires to purchase such Property and to
assume all of the Assumed Liabilities, upon the terms and subject to the conditions set forth herein. 
 NOW, THEREFORE, in
consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the parties hereto hereby agree as follows: 

1. Purchase and Sale of Property; Assumption of Liabilities. 
 (a) Purchase and Sale of Property. On the terms and subject to the conditions of this Agreement, at the Closing, Seller shall sell, convey, transfer and assign to Buyer, and Buyer shall purchase
and acquire from Seller, all of Seller’s right, title and interest in and to the Property (defined below). Capitalized terms used herein, and not otherwise defined herein, shall have the meanings set forth in Exhibit A attached hereto.

 (b) Property. The term “Property” shall mean all right, title and interest of Seller in the following:

 (i) that certain real property located at 550 Geary Street, San Francisco, California, as more particularly
described on Exhibit B, being that parcel on which the Hotel (as hereinafter defined) is located together with all easements, rights, privileges, remainders, reversions and appurtenances thereunto belonging or in any way appertaining, and all
of the estate, right, title, interest, claim or demand whatsoever of Seller therein, in the streets and ways adjacent thereto and in the beds thereof, either at law or in equity, in possession or expectancy, now or hereafter acquired (the
“Land”); 
 (ii) the hotel known as the Hotel Adagio and related amenities located on the Land (the
“Hotel”) and all other buildings, improvements, fixtures and other items of real estate which constitute real property under applicable law located on the Land (the “Improvements”); 

(iii) all fixtures (other than those which constitute Improvements), building and construction materials, furniture,
furnishings, equipment, machinery, tools, vehicles, appliances, art work and other items of tangible personal property of every kind and nature located on or used in the operation of the Hotel and owned by Seller, including, without limitation, the
Consumable Inventory and such other inventory, if any, located at the Hotel and held for sale in the ordinary course of business, television sets, carpets, drapes, rugs, floor coverings, mattresses and pillows, (but excluding all Excluded Property
described in Section 1(c)) (“Tangible Personal Property”); 

 (iv) all intangible personal property owned, licensed or possessed by Seller
and used in connection with the ownership, operation, leasing, occupancy or maintenance of the Property, to the extent the same are transferable or the Parties obtain any consent necessary to effectuate such a transfer, including, without
limitation, (A) the Authorizations (as defined below), (B) utility and development rights and privileges, business records, plans and specifications, blue prints, architectural plans, engineering diagrams, operating manuals, maintenance
records and similar items pertaining to the Hotel (to the extent in the possession or control of Seller), the Improvements and the Personal Property, (C) any unpaid award for taking by condemnation or any damage to the Land by reason of a
change of grade or location of or access to any street or highway, which was not effective prior to the Effective Date (unless otherwise expressly provided for herein), (D) any trademarks, service marks, copyrights, registrations of same,
applications for trademark and service mark registrations, business and trade names or logos, and patents and patent applications that are owned by Seller and used solely in connection with the ownership, occupancy, operation, and/or maintenance of
the Property, (E) subject to the provisions of Section 4(e), the guest ledger and all bookings and reservations for guest, conference and banquet rooms or other facilities at the Hotel for future stays as of the Closing, together with all
deposits held by Seller with respect thereto, (F) all warranties and guaranties held by Seller with respect to any Improvements or Personal Property, (G) all computer software used at the Hotel (subject to the terms of the applicable
license agreement), and (H) all goodwill relating exclusively to the Hotel (the “Intangible Personal Property”); 
 (v) all contracts, agreements, licenses, indentures, personal property leases and other legally binding arrangements that relate to the use, maintenance, operation, provisioning or equipping of the Hotel,
including, without limitation, the Hotel Management Agreement, to the extent it is assigned to Buyer and any reservation service agreement, other than the Equipment Leases (collectively, the “Service Contracts”), and all commitments and
orders for the purchase and sale of goods and equipment (including inventory and supplies) and services (including advertising, maintenance and other incidental services) relating to the use, maintenance, operation, provisioning or equipping of the
Hotel (collectively, the “Purchase Orders”, and together with the Service Contracts, collectively, the “Contracts”) and if such Contracts require consent of the vendor party in connection with the assignment of such Contracts to
Buyer, Seller shall use (and Seller shall cause the Hotel Manager to use) commercially reasonable good faith efforts at Seller’s expense to obtain such consent as of the Closing Date (provided that, upon the Closing, subject to the provisions
of Section 3(f) hereof, Buyer shall assume all Contracts, even if such consent has not been obtained); 

(vi) all equipment leases that relate to the use, maintenance, operation, provisioning or equipping of the Hotel
(collectively, the “Equipment Leases”), together with any security deposits related thereto and if such Equipment Leases require consent of the vendor party in connection with the assignment of such Equipment Leases to Buyer, Seller shall
use (and Seller shall cause the Hotel Manager to use) commercially reasonable good faith efforts at Seller’s expense to obtain such consent as of the Closing Date (provided that, upon the Closing, subject to the provisions of Section 3(f)
hereof, Buyer shall assume all Equipment Leases, even if such consent has not been obtained); and 

  
 2 

 (vii) all existing books, print materials, promotional materials, and
advertising copy used by Seller exclusively in connection with the operation of the Property, all existing customer and vendor lists and price lists relating exclusively to the operation of the Property (“Books and Records”). 

(c) Excluded Property. The Property shall not include any assets other than the Property specifically listed or described in
Section 1(b) hereof, and, without limiting the generality of the foregoing, shall expressly exclude the following (collectively, “Excluded Property”): 

(i) except for deposits expressly included in Section 1(b) above and subject to the provisions of Section 4(e)
hereof (including, without limitation, 4(e)(ix)), all cash on hand or on deposit in any house bank, operating account or other account maintained in connection with the ownership of the Hotel, including, without limitation, any capital, FF&E or
other reserves maintained by Seller or the Hotel Manager pursuant to the Hotel Management Agreement or otherwise; 
 (ii) accounts receivable (subject to Section 4(e)(viii) hereof); 
 (iii) claims against third parties (including, subject to the provisions of Section 38 hereof, claims for refunds on taxes or other governmental charges) in connection with the Property, but only to
the extent relating exclusively to damages suffered by Seller prior to the Closing Date, unless otherwise expressly provided hereunder; 
 (iv) any fixtures, personal property or equipment owned by (A) the lessors under any Equipment Leases, (B) the supplier or vendor under any other Contracts, (C) any employees, or
(D) any guests or customers of the Hotel; and 
 (v) all of the obligations and liabilities of Seller
relating to the Property of every kind and nature whatsoever, primary or secondary, direct or indirect, absolute or contingent, known or unknown, which obligations and liabilities accrue or arise up to the Cut-Off Time, except as otherwise expressly
set forth herein (collectively, the “Retained Liabilities”), all of which Retained Liabilities shall be retained by Seller from and after Closing Date. 
 (d) Assumed Liabilities. Subject to the representations, warranties and covenants of Seller expressly set forth herein, Buyer shall assume on and as of the Closing Date, and shall pay, perform and
discharge when due all of the obligations and liabilities relating to the Property and the operation of the Hotel of every kind and nature whatsoever, primary or secondary, direct or indirect, absolute or contingent, known or unknown, which
obligations or liabilities accrue and arise after the Cut-Off Time, excluding the Retained Liabilities (collectively, the “Assumed Liabilities”). 
 Except as otherwise expressly set forth herein (including Section 12 hereof), Buyer’s obligations under this Section 1(d) shall not be subject to offset or reduction by reason of any
actual or alleged breach of any representation, warranty or covenant contained in this Agreement or any agreement or document delivered in connection herewith or any right or alleged right to indemnification hereunder. 

  
 3 

 2. Purchase Price. Subject to adjustment as expressly herein provided, at the Closing, Buyer shall
pay, as the total purchase price for the Property (the “Purchase Price”), Forty Two Million Two Hundred Fifty Thousand and No/100 Dollars ($42,250,000.00)], payable as follows: 

(a) Deposit. Within two (2) Business Days following the date hereof, Buyer shall cause the amount of One Million and No/100
Dollars ($1,000,000.00) (the “Initial Deposit”) to be deposited with Terra Nova Title & Settlement Services, authorized agent for First American Title Insurance Company (the “Title Company” or “Escrow Agent”).
If Buyer does not elect to terminate this Agreement pursuant to Section 3(e), Buyer shall deposit an additional One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) (the “Additional Deposit”) with the Escrow Agent
within five (5) days following the expiration of the Inspection Period (as such term is defined in Section 3(e)). The Initial Deposit and the Additional Deposit are hereinafter collectively referred to as the “Deposit.” The
Deposit shall be held by the Escrow Agent pursuant to the provisions of Section 2(b) hereof. The Initial Deposit is fully refundable to Buyer in Buyer’s sole discretion for any reason if prior to the expiration of the Inspection Period,
Buyer delivers written notice to Seller that Buyer has elected to terminate this Agreement; however, in the event that Buyer does not deliver written notice to Seller prior to the expiration of the Inspection Period that Buyer has elected to
terminate this Agreement, the Initial Deposit and the Additional Deposit shall thereafter be non-refundable to Buyer except as otherwise expressly provided in this Agreement. Without limiting the foregoing, contemporaneously with the execution and
delivery of this Agreement, Buyer has paid or agrees to pay to Seller as further consideration for this Agreement, in cash, the sum of One Hundred Dollars ($100.00) (the “Independent Consideration”), in addition to the Deposit and the
Purchase Price. The Independent Consideration is independent of any other consideration provided hereunder, shall be fully earned by Seller upon the Effective Date of this Agreement, and is not refundable under any circumstances. 

(b) Interest; Escrow Provisions. 
 (i) The Deposit shall be held by Escrow Agent until the Closing, or earlier termination of this Agreement, or earlier joint direction of Seller and Buyer (the “Parties”). Escrow Agent shall pay
or apply the Deposit in accordance with this Section 2(b). Any interest earned on the Deposit shall become a part of the Deposit and Buyer shall receive a credit for such interest against the Purchase Price if it is paid to Seller at Closing,
and the Party receiving such interest or the credit for such interest, as the case may be, shall pay any income taxes thereon. At the Closing, the Deposit shall be paid by Escrow Agent to Seller, or otherwise at the direction of such Parties, as set
forth below. 
 (ii) Escrow Agent shall release or disburse the Deposit pursuant to the following provisions:
(1) to the notifying Party upon receipt of written demand therefor, stating that this Agreement has been terminated and as a result of such termination the notifying Party is entitled under this Agreement to such Deposit; provided,
however, that Escrow Agent shall not honor such demand until more than ten (10) days after the Escrow Agent has sent a copy of such demand to the other Party, nor thereafter if the Escrow Agent shall have received written notice of
objection from the other Party in accordance with the provisions of this Section 2(b)(ii); (2) upon receipt by Escrow Agent of a written demand for such Deposit by the notifying Party pursuant to this Section 2(b)(ii), Escrow
Agent shall promptly send a copy thereof to the other 

  
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Party. The other Party shall have the right to object to the delivery of such Deposit by delivering written notice of such objection to Escrow Agent at any time within seven (7) days of its
receipt of such notice from Escrow Agent, but not thereafter. Such notice shall set forth the basis for objecting to the delivery of such Deposit. Upon receipt of such notice, Escrow Agent shall promptly send a copy thereof to the Party who filed
the written demand; (3) in the event Escrow Agent shall have received the above-provided notice of objection within the time therein prescribed, the Escrow Agent shall continue to hold such Deposit until (x) the Escrow Agent receives
written notice signed by all Parties directing the disbursement of such Deposit, in which case Escrow Agent shall then disburse such Deposit in accordance with such direction, or (y) in the event of litigation between the Parties with respect
to this Agreement, Escrow Agent shall deposit such Deposit with the clerk of the court in which such litigation is pending, or (z) the Escrow Agent shall be entitled to take such affirmative steps as the Escrow Agent may, at the Escrow
Agent’s option, elect in order to terminate the Escrow Agent’s duties as Escrow Agent with respect to the Deposit, including, but not limited, to deposit such Deposit in court and an action in interpleader, the costs thereof to be borne by
whichever is the losing Party in such litigation; (4) in the event that Escrow Agent shall be uncertain as to the Escrow Agent’s duties or rights hereunder, or shall receive instructions from the Parties which, in the Escrow Agent’s
opinion, are in conflict with any of the provisions hereof, the Escrow Agent shall be entitled to hold and disburse such Deposit as set forth above and may decline to take any other action. 

(iii) The Parties acknowledge that Escrow Agent: (x) is acting solely as a stakeholder at their request and for their
convenience, (y) shall not be deemed to be the agent of any of the Parties hereto and (z) shall not be liable to any of the Parties hereto for any act or omission on its part unless taken or suffered in bad faith, or willful disregard of
this Agreement or involving gross negligence. The Parties shall jointly and severally indemnify and hold Escrow Agent harmless from and against all costs, claims and expenses, including reasonable attorneys’ fees and disbursements, incurred in
connection with the performance of the Escrow Agent’s duties hereunder, except with respect to actions or omissions taken or suffered by Escrow Agent in bad faith, or willful disregard of this Agreement or involving gross negligence on the part
of Escrow Agent. 
 (iv) Escrow Agent shall invest the Deposit in savings accounts, United States Treasury Bills,
certificates of deposit and/or other money market instruments in the manner jointly directed by the Parties, or if the Parties so direct, Escrow Agent shall not invest the Deposit. In the event such joint directions are not issued, Escrow Agent
shall invest such Deposit in United States Treasury Bills or in such other investment as is typically made by Escrow Agent for similar escrows. Escrow Agent shall not be liable for any losses suffered in connection with any such investment and shall
have no obligation to obtain the best, or otherwise seek to maximize, the rate of interest earned on any such investment. Any fees or charges in connection with such investment shall be paid out of the amounts held in escrow before any other
payments shall be required to be made from such accounts. 
 (v) Upon any delivery of the Deposit in accordance
with this Section 2(b), Escrow Agent shall be relieved of all liability, responsibility or obligation with respect to, or arising out of, such Deposit and the escrow relating thereto. Following the delivery of the Deposit after a
termination of this Agreement, Escrow Agent shall be relieved of all liability, responsibility or obligation under this Agreement. Escrow Agent shall not be bound by any modification to this Section 2(b) unless Escrow Agent shall have agreed to
such modification in writing. 

  
 5 

 (vi) Escrow Agent shall be entitled to rely or act upon any notice,
instrument or document believed by Escrow Agent to be genuine and to be executed and delivered by the proper person, and shall have no obligation to verify any statements contained in any notice, instrument or document or the accuracy or due
authorization of the execution of any notice, instrument or document. 
 (vii) Escrow Agent shall be entitled to
retain attorneys of its choice in connection with this escrow or any dispute which may arise hereunder. 
 (viii)
Escrow Agent has acknowledged agreement to the foregoing provisions of this Section by signing the place indicated on the signature page of this Agreement. 
 (c) Cash at Closing. The balance of the Purchase Price, subject to adjustment for prorations and apportionments as provided herein, shall be paid at Closing in immediately available U.S. funds by
wire transfer as more particularly set forth in Section 4 below. 
 (d) Allocation. On or before the Closing, Seller
and Buyer shall agree as to how the Purchase Price (and all other capitalizable costs) shall be allocated among the Property. Such allocation shall be used for all purposes (including financial accounting and tax purposes). Notwithstanding the
foregoing, Buyer and Seller agree that any allocation to FF&E will not exceed Seller’s book basis in such assets. 
 3. Title and
Inspection Period. 
 (a) Survey. Buyer acknowledges that it has received a copy of Seller’s most recent survey
dated August 31, 2006 and prepared by KCA Engineers (“Seller’s Survey”). 
 (i) Prior to the
Closing, Buyer may obtain, at its sole cost and expense, a commitment for an owner’s policy of title insurance, and/or one or more updates thereto (the “Title Commitment”), with respect to the Land, indicating the Title Company’s
commitment to issue to Buyer at Closing, upon the satisfaction of the conditions set forth therein, an ALTA Standard Owner’s Policy of Title Insurance in the amount of the Purchase Price, or in the amount allocable to the Land if the Parties
have agreed upon a Purchase Price allocation in accordance with Section 2(d) (the “Title Policy”), with such Title Commitment setting forth the status of title to the Land and showing liens, claims, encumbrances, easements,
rights-of-way, encroachments, reservations, covenants, conditions and restrictions and other matters of record affecting the Land, together with copies of all recorded documents referred to in the Title Commitment as exceptions to title to the Land
(the “Title Documents”). If obtained, Buyer shall provide Seller with a copy of the Title Commitment. 

(ii) Prior to the Closing, Buyer may obtain, at Buyer’s sole cost and expense, a current survey or an update to
Seller’s Survey and/or one or more updates thereto (the “Survey”). If obtained, Buyer shall provide Seller with a copy of the Survey. 

  
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 (b) Condition of Title. Title to the Land shall be delivered to Buyer, and Buyer
agrees to accept such title at the Closing, subject only to the following (the “Permitted Exceptions”): 
 (i) All matters shown on Seller’s Survey (the “Existing Survey Exceptions”); 
 (ii) Zoning and building regulations, insurance and rating codes and regulations, ordinances and requirements and any other laws, regulations or ordinances affecting the Property or its use adopted by any
authority having jurisdiction over the Property and the use thereof; 
 (iii) All presently existing and future
liens for unpaid taxes, impositions and assessments not due and payable as of the Closing, subject to adjustment as herein provided; 
 (iv) All exceptions to title approved or deemed approved by Buyer in accordance with Section 3(c); 
 (v) If Buyer does not obtain a Survey (and the Title Company determines that the Seller’s Survey alone or in connection with a “no change” affidavit is insufficient to permit the Title
Company to insure over any survey exception in the Title Commitment), such state of facts as would be disclosed by an accurate or current survey of the Property (it being acknowledged and agreed that this clause (v) shall not be deemed to
affect Buyer’s right to make Objections to matters shown on the Seller’s Survey or any Survey obtained by Buyer in accordance with the provisions of Section 3(c) hereof); 

(vi) Any lien or encumbrance arising out of the acts of Buyer; and 

(vii) The effect of any special taxing or assessment districts. 

