Document:

Form of Stock Option Agreement dated as of June 15, 2004

 Exhibit 10.2 
  
 UNIVERSAL HOSPITAL SERVICES, INC. 
 STOCK OPTION AGREEMENT 
 (Nonqualified Stock Option) 
  
 STOCK OPTION AGREEMENT (this “Option Agreement”) entered into as of June 15, 2004 by and between
Universal Hospital Services, Inc., a Delaware corporation (the “Company”), and Rex Clevenger (the “Optionee”). 
  
 WHEREAS, the Company has decided to grant the Optionee a non-qualified stock option to acquire shares of the Company’s common stock, $0.01 par
value per share (“Shares”), in accordance with the Universal Hospital Services, Inc. 2003 Stock Option Plan (the “Plan”); and 
  

WHEREAS, the Optionee desires to accept such option subject to the terms and conditions of this Option Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the Company and the Optionee, intending to be legally bound, hereby agree as follows: 
  
 1. Grant of Option. As of June     , 2004 (the “Grant Date”), the Company grants to the Optionee a
nonqualified stock option (the “Option”) to purchase all (or any part) of 1,000,000 Shares on the terms and conditions hereinafter set forth. This Option is not intended to be treated as an incentive stock option under Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 2. Exercise Price. The exercise price (“Exercise Price”) for the Shares covered by the Option shall be $1.00 per share. 
  
 3. Exercisability. 
  
 (a) Fixed Vesting Options. This Option shall become exercisable with respect to 83,250 Shares upon each of November 1, 2005, November 1, 2006,
November 1, 2007 and November 1, 2008. All Options subject to vesting pursuant to this Section 3(a) (the “Fixed Vesting Options”) shall become exercisable upon a Change in Control (as defined in Section 14b) if the Optionee
continues to be an employee (or a director or consultant, as applicable) of the Company or any Subsidiary at such time, to the extent not then exercisable. 
  
 (b) Target Vesting Options. This Option shall become exercisable with respect to up to 133,400 Shares (the “Annual Eligible
Shares”) following the completion of each of the fiscal years ending December 31, 2004, 2005, 2006, 2007 and 2008 upon and to the extent of the Company’s attainment of the Targets set forth on Schedule I attached hereto and
incorporated herein (“Schedule I”) in accordance with the other terms specified in Schedule I. As a point of clarification, if all of the Targets set forth on Schedule I attached hereto are met or exceeded, Options to purchase an
aggregate of 667,000 Shares shall become exercisable following the completion of the applicable Target time periods pursuant to this subsection 3(b). Notwithstanding the foregoing, provided that (i) Optionee shall continue to be an employee, 

  

 
director or consultant of the Company or a Subsidiary, and (ii) the Company shall not have (A) merged or consolidated with another corporation or other
entity, whether or not the Company is the surviving entity, or (B) liquidated or sold or otherwise disposed of all or substantially all of its assets to another entity, or (C) been subject to a Change in Control, then this Option shall become
exercisable with respect to all of the Shares subject to vesting pursuant to this Section 3(b) (the “Target Vesting Options”) on the eighth (8th) anniversary of the Grant Date. 
  
 4. Term of Options. 
  
 (a)
Each Option shall expire on the tenth anniversary of the Grant Date, unless terminated earlier pursuant to subsections 4(b) and 4(c) below. 
  
 (b) If the Optionee is terminated from his or her employment/consultancy for Cause (as defined in Section 14) or voluntarily terminates his
employment/consultancy with the Company at any time without Good Reason (as defined Section 14) or, if the Optionee is a director, the Optionee is removed as a director for Cause (as defined in Section 14), the Option shall terminate on the date of
such termination of employment, whether or not then fully exercisable. 
  
 (c) If the Optionee dies, is Disabled (as defined in Section 14) while an employee/consultant/director, or is terminated without Cause, or terminates for Good Reason, or, if the Option is a director, is removed without Cause or otherwise
resigns as a director, any portion of the Option that is not then fully exercisable shall terminate immediately; provided, however, that the Board of Directors or committee appointed by the Board of Directors for purposes of administration and
operation of the Plan (the “Committee”) shall have the discretion to vest any Options that are not exercisable. Any portion of the Option that is then exercisable shall terminate on the 90th day following such termination of
employment. 
  
 5. Manner of Exercise of Option.

  
 (a) The Optionee may exercise the Option or portion thereof by
giving written notice to the Company stating the number of Shares (which shall not be less than 100, unless the total Shares purchased constitute the total number of Shares remaining subject to the Option) to be purchased and accompanied by payment
in full of the Exercise Price for such Shares. Payment shall be in cash by wire transfer of immediately available funds to an account specified by the Company by a certified or bank cashier’s check payable to the Company, or at any time Shares
are registered under Section 12 of the Securities Exchange Act of 1934, as amended, by means of a “cashless exercise” approved by the Committee, in which a broker: (i) transmits the Exercise Price for any Shares to the Company in cash or
acceptable cash equivalents, either (A) against the Optionee’s notice of exercise and the Company’s confirmation that it will deliver to the broker stock certificates issued in the name of the broker for at least that number of Shares
having a fair market value equal to the Exercise Price therefor, or (B) as the proceeds of a margin loan to the Optionee; or (ii) agrees to pay the Exercise Price therefor to the Company in cash or acceptable cash equivalents upon the broker’s
receipt from the Company of stock certificates issued in the name of the broker for at least that number of Shares having a fair market value equal to the Exercise Price therefor. The Optionee’s written notice of exercise of the Option pursuant
to a “cashless exercise” procedure must include the name and address of the broker involved, a clear description of the procedure, and such other information or undertaking by the broker as the Committee shall reasonably require. Upon such
purchase, delivery of a certificate 

  

 
for paid-up, non-assessable Shares shall be made at the principal office of the Company to the Optionee (or the person entitled to exercise the Option
pursuant to Section 7), not more than 10 days from the date of receipt of the notice by the Company. 
  
 (b) Notwithstanding Section 5(a) of this Option Agreement, the Company may delay the issuance of Shares covered by the Option and the delivery of a
certificate for such Shares until one of the following conditions is satisfied: (i) the Shares purchased pursuant to the Option are at the time of the issuance of such Shares effectively registered or qualified under applicable federal and state
securities laws or (ii) such Shares are exempt from registration and qualification under applicable federal and state securities laws. 
  
 6. Administration. This Option Agreement shall be administered by the Committee pursuant to the Plan. The Committee shall be authorized to
interpret this Option Agreement and to make all other determinations necessary or advisable for the administration of this Option Agreement. The determinations of the Committee in the administration of this Option Agreement, as described herein,
shall be final and conclusive. Each of the Chief Executive Officer, the Chief Financial Officer and the Senior Vice President, Human Resources of the Company shall be authorized to implement this Option Agreement in accordance with its terms and to
take such actions of a ministerial nature as shall be necessary to effectuate the intent and purposes thereof. 
  
