Document:

LEASE AGREEMENT

 

DATED AS OF MARCH 13, 2014

 

BETWEEN

 

ARC
Hospitality Stratford, LLC,

 

A Delaware limited liability company

 

AS LESSOR

 

AND

 

ARC
Hospitality TRS Stratford, LLC,

 

A Delaware limited liability company

 

AS LESSEE

 

    	 

    	 

    

  

LEASE AGREEMENT

 

THIS LEASE AGREEMENT
(hereinafter called “Lease”), made as of the 13th day of March, 2014, by and between ARC
Hospitality Stratford, LLC, a Delaware limited liability company
(hereinafter called “Lessor”), and ARC
Hospitality TRS Stratford, LLC, a Delaware limited liability company
(hereinafter called “Lessee”), provides as follows.

 

WITNESSETH:

 

Lessor owns a fee title
or leasehold interest to the Leased Property (as defined below) and desires to lease to Lessee, and Lessee desires to lease from
Lessor, the Leased Property on the terms set forth herein.

 

NOW, THEREFORE, Lessor
and Lessee, intending to be legally bound, agree that Lessor, in consideration of the payment of rent by Lessee to Lessor, the
covenants and agreements to be performed by Lessee, and upon the terms and conditions hereinafter stated, does hereby rent and
lease unto Lessee, and Lessee does hereby rent and lease from Lessor, the Leased Property (as defined below).

 

ARTICLE
I

 

Section
1.1.          Leased Property.

 

The Leased Property
is comprised of all of Lessor’s right, title and interest in the following:

 

(a)     a
parcel or parcels of land or ground leasehold interest described on Exhibit A attached hereto and by reference incorporated herein
(the “Land”);

 

(b)     all
buildings, structures and other improvements of every kind including, but not limited to, alleyways and connecting tunnels, sidewalks,
utility pipes, conduits and lines (on-site and offsite), parking areas and roadways appurtenant to such buildings and structures
presently situated upon the Land (collectively, the “Leased Improvements”);

 

(c)     all
easements, rights and appurtenances relating to the Land and the Leased Improvements;

 

(d)     all
equipment, machinery, fixtures, and other items of property required for or incidental to the use of the Leased Improvements as
a hotel, including all components thereof, now and hereafter permanently affixed to or incorporated into the Leased Improvements,
including, without limitation, all furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating,
refrigerating, incineration, air and water pollution control, waste disposal, air-cooling and air-conditioning systems and apparatus,
sprinkler systems and fire and theft protection equipment, all of which to the greatest extent permitted by law are hereby deemed
by the parties hereto to constitute real estate, together with all replacements, modifications, alterations and additions thereto
(collectively, the “Fixtures”);

 

    	 

    	 

    

  

(e)      all
furniture and furnishings and all other items of personal property located on, and used in connection with, the operation of the
Leased Improvements as a hotel, together with all replacements, modifications, alterations and additions thereto;

 

(f)       all
existing leases of space within the Leased Property (including any security deposits or collateral held by Lessor pursuant thereto);
and

 

(g)      the
rights of Lessor in any Franchise Agreement with respect to the Leased Improvements.

 

For all purposes hereunder,
the term “Leased Property” shall mean the specific parcel or parcels of Land together with all items of property described
in Section 1.1(b) through (g) above relating to said parcel or parcels of land.

 

THE LEASED PROPERTY IS DEMISED IN ITS PRESENT
CONDITION WITHOUT REPRESENTATION OR WARRANTY (EXPRESSED OR IMPLIED) BY LESSOR AND SUBJECT TO ALL THE RIGHTS OF PARTIES IN POSSESSION,
AND TO THE EXISTING STATE OF TITLE INCLUDING ALL COVENANTS, CONDITIONS, RESTRICTIONS, EASEMENTS AND OTHER MATTERS OF RECORD INCLUDING
ALL APPLICABLE LEGAL REQUIREMENTS, THE LIEN OF FINANCING INSTRUMENTS, MORTGAGES, DEEDS OF TRUST AND SECURITY DEEDS, AND INCLUDING
OTHER MATTERS WHICH WOULD BE DISCLOSED BY AN INSPECTION OF THE LEASED PROPERTY OR BY AN ACCURATE SURVEY THEREOF.

 

Section
1.2.          Term

 

The term of the Lease
(the “Term”) is set forth on Exhibit B attached hereto.

 

ARTICLE
II

 

Section
2.1.          Definitions.

 

For all purposes of
this Lease, except as otherwise expressly provided or unless the context otherwise requires, (a) the terms defined in this Article
have the meanings assigned to them in this Article and include the plural as well as the singular, (b) all accounting terms not
otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles as are
at the time applicable, (c) all references in this Lease to designated “Articles,” “Sections” and other
subdivisions are to the designated Articles, Sections and other subdivisions of this Lease and (d) the words “herein,”
“hereof” and “hereunder” and other words of similar import refer to this Lease as a whole and not to any
particular Article, Section or other subdivision.

 

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Additional
Charges - As defined in Section 3.3.

 

Affiliate
- As used in this Lease, the term “Affiliate” of a person shall mean (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,
five percent (5%) 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.

 

Annual Budget
- As used in this Lease, the term “Annual Budget” shall mean an operating and capital budget prepared by Lessee and
delivered to Lessor in accordance with Section 3.6.

 

Award
- As defined in Section 15.1(c).

 

Base Rate
- The prime rate of interest announced publicly by Citibank, N.A., in New York, New York, from time to time. If no such rate is
announced or becomes discontinued, then such rate as is published in The Wall Street Journal as the prime rate from time to time.

 

Base Rent
- As defined in Article III.

 

Beverage
Revenue - Gross revenue from (i) the sale of wine, beer, liquor or other alcoholic beverages, whether sold in the bar or lounge,
delivered to a guest room, sold at meetings or banquets or at any other location at the Leased Property or (ii) non-alcoholic beverages
sold in the bar or lounge. Such revenues shall not include the following:

 

(a)          Any
gratuity or service charge added to a customer’s bill or statement in lieu of a gratuity which is paid to an employee;

 

(b)          Credits,
rebates, or refunds; and

 

(c)          Sales
taxes or taxes of any other kind imposed on the sale of alcoholic or other beverages.

 

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Business
Day - Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which national banks in the City of New York,
New York, or in the municipality wherein the applicable Leased Property is located are closed.

 

Capital
Expenditures - As used in this Lease, the term “Capital Expenditures” shall mean expenditures for capital improvements
to the Leased Property and replacement or refurbishing of the Improvements, Fixtures, Furniture and Equipment and of other equipment
and systems that constitute portions of the Leased Property in connection with its Primary Intended Use, and the cost of all approvals,
licenses, permits and other authorizations necessary to complete such improvements, replacements and refurbishings, all as designated
as capital improvements by and determined in accordance with generally accepted accounting principles.

 

Capital
Impositions - Taxes, assessments or similar charges imposed upon or levied against the Leased Property for the costs of public
improvements, including, without limitation, roads, sidewalks, public lighting fixtures, utility lines, storm sewers, drainage
facilities and similar improvements.

 

CERCLA
- The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended.

 

Code
- The Internal Revenue Code of 1986, as amended.

 

Commencement
Date - As defined on Exhibit B.

 

Condemnation,
Condemnor - As defined in Section 15.1.

 

Consolidated
Financials - For any fiscal year or other accounting period for Lessee and its consolidated subsidiaries, statements of earnings
and retained earnings and cash flow and for the period from the beginning of the respective fiscal year to the end of such period
and the related balance sheet as at the end of such period, together with the notes thereto, all in reasonable detail and setting
forth in comparative form the corresponding figures for the corresponding period in the preceding fiscal year, and prepared in
accordance with generally accepted accounting principles and certified by Lessee’s Chief Accounting Officer. Date of Taking
- As defined in Section 15.1(b).

 

Eligible
Independent Contractor - A management company that meets all of the following requirements:

 

(a)          The
management company does not own, directly or indirectly, more than 35% of the outstanding stock of American Realty Capital Hospitality
Trust, Inc. after applying the constructive ownership rules in Section 318(a) of the Code as modified by Section 856(c)(5) of the
Code.

 

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(b)          If
the management company is a corporation, no more than 35% of the total combined voting power of its outstanding stock (or 35% of
the total shares of all classes of its outstanding stock) or, if it is not a corporation, no more than 35% of the ownership interest
in its assets or net profits is owned, directly or indirectly, by one or more Persons owning 35% or more of the outstanding stock
of American Realty Capital Hospitality Trust, Inc. in each case after applying the constructive ownership rules in Section 318(a)
of the Code as modified by Section 856(c)(5) of the Code.

 

(c)          Neither
American Realty Capital Hospitality Trust, Inc., American Realty Capital Hospitality Operating Partnership, L.P., Lessor, nor Lessee,
any entity in which any of the foregoing owns an interest thereof derives any income from the management company.

 

(d)          At
the time that the management company enters into a management agreement with Lessee to operate the Leased Property, the management
company (or any “related person” within the meaning of Section 856(d)(9)(F) of the Code) is actively engaged in the
trade or business of operating “qualified lodging facilities” within the meaning of Section 856(d)(9)(D) of the Code
for a Person who is not a “related person” within the meaning of Section 856(d)(9)(F) of the Code with respect to American
Realty Capital Hospitality Trust, Inc. or Lessee (an “Unrelated Person”).

 

Encumbrance
- As defined in Article XXXIV.

 

Environmental
Authority - Any department, agency or other body or component of any Government that exercises any form of jurisdiction or
authority over Lessor, Lessee or the Leased Property under any Environmental Law.

 

Environmental
Authorization - Any license, permit, order, approval, consent, notice, registration, filing or other form of permission or
authorization required under any Environmental Law.

 

Environmental
Laws - All applicable federal, state, local and foreign laws and regulations relating to the environment (including without
limitation, ambient air, surface water, ground water, land surface or subsurface strata), including without limitation laws and
regulations relating to emissions, discharges, Releases or threatened Releases of Hazardous Materials or otherwise relating to
the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials and
laws relating to health or safety. Environmental Laws include but are not limited to CERCLA, FIFRA, RCRA, SARA, OSHA and TSCA.

 

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Environmental
Liabilities - Any and all obligations to pay the amount of any judgment or settlement, the cost of complying with any settlement,
judgment or order for injunctive or other equitable relief, the cost of compliance or corrective action in response to any notice,
demand or request from an Environmental Authority, the amount of any civil penalty or criminal fine, and any court costs and reasonable
amounts for attorney’s fees, fees for witnesses and experts, and costs of investigation and preparation for defense of any
claim or any Proceeding, regardless of whether such Proceeding is threatened, pending or completed, that may be or have been asserted
against or imposed upon Lessor, Lessee, any Predecessor, the Leased Property or any property used therein and arising out of:

 

(a)          Failure
of Lessee, Lessor, any Predecessor or the Leased Property to comply at any time with all Environmental Laws;

 

(b)          Presence
of any Hazardous Materials in excess of allowable limits under any Environmental Laws on, in, under, at or in any way affecting
the Leased Property;

 

(c)          A
Release at any time of any Hazardous Materials on, in, at, under or in any way affecting the Leased Property;

 

(d)          Identification
by an Environmental Authority of Lessee, Lessor or any Predecessor as a potentially responsible party under CERCLA or under any
Environmental Law similar to CERCLA;

 

(e)          Presence
at any time of any above-ground and/or underground storage tanks, as defined in RCRA or in any applicable Environmental Law on,
in, at or under the Leased Property or any adjacent site or facility; or

 

(f)          Any
and all claims for injury or damage to persons or property arising out of exposure to Hazardous Materials originating or located
at the Leased Property, or resulting from operation thereof or any adjoining property.

 

Event of
Default - As defined in Section 16.1.

 

Existing
Leases - As defined in the Preamble.

 

Fair Market
Rental - The fair market rental of the Leased Property means the rental which a willing tenant not compelled to rent would
pay a willing landlord not compelled to lease for the use and occupancy of the Leased Property pursuant to the Lease for the Term
in question, (a) assuming that Lessee is not in default thereunder and (b) determined in accordance with the appraisal procedures
set forth in Article XXXIII or in such other manner as shall be mutually acceptable to Lessor and Lessee.

 

Fair Market
Value - The fair market value of Lessee’s leasehold interest in the Leased Property or of any other property means an
amount equal to the price that a willing buyer not compelled to buy would pay a willing seller not compelled to sell for such property,
(a) determined in accordance with the appraisal procedures set forth in Article XXXIII or in such other manner as shall be
mutually acceptable to Lessor and Lessee, (b) assuming that such seller must pay any customary closing costs and title premiums,
and (c) taking into account the positive or negative effect on the value of the property attributable to the interest rate, amortization
schedule, maturity date, prepayment penalty and other terms and conditions of any encumbrance that is assumed by the transferee.

 

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FIFRA -
The Federal Insecticide, Fungicide, and Rodenticide Act, as amended.

 

Fiscal Year
- The 12-month period from January 1 to December 31.

 

Fixtures
- As defined in Section 1.1.

 

FF&E
Reserve – Any reserve required under the Franchise Agreement, a management agreement, or the like to fund the purchases
of furniture, fixtures, and equipment.

 

Food Revenue
- Gross revenue from the sale, for on-site consumption, of food and non-alcoholic beverages sold at the Leased Property, including
in respect to guest rooms, banquet rooms, meeting rooms and other similar rooms. Such revenues shall not include the following:

 

(a)          Vending
machine sales;

 

(b)          Any
gratuities or service charges added to a customer’s bill or statement in lieu of a gratuity which is paid to an employee;

 

(c)      Non-alcoholic
beverages sold in the bar or lounge; and

 

(d)          Sales
taxes or taxes of any other kind imposed on the sale of food or non-alcoholic beverages

 

Food and
Beverage Revenue (F&B Revenue) – The sum of Food Revenue and Beverage Revenue, as each is defined in this section
2.1 of the Lease.

 

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Franchise
Agreement - Any franchise agreement or license agreement with a franchisor under which the Hotel is operated.

 

Franchisor
- For the purposes of this Lease, the Franchisor is Marriott International, Inc.

 

Furniture
and Equipment - For purposes of this Lease, the terms “furniture and equipment” shall mean collectively all furniture,
furnishings, wall coverings, fixtures and hotel equipment and systems located at, or used in connection with, the Hotel, together
with all replacements therefor and additions thereto, including, without limitation, (i) all equipment and systems required for
the operation of kitchens and bars, if any, laundry and dry cleaning facilities, (ii) office equipment, (iii) dining room wagons,
materials handling equipment, cleaning and engineering equipment, (iv) telephone and computerized accounting systems, and (v) vehicles.

 

Government
- The United States of America, any state, district or territory thereof, any foreign nation, any state, district, department,
territory or other political division thereof, or any political subdivision of any of the foregoing.

 

Gross Operating
Expenses - For purposes of this Lease, the term “Gross Operating Expenses” with respect to the Leased Property
shall mean the “Deductions” as defined in the Management Agreement.

 

Gross Operating
Profit - Gross Operating Profit with respect to the Leased Property shall mean, for any Fiscal Year, the excess of Gross Revenues
for such Fiscal Year over Gross Operating Expenses for such Fiscal Year.

 

Gross Revenues
- As set forth in the Management Agreement.

 

Hazardous
Materials - Hazardous Materials shall mean and include:

 

(a)          Solid,
gaseous, or liquid wastes (including hazardous wastes), hazardous air pollutants, hazardous substances, hazardous materials, regulated
substances, restricted hazardous wastes, hazardous chemical substances, mixtures, toxic substances, pollutants or contaminants
or terms of similar import as such terms are defined in any Environmental Law as such definition may change from time to time;

 

(b)          Any
substance or material which now or in the future is known to constitute a threat to health, safety, property or the environment
or which has been or in the future is determined by an Environmental Authority to be capable of posing a risk of injury to health,
safety, property or the environment or exposure to which is prohibited, limited or regulated by any Environmental Law or any Environmental
Authority, including all of those materials, wastes and substances designated now or in the future as hazardous or toxic by any
Environmental Authority; and

 

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(c)          Any
petroleum, or petroleum products or byproducts, radioactive materials, polychlorinated biphenols, asbestos, whether friable or
non-friable, and urea formaldehyde foam insulation or radon gas.

 

Hotel - Each hotel and/or
other facility offering lodging and other services or amenities being operated or proposed to be operated on the Leased Property
as listed on Exhibit A attached hereto.

 

Impositions - Collectively,
all taxes (including, without limitation, all ad valorem, sales and use, single business, gross receipts, transaction privilege,
rent or similar taxes as the same relate to or are imposed upon Lessee or its business conducted upon the Leased Property), assessments
(including, without limitation, all assessments under private covenants and for public improvements or benefit, whether or not
commenced or completed prior to the date hereof and whether or not to be completed within the Term), water, sewer or other rents
and charges, excises, tax inspection, authorization and similar fees and all other governmental charges, in each case whether general
or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Leased Property or the business
conducted thereon by Lessee (including all interest and penalties thereon caused by any failure in payment by Lessee), which at
any time prior to, during or with respect to the Term hereof may be assessed or imposed on or with respect to or be a lien upon
(a) Lessor’s interest in the Leased Property, (b) the Leased Property, or any part thereof or any rent therefrom or any estate,
right, title or interest therein, or (c) any occupancy, operation, use or possession of, or sales from, or activity conducted on
or in connection with the Leased Property, or the leasing or use of the Leased Property or any part thereof by Lessee. Nothing
contained in this definition of Impositions shall be construed to require Lessee to pay (1) any tax based on net income (whether
denominated as a franchise or capital stock or other tax) imposed on Lessor or any other person, or (2) any net revenue tax of
Lessor or any other person, or (3) any tax imposed with respect to the sale, exchange or other disposition by Lessor of the Leased
Property or the proceeds thereof, or (4) any single business, gross receipts (other than a tax on any rent received by Lessor from
Lessee), transaction, privilege or similar taxes as the same relate to or are imposed upon Lessor, except to the extent that any
tax, assessment, tax levy or charge that Lessee is obligated to pay pursuant to the first sentence of this definition and that
is in effect at any time during the Term hereof is totally or partially repealed, and a tax, assessment, tax levy or charge set
forth in clause (1) or (2) is levied, assessed or imposed expressly in lieu thereof.

 

Indemnified Party - Either
of a Lessee Indemnified Party or a Lessor Indemnified Party.

 

Indemnifying Party - Any
party obligated to indemnify an Indemnified Party pursuant to Section 8.3 or Article XXII.

 

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Insurance
Requirements - All terms of any insurance policy required by this Lease and all requirements of the issuer of any such policy.

 

Inventory
- All “Inventories of Merchandise” and “Inventories of Supplies” as defined in the Uniform System, including,
but not limited to, linens and other non-depreciable personal property.

 

Land
- As defined in Article I.

 

Lease
- This Lease.

 

Leased Improvement,
Leased Property - Each as defined in Article I.

 

Legal Requirements
– All federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting either the Leased Property or the maintenance, construction, use or alteration thereof (whether
by Lessee or under Lessee’s control), whether or not hereafter enacted and in force, including (a) all laws, rules or regulations
pertaining to the environment, occupational health and safety and public health, safety or welfare, and (b) any laws, rules or
regulations that may (1) require repairs, modifications or alterations in or to the Leased Property or (2) in any way adversely
affect the use and enjoyment thereof; and all permits, licenses and authorizations and regulations relating thereto and all covenants,
agreements, restrictions and encumbrances contained in any instruments, either of record or known to Lessee (other than encumbrances
created by Lessor without the consent of Lessee), at any time in force affecting the Leased Property.

 

Lending
Institution - Any insurance company, credit company, federally insured commercial or savings bank, national banking association,
savings and loan association, employees welfare, pension or retirement fund or system, corporate profit sharing or pension trust,
college or university, or real estate investment trust, including any corporation qualified to be treated for federal tax purposes
as a real estate investment trust, such trust having a net worth of at least $10,000,000.

 

Lessee
- The Lessee designated on this Lease and its respective permitted successors and assigns.

 

Lessee Indemnified
Party - Lessee, any Affiliate of Lessee, any other Person against whom any claim for indemnification may be asserted hereunder
as a result of a direct or indirect ownership interest (including a stockholder’s interest) in Lessee, the officers, directors,
partners, members, stockholders, employees, agents and representatives of Lessee and any corporate stockholder, agent, or representative
of Lessee, and the respective heirs, personal representatives, successors and assigns of any such officer, director, partner, member,
stockholder, employee, agent or representative.

 

Lessor’s
Personal Property - As defined in Section 6.2.

 

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Lessor
- The Lessor designated on this Lease and its respective successors and assigns.

 

Lessor Indemnified
Party - Lessor, any Affiliate of Lessor, any other Person against whom any claim for indemnification may be asserted hereunder
as a result of a direct or indirect ownership interest (including a stockholder’s or partnership interest) in Lessor, the
officers, directors, partners, members, stockholders, employees, agents and representatives of the general partner of Lessor and
any partner, agent, or representative of Lessor, and the respective heirs, personal representatives, successors and assigns of
any such officer, director, partner, member, stockholder, employee, agent or representative.

 

Management
Agreement - The agreement pursuant to which the Manager operates the Leased Property. Initially, the Management Agreement shall
mean the Management Agreement dated January 27, 2014, between Lessee and AMERICAN REALTY CAPITAL HOSPITALITY PROPERTIES, LLC as
it may be amended or supplemented from time to time, a copy of which is attached as Exhibit D hereto.

 

Manager
- As defined in Section 19.3.

 

Monthly Revenues
Computations - As defined in Exhibit C attached hereto

 

Notice - A notice
given pursuant to Article XXXII.

 

Officer’s
Certificate - A certificate of Lessee reasonably acceptable to Lessor, signed by the chief accounting officer or another officer
authorized so to sign by the board of directors or by-laws of Lessee, or any other person whose power and authority to act has
been authorized by delegation in writing by any such officer.

 

OSHA - The Occupational
Health and Safety Act, as amended.

 

Overdue
Rate - On any date, a rate equal to the Base Rate plus 2% per annum, but in no event greater than the maximum rate then permitted
under applicable law.

 

Payment Date -
Any due date for the payment of any installment of Base Rent.

 

Percentage
Rent - As defined in Section 3.1(b).

 

Person
- Any Government, natural person, corporation, general or limited partnership, limited liability company, stock company or association,
joint venture, association, company, trust, bank, trust company, land trust, business trust, or other entity.

 

Personal
Property Taxes - All personal property taxes imposed on the furniture, furnishings or other items of personal property located
on, and used in connection with, the operation of the Leased Improvements as a hotel (including all Inventory and other personal
property owned by Lessee), together with all replacement, modifications, alterations and additions thereto.

 

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Predecessor
- Any Person whose liabilities arising under any Environmental Law have or may have been retained or assumed by Lessee, either
contractually or by operation of law, relating to the Leased Property.

 

Primary Intended
Use - As defined in Section 7.2(b).

 

Proceeding
- Any judicial action, suit or proceeding (whether civil or criminal), any administrative proceeding (whether formal or informal),
any investigation by a governmental authority or entity (including a grand jury), and any arbitration, mediation or other non-judicial
process for dispute resolution..

 

RCRA
- The Resource Conservation and Recovery Act, as amended.

 

Real Estate
Taxes - All real estate taxes, including general and special assessments, if any, which are imposed upon the Land, and any
improvements thereon.

 

Release
- A “Release” as defined in CERCLA or in any Environmental Law, unless such Release has been properly authorized and
permitted in writing by all applicable Environmental Authorities or is allowed by such Environmental Law without authorizations
or permits.

 

Rent
- Collectively, the Base Rent, Percentage Rent and Additional Charges.

 

Room Revenues
- Gross Revenue from the rental of guestrooms, whether to individuals, groups or transients, at the Hotel, excluding the following:

 

(a)          the
amount of all credits, rebates or refunds to customers, guests or patrons;

 

(b)          all
sales taxes or any other taxes imposed on the rental of such guest rooms;

 

(c)          any
fees collected for amenities including, but not limited to: telephone, laundry, movies or concessions; and

 

(d)          accounts
receivable that previously have been included in Room Revenues but which have remained uncollected for at least 180 days and have
become, in the reasonable judgment of Lessee, uncollectable.

 

SARA - The Superfund
Amendments and Reauthorization Act of 1986, as amended.

 

State - The State or Commonwealth
of the United States in which the Leased Property is located.

 

Subsidiaries - Persons
in which a party owns, directly or indirectly, more than 50% of the voting stock or control, as applicable (individually, a “Subsidiary”).

 

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Taking - A taking or voluntary
conveyance during the Term of all or part of the Leased Property, or any interest therein or right accruing thereto or use thereof,
as the result of, or in settlement of, any Condemnation or other eminent domain proceeding affecting the Leased Property whether
or not the same shall have actually been commenced.

 

Term - As defined in Section
1.2.

 

TSCA - The Toxic Substances
Control Act, as amended.

 

Uneconomic for its Primary
Intended Use - A state or condition of the Leased Property such that, in the good faith judgment of Lessee, reasonably exercised
and evidenced by the resolution of the board of directors or other governing body of Lessee, the Leased Property cannot be operated
on a commercially practicable basis for its Primary Intended Use, taking into account, among other relevant factors, the number
of usable rooms and projected revenues, such that Lessee intends to, and shall, complete the cessation of operations from the Leased
Property.

 

Uniform System - Shall
mean the Uniform System of Accounts for Hotels (9th Revised Edition, 1996) as published by the Hotel Association of New York City,
Inc., as same may hereafter be revised.

 

Unsuitable for its Primary
Intended Use - A state or condition of the Leased Property such that, in the good faith judgment of Lessee, reasonably exercised
and evidenced by the resolution of the board of directors or other governing body of Lessee, due to casualty damage or loss through
Condemnation, the Leased Property cannot function as an integrated hotel facility consistent with standards applicable to a well
maintained and operated hotel.

 

ARTICLE
III

 

Section
3.1.          Rent.

 

Lessee will pay to
Lessor in lawful money of the United States of America which shall be legal tender for the payment of public and private debts,
in immediately available funds, at Lessor’s address set forth in Article XXXII hereof or at such other place or to such other
Person, as Lessor from time to time may designate in a Notice, the greater of (i) Base Rent and Additional Charges and (ii) Percentage
Rent and Additional Charges , during the Term, as follows:

 

(a)          Base
Rent: An annual sum in the amount set forth on Exhibit C hereto as the “Base Rent” for the Leased Property, payable
in arrears in equal, consecutive monthly installments, on or before the tenth day of each calendar month during the Term; provided,
however, that the first and last monthly payments of Base Rent shall be prorated as to any partial month (subject to adjustment
as provided in Sections 5.2, 14.5, 15.3, 15.5, and 15.6); and

 

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(b)          Percentage
Rent: Starting on the first full month of the Term after the Commencement Date occurs, Tenant shall pay monthly percentage
rent (“Percentage Rent”), on or before the tenth day of each calendar month during the Term, in an amount equal to
Monthly Revenues Computation, as defined on Exhibit C.

 

If less than all of
a month falls within the Term, the Leasee will forgo the above determination and the Rent for that month shall equal (i) the Base
Rent calculated as indicated above multiplied by (ii) a fraction equal to (A) the number of days in the month that fall within
the Term divided by (B) the total number of days in the month.

 

(c)          Officer’s
Certificates. Additionally, if requested by Lessor, an Officer’s Certificate shall be delivered to Lessor monthly, together
with such monthly Percentage Rent payment, setting forth the calculation of such rent payment for such month within 15 days after
each of the first three months of each Fiscal Year (or part thereof) in the Term. Such monthly payments shall be based on the formula
set forth in Section 3.1(b). There shall be no reduction in the Base Rent regardless of the result of the Monthly Revenues Computations.

 

In addition, on or
before February 15 of each year, if requested by Lessor, Lessee shall deliver to Lessor an Officer’s Certificate reasonably
acceptable to Lessor setting forth the computation of the actual Percentage Rent that accrued for each month of the Fiscal Year
that ended on the immediately preceding December 31 and shall pay to Lessor Percentage Rent, if due and payable, for the last month
of the applicable Fiscal Year. Additionally, if the annual Percentage Rent due and payable for any Fiscal Year (as shown in the
applicable Officer’s Certificate) exceeds the amount actually paid as Percentage Rent by Lessee for such year, Lessee also
shall pay such excess to Lessor at the time such certificate is delivered. If the Percentage Rent actually due and payable for
such Fiscal Year is shown by such certificate to be less than the amount actually paid as Percentage Rent for the applicable Fiscal
Year, Lessor shall reimburse such amount to Lessee or alternatively, at the Lessor’s option, credit such amount against subsequent
months’ Base Rent and, to the extent necessary, subsequent months’ Percentage Rent payments. Any such credit to Base
Rent shall not be applied for purposes of calculating Percentage Rent payable for any subsequent month.

 

Any difference between
the annual Percentage Rent due and payable for any Fiscal Year (as shown in the applicable Officer’s Certificate or as adjusted
pursuant to Section 3.3) and the total amount of monthly payments for such Fiscal Year actually paid by Lessee as Percentage Rent,
whether in favor of Lessor or Lessee, shall bear interest at the Overdue Rate, which interest shall accrue from the due date of
the last monthly payment for the Fiscal Year until the amount of such difference shall be paid or otherwise discharged. Any such
interest payable to Lessor shall be deemed to be and shall be payable as Additional Charges.

 

The obligation to pay
Percentage Rent shall survive the expiration or earlier termination of the Term, and a final reconciliation, taking into account,
among other relevant adjustments, any adjustments which are accrued after such expiration or termination date but which related
to Percentage Rent accrued prior to such termination date, and Lessee’s good faith best estimate of the amount of any unresolved
contractual allowances, shall be made not later than one year after such expiration or termination date, but Lessee shall advise
Lessor within 60 days after such expiration or termination date of Lessee’s best estimate at that time of the approximate
amount of such adjustments, which estimate shall not be binding on Lessee or have any legal effect whatsoever.

 

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Section
3.2.          Confirmation of Percentage Rent.

 

Lessee shall utilize,
or cause to be utilized, an accounting system for the Leased Property in accordance with its usual and customary practices, and
in accordance with generally accepted accounting principles and the Uniform System, that will accurately record all data necessary
to compute Percentage Rent, and Lessee shall retain, for at least four (4) years after the expiration of each Fiscal Year (and
in any event until the reconciliation described in Section 3.1(c) for such Fiscal Year has been made), reasonably adequate records
conforming to such accounting system showing all data necessary to compute Percentage Rent for the applicable Fiscal Years. Lessor,
at its expense (except as provided herein below), shall have the right from time to time by its accountants or representatives
to audit the information that formed the basis for the data set forth in any Officer’s Certificate provided during the preceding
four (4) Fiscal Years under Section 3.1(c) and, in connection with such audits, to examine all Lessee’s records (including
supporting data and sales and excise tax returns and franchise reports) reasonably required to verify Percentage Rent (and for
no other purpose), subject to any prohibitions or limitations on disclosure of any such data under Legal Requirements. If any such
audit discloses a deficiency in the payment of Percentage Rent, and either Lessee agrees with the result of such audit or the matter
is otherwise determined or compromised, Lessee shall forthwith pay to Lessor the amount of the deficiency, as finally agreed or
determined, together with interest at the Overdue Rate from the date when said payment should have been made to the date of payment
thereof; provided, however, that as to any audit that is commenced more than two (2) years after the date Percentage Rent for any
Fiscal Year is reported by Lessee to Lessor, the deficiency, if any, with respect to such Percentage Rent shall bear interest at
the Overdue Rate only from the date such determination of deficiency is made unless such deficiency is the result of gross negligence
or willful misconduct on the part of Lessee, in which case interest at the Overdue Rate will accrue from the date such payment
should have been made to the date of payment thereof. If any such audit discloses that the Percentage Rent actually due from Lessee
for any Fiscal Year exceeds that reported by Lessee by more than 3%, Lessee shall pay the cost of such audit and examination. Any
proprietary information obtained by Lessor pursuant to the provisions of this Section shall be treated as confidential, except
that such information may be used, subject to appropriate confidentiality safeguards, in any litigation between the parties and
except further that Lessor may disclose such information to prospective lenders. The obligations of Lessee contained in this Section shall
survive the expiration or earlier termination of this Lease.

 

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Section
3.3.          Additional Charges.

 

In addition to the
Base Rent and Percentage Rent, (a) Lessee also will pay and discharge as and when due and payable all other amounts, liabilities,
obligations and Impositions that Lessee assumes or agrees to pay under this Lease, and (b) in the event of any failure on the part
of Lessee to pay any of those items referred to in clause (a) of this Section 3.3, Lessee also will promptly pay and discharge
every fine, penalty, interest and cost that may be added for non-payment or late payment of such items (the items referred to in
clauses (a) and (b) of this Section 3.3 being additional rent hereunder and being referred to herein collectively as the “Additional
Charges”), and Lessor shall have all legal, equitable and contractual rights, powers and remedies provided either in this
Lease or by statute or otherwise in the case of non-payment of the Additional Charges as in the case of non-payment of the Base
Rent. If any installment of Base Rent, Percentage Rent or Additional Charges (but only as to those Additional Charges that are
payable directly to Lessor) shall not be paid on its due date, Lessee will pay Lessor on demand, as Additional Charges, a late
charge (to the extent permitted by law) computed at the Overdue Rate on the amount of such installment, from the due date of such
installment to the date of payment thereof. To the extent that Lessee pays any Additional Charges to Lessor pursuant to any requirement
of this Lease, Lessee shall be relieved of its obligation to pay such Additional Charges to the entity to which they would otherwise
be due and Lessor shall pay same from monies received from Lessee.

 

Section
3.4.          Rent Payable Without Deduction.

 

The Rent shall be paid
so that this Lease shall yield to Lessor the full amount of the installments of Base Rent, Percentage Rent and Additional Charges
throughout the Term, all as more fully set forth in Article V, but subject to any other provisions of this Lease that expressly
provide for adjustment or abatement of Rent or other charges or expressly provide that certain expenses or maintenance (not including
Capital Impositions, Real Estate Taxes, Personal Property Taxes and Capital Impositions) shall be paid or performed by Lessor.
In order that the Hotel yield the maximum amount of Rent under this Lease, Lessee does hereby covenant and agree that it shall
not barter or trade for goods or services from providers thereof to the Hotel in exchange for free or reduced rates for guestrooms
or other goods and services provided by or at the Hotel for its guests.