(c) Title Objections. On or before June 23, 2011 (the “Objection Period”), Buyer shall notify Seller of any items
in the Title Commitment and/or Survey (other than those items identified in Sections 3(b)(i) through 3(b)(vii)) which are unsatisfactory to Buyer in Buyer’s sole and absolute discretion (the “Objections”). Except to the extent that
Buyer timely notifies Seller of any Objections in accordance with the foregoing, any exceptions to title that are shown in Schedule B of the Title Commitment or on the Survey (other than Mandatory Cure Liens) shall be deemed to have been approved by
Buyer and shall be Permitted Exceptions for all purposes of this Agreement. Buyer shall have the right to have one or more updates prepared of the Title Commitment and/or the Survey from time to time, at Buyer’s sole cost and expense. If, prior
to the Closing Date, additional title exceptions that were not previously reported in the Title Commitment or shown on the Survey are shown on an update of the Title Commitment or the Survey, Buyer will notify Seller, within five (5) Business
Days after Buyer shall have received such update to the Title Commitment and/or Survey, as the case may be, or by the Closing Date (whichever is sooner) (the “New Objection Period”), of any Objections that Buyer may have to such additional
title exceptions. To the extent Buyer fails to notify Seller within the New Objection Period of any Objections, all such matters (other than Mandatory Cure Liens) set forth in the applicable update of the Title Commitment or on the applicable update
of the Survey shall be deemed Permitted Exceptions. Seller may, but, except as otherwise expressly provided herein, shall not be obligated to, elect to cure any or all of such Objections, to Buyer’s and the

  
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Title Company’s reasonable satisfaction. Seller shall give notice to Buyer on or before the expiration of ten (10) Business Days following the date of Buyer’s timely delivery to
Seller of notice of any such Objection as aforesaid (and if such period extends past the Closing Date, the Closing Date shall be automatically extended to allow for such ten (10) Business Day period) stating whether Seller agrees to cure such
Objection prior to the Closing or such extension thereof, if applicable (the “Seller’s Response Period”). If Seller timely elects to cure such Objection, Seller shall, prior to the Closing Date (provided that Seller shall have the
right to extend the Closing Date by not more than thirty (30) days in the aggregate if reasonably necessary to accomplish the cure of any one or more Objections hereunder by providing written notice to Buyer thereof at least five
(5) Business Days prior to the then scheduled Closing Date), diligently prosecute such cure to completion. If Seller fails timely to give such notice as aforesaid, then Seller shall be conclusively deemed to have elected not to cure such
Objection. If Seller elects (or is deemed to have elected) not to cure any such Objection, then this Agreement shall terminate and Buyer shall be entitled to return of the Initial Deposit and any Additional Deposit, if any has been made by Buyer,
(together with any interest accrued thereon), unless Buyer waives such Objection, in writing, within five (5) Business Days after the date upon which Seller shall have elected (or shall be deemed to have elected) not to cure such Objection, as
aforesaid, in which event, the purchase and sale contemplated hereby shall close as scheduled with no adjustment to the Purchase Price and such waived Objections shall become Permitted Exceptions for all purposes under this Agreement.
Notwithstanding the foregoing, Seller shall, on or prior to the Closing Date (or such extension thereof, if applicable), pay, discharge or cause to be paid or discharged, and deliver the appropriate documents to the Title Company, to cause the Title
Company to remove of record, at Seller’s sole cost and expense, any monetary liens or encumbrances (i) that Seller has caused to be placed on the Property or arise out of the acts of Seller or (ii) that constitute any mortgage or deed
of trust liens, construction or mechanics’ liens, tax liens or other liens or charges in a fixed sum created or arising by, through or under Seller or capable of computation as a fixed sum that encumber the Land or Improvements (such actions
shall include obtaining a pay-off letter and leaving a portion of the Purchase Price in escrow to satisfy such monetary liens) ((i) and (ii) collectively, “Mandatory Cure Liens”). Notwithstanding the foregoing, if Seller elects not to
pay, discharge or cause to be paid or discharged any such mechanics’ liens, tax liens or other liens or charges as set forth above because there exists a good faith dispute as to the existence and/or amount of any such lien(s), the Seller may
cause the Title Company to insure over any such lien in a manner reasonably acceptable to Buyer and Title Company until such time as the dispute can be resolved and such action by Seller shall have the same force and effect as causing any such lien
to be paid or discharged and shall constitute full satisfaction of the obligations of Seller hereunder, provided that the same does not result in any additional cost or liability (whether fixed, contingent or otherwise) to Buyer or the Property.

 (d) Title Insurance. At Closing, Seller shall pay the standard premium required for the Title Company to issue the
CLTA standard portion of the Title Policy insuring that title to the Land is vested in Buyer subject to the Permitted Exceptions. Buyer shall be entitled to request that the Title Company provide, at Buyer’s sole cost and expense, endorsements
to the Title Policy as Buyer may reasonably require including extended coverage, provided that such endorsements shall be at no cost or additional liability to Seller, but shall be at Buyer’s sole cost and expense, and that Closing shall not be
delayed as a result of Buyer’s request. Notwithstanding the foregoing, Buyer may elect to obtain a title insurance policy in a form other than as set forth above in Section 3(a)(i) or from a title company other than the Title Company,
provided that the Closing shall not be delayed as a result of such election. 

  
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 (e) Inspection Period. 

(i) Inspection. At any time following the Effective Date through and including 11:59 p.m. on June 30, 2011
(such period, the “Inspection Period”), Buyer may notify Seller in writing that Buyer elects in its sole and absolute discretion, for any reason whatsoever, to terminate this Agreement. If Buyer does not notify Seller on or prior to the
expiration of the Inspection Period of its election to terminate this Agreement, then Buyer shall have no further right to terminate this Agreement under this subparagraph (e)(i). If Buyer terminates this Agreement on or prior to the end of the
Inspection Period as aforesaid, the Initial Deposit (together with any interest accrued thereon) shall be promptly refunded to Buyer, and neither Party shall have any further obligations hereunder except pursuant to the provisions which expressly
survive such termination. Buyer shall have reasonable access to true and correct copies of all Contracts, Equipment Leases, Authorizations, Books and Records and other files, documentation, agreements and other information in the possession or
control of Seller or Seller’s agents or affiliates related to the ownership, operation, management, use and occupancy of the Property and Buyer shall have the right to inspect and/or make copies of the same. In addition, throughout the
Inspection Period, Seller shall provide Buyer with reasonable access to employees and representatives of Seller and its agents and affiliates knowledgeable about the Hotel and Property. Buyer and Buyer’s agents and contractors shall have the
right, at its own risk, cost and expense, to enter upon the Property for the purpose of making surveys or other tests, inspections, investigations and/or studies (which may include, without limitation, invasive testing and/or borings) of all or any
part of the Property at reasonable times and upon reasonable prior notice to Seller throughout the Inspection Period, and unless this Agreement is otherwise terminated, from and after the expiration of the Inspection Period and until the Closing. In
connection with the foregoing, Seller shall be entitled to accompany Buyer and its agents on any such permitted interviews and testing. Buyer’s right of inspection of the Property shall be subject to any Hotel guests or licensees or other users
or occupants of the Hotel. Prior to any such inspection, Buyer shall deliver to Seller certificates reasonably satisfactory to Seller evidencing that Buyer’s consultants and agents carry and maintain such general liability insurance policies
with such companies and in such scope and amounts as are acceptable to Seller in its reasonable discretion. Buyer hereby indemnifies and agrees to defend and hold Seller harmless from and against all loss, cost (including, without limitation,
reasonable attorneys’ fees), claim or damage arising out of, resulting from, relating to or in connection with or from any such inspection by Buyer or its agents, except to the extent such claim or damage was caused by Seller or Seller’s
agents; provided, however, in no event shall Buyer be liable for consequential or punitive damages under this Section 3(e)(i). The provisions of this Section 3(e)(i) shall survive the termination of this Agreement or the Closing.

 (ii) Disclosure Schedules. The parties acknowledge that this Agreement is being executed and delivered
by the parties hereto without the disclosure schedules called for in this Agreement (the “Disclosure Schedules”). Seller shall use commercially reasonable efforts to deliver the Disclosure Schedules on or before June 20, 2011. Upon
the expiration of the Inspection Period, if Buyer does not elect to terminate this Agreement, Buyer will accept the Disclosure Schedules by executing and delivering to Seller a written acknowledgement of such acceptance. 

  
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 (f) Equipment Leases. To Seller’s knowledge, all Equipment Leases and Contracts
have been or will be disclosed to Buyer pursuant to the applicable Schedules referenced in Section 6 hereof. Buyer agrees to assume all such scheduled Equipment Leases and Contracts that remain in full force and effect and free from any
default(s) up to the Closing Date; provided however, that if Seller obtains knowledge that a default has occurred in connection with any such scheduled Equipment Lease and /or Contract at any time prior to the Closing Date or if Seller becomes aware
of any additional Equipment Leases and/or Contracts that have not been previously scheduled, then Seller shall immediately notify Buyer as to either or both of such events and Buyer shall, within five (5) days of such disclosure, advise Seller
if Buyer elects not to assume any such defaulted or additional Equipment Lease or Contract disclosed by Seller as set forth above (each, an “Excluded Contract”). As to any such Excluded Contract, Seller shall terminate such Excluded
Contract on or prior to the Closing, the same shall constitute a Retained Liability and Excluded Matter hereunder, and, in the case of any Excluded Contract which is an Equipment Lease, the equipment subject to such Equipment Lease shall constitute
an Excluded Matter and shall be removed from the Hotel on or before the Closing Date. 
 4. Closing. 

(a) Closing Date. The closing (the “Closing”) of the purchase and sale of the Property shall be held at the offices of
Escrow Agent, located in Washington, DC, at 10:00 a.m., local time, on July 8, 2011 (the “Scheduled Closing Date”), or at such other time and on such other date as the parties hereto mutually agree. The date on which the Closing shall
occur is hereinafter referred to as the “Closing Date.” Seller and Buyer shall cooperate to effect the Closing through an escrow with the Escrow Agent. 
 (b) Buyer’s Deliveries. At the Closing, subject to and on the terms and conditions set forth in this Agreement, Buyer shall deliver to Seller by wire transfer, to a bank account designated in
writing by Seller, immediately available funds in an amount equal to the balance of the Purchase Price, together with a duly executed (and acknowledged, if required) counterpart of each of the following documents and other items set forth in this
Section 4(b): (i) a counterpart of each of the instruments described in Section 4(c)(iii), (xv), (xvi), and (xix) hereof, (ii) such other documents or instruments as may be reasonably requested by Seller or Title Company to
effectuate the transactions contemplated by this Agreement, (iii) certified copies of resolutions duly adopted by Buyer’s board of managers authorizing the execution, delivery and performance of this Agreement and the other agreements
contemplated hereby, and (iv) a duly executed original certificate of Buyer, certifying to Seller that, except as set forth therein, all of Buyer’s representations and warranties set forth herein are true and correct in all material
respects as of the Closing as if made on the Closing Date. 
 (c) Seller’s Deliveries. At the Closing, subject to
and on the terms and conditions set forth in this Agreement, Seller shall deliver or cause to be delivered to Buyer, a duly executed (and acknowledged, if required) counterpart of each of the following documents and other items set forth in this
Section 4(c): (i) a grant deed (“Deed”) in the form attached hereto as Exhibit E, conveying fee simple title to the Land, together with the Hotel and Improvements, in form

  
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sufficient for recording in the applicable real property records, (ii) a bill of sale and assignment and assumption of documents in the form attached hereto as Exhibit C, dated as of
the Closing Date, conveying to Buyer the Personal Property and Books and Records, (iii) an assignment and assumption in the form attached hereto as Exhibit D assigning the Authorizations, Contracts, and Equipment Leases to be assigned to
Buyer at the Closing hereunder, subject to the provisions of Section 3(f) hereof, (iv) Seller’s title affidavit (including a customary gap indemnity), and such other instruments in form and substance reasonably acceptable to Title
Company, as may be necessary in order to cause the Title Company to issue the Title Policy insuring Buyer’s title to the Property subject only to Permitted Exceptions, (v) a certificate to the effect that Seller is not a foreign person in
the form attached hereto as Exhibit F, and any corresponding state and local form required, including but not limited to, a California 593-C Withholding Certificate, (vi) such other documents or instruments as may be reasonably requested
by Buyer or the Title Company to effectuate the transactions contemplated by this Agreement, (vii) to the extent within the possession or reasonable control of Seller, (a) originals of the Contracts, Equipment Leases and the books and
records relating to the Property and the Hotel (including, without limitation, the Books and Records), (b) combinations to safes, keys, codes and passcards relating to the operation of the Hotel and forming part of the Personal Property,
(c) a set of guest registration cards, (d) a list of advance room reservations and functions, (e) a list of Seller’s outstanding accounts receivable as of midnight on the date prior to the Closing, (f) the guest lists for
the Hotel, (g) all phone numbers used in the operation of the Hotel, (h) all directories and all master keys to all locks located at the Hotel, and (i) a certificate or registration of title for any owned motor vehicle or other
Personal Property which requires such certification or registration, conveying such vehicle or such other Personal Property to Buyer, if any (delivery of the foregoing items at the Hotel on the Closing Date shall constitute compliance with this
Section 4(c)(vii)), (viii) copies of resolutions duly adopted pursuant to Seller’s operating agreement authorizing the execution, delivery and performance of this Agreement and the other agreements contemplated hereby,
(ix) Seller’s articles of organization and certificate of good standing from the Secretary of State of Delaware, (x) Seller’s certificate of authority from the Secretary of State of California, (xi) such other evidence as
Buyer or Title Company may reasonably require of Seller’s authorization to sell the Property; (xii) the originals, or, if unavailable, copies of all and material governmental approvals relating to the Property, if any, including, without
limitation, the current certificates of occupancy for the Hotel and the Authorizations, (xiii) notices, if required, to the counter-parties to the Contracts, and Equipment Leases to be assigned to Buyer hereunder, in accordance with such
Contracts and Equipment Leases, respectively, advising of the Closing, transfer of security, if applicable, and directing all future communications and payments, as the case may be, be sent to Buyer, (xiv) duly executed and acknowledged resale
certificates or other exemption certificates which are applicable to sales taxes, if any, on the transfer of Personal Property, (xv) a Closing Statement (hereinafter defined) reflecting the Purchase Price, and the adjustments and prorations
required hereunder and the allocation of income and expenses required hereby; (xvi) a real estate transfer tax statement required to evidence the payment of any tax imposed by any state, county or municipality together with any change of
ownership statements required of sellers of real property under applicable law; (xvii) a duly executed original certificate of Seller, certifying to Buyer that, except as set forth therein, all of Seller’s representations and warranties
set forth herein are true and correct in all material respects as of the Closing as if made on the Closing Date; (xviii) the Manager Estoppel; and (xix) and an Assignment and Assumption of Management Agreement which shall be mutually

  
 11 

 
acceptable to Buyer, Seller and Hotel Manager. In connection with clause (xviii) of this Section 4(c), Buyer and Seller will agree upon a mutually acceptable form of Manager Estoppel on
or before the expiration of the Inspection Period (which shall, in any event, include Manager’s consent to the assignment of Seller’s interest in and to the Hotel Management Agreement to Buyer, or Buyer’s designee, at Closing (without
a termination or other transfer fee in respect thereto) and waiver of any right of first offer, first refusal or other applicable option to purchase the Property or similar right in connection with the consummation of the transactions contemplated
by this Agreement. 
 (d) Closing Costs. 

(i) General Costs. Except as is expressly provided in this Agreement, each party hereto shall
pay its own legal fees and expenses. Except as otherwise expressly herein provided, Seller shall pay such other closing costs as are customarily assumed by the Seller in the jurisdiction in which the Property is located. Except as otherwise
expressly herein provided, Buyer shall pay such other closing costs that are customarily assumed by the Buyer in the jurisdiction in which the Property is located. Seller and Buyer shall cooperate in timely making all filings, returns, reports and
forms as may be required to comply with the provisions of tax laws. Buyer and Seller shall also cooperate in providing each other with appropriate resale exemption certifications and other similar tax and fee documentation. Seller shall pay for the
costs associated with the satisfactions of any mortgages and other financing obtained by Seller encumbering the Property, with termination of any outstanding Uniform Commercial Code financing statements in connection with such mortgages or other
financing, and for any costs associated with any other lien satisfactions or other corrective instruments. Seller shall pay one half ( 1/2) of any closing costs of the Escrow Agent. Buyer shall pay the incremental premium charged by the Title Company for the ALTA extended coverage portion of the
Title Policy and the cost of all endorsements to the Title Policy and Seller shall pay the standard premium charged by the Title Company for the CLTA standard coverage portion of the Title Policy. Buyer shall pay the cost of obtaining a new survey
or updating the Survey and all costs related to or associated with financing of the purchase of the Property, if applicable. Buyer shall pay one half
( 1/2) of any closing costs of the Escrow Agent.
Seller shall pay all sales and use taxes, if any, due and payable in connection with the transfer of the Personal Property. Buyer shall pay recording charges in connection with the recordation of the Deed. 

(ii) Transfer Taxes. Seller shall pay any and all documentary stamp taxes and any state, county and city transfer
taxes and transfer fees on the sale of the Property. Buyer shall pay any mortgage recording tax, if any, in connection with the loan financing, if any, on its purchase of the Property at Closing. 

(e) Prorations and Items to be Prorated. The following provisions shall govern the adjustments and prorations that shall be made
at Closing and the allocation of income and expenses from the Property between Seller and Buyer. Except as expressly provided in this Section 4(e), all items of operating revenue and operating expense of the Property, with respect to the period
prior to 12:00:01 a.m. (the “Cut-Off Time”) local time at the Hotel on the Closing Date, shall be for the account of and paid by Seller and all items of operating revenue and operating expense of the Property with respect to the period
after the Cut-Off Time, shall be for the account of and paid by Buyer. The net amount of all adjustments and prorations made in accordance with this Section 4(e) shall be added to (if such net amount is in Seller’s favor) or deducted from
(if such net amount is in Buyer’s favor) the Purchase Price payable at Closing. 

  
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 (i) Taxes. 