 7. Non-Transferability. Subject to the terms of the Stockholders Agreement (as defined below), the right of the Optionee to exercise the Option
shall not be assignable or transferable by the Optionee otherwise than by will or the laws of descent and distribution, and such Shares may be purchased during the lifetime of the Optionee only by him (or his legal representative in the event that
the Optionee is Disabled). Any other such transfer shall be null and void and without effect upon any attempted assignment or transfer, except as hereinabove provided, including without limitation any purported assignment, whether voluntary or by
operation of law, pledge, hypothecation or other disposition contrary to the provisions hereof, or levy of execution, attachment, trustee process or similar process, whether legal or equitable, upon the Option. 
  
 8. Representation Letter and Investment Legend. 
  
 (a) In the event that for any reason the Shares to be issued upon exercise of
an exercisable Option shall not be effectively registered under the Securities Act of 1933, as amended (the “1933 Act”), upon any date on which the Option is exercised, the Optionee (or the person exercising the Option pursuant to
Section 7) shall give a written representation to the Company in the form attached hereto as Exhibit A, and the Company shall place the legend described on Exhibit A, upon any certificate for the Shares issued by reason of such exercise. 

 
 (b) The Company shall be under no obligation to qualify Shares or to cause
a registration statement or a post-effective amendment to any registration statement to be prepared for the purposes of covering the issue of Shares; provided, that the Company will use its reasonable best efforts to comply with any available
exemption from registration and qualification of the Shares under applicable federal and state securities laws. 
  

 9. Adjustments upon Changes in Capitalization. 
  
 (a) In the event that the outstanding Shares are changed into or exchanged
for a different number or kind of shares or other securities of the Company or of another corporation by reason of any reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, combination of shares, or dividends
payable in capital stock, appropriate adjustment shall be made in the number and kind of shares, and the Exercise Price therefor, as to which the Option, to the extent not theretofore exercised, shall be exercisable. 
  
 (b) Unless otherwise determined by the Committee in its sole discretion, in
the case of a Change in Control (as hereinafter defined) of the Company, the purchaser(s) of the Company’s assets or stock may, in his, her or its discretion, deliver to the Optionee, to the extent that the Option has become exercisable, the
same kind of consideration (net of the Exercise Price for such Shares) that is delivered to the stockholders of the Company as a result of the Change in Control, or the Committee may, in its sole determination, cancel the Option, to the extent not
theretofore exercised, in exchange for consideration in cash or in kind, which consideration in either case shall be equal in value to the value of those shares of stock or other consideration the Optionee would have received had the Option been
exercised (to the extent the Option has become exercisable but not been exercised) and no disposition of the Shares acquired upon such exercise been made prior to the Change in Control, less the Exercise Price therefor. Upon receipt of such
consideration by the Optionee, the Option shall immediately terminate and be of no further force and effect, with respect to both exercisable and unexercisable portions thereof. The value of the stock or other securities the Optionee would have
received if the Option had been exercised shall be determined in good faith by the Committee. 
  
 (c) Upon dissolution or liquidation of the Company, the Option shall terminate, but the Optionee (if at such time an Employee or consultant) shall have the right, immediately prior to filing of a certificate of
dissolution or liquidation, to exercise any then exercisable Options. 
  
 (d) No fraction of a Share shall be purchasable or deliverable upon the exercise of the Option, but in the event any adjustment hereunder of the number of shares covered by the Option shall cause such number to include a fraction of a
share, such fraction shall be adjusted to the nearest smaller whole number of shares. 
  
 10. No Employment Rights Conferred. Nothing contained in this Option Agreement shall be construed or deemed by any person under any circumstances to bind the Company or any of its subsidiaries to continue the
employment of the Optionee for the period within which this Option may be exercisable or for any other period. 
  
 11. Rights as a Stockholder. The Optionee shall have no rights as a stockholder with respect to any Shares which may be purchased upon the
exercisability of this Option unless and until a certificate or certificates representing such Shares are duly issued and delivered to the Optionee. Except as otherwise expressly provided herein, no adjustment shall be made for dividends or other
rights for which the record date is prior to the date the stock certificate is issued. 
  
 12. Withholding Taxes. The Optionee hereby agrees, as a condition to any exercise of the Option, to provide to the Company an amount sufficient to satisfy its obligation to withhold federal, state and local
taxes arising by reason of such exercise (the “Withholding Amount”), if 

  

 
any, by (a) authorizing the Company to withhold the Withholding Amount from his cash compensation, or (b) remitting the Withholding Amount to the Company in
cash; provided that, to the extent that the Withholding Amount is not provided by one or a combination of such methods, the Company may at its election withhold from the Shares delivered upon exercise of the Option that number of Shares having a
fair market value (in the good faith judgment of the Committee) equal to the Withholding Amount. 
  
 13. Execution of Stockholders Agreement. The Optionee acknowledges that he has previously executed and delivered the stockholders agreement by and
among the Company and the stockholders of the Company named therein (the “Stockholders Agreement”). The Optionee further agrees that this Option Agreement, the Option and all Shares acquired by him upon exercise of the Option will
be subject to the terms and conditions of the Stockholders Agreement, as the same may be amended or modified in accordance with its terms. 
  
 14. Definitions. The following terms shall have the following meanings when used in this Agreement and Schedule I to this Agreement: 
  
 (a) “Cause,” shall have the meaning set forth in the
executed written employment agreement, offer letter or term sheet between the Optionee and the Company (or a subsidiary thereof) or, in the absence of such employment agreement, offer letter or term sheet, the occurrence of any of the following
during the term of the Optionee’s employment with the Company (or a subsidiary thereof): 
  
 (i) the Optionee has failed to perform substantially his duties or has performed his duties negligently; 
  
 (ii) the Optionee has committed any serious crime or
offense, as determined by the Board of Directors or the Committee in their respective sole discretion; 
  
 (iii) the Optionee has failed or refused to comply with any oral or written policy or directive of the Committee; 
  
 (iv) the Optionee has breached any provision or covenant
contained in this Option Agreement. 
  
 (b) “Change in
Control” shall mean when (i) any person, or any two or more persons acting as a group, and all affiliates of such person or persons (a “Group”) (other than any person or Group affiliated with J.W. Childs Associates L.P.),
who prior to such time beneficially owned less than 50% of the then outstanding capital stock of the Company shall acquire shares of the Company’s capital stock in one or more transactions or series of transactions, including by merger, and
after such transaction or transactions such person or Group and affiliates beneficially own 50% or more of the Company’s outstanding capital stock, or (ii) the Company shall sell all or substantially all of its assets to any Group (other than
any person or Group affiliated with J.W. Childs Associates L.P.) which, immediately prior to the time of such transaction, beneficially owned less than a majority of the then outstanding capital stock of the Company. 
  