 

Section
3.5.          Conversion of Property.

 

If, during the Term,
Lessee desires to provide food and beverage operations at the Hotel which differ materially from the food and beverage operations
provided at the commencement of the Term (for example, eliminating full service food and beverage operations), Lessee shall give
notice of such desire to Lessor. Lessor and Lessee shall then commence negotiations to adjust Rent to reflect the proposed change
to the operation of the Hotel, each acting reasonably and in good faith. All other terms of this Lease will remain substantially
the same. During negotiations, which shall not extend beyond 60 days, Lessee shall not “convert” the Hotel and shall
continue fulfilling its obligations under the existing terms of this Lease. If no agreement is reached after such 60-day period,
Lessee shall withdraw such notice and this Lease shall continue in full force.

 

Section
3.6.          Annual Budget.

 

Lessee shall submit
to Lessor with respect to the Hotel:

 

(a)      An
annual operating budget (“Annual Budget”) delivered at the times and prepared in the manner described in the Management
Agreement.

 

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(b)      A
capital budget (“Capital Budget”) delivered at the times and prepared in the manner described in the Management Agreement.
The Capital Budget shall be prepared in accordance with the Uniform System to the extent applicable.

 

Section
3.7.          Approval of Capital Budget.

 

Lessor and Lessee shall
endeavor in good faith to approve the Capital Budget within the time periods specified in the Management Agreement. Within the
time periods specified in the Management Agreement, Lessor shall give Lessee written notice either (a) that Lessor approves the
Capital Budget (which approval may not be unreasonably withheld, conditioned or delayed) or (b) indicating with reasonable specificity
the respects in which Lessor objects to the Capital Budget. In the latter event, Lessor and Lessee shall act promptly, reasonably
and in good faith to seek to resolve Lessor’s objections. In the event that Lessor and Lessee fail to reach agreement with
respect to the Capital Budget within thirty (30) days after receipt of Lessor’s written notice, Lessee and Lessor shall refer
any disputed Capital Budget matter to arbitration using procedures set forth in Article XXXIX hereto and each party shall endeavor
to cause such arbitration to be completed as quickly as possible, but in any event not later than six (6) months following referral
to arbitration. While any arbitration is pending, Lessee shall continue to operate the Hotel in accordance with the terms of this
Lease, including without limitation, making all Capital Expenditures for approved portions of the Capital Budget and mandatory
projects to the extent such mandatory projects are included in the Capital Budget. Lessor shall be obligated to make all Capital
Expenditures which are required pursuant to a Capital Budget which has been approved or deemed approved in accordance with the
procedures set forth above.

 

Section
3.8.          Approval of Annual Budget.

 

Lessor and Lessee shall
endeavor in good faith to approve the Annual Budget within the time periods specified in the Management Agreement. Within the time
periods specified in the Management Agreement, Lessor shall give Lessee written notice either (a) that Lessor approves the Annual
Budget (which approval may not be unreasonably withheld, conditioned or delayed) or (b) indicating with reasonable specificity
the respects in which Lessor objects to the Annual Budget. In the latter event, Lessor and Lessee shall act promptly, reasonably
and in good faith to seek to resolve Lessor’s objections. In the event that Lessor and Lessee fail to reach agreement with
respect to the Annual Budget within thirty (30) days after receipt of Lessor’s written notice, any contested matter within
the Annual Budget then remaining shall be submitted to arbitration in accordance with the procedure therefor set forth in Article
XXXIX of this Lease.

 

Section
3.9.          Capital Projects.

 

(a)      The
selection of all design professionals and contractors for capital projects shall be made by Lessor and Lessor shall provide at
its expense all materials and services for capital projects.

 

(b)      Lessee
shall cooperate with Lessor with respect to capital projects. Notwithstanding anything in the foregoing which may be construed
to the contrary, Lessee shall have no obligation to perform any such capital projects unless Lessee agrees to perform and be responsible
for same in accordance with a written agreement therefor between Lessor and Lessee.

 

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Section
3.10.         Books and Records.

 

Lessee shall keep full
and adequate books of account and other records reflecting the results of operation of the Hotel on an accrual basis, all in accordance
with the Uniform System and generally accepted accounting principles to the extent applicable and the obligations of Lessee under
this Lease. The books of account and all other records relating to or reflecting the operation of the Hotel shall be kept either
at the Hotel or at Lessee’s executive offices and shall be available to Lessor and its representatives and its auditors or
accountants, at all reasonable times for examination, audit, inspection, and transcription. All of such books and records pertaining
to the Hotel including, without limitation, books of account, guest records and front office records, at all times shall be the
property of Lessor and shall not be removed from the Hotel or Lessee’s executive offices without Lessor approval.

 

ARTICLE
IV

 

Section
4.1.          Payment of Impositions.

 

Subject to Article
XII relating to permitted contests (a) Lessee will pay, or cause to be paid, all Impositions (including Real Estate Taxes, Personal
Property Taxes and Capital Impositions) before any fine, penalty, interest or cost may be added for non-payment, such payments
to be made directly to the taxing or other authorities where feasible, and will promptly furnish to Lessor copies of official receipts
or other satisfactory proof evidencing such payments, and (b) Lessee’s obligation to pay such Impositions shall be deemed
absolutely fixed upon the date such Impositions become a lien upon the Leased Property or any part thereof. Lessee will pay, or
cause to be paid, all Real Estate Taxes, Personal Property Taxes and Capital Impositions before they become delinquent. If any
such Imposition may, at the option of the taxpayer, lawfully be paid in installments (whether or not interest shall accrue on the
unpaid balance of such Imposition), Lessee may exercise the option to pay the same (and any accrued interest on the unpaid balance
of such Imposition) in installments and in such event, shall pay such installments during the Term (subject to Lessee’s right
of contest pursuant to the provisions of Article XII) as the same respectively become due and before any fine, penalty, premium,
further interest or cost may be added thereto. Lessor, at its expense, shall, to the extent required or permitted by applicable
law, prepare and file all tax returns in respect of Lessor’s net income, gross receipts, sales and use, single business,
transaction privilege, rent, ad valorem, franchise taxes, Real Estate Taxes, Personal Property Taxes, Capital Impositions and taxes
on its capital stock, and Lessee, at its expense, shall, to the extent required or permitted by applicable laws and regulations,
prepare and file all other tax returns and reports in respect of any Imposition as may be required by governmental authorities.
If any refund shall be due from any taxing authority in respect of any Imposition paid by Lessee, the same shall be paid over to
or retained by Lessee if no Event of Default shall have occurred hereunder and be continuing. If an Event of Default shall have
occurred and be continuing, any such refund shall be paid over to or retained by Lessor. Any such funds retained by Lessor due
to an Event of Default shall be applied as provided in Article XVI. Lessor and Lessee shall, upon request of the other, provide
such data as is maintained by the party to whom the request is made with respect to the Leased Property as may be necessary to
prepare any required returns and reports. Lessee shall file all Personal Property Tax returns in such jurisdictions where it is
legally required to so file. Lessor, to the extent it possesses the same, and Lessee, to the extent it possesses the same, will
provide the other party, upon request, with cost and depreciation records necessary for filing returns for any property classified
as personal property. Where Lessor is legally required to file Personal Property Tax returns, Lessee shall provide Lessor with
copies of assessment notices in sufficient time for Lessor to file a protest. Lessor may, upon notice to Lessee, at Lessor’s
option and at Lessor’s sole expense, protest, appeal, or institute such other proceedings (in its or Lessee’s name)
as Lessor may deem appropriate to effect a reduction of real estate or personal property assessments for those Impositions to be
paid by Lessor, and Lessee, at Lessor’s expense as aforesaid, shall fully cooperate with Lessor in such protest, appeal,
or other action. Lessor hereby agrees to indemnify, defend, and hold harmless Lessee from and against any claims, obligations,
and liabilities against or incurred by Lessee in connection with such cooperation. Billings for reimbursement of Personal Property
Taxes by Lessee to Lessor shall be accompanied by copies of a bill therefor and payments thereof which identify the personal property
with respect to which such payments are made. Lessor, however, reserves the right to effect any such protest, appeal or other action
and, upon notice to Lessee, shall control any such activity, which shall then go forward at Lessor’s sole expense. Upon such
notice, Lessee, at Lessor’s expense, shall cooperate fully with such activities.

 

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Section
4.2.          Notice of Impositions.

 

Lessor shall give prompt
Notice to Lessee of all Impositions payable by Lessee hereunder of which Lessor at any time has knowledge, provided that Lessor’s
failure to give any such Notice shall in no way diminish Lessee’s obligations hereunder to pay such Impositions, but such
failure shall obviate any default hereunder for a reasonable time after Lessee receives Notice of any Imposition which it is obligated
to pay during the first taxing period applicable thereto and Lessor will pay any interest, penalty or fine caused by Lessor’s
failure to give such Notice.

 

Section
4.3.          Adjustment of Impositions.

 

Impositions payable
by Lessee imposed in respect of the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Lessor
and Lessee, whether or not such Imposition is imposed before or after such termination, and Lessee’s obligation to pay its
prorated share thereof after termination shall survive such termination.

 

Section
4.4.          Utility Charges.

 

Lessee will be solely
responsible for obtaining and maintaining utility services to the Leased Property and will pay or cause to be paid all charges
for electricity, gas, oil, water, sewer and other utilities used in the Leased Property during the Term.

 

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Section
4.5.          Insurance Premiums.

 

To the extent provided
in Section 13.1, Lessor and Lessee will pay or cause to be paid in a timely manner all premiums for the insurance coverages required
to be maintained by them under Article VIII.

 

Section
4.6.          Franchise Fees.

 

Lessee will pay or
cause to be paid in a timely manner all franchise fees due and owing in accordance with the terms and conditions of the Franchise
Agreement.

 

ARTICLE
V

 

Section
5.1.          No Termination, Abatement, etc.

 

Except as otherwise
specifically provided in this Lease, and except in the event of termination of the Franchise Agreement solely by reason of any
action or inaction by Lessor, Lessee, to the extent permitted by law, shall remain bound by this Lease in accordance with its terms
and shall neither take any action without the written consent of Lessor to modify, surrender or terminate the same, nor seek nor
be entitled to any abatement, deduction, deferment or reduction of the Rent, or setoff against the Rent, nor shall the obligations
of Lessee be otherwise affected by reason of (a) any damage to, or destruction of, the Leased Property or any portion thereof from
whatever cause or any Taking of the Leased Property or any portion thereof, (b) any claim which Lessee has or might have against
Lessor by reason of any default or breach of any warranty by Lessor under this Lease or any other agreement between Lessor and
Lessee, or to which Lessor and Lessee are parties, (c) any bankruptcy, insolvency, reorganization, composition, readjustment, liquidation,
dissolution, winding up or other proceedings affecting Lessor or any assignee or transferee of Lessor, or (d) for any other cause
whether similar or dissimilar to any of the foregoing other than a discharge of Lessee from any such obligations as a matter of
law. Except in the event of a constructive eviction of Lessee from the Leased Property for any reason other than an Event of Default,
Lessee hereby specifically waives all rights, arising from any occurrence whatsoever, which may now or hereafter be conferred upon
it by law to (1) modify, surrender or terminate this Lease or quit or surrender the Leased Property or any portion thereof, or
(2) entitle Lessee to any abatement, reduction, suspension or deferment of the Rent or other sums payable by Lessee hereunder,
except as otherwise specifically provided in this Lease. The obligations of Lessee hereunder shall be separate and independent
covenants and agreements and the Rent and all other sums payable by Lessee hereunder shall continue to be payable in all events
unless the obligations to pay the same shall be terminated pursuant to the express provisions of this Lease or by termination of
this Lease other than by reason of an Event of Default.

  

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Section
5.2.          Abatement Procedures.

 

In the event of a partial
Taking of the Leased Property as described in Section 15.5, the Lease shall not terminate with respect to the affected Leased Property,
but the Base Rent shall be abated in the manner and to the extent that is fair, just and equitable to both Lessee and Lessor, taking
into consideration, among other relevant factors, the number of usable rooms, the amount of square footage, or the revenues affected
by such partial Taking. If Lessor and Lessee are unable to agree upon the amount of such abatement within 30 days after such partial
Taking, the matter may be submitted by either party to arbitration pursuant to the arbitration procedures set forth in Article
XXXIX.

 

ARTICLE
VI

 

Section
6.1.          Ownership of the Leased Property.

 

Lessee acknowledges
that the Leased Property is the property of Lessor and that Lessee has only the right to the possession and use of the Leased Property
upon the terms and conditions of this Lease.

 

Section
6.2.          Lessor’s Personal Property.

 

Lessee will obtain,
maintain and replace, at Lessee’s cost and expense, throughout the Term such Inventory as is required to operate the Leased
Property in the manner contemplated by this Lease. Lessee may (and shall as provided hereinbelow), at its expense, install, affix
or assemble or place on any parcels of the Land or in any of the Leased Improvements, any items of personal property (including
Inventory). This Inventory, Leased Improvements, and personal property is and will be owned by and acquired for Lessor, excluding
de minimis items not used to operate the Leased Property in the manner contemplated by this Lease, and subject to Section 19.1.
Lessee, at the commencement of the Term, and from time to time thereafter, shall provide Lessor with an accurate list of all such
items of personal property (collectively, including Inventory, the “Lessor’s Personal Property”). Lessee, only
in the ordinary course of business, may remove any of Lessor’s Personal Property set forth on such list at any time during
the Term. Upon the expiration or any prior termination of the Term, Lessee shall leave all of Lessor’s Personal Property
and vacate the Leased Property in accordance with this Lease. Any de minimis items Lessee is entitled to remove from the Leased
Property not removed by Lessee within thirty (30) days following the expiration or earlier termination of the Term shall be considered
abandoned by Lessee and may be appropriated, sold, destroyed or otherwise disposed of by Lessor without first giving Notice thereof
to Lessee, without any payment to Lessee and without any obligation to account therefor. Lessee will, at its expense, restore the
Leased Property to the condition required by Section 9.1(d).

 

Except as hereinafter
set forth, Lessee may make such financing arrangements, title retention agreements, leases or other agreements with respect to
Lessor’s Personal Property as it sees fit provided that Lessee first advises Lessor, in writing, of any such arrangement
and such arrangement expressly provides that in the event of Lessee’s default thereunder, Lessor (or its designee) may assume
Lessee’s obligations and rights under such arrangement. Lessee shall have the right to lease a van for the purposes of providing
shuttle service to hotel guests; provided that the terms and conditions of such lease are approved by Lessor and any secured lender
with respect to the Leased Property.

 

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ARTICLE
VII

 

Section
7.1.          Condition of the Leased Property.

 

Lessee acknowledges
receipt and delivery of possession of the Leased Property as of the Commencement Date and that Lessee has examined and otherwise
has knowledge of the condition of the Leased Property and has found the same to be satisfactory for its purposes hereunder. Lessee
is leasing the Leased Property “as is” in its present condition. Lessee waives any claim or action against Lessor in
respect of the condition of the Leased Property. EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN TO THE CONTRARY, LESSOR MAKES
NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE LEASED PROPERTY, OR ANY PART THEREOF, EITHER AS TO ITS FITNESS
FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN,
LATENT OR PATENT, IT BEING AGREED THAT LESSEE TAKES THE LEASED PROPERTY SUBJECT TO ALL SUCH RISKS. LESSEE ACKNOWLEDGES THAT THE
LEASED PROPERTY HAS BEEN INSPECTED BY LESSEE AND IS SATISFACTORY TO IT. Provided, however, to the extent permitted by law, Lessor
hereby assigns to Lessee all of Lessor’s rights to proceed against any predecessor in title other than Lessee (or an Affiliate
of Lessee which conveyed the Property to Lessor) for breaches of warranties or representations or for latent defects in the Leased
Property. Lessor shall fully cooperate with Lessee in the prosecution of any such claim, in Lessor’s or Lessee’s name,
all at Lessee’s sole cost and expense. Lessee hereby agrees to indemnify, defend and hold harmless Lessor from and against
any claims, obligations and liabilities against or incurred by Lessor in connection with such cooperation.

 

Section
7.2.          Use of the Leased Property.

 

(a)      Lessee
covenants that it will (with Lessor’s commercially reasonable cooperation to the extent necessary and required) proceed with
all due diligence and will exercise its commercially reasonable efforts to obtain and to maintain all approvals needed to use and
operate the Leased Property under applicable local, state and federal law.

 

(b)      Lessee
shall use, or cause to be used, the Leased Property only as a hotel facility, and for such other uses as may be necessary or incidental
to such use or such other use as otherwise approved by Lessor (the “Primary Intended Use”). Lessee shall not use the
Leased Property or any portion thereof for any other use without the prior written consent of Lessor, which consent may be granted,
denied or conditioned in Lessor’s reasonable discretion. No use shall be made or permitted to be made of the Leased Property,
and no acts shall be done, which will cause the cancellation or increase the premium of any insurance policy covering the Leased
Property or any part thereof (unless another adequate policy satisfactory to Lessor is available and Lessee pays any premium increase),
nor shall Lessee sell or permit to be kept, used or sold in or about the Leased Property any article which may be prohibited by
law or fire underwriter’s regulations. Lessee shall, at its sole cost, comply with all of the requirements pertaining to
the Leased Property of any insurance board, association, organization or company necessary for the maintenance of insurance, as
herein provided, covering the Leased Property and Lessor’s Personal Property, except that Lessee shall have no obligation
to complete capital improvements to the Leased Property. Lessee will have exclusive possession of the Hotel and exclusive control
of the day to day operations of the Hotel.

 

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(c)      Subject
to the provisions of Articles XIV, XV, XXI and XXII and other express provisions in this Lease, with respect to the Leased Property,
Lessee covenants and agrees that during the Term it will (1) operate continuously the Leased Property as a hotel facility, (2)
keep in full force and effect and comply with all the provisions of the Franchise Agreement (except that Lessee shall have no obligation
to take any actions that are the responsibility of Lessor hereunder or to complete any capital improvements to the Leased Property
required by the franchisor unless Lessor funds the cost thereof), (3) not terminate or amend the Franchise Agreement without the
consent of Lessor (not to be unreasonably withheld, conditioned or delayed), (4) maintain appropriate certifications and licenses
for such use and (5) seek to maximize the Gross Revenues generated therefrom consistent with sound business practices and Lessee’s
concurrent goal of maximizing its net operating income therefrom. Lessor covenants and agrees that, with respect to the Leased
Property, during the Term it will (1) not take or allow any Affiliate to take or fail to take any action that would interfere with,
restrict or prohibit Lessee’s operation of the Leased Property for its Primary Intended Use, including, without limitation,
modifying, amending or terminating any Franchise Agreement or any licenses, franchises, permits, easements, leases, undertakings
or agreements held by Lessor or such Affiliate and pertaining to the Leased Property, (2) comply with all the provisions of any
Franchise Agreement relating to Capital Expenditures (to the extent such Capital Expenditures are provided for in the Capital Budget),
the payment of any Real Estate Taxes, Personal Property Taxes, Capital Impositions and other requirements thereof that are not
the responsibility of Lessee hereunder and (3) seek to maximize the net income generated by Lessee from the Leased Property consistent
with Lessor’s concurrent goal of maximizing the Gross Revenues generated therefrom.

 

(d)      Lessee
shall not commit or suffer to be committed any waste on the Leased Property, nor shall Lessee cause or permit any nuisance thereon.

 

(e)      Lessee
shall neither suffer nor permit the Leased Property or any portion thereof, or Lessor’s Personal Property, to be used in
such a manner as (1) might reasonably tend to impair Lessor’s (or Lessee’s, as the case may be) title thereto or to
any portion thereof, or (2) may reasonably make possible a claim or claims of adverse usage or adverse possession by the public,
as such, or of implied dedication of the Leased Property or any portion thereof, except as necessary in the ordinary and prudent
operation of the Hotels.

 

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Section
7.3.          Lessor to Grant Easements, etc.

 

Lessor will, from time
to time, so long as no Event of Default has occurred and is continuing, at the request of Lessee and at Lessee’s cost and
expense (but subject to the approval of Lessor, which approval shall not be unreasonably withheld or delayed), (a) grant easements
and other rights in the nature of easements with respect to the Leased Property to third parties, (b) release existing easements
or other rights in the nature of easements which are for the benefit of the Leased Property, (c) dedicate or transfer unimproved
portions of the Leased Property for road, highway or other public purposes, (d) execute petitions to have the Leased Property
annexed to any municipal corporation or utility district, (e) execute amendments to any covenants and restrictions affecting the
Leased Property and (f) execute and deliver to any person any instrument appropriate to confirm or effect such grants, releases,
dedications, transfers, petitions and amendments (to the extent of its interests in the Leased Property), but only upon delivery
to Lessor of an Officer’s Certificate stating that such grant, release, dedication, transfer, petition or amendment does
not interfere with the proper conduct of the business of Lessee on the Leased Property and does not materially reduce the value
of the Leased Property.

 

Section
7.4.          Reservation by Lessor.

 

Notwithstanding anything
contained in this Lease to the contrary, Lessor expressly reserves from the operation of this Lease and the Leased Property the
right of Lessor or third party lessees of Lessor to place communications equipment on the roof of the Leased Improvements or elsewhere
on the Land and to receive all rental and income therefrom. Such communications equipment shall include, but not be limited to,
satellite dishes, antennas, wires, conduits, cables and associated allied materials, machinery and equipment as necessary to properly
complete the installation, maintenance and operation of such communications equipment (“the Installations”). Lessor
covenants and agrees that the Installations shall be in such locations so that their use (including installation, operations, maintenance,
repair and removal) shall not unreasonably interfere with or impede the use by Lessee of the Leased Property pursuant to this Lease.
Lessor shall be responsible for the Installations being in compliance with all applicable federal, state and local laws and ordinances.
As between Lessor and Lessee, Lessor shall be responsible for the Installations being insured under appropriate casualty and general
liability insurance coverages and in that regard, Lessor agrees to indemnify and hold Lessee harmless from and against any and
all loss, costs, claim and liability, including reasonable attorney’s fees, for injuries to all persons and for damage to
or loss of all property, including the Leased Property, arising or alleged to arise from any act or omission of Lessor or third
party lessees of Lessor, including their agents, employees or contractors, relating to the installation, maintenance, repair, operation
or removal of the Installations.

 

ARTICLE
VIII

 

Section
8.1.          Compliance with Legal and Insurance Requirements, etc.

 

Subject to Sections
8.2 and 8.3(b) below and Article XII relating to permitted contests, Lessee, at its expense, will promptly (a) comply with
all applicable Legal Requirements and Insurance Requirements in respect of the use, operation, maintenance, repair and restoration
of the Leased Property, and (b) procure, maintain and comply with all appropriate licenses and other authorizations required
for any use of the Leased Property and Lessor’s Personal Property then being made, and for the proper operation and maintenance
of the Leased Property or any part thereof, except that Lessee shall have no obligation to complete capital improvements to the
Leased Property.

 

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Section
8.2.          Legal Requirement Covenants.

 

Subject to Section 8.3(b)
below, Lessee covenants and agrees that the Leased Property and Lessor’s Personal Property shall not be used for any unlawful
purpose, and that Lessee shall not permit or suffer to exist any unlawful use of the Leased Property by others. Lessee shall acquire
and maintain all appropriate licenses, certifications, permits and other authorizations and approvals needed to operate the Leased
Property in its customary manner for the Primary Intended Use, and any other lawful use conducted on the Leased Property as may
be permitted from time to time hereunder. Lessee further covenants and agrees that Lessee’s use of the Leased Property and
maintenance, alteration, and operation of the same, and all parts thereof, shall at all times conform to all Legal Requirements,
unless the same are finally determined by a court of competent jurisdiction to be unlawful (and Lessee shall use reasonable efforts
to cause all such sub-tenants, invitees or others to so comply with all Legal Requirements). Lessee may, however, upon prior Notice
to Lessor, contest the legality or applicability of any such Legal Requirement or any licensure or certification decision if Lessee
maintains such action in good faith, with due diligence, without prejudice to Lessor’s rights hereunder, and at Lessee’s
sole expense. If by the terms of any such Legal Requirement compliance therewith pending the prosecution of any such proceeding
may legally be delayed without the incurrence of any lien, charge or liability of any kind against the Hotel or Lessee’s
leasehold interest therein and without subjecting Lessee or Lessor to any liability, civil or criminal, for failure so to comply
therewith, Lessee may delay compliance therewith until the final determination of such proceeding. If any lien, charge or civil
or criminal liability would be incurred by reason of any such delay, Lessee, on the prior written consent of Lessor, which consent
shall not be unreasonably withheld, may nonetheless contest as aforesaid and delay as aforesaid provided that such delay would
not subject Lessor to criminal liability and Lessee both (a) furnishes to Lessor security reasonably satisfactory to Lessor against
any loss or injury by reason of such contest or delay and (b) prosecutes the contest with due diligence and in good faith.

 

Section
8.3.          Environmental Covenants.

 

Lessor and Lessee (in
addition to, and not in diminution of, Lessee’s covenants and undertakings in Sections 8.1 and 8.2 hereof) covenant and agree
as follows:

 

(a)      At
all times hereafter until the later of (i) such time as all liabilities, duties or obligations of Lessee to Lessor under the Lease
have been satisfied in full and (ii) such time as Lessee completely vacates the Leased Property and surrenders possession of the
same to Lessor, Lessee shall fully comply with all Environmental Laws applicable to the Leased Property and the operations thereon,
except to the extent that such compliance would require the remediation of Environmental Liabilities for which Lessee has no indemnity
obligations under Section 8.3(c). Lessee agrees to give Lessor prompt written notice of (1) all Environmental Liabilities; (2)
all pending, threatened or anticipated Proceedings, and all notices, demands, requests or investigations, relating to any Environmental
Liability or relating to the issuance, revocation or change in any Environmental Authorization required for operation of the Leased
Property; (3) all Releases at, on, in, under or in any way affecting the Leased Property, or any Release known by Lessee at, on,
in or under any property adjacent to the Leased Property; and (4) all facts, events or conditions that could reasonably lead to
the occurrence of any of the above-referenced matters.

 

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(b)      Lessor
hereby agrees to defend, indemnify and save harmless any and all Lessee Indemnified Parties from and against any and all Environmental
Liabilities other than Environmental Liabilities to the extent caused by the grossly negligent acts or failures to act of Lessee.

 

(c)      Lessee
hereby agrees to defend, indemnify and save harmless any and all Lessor Indemnified Parties from and against any and all Environmental
Liabilities to the extent caused by the grossly negligent acts or failures to act of Lessee.

 

(d)      If
any Proceeding is brought against any Indemnified Party in respect of an Environmental Liability with respect to which such Indemnified
Party may claim indemnification under either Section 8.3(b) or (c), the Indemnifying Party, upon request, shall at its sole
expense resist and defend such Proceeding, or cause the same to be resisted and defended by counsel designated by the Indemnified
Party and approved by the Indemnifying Party, which approval shall not be unreasonably withheld; provided, however, that such approval
shall not be required in the case of defense by counsel designated by any insurance company undertaking such defense pursuant to
any applicable policy of insurance. Each Indemnified Party shall have the right to employ separate counsel in any such Proceeding
and to participate in the defense thereof, but the fees and expenses of such counsel will be at the sole expense of such Indemnified
Party unless such counsel has been approved by the Indemnifying Party, which approval shall not be unreasonably withheld. The Indemnifying
Party shall not be liable for any settlement of any such Proceeding made without its consent, which shall not be unreasonably withheld,
but if settled with the consent of the Indemnifying Party, or if settled without its consent (if its consent shall be unreasonably
withheld), or if there be a final, nonappealable judgment for an adversary party in any such Proceeding, the Indemnifying Party
shall indemnify and hold harmless the Indemnified Parties from and against any liabilities incurred by such Indemnified Parties
by reason of such settlement or judgment.

 

(e)      If
at any time any Indemnified Party has reason to believe circumstances exist which could reasonably result in an Environmental Liability,
upon reasonable prior written notice to Lessee stating such Indemnified Party’s basis for such belief, an Indemnified Party
shall be given immediate access to the Leased Property (including, but not limited to, the right to enter upon, investigate, drill
wells, take soil borings, excavate, monitor, test, cap and use available land for the testing of remedial technologies), Lessee’s
employees, and to all relevant documents and records regarding the matter as to which a responsibility, liability or obligation
is asserted or which is the subject of any Proceeding; provided that such access may be conditioned or restricted as may be reasonably
necessary to ensure compliance with law and the safety of personnel and facilities or to protect confidential or privileged information.
All Indemnified Parties requesting such immediate access and cooperation shall endeavor to coordinate such efforts to result in
as minimal interruption of the operation of the Leased Property as practicable.

 

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(f)      The
indemnification rights and obligations provided for in this Article VIII shall be in addition to any indemnification rights and
obligations provided for elsewhere in this Lease.

 

(g)     The
indemnification rights and obligations provided for in this Article VIII shall survive the termination of this Lease.

 

For purposes of this
Section 8.3, all amounts for which any Indemnified Party seeks indemnification shall be computed net of (a) any actual income
tax benefit resulting therefrom to such Indemnified Party, (b) any insurance proceeds received (net of tax effects) with respect
thereto, and (c) any amounts recovered (net of tax effects) from any third parties based on claims the Indemnified Party has against
such third parties which reduce the damages that would otherwise be sustained; provided that in all cases, the timing of the receipt
or realization of insurance proceeds or income tax benefits or recoveries from third parties shall be taken into account in determining
the amount of reduction of damages. Each Indemnified Party agrees to use its reasonable efforts to pursue, or assign to Lessee
or Lessor, as the case may be, any claims or rights it may have against any third party which would materially reduce the amount
of damages otherwise incurred by such Indemnified Party.

 

Notwithstanding anything
to the contrary contained in this Lease, if Lessor shall become entitled to the possession of the Leased Property by virtue of
the termination of the Lease or repossession of the Leased Property, then Lessor may assign its indemnification rights under Section 8.3
of this Lease (but not any other rights hereunder) to any Person to whom Lessor subsequently transfers the Leased Property, subject
to the following conditions and limitations, each of which shall be deemed to be incorporated into the terms of such assignment,
whether or not specifically referred to therein:

 

(1)         The
indemnification rights referred to in this Section may be assigned only if a known Environmental Liability then exists or
if a Proceeding is then pending or, to the knowledge of Lessee or Lessor, then threatened with respect to the Leased Property;

 

(2)         Such
indemnification rights shall be limited to Environmental Liabilities relating to or specifically affecting the Leased Property;
and

 

(3)         Any
assignment of such indemnification rights shall be limited to the immediate transferee of Lessor, and shall not extend to any such
transferee’s successors or assigns.

 

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ARTICLE
IX

 

Section
9.1.          Maintenance and Repair.

 

(a)      Unless
caused by Lessee’s gross negligence or willful misconduct or that of its employees or agents, Lessee shall not be required
to bear the cost of any Capital Expenditures, including any expenditures for items classified as capital items under U.S. generally
accepted accounting principles. Except to the extent required by Article XXXVIII or elsewhere in this Lease, however, nothing herein
shall be construed to require Lessor to build or rebuild any improvement on the Leased Property, or to fund or make any repairs,
replacements, alterations, restorations or renewals of any nature or description to the Leased Property, whether ordinary or extraordinary,
foreseen or unforeseen, or to make any expenditure whatsoever with respect thereto, in connection with this Lease, or to maintain
the Leased Property in any way. Except as expressly set forth elsewhere in this Lease, Lessee hereby waives, to the extent permitted
by law, the right to make repairs at the expense of Lessor pursuant to any law in effect at the time of the execution of this Lease
or hereafter enacted. Lessor shall have the right to give, record and post, as appropriate, notices of nonresponsibility under
any mechanic’s lien laws now or hereafter existing. Notwithstanding anything in the foregoing to the contrary, to the extent
any equipment used in the operation of the Hotel as of the Commencement Date is leased equipment and not owned equipment, Lessor
shall have no obligation to acquire such leased equipment or replace such leased equipment with owned equipment during the Term
and therefore, to the extent Lessee elects to acquire or replace any such leased equipment with owned equipment, the cost to acquire
such owned equipment shall not be charged to Lessor under any of the provisions of this Lease or reduce any amounts to which Lessor
is entitled under this Lease.

 

(b)      Except
for conditions caused by Lessor’s or its agents’ or employees’ breach of this Lease or their gross negligence
or willful misconduct or resulting from Force Majeure, Lessee will keep the Leased Property and all private roadways, sidewalks
and curbs appurtenant thereto that are under Lessee’s control, including windows and plate glass, parking lots, mechanical,
electrical and plumbing systems and equipment (including conduit and ductware), and non-load bearing interior walls, in good order
and repair, except for ordinary wear and tear (whether or not the need for such repairs occurred as a result of Lessee’s
use, any prior use, the elements or the age of the Leased Property, or any portion thereof), and, except as otherwise provided
in Article XIV or XV, with reasonable promptness, make all necessary and appropriate repairs thereto of every kind and nature,
whether interior or exterior, ordinary or extraordinary, foreseen or unforeseen, except repairs (i) arising by reason of a condition
existing prior to the commencement of the Term (concealed or otherwise), or (ii) capital improvements requiring Capital Expenditures
required by any governmental agency having jurisdiction over the Leased Property, or (iii) capital improvements or repairs to the
structural elements of the Leased Improvements, or (iv) other capital improvements to the Leased Improvements, the cost of which
would constitute Capital Expenditures. Lessee shall obtain and maintain in effect maintenance contracts throughout the Term with
reputable service firms on all serviceable systems and assets included with the Fixtures which constitute a portion of the Leased
Property, unless such services can be competently provided by Lessee’s employees, in which event such services may be provided
by Lessee’s employees. All repairs shall, to the extent reasonably achievable, be at least equivalent in quality to the original
work. Lessee will not take or omit to take any action, the taking or omission of which might materially impair the value or the
usefulness of the Leased Property or any part thereof for its Primary Intended Use. Notwithstanding any other provision of this
Lease, however, other than under Articles XIV and XV on the conditions set forth therein, Lessee shall not be required to bear
the costs of complying with this Section with respect to Capital Expenditures, including any items classified as capital items
under U.S. generally accepted accounting principles, but shall be required to comply with this Section as to such items if
and to the extent that amounts are available therefor from the reserve required to be established by Lessor under Article XX or
are otherwise provided by Lessor. Lessor shall be responsible for all such Capital Expenditures, including, without limitation,
Capital Expenditures required to comply with all Legal Requirements (including, without limitation, all Environmental Laws, the
Americans with Disabilities Act and any state or local handicap access laws and regulations and all zoning and land use laws and
regulations) and Capital Expenditures required to comply with any Franchise Agreement; subject to Lessor’s right to approve
the Capital Budget for such Leased Property. If Lessor fails to make any Capital Expenditure required by any Franchisor and such
refusal results in a default under or termination of the related Franchise Agreement, Lessor shall be responsible for all damages,
termination payments payable by Lessee under the terms of such Franchise Agreement, application fees for a new franchise license
reasonably approved by Lessor, increased royalty fees and other costs arising out of such refusal or out of the resulting need
to apply for and enter into a substitute franchise license agreement.