(1) All unpaid real estate taxes, personal property taxes and other assessments on the Property shall be prorated at
Closing. Seller shall be responsible for all real property taxes and personal property taxes and other assessments for the tax periods prior to the Closing Date, and Buyer shall be responsible for all real property taxes and personal property taxes
and other assessments for the tax periods from and after the Closing Date; however if any special improvement assessments on the Property are payable in installments, then the installments (including the current installment) shall be prorated as of
the Cut-Off Time (with Buyer assuming the obligation to pay any installments payable after the Closing). If the real property tax rate, personal property tax rate or any assessment has not been set for the tax year in which the Closing occurs, then
the proration of such real property tax, personal property tax or assessment shall be based on the tax bill for the preceding tax year for such tax or assessment which has not been set for the tax year in which the Closing occurs, and such proration
shall be adjusted between Seller and Buyer upon presentation of written evidence that the actual taxes or assessment paid (determined as of the date such taxes or assessment are actually paid) for the tax year in which the Closing occurs differ from
the amounts used at Closing and in accordance with Section 4(e)(xii). Seller shall consult with Buyer regarding any assessment for real property taxes for the tax year in which the Closing occurs. The amount of any tax refunds (net of
attorneys’ fees and other costs reasonably incurred by Seller in seeking such a reduction) with respect to any portion of the Property for all tax years prior to the tax year in which the Cut-Off Time occurs shall be allocated entirely to
Seller and Buyer agrees to reasonably cooperate with Seller in obtaining such refund and/or immediately delivering to Seller any such refund that Buyer may receive, on Seller’s behalf, at any time subsequent to the Closing. The amount of any
tax refunds (net of attorneys’ fees and other costs reasonably incurred by any Person in seeking such a reduction) with respect to any portion of the Property for the tax year in which the Cut-Off Time occurs shall be apportioned between Seller
and Buyer in the same manner as unpaid real estate taxes, personal property taxes and other assessments on the Property. 
 (2) The parties acknowledge that certain taxes accrue and are payable to the various local governments by any business entity operating a hotel and its related facilities. Included in those taxes may be
business and occupation taxes, retail sales and use taxes, gross receipts taxes, and other special lodging or hotel taxes. For purposes of this Agreement, all of such taxes (expressly excluding taxes and assessments covered by
Section 4(e)(i)(1) above, corporate franchise taxes, and federal, state, and local income taxes) (hereinafter referred to as “Operational Taxes”) shall be allocated between Seller and Buyer such that those attributable to the period
prior to the Cut-Off Time shall be allocable to Seller and those attributable to the period from and after the Cut-Off Time shall be allocable to Buyer (with the attribution of such taxes hereunder to be done in a manner consistent with the
attribution under this Agreement of the applicable revenues on which such taxes may be based). Seller shall be solely responsible for payment of the Operational Taxes with respect to the period prior to the Cut-Off Time, and Buyer shall be solely
responsible for payment of such Operational Taxes with respect to the period after the Cut-Off Time. 

  
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 (ii) Hotel Reservations and Revenues. 

(1) Reservations. On the Closing Date, Seller shall provide Buyer with its schedule of confirmed reservations for
dates subsequent to the Closing Date, which schedule shall list the party for whose benefit the reservation was made, the amount of deposit thereunder, the amount of any room rental deposits, and the amount of any other deposits made for advance
reservations, banquets or future services to be provided after the Closing Date. Buyer will honor (or cause Hotel Manager to honor), for its account, all pre-Closing Date reservations as so confirmed by Seller for dates subsequent to the Closing
Date at the rate or price previously agreed to by Seller (so long as such rates conform to customary rates charged by Seller). Buyer shall receive a credit against the Purchase Price at Closing in the amount of all prepayments or deposits disclosed
in such schedule. 
 (2) Guest Revenues. Seller shall receive a credit for, and Buyer shall purchase from
Seller, the guest ledger. Such credit shall equal the amount of the accounts receivable (or 50% thereof in the case of the final night’s room revenue, including any sales taxes, room taxes and other taxes charged to guests in such rooms, all
parking charges, sales from mini-bars, in-room food and beverage, telephone, facsimile and data communications, in-room movie, laundry, and other service charges allocated to such rooms with respect to the night), less credit card charges, travel
company charges and similar commissions. Revenues from guest rooms in the Hotel occupied on the night containing the Cut-Off Time, including any sales taxes, room taxes and other taxes charged to guests in such rooms, all parking charges, sales from
mini bars, in room food and beverage, telephone, facsimile and data communications, in room movie, laundry, and other service charges allocated to such rooms with respect to the night containing the Cut-Off Time shall be divided equally between
Seller and Buyer; provided, however, that to the extent the times at which food and beverage sales, telephone, facsimile or data communication, in room movie, laundry, and other services are ordered by guests can be determined, the same shall be
allocated between Seller and Buyer based on when orders for the same were received, with orders originating prior to Cut-Off Time being allocable to Seller, and orders originating from and after the Cut-Off Time being allocable to Buyer. All other
revenues from restaurants, lounges, vending machines, laundry machines, pay telephones and other coin-operated equipment and other service operations conducted at the Property shall be allocated based on whether the same accrued before or from and
after the Cut-Off Time as described in the preceding sentence, and Seller shall separately record sales occurring before and from and after the Cut-Off Time. 
 (iii) Banquet and Meeting Room Revenues. Revenues from conferences, receptions, meetings, and other functions occurring in any conference, banquet or meeting rooms in the Hotel, including usage
charges and related taxes, food and beverage sales, valet parking charges, equipment rentals, and telecommunications charges, shall be allocated between Seller and Buyer, based on when the function therein commenced, with (i) one-day functions
commencing prior to the Cut-Off Time being allocable to Seller; (ii) one day functions commencing from and after the Cut-Off Time being allocable to Buyer; and (iii) multi day functions that include periods both before and after the
Cut-Off Time being prorated between Seller and Buyer according to the period of time before and from and after the Cut-Off Time. 

  
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 (iv) Unredeemed Gift Certificates and Vouchers. Buyer shall receive a
credit against the Purchase Price at Closing in the amount of the face value of all paid for vouchers, gift certificates and other promotional materials (together, the “Vouchers”) which may be used as full or partial payment for any Hotel
service including, room rentals, food and beverage service, or any other item either borne directly by the owner of the Hotel or which is reimbursable by the owner of the Hotel (i.e., if a gift certificate can be used to pay for items in the Hotel
gift shop). The parties also agree that no credit shall be given for any complimentary Vouchers. Seller shall request that Hotel Manager deliver to Buyer five (5) Business Days prior to the Closing Date a list of all such Vouchers. 

(v) Utilities and Insurance. Buyer shall be responsible for all dealings with utility service providers with
respect to any actions to change over accounts to Buyer as of the Closing Date. All charges for utilities shall be prorated as of the Cut-Off Time. In the event the actual amounts for such charges for utilities or telephone calls are not known as of
the Closing Date or cannot be billed separately to the responsible party, such charges shall be prorated between the Parties as of the Cut-Off Time once the actual amounts thereof become known. Seller shall receive a credit for all deposits
transferred to Buyer or which remain on deposit for the benefit of Buyer with respect to such utility contracts, otherwise such deposits shall be refunded to Seller. If necessary, at the request of Buyer, Seller shall complete the customary forms
required by any telephone company or telephone company service provider to assign the Property’s existing telephone numbers to Buyer. Any fees payable by the owner of the Hotel in respect of the insurance policies maintained by Hotel Manager
for the Property shall be prorated as of the Cut-Off Time. The parties shall request that Hotel Manager add Buyer as an additional named insured on any such insurance policies as of the Closing Date. 

(vi) Authorizations. Permit and license fees of assignable Authorizations, if any, shall be prorated as of the
Cut-Off Time. Seller shall receive a credit for all deposits made by Seller under the Authorizations which are transferred to Buyer or which remain on deposit for the benefit of Buyer. 

(vii) Service Agreements; Employment Matters. Fees and other amounts, including accrued employee expenses, payable
and/or accrued under the Hotel Management Agreement and payments due under the other Contracts and Equipment Leases in the name of Seller shall be prorated as of the Cut-Off Time. Seller shall be required to pay or cause to be paid (or reimbursed to
Hotel Manager) or credit to Buyer at the Closing any accrued or earned wages, vacation pay, sick pay, bonuses, pension, profit-sharing and welfare benefits and other compensation and fringe benefits, as applicable, of all persons employed at the
Property on or before the Closing Date, including any employment taxes or other fees or assessments attributable thereto. The parties further agree that with respect to sick pay and vacation pay, at the end of the calendar year in which the Closing
occurs, Buyer shall reimburse Seller for all unused sick pay and/or vacation pay credited to Buyer at Closing which did not carry over to the following calendar year. 

(viii) Accounts Receivable. Accounts receivable shall be identified as of the Cut-Off Time. Seller shall receive a
credit for, and Buyer shall purchase from Seller, all accounts receivable (other than the guest ledger, which shall be purchased in accordance with Section 4(e)(ii)(2)) that are less than ninety (90) days past due. Such credit shall equal
the 

  
 15 

 
amount of the accounts receivable, less credit card charges, travel company charges and similar commissions. To the extent Buyer receives, after Closing, payment on account of such account
receivables from the account debtors that owed accounts receivable as described in this paragraph, and to the extent that such payment exceeds (in the aggregate) the credit received by Seller and apportioned to the accounts receivable of such
account debtors, then Buyer shall immediately remit such amount (net of travel agent commissions or credit card company charges for payment of such claims) to Seller and, without limiting the foregoing, the same shall be included as part of the
post-Closing reconciliation of apportionments. Subject to the following sentence, all accounts receivable and credit card claims for goods and services furnished prior to the Cut-Off Time that are not so purchased by Buyer shall remain the property
of Seller and, to the extent Buyer receives any payments on account thereof after Closing (A) if the applicable account debtor who makes such payment then owes payment on one of Seller’s accounts receivable and no accounts receivable of
Buyer, then Buyer shall immediately remit such amount (net of travel agent commissions or credit card company charges for payment of such claims) to Seller, and (B) if the applicable account debtor who makes such payment then owes payment on
accounts receivable owing to Buyer and to Seller, such payments (net of travel agent commissions or credit card company charges for payment of such claims) shall be applied to pay accounts receivable in order of priority from the least-aged to the
most-aged, unless such payment specifically identifies the particular accounts receivable for which it is being paid and then such specific identification shall govern. The foregoing shall apply to past due or accruing room rents and other customary
Hotel charges including the guest and city ledgers. 
 (ix) Bank Accounts, Inventory and Seller’s
Deposits. Buyer and Seller shall mutually agree upon the aggregate amount of cash in the house bank accounts, house banks and cash on hand as of the Closing Date (the “Aggregate Cash Amount”). At the Closing, Seller shall be credited
with the Aggregate Cash Amount, including without limitation any account held by Hotel Manager under the Hotel Management Agreement, to the Cut-Off Time. All transferable deposits of Seller made for maintenance or service contracts, licenses, or
otherwise, shall be credited to Seller at Closing. In this regard, the Parties shall arrange to have all such accounts and deposits transferred to Buyer at Closing. Seller shall receive a credit for all Consumable Inventory in unopened cases as of
the Closing Date in an amount equal to Seller’s actual cost (including sales and/or use tax) for such items. For this purpose, an individual container shall not be considered opened if the container itself is not opened but the crate, box or
pallet including such container and other similar containers shall have been opened. Upon receipt of actual invoices, reprorations shall occur if any adjustment is needed. In connection with the transfer of the Hotel liquor license at Closing, as
set forth in Section 10(c) hereof, a liquor license escrow shall be established at Closing by Buyer and Seller, in accordance with applicable law. 
 (x) Prepaids. Seller shall receive a credit for prepaid expenses as of the Cut-Off Time, including prepaid expenses under contracts, advertising expenses, trade association dues and trade
subscriptions, and fees for Authorizations. Prepaid advertising expenses shall only include advertising which has not been published, mailed or aired as of the Cut-Off Time. 

(xi) Payables. Seller shall use commercially reasonable efforts to pay off all trade accounts payable as of the
Cut-Off Time. To the extent unpaid, Buyer shall receive a credit for all accounts payable and accrued liabilities owing for goods and services furnished prior to 

  
 16 

 
the Cut-Off Time. Buyer shall pay all accounts payable relating to goods and services for which orders have been placed but, as of the Cut-off Time, such goods and services have not yet been
delivered or provided and Buyer shall receive no credit therefor. All fees, reimbursements and other amounts payable to the Hotel Manager under the Hotel Management Agreement shall be apportioned between Seller and Buyer as of the Cut-off Time.
Seller shall receive a credit for all advance payment or deposits made with respect to Consumable Inventories and furniture, fixtures and equipment ordered, but not delivered to the Hotel prior to the Closing Date, and Buyer shall pay the amounts
which become due and payable for such Consumable Inventory and furniture, fixtures and equipment which were ordered prior to Closing. 
 (xii) Calculation. Not later than five (5) Business Days prior to the then-scheduled Closing Date, the parties shall attempt to agree upon a form of settlement statement (“Closing
Statement”) to be utilized in performing the prorations and adjustments to the Purchase Price herein set forth. Seller shall prepare, or cause to be prepared, and deliver to Buyer a draft Closing Statement setting forth amounts to be prorated
between Seller and Buyer at the Closing pursuant to this Agreement, together with reasonable documentation supporting the information set forth in such Closing Statement not less than one (1) Business Day prior to Closing. The draft Closing
Statement shall contain Seller’s good faith estimate of the amounts (based on facts and circumstances then known to Seller), as of the anticipated applicable Cut-Off Time, of the items to be prorated between Seller and Buyer, or to be credited
to either Party, pursuant to this Agreement. Buyer shall review the draft Closing Statement and shall furnish to Seller any comments which Buyer may have with respect thereto, or any objection it may have to the amounts shown thereon, together with
its reasons for such objection. Thereafter, Seller and Buyer (each acting reasonably and in good faith) shall attempt to resolve, prior to the Closing Date, any disagreement with respect to such draft Closing Statement. Seller and Buyer shall cause
the information set forth in the draft Closing Statement to be updated with actual information available as of the applicable Cut-Off Time. In accordance with the provisions hereof, on the Closing Date, the Parties shall execute and deliver the
Closing Statement for purposes of the Closing, which statement shall include the matters on which Seller and Buyer have agreed as aforesaid, as updated with actual information as of the applicable Cut-Off Time. With respect to any matter on which
Seller and Buyer still disagree as of such time, Seller’s good faith determination of the amount in question as of the applicable Cut-Off Time will be used for purposes of such Closing, subject to reconciliation as hereinafter provided. If any
of the prorations or credits cannot be calculated based on actual figures, then they shall be calculated based on Seller’s good faith estimates thereof. Within one hundred and twenty (120) days following the Closing Date, Buyer shall
prepare and submit to Seller a recalculation of the prorations and credits, reflecting actual figures and not estimates. Such recalculation shall be binding on Buyer and Seller unless, Seller delivers to Buyer, within fifteen (15) days after
Seller has received such recalculation (it being agreed that Buyer and Seller shall during such fifteen (15) day period attempt to mutually resolve any discrepancy in the recalculation raised by Seller between themselves), a notice (“Audit
Notice”) stating Seller does not agree with such calculations, and, if such notice is given, a nationally recognized accounting firm selected by Seller and reasonably approved by Buyer shall be engaged to make the final determination of such
prorations and credits (the accounting firm engaged to make such determination herein called the “Accounting Firm”). Within ten (10) days after the delivery of an Audit Notice, Seller shall provide notice to Buyer of the accounting
firm selected by Seller; if Buyer reasonably objects to the accounting firm so selected by Seller, Buyer shall give notice of disapproval within 

  
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ten (10) days after the delivery of the notice from Seller of Seller’s selection (and if Buyer fails to give a notice of such disapproval within such ten (10) day period, Buyer
will be deemed to have approved Seller’s selection). If Buyer reasonably objects to the firm so selected by Seller within such ten (10) day period, Seller shall nominate another accounting firm, which shall be subject to Buyer’s
reasonable approval using the same procedure as provided in the preceding sentence. The fees and costs of the Accounting Firm in making such determination shall be borne as follows: if the net amount of the prorations and credits determined by the
Accounting Firm is within 2% of the net amount as determined by Buyer, Seller shall bear the entire fees and costs of the Accounting Firm in making such determination; and if the net amount of the prorations and credits determined by the Accounting
Firm is greater than 2% of the net amount as determined by Buyer, Buyer shall bear the entire fees and costs of the Accounting Firm in making such determination. Each of Seller and Buyer shall cooperate in good faith and act reasonably after Closing
to assist Hotel Manager and Accounting Firm in their determinations. 
 (xiii) Surviving Obligations. The
provisions of this Section 4(e) shall survive the Closing for a period of nine (9) months. 
 (f) California Real
Estate Withholding. Seller and Buyer appoint Escrow Agent as the withholding agent for purposes of compliance with California Revenue and Taxation Code Section 18662. Prior to the Closing, Seller will provide Escrow Agent with all
information and documentation reasonably required to determine the amount, if any, to be withheld from the proceeds of the sale transaction contemplated herein for payment to the California Franchise Tax Board pursuant to said Revenue and Taxation
Code Section, including California Form 593-W or California Form 593-C, whichever is applicable to Seller as of the Closing. 
 5. Conditions
to Closing. 
 (a) Buyer’s Obligation. The obligation of Buyer to purchase and pay for the Property and assume
the Assumed Liabilities is subject to the satisfaction (or waiver by Buyer) as of the Closing Date of the following conditions: 
 (i)(x) The representations and warranties of Seller made in this Agreement shall be true and correct in all material respects as of the date hereof and on and as of the Closing Date, as though made on and
as of the Closing Date, except to the extent of changes in facts resulting from actions taken by Seller expressly permitted hereunder and except for representations and warranties that speak as of a specific date or time (which need only be true and
correct as of such date or time), and (y) Seller shall have performed or complied with all obligations and covenants required by this Agreement to be performed or complied with by Seller. Notwithstanding the foregoing, the conditions set forth
in this paragraph 5(a)(i) shall be deemed satisfied in the event that the costs or losses to Buyer which would result or reasonably and in good faith would be expected to result (the “Costs or Losses”) from such failure or failures, in the
aggregate, of Seller to satisfy such conditions (x) are of a nature that can be reasonably quantified by the Parties on an objective basis and (y) do not to exceed $250,000 (“Immaterial Noncompliance”); provided, however, in such
event, without limiting any of Buyer’s right or remedies set forth herein in respect of such Immaterial Noncompliance, at the Closing, Buyer shall receive a credit against the Purchase Price in an amount equal to the Costs or Losses.

  
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 (ii) No injunction or order of any court or administrative agency of
competent jurisdiction shall be in effect as of the Closing which restrains or prohibits the consummation of the transactions contemplated by this Agreement or the exercise by Buyer of control over the Property. 

(iii) Seller shall have delivered to Buyer, or to the Title Company to be held in escrow, all of the items set forth in
Section 4(c) or otherwise expressly required herein to be delivered to Buyer. 
 (iv) Title Company shall be
irrevocably and unconditionally (subject to payment of the premium therefor) committed to issue at Closing a Title Policy, insuring Buyer’s title to the Property subject only to the Permitted Exceptions. 

(v) Buyer shall have received an estoppel from the Hotel Manager under the Hotel Management Agreement, substantially in
the form mutually agreed upon by Buyer and Seller prior to the expiration of the Inspection Period (the “Manager Estoppel”), with such immaterial changes thereto as may be reasonably acceptable to Buyer. 