 (c) “Disabled” shall have the meaning set forth in the
executed written employment agreement, offer letter or term sheet between the Optionee and the Company (or a subsidiary thereof) or, in the absence of such employment agreement, offer letter or term sheet, the 

  

 
Optionee shall be deemed to have become “Disabled” if, during the term of the Optionee’s employment with the Company (or a subsidiary
thereof), the Optionee shall become physically or mentally disabled, whether totally or partially, either permanently or so that the Optionee, in the good faith judgment of the Committee, is unable substantially and competently to perform his duties
on behalf of the Company (or a subsidiary thereof) for a period of 90 consecutive days or for 90 days during any six month period during the term of employment. In order to assist the Committee in making that determination, the Optionee shall, as
reasonably requested by the Committee, (i) make himself available for medical examinations by one or more physicians chosen by the Committee and (ii) grant to the Committee and any such physicians access to all relevant medical information
concerning him, arrange to furnish copies of his medical records to the Committee and use his best efforts to cause his own physicians to be available to discuss his health with the Committee. 
  
 (d) “EBITDA” shall have the meaning set forth in Schedule I.

  
 (e) “Good Reason,” with respect to the
Optionee, shall have the meaning attributed to it under the executed written employment agreement, offer letter or term sheet between the Optionee and the Company (or a subsidiary thereof) or, in the absence of such employment agreement, offer
letter or term sheet, “Good Reason” shall be deemed to have occurred if, other than for Cause, during the term of the Optionee’s employment with the Company (or a subsidiary thereof) the Optionee’s base salary has been
reduced or the method under which the Optionee’s bonus is calculated has been amended in a manner materially adverse to the Optionee, other than in connection with a reduction of executive compensation imposed by the Committee generally on
management employees in response to negative financial results or other adverse circumstances affecting the Company or its subsidiaries. 
  
 (f) “Person” shall mean an individual, corporation, partnership, limited liability company, trust, unincorporated association, government
or any agency or political subdivision thereof, or any other entity. 
  
 15. Governing Law. This Option Agreement shall be governed by the laws of the State of Delaware, without regard to any conflicts of law principles thereof that would call for the application of the laws of any other jurisdiction. Any
action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Option Agreement may be brought against either of the parties in the courts of the State of Delaware, or if it has or can acquire jurisdiction, in
the United States District Court for the District of Delaware, and each of the parties hereby consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue
laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any party anywhere in the world, whether within or without the State of Delaware. 
  
 16. Incorporation of Terms of Plan. This Option Agreement shall be interpreted under, and in accordance with, all of
the terms and provisions of the Plan, which are incorporated herein by reference. 
  

 IN WITNESS WHEREOF, the Company has caused this Stock Option Agreement to be executed, by its
officer thereunto duly authorized, and the Optionee has executed this Stock Option Agreement, all as of the day and year first above written. 
  

									
	UNIVERSAL HOSPITAL SERVICES, INC.	 	 	 	OPTIONEE
				
	 By:
	 	 /s/ Gary D. Blackford
	 	 	 	 /s/ Rex Clevenger

	 Name:
	 	 Gary D. Blackford
	 	 	 	 Rex Clevenger:

	 Title:
	 	 President & CEO
	 	 	 	  
  
 Address:

				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 
				
	 	 	 	 	 	 	 Telecopier
Number:                                       
                         

				
	 	 	 	 	 	 	Social Security
Number:                                       
                 

  

 SCHEDULE I 
  

TARGET VESTING SCHEDULE 
  
 (a) Subject to adjustment as provided in (b) and (f) below, for each of the Target Periods specified below, if the Company’s EBITDA (as defined
below) in any such Target Period is equal to or greater than the Base EBITDA Target for such Target Period as specified below, the Target Vesting Options will vest and be exercisable with respect to the Annual Eligible Shares. If the Company’s
EBITDA for any Target Period exceeds 90% of the Base EBITDA Target for such Target Period, then the amount of Target Vesting Options that will vest for each such Target Period will be that percentage of the Annual Eligible Shares determined
according to a linear extrapolation of the amount by which the Company’s EBITDA exceeds 90% of the Base EBITDA Target, such that achievement of 91% of the Base EBITDA Target would result in vesting of 10% of the Annual Eligible Shares and
achievement of 100% or more of the Base EBITDA Target would result in vesting of 100% of Annual Eligible Shares. 
  
 TABLE A 
  

									
	 Target Period

	  	 Annual Eligible Shares

	  	 Base
 EBITDA Target
 (000’s)

	  	 Maximum Capital
 Expenditures
 (000’s)

	 Fiscal 2004
	  	20% of Target Vesting Shares	  	$	76,000	  	$	48,200
	 Fiscal 2005
	  	20% of Target Vesting Shares	  	$	86,000	  	$	56,100
	 Fiscal 2006
	  	20% of Target Vesting Shares	  	$	97,000	  	$	67,100
	 Fiscal 2007
	  	20% of Target Vesting Shares	  	$	110,000	  	$	77,900
	 Fiscal 2008
	  	20% of Target Vesting Shares	  	$	125,000	  	$	92,300

  
 Notwithstanding the foregoing,

  
 (i) Excess EBITDA in any Target Period then
ended (i.e., the amount by which EBITDA for such Target Period exceeds the Base EBITDA Target for such Target Period) may be carried back to the prior Target Period to permit vesting of Annual Eligible Shares not previously vested, provided that (A)
cumulative EBITDA for all Target Periods then ended exceeds the 90% of the cumulative Base EBITDA Targets for all Target Periods then ended and (B) the Annual Eligible Shares from the prior Target Period shall vest in a linear extrapolation of the
amount by which the Company’s cumulative EBITDA for all Target Periods then ended exceeds 90% of the cumulative Base EBITDA Targets for such periods, such that achievement of 91% of the cumulative Base EBITDA Targets would result in vesting of
10% of the Annual Eligible Shares not previously vested and achievement of 100% or more of the cumulative Base EBITDA Targets would result in vesting of 100% of Annual Eligible Shares not previously vested; and 
  
 (ii) if (A) for the fiscal year ended December 31, 2008 (the
“Final Target Period”), EBITDA exceeds the Base EBITDA Target for the Final Target Period and (B) the cumulative EBITDA for all five Target Periods exceeds the cumulative Base EBITDA Targets for all five periods, then the Target
Vesting Options shall become exercisable with respect to 100% of the Shares (to the extent not theretofore vested in accordance with this Schedule I). 
  

 (b) Base EBITDA Targets will be adjusted by the Committee in good faith (i) in the event that the
Company’s capital expenditures for the Target Period exceed the Maximum Capital Expenditures specified for that Target Period (provided that if the Company spends less than the Maximum Capital Expenditures for a Target Period, then such amount
of “under spent” capital expenditures can be applied to the next succeeding Target Period to increase the Maximum Capital Expenditures permitted for such succeeding Target Period) and (ii) in the event the Company acquires or merges with
any other company and such acquisition or merger does not qualify as a Change in Control of the Company, to take into account the additional EBITDA expected to be generated by the recently acquired business for Target Periods ending after the date
of such acquisition or merger. 
  