 

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(c)      Nothing
contained in this Lease and no action or inaction by Lessor shall be construed as (1) constituting the request of Lessor, expressed
or implied, to any contractor, subcontractor, laborer, materialman or vendor to or for the performance of any labor or services
or the furnishing of any materials or other property for the construction, alteration, addition, repair or demolition of or to
the Leased Property or any part thereof, or (2) giving Lessee any right, power or permission to contract for or permit the performance
of any labor or services or the furnishing of any materials or other property in such fashion as would permit the making of any
claim against Lessor in respect thereof or to make any agreement that may create, or in any way be the basis for any right, title,
interest, lien, claim or other encumbrance upon the estate of Lessor in the Leased Property, or any portion thereof.

 

(d)      Lessee
will, upon the expiration or prior termination of the Term, vacate and surrender the Leased Property and Lessor’s Personal
Property to Lessor in the condition in which the Leased Property was originally received from Lessor, except as repaired, rebuilt,
restored, altered or added to as permitted or required by the provisions of this Lease and except for ordinary wear and tear (subject
to the obligation of Lessee to maintain the Leased Property in accordance with Section 9.1(b) above during the entire Term of the
Lease), or damage by casualty or Condemnation (subject to the obligations of Lessee to restore or repair as set forth in the Lease).

 

(e)      If
Lessor fails to make any emergency Capital Expenditures promptly following Notice from Lessee of an emergency situation, then Lessee
will have the right, but not the obligation, to make such Capital Expenditures on behalf of and for the account of Lessor, whereupon
Lessor shall reimburse Lessee therefor, together with interest thereon at the Overdue Rate, promptly upon receipt of all documentation
evidencing such Capital Expenditure. If Lessor fails to so reimburse Lessee within ten days after written demand therefor, then
in addition to such rights and remedies as Lessee may have with respect to such breach, Lessee may offset the amounts owed against
the next payments of Rent due to Lessor under this Lease.

 

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(f)       It
is Lessor’s responsibility and obligation to fund any and all FF&E Reserves. Instead of funding the FF&E Reserve
directly, the Lessor may require the Lessee to fund the FF&E Reserve and reduce the Rent payment by the applicable amount.
The remaining balance of Rent shall be paid in accordance with the Lease.

 

Section
9.2.          Encroachments, Restrictions, etc.

 

If as a result of any
act or omission on the part of Lessee any of the Leased Improvements, at any time, (i) materially encroach upon any property, street
or right-of-way adjacent to the Leased Property, or (ii) violate the agreements or conditions contained in any lawful restrictive
covenant or other agreement affecting the Leased Property, or any part thereof, or (iii) impair the rights of others under any
easement or right-of-way to which the Leased Property is subject as a result of any act or omission on the part of Lessee, then
promptly upon the request of Lessor or at the behest of any person affected by any such encroachment, violation or impairment,
Lessee shall, at its expense, subject to its right to contest the existence of any encroachment, violation or impairment and in
such case, in the event of an adverse final determination, either (a) obtain valid and effective waivers or settlements of all
claims, liabilities and damages resulting from each such encroachment, violation or impairment, whether the same shall affect Lessor
or Lessee or (b) make such changes in the Leased Improvements, and take such other actions, as Lessee in the good faith exercise
of its judgment deems reasonably practicable to remove such encroachment, and to end such violation or impairment, including, if
necessary, the alteration of any of the Leased Improvements, and in any event take all such actions as may be necessary in order
to be able to continue the operation of the Leased Improvements for the Primary Intended Use substantially in the manner and to
the extent the Leased Improvements were operated prior to the assertion of such violation, impairment or encroachment. Any such
alteration shall be made in conformity with the applicable requirements of Article X. Lessee’s obligations under this Section
9.2 shall be in addition to and shall in no way discharge or diminish any obligation of any insurer under any policy of title or
other insurance held by Lessor.

 

ARTICLE
X

 

Section
10.1.          Alterations.

 

After receiving approval
of Lessor, which approval shall not be unreasonably withheld and which approval may be evidenced by Lessor’s approval of
the Capital Budget, Lessee shall have the right to make such material additions, modifications or improvements to the Leased Property
from time to time as Lessee deems desirable for its permitted uses and purposes, provided that non-material additions, modifications
and improvements will not require such consent and no such action significantly alters the character or purposes or significantly
detracts from the value or operating efficiency thereof and will not significantly impair the revenue-producing capability of the
Leased Property (other than during the period such work is being performed) or adversely affect the ability of Lessee to comply
with the provisions of this Lease. Except as approved in the Capital Budget, the cost of such additions, modifications or improvements
to the Leased Property shall be paid by Lessee, and all such additions, modifications and improvements shall, without payment by
Lessor at any time, be included under the terms of this Lease and upon expiration or earlier termination of this Lease shall pass
to and become the property of Lessor. Notwithstanding anything in this Lease to the contrary, Lessor retains the right to reconfigure
meeting/banquet rooms and guestrooms, with the result thereof being an increase in the number of guestrooms and a decrease in the
area and/or number of meeting/banquet rooms, all at the sole cost and expense of Lessor.

 

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Section
10.2.          Salvage.

 

All materials which
are scrapped or removed in connection with the making of repairs required by Articles IX or X shall be or become the property of
Lessor or Lessee depending on which party is paying for or providing the financing for such work.

 

Section
10.3.          Joint Use Agreements.

 

If Lessee constructs
additional improvements that are connected to the Leased Property or share maintenance facilities, HVAC, electrical, plumbing or
other systems, utilities, parking or other amenities, the parties shall enter into a mutually agreeable cross-easement or joint
use agreement, the form of which has been approved in advance by Lessor, to make available necessary services and facilities in
connection with such additional improvements, to protect each of their respective interests in the properties affected, and to
provide for separate ownership, use, and/or financing of such improvements.

 

ARTICLE
XI

 

Section
11.1.          Liens.

 

Subject to the provision
of Article XII relating to permitted contests, Lessee will not directly or indirectly create or allow to remain and will promptly
discharge at its expense any lien, encumbrance, attachment, title retention agreement or claim upon the Leased Property or any
attachment, levy, claim or encumbrance in respect of the Rent, not including, however, (a) this Lease, (b) the matters, if
any, included as exceptions in the title policy insuring Lessor’s interest in the Leased Property, (c) restrictions, liens
and other encumbrances which are consented to in writing by Lessor or any easements granted pursuant to the provisions of Section
7.3 of this Lease, (d) liens for those taxes upon Lessor which Lessee is not required to pay hereunder, (e) subleases permitted
by Article XXV hereof, (f) liens for Impositions or for sums resulting from noncompliance with Legal Requirements so long as (1)
the same are not yet payable or are payable without the addition of any fine or penalty or (2) such liens are in the process of
being contested as permitted by Article XII, (g) liens of mechanics, laborers, materialmen, suppliers or vendors for sums either
disputed or not yet due provided that (1) the payment of such sums shall not be postponed under any related contract for more than
60 days after the completion of the action giving rise to such lien and such reserve or other appropriate provisions as shall be
required by law or generally accepted accounting principles shall have been made therefor or (2) any such liens are in the process
of being contested as permitted by Article XII hereof, and (h) any liens which are the responsibility of Lessor pursuant to the
provisions of this Lease.

 

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ARTICLE
XII

 

Section
12.1.          Permitted Contests.

 

Lessee shall have the
right to contest the amount or validity of any Imposition to be paid by Lessee or any Legal Requirement or Insurance Requirement
or any lien, attachment, levy, encumbrance, charge or claim (“Claims”) not otherwise permitted by Article XI, by appropriate
legal proceedings in good faith and with due diligence (but this shall not be deemed or construed in any way to relieve, modify
or extend Lessee’s covenants to pay or its covenants to cause to be paid any such charges at the time and in the manner as
in this Article provided), on condition, however, that such legal proceedings shall not operate to relieve Lessee from its obligations
hereunder and shall not cause the sale or risk the loss of any portion of the Leased Property, or any part thereof, or cause Lessor
or Lessee to be in default under any mortgage, deed of trust, security deed or other agreement encumbering the Leased Property
or any interest therein. Upon the request of Lessor, Lessee shall either (a) provide a bond or other assurance reasonably satisfactory
to Lessor that all Claims which may be assessed against the Leased Property together with interest and penalties, if any, thereon
will be paid, or (b) deposit within the time otherwise required for payment with a bank or trust company as trustee upon terms
reasonably satisfactory to Lessor, as security for the payment of such Claims, money in an amount sufficient to pay the same, together
with interest and penalties in connection therewith, as to all Claims which may be assessed against or become a Claim on the Leased
Property, or any part thereof, in said legal proceedings. Lessee shall furnish Lessor and any lender of Lessor with reasonable
evidence of such deposit within five days of the same. Lessor agrees to join in any such proceedings if the same be required to
legally prosecute such contest of the validity of such Claims; provided, however, that Lessor shall not thereby be subjected to
any liability for the payment of any costs or expenses in connection with any proceedings brought by Lessee; and Lessee covenants
to indemnify and save harmless Lessor from any such costs or expenses. Lessee shall be entitled to any refund of any Claims and
such charges and penalties or interest thereon which have been paid by Lessee or paid by Lessor and for which Lessor has been fully
reimbursed. In the event that Lessee fails to pay any Claims when due or to provide the security therefor as provided in this paragraph
and to diligently prosecute any contest of the same, Lessor may, upon ten days advance Notice to Lessee, pay such charges together
with any interest and penalties and the same shall be repayable by Lessee to Lessor as Additional Charges at the next Payment Date
provided for in this Lease. Provided, however, that should Lessor reasonably determine that the giving of such Notice would risk
loss to the Leased Property or cause damage to Lessor, then Lessor shall give such Notice as is practical under the circumstances.
Lessor reserves the right to contest any of the Claims at its expense not pursued by Lessee. Lessor and Lessee agree to cooperate
in coordinating the contest of any claims.

 

ARTICLE
XIII

 

Section
13.1.          General Insurance Requirements.

 

During the Term, Lessor
and Lessee agree at all times to keep the Leased Property insured with the kinds and amounts of insurance described in the Management
Agreement.

 

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Section
13.2.          Waiver of Subrogation.

 

If available, all Property
insurance policies carried by Lessor or Lessee shall expressly waive any right of subrogation on the part of the insurer against
the other party.

 

Section
13.3.          Form Satisfactory, etc.

 

All of the policies
of insurance referred to in this Article XIII shall be written in a form, with deductibles reasonably satisfactory to Lessor.
Lessee shall pay all of the premiums relating to insurance coverage required per Section 13.1 and deliver certificates thereof
to Lessor prior to their effective date and annually thereafter. In the event of the failure of Lessee either to effect such insurance
as herein called for or to pay the premiums therefore, or to deliver such certificates thereof to Lessor at the times required,
Lessor shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefore, and Lessee shall
reimburse Lessor for any premium or premiums paid by Lessor for the coverage required under this Section upon written demand therefore,
and Lessee’s failure to repay the same within 30 days after Notice of such failure from Lessor shall constitute an Event
of Default within the meaning of Section 16.1(c). Each insurer mentioned in this Article XIII shall agree, by endorsement to the
policy or policies issued by it, that it will give to Lessor at least 60 days written notice before the coverage under such policy
or policies in question shall be materially reduced, allowed to expire or cancelled.

 

Section
13.4.          Increase in Limits.

 

If either Lessor or
Lessee at any time deems the limits and/or retentions of the coverages outlined in Section 13.1 then carried to be either excessive
or insufficient, Lessor and Lessee shall endeavor in good faith to agree in writing on the proper and reasonable limits for such
insurance to be carried and such insurance shall thereafter be carried with the limits and/or retentions thus agreed on until further
change pursuant to the provision of this Section.

 

Section
13.5.          Blanket Policy.

 

Notwithstanding anything
to the contrary contained in this Article XIII, Lessee or Lessor may bring the insurance provided for herein within the coverage
of a so-called blanket policy or policies of insurance carried and maintained by Lessee or Lessor; provided, however, that the
coverage afforded to Lessor and Lessee will not be reduced or diminished or otherwise be different from that which would exist
under a separate policy of insurance, and provided further that the requirements of this Article XIII are otherwise satisfied.

 

Section
13.6.          Separate Insurance.

 

Lessee shall not on
Lessee’s own initiative or pursuant to the request or requirement of any third party, take out separate insurance or increase
the amount of any then existing insurance by securing an additional policy or additional policies, unless all parties having an
insurable interest in the subject matter of the insurance, including in all cases Lessor, are included therein as insureds, and
the loss is payable under separate additional insurance in the same manner as losses are payable under this Lease. Lessee shall
immediately notify Lessor in writing that Lessee has obtained any such separate insurance or of the increasing of any of the amounts
of the then existing insurance.

 

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Section
13.7.          Reports On Insurance Claims.

 

Lessee shall promptly
investigate and make a complete and timely written report to the appropriate insurance company as to all accidents. Claims for
damage relating to the ownership, operation, and maintenance of the Hotel, any damage or destruction to the Hotel and the estimated
cost of repair thereof shall prepared by Lessee. Lessee shall prepare any and all reports required by any insurance company as
required under the terms of the insurance policy involved, and a final copy of such report shall be furnished to Lessor. Lessee
shall be authorized to execute proofs of such loss, in the aggregate amount of $5,000 or less, with respect to any single casualty
or other event.

 

ARTICLE
XIV

 

Section
14.1.          Insurance Proceeds.

 

Subject to the provisions
of Section 14.5 and except to the extent otherwise required in the policies of insurance required hereunder, all proceeds payable
by reason of any loss or damage to the Leased Property, or any portion thereof, and insured under any policy of insurance required
by Article XIII of this Lease shall be paid to Lessor and held in trust by Lessor in an interest-bearing account, shall be made
available, if applicable, for reconstruction or repair, as the case may be, of any damage to or destruction of the Leased Property,
or any portion thereof, and, if applicable, shall be paid out by Lessor from time to time for the reasonable costs of such reconstruction
or repair upon satisfaction of reasonable terms and conditions specified by Lessor. Any excess proceeds of insurance remaining
after the completion of the restoration or reconstruction to the Leased Property shall be paid to Lessee. If neither Lessor nor
Lessee is required or elects to repair and restore, all such insurance proceeds shall be retained by Lessor. Determination of all
salvage resulting from any property covered by insurance shall be made by Lessor.

 

Section
14.2.          Reconstruction in the Event of Damage or Destruction Covered
by Insurance.

 

(a)      If
the Leased Property is totally or partially destroyed by a risk covered by the insurance described in Article XIII and in Lessor’s
reasonable judgment the Hotel thereby is rendered Unsuitable for its Primary Intended Use, Lessor may, at Lessor’s option
to be exercised within ninety (90) days after the date of such occurrence, restore the Hotel to substantially the same condition
as existed immediately before the damage or destruction and otherwise in accordance with the terms of the Lease. If Lessor fails
to timely make such election, Lessor shall be deemed to have terminated the Lease, in which case Lessor must provide Lessee with
Substitute Leases for execution by Lessee, at Lessee’s election, as described in Article XXXIX of this Lease.

 

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(b)      If
the Leased Property is partially destroyed by a risk covered by the insurance described in Article XIII, but the Hotel is not thereby
rendered Unsuitable for its Primary Intended Use, Lessor shall promptly restore the Hotel to substantially the same condition as
existed immediately before the damage or destruction and otherwise in accordance with the terms of the Lease to the extent of insurance
proceeds received by Lessor.

 

Section
14.3.          Lessor’s Personal Property.

 

All insurance proceeds
payable by reason of any loss of or damage to any of Lessor’s Personal Property and any business interruption insurance shall
be paid to Lessor.

 

Section
14.4.          Abatement of Rent.

 

Any damage or destruction
due to casualty notwithstanding, this Lease shall remain in full force and effect, but Lessee’s obligation to make rental
payments and to pay all other charges required by this Lease shall be equitably abated from and after the date of such damage or
destruction.

 

Section
14.5.          Damage Near End of Term.

 

If damage to or destruction
of the Leased Property rendering the Hotel Unsuitable for its Primary Intended Use occurs during the last 24 months of the Term,
then Lessor or Lessee shall have the right to terminate this Lease by giving written notice to the other party within 30 days
after the date of damage or destruction, whereupon all accrued Rent shall be paid immediately, and this Lease shall automatically
terminate five days after the date of such notice.

 

Section
14.6.          Waiver.

 

Lessee hereby waives
any statutory rights of termination that may arise by reason of any damage or destruction of the Leased Property that Lessor is
obligated to restore or may restore under any of the provisions of this Lease.

 

ARTICLE
XV

 

Section
15.1.          Definitions.

 

(a)      “Condemnation”
means a Taking resulting from (1) the exercise of any governmental power, whether by legal proceedings or otherwise, by a Condemnor,
and (2) a voluntary sale or transfer by Lessor to any Condemnor, either under threat of condemnation or while legal proceedings
for condemnation are pending.

 

(b)      “Date
of Taking” means the date the Condemnor has the right to possession of the property being condemned.

 

(c)      “Award”
means all compensation, sums or anything of value awarded, paid or received on a total or partial Condemnation.

 

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(d)      “Condemnor”
means any public or quasi-public authority, or private corporation or individual, having the power of Condemnation.

 

Section
15.2.          Parties’ Rights and Obligations.

 

If, during the Term,
there is any Condemnation of all or any part of the Leased Property or any interest in this Lease, the rights and obligations of
Lessor and Lessee shall be determined by this Article XV.

 

Section
15.3.          Total Taking.

 

If title to the fee
of the whole of the Leased Property is condemned by any Condemnor, this Lease shall cease and terminate as of the Date of Taking
by the Condemnor with respect to the Leased Property. If title to the fee of less than the whole of the Leased Property is so taken
or condemned, which nevertheless renders the Leased Property Unsuitable or Uneconomic for its Primary Intended Use, Lessee and
Lessor shall each have the option, by notice to the other, at any time prior to the Date of Taking, to terminate this Lease as
of the Date of Taking. Upon such date, if such Notice has been given, this Lease shall thereupon cease and terminate with respect
to the Leased Property. All Base Rent, Percentage Rent and Additional Charges paid or payable by Lessee hereunder with respect
to the Leased Property shall be apportioned as of the Date of Taking, and Lessee shall promptly pay Lessor such amounts.

 

Section
15.4.          Allocation of Award.

 

The total Award made
in connection with a Total Taking, or a partial Taking that results in a termination of this Lease with respect to the Leased Property,
or for loss of Rent, or for Lessor’s loss of business beyond the Term, shall be solely the property of and payable to Lessor.
Any Award made for loss of Lessee’s business during the remaining Term, if any, or for removal and relocation expenses of
Lessee in any such proceedings shall be the sole property of and payable to Lessee. Any other Award not separately allocated to
Lessor or Lessee shall be equitably apportioned between Lessor and Lessee in proportion to the then Fair Market Value of the leasehold
estate of Lessee hereunder and the then Fair Market Value of the Leased Property.

 

Section
15.5.          Partial Taking.

 

If title to less than
the whole of the Leased Property is condemned, and the Leased Property is still suitable for its Primary Intended Use, and not
Uneconomic for its Primary Intended Use, or if Lessee or Lessor is entitled but neither elects to terminate this Lease with respect
to the Leased Property as provided in Section 15.3, Lessor at its cost shall with all reasonable dispatch restore the untaken portion
of any Leased Improvements so that the Leased Improvements constitute a complete architectural unit of the same general character
and condition (as nearly as may be possible under the circumstances) as the Leased Improvements existing immediately prior to the
Condemnation.

 

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Section
15.6.          Temporary Taking.

 

If the whole or any
part of the Leased Property or of Lessee’s interest under this Lease is condemned by any Condemnor for its temporary use
or occupancy, which for purposes hereof shall mean two (2) weeks or less, this Lease shall not terminate by reason thereof, and
Lessee shall continue to pay, in the manner and at the terms herein specified, the full amounts of Base Rent and Additional Charges
with respect to such Leased Property. In addition, Lessee shall pay Percentage Rent at a rate equal to the average Percentage Rent
during the last three preceding Fiscal Years (or if three Fiscal Years shall not have elapsed, the average during the preceding
Fiscal Years). Except only to the extent that Lessee may be prevented from so doing pursuant to the terms of the order of the Condemnor,
Lessee shall continue to perform and observe all of the other terms, covenants, conditions and obligations hereof on the part of
Lessee to be performed and observed, as though such Condemnation had not occurred. In the event of any Condemnation as in this
Section 15.6 described, the entire amount of any Award made for such Condemnation allocable to the Term of this Lease, whether
paid by way of damages, rent or otherwise, shall be paid to Lessor. Lessor covenants that upon the termination of any such period
of temporary use or occupancy it will, at its sole cost and expense, restore the Leased Property as nearly as may be reasonably
possible to the condition in which the same was immediately prior to such Condemnation, unless such period of temporary use or
occupancy extends beyond the expiration of the Term, in which case Lessee shall not be required to make such restoration.

 

ARTICLE
XVI

 

Section
16.1.          Events of Default.

 

If any one or more
of the following events (individually, an “Event of Default”) occurs:

 

(a)      if
Lessee fails to make payment of the Base Rent, Percentage Rent or Additional Charges within ten (10) days after the same becomes
due and payable and such failure continues for five (5) business days after notice to Lessee of such failure; provided, however,
Lessor shall not be required to give notice of such failure more than three (3) times in any Fiscal Year; or

 

(b)      if
Lessee fails to observe or perform any other term, covenant or condition of this Lease and such failure is not cured by Lessee
within a period of thirty (30) days after receipt by such party of Notice thereof from Lessor, unless such failure cannot with
due diligence be cured within a period of thirty (30) days, in which case it shall not be deemed an Event of Default if Lessee
proceeds promptly and with due diligence to cure the failure and diligently completes the curing thereof provided, however, in
no event shall such cure period extend beyond 150 days after such Notice (provided that no Event of Default shall be deemed to
have occurred pursuant to this subsection (c) to the extent that Lessee’s failure to observe or perform any term, covenant
or condition of this Lease is caused by Lessor’s failure to fulfill its obligations under this Lease or an Unavoidable Occurrence);
or

 

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(c)      if
Lessee or Lessor shall file a petition in bankruptcy or reorganization for an arrangement pursuant to any federal or state bankruptcy
law or any similar federal or state law, or shall be adjudicated a bankrupt or shall make an assignment for the benefit of creditors
or shall admit in writing its inability to pay its debts generally as they become due, or if a petition or answer proposing the
adjudication of Lessee as a bankrupt or its reorganization pursuant to any federal or state bankruptcy law or any similar federal
or state law shall be filed in any court and Lessee shall be adjudicated a bankrupt and such adjudication shall not be vacated
or set aside or stayed within sixty (60) days after the entry of an order in respect thereof, or if a receiver of Lessee of the
whole or substantially all of the assets of Lessee shall be appointed in any proceedings brought by Lessee or if any such receiver,
trustee or liquidator shall be appointed in any proceeding brought against Lessee shall not be vacated or set aside or stayed within
sixty (60) days after such appointment; or

 

(d)      if
Lessee or Lessor is liquidated or dissolved, or begins proceedings toward such liquidation or dissolution, or, if Lessee or Lessor
in any manner, permits the sale or divestiture of substantially all of its assets; or

 

(e)      if
the estate or interest of Lessee in the Leased Property or any part thereof is voluntarily or involuntarily transferred, assigned,
conveyed, levied upon or attached in any proceeding (unless Lessee is contesting such lien or attachment in good faith in accordance
with this Lease); or

 

(f)       if,
except as a result of damage, destruction, renovation or a partial or complete Condemnation or otherwise with Lessor’s prior
written approval, Lessee voluntarily ceases operations on the Leased Property for a period in excess of thirty (30) days; or

 

(g)      if
an event of default has been declared by the franchisor under the Franchise Agreement with respect to the Hotel as a result of
any action or failure to act by Lessee or any other person with whom Lessee contracts for management services at the Hotel, other
than a default caused by a breach of this Lease by Lessor or a failure to complete improvements required by the franchisor because
Lessor has not provided funds for such improvements to the extent required pursuant to this Lease or Lessor is otherwise accountable
for such default under the Franchise Agreement, and such event of default is continuing after the expiration of any applicable
grace period; or

 

(h)      if
an event of default by Lessee (or any Affiliate of Lessee) occurs under any other lease between Lessor (or any Affiliate of Lessor)
and Lessee. In the event of an event of default by Lessee under this Lease, such event of default shall also constitute an event
of default under any other lease between Lessor (or any Affiliate of Lessor) and Lessee.

 

For purposes of this
Section 16.1(h), Lessee shall mean and include any additional lessee subsequently approved by Lessor (or any Affiliate of Lessor)
for lease transactions with Lessor (or any Affiliate of Lessor) and with whom a lease or leases are actually entered into by Lessor
(or any Affiliate of Lessor).

 

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Then, and in any such
event and provided such Event of Default by Lessee is continuing, Lessor may exercise one or more remedies available to it herein
or at law or in equity, including but not limited to its right to terminate this Lease giving Lessee not less than ten (10) days’
written notice of such termination.

 

If litigation is commenced
with respect to any alleged default under this Lease, the prevailing party in such litigation shall receive, in addition to its
damages incurred, such sum as the court shall determine as its reasonable attorneys’ fees, and all costs and expenses incurred
in connection therewith.

 

Section
16.2.          Surrender.

 

If an Event of Default
occurs for other than by reason of Force Majeure (and the event giving rise to such Event of Default has not been cured within
the curative period relating thereto as set forth in Section 16.1) and is continuing, whether or not this Lease has been terminated
pursuant to Section 16.1, Lessee shall, if requested by Lessor so to do, immediately surrender and assign to Lessor or Lessor’s
designee the Leased Property including, without limitation, any and all books, records, files, licenses, permits and keys relating
thereto, and quit the same and Lessor may enter upon and repossess the Leased Property by reasonable force, summary proceedings,
ejectment or otherwise, and may remove Lessee and all other persons and any and all personal property from the Leased Property,
subject to rights of any hotel guests and to any requirement of law. Lessee hereby waives any and all requirements of applicable
laws for service of notice to re-enter the Leased Property. Lessor shall be under no obligation to, but may if it so chooses, relet
the Leased Property or otherwise mitigate Lessor’s damages.

 

Section
16.3.          Damages.

 

(a)          Neither
(i) the termination of this Lease, (ii) the repossession of the Leased Property, (iii) the failure of Lessor to relet the Leased
Property, nor (iv) the reletting of all or any portion thereof, shall relieve Lessee of its liability and obligations hereunder,
all of which shall survive any such termination, repossession or reletting. In the event of any such termination, Lessee shall
forthwith pay to Lessor all Rent due and payable with respect to the Leased Property to and including the date of such termination.

 

(b)          Lessee
shall forthwith pay to Lessor, at Lessor’s option, as and for liquidated and agreed current damages for Lessee’s default,
either:

 

(i)          Without
termination of Lessee’s right to possession of the Leased Property, each installment of Rent (including Percentage Rent as
determined below) and other sums payable by Lessee to Lessor under the Lease as the same becomes due and payable, which Rent and
other sums shall bear interest at the Overdue Rate, and Lessor may enforce, by action or otherwise, any other term or covenant
of this Lease; or

 

(ii)         the
sum of:

 

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(A)         the
unpaid Rent which had been earned at the time of termination, repossession or reletting;

 

(B)         the
worth at the time of termination, repossession or reletting of the amount by which the unpaid Rent for the balance of the Term
after the time of termination, repossession or reletting, exceeds the amount of such rental loss that Lessee proves could be reasonably
avoided and as reduced for rentals received after the time of termination, repossession or reletting, if and to the extent required
by applicable law; and

 

(C)         any
other amount necessary to compensate Lessor for all the detriment proximately caused by Lessee’s failure to perform its obligations
under this Lease or which in the ordinary course of things, would be likely to result therefrom. The worth at the time of termination,
repossession or reletting of the amount referred to in subparagraph (B) is computed by discounting such amount at the discount
rate of the Federal Reserve Bank of New York at the time of award plus 1%.

 

Percentage Rent for
the purposes of this Section 16.3 shall be a sum equal to (i) the average of the annual amounts of the Percentage Rent for the
three Fiscal Years immediately preceding the Fiscal Year in which the termination, re-entry or repossession takes place, or (ii)
if three Fiscal Years shall not have elapsed, the average of the Percentage Rent during the preceding Fiscal Years during which
the Lease was in effect, or (iii) if one Fiscal Year has not elapsed, the amount derived by annualizing the Percentage Rent from
the effective date of this Lease.

 

Section
16.4.          Waiver.

 

If this Lease is terminated
pursuant to Section 16.1, Lessee waives, to the extent permitted by applicable law, (a) any right to a trial by jury in the event
of summary proceedings to enforce the remedies set forth in this Article XVI, and (b) the benefit of any laws now or hereafter
in force exempting property from liability for rent or for debt and Lessor waives any right to “pierce the corporate veil”
of Lessee other than to the extent funds shall have been inappropriately paid any Affiliate of Lessee following a default resulting
in an Event of Default.

 

Section
16.5.          Application of Funds.

 

Any payments received
by Lessor under any of the provisions of this Lease during the existence or continuance of any Event of Default shall be applied
to Lessee’s obligations in the order that Lessor may determine or as may be prescribed by the laws of the State.

 

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ARTICLE
XVII

 

Section
17.1.          Lessor’s Right to Cure Lessee’s Default.

 

If Lessee fails to
make any payment or to perform any act required to be made or performed under this Lease including, without limitation, Lessee’s
failure to comply with the terms of any Franchise Agreement other than a failure to complete improvements required by the franchisor
because Lessor has not provided Lessee with the funds therefor, and fails to cure the same within the relevant time periods provided
in Section 16.1, Lessor, without waiving or releasing any obligation of Lessee, and without waiving or releasing any obligation
or default, may (but shall be under no obligation to) at any time thereafter make such payment or perform such act for the account
and at the expense of Lessee, and may, to the extent permitted by law, enter upon the Leased Property for such purpose and, subject
to Section 16.4, take all such action thereon as, in Lessor’s opinion, may be necessary or appropriate therefor. No such
entry shall be deemed an eviction of Lessee. All sums so paid by Lessor and all costs and expenses (including, without limitation,
reasonable attorneys’ fees and expenses, in each case to the extent permitted by law) so incurred, together with a late charge
thereon (to the extent permitted by law) at the Overdue Rate from the date on which such sums or expenses are paid or incurred
by Lessors, shall be paid by Lessee to Lessor on demand. The obligations of Lessee and rights of Lessor contained in this Article
shall survive the expiration or earlier termination of this Lease.

 

ARTICLE
XVIII

 

Section
18.1.          Provisions Relating to Purchase of the Leased Property.

 

If Lessee purchases
the Leased Property from Lessor pursuant to any of the terms of this Lease, the closing of the purchase shall occur 30 days after
Lessor accepts Lessee’s offer to purchase the Leased Property, unless the provision of the Lease under which such offer was
made specifies a different closing date, in which case the date set forth in such provision shall be the closing date. At such
closing, Lessor shall, upon receipt from Lessee of the applicable purchase price, together with full payment of any unpaid Rent
due and payable with respect to any period ending on or before the date of the purchase, deliver to Lessee an appropriate limited
or special warranty deed or other conveyance conveying the entire interest of Lessor in and to the Leased Property to Lessee free
and clear of all encumbrances other than (a) those that Lessee has agreed hereunder to pay or discharge, (b) those mortgage
liens, if any, that Lessee has agreed in writing to accept and to take title subject to, (c) those liens and encumbrances subject
to which the Leased Property was conveyed to Lessor, (d) encumbrances, easements, licenses or rights of way required to be imposed
on the Leased Property under Section 7.3, and (e) any other encumbrances permitted to be imposed on the Leased Property under the
provisions of Article XXXIV that are assumable at no cost to Lessee or to which Lessee may take subject without cost to Lessee.
The difference between the applicable purchase price and the total of the encumbrances assumed or taken subject to shall be paid
in cash to Lessor or as Lessor may direct, in federal or other immediately available funds, except as otherwise mutually agreed
by Lessor and Lessee. All expenses of such conveyance, including, without limitation, the cost of title examination or title insurance,
if desired by Lessee, Lessee’s attorneys’ fees incurred in connection with such conveyance and release, and transfer
taxes and recording fees, shall be paid by Lessee. Lessor shall pay its attorney’s fees.

 

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ARTICLE
XIX

 

Section
19.1.          REIT Requirements.

 

(a)          Lessee
understands that, in order for American Realty Capital Hospitality Trust, Inc. to qualify as a REIT, the following requirements
(the “REIT Requirements”) must be satisfied:

 

(i)          Personal
Property Limitation. Anything contained in this Lease to the contrary notwithstanding, the average of the fair market values
of the items of personal property that are leased to Lessee under this Lease at the beginning and at the end of any Fiscal Year
shall not exceed fifteen percent (15%) of the average of the aggregate fair market values of the Leased Property at the beginning
and at the end of such Fiscal Year. This Section 19.1 is intended to ensure that the Rent qualifies as “rents from real property,”
within the meaning of Section 856(d) of the Code, or any similar or successor provisions thereto, and shall be interpreted in a
manner consistent with such intent. If the fair market value of personal property is going to exceed the 15% limit, Lessor has
the absolute right to contribute any and all personal property to Lessee in order to ensure the Rent qualifies as “rents
from real property”.