(b) Seller’s Obligation. The obligation of Seller to sell and deliver the Property or cause the Property to be sold and
delivered to Buyer is subject to the satisfaction (or waiver by Seller) as of the Closing of the following conditions: 
 (i) The representations and warranties of Buyer made in this Agreement shall be true and correct in all material respects as of the date hereof and on and as of the Closing Date, as though made on and as
of the Closing Date, except to the extent of changes in facts as a result of actions taken by Buyer expressly permitted hereunder and except for representations and warranties that speak as of a specific date or time (which need only be true and
correct as of such date or time), and Buyer shall have performed or complied in all material respects with the obligations and covenants required by this Agreement to be performed or complied with by Buyer. 

(ii) No injunction or order of any court or administrative agency of competent jurisdiction shall be in effect as of the
Closing which restrains or prohibits the consummation of the transactions contemplated by this Agreement. 

(iii) Buyer shall have delivered to Seller, or to the Title Company to be held in escrow, all of the items set forth in
Section 4(b). 
 6. Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer, as of the date hereof,
and as of the Closing Date, as follows; provided, however, to the extent that Buyer had knowledge prior to Closing that any of the following representations and warranties were not true and Buyer proceeded to Closing, Buyer shall have waived any
claim against Seller based upon such breach of representation or warranty: 
 (a) Authority; No Conflicts. 

  
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 (i) Seller is a limited liability company duly organized, validly existing
and in good standing under the laws of the State of Delaware. Seller has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. All limited liability company acts and other proceedings
required to be taken by Seller to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and properly taken. This Agreement has been duly executed and delivered
by Seller. This Agreement constitutes, and all other documents required by this Agreement to be executed by Seller shall constitute when so executed, the valid and binding obligation of Seller, enforceable against Seller in accordance with its
respective terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of contracting parties generally. 

(ii) The execution and delivery by Seller of this Agreement, and the consummation by Seller of the transactions
contemplated hereby and compliance by Seller with the terms hereof, will not conflict with, or result in any violation of or default under, or give rise to a right of termination, cancellation or acceleration of any obligation or to loss of a
benefit under, or result in the creation of any lien, claim, encumbrance, security interest, option, charge or restriction of any kind upon any of the Property under, or require any consent, authorization or approval under (A) any provision of
the articles of organization or operating agreement of Seller, or (B) any material judgment, order or decree or any material statute, law, ordinance, rule or regulation applicable to the Property. 

(b) Title to Property. Seller has good and marketable title to the Property, except with respect to those items sold or otherwise
disposed of since the date hereof in the ordinary course of business consistent with past practices and in accordance with the express provisions of this Agreement, and the Property shall be transferred to Buyer free and clear of all mortgages,
liens, security interests or encumbrances of any nature whatsoever, except for Permitted Exceptions and except as otherwise expressly provided in this Agreement. 
 (c) Compliance with Applicable Laws. Seller has not received any written communication from a Governmental Authority that alleges that the Property or the Hotel or the operation thereof is not in
compliance, in all material respects, with all material federal, state or local laws, rules and regulations except for any noncompliance which has been remedied, and to Seller’s knowledge, the Property, the Hotel and the operation thereof are
in compliance, in all material respects, with all material federal, state and local laws, rules and regulations. 
 (d)
Taxes. To Seller’s knowledge, all federal, state, local and other tax returns, reports and declarations of every nature required to be filed by or on behalf of Seller (either separately or as part of a consolidated group) with respect to
the Property or operation of the Hotel have been timely filed (subject to any extensions that may be permitted by law) and such returns, reports and declarations as so filed are complete and accurate in all material respects and disclose all taxes
required to be paid for the periods covered thereby. To Seller’s knowledge, there exists no audit of any taxes payable or tax delinquency with respect to the Property which has not been resolved or completed. All such taxes and all deficiency
assessments, penalties and interest relating to any period ending prior to the Closing Date with respect to the Property have been or shall be paid by Seller if due as of or prior to the Closing Date. To Seller’s knowledge, except as set forth
on an applicable Disclosure Schedule, there is no currently pending appeal or abatement proceeding with respect to the real estate taxes assessed on the Property. 

  
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 (e) Bankruptcy. Seller is not the subject debtor under any federal, state or local
bankruptcy or insolvency proceeding, or any other proceeding for dissolution, liquidation or winding up of its assets, and no attachments, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, or similar
proceedings are pending or, to Seller’s knowledge, threatened against Seller, nor is Seller contemplating commencing any proceedings. Seller is not insolvent, and the consummation of the transactions contemplated by this Agreement shall not
render Seller insolvent. 
 (f) Condemnation. Seller has not received written notice of, and to Seller’s knowledge
there are, no pending condemnation actions with respect to the Hotel and there are no threatened or contemplated condemnation actions. 
 (g) Contracts. All Contracts and all amendments and modifications thereto are listed on Schedule 6(g). To Seller’s knowledge, other than the Contracts listed on Schedule 6(g),
there are no Contracts affecting the Property or the operation of any part thereof. Seller has provided, or will provide simultaneous with delivery of the Disclosure Schedules, a true, accurate and complete copy of each such Contract to Buyer. To
Seller’s knowledge, as of the date hereof, the Contracts (i) are in full force and effect, (ii) have not been amended or modified, and (iii) have not been assigned in any manner. As of the date hereof, neither Seller nor, to
Seller’s knowledge, Hotel Manager (on behalf of itself or Seller) has given or received any written notice of a default under any Contract which default remains uncured and, to Seller’s knowledge, there is no existing condition that, with
notice or passage of time or both, would constitute a default by any party under any Contract. 
 (h) Intentionally
Deleted. 
 (i) Equipment Leases. All Equipment Leases and all amendments and modifications thereto are listed on
Schedule 6(i). Seller has provided, or will provide simultaneous with delivery of the Disclosure Schedules, a true, accurate and complete copy of each such Equipment Lease to Buyer. To Seller’s knowledge, other than the Equipment Leases
listed on Schedule 6(i), there are no Equipment Leases affecting the Property or the operation of any part thereof. To Seller’s knowledge, as of the date hereof, the Equipment Leases (i) are in full force and effect, (ii) have
not been amended or modified, and (iii) have not been assigned in any manner. As of the date hereof, neither Seller nor, to Seller’s knowledge, Hotel Manager (on behalf of itself or Seller) has given or received any written notice of a
default under any Equipment Lease which default remains uncured and, to Seller’s knowledge, there is no existing condition that, with notice or passage of time or both, would constitute a default by any party under any Equipment Lease.

 (j) Hotel Management Agreement. Seller is not a party to any existing management agreements or franchise agreements
relating to the Property other than the Hotel Management Agreement. Seller has provided, or will provide simultaneous with delivery of the Disclosure Schedules, a true accurate and complete copy of the Hotel Management Agreement to Buyer. The Hotel
Management Agreement, (i) is in full force and effect, (ii) has not been amended or modified, and (iii) has not been assigned in any manner. As of the date hereof, there exists no default by any party under the Hotel Management
Agreement and there is no existing condition that, with notice or passage of time or both, would constitute a default under the Hotel Management Agreement. 

  
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 (k) Special Assessments. Seller has not received written notice of any, and to
Seller’s knowledge there are no, threatened or contemplated special assessments affecting the Property. 
 (l)
FIRPTA. Seller is not a “foreign person” within the meaning of Section 1445 of the Internal Revenue Code of 1986 (i.e., Seller is not a nonresident alien, foreign corporation, foreign partnership, foreign trust or foreign
estate as those terms are defined in said Code and regulations promulgated thereunder). 
 (m) Environmental Matters. To
Seller’s knowledge, except for any and all matters that are disclosed in Schedule 6(m): 
 (i) The
Property is in compliance with all Environmental Laws. Seller has not received any notice or communication asserting or alleging any violation of or liability under any Environmental Law associated with the Property, and no facts, circumstances, or
conditions exist that would reasonably be expected to result in such violation. No Hazardous Substance has been released or is present on, under, in, at or emanating from or to the Property except in compliance with Environmental Law. No storage
tanks are or have been located on the Property, whether above ground, underground, or within any structure on the Property. There is no pending or threatened action and there has been no other allegation by any person or entity asserting exposure to
any Hazardous Substance associated with the Property. There are no natural resources, wetlands, or endangered species located on the Property that would reasonably be expected to impede the use or operation of the Property. There are no liens or
deed restrictions arising under or pursuant to any Environmental Law associated with the Property, and there are no facts, circumstances, or conditions that would reasonably be expected to restrict, encumber, interfere with operations on, or result
in the imposition of special conditions pursuant to or under any Environmental Law on the Property. 
 (ii)
Seller has provided Buyer with true, accurate and complete copies of all environmental, health, and safety site assessment reports, investigations, remediation or compliance studies, audits, assessments or similar documents, which are in the
possession, custody or control of Seller. 
 (n) Adverse Actions or Proceedings. Except as described in Schedule
6(n), there exists no action or proceeding or litigation pending against the Hotel or against Seller with respect to the Property which could have an adverse effect on the Hotel, and neither Seller nor, to Seller’s knowledge, Hotel Manager
has received written notice of any such threatened or contemplated action or proceeding or litigation. 
 (o) Insurance.
Schedule 6(o) is a true, correct and complete schedule of the insurance policies maintained by Seller or, to Seller’s knowledge, on Seller’s behalf for the Property, and Seller has delivered to Buyer true, correct and complete
copies of all such insurance policies. Neither Seller nor, to Seller’s knowledge, Hotel Manager has received written notice of the pending or threatened termination of any such insurance policy, and to Seller’s knowledge, no such insurance
policy has been terminated. To Seller’s knowledge, there are no defects or inadequacies in the Property that would affect adversely its insurability or increase the cost of insurance. 

  
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 (p) Authorizations. To Seller’s knowledge, all Authorizations maintained by or
on behalf of Seller or for the operation of the Hotel are (i) set forth on Schedule 6(p) to this Agreement, and (ii) in full force and effect. To Seller’s knowledge, except as otherwise disclosed to Buyer in said Schedule
6(p) as of the date hereof, there exist no violations of any Authorization, and no facts or circumstances exist that would reasonably be expected to result in any violations or basis for the revocation or non-renewal of any Authorization.

 (q) Employees. Seller has no employees. Except as otherwise set forth on Schedule 6(q), Seller has executed no union
agreements, collective bargaining agreements, employment contracts or other similar arrangements with respect to Hotel employees. To Seller’s knowledge, there exists no actual or threatened union strikes, work stoppages or slow downs or any
other labor disputes concerning individuals employed at the Property. All employees of the Hotel are directly employed by Hotel Manager and to Seller’s knowledge, Hotel Manager will continue to manage such employees in the ordinary course of
the Hotel’s business. 
 (r) Reserves. To Seller’s knowledge, a true and complete list of all reserves
maintained by the Hotel Manager is attached hereto as Schedule 6(r). 
 (s) Tax Certiorari Appeals. Except as
otherwise set forth on Schedule 6(s), there are no pending tax certiorari appeal proceedings that have been filed by Seller or, to Seller’s knowledge, by Hotel Manager with respect to the Property. 

(t) Options. To Seller’s knowledge, except for the rights afforded to Buyer under this Agreement and any other rights
expressly set forth in the Hotel Management Agreement, there are no rights or options to purchase, rights of first refusal, rights of first offer or other similar rights with respect to the sale, purchase or leasing of the Hotel. 

(u) Unrecorded Commitments. Seller has not and, to Seller’s knowledge, Hotel Manager (on behalf of itself or Seller) has not
entered into any unrecorded commitment or agreement with any Governmental Authority affecting the Property. Seller has not and, to Seller’s knowledge Hotel Manager (on behalf of itself or Seller) has not entered into any unrecorded commitment
or agreement with any Governmental Authority, association or other organization or group affecting all or any portion of the Property which would impose any obligation to make any contribution or dedication of money or land or to construct, install
or maintain any improvements of a public or private nature on or off the Property. 
 (v) Work. To Seller’s
knowledge, there are no contracts or commitments with respect to the Property involving any capital expenditures or material construction that have not been paid in full. 
 (w) Development Rights. Seller has not sold, transferred or encumbered any development rights or air rights appurtenant to the Property. 

  
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 (x) Certificate of Occupancy. Neither Seller nor, to Seller’s knowledge, Hotel
Manager has received written notice from any applicable authority that the Property, as currently operated, is not in compliance with the existing certificate of occupancy. 
 (y) Anti-Terrorism Laws. Neither Seller nor any of its respective constituent owners or affiliates are in violation of any laws relating to terrorism or money laundering, including without
limitation Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism and/or the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56). 
 (z) No Implied Representations. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED REPRESENTATION OR
WARRANTY AS TO THE CONDITION, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY OF THE PROPERTY, OR ANY OTHER MATTER, AND IT IS UNDERSTOOD THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER
CONTAINED IN THIS AGREEMENT, BUYER TAKES THE PROPERTY ON AN “AS IS” AND “WHERE IS” BASIS IN ITS PRESENT CONDITION. 
 (aa) Amendment to Schedules. Seller shall have the right to provide notice to Buyer, for informational purposes only, of any changes to the schedules to this Agreement and the representations and
warranties of Seller set forth in this Agreement from time to time prior to the Closing Date to reflect changes since the Effective Date; provided, however, that the same shall not in any way limit the rights or remedies of Buyer hereunder in
respect of any default by Seller hereunder and shall have no effect for the purpose of determining whether the condition to Buyer’s obligation to close set forth in Section 5(a)(i) hereof has been satisfied (it being agreed, however, that,
upon receipt of such notice, Buyer shall be deemed to have had knowledge prior to Closing of the matters set forth in such notice, and, if Buyer shall elect to proceed to Closing, Buyer shall have waived any claim against Seller based upon the
matters set forth in such notice). 
 7. Covenants of Seller. Between the Effective Date and the Closing Date, Seller covenants and
agrees as follows: 
 (a) Ordinary Conduct. Subject to the express terms and conditions of this Agreement, from the date
hereof to the Closing, Seller shall use commercially reasonable efforts to cause the operation and maintenance of the Hotel to be conducted in the ordinary course of business consistent with Seller’s and Hotel Manager’s present standards
and past practices. 
 (b) Contracts and Equipment Leases. Seller will not, without the prior written consent of Buyer,
which may be granted or withheld in Buyer’s reasonable discretion (provided, however, that following the expiration of the Inspection Period, such consent may be granted or withheld in Buyer’s sole discretion), (x) sell, pledge,
transfer or encumber any of its interest in any of the Property, or grant any Person any occupancy rights, or contract to do any of the 

  
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foregoing, in each case other than in the ordinary course of business, (y) enter into any (A) new Contracts or Equipment Leases that are not subject to termination or cancellation by
Seller and its successors and assigns, without penalty, upon no more than thirty (30) days’ prior notice or (B) new Authorizations or (z) cancel, modify, waive any of its rights under, grant any consent rights under or renew any
of the existing Contracts or Equipment Leases or accept any rental for more than one month in advance; provided, however, that Seller may, without Buyer’s prior consent, enter into (I) Purchase Orders in the ordinary course of business
consistent with past practice and (II) applications to obtain or renew Authorizations used in the ordinary course of business consistent with past practice or required for the continued operation of the business of the Hotel or the transfer
contemplated hereby and (III) a license for the sale of the liquor inventory in accordance herewith. 
 (c) Bookings.
Notwithstanding the provisions of Section 7(b) above, Seller shall have the right to, without giving notice to or receiving the consent of Buyer, and shall, make (and accept cancellations of) bookings for the Hotel in the ordinary course of
business consistent with past practice and otherwise market and promote the business of the Hotel in generally the same manner as it did prior to the execution of this Agreement, and all advance bookings shall be booked at rates, prices and charges
charged by Seller for such purposes in the ordinary course of business consistent with Seller’s past practices. 
 (d)
Authorizations. Seller will execute and Buyer, where necessary, will join in the execution of, all applications and instruments requested by Buyer which are required in connection with the transfer of all transferable Authorizations in order
to transfer the benefits of such Authorizations to Buyer on the Closing Date. Buyer shall be responsible for, and pay immediately upon Seller’s request, all costs related to such applications and instruments. Seller, subject to the next
succeeding sentence, shall preserve in force all existing Authorizations and cause all those expiring during the period between the date hereof and the Closing to be renewed prior to the Closing Date unless otherwise agreed to by Buyer and Seller.
If any such Authorization shall be suspended or revoked, Seller shall promptly so notify Buyer and shall use reasonable efforts to cause the reinstatement of such Authorization without any additional limitation or condition. 

(e) Compliance. Subject to a legitimate payment dispute that Seller will resolve without any adverse effect to the Property or
Buyer prior to the Closing, Seller shall make all payments of principal, interest and other sums under the existing mortgage loans, mezzanine loans and Hotel Management Agreement, Contracts and Equipment Leases, and perform all of its respective
obligations thereunder which accrue during the period prior to the Closing. Seller shall not enter into any new loan documents or modify any existing loan documents or any other of the aforementioned agreements which would be binding on Buyer or the
Property, or which would materially increase Buyer’s or its affiliates’ liabilities or obligations or materially decrease Buyer’s or its affiliates’ rights thereunder. 

(f) Restrictions of Record. Subject to a legitimate payment dispute that Seller will resolve without any adverse effect to the
Property or Buyer prior to the Closing, Seller shall make all payments and perform all its obligations under any covenants, conditions, restrictions or similar documents of record which accrue during the period prior to the Closing. 

  
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 (g) Material Notices. Seller shall promptly advise Buyer of any litigation,
arbitration or administrative hearing, or any written threat to commence any of the foregoing, concerning or relating to the Property or the operation thereof or any other material occurrence with respect to the Hotel, of which Seller obtains
knowledge, and Seller shall not initiate or settle or any litigation, arbitration or administrative hearing or similar proceeding without Buyer’s consent. 
 (h) Contract/Equipment Lease Termination. Seller shall terminate, at Seller’s sole cost and expense, the Excluded Contracts, if any, prior to the Closing, or as soon thereafter as reasonably
practicable if any required notice period to terminate extends past the Closing Date. 
 (i) Insurance. Seller will
maintain in effect all policies of casualty, business interruption and liability insurance which are in effect as of the date hereof, or similar policies of insurance, with no less than the limits of coverage now carried with respect to the Hotel.

 (j) Notification. Prior to the Closing, Seller shall promptly notify Buyer if Seller obtains knowledge that the
representations and warranties of Seller in this Agreement and the Schedules hereto are not true and correct in all material respects, or if Seller obtains knowledge of any material errors in, or omissions from, the Schedules to this Agreement.