 (c) In the event a Change in
Control of the Company occurs before the end of the fiscal year ending December 31, 2008, and the Optionee is still employed/retained by the Company at such time, any Target Vesting Options subject to vesting for Target Periods ending after such
Change in Control shall become exercisable to the same extent and in the same percentage as the percentage of Target Vesting Options that had previously become exercisable bears to the percentage of Target Vesting Options that were eligible to
become exercisable in all preceding fiscal years (e.g., if 50% of the eligible options had become vested in the Target Periods prior to a Change in Control, then 50% of the unvested options relating to Target Periods after the Change in Control
would become vested). 
  
 (d) In the event that on or prior to
December 31, 2008, J.W. Childs Equity Partners III, L.P. (“Childs”) and its affiliates and Halifax Capital Partners, L.P. each receive a net cash return (after dilution from all options) on their total investment in the Company
resulting in an amount of cash equal to the multiple of their total investment in the Company indicated below, all Target Vesting Options will become exercisable to the extent not then exercisable: 
  

					
	 2 1/2 Times
	  	Before 12/31/06	    	 
			
	 3 1/4 Times
	  	After    01/01/07	    	But before 12/31/07
			
	 4 Times       
	  	After    01/01/08	    	But before 12/31/08

  
 (e)
“EBITDA” shall mean consolidated earnings of the Company and its subsidiaries, including equity in the earnings from non-consolidated subsidiaries, before interest, taxes, depreciation, amortization, board fees and expenses,
non-cash stock compensation or option expense and other similar charges, unusual and non-recurring items approved by the board or Committee and the management fees paid to J.W. Childs Associates, L.P. and Halifax Capital Partners, L.P., or any of
their respective affiliates, and after deduction of all operating expenses, minority interest expenses and incentive compensation, all as calculated in accordance with generally accepted accounting principles consistently applied, as reflected in
the Company’s audited consolidated financial statements. For purposes of calculating EBITDA, in the event that the Company makes an acquisition or disposition of any assets or business, the Committee, in good faith, shall adjust EBITDA for any
fiscal year to include or exclude on a pro forma basis, as applicable, the EBITDA for such assets or business for the period of time the assets or business are not owned by the Company for the fiscal year in which the assets or business are acquired
or sold. 
  

 EXHIBIT A 
  

TO 
 STOCK OPTION AGREEMENT

  
 In connection with the purchase by me of 1,000,000 shares
of common stock, $0.01 par value per share, of Universal Hospital Services, Inc., a Delaware corporation (the “Company”) under the nonqualified stock option granted to me pursuant to that certain Stock Option Agreement dated June
15, 2004 (the “Option Agreement”), I hereby acknowledge that I have been informed as follows: 
  
 1. The shares of common stock of the Company to be issued to me upon exercise of said option have not been registered under the Securities Act of 1933, as
amended (the “Act”), and accordingly, must be held indefinitely unless such shares are subsequently registered under the Act, or an exemption from such registration is available. 
  
 2. Routine sales of securities made in reliance upon Rule 144 under the Act
can be made only after the holding period and in limited amounts in accordance with the terms and conditions provided by that Rule, and with respect to which that Rule is not applicable, registration or compliance with some other exemption under the
Act will be required. 
  
 3. The Company is under no obligation to
me to register the shares or to comply with any such exemptions under the Act, other than as set forth in the Stockholders Agreement referenced and defined in paragraph 13 of the Option Agreement (the “Stockholders Agreement”).

  
 4. The availability of Rule 144 is dependent upon adequate
current public information with respect to the Company being available and, at the time that I may desire to make a sale pursuant to the Rule, the Company may neither wish nor be able to comply with such requirement. 
  
 5. The shares of common stock of the Company to be issued to me upon the
exercise of said option are subject to the terms and conditions, including restrictions on transfer, of the Stockholders Agreement. 
  
 In consideration of the issuance of certificates for the shares to me, I hereby represent and warrant that I am acquiring such shares for my own account
for investment, and that I will not sell, pledge, hypothecate or otherwise transfer such shares in the absence of an effective registration statement covering the same, except as permitted by an applicable exemption under the Act. In view of this
representation and warranty, I agree that there may be affixed to the certificates for the shares to be issued to me, and to all certificates issued hereafter representing such shares (until in the opinion of counsel, which opinion must be
reasonably satisfactory in form and substance to counsel for the Company, it is no longer necessary or required) a legend as follows: 
  
 “The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
and may not be sold, transferred, 

  

 
offered for sale, pledged or hypothecated in the absence of an effective registration statement as to the securities under the Act or an opinion of counsel
satisfactory to the corporation and its counsel that such registration is not required.” 
  
 “The securities represented by this certificate are subject to the terms and conditions, including restrictions on transfer, of a Stockholders Agreement among the Universal Hospital Services, Inc. and its
stockholders dated as of October 17, 2003, as amended from time to time, a copy of which is on file at the principal office of the corporation.” 
  
 I further agree that the Company may place a stop order with its transfer agent, prohibiting the transfer of such shares, so long as the legend remains on
the certificates representing the shares. 
  
 I hereby represent
and warrant that: My financial situation is such that I can afford to bear the economic risk of holding the shares issued to me upon exercise of said option for an indefinite period of time, I have no need for liquidity with respect to my investment
and have adequate means to provide for my current needs and personal contingencies, and can afford to suffer the complete loss of my investment in such shares. 
  

(a) I am either (please check one of the following): 
  

					
	1.	  	 ̈	  	an “accredited investor” within the meaning of Rule 501(a) under the Act, a copy of which is annexed hereto as Annex I, and I, either alone or with my purchaser
representative (as such term is defined in Rule 501 under the Act), have such knowledge and experience in financial and business matters that I am capable of evaluating the merits and risks of my investment in the shares issued to me upon exercise
of said option. I have indicated the appropriate categories that apply to me in Annex I hereto.
			
	2.	  	 ̈	  	not an “accredited investor” within the meaning of Rule 501(a) under the Act, as I do not fulfill any of the categories set forth in Annex I, but I have such knowledge and
experience in financial and business matters that I am capable of evaluating the merits and risks of my investment in the shares issued to me upon exercise of said option.

  
 (b) I have been
afforded the opportunity to ask questions of, and to receive answers from, the Company and its representatives concerning the shares issued to me upon exercise of said option and to obtain any additional information I have deemed necessary.

  
 (c) I have a high degree of familiarity with the business,
operations, financial condition and prospects of the Company. 
  

	
	 Very truly yours,

	
	 /s/ Rex Clevenger

	 [Rex Clevenger]

  

 ANNEX I 
  
 The following are “accredited investors” for purposes of the offering and sale of Shares. 
  