 

(ii)         Sublease
Rent Limitation. Anything contained in this Lease to the contrary notwithstanding, Lessee shall not sublet the Leased Property
on any basis such that the rental or other amounts to be paid by the sublessee thereunder would be based, in whole or in part,
on either (a) the net income or profits derived by the business activities of the sublessee, or (b) any other formula such that
any portion of the Rent would fail to qualify as “rents from real property” within the meaning of Section 856(d) of
the Code, or any similar or successor provision thereto.

 

(iii)        Sublease
Tenant Limitation. Anything contained in this Lease to the contrary notwithstanding, Lessee shall not, without the prior written
approval of the Lessor, sublease the Leased Property to any Person in which American Realty Capital Hospitality Trust, Inc. owns,
directly or indirectly, a ten percent (10%) or greater interest, within the meaning of Section 856(d)(2)(B) of the Code, or any
similar or successor provisions thereto.

 

(iv)         TRS
Election. Lessee either has made an election to be and operates as a “taxable REIT subsidiary” of American Realty
Capital Hospitality Trust, Inc. within the meaning of Section 856(1) of the Code, or is a subsidiary of an entity that has made
an election to be and operates as a “taxable REIT subsidiary” of American Realty Capital Hospitality Trust, Inc. within
the meaning of Section 856(1) of the Code.

 

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(v)          Lessee
shall not (A) directly or indirectly operate or manage a “lodging facility” within the meaning of Section 856(d)(9)(D)(ii)
of the Code or a “health care facility” within the meaning of Section 856(e)(6)(D)(ii) of the Code or (B) directly
or indirectly provide to any other person (under a franchise, license, or otherwise) rights to any brand name under which any lodging
facility or health care facility is operated; provided, however, that Lessee may provide such rights to a Manager (as defined in
Section 19.3 hereof) to operate or manage a lodging facility as long as such rights are held by Lessee as a franchisee, licensee,
or in a similar capacity and such lodging facility is either owned by Lessee or is leased to Lessee by Lessor or one of its Affiliates.

 

(b)          Lessee
agrees, and agrees to use its best efforts to cause its Affiliates, to use its best efforts to permit the REIT Requirements to
be satisfied and to cooperate in good faith with American Realty Capital Hospitality Trust, Inc. and Lessor to ensure that the
REIT Requirements are satisfied. Lessee agrees, and agrees to use reasonable efforts to cause its Affiliates, upon request by American
Realty Capital Hospitality Trust, Inc., and, where appropriate, at American Realty Capital Hospitality Trust, Inc.’s expense,
to take reasonable action necessary to ensure compliance with the REIT Requirements. Immediately after becoming aware that the
REIT Requirements are not, or will not be, satisfied, Lessee shall notify, or use reasonable efforts to cause its Affiliates to
notify, American Realty Capital Hospitality Trust, Inc. of such noncompliance.

 

Section
19.2.          Lessee Officer and Employee Limitation.

 

Anything contained
in this Lease to the contrary notwithstanding, none of the officers or employees of Lessee or any entity in which Lessee has a
direct or indirect ownership interest (a “Lessee-Owned Entity”) shall be officers or employees of a Manager (or any
Person who operates or manages the Leased Property) or any entity in which the Manager (or such Person) has a direct or indirect
ownership interest (a “Manager-Owned Entity”). In addition, if a Person serves as both (a) a director of Lessee or
any Lessee-Owned Entity and (b) a director and officer (or employee) of Manager (or any Person who operates or manages the Leased
Property) or any Manager-Owned Entity, that Person shall not receive any compensation for servicing as a director of Lessee or
any Lessee-Owned Entity. If a person serves as both (a) a director of Manager (or any Person who operates or manages the Leased
Property) or any Manager-Owned Entity and (b) a director and officer (or employee ) of Lessee or any Lessee-Owned Entity, that
Person shall not receive any compensation for serving as a director of Manager or any Manager-Owned Entity.

 

Section
19.3.          Management Agreement.

 

Lessee agrees that,
in order to comply with certain of the REIT Requirements, it will, at all times during the Term, cause the Leased Property to be
operated and managed by a Manager that is an Eligible Independent Contractor. Effective as of the Commencement Date, Lessee shall
enter into a Management Agreement and Lessee shall provide Lessor with an executed copy thereof. Lessee may not amend, modify,
or terminate the Management Agreement in any respect or change the Manager without the prior written consent of Lessor. Lessee
also shall provide Lessor with copies of any amendments or modifications to the Management Agreement which are entered into from
time to time or any other management agreement. Lessor shall have the right to approve in advance any Manager.

 

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ARTICLE
XX

 

Section
20.1.          Holding Over.

 

If Lessee for any reason
remains in possession of the Leased Property after the expiration or earlier termination of the Term, such possession shall be
as a tenant at sufferance during which time Lessee shall pay as rental each month 150% the aggregate of (a) one-twelfth of the
aggregate Base Rent and Percentage Rent payable with respect to the last Fiscal Year of the Term with respect to such Leased Property,
(b) all Additional Charges accruing during the applicable month and (c) all other sums, if any, payable by Lessee under this
Lease with respect to the Leased Property. During such period, Lessee shall be obligated to perform and observe all of the terms,
covenants and conditions of this Lease, but shall have no rights hereunder other than the right, to the extent given by law to
tenancies at sufferance, to continue its occupancy and use of the Leased Property. Nothing contained herein shall constitute the
consent, express or implied, of Lessor to the holding over of Lessee after the expiration or earlier termination of this Lease.

 

ARTICLE
XXI

 

Section
21.1.          Abatement of Rent.

 

Except in the event
of a constructive eviction of Lessee from the Leased Property for any reason other than an Event of Default or as expressly provided
in this Lease, Lessee shall not be entitled to any abatement of Rent.

 

ARTICLE
XXII

 

Section
22.1.          Indemnification.

 

Notwithstanding the
existence of any insurance, and without regard to the policy limits of any such insurance or self-insurance, but subject to Section
16.4 and Article VIII, Lessee will protect, indemnify, hold harmless and defend Lessor from and against all liabilities, obligations,
claims, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees
and expenses), to the extent permitted by law, imposed upon or incurred by or asserted against Lessor Indemnified Parties by reason
of: (a) any accident, injury to or death of persons or loss of or damage to property occurring on or about the Leased Property
or adjoining sidewalks, including without limitation any claims under liquor liability, “dram shop” or similar laws,
(b) any present or future use, misuse, non-use, management, maintenance or repair by Lessee or any of its agents, employees or
invitees of the Leased Property or Lessor’s Personal Property or any litigation, proceeding or claim by governmental entities
or other third parties to which a Lessor Indemnified Party is made a party or participant related to such use, misuse, non-use,
management, maintenance, or repair thereof by Lessee or any of its agents, employees or invitees, including any failure of Lessee
or any of its agents, employees or invitees to perform any obligations under this Lease or imposed by applicable law (other than
arising out of Condemnation proceedings), (c) any Impositions that are the obligations of Lessee pursuant to the applicable provisions
of this Lease, (d) any failure on the part of Lessee to perform or comply with any of the terms of this Lease, and (e) the non-performance
of any of the terms and provisions of any and all existing and future subleases of the Leased Property to be performed by the landlord
thereunder.

 

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Without limiting the
generality of the foregoing paragraph, Lessee shall indemnify, save harmless and defend Lessor Indemnified Parties (including,
but not limited to, any Lessor Indemnified Party that is a guarantor of the Franchise Agreement) from and against all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses (including, but not limited to, transfer fees and
termination fees) imposed upon or incurred by or asserted against Lessor Indemnified Parties under or with respect to the Franchise
Agreement which arises as a result of (a) any default by Lessee under the terms of this Lease; or (b) any default by Lessee under
the Franchise Agreement unless such default is a result of Lessor’s default under this Lease.

 

Lessor shall indemnify,
save harmless and defend Lessee Indemnified Parties from and against all liabilities, obligations, claims, damages, penalties,
causes of action, costs and expenses imposed upon or incurred by or asserted against Lessee Indemnified Parties as a result of
(a) the gross negligence or willful misconduct of Lessor arising in connection with this Lease; (b) any failure on the part of
Lessor to perform or comply with any of the terms of this Lease; (c) the failure by Lessor to make capital improvements required
in this Lease or to comply with applicable Legal Requirements or any requirements imposed by the franchisor in accordance with
the Franchise Agreement or necessary to maintain the safety or structural soundness of the Leased Property; (d) any condition existing
on the Leased Property at the Commencement Date; and (e) all events occurring prior to the Commencement Date and subsequent to
the expiration or termination of this Lease.

 

Without limiting the
generality of the foregoing paragraph, Lessor shall indemnify, save harmless and defend Lessee Indemnified Parties (including,
but not limited to, any Lessee Indemnified Party that is a guarantor of the Franchise Agreement) from and against all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses (including, but not limited to, transfer fees and
termination fees) imposed upon or incurred by or asserted against Lessee Indemnified Parties under or with respect to the Franchise
Agreement which arises as a result of (a) any default by Lessor under the terms of this Lease; (b) the sale by Lessor of the
Leased Property or any interest of Lessor in the Leased Property; (c) the failure by Lessor to make capital improvements required
to comply with applicable Legal Requirements or any requirements imposed by the franchisor in accordance with the Franchise Agreement
or necessary to maintain the safety or structural soundness of the Leased Property; or (d) any act or omission of any person that
acquires the Leased Property or any interest of Lesser in the Leased Property.

 

    	45

    	 

    

 

Any amounts that become
payable by an Indemnifying Party under this Section shall be paid within ten (10) days after liability therefor on the part
of the Indemnifying Party is determined by litigation or otherwise, and if not timely paid, shall bear a late charge (to the extent
permitted by law) at the Overdue Rate from the date of such determination to the date of payment. An Indemnifying Party, at its
expense, shall contest, resist and defend any such claim, action or proceeding asserted or instituted against the Indemnified Party.
The Indemnified Party, at its expense, shall be entitled to participate in any such claim, action, or proceeding, and the Indemnifying
Party may not compromise or otherwise dispose of the same without the consent of the Indemnified Party, which may not be unreasonably
withheld. Nothing herein shall be construed as indemnifying a Lessor Indemnified Party against its own grossly negligent acts or
omissions or willful misconduct.

 

Lessee’s or Lessor’s
liability for a breach of the provisions of this Article shall survive any termination of this Lease.

 

ARTICLE
XXIII

 

Section
23.1.          Subletting and Assignment.

 

Subject to the provisions
of Article XIX and Section 23.2 and any other express conditions or limitations set forth herein, Lessee may, but only with the
consent of Lessor, which consent may be withheld in Lessor’s sole discretion, (a) assign this Lease with respect to
the Leased Property or sublet all or any part of the Leased Property or (b) sublet any retail or restaurant portion of the Leased
Improvements with respect to the Leased Property in the normal course of the Primary Intended Use; provided that any subletting
to any party other than an Affiliate of Lessee shall not individually as to any one such subletting, or in the aggregate, materially
diminish the actual or potential Percentage Rent payable with respect to the Leased Property under this Lease. In the case of a
subletting, the sublessee shall comply with the provisions of Section 23.2, and in the case of an assignment, the assignee shall
assume in writing and agree to keep and perform all of the terms of this Lease on the part of Lessee to be kept and performed and
shall be, and become, jointly and severally liable with Lessee for the performance thereof. Notwithstanding the above, Lessee may
assign the Lease to an Affiliate with respect to the Leased Property without the consent of Lessor; provided that any such assignee
assumes in writing and agrees to keep and perform all of the terms of the Lease on the part of Lessee to be kept and performed
and shall be and become jointly and severally liable with Lessee for the performance thereof. In case of either an assignment or
subletting made during the Term, Lessee shall remain primarily liable, as principal rather than as surety, for the prompt payment
of the Rent and for the performance and observance of all of the covenants and conditions to be performed by Lessee hereunder.
An original counterpart of each such sublease and assignment and assumption, duly executed by Lessee and such sublessee or assignee,
as the case may be, in form and substance satisfactory to Lessor, shall be delivered promptly to Lessor.

 

Section
23.2.          Subordination and Attornment.

 

Lessee shall insert
in each sublease permitted under Section 23.1 provisions to the effect that (a) such sublease is subject and subordinate to all
of the terms and provisions of this Lease and to the rights of Lessor hereunder (if Lessor executes a non-disturbance agreement
with respect thereto), (b) if this Lease terminates before the expiration of such sublease, the sublessee thereunder will, at Lessor’s
option, attorn to Lessor and waive any right the sublessee may have to terminate the sublease or to surrender possession thereunder
as a result of the termination of this Lease, and (c) if the sublessee receives a written Notice from Lessor or Lessor’s
assignees, if any, stating that an uncured Event of Default exists under this Lease, the sublessee shall thereafter be obligated
to pay all rentals accruing under said sublease directly to the party giving such Notice, or as such party may direct. All rentals
received from the sublessee by Lessor or Lessor’s assignees, if any, as the case may be, shall be credited against the amounts
owing by Lessee under this Lease.

 

    	46

    	 

    

  

ARTICLE
XXIV

 

Section
24.1.          Officer’s Certificates; Financing Statements; Lessor’s
Estoppel Certificates and Covenants.

 

(a)      At
any time and from time to time upon not less than 10 days’ Notice by Lessor, Lessee will furnish to Lessor an Officer’s
Certificate certifying that this Lease is unmodified and in full force and effect (or that this Lease is in full force and effect
as modified and setting forth the modifications), the date to which the Rent has been paid, whether to the knowledge of Lessee
there is any existing default or Event of Default hereunder by Lessor or Lessee, and such other information as may be reasonably
requested by Lessor. Any such certificate furnished pursuant to this Section may be relied upon by Lessor, any lender and
any prospective purchaser of the Leased Property.

 

(b)      Upon
the request of Lessor, Lessee will furnish the following statements to Lessor:

 

(i)          with
reasonable promptness, such information respecting the financial condition and affairs of Lessee including financial statements,
as Lessor may reasonably request from time to time; and

 

(ii)         the
most recent Consolidated Financials of Lessee within 45 days after each quarter of any Fiscal Year (or, in the case of the final
quarter in any Fiscal Year, the most recent Consolidated Financials of Lessee within 90 days).

 

(c)      At
any time and from time to time upon not less than 10 days’ Notice by Lessee, Lessor will furnish to Lessee or to any person
designated by Lessee an estoppel certificate certifying that this Lease is unmodified and in full force and effect (or that this
Lease is in full force and effect as modified and setting forth the modifications), the date to which Rent has been paid, whether
to the knowledge of Lessor there is any existing default or Event of Default on Lessee’s part hereunder, and such other information
as may be reasonably requested by Lessee.

 

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ARTICLE
XXV

 

Section
25.1.          Lessor’s Right to Inspect.

 

Lessee shall permit
Lessor and its authorized representatives as frequently as reasonably requested by Lessor to inspect the Leased Property and Lessee’s
accounts and records pertaining thereto and make copies thereof, during usual business hours upon reasonable advance Notice, subject
only to any business confidentiality requirements reasonably requested by Lessee.

 

ARTICLE
XXVI

 

Section
26.1.          No Waiver.

 

No failure by Lessor
or Lessee to insist upon the strict performance of any term hereof or to exercise any right, power or remedy consequent upon a
breach thereof, and no acceptance of full or partial payment of Rent during the continuance of any such breach, shall constitute
a waiver of any such breach or of any such term. To the extent permitted by law, no waiver of any breach shall affect or alter
this Lease, which shall continue in full force and effect with respect to any other then existing or subsequent breach.

 

ARTICLE
XXVII

 

Section
27.1.          Remedies Cumulative.

 

To the extent permitted
by law, each legal, equitable or contractual right, power and remedy of Lessor or Lessee now or hereafter provided either in this
Lease or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power and remedy
and the exercise or beginning of the exercise by Lessor or Lessee of any one or more of such rights, powers and remedies shall
not preclude the simultaneous or subsequent exercise by Lessor or Lessee of any or all of such other rights, powers and remedies.

 

ARTICLE
XXVIII

 

Section
28.1.          Acceptance of Surrender.

 

No surrender to Lessor
of this Lease or of the Leased Property or any part thereof, or of any interest therein, shall be valid or effective unless agreed
to and accepted in writing by Lessor and no act by Lessor or any representative or agent of Lessor, other than such a written acceptance
by Lessor, shall constitute an acceptance of any such surrender.

 

ARTICLE
XXIX

 

Section
29.1.          No Merger of Title.

 

There shall be no merger
of this Lease or of the leasehold estate created hereby by reason of the fact that the same person or entity may acquire, own or
hold, directly or indirectly: (a) this Lease or the leasehold estate created hereby or any interest in this Lease or such leasehold
estate and (b) the fee estate in the Leased Property.

 

    	48

    	 

    

  

ARTICLE
XXX

 

Section
30.1.          Conveyance by Lessor.

 

If Lessor or any successor
owner of the Leased Property conveys the Leased Property in accordance with the terms hereof other than as security for a debt,
and the grantee or transferee of the Leased Property expressly assumes all obligations of Lessor hereunder arising or accruing
from and after the date of such conveyance or transfer, Lessor or such successor owner, as the case may be, shall thereupon be
released from all future liabilities and obligations of Lessor under this Lease arising or accruing from and after the date of
such conveyance or other transfer as to the Leased Property and all such future liabilities and obligations shall thereupon be
binding upon the new owner.

 

Section
30.2.          Other Interests.

 

This Lease and Lessee’s
interest hereunder shall at all times be subject and subordinate to the lien and security title of any deeds to secure debt, deeds
of trust, mortgages, or other interests heretofore or hereafter granted by Lessor or which otherwise encumber or affect the Leased
Property and to any and all advances to be made thereunder and to all renewals, modifications, consolidations, replacements, substitutions,
and extensions thereof (all of which are herein called the “Mortgage”); provided, however, that with respect to any
Mortgage hereinafter granted, such subordination is conditioned upon delivery to Lessee of a non-disturbance agreement which provides
that Lessee shall not be disturbed in its possession of the Leased Property hereunder following a foreclosure of such Mortgage
and that the holder of such Mortgage or the purchaser at a foreclosure sale shall perform all obligations of Lessor under this
Lease. In confirmation of such subordination, however, Lessee shall, at Lessor’s request, promptly execute, acknowledge and
deliver any instrument which may be required to evidence subordination to any Mortgage and to the holder thereof. In the event
of Lessee’s failure to deliver such subordination and if the Mortgage does not change any term of the Lease, Lessor may,
in addition to any other remedies for breach of covenant hereunder, execute, acknowledge, and deliver the instrument as the agent
or attorney-in-fact of Lessee, and Lessee hereby irrevocably constitutes Lessor its attorney-in-fact for such purpose, Lessee acknowledging
that the appointment is coupled with an interest and is irrevocable. Lessee hereby waives and releases any claim it might have
against Lessor or any other party for any actions lawfully taken by the holder of any Mortgage.

 

ARTICLE
XXXI

 

Section
31.1.          Quiet Enjoyment.

 

So long as Lessee pays
all Rent as the same becomes due and complies with all of the terms of this Lease and performs its obligations hereunder, in each
case within the applicable grace periods, if any, Lessee shall peaceably and quietly have, hold and enjoy the Leased Property for
the Term hereof, free of any claim or other action by Lessor or anyone claiming by, through or under Lessor, but subject to all
liens and encumbrances subject to which the Leased Property was conveyed to Lessor or hereafter consented to by Lessee or provided
for herein. Notwithstanding the foregoing, Lessee shall have the right by separate and independent action to pursue any claim it
may have against Lessor as a result of a breach by Lessor of the covenant of quiet enjoyment contained in this Section.

 

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ARTICLE
XXXII

 

Section
32.1.          Notices.

 

All notices, demands,
requests, consents approvals and other communications (“Notice” or “Notices”) hereunder shall be in writing
and (i) personally served or, (ii) mailed by registered or certified mail, return receipt requested and postage prepaid or, (iii)
sent by trackable overnight nationally recognized courier service, next business day delivery or, (iv) via facsimile, provided
(i), (ii) or (iii) are also utilized), if to Lessee or Lessor c/o American Realty Capital Hospitality Trust, Inc., 405 Park Avenue,
15th Floor, New York, New York 1002, Attention: Jonathan Mehlman, with a copy to Jesse Charles Galloway, Esq., 405 Park
Avenue, 15th Floor, New York, New York 1002. Personally delivered Notice shall be effective upon receipt, Notice given
by mail shall be complete at the time of deposit in the U.S. Mail system, Notice given by trackable overnight nationally recognized
courier service, next business day delivery shall be complete at the time of deposit with such courier service, and Notice given
by facsimile shall be complete at the time evidenced by the printed verification thereof, provided one of the other methods is
also utilized, but any prescribed period of Notice and any right or duty to do any act or make any response within any prescribed
period or on a date certain after the service of such Notice given by mail shall be extended five days.

 

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ARTICLE
XXXIII

 

Section
33.1.          Appraisers.

 

If it becomes necessary
to determine the Fair Market Value of Lessee’s leasehold interest in the Leased Property or of any other real property or
the Fair Market Rental of the Leased Property for any purpose of this Lease, the party required or permitted to give Notice of
such required determination shall include in the Notice the name of a person selected to act as appraiser on its behalf. Within
10 days after Notice, Lessor (or Lessee, as the case may be) shall by Notice to Lessee (or Lessor, as the case may be) appoint
a second person as appraiser on its behalf. The appraisers thus appointed, each of whom must be a member of the American Institute
of Real Estate Appraisers (or any successor organization thereto) with at least five years experience in the State appraising property
similar to the subject property, shall, within 45 days after the date of the Notice appointing the first appraiser, proceed to
determine, as applicable, the Fair Market Value of the subject property or the Fair Market Rental of the Leased Property as of
the relevant date (giving effect to the impact, if any, of inflation from the date of their decision to the relevant date); provided,
however, that if only one appraiser shall have been so appointed, then the determination of such appraiser shall be final and binding
upon the parties. If Lessee’s leasehold interest in the Leased Property is the subject property, to the extent consistent
with sound appraisal practice as then existing at the time of any such appraisal, such appraisal shall be made on a basis consistent
with the basis on which the Leased Property was appraised for purposes of determining its Fair Market Value at the time the Leased
Property was acquired by Lessor. If two appraisers are appointed and if the difference between the amounts so determined does not
exceed 5% of the lesser of such amounts, then the Fair Market Value or Fair Market Rental shall be an amount equal to 50% of the
sum of the amounts so determined. If the difference between the amounts so determined exceeds 5% of the lesser of such amounts,
then such two appraisers shall have 20 days to appoint a third appraiser. If no such appraiser shall have been appointed within
such 20 days or within 90 days of the original request for a determination of Fair Market Value or Fair Market Rental, whichever
is earlier, either Lessor or Lessee may apply to any court having jurisdiction to have such appointment made by such court. Any
appraiser appointed by the original appraisers or by such court shall be instructed to determine the Fair Market Value or Fair
Market Rental within 45 days after appointment of such appraiser. The determination of the appraiser which differs most in the
terms of dollar amount from the determinations of the other two appraisers shall be excluded, and 50% of the sum of the remaining
two determinations shall be final and binding upon Lessor and Lessee as the Fair Market Value of the subject property or the Fair
Market Rental of the Leased Property, as the case may be. This provision for determining by appraisal shall be specifically enforceable
to the extent such remedy is available under applicable law, and any determination hereunder shall be final and binding upon the
parties except as otherwise provided by applicable law. Lessor and Lessee shall each pay the fees and expenses of the appraiser
appointed by it and each shall pay one-half of the fees and expenses of the third appraiser and one-half of all other costs and
expenses incurred in connection with each appraisal.

 

ARTICLE
XXXIV

 

Section
34.1.          Lessor May Grant Liens.

 

Without the consent
of Lessee, Lessor may, subject to the terms and conditions set forth below in this Article XXXIV, from time to time, directly
or indirectly, create or otherwise cause to exist any lien, encumbrance or title retention agreement (“Encumbrance”)
upon the Leased Property, or any portion thereof or interest therein, whether to secure any borrowing or other means of financing
or refinancing. Any such Encumbrance may (a) contain the right to prepay (whether or not subject to a prepayment penalty); (b)
provide that it is subject to the rights of Lessee under this Lease and (c) contain the Agreement by the holder of the Encumbrance
that it will (1) give Lessee the same notice, if any, given to Lessor of any default or acceleration of any obligation underlying
any such Encumbrance or any sale in foreclosure under such Encumbrance, (2) permit Lessee to cure any such default on Lessor’s
behalf within any applicable cure period, and Lessee shall be reimbursed by Lessor for any and all costs incurred in effecting
such cure, including without limitation out-of-pocket costs incurred to effect any such cure (including reasonable attorneys’
fees) and (3) permit Lessee to appear by its representative and to bid at any sale in foreclosure made with respect to any such
Encumbrance. Upon the request of Lessor, Lessee shall subordinate this Lease to the lien of a new mortgage on the Leased Property,
on the condition that the proposed mortgagee executes a non-disturbance agreement recognizing this Lease, and agreeing, for itself
and its successors and assigns, to comply with the provisions of this Article XXXIV.

 

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Section
34.2.          Lessee’s Right to Cure.

 

Subject to the provisions
of Section 34.3, if Lessor breaches any covenant to be performed by it under this Lease, Lessee, after Notice to and demand upon
Lessor, without waiving or releasing any obligation hereunder, and in addition to all other remedies available to Lessee, may (but
shall be under no obligation at any time thereafter to) make such payment or perform such act for the account and at the expense
of Lessor. All sums so paid by Lessee and all costs and expenses (including, without limitation, reasonable attorneys’ fees)
so incurred, together with interest thereon at the Overdue Rate from the date on which such sums or expenses are paid or incurred
by Lessee, shall be paid by Lessor to Lessee on demand or, following entry of a final, nonappealable judgment against Lessor for
such sums, may be offset by Lessee against the Base Rent payments next accruing or coming due. The rights of Lessee hereunder to
cure and to secure payment from Lessor in accordance with this Section 34.2 shall survive the termination of this Lease with respect
to the related Leased Property.

 

Section
34.3.          Breach by Lessor.

 

It shall be a breach
of this Lease if Lessor fails to observe or perform any term, covenant or condition of this Lease on its part to be performed and
such failure continues for a period of 30 days after Notice thereof from Lessee, unless such failure cannot with due diligence
be cured within a period of 30 days, in which case such failure shall not be deemed to continue if Lessor, within such 30-day period,
proceeds promptly and with due diligence to cure the failure and diligently completes the curing thereof. The time within which
Lessor shall be obligated to cure any such failure also shall be subject to extension of time due to the occurrence of Force Majeure.
If Lessor fails to cure any such breach within the grace period described above, Lessee, without waiving or releasing any obligations
hereunder, and in addition to all other remedies available to Lessee at law or in equity, may purchase the Leased Property (or
such portion thereof as the breach relates to) from Lessor for a purchase price equal to the then Fair Market Value. If Lessee
elects to purchase the Leased Property (or portion thereof), it shall deliver a Notice thereof to Lessor specifying a settlement
date to occur not less than 90 days subsequent to the date of such Notice on which it shall purchase the Leased Property (or portion
thereof), and the same shall be thereupon conveyed in accordance with the provisions of Article XVIII.

 

ARTICLE
XXXV

 

Section
35.1.          Miscellaneous.

 

Anything contained
in this Lease to the contrary notwithstanding, all claims against, and liabilities of, Lessee or Lessor arising prior to any date
of termination of this Lease shall survive such termination. If any term or provision of this Lease or any application thereof
is invalid or unenforceable, the remainder of this Lease and any other application of such term or provisions shall not be affected
thereby. If any late charges or any interest rate provided for in any provision of this Lease are based upon a rate in excess of
the maximum rate permitted by applicable law, the parties agree that such charges shall be fixed at the maximum permissible rate.
Neither this Lease nor any provision hereof may be changed, waived, discharged or terminated except by a written instrument in
recordable form signed by Lessor and Lessee. All the terms and provisions of this Lease shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. The headings in this Lease are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof. This Lease shall be governed by and construed in accordance with
the laws of the State, but not including its conflicts of laws or rules.

 

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Section
35.2.          Transition Procedures.

 

Upon the expiration
or termination of the Term, for whatever reason, Lessor and Lessee shall do the following (and the provisions of this Section 35.2
shall survive the expiration or termination of this Lease until they have been fully performed) and, in general, shall cooperate
in good faith to effect an orderly transition of the management and/or lease of the Hotel.

 

(a)      Transfer
of Licenses. Upon the expiration or earlier termination of the Term, Lessee shall use commercially reasonable efforts (i) to
transfer to Lessor or Lessor’s nominee all licenses, operating permits and other governmental authorizations and all contracts,
including contracts with governmental or quasi-governmental entities, that may be necessary for the operation of the Hotel (collectively,
“Licenses”), or (ii) if such transfer is prohibited by law or Lessor otherwise elects, to cooperate with Lessor or
Lessor’s nominee in connection with the processing by Lessor or Lessor’s nominee of any applications for, all Licenses;
provided, in either case, that the costs and expenses of any such transfer or the processing of any such application shall be paid
by Lessor or Lessor’s nominee.

 

(b)      Leases
and Concessions. Lessee shall assign to Lessor or Lessor’s nominee simultaneously with the termination of this Lease,
and the assignee shall assume all leases and concession agreements in effect with respect to the Hotel then in Lessee’s name.

 

(c)      Books
and Records. All books and records for the Hotel kept by Lessee pursuant to Section 3.7 shall be delivered promptly to Lessor
or Lessor’s nominee, simultaneously with the termination of this Lease, but such books and records shall thereafter be available
to Lessee at all reasonable times for inspection, audit, examination, and transcription for a period of one (1) year and Lessee
may retain (on a confidential basis) copies or computer records thereof.

 

Section
35.3.          Waiver of Presentment, etc.

 

Lessee waives all presentments,
demands for payment and for performance, notices of nonperformance, protests, notices of protest, notices of dishonor, and notices
of acceptance and waives all notices of the existence, creation, or incurring of new or additional obligations, except as expressly
granted herein.

 

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ARTICLE
XXXVI

 

Section
36.1.          Memorandum of Lease.

 

Lessor and Lessee shall
promptly upon the request of either enter into a short form memorandum of this Lease, in form suitable for recording under the
laws of the State in which reference to this Lease, and all options contained herein, shall be made. The party requesting such
memorandum of this Lease shall pay all costs and expenses of recording such memorandum, including any real estate excise transfer
or sales tax that may be due and payable in conjunction with recording such memorandum.

 

ARTICLE
XXXVII

 

Section
37.1.          Compliance with Franchise Agreement.

 

(a)      General
Requirements. Lessor will pay any costs and expenses in connection with the assignment of any existing Franchise Agreement
to Lessee or to obtain a new Franchise Agreement. Lessee shall comply in every respect with the provisions of the Franchise Agreement
so as to avoid any default thereunder during the term of this Lease, except to the extent such compliance is an obligation of Lessor
pursuant to the terms of this Lease. Lessee shall not terminate, extend, modify or enter into any Franchise Agreement without in
each instance first obtaining Lessor’s prior written consent, not to be unreasonably withheld. Lessor and Lessee agree to
cooperate fully with each other in the event it becomes necessary to obtain a Franchise Agreement extension or modification or
a new franchise for the Leased Property. If a Franchise Agreement expires prior to the expiration of the Term for the related Leased
Property, Lessee, with the prior approval of Lessor, shall use its good faith efforts to obtain a new franchise license for the
Leased Property, together with a comfort letter in favor of Lessor in form reasonably acceptable to Lessor. Leases and Concessions.
Lessee shall assign to Lessor or Lessor’s nominee simultaneously with the termination of this Lease, and the assignee shall
assume all leases and concession agreements in effect with respect to the Hotel then in Lessee’s name.

 

(b)      Compliance
and Default. The Hotel will be operated in full compliance with the provisions of the Franchise Agreement. In case of a conflict
between the provisions of the Lease and the provisions of the Franchise Agreement, the provisions of the Franchise Agreement shall
control. If Lessee shall default under the terms of the Franchise Agreement, such a Default shall constitute a default under the
terms of this Lease. In the event of an uncured Default caused by Lessee that leads to termination of the Franchise Agreement,
the Lease will be terminated.

 

(c)      Amendment
and Modification. The provisions of this Article XXXVII and any other provisions in the Lease affecting, or for the benefit of,
the Franchisor will not be amended or modified without Franchisor’s prior written consent.

 

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ARTICLE
XXXVIII

 

Intentionally Left
Blank

 

Section
38.1.          Arbitration.

 

Except as otherwise
expressly provided, in the event a dispute should arise concerning the interpretation or application of any of the provisions of
this Lease, the parties agree that the dispute shall be submitted to arbitration of the American Arbitration Association under
its then prevailing rules, except as modified by this Article Error! Reference source not found.. The Arbitration Tribunal
shall be formed of three (3) Arbitrators each of which shall have at least five (5) years’ experience in hotel operation,
management or ownership, one (1) to be appointed by each of Lessor and Lessee and the third (3rd) to be appointed by the American
Arbitration Association. The arbitration shall take place in the county in which the Leased Property is located and shall be conducted
in the English language. The arbitration award shall be final and binding upon the parties hereto and subject to no appeal, and
shall deal with the question of costs of arbitration and all matters related thereto. Judgment upon the award rendered may be entered
into any court having jurisdiction, or applications may be made to such court for an order of enforcement. Any arbitration under
this Article Error! Reference source not found. shall be submitted within three (3) months following the notice which triggers
the arbitration, and shall be concluded within one (1) year thereafter. In the event either of the foregoing deadlines are missed,
either party may proceed to commence a court proceeding to resolve the dispute.

 

ARTICLE
XXXIX

 

Section
39.1.          Sale and Termination of Lease.

