Document:

Document

Exhibit 10.2

HARMONIC INC.
1995 STOCK PLAN
(Amended and Restated, June 9, 2022)
1)Purposes of the Plan. The purposes of this Stock Plan are:
(a)to attract and retain the best available personnel for positions of substantial responsibility, 

(b)to provide additional incentive to Employees and Consultants, and 

(c)to promote the success of the Company’s business. 

Awards granted under the Plan may be Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Performance Shares, Performance Units or Deferred Stock Units, as determined by the Administrator at the time of grant. 

2)Definitions.  As used herein, the following definitions shall apply: 
(a)“Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the Plan. 

(b)“Applicable Laws” means the legal requirements relating to the administration of equity compensation plans under state corporate and securities laws and the Code. 

(c)“Annual Revenue” means the Company’s or a business unit’s net sales for the Fiscal Year, determined in accordance with generally accepted accounting principles; provided, however, that prior to the Fiscal Year, the Administrator shall determine whether any significant item(s) shall be excluded or included from the calculation of Annual Revenue with respect to one or more Participants. 

(d)“Award” means, individually or collectively, a grant under the Plan of Options, Restricted Stock, Stock Appreciation Rights, Performance Shares, Performance Units or Deferred Stock Units. 

(e)“Award Agreement” means the written agreement setting forth the terms and provisions applicable to each Award granted under the Plan.  The Award Agreement is subject to the terms and conditions of the Plan. 

(f)“Awarded Stock” means the Common Stock subject to an Award. 

(g)“Board” means the Board of Directors of the Company. 

(h)“Cash Position” means the Company’s level of cash and cash equivalents. 

(i)“Code” means the Internal Revenue Code of 1986, as amended.

(j)“Committee” means a Committee of Board members appointed by the Board in accordance with Section 4 of the Plan. 
(k)“Common Stock” means the Common Stock of the Company. 
(l)“Company” means Harmonic Inc., a Delaware corporation. 
(m)“Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services and who is compensated for such services.
    -1-

(n)“Continuous Status as an Employee or Consultant” means that the employment or consulting relationship with the Company, any Parent, or Subsidiary, is not interrupted or terminated.  Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor.  A leave of absence approved by the Company shall include sick leave, military leave, or any other personal leave approved by an authorized representative of the Company.  For purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. 

(o)“Deferred Stock Unit” means a deferred stock unit Award granted to a Participant pursuant to Section 15. 

(p)“Director” means a member of the Board. 

(q)“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code. 

(r)“Earnings Per Share” means as to any Fiscal Year, the Company’s or a business unit’s Net Income, divided by a weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in accordance with generally accepted accounting principles. 

(s)“Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.  Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

(t)“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

(u)“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

(i)If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Market, the Nasdaq Global Select Market or the Nasdaq Capital Market, the Fair Market Value of a Share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such system or exchange (or the exchange with the greatest volume of trading in Common Stock) on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(ii)If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported); or 

(iii)In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 

(v)“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

(w)“Net Income” means as to any Fiscal Year, the income after taxes of the Company for the Fiscal Year determined in accordance with generally accepted accounting principles, provided that prior to the Fiscal Year, the Administrator shall determine whether any significant item(s) shall be included or excluded from the calculation of Net Income with respect to one or more Participants. 

(x)“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 

(y)“Notice of Grant” means a written notice evidencing certain terms and conditions of an individual Option or Stock Purchase Right grant.  The Notice of Grant is part of the Option Agreement. 

    -2-

(z)“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 

(aa)“Operating Cash Flow” means the Company’s or a business unit’s sum of Net Income plus depreciation and amortization less capital expenditures plus changes in working capital comprised of accounts receivable, inventories, other current assets, trade accounts payable, accrued expenses, product warranty, advance payments from customers and long-term accrued expenses, determined in accordance with generally acceptable accounting principles. 

(bb)“Operating Income” means the Company’s or a business unit’s income from operations but excluding any unusual items, determined in accordance with generally accepted accounting principles. 

(cc)“Option” means a stock option granted pursuant to the Plan. 

(dd)“Option Agreement” means a written agreement between the Company and a Participant evidencing the terms and conditions of an individual Option grant.  The Option Agreement is subject to the terms and conditions of the Plan. 

(ee)“Parent” means a “parent corporation”, whether now or hereafter existing, as defined in Section 424(e) of the Code. 

(ff)“Participant” means the holder of an outstanding Award granted under the Plan. 

(gg)“Performance Share” means a performance share Award granted to a Participant pursuant to Section 13. 

(hh)“Performance Unit” means a performance unit Award granted to a Participant pursuant to Section 14.

(ii)“Plan” means this Harmonic Inc. 1995 Stock Plan.

(jj)“Restricted Stock” means Shares granted pursuant to Section 12 of the Plan. 

(kk)“Return on Assets” means the percentage equal to the Company’s or a business unit’s Operating Income before incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles. 

(ll)“Return on Equity” means the percentage equal to the Company’s Net Income divided by average stockholder’s equity, determined in accordance with generally accepted accounting principles. 

(mm)“Return on Sales” means the percentage equal to the Company’s or a business unit’s Operating Income before incentive compensation, divided by the Company’s or the business units, as applicable, revenue, determined in accordance with generally accepted accounting principles.

(nn)“Rule l6b-3” means Rule l6b-3 of the Exchange Act or any successor to Rule l6b-3, as in effect when discretion is being exercised with respect to the Plan.

(oo)“Section 16(b)” means Section 16(b) of the Securities Exchange Act of 1934, as amended. 

(pp)“Share” means a share of the Common Stock, as adjusted in accordance with Section 17 of the Plan. 

(qq)“Stock Appreciation Right” or “SAR” means an Award granted pursuant to Section 11 hereof. 

(rr)“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 

(ss)“Total Shareholder Return” means the total return (change in share price plus reinvestment of any dividends) of a Share. 

    -3-

3)Stock Subject to the Plan. 
(a)General.  Subject to the provisions of Section 17 of the Plan, the maximum aggregate number of Shares which may be issued under the Plan is 54,900,000 Shares, plus any shares subject to options under the Company’s 1999 Non-Statutory Stock Plan that were outstanding as of May 27, 2004 that expire unexercised, up to an additional maximum of 1,800,000 Shares.  The Shares may be authorized, but unissued, or reacquired Common Stock. 

(b)Full Value Awards.  Any Shares subject to Awards granted with an exercise price less than the Fair Market Value on the grant date of grant will be counted against the numerical limits of this Section 3 as (a) one and one-half (1.5) Shares for every one (1) Share subject thereto with respect to any such Award granted prior to June 5, 2019 and (b) one (1) Share for every one (1) Share subject thereto with respect to any such Award granted on or after June 5, 2019.  Further, if Shares subject to any such Award do not vest and therefore are forfeited to or repurchased by the Company and would therefore return to the Plan pursuant to Section 3(c), (a) one and one-half (1.5) times the number of Shares so forfeited or repurchased with respect to any such Award granted prior to June 5, 2019 and (b) one (1) times the number of Shares with respect to any such Award granted on or after June 5, 2019 will return to the Plan and will again become available for issuance. 

(c)Lapsed Awards.  If an Award expires or becomes unexercisable without having been exercised in full or, with respect to Restricted Stock.  Restricted Stock Units, Performance Shares, Performance Units or Deferred Stock Units, is forfeited to or repurchased by the Company by virtue of it not vesting, the unpurchased Shares (or for Awards other than Options and Stock Appreciation Rights, the forfeited or repurchased Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).  Upon exercise of a Stock Appreciation Right settled in Shares, the gross number of Shares covered by the portion of the Award so exercised will cease to be available under the Plan.  Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if unvested Shares of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units or Deferred Stock Units are repurchased by the Company or are forfeited to the Company by virtue of their not vesting, such Shares will become available for future grant under the Plan.  Shares used to pay the withholding tax related to an Award or to pay for the exercise price of an Award will not become available for future grant or sale under the Plan.  To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.  Notwithstanding the foregoing provisions of this Section 3(c), subject to adjustment provided in Section 17(a), the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Section 422 of the Code, any Shares that become available for issuance under the Plan under this Section 3(c). 

4)Administration of the Plan.
(a)Procedure.
(i)Multiple Administrative Bodies.  The Plan may be administered by different Committees with respect to different groups of Employees or Consultants. 

(ii)Section 162(m).  To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder on or before November 2, 2017 as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 

(iii)Rule 16b-3.  To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 

(iv)Other Administration.  Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws. 

(b)Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion: 
    -4-

(i)to determine the Fair Market Value of the Common Stock, in accordance with Section 2(u) of the Plan; 

(ii)to select the Consultants and Employees to whom Awards may be granted hereunder; 

(iii)to determine whether and to what extent Awards or any combination thereof, are granted hereunder; 

(iv)to determine the number of shares of Common Stock to be covered by each Award granted hereunder; 

(v)to approve forms of agreement for use under the Plan; 

(vi)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or SARs may be exercised or other Awards vest (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; but in no event may dividends be paid with respect to Awards prior to those Awards vesting; 

(vii)to construe and interpret the terms of the Plan and Awards; 

(viii)to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 

(ix)to modify or amend each Award (subject to Section 19(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options and SARs longer than is otherwise provided for in the Plan; 

(x)to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option or Stock Purchase Right previously granted by the Administrator; 

(xi)to allow Participants to satisfy withholding tax obligations by electing to have the Company withhold from the Shares or cash to be issued upon exercise, vesting of an Award (or distribution of a Deferred Stock Unit) that number of Shares or cash having a Fair Market Value not in excess of the maximum statutory amount required to be withheld.  The Fair Market Value of any Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined.  All elections by a Participant to have Shares or cash withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; 

(xii)to determine the terms and restrictions applicable to Awards; and 

(xiii)to make all other determinations deemed necessary or advisable for administering the Plan. 

(c)Effect of Administrator’s Decision.  The Administrator’s decisions, determinations and interpretations shall be final and binding on all Participants and any other holders of Awards. 

5)Eligibility.  Restricted Stock, Performance Shares, Performance Units, Stock Appreciation Rights, Deferred Stock Units and Nonstatutory Stock Options may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees. 

6)    Limitations.
(a)Each Option shall be designated in the Notice of Grant as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designations, to the extent that the aggregate Fair Market Value: 

    -5-

(i)of Shares subject to a Participant’s Incentive Stock Options granted by the Company, any Parent or Subsidiary, which 

(ii)become exercisable for the first time during any calendar year (under all plans of the Company or any Parent or Subsidiary) 

(iii)exceeds $100,000, such excess Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the time of grant. 

(b)Neither the Plan nor any Award shall confer upon a Participant any right with respect to continuing the Participant’s employment with the Company or its Subsidiaries, nor shall they interfere in any way with the Participant’s right or the Company’s or Subsidiary’s right, as the case may be, to terminate such employment at any time, with or without cause or notice. 

(c)The following limitations shall apply to Awards granted under the Plan:

(i)No Participant shall be granted, in any fiscal year of the Company, Options and Stock Appreciation Rights to purchase more than 800,000 Shares. 

(ii)No Participant shall be granted, in any fiscal year of the Company, Restricted Shares and Performance Shares covering more than 800,000 Shares. 

(iii)The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 17. 

7)Term of Plan.  Unless terminated earlier, the Plan shall continue in effect until March 1, 2025. 

8)Term of Option.  The term of each Option shall be stated in the Notice of Grant; provided, however, that in no event shall the term be more than: (i) ten (10) years from the date of grant for options granted prior to the 2012 annual meeting of stockholders; and (ii) seven (7) years from the date of grant for options granted on or following the 2012 annual meeting of stockholders.  Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Notice of Grant. 

9)Option Exercise Price and Consideration

(a)Exercise Price; No Exchange Program.  The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: 

(i)In the case of an Incentive Stock Option 

1.granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

2.granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant. 

(ii)In the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per share on the date of grant. 

(iii)Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 

    -6-

(iv)The exercise price for an Option may not be reduced without the consent of the Company’s stockholders.  This shall include, without limitation, a repricing of the Option as well as an Option exchange program whereby the Participant agrees to cancel an existing Option in exchange for cash, an Option, SAR or other Award. 

(b)Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised.  In so doing, the Administrator may specify that an Option may not be exercised until the completion of a service period. 