 (k) Hotel Manager. Seller shall use commercially reasonable efforts to cause Hotel Manager to comply with the
foregoing covenants set forth in this Section 7. 
 (l) Estoppels. Seller shall deliver a copy of the Manager
Estoppel to Buyer promptly upon receipt of the same from Hotel Manager. 
 8. Representations and Warranties of Buyer; Waivers.

 (a) Representations and Warranties of Buyer. 
 Buyer hereby represents and warrants to Seller, as of the date hereof, and as of the Closing Date, as follows: 
 (i) Authority; No Conflicts. 
 (1) Buyer is a limited
liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware. Buyer has all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. All
limited liability company acts and other proceedings required to be taken by Buyer to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby have been duly and properly taken.
This Agreement has been duly executed and delivered by Buyer. 
 (2) The execution and delivery by Buyer of this
Agreement does not, and the consummation by Buyer of the transactions contemplated hereby and compliance by Buyer with the terms hereof will not conflict with, or result in any violation of or default under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to loss of a benefit under, or result in the creation of any lien, claim, encumbrance, security interest, option, charge or restriction of any kind upon any of the properties or assets of Buyer
under, or require 

  
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any consent, authorization or approval under (A) any provision of the organizational documents of Buyer, (B) any material note, bond, mortgage, indenture, deed of trust, license, lease,
contract, commitment, agreement or arrangement to which Buyer is a party or by which any of its properties or assets are bound or (C) any material judgment, order or decree, or any material statute, law, ordinance, rule or regulation applicable
to Buyer or its property or assets. 
 (ii) Actions and Proceedings, etc. There are no
(i) outstanding judgments, orders, writs, injunctions or decrees of any court, governmental agency or arbitration tribunal against Buyer which have or could have a material adverse effect on the ability of Buyer to consummate the transactions
contemplated hereby or (ii) actions, suits, claims or legal, administrative or arbitration proceedings or investigations pending or, to the knowledge of Buyer, threatened against Buyer, which have or could have a material adverse effect on the
ability of Buyer to consummate the transactions contemplated hereby. 
 (iii) Availability of Funds. Buyer
has the financial wherewithal, or irrevocable commitments from financial institutions, to enable it to consummate the transactions contemplated by this Agreement. Buyer has the financial wherewithal to operate the Hotel and to meet Buyer’s
financial obligations (including, without limitation, under the Hotel Management Agreement) related to the operation of the Hotel. 
 (iv) Anti-Terrorism Laws. Neither Buyer nor any of its respective constituent owners or affiliates are in violation of any laws relating to terrorism or money laundering, including without
limitation Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 and relating to Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism and/or the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56). 
 (v) The representations and warranties of Buyer herein contained in this paragraph (a) shall survive the Closing. 
 (b) Investigation; Financial. 
 (i) Buyer and its affiliates
are sophisticated investors in the hotel ownership and management businesses. Buyer understands the nature of the risks and opportunities inherent in the operation of the Property. 

(ii) The Inspection Period shall afford Buyer adequate opportunity to inspect the Property and to investigate its physical
characteristics and conditions, and Buyer agrees that, except as otherwise expressly set forth in this Agreement (including, without limitation, Buyer’s rights in connection with Section 11 hereof), Buyer’s failure to terminate this
Agreement prior to the expiration of the Inspection Period shall be deemed Buyer’s waiver of any and all objections to the physical characteristics and conditions of the Property which would be disclosed by such inspection. Neither Seller nor
any of its employees, agents or representatives has made any representations, warranties or agreements to or with Buyer on behalf of Seller as to any matters concerning the Property, the present use thereof, or the suitability of Buyer’s
intended use of the Property, except for the representations, warranties and agreements expressly contained in this Agreement. 

  
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 (iii) Except for the express representations, warranties and covenants set
forth in this Agreement, no representations, warranties, promises or guaranties have been made with respect to the topography, climate, air, water rights, utilities, soil, subsoil, existence of hazardous waste or similar substances, purpose to which
the Property is suited, drainage or access to public roads and present and future zoning and building regulations, insurance and rating codes and regulations, ordinances and requirements and any other laws, regulations, or ordinances, affecting the
Property or its use adopted by any authority having jurisdiction over the Property and the use thereof and the existence and effect of any special taxing or assessment districts. Buyer further acknowledges and agrees that the Property is to be
purchased, conveyed and accepted by Buyer in its present condition “AS-IS” and “WHERE IS”, as provided in Section 6(z) of this Agreement, and except as otherwise herein expressly provided, no patent or latent physical
condition of the Property, whether or not known or discovered, shall affect the rights of either Party hereto. Buyer has adequate expertise and experience to investigate and acquire any necessary knowledge of operative or imposed governmental laws
and/or regulations (including, but not limited to, zoning, environmental, including specifically the regulations of the Environmental Protection Agency, and land use laws and regulations) which may impact the Property and, subject to the express
representations, warranties and covenants of Seller set forth in this Agreement, Buyer shall base its decision whether or not to acquire the Property in part on the basis of its review and determination of the application and effect of such laws and
regulations. Except for the express representations, warranties and covenants set forth in this Agreement, no representations, warranties, promises or guaranties have been made by Seller, Seller’s employees, agents, or any person acting under
or on behalf of Seller with respect to such laws and regulations. 
 (iv) Except as otherwise expressly set forth
herein and except with respect to any representation, warranty or obligation or indemnification expressly provided for in this Agreement or in any of the documents delivered hereunder or pursuant hereto, Buyer hereby expressly waives and
relinquishes any and all rights and remedies Buyer may now or hereafter have against Seller, whether known or unknown, with respect to any past, present or future presence or existence of Hazardous Substances on, in, under or about the Property or
with respect to any past, present or future violations of any rules, regulations or laws, now or hereafter enacted, regulating or governing the use, handling, storage or disposal of Hazardous Substances including, without limitation, (i) any
and all rights Buyer may now or hereafter have to seek contribution from Seller under Section 113(f)(i) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (“CERCLA”), as amended by the Superfund
Amendments and Reauthorization Act of 1986, (42 U.S.C. §9613), as the same may be further amended or replaced by any similar law, rule or regulation, (ii) any and all rights Buyer may now or hereafter have against Seller under the Resource
Conservation and Recovery Act (42 U.S.C. §§ 6901 et seq.), and (iii) any and all claims Buyer may now or hereafter have against Seller, whether known or unknown, now or hereafter existing, with respect to the Property under
Section 107 of CERCLA (42 U.S.C. § 9607). As used herein, the term “Hazardous Substances” includes, without limitation, any hazardous or toxic materials, substances or wastes, such as (A) any materials, substances or wastes
which are toxic, ignitable, corrosive or reactive and which are regulated by a local government authority, any agency of the state of California or any 

  
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agency of the United States government, (B) asbestos in any form, (C) any type of mold, (D) petroleum and petroleum based products, (E) urea formaldehyde foam insulation,
(F) polychlorinated biphenyls (PCBs), and (G) freon and other chlorofluorocarbons. 
 (v) The waivers
and releases by Buyer herein contained in this paragraph (b) shall survive the Closing. 
 (c) No Additional
Representations. Buyer acknowledges that, except as otherwise expressly set forth in this Agreement or documents delivered pursuant hereto, neither Seller nor any person or entity has made any representation or warranty, express or implied, as
to the accuracy or completeness of any information regarding the Property, the Assumed Liabilities or the operation of the Hotel, and Buyer further agrees that, except as otherwise expressly set forth in this Agreement or documents delivered
pursuant hereto, neither Seller nor any other person or entity shall be subject to any liability to Buyer or any other person resulting from the distribution to Buyer’s or Buyer’s use of, any such information. 

9. Covenants of Buyer. Buyer covenants as follows: 
 (a) Notification. Prior to the Closing, Buyer shall promptly notify Seller if Buyer obtains knowledge that the representations and warranties of Seller in this Agreement and the Schedules hereto
are not true and correct in all material respects, or if Buyer obtains knowledge of any material errors in, or omissions from, the Schedules to this Agreement; provided, however, the failure of Buyer to deliver such notice shall not constitute a
default hereunder or in any way vitiate or impair the rights or remedies of Buyer set forth herein with respect thereto. 
 (b)
Hotel Management Agreement. Subject to the terms and conditions of this Agreement, Buyer, or its designee, shall assume, as of the Closing Date, all of the obligations and liabilities of Seller, as owner, under the Hotel Management Agreement
(a true and correct copy of which has been provided by Seller to Buyer) arising from and after the Closing Date. 
 10. Mutual Covenants.
Seller and Buyer covenant and agree as follows: 
 (a) Confidentiality. Buyer and Seller each agree that it shall not
directly or indirectly disclose any Confidential Information concerning the Property, the other party, the other party’s assets or the transaction contemplated herein to any person except that such matters may be disclosed (a) to such
party’s directors, officers, partners, members, affiliates and employees, subject to the same standard of confidentiality; (b) to such party’s legal counsel, accountants, engineers, architects, financial advisors, potential lenders,
and investors, permitted assignees, and similar professionals and consultants to the extent such party deems it reasonably necessary or appropriate in connection with the evaluation of the transaction contemplated herein, subject to the same
standard of confidentiality; (c) by Seller to third parties having an ownership interest in or contractual relationship with Seller with respect to the Hotel (such as existing mortgagees and equipment lessors) to whom disclosure is necessary in
order to facilitate the consummation of the transaction contemplated herein, subject to the same standard of confidentiality; and (d) as may be required to be delivered to the appropriate Governmental Authority in connection with Buyer
obtaining a liquor license or the transfer of any Authorizations. For the purpose of this Section 10(a), the term “Confidential Information” shall mean information which is or becomes known

  
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to a party or its respective affiliates or to their employees, former employees, consultants or others in a confidential relationship with such party, including, without limitation, pursuant to
the terms of this Agreement, and which relates to the Property, the transaction contemplated herein or the business of either party; provided, however, that Confidential Information shall not include (i) information which is or becomes
generally available to the public other than through a violation of law or obligation hereunder, (ii) information which, in the opinion of counsel to either party, such party is required by law, court order, governmental order or decree to
disclose, except that the other party may at its own expense appeal such court order, (iii) information which, whether prior or subsequent to execution of this Agreement, was developed by such party on its own or lawfully obtained by such
party, independent from the proprietary information made available to such party hereunder, and (iv) information which was subsequently made available to such party by a third party who, in making such disclosure, was not violating the law or
any obligation under this Agreement or any other confidentiality agreement to which it is a party. The provisions of this Section 10(a) shall survive the Closing or any expiration or termination of this Agreement. 

(b) Publicity. Seller and Buyer agree that, from the date hereof through the Closing Date, no public release or announcement
concerning the transactions contemplated hereby shall be issued or made by any party without the prior consent of the other party, except such release or announcement as may be required by law or the rules or regulations of any United States
securities exchange to which Buyer is subject, or in connection with any public equity offering by Buyer or its affiliate. Notwithstanding the foregoing, Buyer and Seller shall cooperate to prepare a joint press release to be issued on the Closing
Date. 
 (c) Liquor License. Buyer hereby acknowledges and agrees that it is Buyer’s sole responsibility to obtain
the Authorizations, including any liquor license or permit, required to permit Buyer to acquire the alcoholic beverage inventory from Seller and sell the same inventory in connection with the operation of the Hotel. Buyer agrees that Buyer shall
diligently pursue the issuance of any such Authorizations by the appropriate Governmental Authorities; provided, however, the issuance of such Authorizations shall not be a condition to Closing. Buyer acknowledges that the liquor license in
connection with the operation of the Hotel is held by Adagio F&B, LLC, a Delaware limited liability company (“Liquor License Owner”). Seller shall cause Liquor License Owner, to the extent permitted under federal state, county,
municipal or other local law and regulation, to reasonably cooperate with Buyer and to promptly execute and deliver to Buyer any necessary documents, instruments and materials, including, without limitation, (i) transfer forms and applications
for any temporary and permanent license (and any license or licenses necessary for Sunday alcohol sales), that may be required of Liquor License Owner in connection with the transfer of the liquor license or the issuance by the appropriate
authorities of such Authorization simultaneously with the Closing or as soon thereafter as is possible, and (ii) to the extent required by Buyer, surrender to Buyer, or the appropriate Governmental Authority, as may be applicable, at the
Closing Liquor License Owner’s original liquor license. If despite the exercise of such efforts by Buyer, Buyer is unable to obtain a transfer of the liquor license or a new liquor license on or before the Closing, then Seller agrees that to
the extent required it shall enter, or cause Liquor License Owner, an Affiliate of Seller that holds the liquor license, to enter into a customary form interim beverage services agreement with Buyer in form reasonably satisfactory to Buyer, Seller
and Liquor License Owner, to the extent permitted by applicable law, for a period not to exceed ninety (90) days following the 

  
 30 

 
Closing. Concurrently with the Closing, the purchase price allocation for the liquor license and the consumable liquor inventory (in an amount to be mutually agreed to by Buyer and Seller) (the
“Liquor Escrow”) shall be transferred by wire transfer to a liquor license escrow until such time as the permanent liquor license is issued to Buyer; the liquor license escrow agreement will govern the release of the Liquor Escrow.

 (d) Further Assurances. From time to time, as and when requested by any Party hereto, the other Party hereto shall
execute and deliver, or cause to be executed and delivered, all such documents and instruments and shall take, or cause to be taken, all such further or other actions, as such other Party may reasonably deem necessary to consummate the transactions
contemplated by this Agreement; provided, however, that no Party shall be required to expend any monies (other than de minimis sums or sums which the other party agrees to reimburse) in complying with any such request. The provisions of this
paragraph (d) shall survive the Closing for a period not to exceed one (1) year. 
 11. Damage Or Destruction Of The Property;
Condemnation. 
 (a) Damage or Destruction of the Property. 

(i) If, between the Effective Date and the Closing Date, all or a Substantial Part of the Property is damaged or
destroyed, Seller shall promptly provide written notice thereof to Buyer (accompanied by information regarding the amount and payment of insurance), and Buyer may elect, within fifteen (15) days after receipt by Buyer of such notice, to
terminate this Agreement by providing written notice to Seller of such election. If Buyer fails to timely notify Seller of its election to terminate this Agreement as set forth in the preceding sentence, Buyer will be deemed to have elected to
proceed with the purchase and sale of the Property without regard to such damage or destruction. In the event that Buyer elects to proceed with the purchase and sale of the Property, Seller shall have no obligation to repair any such damage or
destruction, nor shall the Purchase Price be adjusted, except as hereinafter otherwise expressly provided. 

(ii) If Buyer elects to terminate this Agreement as provided in this Section 11(a) by timely notifying Seller of such
election in writing, this Agreement shall be of no further force and effect, and the Deposit, together with interest, shall be returned to Buyer and neither Party shall have any further obligations or liability whatsoever to the other hereunder
except for such provisions of this Agreement that expressly survive termination. 
 (iii) If Buyer elects (or is
deemed to have elected), or is required by this Section 11(a), to purchase the Property despite any damage or destruction thereto, at the Closing, Seller shall assign to Buyer all rights of Seller to any insurance proceeds with respect thereto
(other than any business interruption insurance proceeds applicable to the period prior to the Cut-Off Time), and Seller shall deliver to Buyer at Closing any such proceeds actually theretofore paid, if any, with any accrued interest thereon, and
Buyer shall receive a credit against the Purchase Price at Closing equal to the sum of the applicable deductible under the Seller’s insurance policy(ies), less any amounts spent with Buyer’s reasonable approval to restore the Property.

  
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 (iv) In the event Buyer elects to purchase the Property as set forth in
Section 11(a)(iii) above, Buyer shall be permitted to participate in any settlement negotiations with respect to insurance proceeds on account of such damage and destruction and, in any event, Seller shall not settle the amount of collection of
any insurance proceeds without the prior written consent of Buyer. 
 (b) Condemnation. 

(i) If, prior to Closing, all or a Substantial Part of the Property is subject to a threatened or actual temporary or
permanent taking by any public authority, Seller shall promptly notify Buyer of such threatened or actual taking, and Buyer may elect, within fifteen (15) days after receipt of Seller’s notice, to terminate this Agreement by delivering a
written notice to Seller of such election. If Buyer so elects to terminate this Agreement, this Agreement shall be of no further force and effect and the Deposit, together with interest, shall be returned to Buyer and neither Party shall have any
further obligations or liability whatsoever to the other hereunder except for such provisions of this Agreement that expressly survive termination. If Buyer elects (or is deemed to have elected), or is required by this Section 11(b), to
purchase the Property despite any threatened or actual temporary or permanent taking, Buyer shall accept title to the Property subject to the taking without a reduction in the Purchase Price and, at Closing, Seller shall assign its rights to and
deliver to Buyer, and Buyer shall be entitled to receive, any condemnation award with respect thereto, and Seller shall deliver to Buyer at Closing any such awards actually theretofore paid, if any, with any accrued interest thereon. 

(ii) In the event Buyer elects to purchase the Property as set forth in 11(b)(i) above, Buyer shall be permitted to
participate in any settlement negotiations with respect to any award on account of such taking and, in any event, Seller shall not settle the amount of any award without the prior written consent of Buyer. 

(c) Substantial Part. For purposes of this Agreement, damage to the Property or a taking of a portion thereof shall be deemed to
involve a “Substantial Part” thereof if either (i) the estimated cost of restoration or repair of such damage or the amount of the condemnation award with respect of such taking exceeds One Million and 00/100 Dollars ($1,000,000.00)
(as reasonably estimated by an independent and disinterested architect or registered professional engineer competent to make such estimate as jointly selected by Seller and Buyer), or, in the case of a taking, the portion subject to such taking that
would reduce the fair market value of the Property by One Million and 00/100 Dollars ($1,000,000.00) or more (as reasonably estimated by an independent and disinterested appraiser competent to make such estimate as jointly selected by Seller and
Buyer), (ii) Buyer is unable to use any portion of the common areas of the Hotel (including any restaurant, lobby or meeting rooms) which has a material impact on the operation of the Hotel or (iii) such casualty or condemnation materially
interferes with primary access to the Hotel. 

  
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 12. Indemnities. 
 (a) Seller’s Indemnity. From and after the Closing or earlier termination of this Agreement and subject to Sections 12(c) and (d) hereof, Seller shall protect, defend, indemnify and hold
Buyer and Buyer’s employees, officers, directors, representatives, shareholders, affiliates, partners, members, parents, subsidiaries, successors and assigns (collectively, “Buyer Parties”), free and harmless from and against any and
all actual costs, fees expenses, damages, deficiencies, interest and penalties (including, without limitation, reasonable attorney’s fees) suffered or incurred by any such Buyer Party in connection with any and all losses, liabilities, claims,
damages and expenses arising out of, or in any way relating to, (a) any breach of any representation or warranty of Seller contained in this Agreement or in any Closing document delivered by Seller at Closing, (b) any breach of any
covenant of Seller contained in this Agreement which survives the Closing or in any Closing document delivered by Seller at Closing and (c) any Retained Liabilities and/or other indemnification obligation of Seller set forth in this Agreement.