 

In the event Lessor
enters into a contract to sell its interest in the Leased Property, Lessor may terminate this Lease by giving thirty (30) days
prior Notice to Lessee, and then, as of the closing of such sale, this Lease shall terminate and be of no further force and effect
except as to any obligations existing as of such date that survive termination of this Lease, and all Rent shall be adjusted as
of such date. As compensation for the early termination of Lessee’s leasehold estate hereunder, Lessor shall, at Lessor’s
election:

 

(a)         pay to Lessee
a termination payment equal to the Fair Market Value of Lessee’s leasehold estate in the Hotel (a “Termination Payment”),
which Termination Payment shall be paid by Lessor to Lessee within eighteen (18) months after the termination of this Lease; or

 

(b)        within eighteen
(18) months after termination of this Lease, offer to lease to Lessee, or cause Lessee to be offered the opportunity to lease,
one or more substitute hotel facilities comparable to the Hotel (i.e., comparable market and substantially similar class, quality
and condition of property) pursuant to one or more leases (“Substitute Leases”) that would create for Lessee leasehold
estates that have an aggregate Fair Market Value of no less than the Termination Payment that otherwise would be payable with respect
to the Fair Market Value of Lessee’s leasehold estate in the Hotel.

 

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In the event Lessor
subsequently elects and complies with the option described in (b) above, the Substitute Leases shall not take into account the
amount of the Termination Payment accrued to the date the Substitute Leases are entered into and Lessor shall have no further responsibility
or obligation with respect to the Termination Payment. If Lessor elects and complies with the option described in (b) above, regardless
of whether Lessee enters into any of the Substitute Leases, Lessor shall have no further obligations to Lessee with respect to
compensation for the early termination of this Lease.

 

    	56

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this Lease under seal by their duly authorized officers as of the date first above written.

 

	 	LESSOR
	 	 
	 	ARC Hospitality Stratford, LLC,
	 	a Delaware limited liability company
	 	 	 
	 	By:     American Realty Capital Hospitality Operating Partnership, L.P., its sole member
	 	 	 
	 	By: American Realty Capital Hospitality Trust, Inc., its general partner
	 	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Printed Name: Jesse C. Galloway
	 	Title: Authorized Signatory
	 	 	 
	 	LESSEE
	 	 
	 	ARC Hospitality TRS Stratford, LLC,
	 	a Delaware limited liability company
	 	 
	 	By: ARC Hospitality TRS Holding, LLC, its sole member
	 	 	 
	 	By:     American Realty Capital Hospitality Operating Partnership, L.P., its sole member
	 	 	 
	 	By: American Realty Capital Hospitality Trust, Inc., its general partner
	 	 	 
	 	By:	/s/ Jesse C. Galloway
	 	Printed Name: Jesse C. Galloway
	 	Title: Authorized Signatory

 

    	57

    	 

    

  

State of ______________

 

County of ____________

 

I, a Notary Public
of the County and State aforesaid, certify that _________________ personally came before me this day and acknowledged that he is
______________ of ____________________, a _________________________, general partner of ________________________, a _________ limited
partnership, and acknowledged the execution of the foregoing instrument. Witness my hand and seal, this the ___ day of ______________________,
2003.

 

	 	 
	 	Notary Public
	 	 
	 	My commission expires:_______________

  

(SEAL)

  

	State of _____________	)	 
	 	 	 
	 	)	SS.
	 	 	 
	County of ___________	)	 

 

 

I, a Notary Public
of the County and State aforesaid, certify that _____________________ personally came before me this day and acknowledged that
he is __________ of _________________________________, a ______________ corporation, and acknowledged the execution of the foregoing
instrument. IN TESTIMONY WHEREOF, I have hereunto set my hand and seal this _____ day of ______________, 2003.

 

	 	 
	 	Notary Public
	 	 
	(SEAL)	 
	 	 
	 	My commission expires:_______________

  

    	58

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTIONS

 

[Attached]

 

    	A-1

    	 

    

 

EXHIBIT B

 

[TERM]

 

[COMMENCEMENT DATE]

 

    	B-1

    	 

    

  

EXHIBIT C 

 

    	C-1

    	 

    

 

EXHIBIT D

 

MANAGEMENT AGREEMENT

 

    	D-1FRANCHISE AGREEMENT

 

HOMEWOOD
SUITES BY HILTON STRATFORD

 

(Stratford,
Connecticut)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	1.0	DEFINITIONS	1
	 	 	 
	2.0	GRANT OF LICENSE	6
	 	 	 	 
	 	2.1	Non-Exclusive License	6
	 	2.2	Reserved Rights	7
	 	 	 	 
	3.0	TERM	7
	 	 	 
	4.0	OUR RESPONSIBILITIES	7
	 	 	 	 
	 	4.1	Training	7
	 	4.2	Reservation Service	7
	 	4.3	Consultation	7
	 	4.4	Marketing	7
	 	4.5	Inspections/Compliance Assistance	8
	 	4.6	Manual	8
	 	4.7	Equipment and Supplies	9
	 	 	 	 
	5.0	YOUR RESPONSIBILITIES	9
	 	 	 	 
	 	5.1	Operational and Other Requirements	9
	 	 	 	 
	6.0	HOTEL WORK	11
	 	 	 	 
	 	6.1	Necessary Consents	11
	 	6.2	Initial Hotel Work	12
	 	6.3	Commencement and Completion of the
    Hotel Work	12
	 	6.4	Opening the Hotel Under This Agreement	12
	 	6.5	Performance of Agreement	13
	 	6.6	Hotel Refurbishment and Room Addition	13
	 	 	 	 
	7.0	STAFF AND MANAGEMENT
    OF THE HOTEL	14
	 	 	 
	8.0	PAYMENT OF FEES	14
	 	 	 	 
	 	8.1	Monthly Fees	14
	 	8.2	Calculation and Payment of Fees	14
	 	8.3	Other Fees	15
	 	8.4	Taxes	15
	 	8.5	Application of Fees	15
	 	 	 	 
	9.0	PROPRIETARY RIGHTS	15
	 	 	 	 
	 	9.1	Our Proprietary Rights	15
	 	9.2	Trade Name, Use of the Marks	15
	 	9.3	Use of Trade Name and Marks	16
	 	9.4	Trademark Disputes	16
	 	9.5	Web Sites	16
	 	9.6	Covenant	17
	 	 	 	 
	10.0	REPORTS, RECORDS, AUDITS,
    AND PRIVACY	17
	 	 	 	 
	 	10.1	Reports	17
	 	10.2	Maintenance of Records	17
	 	10.3	Audit	17
	 	10.4	Ownership of Information	18
	 	10.5	Privacy and Data Protection	18

 

    	i

    	 

    

 

	11.0	CONDEMNATION AND CASUALTY	18
	 	 	 
	 	11.1	Condemnation	18
	 	11.2	Casualty	18
	 	11.3	No Extensions of Term	19
	 	 	 	 
	12.0	NOTICE OF INTENT TO MARKET	19
	 	 	 
	13.0	TRANSFERS	19
	 	 	 	 
	 	13.1	Our Transfer	19
	 	13.2	Your Transfer	19
	 	 	 	 
	14.0	TERMINATION	22
	 	 	 	 
	 	14.1	Termination with Opportunity to Cure	22
	 	14.2	Immediate Termination by Us	22
	 	14.3	Suspension Interim Remedies	23
	 	14.4	Liquidated Damages on Termination	24
	 	14.5	Actual Damages Under Special Circumstances	24
	 	14.6	Your Obligations on Termination or Expiration	24
	 	 	 	 
	15.0	INDEMNITY	25
	 	 	 
	16.0	RELATIONSHIP OF THE PARTIES	26
	 	 	 	 
	 	16.1	No Agency Relationship	26
	 	16.2	Notices to Public Concerning Your Independent Status	26
	 	 	 	 
	17.0	MISCELLANEOUS	26
	 	 	 	 
	 	17.1	Severability and Interpretation	26
	 	17.2	Governing Law, Jurisdiction and Venue	27
	 	17.3	Exclusive Benefit	27
	 	17.4	Entire Agreement	27
	 	17.5	Amendment and Waiver	27
	 	17.6	Consent; Business Judgment	27
	 	17.7	Notices	28
	 	17.8	General Release	28
	 	17.9	Remedies Cumulative	28
	 	17.10	Economic Conditions Not a Defense	28
	 	17.11	Representations and Warranties	28
	 	17.12	Counterparts	29
	 	17.13	Sanctioned Persons and Anti-bribery Representations and Warranties	29
	 	17.14	Attorneys' Fees and Costs	30
	 	17.15	Interest	30
	 	17.16	Successors and Assigns	30
	 	17.17	Our Delegation of Rights and Responsibility	30
	 	 	 	 
	18.0	WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES	30
	 	 	 	 
	19.0	INTENTIONALLY DELETED	31
	 	 	 	 
	ADDENDUM TO FRANCHISE AGREEMENT	 
	 	 
	NEW YORK ADDENDUM TO FRANCHISE AGREEMENT	 
	 	 
	EXHIBIT A PRODUCT IMPROVEMENT PLAN	 

 

    	ii

    	 

    

 

FRANCHISE AGREEMENT

 

This Franchise Agreement between Homewood
Suites Franchise LLC ("we," "us," "our" or "Franchisor") and the Franchisee
("you," "your" or "Franchisee") set forth in the Addendum attached to this Agreement,
is dated as of the Effective Date. We and you may collectively be referred to as the "Parties."

 

INTRODUCTION

 

We are a subsidiary of Hilton Worldwide.
Hilton Worldwide and its Affiliates own, license, lease, operate, manage and provide various services for the Network. We are authorized
to grant licenses for selected, first-class, independently owned or leased hotel properties, to operate under the Brand. You have
expressed a desire to enter into this Agreement with us to obtain a license to use the Brand in the operation of a hotel at the
address or location described in the Addendum.

 

NOW, THEREFORE, in consideration of the premises and the undertakings
and commitments of each party to the other party in this Agreement, the Parties agree as follows:

 

1.0         DEFINITIONS

 

The following capitalized terms will have the meanings set forth
after each term:

 

"Affiliate" means any
natural person or firm, corporation, partnership, limited liability company, association, trust or other entity which, directly
or indirectly, controls, is controlled by, or is under common Control with, the subject entity.

 

"Agreement" means this Franchise Agreement,
including any exhibits, attachments and addenda.

 

"Anti-Corruption Laws" means
all applicable anti-corruption, anti-bribery, anti-money laundering, books and records, and internal controls laws of the United
States and the United Kingdom, including the United States Foreign Corrupt Practices Act and the United Kingdom Bribery Act of
2010.

 

"Brand" means the brand name set forth in the
Addendum.

 

"Change of Ownership Application"
means the application that is submitted to us by you or the Transferee for a new franchise agreement in connection with a Change
of Ownership Transfer.

 

"Change of Ownership Transfer" means any proposed
Transfer that results in a change of Control of Franchisee, the Hotel, or the Hotel Site and is not otherwise permitted by this
Agreement, all as set out in Subsection 13.2.3.

 

"Competing Brand" means
a hotel brand or trade name that, in our sole business judgment, competes with the System, or any System Hotel or Network Hotel.

 

"Competitor" means any
individual or entity that, at any time during the Term, whether directly or through an Affiliate, owns in whole or in part, or
is the licensor or franchisor of a Competing Brand, irrespective of the number of hotels owned, licensed or franchised under such
Competing Brand name. A Competitor does not include an individual or entity that: (i) is a franchisee of a Competing Brand; (ii)
manages a Competing Brand hotel, so long as the individual or entity is not the exclusive manager of the Competing Brand; or (iii)
owns a minority interest in a Competing Brand, so long as neither that individual or entity nor any of its Affiliates is an officer,
director, or employee of the Competing Brand, provides services (including as a consultant) to the Competing Brand, or exercises,
or has the right to exercise, Control over the business decisions of the Competing Brand.

 

    	1

    	 

    

 

"Construction Commencement Date"
means the date set out in the Addendum, if applicable, by which you must commence construction of the Hotel. For the Hotel
to be considered under construction, you must have begun to pour concrete foundations for the Hotel or otherwise satisfied any
site-specific criteria for "under construction" set out in the Addendum.

 

"Construction Work" means
all necessary action for the development, construction, renovation, furnishing, equipping, acquisition of supplies and implementation
of the Plans and Designs for the Hotel.

 

"Construction Work Completion Date"
means the date set out in the Addendum, if applicable, by which you must complete construction of the Hotel.

 

"Control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, or of the power
to veto major policy decisions of an entity, whether through the ownership of voting securities, by contract, or otherwise.

 

"Controlling Affiliate" means
an Affiliate that directly or indirectly Controls the Hotel and/or Controls the entity that Controls the Hotel.

 

"Designs" means your plans,
layouts, specifications, drawings and designs for the proposed furnishings, fixtures, equipment, signs and decor of the Hotel that
use and incorporate the Standards.

 

"Effective Date" means the date set out in
the Addendum on which this Agreement becomes effective. "Entities" means our present or future Affiliates and
direct or indirect owners.

 

"Equity Interest" means
any direct or indirect legal or beneficial interest in the Franchisee, the Hotel and/or the Hotel Site.

 

"Equity Owner" means the direct or indirect
owner of an Equity Interest, "Expiration Date" has the meaning set forth in Section 3.

 

"Force Majeure" means
an event causing a delay in our or your performance that is not the fault of or within the reasonable control of the party claiming
Force Majeure. Force Majeure includes fire, floods, natural disasters, Acts of God, war, civil commotion, terrorist acts, any governmental
act or regulation beyond such party's reasonable control. Force Majeure does not include the Franchisee's financial inability to
perform, inability to obtain financing, inability to obtain permits or any other similar events unique to the Franchisee or the
Hotel or to general economic downturn or conditions.

 

"General Manager" has the meaning set forth
in Subsection 7.1.

 

"Government or Government Entity"
means: (i) any agency, instrumentality, subdivision or other body of any national, regional, local or other government; (ii)
any commercial or similar entities owned or controlled by such government, including any state-owned and state-operated companies;
(iii) any political party; and (iv) any public international organization.

 

"Government Official" means
the following: (i) officers and employees of any national, regional, local or other Government; (ii) officers and employees of
companies in which a Government owns an interest; (iii) any private person acting in an official capacity for or on behalf of any
Government or Governmental Entity (such as a consultant retained by a government agency); (iv) candidates for political office
at any level; (v) political parties and their officials; (vi) officers, employees, or official representatives of public (quasi-governmental)
international organizations (such as the United Nations, World Bank, or International Monetary Fund).

 

"Gross Receipts Tax" means any gross receipts,
sales, use, excise, value added or any similar tax.

 

    	2

    	 

    

 

"Gross Rooms Revenue" means
all revenues derived from the sale or rental of Guest Rooms (both transient and permanent) of the Hotel, including revenue derived
from the redemption of points or rewards under the loyalty programs in which the Hotel participates, amounts attributable to breakfast
(where the guest room rate includes breakfast), and guaranteed no-show revenue and credit transactions, whether or not collected,
at the actual rates charged, less allowances for any Guest Room rebates and overcharges, and will not include taxes collected directly
from patrons or guests. Group booking rebates, if any, paid by you or on your behalf to third-party groups for group stays must
be included in, and not deducted from, the calculation of Gross Rooms Revenue.

 

"Guarantor" means the
person or entity that guaranties your obligations under this Agreement or any of Your Agreements.

 

"Guest Rooms" means each rentable unit in the
Hotel generally used for overnight guest accommodations, the entrance to which is controlled by the same key, provided that adjacent
rooms with connecting doors that can be locked and rented as separate units are considered separate Guest Rooms. The initial number
of approved Guest Rooms is set forth in the Addendum.

 

"Hilton Worldwide" means Hilton Worldwide Holdings,
Inc., a Delaware corporation.

 

"Hotel" means the property you will operate
under this Agreement and includes all structures, facilities, appurtenances, furniture, fixtures, equipment, and entry, exit, parking
and other areas located on the Hotel Site we have approved for your business or located on any land we approve in the future for
additions, signs, parking or other facilities.

 

"Hotel Site" means the
real property on which the Hotel is located or to be located, as approved by us. "Hotel Work" means Construction
Work and/or Renovation Work, as the case may be.

 

"Improper Payment" means:
(a) any payment, offer, gift or promise to pay or authorization of the payment or transfer of other things of value, including
without limitation any portion of the compensation, fees or reimbursements received hereunder or the provision of any service,
gift or entertainment, .directly or indirectly to (i) a Government Official; (ii) any director, officer, employee or commercial
partner of a Party or its Affiliates; or, (iii) any other person at the suggestion, request or direction or for the benefit of
any of the above-described persons and entities, for purposes of obtaining or influencing official actions or decisions or securing
any improper advantage in order to obtain, retain or direct business; (b) payments made and expenses incurred in connection with
performance of obligations under this Agreement that are not made and recorded with sufficient accuracy, detail, and control to
meet the standards in applicable Anti-Corruption Laws; or, (c) any other transaction in violation of applicable Anti-Corruption
Laws.

 

"Indemnified Parties" means
us and the Entities and our and their respective predecessors, successors and assigns, and the members, officers, directors, employees,
managers, and agents.

 

"Information" means all
information we obtain from you or about the Hotel or its guests or prospective guests under this Agreement or under any agreement
ancillary to this Agreement, including agreements relating to the computerized reservation, revenue management, property management,
and other systems we provide or require, or otherwise related to the Hotel. Information includes, but is not limited to, Operational
Information, Proprietary Information, and Personal Information.

 

"Interim Remedy" has the meaning set forth
in Subsection 14.3.

 

"Laws" means all public
laws, statutes, ordinances, orders, rules, regulations, permits, licenses, certificates, authorizations, directions and requirements
of all Governments and Governmental Entities having jurisdiction over the Hotel, Hotel Site or over Franchisee to operate the Hotel,
which, now or hereafter, may apply to the construction, renovation, completion, equipping, opening and operation of the Hotel,
including Title ill of the Americans with Disabilities Act, 42 U.S.C. § 12181, et seq., and 28 C.F.R. Part 36.

 

    	3

    	 

    

 

"License" has the meaning set forth in Subsection
2.1.

 

"Liquidated Damages" has the meaning set forth
in Subsections 6.4.4 and 14.4.

 

"Management Company" has the meaning set forth
in Subsection 7.1.

 

"Manual" means all written
compilations of the Standards. The Manual may take the form of one or more of the following: one or more looseleaf or bound volumes;
bulletins; notices; videos; CD-ROMS and/or other electronic media; online postings; e-mail and/or electronic communications; facsimiles;
or any other medium capable of conveying the Manual's contents.

 

"Marks" means the Brand
and all other service marks, copyrights, trademarks, trade dress, logos, insignia, emblems, symbols and designs (whether registered
or unregistered), slogans, distinguishing characteristics, and trade names used in the System.

 

"Monthly Fees" means,
collectively, the Monthly Program Fee and the Monthly Royalty Fee, each of which is set forth in the Addendum.

 

"Monthly Program Fee"
means the fee we require from you in Subsection 8.1, which is set forth in the Addendum.

 

"Monthly Royalty Fee"
means the fee we require from you in Subsection 8.1, which is set forth in the Addendum.

 

"Network" means the hotels,
inns, conference centers, timeshare properties and other operations that Hilton Worldwide and its subsidiaries own, license, lease,
operate or manage now or in the future.

 

"Network Hotel" means
any hotel, inn, conference center, timeshare property or other similar facility within the Network.

 

"Opening Date" means the
day on which we first authorize the opening of the facilities, Guest Rooms or services of the Hotel to the general public
under the Brand.

 

"Operational Information"
means all information concerning the Monthly Fees, other revenues generated at the Hotel, room occupancy rates, reservation data
and other financial and non-financial information we require.

 

"Other Business(es)" means
any business activity we or the Entities engage in, other than the licensing of the Hotel.

 

"Other Hotels" means any
hotel, inn, lodging facility, conference center or other similar business, other than a System Hotel or a Network Hotel.

 

"Permitted Transfer" means
any Transfer by you or your Equity Owners as specified in Section 13.2 of this Agreement.

 

"Person(s)" means a natural person or entity.

 

"Personal Information"
means any information that: (i) can be used (alone or when used in combination with other information within your control) to identify,
locate or contact an individual; or (ii) pertains in any way to an identified or identifiable individual. Personal Information
can be in any media or format, including computerized or electronic records as well as paper-based files.

 

    	4

    	 

    

 

"PIP" means product improvement plan.

 

"PIP Fee" means the fee we charge for creating
a PIP as specified in Section 8.3.

 

"Plans" means your plans, layouts, specifications,
and drawings for the Hotel that use and incorporate the Standards.

 

"Principal Mark" is the Mark identified as
the Principal Mark in the Addendum.

 

"Privacy Laws" means any international, national,
federal, provincial, state, or local law, code, rule or regulation that regulates the processing of Personal Information in any
way, including data protection laws, laws regulating marketing communications and/or electronic communications, information security
regulations and security breach notification rules.

 

"Proprietary Information"
means all information or materials concerning the methods, techniques, plans, specifications, procedures, data, systems and
knowledge of and experience in the development, operation, marketing and licensing of the System, including the Standards and the
Manuals, whether developed by us, you, or a third party.

 

"Publicly Traded Equity Interest"
means any Equity Interest that is traded on any securities exchange or is quoted in any publication or electronic reporting
service maintained by the National Association of Securities Dealers, Inc., or any of its successors or (ii) any Equity Interests
sold in any offering under the Securities Act of 1933, as amended, so long as such Equity Interests are beneficially held by no
lesi than one hundred (100) unrelated persons or entities by the end of 2014 and thereafter.

 

"Quality Assurance Re-Evaluation Fee" has the
meaning set forth in Subsection 4.5.

 

"Renovation Commencement Date" means the date
set out in the Addendum, if applicable, by which you must commence Renovation Work.

 

"Renovation Work" means
the renovation and/or construction work, including purchasing and/or leasing and installation of all fixtures, equipment, furnishings,
furniture, signs, computer terminals and related equipment, supplies and other items that would be required of a new System Hotel
under the Manual, and any other equipment, furnishings and supplies that we may require for you to operate the Hotel as set out
in any PIP applicable to the Hotel.

 

"Renovation Work Completion Date"
means the date set out in the Addendum, if applicable, by which you must complete Renovation Work.

 

"Reports" mean daily,
monthly, quarterly and annual operating statements, profit and loss statements, balance sheets, and other financial and non-financial
reports we require.

 

"Reservation Service" means
the reservation service we designate in the Standards for use by System Hotels.

 

"Room Addition Fee" means
a sum equal to the then-current Room Addition Fee charged for new System Hotels multiplied by the number of Additional Guest Rooms
you wish to add to the Hotel in accordance with Subsection 6.6.3.

 

    	5

    	 

    

 

"Sanctioned Person" means
any person or entity (including financial institutions) who is, or is owned or controlled by, or acting on behalf of any of the
foregoing: (a) the Government of any country subject to comprehensive U.S. sanctions in force and which currently include the Government
of Cuba, Iran, North Korea, Sudan, and Syria ("Sanctioned Countries"); (b) located in, organized under the laws
of or ordinarily resident in Sanctioned Countries; (c) identified by any government or legal authority under applicable Trade Restrictions
as a person with whom dealings and transactions by Franchisee and/or its Affiliates are prohibited or restricted, including but
not limited to persons designated under United Nations Security Council Resolutions, the U.S. Department of the Treasury's Office
of Foreign Assets Control ("OFAC") List of Specially Designated Nationals and Other Blocked Persons; the U.S. Department
of State's lists of persons subject to non-proliferation sanctions; the European Union Financial Sanctions List; persons and entities
subject to Special Measures regulations under Section 311 of the USA PATRIOT Act and the Bank Secrecy Act.

 

"Securities" means any
public offering, private placement or other sale of securities in the Franchisee, the Hotel or the Hotel Site.

 

"Site" means domain names,
the World Wide Web, the Internet, computer network/distribution systems, or other electronic communications sites.

 

"Standards" means all
standards, specifications, requirements, criteria, and policies that have been and are in the future developed and compiled by
us for use by you in connection with the design, construction, renovation, refurbishment, appearance, equipping, furnishing, supplying,
opening, operating, maintaining, marketing, services, service levels, quality, and quality assurance of System Hotels, including
the Hotel, and for hotel advertising and accounting, whether contained in the Manual or set out in this Agreement or other written
communication.

 

"System" means the elements,
including know-how, that we designate to distinguish hotels operating worldwide under the Brand (as may in certain jurisdictions
be preceded or followed by a supplementary identifier such as "by Hilton") that provide to the consuming public a similar,
distinctive, high-quality hotel service. The System currently includes: the Brand, the Marks, the Trade Name, and the Standards;
access to a reservation service; advertising, publicity and other marketing programs and materials; training programs and materials;
and programs for our inspection of the Hotel and consulting with you.

 

"System Hotels" means hotels operating under
the System using the Brand name.

 

"Term" has the meaning set forth in Section
3.0.

 

"Trade Name" means the name
of the Hotel set forth in the Addendum.

 

"Trade Restrictions" means
trade, economic or investment sanctions, export controls, anti-terrorism, non-proliferation, anti-money laundering and similar
restrictions in force pursuant to laws, rules and regulations imposed under Laws to which the Parties are subject.

 

"Transfer" means in all
its forms, any sale, lease, assignment, spin-off, transfer, or other conveyance of a direct or indirect legal or beneficial interest.

 

"Transferee" means the proposed new franchisee
resulting from a Transfer.

 

"Your Agreements" means
any other agreement between you and us or any of the Entities related to this Agreement, the Hotel and/or the Hotel Site.

 

2.0         GRANT
OF LICENSE

 

2.1           Non-Exclusive
License. We grant to you and you accept a limited, non-exclusive License to use the Marks and the System during the Term at,
and in connection with, the operation of the Hotel in accordance with the terms of this Agreement.

 

    	6

    	 

    

 

2,2          Reserved
Rights.

 

2.2.1 This
Agreement does not limit our right, or the right of the Entities, to own, license or operate any Other Business of any nature,
whether in the lodging or hospitality industry or not, and whether under the Brand, a Competing Brand, or otherwise. We and the
Entities have the right to engage in any Other Businesses, even if they compete with the Hotel, the System, or the Brand, and whether
we or the Entities start those businesses, or purchase, merge with, acquire, are acquired by, come under common ownership with,
or associate with, such Other Businesses.

 

2.2.2 We may also

 

2.2.2.1 add,
alter, delete or otherwise modify elements of the System;

 

2.2.2.2 use
or license to others all or part of the System;

 

2.2.2.3 use
the facilities, programs, services and/or personnel used in connection with the System in Other Businesses; and

 

2.2.2.4 use
the System, the Brand and the Marks in the Other Businesses.

 

2.2.3 You acknowledge and agree that
you have no rights to, and will not make any claims or demands for, damages or other relief arising from or related to any of the
foregoing activities, and you acknowledge and agree that such activities will not give rise to any liability on our part, including
liability for claims for unfair competition, breach of contract, breach of any applicable implied covenant of good faith and fair
dealing, or divided loyalty.

 

3.0         TERM

 

The Term shall begin on the Effective Date
and will end, without further notice, on the Expiration Date set forth in the Addendum, unless terminated earlier under the terms
of this Agreement. You acknowledge and agree that this Agreement is non-renewable and that this Agreement confers on you absolutely
no rights of license renewal or extension whatsoever following the Expiration Date.

 

4.0         OUR
RESPONSIBILITIES

 

We have the following responsibilities to you under this Agreement,
We reserve the right to fulfill some or all of these responsibilities through one of the Entities or through unrelated third parties,
in our sole business judgment. We may require you to make payment for any resulting services or products directly to the provider.

 

4.1          Training.
We may specify certain required and optional training programs and provide

these programs at various locations. We
may charge you for required training services and materials and for optional training services and materials we provide to you.
You are responsible for all travel, lodging and other expenses you or your employees incur in attending these programs.

 

4.2          Reservation
Service. We will furnish you with the Reservation Service. The Reservation Service will be furnished to you on the same basis
as it is furnished to other System Hotels, subject to the provisions of Subsection 14.3 below.

 

4.3          Consultation.
We may offer consultation services and advice in areas such as operations, facilities, and marketing. We may establish fees
in advance, or on a project-by-project basis, for any consultation service or advice you request.

 

4.4          Marketing.

 

4.4.1 We will
publish (either in hard copy or electronic form) and make available to the traveling public a directory that includes System Hotels.
We will include the Hotel in advertising of System Hotels and in international, national and regional marketing programs in accordance
with our general practice for System Hotels.

 

    	7

    	 

    

 

4.4.2 We will
use your Monthly Program Fee to pay for various programs to benefit the System, including:

 

4.4.2.1 advertising,
promotion, publicity, public relations, market research, and other marketing programs;

 

4.4.2.2 developing
and maintaining directories of and Internet sites for System Hotels;

 

4.4.2.3 developing
and maintaining the Reservation Service systems and support; and

 

4.4.2,4 administrative
costs and overhead related to the administration or direction of these projects and programs.

 

4.4.3 We will have the sole right to
determine how and when we spend these funds, including sole control over the creative concepts, materials and media used in the
programs, the placement and allocation of advertising, and the selection of promotional programs.

 

4.4.4 We may enter into arrangements
for development, marketing, operations, administrative, technical and support functions, facilities, programs, services and/or
personnel with any other entity, including any of the Entities or a third party.

 

4.4.5 You acknowledge
that Monthly Program Fees are intended for the benefit of the System and will not simply be used to promote or benefit any one
System Hotel or market. We will have no obligation in administering any activities paid for with the Monthly Program Fee to make
expenditures for you that are equivalent or proportionate to your payments or to ensure that the Hotel benefits directly or proportionately
from such expenditures.

 

4.4.6 We may create
any programs and allocate monies derived from Monthly Program Fees to any regions or localities, as we consider appropriate in
our sole business judgment. The aggregate of Monthly Program Fees paid to us by System Hotels does not constitute a trust or "advertising
fund" and we are not a fiduciary with respect to the Monthly Program Fees paid by you and other System Hotels.

 

4.4.7 We are
not obligated to expend funds in excess of the amounts received from System Hotels. If any interest is earned on unused Monthly
Program Fees, we will use the interest before using the principal. The Monthly Program Fee does not cover your costs of participating
in any optional marketing programs and promotions offered by us in which you voluntarily choose to participate. These Monthly Program
Fees do not cover the cost of operating the Hotel in accordance with the Standards.

 

4.5         Inspections/Compliance
Assistance. We will administer a quality assurance program for the System that may include conducting pre-opening and periodic
inspections of the Hotel and guest satisfaction surveys and audits to ensure compliance with the Standards. You will permit us
to inspect the Hotel without prior notice to you to determine if the Hotel is in compliance with the Standards. You will cooperate
with our representatives during these inspections. You will then take all steps necessary to correct any deficiencies within the
times we establish. You may be charged a Quality Assurance Re-Evaluation Fee as set forth in the Standards. You will provide complimentary
accommodations for the quality assurance auditor each time we conduct a regular inspection or a special on-site quality assurance
re-evaluation after the Hotel has failed a regular quality assurance evaluation or to verify that deficiencies noted in a quality
assurance evaluation report or PIP have been corrected or completed by the required dates.

 

4.6         Manual.
We will issue to you or make available in electronic form the Manual and any revisions and updates we may make to the Manual
during the Term. You agree to ensure that your copy of the Manual is, at all times, current and up to date. If there is any dispute
as to your compliance with the provisions of the Manual, the master copy of the Manual maintained at our principal office will
control.

 

    	8

    	 

    

 

4.7         Equipment
and Supplies. We will make available to you for use in the Hotel various purchase, lease, or other arrangements for exterior
signs, operating equipment, operating supplies, and furnishings, which we make available to other System Hotels.