(c)Form of Consideration.  The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment.  In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant.  Subject to Applicable Laws, such consideration may consist entirely of: 

(i)cash; 

(ii)check;

(iii)other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Participant for any time required by the Administrator to avoid adverse financial accounting consequences, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 

(iv)delivery of a properly executed exercise notice together with such other documentation as the Administrator and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale proceeds required to pay the exercise price; 

(v)any combination of the foregoing methods of payment; or 

(vi)such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

10)Exercise of Option.
(a)Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. 

(i)An Option may not be exercised for a fraction of a Share

(ii)An Option shall be deemed exercised when the Company receives: (i) written notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised.  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan.  Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse.  Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be issued) such stock certificate promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 17 of the Plan. 

(iii)Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 

    -7-

(b)Termination of Employment or Consulting Relationship.  Upon termination of a Participant’s Continuous Status as an Employee or Consultant, other than upon the Participant’s death or Disability, the Participant may exercise his or her Option, but only within such period of time as is specified in the Notice of Grant, and only to the extent that the Participant was entitled to exercise it at the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant).  In the absence of a specified time in the Notice of Grant, the Option shall remain exercisable for three months following the Participant’s termination of Continuous Status as an Employee or Consultant.  In the case of an Incentive Stock Option, such period of time shall not exceed three months from the date of termination.  If, at the date of termination, the Participant is not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall revert to the Plan.  If, after termination, the Participant does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

(c)Disability of Participant.  In the event that a Participant’s Continuous Status as an Employee or Consultant terminates as a result of the Participant’s Disability, the Participant may exercise his or her Option at any time within twelve (12) months from the date of such termination, but only to the extent that the Participant was entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant).  If, at the date of termination, the Participant is not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall revert to the Plan.  If, after termination, the Participant does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

(d)Death of Participant.  In the event of the death of a Participant, the Option may be exercised at any time within twelve (12) months following the date of death (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Participant’s estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that the Participant was entitled to exercise the Option at the date of death.  If, at the time of death, the Participant was not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall immediately revert to the Plan.  If, after death, the Participant’s estate or a person who acquired the right to exercise the Option by bequest or inheritance does not exercise the Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

11)Stock Appreciation Rights.
(a)Grant of SARs.  Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and from time to time as shall be determined by the Administrator, in its sole discretion.  The Administrator shall have complete discretion to determine the number of SARs granted to any Participant. 

(b)Exercise Price and other Terms; No Exchange Program.  Subject to Section 6(c) of the Plan, the Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan; provided, however, that: (i) no SAR granted prior to the 2012 annual meeting of stockholders may have a term of more than ten (10) years from the date of grant, (ii) no SAR granted on or following the 2012 annual meeting of stockholders may have a term of more than seven (7) years from the date of grant, and (iii) the per share exercise price of a SAR shall be no less than 100% of the Fair Market Value per share on the grant date.  Notwithstanding the foregoing, SARs may be granted with a per share exercise price of less than 100% of the Fair Market Value per share on the date of grant pursuant to a merger or other corporate transaction.  The exercise price for the Shares or cash to be issued pursuant to an already granted SAR may not be changed without the consent of the Company’s stockholders.  This shall include, without limitation, a repricing of the SAR as well as an SAR exchange program whereby the Participant agrees to cancel an existing SAR in exchange for cash, an Option, SAR or other Award.  No dividends may be paid with respect to any SAR prior to the SAR vesting.

(c)Payment of SAR Amount.  Upon exercise of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 

(i)the difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 

(ii)the number of Shares with respect to which the SAR is exercised. 

(d)Payment upon Exercise of SAR.  At the discretion of the Administrator, payment for a SAR may be in cash, Shares or a combination thereof. 

    -8-

(e)SAR Agreement.  Each SAR grant shall be evidenced by an Award Agreement that shall specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, shall determine. 

(f)Expiration of SARs.  A SAR granted under the Plan shall expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. 

(g)Termination of Employment or Consulting Relationship.  Upon termination of a Participant’s Continuous Status as an Employee or Consultant, other than upon the Participant’s death or Disability, the Participant may exercise his or her SAR, but only within such period of time as is specified in the Notice of Grant, and only to the extent that the Participant was entitled to exercise it at the date of termination (but in no event later than the expiration of the term of such SAR as set forth in the Notice of Grant).  In the absence of a specified time in the Notice of Grant, the SAR shall remain exercisable for three months following the Participant’s termination of Continuous Status as an Employee or Consultant.  If, at the date of termination, the Participant is not entitled to exercise his or her entire SAR, the Shares covered by the unexercisable portion of the SAR shall revert to the Plan.  If, after termination, the Participant does not exercise his or her SAR within the time specified by the Administrator, the SAR shall terminate, and the Shares covered by such SAR shall revert to the Plan. 

(h)Disability of Participant.  In the event that a Participant’s Continuous Status as an Employee or Consultant terminates as a result of the Participant’s Disability, the Participant may exercise his or her SAR at any time within twelve (12) months from the date of such termination, but only to the extent that the Participant was entitled to exercise it at the date of such termination (but in no event later than the expiration of the term of such SAR as set forth in the Notice of Grant).  If, at the date of termination, the Participant is not entitled to exercise his or her entire SAR, the Shares covered by the unexercisable portion of the SAR shall revert to the Plan.  If, after termination, the Participant does not exercise his or her SAR within the time specified herein, the SAR shall terminate, and the Shares covered by such SAR shall revert to the Plan. 

(i)Death of Participant.  In the event of the death of a Participant, the SAR may be exercised at any time within twelve (12) months following the date of death (but in no event later than the expiration of the term of such SAR as set forth in the Notice of Grant), by the Participant’s estate or by a person who acquired the right to exercise the SAR by bequest or inheritance, but only to the extent that the Participant was entitled to exercise the SAR at the date of death.  If, at the time of death, the Participant was not entitled to exercise his or her entire SAR, the Shares covered by the unexercisable portion of the SAR shall immediately revert to the Plan.  If, after death, the Participant’s estate or a person who acquired the right to exercise the SAR by bequest or inheritance does not exercise the SAR within the time specified herein, the SAR shall terminate, and the Shares covered by such SAR shall revert to the Plan. 

12)Restricted Stock
(a)Grant of Restricted Stock.  Subject to the terms and conditions of the Plan, Restricted Stock may be granted to Participants at any time as shall be determined by the Administrator, in its sole discretion.  The Administrator shall have complete discretion to determine (i) the number of Shares subject to a Restricted Stock award granted to any Participant (subject to the annual limitation under Section 6(c)(ii) of the Plan), and (ii) the conditions that must be satisfied, which typically will be based principally or solely on continued provision of services but may include a performance-based component, upon which is conditioned the grant or vesting of Restricted Stock.  Restricted Stock shall be granted in the form of units to acquire Shares.  Each such unit shall be the equivalent of one Share for purposes of determining the number of Shares subject to an Award.  Until the Shares are issued, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the units to acquire Shares. 

(b)Other Terms.  The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of Restricted Stock granted under the Plan.  Restricted Stock grants shall be subject to the terms, conditions, and restrictions determined by the Administrator at the time the stock is awarded.  The Administrator may require the recipient to sign a Restricted Stock Award agreement as a condition of the award.  Any certificates representing the Shares of stock awarded shall bear such legends as shall be determined by the Administrator. 

(c)Restricted Stock Award Agreement.  Each Restricted Stock grant shall be evidenced by an agreement that shall specify the purchase price (if any) and such other terms and conditions as the Administrator, in its sole discretion, shall determine; provided; however, that if the Restricted Stock grant has a purchase price, such purchase price must be paid no more than ten (10) years following the date of grant. 

    -9-

13)Performance Shares.

(a)Grant of Performance Shares.  Subject to the terms and conditions of the Plan, Performance Shares may be granted to Participants at any time as shall be determined by the Administrator, in its sole discretion.  The Administrator shall have complete discretion to determine (i) the number of Shares subject to a Performance Share award granted to any Participant (subject to the annual limitation under Section 6(c)(ii) of the Plan), and (ii) the conditions that must be satisfied, which typically will be based principally or solely on achievement of performance milestones but may include a service-based component, upon which is conditioned the grant or vesting of Performance Shares.  Performance Shares shall be granted in the form of units to acquire Shares.  Each such unit shall be the equivalent of one Share for purposes of determining the number of Shares subject to an Award.  Until the Shares are issued, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the units to acquire Shares. 

(b)Other Terms.  The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of Performance Shares granted under the Plan.  Performance Share grants shall be subject to the terms, conditions, and restrictions determined by the Administrator at the time the stock is awarded, which may include such performance-based milestones as are determined appropriate by the Administrator.  The Administrator may require the recipient to sign a Performance Shares agreement as a condition of the award.  Any certificates representing the Shares of stock awarded shall bear such legends as shall be determined by the Administrator. 

(c)Performance Share Award Agreement.  Each Performance Share grant shall be evidenced by an agreement that shall specify such other terms and conditions as the Administrator, in its sole discretion, shall determine. 

14)Performance Units.
(a)Grant of Performance Units.  Performance Units are similar to Performance Shares, except that they shall be settled in a cash equivalent to the Fair Market Value of the underlying Shares, determined as of the vesting date.  Subject to the terms and conditions of the Plan, Performance Units may be granted to Participants at any time and from time to time as shall be determined by the Administrator, in its sole discretion.  The Administrator shall have complete discretion to determine the conditions that must be satisfied, which typically will be based principally or solely on achievement of performance milestones but may include a service-based component, upon which is conditioned the grant or vesting of Performance Units.  Performance Units shall be granted in the form of units/rights to acquire Shares.  Each such unit/right shall be the cash equivalent of one Share of Common Stock.  No right to vote or receive dividends or any other rights as a shareholder shall exist with respect to Performance Units or the cash payable thereunder. 

(b)Number of Performance Units.  The Administrator will have complete discretion in determining the number of Performance Units granted to any Participant, provided that during any fiscal year of the Company, no Participant shall receive Performance Units having an initial value greater than $1,000,000, except that such Participant may receive Performance Units in a fiscal year of the Company in which his or her service as a Participant first commences with an initial value no greater than $2,000,000. 

(c)Other Terms.  The Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of Performance Units granted under the Plan.  Performance Unit grants shall be subject to the terms, conditions, and restrictions determined by the Administrator at the time the stock is awarded, which may include such performance-based milestones as are determined appropriate by the Administrator.  The Administrator may require the recipient to sign a Performance Unit agreement as a condition of the award.  Any certificates representing the Shares awarded shall bear such legends as shall be determined by the Administrator. 

(d)Performance Unit Award Agreement.  Each Performance Unit grant shall be evidenced by an agreement that shall specify such terms and conditions as the Administrator, in its sole discretion, shall determine. 

15)Deferred Stock Units.
(a)Description.  Deferred Stock Units shall consist of a Restricted Stock, Performance Share or Performance Unit Award that the Administrator, in its sole discretion permits to be paid out in installments or on a deferred basis, in accordance with rules and procedures established by the Administrator.

(b)Annual Limits.  Deferred Stock Units shall be subject to the annual limits applicable to the underlying Restricted Stock, Performance Share or Performance Unit Award. 

    -10-

16)Non-Transferability of Awards.  Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the recipient, only by the recipient.  If the Administrator makes an Award transferable, such Award shall contain such additional terms and conditions as the Administrator deems appropriate.  In no event shall an Award be transferred to a third party for value, unless previously approved by the Company’s stockholders. 

17)Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 

(a)Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each outstanding Award, the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award, as well as the price per share of Common Stock covered by each such outstanding Award and the annual share issuance limits under Sections 6(c), 12(a) and 13(a) shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Compensation Committee, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. 

(b)Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  The Administrator in its discretion may provide for a Participant to have the right to exercise his or her Option or SAR until ten (10) days prior to such transaction as to all of the Awarded Stock covered thereby, including Shares as to which the Award would not otherwise be exercisable.  In addition, the Administrator may provide that any Company repurchase option or forfeiture rights applicable to any Award shall lapse 100%, and that any Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated.  To the extent it has not been previously exercised (with respect to Options and SARs) or vested (with respect to other Awards), an Award will terminate immediately prior to the consummation of such proposed action. 

(c)Merger or Asset Sale. 