 Please check all of the following categories that you fulfill. 
  

						
	 a.
	  	 ̈	 	  	a bank as defined in section 3(a)(2) of the Securities Act or a savings and loan association or other institution as defined in section 3(a)(5)(A) of the Securities Act, whether acting in its
individual or fiduciary capacity; broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934, as amended; insurance company as defined in section 2(13) of the Securities Act; investment company registered under the
Investment Company Act of 1940, as amended, or a business development company as defined in section 2(a)(48) of the Investment Company Act of 1940, as amended; Small Business Investment Company licensed by the U.S. Small Business Administration
under section 301(c) or (d) of the Small Business Investment Act of 1958; plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its
employees, if such plan has total assets in excess of $5,000,000; employee benefit plan within the meaning of the Optionee Retirement Income Security Act of 1974, as amended, if the investment decision is made by a plan fiduciary, as defined in
section 3(21) of such act, which plan fiduciary is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed
plan, with investment decisions made solely by persons that are accredited investors;
			
	 b.
	  	 ̈	 	  	a private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940, as amended;
			
	 c.
	  	 ̈	 	  	an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), a corporation, Massachusetts or similar business trust, or a
partnership, not formed for the purpose of acquiring the Securities offered, with total assets in excess of $5,000,000;
			
	 d.
	  	 ̈	 	  	a director or an executive officer of Universal Hospital Services, Inc.;
			
	 e.
	  	 ̈	 	  	a natural person whose individual net worth, individually or together with his or her spouse, exceeds $1,000,000;

  

						
	 f.
	  	 ̈	 	  	 (i)       a natural person who had an individual income* in excess of
$200,000 in both of the past two years and who reasonably expects reaching the same income level in the current year; or
  
 (ii)      a natural person who had a joint income* with his or her spouse in excess of $300,000 in
both of the past two years and who reasonably expects reaching the same income level in the current year;

			
	 g.
	  	 ̈	 	  	a trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities offered, whose purchase is directed by a person who either alone or with
his purchaser representative has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment, or Universal Hospital Services, Inc. reasonably believes
immediately prior to making any sale that such person comes within this definition;
			
	 h.
	  	 ̈	 	  	an entity in which all of the equity owners are accredited investors meeting one or more of the tests under subparagraphs (a) - (g)

	*	For all investors, the term “individual income” means adjusted gross income as reported for federal income tax purposes, less any income attributable to a spouse or to
property owned by a spouse, increased by the following amounts (but not included any amounts attributable to a spouse or to property owned by a spouse), and the term “joint income” means adjusted gross income as reported for federal income
tax purposes, including any income attributable to a spouse or to a property owned by a spouse, increased by the following amounts (including any amounts attributable to a spouse or to property owned by a spouse): (i) the amount of any interest
income received which is tax exempt under section 103 of the Code; (ii) the amount of losses claimed as a limited partner in a limited partnership (as reported on Schedule E of Form 1040); and (iii) any deduction claimed for depletion under section
611 et seq. of the Code.Exhibit 10.34

 Exhibit 10.34 
  
 TERMINATION AGREEMENT 
  
 BETWEEN 
  
 TRS LEASING, INC. 
  
 TRS SUBSIDIARY, LLC 
  
 AND 
  
 HUMPHREY HOSPITALITY MANAGEMENT, INC. 
  
 SUPERTEL HOSPITALITY MANAGEMENT, INC. 
  
 DATED AS OF JULY 20, 2004 
  

 TERMINATION AGREEMENT 
  
 THIS TERMINATION AGREEMENT (the “Agreement”) is made as of the 20th day of July, 2004, between TRS LEASING, INC.,
a Virginia corporation (“TRS”), and TRS SUBSIDIARY, LLC, a Delaware limited liability company (“TRS Sub” and, together with TRS, collectively, “Lessee”) and HUMPHREY HOSPITALITY MANAGEMENT, INC., a Maryland corporation
(“HHMI”) and SUPERTEL HOSPITALITY MANAGEMENT, INC., a Maryland corporation (“SHMI”) and wholly-owned subsidiary of HHMI (HHMI and SHMI are collectively referred to herein as “Operator”). 
  
 WITNESSETH: 
  
 WHEREAS, Lessee and Operator are parties to the First Amended and Restated
Management Agreement dated as of November 26, 2002 (the “Management Agreement”), with respect to the hotel properties described in Exhibit A attached to the Management Agreement (the “Managed Hotels”). 
  
 WHEREAS, Lessee may terminate the Management Agreement pursuant to the terms
thereof upon certain events if Lessee pays a termination fee to Operator equal to 50% of Operator’s basic and incentive fee for the prior 12 months, which termination fee as of May 1, 2004 hereof would equal an amount of approximately
$1,880,000. 
  
 WHEREAS, Lessee and Operator have mutually agreed
to terminate the Management Agreement effective as of the Termination Date (as hereinafter defined) with a payment of $500,000 by Lessee to HHMI subject to the terms and conditions described herein. 
  
 NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties do hereby agree as follows: 
  
 1. Termination of Management Agreement. 
  
 Subject to the terms and conditions set forth herein, the Management Agreement shall terminate as of the 31st day of July, 2004 (the
“Termination Date”). Lessee may request that Operator continue to manage one or more of the Managed Hotels after the Termination Date up to and through a mutually agreed upon date. Any and all management services provided by Operator
subsequent to the Termination Date will be provided pursuant to a separately executed management agreement, in form and content acceptable to Lessee and Operator. 
  
 2. Termination Payment. 
  
 As consideration for the termination of the Management Agreement and in satisfaction of any termination or similar fees otherwise payable
pursuant to the Management Agreement, Lessee shall deliver to HHMI the sum of Five Hundred Thousand Dollars ($500,000) (the “Termination Payment”) by wire transfer or in immediately available funds on the date hereof. 
  

 1 

 3. The Closing / Conditions Precedent. 
  
 (a) The closing of the transactions contemplated by this
Agreement is subject to the satisfaction or waiver of the conditions precedent set forth below in Section 3(b), Section 3(c) and Section 3(d) of this Agreement. Such closing shall take place on the date hereof by facsimile transmission and
counterpart signatures or at such other date and place as the parties may mutually agree (the “Closing”). 
  
 (b) At the Closing, Operator shall execute and deliver or cause to be executed and delivered the following to Lessee: 
  
 (i) an assignment and assumption agreement for the Managed
Hotel in the form acceptable to Lessee covering all agreements to be assigned and assumed as of the Closing (the “Assignment and Assumption Agreement”); 
  
 (ii) a certificate that the representations and warranties of Operator contained in Section 5(a) hereof are
true and correct in all material respects as of the Termination Date; 
  
 (iii) the resignation of James I. Humphrey, Jr. as director and officer of Humphrey Hospitality Trust, Inc. and its subsidiaries and affiliates. 
  
 (c) At the Closing, Lessee shall execute and deliver or cause to be executed and delivered the following to
Operator 
  
 (i) the Assignment and Assumption
Agreement for all of the operating agreements and contracts listed on Exhibit 1; 
  
 (ii) a certificate that the representations and warranties of Lessee contained in 5(b) hereof are true and correct in all material
respects as of the Termination Date. 
  