 

5.0         YOUR
RESPONSIBILITIES

 

5.1         Operational
and Other Requirements. You must:

 

5.1.1 after the
Opening Date, operate the Hotel twenty-four (24) hours a day;

 

5.1.2 operate
the Hotel using the System, in compliance with this Agreement and the Standards, and in such a manner to provide courteous, uniform,
respectable and high quality lodging and other services and conveniences to the public. You acknowledge that, although we provide
the Standards, you have exclusive day-to-day control of the business and operation of the Hotel and we do not in any way possess
or exercise such control;

 

5A.3 comply
with the Standards, including our specifications for all supplies, products and services. We may require you to purchase a particular
brand of product or service to maintain the common identity and reputation of the Brand, and you will comply with such requirements.
Unless we specify otherwise, you may purchase products from any authorized .source of distribution; however, we reserve
the right, in our business judgment, to enter into exclusive purchasing arrangements for particular products or services and to
require that you purchase products or services from approved suppliers or distributors;

 

5.1.4 install,
display, and maintain signage displaying or containing the Brand name and other distinguishing characteristics in accordance with
Standards we establish for System Hotels;

 

5.1.5 comply
with Standards for the training of persons involved in the operation of the Hotel, including completion by the General Manager
and other key personnel of the Hotel of a training program for operation of the Hotel under the System, at a site we designate.
You will pay us all fees and charges, if any, we require for your personnel to attend these training programs. You are responsible
for all travel, lodging and other expenses you or your employees incur in attending these programs;

 

5.1.6 purchase
and maintain property management, revenue management, in-room entertainment, telecommunications, high-speed Internet access,
and other computer and technology systems that we designate for the System or any portion of the System based on our
assessment of the long-term best interests of System Hotels, considering the interest of the System as a whole;

 

5.1.7 advertise
and promote the Hotel and related facilities and services on a local and regional basis in a first-class, dignified manner, using
our identity and graphics Standards for all System Hotels, at your cost and expense. You must submit to us for our approval samples
of all advertising and promotional materials that we have not previously approved (including any materials in digital, electronic
or computerized form or in any form of media that exists now or is developed in the future) before you produce or distribute them.
You will not begin using the materials until we approve them. You must immediately discontinue your use of any advertising or promotional
material we disapprove, even if we previously approved the materials;

 

5.1.8 participate
in and pay all charges in connection with all required System guest complaint resolution programs, which programs may include chargebacks
to the Hotel for guest refunds or credits and all required System quality assurance programs, such as guest comment cards, customer
surveys and mystery shopper programs. You must maintain minimum performance Standards and scores for quality assurance programs
we establish;

 

    	9

    	 

    

 

5.1.9 honor
all nationally recognized credit cards and credit vouchers issued for general credit purposes that we require and enter into all
necessary credit card and voucher agreements with the issuers of such cards or vouchers;

 

6.1.10 participate
in and use the Reservation Service, including any additions, enhancements, supplements or variants we develop or adopt, and honor
and give first priority on available rooms to all confirmed reservations referred to the Hotel through the Reservation Service.
The only reservation service or system you may use for outgoing reservations referred by or from the Hotel to other Network Hotels
will be the Reservation Service or other reservation services we designate;

 

5.1.11 comply
with Laws and, on request, give evidence to us of compliance;

 

5.1.12 participate in, and promptly pay all fees, commissions
and charges associated with, all travel agent commission programs and third-party reservation and distribution services (such
as airline reservation systems), all as required by the Standards and in accordance with the terms of these programs, all of which
may be modified;

 

5.1.13 not
engage, directly or indirectly, in any cross-marketing or cross-promotion of the Hotel with any Other Hotel or related business,
without our prior written consent. You agree to refer guests and customers, wherever reasonably possible, only to System Hotels
or Network Hotels. We may require you to participate in programs designed to refer prospective customers to Other Hotels. You must
display all material, including brochures and promotional material we provide for System Hotels and Network Hotels, and allow advertising
and promotion only of System Hotels and Network Hotels on the Hotel Site, unless we specifically direct you to include advertising
or promotion of Other Hotels;

 

5.1.14 treat
as confidential the Standards, the Manual and all other Proprietary Information. You acknowledge and agree that you do not acquire
any interest in the Proprietary Information other than the right to utilize the same in the development and operation of the Hotel
under the terms of this Agreement. You agree that you will not use the Proprietary Information in any business or for any purpose
other than in the development and operation of the Hotel under the System and will maintain the absolute confidentiality of the
Proprietary Information during and after the Term. You will not make unauthorized copies of any portion of the Proprietary Information;
and will adopt and implement all procedures we may periodically establish in our business judgment to prevent unauthorized use
or disclosure of the Proprietary Information, including restrictions on disclosure to employees and the use of non-disclosure and
non-competition clauses in agreements with employees, agents and independent contractors who have access to the Proprietary information;

 

5.1.15 not
become a Competitor, or permit your Affiliate to become a Competitor, in the upscale hotel market segment, or any substantially
equivalent market segment, as determined by Smith Travel Research ("STR") (or, if STR is no longer in existence,
STR's successor or other such industry resource that is as equally as reputable as STR);

 

5.1.16 own
fee simple title (or long-term ground leasehold interest for a term equal to the Term) to the real property and improvements that
comprise the Hotel and the Hotel Site, or alternatively, at our request, cause the fee simple owner, or other third party acceptable
to us, to provide its guaranty covering all of your obligations under this Agreement in form and substance acceptable to us;

 

5.1.17 maintain
legal possession and control of the Hotel and Hotel Site for the Term and promptly deliver to us a copy of any notice of default
you receive from any mortgagee, trustee under any deed of trust, or ground lessor for the Hotel, and on our request, provide any
additional information we may request related to any alleged default;

 

5.1.18 not
directly or indirectly conduct, or permit by lease, concession arrangement or otherwise, gaming or casino operations in or connected
to the Hotel or on the Hotel Site, or otherwise engage in any activity which, in our business judgment, is likely to adversely
reflect upon or affect in any manner, any gaming licenses or permits held by the Entities or the then-current stature of any of
the Entities with any gaming commission, board, or similar governmental or regulatory agency, or the reputation or business of
any of the Entities;

 

    	10

    	 

    

 

5.1.19 not directly or indirectly
conduct or permit the marketing or sale of timeshares, vacation ownership, fractional ownership, condominiums or like schemes at,
or adjacent to, the Hotel. This restriction will not prohibit you from directly or indirectly conducting timeshare, vacation ownership,
fractional ownership, or condominium sales or marketing at and for any property located adjacent to the Hotel that is owned or
leased by you so long as you do not use any of the Marks in such sales or marketing efforts and you do not yse the Hotel or its
facilities in such sales and marketing efforts or in the business operations of the adjacent property;

 

5.1.20 participate
in and pay all charges related to our marketing programs (in addition to programs covered by the Monthly Program Fee), all guest
frequency programs we require, and any optional programs that you opt into;

 

5.1.21 honor
the terms of any discount or promotional programs (including any frequent guest program) that we offer to the public on your behalf,
any room rate quoted to any guest at the time the guest makes an advance reservation, and any award certificates issued to Hotel
guests participating in these programs;

 

5.1.22 after
the Effective Date, maintain, at your expense, insurance of the types and in the minimum amounts we specify in the Standards. All
such insurance must be with insurers having the minimum ratings we specify, name as additional insureds the parties we specify
in the Standards, and carry the endorsements and notice requirements we specify in the Standards. If you fail or neglect to obtain
or maintain the insurance or policy limits required by this Agreement or the Standards, we have the option, but not the obligation,
to obtain and maintain such insurance without notice to you, and you will immediately on our demand pay us the premiums and cost
we incur in obtaining this insurance;

 

5.1.23 not share
the business operations and Hotel facilities with any Other Hotel or other business;

 

5.1.24 not
engage in any tenant-in-common syndication or Transfer of any tenant-incommon interest in the Hotel or the Hotel Site; and

 

5.1.25
promptly provide to us all information we reasonably request about you and your Affiliates (including your respective beneficial
owners, officers, directors, shareholders, partners or members) and/or the Hotel, title to the property on which the Hotel is constructed
and any other property used by the Hotel. You will not be required to provide us information
about Publicly Traded Equity Owners with a non-Controlling Equity Interest except as we deem necessary in our legal or business
judgment to ensure compliance by us or our Affiliates with applicable Laws.

 

6.0         HOTEL
WORK

 

6.1         Necessary
Consents.

 

6A.1 You must
obtain our prior written consent before retaining or engaging any architect, interior designer, general contractor and major subcontractors
for the Hotel. We will not unreasonably withhold such consent.

 

6.1.2 Plans
and Designs must be submitted to us in accordance with the schedule specified in the Addendum or any PIP. Before we approve your
Plans, your architect or other certified professional must certify to us that the Plans comply with all Laws related to accessibility/accommodations/facilities
for those with disabilities.

 

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6.1.3 You shall not commence any
Hotel Work unless and until we have issued our written consent in respect of the Plans and Designs, which consent will not be unreasonably
withheld.

 

6.1.4 Once we have provided our
consent to the Plans and Designs, no change may be made to the Plans or Designs without our prior written consent. By consenting
to the Plans and Designs or any changes or modifications to the Plans and Designs, we do not warrant the depth of our analysis
or assume any responsibility or liability for the suitability of the Plans and Designs or the resulting Hotel Work,

 

6.1.5 You are
solely responsible for ensuring that the Plans and Designs (including Plans and Designs for Hotel Work) comply with our then-current
Standards, the Manual, and all Laws.

 

6.2         Initial
Hotel Work. You will perform or cause the Hotel Work to be performed in accordance with this Agreement, the approved Plans
and Designs, the Manual and, for Renovation Work, the PIP. You will bear the entire cost of the Hotel Work, including the cost
of the Plans and Designs, professional fees, licenses, permits, equipment, furniture, furnishings and supplies. You are solely
responsible for obtaining all necessary licenses, permits and zoning variances required for the Hotel Work.

 

6.3         Commencement
and Completion of the Hotel Work.

 

6.3.1 You will
commence the Hotel Work on or before the Construction Commencement Date or Renovation Commencement Date specified in the Addendum.
You may request an extension by submitting a written request for our approval before the applicable deadline, describing the status
of the project and the reason for the requested extension, and paying our then-current extension fee. We may condition our approval
on an update to the Plans and Designs. Once commenced, the Hotel Work will continue uninterrupted except to the extent continuation
is prevented by events of Force Majeure. You must give written notice to us specifying the nature and duration of any event of
Force Majeure promptly after becoming aware of the event, and specifying that you have used, and continue to use, reasonable endeavours
to mitigate the effects of such event until such event ceases to exist. On verification of the event of Force Majeure, we will
approve an extension of the Construction Commencement Date or Renovation Work Completion Date for up to eighteen (18) months. You
must promptly provide to us evidence that the Construction Work has commenced if we request it.

 

6.3.2 The Hotel Work must be completed
and the Hotel must be furnished, equipped, and otherwise made ready to open in accordance with the terms of this Agreement no later
than the Construction Work Completion Date or Renovation Work Completion Date specified in the Addendum. You may request an extension
by submitting a written request for our approval before the applicable deadline, describing the status of the project and the reason
for the requested extension, and paying our then-current extension fee.

 

6.3.3 On completion
of the Hotel Work and, as a condition to our authorization to open the Hotel, your architect, general contractor or other certified
professional must provide us with a certificate stating that the as-built premises comply with all Laws relating to accessibility/accommodations/facilities
for those with disabilities.

 

6.4          Opening
the Hotel Under This Agreement.

 

6.4.1 You will
open the Hotel on the Opening Date. You will not open the Hotel unless and until you receive our written consent to do so pursuant
to Subsection 6.4.2 or 6.4.3.

 

6.4.2 You will
give us at least fifteen (15) days advance notice that you have complied with all the terms and conditions of this Agreement and
the Hotel is ready to open. We will use reasonable efforts within fifteen (15) days after we receive your notice to visit the Hotel
and to conduct other investigations as we deem necessary to determine whether to authorize the opening of the Hotel, but we will
not be liable for delays or loss occasioned by our inability to complete our investigation and to make this determination within
the fifteen (15) day period. If you fail to pass our initial opening site visit, we may, in our sole business judgment,
charge you reasonable fees associated with any additional visits.

 

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6.4.3 We shall
be entitled to withhold our consent to the opening of the Hotel until:

 

6.4.3.1 you have complied with all
the terms and conditions in this Agreement;

 

6.4.3.2 your staff has received
adequate training and instruction in the manner we require;

 

6.4.3.3 you have received authorization
to open the Hotel from the relevant governmental authority for the jurisdiction in which the Hotel is located, if applicable; and

 

6.4.3.4 all
fees and charges you owe to us or the Entities have been paid.

 

6.4.4 Opening
the Hotel before the Opening Date is a material breach of this Agreement.

 

6.4.4.1 You will pay us Liquidated
Damages in the amount of Five Thousand Dollars ($5,000) per day if you open the Hotel before the Opening Date to compensate us
for the damage caused by such breach. You must also reimburse us for all of our costs and expenses, including legal fees, incurred
in enforcing our rights under this Agreement.

 

6.4.4.2 These Liquidated Damages
for damage to our Marks shall not limit or exclude any other remedies we may have at law or in equity. You acknowledge and agree
that that the Liquidated Damages payable under this Subsection represent a reasonable estimate of the minimum just and fair compensation
for the damages we will suffer as the result of the opening of the Hotel before the Opening Date in material breach of this Agreement.

 

6.5                          Performance
of Agreement. You must satisfy all of the terms and conditions of this Agreement, and equip, supply, staff and otherwise make
the Hotel ready to open under our Standards. As a result of your efforts to comply with the terms and conditions of this Agreement,
you will incur significant expense and expend substantial time and effort. You acknowledge and agree that we will have no liability
or obligation to you for any losses, obligations, liabilities or expenses you incur if we do not authorize the Hotel to open or
if we terminate this Agreement because you have not complied with the terms and conditions of this Agreement.

 

6.6                          Hotel
Refurbishment and Room Addition.

 

6.6.1 We may
periodically require you to modernize, rehabilitate and/or upgrade the Hotel's fixtures, equipment, furnishings, furniture, signs,
computer hardware and software and related equipment, supplies and other items to meet the then-current Standards. You will make
these changes at your sole cost and expense and in the time frame we require.

 

6.6.2 You may
not make any significant changes (including major changes in structure, design or decor) in the Hotel. Minor redecoration and minor
structural changes that comply with our Standards will not be considered significant.

 

6.6.3 You may
not make any change in the number of approved Guest Rooms in the Addendum. if you wish to add additional Guest Rooms to the Hotel
after the Opening Date, you must submit an application to obtain our consent. If we consent to the addition of Guest Rooms at the
Hotel, you must pay us our then-current Room Addition Fee. As a condition to our granting approval of your application, we may
require you to modernize, rehabilitate or upgrade the Hotel in accordance with Subsection 6.6.1 of this Agreement, and to pay us
our then-current PIP Fee to prepare a PIP to determine the renovation requirements for the Hotel. We may also require you to execute
an amendment to this Agreement covering the terms and conditions of our consent to the addition of Guest Rooms.

 

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7.0         STAFF
AND MANAGEMENT OF THE HOTEL

 

7.1 You are
solely responsible for the management of the Hotel's business. You will provide qualified and experienced management (a "Management
Company") and an individual to manage the Hotel (a "General Manager"), each approved by us in writing.
We have the right to communicate directly with the Management Company and managers at the Hotel. We may rely on the communications
of such managers or Management Company as being on your behalf. Any Management Company and/or General Manager must have the authority
to perform all of your obligations under this Agreement. The engagement of a Management Company does not reduce your obligations
under this Agreement. In the case of any conflict between this Agreement and any agreement with the Management Company or General
Manager, this Agreement prevails.

 

7.2 You represent
and agree that you have not, and will not, enter into any lease, management agreement or other similar arrangement for the operation
of the Hotel or any part of the Hotel without our prior written consent. To be approved by us as the operator of the Hotel, you,
any proposed Management Company and any proposed General Manager must be qualified to manage the Hotel. We may refuse to approve
you, any proposed Management Company or any proposed General Manager who is a Competitor or which, in our business judgment, is
inexperienced or unqualified in managerial skills or operating capability or is unable or unwilling to adhere fully to your obligations
under this Agreement.

 

7.3 If the
Management Company becomes a Competitor or the Management Company and/or the General Manager resigns or is terminated by you or
otherwise becomes unsuitable in our sole business judgment to manage the Hotel during the Term, you will have ninety (90) days
to retain a qualified substitute Management Company and/or General Manager acceptable to us.

 

8.0         PAYMENT
OF FEES

 

8.1          Monthly
Fees. Beginning on the Effective Date, you will pay to us for each month (or part of a month, including the final month
you operate under this Agreement) the Monthly Fees, each of which is set forth in the Addendum.

 

8.2          Calculation
and Payment of Fees.

 

8.2.1 The Monthly
Fees will be calculated in accordance with the accounting methods of the then-current Uniform System of Accounts for the Lodging
Industry, or such other accounting methods specified by us in the Manual.

 

8.2.2 The Monthly
Fees will be paid to us at the place and in the manner we designate on or before the fifteenth (15th) day of each month and will
be accompanied by our standard schedule setting forth in reasonable detail the computation of the Monthly Fees for such month.

 

8.2.3 We may require
you to transmit the Monthly Fees and all other payments required under this Agreement by wire transfer or other form of electronic
funds transfer and to provide the standard schedule in electronic form. You must bear all costs of wire transfer or other form
of electronic funds transfer or other electronic payment and reporting.

 

8.2.4 In the event
of fire or other insured casualty that results in a reduction of Gross Rooms Revenue, you will determine and pay us, from the proceeds
of any business interruption or other insurance applicable to loss of revenues, an amount equal to the forecasted Monthly Fees,
based on the Gross Rooms Revenue amounts agreed on between you and your insurance company that would have been paid to us in the
absence of such casualty.

 

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8.3 Other Fees.
You will timely pay all amounts due us or any of the Entities for any invoices or for goods or services purchased by or provided
to you or paid by us or any of the Entities on your behalf, including pre-opening sales and operations training or extension fees
as specified on the Addendum.

 

8.4 Taxes. If
a Gross Receipts Tax is imposed on us or the Entities based on payments made by you related to this Agreement, then you must reimburse
us or the Entity for such Gross Receipts Tax to ensure that the amount we or the Entity retains, after paying the Gross Receipts
Tax, equals the net amount of the payments you are required to pay us or the Entity had such Gross Receipts Tax not been imposed.
You are not required to pay income taxes payable by us or any Entity as a result of our net income relating to fees collected under
this Agreement.

 

8.5 Application
of Fees. We may apply any amounts received from you to any amounts due under this Agreement.

 

9.0         PROPRIETARY
RIGHTS

 

9.1          Our
Proprietary Rights.

 

9.1.1 You
will not contest, either directly or indirectly during or after the Term:

 

9.1.1.1 our
(and/or any Entities') ownership of, rights to and interest in the System, Brand, Marks and any of their elements or components,
including present and future distinguishing characteristics and agree that neither you nor any design or construction professional
engaged by you may use our Standards, our Manual or your approved Plans and Designs for any hotel or lodging project other than
the Hotel;

 

9.1.1.2 our
sole right to grant licenses to use all or any elements or components of the System;

 

9.1.1.3 that
we (and/or the Entities) are the owner of (or the licensee of, with the right to sub-license) all right, title and interest in
and to the Brand and the Marks used in any form and in any design, alone or in any combination, together with the goodwill they
symbolize; or

 

9,1.1.4 the
validity or ownership of the Marks.

 

9.1.2 You acknowledge
that these Marks have acquired a secondary meaning which indicates that the Hotel, Brand and System are operated by or with our
approval. All improvements and additions to, or associated with, the System, all Marks, and all goodwill arising from your use
of the System and the Marks, will inure to our benefit and become our property (or that of the applicable Entities), even if you
develop them.

 

9.1.3 You will
not apply for or obtain any trademark or service mark registration of any of the Marks or any confusingly similar marks in your
name or on behalf of or for the benefit of anyone else. You acknowledge that you are not entitled to receive any payment or other
value from us or from any of the Entities for any goodwill associated with your use of the System or the Marks, or any elements
or components of the System.

 

9.2          Trade
Name, Use of the Marks.

 

9,2.1 Trade Name.

 

9.2.1.1 The
Hotel will be initially known by the Trade Name set forth in the Addendum. We may change the Trade Name, the Brand name and/or
any of the Marks (but not the Principal Mark), or the way in which any of them (including the Principal Mark) are depicted, at
any time at our sole option and at your expense. You may not change the Trade Name without our specific prior written consent.

 

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9.2.1.2 You
acknowledge and agree that you are not acquiring the right to use any service marks, copyrights, trademarks, trade dress, logos,
designs, insignia, emblems, symbols, slogans, distinguishing characteristics, trade names, domain names or other marks or characteristics
owned by us or licensed to us that we do not specifically designate to be used in the System.

 

9.3         Use of Trade Name and Marks. You
will operate under the Marks, using the Trade Name, at the Hotel. You will not adopt any other names or marks in operating the
Hotel without our approval. You will not, without our prior written consent, use any of the Marks, or the word "Hilton,"
or other Network trademarks, trade names or service marks, or any similar words or acronyms, in:

 

9.3.1 your
corporate, partnership, business or trade name; 9.3.2 any Internet-related name (including a domain name);

 

9.3.3 or any business
operated separately from the Hotel, including the name or identity of developments adjacent to or associated with the Hotel.

 

9.4          Trademark
Disputes.

 

9.4.1 You will
immediately notify us of any infringement or dilution of or challenge to your use of any of the Marks and will not, absent a court
order or our prior written consent, communicate with any other person regarding any such infringement, dilution, challenge or claim.
We will take the action we deem appropriate with respect to such challenges and claims and have the sole right to handle disputes
concerning use of all or any part of the Marks or the System. You will fully cooperate with us and any applicable Entity in these
matters. We will reimburse you for expenses incurred by you as the direct result of activities undertaken by you at our prior written
request and specifically relating to the trademark dispute at issue. We will not reimburse you for any other expenses incurred
by you for cooperating with us or the Entities.

 

9.4.2 You
appoint us as your exclusive attorney-in-fact, to prosecute, defend and/or settle all disputes of this type at our sole option.
You will sign any documents we or the applicable Entity believe are necessary to prosecute, defend or settle any dispute or obtain
protection for the Marks and the System and will assign to us any claims you may have related to these matters. Our decisions as
to the prosecution, defense or settlement of the dispute will be final. All recoveries made as a result of disputes regarding use
of all or part of the System or the Marks will be for our account.

 

9.5          Web
Sites.

 

9.5.1 You may
not register, own, maintain or use any Sites that relate to the Network or the Hotel or that include the Marks, The only domain
names, Sites, or Site contractors that you may use relating to the Hotel or this Agreement are those we assign or otherwise approve
in writing. You acknowledge that you may not, without a legal license or other legal right, post on your Sites any material in
which any third party has any direct or indirect ownership interest. You must incorporate on your Sites any information we require
in the manner we deem necessary to protect our Marks.

 

9.5.2 Any use
of the Marks on any Site must conform to our requirements, including the identity and graphics Standards for all System hotels.
Given the changing nature of this technology, we have the right to withhold our approval, and to withdraw any prior approval, and
to modify our requirements.

 

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9.6          Covenant.

 

9.6.1 You agree,
as a direct covenant with us and the Entities, that you will comply with all of the provisions of this Agreement related to the
manner, terms and conditions of the use of the Marks and the termination of any right on your part to use any of the Marks. Any
non-compliance by you with this covenant or the terms of this Agreement related to the Marks, or any unauthorized or improper use
of the System or the Marks, will cause irreparable damage to us and/or to the Entities and is a material breach of this Agreement.

 

9.6.2 If you engage
in such non-compliance or unauthorized and/or improper use of the System or the Marks during or after the Term, we and any of the
applicable Entities, along with the successors and assigns of each, will be entitled to both temporary and permanent injunctive
relief against you from any court of competent jurisdiction, in addition to all other remedies we or the Entities may have at law.
You consent to the entry of such temporary and permanent injunctions. You must pay all costs and expenses, including reasonable
attorneys' fees, expert fees, costs and other expenses of litigation that we and/or the Entities may incur in connection with your
non-compliance with this covenant.

 

10.0 REPORTS, RECORDS, AUDITS, AND PRIVACY 10.1 Reports.

 

10.1.1 At our
request, you will prepare and deliver to us the Reports containing the Operational Information (and any other information we reasonable
require) in the form, manner and time frame we require. At a minimum, by the fifteenth (15th) day of each month, you will submit
to us the Operational Information for the previous month and reflecting the computation of the amounts then due under Section 8,
in the form, manner and time frame we require.

 

10.1.2 The Reports
will be certified as accurate in the manner we require. You will permit us to inspect your books and records at all reasonable
times.

 

10.2 Maintenance of Records. You
will prepare, on a current basis, (and preserve for no less than the greater of four (4) years or the time period we stated in
our record retention requirements), complete and accurate records concerning Gross Rooms Revenue and all financial, operating,
marketing and other aspects of the Hotel. You will maintain an accounting system that fully and accurately reflects all financial
aspects of the Hotel and its business. These records will include books of account, tax returns, governmental reports, register
tapes, daily reports, and complete quarterly and annual financial statements (including profit and loss statements, balance sheets
and cash flow statements) and will be prepared in the form, manner and time frame we require.

 

10.3 Audit.

 

10.3.1 We may
require you to have the Gross Rooms Revenue, fees or other monies due to us computed and certified as accurate by a certified public
accountant. During the Term and for two (2) years thereafter, we and our authorized agents have the right to verify Operational
Information required under this Agreement by requesting, receiving, inspecting and auditing, at all reasonable times, any and all
records referred to above wherever they may be located (or elsewhere if we request).

 

10.3.2 If any
inspection or audit reveals that you understated or underpaid any payment due to us, you will promptly pay to us the deficiency
plus interest from the date each payment was due until paid at the interest rate set forth in Section 17.15 of this Agreement.

 

10.3.3 If the
audit or inspection reveals that the underpayment is willful, or is for five percent (5%) or more of the total amount owed for
the period being inspected, you will also reimburse us for all inspection and audit costs, including reasonable travel, lodging,
meals, salaries and other expenses of the inspecting or auditing personnel. Our acceptance of your payment of any deficiency will
not waive any rights we may have as a result of your breach, including our right to terminate this Agreement. If the audit discloses
an overpayment, we will credit this overpayment against your future payments due under this Agreement, without interest, or, if
no future payments are due under this Agreement, we will promptly pay you the amount of the overpayment without interest.

 

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10.4       Ownership
of Information. All Information we obtain from you and all revenues we derive from such Information will be our property and
Proprietary Information that we may use for any reason, including making a financial performance representation in our franchise
disclosure documents. At your sole risk and responsibility, you may use Information that you acquire from third parties in connection
with operating the Hotel, such as Personal Information, at any time during or after the Term, to the extent that your use is permitted
by Law.

 

10.5       Privacy
and Data Protection. You will:

 

10.5.1 comply
with all applicable Privacy Laws;

 

10.5.2 comply
with all Standards that relate to Privacy Laws and the privacy and security of Personal Information;

 

10.5.3 refrain
from any action or inaction that could cause us or the Entities to breach any Privacy Laws;

 

10.5.4 do and
execute, or arrange to be done and executed, each act, document and thing we deem necessary in our business judgment to keep us
and the Entities in compliance with the Privacy Laws; and

 

10.5.5 immediately
report to us the theft or loss of Personal Information (other than the Personal Information of your own officers, directors, shareholders,
employees or service providers).

 

11.0      CONDEMNATION AND CASUALTY

 

11.1       Condemnation.
You must immediately inform us of any proposed taking of any portion of the Hotel by eminent domain. If, in our business judgment,
the taking is significant enough to render the continued operation of the Hotel in accordance with the Standards and guest expectations
impractical, then we may terminate this Agreement on written notice to you and you will not pay us Liquidated Damages. If such
taking, in our business judgment, does not require the termination of this Agreement, then you will make all necessary modifications
to make the Hotel conform to its condition, character and appearance immediately before such taking, according to Plans and Designs
approved by us. You will take all measures to ensure that the resumption of normal operations at the Hotel is not unreasonably
delayed.

 

11.2       Casualty.

 

11.2.1 You
must immediately inform us if the Hotel is damaged by fire or other casualty. If the damage or repair requires closing the Hotel,
you may choose to repair or rebuild the Hotel according to the Standards, provided you: begin reconstruction within six (6) months
after closing and reopen the Hotel for continuous business operations as soon as practicable (but in any event no later than eighteen
(18) months after the closing of the Hotel) and give us at least thirty (30) days notice of the projected date of reopening. If
you cannot begin or complete reconstruction within these time frames, you may request extension approval from us in writing, describing
the status of the project and the reason for the requested extension, which we will consider in accordance with our standard business
practice. Once the Hotel is closed, you will not promote the Hotel as a System Hotel or otherwise identify the Hotel using
any of the Marks without our prior written consent.

 

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11.2.2 You
and we each have the right to terminate this Agreement if you elect not to repair or rebuild the Hotel as set forth above in Subsection
11.2.1, provided the terminating party gives the other party sixty (60) days written notice. We will not require you to pay Liquidated
Damages unless you or one of your Affiliates own and/or operate a hotel at the Hotel Site under a lease, license or franchise from
a Competitor within three (3) years of the termination date.

 

11.3 No Extensions
of Term. Nothing in this Section 11 will extend the Term.

 

12.0 NOTICE OF INTENT TO MARKET

 

Except in the case
of a Transfer governed by Subsection 13.2.1 or 13.2.2 of this Agreement, if you or a Controlling Affiliate want to Transfer any
Equity Interest, you must give us written notice, concurrently with beginning your marketing efforts.

 

13.0 TRANSFERS

 

13.1        Our
Transfer.

 

13.1.1 We may
assign or Transfer this Agreement or any of our rights, duties, or assets under this Agreement, by operation of law or otherwise,
to any person or legal entity without your consent, provided that any such person or legal entity shall be required to assume all
of our obligations to permit you to operate the Hotel under the Brand after such assignment. Any of the Entities may transfer,
sell, dispose of, or otherwise convey, their ownership rights in us or any of our Affiliates, by operation of law or otherwise,
including by public offering, to any person or legal entity without your consent.

 

13.1.2 If we assign
this Agreement to a third party who expressly assumes our obligations under this Agreement, we will no longer have any performance
or other obligations to you under this Agreement and your right to use any programs, rights or services provided to you by us or
our Affiliates under this Agreement will terminate.

 

13.2        Your
Transfer. You understand and acknowledge that the rights and duties in this Agreement are personal to you and that we are entering
into this Agreement in reliance on your business skill, financial capacity, and the personal character of you, your officers, directors,
partners, members, shareholders or trustees. A Transfer by you of any Equity Interest, or this Agreement, or any of your rights
or obligations under this Agreement, or a Transfer by an Equity Owner is prohibited other than as expressly permitted herein.

 

13.2.1 Permitted
Transfers That Do Not Require Notice or Consent. The following Transfers are permitted without giving notice or obtaining our
consent if the Permitted Transfer does not result in a change in Control of the Franchisee,
the Hotel or the Hotel Site and you meet the requirements set forth below.

 

13.2.1.1 Privately
Held Equity Interests: Less than 25% Change/No Change of Control. An Equity Interest that is not publicly traded may be Transferred
if, immediately after the transaction, the transferee Equity Owner will own less than twenty-five percent (25%) of the Equity Interest.

 

13.2.1.2 Publicly
Traded Equity Interests. A Publicly Traded Equity interest may be Transferred.

 

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13.2.2 Permitted
Transfers That Require Notice and Consent. We will permit you or any Equity Owner named in the Addendum as of the Effective
Date (or any transferee Equity Owner we subsequently approve) to engage in the Permitted Transfers set forth below if any such
Permitted Transfer does not result in a change of Control of the Franchisee, the Hotel or the Hotel Site and: (a) the proposed
transferee is not a Sanctioned Person or a Competitor; (b) you give us at least sixty (60) days' advance written notice of the
proposed Permitted Transfer (including the identity and contact information for any proposed transferee and any other information
we may require in order to review the proposed Permitted Transfer); (c) you pay to us a nonrefundable processing fee of Five Thousand
Dollars ($5,000) with the Permitted Transfer request; (d) you follow our then-current procedure for processing Permitted Transfers;
and (e) you execute any documents required by us for processing Permitted Transfers. If a Permitted Transfer listed in Subsection
13.2.2 otherwise qualifies as a Permitted Transfer without notice or consent under Subsection 13.2.1, the provisions of Subsection
13.2.1 will control.

 

13.2.2.1 Affiliate
Transfer. You or any Equity Owner may Transfer an Equity Interest or this Agreement to an Affiliate.

 

13.2.2,2 Transfers
to a Family Member or Trust, If you or any Equity Owner as of the Effective Date are a natural person, you and such Equity
Owner may Transfer an Equity Interest or this Agreement to an immediate family member (i.e., spouse, children, parents, siblings)
or to a trust for your benefit or the benefit of the Equity Owner or the Equity Owner's immediate family members.

 

13.2.2.3 Transfer
On Death. On the death of Franchisee or an Equity Owner who is a natural person, this Agreement or the Equity Interest of the
deceased Equity Owner may Transfer in accordance with such person's will or, if such person dies intestate, in accordance with
laws of intestacy governing the distribution of such person's estate, provided that: (i) the transfer on death is to an immediate
family member or to a legal entity formed by such family member(s); and (ii) within one (1) year after the death, such family member(s)
or entity meet all of our then-current requirements for an approved Transferee.

 

13.2.2.4 Privately
Held Equity Interests: 25% or Greater Change/No Change of Control. You or any Equity Owner as of the Effective Date (or any
transferee Equity Owner we subsequently approve) may Transfer an Equity Interest in Franchisee even though, after the completion
of such Transfer, twenty-five percent (25%) or more of the Equity Interests in Franchisee will have changed hands since the Effective
Date of this Agreement.

 

13.2.3 Change of
Ownership Transfer. Any proposed Transfer that is not described in Subsection 13.2.1 or 13.2,2 is a Change of Ownership Transfer.
We will have sixty (60) days from our receipt of the completed and signed franchise application to consent or withhold our consent
to any proposed Change of Ownership Transfer. You consent to our communication with any party we deem necessary about the Hotel
in order for us to evaluate the proposed Change of Ownership Transfer. Our consent to the Change of Ownership Transfer is subject
to the following conditions, all of which must be satisfied at or before the date of closing the Change of Ownership Transfer ("Closing"):

 

13.2.3.1 the Transferee submits
a Change of Ownership Application, pays our then current franchise application fee and any PIP Fee, executes our then-current form
of new franchise agreement and all ancillary forms, including a guaranty from a third-party acceptable to us, if required;

 

13.2.3.2 you are not in default
of this Agreement or any other agreements with us or our Affiliates;

 

13.2.3.3 you or the Transferee pay
all amounts due to us and the Entities through the date of the Closing;

 

13.2.3.4 you execute our then-current
form of voluntary termination agreement, which may include a general release, covering termination of this Agreement;

 

13.2.3.5 you conclude to our satisfaction,
or provide adequate security for, any suit, action, or proceeding pending or threatened against you, us or any Entity with respect
to the Hotel, which may result in liability on the part of us or any Entity;

 

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13.2.3.6 you,
the Transferee and/or transferee Equity Owner(s) submit to us all information related to the Transfer that we require, including
applications; and

 

13.2.3.7 the
Transferee meets our then-current business requirements for new franchisees and is neither a Sanctioned Person nor a Competitor.

 

13.2.4 Public Offering
or Private Placement.

 

13.2.4.1 Any
offering by you of Securities requires our review if you use the Marks, or refer to us or this Agreement in your offering. All
materials required by any Law for the offer or sale of those Securities must be submitted to us for review at least sixty (60)
days before the date you distribute those materials or fife them with any governmental agency, including any materials to be used
in any offering exempt from registration under any securities laws.

 

13.2.4.2 You
must submit to us a non-refundable Five Thousand Dollar ($5,000) processing fee with the offering documents and pay any additional
costs we may incur in reviewing your documents, including reasonable attorneys' fees. Except as legally required to describe the
Hotel in the offering materials, you may not use any of the Marks or otherwise imply our participation or that of Hilton Worldwide
or any other Entity in or endorsement of any Securities or any Securities offering.

 

13.2.4.3 We
have the right to approve any description of this Agreement or of your relationship with us, or any use of the Marks, contained
in any prospectus, offering memorandum or other communications or materials you use in the sale or offer of any Securities. Our
review of these documents will not in any way be considered our agreement with any statements contained in those documents, including
any projections, or our acknowledgment or agreement that the documents comply with any Laws.