(i)Stock Options and SARs.  In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Option and SAR shall be assumed or an equivalent option or SAR substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  In the event that the successor corporation refuses to assume or substitute for the Option or SAR, the Participant shall fully vest in and have the right to exercise the Option or SAR as to all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable.  If an Option or SAR becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Administrator shall notify the Participant in writing or electronically that the Option or SAR shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option or SAR shall terminate upon the expiration of such period.  For the purposes of this paragraph, the Option or SAR shall be considered assumed if, following the merger or sale of assets, the option or stock appreciation right confers the right to purchase or receive, for each Share of Awarded Stock subject to the Option or SAR immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or SAR, for each Share of Awarded Stock subject to the Option or SAR, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 

    -11-

(ii)Restricted Stock, Performance Shares, Performance Units and Deferred Stock Units.  In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Restricted Stock, Performance Share, Performance Unit and Deferred Stock Unit award shall be assumed or an equivalent Restricted Stock, Performance Share, Performance Unit and Deferred Stock Unit award substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  In the event that the successor corporation refuses to assume or substitute for the Restricted Stock, Performance Share, Performance Unit or Deferred Stock Unit award, the Participant shall fully vest in the Restricted Stock, Performance Share, Performance Unit or Deferred Stock Unit including as to Shares (or with respect to Performance Units, the cash equivalent thereof) which would not otherwise be vested.  For the purposes of this paragraph, a Restricted Stock, Performance Share, Performance Unit and Deferred Stock Unit award shall be considered assumed if, following the merger or sale of assets, the award confers the right to purchase or receive, for each Share (or with respect to Performance Units, the cash equivalent thereof) subject to the Award immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received, for each Share and each unit/right to acquire a Share subject to the Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 

18)Date of Grant.  The date of grant of an Award shall be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator.  Notice of the determination shall be provided to each Participant within a reasonable time after the date of such grant. 

19)Amendment and Termination of the Plan.

(a)Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

(b)Stockholder Approval.  The Company shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply Section 422 of the Code (or any successor rule or statute or other applicable law, rule or regulation, including the requirements of any exchange or quotation system on which the Common Stock is listed or quoted).  Such stockholder approval, if required, shall be obtained in such a manner and to such a degree as is required by the applicable law, rule or regulation. 

(c)Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. 

20)Conditions Upon Issuance of Shares.

(a)Legal Compliance.  Shares shall not be issued pursuant to the exercise of an Award unless the exercise of the Award or the issuance and delivery of such Shares (or with respect to Performance Units, the cash equivalent thereof) shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

(b)Investment Representations.  As a condition to the exercise or receipt of an Award, the Company may require the person exercising or receiving such Award to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 

21)Liability of Company.

(a)Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

    -12-

(b)Grants Exceeding Allotted Shares.  If the Awarded Stock covered by an Award exceeds, as of the date of grant, the number of Shares which may be issued under the Plan without additional stockholder approval, such Award shall be void with respect to such excess Awarded Stock, unless stockholder approval of an amendment sufficiently increasing the number of Shares subject to the Plan is timely obtained in accordance with Section 19(b) of the Plan. 

22)Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
    -13-Exhibit 10.1 

 

AGREEMENT OF SALE

 

THIS AGREEMENT OF
SALE (“Agreement”) is made as of this 19th day of August, 2022 (the “Effective
Date”) between Rising Sun Investments & Management, LLC, a Florida limited liability company, and/or their
assigns (“Purchaser”), MDR Clemson, LLC, a Delaware limited liability company
(“MDR”), and MDR Clemson TRS, LLC, a Delaware limited liability company
(“TRS,” and together with MDR, “Seller”).

 

RECITALS

 

A.            Seller,
as applicable, is the owner of a fee estate in the land and the improvements known as the Best Western Plus University Inn & Conference
Center located at 1310 Tiger Blvd., Clemson, SC 2963, consisting of 148 rooms and related amenities (the “Hotel”).

 

B.             Purchaser is desirous of purchasing the Hotel, including the land, premises, improvements, and personal property from Seller
and Seller is desirous of selling the Hotel, including the land, improvements and personal property to Purchaser, for the purchase price
and upon the terms and conditions hereinafter set forth.

 

STATEMENT OF AGREEMENT

 

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

 

ARTICLE I - DEFINITIONS 

 

1.1           Definitions.

 

The following terms shall
have the indicated meanings:

 

“Advance Bookings”
shall mean reservations accepted by Seller prior to Closing for Hotel rooms or meeting rooms to be utilized after Closing, or for catering
services or other hotel services to be provided after Closing, in the ordinary course of business at customary rates.

 

“Affiliate” means
(a) any person that, directly or indirectly, controls or is controlled by or is under common control with such person, (b) any other
person that owns, beneficially, directly or indirectly, ten percent or more of the outstanding capital stock, shares or equity interests
of such person, or (c) any officer, director, employee, partner or trustee of such person or any person controlling, controlled by or
under common control with such person (excluding trustees and persons serving in similar capacities who are not otherwise an Affiliate
of such person). The term “person” means and includes individuals, corporations, general and limited partnerships, stock
companies or associations, joint ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts, or
other entities and governments and agencies and political subdivisions thereof. For the purposes of this definition, “control”
(including the correlative meanings of the terms “controlled by” and “under common control with”), as used with
respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such person, through the ownership of voting securities, partnership interests or other equity interests, by contract
or otherwise, subject to the rights of investors to approve certain major decisions.

 

    1 

     

    

 

“Applicable Laws”
shall mean any applicable building, zoning, subdivision, environmental, health, safety or other governmental laws, statutes, ordinances,
resolutions, rules, codes, regulations, orders or determinations of any Governmental Authority or of any insurance boards of underwriters
(or other body exercising similar functions), or any restrictive covenants or deed restrictions affecting the Property or the ownership,
operation, use, maintenance or condition thereof.

 

“Assignment and Assumption
Agreement” shall mean one or more assignment and assumption agreements, whereby Seller assigns and Purchaser assumes the Operating
Agreements, (including the Franchise Agreement, if the Franchise Agreement
is to be assigned as set forth in Section 7.7, or excluding the Franchise Agreement, otherwise) but excluding Seller’s hotel management
agreement, and whereby Seller indemnifies, defends and holds Purchaser harmless with respect to all defaults, liabilities, claims,
costs and expenses (including, without limitation, reasonable attorneys’ fees) relating to acts or omissions occurring under such
Operating Agreements before the Closing Date; and (b) Purchaser indemnifies, defends and holds Seller harmless with respect to all defaults,
liabilities, claims, costs and expenses (including, without limitation, reasonable attorney’s fees) relating to acts or omissions
occurring under such Operating Agreements on and after the Closing Date.

 

“Authorizations”
shall mean all licenses, permits and approvals required by any governmental or quasi-governmental agency, body, department, commission,
board, bureau, instrumentality or officer, with respect to the construction, ownership, operation, leasing, maintenance, or use of the
Property or any part thereof.

 

“Bill of Sale –
Inventory” shall mean that certain bill of sale conveying title to the Inventory to Purchaser with
warranty of title and free and clear of any lien or security interest, and otherwise
in an “As is Where is” condition.

 

“Bill of Sale –
Personal Property” shall mean one or more bills of sale conveying title to the Tangible Personal Property and the Intangible Personal
Property from Seller to Purchaser, with warranty of title and free and clear of any
lien or security interest, and otherwise in an “as is where is” condition.

 

“Broker” shall
mean Marcus & Millichap.

 

“Closing” shall
mean the Closing of the purchase and sale of the Property pursuant to this Agreement and shall be deemed to occur on the Closing Date.

 

“Closing Date”
shall mean the date that is fifteeen (15) days following the expiration of the Due Diligence Period as hereinafter defined.

 

“Closing Documents”
shall mean the documents defined as such in Section 6.3 hereof.

 

    2 

     

    

 

“Deed” shall
mean a special warranty deed, duly executed and acknowledged by Seller, granting and conveying to Purchaser fee simple title to the Real
Property, free and clear of any liens, encumbrances, easements, restrictions or other matters affecting title to the Real Property except
the Permitted Title Exceptions.

 

“Deposit” shall
have the meaning set forth in Section 2.1 hereof.

 

“Due Diligence Period”
shall mean the period during which the Purchaser may examine matters relating to the Property (as provided in Section 2.3 hereof) and
to secure financing. The Due Diligence period shall begin on the Effective Date and shall expire forty-five (45) days later.

 

“Effective Date,”
 “date of this Agreement” or “date hereof” shall mean the date first written above.

 

“Environmental Damages”
shall mean all third-party claims, judgments, damages, losses, penalties, fines, liabilities (including punitive damages), encumbrances,
liens, costs and expenses of investigation and defense of any claim, whether or not such is ultimately defeated, and of any settlement
or judgment, of whatever kind or nature, any of which arise as a result of the existence of Hazardous Materials upon, about or beneath
the Property or migrating or threatening to migrate from the Property, or as a result of the existence of a violation of Environmental
Requirements pertaining to the Property.

 

“Environmental Requirements”
shall mean (i) all applicable statutes, regulations, rules, policies, ordinances, codes, licenses, permits, orders, approvals, plans,
authorizations, and similar items, of all Governmental Authorities and (ii) all judicial, administrative and regulatory decrees, judgments
and orders in each case of (i) and (ii) relating to the protection of human health or the environment from Hazardous Materials, including,
without limitation: (a) all requirements thereof including, without limitation, those pertaining to reporting, licensing, permitting,
investigation and remediation of emissions, discharges, releases or threatened releases of Hazardous Materials into the air, surface
water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or
handling of Hazardous Materials; and (b) all requirements pertaining to the protection of the health and safety of employees or the public
from Hazardous Materials.

 

“Employment Agreements”
shall mean all employment agreements between Seller or its managing agent and the persons employed with respect to the Property.

 

“Escrow Agent”
shall mean First American Title, National Commercial Services, Attn: Jeanette Litzinger.

 

“FIRPTA Certificate”
shall mean the affidavit of Seller under Section 1445 of the Internal Revenue Code, as amended, certifying that Seller is not a foreign
corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Internal Revenue
Code and regulations promulgated there under), in form and substance satisfactory to Purchaser.

 

    3 

     

    

 

“Franchise
Agreement” shall mean that certain Membership Agreement with an effective date of September 18, 2019 between MDR and Best Western
International, Inc., as franchisee, and Franchisor, as franchisor.

 

“Franchisor”
shall mean Best Western International, Inc., an Arizona non-profit corporation.

 

“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.

 

“Guest Revenue”
shall mean guest room revenue for the Hotel for the night before the Closing Date.

 

“Hazardous Materials”
shall mean any chemical substance: (i) which is or becomes defined as a “hazardous substance,” “hazardous waste,”
 “hazardous material,” “pollutant,” “contaminant,” or “explosive,” “corrosive,”
 “flammable,” “infectious,” “radioactive,” or “mutagenic” material under any law, regulation,
rule, order, or other authority of the federal, state or local governments, or any agency, department, commission, board, or instrumentality
thereof, regarding the protection of human health or the environment from such chemical substances including, but not limited to, the
following federal laws and their amendments, analogous state and local laws, and any regulations promulgated there under: the Clean Air
Act, the Clean Water Act, the Oil Pollution Control Act, the Comprehensive Environmental Response, Compensation, and Liability Act of
1986, the Emergency Planning and Community Right to Know Act, the Solid Waste Disposal Act, the Resource Conservation and Recovery Act,
the Safe Drinking Water Act, the Federal Insecticide, Fungicide and Rodenticide Act, and the Toxic Substances Control Act, including,
without limitation, asbestos and gasoline and other petroleum products (including crude oil or any fraction thereof); (ii) without limitation,
which contains gasoline, diesel fuel or other petroleum hydrocarbons; (iii) without limitation, which contains drinking biphenyls or
asbestos or asbestos containing materials or urea formaldehyde foam insulation; or (iv) without limitation, radon gas.

 

“Hotel” shall
mean the hotel and related improvements described above in Paragraph A of the Recitals of this Agreement.

 

“Improvements”
shall mean the Hotel and all other buildings, improvements, fixtures and other items of real estate located on the Land.

 

“Intangible Personal
Property” shall mean all intangible personal property owned or possessed by Seller and used in connection with the ownership, operation,
leasing, occupancy or maintenance of the Land and Improvements or Tangible Property, including, without limitation: (1) general intangibles,
development rights, financial and operational records, guest lists, collateral marketing material, Warranties
and Guarantees, plans and specifications pertaining to the Land and the Personal
Property excluding (a) any unpaid award for taking by condemnation or any damage to the Land or Improvements (unless Purchaser elects
to close following such taking or damage), (b) utility deposits and other deposits paid in connection with operation of the Hotel or
Tangible Personal Property, (c) escrow accounts or deposits, (d) Seller's cash in bank accounts and invested with financial or other
institutions, (e) accounts receivable or accounts payable, intellectual property.