 (d) At
the Closing, SHMI shall assign its rights as a tenant of certain premises (“Leased Premises”) pursuant to a Lease Agreement dated October 27, 1999 (“Lease Agreement”) between Humphrey Hospitality Limited Partnership
(“HHLP”), as landlord, and SHMI, as tenant, to the new manager designated by Lessee, pursuant to an assignment and assumption agreement in a form acceptable to HHLP and the Lessee. Upon execution of the assignment by SHMI, SHMI shall have
no further obligations as a tenant under the Lease Agreement. 
  
 (e) If the assignment of any of the franchise agreements or license agreements with respect to the Managed Hotels by the Operator to Lessee or Lessee’s designee, requires the consent from a third person and such
consent shall not have been obtained prior to the Closing, then after the Closing, the Operator shall use its best efforts, and shall cooperate fully with the Lessee at Lessee’s request, to obtain any such consent. Until the earlier of the time
such consent is obtained or December 31, 2004, Operator will continue as a party to such franchise agreement or license agreement as directed by the Lessee. All benefits of, and risk arising out of or related to, direction by the Lessee to the
Operator with respect to such franchise agreement or license agreement following the Closing will be for the account of the Lessee. 
  

 2 

 4. Effect of Termination. 
  
 Effective on the Termination Date, the Management Agreement shall terminate and shall be null and void and
have no further force and effect, except for obligations and liabilities of the Operator, including the indemnities thereunder which, under the terms of the Management Agreement, survive any termination of the same. 
  
 5. Disclosure. 
  
 (a) Operator Representations and Warranties. Operator
hereby makes the following representations and warranties to Lessee: 
  
 (i) Litigation. To Operator’s knowledge, Exhibit 1 attached hereto sets forth a true and correct list of all pending and threatened actions, suits and proceedings against the Managed Hotels or Operator in
connection with the Managed Hotels as of the date of this Agreement. 
  
 (ii) Contracts. Exhibit 1 attached hereto sets forth a true and correct list of all agreements in effect with respect to the Managed Hotels. Except as set forth on Exhibit 1, the parties to the agreements are
in compliance with the provisions thereof, and none of the parties are in default in the performance, observance or fulfillment of their obligations therein, and no event has occurred that with or without the giving of notice or lapse of time, or
both, would constitute a default thereunder. Operator has not assigned or otherwise pledged the Management Agreement 
  
 (iii) Authority. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated
herein by Operator has been duly authorized by all necessary corporate action. This Agreement constitutes a valid and binding agreement of Operator, enforceable in accordance with its terms. 
  
 (iv) No Consents/Conflicts. Except for consents, if
any, described in Section 3(e), no consents, waivers or other actions by any third party are required in connection with the execution, delivery and performance of this Agreement by Operator. The execution, delivery and performance of this Agreement
by Operator will not (A) violate any judgment, order, injunction, decree, regulation or ruling of any court or governmental entity or (B) conflict or result in a breach of, or constitute a default under the articles of incorporation or by-laws of
Operator, or agreement to which Operator is a party or by which Operator is bound. 
  
 (v) Updating of Disclosures. Operator shall promptly update any of the information set forth in Exhibit 1 hereto to include
developments after the date hereof by delivering written notice of such new developments to Lessee. 
  
 (vi) Inventory. The Managed Hotels, as of the Closing shall be sufficiently stocked with inventory at levels consistent with past
operating practices for occupancy rates similar to the occupancy rates of the Managed Hotels over the six months preceding the Termination Date. 
  

 3 

 (vii) Operations. During the period from January 1, 2004 to the Termination Date
there will not have been, without the prior written consent of Lessee: 
  
 (A) Any change of the general policies or methods of operation of the Managed Hotels, any material increase in the supply levels, or any sales of, alterations to or changes in the Managed Hotels, or 
  
 (B) Any increase in the rates of compensation paid to
persons listed on Exhibit 2 or employees of Managed Hotels, other than in the ordinary course of business consistent with past practices, or 
  
 (C) Any mortgage or pledge, or any sale or transfer of any of the assets or equipment of the Managed Hotels, or 
  
 (D) Any other event or condition of any character which
materially adversely affects the Managed Hotels. 
  
 (viii) Employment Agreements. With respect to Operator employees who are employed in the operation or management of the Managed Hotels, except as specified and described on Exhibit 2, Operator has no employment agreements, or any
agreements that contain any severance or termination pay liabilities, or any obligations for any bonus, deferred compensation or similar amounts, and Operator has no employee with respect to whom there is any accrued or potential liability for sick
leave or vacation pay for periods up to the Termination Date. 
  
 (ix) Severance. Each person listed on Exhibit 2 is an employee of Operator and the amount of the Severance Payment (as defined in Section 6(c) below) for such person is the maximum and only severance liability
and/or accrued vacation due such person at the time of the Closing. 
  
 (x) Leased Premises. SHMI has used and maintained the Leased Premises, and has otherwise fully performed all of its other agreement and covenants in all material respects, as provided in the Lease Agreement.

  
 (b) Lessee Representations and
Warranties. Lessee hereby represents and warrants to Operator that the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein by Lessee has been duly authorized by all necessary
corporate, or limited liability company, action, as applicable except such consents described under Section 3(e) as may not be obtained as of the Closing. The parties executing this agreement on behalf of Lessee warrant they have the authority to
execute such agreement. This Agreement constitutes a valid and binding agreement of Lessee, enforceable in accordance with its terms. 
  

 4 

 6. Transition Procedures. 
  
 Operator, in addition to its transition obligations set forth in the Management Agreement, shall perform the
following (and the provisions of this Section 6 shall survive the expiration or termination of this Agreement until they have been fully performed) and, shall cooperate in good faith to effect an orderly transition of the management of the Managed
Hotels: 
  
 (a) Agreements. On the
Termination Date, Operator shall assign and deliver to TRS, with respect to the Managed Hotels leased by TRS, and to TRS Sub, with respect to Managed Hotels leased by TRS Sub, or their designee, and TRS, TRS Sub or their designee, as the case may
be, shall assume, the agreements identified in Exhibit 1 attached hereto which were previously entered into by Operator pursuant to its authority provided for in the Management Agreement and which are then in Operator’s, rather than TRS’s
or TRS Sub’s name provided, however, that if any such agreement is not permitted to be assigned. If any agreement shall require the consent of a third party and such consent shall not have been obtained prior to the Termination
Date, then this Agreement shall not constitute an assignment of such agreement unless and until such consent is obtained. Until such consent is obtained, such agreement will be continued in effect by Operator as directed by TRS or TRS Sub or its
designee and all benefits of, risks arising out of or related to, and all costs of, such agreement shall be for the account of TRS or TRS Sub or its designee. 
  

(b) Remittance. On the Termination Date, Operator shall remit to Lessee or their designee all funds remaining in Operator’s
possession or control which are the property of Lessee. 
  