 (b) Buyer’s Indemnity. From and after the Closing or earlier termination of this Agreement and subject to
Sections 12(c) and (d) hereof, Buyer shall protect, defend, indemnify and hold Seller and Seller’s employees, officers, directors, representatives, shareholders, affiliates, partners, members, parents, subsidiaries, successors and assigns
(collectively, “Seller Parties”), free and harmless from and against any and all costs, fees expenses, damages, deficiencies, interest and penalties (including, without limitation, reasonable attorney’s fees) suffered or incurred by
any such Seller Party in connection with any and all losses, liabilities, claims, damages and expenses arising out of, or in any way relating to, (a) any breach of any representation or warranty of Buyer contained in this Agreement or in any
Closing document delivered by Buyer at Closing, (b) any breach of any covenant of Buyer contained in this Agreement which survives the Closing or in any Closing document delivered by Buyer at Closing, and (c) any Assumed Liabilities and/or
other indemnification obligation of Buyer set forth in this Agreement (including the indemnification of Buyer set forth in Section 4(c) hereof). 
 (c) Limitations on Indemnification. Notwithstanding the foregoing provisions of Section 12(a) above, (a) Seller shall not be required to indemnify Buyer or any Buyer Parties under this
Agreement unless the aggregate of all amounts for which an indemnity would otherwise be payable by the Seller under Section 12(a) exceeds $100,000.00 (the “Limitation”) and, in such event, subject to a Buyer Waived Breach (as
hereinafter defined), Seller shall be responsible for all amounts of the indemnified loss which exceed the Limitation), subject only to the Cap Limitation (as hereinafter defined), (b) the liability of Seller with respect to the indemnification
provided for in Section 12(a) shall not exceed in the aggregate $1,000,000.00 with respect to any claims asserted in a Claims Notice delivered by Buyer during the period commencing with the Closing Date and terminating on April 8, 2012
(the “Cap Limitation”), and (c) if prior to the Closing, Buyer obtains or has actual knowledge of any inaccuracy or breach of any representation, warranty or covenant of Seller contained in this Agreement (a “Buyer Waived
Breach”) and nonetheless proceeds with and consummates the Closing, then Buyer and any Buyer Parties shall be deemed to have waived and forever renounced any right to assert a claim for indemnification under this Article 12 for, or any other
claim or cause of action under this Agreement, at law or in equity on account of any such Buyer Waived Breach. Notwithstanding the foregoing, the Limitation set forth in this Section 12(c) shall not apply to an indemnity arising from
Section 25 (Brokerage) and Section 30 (Bulk Sales Transfer Laws). 

  
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 (d) Survival. The representations, warranties and covenants contained in this
Agreement and the Closing documents delivered at Closing shall survive for a period of nine (9) months after the Closing Date (the “Survival Period”) unless otherwise provided for in this Agreement (the “Surviving
Obligations”). It being expressly understood and agreed by and between the parties hereto that, after the Closing Date, Seller shall not be liable to the Buyer with respect to any Surviving Obligations unless the Buyer has delivered notice of a
claim for such Surviving Obligations in writing to Seller (the “Claims Notice”) prior to the expiration of the Survival Period, and filed an action with respect to same within ninety (90) days after delivery of the Claims Notice to
Seller, Buyer hereby waiving any and all claims Buyer may have to seek any other recoveries after such Survival Period, except for such claims which survive beyond the Survival Period, as expressly set forth herein. Claims for Surviving Obligations
not made in writing within the Survival Period shall be deemed lapsed and be null and void, and with respect to any claim brought within the Survival Period, such claim shall be deemed lapsed and be null and void if any action is not brought within
ninety (90) days after delivery of the Claims Notice to Seller. 
 (e) Indemnification as Sole Remedy. If the
Closing has occurred, the sole and exclusive remedy available to a Party in the event of a breach by the other party to this Agreement of any representation, warranty, covenant or other provision of this Agreement or any Closing document delivered
at Closing which survives the Closing shall be the indemnifications provided for under this Article 12, which indemnifications shall survive the Closing as provided in this Article 12. 
 13. Assignment. Buyer may not assign its rights and interest in and to this Agreement to an unaffiliated third party without written notice to and prior written consent from Seller, which consent
shall not be unreasonably delayed; provided, however, notwithstanding such assignment, Buyer shall remain liable to Seller for its obligations hereunder. 
 14. No Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties hereto, and their permitted successors and assigns, and the Seller Parties and the Buyer Parties as and to
the extent provided in Article 12 hereof, and nothing herein express or implied shall give or be construed to give to any person or entity, other than the Parties hereto, and their permitted successor and assigns, the Seller Parties and the Buyer
Parties, any legal or equitable rights hereunder. 
 15. Termination. 

(a) Seller’s Termination Rights. 
 (i) THIS AGREEMENT MAY BE TERMINATED BY SELLER IF (I) ANY OF THE CONDITIONS PRECEDENT TO THE SELLER’S OBLIGATIONS SET FORTH IN SECTION 5(b) HEREOF HAVE NOT BEEN SATISFIED OR WAIVED BY THE SELLER
ON OR PRIOR TO THE CLOSING DATE OR (II) THERE IS A MATERIAL BREACH OR MATERIAL DEFAULT BY BUYER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT. 
 (ii) IN THE EVENT THIS AGREEMENT IS TERMINATED PURSUANT TO SUBSECTION 15(a)(i), THIS AGREEMENT SHALL BE NULL AND VOID AND OF NO FURTHER FORCE OR EFFECT AND NEITHER PARTY SHALL HAVE ANY RIGHTS OR
OBLIGATIONS AGAINST OR TO THE OTHER EXCEPT (I) FOR THOSE PROVISIONS HEREOF WHICH BY THEIR TERMS EXPRESSLY SURVIVE THE TERMINATION OF THIS AGREEMENT AND (II) AS SET FORTH IN SUBSECTION 15(a)(iii) HEREOF. 

  
 34 

 (iii) IN THE EVENT SELLER TERMINATES THIS AGREEMENT AS A RESULT OF A
MATERIAL BREACH OR MATERIAL DEFAULT BY BUYER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT AFTER THE INSPECTION PERIOD, ESCROW AGENT SHALL IMMEDIATELY DISBURSE THE DEPOSIT TO SELLER, AND UPON SUCH DISBURSEMENT SELLER AND BUYER SHALL
HAVE NO FURTHER OBLIGATIONS UNDER THIS AGREEMENT, EXCEPT THOSE WHICH EXPRESSLY SURVIVE SUCH TERMINATION. BUYER AND SELLER HEREBY ACKNOWLEDGE AND AGREE THAT IT WOULD BE IMPRACTICAL AND/OR EXTREMELY DIFFICULT TO FIX OR ESTABLISH THE ACTUAL DAMAGE
SUSTAINED BY SELLER AS A RESULT OF SUCH DEFAULT BY BUYER, AND AGREE THAT THE DEPOSIT IS A REASONABLE APPROXIMATION THEREOF. ACCORDINGLY, IN THE EVENT THAT SELLER TERMINATES THIS AGREEMENT IN ACCORDANCE WITH SECTION 15(a)(i) AFTER THE EXPIRATION OF
THE INSPECTION PERIOD, THE DEPOSIT SHALL CONSTITUTE AND BE DEEMED TO BE THE AGREED AND LIQUIDATED DAMAGES OF SELLER, AND SHALL BE PAID BY ESCROW AGENT TO SELLER AS SELLER’S SOLE AND EXCLUSIVE REMEDY HEREUNDER; PROVIDED, HOWEVER, THE FOREGOING
SHALL NOT LIMIT BUYER’S OBLIGATION TO PAY TO SELLER ALL REASONABLE ATTORNEYS’ FEES AND COSTS INCURRED BY SELLER TO ENFORCE THE PROVISIONS OF THIS SECTION 15(a) OR BUYER’S INDEMNITY OBLIGATIONS OWED TO SELLER PURSUANT TO THIS AGREEMENT
WHICH SURVIVE A TERMINATION OF THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT THE PAYMENT OF THE DEPOSIT TO SELLER AS LIQUIDATED DAMAGES ON ACCOUNT OF BUYER’S DEFAULT IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA
CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. TO SIGNIFY THEIR AWARENESS AND AGREEMENT TO BE BOUND BY THE TERMS AND PROVISIONS OF THIS
PARAGRAPH 15(a)(iii), BUYER AND SELLER HAVE SEPARATELY INITIALED THIS PARAGRAPH. 
  

					
	  	 		 	  
	SELLER INITIALS	 		 	BUYER INITIALS

 (iv) IN THE EVENT SELLER TERMINATES THIS AGREEMENT FOR ANY REASON OTHER THAN AS RESULT OF
A MATERIAL BREACH OR MATERIAL DEFAULT BY BUYER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, ESCROW AGENT SHALL IMMEDIATELY DISBURSE THE DEPOSIT TO BUYER. 
 (b) Buyer’s Termination Rights. 
 (i) THIS AGREEMENT
MAY BE TERMINATED BY BUYER IF (I) ANY OF THE CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS SET FORTH IN SECTION 5(a) HAVE NOT BEEN SATISFIED OR WAIVED BY BUYER ON OR PRIOR TO THE CLOSING DATE OR (II) THERE IS A MATERIAL BREACH OR MATERIAL
DEFAULT BY THE SELLER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT. 

  
 35 

 (ii) IN THE EVENT OF A MATERIAL BREACH OR MATERIAL DEFAULT BY THE SELLER IN
THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, THE BUYER MAY: (I) (A) TERMINATE THIS AGREEMENT AND RECEIVE A RETURN OF THE DEPOSIT AT WHICH TIME THIS AGREEMENT SHALL BE TERMINATED AND OF NO FURTHER FORCE AND EFFECT EXCEPT FOR THE
PROVISIONS WHICH EXPRESSLY SURVIVE SUCH TERMINATION; AND (B)(1) IN THE EVENT OF AN UNINTENTIONAL MATERIAL BREACH BY SELLER, SEEK ACTUAL DAMAGES, PROVIDED BUYER’S DAMAGES SHALL BE LIMITED TO ACTUAL OUT OF POCKET DAMAGES IN AN AMOUNT NOT TO
EXCEED $250,000.00, PLUS BUYER’S ATTORNEYS’ FEES AND COSTS TO ENFORCE THE PROVISIONS OF THIS SUBSECTION 15(b)(ii), OR (2) IN THE EVENT OF AN INTENTIONAL MATERIAL BREACH COMMITTED IN BAD FAITH BY THE SELLER, SEEK ACTUAL DAMAGES
PROVIDED BUYER’S DAMAGES SHALL BE LIMITED TO ACTUAL DAMAGES IN AN AMOUNT NOT TO EXCEED $1,000,000.00, PLUS BUYER’S ATTORNEYS’ FEES AND COSTS TO ENFORCE THE PROVISIONS OF THIS SUBSECTION 15(B)(ii), OR (II) FILE SUIT WITHIN THIRTY
(30) DAYS AFTER THE THEN SCHEDULED CLOSING DATE FOR SPECIFIC PERFORMANCE OF THIS AGREEMENT, PLUS ALL ATTORNEYS’ FEES AND COSTS OF BUYER TO ENFORCE THE PROVISIONS OF THIS SUBSECTION 15(b). BUYER’S FAILURE TO FILE A SUIT FOR SPECIFIC
PERFORMANCE WITH THIRTY (30) DAYS AFTER THE THEN SCHEDULED CLOSING DATE SHALL BE DEEMED A WAIVER OF SUCH REMEDY. BUYER AND SELLER HEREBY ACKNOWLEDGE AND AGREE THAT THE REMEDIES SET FORTH IN CLAUSE (I) AND CLAUSE (II) ABOVE ARE BUYER’S
SOLE AND EXCLUSIVE REMEDIES HEREUNDER IN RESPECT OF A MATERIAL BREACH OR MATERIAL DEFAULT BY THE SELLER IN THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT. BUYER AGREES TO, AND DOES HEREBY, WAIVE ALL OTHER REMEDIES AGAINST SELLER WHICH BUYER
MIGHT OTHERWISE HAVE AT LAW OR IN EQUITY BY REASON OF SUCH DEFAULT BY SELLER. 
 (iii) IN THE EVENT BUYER
TERMINATES THIS AGREEMENT FOR ANY REASON AS SET FORTH IN THIS SECTION 15(b), ESCROW AGENT SHALL IMMEDIATELY DISBURSE THE DEPOSIT TO BUYER. 
 (c) Cure Period. Notwithstanding the foregoing provisions of this Section 15, neither Buyer nor Seller shall have the right to exercise each of their respective remedies under Sections 15(a)
and (b) above, unless each has provided prior written notice to the other specifying in reasonable detail the nature of the default so claimed, and such other party has not cured such specified default within five (5) Business Days after
such receipt of notice (the “Cure Period”), in which case the Closing shall be adjourned, if necessary, from the then-scheduled Closing Date until the date which is five (5) Business Days after the expiration of the applicable Cure
Period. 

  
 36 

 (d) Effect of Termination. If this Agreement is terminated and the transactions
contemplated hereby are abandoned as described in this Section 15 or pursuant to any other provision hereof, this Agreement shall become void and of no further force and effect, except for the provisions of (i) Section 10(a) hereof
relating to the obligations of Buyer and Seller to keep confidential certain information and data obtained by them, (ii) Section 10(b) hereof relating to publicity, (iii) Section 18 relating to certain expenses,
(iv) Section 25 hereof relating to finder’s fees and broker’s fees, (v) this Section 15, and (vi) any other provision herein expressly stated to survive the termination of this Agreement. 

16. Independent Audit. Buyer may, at its sole cost and expense, engage a third-party certified public accountant to perform an audit of
Seller’s books and records which relate exclusively to the Property, including the historical financial statements of the Property, which audit shall include all disclosures required by generally accepted accounting principles and the
Securities and Exchange Commission regulations, specifically in accordance with Section 3.05 of Regulation S-X and all related rules and regulations thereof; provided, however, that (i) the completion of such audit shall not be a condition
precedent to Buyer’s obligation to close the transactions described in this Agreement, and (ii) Buyer shall promptly reimburse Seller for any reasonable out-of-pocket expenses incurred by Seller or any of its affiliates in connection with
such audit. Seller shall reasonably cooperate in connection with the performance of such audit and shall provide all information reasonably requested by the accountants performing such audit with respect to the Property, at no cost or expense to
Seller. In connection with such audit, Seller shall provide the accountants performing such audit with representation letters reasonably acceptable to Seller and such accountants, at no cost or expense to the Seller. The covenant of Seller with
respect to such audit as set forth in this Section 16 shall survive Closing for a period of ninety (90) days. 
 17. Knowledge.
Whenever this Agreement refers to “Seller’s knowledge,” “the knowledge of Seller” or other phrases of similar import, such phrases shall mean solely the actual knowledge (as opposed to “constructive” or
“implied” knowledge) of Neal Peskind, it being acknowledged by Buyer that the knowledge of the Hotel Manager is not being imputed to Seller for purposes of any representations, warranties and covenants of Seller set forth in this
Agreement. Whenever this Agreement refers to “Buyer’s knowledge,” “the knowledge of Buyer,” or other phrases of similar import, such phrases shall mean the actual knowledge of D. Rick Adams, Vice President of Buyer.

 18. Expenses. Whether or not the transactions contemplated hereby are consummated, and except as otherwise specifically provided in
this Agreement, all costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the Party incurring such costs or expenses. 
 19. Amendment and Waiver. This Agreement may be amended, or any provision of this Agreement may be waived; provided that any such amendment or waiver shall be binding upon Seller only if set forth
in a writing executed by Seller and referring specifically to the provision alleged to have been amended or waived, and any such amendment or waiver shall be binding upon Buyer only if set forth in a writing executed by Buyer and referring
specifically to the provision alleged to have been amended or waived. No course of dealing between or among any persons having any interest in this Agreement shall be deemed effective to modify, amend or discharge any part of this Agreement or any
rights or obligations of any person under or by reason of this Agreement. 

  
 37 

 20. Notices. All notices or other communications required or permitted to be given hereunder shall be
in writing and shall be delivered by hand or sent by telecopy, or sent, postage prepaid, by registered, certified or express mail, or reputable overnight courier service and shall be deemed given when so delivered by hand, or telecopied, or if
mailed, three days after mailing (one business day in the case of express mail or overnight courier service), as follows: 
 (i) if to Buyer, 
 CHSP Union Square LLC 

c/o Chesapeake Lodging Trust 
 1997 Annapolis Exchange Parkway, Suite 410 
 Annapolis, MD 21401

 Attention: Graham J. Wootten 

Facsimile No. (410) 972-4180 

with a required copy to: 
 c/o Chesapeake Lodging Trust 
 1997 Annapolis Exchange Parkway,
Suite 410 
 Annapolis, MD 21401 

Attention: D. Rick Adams 
 Facsimile No. (410) 972-4180 
 (ii) if to Seller, 

SC Hotel Partners, LLC 
 c/o DLJ Real Estate Capital Partners, Inc. 

590 Madison Avenue, 8th Fl. 
 New York, NY 10010 
 Attention: Carmine Fanelle 

Facsimile No.: (646) 935-7943 

and to: 
 SC Hotel Partners, LLC 
 c/o BetaWest, Ltd. 

1050 17th Street, Suite 350 
 Denver, CO 80265 
 Attention: Neal Peskind 

with a copy to: 
 Brownstein Hyatt Farber Schreck, LLP 
 410 17th Street, Suite 2200

 Denver, Colorado 80202 

Attn: Lea Ann T. Fowler, Esq. 
 Facsimile Number: (303) 223-0982 

  
 38 

 (iii) if to Escrow Agent, 

Terra Nova Title & Settlement Services 

1725 DeSales Street, NW, Suite 401 

Washington, DC 20036 
 Attention: Christopher Clarke 
 Facsimile Number:
(202) 331-0905 
 21. Interpretation. The headings and captions contained in this Agreement, in any Exhibit or Schedule hereto and
in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized terms used in any Schedule or Exhibit and not otherwise defined therein shall
have the meanings set forth in this Agreement. The use of the word “including” herein shall mean “including without limitation.” 
 22. No Strict Construction. Notwithstanding the fact that this Agreement has been drafted or prepared by one of the parties, Buyer and Seller confirm that both they and their respective counsel
have reviewed, negotiated and adopted this Agreement as the joint agreement and understanding of the parties, and the language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and
no rule of strict construction shall be applied against any person. 
 23. Counterparts. This Agreement may be executed in one or more
counterparts (including by means of telecopied signature pages), all of which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to the
other party. 
 24. Entire Agreement. This Agreement and the other agreements referred to herein contain the entire agreement and
understanding between the parties hereto with respect to the subject matter hereof and supersede all prior agreements and understandings, whether written or oral, relating to such subject matter. 