 

    4 

     

    

 

“Land” shall
mean that certain parcel of real estate lying and being in the County of Pickens, State of South Carolina as more particularly described
on Exhibit “A” attached hereto, together with Seller’s interest, if any, in and to all easements, rights,
privileges, remainders, and reversions thereunto 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, subject to the Permitted Title Exceptions.

 

“Inventory” shall
mean all inventories described in Section 6.8 hereof.

 

“New Title Encumbrances”
shall have the meaning given to this term in Section 2.4(e) hereof.

 

“Operating Agreements”
shall mean all service, vendors, supply, and maintenance contracts, if any, in effect with respect to the Property and all other contracts
(other than the Employment Agreements) that affect the Property or are otherwise related to the ownership, operation, or maintenance
of the Property, which, at the option of Purchaser, shall be assumed by Purchaser at Closing, at Purchaser’s expense, all of which
are set forth in Exhibit “B” hereto; provided, however, that Purchaser must provide written notice to Seller
on or prior to the expiration of the Due Diligence Period of any agreements that Purchaser elects not to assume at Closing.

 

“Occupancy Agreements”
shall mean all leases, concession or occupancy agreements in effect with respect to the Real Property under which any tenants (other
than Hotel guests) or concessionaires occupy space or have a right to use space (e.g., antennae locations) upon the Land, which, at the
option of Purchaser, shall be assumed by Purchaser at Closing, all of which are set forth in Exhibit “C” hereto.

 

“Owner's Title Policy”
shall mean an ALTA owner's policy of title insurance issued to Purchaser at Purchaser’s expense by the Title Company, pursuant
to which the Title Company insures Purchaser's fee estate in and to the Real Property.

 

“Permitted Title Exceptions”
shall mean those exceptions to title to the Real Property that are satisfactory to Purchaser as determined pursuant to Section 2.4
hereof.

 

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

 

“Personal Property
Leases” shall mean all leases affecting the tangible personal property or the intangible personal property, which, at Purchaser’s
option, shall be assumed by Purchaser at Closing, all of which are set forth in Exhibit “D” hereto. All other
leases affecting the Tangible Personal Property or the Intangible Personal Property shall be terminated by Seller, at Seller’s
sole cost and expense, prior to Closing.

 

    5 

     

    

 

“PIP” shall mean
a property improvement plan for the Hotel, as required by the Franchisor, if any.

 

“Purchaser’s
Title Objections” shall mean the objection defined as such in Section 2.4(a) hereof.

 

“Property” shall
mean collectively the Real Property and the Personal Property.

 

“Purchase Price”
shall mean Ten Million One Hundred Fifty Thousand Dollars ($10,150,000.00), payable in the manner described in Section 2.2 hereof
plus or minus closing adjustments.

 

“Purchaser’s
Attorney” shall mean S. Larry Phillips, Esq.

 

“Real Property”
shall mean the Land and the Improvements.

 

“Seller's Knowledge”
shall have the meaning given to this term in Article III hereof.

 

“Seller’s
Liens” shall have the meaning given to the term in Section 2.4(c).

 

“Tangible Personal
Property” shall mean the items of tangible personal property consisting of all vehicles (it being understood that Purchaser will
assume any existing financing in connection therewith) furniture, fixtures, equipment, machinery, Inventory,
and other personal property of every kind and nature located on and used in the operation of the Hotel and owned by Seller. The
Tangible Personal Property shall not include cash, deposits, items of sports memorabilia owned by partners of Seller, escrows, investments,
certificates, coupons or negotiable instruments of any kind or accounts receivable, any unpaid award for taking by condemnation or any
damage to the Land or Improvements (unless Purchaser elects to close following such taking or damage), utility deposits and other deposits
paid in connection with operation of the Hotel or Tangible Personal Property, escrow accounts or deposits, Seller's cash in bank accounts
and invested with financial or other institutions, accounts receivable or accounts payable, intellectual property, or any leased personal
property.

 

“Title Commitment”
shall mean the title commitment and exception documents defined as such in Section 2.4(a) hereof.

 

“Title Company”
First American Title Insurance Company, National Commercial Services, Attn: Jeanette Litzinger, 3455 Peachtree Road NE, Suite 675, Atlanta,
GA 30326, jlitzinger@firstam.com.

 

“Title Exception Documents”
shall have the meaning given to this term in Section 2.4(a) hereof.

 

“TRS Lease”
means that certain Lease Agreement between MDR, as Landlord, and TRS, as Tenant, dated September 28, 2019.

 

    6 

     

    

 

“Utilities” shall
mean public sanitary and storm sewers, natural gas, telephone, public water facilities, electrical facilities and all other utility facilities
and services necessary or appropriate for the operation and occupancy of the Property as a hotel.

 

“Warranties and Guaranties”
shall mean all warranties and guaranties relating to the Improvements or the Tangible Personal Property or any part thereof.

 

“Willful Breach”
shall be a breach whereby Seller refuses to sell the Property or willfully damages the Property to prevent the sale of the same in violation
of this Agreement.

 

ARTICLE II - EARNEST MONEY; PAYMENT OF PURCHASE
PRICE

 

Seller agrees to sell and
Purchaser agrees to purchase the Property for the Purchase Price and in accordance with and subject to the other terms and conditions
set forth herein.

 

2.1           Earnest
Money.

 

Within five (5) business
days following the Effective Date of this Agreement, Purchaser shall deposit with Escrow Agent the sum of One Hundred Thousand ($100,000.00)
Dollars as a deposit under this Agreement (the “Deposit”) and Escrow Agent shall confirm its receipt of the
Initial Deposit by notice to Seller and Purchaser. Following expiration of the Due Diligence Period, the Deposit shall be non-refundable
to Purchaser except as otherwise expressly set forth herein. The Deposit together with any interest thereon shall be credited against
the Purchase Price at Closing.

 

2.2           Payment
of Purchase Price.

 

The Purchase Price shall
be paid to Seller by Purchaser at Closing by wire transfer of immediately available federal funds to Escrow
Agent in the amount of Ten Million One Hundred Fifty Thousand Dollars ($10,150,000.00).

 

2.3           Due
Diligence Period.

 

(a)            Subject
to the terms and conditions set forth in Section 2.3 (c) below, during the Due Diligence Period, Purchaser and Purchaser's designated
agents or representatives (collectively, “Purchaser’s Representatives”) shall have the right to enter
upon the Real Property upon not less than 48 hours prior written notice to perform, at Purchaser's expense, such economic, engineering,
surveying, topographical, marketing, zoning and other tests, studies and investigations as Purchaser may deem appropriate; provided,
however, Purchaser may not conduct any invasive environmental studies of any kind on the Property. Purchaser shall use, and shall cause
Purchaser’s Agents to use, commercially reasonable efforts to not cause any interruption to the Hotel operations or the guests
thereof. Upon the execution of the Agreement, and to the to the extent in Seller’s
possession, Seller shall provide, in a website to which Purchaser is given access,
for review and inspection copies of the last PIP report issued to Seller, franchise documents, including but not limited to, any and
all notices, applications, authorizations, consents, approvals and other documents that may be necessary for Purchaser to commence the
Franchisor Approval process, all existing engineering reports, environmental reports,
title policies, surveys, service contracts, construction related documentation, operating information including, without limitation,
all non-privileged documentation relating to any pending construction, claims or litigation, detailed profit and loss statements for
each of the past three full years and monthly for the last twelve full months (including occupied room counts for each period), current
list of all employees indicating position, full/part time status, benefits eligibility, union membership status, and salary/hourly rate,
list of property tax bills for the past three years and any bills or assessment notices received for 2022, a schedule of all Advanced
Bookings, all Employment Agreements, schedules of all Personal Property and Inventory, all Occupancy Agreements, all Operating Agreements,
Personal Property Leases and Warranties and Guarantees, as well as all licenses, permits
and all other documents in relation to the Property and the employees employed at the Property,
insurance loss runs with respect to the Hotel for the three-year period prior to the Effective Date, and any other materials reasonably
requested by Purchaser, if any, either in Seller’s possession or prepared on Seller’s behalf (collectively, the “Due
Diligence Material”). All of the Due Diligence Material is confidential to Seller and shall be held confidential by Purchaser.
in accordance with the terms of Section 7.5. Except as may be required by court order
or applicable law, Purchaser shall not disclose or provide any Due Diligence Material to any third party other than Purchaser’s
managers, members, employees, advisors such as attorneys, accountants,
engineers, surveyors, contractors and consultants, and potential lenders, financiers,
partners, investors, and such other third parties whose assistance is required in connection with the evaluation or consummation of this
transaction, and where necessary for the Franchisor Approval process, who shall
be advised of the confidential nature of the Due Diligence Material and who shall treat the Due Diligence Material as confidential.
The foregoing confidentiality obligation will not apply to information in Purchaser’s possession prior to disclosure to Purchaser
by or on behalf of Seller or information which is publicly available other than due to disclosure by Purchaser.

 

    7 

     

    

 

(b)           If
Purchaser elects not to proceed with this transaction in its sole and absolute discretion, Purchaser shall notify Seller and Escrow Agent,
in writing prior to the expiration of the Due Diligence Period, that Purchaser has elected to terminate this Agreement and thereupon
the Deposit shall be repaid to Purchaser and this Agreement shall automatically terminate and Purchaser shall, at Purchaser’s expense,
return all of the Due Diligence Materials to Seller. Seller and Purchaser shall be released from all liability or obligation hereunder
except for those obligations which expressly survive a termination of this Agreement. If Purchaser does not so notify Seller and Escrow
Agent of its determination to terminate this Agreement prior to the expiration of the Due Diligence Period, then this Agreement shall
continue in full force and effect, and subject to Purchaser’s termination rights set forth herein, Purchaser shall have no further
option to terminate this Agreement and all of the Deposit shall thereafter be non-refundable.

 

(c)            Seller
agrees to allow Purchaser or Purchaser's agents or representatives reasonable access to the Real Property, upon not less than 48 hours’
prior written notice, during the Due Diligence Period for purposes of inspection of the Property. Purchaser’s inspections will
be undertaken in such a manner to minimize any interference with the business of Seller. Purchaser shall not communicate with any of
Seller’s or the Hotel’s employees without the consent of Seller, and Seller
shall have the right to have a representative present at all such meetings, provided that
Seller’s failure to cause its representative to be present will not preclude or delay the meeting. Seller will make the
General Manager available to answer any questions Purchaser may have. Purchaser shall not conduct or allow any invasive
testing of, on or under the Property without first providing Seller with notice as to the timing and scope of work to be performed
and obtaining Seller’s prior written consent thereto. Seller’s consent to such testing shall not be unreasonably withheld,
delayed or conditioned and Seller reserves the right to have a representative present, provided
that Seller’s failure to cause its representative to be present will not preclude or delay the test. Purchaser agrees that,
in making any inspections of, or conducting any testing of, on or under the Property, Purchaser or Purchaser's agents or contractors
will carry not less than $1,000,000 comprehensive general liability insurance and, prior to any testing, will provide Seller with certificates
or other written evidence of same, and which insurance shall name Seller as “additional insured and loss payee”; (ii) will
exercise commercially reasonable efforts not to interfere with the activity of Hotel guests or any persons occupying or providing services
at the Property; (iii) will not reveal to any third party not approved by Seller in advance, the results of its inspections or tests
and other than to investors, partners, lenders, consultants, attorneys and others with a need to know in connection with the consummation
of this transaction, other than as may be required by court order or applicable law;
and (iv) will restore promptly to substantially the condition existing immediately prior to the inspection any physical damage caused
by the inspection. Purchaser agrees to provide Seller with a copy of all inspection and test reports if Purchaser exercises its right
to terminate the Agreement at no cost to Seller. Inspection and test reports shall include all written materials, test results, memorandum,
or summaries thereof. Purchaser agrees (which agreement shall survive Closing or termination of this Agreement) to indemnify, defend,
and hold Seller harmless from any loss, injury, damage, claim, lien, cost or expense, including reasonable attorneys' fees and costs,
arising out of a breach of the foregoing agreements by Purchaser in connection with the inspection and testing of the Property, or otherwise
from the exercise by Purchaser or its agents or representatives of the right of access under this Section 2.3,
provided that the foregoing indemnity will not apply with respect to pre-existing conditions, including any diminution in value resulting
from the discovery thereof, or with respect to the acts or omissions of Seller, its property manager, or their respective agents, employees
or contractors.