 (c) Severance Payments. Lessee agrees to pay, on Operator’s behalf, any severance (consisting solely of salary-based severance obligations and accrued vacation pay) owed by Operator to any employee of
Operator listed on Exhibit 2 who does not accept employment offered by the new operator selected to operate and manage the Managed Hotels (“Severance Payments”). Lessee’s obligation for severance payments shall not exceed the amounts
set forth by the names of the employees of Operator listed on Exhibit 2. Lessee’s obligation hereunder is expressly conditioned on Operator’s representation in Section 5(ix) being true and correct and the full and faithful performance by
Operator of its obligations under Section 6(f), in addition to the other terms and conditions herein. 
  
 (d) Other Transfers and Deliveries. On the Termination Date, Operator shall assign, transfer and deliver to TRS or its designee (i)
keys to all portions of the Managed Hotels or any lockboxes, equipment or security devices maintained therein, (ii) all other items of property, information and materials relating to Operator’s discharge of its obligations under the Management
Agreement, and (iii) an assignment of all rights to the name “Supertel” or any derivation of such name. 
  
 (e) Temporary Continuation. At the reasonable request of Lessee in order to provide time for Lessee or the new manager to secure
licenses, permits or approval, Operator shall continue its performance hereunder under any license, permit or approval to the extent and for the period specified by Lessee, not to exceed four (4) months; provided, however, in return for such
continuation Lessee shall pay all “out-of-pocket” expenses of Operator with respect to such continued performance. 
  

 5 

 (f) Transition Cooperation. Operator agrees to fully cooperate with the third
party selected by Lessee to operate and manage the Managed Hotels in the transition of the operation from Operator to such third party. At or promptly after Closing, Lessee shall cease all use of the Humphrey trademark and logo which Lessee
acknowledges is the sole property of Operator and its affiliates; provided Operator agrees that Lessee may continue to use the Humphrey trademark and logo for a period not to exceed 30 days following the Closing to permit the substitution of the
successor operator’s trade materials in the Managed Hotels. Further, the parties acknowledge that this prohibition shall not apply to the use of the name “Humphrey Hospitality Trust, Inc.” by the parent corporation or the current use
of “Humphrey” in the name of any subsidiary of the parent corporation, provided, that (i) the parent corporation at or before its 2005 annual shareholders meeting seeks and recommends shareholder approval of a change of its
corporate name to a name that does not include “Humphrey” and (ii) subsidiaries with “Humphrey” in the subsidiary name change the subsidiary name as soon as practicable following the Closing to a name that does not include
“Humphrey.” 
  
 (g) Confidential
Information. Each party agrees that neither it nor its Affiliates (as defined in the Management Agreement) shall disclose to any third party or use to the detriment of the other party or its Affiliates any information (in any form or medium)
which is confidential or proprietary to the other party or its Affiliates, which in the case of Lessee shall include but not be limited to confidential or proprietary information related to the Managed Hotels, customer lists, contracts, or pricing
information, and shall hold any and all such information in strict confidence, for the sole and exclusive benefit of the other party and its Affiliates. In the event of a breach or a threatened breach by a party of this Section 6(g), the
non-breaching party shall be entitled to an injunction restraining the party breaching or threatening to breach from violating the terms of this Section 6(g). Nothing in this Section 6(g) shall be construed or prohibiting the non-breaching party
from pursuing any other available remedies for such breaches or threatened breaches, including recovery of damages from the other party. Information shall not be considered confidential or proprietary if such information (x) is available to the
public at the time of disclosure, otherwise than as a result of a breach of this Agreement, or (y) is disclosed pursuant to a lawful order of any instrumentality of the United States or any of the several states, but only to the extent of such
order. On the Termination Date, each party shall deliver promptly to the other any and all copies, records, notes, or other written, printed, or tangible materials pertaining to, or generated through the use of, confidential or proprietary
information relating to the other party or its Affiliates or, at the direction of the other party, shall destroy such items, provided, however, that each party shall make available to the other such copies of returned or destroyed documents as may
be necessary to enable the other party to file any tax returns or complete any audits. The provisions of this Section 6(g) shall survive this Agreement. 
  
 (h) Data Transfer Costs. Lessee shall pay or shall reimburse Operator for all costs of transferring data from Operator’s
computer systems to Lessee’s computer systems which have been incurred and invoiced to Operator. 
  
 (i) Financial Information Assistance. Operator currently provides financial and other information necessary for the preparation by
the Lessee and it affiliates of their financial statements. Operator agrees that following the Closing it will timely provide such information, consistent with past practices (or full and complete access to such information if employees of Operator
who customarily provide such information are employed by the Lessee or 

  

 6 

 
new manager following the Closing), to the Lessee and its affiliates for periods prior to the Closing which will be included in the financial statements of
Lessee and its affiliates prepared following the Closing. 
  
 (j) Benefit Plans. (i) The accounts in the Operator’s 401k Retirement Plan of the employees who accept employment with the new operator (“Transferred Employees”) will be transferred if directed
by a Transferred Employee to a Transferred Employee’s accounts in the new operator’s 401k plan when such plan is available. Operator will permit the continued participation by the Transferred Employees in Operator’s 401k Retirement
Plan but Operator is not required to accept further contributions of the Transferred Employees following the Closing. 
  
 (ii) The funds in the Transferred Employees’ flexible spending accounts (“FSAs”) maintained through Operator’s
employee benefits plans will continue to be available to such employees for the payment of health care, dependent care and other expenses permitted to be paid from the FSAs through December 31, 2004. 
  
 7. Indemnification. 
  
 The Operator agrees to indemnify, defend and hold harmless
Humphrey Hospitality Trust, Inc., TRS and TRS Sub and their respective affiliates, officers, directors, shareholders, employees and agents (collectively, the “Lessee Indemnified Parties”) from and against, and pay or reimburse the Lessee
Indemnified Parties for, any and all claims, demands, obligations, losses, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorneys’ fees, costs and expenses, and any and all actions, suits and
proceedings in respect thereof (collectively, “Liabilities”) relating to or arising from (i) the breach or nonperformance of any covenant or agreement of the Operator herein or in any document or instrument delivered in connection
herewith, or (ii) the failure of any representation and warranty made by the Operator herein to be true and correct in all respects. This indemnity shall survive the Termination Date, and is in addition to and not in replacement of Operator’s
indemnities under the Management Agreement. Payment of a Liability by a Lessee Indemnified Party shall not be a condition precedent to the obligations of the Operator under this indemnity. 
  
 The Lessee agrees to indemnify, defend and hold harmless
Operator and their respective affiliates, officers, directors, shareholders, employees and agents (collectively, the “Operator Indemnified Parties”) from and against, and pay or reimburse the Operator Indemnified Parties for Liabilities
relating to or arising from (i) the breach or nonperformance of any covenant or agreement of the Lessee herein or in any document or instrument delivered in connection herewith or of any agreements on Exhibit 1 which arise solely out of events which
occur following the Closing, (ii) the failure by Lessee to make Severance Payments as required by Section 6(e), if any, or (iii) events arising after the Closing with respect to the performance of any franchise agreement or license agreement by the
Operator at the direction of the Lessee pursuant to Section 3 (e). This indemnity shall survive the Termination Date, and payment of a Liability by an Operator Indemnified Party shall not be a condition precedent to the obligations of the Lessee
under this Indemnity. 
  