25. Brokerage. Buyer and Seller each hereby represents to the other that such party has not used a broker or finder in connection with the
transactions contemplated by this Agreement, and there are no claims for brokerage commissions, finders’ fees or similar compensation in connection with the transactions contemplated by this Agreement based on any arrangement or agreement by or
an behalf of such party. Each party shall indemnify and hold the other party harmless for any breach of its representation in this Section 25. 
 26. Disclaimer Regarding Projections. In connection with Buyer’s investigation of the Property, Buyer may have received from or on behalf of Seller certain projections, including projected
statements of operating revenues of the Hotel for the fiscal year ending 2010 and subsequent years and certain business plan information for such fiscal year and succeeding fiscal years. Buyer acknowledges that there are uncertainties inherent in
attempting to make such estimates, projections and other forecasts and plans, that Buyer is familiar with such uncertainties, that, except as otherwise expressly set forth herein, Buyer is taking full

  
 39 

 
responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections and other forecasts and plans so furnished to it (including the reasonableness of the
assumptions underlying such estimates, projections and forecasts), and that, except as otherwise expressly set forth herein, Buyer shall have no claim against Seller with respect thereto. Accordingly, except as otherwise expressly set forth herein,
Seller makes no representation or warranty with respect to such estimates, projections and other forecasts and plans (including the reasonableness of the assumptions underlying such estimates, projections and forecasts). 

27. Schedules. The disclosures in the Schedules hereto are to be taken as relating to the representations and warranties of Seller as a whole. The
inclusion of information in the Schedules hereto shall not be construed as an admission that such information is material to the Property, the operation of the Hotel or Seller. In addition, matters reflected in the Schedules are not necessarily
limited to matters required by this Agreement to be reflected in such Schedules. Such additional matters are set forth for informational purposes only. 
 28. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be valid and effective under applicable law, but if any provision of this Agreement
or the application of any such provision to any person or circumstance shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provision hereof. 
 29. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the
State of California applicable to agreements made and to be performed entirely within such State, without regard to the conflicts of law principles of such State. 
 30. Bulk Sale Transfer Laws. The parties hereto believe that the sale of the Property is exempt from any bulk sales laws contained in the Uniform Commercial Code in effect or otherwise in the State
of California (the “Bulk Sales Laws”). To the extent such laws are applicable and Seller is required to comply with the Bulk Sales Laws in connection with the transaction contemplated by this Agreement, Seller agrees to indemnify and hold
Buyer harmless from and against any and all losses, costs, liens, claims, liabilities or damages, (including, but not limited to, reasonable attorneys’ fees and disbursements) sustained by Buyer with respect to Seller’s failure to comply
with its obligations under the Bulk Sales Laws; provided, however, that Seller shall not be required to indemnify Buyer with respect to (a) any liabilities expressly assumed by Buyer pursuant to this Agreement, (b) any items
apportioned pursuant to Section 4(e) of this Agreement, or (c) any matters as to which Buyer is already indemnified. Nothing in this paragraph or this Agreement, however, shall estop or prevent either Buyer or Seller from asserting as a
bar or defense to any action or proceeding brought under the Bulk Sales Laws that it does not apply to the sale contemplated under this Agreement. This Section 30 shall survive the Closing or termination of this Agreement. 

31. Exhibits and Schedules. All Exhibits and Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth in full herein. 
 32. Recording. Neither this Agreement nor any notice or memorandum thereof shall be recorded
in any real property records for any jurisdiction. Any such recordation shall constitute a default under this Agreement by the recording party. 

  
 40 

 33. Time of the Essence. Time is of the essence in this Agreement and the transaction contemplated
herein. 
 34. Calculation of Time Periods. In the calculation of any period of time provided for in this Agreement or by law, the day of
the act or event from which such period of time runs shall be excluded and the last day of such period shall be included. Notwithstanding the foregoing, if the expiration of any period or time for performance hereunder falls on a Saturday, Sunday,
or legal holiday observed by the Title Company, the expiration of such period or time for performance shall be extended to the next business day. 
 35. Injunctive Relief, Trial by Jury, Etc. To the extent permitted by applicable law, Seller and Buyer each hereby expressly and unconditionally waives, in connection with any suit, action or
proceeding brought by Seller or Buyer in connection with this Agreement any and every right it may have to (i) A TRIAL BY JURY, or (ii) interpose any crossclaim, counterclaim or right of setoff of any nature whatsoever in any litigation
relating to this Agreement (other than a counterclaim which can only be maintained in this suit, action or proceeding brought by Seller or Buyer or any mandatory or compulsory counterclaim). This Section 35 shall survive the Closing or
termination of this Agreement. 
 36. Attorneys’ Fees. If any action is brought by either Buyer or Seller relating to this Agreement
or the transaction contemplated hereby, each party shall pay its own attorneys’ fees, costs and expenses incurred in such action. In addition, if either Buyer or Seller brings any suit or other proceeding, with respect to the subject matter or
the enforcement of this Agreement, the prevailing party (as determined by the court, agency, arbitrator or other authority before which such suit or proceeding is commenced), in addition to such other relief as may be awarded, shall be entitled to
recover reasonable attorneys’ fees, expenses and costs of investigation actually incurred. The foregoing includes attorneys’ fees, expenses and costs of investigation (including those incurred in appellate proceedings), costs incurred in
establishing the right to indemnification, or in any action or participation in, or in connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code (11 United States Code Sections 101 et seq.), or any successor statutes.
This Section 36 shall survive the Closing or termination of this Agreement. This provision is separate and several, and shall survive the merger of this provision into any judgment. 
 37. [Intentionally Deleted] 
 38. Tax Appeal Proceedings. Seller may be entitled to receive
and retain the proceeds from any tax appeals or protests for taxes due and payable prior to the year in which the Closing Date occurs. After the date hereof, Seller shall not, without the prior consent of Buyer which consent may be withheld in
Buyer’s sole discretion, commence any new real property tax appeals or protests or settle or compromise any ongoing tax appeals or protests, with respect to real property taxes due and payable for the tax year in which the Closing Date occurs
or thereafter. The net proceeds from any proceedings for real property taxes due and payable in the tax year in which the Closing Date occurs, after payment of attorneys’ fees and other costs and any amounts payable to third parties including,
but not limited to, legal fees and disbursements and consultant and expert witness fees, will be prorated, as of the Closing Date, between the Parties when received. Buyer and Seller shall each be entitled to prompt notice from the other Party

  
 41 

 
concerning the initiation of any such proceeding after the date hereof and, except as otherwise hereinabove expressly set forth, neither Party shall settle any appeal or protest for any period,
including the tax year in which the Closing occurs, without the prior consent of the other Party, which consent may not be unreasonably withheld or delayed. This Section 38 shall survive the Closing or termination of this Agreement. 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

  
 42 

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

			
	SELLER:
	
	 SC HOTEL PARTNERS, LLC,
 a Delaware limited liability company

		
	By:	 	/s/ Neal Peskind
	Name:	 	Neal Peskind
	Title:	 	Authorized Signatory

  

			
	BUYER:
	
	 CHSP UNION SQUARE LLC,
 a Delaware limited liability company

		
	By:	 	/s/ D. Rick Adams
	Name:	 	D. Rick Adams
	Title:	 	Vice President

  

			
	The undersigned has executed this Agreement solely to confirm its acceptance of the duties of the Escrow Agent as set forth in Section 2(b)
hereof.
	
	TERRA NOVA TITLE & SETTLEMENT SERVICES
		
	By:	 	/s/ Christopher Clarke
	Name:	 	Christopher Clarke
	Title:	 	President

  

 EXHIBIT A 
 DEFINITIONS 
 “Accounting Firm” shall have the meaning set forth in
Section 4(e)(xii) hereof. 
 “Additional Deposit” shall have the meaning set forth in Section 2(a) hereof. 

“Agreement” shall have the meaning set forth in the Preamble hereof. 
 “Aggregate Cash Amount” shall have the meaning set forth in Section 4(e)(ix) hereof. 
 “Assumed Liabilities” shall have the meaning set forth in Section 1(d) hereof. 

“Audit Notice” shall have the meaning set forth in Section 4(e)(xii) hereof. 
 “Authorizations” shall mean all licenses, permits, permissions and approvals required by any Governmental Authority, with respect to the construction, ownership, operation, leasing, maintenance,
or use of the Property or any part thereof, including all building permits, certificates of occupancy, subdivision maps or plats, land sale registrations, conditional use permits, , zoning permits and approvals, special use permits, environmental
impact statements, and all other entitlements, used in or relating to the Hotel. 
 “Books and Records” shall have the meaning set
forth in Section 1(b)(vii) hereof. 
 “Bulk Sales Law” shall have the meaning set forth in Section 30 hereof. 

“Business Day” shall mean any day other than a Saturday, Sunday or other day on which banks are authorized or required by law to be closed in
San Francisco, California. 
 “Buyer” shall have the meaning set forth in the Preamble hereof. 

“Buyer Parties” shall have the meaning set forth in Section 12(a) hereof. 
 “Buyer Waived Breach” shall have the meaning set forth in Section 12(c) hereof. 

“Cap Limitation” shall have the meaning set forth in Section 12(c) hereof. 
 “CERCLA” shall have the meaning set forth in Section 8(b)(iv) hereof. 

“Claims Notice” shall have the meaning set forth in Section 12(d) hereof. 
 “Closing” shall have the meaning set forth in Section 4(a) hereof. 
 “Closing
Date” shall have the meaning set forth in Section 4(a) hereof. 
 “Closing Statement” shall have the meaning set forth in
Section 4(e)(xii) hereof. 
 “Confidential Information” shall have the meaning set forth in Section 10(a) hereof.

  

 “Consumable Inventory” shall mean all office, cleaning, engineering, laundry and valet supplies;
decorations, advertising and promotional materials and supplies; and any and all usable inventory owned by Seller and used by guests of the Property for consumption or usage in the course of their stay, including: printing and stationery, guest
supplies (including soap, matches, toilet and facial tissues); maintenance and housekeeping supplies; linens, towels, china, glassware, tablecloths, napkins, and all usable food and beverages, and provided Buyer or Hotel Manager has obtained valid
liquor licenses in accordance with all applicable laws, including, beer, wine and liquor, all as may be permitted by applicable law, all as of the date hereof located at and used in the operation of the Property as a going concern, subject to such
depletion and including such resupplies as shall occur as herein expressly permitted in the ordinary course of business between the date hereof and the Closing. Consumable Inventory shall include items in use and in inventory or storerooms at the
Property or as otherwise held in reserve. 
 “Contracts” shall have the meaning set forth in Section 1(b)(v) hereof. 

“Costs or Losses” shall have the meaning set forth in Section 5(a)(i) hereof. 
 “Cut-Off Time” shall have the meaning set forth in Section 4(e) hereof. 

“Cure Period” shall have the meaning set forth in Section 15(c) hereof. 
 “Deed” shall have the meaning set forth in Section 4(c) hereof. 

“Deposit” shall have the meaning set forth in Section 2(a) hereof. 
 “Disclosure Schedules” shall have the meaning set forth in Section 3(e)(ii) hereof. 

“Effective Date” shall have the meaning set forth in the Preamble hereof. 
 “Environmental Laws” any and all local, state or federal statutes, laws, regulations and rules in effect on the Effective Date relating to the protection of the environment or to human health,
or regulating the manufacture, use or disposal of pollutants, contaminants or any other Hazardous Substances, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended from time to
time (42 U.S.C. § 9601 et seq.). 
 “Equipment Leases” shall have the meaning set forth in Section 1(b)(vi) hereof.

 “Escrow Agent” shall have the meaning set forth in Section 2(a) hereof. 

“Excluded Contract” shall have the meaning set forth in Section 3(f) hereof. 
 “Excluded Property” shall have the meaning set forth in Section 1(c) hereof. 

“Existing Survey Exceptions” shall have the meaning set forth in Section 3(b)(i) hereof. 

“Governmental Authority” shall mean any federal, state, county, municipal or other government or any governmental or quasi-governmental agency,
department, commission, board, bureau, officer or instrumentality, foreign or domestic, or any of them, having jurisdiction over Seller, Buyer or the Property. 

  
 A-2

 “Hazardous Substance” has the meaning set forth in Section 8(b)(iv) hereof. 

“Hotel” shall have the meaning set forth in Section 1(b)(ii) hereof. 
 “Hotel Management Agreement” shall mean that certain Management Agreement, dated as of October 22, 2001, between SC Hotel Partners, LLC, a Delaware limited liability company, and Hotel
Manager, as assigned under that certain Assignment and Assumption of Hotel Management Agreement dated effective September 1, 2010 by Hotel Manager to Joie de Vivre Hospitality, LLC, a Delaware limited liability company, pursuant to which the
Hotel Manager is to provide management and other services with respect to the Property. 
 “Hotel Manager” shall mean Joie De Vivre
Hospitality, LLC, a Delaware limited liability company, and its permitted successors and assigns. 
 “Immaterial Noncompliance” shall
have the meaning set forth in Section 5(a)(i) hereof. 
 “Improvements” shall have the meaning set forth in Section 1(b)(ii)
hereof. 
 “Initial Deposit” shall have the meaning set forth in Section 2(a). 

“Inspection Period” shall have the meaning set forth in Section 3(e)(i) hereof. 
 “Intangible Personal Property” shall have the meaning set forth in Section 1(b)(iv) hereof. 
 “Land” shall have the meaning set forth in Section 1(b)(i) hereof. 

“Limitation” shall have the meaning set forth in Section 12(c). 
 “Liquor License Owner” shall have the meaning set forth in Section 10(c) hereof. 

“Manager Estoppel” shall have the meaning set forth in Section 5(a)(v) hereof. 
 “Mandatory Cure Liens” shall have the meaning set forth in Section 3(c) hereof. 

“New Hotel Management Agreement” shall have the meaning set forth in Section 9(b). 

“New Objection Period” shall have the meaning set forth in Section 3(c) hereof. 
 “Objections” shall have the meaning set forth in Section 3(c) hereof. 

“Objection Period” shall have the meaning set forth in Section 3(c) hereof. 
 “Operational Taxes” shall have the meaning set forth in Section 4(e)(i)(2) hereof. 

“Parties” shall have the meaning set forth in Section 2(b)(i) hereof. 

  
 A-3

 “Permitted Exceptions” shall have the meaning set forth in Section 3(b) hereof. 

“Personal Property” shall mean collectively the Tangible Personal Property and the Intangible Personal Property. 

“Property” shall have the meaning set forth in Section 1(b) hereof. 
 “Purchase Orders” shall have the meaning set forth in Section 1(b)(v) hereof. 

“Purchase Price” shall have the meaning set forth in Section 2 hereof. 
 “Retained Liabilities” shall have the meaning set forth in Section 1(c)(v) hereof. 

“Scheduled Closing Date” shall have the meaning set forth in Section 4(a) hereof. 

“Seller” shall have the meaning set forth in the Preamble hereof. 
 “Seller Parties” shall have the meaning set forth in Section 12(b) hereof. 

“Seller’s Response Period” shall have the meaning set forth in Section 3(c) hereof. 

“Seller’s Survey” shall have the meaning set forth in Section 3(a) hereof. 
 “Service Contracts” shall have the meaning set forth in Section 1(b)(v) hereof. 

“Substantial Part” shall have the meaning set forth in Section 11(c) hereof. 
 “Survey” shall have the meaning set forth in Section 3(a)(ii) hereof. 

“Survival Period” shall have the meaning set forth in Section 12(d) hereof. 
 “Survival Obligations” shall have the meaning set forth in Section 12(d) hereof. 

“Tangible Personal Property” shall have the meaning set forth in Section 1(b)(iii) hereof. 

“Title Commitment” shall have the meaning set forth in Section 3(a)(i) hereof. 
 “Title Company” shall have the meaning set forth in Section 2(a) hereof. 

“Title Documents” shall have the meaning set forth in Section 3(a)(i) hereof. 
 “Title Policy” shall have the meaning set forth in Section 3(a)(i) hereof. 

“Vouchers” shall have the meaning set forth in Section 4(e)(iv) hereof. 

  
 A-4

 EXHIBIT B 
 LEGAL DESCRIPTION OF LAND 
 Real property in the City of San Francisco, County of San Francisco,
State of California, described as follows: 
 PARCEL ONE: 
 BEGINNING AT THE POINT OF THE NORTHERLY LINE OF GEARY STREET AND THE WESTERLY LINE OF SHANNON STREET; 
 RUNNING THENCE WESTERLY AND ALONG SAID LINE OF GEARY STREET, 56 FEET; 
 THENCE AT A RIGHT ANGLE
NORTHERLY 137 FEET, 4 INCHES; THENCE AT A RIGHT ANGLE EASTERLY 56 FEET, TO THE WESTERLY LINE OF SHANNON STREET; 
 THENCE AT A RIGHT ANGLE
SOUTHERLY, ALONG SAID LINE OF SHANNON STREET, 137 FEET, 4 INCHES TO THE POINT OF BEGINNING. 
 BEING PART OF 50 VARA BLOCK NO. 223. 