 

13.2.4.4 You may not sell any Securities
unless you clearly disclose to all purchasers and offerees that: (i) neither we, nor any Entity, nor any of our or their respective
officers, directors, agents or employees, will in any way be deemed an issuer or underwriter of the Securities, as those terms
are defined in applicable securities laws; and (ii) we, the Entities, and our respective officers, directors, agents and employees
have not assumed and will not have any liability or responsibility for any financial statements, prospectuses or other financial
information contained in any prospectus or similar written or oral communication.

 

13.2.4.5 You
must indemnify, defend and hold the Indemnified Parties free and harmless of and from any and all liabilities, costs, damages,
claims or expenses arising out of or related to the safe or offer of any of your Securities to the same extent as provided in Subsection
15.1 of this Agreement.

 

13.2.5 Mortgages
and Pledges to Lending Institutions.

 

13.2.5.1 You
or an Equity Owner may mortgage or pledge the Hotel or an Equity Interest to a lender that finances the acquisition, development
or operation of the Hotel, without notifying us or obtaining our consent, provided that: (i) you or the applicable Equity Owner
are the sole borrower; and (ii) the loan is not secured by any other hotels or other collateral.

 

13.2.5.2 You
must notify us, in writing, before incurring other proposed indebtedness that involves a mortgage or pledge of the Hotel or an
Equity Interest, or a collateral assignment of this Agreement, so that we can evaluate the structure to determine whether any special
agreements and/or assurances from the lender, the Franchisee and/or its Equity Owners will be required including a "lender
comfort letter" or a loan related guaranty, in a form satisfactory to us. We may charge a fee for our review of a proposed
mortgage or pledge and for the processing of a lender comfort letter.

 

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13.2.6 Commercial
Leases. You may lease or sublease commercial space in the Hotel, or enter into concession arrangements for operations in connection
with the Hotel, in the ordinary course of business, subject to our right to review and approve the nature of the proposed business
and the proposed brand and concept, all in keeping with our Standards for System Hotels.

 

14.0 TERMINATION

 

14.1        Termination
with Opportunity to Cure. We may terminate this Agreement by written notice to you and opportunity to cure at any time before
its expiration on any of the following grounds:

 

14.1.1 You
fail to pay us any sums due and owing to us or the Entities under this Agreement within the cure period set forth in the notice,
which shall not be less than ten (10) days;

 

14.1.2 You
fail to begin or complete the Hotel Work by the relevant dates set forth in the Addendum or fail to open the hotel on the Opening
Date, and do not cure that default within the cure period set forth in the notice, which shall not be less than ten (10) days;

 

14.1.3 You
do not purchase or maintain insurance required by this Agreement or do not reimburse us for our purchase of insurance on your behalf
within the cure period set forth in the notice, which shall not be less than ten (10) days; or

 

14.1.4 You
fail to comply with any other provision of this Agreement, the Manual or any Standard and do not cure that default within the cure
period set forth in the notice, which shall not be less than thirty (30) days.

 

14.2        Immediate
Termination by Us. We may immediately terminate this Agreement on notice to you and without any opportunity to cure the default
if:

 

14.2.1 after
curing any material breach of this Agreement or the Standards, you engage in the same non-compliance within any consecutive twenty-four
(24) month period, whether or not the non-compliance is corrected after notice, which pattern of non-compliance in and of itself
will be deemed material;

 

14.2.2 you
receive three (3) notices of material default in any twelve (12) month period, even if the defaults have been cured;

 

14.2.3 you
fail to pay debts as they become due or admit in writing your inability to pay your debts or you make a general assignment for
the benefit of your creditors;

 

14.2.4 you
have an order entered against you appointing a receiver for the Hotel or a substantial part of your or the Hotel's assets or you
file a voluntary petition in bankruptcy or any pleading seeking any reorganization, liquidation, or dissolution under any law,
or you admit or fail to contest the material allegations of any such pleading filed against you or the Hotel, and the action results
in the entry of an order for relief against you under the Bankruptcy Code, the adjudication of you as insolvent, or the abatement
of the claims of creditors of you or the Hotel under any law;

 

14.2.5 you
or your Guarantor lose possession or the right to possession of all or a significant part of the Hotel or Hotel Site for any reason
other than those described in Section 11;

 

14.2.6 you
fail to operate the Hotel for five (5) consecutive days, unless the failure to operate is due to fire, flood, earthquake or similar
causes beyond your control, provided that you have taken reasonable steps to minimize the impact of such events;

 

14.2.7 you
contest in any court or proceeding our ownership of the System or any part of the System or the validity of any of the Marks;

 

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14.2.8 you
or any Equity Owner with a controlling Equity Interest are or have been convicted of a felony or any other offense or conduct,
if we determine in our business judgment it is likely to adversely reflect on or affect the Hotel, the System, us and/or any Entity;

 

14.2.9 you conceal revenues, maintain
false books and records of accounts, submit false reports or information to us or otherwise attempt to defraud us;

 

14.2.10 you, your Affiliate or a Guarantor
become a Competitor except as otherwise permitted by Subsection 5.1.15;

 

14.2.11 you Transfer any interest in
yourself, this Agreement, the Hotel or the Hotel Site, other than in compliance with Section 13 and its subparts;

 

14.2.12 you, your Affiliate or a Guarantor
become a Sanctioned Person or are owned or controlled by a Sanctioned Person or fail to comply with the provisions of Subsection
17.13;

 

14.2.13 information
is disclosed involving you or your Affiliates, which, in our business judgment, is likely to adversely reflect on or affect in
any manner, any gaming licenses or permits held by the Entities or the then-current stature of any of the Entities with any gaming
commission, board, or similar governmental or regulatory agency, or the reputation or business of any of the Entities;

 

14.2.14 any Guarantor
breaches its guaranty to us; or

 

14.2.15 a threat or danger to public
health or safety results from the construction, maintenance, or operation of the Hotel.

 

14.3        Suspension
Interim Remedies. If you are in default of'this Agreement, we may elect to impose an Interim Remedy, including the suspension
of our obligations under this Agreement and/or our or the Entities' obligations under any other of Your Agreements.

 

14.3.1 We may
suspend the Hotel from the Reservation Service and any reservation and/or website services provided through or by us. We may remove
the listing of the Hotel from any directories or advertising we publish. If we suspend the Hotel from the Reservation Service,
we may divert reservations previously made for the Hotel to other System Hotels or Network Hotels.

 

14.3.2 We may
disable all or any part of the software provided to you under Your Agreements and/or may suspend any one or more of the information
technology and/or network services that we provide or support under Your Agreements.

 

14.3.3 We may
charge you for costs related to suspending or disabling your right to use any software systems or technology we provided to you,
together with intervention or administration fees as set forth in the Standards.

 

14.3.4 You agree
that our exercise of the right to elect Interim Remedies will not result in actual or constructive termination or abandonment of
this Agreement and that our decision to elect Interim Remedies is in addition to, and apart from, any other right or remedy we
may have in this Agreement. If we exercise the right to elect Interim Remedies, the exercise will not be a waiver of any breach
by you of any term, covenant or condition of this Agreement. You will not be entitled to any compensation, including repayment,
reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our
exercise and/or withdrawal of any Interim Remedy.

 

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14.4       Liquidated Damages on Termination.

 

14.4.1 Calculation
of Liquidated Damages. You acknowledge and agree that the premature termination of this Agreement will cause substantial damage
to us. You agree that Liquidated Damages are not a penalty, but represent a reasonable estimate of the minimum just and fair compensation
for the damages we will suffer as the result of your failure to operate the Hotel for the Term. If this Agreement terminates
before the Expiration Date, you will pay us Liquidated Damages as follows:

 

14.4.1.1 If
termination occurs before you begin the Hotel Work and before the Opening Date, and you or any Guarantor (or your or any
Guarantor's Affiliates) directly or indirectly, enter into a franchise, license, management, lease and/or other similar agreement
for or begin construction or commence operation of a hotel, motel, inn, or similar facility at the Hotel Site under a Competitor
Brand within one (1) year after termination, then you will pay us Liquidated Damages in an amount equal to $3,600 multiplied by
the number of approved Guest Rooms at the Hotel.

 

14.4.1.2 If
termination occurs after you begin the Hotel Work but before the Opening Date, you will pay us Liquidated Damages in an amount
equal to $3,600 multiplied by the number of approved Guest Rooms at the Hotel, unless your failure to complete the Hotel Work was
the result of Force Majeure.

 

14.4.1.3 If
termination occurs after the Effective Date but before the second anniversary of the Opening Date, you will pay us Liquidated
Damages in an amount equal to $3,600 multiplied by the number of approved Guest Rooms at the Hotel.

 

14.4.1.4 If
termination occurs after the second anniversary of the Opening Date but before the final five (5) calendar years of the Term, you
will pay us Liquidated Damages in an amount calculated by dividing the sum of the Monthly Royalty Fees due to us under this Agreement
for the prior twenty-four (24) month period by twenty-four (24) and then multiplying the resulting sum by sixty (60).

 

14.4.1.5 If
there are less than sixty (60) months remaining in the Term on the date of termination, you will pay us Liquidated Damages in an
amount calculated by dividing the sum of the Monthly Royalty Fees due to us under this Agreement for the prior twenty-four (24)
month period by twenty-four (24) and then multiplying the resulting sum by the number of months remaining in the Term.

 

14.4.2 Payment of
Liquidated Damages. Payment of Liquidated Damages is due thirty (30) days following termination of this Agreement or on demand.

 

14.5       Actual Damages Under Special Circumstances.
You acknowledge that the Liquidated Damages described in Subsection 14.4 may be inadequate to compensate us for additional
harm we may suffer, by reason of greater difficulty in re-entering the market, competitive damage to the System or the Network,
damage to goodwill of the Marks, and other similar harm, under the following circumstances:

 

14.5.1 within
twelve (12) months of each other, five (5) or more franchise agreements for the Brand between yourself (or any of your Affiliates)
and us (or any of our Affiliates) terminate before their expiration date as a result of a breach by you or your Affiliate; or

 

14.5.2 this Agreement
terminates due to an unapproved Transfer either to a (i) Competitor or (ii) buyer that converts the Hotel to a Competing Brand
within two (2) years from the date this Agreement terminates.

 

14.5.3 In the
circumstances set forth in Subsection 14.5.1 and 14.5.2, we reserve the right to seek actual damages in lieu of Liquidated Damages.

 

14.6        Your
Obligations on Termination or Expiration. On termination or expiration of this Agreement, you will:

 

14.6.1 immediately
pay all sums due and owing to us or any of the Entities, including any expenses incurred by us in obtaining injunctive relief for
the enforcement of this Agreement;

 

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14.6.2 immediately
cease operating the Hotel as a System Hotel and cease using the System;

 

14.6.3 immediately
cease using the Marks, the Trade Name, and any confusingly similar names, marks, trade dress systems, insignia, symbols, or other
rights, procedures, and methods. You will deliver all goods and materials containing the Marks to us and we will have the sole
and exclusive use of any items containing the Marks. You will immediately make any specified changes to the location as we may
reasonably require for this purpose, which will include removal of the signs, custom decorations, and promotional materials;

 

14.6.4 immediately
cease representing yourself as then or formerly a System Hotel or affiliated with the Brand or the Network;

 

14.6.5 immediately
return all copies of the Manual and any other Proprietary Information to us;

 

14.6.6 immediately
cancel all assumed name or equivalent registrations relating to your use of any Mark, notify the telephone company and all listing
agencies and directory publishers including Internet domain name granting authorities, Internet service providers, global distribution
systems, and web search engines of the termination or expiration of your right to use the Marks, the Trade Name, and any telephone
number, any classified or other telephone directory listings, Internet domain names, uniform resource locators, website names,
electronic mail addresses and search engine metatags and keywords associated with the Hotel, and authorize their transfer to us;
and

 

14.6.7 irrevocably
assign and transfer to us (or to our designee) all of your right, title and interest in any domain name listings and registrations
that contain any reference to our Marks, System, Network or Brand; notify the applicable domain name registrars of the termination
of your right to use any domain name or Sites associated with the Marks or the Brand; and authorize and instruct the cancellation
of the domain name, or transfer of the domain name to us (or our designee), as we specify. You will also delete all references
to our Marks, System, Network or Brand from any Sites you own, maintain or operate beyond the expiration or termination of this
Agreement.

 

15.0        INDEMNITY

 

15.1        Beginning
on the Effective Date, you must indemnify the Indemnified Parties against, and hold them harmless from, all losses, costs, liabilities,
damages, claims, and expenses, including reasonable attorneys' fees, expert fees, costs and other expenses of litigation arising
out of or resulting from:

 

15.1.1 any
breach by you of this Agreement, the Manual or the Standards;

 

15.1.2 any
act or omission of you or your officers, employees, Affiliates, associates or agents in any way arising out of or relating to this
Agreement;

 

15.1.3 any
claimed occurrence at the Hotel including personal injury, death or property damage;

 

15.1.4 your
alleged or actual infringement or violation of any patent, Mark or copyright or other proprietary right owned or controlled by
third parties;

 

15.1.5 your
alleged or actual violation or breach of any contract (including any group sales agreement for the System), any Law, or any industry
standard;

 

15.1.6 any
business conducted by you or a third party in, on or about the Hotel or Hotel Site and

 

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15.1.7 your failure to comply with
Subsection 17.13, including a breach of the representations set forth therein.

 

15.2       You do
not have to indemnify an Indemnified Party to the extent damages otherwise covered under this Section 15 are adjudged by a final,
non-appealable judgment of a court of competent jurisdiction to have been solely the result of the gross negligence or willful
misconduct of that Indemnified Party, and not any of the acts, errors, omissions, negligence or misconduct of you or anyone related
to you or the Hotel. You may not rely on this exception to your indemnity obligation if the claims were asserted against us or
any other Indemnified Party on the basis of theories of imputed or secondary liability, such as vicarious liability, agency, or
apparent agency, or our failure to compel you to comply with the provisions of this Agreement, including compliance with Standards,
Laws or other requirements.

 

15.3        You
will give us written notice of any action, suit, proceeding, claim, demand, inquiry or investigation involving an Indemnified Party
within five (5) days of your knowledge of it. At our election, you will defend us and/or the Indemnified Parties against the same
or we may elect to assume (but under no circumstance will we be obligated to undertake) the defense and/or settlement of the action,
suit, proceeding, claim, demand, inquiry or investigation at your expense and risk.

 

15.4        If
we think our respective interests conflict, we may obtain separate counsel of our choice. This will not diminish your obligation
to indemnify the Indemnified Parties and to hold them harmless. You will reimburse the Indemnified Parties on demand for all expenses,
including reasonable attorneys' fees, expert fees, costs and other expenses of litigation, the Indemnified Parties incur to protect
themselves or to remedy your defaults. The Indemnified Parties will not be required to seek recovery from third parties or otherwise
mitigate their losses to maintain a claim against you, and their failure to do so will not reduce the amounts recoverable from
you by the Indemnified Parties.

 

15.6        Your
obligations under this Section 15 will survive expiration or termination of this Agreement.

 

16.0      RELATIONSHIP OF THE PARTIES

 

16.1        No
Agency Relationship. You are an independent contractor. Neither Party is the legal representative or agent of the other Party
nor has the power to obligate the other Party for any purpose. You acknowledge that we do not supervise or direct your daily affairs
and that you have exclusive control over your daily affairs. You expressly acknowledge that the Parties have a business relationship
based entirely on, and defined by, the express provisions of this Agreement and that no partnership, joint venture, agency, fiduciary
or employment relationship is intended or created by reason of this Agreement.

 

16.2        Notices
to Public Concerning Your Independent Status. All contracts for the Hotel's operations and services at the Hotel will be in
your name or in the name of your Management Company. You will not enter into or sign any contracts in our name or any Entity's
name or using the Marks or any acronyms or variations of the Marks. You will disclose in all dealings with the public, suppliers
and third parties that you are an independent entity and that we have no liability for your debts.

 

17.0      MISCELLANEOUS

 

17.1       Severability
and Interpretation.

 

17.1.1 if any
provision of this Agreement is held to be unenforceable, void or voidable, that provision will be ineffective only to the extent
of the prohibition, without in any way invalidating or affecting the remaining provisions of this Agreement, and all remaining
provisions will continue in effect, unless the unenforceability of the provision frustrates the underlying purpose of this Agreement.
If any provision of this Agreement is held to be unenforceable due to its scope, but may be made enforceable by limiting its scope,
the provision will be considered amended to the minimum extent necessary to make it enforceable.

 

    	26

    	 

    

 

17,1.2 This
Agreement will be interpreted without interpreting any provision in favor of or against either Party by reason of the drafting
of the provision, or either of our positions relative to the other.

 

17.1.3 Any
covenant, term or provision of this Agreement that provides for continuing obligations after the expiration or termination of this
Agreement will survive any expiration or termination.

 

17.2       Governing
Law, Jurisdiction and Venue.

 

17.2.1 The Parties
agree that, except to the extent governed by the United States Trademark Act of 1946 (Lanham Act; 15 U.S.C. lj
1050 et seq.), as amended, this Agreement will be governed by the laws of the State of New York without recourse to New
York choice of law or conflicts of law principles. Nothing in this Section is intended to invoke the application of any franchise,
business opportunity, antitrust, "implied covenant," unfair competition, fiduciary or any other doctrine of law of the
State of New York or any other state that would not otherwise apply absent this Subsection 17.2.1.

 

17.2.2 The Parties
agree that any action brought pursuant to this Agreement or the relationship between them must be brought in the U.S. District
Court for the Eastern District of Virginia, in Alexandria, Virginia, or if that court lacks subject matter jurisdiction, then in
a court of competent jurisdiction whose jurisdiction includes either Fairfax County, Virginia or New York, New York, or in the
county and state where the Hotel is located. You consent to personal jurisdiction and venue in each of these jurisdictions and
waive, and agree not to assert, move or otherwise claim that the venue in any of these jurisdictions is for any reason improper,
inconvenient, prejudicial or otherwise inappropriate.

 

17.3       Exclusive
Benefit. This Agreement is exclusively for our and your benefit, and none of the obligations of you or us in this Agreement
will run to, or be enforceable by, any other party (except for any rights we assign or delegate to one of the Entities or covenants
in favor of the Entities, which rights and covenants will run to and be enforceable by the Entities or their successors and assigns)
or give rise to liability to a third party, except as otherwise specifically set forth in this Agreement.

 

17.4       Entire
Agreement. This Agreement and all of its attachments, documents, schedules, exhibits, and any other information specifically
incorporated into this Agreement by reference (including any representations in any franchise disclosure document that we provided
to you for the Brand in connection with the offer of this License) will be construed together as the entire agreement between you
and us with respect to the Hotel and any other aspect of our relationship and will supersede and cancel any prior and/or contemporaneous
discussions or writings between you and us.

 

17.5       Amendment and
Waiver.

 

17.5.1 No change,
termination, or attempted waiver or cancellation of any provision of this Agreement will bind us unless it is in writing, specifically
designated as an amendment or waiver, and signed by one of our officers. We may condition
our agreement to any amendment or waiver on receiving from you, in a form satisfactory to us, an estoppel and general release of
claims that you may have against us, the Entities, and related parties.

 

17.5.2 No failure
by us or by any of the Entities to exercise any power given us under this Agreement or to
insist on strict compliance by you with any of your obligations, and no custom or practice at variance with the terms of this Agreement,
will be considered a waiver of our or any Entity's right to demand exact compliance with the terms of this Agreement.

 

17.6       Consent;
Business Judgment.

 

17.6.1 Wherever
our consent or approval is required in this Agreement, unless the provision specifically indicates otherwise, we have the right
to withhold our approval at our option, in our business judgment, taking into consideration our assessment of the long-term interests
of the Systemoverall. We may withhold any and all consents or approvals required by this Agreement if you are in default or breach
of this Agreement. Our approvals and consents will not be effective unless given in writing and signed by one of our duly
authorized representatives.

 

    	27

    	 

    

 

17.6.2
You agree not to make a claim for money damages based on any allegation that we have unreasonably withheld or delayed any
consent or approval to a proposed act by you under the terms of this Agreement. You also may not claim damages by way of set-off,
counterclaim or defense for our withholding of consent. Your sole remedy for the claim will be an action or proceeding to enforce
the provisions of this Agreement by specific performance or by declaratory judgment.

 

17.7         Notices.
Notices under this Agreement must be in writing and must be delivered in person, by prepaid overnight commercial delivery
service, or by prepaid overnight mail, registered or certified, with return-receipt requested. Notices to us must be sent to 7930
Jones Branch Drive, Suite 1100, McLean, VA 22102, ATTN: General Counsel. We will send notices to your address set forth in the
Addendum. If you want to change the name or address for notice to you, you must do so in writing, signed by you or your
duly authorized representative, designating a single address for notice, which may not be a P.O. Box, in compliance with this
Subsection. Notice will be deemed effective on the earlier of: 1) receipt or first refusal of delivery; 2) one (1) day after posting
if sent via overnight commercial delivery service or overnight United States Mail; or 3) three (3) days after placement in the
United States mail if overnight delivery is not available to the notice address.

 

17.8         General
Release. With the exception of claims related to representations contained in the franchise disclosure document for the Brand,
you, on your own behalf and on behalf of, as applicable, your officers, directors, managers, employees, heirs, administrators,
executors, agents and representatives and their respective successors and assigns hereby release, remise, acquit and forever discharge
us and the Entities and our and their respective officers, directors, employees, managers, agents, representatives and
their respective successors and assigns from any and all actions, claims, causes of action, suits, rights, debts, liabilities,
accounts, agreements, covenants, contracts, promises, warranties, judgments, executions, demands, damages, costs and expenses,
whether known or unknown at this time, of any kind or nature, absolute or contingent, existing at law or in equity, on account
of any matter, cause or thing whatsoever that has happened, developed or occurred relating to this Agreement or the relationship
between you and us. This release will survive the termination of this Agreement.

 

17.9         Remedies
Cumulative. The remedies provided in this Agreement are cumulative. These remedies are not exclusive of any other remedies
that you or we may be entitled to in case of any breach or threatened breach of the terms and provisions of this Agreement.

 

17.10
Economic Conditions Not a Defense. Neither general economic downturn or conditions nor your own financial inability to perform
the terms of this Agreement will be a defense to an action by us or one of the Entities for your breach of this Agreement.

 

17.11
Representations and Warranties. You warrant, represent and agree that all statements in your franchise application in anticipation
of the execution of this Agreement, and all other documents and information submitted to us by you or on your behalf are true,
correct and complete as of the date of this Agreement. You further represent and warrant to us that:

 

17.11.1
you have independently investigated the risks of operating the Hotel under the Brand, including current and potential market
conditions and competitive factors and risks, and have made an independent evaluation of all such matters and reviewed our franchise
disclosure document, if applicable;

 

17.11.2
neither we nor our representatives have made any promises, representations or agreements other than those provided in the
Agreement or in our franchise disclosure document provided to you in connection with the offer of this Agreement, if applicable,
and you acknowledge that you are not relying on any promises, representations or agreements about us or the franchise not expressly
contained in this Agreement in making your decision to sign this Agreement;

 

    	28

    	 

    

 

17.11.3
you have the full legal power authority and legal right to enter into this Agreement;

 

17.11.4
this Agreement constitutes a legal, valid and binding obligation and your entry into, performance and observation of this
Agreement will not constitute a breach or default of any agreement to which you are a party or of any Law;

 

17.11.5
if you are a corporation, limited liability company, or other entity, you are, and throughout the Term will be, duly formed
and validly existing, in good standing in the state in which you are organized, and are and will be authorized to do business
in the state in which the Hotel is located; and

 

17.11.6
no Equity Interest has been issued, converted to, or is held as, bearer shares or any other form of ownership, for which there
is no traceable record of the identity of the legal and beneficial owner of such Equity interest.

 

You hereby indemnify and hold
us harmless from any breach of these representations and warranties. These warranties and representations will survive the termination
of this Agreement.

 

17.12 Counterparts. This
Agreement may be signed in counterparts, each of which will be considered an original.

 

17.13 Sanctioned Persons
and Anti-bribery Representations and Warranties.

 

17.13.1 You represent, warrant and
covenant to us and the Entities, on a continuing basis, that:

 

17.13.1.1
you (including your directors and officers, senior management and shareholders (or other Persons) having a controlling interest
in you), and any Controlling Affiliate of the Hotel or the Hotel Site are not, and are not owned or controlled by, or acting on
behalf of, a Sanctioned Person or, to your actual knowledge, otherwise the target of Trade Restrictions;

 

17.13.1.2 you have not
and will not obtain, receive, transfer or provide any funds, property, debt, equity, or other financing related to this Agreement
and the Hotel or Hotel Site to/from a Person that qualifies as a Sanctioned Person or, to your actual or constructive knowledge,
is otherwise the target of any applicable Trade Restrictions;

 

17.13.1.3
you are familiar with the provisions of applicable Anti-Corruption Laws and shall comply with applicable Anti-Corruption Laws
in performance of your respective obligations under or in connection with this Agreement;

 

17.13.1.4
any funds received or paid in connection with entry into or performance of this Agreement have not been and will not be derived
from or commingled with the proceeds of any activities that are proscribed and punishable under the criminal laws of the United
States, and that you are not engaging in this transaction in furtherance of a criminal act, including acts in violation of applicable
Anti-Corruption Laws;

 

17.13.1.5
in preparation for and in entering into this Agreement, you have not made any Improper Payment or engaged in any acts or transactions
otherwise in violation of any applicable Anti-Corruption Laws, and, in connection with this Agreement or the performance of your
obligations under this Agreement, you will not directly or indirectly make, offer to make, or authorize any Improper Payment or
engage in any acts or transactions otherwise in violation of any applicable Anti-Corruption Laws;

 

    	29

    	 

    

 

17.13.1.6
except as otherwise disclosed in writing to us, neither you, nor any of your direct or indirect shareholders (including legal
or beneficial shareholders), officers, directors, employees, agents or other Persons designated by you to act on your behalf or
receive any benefit under this Agreement, is a Government Official. Furthermore, no Government Official has or will have any existing
or inchoate legal or beneficial interest in this Agreement or any payments to be made under this Agreement. You will shall notify
us immediately in writing in the event of a change in the Government Official status of any such persons;

 

17.13.1.7
any statements, oral, written, electronic or otherwise, that you submit to us or to any third party in connection with the
representations, warranties, and covenants described in this Subsection 17.13 are truthful and accurate and do not contain any
materially false or inaccurate statements;

 

17.13.1.8 you will make
reasonable efforts to assure that your respective appointed agents in relation to this Agreement comply in all material respects
with the representations, warranties, and covenants described in this Subsection 17.13; and

 

17.13.2 You will notify
us in writing immediately on the occurrence of any event which would render the foregoing representations and warranties of this
Subsection 17.13 incorrect.

 

17.14
Attorneys' Fees and Costs. If either Party is required to employ legal counsel or to incur other expenses to enforce any provision
of this Agreement or defend any claim by the other, then the prevailing party in any resulting dispute will be entitled to recover
from the non-prevailing party the amount of all reasonable fees of attorneys and experts, court costs, and all other expenses
incurred in enforcing such obligation or in defending against such claim, demand, action, or proceeding.

 

17.15
Interest. Any sum owed to us or the Entities by you or paid by us or the Entities on your behalf will bear interest from the
date due until paid by you at the rate of eighteen percent (18%) per annum or, if lower, the maximum lawful rate.

 

17.16 Successors and Assigns.
The terms and provisions of this Agreement will inure to the benefit of and be binding on the permitted successors and assigns
of the Parties.

 

17.17
Our Delegation of Rights and Responsibility. In addition to the rights granted to us in Section 4 and Subsection 13.1 of this
Agreement, we reserve the right to delegate to one or more of the Entities at any time, any and all of our rights, obligations
or requirements under this Agreement, and to require that you submit any relevant materials and documents otherwise requiring
approval by us under this Agreement to such Entity, in which case approval by such Entity will be conclusively deemed to
be approval by us. During the period of such delegation or designation, any act or direction by such Entity with respect to this
Agreement will be deemed the act or direction of us. We may revoke any such delegation or designation at any time. You acknowledge
and agree that such delegation may result in one or more of the Entities which operate, license, or otherwise support brands other
than the Brand, exercising or performing on our behalf any or all rights, obligations or requirements under this Agreement or
performing shared services on our behalf.

 

18.0 WAIVER OF JURY TRIAL AND PUNITIVE DAMAGES

 

18.1
IF EITHER PARTY INITIATES LITIGATION INVOLVING THIS AGREEMENT OR ANY ASPECT OF THE RELATIONSHIP BETWEEN THE PARTIES (EVEN IF OTHER
PARTIES OR OTHER CLAIMS ARE INCLUDED IN SUCH LITIGATION), ALL THE PARTIES WAIVE THEIR RIGHT TO A TRIAL BY JURY.

 

18.2
IN ANY DISPUTE BETWEEN THE PARTIES, ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY BREACH OF THIS AGREEMENT, OR THE RELATIONSHIP
BETWEEN THE PARTIES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ALL PARTIES WAIVE ANY RIGHT THEY. MAY HAVE TO PUNITIVE OR
EXEMPLARY DAMAGES FROM THE OTHER.

 

    	30

    	 

    

 

NOTHING IN THIS SECTION
LIMITS OUR RIGHT OR THE RIGHT OF AN INDEMNIFIED PARTY TO BE INDEMNIFIED AGAINST THE PAYMENT OF PUNITIVE OR EXEMPLARY DAMAGES TO
A THIRD PARTY. THE PARTIES ACKNOWLEDGE THAT LIQUIDATED DAMAGES PAYABLE BY YOU UNDER THIS AGREEMENT (WHETHER PRE-OPENING LIQUIDATED
DAMAGES OR LIQUIDATED DAMAGES FOR EARLY TERMINATION) ARE NOT PUNITIVE OR EXEMPLARY DAMAGES.

 

19M INTENTIONALLY DELETED

 

    	31

    	 

    

 

ADDENDUM TO FRANCHISE AGREEMENT

 

	Effective Date: 	March 21, 2014 (closing date)
	 	 
	Franchisor Name:	HOMEWOOD SUITES FRANCHISE LLC, a Delaware limited liability
    company
	 	 
	Brand:	Homewood Suites by Hilton (excluding Home2 Suites by Hilton
    and any other brands or product lines containing "Suites," "Hilton" or the "by Hilton" tagline
    in the name)

  

	Initial Approved Hotel Name (Trade Name):	Homewood Suites by Hilton Stratford
	 	 
	Principal Mark in Brand:	Homewood
	 	 
	Franchisee Name and Address	ARC Hospitality TRS Stratford,

	(Attn: Principal Legal Correspondent):	LLC 405 Park AvenueNew York, New York 10022 

        Attention: Jesse Galloway 

        Phone: (212) 415-6500 

        E-mail: juallowavRarIcap.com 

	 	 
	 	Franchisor will also provide a courtesy copy of any notice,
    for informational purposes only, to:
	 	 
	 	Crestline Hotels & Resorts, LLC
	 	3950 University Drive, Suite 301
	 	Fairfax, Virginia 22030
	 	Attention: CEO and General Counsel
	 	E-mail: james.carrollcrestlinehotels.com 
	 	             pierre.donahueacrestlinehotels.com
	 	 
	 	Any failure by Franchisor to provide a courtesy copy of any
    notice will not constitute a breach of this Agreement nor will it affect the validity of any notice that is provided to Franchisee
    pursuant to Subsection 17.7 of this Agreement.
	 	 
	Address of Hotel:	6905 Main Street
	 	Stratford, Connecticut 06614

 

	Initial Number of Approved Guest Rooms:	135
	 	 
	Plans Submission Dates: 	 
	Preliminary
    Plans:	n/a
	 	 
	Design Development (50%) Plans and
    Specifications:	n/a
	 	 
	Final (100%) Plans and Specifications:	n/a
	 	 
	Construction Commencement Date:	n/a

 

    	1

    	 

    

  

	Construction Work Completion Date: 	n/a
	 	 
	Renovation Commencement Date: 	The Effective Date
	 	 
	Renovation Work Completion Date:	In accordance with the attached PIP
	 	 
	Expiration Date:	at midnight on the last day of the month fifteen (15) years
    from the Effective Date
	 	 
	Monthly Fees:	 
	Monthly Program Fee:	Four percent (4%) of the Hotel's
    Gross Rooms Revenue for the preceding calendar month. The Monthly Program Fee is subject to change by us. Any change may
    be established in the Standards, but the rate will not exceed the standard Monthly Program Fee as of the Effective Date plus
    one percent (1%) of the Hotel's Gross Rooms Revenue during the Term
	 	 
	Monthly Royalty Fee:	Five percent (5%) of the Hotel's Gross Rooms
	 	Revenue for the preceding calendar month

 

Additional Requirements/Special Provisions:

 

·    The
parties acknowledge that the Hotel is an existing System Hotel that was authorized to open under the Brand before the Effective
Date.

 

·    Obligations
of Prior Franchisee. You acknowledge and agree that you are
directly responsible for, and will pay on demand, all fees and charges due and owing us and the Entities related to the prior
franchise agreement for the Hotel if any such fees and charges remain outstanding as of or accrue after the Effective Date of
this Agreement.

 

·    Section
1, Definitions of "Opening Date" and "Publicly Traded Equity Interest": Modified

 

·    Subsection
5.1.25: Modified

 

·    Subsection
8.1: Modified

 

·    Subsection
11.2.1: Modified

 

·    Subsections
14.4.1.1. and 14.4.1.3: Modified

 

·    Section
19 - Acknowledgment of Exemption: Intentionally Deleted

 

Your Ownership Structure: See Attached Schedule 1

 

Ownership Structure of Affiliate Fee Owner or Lessor/Sublessor
of the Hotel or Hotel Site: See Attached Schedule 2

 

    	2

    	 

    

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement,
which has been entered into and is effective as of the Effective Date set forth above.