 

    8 

     

    

 

2.4           Objections
to Title

 

(a)           Within
five (5) days after the Effective Date, Purchaser will
request that Title Company furnish to Purchaser at Purchasers’ expense an ALTA
title insurance commitment bearing an effective date subsequent to the date of this Agreement issued by the Title Company covering
the Real Property, binding the Title Company to issue a policy of title insurance with standard exceptions, in form approved for use
in the State of South Carolina, in favor of Purchaser together with the best available copies of all documents (collectively, the “Title
Exception Documents”) identified in such title insurance commitment as exceptions to title (collectively the “Title
Commitment”). No later than four (4) business days prior
to the expiration of the Due Diligence Period, Purchaser shall notify Seller of any matters identified in the Title Commitment
that Purchaser is unwilling to accept (collectively, “Purchaser’s Objections”).

 

(b)           Purchaser
will not be required to object to, and Seller will be obligated to pay and discharge at the
time of Closing, mortgages, deeds of trust, security agreements, construction or mechanic’s liens, tax liens (other than
real estate taxes for the tax year in which Closing occurs) or other liens or charges
in a fixed sum or capable of computation as a fixed sum caused, permitted or created
by Seller (collectively “Mandatory Cure Items”).

 

    9 

     

    

 

(c)           In
the event that there are obligations which Seller is obligated to pay or discharge pursuant to subsection (b) above, Seller may use all
or a portion of any cash it may receive at Closing.

 

(d)           Seller
shall not be obligated to incur any expenses to cure Purchaser’s Objections (other than
Mandatory Cure Items) unless Seller agrees to cure such Purchaser’s Objection as hereinafter provided. Seller shall notify
Purchaser within two (2) business
days after receipt of notice of Purchaser’s Objections whether Seller agrees to cure such Purchaser’s Objections.
If Seller notifies Purchaser in writing within such two (2)
business day period that Seller agrees to cure such Purchaser’s Objection, Seller
shall correct such Purchaser’s Objections on or before the Closing Date. In the event Seller fails to correct Purchaser’s
Objections on or before the Closing Date after Seller’s notification to Purchaser of its intent to do so, said failure shall constitute
a material default hereunder and Purchaser shall have the right, but not the obligation, to terminate this Agreement and shall be entitled
to a full refund of the Deposit and shall be entitled to Purchaser’s other remedies
for a Seller breach. If Seller does not notify Purchaser within such two (2)
business day period of Seller’s agreement to cure such Purchaser’s Objections,
Seller shall be deemed to have elected not to cure such Purchaser’s Objections (except for the Mandatory Cure Items). Purchaser
shall provide notice to Seller prior to expiration of the Due Diligence Period that it is willing to waive such Purchaser’s Objections
without any abatement in the Purchase Price or desires to terminate the Agreement and receive a prompt refund of any Deposit, and in
the event Purchaser opts to terminate this Agreement, the parties hereto shall be released from all further obligations hereunder except
those which expressly survive a termination of this Agreement. Purchaser shall provide any notice of waiver or termination within the
Purchaser’s study period otherwise the right to terminate is waived.

 

(e)           Seller
shall not, after the date of this Agreement, subject the Land to or permit or suffer to exist any liens, encumbrances, covenants, conditions
restrictions, easements or other title matters as to the Land (collectively, “New Title Encumbrances”), other
than those that may be required in the ordinary course of business, without Purchaser’s prior written consent which consent shall
not be unreasonably withheld or delayed.

 

(f)            All title matters revealed by the
Title Commitment and not objected to by Purchaser as provided above shall be deemed Permitted Title Exceptions.

 

ARTICLE III - SELLER'S REPRESENTATIONS AND
WARRANTIES

 

Seller hereby warrants and represents to Purchaser
as follows as of the Effective Date and
as of the Closing Date:

 

3.1           Seller’s
Authority

 

Each Seller is a Delaware
limited liability company duly organized, validly existing under the laws of the State of Delaware and is qualified to transact business
in the State of South Carolina, as applicable. Seller has the power to execute and deliver this Agreement and each of the other documents
and instruments to which it is a party and to consummate the transactions and perform its obligations contemplated hereby or thereby.

 

    10 

     

    

 

The execution and delivery
of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate action
of Seller.

 

The
execution and delivery of this Agreement and the performance by Seller of its obligations hereunder do not and will not contravene or
constitute a default under any provisions of Applicable Law or regulation, or any agreement, judgment, injunction, order, decree or other
instrument binding upon Seller or result in the creation of any lien or other encumbrance on any asset of Seller.

 

3.2           Non-Foreign
Person.

 

Seller is not a “foreign
person” within the meaning of Section 1445 of the Internal Revenue Code, as amended.

 

3.3           Bankruptcy.

 

No Act of Bankruptcy has
occurred with respect to Seller or is contemplated or being considered by Seller.

 

3.4           Possession.

 

There is no tenancy or right
of occupancy of the Property or any part thereof by any third party except for Hotel guests and the Off Campus Housing and Master Occupancy
Agreement with Clemson University.

 

3.5           Environmental
Conditions.

 

To Seller’s knowledge,
no Hazardous Materials are present on the Property in violation of any Environmental Requirements. There are no underground storage tanks
or above ground storage tanks located on the Property.

 

3.6           Zoning
and Other Applicable Laws

 

Except as disclosed in the
Due Diligence Materials, Seller has not received any written notice from any Governmental Authority regarding any violation of any zoning
laws or ordinances or other Applicable Laws regarding the Property.

 

3.7           Pending
Litigation.

 

Except as disclosed on
Schedule 3.7 attached hereto, there is no litigation, arbitration or administrative proceeding pending or,
to the best of Seller’s knowledge, threatened which could have a negative material effect on the Real Property or any part
thereof, or Seller’s ability to carry out its obligations hereunder, other than matters which are covered by insurance.

 

    11 

     

    

 

3.8           Claims
Affecting Ownership.

 

Seller has not received any
written notice of any claims that could materially adversely affect the ownership or right to possession by the Seller of the Real Property.

 

3.9           Operating Agreements, Occupancy Agreements and Personal Property Leases.

 

There
are no Operating Agreements, Occupancy Agreements or Personal Property Leases except as set forth respectively on Exhibits
B, C and D.

 

3.10         Advance Bookings.

 

All Advance Bookings will
be disclosed in the Due Diligence Materials.

 

3.11         Employment
Agreements.

 

There are no Employment Agreements
in effect in respect of any employee or other personnel of the Hotel.

 

3.12         Title
to Personal Property.

 

Except as to the Personal
Property Leases, if any, Seller has clear title to the Personal Property free and clear of any liens or encumbrances.

 

3.15         Franchise
Agreement.

 

The
Franchise Agreement is in full force and effect, and Seller has paid and performed to date each and every obligation thereunder to be
paid or performed by Seller. Seller has not received any written notice that Seller is in default under any provision of the Franchise
Agreement.

 

3.17         Authorizations.

 

To
Seller’s knowledge, (i) Seller has obtained all Authorizations required in connection with Seller’s ownership of the Property
and the operation of the Property as heretofore conducted by Seller, and (ii) the Authorizations are valid and in full force and effect,
are not in default, and are without any delinquencies in the payment of any fees or costs associated with the Authorizations. Attached
hereto as Schedule 3.17 is a true, correct and complete list of all Authorizations.

 

    12 

     

    

 

3.19         Patriot
Act.

 

Seller
is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by the United States Treasury Department
as a Specifically Designated National and Blocked person, or for or on behalf of any person, group, entity or nation designated in Presidential
Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism; and it is not engaged in this transaction
directly or indirectly on behalf of, or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity
or nation.

 

ARTICLE IV - PURCHASER'S REPRESENTATIONS AND
WARRANTIES

 

Purchaser hereby makes the
following representations and warranties as of the Effective Date and as of the Closing Date:

 

4.1           Non-contravention.

 

The execution and delivery
of this Agreement and the performance by Purchaser of its obligations hereunder do not and will not contravene or constitute a default
under any provisions of Applicable Law or regulation, or any agreement, judgment, injunction, order, decree or other instrument binding
upon Purchaser or result in the creation of any lien or other encumbrance on any asset of Purchaser.

 

4.2           Bankruptcy.

 

No Act of Bankruptcy has
occurred with respect to Purchaser or is contemplated or being considered by Purchaser.

 

4.3           Purchaser’s
Authority.

 

Purchaser has the power
to execute and deliver this Agreement and each of the other documents and instruments to which it is a party and to consummate the transactions
and perform its obligations contemplated hereby or thereby.

 

 4.4           Non-Foreign Person.

 

Purchaser is not a “foreign
person” within the meaning of Section 1445 of the Internal Revenue Code, as amended.

 

4.5           Patriot Act 

 

Purchaser is not acting,
directly or indirectly, for or on behalf of any person, group, entity or nation named by the United States Treasury Department as a Specifically
Designated National and Blocked person, or for or on behalf of any person, group, entity or nation designated in Presidential Executive
Order 13224 as a person who commits, threatens to commit, or supports terrorism; and it is not engaged in this transaction directly or
indirectly on behalf of, or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity or nation.

 

    13 

     

    

 

ARTICLE V – CONDITIONS 

 

 5.1           As to Seller’s Obligations.

 

Seller’s obligations hereunder
are subject to the satisfaction of the following conditions precedent:

 

		(a)	Purchaser’s
Deliveries. Purchaser shall have delivered to Escrow Agent for the benefit of Seller,
on or before the Closing Date, all of the documents and payments (including, without limitation, the Purchase Price) required of Purchaser
under the terms of this Agreement.

 

		(b)	Purchaser’s
Representations and Warranties. Purchaser’s representations and warranties under this Agreement shall be true and correct in all
material respects as of Closing.

 

Any condition precedent is intended
for the benefit of Seller and may be waived in whole or in part, by Seller, but only by an instrument in writing signed by Seller.

 

 5.2           As to Purchaser’s Obligations.

 

Purchaser’s obligations hereunder
are subject to the satisfaction of the following conditions precedent. In the event any of the aforementioned conditions precedent are
not satisfied, Purchaser shall have the right, but not the obligation, to terminate this Agreement in writing to Seller and Purchaser
shall be entitled to a full refund of the Deposit even if said termination occurs after the expiration of the due diligence period.

 

		(a)	Seller’s
Deliveries. Seller shall have delivered to Escrow Agent for the benefit of Purchaser,
on or before the Closing Date, all of the documents required of Seller under the terms of this Agreement.

 

		(b)	Purchaser’s
                                            Representations and Warranties. Purchaser’s representations and warranties under this
                                            Agreement shall be true and correct in all material respects as of Closing.

 

		(c)	Seller’s Obligation to Cure Title.
                                            Seller shall, on or before the closing, cure any of Purchaser’s Objections to title,
                                            in which Seller has agreed to cure pursuant to the terms set forth in Section 2.4
                                            herein.

 

		(d)	Issuance
                                            of Title Policy. The Title Company shall be unconditionally committed to issue the Owner’s
                                            Title Policy to Purchaser subject only to the Permitted Title Exceptions and including any
                                            endorsements or affirmative coverage with the Title Company agreed, prior to the expiration
                                            of the Due Diligence Period, to provide.

 

    14 

     

    

 

		(e)	Purchaser
                                            shall have received the Franchisor Approval (as defined in Section 7.7), including a PIP
                                            approved by Franchisor and reasonably satisfactory to Purchaser.

 

Any condition precedent contained in
this Section are intended for the benefit of Purchaser and may be waived in whole or in part, by Purchaser, but only by an instrument
in writing signed by Purchaser.