 PARCEL TWO: 
 AN
APPURTENANT, NON-EXCLUSIVE EASEMENT AND IRREVOCABLE LICENSE FOR FIRE EGRESS AND EMERGENCY ACCESS AND FOR GENERAL ACCESS, SUBJECT TO THE MAINTENANCE OF LOCK GATES BY GRANTOR, AND THE TERMS, PROVISIONS AND CONDITIONS, AS CONTAINED IN THAT CERTAIN
INSTRUMENT ENTITLED, “GRANT OF NON-EXCLUSIVE APPURTENANT EASEMENT AND IRREVOCABLE LICENSE”, DATED FEBRUARY 16, 1979, RECORDED FEBRUARY 23, 1979, IN BOOK C731 O.R., PAGE 399, EXECUTED BY RICHARD P. LIEBERMAN, ET UX, AS AN APPURTENANCE TO
PARCEL TWO, OVER THE FOLLOWING DESCRIBED PARCEL OF LAND: 
 “BEGINNING AT A POINT ON THE NORTHERLY LINE OF GEARY STREET, ONE HUNDRED AND
THIRTY-SEVEN (137) FEET, SIX (6) INCHES EASTERLY FROM THE POINT FORMED BY THE INTERSECTION OF THE EASTERLY LINE OF JONES STREET WITH THE NORTHERLY LINE OF GEARY STREET; THENCE AT A RIGHT ANGLE TO THE NORTHERLY LINE OF GEARY STREET,
NORTHERLY EIGHTY-SEVEN (87) FEET, SIX (6) INCHES; 
 THENCE AT A RIGHT ANGLE WESTERLY, ALONG THE NORTHERLY LINE OF MAGGIE ALLEY, FIVE
(5) FEET, ONE AND THREE-QUARTER (1-3/4) INCHES; 

  

 THENCE AT A RIGHT ANGLE SOUTHERLY EIGHTY-SEVEN (87) FEET, SIX (6) INCHES; 

THENCE EASTERLY, AT A RIGHT ANGLE, ALONG THE NORTHERLY LINE OF GEARY STREET, FIVE (5) FEET, ONE AND THREE-QUARTER (1-3/4) INCHES TO THE POINT OF
BEGINNING. 
 THAT SAID NON-EXCLUSIVE EASEMENT IS LIMITED VERTICALLY TO THE FULL EAST-WEST WIDTH OF THE EASEMENT AS FOLLOWS: 

BEGINNING AT THE NORTHERLY LINE OF GEARY STREET AT THE APPROXIMATE ELEVATION OF 90.50 FEET, SAN FRANCISCO DATUM; 

THENCE NORTHERLY, SIX (6) FEET, NO (0) INCHES HORIZONTALLY, RISING TO A LINE AT APPROXIMATE ELEVATION OF 90.88 FEET; 

THENCE NORTHERLY, SIXTY (60) FEET, NO (0) INCHES HORIZONTALLY, RISING TO A LINE AT APPROXIMATE ELEVATION 98.38 FEET; 

THENCE NORTHERLY, ELEVEN (11) FEET, SIX (6) INCHES HORIZONTALLY, DROPPING TO A LINE AT APPROXIMATE ELEVATION 98.33 FEET; 

THENCE NORTHERLY, TEN (10) FEET, NO (0) INCHES HORIZONTALLY, DROPPING TO THE NORTHERLY LINE OF MAGGIE ALLEY, AT APPROXIMATE ELEVATION OF 98.26
FEET, BEING THE FLOOR OF SAID EASEMENT; 
 THENCE RISING VERTICALLY, NINE (9) FEET AND TWO AND THREE-EIGHTS (2-3/8) INCHES TO A LINE AT
APPROXIMATE ELEVATION 107.46 FEET, SAN FRANCISCO DATUM, BEING THE NORTHERLY LIMIT OF SAID EASEMENT; 
 THENCE SOUTHERLY, TEN (10) FEET, NO
(0) INCHES HORIZONTALLY AT APPROXIMATE ELEVATION 107.46 FEET, SAN FRANCISCO DATUM; 
 THENCE DROPPING VERTICALLY ONE (1) FOOT, SIX
(6) INCHES TO APPROXIMATE ELEVATION 105.96 FEET; 
 THENCE SOUTHERLY, ZERO (0) FEET, FIVE AND ONE-HALF (5-1/2) INCHES HORIZONTALLY AT
APPROXIMATE ELEVATION 105.96 FEET; 
 THENCE RISING VERTICALLY ONE (1) FOOT, SIX (6) INCHES TO APPROXIMATE ELEVATION 107.46 FEET;

 THENCE SOUTHERLY, NINETEEN (19) FEET, FOUR AND ONE-QUARTER (4-1/4) INCHES HORIZONTALLY AT THE APPROXIMATE ELEVATION OF 107.46 FEET;

 THENCE DROPPING VERTICALLY, ONE (1) FOOT, EIGHT AND ONE-HALF (8-1/2) INCHES TO APPROXIMATE ELEVATION 105.75 FEET; 

THENCE SOUTHERLY, SIXTEEN (16) FEET, SEVEN (7) INCHES 
 HORIZONTALLY AT APPROXIMATE ELEVATION 105.75 FEET; 

  
 B-2

 THENCE DROPPING VERTICALLY, ONE (1) FOOT, EIGHT AND ONE-HALF (8-1/2) INCHES TO APPROXIMATE ELEVATION
104.04 FEET; 
 THENCE SOUTHERLY, SIXTEEN (16) FEET, SEVEN (7) INCHES AT APPROXIMATE ELEVATION 104.04 FEET; 

THENCE DROPPING VERTICALLY, ONE (1) FOOT, EIGHT AND ONE-HALF (8-1/2) INCHES TO APPROXIMATE ELEVATION 102.33 FEET; 

THENCE SOUTHERLY, SIXTEEN (16) FEET, SEVEN (7) INCHES HORIZONTALLY AT APPROXIMATE ELEVATION 102.33 FEET; 

THENCE DROPPING VERTICALLY, ONE (1) FOOT, ELEVEN AND ONE-HALF (11-1/2) INCHES TO APPROXIMATE ELEVATION 100.38 FEET; 

THENCE SOUTHERLY, FOUR (4) FEET, FOUR AND THREE-QUARTERS (4-3/4) INCHES HORIZONTALLY AT APPROXIMATE ELEVATION 100.38 FEET; 

THENCE DROPPING VERTICALLY ONE (1) FOOT, TWO (2) INCHES TO APPROXIMATE ELEVATION 99.21 FEET; 

THENCE SOUTHERLY, FOUR (4) FEET, NO (0) INCHES TO THE NORTHERLY LINE OF GEARY STREET AT APPROXIMATE ELEVATION 99.21 FEET, BEING THE ROOF OF
SAID EASEMENT; 
 THENCE DROPPING VERTICALLY ON THE NORTHERLY LINE OF GEARY STREET, EIGHT (8)FEET, EIGHT AND FIVE EIGHTHS (8-5/8) INCHES TO
APPROXIMATE ELEVATION 90.50 FEET, SAN FRANCISCO, DATUM, BEING THE SOUTHERLY LIMIT OF SAID EASEMENT.”  
 PARCEL THREE:

 BEGINNING AT THE POINT OF INTERSECTION OF THE NORTHERLY LINE OF GEARY STREET WITH THE EASTERLY LINE OF SHANNON STREET; RUNNING THENCE
EASTERLY ALONG SAID LINE OF GEARY STREET, 56 FEET; THENCE AT A RIGHT ANGLE NORTHERLY 112 FEET AND 6 INCHES; THENCE AT A RIGHT ANGLE WESTERLY 56 FEET TO SAID EASTERLY LINE OF SHANNON STREET; THENCE AT A RIGHT ANGLE SOUTHERLY, ALONG SAID LINE OF
SHANNON STREET, 112 FEET AND 6 INCHES TO THE POINT OF BEGINNING. 
 BEING A PORTION OF 50 VARA BLOCK NO. 223. 

  
 B-3

 EXHIBIT C 
 BILL OF SALE AND ASSIGNMENT 
 BILL OF SALE AND ASSIGNMENT dated as of
            , 2011, by SC HOTEL PARTNERS, LLC, a Delaware limited liability company (“Seller”), in connection with that certain Purchase and Sale Agreement, dated as of
            , 2011 (the “Purchase Agreement”) by and between Seller and CHSP UNION SQUARE LLC, a Delaware limited liability company (“Buyer”). It is a condition
precedent to Buyer’s obligations under the Purchase Agreement that Seller deliver this Bill of Sale and Assignment to Buyer. 
 Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Purchase Agreement. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller hereby agrees as follows: 

1. Seller hereby sells, transfers and assigns to Buyer, and its successors and assigns, and Buyer hereby accepts, all of Seller’s
right, title and interest in the Personal Property as more particularly described in Exhibit “A” attached hereto and incorporated herein by reference, and the Books and Records (hereinafter, collectively, the “Transferred
Property”). 
 2. Seller hereby covenants and agrees to execute and deliver to Buyer such instruments of sale, transfer,
conveyance, assignment and delivery, and such consents, assurances, powers of attorney and other instruments as may be reasonably requested by Buyer or its counsel in order to vest in Buyer all right, title and interest of Seller in and to the
Transferred Property and otherwise in order to carry out the purpose and intent of this Bill of Sale and Assignment and the Purchase Agreement. 
 3. Notwithstanding any other provision of this Bill of Sale and Assignment to the contrary, nothing contained in this Bill of Sale and Assignment shall in any way supersede, modify, replace, amend,
change, rescind, waive, exceed, expand, enlarge or in any way affect the provisions, including the warranties, covenants, agreements, conditions and representations, or any of the rights and remedies, or any of the obligations and indemnifications
of Seller and the Buyer set forth in the Purchase Agreement nor shall this Bill of Sale and Assignment expand or enlarge any remedies under the Purchase Agreement including without limitation any limits on indemnification specified therein. This
Bill of Sale and Assignment is intended only to effect the transfer of certain property to be transferred pursuant to the Purchase Agreement and shall be governed entirely in accordance with the terms and conditions of the Purchase Agreement.

 4. This instrument is being executed by the Seller and shall be binding upon the Seller, its successors and assigns, for the
uses and purposes above set forth and referred to, and shall be effective as of the date first set forth above. 
 5. This
instrument shall be governed by and enforced in accordance with the laws of the State of California, without regard to its conflict of law provisions. 

 IN WITNESS WHEREOF, Seller has caused this Bill of Sale and Assignment to be executed and
delivered on the date and year first written above. 
  

			
	 SC HOTEL PARTNERS, LLC,
 a Delaware limited liability company

		
	By:	 	 
	Name:	 	Neal Peskind
	Title:	 	Authorized Signatory

  
 C-2

 EXHIBIT D 
 ASSIGNMENT AND ASSUMPTION OF CONTRACTS, PURCHASE ORDERS AND 
 EQUIPMENT LEASES

 THIS ASSIGNMENT AND ASSUMPTION dated             ,
20     (the “Assignment”), is entered into by and between SC HOTEL PARTNERS, LLC, a Delaware limited liability company (“Assignor”), and CHSP UNION SQUARE LLC, a Delaware limited liability company
(“Assignee”). 
 WITNESSETH: 
 WHEREAS, Assignor and Assignee entered into that certain Purchase and Sale Agreement, dated as of             , 2011 (the “Purchase
Agreement”). Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Purchase Agreement. 
 WHEREAS, Assignor is a party to those certain Contracts, Purchase Orders and Equipment Leases described in the Purchase Agreement (collectively the “Agreements”) including, without limitation,
those Contracts and Equipment Leases set forth on Exhibit A attached hereto with respect to that certain real property located at              in
            ,             ; and 
 WHEREAS, Assignor desires to assign its interest in the Agreements and the Assumed Liabilities (as defined in the Purchase Agreement) to Assignee, and Assignee desires to accept the assignment thereof and
assume the obligations of Assignor thereunder; 
 NOW, THEREFORE, in consideration of the promises and conditions contained
herein, the parties hereby agree as follows: 
 1. Effective as of the date hereof, Assignor hereby assigns to Assignee all of
its right, title and interest in and to the Agreements, including, without limitation, any and all rents, issues and profits deriving therefrom and security deposits thereunder; provided, however, Assignor shall remain liable for and shall pay,
perform and discharge any obligations accruing under the Agreements prior to the date hereof. 
 2. Assignee hereby accepts the
foregoing assignment and assumes and shall pay, perform and discharge all of the Assignor’s obligations under the Agreements accruing on or after the date hereof. 
 3. Notwithstanding any other provision of this Assignment to the contrary, nothing contained in this Assignment shall in any way supersede, modify, replace, amend, change, rescind, waive, exceed, expand,
enlarge or in any way affect the provisions, including the warranties, covenants, agreements, conditions and representations, or any of the rights and remedies, or any of the obligations and indemnifications of Assignor and the Assignee set forth in
the Purchase Agreement nor shall this Assignment expand or enlarge any remedies under the Purchase Agreement including without limitation any limits on indemnification specified therein. This Assignment is intended only to effect the assignment and
assumption of certain rights to be assigned and assumed pursuant to the Purchase Agreement and shall be governed entirely in accordance with the terms and conditions of the Purchase Agreement. 

 4. This Assignment shall be binding on and inure to the benefit of the parties hereto, their
heirs, executors, administrators, successors in interest and assigns. 
 5. This Assignment may be executed in counterparts,
each of which shall be deemed to be an original and all of which shall be deemed to be one and the same instrument. 
 6. This
instrument shall be governed by and enforced in accordance with the laws of the State of California, without regard to its conflict of law provisions. 
 IN WITNESS WHEREOF, the Assignor and Assignee have executed this Assignment the day and year first above written. 

 

			
	ASSIGNOR:
	
	 SC HOTEL PARTNERS, LLC,
 a Delaware limited liability company

		
	By:	 	 
	Name:	 	Neal Peskind
	Title:	 	Authorized Signatory
	
	ASSIGNEE:
	
	 CHSP UNION SQUARE LLC,
 a Delaware limited liability company

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  
 D-2

 EXHIBIT E 
 FORM OF GRANT DEED 
 RECORDING REQUESTED BY:

                        
TITLE INSURANCE COMPANY 
 WHEN RECORDED MAIL TO: 

[BUYER] 
 [BUYER ADDRESS] 

Attn:
                                 

MAIL TAX STATEMENTS TO: 
 _____________________________ 
 _____________________________ 

_____________________________ 
 Attn:
                                         
                
 -----------------------SPACE
ABOVE THIS LINE FOR RECORDER’S USE---------------------- 
 APN:
                                         
    
 Address:
                                     

GRANT DEED 
 FOR
VALUABLE CONSIDERATION, receipt of which is acknowledged, SC HOTEL PARTNERS L.L.C., a Delaware limited liability company (“Grantor”) 
 grants to 

                         
                           , a
                                     (“Grantee”)
that certain real property located in the City of San Francisco, County of San Francisco, State of California, as more particularly described on Exhibit A attached to this Grant Deed (the “Property”), subject to
(i) non-delinquent real property taxes and assessments, (ii) all matters that can be ascertained by an accurate survey of the Property, and (iii) all matters of record, including the matters set forth on Exhibit B attached to
this Grant Deed. 
 Grantor has executed this Grant Deed as of this
             day of              2011. 

 

			
	GRANTOR:
	
	 [SELLER NAME],
 a
Delaware limited liability company

		
	By:	 	 
	Name:	 	 
	Position:	 	 

 EXHIBIT A TO GRANT DEED 

LEGAL DESCRIPTION 

  
 E-2

 EXHIBIT B TO GRANT DEED 

TITLE EXCEPTIONS 

  
 E-3

			
	 STATE OF ________________
	  	)
		  	)
	 COUNTY OF
                                  
	  	)

 On             
            , 2011, before me,
                                         
   , Notary Public, personally appeared
                                         
       , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized
capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. 
 I certify under PENALTY OF PERJURY under the laws of the State of
                                 that the foregoing paragraph is true and correct.

 WITNESS my hand and official seal. 

 

	
	  
	Signature of Notary

 (SEAL) 
 CAPACITY CLAIMED BY SIGNER: 
  

							
	[ ]	  	Individual(s)	 	[ ]	  	Attorney-In-Fact
				
	[ ]	  	Partner(s)	 	[ ]	  	Subscribing Witness
				
	[ ]	  	Trustee(s)	 	[ ]	  	Guardian/Conservator
				
	[ ]	  	Corporate ____________________	 	[ ]	  	Other: ____________________
			
		  	Officer(s) ____________________	 	______________________________
		
	Title(s)	 	______________________________

  
 E-4

 STATEMENT OF DOCUMENTARY TRANSFER TAX 

[to be affixed to Grant Deed] 

June     , 2011 

Recorder’s Office of San Francisco County, California 
 In accordance with Section 11932 of the California Revenue and Taxation Code, the undersigned hereby requests that this statement of documentary transfer tax not be recorded with the attached Grant
Deed (the “Deed”) but be affixed to the Deed after recordation and be returned as directed on the Deed. The Deed names              LLC, a Delaware limited liability
company, as grantee. The property that is the subject of the Deed is located in the City of San Francisco, County of San Francisco, State of California. 
 The documentary transfer tax amount, for the attached Deed is $             computed on the full value of the property. 

 

	
	SELLER SIGNATURE

  
 E-5

 EXHIBIT F 
 ENTITY TRANSFEROR 
 FOREIGN INVESTORS REAL PROPERTY 

TAX ACT CERTIFICATION AND AFFIDAVIT 
 Section 1445 of the Internal Revenue Code of 1986, as amended (the “Code”), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a
foreign person. [For U.S. tax purposes, the owner of a disregarded entity will be the transferor of the property and not such disregarded entity.] To inform              (the
“Transferee”) that withholding of tax is not required upon disposition of a U.S. real property interest by [            ], a
[            ] (“Transferor”) [wholly owned by              (“Parent”)], the
undersigned hereby certifies the following on behalf of Transferor/[Parent]: 
 1. Transferor/[Parent] is not a foreign
corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and Income Tax Regulations); 
 2. Transferor’s/[Parent’s] U.S. Employer identification number is                     .

 3. Transferor/[Parent] has an address
[                                        ]

 4. The address of the subject property is
                                        .

 5. Transferor[/Parent] is not a “disregarded entity” as defined in IRS Regulation 1.1445-2(b)(iii). 

6. [Transferor is an entity disregarded as separate from Parent for U.S. federal income tax purposes.] 

7. Transferor/[Parent] understands that this Certification may be disclosed to the Internal Revenue Service by Transferee and that any
false statement contained herein could be punished by fine, imprisonment or both. 
 Under penalty of perjury, I declare that I have examined
this Certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have the authority to sign this document on behalf of Transferor/[Parent]. 

 

			
	                 , 2011
	
	[_________________________________]
		
	By:	 	  
	Name:	 	
	Title:	 	

 Schedule 6(g) 
 Contracts 
 [TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE

 PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(h) 
 Intentionally Deleted 

Schedule 6(i) 
 Equipment Leases 
 [TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH
THE 
 PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(m) 
 Environmental Matters 

[TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE 

PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(n) 
 Adverse Actions or Proceedings 

[TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE 

PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(o) 
 Insurance 

[TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE 

PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(p) 
 Authorizations 

[TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE 

PROVISIONS OF THIS AGREEMENT] 

 Schedule 6(q) 
 Employee Matters 
 [TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH
THE 
 PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(r) 
 Reserves 

[TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE 

PROVISIONS OF THIS AGREEMENT] 
 Schedule 6(s) 
 Tax Certiorari Appeals 

[TO BE PROVIDED DURING THE INSPECTION PERIOD IN ACCORDANCE WITH THE 

PROVISIONS OF THIS AGREEMENT]

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