 

	FRANCHISEE:	 	FRANCHISOR:
	 	 	 
	ARC HOSPITALITY TRS STRATFORD LLC,  

a Delaware limited liability corn an 	 	HOMEWOOD SUITES FRANCHISE LLC, 

a Delaware limited liability company
	 	 	 	 	 
	By:	/s/ Jesse C. Galloway	 	By:	/s/ James  Holthouser
	 	 	 	 	 
	Name:	Jesse C. Galloway	 	Name:	James  Holthouser
	 	Authorized Signatory	 	 	Authorized Signatory
	 	 	 	 	 
	Title:	 	 		 

 

	Executed on:  	3/14/14	 	Executed on:	( Lir

  

    	1

    	 

    

 

NEW YORK ADDENDUM TO FRANCHISE AGREEMENT

 

Notwithstanding anything to the contrary set forth
in the Franchise Disclosure Document or Franchise Agreement, the following provisions will supersede and apply to all franchises
offered and sold under the laws of the State of New York:

 

		1.	Subsection 9.6 of the Franchise Agreement requiring you
to consent to the entry of an injunction is amended to provide that you consent to the seeking of such an injunction.

 

		2.	Subsection 17.8 is amended to provide that no release
language set forth in the Franchise Agreement will relieve Franchisor or any other person, directly or indirectly, from liability
imposed by the laws of the State of New York concerning franchising.

 

	FRANCHISEE:	FRANCHISOR:
	 	 
	ARC HOSPITALITY TRS STRATFORD,
    LLC, a Delaware limited liability company		HOMEWOOD SUITES FRANCHISE LLC, a Delaware limited liability
    company
	 	 
	By: Name: Title: Executed on:	 
	 	 	 	 
	By:	/s/
    Jesse C. Galloway	 	By:
	 	 	 	 	 
	Name:	Jesse
    C. Galloway	 	Name:	 
	 	 	 	 
	Title:	Authorised
    Signatory	 	Title: 	Authorized
    Signatory
	 	 	 	 	 
	 	3/i4/11
    4	 	 	 

 

    	1

    	 

    

  

NEW YORK ADDENDUM TO FRANCHISE AGREEMENT

 

Notwithstanding anything to the contrary set forth
In the Franchise Disclosure Document or Franchise Agreement, the following provisions will supersede and apply to all franchises
offered and sold under the laws of the State of New York:

 

		1.	Subsection 9.6 of the Franchise Agreement requiring you to consent
                                         to the entry of an Injunction is amended to provide that you consent to the seeking of
                                         such an injunction.

 

		2.	Subsection 17.8 is amended to provide that no release language
                                         set forth in the Franchise Agreement will relieve Franchisor or any other person, directly
                                         or indirectly, from liability imposed by the laws of the State of New York concerning
                                         franchising.

 

	FRANCHISEE:	FRANCHISOR:
	 	 
	ARC HOSPITALITY TRS STRATFORD, LLC,

    a Delaware limited liability company	HOMEWOO

    a Delawar	UITES FRANCHISE LLC,

    II. Nifty company

 

	By:	 	 	By:	/s/ James  Holthouser
	 	 	 	 	 
	Name:	 	 	Name: 	 James  Holthouser
	 	 	 
	Title:	 	Title:	Authorized Signatory

 

	Executed on:	 	 

 

    	 

    	 

    

 

EXHIBIT
A PRODUCT IMPROVEMENT PLAN

 

Product
Improvement Plan

 

Prepared for:

Homewood
Suites by Hilton

Stratford, CT

(InnCotle: BORCT, Facility ED:41017)

 

6905 Main Street, Stratford, Connecticut,
United States

 

To be relicensed as a Homewood Suites by
Hilton

 

HOMEWOOD

SUITES

— maim.

 

By Kenneth-Savage

 

Inspection Date: Jan4-872013 

FINAL PIP REVISION DATE-. Sep-08-2013 by
Roy Johnson

 

BrataManauement Approval

 

Final PIP Approval Date : Sep-08-2013

 

Final
FLA PIP Approval Signature:  /s/ [ILLEGIBLE]

  

PIP Contact

 

Corinne Hight

Email: Corinne.hight@hilton.com

Phone: 901-374-6044

 

    	 

    	 

    

 

EXHIBIT A - PRODUCT IMPROVEMENT PLAN

 

Property Information

 

	Open Date:	2005-02-14
	Last
    Renovation:	2009: Corridor, Lodge
    and Suite carpet
	Parking:	Asphalt surface parking
    lot
	Whirlpool:	Indoor
	Airport
    Van:	None
	Number
    Floors:	3
	Food
    Service Facilities:	Pantry
	Meeting
    Space:	4000 sq ft 2 Meeting
    Rooms
	Business
    Center:	Yes
	Exercise
    Room:	Yes. Precor renovated
    @ 235 sq ft
	Other
    Recreation:	None
	Retail
    Outlets:	None
	Guest
    Laundry:	Yes
	Number
    Of Guest Rooms:	135
	Guest
    Room Size	Parlor: 20'7' X 14'5"
	Guest
    Room Mix:	 
	Typical
    King:	52
	Typical
    DID:	59
	 	 
	Guest
    Bathroom:	 
	Size:	8"0' X 7'10
	Door
    Width:	36'
	Tub
    Surround:	acrylic one-piece
    unit
	Floor:	4" X 4"
    ceramic tile '
	Vanity:	Wood-front base with
    granitetop,"
	Water
    Closet:	Tank-type'. elongated
    .b6w1 with open-front seats
	 	 
	HVAC
    System:	 
	100%
    Makeup Air:,.-	Yes 
	Public
    Areas:	Packaged units
	Guestrooms:	VrA Cs tiyithOgital
    thermostats
	 	 
	Elevators:	 
	 	 
	High
    Speed Internet:	 
	Public
    Areas:	AT&T
	Meeting
    Space:-	AT&T
	Guestrooms:	AT&T
	 	 
	Telephone
    System:	 

 

    	 

    	 

    

 

EXHIBIT A - PRODUCT IMPROVEMENT PLAN

 

PLEASE NOTE: Key information about the terms and effectiveness
of this Property Improvement Plan is set out at the end of the document.

 

General

 

	#	 	Active Date	 	Scope of Work	 	Finish Date
	 	 	 	 	 	 	 
	 	 	 	 	Notice to owner. All hotels must comply with applicable local, state, and federal accessibility
    requirements. This PIP does not necessarily include any work that may be required for compliance with Title 111 of the Americans
    with Disabilities Act (ADA). lit addition, if a Franchise Agreement or a Management Agreement for a hotel constructed for
    first occupancy after January 26th 1993 is executed after March 30th 2011 Hilton Worldwide will require the owmrr to conduct
    a self-survey (provided by Hilton Worldwide) of the hotel's guestrooms and parting for compliance with ADA Title III requirements.
    Any areas of non-compliance will need to be addressed within five to seven years (dependi on the item in question) as a condition
    of the franchise or management agreeMent.	 	Per Brand Standards

 

BRAND STANDARDS

 

	#	 	Active Date	 	Scope of Work	 	Finish Date
	 	 	 	 	 	 	 
	1	 	 	 	40''113SIREISITz;	 	 
	2	 	 	 	2502.00- Brand Standard - Take Flight - Homewood Suites `:Hilton has developed a comprehensive
    hotel refresh concept called 'Tat:C....Plight" A Style Guide will be available in August 2013. Take Flight impacts iteritS
    such as the front entrance; interior sigrrage; FT&B, lighting, flooring and wall finishesin the lobby and lodge including
    the front desk-4114e shop, and business tenter layout and design; outdoor- kitchen, (pool, patih.:.And
    gritting areas)„headboards, back lit vanity mina, and other cosmetic updates the suites. Details will be posted on wwwhiltonworldwide.conu'design
    as they beCpme available. A certified and approved designer or design Finn ,BUST be &;i rutted and retained. For further
    information, please contact RoylOhnson 	 	12 Months
	3	 	 	 	Brand Standard- D.,„igrirevi6W Strbini.ttals are cg.-for all replacements
    and new products prior to purchase and installation Addition to any binders, fabrics, etc., an electronic copy (via a noh-retiirnabl:CD)
    is required. Contact rsigitreview@hiltonsom for filither inforination.	 	180 Days
	4	 	 	 	Support Rules - Hotel smut net inslalllile-over-tile in any areas of the hotel. Old tile
    must be completely reihoved b.)fore new tile in installed-	 	Per Brand Standards
	5	 	 	 	Support Rule.5:11eitel iiiiiandt:install wall vinyl over existing wall vinyl
    in any areaof the hotel. Old wall vind must be completely removed before new wall vinA:is installed...	 	Per Brand Standards
	6	 	 	 	Suppoitrgules - All hotels undergoing a change of ownership or license renewal PIP
    will tie required to 'complete a one-time revenue management consultation and analysis.	 	12 Months
	 	 	 	 	Th1sis a fee bid service and will be performed by the Revenue Management 01,irsolidation
    Center. For additiorml details contact RMCCinfoOlton_com	 	
	7	 	 	 	P4Q5.02 Public Area Recycling - Each floor, second floor and above, must have integrated
    and/or coordinating recycling station, including the trash receptacle, loc'ated near the ice/vendirg areas. If space is limited,
    relocation to elevator lobby is Omitted, Required by 12/31/13 per Brand Standards	 	Per Brand Standards
	8	 	 	 	902.00 — In-suite Recycling - Provide a decorative in-suite recycling container at
    / near the work surface in each suite. The designated recycling container must be a t lqt container minimum_ If trash can
    is offered at the work surface, the recycling and trash can must match. Blue recycling containers are prohibited. Required
    by 12/31/13 per Brand Standards	 	Per Brand Standards
	9	 	 	 	504.03 - Interior Signage - Replace all existing interior, pool, and sport court signage.
    Install new brand required signage package. (Refer to the Take Flight Design Guide.)	 	12 Months
	10	 	 	 	2500.00 - This document was updated 09/0812013 with
    the latest Brand Initiatives and with any applicable items from the latest Quality Assurance visit dated arest2013	 	12 Months

 

    	 

    	 

    

 

EXHIBIT A - PRODUCT IMPROVEMENT PLAN

 

	11	 	 	 	902.02 Brand Standard - Top of Bed - The Homewood Suites brand is currently
    launching a turn-key, bed skirt & coverlet program that is requried brand-wide. All hotels across the brand are required
    to convert to the approved program (50% of inventory in 2013; remaining 50% in 2014).	 	Per Brand tandards
	12	 	 	 	2505.02 Take Plight — Public Space - All Take Flight elements in the public area must
    occur at once; they cannot beadded individually overtime. Refer to the Take Flight Design Guide for
    information on design intent and design requirements	 	12 Months

 

COMMERCIAL FACILITIES

 

	#	 	Active Date	 	Scope of Work	 	Finish Date
	 	 	 	 	 	 	 
	13	 	 	 	2514.03 D - Offices - Replace all carpet (wont/discolored). Install new carpet and carpet
    pad. Vinyl base is acceptable in areas that cannot be viewed by guests.	 	12 Months
	14	 	 	 	2513.01 B - Offices - Provide door viewer at the main office door entry.	 	12 Months
	15	 	 	 	2513.01 B - Offices - Provide key-punch lock at the main office door entry.	 	17. Nlonths
	16	 	 	 	2509.03 A - Corridors - Replace all corridor carpet and carpet pad Onafted,w
    env.. Install new 6" wood or 4" carpet base.	 	24 Months
	17	 	 	 	2509.03 A - Corridors - Replace all stairwell carpet and carpet pad (matterlAvorn)Install
    new 4' carpet base.	 	12 Months
	18	 	 	 	2514.03 A - Corridors - Replace all corridor tile; both at eleVaterlandingiand at , all
    first floor secondary entrances into the Lodge and Suites(s)corridors. Milan/ new 18' X 18' (minimum) decorative file flooring
    and 6"litiatching base. Rectangular shaped tile is acceptable (plank shaped and no snialler than 3" X'24" and
    no larger than 9' X 36".	 	12 Months
	19	 	 	 	2500.00 - Corridors - Replace entrance doors to Pool Area. Ensue both sets of entrance doors
    are in a like-new condition	 	12 Months
	20	   	   	  	2509.00 - Corridors - Install solid surfa0material or granite window sills.	 	12 Months
	21	 	 	 	2509.03 - Corridors - Continue repairs to-3rd floor corrid6t ceilings. Ensure all ceilings have a consistent
    appearance.'''-/-..-	 	 
	22	 	 	 	2509.03 A - Corridors - Replace all dantagecliscaried door hardware at secondary	 	12 Months
		 	 	 	entrances into building.-	 	 
	23	 	 	 	2500.00 - Elevators -,Refinish 6xtc der doers of elevators to remove scarring. All doors
    are to be41," likemee, coridilion 9r replaced.	 	12 Months
	24 '	   	   	   	2509.03 Corridor' window treatmant - Replace window treatment with operable sheers and decorative
    rod and hard vane. Sheers mast be pleated or rippled to double fulinev,,,-.:	   	12 Months
	25	 	 	 	2502402.1. Great Roorn/Lodge - Replace all carpet and carpet pad. (Note: flooring:Orid floorifighaositions
    will b impacted by Take Flight)	 	12 Months
	26	 	 	 	2599.03 —1421iy/Loclge window treatment - Replace window treatment with operable shell-tiaddecorath'e
    rod and hardware. Sheers must be pleated or rippled to double 'fullness	 	12 Months
	27	 	 	 	-:::2502.02 - Lobby/Lodge Flooring - Install the flooring in front of the fireplace, at
    the.frod desk, in the suite shop, and in the pantry. Install carpet/pad in the lodge (cliaing.and lounge zones) and home office.
    (Refer to the Take Flight Design Guide for flooring transitions.)	 	12 Months
	28	 	 	 	2502,04 - Front Desk - Install a stand-alone, pod, or open ended front desk with ADA shelf.
    Remove duck art and install a decorative back-wall panel systems]. Match hie flooring with suite shop and lobby (Refer to
    the Take Flight Design Guide)	 	12 Months
	29	 	 	 	2502.02 Lodge - Implement the "fake Flight" lobby and lodge concept by installing
    natural finish accents and prescribed furnishings to create the connect, dining, and lounge zones.Take Flight also includes
    the front desk, suite shop, pantry, integrated trashirecycle/busqng, home office, front porch, and outdoor _kitchen areas,
    (Refer to the Take Flight Design Guide)	 	12 Months

 

    	 

    	 

    

 

EXHIBIT A — PRODUCT IMPROVEMENT
PLAN

 

	30	 	 	 	2502.02 - Lobby/Lodge Furniture — In the lobby, install the curved
    sofa and elliptical rug. In the Lodge, outfit the dining area with tables and chairs of different styles, finishes, and heights.
    Include the signature wing table and pendants in the dining zone.Install the two-sided sectional and lighting to help define
    the separation between the dining and lounge zone. On the lounge side, outfit with tea-height tables and lounge chairs. Incorporate
    conxr banquette(s) with pendant lighting. (Refer to the Take Flight Design Guide	 	12 Months
	31	 	 	 	2501.00 - Exterior - Paint exterior with accent oclor(s) as outlined in the Exterior Design
    Guidelines (posted on www,hiltonworldwi&conitdesign) .	 	12 Months
	32	 	 	 	2501.02 F - Landscape - Add special landscaping or fencing to screen out transformers, gas
    meters, HVAC units etc., from guest view without hindering operation or routine maintenance.	 	12 Months
	33	 	 	 	2500.00 - Parking Lot - Repair any cracked/damaged areas in the parking lot. Re-seal and
    re-stripe the parking lot.	 	12 Months
	34	 	 	 	2513.09 C - Exterior - Install painted steel pipe bollards around the container to prevent
    damage to walls.	 	12 Months
	35	 	 	 	2500.00 Exterior - Ensure that all building sigrrage is updated to the current Homewood
    standards. 'Hilton". trademark sign is required on all building-mounted signage.	 	12 Months
	36	 	 	 	2513.09 —Trash collection Area- If existing trash collectionfdompstel-
    enclostire cannot a cconrinothte recycling bins, the dampster and clumpster pad 'Must be enlarged to accommodate the
    additional NUS,.	 	12 Months
	37	 	 	 	2501.04.D — Exterior - Secondary Entrances - Upgrade secondary entrances to include
    a covered area that matches the building andfor poste coeliere in des; ' t and finish. Install upscale decorative lighting,
    along with.' a decoratiVe/upsc trash and ash receptacle similar to the main entry.Rker`to the Eakferior Design Guidelines
    and Take Flight Design Guidelines	 	12 :Months -
	38	 	 	 	2501.05. Exterior - Front Entrance / Front Porch.. a. Provide ceiling recrossed cans and
    decorative upscale ivaIliconates b. Provide outdoor seating for two minim:int, adjacent to the prinuaiy entrance. Seating
    fabrication and style must be similar to the lodge
    patioseating; park benches are not allowed.ir-:H:,::::!„,.r. e. Provide a decorative combo trash, recieling, and ash
    reeeptade at the main entrance. The unit must include a hood to piaatect trash from weather. Refer to the Take Flight Design
    Guide for design intent.—.:: ,..2. d. Provide three decorative plardOs e.:
    varying sizes (2501.02)	 	12 Months
	39	 	 	 	2501,04 —Exterior - Building Finish ,,:ladd secondary finish to the exterior
    as outlined in the Exterior Design guir',31'F,Xteritif building finish must be a combination of two Or more of tly.-rollowini
    materials: HIES & brick; EIFS & Stone; or stone and litelc. Re feu IO: I he Exterior Design Guidelines	 	12 Months
	40	 	 	 	2507,00 -Bu ,: ' s Center '; Provide all components of the Global Business Center Solution.	 	Dee-31-2013
	41	 	 	 	2507.05A - BmAriessCenter - Install 6" decorative wood base to match the wood base
    inlhe lobby.''.. :-	 	12 Months
	42	 	 	 	2547.05 Al`130.sinest: Center - Replace cabinets and countertops New wall and ba se.cabinets
    inust be funrihtre quality with all exposed surfaces made of wood. IX.-.Sk lop must be Intl:nal or engineered stone
    or better and 30" above the finished floor. Upper cabinets must be provided for supply storage. Under cabinet lighting
    is required. Note: This area will be impacted by 'Take Flight".	 	12 Months
	43	 	 	 	2514.03 - Guest Laundry - Replace the floor tile. Install new 18' x 18" (tnirilmurn)
    decorative tile flooring and matching 6" base. Rectangular gaped tile is acceptable (plank shaped and no smaller than
    3" x 24" and no larger than 9" x 36').	 	12 Months
	44	 	 	 	2500.00 - Guest Laundry - Install an electronic entry loch. The deadbolt function must be
    disabled.	 	12 Months
	45	 	 	 	2506.02 G Guest Laundry - Install a minimum 36" x 22" innnan,ent counter with12	 	 
	 	 	 	 	a laminate top 34" triaminum above the finished floor. Provide two stools or chairs
    as seatarg.	 	Months
	46	 	 	 	2506.02 F - Guest Laundry - Install vinyl wall covering.12	 	Months
	47	 	 	 	2506.02 I - Guest Laundry - Conceal all electrical and plumbirg connections 12 behind the
    connected equipment. (Remove lattice panel)	 	Months
	48	 	 	 	2503.00 F - Public Restrootns - Remove the combination paper towel dispenser 12 and waste
    receptacle recsed into tire wall. Install an automated touch-less paper dispenser and a free-standing decorative trash receptacle.	 	Months

 

    	 

    	 

    

 

EXHIBIT A - PRODUCT IMPROVEMENT PLAN

 

	49	 	 	 	2514.03 A - Public Restrooms - Replace the floor tile. Install new 18"
    x 18' (minimtun) decorative tile flooring and matching 6" base. Rectangular shaped tile is acceptable (plank shaped and
    no smaller than 3" x 24" and no larger than 9" x 36').	 	12 Months
	50	 	 	 	250100 D - Public Restrooms - Replace all vinyl wall covering and wall tile. Ceramic, porcelain,
    or stone the at fall height is required at wet/phunbing walls.	 	12 Months
	51	 	 	 	2503.00 E - Public Restrooms - (Pool Area) - Replace all msted/corroded chrome fixtures
    in restrooms.	 	12 Months
	52	 	 	 	2506.01 Suite Shop - Install granite on all display counters. This area will be impacted
    by "Take Flight'.	 	12 Months
	53	 	 	 	2514.03 A - Suite Shop - Replace the floor tile. Install new 18' x 18" (minimum) decorative
    tile flooring and matching 6" base. Rectangular shaped tile is acceptable (plank shaped and no smaller than 3" x
    24" and no larger than 9' x 36"). Note: This area will be impacted by 'Take Flight".	 	12 Months
	54	 	 	 	2506.01 E - Suite Shop - Install vinyl wall covering.	 	12 Months
	55	 	 	 	2506.01 — Suite Shop—Install the 'Take Flight" suite shop b openim up the
    space to the front desk/lobby, flooring, accent wall vinyl, updated millwork, focal table w/pridant, refrigeration units and
    graphics. (Refer to the Take Flight Design	 	 
	 	 	 	 	Guide).' .	 	12 Months
	56	 	 	 	2503.00 — Public Restrooms —Provide commercial grade faucets that are. , touchless.
    All faucets must be plated brass with replaceable cartridges,` and: ::,.....	 	 
	 	 	 	 	manufaetured by nationally lorown manufacturers. All fixtures inusehe lcm-110iv.	 	 
	 	 	 	 	...-.	 	 
	 	 	 	 	type	 	12 Months
	57	 	 	 	2507.05 - Busimiss Center - Implement the 'Take Flight"
    home office -e-Once]il.	 	 
	 	 	 	 	(Open tip the apace —removing door and partial wall, install'riattatation7
    printer	 	 
	 	 	 	 	FCIlinsula w/pendant, decorative panel/divider, accent wall vinyl
    .,"0.1 tura sting :::::	 	 
	 	 	 	 	flooring, etc. Refer to the Take Flight Design Guido);` -,:r.
    -,r,!:.1	 	12 Months i,.'
	 	 	 	 	.., —.....,—.	 	 
	55	 	 	 	2504.05 H - Pantry - Replace the breakfast area countertops. InstalTgratiita at the	 	 
	 	 	 	 	countertops at the cabinets and island.,..,:,	 	 
	 	 	 	 	Ice wells must be built-in. Note: This area will be impacted by "Take Flight'.	 	12 Months
	59	 	 	 	254405 K - Pantry - Replace the breakfast area cabinets' Install new decorative millwork
    base and wall cabinets. New cabinets must incorporate under-cabinet lighting as well as accent lighting in upper Cabinets
    withglass doors. All cabinet lighting must be on a dedicated, switch.	 	12 Months
	60	 	 	 	2504.05 0- Pantry - Replace thetile, Install iiew 18" x 18" (minimum)	 	 
	 	 	 	 	decorative tile flooring and ntitchini.071aase,_ReCtangular
    shaped his is acceptable (plank shaped and nii,smaller than.3.
    x.24" and no larger than 9" x 36"). Note: This aria will la impacted by rTake Flight".	 	12 Months
	61	 	 	 	2504.06 - Pantry - CoOidinale/update pantry serving area finishes with updated "Take
    Flight" lodge renctroninelgding updates such as pendant over island. (Refer tothel4e flight Dkrign Gifide)	 	12 Months
	 	 	 	 	 	 	 
	62	 	 	 	; J:17,1toardroorn
    - provide a remanent conference table to seat a minimum I.-opt:ix
    Table ftilistliave an electrical power source, telephone outlet, and AV conneetiOns in potrup boxes on the top of the table.	 	12 Months
	63	 	 	 	2507.03 - Badfdt66"rn - Provide, a built-in buffet counter, 48x24" ntininnun;	 	12 Months
	64	 	 	 	247.63 - Boddroom - Provide artwork appropriate for space available.	 	12 Months
	65	 	 	 	2547.03 - Boardroom - provide a ceiling recessed, electronically operated screen. Controls
    must be near the lighting controls.	 	12 Months
	66	 	 	 	250,03 - Boardroom - Provide a 52" well mounted flat panel TV with connectivity to
    a MATV system and to boardroom table connection.	 	12 Months
	67	 	 	 	2507.03 - Board room - Replace Nvalll vinyl. The vinyl is damaged at the windows. Repair
    all moisture damage and eliminate source.	 	12 Months
	 	 	 	 	 	 	 
	68	 	 	 	2543.07 A - Activity Court - Install an activity court or alternative recreational feature
    approved by the brand. This is a required facility.	 	12 Months
	69	 	 	 	2508.03 P - Pool Area - A saline-based generator system must be used for swimming pool water
    pitrification. The system must comply with all loc-al
    codes and meet all local health department regulatiorn. The system must be NSF-54 and ULt 031 tested and certified (or the
    equivalent) and sized as per Loral and State Department of Environmental Health guidelines.	 	12 Months
	70	 	 	 	2501.03 3- Rear Porch/Patio - Provide a mirinium of Iwo outdoor gas or charcoal grills
    (Outdoor kiitchen will be part of "Take Flight').12 Months	 	12 Months

 

 

    	 

    	 

    

 

EXHIBIT A - PRODUCT IMPROVEMENT PLAN

 

	#	 	Active
    Date	 	Scope
    of Work	 	Finish
    Date
	71	 	 	 	2501.03 Outdoor Patio/Kitchen - Implement the
    "Take Flight- outdoor kitchen concept (Island `v/stainless steel grills and upscale seating, pergola, string
    S4, sconce lighting, upscale lounge seating with removable cushions, upscale decorative outdoor trash container, Wi-Fi, music,
    outdoor planters, etc. Refer to the Take Flight Design Guide.).	 	12 Months
	 	 	 	 	 	 	 
	72	 	 	 	2512.04 0 - Guest Bathrooms - Remove all existing acrylic tub/surround
    units. Provide cast iron, porcelain over steel, or Vikrell tubs as manufactured by Sterling. Install brand approved surrounds
    as outlined in Homewood Suites Brand Standards. The tub/shower surrounds must extend to the ceiling, coordinate with rarity
    color, and have a matte finish.	 	12 Months
	73	 	 	 	2512.04 I - Guest Bathrooms - Install closed front toilet seats.	 	12 Months
	74	 	 	 	2512,02 A - Guest Bathrooms - Vanity area - install 12"(minimum)
    ceramic floor tile and matching base. The floor tile most be the same as the bath area ttoor.tile.	 	1? Months 
	75	 	 	 	2514.03 A - Guest Bathrooms —Replace all floor tile. Install
    new decorative.	 	12 Months
		 	 	 	porcelain fluor tile and matching base. Floor tile must be 12"
    iniritmiin.	 	
	76	 	 	 	2500.00 - Guest Bathrooms - Replace brass door hardware on the
    bath side of the; entry door. Install hardware to match the chronic or satinflxhires intlLial ft area. Exterior door hardware
    mast match entry door hardware. .	 	12 Months
	77	 	 	 	2512.09 C - Guest Bathrooms - Provide a single prong chrome towel
    hook to be,/:	 	 
	 	 	 	 	mounted in close proximity to the tub/shower.:.-.. -.	 	12 Months
	78	 	 	 	2512.02 B - Guest Bathrooms - Replace all vinyl wall covering.	 	12 Months
	79	 	 	 	2500.00 - Install drawer and door hardware (pulls and }mobs) on
    vanity, baseca binet.	 	12 Months
	..	 	 	 		 	 
	80	 	 	 	2500.00 - Bathroom Storage - remove per labile, wire basket storage
    units. Provide vanity base or other built-intorage unit that is upscale in presentation.	 	12 Months
	81	 	 	 	2512.06 - Guest Bathrooms — Vanity Mirror- Install bark—lit
    mirror over vanity sink. (Take Flight)	 	12 Months
	 	 	 	 	 	 	 
	82	 	 	 	2500.00 - Guest Bedrooms - Replace all Carpet, carpet pad, and
    carpet base.Months	 	12 Months
	 	 	 	 	 	 	 
	83	 	 	 	2510.00 - Guest Bediooms - Replae&all case goods.12 Months	 	 
	84	 	 	 	Std 2510.05.B -Bed bases mush be 7 1/2' high. Replace current bed
    bases to neestandards	 	12 Months
	85	 	 	 	2510.02 KGpest Bedrooms., Install metal stops at all
    windows to ensure no more than 47,6petiirg of WiridoWis allowed.	 	12 Months
	86	 	 	 	251,0102 K - Gitest Bedrooms - Install solid surface material or
    granite window	 	 
	"S:,	 	 	 	12 Months	 	 
	87	 	 	 	15] 0,06 1.3.:Gu&st BedoSoms - Replace all artwork.	 	12 Months
	88	 	 	 	2 '!n]'',..00 - Chtest Bedrooms - Upgrade all window
    treatments; ensuring valance,	 	 
	 	 	 	 	she'ers, black-Opt panels and stationary side pawls are in place.
    ,		12 Months
	89	 	 	 	2510.06 D - Girest Bedroom - Ceiling fans (hugger-type) are required
    in the bedrooms of all Suites and Studio Suites, Fans must be controlled by a wall Aritch. ;Pull chains are not
    allowed.	 	12 Months
	90	 	 	 	2510.06 C - Guest Bedrooms - Replace lighting package. Install
    a new Holiwood approved lighting package. (To include beveled switches and electrical outlets).	 	12 Months
	91	 	 	 	2510.06 - Guest Bedroom — Headboard - Install "fake
    Flight" upholstered headboard.	 	12 Months
	92	 	 	 	2510.03 Guest Bedroom - Headboard Well - install tonal accent wall
    vinyl headboard -wall. Bold or bright colors are not accept abel for the headboard accent wall.	 	12 Months
	 	 	 	 	2510.03 D- Guest Kitchens - Install 1 2x12" tile, or plank
    tile. Install wood or tile base to snatch.	 	12 Months
	94	 	 	 	2510.10 - Kitchen - Replace kitchen chairs.	 	12 Months
	95	 	 	 	2510.03 E - Kitchens - Install IleV7wall vinyl in litchenlareakfast
    counter area.	 	12 Months

 

    	 

    	 

    

 

EXHIBIT A - PRODUCT IMPROVEMENT PLAN

 

	 	 	 	 	2510.10 D - Guest Kitchens - Replace all mismatched appliances. Microwave,
    refrigerator and dishwasher must be stainless steel. Cooktop must be black or stainless steel. All appliance must be Energy
    Star rated_	 	12 Months
	97	 	 	 	2500 00 - Gust Kitchens - add pulls and knobs to kitchen cabinetry.	 	12 11 onths
	98	 	 	 	2510.06.D. - Guest Kitchens - Pendant Light - install decorative pendant over -tater'
    table	 	12 Months
	49	 	 	 	2510,03.B. - Guest Kitchens - Accent wall - install tonal accent wall vinyl in kitchen	 	12 Months
	 	 	 	 	LI lattagAIM	 	 
	100	 	 	 	2510.03 E - Guest Parlors - Replace all carpet carpet pad, and carpet base.	 	24 Months
	101	 	 	 	2510.02 K - Gust Parlors - Install solid surface material or granite window sills.	 	12 Months
	102	 	 	 	2500.00 Gust Parlors - Install metal "stop° at all windows to ensure no more than
    4" window opening is allowed.	 	12 Months
	103	 	 	 	2500.00 Guest Parlors - Remove silk plants form suites. (No longer required per 2012 standards).	 	12 Months
	104	 	 	 	2515.00 - Guest Parlors - Upgrade all window treatments to include a valance, sheers, black-out
    panels and stationary panels are lupine.	 	12 Months
	105	 	 	 	2510.00 - Guest Parlors - Replace all case goods.	 	12 Months
	106	 	 	 	2510.06 C- Guest Parlors - Replace lighting package. Install a new voltII	 	 
	 	 	 	 	lighting package.	 	12 Months
	107	 	 	 	2510.01 - Guest suites - Provide cover plates (gmstroorn side) ter entrance door viewers	 	12 Months
	108	 	 	 	2510.01 C - Guest Parlors - Install an approved auxiliary lock on all connecting	 	 
	doors..	 	 	 	12 Morals	 	 
	109	 	 	 	2510.06.A. - Glit Parlors—Cocktail Ottoman - Replace coffee table. Install:an upholstered
    cocktail ottoman with a wrap-over parsons table • . •	 	12 Months
	110	 	 	 	2510.00 - Parlors - Replace all seating (fabric worn and discolored)°	 	12 Months

 

The improvements identified in this property improvement plan
("PIP") relevant to the brand specified on the cover page of this PIP ("Brand") ar,e,based on,tonditions at
the hotel existing on the Inspection Date specified on the cover page of thiS PIP ("InSpection Date"). This PIP and
any specified waivers of relevant brand standards are only'effeclive for the purpose of incorporation by reference into a fully
executed and datetliagreement relat ing to the implementation of the PIP ("Relevant Agreement) With the affiliate‘Oititf:Or'Ililton
Worldwide, Inc. that is party to such Relevant Agreement ("Hilton"), if _such RelOrAitt Agreement is entered into within
180 calendar days of the Inspection Date. In the 'event that aRelevant Agreement is not entered into within 180 calendar clays
of the Inspection Date;-,an updated PIP may be required (in Hilton's absolute discretion). The preparatiort:andtor
supply of this PIP shall not obligate Hilton (or any affiliate of Hilton) to en ter into anyeReleV:Mt Agreeinent (including,
but not limited to, a franchise agreement or a management agreeinent).

,

This PIP review islimitato,aesthette and
functional layout and design, and certain functional, operational and, qual ity criteilaas/sPecified by Hilton. It
does not encompass, and Hilton does not make any repreSentiitien or Wiri.anty as to, nor shall Hilton be responsible for, the
architectural, structural, thedianical, 'or electrical adequacy, accessibility requirements or other compliance with applicable
government or other legal reqUirements. Compliance is required with brand standards (including4he..fire safety and security equipment
standards specified by Hilton), all applicable local, state shish federal building codes, any legally mandated accessibility requirements
anti all other legal requirements. Accordingly, Hilton recommends that its eennterparty(ies) engage an appropriate professional
team and legal counsel to advise on such compliance. Any omission in this PIP report does not constitute a waiver of such requirements
and does not release any obligation in any Relevant Agreement to conform to brand standards. Nothing in this PIP is intended to
modify the terms of any Relevant Agreement to which it may be attached and/or incorporated by reference. In the event of any conflict
of the terms, the terms of the Relevant Agreement are the terms that prevail.

 

The works set out in this PIP are required
to be completed by the specified "Finish Date", All "Finish Dates" that are a specified number of months or
days shall mean the number of months or days from the date of the Relevant Agreement into which the PIP is incorporated by reference.

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