 

ARTICLE VI- CLOSING

6.1           Closing.

 

The Closing shall occur on
the date that is fifteen (15) days following the expiration of the Due Diligence Period, unless Seller and Purchaser mutually agree in
writing on an earlier date. Time is of the essence. Closing shall be held in the office of Escrow Agent,
though Closing may be effectuated by delivery of documents without in-person attendance by either Seller or Purchaser. Seller
and Purchaser shall provide all documents properly signed and in recordable form, if necessary, to the Escrow Agent. Purchaser shall
provide sufficient funds to the Escrow Agent in an amount necessary to pay the Purchase Price, prorations and adjustments and Closing
costs and expenses. Seller and Purchaser shall execute any and all Closing Statements, Settlement Sheets, affidavits, certifications
and other documents necessary to effectuate the Closing. Upon written authorization by Seller and Purchaser, or their designated agents,
Escrow Agent shall, record the necessary documents, release the Purchase Price and any other funds to which Seller is entitled to, and
disburse copies of all other documents to Seller and Purchaser. As provided herein, the parties hereto will agree upon adjustments and
prorations to certain items at the Closing and will make the appropriate adjustments with respect thereto.

 

6.2           Seller's
Deliveries.

 

At the Closing, Seller shall
deliver to Escrow Agent all of the following instruments, each of which shall have been duly executed and, where applicable, acknowledged
and/or where required sworn on behalf of Seller and shall be dated as of the Closing Date:

 

(a)           The
Deed.

 

(b)           Such agreements, affidavits
or other documents as may reasonably be required by the Title Company to issue the Owner’s Policy subject only
to the Permitted Exceptions.

 

(c)           The FIRPTA Certificate.

 

(d)           The Bill of Sale-Inventory.

 

(e)           The Bill of Sale-Personal Property.

 

    15 

     

    

 

(f)            The Assignment and Assumption Agreements.

 

(g)           Evidence of termination of the TRS Lease.

 

(h)           Evidence of termination of Seller’s
hotel management agreement.

 

6.3           Purchaser's
Deliveries.

 

		(a)	At the Closing, Purchaser shall deliver
                                            to Escrow Agent by wire transfer of immediately available federal funds the Purchase Price
                                            described in Section 2.2 hereof, less the Deposit and
                                            subject to prorations and adjustments set forth in this Agreement. 
	 	 	 

		(b)	Such agreements, affidavits or other documents
                                            as may be reasonably required by the Title Company to issue the Owner’s Policy subject
                                            only to the Permitted Exceptions.

 

		(c)	The Assignment and Assumption Agreements.

 

6.4           Mutual
Deliveries.

 

At the Closing, Purchaser and Seller
shall mutually execute and deliver each to the other:

 

		(a)	A
                                            final Closing Statement reflecting the Purchase Price and the adjustments and prorations
                                            required hereunder.

 

		(b)	Such
                                            other and further documents, papers and instruments as may be reasonably required by the
                                            parties hereto or their respective counsel.

 

		(c)	Such
                                            other and further documents as may be reasonably required by Seller or Purchaser to carry
                                            out the intent and purpose of the Agreement.

 

6.6           Closing
Costs.

 

Except for as otherwise set
forth herein, each party shall pay its own legal fees and expenses. All filing or recording fees for the Deed shall be paid by Seller.
Seller shall pay the costs associated with any releases of any mortgages and other financing encumbering the Real Property. All recording
fees and taxes due in connection with Purchaser’s mortgage shall be paid by Purchaser, and Seller shall pay all other transfer,
recording, documentary stamp, sales or other similar taxes and surtaxes due with respect to the transfer of the Deed or
the Personal Property which are required to be paid under South Carolina law. Purchaser shall pay all costs for all premiums for
the issuance of an Owner’s Title Policy and Lender’s policy and all required endorsements thereto (except those that are
required to cure any of the Mandatory Cure Items), except that Seller shall pay for the title commitment on behalf of Purchaser. All
other settlement fees, closing charges of the Purchaser’s Attorney and disbursement fees shall be paid by Purchaser.

 

    16 

     

    

 

6.7           Revenue
and Expense Allocations.

 

The following items of revenue
and expense shall be allocated as of 12:01 a.m. on the Closing Date:

 

		(a)	Real estate taxes and personal property
                                            tax, if any, shall be prorated on a calendar basis, based
                                            on the most recent assessed valuation and tax rate information available, and otherwise in
                                            accordance with the custom and practice in Pickens County, South Carolina. 
	 	 	 

		(b)	Municipal or other governmental improvement
                                            liens or assessments. Such liens or assessments shall be paid by Seller at Closing if the
                                            assessments were made prior to the Closing
                                            Date of this Agreement and the work was done or lien placed prior to the Closing
                                            Date. Any assessment and work performed prior to the Closing
                                            Date the cost of which is to be paid on an installment basis, Seller shall only be
                                            responsible for the payment of installments due prior to the Closing Date. Any other liens
                                            or assessments shall be the responsibility of the Purchaser as of the Closing Date to the
                                            extent the work has been authorized of public record on or subsequent to the Closing
                                            Date or the amount or any installment thereof is due and payable pursuant to the terms
                                            of the assessment or lien after the Closing
                                            Date. All special assessments levied after the Closing
                                            Date but payable in full or any installment thereof after the Closing
                                            Date of this Agreement shall be paid by Purchaser.

 

		(c)	Utility
Charges, including but not limited to, charges for water, sewer (public or private), gas, electric, fuel or heating oil, propane, cable
TV, and internet access.

 

		(d)	Seller shall terminate its insurance relating to the Hotel as
of 12:01 a.m. on the Closing Date.

 

		(e)	All revenues and expenses with respect to
                                            the Property, and applicable to the period of time before and after Closing, determined in
                                            accordance with sound accounting principles consistently applied, shall be allocated between
                                            Seller and Purchaser as provided herein. Except as provided to the contrary herein, Seller
                                            shall be entitled to all revenue and shall be responsible for all expenses for the period
                                            of time up to but not including the Closing Date, and Purchaser shall be entitled to all
                                            revenue and shall be responsible for all expenses (including unearned revenue and prepaid
                                            expense) for the period of time from and after and including) the Closing Date. All prorations
                                            and allocations shall be as of 12:01 a.m. on the Closing Date. Notwithstanding
                                            the foregoing, all revenues attributable the night leading into the Closing Date will be
                                            allocated 50% to Seller and 50% to Purchaser. All housekeeping costs incurred prior
                                            to the Closing Date shall be borne by Seller. On the Closing Date, Seller will provide to
                                            Purchaser a then-current guest ledger (including Hotel guests checking out on the Closing
                                            Date) for revenue through the night prior to the Closing Date, and Seller will receive a
                                            credit at Closing for the aforesaid guest revenue through the night prior to the Closing
                                            Date, such that, from and after Closing, all revenue from then-current Hotel guests belongs
                                            to Purchaser. The revenue from guests who check in to the Hotel on the day of Closing shall
                                            be payable entirely to Purchaser. All adjustments shall be shown on the Closing statements
                                            or on a supplement thereto (with such supporting documentation as the parties hereto may
                                            require being attached as exhibits to the Closing statements) and shall increase or decrease
                                            (as the case may be) the cash amount payable by Purchaser for the Purchase Price. Without
                                            limiting the generality of the foregoing, the following items of revenue and expense shall
                                            be allocated at Closing:

 

    17 

     

    

 

		(1)	Current and prepaid rents, if any under
                                            the Occupancy Agreements and Advance Bookings,
                                            including, without limitation prepaid room receipts, function receipts and other reservation
                                            receipts, travel agent commissions and any sums payable pursuant to association rebate agreements
                                            shall be allocated and apportioned to the party entitled to the receipts or revenues giving
                                            rise thereto. Purchaser shall receive a credit for all room and other deposits previously
                                            paid to Seller and applicable to occupancy or function arrangements booked for dates as of
                                            or after the Closing.

 

		(2)	Revenue and expenses under the Personal
                                            Property Leases and the Operating Agreements other
                                            than Seller’s hotel management agreement.

 

		(3)	Prepaid advertising permits and license
                                            fees, but only to the extent that such permits
                                            and licenses are transferrable to Purchaser and Purchaser is permitted to avail itself of
                                            the benefit of the prepaid fees.

 

		(4)	All other revenues and expenses of the
                                            Property, including, but not limited to, such things as restaurant bar and meeting room income
                                            and expenses and the like.

 

		(5)	At Closing,
                                            Purchaser will establish its own accounts with
                                            utility service providers in connection with the Hotel, including
                                            by funding utility deposits if required
                                            by the utility service providers, and Seller
                                            will be entitled to the return by the utility service providers of any utility deposits
                                            previously funded by Seller.

 

		(6)	Purchaser
                                            shall receive a credit for all unredeemed gift certificates.

 

    18 

     

    

 

		(7)	At Closing, Seller shall sell to Purchaser
                                            in connection with the Hotel, and Purchaser shall purchase from Seller, at face value all
                                            petty cash funds in the hands of Seller in connection with the Hotel guest operations at
                                            the Property. For purposes of this Agreement, transfer or sale at face value shall mean an
                                            amount equal to the total of all petty cash funds on hand and transferred to Purchaser. The
                                            purchase price of said petty cash fund as determined above, shall be paid to Seller at Closing
                                            by a charge to Purchaser increasing the Purchase Price.

 

		(8)	Such other items as are usually and customarily
                                            prorated between purchasers and sellers of hotel properties in the area where the Property
                                            is located.

 

		(9)	Prior
                                            to Closing, Seller shall pay out
                                            to employees any wages, vacation pay, pension,
                                            profit sharing and welfare benefits and other compensation and fringe benefits of all persons
                                            employed at the Property accrued as of the Closing Date, 12:01 a.m., including employment
                                            taxes or other fees or assessments attributable thereto; Purchaser shall be responsible for
                                            such items as shall accrue to persons employed at Property from and after the time of Closing.
                                            The Purchaser shall have no obligations or responsibilities for any such cost for the period
                                            prior to closing. Seller shall terminate all employees effective the Closing Date and said
                                            employees shall be rehired at Purchaser’s option.

 

		(10)	Seller shall be required to pay when
                                            due all sales and occupancy taxes and like impositions currently through the night
                                            leading into the Closing Date; provided, however, that if any such amounts are in
                                            the nature of prepaid sums in respect of periods subsequent to the Closing, then such amounts
                                            shall be prorated as of the Closing Date.

 

		(f)	If accurate allocations cannot be made at
                                            Closing because current bills are not obtainable (as, for example, in the case of utility
                                            bills and/or real estate or personal, property taxes), the parties shall allocate such revenue
                                            or expenses at Closing on the best available information, subject to adjustment upon receipt
                                            of the final bill or other evidence of the applicable revenue or expense. The obligation
                                            to make the adjustment shall survive the closing of the transaction contemplated by this
                                            Agreement. Any revenue received or expense incurred by Seller or Purchaser with respect to
                                            the Property after the Closing Date shall be promptly allocated in the manner described herein
                                            and the parties shall promptly pay or reimburse any amount due.

 

    19 

     

    

 

6.8           Acquisition
and Payment for Inventory.

 

Seller agrees to sell to
Purchaser and Purchaser agrees to purchase from Seller on the Closing Date (which purchase amount shall be paid by Purchaser in addition
to the Purchase Price) all of Seller’s inventories of unopened cases of food
and beverage in an amount equal to the cost that Seller paid therefor. Seller agrees to sell
to Purchaser and Purchaser agrees to Purchase from Seller, cleaning supplies to include detergents, soaps etc., all
other items of Inventory at no additional cost to Purchaser.

 

6.9           Acquisition
and Payment for Guest Revenue

 

As set
forth in Section 6.7(e), on the Closing Date, Seller will receive a credit at Closing for the then-current guest ledger (including Hotel
guests checking out on the Closing Date) for revenue through the night prior to the Closing Date such
that Purchaser will retain all Guest Revenue accruing and payable on and after the Closing Date.

 

6.10         Keys,
Safe Deposit Boxes and Baggage.

 

At the Closing, Seller shall
deliver to Purchaser:

 

		(a)	All
keys to all locks on the Property including but not limited to all keys to any safe deposit boxes at the Property which are not in use
by guests at the Property;

 

		(b)	Any
receipts and/or agreements relating to safe deposit boxes at the Property being used by guests together with lists containing the name,
address and room number of each such depositor; and

 

		(c)	All
baggage parcels, laundry or valet packages checked or left by guests of the Property with Seller prior to the consummation of Closing
shall be listed in inventory to be prepared jointly by Seller and Purchaser or their respective agents at Closing. Seller shall indemnify
and hold Purchaser harmless from any and all loss, cost, liability or expense including reasonable attorneys’ fees incurred in
connection with any damage to or theft or other loss of any such baggage, parcels, laundry or valet packages prior to closing. Purchaser
shall indemnify and hold Seller harmless from any loss, cost, liability or expense including reasonable attorneys’ fees incurred
in connection with any damage to, theft or other loss of any baggage, parcels, laundry or valet packages after closing.