 If a claim for
Liabilities is to be made by a Lessee Indemnified Party or Operator Indemnified Party (each of which for purposes of this paragraph is referred to as an “Indemnified Party”), the Indemnified Party shall give written notice to the party
providing the 

  

 7 

 
indemnity (the “Indemnifying Party”) as soon as practicable after the Indemnified Party obtains knowledge of such claim. In any action, suit or
proceeding for which indemnification is sought under this Section 7, the Indemnifying Party shall have the right to select legal counsel, reasonably satisfactory to the Indemnified Party, to represent the Indemnified Party and to otherwise control
such action, suit or proceedings. If the Indemnifying Party elects to control such action, suit or proceeding, the Indemnified Party shall at all times have the right to fully participate in the defense at its own expense. If the Indemnifying Party
shall, within a reasonable time after notice, fail to defend, the Indemnified Party shall have the right, but not the obligation, to undertake the defense of and to compromise or settle the claim or other matter on behalf, for the account, and at
the risk of the Indemnifying Party. If the claim is one that cannot by its nature be defended solely by the Indemnifying Party then the Indemnified Party shall make available all information and assistance as the Indemnifying Party may reasonably
request, at the Indemnifying Party’s expense. No compromise or settlement of such third party claims may be effected by the Indemnifying Party without the Indemnified Party’s consent, which consent shall not unreasonably be withheld. If an
Indemnified Party determines in good faith that there is a reasonable probability that a third party claim may adversely affect it other than a result of monetary damages for which it would be entitled to indemnification under this Agreement, the
Indemnified Party may, by notice to the Indemnifying Party, assume the exclusive right to defend, compromise or settle such third party claim, but the Indemnifying Party will not be bound by any determination of any third party claim so defended for
the purposes of this Agreement or any compromise or settlement effected without its consent (which may not be unreasonably withheld). 
  
 8. Further Assurances. 
  
 Lessee and Operator hereby agree to cooperate in good faith with the other party and to execute and deliver such other agreements,
documents or instruments as may be necessary or desirable in connection with the transactions contemplated by this Agreement effecting the transfer of the operational control of the Managed Hotels resulting therefrom. Lessee and Operator each hereby
further agree to use their good faith reasonable commercial efforts to obtain consents and waivers from third parties, including franchisers, suppliers, vendors, employees, lessors, lessees, lenders, and other third parties necessary to effect the
transactions contemplated by this Agreement. 
  

 8 

 9. Notices. 
  
 Any notice required or permitted to be given under this Agreement shall be in writing and shall be sent by
facsimile transmission (confirmed by any of the following methods: overnight delivery (with proof of delivery), courier service (with proof of delivery), hand delivery, or certified or registered mail (return receipt requested and first class
postage prepaid)) and addressed as follows: 
  

	 	(1)	Notices to Lessee shall be addressed: 

  
 TRS Leasing, Inc. 
 309 North 5th Street 
 P.O. Box
1448 
 Norfolk, NE 68702 
 Attention: Paul J. Schulte 
 Facsimile: 402-371-4229 
  
 and 
  
 TRS Subsidiary, LLC 
 309 North 5th Street 
 P.O. Box
1448 
 Norfolk, NE 68702 
 Attention: Paul J. Schulte 
 Facsimile: 402-371-4229 
  

	 	(2)	Notices to Operator shall be addressed: 

  
 Humphrey Hospitality Management, Inc. 
 7170
Riverwood Dr. 
 Columbia, MD 21046 
 Attention: James I. Humphrey, Jr. 
 Facsimile: (443) 259-4999 
  
 with a copy to 
  
 Stephen Goldberg 
 Gallagher, Evelius & Jones 
 218 N.
Charles St., Suite 400 
 Baltimore, MD 21201 
 Facsimile No. (410) 837-3079 
  
 or to such other address as any party shall specify by written notice so given, and such notice shall be deemed to have been delivered as of the date the notice is received or receipt is rejected. 
  
 10. Successors and Assigns. 
  
 This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns; provided, however, that no party may make any assignment of this Agreement or any rights or obligations hereunder without the prior written consent of the other party.

  
 11. Entire Agreement; Amendments. 
  
 This Agreement and the exhibits hereto constitute the entire
agreement among the parties thereto with respect to the subject matters hereof and all of the representations and warranties thereto, and supersede all prior agreements and understandings among the parties with respect to the matters set forth
herein. No addition to or amendment or modification of any 

  

 9 

 
provision of this Agreement shall be binding upon any party hereto unless made in writing and signed by each party hereto. 
  
 12. Headings. 
  
 Headings of this Agreement are for the convenience of the
parties only and shall be given no substantive or interpretive effect whatsoever. 
  
 13. Incorporation. 
  
 The exhibits hereto are hereby incorporated herein and made a part hereof for all purposes as if fully set forth herein. 
  
 14. Enforcement. 
  
 The parties agree that irreparable damage will occur in the event that any of the provisions of this Agreement is not performed in
accordance with the specific terms hereof or are otherwise breached. In addition to any other remedy to which the parties are entitled at law or in equity, the parties shall be entitled to injunctive relief to prevent breaches of this Agreement and
to enforce specifically the terms and provisions hereof in any court in the State of Delaware. 
  
 15. Governing Law. 
  
 This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to its rules of conflicts of laws. 
  
 16. Severability. 
  
 Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this
Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 
  
 17. Survival. 
  
 All agreements and obligations of the parties to this Agreement shall survive the Termination Date. 
  
 18. Consents. 
  
 Whenever the consent or approval of a party is required
under this Agreement, such consent shall not be unreasonably withheld or delayed. 
  

 10 

 19. Counterparts. 
  
 This Agreement may be executed in multiple counterparts, each of which shall be deemed an original.

  
 IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed on its behalf as of the day and year first above written. 
  

					
	 TRS LEASING, INC.

		
	 By:
	 	 /s/ Paul J. Schulte

	 	 	 Name:
	 	 Paul J. Schulte

	 	 	 Title:
	 	 Chairman

	
	 TRS SUBSIDIARY, LLC

		
	 By:
	 	 /s/ Paul J. Schulte

	 	 	 Name:
	 	 Paul J. Schulte

	 	 	 Title:
	 	 Chairman

	
	 HUMPRHEY HOSPITALITY MANAGEMENT, INC.

		
	 By:
	 	 /s/ James I. Humphrey, Jr.

	 	 	 Name:
	 	 James I. Humphrey, Jr.

	 	 	 Title:
	 	 President

	
	 SUPERTEL HOSPITALITY MANAGEMENT, INC.

		
	 By:
	 	 /s/ James I. Humphrey, Jr

	 	 	 Name:
	 	 James I. Humphrey, Jr.

	 	 	 Title:
	 	 President

  

 11

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