 

ARTICLE VII - GENERAL

 

7.1           Condemnation.

 

In the event of any actual
taking, pursuant to the power of eminent domain, of all or any material portion of the Land, or
of any portion of the Improvements, or of any access or parking, or any proposed sale in lieu thereof, Seller shall give written
notice thereof to Purchaser promptly after Seller learns or receives notice thereof.

 

    20 

     

    

 

If all or any material
part of the Land, or any portion of the Improvements, or any access or parking, is,
or is to be, so condemned or sold, Purchaser shall have the right to terminate this Agreement by written notice to Seller given within
three (3) days following the final determination of the cost of such taking (as determined by Seller) and receive a prompt refund of
Deposit. If Purchaser elects not to terminate this Agreement, then Purchaser shall be paid or assigned, as applicable, and all proceeds,
awards and other payments arising out of such condemnation or sale and the Closing shall occur as set forth herein with no reduction
in Purchase Price.

 

Until this Agreement
is terminated, Seller shall not settle or compromise any such proceeding regarding the Land without Purchaser's written consent which
shall not be unreasonably withheld, conditioned or delayed. If Purchaser elects to terminate this Agreement by giving Seller written
notice thereof as set forth in this Section 7.1, then Purchaser shall receive a prompt refund of Deposit and all obligations of
Seller and Purchaser hereunder (except those set forth herein which expressly survive a termination of this Agreement) shall terminate
immediately.

 

7.2           Risk
of Loss by Casualty.

 

The risk of any casualty
loss or damage to the Property prior to the Closing shall remain upon Seller. If any casualty loss or damage to the Real Property of
Improvements occurs prior to Closing (except to the extent caused by Purchaser or Purchaser’s Representatives in connection with
Purchaser’s investigations hereunder), Purchaser shall have the right to terminate this Agreement by written notice to Seller given
within three (3) days following a final determination of the cost of such casualty (as determined by Seller), Purchaser shall receive
a prompt refund of the Deposit, and all obligations of Seller and Purchaser hereunder (except those set forth herein which expressly
survive a termination of this Agreement) shall terminate immediately. If Purchaser elects not to terminate this Agreement, Purchaser
shall be obligated to close with no reduction in Purchase Price and all insurance proceeds and rights to proceeds arising out of such
loss or damage shall be paid or assigned, as applicable, to Purchaser at Closing, and Purchaser
will receive a credit against the Purchase Price at Closing in the amount of any applicable deductibles.

 

7.3           INTENTIONALLY
DELETED

 

7.4           Broker.

 

The parties hereto acknowledge
that Seller has agreed to pay the fee or commission of Broker by separate agreement.
Purchaser and Seller warrant and represent to each other that it has not dealt with any real estate broker other than Broker in connection
with this transaction.

 

7.5           Confidentiality.

 

Except as hereinafter provided,
from and after the execution of this Agreement, Purchaser and Seller shall keep the terms, conditions and provisions of this Agreement
confidential and neither shall make any public announcements hereof unless the other first approves of same in writing, nor shall either
disclose the terms, conditions and provisions hereof, except to persons who “need to know”, such as their respective officers,
directors, employees, attorneys, accountants, engineers, surveyors, consultants, lenders, financiers, partners, investors, potential
lessees and bankers and such other third parties whose assistance is required in connection with the consummation of this transaction
or as otherwise required by court order or applicable law.

 

    21 

     

    

 

7.6           Seller’s
Accounts Receivable

 

Seller agrees to sell to
Purchaser and Purchaser agrees to purchase from Seller on the Closing Date Seller’s accounts
receivable (which purchase amount shall be paid by Purchaser in addition to the Purchase Price). Purchaser shall pay for Seller’s
accounts receivable (and Seller shall receive a credit at Closing) in an amount equal
to (a) for Seller’s accounts receivable outstanding for a period of thirty (30)
days or less (“0-30 Day AR”), ninety percent (90%) of the amount of such 0-30 Day AR; and (b) for Seller’s
accounts receivable outstanding for a period of thirty (30) to sixty (60) days (the
 “30-60 Day AR”), fifty percent (50%) of the amount of such 30-60 Day AR. Seller’s accounts
receivable outstanding for a period of ninety-one (91) days or more (the “91-Day AR”) shall not be purchased
by Purchaser and shall be and remain the property of Seller subsequent to the Closing of the transaction contemplated hereby. At the
Closing, Seller shall prepare a list of its outstanding accounts receivable as of midnight
on the date prior to the Closing, specifying the name of each account and the amount due to Seller. Purchaser shall remit
to Seller any amounts received by Purchaser as payment for the 91-Day AR if Purchaser actually collects any such amounts and shall
pay the monies collected in respect thereof (less credit card fees and other costs of collection)
to Seller at the end of the week, accompanied by a statement showing the amount collected on each such account. Other than the foregoing,
Purchaser shall have no obligation with respect to any such account, and Purchaser shall not be required to take any legal proceeding
or action to effect collection on behalf of Seller. It is generally the intention of Purchaser and Seller that if any such accounts are
paid to Purchaser, then Purchaser shall collect same and remit to Seller in the manner above provided, but Purchaser shall have no obligation
to pursue and Seller reserves the right to collect the 91-Day AR by all means Seller deems appropriate, at no cost to Purchaser.

 

7.7           Franchisor
Approval.

 

Within
ten (10) days following the Effective Date, Purchaser will file application with Franchisor and will use commercially reasonable efforts
to procure Franchisor’s approval, in form reasonably satisfactory to Purchaser, of (a) either (i)the assignment of the Franchise
Agreement to Purchaser and Purchaser’s assumption of the obligations under the Franchise Agreement accruing from and after Closing
or (ii) a replacement franchise agreement between Purchaser and Franchisor for the Hotel, and (b) a PIP that is reasonably satisfactory
to Purchaser (collectively, the “Franchisor Approval”). Seller will cooperate reasonably with Purchaser’s efforts to
procure the Franchisor Approval, including by signing applications and delivering to Franchisor information as Franchisor may request.
All costs and expenses in connection with the termination, modification or assignment of the Franchise Agreement, or in connection with
the Franchisor Approval, or otherwise in connection with Purchaser’s agreement with Franchisor will be paid by Purchaser. Notwithstanding
the foregoing Purchaser shall not request the modification, waiver, or amendment to any material provisions of the existing Franchise
Agreement prior to or as a condition of Closing.

 

    22 

     

    

 

ARTICLE VIII - DEFAULT; TERMINATION RIGHTS

 

8.1           Default
by Seller.

 

If Seller defaults and
fails to perform its obligations hereunder, Purchaser may either: (a) waive the default and proceed to Closing; or (b) terminate
this Agreement in which event Escrow Agent shall return the Deposit to Purchaser, and
neither party shall have any further rights or liabilities hereunder (except for those provisions which survive the termination of this
Agreement).

 

8.2           Default
by Purchaser.

 

If Purchaser defaults and
fails to perform its obligations hereunder, and such failure continues uncured for a period
of five (5) business days after notice from Seller to Purchaser thereof (provided, however, that no such notice or cure period will apply
with respect to obligations to be performed by Purchaser on the Closing Date), Seller, at its option on account of such default,
may (a) terminate this Agreement, in which event, if such default occurs after or continues
beyond the expiration of the Due Diligence Period, Seller shall retain any Deposit previously paid by Purchaser with any interest
(otherwise, the Deposit will be returned to Purchaser) and the parties hereto shall
be released from all further obligations hereunder except those which expressly survive a termination of this Agreement. Seller and Purchaser
agree that in the event of a Purchaser’s default, Seller’s damages would be difficult, if not impossible, to quantify. Accordingly,
Seller and Purchaser have agreed that the Deposit previously paid by Purchaser together with interest earned thereon represents a fair
and reasonable approximation of Seller’s damages. Seller shall be entitled to the Deposit previously paid by Purchaser and interest
thereon regardless of the amount of Seller’s actual damages; or (b) waive its right to terminate the Agreement as to that default
only and proceed to Closing in accordance herewith.

 

8.3           Costs
and Attorneys’ Fees.

 

In the event of any litigation
or dispute between the parties arising out of or in any way connected with this Agreement resulting in any litigation, the prevailing
party in such litigation shall be entitled to recover its reasonable costs of prosecuting and/or defending same, including, without limitation,
reasonable attorneys' fees at trial and all appellate levels. The provisions of this Section shall survive the Closing or termination
of the transaction contemplated hereby.

 

ARTICLE IX - MISCELLANEOUS

 

9.1           Completeness;
Modification.

 

This Agreement constitutes
the entire agreement between the parties hereto with respect to the transactions contemplated hereby and supersedes all prior discussions,
understandings, agreements and negotiations between the parties hereto. This Agreement may be modified only by a written instrument duly
executed by the parties hereto.

 

    23 

     

    

 

9.2           Assignment.

 

Purchaser may not assign
this Agreement or any of its rights or obligations hereunder without Seller's prior written consent, which consent may be withheld in
Seller's sole and absolute discretion. Notwithstanding, Purchaser may assign or transfer its right, title and interest under the Agreement
to any affiliate of Purchaser without the necessity of Seller’s consent, provided, Purchaser shall provide written notice of such
assignment to Seller no later than ten (10) days prior to Closing.

 

9.3           Successors
and Assigns.

 

This Agreement shall bind
and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

9.4           Days.

 

If any action is required
to be performed, or if any notice, consent or other communication is given, on a day that is a Saturday or Sunday or a legal holiday
in the jurisdiction in which the action is required to be performed or in which is located the intended recipient of such notice, consent
or other communication, such performance shall be deemed to be required, and such notice, consent or other communication shall be deemed
to be given, on the first business day following such Saturday, Sunday or legal holiday. Unless otherwise specified herein, all references
herein to a “day” or “days” shall refer to calendar day and not business days.

 

9.5           Governing
Law.

 

This Agreement and all documents
referred to herein shall be governed by and construed and interpreted in accordance with the laws of the State of South Carolina. Seller
and Purchaser agree that the state courts of Pickens County shall have jurisdiction to hear and decide any dispute arising under the
Agreement.

 

9.6           Mandatory
Binding Arbitration. The parties hereby waive any right to trial by jury and further agree that any controversy or claim relating
to or arising from this Agreement (an “Arbitrable Dispute”) will be settled by arbitration.  Arbitration
on any Arbitrable Dispute will proceed in Pickens County, South Carolina, in accordance with the Commercial Arbitration Rules of the
Judicial Arbitration and Mediation Services (the “JAMS”) as such rules may be modified herein or as otherwise
agreed by the parties in controversy.  Following thirty (30) days’ notice by any party of intention to invoke arbitration,
any Arbitrable Dispute not mutually resolved within such thirty (30) day period will be determined by a single arbitrator upon which
the parties agree, or, in the event of an absence of such agreement the single arbitrator will be appointed by JAMS

 

9.7           Counterparts.

 

To facilitate execution,
this Agreement may be executed in as many counterparts as may be required. It shall not be necessary that the signature on behalf of
both parties hereto appear on each counterpart hereof. All counterparts hereof shall collectively constitute a single agreement. Each
counterpart may be executed and delivered by facsimile transmission.

 

    24 

     

    

 

9.8           Severability.

 

If any term, covenant or
condition of this Agreement, or the application thereof to any person or circumstance, shall to any extent be invalid or unenforceable,
the remainder of this Agreement, or the application of such term, covenant or condition to other persons or circumstances, shall not
be affected thereby, and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted
by law.

 

9.9           Costs.

 

Regardless of whether Closing
occurs hereunder, and except as otherwise expressly provided herein, each party hereto shall be responsible for its own costs in connection
with this Agreement and the transactions contemplated hereby, including, without limitation, fees of attorneys, engineers, and accountants.

 

9.10         Notices.

 

All notices, requests, demands
and other communications hereunder shall be in writing and shall be delivered by hand, sent prepaid by Federal Express (or a comparable
overnight delivery service), sent by the United States mail, certified, postage prepaid, return receipt requested, at the addresses and
with such copies as designated below, or sent by facsimile or email, in which case notice shall be deemed delivered upon transmission.
Any notice, request, demand or other communication delivered or sent in the manner aforesaid shall be deemed given or made (as the case
may be) when actually delivered to the intended recipient. 

 

	If to Seller:	William R. Elliott
	 	Medalist Fund Manager, Inc.
	 	1051 E. Cary Street, Suite 601
	 	James Center Three
	 	Richmond, VA 23219
	 	Fax: (804) 344-5072
	 	Email: bill.elliott@medalistprop.com
	 	 
	With a copy to:	Cindy J. Heidel, Esq.
	 	Kaplan Voekler Cunningham & Frank, PLC
	 	1401 E. Cary Street
	 	Richmond, VA 23219
	 	Fax: (804) 823-4033
	 	Email: cheidel@kv-legal.com

 

    25 

     

    

 

	If to Purchaser:	Raj Patel
	 	Rising Sun Investments & Management, LLC
	 	13200 International Airport Blvd.
	 	Jacksonville, FL 32218
	 	E-mail: raj.patel@risingsunim.com
	 	 
	With a copy to:	Larry Phillips, Esq.
	 	S. Larry Phillips, P.C.
	 	777 Gloucester St., Ste 415
	 	Brunswick, GA 31520
	 	Email: larry@slppc.com

 

or to such other address as the intended recipient
may have specified in a notice to the other party. Any party hereto may change its address or designate different or other persons or
entities to receive copies by notifying the other party and Escrow Agent in a manner described in this Section.

 

9.11         Escrow Agent.

 

Escrow Agent referred to
in the definition thereof contained in Section 1.1 hereof has agreed to act as such for the convenience of the parties without
fee or other charges for such services as Escrow Agent. Escrow Agent shall not be liable: (a) to any of the parties for any act or omission
to act except for its own gross negligence or willful misconduct; (b) for any legal effect, insufficiency, or undesirability of any instrument
deposited with or delivered by Escrow Agent or exchanged by the parties hereunder, whether or not Escrow Agent prepared such instrument;
(c) for any loss or impairment of funds that have been deposited in escrow while those funds are in the course of collection, or while
those funds are on deposit in a financial institution, if such loss or impairment results from the failure, insolvency or suspension
of a financial institution; (d) for the expiration of any time limit or other consequence of delay, unless a properly executed written
instruction, accepted by Escrow Agent, has instructed Escrow Agent to comply with said time limit; (e) for the default error, action
or omission of either party to the escrow. Escrow Agent, in its capacity as escrow agent, shall be entitled to rely on any document or
paper received by it, believed by such Escrow Agent, in good faith, to be bona fide and genuine. Escrow Agent shall not be liable for
Escrow Agent's compliance with any legal process, subpoena, writ, order, judgment and decree of any court, whether issued with or without
jurisdiction, and whether or not subsequently vacated, modified, set aside or reversed. Seller and Purchaser waive any conflict of intent
or apparent conflict arising out of Escrow Agent acting as attorney for Receiver.

 

9.12         Incorporation by
Reference.

 

All of the exhibits attached
hereto are by this reference incorporated herein and made a part hereof.

 

9.13         Survival.

 

The representations and warranties
of Seller and Purchaser made in or pursuant to this Agreement shall survive Closing for a period of one year. All agreements to indemnify
Seller and Purchaser made in or pursuant to this Agreement shall survive Closing.

 

    26 

     

    

 

9.14         Further Assurances.

 

Seller and Purchaser each
covenant and agree to sign, execute and deliver, or cause to be signed, executed and delivered, and to do or make, or cause to be done
or made, upon the written request of the other party, any and all agreements, instruments, papers, deeds, acts or things, supplemental,
confirmatory or otherwise, as may be reasonably required by either party hereto for the purpose of or in connection with consummating
the transactions described herein.

 

9.15         No Partnership.

 

This Agreement does not and
shall not be construed to create a partnership, joint venture or any other relationship between the parties hereto except the relationship
of seller and purchaser specifically established hereby.

 

9.16        Time of Essence.

 

Time is of the essence with
respect to every provision hereof.

 

9.17         Rules of Construction.

 

The following rules shall
apply to the construction and interpretation of this Agreement:

 

(a)           Singular
words shall connote the plural number as well as the singular and vice versa, and the masculine shall include the feminine and the neuter.

 

(b)           All
references herein to particular articles, sections, subsections, clauses or exhibits are references to articles, sections, subsections,
clauses or exhibits of this Agreement.

 

(c)          The
table of contents and headings contained herein are solely for convenience of reference and shall not constitute a part of this Agreement
nor shall they affect its meaning, construction or effect.

 

(d)           Each
party hereto and its counsel have reviewed and revised (or requested revisions of) this Agreement and have participated in the preparation
of this Agreement, and therefore any usual rules of construction requiring that ambiguities are to be resolved against a particular party
shall not be applicable in the construction and interpretation of this Agreement or any exhibits hereto.

 

9.18         Email.

The parties agree that this
Agreement may be transmitted between them by electronic mail (“Email”). The parties intend that emailed signatures
constitute original signatures and that an emailed agreement containing the signatures (original or emailed) of all the parties is binding
on the parties.

 

    27 

     

    

 

9.19         Memorandum
Non-Recordation.

 

Neither Purchaser nor Seller
shall record this Agreement or any memorandum of the terms hereof.

 

9.20         Reciprocal
Indemnity.

 

(a)           Seller
shall hold harmless, indemnify and defend Purchaser against any and all obligations, claims, losses, damages, liabilities and expenses
(including reasonable attorneys’ fees and other charges), (i) arising out of events, contractual obligations, acts or omissions
of Seller or its agents that occurred in connection with the ownership or operation of the Property prior to the Closing, including
employee wages and benefits, or (ii) arising out of damage to property or injury to or death of any person occurring on or about
or in connection with the Property or any portion thereof or with respect to the Hotel’s operations at any time or times prior
to the Closing or any claims for any debts or obligations incurred by Seller relating to the Property, or (iii) arising out of any Environmental
Damages caused by Seller or its predecessors prior to Closing (provided, however, that
Seller shall not have liability for any Environmental Damage arising from a condition of which Purchaser was aware prior to Closing).
This provision shall survive Closing.

 

(b)           Purchaser
shall hold harmless, indemnify and defend Seller against any and all obligations, claims, losses, damages, liabilities and expenses (including,
without limitation, reasonable attorneys’ fees and other charges) (i) arising out of events, contractual obligations, acts or omissions
of Purchaser or its agents that occur in connection with the ownership or operation of the Property after the Closing including employee
wages and benefits, (ii) arising out of any damage to property or injury to or death of any person occurring on or about the Property
or any portion thereof at any time after the Closing or any claims for any debts or obligations incurred by Purchaser relating to the
Property; or (iii) arising out of any Environmental Damages caused by Purchaser after Closing. This provision shall survive Closing.

 

9.21         Operation
of the Hotel.

 

Seller will continue to operate
and maintain the Property in the same manner, including with respect to advance bookings and
maintenance of Inventory levels, as it maintained the same prior to the date hereof and will keep the Property in its present
state of repair subject to normal wear and tear, exercising the same degree of care in such matters as Seller has previously exercised.

 

9.22         Force
Majeure.

 

In the event Purchaser, its
agents, members, contractors, lenders, or assigns are prevented or delayed in the performance of any of the obligations under this Agreement,
including but not limited to, the completion of due diligence, obtaining financing, or Franchisor
Approval due to governmental restrictions, governmental office closures or other
restrictive governmental action or governmental or regulatory agency rules, orders, mandates, ordinances or regulations imposed as a
result of the novel coronavirus, Purchaser shall have the right, but not the obligation, to terminate this Agreement and shall be entitled
to a full refund of the Deposit even if said termination occurs after the expiration of the Due
Diligence Period. In the event Seller is unable to continue to operate the Hotel pursuant to Section 9.20 herein, whether
said operations are disrupted in full or part, due to governmental restrictions or other restrictive governmental action or governmental
or regulatory agency rules, orders, mandates, ordinances or regulations imposed as a result of the novel coronavirus, Purchaser shall
have the right, but not the obligation, to terminate this Agreement and shall be entitled to a full refund of the Deposit even if said
termination occurs after the expiration of the Due Diligence Period.

 

    28 

     

    

 

9.23         Section
1031 Exchange. Either party may consummate the purchase or sale of the Property as part of a so-called like kind exchange (an
 “Exchange”) pursuant to section 1031 of the Internal Revenue Code (the “Code”),
provided that (i) the Closing shall not be delayed or affected by reason of an Exchange nor shall the consummation or accomplishment
of any Exchange be a condition precedent or condition subsequent to a party’s obligations under this Agreement; (ii) any party
desiring an Exchange shall effect its Exchange through an assignment of this Agreement, or its rights under this Agreement, to a qualified
intermediary and the other party shall not be required to take an assignment of the purchase agreement for the relinquished or replacement
property or be required to acquire or hold title to any real property for purposes of consummating such Exchange; and (iii) the
party desiring an Exchange shall pay any additional costs that would not otherwise have been incurred by Buyer or Seller had such party
not consummated its purchase or sale through an Exchange. Neither party shall by this agreement or acquiescence to an Exchange desired
by the other party (1) have its rights under this Agreement affected or diminished in any manner or (2) be responsible for
compliance with or be deemed to have warranted to the other party that such party’s Exchange in fact complies with section 1031
of the Code.

 

[SIGNATURE PAGE TO FOLLOW]

 

    29 

     

    

 

IN WITNESS WHEREOF, Seller and Purchaser have caused this Agreement
to be executed in their names by their respective duly authorized representatives.

 

	 	SELLER:
	 	 
	 	MDR CLEMSON, LLC, a
	 	Delaware limited liability company
	 	 
	 	By:	 
	 	 	William R. Elliott, Authorized Signatory
	 	 

 

	 	MDR CLEMSON TRS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	 
	 	Name:	 
	 	Its:	                     

 

    30 

     

    

 

	 	PURCHASER:
	 	 
	 	RISING
SUN INVESTMENTS & MANAGEMENT, LLC a Florida limited liability company
	 	 
	 	By:	 
	 	 	Name:	                  
	 	 	Title:	 

 

    31 

     

    

 

EXHIBIT A

 

Legal Description

 

Fee Simple:

 

All that certain piece, parcel or
lot of land, with all improvements thereon, lying and being in the State of South Carolina, County of Pickens, being shown and designated
as Parcel #1, containing 5.919 acres on plat entitled "Subdivision Plat for Upstate Hotel Associates, LLC" prepared by Freeland
 & Associates, Inc., dated September 26, 2003, last revised October 29, 2003, recorded in the Office of the Register of Deeds for
Pickens County in Plat Book 488 at Page 1, and as shown as 5.919 acres on a more recent survey entitled "ALTA/ACSM Land Title Survey
prepared for Herl Aum, LLC", prepared by Site Design, Inc., dated July 28, 2006, last revised on October 10, 2006, recorded in the
Office of the Register of Deeds for Pickens County in Plat Book 564 at Page 15, reference being made to the most recent survey for a
more complete metes and bounds description hereof.

 

Easement:

 

Together with utility easements created under
Declaration of Easements and Covenants by and betw en Upstate Hotel Associates, LLC and Clemson Tiger, LLC as recorded in Book 790, Page
224.

 

    32 

     

    

 

EXHIBIT B

 

Schedule of Operating Agreements

 

Schedule of Operating Agreements

 

	Service Provided	Company
	 	 
	1.     Sales Pro	Amedaus
	2.     Lawn Care	Antonio Alvarez Lawn Care/Weedman
	3.     Dish Washer	Auto Chlor
	4.     Fire Alarm	Carolina Burglar & First Alarm Co.
	5.     TV	Direct TV
	6.     Water and Waste	City of Clemson
	7.     Power	Duke Energy
	8.     Gas	Forthill Naturel Gas
	9.     PMS	Image Technology Systems
	10.   PMS – Accounting	M3 Accounting Services
	11.   Music	Mood Media
	12.   Pest Control	Arrow Exterminators
	13.   Laundry Chemicals	Eco Lab
	14.   Elevator	Suncoast Elevator Inspection Co.
	 	Thyssen Krupp Elevator Corp
	 	(now TK Elevator)
	15.   Internet and Cameras	Unified IT & Security
	16.   Grease Trap	Upstate Septic

 

    33 

     

    

 

EXHIBIT C

 

Schedule of Occupancy Agreements

 

 

NONE (Clemson University occupancy agreement will terminate prior
to Closing)

 

    34 

     

    

 

EXHIBIT D

 

Schedule of Personal Property Leases

 

NONE

 

    35

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}]]